The POWER Act will accelerate the clean energy transition, ensure the construction of transmission lines, and create quality jobs in Maryland

ANNAPOLIS, Md., April 10, 2023 – Today, national business association Advanced Energy United celebrated the Maryland General Assembly’s passage of the Promoting Offshore Wind Energy Resources Act (SB781/HB793), known as the POWER Act. Advanced Energy United represents the full range of technologies and services needed for 100% clean energy in Maryland and nationally, ranging from solar installers and EV manufacturers to energy efficiency companies and transmission developers, and more. The legislation, which is expected to be signed by Governor Wes Moore, lays a foundation for offshore wind and transmission line development in Maryland.

“The POWER Act will help transform the way Maryland powers its homes and businesses, and is a crucial step for Maryland to meet its laudable renewable energy goals,” said Nick Bibby, Maryland state lead at Advanced Energy United. “In addition to setting the ambitious 8.5 GW goal for offshore wind power production, the bill will improve the transmission infrastructure planning process to improve grid efficiency and resiliency, lower utility bills for homes and businesses, and create good-paying jobs that connect Maryland to wind and solar resources.” 

Once signed by Gov. Moore, the POWER Act will direct the state to manage competitive transmission procurement and establish a coordinated transmission network that would help address interconnection, resilience, and reliability issues that currently complicate renewable energy resource projects. Importantly, that procurement process will be done in coordination with the PJM Interconnection and will explore opportunities to coordinate with other states, to help foster regional solutions to transmission challenges. 

The POWER Act will also require community benefits agreements from offshore wind developers to ensure wage and benefits protections and spurs economic activity and investments in small businesses and businesses owned by women, veterans and people of color.  

“Thanks to leadership from Sen. Katie Fry Hester and Del. Lorig Charkoudian, Maryland will soon be on a path to meet its ambitious 8.5 GW offshore wind target and establish the state as a regional player in renewable energy,” Bibby added. 

Background on the POWER Act

The POWER Act (SB781/HB793) is meant to help Maryland meet its ambitious goals for climate pollution reduction (60% reduction by 2031, via the Climate Solutions Now Act of 2022) and renewable energy generation (50% by 2030 including at least 1200 MW of offshore wind, set by the Clean Energy Jobs Act of 2019). Introduced by Sen. Katie Fry Hester and Del. Lorig Charkoudian, the POWER Act has now passed both legislative chambers, and should go to the Governor’s desk later this week.

Specifically, the POWER Act does four key things: 

1. Sets an offshore wind goal of 8.5 GW by 2031: by setting this target—which Gov. Wes Moore recently endorsed—Maryland is sending a clear signal to the market and regulators on the federal and state level that the state is friendly to offshore wind and has aspirations for investments in the industry. The target includes the current Public Service Commission (PSC) approved Offshore Wind Renewable Energy Credits (ORECs) of Round 1 and Round 2 and any other procurement efforts. 
2. Facilitates coordinated transmission infrastructure development: recognizing that both the buildout of renewable energy resources and the security of our electric grid depend on strengthening and expanding our transmission system, the POWER Act first calls for the PSC and Maryland Energy Administration (MEA) to request that the PJM Interconnection conduct a study of necessary transmission system upgrades and expansion options. The PSC shall then issue or request that PJM issue competitive bids for transmission, and may select proposals to build transmission by December 2027, assuming the net benefit cost of coordinated transmission is less expensive for ratepayers than compared to a baseline of building transmission independent of coordinated development.   
3. Creates good jobs: to ensure the creation of good jobs, the POWER Act requires a community benefits agreements from companies building the offshore wind turbines and transmission infrastructure. The bill also prioritizes economic activity and investments in small businesses and businesses owned by women, veterans, and/or people of color. Americans for a Clean Energy Grid estimates that in the Eastern US alone, expanding and modernizing the transmission grid would unleash up to $7.8 trillion in investment and generate more than 6 million net new jobs, primarily in rural areas.  
4. Procures offshore wind from existing lease areas: the POWER Act requires Maryland use State and Federal funding mechanisms to directly procure offshore wind energy by July 2024 for up to 5,000,000 MWh annually from existing lease holders. Both Orsted and US Wind have existing space in their lease areas for additional wind power development, but the current law does not allow for additional development that may impact ratepayers. Thus this legislation allows for construction of additional projects without the cost or risk accruing to ratepayers, so that Maryland benefits from up to 1600 MW of additional offshore wind energy.