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.
*hb1220*
HOUSE BILL 1220
C8 4lr1741
HB 911/23 – APP CF SB 960
By: Delegates Vogel, Edelson, Harris, Qi, Rogers, and Wims
Introduced and read first time: February 8, 2024
Assigned to: Appropriations
Committee Report: Favorable
House action: Adopted
Read second time: March 28, 2024
CHAPTER ______
AN ACT concerning 1
Maryland Clean Energy Center – Climate Technology Founder’s Fund 2
FOR the purpose of establishing the Climate Technology Founder’s Fund in the Maryland 3
Clean Energy Center; requiring interest earnings of the Climate Technology 4
Founder’s Fund to be credited to the Climate Technology Founder’s Fund; requiring 5
the Maryland Energy Administration to use the Maryland Strategic Energy 6
Investment Fund to provide a certain amount of funding in certain fiscal years to the 7
Climate Technology Founder’s Fund; authorizing the Governor to transfer, on or 8
before a certain date, up to a certain amount of the funds in the Small, Minority, and 9
Women–Owned Businesses Account to the Climate Technology Founder’s Fund; and 10
generally relating to the Climate Technology Founder’s Fund within the Maryland 11
Clean Energy Center. 12
BY renumbering 13
Article – Economic Development 14
Section 10–858 and the part “Part VI. Short Title” 15
to be Section 10–862 and the part “Part VII. Short Title” 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2023 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Economic Development 20
Section 5–1501(a) and 10–801(a), (d), and (f) 21
Annotated Code of Maryland 22
(2018 Replacement Volume and 2023 Supplement) 23 2 HOUSE BILL 1220
BY repealing and reenacting, with amendments, 1
Article – Economic Development 2
Section 5–1501(b)(1) 3
Annotated Code of Maryland 4
(2018 Replacement Volume and 2023 Supplement) 5
BY adding to 6
Article – Economic Development 7
Section 10–858 and 10–859 to be under the new part “Part VI. Climate Technology 8
Founder’s Fund” 9
Annotated Code of Maryland 10
(2018 Replacement Volume and 2023 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – State Finance and Procurement 13
Section 6–226(a)(2)(i) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2023 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Finance and Procurement 18
Section 6–226(a)(2)(ii)189. and 190. 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2023 Supplement) 21
BY adding to 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(ii)191. 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2023 Supplement) 26
BY repealing 27
Article – State Government 28
Section 9–20B–05(f)(9) and (f–1) 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2023 Supplement) 31
BY adding to 32
Article – State Government 33
Section 9–20B–05(f)(9) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2023 Supplement) 36
BY repealing and reenacting, with amendments, 37
Article – State Government 38
Section 9–20B–05(f)(10) and (11), (f–2), (f–3), and (f–4) 39 HOUSE BILL 1220 3
Annotated Code of Maryland 1
(2021 Replacement Volume and 2023 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That Section(s) 10–858 and the part “Part VI. Short Title” of Article – Economic 4
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10–862 5
and the part “Part VII. Short Title”. 6
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8
Article – Economic Development 9
5–1501. 10
(a) There is a Small, Minority, and Women–Owned Businesses Account under the 11
authority of the Department. 12
(b) (1) [(i)] The Account shall receive money as required under § 9–1A–27 of 13
the State Government Article. 14
[(ii) The Account shall receive money from the Strategic Energy 15
Investment Fund as required under § 9–20B–05 of the State Government Article.] 16
10–801. 17
(a) In this subtitle the following words have the meanings indicated. 18
(d) “Board” means the Board of Directors of the Center. 19
(f) “Center” means the Maryland Clean Energy Center. 20
PART VI. CLIMATE TECHNOLOGY FOUNDER’S FUND. 21
10–858. 22
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24
(B) “CLIMATE TECHNOLOGY ” INCLUDES: 25
(1) SOLAR ENERGY ; 26
(2) WIND ENERGY ; 27
(3) ENERGY STORAGE DEVIC ES; 28 4 HOUSE BILL 1220
(4) GRID MODERNIZATION ; 1
(5) CARBON CAPTURE UTILI ZATION AND STORAGE ; AND 2
(6) ANY OTHER TECHNOL OGY DEFINED BY THE CENTER THAT: 3
(I) REDUCES GREENHOUSE G AS EMISSIONS; 4
(II) MITIGATES THE IMPACT S OF CLIMATE CHANGE ; OR 5
(III) PROVIDES A NEGATIVE EMISSION BENEFIT IN THE 6
ELECTRIC, OIL, OR GAS SECTOR . 7
(C) “FUND” MEANS THE CLIMATE TECHNOLOGY FOUNDER’S FUND. 8
(D) “QUALIFIED PROJECT ” MEANS A PROJECT RELA TED TO CLIMATE 9
TECHNOLOGY . 10
10–859. 11
(A) THERE IS A CLIMATE TECHNOLOGY FOUNDER’S FUND. 12
(B) THE PURPOSE OF THE FUND IS TO PROVIDE EA RLY–STAGE FUNDING 13
FOR START–UP COMPANIES FOCUSED ON QUALIFIED PROJECTS IN CLIMATE 14
TECHNOLOGIES . 15
(C) (1) THE CENTER SHALL ADMINIST ER THE FUND. 16
(2) THE CENTER SHALL ESTABLIS H A FUND OVERSIGHT 17
COMMITTEE, APPOINTED BY THE BOARD, TO MANAGE THE FUND. 18
(D) THE FUND CONSISTS OF : 19
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 20
(2) MONEY MADE AVAILABLE TO THE FUND THROUGH PRIVATE 21
CONTRIBUTIONS AND FE DERAL GRANTS OR PROG RAMS; 22
(3) PROCEEDS FROM THE SA LE, DISPOSITION, LEASE, OR RENTAL OF 23
COLLATERAL RELATED T O FINANCING MADE FRO M THE FUND; 24
(4) REPAYMENT O F FINANCING MADE FRO M THE FUND; 25 HOUSE BILL 1220 5
(5) RETURNS FROM OR RECO VERY OF ANY FINANCIN G MADE FROM 1
THE FUND; 2
(6) PROCEEDS FROM THE SA LE OF ANY FINANCING MADE OR ASSETS 3
ACQUIRED WITH PROCEE DS FROM THE FUND; 4
(7) MONEY TRANSFERRED FR OM THE MARYLAND STRATEGIC 5
ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE GOVERNMENT 6
ARTICLE; 7
(8) INTEREST EARNINGS ON MONEY IN THE FUND; AND 8
(9) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 9
THE BENEFIT OF THE FUND. 10
(E) (1) THE FUND MAY BE USED ONLY TO: 11
(I) EVALUATE AND COORDIN ATE FINANCING FOR QU ALIFIED 12
PROJECTS RELATED TO THE PURPOSE OF THE FUND; 13
(II) PROVIDE FINANCING TO QUALIFIED PROJECTS ; 14
(III) SECURE PRIVATE INVES TMENT CAPITAL FOR FI NANCING OF 15
QUALIFIED PROJECTS; AND 16
(IV) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 17
ADMINISTER THE FUND AND THE ACTIVITI ES OF THE CENTER IN CARRYING OU T 18
THIS PART. 19
(2) NOT MORE THAN 10% OF THE FUND BALANCE MAY BE U SED FOR 20
ADMINISTRATIVE PURPO SES. 21
(F) IN DETERMINI NG THE QUALIFIED PROJECTS T O RECEIVE FINANCING 22
FROM THE FUND, THE DEPARTMENT SHALL GIVE PREFERENC E TO COMPANIES 23
THAT ARE SMALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED BUSINESSES 24
IN THE CLEAN ENERGY INDUSTRY. 25
(G) (1) EXPENDITURES FROM THE FUND MAY BE MADE ONLY WITH 26
APPROVAL OF THE FUND OVERSIGHT COMMITTEE. 27
(2) A RECIPIENT OF FINANCI AL ASSISTANCE UNDER THIS SECTION 28
SHALL PROVIDE MATCHI NG FUNDS FOR THE QUA LIFIED PROJECT EQUAL TO THE 29 6 HOUSE BILL 1220
AMOUNT OF FINANCIAL ASSISTANCE AWARDED F ROM THE FUND. 1
(H) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CENTER SHALL REPORT 2
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 3
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE USE O F THE FUND AND 4
OUTCOMES OF INVESTME NTS MADE FROM THE FUND. 5
10–860. RESERVED. 6
10–861. RESERVED. 7
Article – State Finance and Procurement 8
6–226. 9
(a) (2) (i) Notwithstanding any other provision of law, and unless 10
inconsistent with a federal law, grant agreement, or other federal requirement or with the 11
terms of a gift or settlement agreement, net interest on all State money allocated by the 12
State Treasurer under this section to special funds or accounts, and otherwise entitled to 13
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 14
Fund of the State. 15
(ii) The provisions of subparagraph (i) of this paragraph do not apply 16
to the following funds: 17
189. the Teacher Retention and Development Fund; [and] 18
190. the Protecting Against Hate Crimes Grant Fund; AND 19
191. THE CLIMATE TECHNOLO GY FOUNDER’S FUND. 20
Article – State Government 21
9–20B–05. 22
(f) The Administration shall use the Fund: 23
[(9) subject to subsections (f–1) and (f–3) of this section, to provide 24
$7,000,000 in funding for access to capital for small, minority, women–owned, and 25
veteran–owned businesses in the clean energy industry under § 5–1501 of the Economic 26
Development Article, allocated in annual increments as follows: 27
(i) $200,000 in fiscal year 2021; 28
(ii) $500,000 in fiscal year 2022; 29
HOUSE BILL 1220 7
(iii) $500,000 in fiscal year 2023; 1
(iv) $1,000,000 in fiscal year 2024; and 2
(v) $1,200,000 in each fiscal year from 2025 through 2028;] 3
(9) TO PROVIDE AT LEAST $1,200,000 IN EACH FISCAL YEAR FOR 4
FISCAL YEAR 2025 THROUGH FISCAL YEAR 2028 TO THE CLIMATE TECHNOLOGY 5
FOUNDER’S FUND ESTABLISHED UNDE R § 10–858 OF THE ECONOMIC 6
DEVELOPMENT ARTICLE; 7
(10) subject to subsections [(f–2) and (f–3)] (F–1) AND (F–2) of this section, 8
to invest in pre–apprenticeship, youth apprenticeship, and registered apprenticeship 9
programs to establish career paths in the clean energy industry under § 11–708.1 of the 10
Labor and Employment Article, as follows: 11
(i) $1,250,000 for grants to pre–apprenticeship jobs training 12
programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal 13
year 2021 until all amounts are spent; 14
(ii) $6,000,000 for grants to youth apprenticeship jobs training 15
programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of 16
the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent; 17
and 18
(iii) $750,000 for the recruitment of individuals, including veterans 19
and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs 20
and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor 21
and Employment Article starting in fiscal year 2021 until all amounts are spent; 22
(11) subject to subsection [(f–4)] (F–3) of this section, to provide at least 23
$2,100,000 in funding each fiscal year to the Maryland Energy Innovation Fund established 24
under § 10–835 of the Economic Development Article; 25
[(f–1) (1) Any funding provided under subsection (f)(9) of this section that is not 26
spent in a given fiscal year shall revert to the Fund in the following fiscal year. 27
(2) Funding that is provided for access to capital for small, minority, 28
women–owned, and veteran–owned businesses under subsection (f)(9) of this section shall 29
be used to provide grants to eligible fund managers to provide investment capital, including 30
equity and similar investments, and loans to small, minority, women–owned, and 31
veteran–owned businesses in the State in the clean energy industry. 32
(3) Eligible fund managers receiving grants under subsection (f)(9) of this 33
section may use a portion of the money received to pay ordinary and reasonable expenses 34
for administrative, actuarial, legal, marketing, and technical services and management 35 8 HOUSE BILL 1220
fees. 1
(4) The Administration may provide additional funding for the purposes 2
stated in subsection (f)(9) of this section.] 3
[(f–2)] (F–1) An $8,000,000 payment for workforce development programs under 4
subsection (f)(10) of this section starting in fiscal year 2021 shall be derived from the 5
Renewable Energy, Climate Change account of the Fund. 6
[(f–3)] (F–2) Funding under subsection [(f)(9) and (10)] (F)(10) of this section for 7
access to capital, investment, promotion, or implementation should be directed only to 8
businesses that agree to create and maintain jobs that promote family–sustaining wages, 9
employer–provided health care with affordable deductibles and co –pays, career 10
advancement training, fair scheduling, employer–paid workers’ compensation and 11
unemployment insurance, a retirement plan, paid time off, and the right to bargain 12
collectively for wages and benefits. 13
[(f–4)] (F–3) Of the funds transferred to the Maryland Energy Innovation Fund 14
under subsection (f)(11) of this section: 15
(1) at least $1,200,000 may be used to fund the Maryland Clean Energy 16
Center established under § 10–806 of the Economic Development Article; and 17
(2) at least $900,000 may be used to fund the Maryland Energy Innovation 18
Institute established under § 10–829 of the Economic Development Article. 19
SECTION 3. AND BE IT FURTHER ENACTED, That notwithstanding any other 20
provision of law, on or before June 30, 2024, the Governor may transfer up to $2,200,000 of 21
the funds in the Small, Minority, and Women–Owned Businesses Account established 22
under § 5–1501 of the Economic Development Article that are attributable to funds from 23
the Maryland Strategic Energy Investment Fund to the Climate Technology Founder’s 24
Fund established under § 10–859 of the Economic Development Article, as enacted by 25
Section 2 of this Act. 26
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 27
1, 2024. 28