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SENATE BILL 223
M5 6lr0049
(PRE–FILED) CF HB 245
By: Chair, Education, Energy, and the Environment Committee (By Request –
Departmental – Maryland Energy Administration)
Requested: September 25, 2025
Introduced and read first time: January 14, 2026
Assigned to: Education, Energy, and the Environment
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2026
CHAPTER ______
AN ACT concerning 1
Maryland Energy Administration – Jane E. Lawton Conservation Loan Program 2
and Fund 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 Administration to adopt regulations to 6
implement the Program; requiring the Center to hold the Jane E. Lawton 7
Conservation Fund and invest and r einvest the money of the Fund; altering 8
reporting requirements for the Maryland Strategic Energy Investment Fund; and 9
generally relating to the Jane E. Lawton Conservation Loan Program , the Jane E. 10
Lawton Conservation Fund, and the Maryland Strategic Energy Investment Fund. 11
BY renumbering 12
Article – Economic Development 13
Section 10–862 and the part “Part VII. Short Title” 14
to be Section 10–874 and the part “Part VIII. Short Title” 15
Annotated Code of Maryland 16
(2024 Replacement Volume and 2025 Supplement) 17
BY transferring 18
Article – State Government 19
Section 9–20A–01 through 9 –20A–10 and the subtitle “Subtitle 20A. The Jane E. 20
Lawton Conservation Loan Program” 21
2 SENATE BILL 223
Annotated Code of Maryland 1
(2021 Replacement Volume and 2025 Supplement) 2
to be 3
Article – Economic Development 4
Section 10–862 through 10 –871 to be under the new part “Part VII. The Jane E. 5
Lawton Conservation Loan Program” 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
BY repealing and reenacting, without amendments, 9
Article – Economic Development 10
Section 10–801(a) and (f) 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Economic Development 15
Section 10–801(o) 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Economic Development 20
Section 10–862 through 10–871 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23
(As enacted by Section 2 of this Act) 24
BY repealing and reenacting, without amendments, 25
Article – State Government 26
Section 9–20B–01(a), (b), and (e) 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – State Government 31
Section 9–20B–12 32
Annotated Code of Maryland 33
(2021 Replacement Volume and 2025 Supplement) 34
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 35
That Section(s) 10 –862 and the part “Part VII. Short Title” of Article – Economic 36
Development of the Annotated Code of Maryland be renumbered to be Section(s) 10 –874 37
and the part “Part VIII. Short Title”. 38
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 9–20A–01 through 39
9–20A–10 and the subtitle “Subtitle 20A. The Jane E. Lawton Conservation Loan Program” 40
SENATE BILL 223 3
of Article – State Government of the Annotated Code of Maryland be transferred to be 1
Section(s) 10–862 through 10–871, respectively, and the part “Part VII. The Jane E. Lawton 2
Conservation Loan Program” of Article – Economic Development of the Annotated Code of 3
Maryland. 4
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 5
as follows: 6
Article – Economic Development 7
10–801. 8
(a) In this subtitle the following words have the meanings indicated. 9
(f) “Center” means the Maryland Clean Energy Center. 10
(o) [(1) “Project”] WITH RESPECT TO PARTS I THROUGH VI OF THIS 11
SUBTITLE: 12
(1) “PROJECT” means any property, the acquisition or improvement of 13
which the Board, in its sole discretion, determines by reso lution will accomplish at least 14
one of the purposes listed in § 10–802(b) of this subtitle, whether or not the property: 15
(i) is or will be used or operated for profit or not for profit; 16
(ii) is or will be located on a single site or multiple sites; or 17
(iii) may be financed by bonds, the interest on which is exempt from 18
income taxation under federal law[.]; AND 19
(2) [“Project”] “PROJECT” includes: 20
(i) land or an interest in land; 21
(ii) structures, equipment, furnishings, rail or motor ve hicles, 22
barges, and boats; 23
(iii) property and rights related to property, appurtenances, 24
rights–of–way, franchises, and easements; 25
(iv) property that is functionally related and subordinate to a project; 26
and 27
(v) patents, licenses, and other rights necessary or useful in the 28
improvement or operation of a project. 29
4 SENATE BILL 223
10–862. 1
(a) In this [subtitle] PART the following words have the meanings indicated. 2
(b) [“Administration” means the Maryland Energy Administration. 3
(c)] “Borrower” means an eligible State agency, local jurisdiction, nonprofit 4
organization, or eligible business that applies and qualifies for a loan under this Program. 5
[(d)] (C) “Eligible business” means a commercial enterprise or business that is 6
in good standing with the State Department of Assessments and Taxation and is: 7
(1) incorporated in the State; or 8
(2) registered to do business in the State. 9
[(e)] (D) “Energy cost savings” means the actual reduction in operating expenses 10
resulting from the installation, operation, and maintenance of a project financed under the 11
Program. 12
[(f)] (E) “Fund” means the Jane E. Lawton Conservation Fund. 13
[(g)] (F) (1) “Local jurisdiction” means any county or municipality of the 14
State. 15
(2) “Local jurisdiction” includes: 16
(i) a board of education of a county or municipality; 17
(ii) a special district that is established by State law and that 18
operates within a single county; 19
(iii) a special district that is established by a county under public 20
general law; and 21
(iv) an office, board, or department that is established in a county 22
under State law and that is funded, under State law, at least in part by the county 23
governing body. 24
[(h)] (G) “Municipality” means any municipal corporation in the State that is 25
subject to the provisions of Article XI –E of the Maryland Constitution or any duly 26
authorized agency or instrumentality of the municipality. 27
[(i)] (H) “Nonprofit organization” means a corporation, foundation, school, 28
hospital, or other legal entity, no part of the net earnings of which inure to the benefit of 29
any private shareholder or individual holding an interest in the entity. 30
SENATE BILL 223 5
[(j)] (I) “Program” means the Jane E. Lawton Conservation Loan Program. 1
[(k)] (J) “Project” means one or more improvements or modificatio ns that 2
enhance the energy efficiency and reduce the operating expenses of a structure located in 3
Maryland. 4
[(l) (1) “State agency” means any permanent or temporary State office, 5
department, division or unit, bureau, board, commission, task force, authority, institution, 6
State college or university, and any other unit of State government, whether executive, 7
legislative, or judicial. 8
(2) “State agency” includes any subunits of State government.] 9
10–863. 10
There is a Jane E. Lawton Conservation Loan P rogram in the [Administration] 11
CENTER. 12
10–864. 13
The purpose of the Program is to provide financial assistance in the form of low 14
interest and zero interest loans to nonprofit organizations, local jurisdictions, State 15
agencies, and eligible businesses for projects [in order] to: 16
(1) promote energy conservation; 17
(2) reduce consumption of fossil fuels; 18
(3) improve energy efficiency; 19
(4) enhance energy –related economic development and stability in the 20
nonprofit, commercial, and industrial sectors; and 21
(5) reduce greenhouse gas emissions. 22
10–865. 23
The [Administration] CENTER shall: 24
(1) manage, supervise, and administer the Program; 25
(2) [adopt regulations to ] ensure that loans are provided only to projects 26
that carry out the purpose of the Program; 27
6 SENATE BILL 223
(3) attach specific terms to any loan that are considered necessary to 1
ensure that the purpose of the Program is fulfilled; and 2
(4) develop procedures for mon itoring projects to assess whether the 3
improvements or modifications made by an eligible entity or business that had received a 4
loan under the Program have resulted in a measurable reduction in energy consumption. 5
10–866. 6
(a) (1) To receive a loan under the Program, a borrower must file an 7
application with the [Administration] CENTER. 8
(2) If the borrower is an eligible business, the application must be signed 9
by the chief operating officer or an authorized officer of the business. 10
(3) If the borrower is a local jurisdiction, the application must be signed by 11
the chief elected officer of the county or municipality, or if none, by the governing body of 12
the county or municipality in which the project is located. 13
(4) If the borrower is a public school, the application must be signed by the 14
board of education of the county in which the project is located. 15
(5) If the borrower is a State agency, the application must be signed by the 16
head of the State agency. 17
(b) The application shall contain any information the [Administration] CENTER 18
determines is necessary, including: 19
(1) the projected cost to accomplish a proposed project; 20
(2) the amount of energy or fuel a proposed project is expected to save over 21
a defined period of time after completion of the project; 22
(3) the anticipated environmental benefits in the form of reduced emissions 23
or pollution attributable to the proposed project; 24
(4) the amount of cost savings expected to be generated over a defined 25
period of time after completion of the proposed project; 26
(5) a description of the borrower’s contribution to a proposed project as 27
required by [§ 9–20A–06] § 10–867 of this subtitle; and 28
(6) any additional information relating to the borrower or the proposed 29
project that may be required by the [Administration] CENTER in order to administer the 30
Program. 31
10–867. 32
SENATE BILL 223 7
(a) Loans from the Fund may be used for: 1
(1) the costs of implementing projects, including the costs of all necessary: 2
(i) technical assessments; 3
(ii) studies; 4
(iii) surveys; 5
(iv) plans and specifications; and 6
(v) start–up, architectural, engineering, or other special services; 7
(2) the costs of procuring necessary technology, equipment, licenses, or 8
materials; and 9
(3) the costs of construction, rehabilitation, or modification, including the 10
purchase and installation of any necessary machinery, equipment, or furnishings. 11
(b) Each borrower shall make a contribution to a project that is of a type and 12
amount acceptable to the [Administration] CENTER. 13
(c) A borrower other than a State agency must document that the anticipated 14
energy cost savings to the borrower over a defined period according to a methodology 15
acceptable to the [Administration] CENTER after the completion of the project are greater 16
than the total cost of the project to the borrower. 17
(d) Loans made under the Program to a borrower other than a State agency shall: 18
(1) be repayable by the borrower from specified revenues that may include 19
the energy cost savings generated by a project; 20
(2) bear interest at a rate that the [Administration] CENTER determines 21
to be necessary and reasonable for the project; and 22
(3) be repayable in accordance with a schedule that the [Administration] 23
CENTER sets, which may be on a deferred payment basis. 24
(e) (1) A borrower other than a State agency shall provide assurances for the 25
repayment of a loan. 26
(2) The assurances: 27
(i) shall include a promissory note; and 28
8 SENATE BILL 223
(ii) may include superior or subordinate mortgage liens, guarantees 1
of repayment, or other forms of collateral. 2
(f) Loans may be made in conjunction with, or in addition to, financial assistance 3
provided through other State or federal programs. 4
10–868. 5
(a) There is a Jane E. Lawton Conservation Fund. 6
(b) The [Administration] CENTER shall administer the Fund. 7
(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 8
the State Finance and Procurement Article. 9
(2) The State Treasurer CENTER shall hold the Fund and the Comptroller 10
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 received from any public or private source; 14
(3) interest and investment earnings on the Fund; and 15
(4) repayments and prepayments of principal and interest on loans made 16
from the Fund. 17
(e) The Fund may be used only: 18
(1) to pay the expenses of the Program; 19
(2) to provide loans to eligible borrowers and projects; and 20
(3) to enhance the credit of a financing offered by eligible banks and other 21
financial institutions for projects. 22
(f) (1) The State Treasurer CENTER shall invest and reinvest the money of 23
the Fund in the same manner as other State money MONEY HELD BY THE CENTER may 24
be invested. 25
(2) Any investment earnings of the Fund shall be paid into the Fund. 26
(3) Any repayment of principal and interest on loans made from the Fund 27
shall be paid into the Fund. 28
SENATE BILL 223 9
(g) (1) The [Administration] CENTER shall annually reserve for at least 90 1
days a portion of the money from the Fund that is available for financial assistance under 2
the Program for loans to nonprofit organizations. 3
(2) In a fiscal year in which requests for financial assistance from nonprofit 4
organizations are less than the amount of money reserved under paragraph (1) of this 5
subsection for the period determined by the [Administration] CENTER, the 6
[Administration] CENTER may make the unencumbered or noncommitted portion of the 7
reserve available to other borrowers in the Program. 8
10–869. 9
The [Administration] CENTER may enter into contracts with third parties to make, 10
service, or settle loans made under this [subtitle] PART. 11
10–870. 12
(a) The [Administration] CENTER may use the Fund to enhance the credit of a 13
financing offered by a bank or other financial institution for a project. 14
(b) A credit enhancement issued in accordance with subsection (a) of this section 15
shall: 16
(1) carry out the purpose of the Program in a manner the [Administration] 17
CENTER considers appropriate; 18
(2) facilitate financing of at least one project of a local jurisdiction, 19
nonprofit organization, or eligible business; and 20
(3) be offered only to a bank or other financial institution in good standing 21
with the State Department of Assessments and Taxation that is: 22
(i) incorporated in the State; or 23
(ii) registered to do business in the State. 24
(c) The [Administration] CENTER may assess a reasonable fee to a participating 25
bank or financial institution for the administration of this section. 26
[(d) The Administration shall adopt regulations to carry out this section.] 27
10–871. 28
(a) A person may not knowingly make or cause to be made any false statement or 29
report in any document required to be furnished to the [Administration] CENTER by any 30
agreement relating to financial assistance. 31
10 SENATE BILL 223
(b) A person applying for financial assistance may not knowingly make or cause 1
to be made any false statement for the purpose of influencing any action of the 2
[Administration] CENTER on an application for finan cial assistance or for the purpose of 3
influencing any action of the [Administration] CENTER affecting financial assistance 4
already provided. 5
(c) A person who violates this section is guilty of a misdemeanor and on conviction 6
is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both. 7
10–872. RESERVED. 8
10–873. RESERVED. 9
Article – State Government 10
9–20B–01. 11
(a) In this subtitle the following words have the meanings indicated. 12
(b) “Administration” means the Maryland Energy Administration. 13
(e) “Fund” means the Maryland Strategic Energy Investment Fund. 14
9–20B–12. 15
(a) On or before January 1 each year, the Administration shall report to the 16
Governor, to the Board, and, in accordance with § 2 –1257 of this article, to the General 17
Assembly and the members of the Senate Finance Committee and the House Economic 18
Matters Committee on the uses and expenditures of the Fund from the prior fiscal year. 19
(b) The report shall include: 20
(1) a detailed accounting of all amounts IN EXCESS OF $10,000 received 21
by and disbursed from the Fund, including the amount and recipient of each grant awarded 22
by the Administration[, and identifying multiple grants awarded to the same person or the 23
same address]; 24
(2) all amounts used by the Administration for administrative purposes, 25
including the funding source from which each amount was obtained; 26
(3) programs, projects, and activities included in each category under § 27
9–20B–05(g) of this subtitle; 28
(4) the status of programs, projects , activities, and investments 29
implemented with funds from the Fund, including an evaluation of the impact of the 30
SENATE BILL 223 11
programs, projects, activities, and investments that are directed to low –income or 1
moderate–income residential sectors or to other particular classes of ratepayers; 2
(5) an estimate of [electricity savings ] GREENHOUSE GAS EMISS IONS 3
REDUCTIONS from the programs, projects, activities, and investments; 4
(6) the number of allowances sold in each auction; 5
(7) the average allowance price from each auction; 6
(8) an estimate of revenue from future auctions; 7
(9) an accounting of all amounts received or disbursed by the Fund from 8
all other sources, including money received in accordance with orders issued and settlement 9
agreements approved by the Public Service Commission; 10
(10) recommendations for changes to the allocation of funds under § 11
9–20B–05(g) of this subtitle; 12
(11) the status of programs and expenditures in the current fiscal year; and 13
(12) possible or expected program initiatives and changes in later years. 14
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
1, 2026. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.