One year after a state environmental agency estimated that Maryland would need at least $10 billion to meet its ambitious climate mandates, the Maryland Commission on Climate Change took small steps on Thursday towards considering how to fund them. However, the panel did not go as far as some members had initially intended.
After intense negotiations between officials from Governor Wes Moore’s administration and environmental leaders on Wednesday, the climate commission adopted amendments to the original recommendations for generating revenues. Instead of implementing the proposals, the amendments call for studies on how they could be implemented.
This decision reflects the state’s worsening fiscal condition and the reluctance of Governor Moore and some state legislative leaders to adopt measures that could potentially raise taxes or increase energy costs for Maryland consumers.
Maryland Environment Secretary Serena McIlwain, who chairs the climate commission, stated at the virtual meeting that it is important to take a step back and assess the impact of these proposals on Maryland’s economy before moving forward. She also mentioned the need to consider the potential impact of the incoming Trump administration on federal funding opportunities for climate and clean energy programs, as well as the state’s ability to impose aggressive environmental regulations.
Although the climate commission’s recommendations are advisory, the panel includes several members of the governor’s Cabinet and carries weight with the governor and state lawmakers. This is especially important as the state grapples with how to fund the numerous mandates outlined in the Climate Solutions Now Act of 2022.
At the commission’s November meeting, McIlwain proposed tabling the discussion for a month after behind-the-scenes conversations among Moore administration officials. This was the final opportunity for the commission members to consider whether to include the proposals in their annual report.
The three recommendations being considered by the commission include creating a cap-and-invest program to make the transportation and building sectors pay for carbon emissions, establishing a fossil fuel transportation fee and mitigation fund, and assessing fines on 40 large fossil fuel companies to compensate the state for historic climate emissions and associated environmental damage. All three measures were introduced as bills in the last legislative session but did not pass.
The decision to table the discussion and conduct further studies reflects the state’s cautious approach to addressing climate change and its potential impact on the economy. It also highlights the challenges of balancing environmental goals with economic concerns. The outcome of these studies and potential future actions by the state could have a significant impact on Maryland’s efforts to combat climate change and meet its ambitious goals.