Green and Renewable Energy Efficiency for Nonprofits (GREEN) Loan Program and Fund - Establishment

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0695*

HOUSE BILL 695
M5, P1 6lr1129
HB 145/25 – ECM & APP CF SB 23
By: Delegates A. Johnson, Acevero, Behler, Cardin, Embry, Feldmark, Kaufman,
J. Long, Simmons, Spiegel, Stinnett, and Wu
Introduced and read first time: February 2, 2026
Assigned to: Environment and Transportation and Appropriations

A BILL ENTITLED

AN ACT concerning 1

Green and Renewable Energy Efficiency for Nonprofits (GREEN) Loan Program 2
and Fund – Establishment 3

FOR the purpose of establishing the Green and Renewable Energy Efficiency for Nonprofits 4
Loan Program in the Maryland Clean Energy Center to provide financial assistance 5
to nonprofit organizations for the planning, purchase, and installation of qualifying 6
energy systems and for actions that improve energy efficiency; establishing the 7
Green and Renewable Energy Efficiency for Nonprofit s Loan Fund as a special, 8
nonlapsing fund; requiring interest earnings of the Green and Renewable Energy 9
Efficiency for Nonprofits Loan Fund to be paid into the Green and Renewable Energy 10
Efficiency for Nonprofit s Loan Fund; altering the uses of the Maryland Strategic 11
Energy Investment Fund to include providing funds to the Green and Renewable 12
Energy Efficiency for Nonprofits Loan Fund; and generally relating to the Green and 13
Renewable Energy Efficiency for Nonprofits Loan Program and Fund. 14

BY renumbering 15
Article – Economic Development 16
Section 10–862 and the part “Part VII. Short Title” 17
to be Section 10–871 and the part “Part VIII. Short Title” 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – Economic Development 22
Section 10 –862 through 10 –868 to be under the new part “Part VII. Green and 23
Renewable Energy Efficiency for Nonprofits Loan Program” 24
Annotated Code of Maryland 25
(2024 Replacement Volume and 2025 Supplement) 26

BY repealing and reenacting, without amendments, 27
2 HOUSE BILL 695

Article – State Finance and Procurement 1
Section 6–226(a)(2)(i) and (ii) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4

BY repealing and reenacting, with amendments, 5
Article – State Finance and Procurement 6
Section 6–226(a)(2)(iii)212. and 213. 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2025 Supplement) 9

BY adding to 10
Article – State Finance and Procurement 11
Section 6–226(a)(2)(iii)214. 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, without amendments, 15
Article – State Government 16
Section 9–20B–05(a) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – State Government 21
Section 9–20B–05(f)(13) and (14) 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2025 Supplement) 24

BY adding to 25
Article – State Government 26
Section 9–20B–05(f)(14) 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2025 Supplement) 29

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 31
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10 –871 32
and the part “Part VIII. Short Title”. 33

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland rea d 34
as follows: 35

Article – Economic Development 36

PART VII. GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN 37
PROGRAM. 38
HOUSE BILL 695 3

10–862. 1

(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3

(B) “BORROWER” MEANS A NONPROFIT ORGANIZATION THAT APPLIES AND 4
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 5

(C) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY 6
FOR NONPROFITS LOAN FUND. 7

(D) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATIO N THAT IS 8
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 9
REVENUE CODE. 10

(E) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY 11
EFFICIENCY FOR NONPROFITS LOAN PROGRAM. 12

(F) “QUALIFYING ENERGY SYSTEM” MEANS A SYSTEM THAT: 13

(1) GENERATES ELECTRICITY OR USABLE THERMAL ENERGY THAT IS 14
USED TO MEET ON–SITE DEMAND; AND 15

(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 16
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 17
ENVIRONMENT ARTICLE. 18

10–863. 19

THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS 20
LOAN PROGRAM IN THE CENTER. 21

10–864. 22

THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 23
THE FORM OF NO–INTEREST LOANS TO NONPROFIT ORGANIZATIONS FOR: 24

(1) THE PLANNING, PURCHASE, AND INSTALLATION OF QUALIFYING 25
ENERGY SYSTEMS IN THE STATE; AND 26

(2) ACTIONS THAT IMP ROVE ENERGY EFFICIEN CY, SUCH AS 27
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 28
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 29

4 HOUSE BILL 695

10–865. 1

THE CENTER SHALL: 2

(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 3

(2) ADOPT RE GULATIONS TO ENSURE THAT LOANS PROVIDED TO 4
NONPROFIT ORGANIZATIONS CARRY OUT THE PURPOSE OF THE PROGRAM; AND 5

(3) ATTACH TO ANY LOAN S PECIFIC TERMS THAT A RE CONSIDERED 6
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED. 7

10–866. 8

(A) (1) A BORROWER MUST FILE AN APPLICATION WITH THE CENTER TO 9
RECEIVE A LOAN UNDER THE PROGRAM. 10

(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 11
OFFICER OR AN AUTHORIZED OFFICER OF THE NONPROFIT ORGANIZATION. 12

(B) THE APPLICATION MUST CONTAIN ANY INFO RMATION THE CENTER 13
DETERMINES IS NECESSARY, INCLUDING: 14

(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM , 15
ENERGY EFFICIENCY AC TION, OR TECHNICAL ASSISTANCE BEING FINANCED 16
THROUGH THE LOAN; 17

(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 18
ENERGY SYSTEM WILL B E INSTALLED OR AN EN ERGY EFFICIENCY ACTI ON WILL 19
OCCUR AND WHETHER THE PROP ERTY IS OWNED OR LEA SED BY THE APPLICANT ; 20
AND 21

(3) ANY ADDITIONAL INFORMATION RELATING TO THE BORROWER OR 22
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFFICI ENCY ACTION 23
BEING FINANCED THROUGH THE LOAN THAT MAY BE REQUIRED BY THE CENTER TO 24
ADMINISTER THE PROGRAM. 25

(C) THE CENTER MAY APPROVE AN APPLICATION FOR A LOAN SPECIFIED IN 26
§ 10–867(A)(1) OF THIS SUBTITLE ONLY IF THE APPLICATION DEMONSTRATES THAT 27
THE PROPOSED QUALIFYING ENER GY SYSTEM OR ENERGY EFFICIENCY ACTION IS 28
ESTIMATED, BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST 29
SAVINGS OVER THE USEFUL LIFE OF THE SYST EM OR ENERGY EFFICIENCY ACTION 30
THAT EQUAL OR EXCEED THE TOTAL AMORTIZED COST OF THE LOAN. 31

HOUSE BILL 695 5

(D) IN APPROVING AN APPLI CATION, THE CENTER SHALL CONSIDER AND 1
GIVE PRIORITY TO AN APPLICANT THAT HAS AN ANNUAL BUDGET OF $1,000,000 OR 2
LESS. 3

10–867. 4

(A) LOANS FROM THE FUND MAY BE USED FOR: 5

(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENER GY 6
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 7
FURNISHINGS; 8

(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 9
OF A QUALIFYING ENERGY SYSTEM; AND 10

(3) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 11
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 12
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 13

(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 14
SECTION SHALL CONTRI BUTE AT LEAST 10% OF THE COST OF THE Q UALIFYING 15
ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION. 16

(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY 17
THE BORROWER IN ACCORDANCE WITH A SCHEDULE SET BY THE CENTER. 18

(2) THE SCHEDULE SET BY T HE CENTER MAY BE ON A DEFERRED 19
PAYMENT BASIS. 20

(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR THE 21
REPAYMENT OF A LOAN. 22

(2) THE ASSURANCES: 23

(I) SHALL INCLUDE A PROMISSORY NOTE; AND 24

(II) MAY INCLUDE A PLAN FOR REPAYMENT. 25

(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 26
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 27
PROGRAMS. 28

10–868. 29

6 HOUSE BILL 695

(A) THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR 1
NONPROFITS LOAN FUND. 2

(B) THE CENTER SHALL ADMINISTER THE FUND. 3

(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 4
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 5

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 6
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 7

(D) THE FUND CONSISTS OF: 8

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE PROGRAM; 9

(2) MONEY TRANSFERRED FR OM THE STRATEGIC ENERGY 10
INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THE STATE GOVERNMENT 11
ARTICLE; 12

(3) MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE; 13

(4) INTEREST AND INVESTMENT EARNINGS OF THE FUND; AND 14

(5) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 15
FUND. 16

(E) (1) IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE 17
ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 18

(2) IN FISCAL YEAR 2029, THE GOVERNOR MAY INCLUDE IN THE 19
ANNUAL BUDGET BILL A N APPROPRIATION EQUAL 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

HOUSE BILL 695 7

(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID IN TO 1
THE FUND. 2

(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHAL L BE 3
PAID INTO THE FUND. 4

10–869. RESERVED. 5

10–870. RESERVED. 6

Article – State Finance and Procurement 7

6–226. 8

(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 9

(ii) Notwithstanding any other provision of law, and unless 10
inconsistent with a federal law, grant agreement, or other federal requirement or with the 11
terms of a gift or settlement agreement, net interest on all State money allocated by the 12
State Treasurer under this section to special funds or accounts, and otherw ise entitled to 13
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 14
Fund of the State. 15

(iii) The provisions of subparagraph (ii) of this paragraph do not 16
apply to the following funds: 17

212. the Department of Social and Economic Mobility Special 18
Fund; [and] 19

213. the Population Health Improvement Fund; AND 20

214. THE GREEN AND RENEWABLE ENERGY EFFICIENCY 21
FOR NONPROFITS LOAN FUND. 22

Article – State Government 23

9–20B–05. 24

(a) There is a Maryland Strategic Energy Investment Fund. 25

(f) The Administration shall use the Fund: 26

(13) notwithstanding subsection (g) of this section, to pay costs associated 27
with the Air and Radiation Administration within the Department of the Environment; 28
[and] 29

8 HOUSE BILL 695

(14) TO PROVID E FUNDS TO THE GREEN AND RENEWABLE ENERGY 1
EFFICIENCY FOR NONPROFITS LOAN FUND ESTABLISHED UNDER § 10–868 OF THE 2
ECONOMIC DEVELOPMENT ARTICLE; AND 3

[(14)] (15) to pay the expenses of the Program. 4

SECTION 3. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027, the 5
Maryland Clean Energy Center shall: 6

(1) establish an application process for loans made under the Green and 7
Renewable Energy Efficiency for Nonprofits Loan Program in Title 10, Subtitle 8 of the 8
Economic Development Article, as enacted by Section 2 of this Act; 9

(2) set guidelines and considerations for application, selection, and 10
repayment that include: 11

(i) nonprofit organizations that own, rather than rent, their 12
buildings; 13

(ii) property size and kilowatt–hours of energy used; 14

(iii) geographic diversity; 15

(iv) ethnic and racial diversity; 16

(v) economic diversity; 17

(vi) nonprofit organization mission diversity; 18

(vii) access to the borrower’s portion of the cost of the qualifying 19
energy system; and 20

(viii) process and frequency of loan repayment; and 21

(3) develop and implement an advertising campaign for the Green and 22
Renewable Energy Efficiency for Nonprofits Loan Program. 23

SECTION 4. AND BE IT FURTHER ENACTED, That Sections 1 and 2 of this Act 24
shall take effect July 1, 2027. 25

SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 26
4 of this Act, this Act shall take effect July 1, 2026. 27