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Proposed RPS overhaul would move ACPs into escrow to fund solar procurements, staff say
Summary
At the Feb. 17 energy subcommittee briefing, staff described HB 345, which would redirect alternative compliance payments into an escrow outside the state budget to pay for existing solar commitments and to fund two new solar procurement streams (distributed <=5 MW and annual competitive utility‑scale procurements up to 2,000 MW); members pressed staff on ratepayer impacts and funding stability.
Legislative staff and PSC analysts briefed the Environment and Transportation Committee’s energy subcommittee on Feb. 17 about House Bill 345, a substantial proposal to change how Maryland funds and procures solar resources and how the Renewable Portfolio Standard (RPS) operates.
Steve, a committee staff presenter, said HB 345 would ‘‘package’’ alternative compliance payment (ACP) revenue, franchise tax revenue from large data centers and any additional required funds into an escrow account outside the state budget. That escrow, Steve said, would fund three ongoing streams: (1) payments to uphold existing solar program commitments, (2) a distributed‑system incentive program for smaller systems (defined in the bill as 5 megawatts or less, including rooftop and community solar), and (3) a utility‑scale procurement program administered through annual competitive solicitations that could procure up to 2,000 megawatts per tranche by 2035. ‘‘The escrow account then effectively funds three different procurements on an ongoing basis,’’ Steve said. ‘‘ACPs would no longer be in the state budget; they would go to the escrow.’’
Staff explained technical RPS background for the committee: the statutory…
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