EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0660*
HOUSE BILL 660
P1, M5 4lr1769
HB 1248/23 – ECM & APP CF SB 169
By: Delegate Charkoudian
Introduced and read first time: January 25, 2024
Assigned to: Economic Matters and Appropriations
A BILL ENTITLED
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 planning, purchase, and 6
installation of qualifying energy systems; establishing the Green and Renewable 7
Energy for Nonprofit Organizations Loan Fund as a special, nonlapsing fund; 8
requiring interest earnings of the Fund to be paid into the Fund; and generally 9
relating to the Green and Renewable Energy for Nonprofit Organizations Loan 10
Program and Fund. 11
BY adding to 12
Article – State Government 13
Section 9–2101 through 9–2107 to be under the new subtitle “Subtitle 21. Green and 14
Renewable Energy for Nonprofit Organizations Loan Program” 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2023 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – State Finance and Procurement 19
Section 6–226(a)(2)(i) 20
Annotated Code of Maryland 21
(2021 Replacement Volume and 2023 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 6–226(a)(2)(ii)189. and 190. 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2023 Supplement) 27
2 HOUSE BILL 660
BY adding to 1
Article – State Finance and Procurement 2
Section 6–226(a)(2)(ii)191. 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – State Government 8
SUBTITLE 21. GREEN AND RENEWABLE ENERGY FOR NONPROFIT 9
ORGANIZATIONS LOAN PROGRAM. 10
9–2101. 11
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12
INDICATED. 13
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 14
ADMINISTRATION . 15
(C) “BORROWER” MEANS A NONPROFIT OR GANIZATION THAT APPL IES AND 16
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 17
(D) “FUND” MEANS THE GREEN AND RENEWABL E ENERGY FOR 18
NONPROFIT ORGANIZATIONS LOAN FUND. 19
(E) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 20
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 21
REVENUE CODE. 22
(F) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY FOR 23
NONPROFIT ORGANIZATIONS LOAN PROGRAM. 24
(G) “QUALIFYING ENERGY SYS TEM” MEANS A SYSTEM THAT : 25
(1) GENERATES ELECTRICIT Y OR USABLE THERMAL ENERGY THAT IS 26
USED TO MEET ON –SITE DEMAND; AND 27
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 28
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 29
ENVIRONMENT ARTICLE. 30
9–2102. 31 HOUSE BILL 660 3
THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 1
ORGANIZATIONS LOAN PROGRAM IN THE ADMINISTRATION . 2
9–2103. 3
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 4
THE FORM OF NO –INTEREST LOANS TO NO NPROFIT ORGANIZATION S FOR THE 5
PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING ENERGY SY STEMS IN 6
THE STATE. 7
9–2104. 8
THE ADMINISTRATION SHALL : 9
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 10
(2) ADOPT REGULATIONS TO ENSUR E THAT LOANS PROVIDE D TO 11
NONPROFIT ORGANIZATI ONS CARRY OUT THE PU RPOSE OF THE PROGRAM; AND 12
(3) ATTACH TO ANY LOAN S PECIFIC TERMS THAT A RE CONSIDERED 13
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED . 14
9–2105. 15
(A) (1) A BORROWER MUST FILE A N APPLICATION WITH T HE 16
ADMINISTRATION TO REC EIVE A LOAN UNDER TH E PROGRAM. 17
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 18
OFFICER OR AN AUTHOR IZED OFFICER OF THE NONPROFIT ORGANIZATI ON. 19
(B) THE APPLICATION MUST CONTAIN ANY INFORMATION TH E 20
ADMINISTRATION DETERM INES IS NECESSARY , INCLUDING: 21
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM OR 22
TECHNICAL ASSISTANCE BEING FINANCED THROU GH THE LOAN; 23
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 24
ENERGY SYS TEM WILL BE INSTALLE D AND WHETHER THE PR OPERTY IS OWNED OR 25
LEASED BY THE APPLIC ANT; AND 26
(3) ANY ADDITIONAL INFOR MATION RELATING TO T HE BORROWER OR 27
THE PROPOSED QUALIFY ING ENERGY SYSTEM BE ING FINANCED THROUGH THE 28
LOAN THAT MAY BE REQ UIRED BY THE ADMINISTRATION TO ADM INISTER THE 29 4 HOUSE BILL 660
PROGRAM. 1
(C) THE ADMINISTRATION MAY AP PROVE AN APPLICATION FOR A LOAN 2
UNDER § 9–2106(A)(1) OF THIS SUBTITLE ONL Y IF THE APPLICATION 3
DEMONSTRATES THAT TH E PROPOSED QUALIFYIN G ENERGY SYSTEM IS E STIMATED, 4
BASED ON PROJECTED ENERGY COSTS , TO GENERATE ENERGY C OST SAVINGS OVER 5
THE USEFUL LIFE OF T HE SYSTEM THAT EQUAL OR EXCEED THE TOTAL AMORTIZED 6
COST OF THE LOAN . 7
(D) IN APPROVING AN APPLI CATION, THE ADMINISTRATION SHALL 8
CONSIDER AND GIVE PR IORITY TO AN APPLICA NT THAT HAS AN A NNUAL BUDGET OF 9
$1,000,000 OR LESS. 10
9–2106. 11
(A) LOANS FROM THE FUND MAY BE USED FOR : 12
(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENERGY 13
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 14
FURNISHINGS; AND 15
(2) TECHNICAL ASSISTA NCE FOR THE PLANNING AND INSTALLATION 16
OF A QUALIFYING ENER GY SYSTEM. 17
(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 18
SECTION SHALL CONTRI BUTE AT LEAST 10% OF THE COST OF THE Q UALIFYING 19
ENERGY SYSTEM . 20
(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPAYABLE B Y 21
THE BORROWER IN ACCO RDANCE WITH A SCHEDU LE SET BY THE ADMINISTRATION . 22
(2) THE SCHEDULE SET BY T HE ADMINISTRATION MAY BE ON A 23
DEFERRED PAYMENT BAS IS. 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
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 30 HOUSE BILL 660 5
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 1
PROGRAMS. 2
9–2107. 3
(A) THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 4
ORGANIZATIONS LOAN FUND. 5
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 6
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 7
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 8
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 9
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 10
(D) THE FUND CONSISTS OF : 11
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 12
(2) MONEY RECEIVED FROM ANY PUBLIC OR PRIVAT E SOURCE; 13
(3) INTEREST AND INVESTM ENT EARNINGS OF THE FUND; AND 14
(4) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 15
FUND. 16
(E) (1) IN FISCAL YEAR 2026, THE GOVERNOR MAY INCLUDE IN THE 17
ANNUAL BUDGET BILL A N APPROPRIATION OF $5,000,000 FOR THE FUND. 18
(2) IN FISCAL YEAR 2027, THE GOVERNOR MAY INCLUDE IN THE 19
ANNUAL BUDGET BILL A N APPROPRIATION EQUA L TO AT LEAST $5,000,000 MINUS 20
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY P RECEDING 21
FISCAL YEAR. 22
(F) THE FUND MAY BE USED ONLY : 23
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 24
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS U NDER THE 25
PROGRAM. 26
(G) (1) THE STATE TREASURER SHALL INVES T AND REINVEST THE 27
MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 28
INVESTED. 29 6 HOUSE BILL 660
(2) ANY INVESTMENT EARNI NGS OF THE FUND SHALL BE PAID IN TO 1
THE FUND. 2
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 3
PAID INTO THE FUND. 4
Article – State Finance and Procurement 5
6–226. 6
(a) (2) (i) Notwithstanding any other provision of law, and unless 7
inconsistent with a federal law, grant agreement, or other federal requirement or with the 8
terms of a gift or settlement agreement, net interest on all State money allocated by the 9
State Treasurer under this section to special funds or accounts, and otherwise entitled to 10
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 11
Fund of the State. 12
(ii) The provisions of subparagraph (i) of this paragraph do not apply 13
to the following funds: 14
189. the Teacher Retention and Development Fund; [and] 15
190. the Protecting Against Hate Crimes Grant Fund; AND 16
191. THE GREEN AND RENEWABLE ENERGY FOR 17
NONPROFIT ORGANIZATIONS LOAN FUND. 18
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2025, the 19
Maryland Energy Administration shall: 20
(1) establish an application process for loans made under the Green and 21
Renewable Energy for Nonprofit Organizations Loan Program in Title 9, Subtitle 21 of the 22
State Government Article, as enacted by Section 1 of this Act; 23
(2) set guidelines and considerations for application, selection, and 24
repayment that include: 25
(i) nonprofit organizations that own, rather than rent, their 26
buildings; 27
(ii) property size and kilowatt–hours of energy used; 28
(iii) geographic diversity; 29
(iv) ethnic and racial diversity; 30 HOUSE BILL 660 7
(v) economic diversity; 1
(vi) nonprofit organization mission diversity; 2
(vii) access to the borrower’s portion of the cost of the qualifying 3
energy system; and 4
(viii) process and frequency of loan repayment; and 5
(3) develop and implement an advertising campaign for the Green and 6
Renewable Energy for Nonprofit Organizations Loan Program. 7
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 8
effect July 1, 2025. 9
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 10
3 of this Act, this Act shall take effect July 1, 2024. 11