How to Supercharge EmPOWER Maryland

The Maryland legislature is considering bills in 2023 related to the state’s energy efficiency program, which is great news for Maryland energy customers.

EmPOWER Maryland has saved Marylanders a lot of energy and money. But according to a new report from Maryland PIRG Foundation, EmPOWER Maryland, while successful, could spark more energy savings, deliver more for low-income customers, and more adequately support the state’s climate goals

EmPOWER includes a utility run program of rebates, weatherizations and other efficiency updates, as well as similar programs targeted at limited income consumers, which are run by the state’s Department of Housing and Community Development (DHCD).

Since its inception in 2008, EmPOWER has:

• Reduced Maryland’s greenhouse gas emissions by the equivalent of 9.6 million metric tons of carbon dioxide cumulatively as of 2020, equal to taking 2 million cars off the road for a year. 
• The program has saved ratepayers more than $4 billion on their energy bills and delivered lifetime energy savings worth $12.7 billion. 

While the program has been tremendously successful, it’s time to build on its success to better meet the needs of Marylanders. 

Sen. Karen Lewis Young and Del. Lily Qi have introduced a bill, The Energy Savings Act, to update and improve the utility run part of EmPOWER Maryland looking at the structure of the program as well as its alignment with the states climate goals. Their proposal also helps implement a directive from the legislature to add greenhouse gas emissions reductions goals to the program in addition to continuing the program’s effective focus on weatherization and rebates for efficient electric appliances and home heating.

While the state has made clear its intention to shift away from fossil fuels to power our homes and buildings, as currently structured EmPOWER continues to provide rebates and incentives for fossil fuel appliances, locking families into decades of fossil fuel use,  and does not allow incentives for switching to electric power for home heating and appliances. 

A major factor in the importance of switching away from fossil fuels is that the climate and air pollution caused by burning fossil fuels in our buildings – such as in gas stoves or furnaces – both present threats to public health.  In addition to producing greenhouse gasses, fossil fuel equipment also produces toxic air pollution. A recent study found that indoor air pollution from gas stoves alone is responsible for 12.7% of all childhood asthma cases and 13.5% of cases in nearby Pennsylvania. A separate meta-analysis found that living in a home with a gas stove increases a child’s risk of concurrent and lifetime asthma by 32%. Air pollution in general can cause a wide range of health problems, from cancer and damage to the heart and lungs to mental health problems, decreased cognitive functioning, impacts to fertility and even premature death. In the U.S. alone, air pollution is estimated to cause hundreds of thousands of premature deaths each year.

Additionally, the program has historically offered no direct incentives to the utilities to  meet their goals, or penalties for failing to do so.

The legislature would be wise to adopt the Lewis Young and Qi proposal, which takes advantage of robust federal incentives for in-home electric energy efficiency upgrades and builds on the historic success of EmPOWER.

What the Energy Savings Act does:

• Stops incentives for fossil fuel appliances and heating, maximizes federal efficiency incentives, and creates new incentives for electrification, efficient electric appliances, and home heating.
• Sets clear performance targets, climate benchmarks, incentives and penalties for utilities to ensure the program is reducing Maryland’s overall energy use and greenhouse gas emissions.
• Builds on the successful EmPOWER rebates and resources for energy audits and weatherization.
• Delivers the majority of savings directly to Maryland households to help lower utility bills by ensuring 85% of energy savings happen in the home, where ratepayers benefit most.

In addition, Sen. Brian Feldman and Del. Lorig Charkoudian have re-introduced bills to set performance targets for the low income program to ensure low-income homeowners aren’t left behind when it comes to energy savings. This bill passed in 2022, but was vetoed by then Gov. Hogan. The reintroduction is welcome news, and the legislature should send it to Gov. Moore as quickly as possible,  because the current program has underdelivered for limited income households. According to a new report from Maryland PIRG Foundation.

• While limited income households represent at least 26.5% of households statewide, only 17% of residential spending under EmPOWER is allocated for them. 
• Neither the Maryland General Assembly nor the regulators in charge of EmPOWER have set binding goals for the limited income programs, and DHCD achieved just 9% of its own energy savings target for limited income multifamily residences in 2021 and only 70% of its target for single-family homes.

Investing in energy efficiency is one of the smartest investments Maryland has ever made. Combined, these two bills ensure the state is working smarter to save more and pollute less.