EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0145*
HOUSE BILL 145
P1, M5 5lr1300
HB 660/24 – ECM & APP (PRE–FILED) CF SB 105
By: Delegate Boafo
Requested: October 22, 2024
Introduced and read first time: January 8, 2025
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 Green and Renewable Energy for Nonprofit 9
Organizations Loan Fund to be paid into the Green and Renewable Energy for 10
Nonprofit Organizations Loan Fund; altering the uses of the Maryland Strategic 11
Energy Investment Fund to include providing funds to the Green and Renewable 12
Energy for Nonprofit Organizations Loan Fund; and generally relating to the Green 13
and Renewable Energy for Nonprofit Organizations Loan Program and Fund. 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(i) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 6–226(a)(2)(ii)204. and 205. 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2024 Supplement) 24
BY adding to 25
Article – State Finance and Procurement 26
Section 6–226(a)(2)(ii)206. 27 2 HOUSE BILL 145
Annotated Code of Maryland 1
(2021 Replacement Volume and 2024 Supplement) 2
BY repealing and reenacting, without amendments, 3
Article – State Government 4
Section 9–20B–05(a) 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2024 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – State Government 9
Section 9–20B–05(f)(12) and (13) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2024 Supplement) 12
BY adding to 13
Article – State Government 14
Section 9–20B–05(f)(13); and 9–2101 through 9–2107 to be under the new subtitle 15
“Subtitle 21. Green and Renewable Energy for Nonprofit Organizations Loan 16
Program” 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – State Finance and Procurement 22
6–226. 23
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 24
through 2028. 25
2. 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
204. the Climate Technology Founder’s Fund; [and] 34
205. the Victims of Domestic Violence Program Grant Fund; 35
AND 36 HOUSE BILL 145 3
206. THE GREEN AND RENEWABLE ENERGY FOR 1
NONPROFIT ORGANIZATIONS LOAN FUND. 2
Article – State Government 3
9–20B–05. 4
(a) There is a Maryland Strategic Energy Investment Fund. 5
(f) The Administration shall use the Fund: 6
(12) to provide grants through the Customer–Sited Solar Program under § 7
9–2016 of this title; [and] 8
(13) TO PROVIDE FUNDS TO THE GREEN AND RENEWABLE ENERGY 9
FOR NONPROFIT ORGANIZATIONS LOAN FUND ESTABLISHED U NDER § 9–2107 OF 10
THIS TITLE; AND 11
[(13)] (14) to pay the expenses of the Program. 12
SUBTITLE 21. GREEN AND RENEWABLE ENERGY FOR NONPROFIT 13
ORGANIZATIONS LOAN PROGRAM. 14
9–2101. 15
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 18
ADMINISTRATION . 19
(C) “BORROWER” MEANS A NONPROFIT OR GANIZATION THAT APPL IES AND 20
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 21
(D) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY FOR 22
NONPROFIT ORGANIZATIONS LOAN FUND. 23
(E) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 24
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 25
REVENUE CODE. 26
(F) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY FOR 27
NONPROFIT ORGANIZATIONS LOAN PROGRAM. 28
4 HOUSE BILL 145
(G) “QUALIFYING ENERG Y SYSTEM” MEANS A SYSTEM THAT : 1
(1) GENERATES ELECTRICIT Y OR USABLE THERMAL ENERGY THAT IS 2
USED TO MEET ON –SITE DEMAND; AND 3
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 4
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 5
ENVIRONMENT ARTICLE. 6
9–2102. 7
THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 8
ORGANIZATIONS LOAN PROGRAM IN THE ADMINISTRATION . 9
9–2103. 10
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 11
THE FORM OF NO –INTEREST LOANS TO NO NPROFIT ORGANIZATIONS FOR TH E 12
PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING ENERGY SY STEMS IN 13
THE STATE. 14
9–2104. 15
THE ADMINISTRATION SHALL : 16
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 17
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 18
NONPROFIT ORGANIZATIONS C ARRY OUT THE PURPOSE OF THE PROGRAM; AND 19
(3) ATTACH TO ANY LOAN S PECIFIC TERMS THAT A RE CONSIDERED 20
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED . 21
9–2105. 22
(A) (1) A BORROWER MUST FILE A N APPLICATION WITH T HE 23
ADMINISTRATION TO RECEIV E A LOAN UNDER THE PROGRAM. 24
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 25
OFFICER OR AN AUTHOR IZED OFFICER OF THE NONPROFIT ORGANIZATI ON. 26
(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE 27
ADMINISTRATION DETERM INES IS NECESSARY, INCLUDING: 28
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM OR 29 HOUSE BILL 145 5
TECHNICAL ASSISTANCE BEING FINANCED THROU GH THE LOAN; 1
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 2
ENERGY SYSTEM WILL B E INSTALLED AND WHET HER THE PROPERTY IS OWNED OR 3
LEASED BY THE APPLIC ANT; AND 4
(3) ANY ADDITIONAL INFOR MATION RELATING TO T HE BORROWER OR 5
THE PROPOSED QUALIFY ING ENERGY SYSTEM BE ING FINANCED THROUGH THE 6
LOAN THAT MAY BE REQ UIRED BY THE ADMINISTRATION TO ADM INISTER THE 7
PROGRAM. 8
(C) THE ADMINISTRATION MAY AP PROVE AN APPLICATION FOR A LOAN 9
SPECIFIED IN § 9–2106(A)(1) OF THIS SUBTITLE ONL Y IF THE APPLICATION 10
DEMONSTRATES THAT TH E PROPOSED QUALIFYIN G ENERGY SYSTEM IS E STIMATED, 11
BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST SAVINGS OVER 12
THE USEFUL LIFE OF T HE SYSTEM THAT EQUAL OR EXCEED THE TOTAL AMORTIZED 13
COST OF THE LOAN . 14
(D) IN APPROVING AN APPLI CATION, THE ADMINISTRATION SHALL 15
CONSIDER AND GIVE PR IORITY TO AN APPLICA NT THAT HAS AN ANNUA L BUDGET OF 16
$1,000,000 OR LESS. 17
9–2106. 18
(A) LOANS FROM THE FUND MAY BE USED FOR : 19
(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENERGY 20
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 21
FURNISHINGS; AND 22
(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 23
OF A QUALIFYING ENERGY SYST EM. 24
(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 25
SECTION SHALL CONTRI BUTE AT LEAST 10% OF THE COST OF THE Q UALIFYING 26
ENERGY SYSTEM . 27
(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY 28
THE BORROWER IN ACCO RDANCE WITH A SCHEDULE SE T BY THE ADMINISTRATION . 29
(2) THE SCHEDULE SET BY T HE ADMINISTRATION MAY BE ON A 30
DEFERRED PAYMENT BAS IS. 31
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 32 6 HOUSE BILL 145
REPAYMENT OF A LOAN . 1
(2) THE ASSURANCES : 2
(I) SHALL INCLUDE A PROM ISSORY NOTE; AND 3
(II) MAY INCLUDE A PLAN F OR REPAYMENT . 4
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 5
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 6
PROGRAMS. 7
9–2107. 8
(A) THERE IS A GREEN AND RENEWABLE ENERGY FOR NONPROFIT 9
ORGANIZATIONS LOAN FUND. 10
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 11
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 12
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 13
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPAR ATELY, 14
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 15
(D) THE FUND CONSISTS OF : 16
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 17
(2) MONEY TRANSFERRED FR OM THE STRATEGIC ENERGY 18
INVESTMENT FUND ESTABLISHED UNDE R § 9–20B–05 OF THIS TITLE; 19
(3) MONEY RECEIVED FROM ANY PUBLIC OR PRIVAT E SOURCE; 20
(4) INTEREST AND INVESTM ENT EARNINGS OF THE FUND; AND 21
(5) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 22
FUND. 23
(E) (1) IN FISCAL YEAR 2027, THE GOVERNOR MAY INCLUDE IN THE 24
ANNUAL BUDGET BI LL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 25
(2) IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE 26
ANNUAL BUDGET BILL A N APPROPRIATION EQUA L TO AT LEAST $5,000,000 MINUS 27
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY P RECEDING 28 HOUSE BILL 145 7
FISCAL YEAR. 1
(F) THE FUND MAY BE USED ONLY : 2
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 3
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS U NDER THE 4
PROGRAM. 5
(G) (1) THE STATE TREASURER SHALL INVES T AND REINVEST THE 6
MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 7
INVESTED. 8
(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID IN TO 9
THE FUND. 10
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 11
PAID INTO THE FUND. 12
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2026, the 13
Maryland Energy Administration shall: 14
(1) establish an application process for loans made under the Green and 15
Renewable Energy for Nonprofit Organizations Loan Program in Title 9, Subtitle 21 of the 16
State Government Article, as enacted by Section 1 of this Act; 17
(2) set guidelines and considerations for application, selection, and 18
repayment that include: 19
(i) nonprofit organizations that own, rather than rent, their 20
buildings; 21
(ii) property size and kilowatt–hours of energy used; 22
(iii) geographic diversity; 23
(iv) ethnic and racial diversity; 24
(v) economic diversity; 25
(vi) nonprofit organization mission diversity; 26
(vii) access to the borrower’s portion of the cost of the qualifying 27
energy system; and 28
(viii) process and frequency of loan repayment; and 29 8 HOUSE BILL 145
(3) develop and implement an advertising campaign for the Green and 1
Renewable Energy for Nonprofit Organizations Loan Program. 2
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 3
effect July 1, 2026. 4
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 5
3 of this Act, this Act shall take effect July 1, 2025. 6