In a move that has sparked widespread concern, the Board of County Commissioners (BOCC) of Calvert County, Maryland, has openly opposed the recent amendments made to State Senate Bill 1 (SB1), emphasizing the potential for increased energy costs and negative economic implications. These amendments, particularly amendment 833524/1, propose a prohibition on establishing data centers in conjunction with Calvert Cliffs Nuclear Power Plant, a plan previously poised to bolster local employment and tax revenue significantly.
Initially introduced by Senator Malcolm Augustine, SB1 aimed to safeguard consumers from escalating energy prices. Nonetheless, subsequent modifications by the House Committee have shifted the bill's focus, potentially leading to higher electricity costs for Maryland residents. The BOCC expressed its approval of the bill's original consumer protection measures but criticized the amendments for their lack of public consultation and their departure from the bill's initial intentions.
The contentious amendment seeks to disallow data centers from directly sourcing power from adjacent power plants, mandating their connection to the public grid instead. This stipulation could expose data centers, especially those with high energy demands, to increased costs and efficiency issues due to potential power fluctuations and outages.
Calvert County's commissioners have shown unwavering support for the proposed data center project by Constellation Energy at Calvert Cliffs. This project, estimated to involve up to $10 billion in investment, promises over $100 million in tax revenue and the creation of hundreds of quality jobs. The county, hosting significant energy infrastructure, including Maryland's sole nuclear power plant and a major liquid natural gas (LNG) export facility, presents an ideal location for such a data center. The BOCC argues that co-location with Calvert Cliffs would provide reliable and efficient energy to meet the data center's demands without burdening local resources.
The potential economic repercussions of the amendments to SB1 are a primary concern for the BOCC. They argue that increased operational costs or the relocation of businesses out of state would not only jeopardize jobs but also diminish the tax revenue crucial for funding community services, including education, emergency services, and infrastructure.
Moreover, the amendment could undermine Calvert County's economic stability, heavily reliant on the Constellation Energy's Calvert Cliffs Nuclear Power Plant and BHE GT&S Cove Point LNG liquefaction facility. These entities are significant contributors to the state's economy, offering employment to over 1,000 individuals and injecting tens of millions of dollars in tax revenue annually. The proposed legislative changes threaten this economic symbiosis, potentially making Maryland a less attractive location for business and increasing the cost of living and operating in the state.
In response, the BOCC is urging stakeholders to reconsider the amendment's implications and seek alternatives that protect consumer interests without imposing undue financial strain on Maryland's residents and businesses. The future of Calvert County's economy and the broader state could hang in the balance, pending the legislative outcome of SB1.
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