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State Incentives for Achieving Clean and Renewable
Energy Development on Contaminated Lands
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable
energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects.
This document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Incentives for Clean and Renewable Energy
Funding (grants, loans, bonds, etc.)
Solar Energy Grant Program
www.energy.maryland.gov/incentives/business/solargrants/index.asp
Provides funding for a portion of the cost to install certain qualifying solar
energy systems. Offers grants of $2,500 per kW of solar electric power,
capped at $10,000, and 30% of the cost of solar water heating systems,
capped at $3,000. For the Geothermal Heat Pump Grant Program, the
program offers $1,000 per ton of cooling capacity, capped at $10,000 for
non-residential systems. Based on Maryland legislation, there were some
changes to this program in July 2008. See the following links for more
information: www.mlis.state.md.us/2008rs/bills/hb/hb0377e.pdf
www.governor.maryland.gov/pressreleases/080424.asp
Maryland Strategic Energy Investment Fund
www.gov.state.md.us/pressreleases/080408FactSheet.pdf
Combines utility fees for non-compliance with the renewable portfolio
standard (RPS) along with proceeds from the upcoming auction of carbon
allowances to electric power plants under the Regional Greenhouse Gas
Initiative (RGGI). It is estimated that the auction will generate between $80
and $140 million annually. The fund will invest in a wide range of clean and
renewable energy projects and programs.
Windswept Grant Program
www.energy.maryland.gov/incentives/business/windswept/index.asp
Offsets a portion of the cost of small-scale wind energy projects to
Marylanders who install eligible wind energy systems of at least 1.5 kW for
non-residential properties. A limited number of grants are available in
amounts of $1,500/kW up to a maximum amount of $5,000.
Tax Incentives (abatements, deductions, credits, etc.)
Clean Energy Production Tax Credit
www.energy.maryland.gov/incentives/allprograms/cepjaxcredit.asp
Provides individuals and corporations with a state income tax credit for
electricity generated by qualified resources of 0.85 cents/kW hour and 0.50
cents/kW hour for electricity generated from co-firing a qualified resource
with coal. Each producer is eligible for up to $2.5 million in tax credits over
a total of five years, but must begin producing energy no later than January
1,2011. Qualified resources include wind, biomass, geothermal, solar,
small irrigation, municipal solid waste, and qualified hydropower. The
annual credits cannot exceed one-fifth of the initial credit certificate issued
by the Maryland Energy Administration, but can be claimed over a five-year
period up to January 1,2016.
Technical Assistance and Other Incentives
Solar Incentives
www.governor.maryland.gov/pressreleases/080424.asp
Creates easements for solar energy systems to prevent projects that would
block sunlight. It also prohibits unreasonable restrictions on solar energy
systems, such as homeowner association covenants against their
installation.
Net Metering
www.energy.state.md.us
Requires utilities to install a single, bi-directional meter and offer net
metering free of charge to residents, businesses, schools, or government
entities that own or lease systems that generate electricity using solar,
wind, or biomass resources. The maximum capacity of all eligible systems
is 2 MW.
Quick Facts
Public Benefit Fund (PBF) Yes D No 0
Renewable Portfolio Standard Yes 0 No D
Tier 1:20% in 2022 and beyond; Tier 2:2.5% in 2006 through
2018
Net Metering Yes 0 No D
Interconnection Standards Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 1.2% Nuclear 28.3%
Natural Gas-Fired 3.6% Hydroelectric 4.3%
Coal-Fired 60.1% Other Renewables 1.3%
Other Gases 0.7% Other 0.6%
Points of Contact
Maryland Energy Administration
Solar Energy Grant Program
Tim LaRonde, meainfo@energy.state.md.us, (800) 723-6374
Maryland Strategic Energy Investment Fund
Incentive created in April 2008; POC to be determined
Windswept Grant Program
Mike Li, meainfo@energy.state.md.us, (800) 723-6374
Clean Energy Production Tax Credit
Chris Rice, meainfo@energy.state.md.us, (800) 723-6374
Solar Incentives, Net Metering
meainfo@energy.state.md.us, (800) 723-6374
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
Maryland Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Brownfields Revitalization Program
www.mde.state.md. us/Programs/LandPrograms/ERRP_Brownfields/bf_inf
o/index.asp
Provides low interest loans or grants for Phase I and II environmental
assessments for the redevelopment of eligible brownfields in areas where
cleanup will have significant environmental, economic development, and
urban revitalization benefits. Eligible properties must either qualify for the
Voluntary Cleanup Program (VCP) or be contaminated by oil, must be
industrial or commercial sites that are located in densely populated urban
centers, and must be generally underutilized to qualify for the program.
Incentives are only available to jurisdictions that have enacted or put in
place enabling legislation and/or tax ordinances for the difference on the
assessed property value after pre- and post-cleanup and/or
redevelopment.
Water Quality Revolving Loan Fund
www.mde.state.md.us/Programs/WaterPrograms/Water_Quality_Finance/
Water_Quality_Fund/index.asp
Provides low-interest loans for cleanup costs to complete approved
cleanup plans for sites on the state Master List (commonly referred to as
state Superfund sites or CERCLIS No Further Response Action Planned
Sites (NFRAP) sites) or in the VCP where water quality is an issue. This
funding is provided to parties legally responsible for cleanup of sites or
parties that have been accepted into the VCP.
Tax Incentives (abatements, credits, deductions, etc.)
Property Tax Credits
www.choosemaryland.org/businessservices/taxincentives/brownfields.html
Provides tax credits in jurisdictions that have enacted enabling legislation
for the difference on the assessed property value after pre- and post-
cleanup and/or redevelopment. Tax credits may be extended to 10 years in
designated Enterprise Zones.
Technical Assistance and Other Incentives
Brownfields Site Assessment Initiative
www.mde.state.md. us/assets/document/brownfields/brwnflds_sai_fs.pdf
Helps property owners or prospective property owners determine the type
and extent of possible contamination on a property. These assessments
are conducted by the Maryland Department of the Environment (MDE) free
of charge. The property should meet the following conditions: have
perceived or known contamination; be vacant or underutilized; be located
in a commercial or industrial area; create jobs through redevelopment; and
improve the local tax base following redevelopment. Eligible properties also
include sites on the EPA CERCLIS and MD state Master List. Properties
under active enforcement by MDE are not eligible to participate. This
initiative is administered on a first-come-first-served basis beginning July 1
of each calendar year and is open to both the public and private sector
Limitations on Liability
Voluntary Cleanup Program - Certification of Completion or
No Further Requirements Determination
www.mde.state.md. us/Programs/LandPrograms/ERRP_Brownfields/vcpJn
to/index, asp
Ensures purchasers who did not cause or contribute to contamination may
limit their retroactive liability upon purchase of a property. Amendments
(effective October 1,2004) clarify that someone is not a "responsible
person" because they meet one of the statutory exclusions is entitled to
"inculpable person" status. The new law also ensures liability protection,
but sites contaminated after October 1,1997, listed on the National
Priorities List (NPL), or under active enforcement are not eligible.
Quick Facts
Yes 0 No D
Limitations on Liability
Number of State-Tracked Contaminated Properties: 1,107
Includes VCP, National Priorities List, Federal Facilities, state Master List
(includes MD CERCLIS sites), and state Non-Master List sites
Number of EPA CERCLIS Sites: 173
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 53
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Maryland.
Points of Contact
Maryland Department of Business and Economic Development
Brownfields Revitalization Program, Property Tax Credits
Jim Henry, jhenry@choosemaryland.org, (410) 767-6353
Water Quality Revolving Loan Fund
Maryland Department of the Environment
Jag Khuman, jkhuman@mde.state.md.us, (410)537-3119
Brownfields Site Assessment Initiative
Luke Wisniewski, lwisniewskil@mde.state.md.us, (410) 537 -3119
Voluntary Cleanup Program Certification of Completion or No
Further Requirements Determination
Barbara Brown, bbrown@mde.state.md.us, (410) 537-3212
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Maryland Incentives for Development of Contaminated Land - Page 2
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