Maryland reached a more than $340 million agreement with Constellation Energy to clear the way for federal re-licensing of the Conowingo Dam, the governor’s office said Thursday.
The deal funds years of water-quality and habitat projects aimed at restoring the Chesapeake Bay, according to the governor’s office.
The agreement, negotiated with Waterkeepers Chesapeake and the Lower Susquehanna Riverkeeper Association, sets enforceable conditions tied to the dam’s federal license and is intended to offset environmental impacts from its operation, Gov. Wes Moore alongside other Maryland leaders announced Thursday.
The settlement allows Constellation to continue generating hydroelectric power at the dam on the Susquehanna River, which the state calls Maryland’s largest source of renewable energy.
A revised Water Quality Certification will be filed with federal regulators under Section 401 of the Clean Water Act, according to the Maryland Department of the Environment.
The agreement will also help contribute to water quality in the Chesapeake Bay, with the Susquehanna being the largest tributary to the Chesapeake Bay.
“This agreement will lead to real improvements in water quality in the biggest tributary of the Chesapeake Bay, while securing the future of one of our state’s largest clean energy producers,” Moore said.
The commitments include:
$87.6 million for pollution reduction and resiliency, such as shoreline restoration, forest buffers, underwater grasses and fish-passage projects.
$77.8 million for trash and debris removal.
More than $28 million to improve fish and eel passage.
$23.3 million to build and operate a freshwater mussel hatchery.
$18.7 million to support dredging studies and related work.
$9.4 million to manage invasive species such as snakeheads and blue catfish.
Under the settlement, Constellation Energy, not taxpayers, will cover the costs. Environmental groups that challenged an earlier license framework will also play an ongoing oversight role in implementation.
State officials and environmental advocates said the deal resolves years of litigation and ensures the dam operates under conditions designed to protect the Susquehanna River and the Chesapeake Bay for decades to come.
“This historic agreement ensures that our children and grandchildren will inherit a Chesapeake Bay and Susquehanna River that are cleaner and healthier than they are today,” said Attorney General Brown a. “I’m proud of our office’s tireless efforts in this case to improve water quality and protect the lives and livelihoods of Marylanders who depend on these essential waterways for recreation and work.”