The Maryland Senate reversed course yesterday on a key piece of Gov. Martin O'Malley's plan for reducing the state's energy consumption, giving it preliminary approval after reaching a compromise that directed more money toward financial help for lower-income families' electric bills.
The legislation had failed Tuesday as lawmakers and the administration sought disparate ways to spend a new pool of money from a greenhouse-gas reduction initiative. Some lawmakers wanted to spend more on direct rate rebates to consumers, while O'Malley and other lawmakers wanted to dedicate a bigger portion of the proceeds to programs designed to cut energy use, which they contend would save consumers more over the long run.
The state anticipates raising about $140 million a year or more by requiring utilities to buy and sell "allowances" for emissions from fossil-fuel plants that can then be traded through auctions starting in September. The cap-and-trade system with neighboring states is intended to help curb global warming.
After taking a procedural vote to reconsider the bill that had failed, the Senate voted to amend the bill to reduce the rate relief and direct more money to the Electric Universal Service Program, which provides assistance to the poor. The amendment also dictates that half of the auction proceeds be dedicated to energy-efficiency and conservation programs, with the rest going to renewable energy initiatives and other projects.
Meanwhile, the House of Delegates gave preliminary approval to its version of the bill yesterday, setting out a different formula for spending the auction proceeds. But Del. Dereck E. Davis, chairman of the Economic Matters Committee that considered the measure, said he thought the two chambers could reconcile their differences. They would have to do so before the session ends Monday.
"We need to hurry up and get this done," said Davis, a Prince George's County Democrat. "But I don't think we're that far off."
Under the House bill, the formula roughly follows the Senate's version. But if the auctions raise more than $140 million a year, that chamber would dedicate the balance to rate relief.
Sen. E.J. Pipkin, an Eastern Shore Republican, argued that ratepayers deserve a bigger break, especially as they are struggling with higher prices for electricity and a host of other consumer goods. He called the compromise amendment a victory for bureaucrats at the Maryland Energy Administration, which would run the efficiency and conservation programs.
