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.
*sb0186*
SENATE BILL 186
P1, M5 3lr0461
SB 683/22 – B&T CF HB 1248
By: Senator Kagan
Introduced and read first time: January 20, 2023
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 18, 2023
CHAPTER ______
AN ACT concerning 1
Green and Renewable Energy for Nonprofit Organizations 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 2 SENATE BILL 186
Section 6–226(a)(2)(i) 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2022 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)170. and 171. 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2022 Supplement) 8
BY adding to 9
Article – State Finance and Procurement 10
Section 6–226(a)(2)(ii)172. 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2022 Supplement) 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. GREEN AND RENEWABLE ENERGY FOR NONPROFIT 17
ORGANIZATIONS LOAN 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 GREEN AND RENEWABLE ENERGY FOR 26
NONPROFIT ORGANIZATIONS LOAN FUND. 27
(E) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 28
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 29
REVENUE CODE. 30
(F) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY FOR 31
NONPROFIT ORGANIZATIONS LOAN PROGRAM. 32
(G) “QUALIFYING ENERGY SYS TEM” MEANS A SYSTEM THAT : 33 SENATE BILL 186 3
(1) GENERATES ELE CTRICITY OR USABLE T HERMAL ENERGY THAT I S 1
USED TO MEET ONSITE DEMAND; AND 2
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 3
GREENHOUSE GAS REDUC TION GOALS UNDER § 2–1205 OF THE ENVIRONMENT 4
ARTICLE. 5
9–2102. 6
THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 7
ORGANIZATIONS LOAN PROGRAM IN THE ADMINISTRATION . 8
9–2103. 9
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 10
THE FORM OF NO –INTEREST LOANS TO NO NPROFIT ORGANIZATION S FOR THE 11
PURCHASE AND INSTALL ATION OF QUALIFYING ENERGY SYST EMS IN THE STATE. 12
9–2104. 13
THE ADMINISTRATION SHALL : 14
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 15
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 16
NONPROFIT ORGANIZATI ONS CARRY OUT THE PU RPOSE OF THE PROGRAM; AND 17
(3) ATTACH SPECIFIC TERMS TO ANY LOAN TH AT ARE CONSIDERED 18
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED . 19
9–2105. 20
(A) (1) TO RECEIVE A LOAN UND ER THE PROGRAM, A BORROWER MUST 21
FILE AN APPLICATION WITH THE ADMINISTRATION . 22
(2) THE APPLICATION MUST BE SIGNED BY THE CHIEF OPER ATING 23
OFFICER OR AN AUTHOR IZED OFFICER OF THE NONPROFIT ORGANIZATI ON. 24
(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE 25
ADMINISTRATION DETERM INES IS NECESSARY , INCLUDING: 26
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM OR 27
TECHNICAL ASSISTANCE BEING FINANCED THROU GH THE LOAN; 28
4 SENATE BILL 186
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 1
ENERGY SYSTEM WILL B E INSTALLED AND WHET HER THE PROPERTY IS OWNED OR 2
LEASED BY THE APPLIC ANT; AND 3
(3) ANY ADDITIONAL INFOR MATION RELATING TO THE BORROWER OR 4
THE PROPOSED QUALIFY ING ENERGY SYSTEM BE ING FINANCED THROUGH THE 5
LOAN THAT MAY BE REQ UIRED BY THE ADMINISTRATION IN ORD ER TO ADMINISTER 6
THE PROGRAM. 7
(C) THE ADMINISTRATION MAY AP PROVE AN APPLICATION FOR A LOAN 8
UNDER § 9–2106(A)(1) OF THIS SUBTITLE ONLY IF T HE APPLICATION 9
DEMONSTRATES THAT TH E PROPOSED QUALIFYIN G ENERGY SYSTEM IS E STIMATED, 10
BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST SAVINGS OVER 11
THE USEFUL LIFE OF T HE SYSTEM THAT EQUAL OR EXCEED THE TOTAL AMORTIZED 12
COST OF THE LOAN. 13
(D) IN APPROVING AN APPLI CATION, THE ADMINISTRATION SHALL 14
CONSIDER AND GIVE PR IORITY TO AN APPLICA NT THAT HAS AN ANNUA L BUDGET OF 15
$1,000,000 OR LESS. 16
9–2106. 17
(A) LOANS FROM THE FUND MAY BE USED FOR : 18
(1) THE PURCHASE AND INS TALLATION OF A QUALIFYING ENERGY 19
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 20
FURNISHINGS; AND 21
(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 22
OF A QUALIFYING ENER GY SYSTEM. 23
(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 24
SECTION SHALL CONTRI BUTE AT LEAST 10% OF THE COST OF THE Q UALIFYING 25
ENERGY SYSTEM . 26
(C) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY THE 27
BORROWER IN ACCORDAN CE WITH A SCHEDULE T HAT THE ADMINISTRATION SETS , 28
WHICH MAY BE ON A DE FERRED PAYMENT BASIS . 29
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 30
REPAYMENT OF A LOAN . 31
(2) THE ASSURANCES : 32
SENATE BILL 186 5
(I) SHALL INCLUDE A PROM ISSORY NOTE; AND 1
(II) MAY INCLUDE A PLAN F OR REPAYMENT . 2
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 3
FINANCIAL ASSISTANCE PROVID ED THROUGH OTHER STATE OR FEDERAL 4
PROGRAMS. 5
9–2107. 6
(A) THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 7
ORGANIZATIONS LOAN FUND. 8
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 9
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 10
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 11
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 12
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 13
(D) THE FUND CONSISTS OF : 14
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 15
(2) MONEY RECEIVED FROM ANY PUBLIC OR PRIVAT E SOURCE; 16
(3) INTEREST AND INVESTM ENT EARNINGS OF THE FUND; AND 17
(4) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 18
FUND. 19
(E) (1) IN FISCAL YEAR 2025, THE GOVERNOR SHALL MAY INCLUDE IN 20
THE ANNUAL BUDGET BI LL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 21
(2) IN FISCAL YEAR 2026, THE GOVERNOR SHALL MAY INCLUDE IN 22
THE ANNUAL BUDGET BI LL AN APPROPRIATION EQUAL TO AT LEAST $5,000,000 23
MINUS THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY PREC EDING 24
FISCAL YEAR. 25
(F) THE FUND MAY BE USED ONLY : 26
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 27
6 SENATE BILL 186
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS U NDER 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, 2024, 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
buildings; 32 SENATE BILL 186 7
(ii) property size and kilowatt–hours of energy used; 1
(iii) geographic diversity; 2
(iv) ethnic and racial diversity; 3
(v) economic diversity; 4
(vi) nonprofit organization mission diversity; 5
(vii) access to the borrower’s portion of the cost of the qualifying 6
energy system; and 7
(viii) process and frequency of loan repayment; and 8
(3) develop and implement an advertising campaign for the Green and 9
Renewable Energy for Nonprofit Organizations Loan Program. 10
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 11
effect July 1, 2024. 12
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 13
3 of this Act, this Act shall take effect July 1, 2023. 14
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.