Hearing on Maryland Wood Heat Legislation

The Economic Matters Committee of the Maryland House of Delegates heard testimony on HB 829, the Renewable Energy Act for All, on March 16. HB 829 has the support of the Maryland Energy Administration, who would implement it and scores of organizations and businesses.

HB 829 has secured broad support because it combines and balances a number of important goals in Maryland, including promoting renewable energy, helping low and middle-income residents to affordably heat their homes, changing-out older wood stoves, etc.

HB 829 would provide a grant of up to $1,500 for pellet stoves and for wood stoves for families that live in rural areas and heat with one of the expensive heating fuels: electricity, propane or oil. Families with household incomes over $75,000 would be eligible for a 30% rebate and under $75,000 would be eligible for 40%. HB 829 would

· Only incentivizes new wood stove installations in rural areas

· Provide greater benefits for lower income families

· Target families who use the most expensive heating fuels (oil, propane and electricity) to provide them a more affordable option

· Requires professional installation (thus creating more jobs and ensuring safety)

· Encouraging the removal old, non-EPA certified stoves

· Set lower emission standards than most other incentive or change-out programs

HB 829 has a wide range of industry, environmental, forestry and renewable energy support including: American Wood Fibers (Columbia), Baltimore Biomass, Chesapeake Climate Action Network, Courtland Hardware, Maryland Clean Energy Center, Maryland Energy Administration, Maryland Forests Association, Metropolitan Council of Governments, SOS Corn Heating Cooperative (Takoma Park), Survival Products (Salisbury) and scores of others.

HB 829, Summary of Renewable Energy for All Act

Purpose: to establish a renewable energy grant program in Maryland for residential wood and pellet heating units. Unlike the current renewable energy grant programs for solar, wind and geothermal, this program is designed mainly for low and middle-income families. Unlike those programs, which can provide very large grants mainly to wealthy families, this would provide a maximum grant of $1,500 so that available funds can benefit many families. The program would establish the strictest emission limits on wood and pellet stoves in the United States.

Benefits:
• Displaces expensive and carbon intensive heating fuels: oil, electricity and propane.
• Keeps heating dollars in the U.S. and often in Maryland.
• Provides jobs in rural communities.
• Provides energy independence and security.
• Provides more economic security for low-income families who would otherwise have to pay high-cost fossil fuel utility bills.
• Drives customers to the cleanest stoves and thus avoids the installation of hundreds of dirtier models.
Grant amount: 30 – 40% of purchase and installation price up to a maximum of $1,500 per family. Installation by a certified installer required.
• 30% Household income > $75,000
• 40% Household income < $75,000
• Extra $250 for the trade in of a non-certified EPA stove. The installer and/or stove retailer is responsible for handling trade-ins.

Rationale: This provides 1. larger grants for low-income families who most need it, 2. An incentive to choose the cleanest stoves on the market today, and 3. an additional incentive to get older, polluting stoves out of circulation instead of being sold on second hand market.

Equipment eligibility: Pellet stoves that emit less than 1.5 grams per hour and wood stoves that emit under 3.0 grams per hour.
Rationale: EPA currently allows up to 7.5 gr/hr for wood stoves and no upper limit for pellet stoves. The only other statewide limits are in Washington that allows up to 4.5 gr/hr and Oregon that allows up to 2.5 gr/hr for their tax incentive program. This would establish Maryland as a leader in promoting the cleanest stoves on the market today.

Household eligibility: For woodstoves, families whose primary heat is electricity, oil or propane; for pellet stoves, any household in the state.
Rationale: This would target 1. Families who have the most expensive heating systems, and 2. Rural families who do not live in densely inhabited areas and 3. Rural families who do not live in the air quality non-attainment zone that extends up and down the DC – Baltimore corridor .