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Republican bill would withdraw Maryland from RGGI, sponsors say program raises costs more than benefits

Education, Energy, and the Environment Committee · February 19, 2026

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Summary

Senate Bill 373 would require the governor to withdraw Maryland from the Regional Greenhouse Gas Initiative (RGGI), with sponsors arguing the program raises electricity costs and discourages in‑state generation; proponents said withdrawal would prioritize affordability and attract generation investment, while opponents argued removal would reduce climate benefits and revenue for programs.

Senator Steve Hershey presented SB 373, the "Restoring Energy Freedom Act," asking the committee for a favorable report on legislation that would direct the governor to withdraw Maryland from the Regional Greenhouse Gas Initiative (RGGI) effective June 1, 2026. "Marylanders should not be forced to pay a state imposed carbon tax embedded in their electricity rates," Hershey said, arguing RGGI drives up costs and reduces in‑state generation.

Senator Chris West and other supporters described personal outreach to industry and argued RGGI adds a compliance cost to Maryland generators that disadvantages them in PJM and encourages generation to locate in non‑RGGI states. Alex Pavlak of the Future of Energy Initiative testified that RGGI imposes a roughly $275 million annual burden on Maryland fossil generators (testimony cited the number in committee discussion), and that that differential undermines competitiveness and plant maintenance.

Proponents argued RGGI proceeds have been repurposed and that a withdrawal would protect ratepayers from what they called an embedded tax. Opponents and climate advocates were not present in force during this segment of the transcript; committee members asked detailed questions about generator economics, transmission, and how a withdrawal might interact with regional markets. The sponsor said the bill is limited to withdrawal and would not override local permitting or other existing authorities.

Committee discussion ranged from macroeconomic effects on generation siting to the program's role in funding energy assistance and clean energy programs; no vote was taken and the sponsor and committee signaled possible further discussions.