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SENATE BILL 23
M5, P1 6lr1127
SB 105/25 – B&T (PRE–FILED) CF HB 695
By: Senator Kagan
Requested: October 8, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 20, 2026
CHAPTER ______
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, an d installation of qualifying 6
energy systems and for actions that improve energy efficiency; establishing the 7
Green and Renewable Energy Efficiency for Nonprofits Loan Fund as a special, 8
nonlapsing fund; requiring the Center to hold, invest, reinvest, and a ccount for the 9
Fund; requiring interest earnings of the Green and Renewable Energy Efficiency for 10
Nonprofits Loan Fund to be paid into the Green and Renewable Energy Efficiency 11
for Nonprofits Loan Fund; altering the uses of the Maryland Strategic Energy 12
Investment Fund to include providing funds to the Green and Renewable Energy 13
Efficiency for Nonprofits Loan Fund; and generally relating to the Green and 14
Renewable Energy Efficiency for Nonprofits Loan Program and Fund. 15
BY renumbering 16
Article – Economic Development 17
Section 10–862 and the part “Part VII. Short Title” 18
to be Section 10–871 and the part “Part VIII. Short Title” 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
BY adding to 22
2 SENATE BILL 23
Article – Economic Development 1
Section 10–862 through 10 –868 to be under the new part “Part VII. Green and 2
Renewable Energy Efficiency for Nonprofits Loan Program” 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 6–226(a)(2)(i) and (ii) 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 6–226(a)(2)(iii)212. and 213. 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15
BY adding to 16
Article – State Finance and Procurement 17
Section 6–226(a)(2)(iii)214. 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – State Government 22
Section 9–20B–05(a) 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – State Government 27
Section 9–20B–05(f)(13) and (14) 28
Annotated Code of Maryland 29
(2021 Replacement Volume and 2025 Supplement) 30
BY adding to 31
Article – State Government 32
Section 9–20B–05(f)(14) 33
Annotated Code of Maryland 34
(2021 Replacement Volume and 2025 Supplement) 35
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 36
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 37
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10 –871 38
and the part “Part VIII. Short Title”. 39
SENATE BILL 23 3
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2
Article – Economic Development 3
PART VII. GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS LOAN 4
PROGRAM. 5
10–862. 6
(A) IN THIS PART THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(B) “BORROWER” MEANS A NONPROFIT ORGANIZATION THAT APPLIES AND 9
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 10
(C) “FUND” MEANS THE GREEN AND RENEWABLE ENERGY EFFICIENCY 11
FOR NONPROFITS LOAN FUND. 12
(D) “NONPROFIT ORGANIZATIO N” MEANS AN ORGA NIZATION THAT IS 13
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 14
REVENUE CODE. 15
(E) “PROGRAM” MEANS THE GREEN AND RENEWABLE ENERGY 16
EFFICIENCY FOR NONPROFITS LOAN PROGRAM. 17
(F) “QUALIFYING ENERGY SYSTEM” MEANS A SYSTEM THAT: 18
(1) GENERATES ELECTRICITY OR USABLE THERMAL ENERGY THAT IS 19
USED TO MEET ON–SITE DEMAND; AND 20
(2) ASSISTS THE STATE IN MEETING THE ENVIRONMENTAL AND 21
GREENHOUSE GAS REDUC TION GOALS UNDER TITLE 2, SUBTITLE 12 OF THE 22
ENVIRONMENT ARTICLE. 23
10–863. 24
THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR NONPROFITS 25
LOAN PROGRAM IN THE CENTER. 26
10–864. 27
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 28
THE FORM OF NO–INTEREST LOANS TO NONPROFIT ORGANIZATIONS FOR: 29
4 SENATE BILL 23
(1) THE PLANNING, PURCHASE, AND INSTALLATION OF QUAL IFYING 1
ENERGY SYSTEMS IN THE STATE; AND 2
(2) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 3
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 4
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 5
10–865. 6
THE CENTER SHALL: 7
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 8
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 9
NONPROFIT ORGANIZATIONS CARRY OUT THE PURPOSE OF THE PROGRAM; AND 10
(3) ATTACH TO ANY LOAN S PECIFIC TERMS THAT A RE CONSIDERED 11
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLED. 12
10–866. 13
(A) (1) A BORROWER MUST FILE AN APPLICATION WITH THE CENTER TO 14
RECEIVE A LOAN UNDER THE PROGRAM. 15
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 16
OFFICER OR AN AUTHORIZED OFFICER OF THE NONPROFIT ORGANIZATION. 17
(B) THE APPLICATION MUST CONTAIN ANY INFORMAT ION THE CENTER 18
DETERMINES IS NECESSARY, INCLUDING: 19
(1) THE PROJECTED COST O F THE QUALIFYING ENE RGY SYSTEM , 20
ENERGY EFFICIENCY AC TION, OR TECHNICAL ASSISTANCE BEING FINANCED 21
THROUGH THE LOAN; 22
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 23
ENERGY SYSTEM WILL B E INSTALLED OR AN EN ERGY EFFICIENCY ACTI ON WILL 24
OCCUR AND WHETHER THE PROP ERTY IS OWNED OR LEA SED BY THE APPLICANT ; 25
AND 26
(3) ANY ADDITIONAL INFORMATION RELATING TO THE BORROWER OR 27
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFFICIENCY AC TION 28
BEING FINANCED THROUGH THE LOAN THAT MAY BE REQUIRED BY THE CENTER TO 29
ADMINISTER THE PROGRAM. 30
SENATE BILL 23 5
(C) THE CENTER MAY APPROVE AN APPLICATION FOR A LOAN SPECIFIED IN 1
§ 10–867(A)(1) OF THIS SUBTITLE ONLY IF THE APPLICATION DEMONSTRATES THAT 2
THE PROPOSED QUALIFY ING ENERGY SYSTEM OR ENERGY EFFICIENCY AC TION IS 3
ESTIMATED, BASED ON PROJECTED E NERGY COSTS, TO GENERATE ENERGY C OST 4
SAVINGS OVER THE USEFUL LIFE OF THE SYSTEM OR ENERGY EFFICIENCY ACTION 5
THAT EQUAL OR EXCEED THE TOTAL AMORTIZED COST OF THE LOAN. 6
(D) IN APPROVING AN APPLI CATION, THE CENTER SHALL CONSIDER AND 7
GIVE PRIORITY TO AN APPLICANT THAT HAS AN ANNUAL BUDGET OF $1,000,000 OR 8
LESS. 9
10–867. 10
(A) LOANS FROM THE FUND MAY BE USED FOR: 11
(1) THE PURCHASE AND INS TALLATION OF A QUALI FYING ENERGY 12
SYSTEM, INCLUDING ANY NECESS ARY ANCILLARY MACHIN ERY, EQUIPMENT, OR 13
FURNISHINGS; 14
(2) TECHNICAL ASSISTANCE FOR THE PLANNING AND INSTALLATION 15
OF A QUALIFYING ENERGY SYSTEM; AND 16
(3) ACTIONS THAT IMPROVE ENERGY EFFICIENCY , SUCH AS 17
REPAIRING OR REPLACI NG WINDOWS , DOORS, AND HEATING , VENTILATION, AND 18
AIR–CONDITIONING SYSTEMS AND OTHER SIMILAR IMPROVEMENTS. 19
(B) EACH BORROWER FOR A L OAN UNDER SUBSECTION (A)(1) OF THIS 20
SECTION SHALL CONTRI BUTE AT LEAST 10% OF THE COST OF THE Q UALIFYING 21
ENERGY SYSTEM OR ENERGY EFFICIENCY ACTION. 22
(C) (1) LOANS MADE UNDER THE PROGRAM SHALL BE REPA YABLE BY 23
THE BORROWER IN ACCORDANCE WITH A SCHEDULE SET BY THE CENTER. 24
(2) THE SCHEDULE SET BY T HE CENTER MAY BE ON A DEFERRED 25
PAYMENT BASIS. 26
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 27
REPAYMENT OF A LOAN. 28
(2) THE ASSURANCES: 29
(I) SHALL INCLUDE A PROMISSORY NOTE; AND 30
(II) MAY INCLUDE A PLAN FOR REPAYMENT. 31
6 SENATE BILL 23
(E) LOANS MAY BE MADE IN CONJUNCTION WITH OR IN ADDITION TO 1
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 2
PROGRAMS. 3
10–868. 4
(A) THERE IS A GREEN AND RENEWABLE ENERGY EFFICIENCY FOR 5
NONPROFITS LOAN FUND. 6
(B) THE CENTER SHALL ADMINISTER THE FUND. 7
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER CENTER SHALL HOLD THE FUND 10
SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 11
(D) THE FUND CONSISTS OF: 12
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE PROGRAM; 13
(2) MONEY TRANSFERRED FR OM THE STRATEGIC ENERGY 14
INVESTMENT FUND ESTABLISHED UNDER § 9–20B–05 OF THE STATE GOVERNMENT 15
ARTICLE; 16
(3) MONEY RECEIVED FROM ANY PUBLIC OR PRIVATE SOURCE; 17
(4) INTEREST AND INVESTMENT EARNINGS OF THE FUND; AND 18
(5) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 19
FUND. 20
(E) (1) IN FISCAL YEAR 2028, THE GOVERNOR MAY INCLUDE IN THE 21
ANNUAL BUDGET BILL AN APPROPRIATION OF $5,000,000 FOR THE FUND. 22
(2) IN FISCAL YEAR 2029, THE GOVERNOR MAY INCLUDE IN THE 23
ANNUAL BUDGET BILL A N APPROPRIATION EQUAL TO AT LEAST $5,000,000 MINUS 24
THE AMOUNT IN THE FUND AS OF JUNE 30 OF THE IMMEDIATELY P RECEDING 25
FISCAL YEAR. 26
(F) THE FUND MAY BE USED ONLY: 27
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 28
SENATE BILL 23 7
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS U NDER THE 1
PROGRAM. 2
(G) (1) THE STATE TREASURER CENTER SHALL INVEST AND REI NVEST 3
THE MONEY OF THE FUND IN THE SAME MANNER AS OTHER STATE MONEY HELD BY 4
THE CENTER MAY BE INVESTED. 5
(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID IN TO 6
THE FUND. 7
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 8
PAID INTO THE FUND. 9
10–869. RESERVED. 10
10–870. RESERVED. 11
Article – State Finance and Procurement 12
6–226. 13
(a) (2) (i) This paragraph does not apply in fiscal years 2024 through 2028. 14
(ii) Notwithstanding any other provision of law, and unless 15
inconsistent with a federal law, grant agreement, or other federal requirement or with the 16
terms of a gift or settlement agreement, net interest on all State money allocated by the 17
State Treasurer under this section to special funds or accounts, and otherwise entitled to 18
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 19
Fund of the State. 20
(iii) The provisions of subparagraph (ii) of this paragraph do not 21
apply to the following funds: 22
212. the Department of Social and Economic Mobility Special 23
Fund; [and] 24
213. the Population Health Improvement Fund; AND 25
214. THE GREEN AND RENEWABLE ENERGY EFFICIENCY 26
FOR NONPROFITS LOAN FUND. 27
Article – State Government 28
9–20B–05. 29
(a) There is a Maryland Strategic Energy Investment Fund. 30
8 SENATE BILL 23
(f) The Administration shall use the Fund: 1
(13) notwithstanding subsection (g) of this section, to pay costs associated 2
with the Air and Radiation Administration within the Department of the Environment; 3
[and] 4
(14) TO PROVIDE FUNDS TO THE GREEN AND RENEWABLE ENERGY 5
EFFICIENCY FOR NONPROFITS LOAN FUND ESTABLISHED UNDER § 10–868 OF THE 6
ECONOMIC DEVELOPMENT ARTICLE; AND 7
[(14)] (15) to pay the expenses of the Program. 8
SECTION 3. AND BE IT FURTHER ENACTED, That, on or before July 1, 2027, the 9
Maryland Clean Energy Center shall: 10
(1) establish an app lication process for loans made under the Green and 11
Renewable Energy Efficiency for Nonprofits Loan Program in Title 10, Subtitle 8 of the 12
Economic Development Article, as enacted by Section 2 of this Act; 13
(2) set guidelines and considerations for appl ication, selection, and 14
repayment that include: 15
(i) nonprofit organizations that own, rather than rent, their 16
buildings; 17
(ii) property size and kilowatt–hours of energy used; 18
(iii) geographic diversity; 19
(iv) ethnic and racial diversity; 20
(v) economic diversity; 21
(vi) nonprofit organization mission diversity; 22
(vii) access to the borrower’s portion of the cost of the qualifying 23
energy system; and 24
(viii) process and frequency of loan repayment; and 25
(3) develop and implement an advertising campaign for the Green and 26
Renewable Energy Efficiency for Nonprofits Loan Program. 27
SECTION 4. AND BE IT FURTHER ENACTED, That Sections 1 and 2 of this Act 28
shall take effect July 1, 2027. 29
SENATE BILL 23 9
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 1
4 of this Act, this Act shall take effect July 1, 2026. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.