Maryland targets more solar power, offshore wind, electric cars

January 21, 2010

Maryland will offer tax credits for its residents to buy electric cars like the Chevy Volt

Maryland’s Governor, Martin O’Malley, has unveiled a new Clean Energy Agenda that targets fresh incentives for solar power, electric cars and a big push for offshore wind.

The Governor’s 2010 Energy Agenda seeks to create jobs in the state and will include a continuation of the renewable energy tax credits scheme that had been due to close at the end of the year.

The scheme allows businesses financial support to switch towards sourcing their own renewable energy.

Other legislation proposed within the agenda includes a plan to accelerate Maryland’s solar Renewable Portfolio Standard, and set new incentives for the use of electric cars as they become commercially available.

The Governor also wants to develop offshore wind energy legislation to establish a suitable framework with which to encourage the development of offshore wind farms.

Governor O’Malley explained: “Each element of our energy agenda is structured to provide resources and incentives for our families and workforce, create jobs, and fuel innovation as we continue to strive for a Maryland that is truly Smart, Green and Growing.”

Solar acceleration

The Energy Agenda’s proposals for solar include accelerating the solar Renewable Portfolio Standard requirements from 2011 to 2017 – essentially requiring power utilities to support more solar schemes more quickly.

The Solar RPS will be more evenly phased in over the next decade under the plan, providing more long-term support for the state’s solar industry, with targets more in line with New Jersey and Delaware.

Renewable tax credits

Gov O’Malley said the current renewable energy production tax credit, which had been due to expire at the end of 2010, would instead continue with the existing program cap of $25 million.

The scheme offers Marylanders a state income tax credit of around 0.85 cents per kilowatt-hour (kWh) of renewable power they generate, or 0.5 cents per kWh for co-firing projects, up to a $2.5 million sum.

Electric vehicles

Those using electric vehicles like the forthcoming Chevy Volt, or expected models from Chrysler, Nissan, Ford or Toyota, would be eligible for tax credits under the Energy Agenda proposals.

These credits would be made against the vehicle excise tax upon purchase of the vehicle, and could be as much as $2,000 per vehicle.

The scheme would operate for three years, limited to one application per individual or 10 per business. The Governor’s officials believe the scheme will cost around $279,000 in the first year, 2011, and will be funded from the Regional Greenhouse Gas Initiative.

Electric vehicles will cut petroleum use and greenhouse gas emissions, and increase the State’s and the nation’s energy independence while lowering fuel costs and improving air quality, the Governor believes.

Offshore wind

The other main strand of the Governor’s energy plans includes setting up an effective regulatory framework for offshore wind development.

This will plug gaps in the existing regulations in this area, paving the way for formal offshore wind energy proposals to come forward.

It will include proposals to clarify the Public Service Commission’s work regulating transmission lines bringing power ashore from offshore wind farms. One aspect will be to amend beach erosion controls to allow the construction of submerged or buried power cables under certain conditions.

“Empowering families”

Energy Administration Director Malcolm Woolf said of the 2010 Energy Agenda: “Together with Governor O’Malley, we are focused on helping empower families and businesses take charge of their energy use, while moving towards a more green energy economy.

“This means creating legislation to support renewable energy programs, create green jobs, and promote the expansion of new technologies such as plug-in vehicles and the development of off-shore wind.”