WeVote
Log In

Bill

Bill

SB 434

School Workers Fair Pay Act.

2025-2026 Session Introduced by Val Applewhite and 10 co-sponsors

Renames RPS to Clean Energy Portfolio Standard (CEPS), raises targets to ~60% by 2025, adds in-state nuclear and a ratepayer-funded nuclear program with offshore wind rules.

Passed 1st Reading
#appropriations;boards;budgeting;education;educationboards;education #stateboardof;elementaryeducation;employment;kindergarten;localgovernment;minimumwage;personnel;public;publicinstructiondept.;salaries&benefits;secondaryeducation;stateemployees;governmentemployees;schoolstaff
0
WeVote Research Nonpartisan
Bill Summary · SB 434

SB 434 — "ENERGIZE Maryland Act" (Empowering New Energy Resources and Green Initiatives Toward a Zero‑Emission Maryland Act)

Status: Hearing scheduled Feb 20 at 1:00 p.m. (Administration bill)
Introduced: January 20, 2025 (Administration sponsors)

Purpose / Intent

The bill restructures Maryland’s Renewable Energy Portfolio Standard (RPS) into a broader Clean Energy Portfolio Standard (CEPS), strengthens near‑term clean energy requirements, expands eligibility to include nuclear (including small modular reactors), and creates procurement and financing pathways for new nuclear capacity. It also changes offshore wind procurement rules, maintains higher solar alternative compliance payments, and directs supports for business participation (including minority business engagement).

Key provisions

  • Rename RPS to “Clean Energy Portfolio Standard (CEPS)” and define “clean energy source” to include Tier 1 and Tier 2 renewables and in‑state nuclear generation (including small modular reactors).
  • Increase overall CEPS percentage requirements by about 22.5 percentage points each year beginning 2025 (examples: 2025 overall target ~60.5% under the bill vs. ~38% current law). The Public Service Commission (PSC) must reduce the overall requirement by the output of qualifying in‑state nuclear facilities (without reducing Tier 1 or Tier 2 percentage floors).
  • Nuclear procurement:
    • Establish a PSC‑administered application/review process (minimum of three rounds) for proposed nuclear generation projects.
    • Allow ratepayer funding mechanism via a nonbypassable surcharge on customer bills (subject to PSC oversight and approval; PSC reviews rate impacts).
    • Require approved projects to sell energy/capacity/ancillary services into markets and specify distribution of proceeds; make project debt not a State obligation.
    • Require approved applicants to comply with the State’s Minority Business Enterprise program; Governor’s Office to provide assistance to applicants and minority investors.
  • Offshore wind:
    • Broaden the definition of “qualified offshore wind project” to allow PJM interconnection more generally.
    • Remove statutory caps on ratepayer exposure and maximum OREC prices; PSC sets and may keep certain limits confidential.
    • Require escrow deposits by applicants (minimum $5,000 per megawatt) to discourage withdrawals.
    • Rename and repurpose offshore wind advisory/funding entities as Clean Energy Business Development Committee and Fund; direct recommendations on fund use to maximize emerging business participation.
  • Solar ACPs: hold solar alternative compliance payments at $60/MWh (the 2024 level) instead of allowing scheduled declines to lower amounts.
  • Administrative/legal:
    • Allows budget transfers from a Dedicated Purpose Account as needed.
    • Retroactive application to CEPS compliance years beginning on or after Jan 1, 2025.
    • Effective date: July 1, 2025.

Who is affected

  • Electric utilities and retail customers (rate impacts, new compliance obligations).
  • Developers of offshore wind, solar, community solar, and nuclear projects.
  • Public Service Commission, Maryland Energy Administration (MEA), Office of People’s Counsel, Department of Natural Resources.
  • Minority, small, and emerging clean energy businesses (programmatic supports and participation requirements).
  • Municipal/ local electric utilities (significant local fiscal/operational impacts anticipated).

Fiscal and policy impacts (summary from fiscal analysis)

  • Increased special‑fund expenditures for PSC and Office of People’s Counsel (estimated ~$594k+ annually FY2026–2030), with corresponding special‑fund revenues from assessments.
  • Significant increases in MEA revenues (timing begins as early as FY2026).
  • Additional costs for Department of Natural Resources in later years (estimated ≥$609.6k annually FY2028–2030).
  • Potential Transportation Trust Fund and local fiscal impacts noted; municipal utilities and local governments may be materially affected.
  • DLS notes potential future electricity rate impacts, particularly in later years; some small‑business upsides in solar sector are possible.

Procedural notes

  • Administration bill; assigned to Education, Energy, and the Environment committee.
  • Retroactive application to CEPS compliance years on/after Jan 1, 2025; bill takes effect July 1, 2025.
  • Fiscal note and detailed statutory text provide extensive PSC authorities and programmatic changes; specific PSC rulemaking/implementation will determine many operational outcomes.

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

Sign in to ask a question.