Green and Renewable Energy for Nonprofit Organizations Loan Program and Fund
This bill will create a dedicated loan fund for nonprofit organizations, which will be administrated by the Maryland Energy Administration. The fund is designed as a special, non-lapsing account, allowing it to accumulate resources over time. Loans from this fund can be essential for nonprofits seeking to invest in green technologies, which may otherwise be financially out of reach. The legislation also establishes guidelines for loan applications, ensuring that diverse factors such as geographic, economic, and mission diversity are considered, thereby promoting inclusivity within the state’s nonprofit sector.
House Bill 1248 establishes the Green and Renewable Energy for Nonprofit Organizations Loan Program and Fund in Maryland. The purpose of the program is to provide financial assistance through no-interest loans to nonprofit organizations for the purchase and installation of qualifying energy systems. These systems are intended to generate electricity or usable thermal energy, contributing to Maryland's environmental and greenhouse gas reduction goals. The goal is to promote sustainability and make clean energy solutions more accessible to nonprofit entities.
Notably, the bill mandates that nonprofits wishing to borrow must demonstrate that their chosen energy systems will yield energy cost savings equal to or exceeding the total amortized loan costs. Additionally, the program includes prerequisites for loan applications, emphasizing the importance of organizational budget size and ownership of premises. While these provisions aim to ensure responsible loan distribution, they may restrict access for certain smaller or less established nonprofits. Discussions around the bill may reflect differing views on the balance between facilitating green initiatives and ensuring equitable funding access.