AGENDA ITEM #4A
April 21, 2015
Introduction
MEMORANDUM
April 17,2015
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative
Attorney~cMvi~
Introduction:
Bill 18-15, Environmental Sustainability - Montgomery County
Green Bank
Bill 18-15, Environmental Sustainability - Montgomery County Green Bank, sponsored by Lead
Sponsor Councilmember Berliner and Co-Sponsors Councilmembers Leventhal, Hucker, Riemer,
EIrich, Rice, and Navarro is scheduled to be introduced on April 21, 2015. A public hearing is
tentatively scheduled for June 9 at 1:30 p.m.
Bill 18-15 would:
(1)
authorize County government to designate a County Green Bank to promote the
investment in clean energy technologies;
(2) specify the process to designate a nonprofit corporation to function as the Green Bank;
(3) define the nature and powers of the Green Bank;
(4) establish a Green Bank Work Group to review the application of Chapter 18A, Article
7 and make recommendations regarding the implementation of the Montgomery
County Green Bank; and
(5) generally amend the environmental sustainability law.
This packet contains:
Bill 18-15
Legislative Request Report
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Bill No.
18-15
Conceming: Environmental Sustainability
- Montgomery County Green Bank
Revised: 4/16/2015
Draft No. _3_
Introduced:
April 21. 2015
Enacted:
October 21, 2015
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ---=-:.No=n..:..::e'--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Berliner
Co-Sponsors: Councilmembers, Leventhal, Hucker, Riemer, Eirich, Rice, and Navarro
AN
ACT to:
(1) authorize County government to designate a County Green Bank to promote the
investment
in
clean energy technologies;
(2) specify the process to designate a nonprofit corporation to function as the Green Bank;
(3) define the nature and powers of the Green Bank;
(4) establish a Green Bank Work Group to review the application of Chapter 18A, Article 7
and make recommendations regarding the implementation of the Montgomery County
Green Bank; and
(5) generally amend the environmental sustainability law.
By adding
Montgomery County Code
Chapter 18A, Environmental Sustainability
Article 7
Sections 18A-44, 18A-45, 18A-46, 18A-47, 18A-48, 18A-49, and 18A-50
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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Bill No. 18-15
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Sec.
1.
Article 7 (Sections 18A-44, 18A-45, 18A-46, 18A-47, 18A-48, 18A-49,
and 18A-50) is added as follows:
Article 7. Montgomery County Green Bank.
18A-44. Purpose.
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The County Government should support the formation of
~
Montgomery
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County Green Bank to promote the investment in clean energy technologies in the
County. The Green Bank must be able to:
fu}
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develop separate programs to support clean energy investment in
residential, municipal, small business, and larger commercial projects;
(hl
fInance investment in clean energy technologies in accordance with
~
comprehensive plan developed
Qy
it to foster the growth. development,
and commercialization of renewable energy sources and related
enterprises;
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stimulate the demand for clean energy and the deployment of clean
energy technologies that serve end-use customers;
@
before making an loan, loan guarantee, or other form offInancing support
for clean energy technologies, develop rules, policies, and procedures to
specify borrower eligibility and any other term or condition of fInancial
support;
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.uti .
provide fInancing for clean energy technologies;
ill
provide
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resolution for the issuance of negotiable
fInance clean energy technologies;
(g)
revenue bonds to
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assess reasonable fees on its fInancing activities to cover its reasonable
costs and expenses, as determined
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the Board of Directors appointed
under Section 18A-47;
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make information regarding rates, terms, and conditions for all of its
fInancing support transactions available to the public for inspection,
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BILL
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including fonnal annual reviews by both
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private auditor and the
Director of Finance, and provide details to the public on the Internet
unless such disclosure includes
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trade secret, confidential commercial
information, or confidential fmancial information;
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provide leadership on environmental issues at both the County and State
levels;
maintain close
liaison with government agenCIes
and elected
representatives at both the County and State levels to achieve the goals of
the Green Bank; and
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undertake any other activities deemed by the Board of Directors to
support the mission ofthe Green Bank.
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18A-45. Definitions.
In this Article, the following words have the meanings indicated:
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Clean energy technologies
means energy resources and emerging technologies
that have significant potential for commercialization and do not involve the
combustion of coal, petroleum or petroleum products, municipal solid waste, or
nuclear fission.
Clean energy technologies
includes renewable energy sources,
renewable energy projects, energy efficiency projects, alternative fuels used for
electricity generation, alternative fuel vehicles and related infrastructure such as
electric vehicle charging station infrastructure, and smart gllih
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Energy efJiciencyproject
means
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permanent improvement made to an existing
single-family home that:
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reduces the consumption of energy in the home, including:
CA)
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caulking and weatherstripping doors and windows;
heating and cooling system efficiency modifications, including:
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replacing
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burner, furnace, heat pump, or boiler, or air
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conditioner with
~
high efficiency model;
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BILL No. 18·15
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Cii)
installing a device to modify flue openings that increases the
energy efficiency or the heating system;
(iii)
any electrical or mechanical furnace ignition system which
replaces
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standing gas pilot; and
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(iv)
any tune-up that increases the operating efficiency;
thennostat;
(Q
(D)
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programmable
ceiling, attic, wall, or floor insulation;
whole house air sealing;
water heater tune-up, water heater insulation,
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lID
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CG)
insulation, or
change out to an ENERGY STAR qualified water heater;
stonn windows or doors or ENERGY STAR qualified window or
door replacement;
an
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air distribution system improvements, including duct insulation
and air sealing;
any device which controls demand of appliances and aids load
management; and
any other conservation device, renewable energy technology, and
specific home improvement that reduces the consumption of
energy in the home; and
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meets safety and perfonnance standards set
l::!y
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nationally recognized
testing laboratory for that kind of device, if these standards are available.
Energy efficiency project
does not include
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standard household appliance, such
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as
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washing machine or clothes dryer.
Green Bank
means the Green Bank that the County has designated to promote
the investment in clean energy technologies and provide financing for clean
energy technologies, including renewable energy and energy efficiency
projects.
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No. 18-15
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Maryland Open Meetings Act
means the Maryland
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Meetings Act, codified
at Sections 3-101 through 3-501 of the General Provisions Article of the
Maryland Code.
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Renewable energypro;ect
means g project that:
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creates, converts, stores, or actively uses renewable energy;
is permanently installed on the home or property; and
meets safety and performance standards set
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g nationally recognized
testing laboratory for that kind ofdevice, ifthese standards are available.
Renewable energy source
means g source of energy that naturally replenishes
over g human, not g geological, time frame and that is ultimately derived from
solar power, water power, or wind power.
Renewable energy source
does not
include petroleum, nuclear, natural gas, or coal. A
renewable energy source
comes from the sun or from thermal inertia ofthe earth and minimizes the output
oftoxic material in the conversion ofthe energy and includes:
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non-hazardous, organic biomass material;
solar electric and solar thermal energy;
wind energy;
geothermal energy; and
methane gas captured from
g
landfill.
18A-46. Designation.
W
The County Council must designate,
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resolution approved
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the
County Executive, g single nonprofit corporation which complies with all
requirements and criteria of this Article as the County's Green Bank. If
the Executive disapproves the resolution within 10 days after receiving
®
it
the Council may readopt the resolution with at least
Qaffirmative
votes.
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Except as provided in (b)(2), any designation under this Section
expires at the end of the fifth full fiscal year after the resolution is
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BILL No. 18-15
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adopted unless the Council extends the designation
by
adopting
another resolution under this Section.
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Ifthe Council President does not notify the Chair ofthe designated
Bank's Board ofDirectors, not later than June 30 ofthe fourth full
fiscal year ofthe. designation tenn, that the Council may allow the
current designation to expire, the designation is automatically
extended for another 5-year tenn.
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The Council at any time may suspend or revoke the designation of
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corporation as the County's Green Bank
by
resolution, adopted after at
least 15 days public notice, that is approved
by
the Executive,
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if the
Executive disapproves the resolution within 10 days after receiving!h is
readopted
by
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vote of at least
Q
Councilmembers.
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To continue to qualify as the County's Green Bank,
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corporation's
articles of incorporation and bylaws must comply with all requirements
ofthis Article.
18A-47. Board
of Directors.
(ill
To qualify as the County's Green Bank,
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corporation's Board of
Directors must have no more than
11
voting members. The corporation's
bylaws should also allow the Directors of Environmental Protection and
Finance to serve as ex-officio non-voting members along with any other
nonvoting members authorized under the bylaws.
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Each voting member should be
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resident of the County. The members
of the Board of Directors should include:
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representatives of residential or low-income groups;
representatives of environmental organizations;
representatives of business organizations;
persons with experience in investment fund management;
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(Q)
persons with banking and lending experience;
persons with experience in the fmance or deployment ofrenewable
energy; and
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(£l
persons with expenence m research and development or
manufacturing of clean energy.
A member must not be paid for service on the Board but may be
reimbursed for necessary travel expenses.
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A member is not subject to Chapter 19A because ofserving on the Board.
The Bank's bylaws must include provisions defining and regulating
conflicts of interest
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Board members and Bank staff.
(£!
Notwithstanding any inconsistent provision of Section 19A-21,
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member of the Board of Directors who engages in legislative or
administrative advocacy as part of that member's duties on the Board is
not required to register as
because ofthat advocacy.
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lobbyist under Article V of Chapter 19A
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The Board must direct the program, management, and finances of the
corporation.
18A-48. Status; incorporation; bylaws.
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To Qualify as the County's Green Bank,
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corporation's articles of
incorporation must provide that the corporation is:
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tax-exempt
nonprofit corporation;
not an instrumentality of the County; and
incorporated for the sole purpose of serving as the County's Green
Bank.
The Green Bank's bylaws may contain any provision, not inconsistent
with law or the articles ofincorporation, necessary to govern and manage
the Bank. The Green Bank may exercise all powers and is subject to all
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requirements under the Financial Institutions Article of the Maryland
Code.
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The Board must adopt and may amend the Green Bank's bylaws. The
Board must submit any proposed amendment to the articles of
incorporation or bylaws to the Executive and Council for review and
comment at least 60 days before the Board takes final action on the
amendment. The Board must submit
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fQPY
of each adopted amendment
to the Executive and Council within
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days after adoption.
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The bylaws must require the Green Bank to comply with the Maryland
Open Meetings Act and provide that all meetings of the Board of
Directors must be open to the public except when closed on
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recorded
vote of the Board for
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reason expressly listed in the state law.
18A-49. Work program; staff; support from County Government.
.ill)
The Board ofDirectors must adopt
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work program each year to advance
the policy objectives and perform the activities listed in Section 18A-44.
(hl
The Green Bank's work program may include
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plan for sponsorship of
private investment, marketing, and advocacy initiatives.
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The Board must meet with the Executive and the Council at least semi­
annually.
The Department of Environmental Protection should, if the Board of
Directors requests, provide administrative support for the Green Bank,
including contracts, grants, or services in kind, subject to appropriation.
Funding sources for the Green Bank may include:
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federal, State, or County funds provided to
it
charitable gifts, grants, or contributions and loans from
individuals,
corporations,
university
endowments,
and
philanthropic foundations; and
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earnings and interest derived from fmancing support activities for
clean energy technologies backed
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the Green Bank.
The Green Bank may also raise private funds and may accept services
from any source consistent with its purpose.
18A-50. Report
The Board of Directors must report annually on the activities and finances of
the Green Bank to the Executive and Council.
Sec. 2.
Green Bank Work Group.
(a)
The Executive must convene a Green Bank Work Group. Members of
the Work Group must include representatives from the County
departments of Environmental Protection, Finance, and Economic
Development; investment and financing industry, such as regional and
national banks, property trusts, and other lending institutions or
companies; building owners and managers; industry trade associations;
nonprofit organizations; and utility companies.
(b)
The Work Group must:
(1)
review the application of Chapter 18A, Article 7, as added by
Section I of this Act, in the context of relevant best practices and
local needs; and
(2)
submit a report to the County Council and County Executive by [1
year from date of enactment] with recommendations on
implementing Chapter 18A, Article 7, including any proposed
amendments to County Law.
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LEGISLATIVE REQUEST REPORT
Bill 18-15
Environmental Sustainability
-
Montgomery County Green Bank
DESCRIPTION:
Bill
18-15
would authorize County government to designate a County
Green Bank to promote the investment in clean energy technologies;
specify the process to designate a nonprofit corporation to function as
the Green Bank; defme the nature and powers of the Green Bank;
establish a Green Bank Work Group to review the application of
Chapter
18A,
Article 7 and make recommendations regarding the
implementation of the Montgomery County Green Bank; and
generally amend the environmental sustainability law
Investing in clean energy technologies can be a cost-effective way to
reduce greenhouse gas emissions. However, the lack of accessible
financing options is a barrier to many property owners and may
prevent them from making these energy efficiency improvements
To establish a program to provide property owners
with
a financing
option to invest in clean energy technologies.
Departments of Finance and Environmental Protection
To be requested.
To be requested.
To be requested.
To be researched.
Amanda Mihill, Legislative Attorney,
240-777-7815
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
®