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SB 882

Coal Transportation Fee and Fossil Fuel Mitigation Fund (Coal Dust Cleanup and Asthma Remediation Act)

2025 Regular Session Introduced by Jim Rosapepe

Imposes $13/short ton coal transport fee in Maryland to fund a Fossil Fuel Mitigation Fund, supporting GHG reductions and coal-dust health programs for affected communities.

Hearing 2/27 at 1:00 p.m.
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Bill Summary · SB 882

SB 882 — Coal Transportation Fee and Fossil Fuel Mitigation Fund

(Coal Dust Cleanup and Asthma Remediation Act)

Purpose / Intent

SB 882 creates a dedicated funding stream to reduce greenhouse gas (GHG) emissions from fossil fuels and to mitigate localized public-health impacts of coal transport (including coal dust and asthma). It does this by imposing a coal-transport fee and directing the revenue into a new Fossil Fuel Mitigation Fund administered by the Maryland Department of the Environment (MDE), with program delivery options through MDE and the Maryland Clean Energy Center (MCEC).

Key provisions

  • Coal transportation fee

    • Imposes a fee of $13 per short ton of coal transported in Maryland.
    • Fee is assessed on the first carrier to transport coal in the State.
    • Exempts coal transported solely for on‑farm use where the carrier does not otherwise use, manufacture, package for sale, or sell the coal in Maryland.
    • Carriers must pay the fee to MDE and provide required information; MDE may adopt regulations and audit procedures for collection and enforcement.

  • Fossil Fuel Mitigation Fund (special, nonlapsing)

    • Receives fee revenue, appropriations, interest, and other donations.
    • Purpose: support activities/programs that reduce GHG emissions and mitigate fossil‑fuel impacts in the State.
    • MDE administers the Fund; the State Treasurer and Comptroller handle custody/accounting.
    • Effective date: July 1, 2025.

Fund uses and allocation

  • MDE may use up to 9% of annual distributions for administrative costs.
  • After MDE administrative set‑aside, remaining funds may be used as follows (percentages apply to the post‑admin remainder):
    • Up to 23%: home energy efficiency and electrification
    • Up to 23%: reduce GHGs in commercial, multifamily, and institutional buildings
    • Up to 22%: electric vehicles, electric school buses, and charging equipment
    • Up to 20%: increasing mass transit
    • Up to 9%: administration of programs
    • Up to 2%: asthma treatment for communities impacted by coal dust
    • Up to 1%: public awareness campaigns to reduce GHG emissions
  • Equity requirement: at least 40% of funding used each fiscal year (from the post‑admin remainder) must address negative climate impacts in overburdened and underserved communities (definitions included in the bill).
  • MCEC authorization: unused funds may be used by MCEC to issue low‑interest bonds for the authorized categories; MCEC may use up to 50% of the amount distributed to the Fund for such bond issuance.

Administration & compliance

  • MDE must adopt regulations for fee collection and may audit carriers.
  • The Fund is nonlapsing; interest earnings credit to the Fund.
  • Money from the Fund is not intended to replace existing appropriations.

Fiscal and economic impacts (summary from fiscal note)

  • Significant special fund revenue increase; DLS estimates fee revenue may total at least $300 million annually (revenue could begin as early as FY2026 but more likely FY2027).
  • Special‑fund programmatic and administrative expenditures will increase.
  • General funds may front initial implementation costs (reimbursed when special funds available). General fund interest income may increase while the Fund accumulates (through FY2028).
  • Potential significant effects on the Port of Baltimore and on electricity prices; potential meaningful effects for small businesses (details in fiscal analysis).

Who is affected

  • Primary: carriers transporting coal in Maryland (first carrier pays fee).
  • Secondary: Port of Baltimore, coal shippers, electricity consumers, companies and jurisdictions eligible for Fund programs, overburdened and underserved communities (explicit program focus), MDE and MCEC (administration/implementation).

Procedural status (select)

  • Introduced: January 23, 2025.
  • Hearing scheduled: February 27, 2025, 1:00 p.m.
  • Effective date (if enacted): July 1, 2025.
  • Related/companion bills: HB 798, HB 1124, HB 1088.

If you want, I can produce a one‑page fact sheet for carriers or a table showing the dollar impact under different annual tonnage scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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