Md. legislators propose $40 million clean energy jobs bill

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ANNAPOLIS — Lawmakers in the House of Delegates and Senate are proposing a $40 million plan to train workers for careers in clean energy as they seek to expand mandates on the amount of renewable energy used in the state.

Del. Dereck Davis, D-Prince George’s County and chairman of the House Economic Matters Committee, and Sen. Catherine Pugh, D-Baltimore City, said they would sponsor versions of the bill in the legislative session that begins next month.

“These jobs are well-paying jobs and provide a path to the middle class,” Davis said. “This is not a choice between fighting climate change and improving the economy. I believe they are the same thing.”

Money for the program would come from an agreement between the state Public Service Commission and Dominion Energy related to approval of the Cove Point liquefied natural gas export facility in Lusby. The power company has agreed to pay $8 million annually into a fund managed by the Maryland Energy Administration.

Pugh said the money would be used to pay for job training at community colleges around the state, including Baltimore City Community College.

Supporters estimate that the proposal could create as many as 2,000 jobs.

The bill is expected to be part of an effort to increase mandates on the amount of energy generated by wind and solar sources in Maryland to 25 percent by 2020. Currently the state goal is 20 percent by the same year.

How expensive the proposal would be is up for debate.

In October, a study conducted for a legislative commission examining how to make the state more business-competitive identified Maryland as a high-cost state and specifically listed energy costs as a concern for businesses.

“High utility costs are particularly burdensome for manufacturers and have likely contributed to the industry’s quicker disappearance in the state than elsewhere,” according to an October Moody’s Analytics report conducted for the Maryland Economic Development and Business Climate Commission. “Other mid-wage industries such as transportation and warehousing also use a lot of utilities, and the high prices in Maryland can prevent new businesses from relocating to or expanding within the state.”

Last year, legislation that would have increased the percentage of renewable energy used in Maryland to 40 percent by 2025 died committee in both the Senate and House.

Supporters say that the effort to increase the percentage of renewable energy generated and used in Maryland would cost customers about 52 cents per month — the same figure used at Tuesday’s news conference — and that other benefits would outweigh concerns about costs.

“That’s 52 cents per average ratepayer then minus … the health impacts,” said Mike Tidwell, director of Chesapeake Climate Action Network. “So the social costs of fossil fuels are avoided for a small premium (plus) the jobs component.”

A legislative analysis placed the costs at between 17 and 68 cents per month by 2018 and between 77 cents and more than $3 by 2020. By 2025, the costs are projected to grow to between $2 and $8 per month, according to the analysis based on a 40 percent requirement.

That same analysis rated the impact to small businesses as meaningful because of its potential to increase utility costs.

Both Davis and Pugh voted against the legislation last year. Davis said some details of that bill were “a bit unsettling for some.”

“That’s part of the legislative process,” Davis said. “When you have complex bills that have far-reaching ramifications, they don’t always pass in the same year they are submitted.”