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County staff brief council on major state energy package, warn of trade-offs on gas, nuclear and solar

Montgomery County Council - State Legislative Update · February 10, 2025
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Summary

County DEP staff summarized a recently released state energy package that incorporates the governor’s bill and a leadership three-bill package to accelerate natural-gas plants, incorporate nuclear into the clean-energy standard, and limit local controls over large solar and battery projects.

County Department of Environmental Protection section chief Garrett Fitzgerald briefed the Montgomery County Council on Feb. 17 about a leadership energy package and the governor’s competing energy bill.

Fitzgerald said the governor’s HB505 would rename Maryland’s renewable portfolio standard the "clean energy standard" and allow nuclear energy to count toward targets. Leadership then dropped a three-bill package (notably HB1035/HB1036/HB1037) that would accelerate approvals for new natural-gas power plants, require comprehensive state energy infrastructure planning, and impose statewide siting standards for larger solar and battery projects.

"One bill will accelerate natural gas power plants and another says local governments will no longer be able to prevent solar projects above 2 megawatts from being built nor put conditions on them," Fitzgerald told the council. He said the leadership package also effectively removes local personal- or real-property taxation of solar projects while allowing payment-in-lieu-of-tax arrangements that county staff estimate would generate significantly less revenue than current tax treatment.

Council members asked specific questions about energy-mix targets for nuclear versus renewables; Fitzgerald said the governor’s proposal maintains existing renewable targets while permitting nuclear to be counted toward increases, and that other leadership-bill provisions on the energy mix were numeric in places when tied to replacing coal and oil plants at peak summer demand.

Several council members cautioned that some of the leadership proposals (in particular the solar siting and taxation changes) raise local land-use and fiscal concerns. Fitzgerald recommended continued coordination with the Maryland Association of Counties and county legislative staff before testimony and committee hearings.

Why it matters: The package could change how the state balances climate goals, reliability and local authority, with potential fiscal effects for counties that now collect property taxes on certain energy projects.

Next steps: County staff will continue analysis and coordination with Mako and the county delegation ahead of committee hearings in late February and March.