WES MOORE, Governor Ch. 474
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Chapter 474
(Senate Bill 960)
AN ACT concerning
Maryland Clean Energy Center – Climate Technology Founder’s Fund
FOR the purpose of establishing the Climate Technology Founder’s Fund in the Maryland
Clean Energy Center; requiring interest earnings of the Climate Technology
Founder’s Fund to be credited to the Climate Technology Founder’s Fund; requiring
the Maryland Energy Administration to use the Maryland Strategic Ene rgy
Investment Fund to provide a certain amount of funding in certain fiscal years to the
Climate Technology Founder’s Fund; authorizing the Governor to transfer, on or
before a certain date, up to a certain amount of the funds in the Small, Minority, and
Women–Owned Businesses Account to the Climate Technology Founder’s Fund; and
generally relating to the Climate Technology Founder’s Fund within the Maryland
Clean Energy Center.
BY renumbering
Article – Economic Development
Section 10–858 and the part “Part VI. Short Title”
to be Section 10–862 and the part “Part VII. Short Title”
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – Economic Development
Section 5–1501(a) and 10–801(a), (d), and (f)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 5–1501(b)(1)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY adding to
Article – Economic Development
Section 10–858 and 10–859 to be under the new part “Part VI. Climate Technology
Founder’s Fund”
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement Ch. 474 2024 LAWS OF MARYLAND
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Section 6–226(a)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)189. and 190.
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY adding to
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)191.
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing
Article – State Government
Section 9–20B–05(f)(9) and (f–1) and (10), (f–2), and (f–3)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY adding to
Article – State Government
Section 9–20B–05(f)(9)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – State Government
Section 9–20B–05(f)(10) and (11), (f–2), (f–3), and (f–4) Section 9–20B–05(f)(11),
(f–1), and (f–4)
Annotated Code of Maryland
(2021 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 10–858 and the part “Part VI. Short Title” of Article – Economic
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10–862
and the part “Part VII. Short Title”.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Economic Development
5–1501. WES MOORE, Governor Ch. 474
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(a) There is a Small, Minority, and Women–Owned Businesses Account under the
authority of the Department.
(b) (1) [(i)] The Account shall receive money as required under § 9–1A–27 of
the State Government Article.
[(ii) The Account shall receive money from the Strategic Energy
Investment Fund as required under § 9–20B–05 of the State Government Article.]
10–801.
(a) In this subtitle the following words have the meanings indicated.
(d) “Board” means the Board of Directors of the Center.
(f) “Center” means the Maryland Clean Energy Center.
PART VI. CLIMATE TECHNOLOGY FOUNDER’S FUND.
10–858.
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “CLIMATE TECHNOLOGY ” INCLUDES:
(1) SOLAR ENERGY ;
(2) WIND ENERGY ;
(3) ENERGY STORAGE DEVIC ES;
(4) GRID MODERNIZATION ;
(5) CARBON CAPTURE UTILI ZATION AND STORAGE ; AND
(6) ANY OTHER TECHNOLOGY DEFINED BY THE CENTER THAT:
(I) REDUCES GREENHOUSE G AS EMISSIONS;
(II) MITIGATES THE IMPACT S OF CLIMATE CHANGE ; OR
(III) PROVIDES A NEGATIVE EMISSION BENEFIT IN THE
ELECTRIC, OIL, OR GAS SECTOR . Ch. 474 2024 LAWS OF MARYLAND
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(C) “FUND” MEANS THE CLIMATE TECHNOLOGY FOUNDER’S FUND.
(D) “QUALIFIED PROJECT ” MEANS A PROJECT RELA TED TO CLIMATE
TECHNOLOGY .
10–859.
(A) THERE IS A CLIMATE TECHNOLOGY FOUNDER’S FUND.
(B) THE PURPOSE OF THE FUND IS TO PROVIDE EA RLY–STAGE FUNDING
FOR START–UP COMPANIES FOCUSED ON QUALIFIED PROJECT S IN CLIMATE
TECHNOLOGIES .
(C) (1) THE CENTER SHALL ADMINIST ER THE FUND.
(2) THE CENTER SHALL ESTABLIS H A FUND OVERSIGHT
COMMITTEE, APPOINTED BY T HE BOARD, TO MANAGE THE FUND.
(D) THE FUND CONSISTS OF :
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND;
(2) MONEY MADE AVAILABLE TO THE FUND THROUGH PRIVATE
CONTRIBUTIONS AND FE DERAL GRANTS OR PROG RAMS;
(3) PROCEEDS FROM THE SA LE, DISPOSITION, LEASE, OR RENTAL OF
COLLATERAL RELATED T O FINANCING MADE FRO M THE FUND;
(4) REPAYMENT OF FINANCI NG MADE FROM THE FUND;
(5) RETURNS FROM OR RECO VERY OF ANY FINANCIN G MADE FROM
THE FUND;
(6) PROCEEDS FROM THE SA LE OF ANY FINANCING MADE OR ASSETS
ACQUIRED WITH PROCEE DS FROM THE FUND;
(7) MONEY TRANSFERRED FR OM THE MARYLAND STRATEGIC
ENERGY INVESTMENT FUND UNDER § 9–20B–05 OF THE STATE GOVERNMENT
ARTICLE;
(8) INTEREST EARNINGS ON MONEY IN THE FUND; AND
WES MOORE, Governor Ch. 474
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(9) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTE D FOR
THE BENEFIT OF THE FUND.
(E) (1) THE FUND MAY BE USED ONLY TO:
(I) EVALUATE AND COORDIN ATE FINANCING FOR QU ALIFIED
PROJECTS RELATED TO THE PURPOSE OF THE FUND;
(II) PROVIDE FINANCING TO QUALIFIED PROJECTS ;
(III) SECURE PRIVATE INVESTME NT CAPITAL FOR FINAN CING OF
QUALIFIED PROJECTS ; AND
(IV) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION ,
ADMINISTER THE FUND AND THE ACTIVITI ES OF THE CENTER IN CARRYING OU T
THIS PART.
(2) NOT MORE THAN 10% OF THE FUND BALANCE MAY B E USED FOR
ADMINISTRATIVE PURPO SES MONEY IN THE FUND MAY BE ALLOCATED AS
FOLLOWS:
(I) UP TO $1,720,000 FOR DIRECT INVESTMEN TS OF THE FUND;
(II) UP TO $3,280,000 FOR THE MARYLAND CLEAN ENERGY
CENTER AND THE MARYLAND ENERGY INNOVATION ACCELERATOR TECH SUPPORT
PROGRAMS; AND
(III) UP TO $2,000,000 FOR MARYLAND ENERGY INNOVATION
INSTITUTE SEED GRANTS .
(F) (1) IN SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , IN
DETERMINING THE QUAL IFIED PROJECTS TO RE CEIVE FINANCING INVESTMENT
FROM THE FUND, THE DEPARTMENT CENTER SHALL GIVE PREFERENC E TO
COMPANIES THAT ARE S MALL, MINORITY, WOMEN–OWNED, AND VETERAN –OWNED
BUSINESSES IN THE CL EAN ENERGY INDUSTRY .
(2) AT LEAST 40% OF THE FUNDS AWARDED BY THE CENTER SHALL
BE USED FOR EQUITY I NVESTMENTS IN MINORITY , WOMEN–OWNED, AND
VETERAN–OWNED BUSINESSES STA RT–UP COMPANIES .
(3) FORTY PERCENT OF THE FUNDING FROM THE CENTER’S OVERALL
APPROPRIATION THAT I S ALLOCATED FOR MARYLAND ENERGY INNOVATION
INSTITUTE SEED GRANTS SHALL BE USED TO PRO VIDE GRANTS FOR START –UP
COMPANIES FROM MINOR ITY SERVING INSTITUT IONS. Ch. 474 2024 LAWS OF MARYLAND
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(G) (1) EXPENDITURES FROM THE FUND MAY BE MADE ONLY WITH
APPROVAL OF THE FUND OVERSIGHT COMMITTEE.
(2) A RECIPIENT OF FINANCI AL ASSISTANCE UNDER THIS SECTION
SHALL PROVIDE MATCHI NG FUNDS FOR THE QUA LIFIED PROJECT EQUAL TO THE
AMOUNT OF FINANCIAL ASSISTANCE AWARDED F ROM THE FUND BY THE CENTER.
(H) ON OR BEFORE OCTOBER 1 EACH YEAR, THE CENTER SHALL REPORT
TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE
GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON THE USE O F THE FUND AND
OUTCOMES OF INVESTME NTS MADE FROM THE FUND.
10–860. RESERVED.
10–861. RESERVED.
Article – State Finance and Procurement
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
189. the Teacher Retention and Development Fund; [and]
190. the Protecting Against Hate Crimes Grant Fund; AND
191. THE CLIMATE TECHNOLOGY FOUNDER’S FUND.
Article – State Government
9–20B–05.
(f) The Administration shall use the Fund:
[(9) subject to subsections (f–1) and (f–3) of this section, to provide
$7,000,000 in funding for access to capital for small, minority, women–owned, and WES MOORE, Governor Ch. 474
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veteran–owned businesses in the clean energy industry under § 5–1501 of the Economic
Development Article, allocated in annual increments as follows:
(i) $200,000 in fiscal year 2021;
(ii) $500,000 in fiscal year 2022;
(iii) $500,000 in fiscal year 2023;
(iv) $1,000,000 in fiscal year 2024; and
(v) $1,200,000 in each fiscal year from 2025 through 2028;]
(9) TO PROVIDE AT LEAST $1,200,000 IN EACH FISCAL YEAR FOR
FISCAL YEAR 2025 THROUGH FISCAL YEAR 2028 TO THE CLIMATE TECHNOLOGY
FOUNDER’S FUND ESTABLISHED UNDE R § 10–858 OF THE ECONOMIC
DEVELOPMENT ARTICLE;
(10) subject to subsections [(f–2) and (f–3)] (F–1) AND (F–2) of this section,
to invest in pre–apprenticeship, youth apprenticeship, and registered apprenticeship
programs to establish career paths in the clean energy industry under § 11–708.1 of the
Labor and Employment Article, as follows:
(i) $1,250,000 for grants to pre–apprenticeship jobs training
programs under § 11–708.1(c)(3) of the Labor and Employment Article starting in fiscal
year 2021 until all amounts are spent;
(ii) $6,000,000 for grants to youth apprenticeship jobs training
programs and registered apprenticeship jobs training programs under § 11–708.1(c)(5) of
the Labor and Employment Article starting in fiscal year 2021 until all amounts are spent;
and
(iii) $750,000 for the recruitment of individuals, including veterans
and formerly incarcerated individuals, to the pre–apprenticeship jobs training programs
and the registered apprenticeship jobs training programs under § 11–708.1 of the Labor
and Employment Article starting in fiscal year 2021 until all amounts are spent;
(11) (10) subject to subsection [(f–4)] (F–3) (F–2) of this section, to provide at
least $2,100,000 in funding each fiscal year to the Maryland Energy Innovation Fund
established under § 10–835 of the Economic Development Article;
[(f–1) (1) Any funding provided under subsection (f)(9) of this section that is not
spent in a given fiscal year shall revert to the Fund in the following fiscal year.
(2) Funding that is provided for access to capital for small, minority,
women–owned, and veteran–owned businesses under subsection (f)(9) of this section shall Ch. 474 2024 LAWS OF MARYLAND
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be used to provide grants to eligible fund managers to provide investment capital, including
equity and similar investments, and loans to small, minority, women–owned, and
veteran–owned businesses in the State in the clean energy industry.
(3) Eligible fund managers receiving grants under subsection (f)(9) of this
section may use a portion of the money received to pay ordinary and reasonable expenses
for administrative, actuarial, legal, marketing, and technical services and management
fees.
(4) (2) The Administration may provide additional funding for the purposes
stated in subsection (f)(9) of this section.]
[(f–2)] (F–1) An $8,000,000 payment for workforce development programs under
subsection (f)(10) of this section starting in fiscal year 2021 shall be derived from the
Renewable Energy, Climate Change account of the Fund.
[(f–3)] (F–2) Funding under subsection [(f)(9) and (10)] (F)(10) of this section for
access to capital, investment, promotion, or implementation should be directed only to
businesses that agree to create and maintain jobs that promote family–sustaining wages,
employer–provided health care with affordable deductibles and co –pays, career
advancement training, fair scheduling, employer–paid workers’ compensation and
unemployment insurance, a retirement plan, paid time off, and the right to bargain
collectively for wages and benefits.
[(f–4)] (F–3) (F–2) Of the funds transferred to the Maryland Energy Innovation
Fund under subsection (f)(11) (F)(10) of this section:
(1) at least $1,200,000 may be used to fund the Maryland Clean Energy
Center established under § 10–806 of the Economic Development Article; and
(2) at least $900,000 may be used to fund the Maryland Energy Innovation
Institute established under § 10–829 of the Economic Development Article.
SECTION 3. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, on or before June 30, 2024, the Governor may transfer up to $2,200,000 of
the funds in the Small, Minority, and Women–Owned Businesses Account established
under § 5–1501 of the Economic Development Article that are attributable to funds from
the Maryland Strategic Energy Investment Fund to the Climate Technology Founder’s
Fund established under § 10–859 of the Economic Development Article, as enacted by
Section 2 of this Act.
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June
1, 2024.
Approved by the Governor, May 9, 2024.