Maryland House and State Senate vote to update low income energy efficiency program

The Maryland State Senate and State House of Delegates have both voted to support a bill (SB144/HB169) to update and improve the low income energy efficiency program. The bill, sponsored by Senate Chair Brian Feldman and Del. Lorig Charkoudian also passed in 2022 with bi-partisan support but was vetoed by then Gov. Hogan.

Increasing energy efficiency is a win-win  for the state and consumers. It helps lower energy bills and reduces harmful pollution and greenhouse gases from energy generation.

Gov. Hogan’s veto of HB108/SB524 denies low-income families and seniors the weatherization services needed to make their homes energy efficient and reduce energy costs. It increases inequity and brazenly leaves families behind. Our administration will correct this failure.

— Gov. Wes Moore (@iamwesmoore) May 28, 2022

This bill is critically needed, as is documented in a recent report from Maryland PIRG Foundation:

• To date, the EmPOWER program has allocated disproportionately few resources to limited income ratepayers. While limited income homes represent at least 26.5% of Maryland households, only 17.5% of residential spending is allocated for them, meaning that low- and moderate-income ratepayers receive disproportionately few efficiency services. Limited income households may receive some benefits from utility-run efficiency programs, narrowing the discrepancy between limited income and other residents, but Maryland’s least-resourced residents still receive too few benefits.
• In 2021, the limited income program achieved only 9% of its non-binding energy savings target for limited income multifamily residences and only 70% of its goal for limited income single-family buildings. 
• The Office of People’s Counsel calculates that the DHCD-run limited income EmPOWER programs account for just 3% of the total planned lifetime electricity savings from residential EmPOWER programs statewide, despite limited income households using approximately 11% of the state’s electricity.
• Between the inception of EmPOWER and 2021, the limited-income EmPOWER programs served just 47,476 households, though recent estimates count nearly 590,000 limited income households in Maryland. At its current rate of implementation, EmPOWER would take between 130-148 years to serve all the limited income households in Maryland.

This bill sets up a 1% goal for the limited income EmPOWER Maryland programs managed by DHCD. Setting a required level of energy savings for the limited income programs will ensure the limited income programs help more households in need and deliver greater benefits.  The bill will also help maximize federal funds coming to Maryland for this purpose and increase EmPOWER funding for the Maryland Department of Housing & Community Development’s Multifamily Energy Efficiency & Housing Affordability program (MEEHA) and the Low-Income Energy Efficiency Program (LIEEP) to help achieve the goals.

The bill also requires DHCD to make a plan to retrofit all limited income households with energy efficiency improvements by 2030 , which will accelerate the rate at which limited income households receive help, and will require DHCD and the PSC to work together. 

The bills will go through a series of procedural votes before heading to Gov. Wes Moore for his signature. 

Limited income homes represent at least 26.5% of MD households, but only 17.5% of residential energy efficiency spending is allocated for them. Low- and moderate-income ratepayers have received disproportionately few efficiency services, but HB169 will start fixing the problem. https://t.co/ix8R1RgewP

— Emily Warfield Scarr (@emilyscarr) March 21, 2023