The 2022 General Assembly Session is actively pursuing policy priorities across a wide array of topics, but I thought I’d focus on environmental issues in this edition.
It’s always an area of focus, but this time around, the goals and priorities are more aggressive, and as a result, potentially a more worrisome set of concerns for the business community in Maryland and in Frederick County.
One of the most concerning aspects of the pending legislation are restrictions, or even an outright ban, on the use of natural gas for heating Maryland homes and businesses. Nearly ½ of Maryland families currently rely on natural gas to heat their homes. Given that, our statewide energy policies need to be balanced, thoughtful and represent the interests of consumers as a serious priority. This does not mean that we take our obligation to our natural environment seriously, It just means that we’ll advocate for balanced solutions that don’t exacerbate the fiscal challenges we’ve all faced in the last few years.
In addition to ignoring the critical role of natural gas in Maryland and across the U.S. in reducing emissions by displacing coal as a primary fuel for electricity generation, these bills fail to provide real solutions, while passing significant costs down to Maryland families and businesses. Specifically, the legislation:
- Fails to prioritize investments in the numerous existing and emerging net-zero energy technologies like renewable natural gas (RNG) and hydrogen.
- Fails to appropriately address the primary sources of emissions in Maryland like those from the transportation sector.
- Fails to truly address the financial burden of electrification on businesses, our seniors, working families, rural and low-income communities at a time when so many are still recovering from the pandemic.
- Fails to address the repercussions of significant job losses across the state.
- Fails to consider that Maryland’s existing electric grid is already congested, that there is not nearly enough renewable energy available or that building out the electric infrastructure required by these bills is impossible within the timeframe, will cost the state billions and will significantly increase energy costs for Marylanders – particularly in communities that can least afford it.
- Natural gas is the energy choice for many Marylanders and is often the lowest utility bill a family pays. In this economy, every single dollar counts. Forcing seniors to choose between medicine and groceries or heating their home affordably in the winter is unacceptable. Making employers decide between hiring a new worker, investing in their business or keeping up with escalating utility bills is not the healthy path to economic recovery.
- Arbitrarily limiting energy choice will increase costs and disproportionately affect consumers and households on low- and fixed-incomes, inflicting economic challenges on citizens during a time when they can least afford it – especially with persistent increases seen in electric costs and consumer inflation throughout 2021.
- In addition to significantly increased energy costs, mandating electrification for residential and consumer buildings in Maryland will require Maryland homeowners to replace existing home appliances.
- Depending on the appliance models, home configuration, labor, and reliance on natural gas, full electrification could cost as much as $26,884 for a household to retrofit existing appliances.
- Natural gas is a critical resource for a wide range of business sectors central to Maryland’s economy. Banning its use would unnecessarily and negatively disrupt business models and greatly hinder Maryland’s economic competitiveness.
- Short-sighted natural gas bans would be another impediment to bringing back Maryland’s most important economic generators as they deal with continued supply chain disruptions and rising prices.
- The small businesses that are the lifeblood of our vibrant neighborhoods across the state rely on natural gas to power their operations. Forcing them to stop using affordable, cleaner natural gas will add unavoidable hardships to many of the state’s battered businesses.
One technology alone won’t get us to net zero. Significant progress towards decarbonization of our energy supply that limits the need for residents and businesses to make major changes in energy equipment and infrastructure and reduces the significant costs and land disruption of new electric grid infrastructure across the state is possible with a tapestry of approaches.
A holistic approach to Maryland’s net-zero carbon future should include:
- Improved end-use energy productivity and efficiency.
- Expanded solar and wind capacity.
- Rapid growth of bioenergy, hydrogen and synthesized fuel technologies.
- Leveraging existing natural gas infrastructure to deliver energy from net-zero-carbon sources.
- Leveraging the existing electric grid to maximize energy delivery from wind and solar
- Investments in CO2 capture utilization and storage.
- Significantly reduced emissions from the transportation and waste management (landfill) sectors.
- Capital investments in decarbonized energy solutions and technologies, rather than those that could be obsolete in the future.
- Rapid innovation to identify additional, real options for yet-discovered technologies.
The Maryland General Assembly is currently considering various legislative proposals including SB 528 – The Climate Action Now Act of 2022 and HB 831 – Reducing Greenhouse Gas Emissions – Commercial and Residential Buildings, which aim to reduce emissions in the state and build a more sustainable energy future. While Maryland is well-poised to lead the nation in emissions reduction, policies that force the rapid electrification of our homes and businesses are not realistic, affordable, equitable or sustainable.
Real solutions for meeting Maryland’s ambitious and necessary greenhouse gas (GHG) reduction goals can be accomplished without threatening jobs, economic recovery, energy reliability and energy affordability for Maryland residents and businesses. As our leaders move forward with bold policies to address the impacts of climate change, we must call on them to leave no strategy, innovation, stakeholder or Marylander behind.
– Rick Weldon, President & CEO
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