On the final day of the 2021 Legislative Session, with overwhelming and bipartisan support, the Maryland General Assembly passed legislation that will make Maryland a national leader in geothermal energy and create new high-paying drilling and installation jobs throughout state by creating a first-of-its-kind geothermal carveout within Maryland’s existing Renewable Portfolio Standard (RPS).
Sponsored by Senator Brian Feldman (D-Montgomery) and Delegate Lorig Charkoudian (DMontgomery), the bill allows Marylanders to take advantage of the thermal energy in the ground, which remains at a constant temperature of 55 degrees year-round. By harnessing that thermal energy, geothermal systems are the most efficient and lowest carbon approach to electrifying heating and cooling in buildings1 . More than 70% of energy usage in homes comes from heating, cooling, and water heating. Installing a geothermal heating and cooling system can immediately reduce a home’s carbon emissions by as much as 80%, and eliminate the need to buy heating fuel
Passing this legislation will help Maryland meet the Governor’s 2030 Greenhouse Gas Reduction Act Plan goals, which calls for a 50% reduction in emissions by 20302 . As the Plan clearly shows, hitting this target will require Maryland not only to decarbonize its electricity grid, but to dramatically reduce its reliance on the fossil fuel energy sources that currently heat the majority of the state’s residential and commercial buildings. Today, about 18% of Maryland’s greenhouse gas emissions come from heating and cooling in buildings3 .
The legislation had broad support, not just from the geothermal industry – including the more than 130 Maryland companies that comprise the Maryland Geothermal Association and the Maryland Water Well Drillers Association – but from environmental justice advocates, labor organizations, the NAACP, environmental groups and others.
“Geothermal is a labor and capital intensive industry that creates high-paying jobs in the State,” said Adam Santry, President of the Maryland Geothermal Association. “This bill will help Maryland catch up to other states with geothermal incentives already in place, grow good-paying jobs and make the benefits of clean, efficient heating and cooling available to all Marylanders, including low and moderate income communities.”
Many part-time geothermal employees also serve as well drillers, HVAC installers, or oil & gas professionals. A steady stream of geothermal installation work supplements income for HVAC professionals, or in the case of well drillers, helps keep their companies in business. Many well drillers make the majority of their income from geothermal projects, since the same rigs and equipment used to drill water wells are used for geothermal.
“Without the presence of geothermal projects in Maryland, this industry would shrink greatly and we would lose much of our in-state well drillers and drilling expertise,” said Mike Hall, owner of Somerset Well Drilling on Maryland’s Eastern Shore. “The industry strongly supported this bill because of the projects and jobs it will ensure right here in the State. Our RPS is currently benefiting other states from a dollars and jobs perspective and this bill will go a long way to help change that.”
The bill was also supported by environmental justice advocates because it would require that 25% of the new carveout be dedicated to projects that serve low and moderate income populations throughout the state, including multi-family buildings, schools, and hospitals.
“For the first time, disadvantaged communities and low and moderate income residents will be the focus of an aspect of the RPS program,” said Susan Stevens Miller of Earthjustice. “Expressly including these often overlooked communities demonstrates a recognition that these residents deserve to reap the benefits of clean energy and that Maryland recognizes that a concerted effort is necessary to reach this market.”
In addition to environmental justice advocates, the legislation also received the full support of organized labor because it includes specified industry-supported standards to which large-scale installers must adhere as well as a 10% apprenticeship workforce requirement on those largescale projects, which will expand the State’s apprentice workforce.
It currently awaits Governor Hogan’s signature.
