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The Maryland Climate Change Commission, established by Governor Martin O’Malley in 2007, encompasses the work of over 100 professionals in the areas of science, adaptation, and emissions reductions. The Commission work focuses on adaptation, mitigation and science and is predicated on the charge of the executive order to develop a comprehensive state-wide plan to address climate change. In January, the Commission released an interim report based on the scientific recommendation that the earlier actions to reduce greenhouse gas emissions begin, the easier they will be to undertake, and the more effective the results will be. This interim report contains both recommendations for legislation and recommendations for early executive action.
Maryland began to address climate change in 2006 with the passage of the Healthy Air Act of 2006 that required Maryland to join the Regional Greenhouse Gas Initiative (RGGI). RGGI is a cooperative effort by ten northeastern and Mid-Atlantic states to reduce carbon dioxide (CO2) emissions from electricity generating plants. RGGI includes Maryland, Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont.
In the United States, RGGI is the first program of its kind, a multi-state emissions cap and trade program with a market-based emissions trading system. The cap and trade program is designed to reduce CO2, a greenhouse gas, while maintaining electricity affordability and reliability. Maryland's participation in RGGI will reduce emissions from the State's electricity generators by roughly 10 percent from current levels by 2019.
Under RGGI, a CO2 cap will be established and based on that cap, emission allowances of CO2 will be auctioned. Maryland generators included in the RGGI program will need to purchase enough allowances through auctions to cover the tons of CO2 that they emit. The program will allow generators to offset their CO2 emissions through activities such as capturing methane gas from landfills or planting trees to capture CO2. The first auctions are scheduled for September 10th and December 17th of 2008.
With the first step of implementing RGGI well underway, Governor O’Malley introduced three other important initiatives that effect climate change during the 2008 Maryland General Assembly Session.
The first bill created the Strategic Energy Investment Program. This bill directs where proceeds from the RGGI auctions will be placed. The Strategic Energy Investment Program will assist consumers by providing short-term rate relief and the majority of the funds will promoting long-term investments in energy efficiency and renewable energy, which will lead to significant reductions of greenhouse gas emissions.
The second part of the Administration package increased the percentage requirements of the Renewable Energy Portfolio Standard to 20% in 2022. For electricity generators already operating in Maryland, the Renewable Portfolio Standard (RPS) requires an increase in renewable energy use. The objective of the RPS is to recognize and develop the environmental and consumer benefits associated with a diversity of renewable energy supplies to serve Maryland. The RPS requires that a set proportion of renewable energy be included in all retail electricity sales. Renewable Energy Credits (REC) are issued and can be bought, sold, or traded. The development of renewable energy sources is further promoted by requiring electricity suppliers to pay a financial penalty for failing to acquire sufficient RECs to satisfy the RPS requirements. Funds from the penalties are used to create renewable energy sources in Maryland. This market-driven policy will encourage competition and innovation in the field of renewable energy, while benefiting consumers by keeping energy prices at reasonable levels.
Governor O’Malley’s third major initiative, the EmPower Maryland legislation, establishes a target to reduce energy consumption by 15% by 2015. This is one of the most ambitious energy reduction goals in the Country.
Together, RGGI, the Renewable Portfolio Standard, EmPower Maryland, and the Clean Cars Program are expected to reduce over 25 million tons of CO2 by 2020. MDE estimates that not including growth, these programs represent 90% of what Maryland needs to reach a 25% reduction goal by 2020.
Another important piece of legislation recommended by the Commission also passed – the “Living Shorelines” bill. This departmental bill requires the use of nonstructural (living) shoreline stabilization methods, instead of the traditional hard shoreline methods such as riprap and bulkheads. This change is an important part of “adapting” to sea level rise.
A fourth proposal, the "Global Warming Solutions" bill, which would have set a reduction target of 25% of greenhouse gas (GHG) emissions by 2020 and a 90% reduction goal for 2050 in state law was heavily debated but not passed. The legislation was based on the scientific recommendation that the earlier actions are started, the easier and more effective they will be. While the policy framework the legislation would have provided was not adopted, the O’Malley administration is moving forward to implement programs that will help Maryland meet these goals and benefit from early action.
The Climate Change Commission will issue its final recommendations to Governor O’Malley in June of 2008. This report is expected to include over 50 recommendations for further greenhouse gas emissions reductions.
Click here to follow the work of the Commission.
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