[update: the legislation was amended on March 17 to limit the size of the cut to Empower]
On Friday March 13th, 2026, Maryland leaders announced an energy package named the Utility Relief Act - HB1532. The legislation appears to include many provisions Sierra Club supports, from stronger regulations on utility profits to requirements that data centers pay more of their electricity costs, to cutting red tape in rooftop solar permitting processes. However, the most significant aspects of the bill are the profound proposed changes to EmPOWER Maryland, the state’s energy efficiency program. Our analysis suggests the legislation would effectively eliminate most of the program for the next three years.
We analyzed the impacts of these changes in order to better educate policy makers and the public about EmPOWER Maryland and the repercussions of the proposed changes.
What is EmPOWER?
EmPOWER Maryland is the state’s energy efficiency program. Through the program, Marylanders can access a range of energy-savings services, including rebates on energy efficiency products, discounted and free home energy audits, financial support for weatherization, and more. Additionally, utilities run programs offering discounts to customers who decrease energy use at peak times and other “demand response” strategies.
EmPOWER is tremendously successful in reducing energy use and saving money for Maryland families: since its launch in 2008, EmPOWER Maryland has helped Marylanders save billions on energy bills, and every dollar invested yields over $2 in benefits (1,2). Along with providing bill savings and reducing strain on the energy grid, EmPOWER serves a crucial role in improving indoor air quality by helping to phase out fossil fuel burning appliances. Read more about EmPOWER here.
Impact of Proposed Changes
EmPOWER Maryland is a goal-oriented program. The size of the goal dictates the size of the program. The goal is measured in avoided greenhouse gas emissions (think pollution from burning goal and gas), but roughly translates to avoided energy use. Currently law requires each utility to design its EmPOWER Maryland program to achieve a 2.5% decrease per year starting in 2027.
The Utility RELIEF Act, HB 1532, would cut the statutory goal to 1.75% and allow utilities to count savings from an unrelated program - rooftop and community solar - towards their target. We analyzed the impact of this offset and found the offset is so large, it would reduce the program goal to below zero. A goal of zero means no utility-run EmPOWER Maryland programs. (A reduction of the goal to 1.75% translates to a 1,065,000 metric tons of greenhouse gases per year. Reductions from rooftop and community solar equals roughly 1,284,000 metric tons of greenhouse gases, which more offsets the entire programmatic target).
It would appear this change does not impact a portion of the program run by the Department of Housing and Community Development for low income families, but all other programs, residential and commercial, would disappear for at least 3 years.
To understand the impact of this cut to EmPOWER, it is best to think of the loss - what EmPOWER would have accomplished that now would not occur.
Cost Savings. EmPOWER saves consumers money. It saves individual residents money through rebates and decreased energy use and it reduces costs for all customers by avoiding other costly grid expenses. The program is legally required to have a net-positive cost-benefit, meaning that it saves more than it costs. So while cuts to EmPOWER might reduce the EmPOWER surcharge, we all end up paying more - on our bills, with our health and with impacts to our environment.
How much? We estimate the program would have saved $4.2 to $4.9 billion in lifecycle lost savings to ratepayers from 2027-2029, at a cost of around $2 billion in program cost savings. This is more than a 2 to 1 benefit.
- Reduction in energy use. EmPOWER helps people and businesses reduce their energy use and bills. It also reduces the overall capacity that Maryland’s grid requires, which also has an impact on bills.
- Energy use - EmPOWER would, from 2027-2029, save 17.5 million megawatt hours of energy over the life of those efficiency investments. This is equivalent to the average energy use of 550,000 homes for 3 years. That’s about a quarter of Maryland homes.
- Energy capacity - Over the 3 years, with EmPOWER, the summer peak capacity would be 2155 MW lower. The energy efficiency investments supported by EmPOWER lower the amount of capacity needed and the cost of that capacity.
3. Reduction in Greenhouse Gas Emissions. EmPOWER Maryland is one of the state’s most important greenhouse gas programs. From 2027-2029, EmPOWER would have saved approximately 4 million tons of greenhouse gas emissions over the life of the investments—the amount of emissions produced by 870,000 cars in a year.
EmPOWER Programs That Would Disappear
Some of the common programs across all utilities that would disappear if EmPOWER is eliminated (You can find a listing of your utility programs here):
- Discounts on energy efficient appliances significant discounts on major energy efficiency appliances, like washing machines, fridge, furnaces. Rebates range from $50 for a dehumidifier up to $8000 for geothermal heat.
- Known as “midstream” discounts, EmPOWER also provides rebates directly to HVAC installers, which then discount products marketed directly to consumers. While this takes away the fun of consumers seeing the discount, it streamlines the sale of more efficient devices.
- Appliance recycling: If you’ve seen Home Depot or Lowes offering you $100 or more to remove your old appliance while installing a new one, that is the appliance recycling program.
- Demand response programs: most utilities offer discounted or free smart thermostats, and a bonus rebate on your bill if you participate in a “demand response” program where you allow utilities to make small modifications in timing of your use during peak energy use times, such as hot summer days.
- HVAC Efficiency programs: provide discounts and rebates to get an HVAC tune-up that helps your system run more efficiently, reducing energy use and saving you money.
- Energy audits and quick home checkups: These range from a free home visit where you are given free efficiency lightbulbs, weather-stripping, power strips, and more. The more involved home energy audits give residents a detailed report on energy use, energy saving strategies, and associated discounts for a range of cost-saving measures they can take.
- Multi-family programs: not usually visible to residents themselves, these are programs to help owners of multi-family housing to invest in energy efficiency measures, from new lighting, efficient appliances, weather-stripping and more.
- Commercial programs: these parallel many of the residential offerings, helping local businesses save money and energy.
Concluding Comments
As currently written, the Utility RELIEF Act (HB 1532) being proposed in the House of Delegates, has some good provisions. However, it would effectively eliminate Maryland’s energy efficiency program EmPOWER for three years.
That could potentially kill the program and make it even harder to rein in ballooning energy bills.
Energy efficiency helps lower energy use and thus energy bills while also cutting pollution and reducing the need for expensive new power plants and transmission. We want and need energy efficiency.
Maryland’s EmPOWER is one of the leading energy efficiency programs in the country, providing more than $2 in savings for every $1 invested. If cuts are made we would all lose out on the programs offered, like rebates on energy efficient appliances, tune-ups on HVAC systems, free or discounted energy audits, for people and businesses.
Cutting energy efficiency programs will increase our energy use, sending more profits into the pockets of our corporate utilities.
The relief that the bill aims for and that we all want does not need to come at the expense of critical energy efficiency programs that help us reduce costs and have healthier homes.
Let’s really help Marylanders in the short and long term. Ask Maryland lawmakers to protect EmPOWER right now.
Sources:
- Baatz, B. Maryland Benefits: Examining the Results of EmPOWER Maryland through 2015. (2017) ACEEE. https://www.aceee.org/research-report/u1701
- Maryland Public Service Commission. The EmPOWER Maryland Energy Efficiency Act
Report of 2025. (2025). Baltimore, MD: MD PSC
https://www.pscmaryland.com/wp-content/uploads/2025-EmPOWER-Maryland-Energy-Efficiency-Act-Standard-Report-Final.pdf