The Maryland Senate is poised to make a significant leap in energy policy with the introduction of the Abundant Affordable Clean Energy Act (ACE), also known as SB 316. This comprehensive legislation aims to tackle rising energy costs, enhance grid reliability, and expand clean energy resources across the state.
At the heart of the ACE Act is a competitive procurement process designed to accelerate the development of battery storage and renewable energy projects. This initiative comes in response to a staggering 800% increase in capacity prices from the 2025-2026 PJM capacity auction, which will directly impact Maryland ratepayers. The bill seeks to prioritize projects that can quickly navigate the severely backlogged PJM interconnection queue, which currently has wait times extending up to five years for new project approvals.
Before you scroll further...
Get access to the words and decisions of your elected officials for free!
Subscribe for Free Senator Feldman emphasized the urgency of the situation, stating, "Maryland has benefited from stable electric prices for decades, but the current energy landscape demands immediate action." The ACE Act aims to ensure that Maryland can efficiently bring new clean energy online while protecting consumers from escalating costs.
The legislation sets ambitious targets, including a commitment to achieving 50% clean energy by 2040 and enhancing incentives for solar and wind energy projects. It establishes a utility-scale solar program supporting at least 3,000 megawatts of new solar projects by 2035 and introduces a small solar facility incentive program to expand distributed generation.
Moreover, the ACE Act addresses the critical role of nuclear energy in Maryland's energy mix. It provides zero-emission credits to support the Calvert Cliffs Power Plant, which supplies nearly 40% of the state's electricity, ensuring its continued operation amid impending federal relicensing deadlines.
The bill also includes provisions for ratepayer protection, establishing an escrow account to refund ratepayers and redirecting tax revenues from data centers to stabilize costs. Additionally, it mandates strong labor protections, prioritizing local workers and apprenticeship opportunities in clean energy projects.
As the committee prepares to review the ACE Act, stakeholders from various sectors, including environmental advocates, labor unions, and energy developers, have expressed strong support. The coalition backing the bill underscores its potential to create a balanced approach to energy policy that benefits both the economy and the environment.
In conclusion, the ACE Act represents a transformative step for Maryland's energy future, promising to address pressing challenges while positioning the state as a leader in clean energy innovation. The committee's favorable report on SB 316 could pave the way for a more sustainable and affordable energy landscape for Maryland residents.