Agenda Item 8A
August 2,2016
Action
MEMORANDUM
July 29, 2016
TO:
FROM:
SUBJECT:
County Council
Amanda Mihill, Legislative Attorney
G~1Y~~W
Action:
Bill 26-16, Environmental Sustainability - Montgomery County Green
Bank - Amendments
Transportation, Infrastructure, Energy
&
Environment Committee recommendation
(2-0):
enact Bill 26-16.
Bill 26-16, Environmental Sustainability - Montgomery County Green Bank - Amendments,
sponsored by Lead Sponsor Council President Floreen at the request of the County Executive, was
introduced on June 21, 2016. A public hearing was held on July 12; a representative from the
Executive was the only speaker (©41). A Transportation, Infrastructure, Energy
&
Environment
Committee worksession was held on July 21.
Bill 26-16 would clarify the effect of Green Bank designation on certain activities that may
continue or mature after the designation expires and also revise the recommended composition of
the Board of Directors.
The Transportation, Infrastructure, Energy
&
Environment
Committee (2-0, Councilmember Hucker absent) recommended enactment
of Bill 26-16.
This packet contains:
Bill 26-16
Legislati ve Request Report
County Executive Memo
Fiscal and Economic Impact statement
Green Bank Work Group Report
Executive testimony
Circle #
1
5
6
7
10
41
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Bill No.
26-16
Concerning: Environmental Sustainabilitv
- Montgomery County Green Bank ­
Amendments
Revised:
6/16/2016
Draft No. 1
Introduced:
June 21. 2016
Enacted:
December 21.2018
Executive: _ _ _ _ _ _ _ __
Effective: _ _.,---_ _ _ _ _ __
Sunset Date: _N'-'-o=n:'-"e'-:----::---_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request of the County Executive
AN
ACT to:
(1)
clarify the effect of Green Bank designation on certain activities that may continue or
mature after the designation expires;
(2) revise the recommended composition ofthe Board of Directors; and
(3) generally amend County law regarding environmental sustainability.
By amending
Montgomery County Code
Chapter 18A, Environmental Sustainability
Sections 18A-46 and 18A-47
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. 26-16
1
Sec. 1. Sections 18A-46 and 18A-47 are amended as follows:
18A-46. Designation.
(
a)
2
3
4
The County Council must designate, by resolution approved by the
County Executive, a 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 6 affirmative votes.
5
6
7
8
(b)
(1)
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 by adopting
another resolution under this Section.
9
10
11
12
13
14
15
16
17
18
19
(2)
Ifthe Council President does not notify the Chair ofthe designated
Bank's Board of Directors, not later than June 30 ofthe fourth full
fiscal year ofthe designation term, that the Council may allow the
current designation to expire, the designation is automatically
extended for another 5-year term.
(c)
The Council at any time may suspend or revoke the designation of a
corporation as the County's Green Bank by resolution, adopted after at
least 15 days public notice, that is approved by the Executive, or, if the
Executive disapproves the resolution within 10 days after receiving it, is
readopted by a vote of at least 6 Councilmembers.
20
21
22
23
24
(d) To continue to qualify as the County's Green Bank, a corporation's
articles of incorporation and bylaws must comply with all requirements
of this Article.
25
26
ill
This Section may not be construed to prevent the corporation designated
as the County's Green Bank from:
27
ill
undertaking, during its designation, the following activities that
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BILL No. 26-16
28
29
30
31
32
33
34
35
36
37
38
39
may mature after the designation expires:
(A)
assuming liability as guarantor, endorser, or acceptor of
obligations; and
all
ill
issuing for purchase its notes, debentures, bonds, or other
obligations; or
continuing as
~
corporation and exercising any ofits functions after
expiration of its designation for purposes of orderly liquidation,
including the administration of its assets and the collection of any
obligations held
Qy
the corporation in its capacity as the County's
Green Bank.
18A-47. Board of Directors.
(a)
To qualify as the County's Green Bank, a corporation's Board of
Directors must have no more than 11 voting members. The corporation'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.
(b)
Each voting member should be a resident of the County. The members
of the Board of Directors should include:
(1)
representatives of residential [and] groups [low-income groups];
representatives of low-income groups;
representatives of environmental organizations;
representatives of business organizations;
persons with experience in investment or fund management;
persons with banking and lending experience;
persons with experience in the fmance or deployment of
40
41
42
43
44
45
46
47
48
ill
[(2)]
ill
[(3)]
ill
[(4)]
ill
1(5)]
®
[(6)]
ill
49
50
51
52
53
54
renewable energy or energy efficiency;
[(7)
persons with expenence in research and development or
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BILL
No. 26-16
55
56
57
manufacturing of clean energy;]
(8)
the Director of the Montgomery County Department of
Environmental Protection or the Director's designee; and
(9)
the Director ofthe Montgomery County Department ofFinance or
the Director's designee.
58
59
60
61
62
63
64
Nancy Floreen, President, County Council
*
Approved:
*
*
Date
65
66
67
68
Approved:
Isiah Leggett, County Executive
Date
69
70
71
72
This is a correct copy ofCouncil action.
Linda M. Lauer, Clerk ofthe Council
Date
F:\LAW\BILLS\1626
Green
Bank Law-Amendments\BilI l.Docx
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LEGISLATIVE REQUEST REPORT
Bi1126-16
Environmental Sustainability-Montgomery County Green Bank-Amendments
DESCRIPTION:
Bill No. 18-15, enacted June 30,2015, required the County Executive to
convene a Green Bank Work Group tasked with providing
recommendations on implementing the legislation, including proposed
legislative amendments, in a report to be submitted to the County Executive
and County Council by June 30, 2016. Bill XX-I 6 would amend Chapter
18A, Article
7
(Montgomery County Green Bank) by adopting certain
recommendations from the Work Group to improve implementation ofthe
Green Bank statute.
The Green Bank Work Group's examination of the law and its
implementation identified unclear and inconsistent terms with regard to
who should be represented on the Green Bank Board of Directors. In
addition, it is not clear that the corporation designated as the Montgomery
County Green Bank is authorized to engage in certain activities that may
continue beyond the 5-year period of its designation.
To modify the proposed composition of the Green Bank's Board of
Directors and clarify the effect of Green Bank designation on certain
activities that may continue or mature after the designation expires.
Department of Environmental Protection
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
To be requested.
To be requested.
To be requested.
To be researched.
Michelle Vigen, Senior Energy Planner, Division of Environmental Policy
and Compliance, Department of Environmental Protection
(7-7749)
N/A
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
N/A
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_I
OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 20850
Isiah Leggett
County Executive
MEMORANDUM
June 14,2016
TO:
Nancy Floreen, Council President
Montgomery County Council
Isiah Leggett, County Executive
Introduction of XX-16 Green Bank Law .Amendments
FROM:
SUBJECT:
It
is my pleasure to transmit the attached Green Bank Amendments Bill and
accompanying Green Bank Work Group Report.
The Green Bank Law, adopted June 2015, required the County Executive to convene a
Work Group, made up of a broad set of stakeholders, to (1) review the Law in the context of relevant best
practices and local needs, and (2) submit a report to the County Executive and County Council by June
30,2016 with recommendations on implementation, including any proposed-legislative amendments.
The Department of Environmental Protection convened a Work Group from a broad set
of stakeholders, including an initial list of over 80 stakeholders. The Work Group met as a whole and
in
committees nearly twenty times between September 2015 and May 2016. This packet includes a report
and proposed amendments ..
• The Work Group's examination of the law and its implementation identified unclear and
inconsistent terms in the representation of the Green Bank Board of
~irectors.
Specifically, the amendments modify in order to clarify representation requirements.
• In
addition, it is not clear that the corporation designated as the Montgomery County
Green Bank is authorized to engage in certain activities that may continue beyond the
five-year period of its designation. The amendments clarify the effect of Green Bank
designation on certain activities that may contiriue
~r
mature after the designation
expires.
These amendments were vetted by the Work Group and reviewed and recommended by
the staff of the Coalition for Green Capital with their legal counsel (Latham
&
Watkins).
If
you have any questions, please contact Lisa Feldt, Director of the Department of
Environmental
.
Protection, at 240-777-7730 or via email at lisa.feldt@montgomerycountymd.gov.
.
montgomerycountymd.gov/311
.
3
~
~._...,
240-773-3556 TTY
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Economic Impact Statement
Bill ##-16, Environmental Sustainability - Montgomery County Green Bank­
Amendments
Background:
This legislation would amend sections of Chapter 18A of the County Code as follows:
• -Amend to revise the recommended composition of the Board of Directors
• Amend to the effect of Green Bank designation on certain activities that occur or mature
after the designation expires
Bill
##-16
provides amendments to Chapter 18A. Specifically, these amendments revise and
clarify the scope of some composition requirements of Green Bank Board of Directors.
In addition, it is not clear that the Green Bank is authorized to engage in activities that may have
terms longer than the 5-year provided designation. These amendments clarify the effect of Green
Bank designation on certain activities that occur or mature after the designation expires.
1.
The sources of information, assumptions, and methodologies used.
Sources of information include the Department of Environmental Protection (DEP). The
economic impact statement is based on information provided by DEP, and Finance has not
made any assumptions or provided methodologies in preparing the economic impact
statement.
2. A
description of any variable that could affect the economic impact estimates.
There are no variables that could affect the economic impact estimates. The amendments are
limited to governance of the Green Bank, an independent nonprofit, not any economic
activities.
3.
The Bill's positive or negative effect, if any on employment, spending, savings,
investment, incomes, and property values in the County.
These amendments would not alter potential impact to employment, spending, savings,
investment, income, or property values.
4.
If
a Bill is likely to have no economic impact, why is that the case?
Please see paragraph
#2.
The following contributed to or concurred with this analysis: Michelle Vigen, Department
of Environmental Protection; David Platt, Mary Casciotti, and Rob Hagedoorn, Department
of Finance.
J
0
F.
B ch, Director
Department of Finance
Page 1
ofl
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Fiscal Impact Statement
Council Bill XX-16 - Environmental Sustainability - Montgomery County Green Bank­
Amendments
1. Legislative Summary.
Bill XX-16 is an expedited Act that would:
(1)
clarify
the effect of Green Bank designation on certain activities that may continue or
mature after the designation expires;
(2) revise the recommended composition ofthe Board of Directors; and
(3) generally amend County law regarding environmental sustainability.
2. An estimate of changes in County revenues and expenditures regardless of whether
the revenues or expenditures are assumed in the recommended or approved budget.
Includes source of information, assumptions, and methodologies used.
No related changes to County revenues and expenditures are anticipated by the
amendments in Bill XX-16. There are no existing or proposed budget allocations to the
GreenBank.
3. Revenue and expenditure estimates covering at least the next 6 fIScal years.
See #2 above.
4; An actuarial analysis through the entire amortization period for each bill that would
affect retiree pension or group insurance costs.
Not Applicable.
5. An estimate of expenditures related to County's information technology
(IT)
systems, including Enterprise Resource Planning (ERP) systems.
Bill XX-16 would not impact expenditures relating to the County's ERP or IT systems.
6. Later actions that may affect future revenue and expenditures
if
the bill authorizes
future spending.
Not Applicable.
7. An estimate of the staff time needed to implement the bill.
Bill XX-16 will not have an impact on county
staff
time.
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8.
An
explanation of how the addition of new staff responsibilities would affect other
duties.
Not Applicable.
9. An estimate of
c~sts
when an additional appropriation is needed.
No additional appropriation is needed to implement Bill XX-16.
10. A description of any variable that could affect revenue and cost estimates.
Not Applicable.
11. Ranges of revenue or expenditures that are uncertain or difficult to project.
Not Applicable.
1
i.
If
a biD is likely to have no fiscal impact, why that
is
the case.
The Green Bank is an independent nonprofit to be designated by the County to fulfill the
legislative purpose outlined BillI8-IS and does not have a budget allocation within the
Deparbnent of Environmental Protection.
13. Other fiscal impacts or comments.
While the Green Bank has no existing or proposed budget allocation, it is anticipated to
be seeded by receipt of a portion ofthe funding negotiated by the County Executive in.
the Settlement Agreement with Exelon and Pepco, as approved by the Maryland Public
Service Commission. The Green Bank entity
will
be
responsible for these and any other
private funding it pursues.
14. The following contributed to and concurred with this analysis:
Michelle Vigen, Department ofEnvironmental Protection
Stan Edwards, Department of Environmental Protection
Lisa Feldt, Department of Environmental Protection
Joseph Beach, Department ofFinance
Matt Schaeffer, Office of Management and Budget
Jenni
Offic
Date
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coalition for
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To:
From:
Re:
Date:
Montgomery County Executive and County Council
Montgomery Country Green Bank Working Group via the Department of
Environmental Protection and Coalition for Green Capital
Summary of the Final Working Group Report
May
17, 2016
County Executive Leggett and members of the Montgomery County Council,
Please find attached to this cover letter the Final Report and recommendations from the
Montgomery County Green Bank Working Group per the Green Bank Law (Bill 18-15, enacted June
30, 2015). The Department of Environmental Protection (DEP) convened the Work Group,
composed of more than 40 County residents and stakeholders, which met through an open, public
process from September 2015 through May 2016. The Coalition for Green Capital ("CGC"), a
501(c)(3) non-profit focused on Green Bank creation, provided pro bono market research and
Work Group support to Montgomery County's Green Bank implementation efforts.
The Final Report, presented in slide deck form, includes:
• A synopsis of the work completed by the Work Group and the Coalition for Green Capital;
• A summary of the key conclusions and guidance for the Green Bank's management; and
• A list of the operational and legal steps that must be taken to operationalize the Green Bank.
Several key conclusions arising from the Work Group and research merit repetition:
1.
There is approximately $2.7 billion worth of economically viable clean energy investment
opportunities within Montgomery County, primarily in distributed solar and building
efficiency.
2. Specific activities that the Green Bank could undertake to address market gaps, include:
o clean energy financing in low-to-moderate income communities,
o credit enhancements for lenders to de-risk investment in clean energy projects,
o standard offer and turnkey financial products for various sectors,
o technical assistance for project development, and
o consumer education, marketing and outreach.
3. Priority markets for the Green Bank are: Commercial and residential whole-building
upgrades, community solar, down-market and low-to-moderate income solar, and
multifamily building upgrades.
4. The Green Bank's corporate entity has been legally formed. DEP and CGC
will
continue
implementation efforts, including filling the Board of Directors, developing bylaws consistent
with the Green Bank law's requirements, pursuing County designation and tax-exempt status.
5. mtimately, the Board of Directors with consideration of its mission and public-purpose
responsibilities will determine the specific activities of the Green Bank.
.
CGC thoroughly enjoyed working with County Staff and the members of the Working Group. CGC
is
prepared and eager to remain engaged with the County in order to support the formal launch of
the Green Bank within the next few months.
,
www.coalitionforgreencapital.comICoalitionforGreenCapitallcgc@coalitionforgreencapital.com
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Welcome!
Montgomery County Green Bank
Full Work Group Meeting
i/:
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Introductions
2.
Overview
3. Presentation and Report
.
4.
What's Next
5.
Discussions
&
Feedback
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County created GreenBank to increase the flow of
capital and building lllarket demand for clean energy
Financing Projects
• Use public-purpose dollars
.• Stimulate private investment
• Fill market gaps
.
Generating Demand
• Turn-key solutions
.
•.Minimize
customer confusion
• Cross-agency coordination
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-Green
Banks channels public and private investment
in clean energy projects
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Innovative financing structures
Private investment flows
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Working Group began process to better define Green
Bank with -key guideposts in place
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Governed by Board of Directors - some appointed
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Mllst Receive County Desigllation by Resolution
Capitalized with Utility Merger Fllnds, when they
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,Working
Group
&
CGC have completed over 6 months
of work to help guide Green Bank's future activity ,
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Work product has advanced institutional creation and
prepared Green Bank to move forward with a plan
., Deliverables .
- Draft Business Plan
- Content areas for MCGB, Bylaws, identified key mission orientation
- Fundraising Roadshow Slides, budget needs, fundraising strategy
• " Milestones
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Green Bank Legislative Amendments
Mission statements
SOlc3 Incorporation
Employer Identification Number
BOD Statement of Interest drafted, edited, disseminated
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._. _' .Found
that County's market potential is
$2.7
billion,
efficiency and solar are largest untapped lllarkets
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Nearly
40
stakeholder interviews completed, in
addition to full engagement of Working Group.
Completed
Upcoming
Scheduling
No response
Declined
Total
43
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Finance.
Government
Nonprofit
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4
4
4
3
2
7
5
Consulting
Utility
End-User
Property Owner/Manager
Contractor
Community Solar
Academic
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, Interviews uncovered' obstacles to creation of efficient
clean energy market
For many market·segments, there
is
a gap between
supply ofcapital/projects and demandfor projects
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Commerciallenders
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Commercial
Multifamily
Municipal,
University, School,
and Hospital
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Stakeholders support Green Bank concept
• Broad support for Green Bank- agreeInent
frOIn
all parties that there is a need for financing
and
Inarket developtnent
• Most appealing aspects of Green Bank concept:
- One Stop Shop - Convenient single repository of information
&
resources
- Coordination - Minimizing confusion across existing programs
such as PACE, EmPOWER, and Maryland Green Bank
- Access to Financing - Terms, rates, structures, and partnerships
that allows for more' participation and volume, better cash flows
- Working Together - Partnering with existing market actors to
enable more activity, deal volume, and animate market
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Interviews also found specific finance and market
developlllent needs for Green Bank to fill
• LMI is critical segment, not served, but hard to reach
- Partner with municipalities, not-for-profits, and industryto develop
sound product, and facilitate consumer capacity
• Credit enhancements and co-investing opportunities
-for players already active in the space
• Standard offer residential solar products for
community solar
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• More Technical Assistance
- Market actors would especially like assistance with initial project
development and structuring, a road map for how the process works,
technical underwriting, measurement
&
verification
• Provide Consumer Education, Outreach, Marketing
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Interviews show a need for partnership with local
lenders, coordination, better information in market
Supply
-
Side
• Lots of incentives, limited financing options with variety of terms! structures, few
lenders willing to include savings in the underwriting process
• Need for expertise/clarity to navigate deal complexity, financing options, ul,1derstand
impact on customer cash flows and building value/NO I
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• Lenders want to see credit enhancements, savings guarantees, or co-investment
strategies that de-risk investments and make the process easier for them
Demand
-
Side
• Customers need zero upfront cost, have immediately positive cash flows, and have
simple process
• Customers need more and clearer information, and trusted, central source of
information
• Customers need a turnkey solution that requires minimal effort
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With Working Group input, Green Bank Board will
have info necessary to choose org mission and focus
Potential
Green
Bank Objectives
• Building market capacity
of current actors
• Creating jobs
• Cutting-edge project
design
• Decarbonizing by sector
• Easywins
• Improving social equity
• Increasing climate
resiliency
• Maximizing clean energy
deployment
• Promoting economic
development
• Reducing GHGemissions
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,Green Bank can pursue nUIllerous lllarket
developlllent activities identified with Working Group
Potential Market Develop
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• Online Energy Hub for program coordination
• REC financing
&
aggregation
• Market transparency: data, information, resources
• Building Market Capacity
- Contractor training
- Appraiser training
- Investor education
• Demand aggregation - e.g. Solarize
• Solar co-ops
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'Working Group and interviews identified many
financing products Green Bank
ca~
offer
Potential Financing Activities
Commercial EE loan for projects not suitable for PACE
PACE construction loans to cover gap in PACE structure
Residential whole-building solar + EE loan
Residential solar lease and/or loan product
LMI
-specific loan for solar + EE
Community solar finance & business model development
Forgivable pre-development loan for Multifamily EE+ RE
Pilot projects: Microgrid financing, Virtual power plant,
Electric vehicles and charging stations, Energy storage,
... ,cMicro-hydro, Anaerobic digesters
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Among these choices, four priority market areas have
elllerged based on lllarket potential and need
~C~~bhI~(ith-~i=inJ1-~d
electric efficiency opportunity is greater than $781M
:. Opportunity for ciean energy substitution, big gains
in
consumer savip.gs
;. Centralized appro\ach to overcome lfinancing and
cus~omer acquisitio~
barriers
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• Portion of commercial sector looksilike residential sector, similar challenges
Need for solution tor immediately positive cash-flow, one-stop shopping
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Unique complexitY
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this area, mflkes achieving scale difficult
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After Working Group process, and with Board
direction, County has road map .Green Bank launch
• Complete Corporate Formation
&
Stand-Up
• Seek Foundation Dollars to Support Start-Up
• Hire Key Staff
• Finalize MCGB business plan
with
Board of Directors
• Design Initial Products
• Develop Go-To-Market Strategy, Launch Products
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.Moving
Forward
• COlTIlTIittee Reports
• What to Expect Next
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ENVIRONMENTAL
IIBfrltJ
PROTECTION
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OEPARTHEilT OF
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Green Bank Work Group Committees
;
Thank youfor the generous and committed engagement of
all our Work Group and Committee Members
• 40+
unique members on 3 committees
Several "triple crowners"
":'
• Green Bank Email Newsletter:
400+
subscribers
• Three Committees:
-
-
Fundraising/Capitalization
Governance
Marketplace Development
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• Met for approximately
2
hours each month (November-April)
• Contributions outside of meetings: Slide deck development, BoD
Selection Committee, Comments and Feedback
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23
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Committee Report: Fundraisingj Capitalization
Focus: How
to
capitalize andfund the A'1CGB
• Discussed Different Funding Needs
- Operational vs. Investment
• Explored Non-Merger Funding Sources
- Foundations (Grants, Impact Investment)
- Regional/Private Capital ProvIders
• Developed Fundraising Slide Deck
• Scoped Budget Needs (Preliminary)
• Began Compiling Fundraising Strategy
- Guidance and support from CGC
- Waiting for initial BoD
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COIllIllittee Report: Governance
Focus: Goventance stnLcture
and templates/orfuture .MCGB
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• Advised
BoD
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- Process and Selection Committee
- Clarifying Amendments for Board
Composition
Began Evaluating Bylaw
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Committee Report: Marketplace Development
Focus: Advising and
guiding
market assessment research
and activities to develop a marketplace
• Review and Feedback for Market Assessment
Market Landscape
- Market Sizing and Interviews
- Recommendations
• Deep Dive: Non-Financial Activities
-
-
Case Study on Multifamily Energy Efficiency Financing
Harcourt Brown and Carey
• Workshop: Structuring Financial Products
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COlTIll1ittee: Marketplace Development
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Green Bank Amendments
Pursuing
two
areas ofamendments:
1.
Board of Directors Composition
Clarifying/Separating out Residential and Low-Income representation
Adding Energy Efficiency (to accompany Renewable Energy)
Clarifying/Separating out Investment and Fund Management Experience
Removing Research and Development experience
Allowing the MCGB to take on obligations and activities with terms beyond their
current designation term (5 year term)
Provides that the GB can act with longer-term interests than their designation
Describing how those interests are treated beyond an un-renewed designation
2.
Pursuing Activities that may last beyond designation
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"Where we are" and "What's next?"
We're
on
our
way!
y"
Incorporation in the State of Maryland
y"
BoD Recruitment
o
Green Bank Amendments - in
progress
o
Presentation of this Report to CEjCC
D Establishment of the BoD-
O First Meeting: Passage of Bylaws ("baby"
j
abridged)
o
Appointment of Directors of DEPjFIN
D
Designation by Resolution .
TimeZine:
Designation by Summer
2016
(Fall
2016
at the latest)
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Thank
You / / Questions?
Michelle Vigen
Senior Energy Planner
rnichelle.vigen@montgomerycountymd.gov
Thank you again to
Coalition for Green Capital
Amazing support
by
Nick, Alex, and
Jeff
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PROTECTION
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5
Testimony on Behalf of County Executive Isiah Leggett on
Bill 26-16
Environmental Sustainability - Green Bank - Amendments
July 12, 2016
Good afternoon. My name is Michelle Vigen, Senior Energy Planner of the Department
of Environmental Protection. Thank you for the opportunity to testify on behalf of County
Executive Leggett regarding Bill 26-16, which would amend the County's Green Bank Law.
The Green Bank Law, adopted June 2015, required the County Executive to convene a
Work Group, made up of a broad set of stakeholders, to
(1)
review the Law in the context of
relevant best practices and local needs, and (2) submit a report to the County Executive and
County Council by June 30, 2016 with recommendations on implementation, including any
proposed legislative amendments. The Department of Environmental Protection (DEP)
convened a Work Group from a broad set of stakeholders, including an initial list of over 80
stakeholders.
The Green Bank Work Group submitted a report to the County Executive and County
Council in May 2015 on the results of their work. Bill 26-16 reflects the recommendations and
findings of the work group. Specifically, this bill would clarify
r~presentation
requirements of
the Board of Directors. In addition, it is not clear that the corporation designated as the
Montgomery County Green Bank is authorized to engage in certain activities that may continue
beyond the 5-year period of designation. The amendments clarify the effect of Green Bank
designation on certain activities that may continue or mature after designation expires.
These amendments were vetted by the Work Group and reviewed and recommended by
the staff of the Coalition for Green Capital and their legal counsel, Latham
&
Watkins.
The County Executive would like to recognize the many individuals that participated in
the Work Group process. Participants included experts in energy [mancing, organizational
management, and business, along with representatives from building owners, property managers,
industry associations, energy service companies, and nonprofit energy and environmental
organizations. The Work Group email list included over 525 subscribers, and approximately 50
members participated actively throughout the process. The Work Group met as a whole and in
committees nearly twenty times between September 2015 and May 2016. We also convey a
special thank you to the Coalition for Green Capital for providing the market assessment
research in this process, as well guidance on the establishment of the Green Bank.
The County Executive appreciates the opportunity to comment on the proposed bill. I
would be happy to address any questions the Council may have.