Waste-to-Energy Subsidies in Maryland to Come to an End

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The Fate of Waste-to-Energy in Maryland
The fate of waste-to-energy (WTE) facilities in Maryland has been dealt a significant blow with the passage of a bill that eliminates subsidies for these types of facilities. The vote came on the final day of the Maryland legislature’s session, and the bill is now headed to the desk of Governor Wes Moore, who is expected to sign it into law. This development has significant implications for the environmental and energy sectors, and for communities that rely on WTE facilities for waste management and energy production. **Lobbying and Regulatory Changes**
The decision to eliminate subsidies for WTE facilities is the culmination of years of lobbying by environmental groups, who have long argued that WTE facilities are not a suitable replacement for more sustainable waste management practices. In 2011, Maryland included WTE as part of its Renewable Energy Portfolio Standard, a law that mandated investor-owned utilities to incorporate renewable energy sources into their portfolios. The law was seen as a positive step for the waste industry, but it ultimately led to community opposition to proposed WTE projects. Several proposed projects, including one planned for the Fairfield area of Baltimore, were ultimately canceled due to public concerns and lack of support. Despite this, WTE facilities continued to receive subsidies under the Renewable Energy Portfolio Standard. The Maryland General Assembly directed about $100 million in subsidies to incinerators in Maryland and Virginia between 2012 and 2022. Environmental groups had projected that a further $200 million in subsidies could be directed toward WTE facilities from 2023 to 2030 if the inclusion of WTE in the Renewable Energy Portfolio Standard was not repealed. **Statewide Impact**
The elimination of subsidies for WTE facilities will have a significant impact on Maryland’s energy landscape. According to the National Council of State Legislatures, about three dozen states, plus Washington D.C. and several U.S. territories, have enacted levels of renewable portfolio standard policies. These policies typically mandate or incentivize utilities to fund renewable energy production as part of their portfolio, including solar, wind, geothermal, and hydroelectric energy. The policy often includes a goal to reach a certain proportion of renewable energy by a certain year. More than a dozen states have set a goal to reach 100% renewables. Maryland is now one of the states that will not include WTE in its renewable portfolio standard policies, although it will include municipal solid waste incineration in its policies. **Effect on Waste Management**
The elimination of subsidies for WTE facilities will also have significant implications for waste management in Maryland. According to the Energy Justice Network, 17 states will include municipal solid waste incineration in their renewable portfolio standard policies, following Maryland’s lead. Two more states, Ohio and Missouri, include limited forms of incineration. The inclusion of WTE in renewable portfolio standard policies has been controversial, with environmental groups arguing that it incentivizes jurisdictions not to reduce waste. They have also decried the industrial pollutants that come from combustion. **Quotes from Stakeholders**
Marilyn Lynch, executive director of the Waste-to-Energy Association, said that Maryland lawmakers were playing politics in their decision to remove WTE from the Renewable Energy Portfolio Standard. “Instead of utilizing modern waste-to-energy (WTE) facilities, [Maryland Senate President Bill Ferguson] wants to send more waste and more money to landfill, one of the leading sources of methane in the country,” Lynch said in an emailed statement. “WTE facilities avoid methane emissions, generate nine times more energy than a landfill and recycle metal.”
Marilyn Lynch also highlighted the importance of modern WTE facilities in reducing waste and generating energy. “Unfortunately, Maryland residents will bear the brunt of its impact,” said Mary Urban, senior director of communications and community for Win Waste. “The bill approved by the legislature this week misaligns with the views of Maryland residents.”
**Financial Impact**
The elimination of subsidies for WTE facilities will have a significant financial impact on the industry. Win Waste, a company that operates a mass burn combustion facility in Baltimore, has received an estimated $15.5 million in subsidies from 2020 to 2023. The company has said that it may have to shut down the facility if its subsidy is removed, threatening its charitable contributions to the community. The company has defended WTE facilities as a “crucial solution for waste management and a valuable energy resource.” It has also pointed out that the bill approved by the legislature this week will have a negative impact on the community. **Conclusion**
The fate of waste-to-energy facilities in Maryland has been dealt a significant blow with the passage of a bill that eliminates subsidies for these types of facilities. The bill is now headed to the desk of Governor Wes Moore, who is expected to sign it into law. The elimination of subsidies will have significant implications for the environmental and energy sectors, and for communities that rely on WTE facilities for waste management and energy production. The bill approved by the legislature this week will have a significant impact on the community, and the industry will have to adapt to the new regulations. The fate of WTE facilities in Maryland will likely be decided in the courts, as the industry challenges the new law. The bill’s supporters argue that it will help reduce greenhouse gas emissions and promote more sustainable waste management practices. However, opponents argue that it will have a negative impact on the community and the industry, and that it will lead to job losses and economic disruption. The fate of WTE facilities in Maryland will likely be decided in the coming weeks and months, as the industry and its stakeholders work to adapt to the new regulations. The bill’s passage marks a significant shift in the state’s energy landscape, and it will have far-reaching implications for the environment, the economy, and the community.

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