EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0683*
SENATE BILL 683
P1, M5 2lr1397
By: Senator Kagan
Introduced and read first time: February 4, 2022
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 18, 2022
CHAPTER ______
AN ACT concerning 1
Renewable Energy for Nonprofit Organizations Loan Program 2
FOR the purpose of establishing the Renewable Energy for Nonprofit Organizations Loan 3
Program in the Maryland Energy Administration; authorizing nonprofit 4
organizations to apply for and obtain loans from the Program for the purchase and 5
installation of qualifying renewable energy systems; establishing the Renewable 6
Energy for Nonprofit Organizations Loan Fund as a special, nonlapsing fund; 7
requiring interest earnings of the Fund to be paid into the Fund; authorizing the 8
Administration to contract with third parties to make, service, or settle loans under 9
the Program; requiring the Administration, on or before a certain date, to establish 10
an application process, set guidelines and considerations for application, selection, 11
and repayment for loans made under the Program, and develop an advertising 12
campaign for the Program; requiring the Administration, on or before a certain date, 13
to report to the General Assembly on the activity of the Program; and generally 14
relating to the Renewable Energy for Nonprofit Organizations Loan Program. 15
BY adding to 16
Article – State Government 17
Section 9–2101 through 9–2107 to be under the new subtitle “Subtitle 21. Renewable 18
Energy for Nonprofit Organizations Loan Program” 19
Annotated Code of Maryland 20
(2021 Replacement Volume) 21
BY repealing and reenacting, without amendments, 22
Article – State Finance and Procurement 23 2 SENATE BILL 683
Section 6–226(a)(2)(i) 1
Annotated Code of Maryland 2
(2021 Replacement Volume) 3
BY repealing and reenacting, with amendments, 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)144. and 145. 6
Annotated Code of Maryland 7
(2021 Replacement Volume) 8
BY adding to 9
Article – State Finance and Procurement 10
Section 6–226(a)(2)(ii)146. 11
Annotated Code of Maryland 12
(2021 Replacement Volume) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – State Government 16
SUBTITLE 21. RENEWABLE ENERGY FOR NONPROFIT ORGANIZATIONS LOAN 17
PROGRAM. 18
9–2101. 19
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 20
INDICATED. 21
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 22
ADMINISTRATION . 23
(C) “BORROWER” MEANS A NONPROFIT OR GANIZATION THAT APPL IES AND 24
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 25
(D) “FUND” MEANS THE RENEWABLE ENERGY FOR NONPROFIT 26
ORGANIZATIONS LOAN FUND. 27
(E) “GEOTHERMAL HEATING AN D COOLING SYSTEM ” HAS THE SAME 28
MEANING AS PROVIDED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE. 29
(F) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 30
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 31
REVENUE CODE. 32
SENATE BILL 683 3
(G) “PROGRAM” MEANS THE RENEWABLE ENERGY FOR NONPROFIT 1
ORGANIZATIONS LOAN PROGRAM. 2
(H) “QUALIFYING RENEWABLE ENERGY SYSTEM ” MEANS A: 3
(1) GEOTHERMAL HEATING A ND COOLING SYSTEM ; OR 4
(2) SOLAR ENERGY SYSTEM , INCLUDING PHOTOVOLTA IC AND SOLAR 5
WATER HEATING SYSTEM S. 6
(I) “SOLAR WATER HEATING S YSTEM” HAS THE SAME MEANING AS 7
PROVIDED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE. 8
9–2102. 9
THERE IS A RENEWABLE ENERGY FOR NONPROFIT ORGANIZATIONS LOAN 10
PROGRAM IN THE ADMINISTRATION . 11
9–2103. 12
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 13
THE FORM OF ZERO –INTEREST LOANS TO NO NPROFIT ORGANIZATION S FOR THE 14
PURCHASE AND INSTALL ATION OF QUALIFYING RENEWABLE ENERGY SYS TEMS IN 15
THE STATE. 16
9–2104. 17
THE ADMINISTRATION SHALL : 18
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 19
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 20
NONPROFIT ORGANIZATI ONS CARRY OUT THE PU RPOSE OF THE PROGRAM; AND 21
(3) ATTACH SPECIFIC TERM S TO ANY LOAN THAT A RE CONSIDERED 22
NECESSARY TO ENSURE THAT THE PUR POSE OF THE PROGRAM IS FULFILLED . 23
9–2105. 24
(A) (1) TO RECEIVE A LOAN UND ER THE PROGRAM, A BORROWER MUST 25
FILE AN APPLICATION WITH THE ADMINISTRATION . 26
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 27
OFFICER OR AN AUTHOR IZED OFFICER OF THE NONPROFIT ORGANIZATION . 28
4 SENATE BILL 683
(B) THE APPLICATION SHALL CONTAIN ANY INFORMAT ION THE 1
ADMINISTRATION DETERM INES IS NECESSARY , INCLUDING: 2
(1) THE PROJECTED COST O F THE QUALIFYING REN EWABLE ENERGY 3
SYSTEM BEING FINANCE D THROUGH THE LOAN ; 4
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 5
RENEWABLE ENERGY SYS TEM WILL BE INSTALLE D AND WHETHER THE PR OPERTY IS 6
OWNED OR LEASED BY T HE APPLICANT; AND 7
(3) ANY ADDITIONAL INFOR MATION RELATING TO T HE BORROWER OR 8
THE PROPOSED QUALIFY ING RENEWABLE ENERGY SYSTEM BEING FINANCED 9
THROUGH THE LOAN THA T MAY BE REQUIRED BY THE ADMINISTRATION IN ORD ER 10
TO ADMINISTER THE PROGRAM. 11
(C) IN APPROVING AN APPLI CANT, THE ADMINISTRATION SHALL CONSIDER 12
AND GIVE PRIORITY TO AN APPLICANT THAT HA S AN ANNUAL BUDGET O F $1,000,000 13
OR LESS. 14
9–2106. 15
(A) LOANS FROM THE FUND MAY BE USED FOR THE COSTS OF PURCHAS ING 16
AND INSTALLING A QUA LIFYING RENEWABLE EN ERGY SYSTEM , INCLUDING THE 17
COSTS OF THE PURCHAS E AND INSTALLATION O F ANY NECESSARY ANCI LLARY 18
MACHINERY, EQUIPMENT, OR FURNISHINGS . 19
(B) EACH BORROWER SHALL CONTR IBUTE AT LEAST 10% OF THE COST OF 20
THE QUALIFYING RENEW ABLE ENERGY SYSTEM . 21
(C) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY THE 22
BORROWER IN ACCORDAN CE WITH A SCHEDULE T HAT THE ADMINISTRATION SETS , 23
WHICH MAY BE ON A DE FERRED PAYME NT BASIS. 24
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 25
REPAYMENT OF A LOAN . 26
(2) THE ASSURANCES : 27
(I) SHALL INCLUDE A PROM ISSORY NOTE; AND 28
(II) MAY INCLUDE A PLAN F OR REPAYMENT . 29
SENATE BILL 683 5
(E) LOANS MAY BE MADE IN CONJUNCTION WITH , OR IN ADDITION TO, 1
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 2
PROGRAMS. 3
9–2107. 4
(A) THERE IS A RENEWABLE ENERGY FOR NONPROFIT ORGANIZATIONS 5
LOAN FUND. 6
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 7
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUN D THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 10
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
(D) THE FUND CONSISTS OF : 12
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 13
(2) MONEY RECEIVED FROM ANY PUBLIC OR PRIVAT E SOURCE; 14
(3) INTEREST AND INVESTM ENT EARNINGS ON THE FUND; AND 15
(4) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 16
FUND. 17
(E) FOR EACH OF FISCAL YEARS 2024 THROUGH 2026 FISCAL YEAR 2024, 18
THE GOVERNOR SHALL PROVID E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION 19
OF $5,000,000 $500,000 FOR THE FUND. 20
(F) THE FUND MAY BE USED ONLY : 21
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 22
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS . 23
(G) (1) THE STATE TREASURER SHALL INVES T AND REINVEST THE 24
MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 25
INVESTED. 26
(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID IN TO 27
THE FUND. 28
6 SENATE BILL 683
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 1
PAID INTO THE FUND. 2
Article – State Finance and Procurement 3
6–226. 4
(a) (2) (i) Notwithstanding any other provision of law, and unless 5
inconsistent with a federal law, grant agreement, or other federal requirement or with the 6
terms of a gift or settlement agreement, net interest on all State money allocated by the 7
State Treasurer under this section to special funds or accounts, and otherwise entitled to 8
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 9
Fund of the State. 10
(ii) The provisions of subparagraph (i) of this paragraph do not apply 11
to the following funds: 12
144. the Health Equity Resource Community Reserve Fund; 13
[and] 14
145. the Access to Counsel in Evictions Special Fund; AND 15
146. THE RENEWABLE ENERGY FOR NONPROFIT 16
ORGANIZATIONS LOAN FUND. 17
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2023, the 18
Maryland Energy Administration shall: 19
(1) establish an application process for loans made under the Renewable 20
Energy for Nonprofit Organizations Loan Program in Title 9, Subtitle 21 of the State 21
Government Article, as enacted by Section 1 of this Act; 22
(2) set guidelines and considerations for application, selection, and 23
repayment that include: 24
(i) nonprofits that own, rather than rent, their buildings; 25
(ii) property size and kilowatt–hours of energy used; 26
(iii) geographic diversity; 27
(iv) ethnic and racial diversity; 28
(v) economic diversity; 29
(vi) nonprofit mission diversity; 30 SENATE BILL 683 7
(vii) access to the borrower’s portion of the cost of the qualifying 1
renewable energy system; and 2
(viii) process and frequency of loan repayment; and 3
(3) develop and implement an advertising campaign for the Program. 4
SECTION 3. AND BE IT FURTHER ENACTED, That, on or before July 1, 2024, the 5
Maryland Energy Administration shall report to the General Assembly, in accordance with 6
§ 2–1257 of the State Government Article, on the activity of the Renewable Energy for 7
Nonprofit Organizations Loan Program, including the number of applicants and amounts 8
awarded. 9
SECTION 3. 4. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall 10
take effect July 1, 2023. 11
SECTION 4. 5. AND BE IT FURTHER ENACTED, That, except as provided in 12
Section 3 4 of this Act, this Act shall take effect July 1, 2022. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.