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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0245*
HOUSE BILL 245
M5 6lr0050
(PRE–FILED) CF SB 223
By: Chair, Environment and Transportation Committee (By Request –
Departmental – Maryland Energy Administration)
Requested: September 25, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Maryland Energy Administration – Jane E. Lawton Conservation Loan Program 2
and Maryland Strategic Energy Investment Fund 3
FOR the purpose of transferring the Jane E. Lawton Conservation Loan Program from the 4
Maryland Energy Administration to the Maryland Clean Energy Center; repealing 5
the authority of the Maryland Energy Admini stration to adopt regulations to 6
implement the Program; altering reporting requirements for the Maryland Strategic 7
Energy Investment Fund; and generally relating to the Jane E. Lawton Conservation 8
Loan Program and the Maryland Strategic Energy Investment Fund. 9
BY renumbering 10
Article – Economic Development 11
Section 10–862 and the part “Part VII. Short Title” 12
to be Section 10–874 and the part “Part VIII. Short Title” 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2025 Supplement) 15
BY transferring 16
Article – State Government 17
Section 9–20A–01 through 9 –20A–10 and the subtitle “Subtitle 20A. The Jane E. 18
Lawton Conservation Loan Program” 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
to be 22
Article – Economic Development 23
Section 10–862 through 10 –871 to be under the new part “Part VII. The Jane E. 24
Lawton Conservation Loan Program” 25
Annotated Code of Maryland 26
(2024 Replacement Volume and 2025 Supplement) 27
2 HOUSE BILL 245
BY repealing and reenacting, without amendments, 1
Article – Economic Development 2
Section 10–801(a) and (f) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Economic Development 7
Section 10–801(o) 8
Annotated Code of Maryland 9
(2024 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Economic Development 12
Section 10–862 through 10–871 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2025 Supplement) 15
(As enacted by Section 2 of this Act) 16
BY repealing and reenacting, without amendments, 17
Article – State Government 18
Section 9–20B–01(a), (b), and (e) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Government 23
Section 9–20B–12 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2025 Supplement) 26
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 28
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10 –874 29
and the part “Part VIII. Short Title”. 30
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 9–20A–01 through 31
9–20A–10 and the subtitle “Subtitle 20A. The Jane E. Lawton Conservation Loan Program” 32
of Article – State Government of the Annotated Code of Maryland be transferred to be 33
Section(s) 10–862 through 10–871, respectively, and the part “Part VII. The Jane E. Lawton 34
Conservation Loan Program” of Article – Economic Development of the Annotated Code of 35
Maryland. 36
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 37
as follows: 38
HOUSE BILL 245 3
Article – Economic Development 1
10–801. 2
(a) In this subtitle the following words have the meanings indicated. 3
(f) “Center” means the Maryland Clean Energy Center. 4
(o) [(1) “Project”] WITH RESPECT TO PARTS I THROUGH VI OF THIS 5
SUBTITLE: 6
(1) “PROJECT” means any property, the acquisition or improvement of 7
which the Board, in its sole discretion, determines by resolution will accomplish at least 8
one of the purposes listed in § 10–802(b) of this subtitle, whether or not the property: 9
(i) is or will be used or operated for profit or not for profit; 10
(ii) is or will be located on a single site or multiple sites; or 11
(iii) may be financed by bonds, the interest on which is exempt from 12
income taxation under federal law[.]; AND 13
(2) [“Project”] “PROJECT” includes: 14
(i) land or an interest in land; 15
(ii) structures, equipment, furnishings, rail or motor vehicles, 16
barges, and boats; 17
(iii) property and rights related to property, appurtenances, 18
rights–of–way, franchises, and easements; 19
(iv) property that is functionally related and subordinate to a project; 20
and 21
(v) patents, licenses, and other rights necessary or useful in the 22
improvement or operation of a project. 23
10–862. 24
(a) In this [subtitle] PART the following words have the meanings indicated. 25
(b) [“Administration” means the Maryland Energy Administration. 26
(c)] “Borrower” means an eligible State agency, local jurisdiction, nonprofit 27
organization, or eligible business that applies and qualifies for a loan under this Program. 28
4 HOUSE BILL 245
[(d)] (C) “Eligible business” means a commercial enterprise or business that is 1
in good standing with the State Department of Assessments and Taxation and is: 2
(1) incorporated in the State; or 3
(2) registered to do business in the State. 4
[(e)] (D) “Energy cost savings” means the actual reduction in operating expenses 5
resulting from the installation, operation, and maintenance of a project financed under the 6
Program. 7
[(f)] (E) “Fund” means the Jane E. Lawton Conservation Fund. 8
[(g)] (F) (1) “Local jurisdiction” means any county or municipality of the 9
State. 10
(2) “Local jurisdiction” includes: 11
(i) a board of education of a county or municipality; 12
(ii) a special district that is established by State law and that 13
operates within a single county; 14
(iii) a special district that is established by a county under public 15
general law; and 16
(iv) an office, board, or department that is established in a county 17
under State law and that is funded, under State law, at least in part by the county 18
governing body. 19
[(h)] (G) “Municipality” means any municipal corporation in the State that is 20
subject to the provisions of Article XI –E of the Maryland Constitution or any duly 21
authorized agency or instrumentality of the municipality. 22
[(i)] (H) “Nonprofit organization” means a corporation, foundation, school, 23
hospital, or other legal entity, no part of the net earnings of which inure to the benefit of 24
any private shareholder or individual holding an interest in the entity. 25
[(j)] (I) “Program” means the Jane E. Lawton Conservation Loan Program. 26
[(k)] (J) “Project” means one or more improvements or modifications that 27
enhance the energy efficiency and reduce the operating expenses of a structure located in 28
Maryland. 29
HOUSE BILL 245 5
[(l) (1) “State agency” mea ns any permanent or temporary State office, 1
department, division or unit, bureau, board, commission, task force, authority, institution, 2
State college or university, and any other unit of State government, whether executive, 3
legislative, or judicial. 4
(2) “State agency” includes any subunits of State government.] 5
10–863. 6
There is a Jane E. Lawton Conservation Loan Program in the [Administration] 7
CENTER. 8
10–864. 9
The purpose of the Program is to provide financial assistance in the form of low 10
interest and zero interest loans to nonprofit organizations, local jurisdictions, State 11
agencies, and eligible businesses for projects [in order] to: 12
(1) promote energy conservation; 13
(2) reduce consumption of fossil fuels; 14
(3) improve energy efficiency; 15
(4) enhance energy –related economic development and stability in the 16
nonprofit, commercial, and industrial sectors; and 17
(5) reduce greenhouse gas emissions. 18
10–865. 19
The [Administration] CENTER shall: 20
(1) manage, supervise, and administer the Program; 21
(2) [adopt regulations to ] ensure that loans are provided only to projects 22
that carry out the purpose of the Program; 23
(3) attach specific terms to any loan that are considered necessary to 24
ensure that the purpose of the Program is fulfilled; and 25
(4) develop procedures for monitoring projects to assess whether the 26
improvements or modifications made by an eligible entity or business that had received a 27
loan under the Program have resulted in a measurable reduction in energy consumption. 28
10–866. 29
6 HOUSE BILL 245
(a) (1) To receive a loan under the Program, a borrower must file an 1
application with the [Administration] CENTER. 2
(2) If the borrower is an eligible business, the application must be signed 3
by the chief operating officer or an authorized officer of the business. 4
(3) If the borrower is a local jurisdiction, the application must be signed by 5
the chief elected officer of the county or municipality, or if none, b y the governing body of 6
the county or municipality in which the project is located. 7
(4) If the borrower is a public school, the application must be signed by the 8
board of education of the county in which the project is located. 9
(5) If the borrower is a State agency, the application must be signed by the 10
head of the State agency. 11
(b) The application shall contain any information the [Administration] CENTER 12
determines is necessary, including: 13
(1) the projected cost to accomplish a proposed project; 14
(2) the amount of energy or fuel a proposed project is expected to save over 15
a defined period of time after completion of the project; 16
(3) the anticipated environmental benefits in the form of reduced emissions 17
or pollution attributable to the proposed project; 18
(4) the amount of cost savings expected to be generated over a defined 19
period of time after completion of the proposed project; 20
(5) a description of the borrower’s contribution to a proposed project as 21
required by [§ 9–20A–06] § 10–867 of this subtitle; and 22
(6) any additional information relating to the borrower or the proposed 23
project that may be required by the [Administration] CENTER in order to administer the 24
Program. 25
10–867. 26
(a) Loans from the Fund may be used for: 27
(1) the costs of implementing projects, including the costs of all necessary: 28
(i) technical assessments; 29
(ii) studies; 30
HOUSE BILL 245 7
(iii) surveys; 1
(iv) plans and specifications; and 2
(v) start–up, architectural, engineering, or other special services; 3
(2) the costs of procuring necessary technology, equipment, licenses, or 4
materials; and 5
(3) the costs of construction, rehabilitation, or modification, including the 6
purchase and installation of any necessary machinery, equipment, or furnishings. 7
(b) Each borrower shall make a contribution to a project that is of a type and 8
amount acceptable to the [Administration] CENTER. 9
(c) A borrower other than a State agency must document that the anticipated 10
energy cost savings to the borrower over a defined perio d according to a methodology 11
acceptable to the [Administration] CENTER after the completion of the project are greater 12
than the total cost of the project to the borrower. 13
(d) Loans made under the Program to a borrower other than a State agency shall: 14
(1) be repayable by the borrower from specified revenues that may include 15
the energy cost savings generated by a project; 16
(2) bear interest at a rate that the [Administration] CENTER determines 17
to be necessary and reasonable for the project; and 18
(3) be repayable in accordance with a schedule that the [Administration] 19
CENTER sets, which may be on a deferred payment basis. 20
(e) (1) A borrower other than a State agency shall provide assurances for the 21
repayment of a loan. 22
(2) The assurances: 23
(i) shall include a promissory note; and 24
(ii) may include superior or subordinate mortgage liens, guarantees 25
of repayment, or other forms of collateral. 26
(f) Loans may be made in conjunction with, or in addition to, financial assistance 27
provided through other State or federal programs. 28
10–868. 29
8 HOUSE BILL 245
(a) There is a Jane E. Lawton Conservation Fund. 1
(b) The [Administration] CENTER shall administer the Fund. 2
(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 3
the State Finance and Procurement Article. 4
(2) The State Treasurer shall hold the Fund and the Comptroller shall 5
account for the Fund. 6
(d) The Fund consists of: 7
(1) money appropriated in the State budget to the Program; 8
(2) money received from any public or private source; 9
(3) interest and investment earnings on the Fund; and 10
(4) repayments and prepayments of principal and interest on loans made 11
from the Fund. 12
(e) The Fund may be used only: 13
(1) to pay the expenses of the Program; 14
(2) to provide loans to eligible borrowers and projects; and 15
(3) to enhance the credit of a financing offered by eligible banks and other 16
financial institutions for projects. 17
(f) (1) The State Treasurer shall invest and reinvest the money of the Fund in 18
the same manner as other State money may be invested. 19
(2) Any investment earnings of the Fund shall be paid into the Fund. 20
(3) Any repayment of principal and interest on loans made from the Fund 21
shall be paid into the Fund. 22
(g) (1) The [Administration] CENTER shall annually reserve for at least 90 23
days a portion of the money from the Fund that is available for financial assistance under 24
the Program for loans to nonprofit organizations. 25
(2) In a fiscal year in which requests for financial assistance from nonprofit 26
organizations are less than the amount of money reserved under paragraph (1) of this 27
subsection for the period determined by the [Administration] CENTER, the 28
[Administration] CENTER may make the unencumbered or noncommitted portion of the 29
reserve available to other borrowers in the Program. 30
HOUSE BILL 245 9
10–869. 1
The [Administration] CENTER may enter into contracts with third parties to make, 2
service, or settle loans made under this [subtitle] PART. 3
10–870. 4
(a) The [Administration] CENTER may use the Fund to enhance the credit of a 5
financing offered by a bank or other financial institution for a project. 6
(b) A credit enhancement issued in accordance with subsection (a) of this section 7
shall: 8
(1) carry out the purpose of the Program in a manner the [Administration] 9
CENTER considers appropriate; 10
(2) facilitate financing of at least one project of a local jurisdiction, 11
nonprofit organization, or eligible business; and 12
(3) be offered only to a bank or other financial institution in good standing 13
with the State Department of Assessments and Taxation that is: 14
(i) incorporated in the State; or 15
(ii) registered to do business in the State. 16
(c) The [Administration] CENTER may assess a reasonable fee to a participating 17
bank or financial institution for the administration of this section. 18
[(d) The Administration shall adopt regulations to carry out this section.] 19
10–871. 20
(a) A person may not knowingly make or cause to be made any false statement or 21
report in any document required to be furnished to the [Administration] CENTER by any 22
agreement relating to financial assistance. 23
(b) A person applying for financial assistance may not knowingly make or cause 24
to be made any false statement for the purpose of influencing any ac tion of the 25
[Administration] CENTER on an application for financial assistance or for the purpose of 26
influencing any action of the [Administration] CENTER affecting financial assistance 27
already provided. 28
(c) A person who violates this section is guilty of a misdemeanor and on conviction 29
is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both. 30
10 HOUSE BILL 245
10–872. RESERVED. 1
10–873. RESERVED. 2
Article – State Government 3
9–20B–01. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Administration” means the Maryland Energy Administration. 6
(e) “Fund” means the Maryland Strategic Energy Investment Fund. 7
9–20B–12. 8
(a) On or before January 1 each year, the Administration shall report to the 9
Governor, to the B oard, and, in accordance with § 2 –1257 of this article, to the General 10
Assembly and the members of the Senate Finance Committee and the House Economic 11
Matters Committee on the uses and expenditures of the Fund from the prior fiscal year. 12
(b) The report shall include: 13
(1) a detailed accounting of all amounts IN EXCESS OF $10,000 received 14
by and disbursed from the Fund, including the amount and recipient of each grant awarded 15
by the Administration[, and identifying multiple grants awarded to the same person or the 16
same address]; 17
(2) all amounts used by the Administration for administrative purposes, 18
including the funding source from which each amount was obtained; 19
(3) programs, projects, and activities included in each category under § 20
9–20B–05(g) of this subtitle; 21
(4) the status of programs, projects, activities, and investments 22
implemented with funds from the Fund, including an evaluation of the impact of the 23
programs, projects, activities, and investments that are directed to low –income or 24
moderate–income residential sectors or to other particular classes of ratepayers; 25
(5) an estimate of [electricity savings ] GREENHOUSE GAS EMISS IONS 26
REDUCTIONS from the programs, projects, activities, and investments; 27
(6) the number of allowances sold in each auction; 28
(7) the average allowance price from each auction; 29
HOUSE BILL 245 11
(8) an estimate of revenue from future auctions; 1
(9) an accounting of all amounts received or disbursed by the Fund from 2
all other sources, including money received in accordance with orders issued and settlement 3
agreements approved by the Public Service Commission; 4
(10) recommendations for changes to the allocation of funds under § 5
9–20B–05(g) of this subtitle; 6
(11) the status of programs and expenditures in the current fiscal year; and 7
(12) possible or expected program initiatives and changes in later years. 8
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2026. 10