Key Takeaways
The Maryland General Assembly concluded its spring 2025 legislative session on April 7, 2025. The General Assembly spent a considerable portion of the session attending to the State's pressing budget issues. As a result, many of the key environmental and energy bills moved slowly through the legislative process. Nevertheless, the General Assembly passed several important bills (in many cases, in the waning days of the legislative session). Key legislative changes include:
- Creation of an Extended Producer Responsibility Program for Packaging framework;
- Revised permitting/approval processes for energy generation projects, especially solar;
- Creation of a permitting process for incidental takings of certain endangered bats;
- Revised fees and penalties; and
- Modifications and clarifications to the State's building energy performance standards (BEPS) program.
All of the bills mentioned below have been presented to the Governor. Considering the timing of passage, the State's legislative procedures require a 30-day period for consideration by the Governor. Unless the Governor vetoes them (which we do not anticipate), these bills will become law. The Governor's Office has announced bill signing ceremonies for May 13 and May 20, 2025, but has not yet identified the specific bills that will be signed.
Summary of Key New Legislation
- Extended Producer Responsibility Program for Packaging and Paper Products (SB0901): After several years of interest and legislatively mandated studies, the General Assembly passed an extended producer responsibility program for packaging materials and paper products—making Maryland the sixth such state to do so (assuming Gov. Wes Moore does not veto the bill). Under the bill, producers of covered materials must submit (either individually or through the State-selected producer responsibility organization) a producer responsibility plan to MDE by July 1, 2028, in order to sell, distribute, or import covered materials in the State. The state-selected producer responsibility organization will set fees and reimbursement rates (which will be phased in over several years) annually to cover collection, transportation, and processing costs associated with recycling. Certain paper mills producing 100% recycled content and small retailers (such as restaurants and food carts offering food that is consumed without further preparation) are exempt. This bill has major implications for companies selling consumer goods in the State. The bill also expressly leaves open the possibility of a beverage container deposition-return system, although the Maryland Bottle Bill (HB0232/SB0346) (which has been introduced in various forms in many previous sessions) once again did not pass.
- Next Generation Energy Act (SB0937/HB1035): The Next Generation Energy Act is a comprehensive statutory package designed to increase energy generation in the State. The act, which was heavily amended during the legislative session, creates a fast track for 10 "dispatchable" energy generation projects in the State; while natural gas-fired generation is eligible for this fast track, the bill also requires that zero emissions projects must be awarded such fast-track status at a ratio of 4-to-1. The bill also creates financial incentives for battery storage projects (and further requires utilities to create plans to develop their share of 150 MW of such storage). The bill includes several other changes to the State's energy policy, including the removal of renewable energy subsidies for trash incineration, a procurement process for the State to explore new nuclear energy generation, and the creation of a process for commercial facilities (such as data centers) to negotiate direct power agreements.
- Renewable Energy Certainty Act (SB0931/HB1036): This bill aims to streamline and standardize the requirements for renewable energy development—and particularly solar—in the State. The act requires State agencies to develop standardized land use requirements for siting solar energy generating stations over 1MW and for energy storage devices. The legislation also preempts local zoning requirements prohibiting the construction or operation of solar energy generating stations and energy storage devices. Finally, the bill grants the Maryland Public Service Commission oversight authority over front-of-the-meter energy storage projects, and it creates a more streamlined process for community solar projects that are between 2MW and 5MW to obtain a certificate of public convenience and necessity (a "distributed generation certificate of public convenience and necessity").
- Bay Legacy Act (HB0506): This bill aims to improve the health of the Chesapeake Bay. The bill establishes a Water Quality Monitoring Program with the Maryland Department of Natural Resources to centralize water quality monitoring assessments and planning and to provide readily available water quality data to the public. The bill creates a certification program to incentivize farmers to adopt certain Bay-friendly practices and promote regenerative agricultural practices on state-owned lands. The bill also modifies the list of species that must be included in Fishery Management Plans and authorizes certain oyster restoration projects to be eligible to generate water quality trading credits.
- Incidental Taking of Endangered Bats (SB0946/HB0894): This legislation allows for the incidental taking of certain species of endangered bats provided the landowner/business applies for a permit from DNR and first creates a habitat conservation plan. The bill provides greater certainty for operators in the State's forestry and agricultural industries to conduct necessary operations without incurring liability for incidental taking of bats.
- Coal Combustion Residuals Regulation and Fees (SB0425): This legislation implements several changes to the State's approach to coal combustion residuals (CCR or coal ash). In particular, the bill requires that MDE issue regulations adopting the federal legacy coal combustion residuals final rule (adopted May 8, 2024), thereby codifying the Biden administration's approach to CCR and ensuring implementation of the rule in the State even if the federal rules change. The rule also requires testing for at least seven additional chemicals (including arsenic and hexavalent chromium). Finally, the rule changes the fee structure for CCR, using the volume of CCR stored as the new benchmark (rather than the amount of CCR generated). Thus, this change in fee structure will have a significant impact on legacy power plant operators; while the fee only applied to current generators under existing law, the fee will now apply to former generators.
- MDE Fee and Penalty Increases and Other Regulatory Adjustments (SB0250): The General Assembly increased a number of MDE fees and penalties for various applications and programs in MDE's purview and created new fees in a few instances. Additionally, the bill alters and enhances the regulatory framework related to the construction, reconstruction, repair, removal, modification, and operation of dams in the State.
- Building Energy Performance Standards Alterations (HB0049): As discussed in greater detail in a separate alert, the General Assembly passed several adjustments to the State's authorizing statute for the building energy performance standards (BEPS) program. The amendments clarified the definition of manufacturing, added hospitals to the set of excluded buildings, created a crediting system for onsite generation of renewable energy, expanded the exclusion for backup generators, and created various waivers (allowing continued use of existing equipment through its useful life or for impracticality or infeasibility). These changes will take effect on October 1, 2025, and require MDE to update its BEPS regulations. Considering the initial benchmarking reports are currently due on September 1, 2025, we anticipate that MDE will likely further delay the reporting deadline. Additionally, considering the final bill was much narrower than originally proposed (and, moreover, that other BEPS-related bills, including the Better Buildings Act of 2025 (HB0973/SB0804)) were not ultimately passed), we anticipate additional legislative action on the BEPS program in the 2026 and potentially 2027 sessions.
- Study of Greenhouse Gas Emissions (HB0128/SB0149): This bill authorizes a study of the effects and costs of greenhouse gas emissions on the State. In particular, the study includes an economic analysis to determine whether a fee levied on large emitters of greenhouse gas emitters would create costs that are passed on to taxpayers. The bill is primarily notable, however, for what it omits: The original version of the bill included a program that was much like Vermont and New York's "climate Superfund" laws, but that portion of the law was removed via amendment. We expect that similar legislation (often called the "Responding to Emergency Needs from Extreme Weather" or "RENEW" Act) will be reintroduced in future sessions.
Looking Ahead
Due to the bandwidth required to address the State's budget issues, many bills stalled out during the 2025 legislative session. Several of these bills touched on high-profile issues, and we expect many to be reintroduced in future years.
- PFAS: The General Assembly considered numerous bills that touched on PFAS, including bills that would have imposed a wide-reaching ban on PFAS-containing products and pesticides and expanded legal exposure for producers of PFAS. While some of these bills received some traction, they ultimately were not enacted. Due to the increasing scrutiny on PFAS nationwide, we expect further attempts to impose legislative restrictions on PFAS in future sessions.
- CHERISH Our Communities Act (SB0978/HB1484): This bill aims to incorporate environmental justice considerations more fully into permitting decisions at the Maryland Department of the Environment. The bill received a hearing in both chambers, but failed to advance further. Nevertheless, the bill is likely to return in the future—especially in light of the federal government's de-emphasis on environmental justice considerations at the federal level.
- Transportation-Related Action: Several bills relating to additional funding for public transportation and the protection of cyclists and pedestrians did not pass. We expect that advocates will continue to push for legislation that prioritizes the development of roads and other infrastructure that prioritizes public transportation, cycling lanes, and sidewalks.
- Advanced Clean Cars and Trucks Implementation (HB1556): The legislature initially proposed a bill that would have delayed the enforcement of penalties for the Advanced Clean Cars II and Advanced Clean Trucks rules for two years. These programs, originally developed by the State of California but subsequently adopted by the State of Maryland, require vehicle manufacturers to sell more zero-emission cars and trucks. Although the bill did not pass either chamber of the General Assembly, Governor Moore issued an executive order on April 4, 2025, directing MDE to exercise enforcement discretion in implementing the program for the first two years.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
