The Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act (HB1532) was passed yesterday by the Maryland General Assembly as an omnibus measure to address a number of pressing energy issues. The Utility RELIEF Act includes building decarbonization provisions that will help lower Marylanders’ energy bills and create jobs by encouraging the adoption of heat pumps, which efficiently deliver both heating and cooling from a single appliance. 

These provisions include:

• An allocation of $72.65 million in funding to Maryland’s Residential Energy Equity Program, which will help low- and moderate-income households install modern, efficient, zero-emission heat pumps.
• An update to the state’s Strategic Energy Investment Fund (SEIF) authorizing it to fund loan, grant, rebate, and other incentive programs that support the electrification of Marylanders’ buildings and transportation.
• Direction to the Maryland Energy Administration to develop programs that can provide grants and loans to businesses and homeowners seeking to weatherize, install heat pumps, or otherwise upgrade their buildings to achieve Maryland’s Building Energy Performance standards.

The Utility RELIEF Act also includes provisions regarding utility ratemaking, data center tariffs and registry, creation of a reverse auction to encourage new clean energy generation, and changes to Maryland’s energy efficiency programs.

“Maryland families are facing rising energy costs. The Utility RELIEF Act will increase funding for programs that help Marylanders access modern, efficient, and affordable clean heating and cooling technologies, empowering families to lower these costs, while growing our state’s clean energy economy and reducing pollution,” said Senator Ron Watson (D-23-Bowie). 

Senator Watson had introduced SB622 during the session, which expanded the use of the SEIF to include both building and transportation electrification. Senator Watson ensured the inclusion of this language in the Utility RELIEF Act. 

“We commend the Maryland General Assembly for strengthening Maryland’s building decarbonization and energy affordability policy leadership in the Utility RELIEF Act by directing more funding to proven, practical building electrification investments that reduce energy costs, putting money back in Marylanders’ pockets," said Brian Jenkins, senior regional manager, Mid-Atlantic at the Building Decarbonization Coalition. “This legislation action will also create jobs for Maryland contractors, electricians, and building trades professionals, while also accelerating Maryland's transition to a more affordable, reliable, and sustainable energy future.”

Upgrading Maryland’s buildings with heat pumps and other modern electric heating technologies will deliver significant benefits to Marylanders. Heat pumps are up to three times more efficient than traditional gas furnaces. On average, Maryland households can save $250–$550 on annual energy bills by using a heat pump, with greater savings for electric resistance heating systems and heating systems that use delivered fuels.

An economic analysis of Maryland’s Climate Pollution Reduction Plan, which includes several heat pump and other building decarbonization initiatives, finds that full implementation of the plan between 2024 and 2031 would reduce annual energy costs for most Maryland households by a total of $2,600 to $4,000 over the seven-year span while creating 27,400 additional jobs.

“As detailed in our recent report, Orchestrating the Future of Home Energy Management, there is a large gap between the percentage (86%) of U.S. households that want to reduce energy usage at home and the percentage (50%) who are actively taking steps to do so,” said Chris Dellinger, Maryland business development manager, Schneider Electric Buildings America. “The Utility Relief Act will help close that gap in Maryland by making it easier for families in the state to secure the resources they need to upgrade their homes with heat pumps, which have been shown to be two to three times more efficient than electric resistance heating systems, and oil, propane, and gas furnaces.”

In addition to improving energy affordability and creating clean energy economy jobs in Maryland, the building electrification provisions in the Utility RELIEF Act will also support Maryland’s decarbonization goals to reduce greenhouse gas emissions by 60% in the next five years and attain net-zero emissions by 2045.