EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0186*
SENATE BILL 186
P1, M5 3lr0461
SB 683/22 – B&T
By: Senator Kagan
Introduced and read first time: January 20, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Green and Renewable Energy for Nonprofit Org anizations Loan Program and 2
Fund 3
FOR the purpose of establishing the Green and Renewable Energy for Nonprofit 4
Organizations Loan Program in the Maryland Energy Administration to provide 5
financial assistance to nonprofit organizations for the purchase and installation of 6
qualifying energy systems and technical assistance for the planning and installation 7
of qualifying energy systems; establishing the Green and Renewable Energy for 8
Nonprofit Organizations Loan Fund as a special, nonlapsing fund; requiring interest 9
earnings of the Fund to be paid into the Fund; requiring the Administration, on or 10
before a certain date, to establish an application process, set guidelines and 11
considerations for application, selection, and repayment for loans made under the 12
Program, and develop an advertising campaign for the Program; and generally 13
relating to the Green and Renewable Energy for Nonprofit Organizations Loan 14
Program and Fund. 15
BY adding to 16
Article – State Government 17
Section 9–2101 through 9–2107 to be under the new subtitle “Subtitle 21. Green and 18
Renewable Energy for Nonprofit Organizations Loan Program” 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2022 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(i) 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2022 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – State Finance and Procurement 28 2 SENATE BILL 186
Section 6–226(a)(2)(ii)170. and 171. 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2022 Supplement) 3
BY adding to 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)172. 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2022 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – State Government 11
SUBTITLE 21. GREEN AND RENEWABLE ENERGY FOR NONPROFIT 12
ORGANIZATIONS LOAN PROGRAM. 13
9–2101. 14
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 15
INDICATED. 16
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 17
ADMINISTRATION . 18
(C) “BORROWER” MEANS A NONPROFIT OR GANIZATION THAT APPL IES AND 19
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 20
(D) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY FOR 21
NONPROFIT ORGANIZATIONS LOAN FUND. 22
(E) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 23
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 24
REVENUE CODE. 25
(F) “PROGRAM” MEANS T HE GREEN AND RENEWABLE ENERGY FOR 26
NONPROFIT ORGANIZATIONS LOAN PROGRAM. 27
(G) “QUALIFYING ENERGY SYS TEM” MEANS A SYSTEM THAT: 28
(1) GENERATES ELECTRICIT Y OR USABLE THERMAL ENERGY THAT IS 29
USED TO MEET ONSITE DEMAND; AND 30
SENATE BILL 186 3
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AN D 1
GREENHOUSE GAS REDUC TION GOALS UNDER § 2–1205 OF THE ENVIRONMENT 2
ARTICLE. 3
9–2102. 4
THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 5
ORGANIZATIONS LOAN PROGRAM IN THE ADMINISTRATION . 6
9–2103. 7
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 8
THE FORM OF NO–INTEREST LOANS TO NO NPROFIT ORGANIZATION S FOR THE 9
PURCHASE AND INSTALL ATION OF QUALIFYING ENERGY SYSTEMS IN TH E STATE. 10
9–2104. 11
THE ADMINISTRATION SHALL : 12
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 13
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 14
NONPROFIT ORGANIZATI ONS CARRY OUT THE PU RPOSE OF THE PROGRAM; AND 15
(3) ATTACH SPECIFIC TERM S TO ANY LOAN THAT A RE CONSIDERED 16
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED . 17
9–2105. 18
(A) (1) TO RECEIVE A LOAN UND ER THE PROGRAM, A BORROWER MUST 19
FILE AN APPLICATION WITH THE ADMINISTRATION . 20
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 21
OFFICER OR AN AUTHOR IZED OFFICER OF THE NONPROFIT ORGANIZATION . 22
(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE 23
ADMINISTRATION DETERM INES IS NECESSARY , INCLUDING: 24
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM OR 25
TECHNICAL ASSISTANCE BEING FINANCED THROU GH THE LOAN; 26
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 27
ENERGY SYSTEM WILL B E INSTALLED AND WHET HER THE PROPERTY IS OWNED OR 28 4 SENATE BILL 186
LEASED BY THE APPLIC ANT; AND 1
(3) ANY ADDITIONAL INFOR MATION RELATING TO T HE BORROWER OR 2
THE PROPOSED QUALIFY ING ENERGY SYSTEM BE ING FINANCED THROUGH THE 3
LOAN THAT MAY BE REQ UIRED BY THE ADMINISTRATION IN ORD ER TO ADMINISTER 4
THE PROGRAM. 5
(C) THE ADMINISTRATION MAY AP PROVE AN APPLICA TION FOR A LOAN 6
UNDER § 9–2106(A)(1) OF THIS SUBTITLE ONLY IF THE APPLICATION 7
DEMONSTRATES THAT TH E PROPOSED QUALIFYING ENERGY SYSTEM IS ESTIMATED , 8
BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST SAVINGS OVER 9
THE USEFUL LIFE OF T HE SYSTEM THAT EQUAL OR EXCEED THE TOTAL AMORTIZED 10
COST OF THE LOAN . 11
(D) IN APPROVING AN APPLI CATION, THE ADMINISTRATION S HALL 12
CONSIDER AND GIVE PR IORITY TO AN APPLICA NT THAT HAS AN ANNUA L BUDGET OF 13
$1,000,000 OR LESS. 14
9–2106. 15
(A) LOANS FROM THE FUND MAY BE USED FOR : 16
(1) THE PURCHASE AND INSTALL ATION OF A QUALIFYING ENERGY 17
SYSTEM, INCLUDING ANY NECESSARY ANCILL ARY MACHINERY, EQUIPMENT, OR 18
FURNISHINGS; AND 19
(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 20
OF A QUALIFYING ENER GY SYSTEM. 21
(B) EACH BORROWER FOR A LOAN UNDER SUB SECTION (A)(1) OF THIS 22
SECTION SHALL CONTRIBUTE AT LEAST 10% OF THE COST OF THE QUALIFYING 23
ENERGY SYSTEM . 24
(C) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY THE 25
BORROWER IN ACCORDAN CE WITH A SCHEDULE T HAT THE ADMINISTRATION SETS , 26
WHICH MAY BE ON A DE FERRED PAYMENT BASIS . 27
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 28
REPAYMENT OF A LOAN . 29
(2) THE ASSURANCES : 30
(I) SHALL INCLUDE A PROM ISSORY NOTE; AND 31 SENATE BILL 186 5
(II) MAY INCLUDE A PLAN F OR REPAYMENT . 1
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 2
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 3
PROGRAMS. 4
9–2107. 5
(A) THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 6
ORGANIZATIONS LOAN FUND. 7
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 8
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 9
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 10
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, 11
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 12
(D) THE FUND CONSISTS OF : 13
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 14
(2) MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE ; 15
(3) INTEREST AND INVESTM ENT EARNINGS O F THE FUND; AND 16
(4) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 17
FUND. 18
(E) (1) IN FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUDE IN THE 19
ANNUAL BUDGET BILL A N APPROPRIATION OF $5,000,000 FOR THE FUND. 20
(2) IN FISCAL YEAR 2026, THE GOVERNOR SHALL INCLUD E IN THE 21
ANNUAL BUDGET BILL AN APPROPRIATION EQU AL TO AT LEAST $5,000,000 MINUS 22
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATE LY PRECEDING 23
FISCAL YEAR. 24
(F) THE FUND MAY BE USED ONLY: 25
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 26
6 SENATE BILL 186
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS UNDER THE 1
PROGRAM. 2
(G) (1) THE STATE TREASURER SHALL INVES T AND REINVEST THE 3
MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 4
INVESTED. 5
(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID IN TO 6
THE FUND. 7
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 8
PAID INTO THE FUND. 9
Article – State Finance and Procurement 10
6–226. 11
(a) (2) (i) Notwithstanding any other provision of law, and unless 12
inconsistent with a federal law, grant agreement, or other federal requirement or with the 13
terms of a gift or settlement agreement, net interest on all State money allocated by the 14
State Treasurer under this section to special funds or accounts, and otherwise entitled to 15
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 16
Fund of the State. 17
(ii) The provisions of subparagraph (i) of this paragraph do not apply 18
to the following funds: 19
170. the Cannabis Public Health Fund; [and] 20
171. the Community Reinvestment and Repair Fund; AND 21
172. THE GREEN AND RENEWABLE ENERGY FOR 22
NONPROFIT ORGANIZATIONS LOAN FUND. 23
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 202 4, the 24
Maryland Energy Administration shall: 25
(1) establish an application process for loans made under the Green and 26
Renewable Energy for Nonprofit Organizations Loan Program in Title 9, Subtitle 21 of the 27
State Government Article, as enacted by Section 1 of this Act; 28
(2) set guidelines and considerations for application, selection, and 29
repayment that include: 30
(i) nonprofit organizations that own, rather than rent, their 31 SENATE BILL 186 7
buildings; 1
(ii) property size and kilowatt–hours of energy used; 2
(iii) geographic diversity; 3
(iv) ethnic and racial diversity; 4
(v) economic diversity; 5
(vi) nonprofit organization mission diversity; 6
(vii) access to the borrower’s portion of the cost of the qualifying 7
energy system; and 8
(viii) process and frequency of loan repayment; and 9
(3) develop and implement an advertising campaign for the Green and 10
Renewable Energy for Nonprofit Organizations Loan Program. 11
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 12
effect July 1, 2024. 13
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 14
3 of this Act, this Act shall take effect July 1, 2023. 15