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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1525*
HOUSE BILL 1525
M3, M5, C5 6lr1749
CF SB 801
By: Delegates Wivell, Arentz, Beauchamp, Buckel, Hornberger, Hutchinson,
McComas, Miller, T. Morgan, Reilly, Schmidt, Tomlinson, and Valentine
Introduced and read first time: February 13, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Regional Greenhouse Gas Initiative, EmPOWER Energy Efficiency Programs, 2
and Community Solar Energy Generating Systems 3
FOR the purpose of requiring the Governor to withdraw the State from the Regional 4
Greenhouse Gas Initiative on or before a certain date; authorizing the State to rejoin 5
the Initiative under certain circumstance s; eliminating the surcharge that allows 6
recovery of costs to utilities from the Em POWER energy efficiency program s; 7
providing that a certain tariff may not require an electric company to purchase or 8
provide a bill credit for certain electr icity for more than a certain amount; and 9
generally relating to the Regional Greenhouse Gas Initiative, the EmPOWER energy 10
efficiency programs, and Community Solar Energy Generating Systems. 11
BY repealing and reenacting, with amendments, 12
Article – Environment 13
Section 2–1002(g) 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Public Utilities 18
Section 7–222(d) 19
Annotated Code of Maryland 20
(2025 Replacement Volume and 2025 Supplement) 21
BY repealing 22
Article – Public Utilities 23
Section 7–222(e) 24
Annotated Code of Maryland 25
(2025 Replacement Volume and 2025 Supplement) 26
2 HOUSE BILL 1525
BY repealing and reenacting, without amendments, 1
Article – Public Utilities 2
Section 7–306.2(d)(1)(i), (e)(2), (f)(2), and (g)(2) 3
Annotated Code of Maryland 4
(2025 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – Public Utilities 7
Section 7–306.2(h–1) 8
Annotated Code of Maryland 9
(2025 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Environment 13
2–1002. 14
(g) (1) [In this subsection, “allowance” means one ton of carbon dioxide that 15
may be bought, sold, traded, or banked for use under the Regional Greenhouse Gas 16
Initiative. 17
(2) Not later than June 30, 2007] ON OR BEFORE JANUARY 1, 2027, the 18
Governor shall [include] WITHDRAW the State as a full participant in the Regional 19
Greenhouse Gas Initiative among Mid–Atlantic and Northeast states. 20
[(3) The State may withdraw from the Initiative, as provided in the 21
December 20, 2005 memorandum of understanding of the Initiative, at any time after 22
January 1, 2009, if the General Assembly enacts a law to approve the withdrawal. 23
(4) If the Region al Greenhouse Gas Initiative expires and there is a 24
successor organization with the same purposes and goals, the Governor is encouraged to 25
join the State in the successor organization. 26
(5) Notwithstanding § 2–107 of this title, all of the proceeds from the sale 27
of Maryland allowances under the Regional Greenhouse Gas Initiative shall be deposited 28
in the Maryland Strategic Energy Investment Fund under § 9 –20B–05 of the State 29
Government Article. 30
(6) If the State’s participation in the Regional Greenhous e Gas Initiative 31
ceases for any reason, the Go vernor shall report to the General Assembly, in accordance 32
with § 2–1257 of the State Government Article, regarding: 33
(i) Why participation ceased; and 34
HOUSE BILL 1525 3
(ii) A plan to reduce carbon dioxide emissions from power plants in 1
the State that considers the use of Maryland grown, native, warm season grasses as a 2
possible method of reducing carbon emissions.] 3
(2) THE STATE MAY REJOIN AS A FULL PARTICIPANT IN THE 4
REGIONAL GREENHOUSE GAS INITIATIVE IF: 5
(I) ALL OTHER STATES SERVED BY PJM INTERCONNECTION 6
BECOME FULL MEMBERS OF THE REGIONAL GREENHOUSE GAS INITIATIVE; OR 7
(II) THE STATE BECOMES AND REM AINS A NET EXPORTER OF 8
ELECTRICITY. 9
(3) NOTWITHSTANDING § 2–107 OF THIS TITLE , IF THE STATE 10
REJOINS THE REGIONAL GREENHOUSE GAS INITIATIVE ALL OF THE PROCEEDS 11
FROM THE SALE OF MARYLAND ALLOWANCES U NDER THE INITIATIVE SHALL BE 12
DEPOSITED IN THE MARYLAND STRATEGIC ENERGY INVESTMENT FUND UNDER § 13
9–20B–05 OF THE STATE GOVERNMENT ARTICLE. 14
Article – Public Utilities 15
7–222. 16
(d) The Commission shall encourage and promote the efficient use and 17
conservation of energy in support of the greenhouse gas emissions reduction goals and 18
targets required under Title 2, Subtitle 12 of the Environment Article, established by the 19
Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle 20
by: 21
(1) requiring each electric company and gas company to establish any 22
program or service that the Commission determines to be appropriate and cost –effective; 23
AND 24
(2) [adopting rate–making policies that provide, through a surcharge line 25
item on customer bills: 26
(i) full cost recovery of reasonably incurred costs for programs and 27
services established under item (1) of this subsection, including full recove ry on a current 28
basis on or before January 1, 2028; 29
(ii) on or before December 31, 2032, the elimination of any unpaid 30
costs and unamortized costs that: 31
1. A. existed on December 31, 2024; or 32
4 HOUSE BILL 1525
B. were incurred before January 1, 2028; and 1
2. were accrued for the purpose of achieving statutory 2
targets for annual incremental gross energy savings; 3
(iii) compensation for any unpaid costs and unamortized costs under 4
item (ii) of this item at not more than each electric company’s and each gas company’s 5
average cost of outstanding debt; and 6
(iv) reasonable financial performance incentives and penalties for 7
investor–owned electric companies and gas companies, as appropriate; and 8
(3)] ensuring that adoption of electric customer choice unde r Subtitle 5 of 9
this title and gas customer choice under Subtitle 6 of this title does not adversely impact 10
these goals and targets. 11
[(e) The Commission shall, by regulation or order, require each electric company 12
and each gas company subject to subsecti on (a) of this section that has submitted to the 13
Commission, on or before July 1, 2024, a plan for achieving electricity or gas savings and 14
demand reduction targets to disclose the following information in a form and format readily 15
understandable to the average customer: 16
(1) that the surcharge imposed in accordance with subsection (d) of this 17
section includes the cost of paying down the unpaid costs and unamortized costs that were 18
accrued over time by programs and services required by the Commission dati ng back to 19
2008; and 20
(2) the period of time that the surcharge will include excess charges to pay 21
down the unpaid costs and unamortized costs.] 22
7–306.2. 23
(d) (1) (i) The Commission shall establish and maintain a Community 24
Solar Energy Generating Systems Program. 25
(e) On or before May 15, 2016, the Commission shall adopt regulations to 26
implement this section, including regulations for: 27
(2) a tariff structure for an electric company to provide a subscriber with 28
the kilowatt–hours or value of the subscriber’s subscription, as the Commission determines; 29
(f) (2) On or before July 1, 2025, the Commission shall approve electric 30
company tariff modifications that are consistent with the regulations adopted under this 31
subsection. 32
HOUSE BILL 1525 5
(g) (2) On or before Janu ary 1, 2026, the Commission shall approve electric 1
company tariff modifications that are consistent with the regulations adopted under this 2
subsection. 3
(H–1) A TARIFF ESTABLISHED UNDER SUBSECTION (E)(2), (F)(2), OR (G)(2) OF 4
THIS SECTION MAY NOT REQUIRE AN ELECTRIC COMPANY TO PURCHASE , OR 5
PROVIDE A BILL CREDI T TO A SUBSCRIBER OR SUBSCRIBER ORGANIZATION, FOR 6
ELECTRICITY FROM A COMMUNITY SOLAR ENERGY GENERATING SYSTEM AT A RATE 7
THAT EXCEEDS THE GEN ERATION COST OF ELEC TRICITY PROVIDED BY THE 8
ELECTRIC COMPANY THROUGH STANDARD OFFER SERVICE. 9
SECTION 2. AND BE IT FURTHER ENACTED, That the Governor shall notify the 10
Department of Legislative Services: 11
(1) within 5 days after withdrawing from the Regional Greenhouse Gas 12
Initiative in accordance with § 2 –1002(g)(1) of the Environment Article, as enacted by 13
Section 1 of this Act; and 14
(2) within 5 days after the State rejoins the Regional Greenhouse Gas 15
Initiative in accordance with § 2 –1002(g)(2) of the Environment Article, as ena cted by 16
Section 1 of this Act. 17
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October 1, 2026. 19