Maryland Senate Bill SB357

Maryland 2023 Regular Session

• Introduced: 1/30/23
• Refer: 1/30/23

Caption

Renewable Energy Portfolio Standard - Solar Energy - Compliance Fees

Impact

The bill is expected to have a substantial impact on the energy landscape in Maryland by further incentivizing electricity suppliers to comply with renewable energy standards. Specifically, by increasing compliance fees, suppliers may be more motivated to invest in and adopt solar energy solutions to avoid penalties. This would not only align with broader state goals regarding energy sustainability but could also stimulate growth in the renewable energy sector, creating jobs and promoting technological innovation within the state.

Summary

Senate Bill 357 aims to adjust the compliance fees associated with the Renewable Energy Portfolio Standard in Maryland, particularly focusing on solar energy contributions. The bill specifies alterations to the compliance fees imposed on electricity suppliers who fail to meet the required percentage of energy derived from Tier 1 renewable sources, which includes solar energy. This adjustment outlines the financial penalties that will be applicable based on the shortfall of energy produced from solar resources against those standards. The bill is significant in its efforts to increase reliance on renewable energy sources by imposing stricter financial consequences for non-compliance.

Contention

Notably, the introduction of this bill has generated discussions regarding the balance between regulatory requirements and the feasibility of maintaining high standards of renewable energy generation. Some stakeholders argue that while aiming for improved solar energy compliance is commendable, the increased financial burden on suppliers could lead to higher energy costs for consumers. Advocates for the bill support the notion that such measures are critical for achieving long-term sustainability goals. There remains debate on whether the proposed compliance fees might disadvantage smaller suppliers who may struggle to meet the necessary requirements without incurring significant costs.