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SB 937

Electricity and Gas - Emissions Reductions, Rate Regulation, Cost Recovery, Infrastructure, Planning, Renewable Energy Portfolio Standard, and Energy Assistance Programs (Next Generation Energy Act)

2025 Regular Session Introduced by Dalya Attar and 4 co-sponsors

SB 937 accelerates procurement and permitting for lower‑carbon, dispatchable energy (including nuclear), expands storage, tweaks rates, and broadens energy programs.

Approved by the Governor - Chapter 625
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WeVote Research Nonpartisan
Bill Summary · SB 937

SB 937 — “Next Generation Energy Act” (Chapter 625, 2025)

Status: Approved by the Governor (Chapter 625). Effective date: June 1, 2025. Expedited approval process for certain resources terminates June 30, 2030.

Purpose / Intent

SB 937 is a broad rewrite of Maryland energy law to accelerate procurement, permitting, and construction of lower‑carbon, dispatchable, and grid‑scale resources; to reform utility rate and cost‑recovery rules; to strengthen planning for large‑customer interconnections and energy storage; and to adjust programmatic tools for energy assistance and greenhouse‑gas reductions. The bill also expresses state policy support for nuclear power and creates procurement pathways for nuclear and other dispatchable resources.

Key provisions (high level)

  • Procurement & permitting

    • Establishes a new “Energy Solicitation and Procurement” subtitle with competitive solicitations and an expedited CPCN (certificate of public convenience and necessity) process for specified dispatchable generation, large capacity resources (~3,100 MW target), and nuclear projects.
    • Requires electric utilities to submit plans and procure distribution‑connected front‑of‑the‑meter storage (two rounds totaling 150 MW each) and front‑of‑the‑meter transmission storage (1,600 MW).
    • Directs the Maryland Energy Administration (MEA), with PSC and DNR, to pursue multistate nuclear cost‑sharing arrangements and federal agreements for siting small modular reactors (SMRs); MEA must report by December 1, 2026.
    • Requires safeguards that prevent bypass contracts by generators to large industrial/commercial customers unless the generator can meet 100% of the customer’s expected load and has necessary approvals.

  • Utility rates, cost recovery and regulation

    • Requires investor‑owned gas and electric companies to justify use of internal vs. contractual labor in base rate proceedings.
    • Modifies STRIDE (gas infrastructure replacement) plan requirements and PSC findings; authorizes prompt cost‑recovery mechanisms for planned gas investments when specific demonstrations are made.
    • Authorizes multi‑year rate plans and changes alternative forms of regulation; requires investor‑owned electric companies and cooperatives to file specific rate schedules for large‑load customers (deadline noted in bill materials: Sept 1, 2026).
    • Prohibits recovery through rates of certain specified costs (details in statute).

  • Programs & standards

    • DHCD: may issue loans (in addition to grants) for multifamily building energy projects under Climate Solutions Now Act programs; expands allowable sources of savings counted under EmPOWER Maryland.
    • Removes waste‑to‑energy and refuse‑derived fuel from eligibility as Tier 1 RPS sources.
    • Establishes processes for nuclear procurement and related escrow accounts for purchasing nuclear energy and zero‑emission credits.
    • DHS must report on consolidating state energy assistance programs into a single program.

  • Equity & procurement support

    • Governor’s Office of Small, Minority, and Women Business Affairs (with AG) must assist potential applicants and minority investors and develop outreach/participation plans.

  • Other

    • Confirms non‑impairment of existing contracts/obligations and expresses legislative support for extending the federal license for Calvert Cliffs nuclear plant.

Who is affected

  • Investor‑owned electric and gas utilities, electric cooperatives, municipal utilities, electricity suppliers, and owners of generating stations.
  • Large commercial/industrial (“large load”) customers (≥100 MW threshold in statute).
  • State agencies: PSC, MEA, DNR, DHCD, DHS, Office of People’s Counsel.
  • Ratepayers (potential impacts on bills through program costs, cost‑recovery rules, and a one‑time 2026 residential bill credit).
  • Small and minority‑owned businesses participating in procurements.

Fiscal and timing highlights

  • Effective June 1, 2025. Some solicitations noted to begin by Oct 1, 2025 (dispatchable generation).
  • Fiscal impacts (per Department of Legislative Services fiscal note):
    • PSC and Office of People’s Counsel administrative costs increase by at least $2.9 million annually beginning FY 2026 (funded by assessments on public service companies).
    • PSC special fund expenditures increase by $200 million in FY 2026 (and potentially future years) to provide two residential electric bill credits in FY 2026 — Governor authorized to transfer up to $200 million from the Strategic Energy Investment Fund (SEIF) contingent on enactment.
    • Department of Natural Resources: ~$0.8M increase in FY 2026 and at least $1.2M annually thereafter.
    • Local governments, municipal utilities, and small businesses may see meaningful operational and fiscal impacts.

Procedural notes / deadlines

  • Expedited approval authority for specified projects sunsets June 30, 2030.
  • MEA report on nuclear cost‑sharing and procurement: due Dec 1, 2026.
  • Utilities required to file large‑load rate schedules and storage procurement plans by specified dates (examples in bill text: Oct 1, 2025 solicitation start; Sept 1, 2026 large‑customer schedule—see statute for exact deadlines).

For full statutory language, procurement targets, and precise definitions/limitations (e.g., which costs are excluded from recovery, detailed CPCN timelines, and precise MW targets by category), consult the enrolled bill text (Chapter 625, 2025) and the accompanying fiscal note.

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

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