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SB 878

Relating to housing; prescribing an effective date.

2025 Regular Session Introduced by Dick Anderson and 1 co-sponsor

Would authorize hydraulic fracturing for oil and natural gas in Maryland, reversing the long-standing ban and requiring MDE to establish regulatory oversight and permits.

In committee upon adjournment.
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Bill Summary · SB 878

Summary — SB 878: Oil and Natural Gas — Hydraulic Fracturing — Authorization

Status: Withdrawn by sponsor
Introduced: January 22–28, 2025 (Senate); Assigned to Education, Energy, and the Environment
Primary sponsors (Maryland version): Senators Chris West Hershey (note: fiscal note lists “Senator Hershey, et al.”) — bill text filed by Senators Hershey, Folden, and McKay
Companion bills: HB 703; HB 327
Effective date in bill text: October 1, 2025 (if enacted)

Purpose and intent

SB 878 would remove Maryland’s statutory prohibition on hydraulic fracturing (fracturing or “fracking”) for oil and natural gas and expressly authorize persons to engage in hydraulic fracturing in the State. The bill also requires the Maryland Department of the Environment (MDE) to adopt regulations to implement the authorization and oversee any resulting activity.

Key provisions

  • Repeal/amendment of current prohibition: Changes the statutory language so a person may (rather than may not) engage in hydraulic fracturing of a well for oil or natural gas exploration or production.
  • Regulatory directive: Requires MDE to adopt regulations to carry out the authorization, including permitting, oversight, and protective conditions.
  • Effective date provision in text: bill states an effective date of October 1, 2025.

Context / current law

  • Maryland has had a statutory ban on hydraulic fracturing since 2017. The fiscal note defines “hydraulic fracturing” consistent with prior law: high‑pressure injection of engineered fluids into low‑permeability reservoirs to create fractures.
  • MDE already issues permits for drilling, production, and disposal related to oil and gas and has authority to deny permits that pose substantial threats to public safety or significant adverse environmental impacts.

Fiscal and practical impacts

  • State (MDE): General fund expenditures would increase, potentially significantly, beginning in FY 2026 to staff and conduct the lengthy rulemaking process (research, public input, comprehensive review). Once regulations are in place, implementation costs could be substantial but are uncertain and depend on regulatory detail and application volume.
  • Revenues: If MDE establishes permit fees, special fund revenues would increase (likely not before FY 2027) and could offset general fund needs over time. Broader economic activity from new gas development could raise state/local revenues, but timing and magnitude are uncertain.
  • Local governments: Potential for increased local permitting revenue and severance‑tax–type receipts (Allegany and Garrett counties identified as primary areas of potential production), but also potential increased local expenditures to regulate and inspect activity.
  • Small businesses: Potentially meaningful effects — positive for firms supplying drilling/fracturing services; negative for tourism‑dependent businesses in Western Maryland if local impacts affect tourism.
  • Environmental/public health implications: MDE retains authority to impose permit conditions or deny permits based on safety/environmental risk; hydraulic fracturing raises a broad range of potential environmental and public‑health issues that the agency would need to address in rulemaking.

Procedural/timeline notes

  • The bill directs MDE regulatory action; the fiscal note anticipates a lengthy rulemaking and permit processing timeline, so material on‑the‑ground activity and revenue effects would likely not occur before FY 2027.
  • According to provided legislative actions, the bill was later withdrawn by the sponsor (entry dated 2025-03-11). As withdrawn, it did not become law.

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

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