Bill
SB 779
SB 779 preserves climate targets but adds an “economically practicable” test, giving agencies discretion to delay or scale back requirements.
Status
- Introduced: Jan. 27, 2025 (Sen. Gallion et al.)
- Committee hearings and amendments during spring–summer 2025
- Enacted: Approved by Governor Oct. 1, 2025 — Chapter 233, Statutes of 2025
- Companions: HB 3964, HB 1451
Purpose / Intent
- To make key requirements of the Climate Solutions Now Act (CSNA, 2022) subject to an economic practicability standard. In short, specified climate, building, procurement, and labor mandates must be implemented only “to the extent economically practicable,” giving implementing agencies discretion where cost or fiscal feasibility is a limiting factor.
Key provisions and changes
- Building Energy Performance Standards (BEPS)
- Existing BEPS targets for covered buildings retained (20% reduction in net direct GHG by Jan 1, 2030 vs. 2025; net‑zero direct GHG by Jan 1, 2040) but must be achieved “to the extent economically practicable.”
- Annual owner reporting of direct emissions data (beginning 2025) required only “to the extent economically practicable.”
- Applies to “covered buildings” (commercial/multifamily/state buildings meeting statutory thresholds, e.g., 35,000+ sq ft).
- Statewide GHG plans
- Final plan requirements (including the plan to reduce statewide GHG emissions 60% from 2006 levels by 2031 and pathway to net‑zero by 2045) remain but must be implemented “to the extent economically practicable.”
- Zero‑emission vehicles (ZEV)
- Local school bus purchase/use prohibition on non‑ZEVs (effective FY2025) retains existing exceptions and adds an exemption where it is not economically practicable for the county board to meet ZEV requirements.
- State fleet ZEV procurement goals and phased percentage requirements (passenger cars and other light‑duty vehicles by specified fiscal years) remain but apply only “to the extent economically practicable.”
- Electric infrastructure projects / prevailing wages
- Prevailing‑wage labor requirements currently required for certain investor‑owned utility projects funded with federal funds remain, but the obligation to pay area prevailing wages (wages + fringe) is limited to the extent economically practicable; other contractor requirements (benefits, apprenticeship, outreach, compliance history, licenses, reporting) continue.
- Adoption of codes and procurement standards
- Requirements to adopt certain building/construction codes (e.g., International Green Construction Code/IBC provisions) or to procure electricity from low/no carbon sources are qualified by the “economically practicable” standard.
- Statutory amendments
- The bill revises multiple sections of the Environment, Labor and Employment, Public Safety, and State Finance & Procurement Articles to insert the economic practicability standard.
Who is affected
- State agencies (Maryland Department of the Environment, Maryland Department of Labor, procurement offices) — new discretion and likely additional economic assessments.
- Owners of covered buildings (commercial, multifamily, state-owned) — potential flexibility or delay in BEPS obligations and reporting.
- Local school boards and K–12 transportation programs — potential exemption from ZEV bus requirements when not economically practicable.
- State procurement and fleet managers — ZEV purchasing goals become subject to practicability.
- Investor‑owned utilities, contractors, and construction workforce — prevailing‑wage obligations for certain federally funded projects may be limited in practice.
- Small businesses and suppliers in clean‑energy, EV, and construction sectors — could see delayed or reduced demand depending on agency determinations.
Fiscal and implementation notes
- Department of Legislative Services fiscal analysis: State and local expenditures to implement parts of CSNA may decrease or be delayed depending on “economically practicable” determinations. Effects are uncertain and not reliably predictable; revenues expected to be largely unaffected. The bill may have meaningful effects for small businesses.
- Implementation will require agencies to evaluate economic practicability when adopting rules, awarding contracts, or enforcing standards — likely necessitating cost/benefit or feasibility analyses and administrative guidance.
Bottom line
- SB 779 preserves the substantive targets and timelines of the Climate Solutions Now Act but adds an economic practicability qualification across multiple requirements, increasing agency discretion and potentially delaying or scaling back implementation where agencies determine actions are not economically practicable.
Compiled from official sources — confirm details with the bill’s official record.
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