EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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.
*sb0960*
SENATE BILL 960
C8 4lr3162
SB 900/23 – B&T CF HB 1220
By: Senator Feldman
Introduced and read first time: February 2, 2024
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 29, 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 S trategic 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 SENATE BILL 960
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) and (10), (f–2), and (f–3) 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 SENATE BILL 960 3
Section 9–20B–05(f)(10) and (11), (f–2), (f–3), and (f–4) Section 9–20B–05(f)(11), 1
(f–1), and (f–4) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2023 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That Section(s) 10–858 and the part “Part VI. Short Title” of Article – Economic 6
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10–862 7
and the part “Part VII. Short Title”. 8
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Economic Development 11
5–1501. 12
(a) There is a Small, Minority, and Women–Owned Businesses Account under the 13
authority of the Department. 14
(b) (1) [(i)] The Account shall receive money as required under § 9–1A–27 of 15
the State Government Article. 16
[(ii) The Account shall receive money from the Strategic Energy 17
Investment Fund as required under § 9–20B–05 of the State Government Article.] 18
10–801. 19
(a) In this subtitle the following words have the meanings indicated. 20
(d) “Board” means the Board of Directors of the Center. 21
(f) “Center” means the Maryland Clean Energy Center. 22
PART VI. CLIMATE TECHNOLOGY FOUNDER’S FUND. 23
10–858. 24
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 25
INDICATED. 26
(B) “CLIMATE TECHNOLOGY ” INCLUDES: 27
(1) SOLAR ENERGY ; 28
(2) WIND ENERGY ; 29 4 SENATE BILL 960
(3) ENERGY STORAGE DEVIC ES; 1
(4) GRID MODERNIZATION ; 2
(5) CARBON CAPTURE UTILI ZATION AND STORAGE ; AND 3
(6) ANY OTHER TECHNOLOGY DEFINED BY THE CENTER THAT: 4
(I) REDUCES GREENHOUSE G AS EMISSIONS; 5
(II) MITIGATES THE IMPACT S OF CLIMATE CHANGE ; OR 6
(III) PROVIDES A NEGATIVE EMISSION BENEFIT IN THE 7
ELECTRIC, OIL, OR GAS SECTOR . 8
(C) “FUND” MEANS THE CLIMATE TECHNOLOGY FOUNDER’S FUND. 9
(D) “QUALIFIED PROJECT ” MEANS A PROJECT RELA TED TO CLIMATE 10
TECHNOLOGY . 11
10–859. 12
(A) THERE IS A CLIMATE TECHNOLOGY FOUNDER’S FUND. 13
(B) THE PURPOSE OF THE FUND IS TO PROVIDE EA RLY–STAGE FUNDING 14
FOR START–UP COMPANIES FOCUSED ON QUALIFIED PROJECT S IN CLIMATE 15
TECHNOLOGIES . 16
(C) (1) THE CENTER SHALL ADMINIST ER THE FUND. 17
(2) THE CENTER SHALL ESTABLIS H A FUND OVERSIGHT 18
COMMITTEE, APPOINTED BY THE BOARD, TO MANAGE THE FUND. 19
(D) THE FUND CONSISTS OF : 20
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 21
(2) MONEY MADE AVAILABLE TO THE FUND THROUGH PRIVATE 22
CONTRIBUTIONS AND FE DERAL GRANTS OR PROG RAMS; 23
(3) PROCEEDS FROM THE SA LE, DISPOSITION, LEASE, OR RENTAL OF 24
COLLATERAL RELATED T O FINANCING MADE FRO M THE FUND; 25
(4) REPAYMENT OF FINANCI NG MADE FROM THE FUND; 26 SENATE BILL 960 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 M ADE 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 MONEY IN THE FUND MAY BE ALLOCATED AS 21
FOLLOWS: 22
(I) UP TO $1,720,000 FOR DIRECT INVESTMEN TS OF THE FUND; 23
(II) UP TO $3,280,000 FOR THE MARYLAND CLEAN ENERGY 24
CENTER AND THE MARYLAND ENERGY INNOVATION ACCELERATOR TECH SUPP ORT 25
PROGRAMS; AND 26
(III) UP TO $2,000,000 FOR MARYLAND ENERGY INNOVATION 27
INSTITUTE SEED GRANTS . 28
6 SENATE BILL 960
(F) (1) IN SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , IN 1
DETERMINING THE QUAL IFIED PROJECTS TO RE CEIVE FINANCING INVESTMENT 2
FROM THE FUND, THE DEPARTMENT CENTER SHALL GIVE PREFERENC E TO 3
COMPANIES THAT ARE S MALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED 4
BUSINESSES IN THE CL EAN ENERGY INDUSTRY . 5
(2) AT LEAST 40% OF THE FUNDS AWARDED BY THE CENTER SHALL 6
BE USED FOR E QUITY INVESTMENTS IN MINORITY, WOMEN–OWNED, AND 7
VETERAN–OWNED BUSINESSES STA RT–UP COMPANIES . 8
(3) FORTY PERCENT OF THE FUNDING FROM THE CENTER’S OVERALL 9
APPROPRIATION THAT I S ALLOCATED FOR MARYLAND ENERGY INNOVATION 10
INSTITUTE SEED GRANTS SHALL BE USED T O PROVIDE GRANTS FOR START–UP 11
COMPANIES FROM MINOR ITY SERVING INSTITUT IONS. 12
(G) (1) EXPENDITURES FROM THE FUND MAY BE MADE ONLY WITH 13
APPROVAL OF THE FUND OVERSIGHT COMMITTEE. 14
(2) A RECIPIENT OF FINANCI AL ASSISTANCE UNDER THIS SECTION 15
SHALL PROVIDE MATCHI NG FUNDS FOR THE QUA LIFIED PROJECT EQUAL TO THE 16
AMOUNT OF FINANCIAL ASSISTANCE AWARDED F ROM THE FUND BY THE CENTER. 17
(H) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CENTER SHALL REPORT 18
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE 19
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE USE O F THE FUND AND 20
OUTCOMES OF INVESTME NTS MADE FROM THE FUND. 21
10–860. RESERVED. 22
10–861. RESERVED. 23
Article – State Finance and Procurement 24
6–226. 25
(a) (2) (i) Notwithstanding any other provision of law, and unless 26
inconsistent with a federal law, grant agreement, or other federal requirement or with the 27
terms of a gift or settlement agreement, net interest on all State money allocated by the 28
State Treasurer under this section to special funds or accounts, and otherwise entitled to 29
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 30
Fund of the State. 31
(ii) The provisions of subparagraph (i) of this paragraph do not apply 32
to the following funds: 33
SENATE BILL 960 7
189. the Teacher Retention and Development Fund; [and] 1
190. the Protecting Against Hate Crimes Grant Fund; AND 2
191. THE CLIMATE TECHNOLOGY FOUNDER’S FUND. 3
Article – State Government 4
9–20B–05. 5
(f) The Administration shall use the Fund: 6
[(9) subject to subsections (f–1) and (f–3) of this section, to provide 7
$7,000,000 in funding for access to capital for small, minority, women–owned, and 8
veteran–owned businesses in the clean energy industry under § 5–1501 of the Economic 9
Development Article, allocated in annual increments as follows: 10
(i) $200,000 in fiscal year 2021; 11
(ii) $500,000 in fiscal year 2022; 12
(iii) $500,000 in fiscal year 2023; 13
(iv) $1,000,000 in fiscal year 2024; and 14
(v) $1,200,000 in each fiscal year from 2025 through 2028;] 15
(9) TO PROVIDE AT LEAST $1,200,000 IN EACH FISCAL YEAR FOR 16
FISCAL YEAR 2025 THROUGH FISCAL YEAR 2028 TO THE CLIMATE TECHNOLOGY 17
FOUNDER’S FUND ESTABLISHED UNDE R § 10–858 OF THE ECONOMIC 18
DEVELOPMENT ARTICLE; 19
(10) subject to subsections [(f–2) and (f–3)] (F–1) AND (F–2) of this section, 20
to invest in pre–apprenticeship, youth apprenticeship, and registered apprenticeship 21
programs to establish career paths in the clean energy industry under § 11–708.1 of the 22
Labor and Employment Article, as follows: 23
(i) $1,250,000 for grants to pre–apprenticeship jobs training 24
programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal 25
year 2021 until all amounts are spent; 26
(ii) $6,000,000 for grants to youth apprenticeship jobs training 27
programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of 28
the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent; 29
and 30
8 SENATE BILL 960
(iii) $750,000 for the recruitment of individuals, including veterans 1
and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs 2
and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor 3
and Employment Article starting in fiscal year 2021 until all amounts are spent; 4
(11) (10) subject to subsection [(f–4)] (F–3) (F–2) of this section, to provide at 5
least $2,100,000 in funding each fiscal year to the Maryland Energy Innovation Fund 6
established under § 10–835 of the Economic Development Article; 7
[(f–1) (1) Any funding provided under subsection (f)(9) of this section that is not 8
spent in a given fiscal year shall revert to the Fund in the following fiscal year. 9
(2) Funding that is provided for access to capital for small, minority, 10
women–owned, and veteran–owned businesses under subsection (f)(9) of this section shall 11
be used to provide grants to eligible fund managers to provide investment capital, including 12
equity and similar investments, and loans to small, minority, women–owned, and 13
veteran–owned businesses in the State in the clean energy industry. 14
(3) Eligible fund managers receiving grants under subsection (f)(9) of this 15
section may use a portion of the money received to pay ordinary and reasonable expenses 16
for administrative, actuarial, legal, marketing, and technical services and management 17
fees. 18
(4) (2) The Administration may provide additional funding for the purposes 19
stated in subsection (f)(9) of this section.] 20
[(f–2)] (F–1) An $8,000,000 payment for workforce development programs under 21
subsection (f)(10) of this section starting in fiscal year 2021 shall be derived from the 22
Renewable Energy, Climate Change account of the Fund. 23
[(f–3)] (F–2) Funding under subsection [(f)(9) and (10)] (F)(10) of this section for 24
access to capital, investment, promotion, or implementation should be directed only to 25
businesses that agree to create and maintain jobs that promote family–sustaining wages, 26
employer–provided health care with affordable deductibles and co –pays, career 27
advancement training, fair scheduling, employer–paid workers’ compensation and 28
unemployment insurance, a retirement plan, paid time off, and the right to bargain 29
collectively for wages and benefits. 30
[(f–4)] (F–3) (F–2) Of the funds transferred to the Maryland Energy Innovation 31
Fund under subsection (f)(11) (F)(10) of this section: 32
(1) at least $1,200,000 may be used to fund the Maryland Clean Energy 33
Center established under § 10–806 of the Economic Development Article; and 34
(2) at least $900,000 may be used to fund the Maryland Energy Innovation 35
Institute established under § 10–829 of the Economic Development Article. 36 SENATE BILL 960 9
SECTION 3. AND BE IT FURTHER ENACTED, That, notwithstanding any o ther 1
provision of law, on or before June 30, 2024, the Governor may transfer up to $2,200,000 of 2
the funds in the Small, Minority, and Women–Owned Businesses Account established 3
under § 5–1501 of the Economic Development Article that are attributable to funds from 4
the Maryland Strategic Energy Investment Fund to the Climate Technology Founder’s 5
Fund established under § 10–859 of the Economic Development Article, as enacted by 6
Section 2 of this Act. 7
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2024. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.