Electricity Laws and Incentives in Maryland

The list below contains summaries of all Maryland laws and incentives related to electricity.

State Incentives

Clean Energy Grants

The Maryland Smart Energy Communities (MSEC) program, administered by the Maryland Energy Administration (MEA), offers local governments grants for transportation-related projects, including the purchase of new electric vehicles (EVs) or alternative fuel vehicles and the installation of EV chargers. Grants are available in the following amounts:

Communities may apply for funding for multiple projects for a maximum grant award of $55,000 per project, or communities may apply for up to $150,000 for a single project. Additional requirements may apply. For more information, including requirements and application deadline, see the MEA MSEC website.

Electric Vehicle (EV) Charging Station Rebate Program

The Maryland Energy Administration (MEA) offers a rebate to individuals, businesses, multi-family housing (MFH), and state or local government entities for the costs of acquiring and installing qualified EV chargers. The rebate may cover 50% of the costs of acquiring and installing qualified EV chargers, or up to the following amounts:

Applicants must demonstrate compliance with state, local, and/or federal law that applies to the installation or operation of qualified EV chargers. Other requirements may apply. Each entity that applies for a commercial rebate may receive up to $125,000. Rebates will be awarded on a first-come, first-served basis. For more information, see the MEA Electric Vehicle Supply Equipment Rebate Program website.

(Reference Maryland Statutes, Business Regulation Code 10-101, Maryland Statutes, State Government Code 9-2009, and House Bill 550, 2023)

Electric Vehicle (EV) High Occupancy Vehicle (HOV) Lane Exemption

Permitted EVs may operate in any Maryland HOV lanes regardless of the number of occupants. Qualified EVs must have a maximum speed capability of at least 65 miles per hour. To operate in HOV lanes, EV owners must obtain a permit from the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA). Permits may cost $5 each. Each year the MDOT MVA and the State Highway Administration must report EV use in HOV lanes to the governor. For more information, see the MDOT MVA HOV Permit Issuance for EVs website.

(Reference Maryland Statutes, Transportation Code 25-108 and 21-314 and House Bill 123, 2023)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Beginning July 1, 2023, qualified EV and FCEV purchasers may apply for an excise tax credit of up to $3,000. The tax credit is first-come, first-served, and is limited to one vehicle per individual and 10 vehicles per business entity. Qualified vehicles must meet the following criteria:

• Have a total purchase price not exceeding $50,000;
• Be propelled to a significant extent by an electric motor that draws electricity from a battery with a capacity of at least 4 kilowatt-hours;
• Have not been modified from original manufacturer specifications; and
• Be purchased and titled for the first time between July 1, 2023, and July 1, 2027.

Additional restrictions apply.

(Reference Maryland Statutes, Transportation Code 13-815)

Electric Vehicle Emissions Inspection Exemption

Vehicles powered exclusively by electricity are exempt from state emissions inspections. For more information, see the Maryland Vehicle Emissions Inspection Program website.

(Reference Maryland Statutes, Transportation Code 23-206 and 23-206.4)

Maryland’s National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Maryland Department of Transportation (MDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Maryland’s NEVI planning process, see the MDOT Zero Emission Vehicle Infrastructure Plan website. To review Maryland’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant

The Maryland Energy Administration (MEA) offers grants to local government and commercial fleets for the purchase of new on- and off-road MHD ZEVs. The awarded funding amount is 75% of the difference between the cost of the ZEV and the conventional fuel vehicle alternative as listed in the Argonne National Laboratory Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) tool. Eligible vehicles must be either electric vehicles (EVs) or hydrogen fuel cell electric vehicles for commercial or industrial use. For more information, including additional program requirements, see the MEA MHD ZEV Grant Program website.

(Reference Maryland Statutes, State Government Code 9-2010 and 9-2011)

Solar Canopy Electric Vehicle (EV) Infrastructure Grant

The Maryland Energy Administration (MEA) offers grants of up to $125,000 for the planning and installation of solar arrays on existing public facilities and infrastructure. Eligible projects include solar canopies that support EV chargers. For more information, see the MEA Public Facility Solar Grant Program website.

Zero Emission School Bus Grant Program and Study

The Maryland Department of the Environment (MDE) administers a Zero Emission School Bus Transition Grant Program to purchase zero emission school buses, install charging infrastructure, and transition to zero emission school bus fleets. MDE and the Maryland Department of Transportation also provide technical assistance to county boards of education transitioning school buses to zero emission vehicles throughout the state.

(Reference Maryland Statutes, Environmental Code 2-1501 and 2-1503)

Laws and Regulations

Electric School Bus Pilot Program

The Maryland Public Service Commission (PSC) must develop and administer an electric school bus pilot program that investor-owned utilities (IOUs) may apply to implement in their service territories. To be eligible, IOU pilot programs must:

• Begin on or before October 1, 2024;
• Deploy a minimum of 25 electric school buses;
• Provide rebates to participating schools for the purchase of electric school buses;
• Incorporate vehicle-to-grid technology;
• Provide charging equipment for the electric school buses; and,
• Train bus drivers on how to use the electric vehicle chargers.

Participating IOUs must report on the status of their pilot program on an annual basis.

(Reference Maryland Statutes, Public Utilities Code 7-217)

Electric Vehicle (EV) Charger Policies for Associations

Homeowner associations or condominium associations may not prohibit or restrict the installation or use of an EV charger in a homeowner’s designated parking space. Associations may put reasonable restrictions on EV chargers, but the association must treat EV charger installation in the same manner as any unit architectural modification. Residents are required to comply with all relevant building codes and safety standards and engage a licensed EV charger contractor. The residential EV charger owner is responsible for the cost of the installation, operation, maintenance, repair, insurance, removal, or replacement of the charger, as well as any resulting damage to the EV charger or surrounding area.

(Reference Maryland Statutes, Real Property Code 11-111.4)

Electric Vehicle (EV) Charging Station New Construction Requirement

Beginning October 1, 2023, new construction of homes with a garage, carport, or driveway must include a Level 2 EV charger or electric pre-wiring to support a Level 2 EV charger.

(Reference Maryland Statutes, Public Safety Code 12-205)

Electric Vehicle (EV) Information Disclosure

The Maryland Motor Vehicle Administration may provide the address of a registered EV owner and information about the vehicle to electric companies for their use. Electric companies may only use this information in planning for the electric power supply and may not use it for marketing or solicitation.

(Reference Maryland Statutes, General Provisions 4-320)

Electric Vehicle (EV) Parking Space Regulation

Beginning October 1, 2022, individuals may not stop, stand, or park a vehicle in a designated EV charging space unless it is an EV that is actively charging. Violators may be subject to a fine of $100.

EV charging spaces must have signage that indicates the charging space is only for EV charging, day or time restrictions, states maximum violation fine, and is consistent with design and placement specifications in the Manual on Uniform Traffic Control Devices for Streets and Highways. EV charging spaces count toward the total minimum parking space requirements for zoning and parking laws.

(Reference Maryland Statutes, Transportation Code 11-145.1 and 21-1003.2)

Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Registration Fee

Beginning July 1, 2025, in addition to standard registration fees, zero emission vehicle owners must pay an annual fee of $125 and plug-in hybrid electric vehicle owners must pay an annual fee of $100.

(Reference Senate Bill 362, 2024 and Maryland Statutes, Transportation Code 13-956 and 23-206.4)

Electrical Distribution Emissions Reductions

The Maryland Public Service Commission (PSC) must submit a report on the status of the electric distribution system, including electric vehicles (EVs). The report must evaluate progress towards, among other things, the following goals:

• Reduce greenhouse gas emissions from electric distribution, including EVs;
• Prioritize vulnerable and underserved communities in the development of distributed energy resources and EV charging infrastructure; and,
• Increase the use of distributed energy resources, including EVs.

The PSC must publish the report on an annual basis. For more information, see the Distribution System Planning Interim Report, published December 21, 2023.

(Reference Maryland Statutes, Environmental Code 2-1305)

Light-Duty Zero Emission Vehicle (ZEV) Acquisition Requirements

100% of passenger vehicles in the state fleet must be ZEVs by 2031 and other light-duty vehicles must be ZEVs by 2036. To support the state fleet transition to ZEVs, state agencies must coordinate vehicle acquisition efforts to increase the share of ZEVs in the state fleet. Passenger vehicle ZEV acquisitions must increase according to the following schedule:

Fiscal Year (FY)	Acquisition Requirement
2023 through 2025	25% of vehicles must be ZEVs
2026 through 2027	50% of vehicles must be ZEVs
2028 and later	100% of vehicles must be ZEVs

Other light-duty ZEV acquisitions must increase according to the following schedule:

FY	Acquisition Requirement
2028 through 2030	25% of vehicles must be ZEVs
2031 through 2032	50% of vehicles must be ZEVs
2033 and later	100% of vehicles must be ZEVs

ZEVs include vehicles powered exclusively by electricity or hydrogen. If state agencies are unable to acquire ZEVs, a plug-in hybrid electric vehicle may be purchased instead. Paratransit vehicles are exempt from these acquisition requirements. The Maryland Department of General Services must deploy adequate charging and refueling infrastructure to support ZEV adoption and report vehicle acquisition progress to the General Assembly on an annual basis.

(Reference Maryland Statutes State Finance and Procurement Code 14-418)

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the MHD ZEVs: Action Plan Development Process website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Requirement

By December 1, 2023, Maryland must adopt the California Advanced Clean Trucks requirements specified in Title 13 of the California Code of Regulations, requiring manufacturers to meet California ZEV production and sales requirements. Beginning with model year 2027, manufacturers will be required to sell zero-emission trucks as an increasing percentage of their annual sales for Class 2b through Class 8 vehicles in Maryland. ZEVs include all-electric and fuel cell electric vehicles.

(Reference Maryland Statutes, State Government Code 9-2011 and Maryland Statutes, Environment Code 2-1103.1)

Mid-Atlantic Region Electric Vehicle (EV) Support

Maryland joined Virginia, West Virginia, and the District of Columbia (Participating States) in creating the Mid-Atlantic Electrification Partnership (MAEP) to support the deployment of EVs and EV chargers throughout the region. Participating States commit to creating a regional network of EV chargers that will make it possible to seamlessly operate light-, medium-, and heavy-duty EVs across transportation corridors and in low-income communities. For more information, see the MAEP website.

Multi-Family Housing (MFH) Electric Vehicle (EV) Charger Deployment Support

The Maryland Energy Administration must study issues related to the installation of EV parking spaces at MFH and submit a report of findings to the Governor and the General Assembly by December 1, 2023.

(Reference Maryland Public Safety Statutes 12-205)

Public Utility Definition

Owners and operators of electric vehicle (EV) chargers are not subject to state regulation as electricity suppliers or public service companies. For the purpose of this regulation, owners and operators of EV chargers are considered retail electric customers.

(Reference Maryland Statutes, Public Utility Code 1-101(l))

Utility Electric Vehicle (EV) Charger Deployment Authorization and Requirements

Investor-owned utilities (IOUs) participating in the Maryland Public Service Commission (PSC) EV Pilot Program may install public Level 2 EV chargers on local, municipal, or state government property. Beginning October 1, 2023, IOUs that participate in the PSC EV Pilot Program may install Level 2 EV chargers at multi-unit dwellings in underserved communities. Additionally, IOUs must maintain EV charger uptime in accordance with the National Electric Vehicle Infrastructure Formula Program requirements or standards and requirements set by the PSC.

(Reference Public Service Commission Order 88997 – Case No. 9478 and Maryland Statutes Public Utilities Code 7-901 through 7-905)

Zero Emission Bus Acquisition Requirement

Beginning in 2023, the Maryland Transit Administration (MTA) may only purchase zero emission buses for the state transit bus fleet. If the MTA determines that there are no zero emission buses that meet performance requirements, an alternative fuel bus may be purchased instead. The MTA must develop charging infrastructure to support zero emission buses throughout the state, provide safety and workforce development training for operations and maintenance workforces, and ensure no state government jobs are transferred to a contracting entity as a result of the transition to zero emission transit buses. For more information, including annual legislative reports, see MTA’s Zero Emissions website.

(Reference Maryland Statutes, Transportation Code 7-406)

Zero Emission School Bus Acquisition Requirements

Beginning in fiscal year 2025, county Boards of Education may only enter vehicle acquisition contracts for zero emission school buses. County Boards of Education are not required to purchase zero emission school buses if the:

• Buses have an in-service date prior to July 1, 2024;
• Buses do not meet performance requirements; or,
• County Board of Education is unable to obtain funding sufficient to cover the incremental cost of the zero emission school bus.

The Maryland Department of Environment must work with county Boards of Education to develop electric vehicle charging infrastructure to support the acquisition of zero emission school buses.

(Reference Maryland Statutes, Environmental Code 2-1505)

Zero Emission Vehicle (ZEV) Deployment Support

Maryland joined California, Connecticut, Maine, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle (EV) chargers and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:

• Raising consumer awareness and interest in EV technology;
• Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
• Continuing and improving access to consumer purchase and non-financial incentives;
• Expanding public and private sector fleet adoption; and
• Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Zero Emission Vehicle (ZEV) Infrastructure Promotion

The Maryland Zero Emission Electric Vehicle Infrastructure Council (ZEEVIC) promotes the use of ZEVs, including electric vehicles (EVs) and fuel cell electric vehicles (FCEV), in the state. Specific responsibilities of ZEEVIC include the following:

• Develop policies and an action plan to promote and facilitate the integration of ZEVs into the Maryland transportation network;
• Assist in developing and coordinating statewide standards for streamlined permitting and installation of electric vehicle charging and hydrogen fueling equipment;
• Develop recommendations for a statewide EV charging and FCEV refueling infrastructure plan, including standard pricing information displays;
• Increase and support consumer awareness and ownership of ZEVs through public outreach;
• Recommend incentives to support private-sector investment in ZEVs;
• Develop targeted policies to support fleet purchases of ZEVs;
• Develop charging solutions for multiunit dwellings;
• Encourage local and regional efforts to promote the use of ZEVs;
• Develop model procurement practices for light-duty vehicles that include an evaluation of the vehicle lifecycle costs inclusive of estimated fuel cost over the anticipated life of the vehicle;
• Recommend policies that support EV charging and FCEV fueling from clean energy sources;
• Establish performance measures for meeting ZEV related employment, infrastructure, and regulatory goals; and
• Pursue other policies, goals, and objectives that promote the adoption of ZEVs.

The Maryland Department of Transportation must provide staff support to ZEEVIC with the assistance of the Maryland Energy Administration and the Maryland Public Service Commission. For more information, including interim reports, see the Maryland Zero Emission Electric Vehicle Infrastructure Council website and the MarylandEV website.

(Reference Chapter 378, Acts of 2015, Chapter 213, Acts of 2019, and Chapter 118, Acts of 2020)

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