Bill No.
18-15
Concerning: Environmental Sustainabilitv
- Montgomery County Green Bank
Revised:
6/30/2015
Draft No.__§___
Introduced:
April
21. 2015
Enacted:
June
30. 2015
Executive:
July 7,
2015
Effective:
October
6. 2015
Sunset Date: _N:....:.o=n=e'---------
Ch.
2§.__,
Laws of Mont. Co.
2015
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Berliner
Co-Sponsors: Council President Leventhal and Councilmembers Rucker, Riemer, Eirich, Rice,
Navarro and Katz
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 l 8A, 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.
Deleted.from existing law by original bill.
Added by amendment.
Deleted.from existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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No. 18-15
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Sec.1. Article 7(Sections18A-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
County Green Bank to promote the investment in clean energy technologies in the
County. The Green Bank must be able to:
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[[W)
develop separate programs to support clean energy investment in
residential, municipal, small business, and larger commercial projects;
1O
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Qi}
fmance investment in clean energy technologies in accordance with
~
comprehensive plan developed
J2y
it to foster the growth, development,
and commercialization of renewable energy sources and related
enterprises;]]
(ru
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serve and support the deployment of clean energy technologies in any
sector. including residential single family homes and multifamily.
commercial. industrial. non-profit. municipal governments. universities
and colleges. schools. and hospitals;
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(bl
offer a range of financing structures. forms and techniques. such as senior
loans. subordinate loans. credit enhancements. guarantees. warehousing.
securitization. and other techniques that can both lower the cost of
fmancing and increase private investment in clean energy technologies:
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,(£)
leverage private investment in energy projects through financing
mechanisms that support. enhance. or complement private investment
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,Ull
consider the inclusion of any non-energy or supporting improvements
ancillarv to the primary energy efficiency or renewable energy project.
up to a stated limit in scope or amount. in each program or mechanisms
it offers:
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No.
18-15
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W
accept capital from the county. the state. the federal government. from
non-profits. from foundations. and any other capital source that the Green
Bank governance deems to be attractive and useful:
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ill
recapitalize its funds by selling assets (loans) through private placement
or other securitization:
[[{£)]]
(g)
stimulate the demand for clean energy and the deployment of clean
energy technologies that serve end-use customers;
[[@]]
(h1
before making
[[ill!]]~
loan, loan guarantee, or other form of financing
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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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[[W
provide financing for clean energy technologies;]]
[[ill]]
ill
provide
.by
resolution for the issuance of [[negotiable]] revenue bonds
to finance clean energy technologies;
fil
ill
provide information regarding best practices for overseemg energy
proiects and other appropriate consumer protection information:
recognize that equity investments carrv more risk and may require longer
term commitment to a project. justifying compliance with strict
investment guidelines to be established by the Board of Directors:
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[[{g}]]
ill
assess reasonable fees on its financing activities to cover its reasonable
costs and expenses, as determined
.Qy
the Board of Directors appointed
under Section 18A-47;
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50
[[.Qi}]]
(m) make information regarding rates, terms, and conditions for all of its
financing support transactions available to the public for inspection,
including formal annual reviews
Qy
both
~
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private auditor and the
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Director of Finance, and provide details to the public on the Internet
unless such disclosure includes
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~
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trade secret, confidential commercial
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information, or confidential financial information;
[[ill]]
,(nl
provide leadership on environmental issues at both the County and
State levels;
[[ill]]
(Q)
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
[[.{k}]]
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undertake any other activities deemed hy the Board of Directors
to
support the mission of the Green Bank.
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18A-45. Definitions.
In this Article, the following words have the meanings indicated:
Clean energy technologi,es
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
grill
and battery
storage.
Energy efficiency project
means
~permanent
improvement made to an existing
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[[single-family home]] propertv that[[;]] reduces consumption of energy.
[[ill
reduces the consumption of energy in the home, including:
(A)
(ill
caulking and weatherstripping doors and windows;
heating and cooling system efficiency modifications, including:
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ill
(ii)
replacing
~
burner, furnace, heat pump, or boiler, or air
conditioner with
~
high
efficiency model;
installing a device to modify flue openings that increases the
energy efficiency or the heating system;
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No. 18-15
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(iii)
any electrical or mechanical furnace ignition system which
replaces
~
standing gas pilot; and
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(iv)
.{Q
any tune-up that increases the operating efficiency;
thermostat;
~
programmable
(D)
ceiling, attic, wall, or floor insulation;
whole house air sealing;
water heater tune-up, water heater
insulation,~
.(fil
(E)
insulation, or
change out to an ENERGY STAR qualified water heater;
(G)
storm windows or doors or ENERGY STAR qualified window or
door replacement;
(H)
air distribution system improvements, including duct insulation
and air sealing;
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any device which controls demand of appliances and aids load
management; [and]
ill
any other conservation device, renewable energy technology, and
specific home improvement that reduces the consumption of
energy in the home; and
ill
meets safety and performance standards set
.Qy
~
nationally recognized
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testing laboratory for that kind of device, if these standards are
available.]]
[[Energy effeciency project
does not include
such
as~
washing machine or clothes dryer.]]
~
standard household appliance,
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Energy efficiency and/or renewable energy improvement
or
improvement
means
any equipment. device. or material that:
ill
meets safety and performance standards set by a nationally recognized
testing laboratory for that kind of device. if these standards are available.
and
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(2)
is intended to decrease energy consumption or expand use of renewable
energy sources. including:
(A)
heating. ventilation. and cooling · and distribution system
[[efficiency
modifications.
including]]
modification
or
replacement. such as:
ill
replacing existing equipment [[a burner. furnace. heat
pump. or boiler. or air conditioner]] with a high efficiency
model;
(ii)
installing a device or retrofit to existing equipment that
increase energy efficiency and conservation [[to modify flue
openings that increases the energy efficiency or the heating
system]]~
(iii)
any electrical or mechanical furnace ignition system which
replaces a standing gas pilot: .
(iv)
any tune-up or maintenance activity that mcreases the
operating efficiency;
an
LQ
(D)
(El
a programmable thermostat:
ceiling. attic. wall. roof. foundation. or floor insulation;
whole house air sealing;
water heater tune-up. water heater insulation. pipe insulation. or
change out to an ENERGY STAR qualified water heater;
!El
(G)
storm windows or doors or ENERGY STAR-qualified window or
door replacement:
caulking and weather-stripping doors and windows;
air distribution system improvements. including duct insulation
and air sealing;
an
ill
any device or energy management system which controls demand
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of appliances or equipment and aides load management manually.
remotely. and/or automatically:
ID
(IQ
(L)
a measure that reduces the usage of water or mcreases the
efficiency of water usage:
an energy recovery system:
electric vehicle infrastructure. such as installation of electric
vehicle charging station(s) and any necessarv installation or
upgrades to electrical wiring or outlets:
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(M)
commercial-scale lighting upgrades or daylighting system:
any measure or system that makes use of or expands a renewable
source of energy. including solar thermal and solar electric. wind
turbine. biomass. hydroelectric. geothermal electric. geothermal
heat pumps. anaerobic digestion. tidal or wave produced energy.
fuel cells using renewable fuels and geothermal direct-use: or
W)
!Ql
any other installation or modification of equipment. device.
infrastructure. structure. or other material necessarv to:
ill
(ii)
install. operate. or maintain the improvement being
installed; or
resolve any structural. mechanical. electrical. or other issue
that directly jeopardizes the
~ell-being
or safety of the
building occupants. quality of the indoor environment. or
the durability or longevity of the structure on which the
project is being installed.
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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Maryland
Qi:m1.
Meetings Act
means the Maryland
Qmm
Meetings Act, codified
at Sections 3-101 through 3-501 of the General Provisions Article of the
Maryland Code.
Renewable energyproject
means~
[[project]] permanent improvement made to
an existing property that[[;.
ill]]
ill
ill
creates, converts, stores, or actively uses renewable energy[[;
is permanently installed on the home or property; and
meets safety and performance standards set
.Qy
~
nationally recognized
testing laboratory for that kind of device, if these standards are
available]].!
Renewable energy source
means
~
source of energy that naturally replenishes
over~
human,
not~
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
~
or coal. A
renewable energy source
comes from the sun or from thermal inertia of the earth and minimizes the output
of toxic material in the conversion of the energy and includes:
ill
ill
ill
(1)
non-hazardous, organic biomass material;
solar electric and solar thermal energy;
wind energy;
geothermal energy; and
methane gas captured from
~
landfill.
ill
.{fil
18A-46. Designation.
The County Council must designate,
.Qy
resolution approved
.Qy
the
County Executive,
~
single nonprofit corporation which complies with all
requirements and criteria of this Article as
t~e
County's Green Bank. If
the Executive disapproves the resolution within 10 days after receiving
ib
the Council may readopt the resolution with at least
.Q
affirmative votes.
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.(hl
ill
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
adopted unless the Council extends the designation
Qy
adopting
another resolution under this Section.
ill
If the Council President does not notify the Chair of the designated
Bank's Board of Directors, not later than June 30 of the fourth full
fiscal year of the designation term, that the Council may allow the
current designation to expire, the designation is automatically
extended for another 5-year term.
.(£)
The Council at any time may suspend or revoke the designation of
~
corporation as the County's Green Bank
Qy
resolution, adopted after at
least
_li
days public notice, that is approved
Qy
the Executive,
Qr,.
if the
Executive disapproves the resolution within 10 days after receiving
it
is
readopted
Qy
~
vote of at least
§
Councilmembers.
@
To continue to qualify as the County's Green Bank,
~
corporation's
articles of incorporation and bylaws must comply with all requirements
of this Article.
18A-47. Board of Directors.
(fil
To qualify as the County's Green Bank,
Directors must have no more than
~
corporation's Board of
[[The
11
voting members.
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.]] The
comoration's bylaws should specify that the County Executive may
appoint up to 5 board members. including the Directors of Environmental
Protection and Finance. subject to confirmation by the County Council.
.(hl
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Each voting member should
be~
resident of the County. The members
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~
of the Board of Directors should include:
ill
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ffi
ill
®
representatives of residential
[[m:]]
and low-income groups;
representatives of environmental organizations;
representatives of business organizations;
persons with experience in investment fund management;
persons with banking and lending experience;
persons with experience in the finance or deployment of renewable
energy; [[and]]
ru
Lal
(2l
persons with experience
In
research and development or
manufacturing of clean energy;
the Director of the Montgomerv County Department of
Environmental Protection or the Director's designee; and
the Director of the Montgomery County Department of Finance or
the Director's designee.
~
A member must not be paid for service on the Board but may be
reimbursed for necessary travel expenses.
@
A member is not subject to Chapter 19A because of serving on the Board.
The Bank's bylaws must include provisions defming and regulating
conflicts of interest by Board members and Bank staff.
Notwithstanding any inconsistent provision of Section 19A-2l,
_g
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
_g
lobbyist under Article V of Chapter 19A
because of that advocacy.
ill
W
The Board must direct the program, management, and finances of the
corporation.
The Bank's bylaws must provide that. upon dissolution of the Green
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Bank. all assets must be transferred within 30 days from dissolution to
either its successor Green Bank as authorized by Resolution or to the
County for use permitted by the Green Bank legislation.
18A-48. Status; incorporation; bylaws.
.{fil
To qualify as the County's Green Bank,
~
corporation's articles of
incorporation must provide that the corporation is:
ill
ill
ill
.Qi}
~tax-exempt
nonprofit
corporation;
~d
not an instrumentality of the County;
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 of incorporation, necessary to govern and manage
the Bank. The Green Bank may exercise all powers and is subject to all
[[requirements under]] applicable provisions of the Financial Institutions
Article of the Maryland Code.
(£}
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~
£QPY
·of each adopted amendment
to the Executive and Council within
~
days after adoption.
@
The bylaws must require the Green Bank to comply with the Maryland
~
Meetings Act and provide that all meetings of the Board of
Directors must be open to the public except when closed on
~
recorded
vote of the Board
for~
reason expressly listed in the state law.
18A-49. Work program; staff; support from County Government.
.{fil
The Board of Directors must
adopt~
work program each year to advance
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~
the policy objectives and perform the activities listed in Section 18A-44.
(Q)
The Green Bank's work program may include
f!
plan for sponsorship of
private investment, marketing, and advocacy initiatives.
.(£}
The Board must meet with the Executive and the Council at least semi-
annually.
@
The Department of Environmental Protection [[should]] may, if the
Board of Directors requests, provide incidental administrative support for
the Green Bank, including contracts, grants, or services in kind, subject
to appropriation.
Funding sources for the Green Bank may include:
ill
ill
federal, State, or County funds provided to
it.
charitable gifts, grants, or contributions and loans from
individuals,
corporations,
university
endowments,
and
philanthropic foundations; and
ill
earnings and interest derived from financing support activities for
clean energy technologies backed
.hy
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
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companies; energy services companies; building owners and managers;
industry trade associations; environmental organizations; nonprofit
organizations; and utility companies.
(b)
The Work Group must:
(
1)
review the application of Chapter 18A, Article 7,
as
added by
Section 1 of this Act, in the context of relevant best practices and
local needs; and
(2)
submit a report to the County
Counc~l
and County Executive by
June 30, 2016 with recommendations on implementing Chapter
18A, Article
7,
including any proposed amendments to County
Law.
Approved:
310
George Leventhal, President, County Council
311
Date
Approved:
312
Isi
313
This is a correct copy ofCouncil action.
314
Date
315
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