# Montgomery County Code — Part II. Local Laws, Ordinances, Resolutions, Etc.

## Chapter 18A. ENVIRONMENTAL SUSTAINABILITY

### Article 1. Energy.

**Sec. 18A-1. Findings and statement of purpose.**

  (a)   In the interest of maintaining an adequate and reliable energy supply at reasonable cost, the County government recognizes the need to institutionalize through legislation an energy policy and energy planning program. In addition, the efficient use of energy directly benefits air quality and climate, demonstrating the linkages necessary to achieve essential environmental goals. For this reason, the responsibilities of the Advisory Committee on Climate, Energy, and Air Quality includes an advisory function with respect to air quality and climate change.

  (b)   The intent of this Article is to provide the initiative for County government to address energy issues and plan for a future which may be energy resource-constrained. It establishes the means to formulate ongoing policies, plans, programs and activities designed to foster energy conservation and to promote cost-effective alternatives to existing sources of energy and patterns of energy consumption while maintaining efforts to meet environmental goals.

  (c)   This Article is intended to serve as a vehicle for the promotion of energy consciousness throughout all segments of the community and for the development and implementation of immediate and long-range cooperative energy planning efforts in both the public and private sectors.

**Sec. 18A-2. Energy Policy-Purposes; preparation; contents; action plan; annual review.**

  (a)   The County Executive must develop and submit to the County Council for approval an energy policy which establishes both short and long-term energy efficiency objectives, promotes immediate and long-range energy consciousness, identifies potential strategies for leadership at the County level to help secure the County's energy future, and stresses the link between energy and the environment. The Executive must review the energy policy annually and report to the Council by October 31 on its continuing appropriateness, and may with Council approval amend it from time to time.

  (b)   To further the objectives of the energy policy, the Executive must annually develop an energy work program of activities which can be accomplished in 12 to 24 months. The Executive must review the work program each year, may add new initiatives when action is completed on previous years' activities, and may modify or end existing activities as appropriate. The Executive must also propose a long-range plan of public and private actions to accomplish those objectives.

**Sec. 18A-3. Public hearing; modifications; approval; effective date.**

  (a)   After receiving a proposed energy policy from the County Executive, the County Council must, after not less than 30 days notice to the public, conduct a public hearing on the energy policy at which all interested persons, firms, organizations and groups must have an opportunity to comment on the policy.

  (b)   After the record of the public hearing on the policy closes, the County Council by resolution must either:

    (1)   Approve the policy as submitted by the County Executive; or

    (2)   Modify the policy and approve it as so modified; or

    (3)   Reject the policy and resubmit it to the County Executive for further consideration, revision and resubmission, addressing issues raised by the Council.

  (c)   If the County Council modifies the policy as submitted by the County Executive, the Council must, within 3 working days after taking action thereon, transmit the policy as modified to the County Executive, who must, within 10 days after receipt of the modified policy, indicate in writing to the Council concurrence or nonconcurrence with the modifications. If the Executive does not indicate nonconcurrence within 10 days, the policy takes effect as modified by the Council. If within 10 days the Executive does not concur with the modifications made by the Council and states reasons therefor, the Council must either:

    (1)   Further revise the policy to take into account any or all of the objections and recommendations of the County Executive and then approve the policy as further revised; or

    (2)   By an affirmative vote of a simple majority of its members, approve the policy as previously sent to the Executive.

  (d)   Except as otherwise provided in this Section, the policy takes effect on the date it is approved by the County Council and continues in effect until amended in accordance with Section 18A-4.

**Sec. 18A-4. Amendments.**

  (a)   Amendments to the energy policy may be initiated at any time by the County Executive or by the County Council.

  (b)   Amendments to the policy which are initiated by the County Executive must be prepared and processed in accordance with Sections 18A-2 and 18A-3.

  (c)   Amendments to the policy which are initiated by the County Council must be prepared in accordance with Section 18A-2 and then submitted to the County Executive for review and comment. The County Executive must have 30 days in which to submit comments in writing to the County Council, after which the Council must proceed to public hearing and processing of the policy in accordance with Section 18A-3.

**Sec. 18A-5.Climate, Energy, and Air Quality Advisory Committee; establishment; terms of office; ex-officio members.**

  (a)   There is hereby established an Advisory Committee on Climate, Energy, and Air Quality to assist the County Council and the County Executive in carrying out the purposes of this Chapter and Chapter 3. The Committee consists of 15 members appointed by the Executive, subject to confirmation by the Council. One member must be designated by the Executive and confirmed by the Council to serve as chair of the Committee. Each appointee must be a resident of the County who is technically knowledgeable and interested in climate change, energy and air quality.

  (b)    Appointments, terms of office, and attendance requirements are governed by Section 2-148. The initial appointments must be staggered. Members appointed to fill vacancies serve the remainder of the unexpired term.

  (c)    Members of the Committee serve without compensation.

  (d)    In addition to the chair appointed under subsection (a), the Committee may elect other officers necessary to carry out its duties.

  (e)    In addition to the 15 voting members of the Committee, the County Executive and the County Council may each appoint an ex-officio, non-voting member to serve at the pleasure of the appointing authority.

**Sec. 18A-6. Meetings; quorum; voting.**

  The Committee must meet in public session on call by the chair as frequently as required to perform its duties but not less than once each calendar quarter. A regular or emergency meeting may also be convened at the request of two-thirds of the members. Reasonable notice must be given to the Committee members and to the general public for all meetings of the Committee, as required by the state open meetings law. A majority of the members of the Committee is a quorum for the transaction of business, and a majority vote of those present, but not less than 4 members, is sufficient to take any action.

**Sec. 18A-7. Subcommittees.**

  The chair may, with the approval of the Committee, appoint subcommittees from among its members to assist in carrying out any function of the Committee. Any subcommittee so appointed must consist of not less than 3 members. Subcommittee action is not the action of the Committee and does not bind the Committee or its members.

**Sec. 18A-8. Duties and responsibilities.**

  The Committee has the following duties:

  (a)   Advise the Executive and the Council of the activities of the Committee in furthering the purpose of this Chapter and Chapter 3;

  (b)   Comment on or assist in developing recommendations to promote and implement immediate and long-range policies and programs aimed at meeting the County’s greenhouse gas emission reduction goals;

  (c)   Comment on or assist in developing recommendations to promote and implement immediate and long-range policies and programs to promote cleaner, more efficient, and more reliable energy use and practice in all segments of the community;

  (d)   Comment on or assist in developing programs to meet air quality standards and to promote healthy indoor and outdoor air quality;

  (e)   Identify areas and methods to encourage voluntary participation in climate-related efforts, energy conservation efforts and air quality improvements;

  (f)   Identify and recommend innovative programs, policies, and technologies to improve climate and air quality for the Executive, the Council, and the public to implement;

  (g)   Recommend the development of educational programs and materials to educate the public and private sectors about the efficient use of energy and its direct benefits for improved air quality and reduced greenhouse gas emissions; and

  (h)   Carry out duties assigned from time to time by the Executive and the Council to assist in fulfilling the purposes of this Article.

**Sec. 18A-8A. Advocacy.**

  The Committee must not engage in any advocacy activity at the State or federal levels unless that activity is approved by the Office of Intergovernmental Relations.

**Sec. 18A-9. Interagency Group on Energy and Utility Management-Establishment; membership; meetings.**

  (a)   The County Executive must establish an Interagency Group on Energy and Utility Management to coordinate County government energy conservation efforts, promote energy efficiency, share information, provide technical assistance, and cooperate on planning and implementing energy conservation measures.

  (b)   Each County or bicounty agency with substantial utility budgets or energy conservation capital projects, including executive departments and offices, the Board of Education, Montgomery College, the Washington Suburban Sanitary Commission, the Maryland-National Capital Park and Planning Commission, the Housing Opportunities Commission, and the County Council, should designate a liaison to the Group. The Executive must select a senior officer or employee of the executive branch to facilitate the Group's operation.

  (c)   The Group must meet as frequently as necessary to perform its duties.

  (d)   The Group has the following duties:

    (1)   establish uniform utility unit costs for County operating budget purposes;

    (2)   prepare agency resource conservation plans annually, describing current and anticipated energy conservation programs with actual and projected energy and cost savings;

    (3)   advise the Executive and Council on energy conservation goals, cost savings, and new technologies.

**Sec. 18A-10. Administrative arrangements; support and organizational duties and functions of county government.**

  (a)    The County Executive must designate a senior officer or employee of the executive branch of County government to provide executive direction to the performance of the functions and responsibilities delineated in this Article and to report annually to the Executive and Council on the activities undertaken to further the goals of this Article.

  (b)    The County Executive may also establish organizational and administrative arrangements as appropriate to promote the policies and purposes of this Article, including the following functions:

    (1)   Update the energy policy and work program as necessary;

    (2)   Formulate policies, plans and programs, including necessary legislative proposals, for recommendation to the County Executive and County Council designed to promote energy conservation in the County;

    (3)   Coordinate with other interested parties in the development and implementation of energy conservation activities;

    (4)   Recommend methods for the coordination of energy saving efforts in the public and private sectors;

    (5)   Assemble and disseminate information concerning energy conservation for use by the government, the private sector and the general public;

    (6)   Develop and promote activities and programs designed to foster public awareness of the need for and the means to achieve cost-effective energy conservation.

**Sec. 18A-11. Clean Energy Rewards Program.**

  (a)   The Director of the Department of Environmental Protection must establish a Clean Energy Rewards Program.  The purpose of the program is to provide financial and other incentives to consumers who choose electricity produced by renewable and environmentally preferable power sources.

  (b)   The Director must require each eligible person or supplier to submit an application for any payment under this program, and may take any other action necessary to administer this program.  The Department of Finance must take actions necessary to make any payments that the Director of Environmental Protection has certified are due.  The County Executive must issue regulations under Method (1) to implement this Section.

  (c)   The Executive must adopt program regulations that:

    (1)   identify the types of electricity that qualify for incentives under the program;

    (2)   restrict or preclude the payment of incentives for purchase of otherwise qualified electricity that a consumer or supplier is required to buy or produce to meet certain federal or state requirements;

    (3)   specify the process to apply for, certify, and receive an award; and

    (4)   include any additional program criteria, standards, and procedures that are consistent with the County’s energy and environmental policy, which among other things may restrict the location or air shed where any qualified electricity is produced.

  (d)   The County Council must establish by resolution the maximum amount of any incentive offered and the time period during which the incentive will be offered.  The maximum incentive may be calculated by total payments, payment per quantity of electricity bought, or any other reasonable measurement.

  (e)   Any incentive payment to individual applicants may be paid on a fiscal year or calendar year basis, or at any other convenient time.

  (f)   A person who submits a false or fraudulent application, or withholds material information to obtain a payment under this Section, has committed a Class A violation.  In addition, the person must repay the County for all amounts improperly paid, and all accrued interest and penalties that would apply to those amounts, as if they were overdue taxes.  A person who violates this Section is liable for all court costs and expenses of the County in any civil action brought by the County to recover any payments, interest, or penalty.  The County may collect any amount due, and otherwise enforce this Section, by any appropriate legal action.

**Sec. 18A-11A. Renewable Energy.**

  (a)   Purchase of renewable energy.

    (1)   The County Executive must assure that at least 50% of the County’s total annual electric power usage will be supplied by renewable energy, beginning in Fiscal Year 2015.

    (2)   The County Executive must assure that 100% of the County’s total annual electric power usage will be supplied by renewable energy, beginning in Fiscal Year 2016.

  (b)   Criteria for renewable energy purchases.  The renewable energy purchased under subsection (a) must:

    (1)   be generated from an energy source defined as a Tier 1 renewable source in Section 7-701 of the Public Utilities Article of the Maryland Code or any successor provision;

    (2)   qualify as green power as defined by the United States Environmental Protection Agency;

    (3)   not be included in a supplier’s renewable portfolio standard requirement for any year or supplant clean energy purchased to comply with either federal law or the law of states other than Maryland; and

    (4)   be registered and tracked in a regional tracking system.

  (c)   On-site clean energy generation.  The County may satisfy the requirement of subsection (a) through on-site clean energy generation.  The County must retain ownership of each on-site project’s renewable energy certificates and must meet all other requirements of this Section.  The County may exchange the renewable energy certificates for certificates from an alternate source that complies with this Section.

### Article 2. Climate Protection.

**Sec. 18A-12. Definitions.**

  In this Article, the following words have the meanings indicated:

  Cap and trade program means a program that places a limit on the aggregate net greenhouse gas emissions of the participants, while allowing the transfer or sale of greenhouse gas emission allowances.

  Carbon dioxide equivalent means a given weight of a greenhouse gas that has the same global warming potential, measured over a specified time, as a given weight of carbon dioxide.

  Climate Protection Plan means the plan to reduce the level of Countywide greenhouse gas emissions prepared under Section 18A-15.

  Countywide greenhouse gas emissions means the total annual greenhouse gas emissions in the County, measured in tons of carbon dioxide equivalents, including all emissions from electricity generated outside the County but consumed in the County.

  Department means the Department of Environmental Protection.

  Director means the Director of the Department or the Director’s designee.

  Greenhouse gas includes carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, and any other gas or substance the Director finds to be a significant contributor to global warming.

  Home Energy Score means an evaluation of the energy efficiency of a home using the process developed by the United States Department of Energy.

  Sustainability means the creation and maintenance of conditions under which humans and nature can exist in productive harmony and permit fulfilling the social, economic, and other requirements of present and future generations.

**Sec. 18A.13. Department of Environmental Protection – Office of Sustainability.**

  (a)   Created.  There is an Office of Sustainability in the Department of Environmental Protection.

  (b)   Duties.  The Office must:

    (1)   promote residential energy efficiency and renewable energy programs through direct collaboration with homeowners, renters, property managers, real estate agents, and others to support:

      (A)   auditing and assessment of residential properties, including evaluating whether the County should require a Home Energy Score to be conducted before the sale of single-family home;

      (B)   energy efficiency retrofits;

      (C)   utilization of available incentives from government, utilities, and the private sector;

      (D)   utilization of clean energy technologies and purchasing of clean energy; and

      (E)   healthy indoor air education programs;

    (2)   promote commercial and multi-family energy efficiency and renewable energy programs through collaboration with commercial and multi-family property owners, managers, and industry associations to support:

      (A)   benchmarking and assessment of commercial and multi-family properties;

      (B)   energy efficiency retrofits;

      (C)   utilization of available incentives from government, utilities, and the private sector, including alternative financing programs such as the Property Assessed Clean Energy program; and

      (D)   utilization of clean energy technologies and purchasing of clean energy;

    (3)   support green business development by:

      (A)   expanding the Montgomery County Green Business Certification Program;

      (B)   evaluating and promoting other robust third party green certification and reporting programs;

      (C)   connecting residents and businesses to providers of green products and services; and

      (D)   fostering green business market opportunities;

    (4)   support tree and forest programs by:

      (A)   developing overall and individual tree canopy and planting goals to serve as a baseline for measuring success;

      (B)   connecting and informing the public about the County’s tree planting, preservation, and programs and providing information on tree planting techniques, tree care, species selection and related activities, through a website created for this purpose;

      (C)   developing and implementing a public engagement strategy to encourage community and individual tree planting on private and public lands and cultivating new partnerships in support of these activities; and

      (D)   compiling and disseminating information on the status of the County’s tree and forest resource on a regular basis;

    (5)   promote partnership development and civic engagement by:

      (A)   maintaining and leveraging partnerships with local community groups, civic organizations, HOAs and businesses to expand the County’s environmental educational reach

      (B)   organizing community-based environmental activities and outreach programs; and

      (C)   promoting the environmental programming and events of Montgomery County Public Schools, local colleges and universities, and other educational institutions in the County;

    (6)   provide data analysis and research in support of County sustainability goals and objectives by:

      (A)   maintaining data on County greenhouse gas emissions and building fuel energy consumption;

      (B)   reporting progress on meeting the greenhouse gas reduction goals in the 2009 Climate Protection Plan;

      (C)   evaluating options for a broader Countywide sustainability reporting framework;

      (D)   providing research on and analysis of emerging sustainability issues;

      (E)   providing any other data and analytical efforts in support of County’s sustainability objectives; and

      (F)   every 2 years, beginning on February 1, 2015, applying a scoring system designed to compare the County to other local jurisdictions on energy efficiency policies and programs; and

    (7)   prepare an annual report, as required in subsection (c).

  (c)   Annual report.  By February 1 each year, the Office must submit to the County Council an annual report on:

    (1)   its activities, accomplishments, plans, and objectives;

    (2)   actions taken to implement the Climate Protection Plan, and whether the County is meeting the goals identified in the Climate Protection Plan as required under Section 18A-15;

    (3)   its activities to enhance tree canopy in the County; and

    (4)   the score established under paragraph (b)(6)(F).

**Sec 18A-14. Department of General Services – Office of Energy and Sustainability.**

  (a)   Created.  There is an Office of Energy and Sustainability in the Department of General Services.

  (b)   Duties.  The Office must:

    (1)   develop an energy baseline, energy unit savings plan, and energy cost savings plan for the County’s building portfolio;

    (2)   develop a comprehensive plan to reduce the energy consumption and impact of fleet operations, which may include the use of alternative fuels, reductions vehicle miles traveled, improvements in vehicle efficiency, or vehicle electrification strategy;

    (3)   execute plans to use Energy Performance Contracting to improve the efficiency of County buildings, as authorized by the Director of General Services;

    (4)   develop and execute the County’s renewable energy plans, including the purchase of renewable energy and deployment of solar and other clean energy sources across County facilities,

    (5)   coordinate with the Office of Procurement to develop green and environmentally preferable purchasing plans;

    (6)   develop initiatives, plans, and projects to reduce the environmental impact of County operations and foster a culture of sustainability within the County Government; and

    (7)   prepare and submit data summarizing efforts to reduce the environmental impact of County operations to any annual Sustainability report prepared by the County Executive in collaboration with other Departments and Agencies.

  (c)   Annual report.  By February 1 each year, the Office must submit to the County Council an annual report on:

    (1)   its activities, accomplishments, plans, and objectives;

    (2)   actions taken to reduce the energy consumption and impact of fleet operations;

    (3)   the use of biodiesel fuels in County vehicles, results of the sport utility vehicle inventory, and the average fuel economy for passenger vehicles and light trucks in the County fleet as required under Section 18A-23; and

    (4)   steps taken in the preceding year to implement the energy unit savings plan and energy cost savings plan for the County’s portfolio of buildings as required under Section 8-14B.

**Sec. 18A-15. Climate Protection Plan.**

  (a)   Inventory.  The Office of Sustainability in the Department of Environmental Protection may update the greenhouse gas emissions inventory to determine the amount of greenhouse gases emitted in the County and submit a written report on the inventory to the County Executive and County Council.

  (b)   Reduction of greenhouse gas emissions.  The Office may update the County Climate Protection Plan. Any update should report the County’s progress on reducing Countywide greenhouse gas emissions to 80% below the amount of greenhouse gas emissions in the base year identified in the inventory prepared under subsection (a) by January 1, 2050, including any recommendations that would ensure a 10% reduction every 5 years through 2050.

  (c)   Climate Protection Plan.  The Climate Protection Plan must:

    (1)   identify a strategy, including short-, mid-, and long-term goals to reduce Countywide greenhouse gas emissions to the levels required in subsection (b);

    (2)   explain how the Climate Protection Plan relates to the Energy Policy approved by the Council under Section 18A-3 and identify any recommended changes to the Energy Policy that are needed to implement the Climate Protection Plan;

    (3)   identify existing cap and trade programs and recommend whether the County should join a cap and trade program;

    (4)   identify ways to increase sequestration of greenhouse gases, including a Tree Canopy Initiative that contains a plan for increasing the County’s tree canopy;

    (5)   include an education and outreach plan designed to educate County residents and businesses about:

      (A)   global climate change;

      (B)   County efforts to reduce greenhouse gas emissions;

      (C)   sequestration of carbon; and

      (D)   best practices for reducing greenhouse gas emissions;

    (6)   include a strategy to achieve a significant improvement in the average County fleet fuel economy standards as required under Section 18A-20;

    (7)   identify a strategy to reduce vehicle miles traveled in the County; and

    (8)   estimate the time and resources necessary to implement the Climate Protection Plan.

  (d)   Preparation.  In preparing any update to the Climate Protection Plan, the Office must:

    (1)   consider greenhouse gas emissions reduction programs in other jurisdictions;

    (2)   evaluate the potential costs and benefits of different options for reducing greenhouse gas emissions to the County’s economy, environment, health, safety, and welfare; and

    (3)   use the best available economic models, emissions estimating techniques, and other scientific methods.

  (e)   Annual report.  The Office of Sustainability must submit a report to the County Executive and County Council by February 1 of each year that specifies:

    (1)   the actions taken to implement the Climate Protection Plan in the preceding fiscal year; and

    (2)   whether the County is meeting the goals identified in the Climate Protection Plan.

**Sec. 18A-16. Reserved.**

**Sec. 18A-16A. Social cost of carbon assessment.**

  (a)   Definitions.  In this Section, the following words have the meanings indicated:

    Department means the Department of General Services.

    Director means the Director of the Department or the Director’s designee.

    Energy Project means an energy efficiency or renewable energy improvement to a building or facility that is expected to reduce the onsite consumption of electricity, natural gas, or other fuels.

    Return on Investment means a performance measure used to evaluate the financial return of an energy project, including reasonable forecasts of energy costs and other factors.

    Social cost of carbon means an estimate of the economic damages or damages avoided associated with the increase or reduction of one metric ton of carbon dioxide emissions.

  (b)   When evaluating a building to determine whether to improve the building’s energy efficiency, the Department must include the social cost of carbon as a factor in determining the return on investment of the proposed energy efficiency improvements.

  (c)   In performing its analysis, the Department must use the standard developed by the United States Environmental Protection Agency or a standard the Director finds equivalent.

  (d)   In performing its analysis, the Department should consult the Department of Environmental Protection and any other County department or agency with expertise in environmental sustainability.

### Article 3. Climate Protection - Motor Vehicles - County Fleet.

**Sec. 18A-17. Definitions.**

  In this Article, the following words have the meanings indicated:

  ASTM means the American Society for Testing and Materials.

  B20 means a biodiesel blend of 20% biodiesel and 80% petroleum diesel fuels.

  Biodiesel means any biomass-based diesel fuel certified by the Environmental Protection Agency.

  Biodiesel blend means a blend of biodiesel fuel, designated BXX, where XX represents the volume percentage of biodiesel fuel in the blend.

  Car share program means a program that allows County employees to conduct County business using motor vehicles which:

    (1)   are owned or leased by the County; and

    (2)   County residents and businesses can lease when they are not being used for County business.

  County fleet means all passenger vehicles and light trucks owned or leased by the County.

  County vehicle means any motor vehicle owned or leased by the County.

  Department means the Department of General Services.

  Diesel fuel means a distillate fuel for use in diesel engines.

  Director means the Director of the Department or the Director’s designee.

  Fuel economy means the federal Environmental Protection Agency’s combined (city and highway) fuel economy estimate for a vehicle.

  Light truck means a motor vehicle with a gross vehicle weight of less than 8,500 pounds which is:

    (1)   designed primarily for transporting property;

    (2)   designed primarily for transporting persons and has a capacity of more than 12 persons; or

    (3)   available with special features that enable off-road operation or use.

  Miles per gallon means the distance traveled in a vehicle powered by one gallon of fuel.

  Office of Energy and Sustainability or Office means the Office of Energy and Sustainability in the Department of General Services created in Section 18A-14.

  Passenger vehicle means a motor vehicle, except a light truck or motorcycle, designed to carry no more than 12 persons.

  Public safety vehicle means a motor vehicle whose primary purpose is patrol, transport, emergency response, or another purpose that requires specialized equipment or capabilities, which is used by:

    (1)   the Department of Police;

    (2)   the Fire and Rescue Service;

    (3)   the Department of Correction and Rehabilitation; or

    (4)   any other County department or agency.

**Sec. 18A-18. Biodiesel fuel standards.**

  (a)   Standard.  A County vehicle with a diesel engine must use a biodiesel blend of B20 or higher unless the Director finds that there is a compelling reason to use:

    (1)   a different biodiesel or other biofuel blend; or

    (2)   another fuel that achieves greater greenhouse gas reductions.

  (b)   Applicability.  This Section does not apply to any County vehicle for which mechanical failure due to use of biodiesel fuel would void the manufacturer’s warranty for that vehicle.

  (c)   The Director may waive the requirements of this subsection for up to 1 year if the Director finds that compliance is not feasible for a certain type of vehicle.

**Sec. 18A-19. Sport utility vehicles.**

  (a)   The Office of Energy and Sustainability must conduct an annual inventory of the County’s sport utility vehicles and:

    (1)   identify the function that each sport utility vehicle performs;

    (2)   identify the most fuel-efficient type of vehicle that could reasonably and satisfactorily perform the function that each sport utility vehicle performs; and

    (3)   eliminate or replace any sport utility vehicle for which a more fuel-efficient vehicle could reasonably and satisfactorily perform the identified function.

  (b)   The Office must develop criteria to identify which positions in County government should be assigned a sport utility vehicle from the County fleet.  The Director must follow this criteria when assigning vehicles from the County fleet.

**Sec. 18A-20. Fuel economy standards.**

  (a)   The Office must develop a strategy to achieve a significant improvement in average County fleet fuel economy standards.

  (b)   This Section does not apply to public safety vehicles.

**Sec. 18A-21. Emergency Vehicles Inventory.**

  By January 15, 2009, the Fire and Rescue Service, consulting with the Department of Transportation, must:

  (a)   inventory the use of its public safety vehicles; and

  (b)   develop a strategy to assure that it uses appropriate public safety vehicles when responding to an emergency, including ways the Fire and Rescue Service can increase the use of fuel efficient vehicles.

**Sec. 18A-22. Car share program.**

  (a)   Costs and benefits.  The Sustainability Working Group must evaluate the costs and benefits of creating a car share program for the purpose of reducing the:

    (1)   number of motor vehicles in the County fleet; and

    (2)   dependence of County residents and businesses on motor vehicle ownership.

  (b)   Factors to consider.  The Sustainability Working Group must consider whether:

    (1)   a car share program will help:

      (A)   reduce traffic;

      (B)   increase transit use;

      (C)   promote walking and biking;

      (D)   reduce carbon emissions;

      (E)   improve air quality; and

      (F)   reduce demand for parking; and

    (2)   the County should partner with a private entity to develop a car share program.

  (c)   Report.  The Sustainability Working Group must submit a report to the County Executive and County Council by January 15, 2009 that includes:

    (1)   findings regarding the costs and benefits of a car share program; and

    (2)   recommendations as to:

      (A)   whether the County should create, or provide incentives for the private sector to create, a car share program; and

      (B)   the type of car share program that best suits the County’s needs.

**Sec. 18A-23. Annual report.**

  By February 1 each year, the Office of Energy and Sustainability must submit to the County Executive and County Council a report on the:

  (a)   use of biodiesel in County vehicles, including the quantity, blend, price per gallon, and average fuel consumption;

  (b)   results of the inventory of sport utility vehicles conducted under Section 18A-19; and

  (c)   average fuel economy for passenger vehicles and light trucks in the County fleet.

### Article 4. Home Energy Loan Program.

**Sec. 18A-24. Definitions.**

  In this Article, except as provided in Section 18A-30, the following words have the meanings indicated:

  Certified energy auditor means any individual who:

  (a)   is a participating contractor/auditor with the Maryland Home Performance with ENERGY STAR Program; or

  (b)   meets other equivalent requirements approved by the Director.

  Cost effective means the maximum estimated amount of time it takes for an energy efficiency improvement to pay for itself through reduced energy costs (the “payback” period), as determined by the Department.

  Department means the Department of Environmental Protection.

  Director means the Director of the Department or the Director’s designee.

  Eligible cost means the net cost of buying or installing an energy efficiency improvement or renewable energy device, including any part, component, or accessory necessary to operate the improvement or device, less any amount received from a public or private program because the improvement or device is or will be made or installed.

  Energy efficiency improvement means a permanent improvement made to an existing single-family home that:

  (a)   reduces the consumption of energy in the home, including:

    (1)   caulking and weatherstripping doors and windows;

    (2)   heating and cooling system efficiency modifications, including:

      (A)   replacing a burner, furnace, heat pump, or boiler, or air conditioner with a high efficiency model;

      (B)   a device to modify flue openings that increases the energy efficience or the heating system;

      (C)   any electrical or mechanical furnace ignition system which replaces a standing gas pilot; and

      (D)   any tune-up that increases the operating efficiency;

    (3)   a programmable thermostat;

    (4)   ceiling, attic, wall, or floor insulation;

    (5)   whole house air sealing;

    (6)   water heater tune-up, water heater insulation, pipe insulation, or change out to ENERGY STAR qualified water heater;

    (7)   storm windows or doors or ENERGY STAR qualified window or door replacement;

    (8)   air distribution system improvements, including duct insulation and air sealing;

    (9)   any device which controls demand of appliances and aids load management; and

    (10)   any other conservation device, renewable energy technology, and specific home improvement that the Director finds reduces the consumption of energy in the home; and

  (b)   meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device, if these standards are available.

  Energy efficiency improvement does not include a standard household appliance, such as a washing machine or clothes dryer.

  ENERGY STAR rating means the ENERGY STAR rating developed by the federal Environmental Protection Agency which rates a product’s energy efficiency.

  Home energy audit means an evaluation of the energy efficiency of a home which includes any test or diagnostic measurement that the Department finds necessary to:

  (a)   assure that a home’s energy efficiency is accurately measured; and

  (b)   identify cost effective steps that can be taken to improve a home’s energy efficiency.

  Home Energy Loan Fund or Fund means the revolving loan fund established under Section 18A-30 to provide funding for the Home Energy Loan Program.

  Home Energy Loan Program or Program means the program that provides zero or low interest loans to install an energy efficiency improvement or renewable energy device.

  Home Energy Rating System or HERS means the energy efficiency rating system for residential buildings developed by the Residential Energy Services Network.

  Low interest loan means a loan with an interest rate below prevailing rates for residential home improvement loans, and which reflects:

  (a)   the County’s current cost of borrowing funds or the cost, if any, of federal funds made available to the County for this purpose; and

  (b)   the cost of administering the Program.

  Renewable energy means the following energy sources or technology:

  (a)   solar;

  (b)   wind;

  (c)   geothermal; and

  (d)   any other energy source or technology which the Director finds is derived from natural processes that do not involve the consumption of exhaustible resources.

  Renewable energy device means a device that:

  (a)   creates, converts, or actively uses renewable energy;

  (b)   is permanently installed on the home or property; and

  (c)   meets safety and performance standards set by a nationally recognized testing laboratory for that kind of device, if these standards are available.

  Single-family home means a single-family detached or attached residential building.  A single-family home includes a condominium.

**Sec. 18A-25. Established; purpose.**

  The Director must create and administer a Home Energy Loan Program to:

  (a)   improve energy efficiency;

  (b)   promote energy conservation;

  (c)   reduce greenhouse gas emissions; and

  (d)   reduce consumption of fossil fuels by County residents; and

  (e)   create jobs.

**Sec. 18A-26. Eligibility; use of funds.**

  (a)   The Director may loan funds to an owner of a single-family home to fund eligible costs to make an energy efficiency improvement that is projected to be cost effective or install a renewable energy device in the single-family home, up to the maximum loan amount set by regulation.

  (b)   To be eligible for a loan under this Program, a property owner must:

    (1)   have a home energy audit performed on the owner’s single-family home by a certified energy auditor, as required under Section 18A-27; and

    (2)   have the energy efficience improvement completed or renewable energy device installed in the time frame set by regulation; and

    (3)   agree to repay the loan amount borrowed through the County tax bill for that home, as required by Section 18A-28.

  (c)   The Department of Permitting Services must certify that the improvement or device for which the funds were loaned has been property installed.  The Department must accept a certification by another government agency, including a municipality, that the improvement or device has been properly installed.  The County Executive may assign the responsibility under this subsection to another entity, including a third party.  However, the entity responsible for certifying that the improvement or device has been properly installed must not be the entity that installed the improvement or device.

  (d)   The term of the loan must be 15 years.  However, the Director may set a longer loan term by regulation.

  (e)   Use of funds for an energy efficiency improvement.

    (1)   A person may borrow funds for eligible costs to make an energy efficiency improvement, less any amount received from a public or private program because the improvement is or will be made.

    (2)   Except as provided by subsection (e)(3), funds must be loaned only for an energy efficiency improvement that is projected to be cost effective.

    (3)   Funds may be loaned for an energy efficiency improvement that is not cost effective if that improvement is part of a package of improvements financed under the Program that cumulatively is cost effective.

  (f)   Use of funds for a renewable energy device.

    (1)   Except as provided in (f)(2), a person may borrow funds for eligible costs to install a renewable energy device only if the single-family home meets energy efficiency criteria established by the Department.

    (2)   A person may borrow funds to install a renewable energy device on a single- family home that does not meet the energy efficiency criteria in (f)(1) if the device is cost effective.

    (3)   A person may borrow funds for eligible costs to install a renewable energy device, less any amount received from a public or private program because the device is or will be installed.

**Sec. 18A-27. Home energy audit.**

  (a)   An applicant for a loan under this Program must have an submit to the County a home energy audit performed on the owner’s home by a certified energy auditor.

  (b)   The auditor must prepare a written report that:

    (1)   contains findings and recommendations to improve the home’s energy efficiency;

    (2)   identifies those cost effective energy efficiency improvements which would generate projected annual energy cost savings, based on projected energy costs set by Method (3) regulations, that are equal to or more than the estimated cost of the improvements to be financed under the County program when the cost of the improvements are amortized over 15 years; and

    (3)   identifies any public or private financing mechanisms known to the auditor that could be used to implement energy efficiency improvements.

  (c)   The cost of the audit may be included in the amount of the loan.

**Sec. 18A-28. Repayment of funds; lien.**

  (a)   The owner of single-family home must agree to repay the loan amount borrowed, amortized over 15 years, through the County property tax bill for that home.

  (b)   If the owner of the single-family home sells the home, the seller must disclose that the buyer must continue to repay the loan through the property tax bill.

  (c)   The loan amount and any accrued interest constitute a first lien on the real property to which the loan applies until paid.  The loan amount and accrued interest are collectable by suit or tax sale like all other real property taxes, to the extent allowed by State law.  If the property owner does not pay the loan and accrued interest as required, the property may be certified to the Department of Finance and the lien may be sold at the tax sale conducted by the County.

**Sec. 18A-29. Regulations.**

  The Executive must adopt regulations under Method (2) to administer the Program, including:

  (a)   lending standards and priorities;

  (b)   minimum and maximum loan amounts;

  (c)   interest rates, terms, and conditions;

  (d)   application procedures, including necessary supporting documentations;

  (e)   criteria for adequate security;

  (f)   procedures to refer applicants to other sources of funds, and to cooperate with other public and private sources of funds;

  (g)   procedures to ask the Director to reconsider any denial of a loan or any decision on interest rates, terms, and conditions;

  (h)   procedures for nonpayment or default;

  (i)   procedures and requirements for post-installation inspection;

  (j)   disclosure requirements for real estate transactions; and

  (k)   criteria for loan disbursement.

**Sec. 18A-30. Revolving loan fund.**

  (1)   Definitions.  In this Section, the following words have the meanings indicated:

    Department means the Department of Finance.

    Revolving loan fund or Fund means the special, nonlapsing fund to finance the Home Energy Loan Program established under this Article.

  (b)   The Fund consists of:

    (1)   money appropriated in the County budget for the Program;

    (2)   money received from any public or private source;

    (3)   interest and investment earnings on the Fund;

    (4)   repayments and prepayments of principal and interest on loans made from the Fund; and

    (5)   any other available funds to support the Program.

  (c)   The Department must:

    (1)   disburse funds and collect payments for a loan made under the Program; and

    (2)   maintain loan records and provide an annual report to the Department of Environmental Protection.

**Sec. 18A-31. Annual report.**

  Each August 15, the Director must submit a report to the County Executive and County Council that identifies;

  (a)   the number of recipients of loans;

  (b)   the amount of funds loaned; and

  (c)   any activities during the previous fiscal year to market the Program.

**Sec. 18A-32. Third party contract.**

  (a)   The County may contract with a non-profit or for-profit organization to take any action necessary to fulfill the purposes of this Article, including:

    (1)   prepare and review, evaluate, and approve applications;

    (2)   execute loan agreements;

    (3)   secure and service loans;

    (4)   collect loan payments; and

    (5)   conduct collections for defaulted loans.

  (b)   The County, or a contractor for the County, may charge an applicant or borrower usual and customary fees that the Department finds is consistent with the overall goals of the Program and will not inhibit utilization of the Program, including:

    (1)   application fees;

    (2)   loan origination fees;

    (3)   delinquency fees;

    (4)   costs of collection; and

    (5)   other program fees to support verification of program requirements.

### Article 5. Commercial Property Assessed Clean Energy Program.

**Sec. 18A-33. Definitions.**

  Definitions.  In this Article, the following words have the meanings indicated:

  Certified General Real Estate Appraiser means an individual who is certified as a certified real estate appraiser for general real estate under Title 16 of the Business Occupations Article of the Maryland Code.

  Climate Related Improvements or Improvements include measures that address:

    (1)   renewable energy;

    (2)   energy and water efficiency;

    (3)   environmental remediation;

    (4)   grid resilience; or

    (5)   property resilience.

  Commercial property means any real property located in the County that is either not designed for or intended for human habitation, or that is used for human habitation as a multi-family dwelling of more than 4 rental units.

  Commercial Property Assessed Clean Energy Program or Program means a program that facilitates Climate Related Improvements and requires repayment through a surcharge on the owner’s property tax bill.

  County designated program manager means a person who may be selected by the County through a competitive process to provide administrative and management services for the Program.

  Department means the Department of Finance.

  Director means the Director of the Department or the Director’s designee.

  Energy efficiency means any equipment, device, or material that is intended to decrease energy consumption or use less energy to perform the same task.

  Environmental remediation means any project that is intended to remove environmental or health hazards, including addressing indoor air quality and building material contaminants.

  Grid resilience means any capital improvement investment that addresses reliability improvements during electrical service disruptions and that are consistent with Public Service Commission regulations on interconnection and franchising.

  Private lender means a lender selected by the property owner to provide loan funds to the property owner for an Improvement.

  Property owner means a person who owns qualified property or has a ground lease or a long-term lease of 8 or more years on qualified property.

  Property resilience means any built or nature-based improvement that increases the capacity of a property to withstand natural disasters and the effects of climate change.

  Qualified property means any new or existing commercial real property that meets the eligibility criteria for the Program.

  Renewable energy means energy that naturally replenishes over a human, not a geological, time frame and that is ultimately derived from solar power, water power, or wind power. A renewable energy source does not include petroleum, nuclear, natural gas, or coal.

  Surcharge means the annual repayment of a loan, including principal, interest, and related charges, that funds an improvement and is collected through the real property tax billing process.

**Sec. 18A-34. Commercial Property Assessed Clean Energy Program - established.**

  (a)   Established.  The Director must create and administer a Commercial Property Assessed Clean Energy Program.

  (b)   Third-party lender.

    (1)   The Director may enter into an agreement with a third-party lender that funds a loan for a Climate Related Improvement. The agreement must provide for the repayment of the loan for the Improvement and any cost of administering the Program through a Surcharge on the qualified property. The loan may include the cost of materials and labor necessary for installation, any permit fee, any inspection fee, any application or administrative fee, any bank or lender fee, and any other fee that the property owner may incur for the installation of the Climate Related Improvement. The third-party lender must submit a request for collection of each Surcharge amount to the County designated program manager or, if there is no County designated program manager, to the Department no later than April 1 of each year.

    (2)   The third-party lender must record a document among the land records of Montgomery County within 30 days of the time the loan is funded, which provides notice of the Commercial Property Assessed Clean Energy loan associated with the property and that the surcharge will be collected and have lien status like all other real property taxes.

  (c)   County designated program manager.  The Director may enter into an agreement with a County designated program manager. The County designated program manager must notify the Department of the amount of the Surcharge for each account to be collected on the real property tax bill for that year’s levy no later than May 1 of each year, and in a format approved by the Department. The County designated program manager will receive the collections from the County, reconcile the collected and billed Surcharge for each account, and remit the Surcharge amount to the private lender. The County designated program manager must report annually to the County on the participants in the Program by name, property address, property tax account number, amount of each Surcharge billed, collected by the County, and remitted to the private lender, description of project, any administrative fees, the amount of each loan, the amount of each loan balance, and the term of each loan. This report must be submitted to the Department no later than February 15 of each year pertaining to activity in the prior calendar year.

**Sec. 18A-35. Eligibility.**

  In order to be eligible for this Program, the following criteria must be met:

  (a)   Eligibility.

    (1)   The property must be a qualified property.

    (2)   Before any loan is approved under the Program, the County must give due regard to the property owner’s ability to repay a loan in a manner substantially similar to that required for a mortgage loan under Sections 1-401, 12-127, 12-311, 12-409.1, 12-925, and 12-1029 of the Commercial Law Article of the Maryland Code. The County has authority to deny approval of any loan under the Program that, in its sole determination, does not meet these Sections of the Maryland Code.

    (3)   The property owner must submit the following to the lender at the time of application for funding:

      (A)   express written consent of any holder of an existing mortgage or deed of trust on a qualified property;

      (B)   verification that there are no delinquent fees, taxes, water or sewer charges, liens, or other special assessments on the qualified property;

      (C)   describe and certify on an application submitted for review that best efforts will be used to contract for services with a minority-owned business enterprise, small business, or County-based business for energy efficiency, renewable energy, and other approved climate related improvements; and

      (D)   confirmation that:

        (i)   the proposed Climate Related Improvement will be properly permitted and permanently affixed to the qualified property and comply with all applicable State and federal statutes and regulations, as determined by the appropriate regulatory authority; or

        (ii)   final inspection of an installed Climate Related Improvement has occurred within a one-year (12 months) period immediately preceding the date of Program application.

    (4)   For new commercial construction, the property must be designed to meet or exceed the energy performance required by the County building code that is in effect at the time a property owner applies to participate in the Program.

    (5)   The loan amount under this Program must meet the following criteria:

      (A)   Existing commercial construction. This subsection, 18A-35(a)(5)(A), shall be in effect for five (5) calendar years after the effective date of this amendment unless further legislative action is taken to extend it. After such date, loan amounts are subject to the conditions set by subsection 18A-35(a)(5)(C) or may be set at a higher amount subject to Director approval.

        (i)   The loan amount must be at least $5,000 and not more than 30% of either the full cash value or the appraised value of the qualified property.

        (ii)   The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.

        (iii)   The full cash value is determined by the Maryland State Department of Assessments and Taxation. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.

      (B)   For new commercial construction. This subsection, 18A-35(a)(5)(B), shall be in effect for five (5) calendar years after the effective date of this amendment unless further legislative action is taken to extend it. After such date, loan amounts are subject to the conditions set by subsection 18A-35(a)(5)(D) or may be set at a higher amount subject to Director approval.

        (i)   If a qualified property is designed to meet or exceed the energy performance required by the County building code by no more than 5%, the maximum loan amount must not exceed 20% of the full cash value or appraised value of the qualified property.

        (ii)   If a qualified property is designed to exceed the energy performance required by the County building code by 5% or greater, the maximum loan amount must not exceed 30% of the full cash value or appraised value of the qualified property.

        (iii)   The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.

        (iv)   The full cash value and appraised value of the property must be determined based on the estimated value of the property as completed. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.

      (C)   Existing commercial construction.

        (i)   The loan amount must be at least $5,000 and not more than 20% of either the full cash value or the appraised value of the qualified property.

        (ii)   The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.

        (iii)   The full cash value is determined by the Maryland State Department of Assessments and Taxation. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.

      (D)   For new commercial construction.

        (i)   If a qualified property is designed to meet or exceed the energy performance required by the County building code by no more than 5%, the maximum loan amount must not exceed 15% of the full cash value or appraised value of the qualified property.

        (ii)   If a qualified property is designed to exceed the energy performance required by the County building code by 5% or greater, the maximum loan amount must not exceed 20% of the full cash value or appraised value of the qualified property.

        (iii)   The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.

        (iv)   The full cash value and appraised value of the property must be determined based on the estimated value of the property as completed. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.

  (b)   Property assessed clean energy surcharge.

    (1)   The property owner of qualified property must agree to repay the amount financed through a Surcharge levied on the County’s real property tax bill for the qualified property.

    (2)   A Surcharge must be imposed under a written agreement between the private lender and the County. The Surcharge will be recorded in land records of the County, at the expense of the owner, within 30 days of the execution of a clean energy loan financing agreement.

    (3)   As a condition for entering into an agreement under the Program, the private lender must provide the County designated program manager and the Department a copy of the loan documents and documents that verify:

      (A)   the property owner’s ability to repay the Property Assessed Clean Energy loan in a manner substantially similar to that required for a mortgage loan;

      (B)   there are no delinquent taxes, special assessments, liens, or water or sewer charges on the qualified property;

      (C)   there are no delinquent assessments on the qualified property under the Program;

      (D)   existing mortgage or deed of trust lender consent;

      (E)   appraised value of the qualified property as certified in the appraisal report submitted by a Certified General Real Estate Appraiser if the eligibility requirement in 18A-35(a)(4) is based on the appraised value of the qualified property;

      (F)   loan to value documentation; and

      (G)   any other financial or program document that the Director deems necessary.

    (4)   In addition to the administrative fees in Section 18A-34(c), the County may collect an administrative fee through the Surcharge to cover charges relating to lending, program management, billing, or collection.

**Sec. 18A-36. Payment of surcharge; lien.**

  (a)   The County must collect the amount financed through a Surcharge on the property owner’s real property tax bill and forward payments received by the County to the County designated program manager or, if there is no County designated program manager, to the lender no later than 30 days after the payment due dates for real property taxes. Payment due dates for semi-annual real property taxes are September 30 for the first installment and December 31 for the second installment, and for annual real property taxes the payment due date is September 30.

  (b)   After receiving written notice from the County designated program manager of the execution of a clean energy loan financing agreement, the County must add the Surcharge to the property tax bill.

  (c)   If the property owner sells the qualified property, the buyer must continue to pay the Surcharge levied on the annual property tax bill.

  (d)   The Surcharge and any accrued interest or penalty constitutes a first lien on the real property to which the Surcharge applies until paid. An unpaid Surcharge will be, until paid, a lien on the qualified property on which it is imposed from the date it becomes payable. The Surcharge will accrue interest and penalty and will be treated and collected like all other County property taxes. Any delinquency will be collected through the County Tax Sale process. The provisions of Title 14, Subtitle 8 of the Tax – Property Article of the Maryland Code that apply to a tax lien will also apply to the lien created under this law. Any delinquent Surcharge collected through the County Tax Sale process must be forwarded to the County designated program manager or, if there is no County designated program manager, to the lender no later than 30 days after the payment was received.

**Sec. 18A-37. Regulations; annual report.**

  (a)   The Executive may adopt regulations under Method (2) to administer the Program.

  (b)   The Executive must submit an annual report to the County Council by March 15 of each year describing program participation, number and dollar value of Surcharge billed and collected, and other relevant information pertaining to the prior calendar year.

  (c)   The report must include details about outreach and education efforts by the designated program manager to encourage and disseminate information related to contracting with minority-owned businesses, including marketing strategies, promotions, availability of online directory, and website presence.

### Article 6. Building Energy Use Benchmarking and Performance Standards.

**Sec. 18A-38. Intent.**

  The intent of this Article is to:

  (a)   implement recommendations of the 2009 Climate Protection Plan (EEC-2), 2013 Commercial Building Energy Efficiency study (Chapter 3.2), and support efforts of the Office of Sustainability to increase energy efficiency and reduce greenhouse gas emissions in the private sector and County buildings;

  (b)   engage the commercial and multi-family residential building sector with building energy information crucial to adopting energy conservation and efficiency opportunities;

  (c)   spur market transformation by making building performance transparent for the building and tenant market, allowing more accurate evaluation of energy costs and creating a competitive market for energy efficient buildings;

  (d)   strengthen the local economy by encouraging more efficient business operations and providing new opportunities for local businesses that provide energy conservation and efficiency services;

  (e)   recognize building owners that have made investments to improve their building energy performance and expand in-house capacity for energy management; and

  (f)   improve the energy performance of covered buildings through established building energy performance standards, therefore, reducing greenhouse gas emissions from the built environment and helping the County achieve its climate action goal of zero greenhouse gas emissions by 2035.

**Sec. 18A-38A. Definitions.**

  In this Article, the following words have the meanings indicated:

  Affordable housing means a multi-family building that includes at least 50% of dwelling units whose sale or rental price do not exceed that of a moderately-priced dwelling unit under Chapter 25A.

  Benchmark means to track and input a building’s energy consumption data and other relevant building information for 12 consecutive months, as required by the benchmarking tool, to quantify the building’s energy use.

  Benchmarking tool means the website-based software, commonly known as ENERGY STAR Portfolio Manager, or any successor system, approved by the United States Environmental Protection Agency to track and assess the relative energy use of buildings nationwide.

  Building means:

      (1)   any single structure utilized or intended for supporting or sheltering any occupancy, except if a single structure contains two or more individually metered units operating independently that have stand-alone heating, cooling, hot water, and other mechanical systems, and no shared interior common areas, or;

      (2)   two or more structures utilized or intended for supporting or sheltering any occupancy, that:

        (A)   are serviced by a common energy meter;

        (B)   have a common heating or cooling system;

        (C)   share interior common areas; or

        (D)   whose configuration otherwise prevents an accurate determination of the energy consumption attributable to each individual structure.

  Building energy performance standard means a policy that sets a minimum required level of energy performance for covered buildings.

  Building performance improvement plan means a document in a format approved by the Director submitted by a covered building owner and approved by the Director as described in this Article.

  Building type means a category of covered buildings subject to the same final performance standards.

  Certificate of use and occupancy means the certificate issued by the Director that allows a building to be occupied and used.

  County-owned covered building means a building owned by the County whose gross floor area equals or exceeds 25,000 square feet.

  Covered building means a County-owned, Group 1, Group 2, Group 3, Group 4, or Group 5 covered building.

  Data center means a space designed and equipped to meet the needs of high density computing equipment such as server racks, used for data storage and processing, as defined by the benchmarking tool.

  Department means the Department of Environmental Protection.

  Director means the Director of the Department or the Director’s designee.

  Energy performance score or ENERGY STAR score means the numerical score produced by the benchmarking tool, or any successor score, that assesses a building’s energy performance compared to similar buildings, based on source energy use, operating characteristics, and geographic location.

  Final performance standard means the numeric value of site EUI that each covered building must ultimately achieve.

  Gross floor area means the total building square footage measured between the principal exterior surfaces of the enclosing fixed walls of a building. Gross floor area consists of all areas inside the building, including lobbies, tenant areas, common areas, meeting rooms, break rooms, the base level of atriums, restrooms, elevator shafts, stairwells, mechanical equipment areas, basements, and storage rooms. Gross floor area does not include exterior spaces, balconies, patios, exterior loading docks, driveways, covered walkways, outdoor play courts (e.g., tennis, basketball), parking, the interstitial space between floors (which house pipes and ventilation), and crawl spaces. Gross floor area is not the same as rentable space, but rather includes all areas inside the building(s).

  Group 1 covered building means a privately owned nonresidential covered building whose gross floor area equals or exceeds 250,000 square feet.

  Group 2 covered building means a privately owned nonresidential covered building whose gross floor area equals or exceeds 50,000 square feet but is less than 250,000 square feet.

  Group 3 covered building means:

    (1)   a privately owned nonresidential covered building whose gross floor area equals or exceeds 25,000 square feet but is less than 50,000 square feet, or

    (2)   a privately owned nonresidential covered building whose gross floor area equals or exceeds 50,000 square feet and whose use type was previously exempted under this Article.

  Group 4 covered building means a privately owned multifamily residential or mixed-use covered building whose gross floor area equals or exceeds 250,000 square feet.

  Group 5 covered building means a privately owned multifamily residential or mixed-use building whose gross floor area equals or exceeds 25,000 square feet but is less than 250,000 square feet.

  Interim performance standard means the numeric value of site EUI which covered buildings must achieve or exceed by a fixed date every four (4) years from a covered building’s performance baseline.

  Interior common area means shared space within a building such as hallways, lobbies, stairwells, and other shared amenities (e.g., gyms, laundry rooms, party rooms).

  Mixed-use building means a building that contains both residential units and commercial space.

  Net site EUI means site energy use minus energy generated from the renewable energy allowance divided by the total gross floor area of the building expressed in thousands of British thermal units per gross square feet (kBtu/GSF).

  Newly constructed covered building means a covered building whose owner has completed construction, received a use and occupancy permit, and is able to begin benchmarking the building’s energy use and other characteristics.

  Normalized net site energy means the site energy use by the covered building normalized for weather and other characteristics within the limits of the capabilities of the benchmarking tool and normalized for other factors as determined by the Department minus energy generated from the renewable energy allowance.

  Normalized net site EUI means the total normalized net site energy use consumed by a covered building in one year divided by the total gross floor area of the building expressed in kBtu/GSF.

  Owner means an individual or legal entity in whose name a building is titled, or in the case of a community association, the governing body of either a condominium or a cooperative housing corporation.

  Performance baseline means the normalized net site EUI for a covered building averaged over two calendar years.

  Performance metric means an objectively verifiable numeric measure of normalized site EUI to determine building performance.

  Process load means energy consumed for bona fide purposes other than heating, cooling, ventilation, domestic hot water, lighting, appliances, office equipment, data centers, or other plug loads.

  Recognized data verifier means a Professional Engineer or a Registered Architect, or another trained individual whose professional license or building energy training program credential is recognized by the Director.

  Reported benchmarking information means the descriptive information about a building, its operating characteristics, and information generated by the benchmarking tool regarding the building’s energy consumption, efficiency, and performance.  Reported benchmarking information includes the building identification number, address, gross floor area, energy performance score, site energy use intensity, and annual greenhouse gas emissions.

  Site energy use means all energy used onsite by a covered building to meet the energy loads of a building, including electricity delivered to the building through the electric grid and generated onsite with renewable sources; natural gas; district steam; district hot and chilled water; diesel; propane; fuel oil; wood; coal; and other fuels used onsite. Site energy use does not include electricity used to charge vehicles.

  Site energy use intensity or site EUI means a numeric value calculated by the benchmarking tool that represents the energy consumed by a covered building relative to its size in terms of energy used per square foot of gross floor area per year.

  Tenant means a person or legal entity occupying or holding possession of a building, part of a building, or premises under a rental agreement.

**Sec. 18A-38B. Applicability.**

  This Article does not apply to a covered building for which more than 50% of the total gross floor area is used for:

  (a)   public assembly in a building without walls;

  (b)   industrial uses where the majority of energy is consumed for manufacturing, the generation of electric power or district thermal energy to be consumed offsite, or for other process loads; or

  (c)   transportation, communications, or utility infrastructure.

**Sec. 18A-39. Energy use benchmarking.**

  (a)   County-owned covered buildings.

    (1)   No later than June 1, 2015, and every June 1 thereafter, the County must benchmark any County-owned covered building whose gross floor area equals 50,000 square feet for the previous calendar year and report the benchmarking information to the Department.

    (2)   No later than June 1, 2023, and every June 1 thereafter, the County must benchmark any County-owned covered building whose gross floor area equals or exceeds 25,000 square feet but is less than 50,000 square feet for the previous calendar year and report the benchmarking information to the Department.

  (b)   Group 1 covered buildings.  No later than June 1, 2016, and every June 1 thereafter, the owner of any Group 1 covered building must benchmark the building for the previous calendar year and report the benchmarking information to the Department.

  (c)   Group 2 covered buildings.  No later than June 1, 2017, and every June 1 thereafter, the owner of any Group 2 covered building must benchmark the building for the previous calendar year and report the benchmarking information to the Department.

  (d)   Group 3 and Group 4 covered buildings. No later than June 1, 2023, and every June 1 thereafter, the owner of any Group 3 or Group 4 covered building must benchmark the building for the previous calendar year and report the benchmarking information to the Department.

  (e)   Group 5 covered buildings. No later than June 1, 2024, and every June 1 thereafter, the owner of any Group 5 covered building must benchmark the building for the previous calendar year and report the benchmarking information to the Department.

  (f)   Newly constructed covered building.  Following the first full calendar year that energy data can be collected and that the building was occupied, on average, by at least one full-time-equivalent employee (40 person-hours per week) exclusive of security guards, janitors, construction workers, landscapers, and other maintenance personnel throughout the calendar year being reported, the owner of any newly constructed covered building must benchmark the building and report to the Department no later than June 1 of that following year, and every June 1 thereafter.

  (g)   Waiver.  For any time period for which the owner of a covered building documents, in a form required by regulation, any of the conditions below, the Director may waive the benchmarking requirements of this Section.

    (1)   Financial distress, defined as a building that:

      (A)   is the subject of a tax lien sale or public auction due to property tax arrearages;

      (B)   is controlled by a court appointed receiver; or

      (C)   was recently acquired by a deed in lieu of foreclosure;

    (2)   On average, less than one full-time-equivalent employee occupied the building during the calendar year being reported;

    (3)   The covered building is newly constructed and has received its certificate of use and occupancy during the calendar year for which benchmarking is required; or

    (4)   The covered building was demolished or received its demolition permit during the calendar year for which benchmarking is required.

**Sec. 18A-40. Data Verification.**

  (a)   Verification required.  Before the first benchmarking deadline required by Section 18A-39, and before each third benchmarking deadline thereafter, the owner of each covered building must assure that reported benchmarking information for that year is verified by a recognized data verifier.  The verification must be a signed statement by a recognized data verifier attesting to the accuracy of the information.  If the Director requests, the owner of a covered building must produce the statement available for the most recent year in which verification was required.

  (b)   Alternative Verification Path.  The Director may waive the verification requirements under this Section if the owner can demonstrate that the building has achieved ENERGY STAR Certification for at least 6 months of the year being benchmarked.

**Sec. 18A-41. Solicitation of compliance information from tenants.**

  (a)   Solicitation of information from tenant.  An owner of a covered building must request relevant information from any tenant in a covered building no later than March 1 of each year in which benchmarking is required by Section 18A-39.  If the owner receives notice that a tenant intends to vacate a unit which is subject to this Section, the owner must request the information within 10 days after receiving the notice to vacate.

  (b)   Tenant response.  Within 30 days after receiving a request for information from the building owner, each tenant of a unit in a covered building must provide the building owner with all information that the owner cannot otherwise acquire that is necessary to comply with this Article.

  (c)   Failure of tenant to provide information.

    (1)   If any tenant does not provide the information required under this Section to the owner of a covered building, that fact does not relieve the owner of the obligation to benchmark the building under Section 18A-39, using all information otherwise available to the owner.

    (2)   If a tenant of a unit in a covered building does not provide information to the owner of the building under this Section, the Director must consider the owner to be in compliance with Section 18A-39 if:

      (A)   the owner shows that the owner requested the tenant to provide the information under this Section; and

      (B)   the owner benchmarked the building under Section 18A-39, using all information otherwise available to the owner.

**Sec. 18A-42. Establishment of building energy performance standards.**

  (a)   Requirement. The Department must develop and implement building energy performance standards for covered buildings. The standards must:

    (1)   increase the energy efficiency of existing covered buildings and expedite the reduction of greenhouse gas emissions from the building sector;

    (2)   use normalized net site EUI as a performance metric wherever feasible or net site EUI if the Director determines that normalization is not practical as performance metric;

    (3)   account for the renewable energy allowance in the performance metric;

    (4)   use the benchmarking tool to report building energy performance to the County; and

    (5)   utilize available data sources and best practices to establish interim and final performance standards.

  (b)   Building types.

    (1)   No later than December 31, 2023, the County Executive must issue Method (2) regulations establishing building types for every covered building.

    (2)   Covered buildings within each building type must have shared characteristics that facilitate the implementation and enforcement of this Article. The Department may define one or more building types to be identical to ENERGY STAR property type categories.

    (3)   All covered buildings within the same building type category must be subject to the same final performance standards that facilitate the implementation and enforcement of this Article.

  (c)   Performance baseline. The performance baseline for each covered building must be calculated as follows:

    (1)   County-owned covered buildings whose gross floor area equals or exceeds 50,000 square feet, Group 1 covered buildings, and Group 2 covered buildings: Average of the 2 complete years with the highest normalized net site EUI between calendar year 2018 and calendar year 2022.

    (2)   County-owned covered buildings whose gross floor area is at least 25,000 square feet but not greater than 50,000 square feet, Group 3, and Group 4 covered buildings: Average of the 2 complete years with the highest normalized net site EUI between calendar year 2022 and calendar year 2024.

    (3)   Group 5 covered buildings: Average of the 2 complete years with the highest normalized net site EUI between calendar year 2023 and calendar year 2025.

    (4)   Newly constructed covered buildings: Average of the 2 complete years with the highest normalized net site EUI over the first 3 years of benchmarking reporting.

  (d)   Interim and final performance standards.

    (1)   No later than December 31, 2023, the County Executive must issue Method (2) regulations establishing final performance standards for each building type using the normalized site EUI performance metric wherever feasible or site EUI if the Director determines that normalization is not practical.

    (2)   The Department must calculate interim performance standards for each covered building with the starting point set at the covered building’s performance baseline and continuing to the final performance standard.

    (3)   Each covered building must demonstrate progress towards the final performance standard by complying with interim performance standards every 5 years after the performance baseline year as follows:

      (A)   County-owned covered buildings whose gross floor area equals or exceeds 50,000 square feet, Group 1, and Group 2 covered buildings:

        (i)   Interim performance standard: December 31, 2028, and evaluated with June 1, 2029, benchmarking.

        (ii)   Final performance standard: December 31, 2033, and evaluated with June 1, 2034, benchmarking.

      (B)   County-owned covered buildings whose gross floor area is at least 25,000 square feet but not greater than 50,000 square feet, Group 3, and Group 4 covered buildings:

        (i)   Interim performance standard: December 31, 2030, evaluated with June 1, 2031.

        (ii)   Final performance standard: December 31, 2035, evaluated with June 1, 2036.

      (C)   Group 5 covered buildings:

        (i)   Interim performance standard: December 31, 2031, evaluated with June 1, 2032, benchmarking.

        (ii)   Final performance standard: December 31, 2036, evaluated with June 1, 2037.

      (D)   Newly constructed buildings will be added to a coverage group (Group 1, Group 2, Group 3, Group 4, or Group 5) based on gross floor area and building type:

        (i)   Interim performance standards: Evaluated with the interim standard of the building’s coverage group following creation of the performance baseline.

        (ii)   Final performance standard: Evaluated with the final performance standard of the building’s coverage group, if the performance baseline is created before the final performance standard.

    (4)   Covered buildings must maintain the final performance standards established by regulation.

    (5)   Covered buildings must demonstrate compliance with the interim and final performance standards by reporting building energy benchmarking data to the Department using the benchmarking tool. The Department must determine compliance by comparing the performance metric against the interim or final performance standards for the applicable building type.

**Sec. 18A-42A. Building Performance Improvement Board.**

  (a)   Established. The County Executive must appoint, subject to confirmation by the Council, a Building Performance Improvement Board comprised of 15 voting members. Designees of the Department of Environmental Protection, Department of General Services, Department of Housing and Community Affairs, Department of Housing and Community Development, and Department of Permitting Services are ex officio nonvoting members of the Board.

  (b)   Membership. Each voting member of the Board must be a resident of the County or a member of the governing body or staff of an entity doing business in the County. The Board should include:

    (1)   Representatives of local electricity or natural gas utilities;

    (2)   Providers of energy efficiency, building resilience and/or renewable energy services or consulting;

    (3)   Owners or managers of affordable housing;

    (4)   Owners or managers of multi-family residential buildings containing market-rate units;

    (5)   Nonresidential building owners or managers;

    (6)   Nonprofit building owners or managers;

    (7)   Technical building design or operations professionals;

    (8)   Providers of facilities, mechanical, or similar engineering services;

    (9)   Commercial or multi-family residential construction finance or investment professionals;

    (10)   Representatives of nonprofit organizations dedicated to climate action, resiliency, public health, green building, economic development, or building decarbonization; and

    (11)   Representatives of nonprofit organizations dedicated to racial equity or environmental justice.

  (c)   Terms. Each voting member serves a 3-year term beginning on January 1. Of the members first appointed, one-third must be appointed for 1-year terms, one-third must be appointed for 2-year terms, and one-third must be appointed for 3-year terms. A member must not serve more than 2 consecutive full terms. A member appointed to fill a vacancy serves the rest of the unexpired term. Members continue in office until their successors are appointed and qualified. The Board must elect one of its members as Chair to be who must serve as such for one calendar year or until a successor is elected.

  (d)   Procedures. The Board must adopt rules to govern its procedures including meeting frequency, managing Chair elections, establishing committees, and other issues that pertain to Board governance.

  (e)   Duties and responsibilities. The Board must generally advise the Department on implementation of building energy performance standards. This includes providing recommendations to the Director on:

    (1)   Building type groupings;

    (2)   Interim and final performance standards for each building type;

    (3)   Managing situations where ownership of a building is transferred or a building’s type changes;

    (4)   Building performance improvement plan technical review and approval processes;

    (5)   Complementary programs or policies, with particular attention to assistance or accommodations for challenged or under-resourced sectors, such as affordable housing, non-profit organizations, and small businesses; and

    (6)   Enforcement of benchmarking requirements and performance standards.

  (f)   Compensation. The members of the Board serve without compensation.

**Sec. 18A-42B. Building performance improvement plans.**

  (a)   If a covered building owner cannot reasonably meet one or more of the applicable interim or final performance standards due to economic infeasibility or other circumstances beyond the owner’s control, based on guidelines established by regulation, the owner may submit a proposed building performance improvement plan to the Department for review and approval by the Director in consultation with the Building Performance Improvement Board.

  (b)   A building performance improvement plan must include:

    (1)   documentation of economic infeasibility or other circumstances beyond the owner’s control such that interim or final performance standards are not met;

    (2)   a list of potential improvement measures, including engineering calculations of energy savings and a cost-benefit analysis of each potential improvement measure;

    (3)   a plan and timeline for achieving energy improvements to the building’s performance that will provide cost-effective energy savings based on guidelines established by regulation, including the estimated savings to be realized by implementing all of the cost-effective measures identified in the plan; and

    (4)   procedures for correcting any noncompliance or deviation from the plan.

  (c)   The owner must submit a building performance improvement plan to the Department at least 90 days before the deadline for submitting documentation of compliance with interim or final performance standards.

  (d)   If, after consulting with the Building Performance Improvement Board, the Director approves the building performance improvement plan, the owner must record the building performance improvement plan as a covenant in the County land records and deliver a certified copy of the recorded plan to the Department. After the Director receives the certified copy of the recorded plan, the covered building will be deemed to be in compliance with the applicable interim or final performance standards as long as the owner fulfills the terms of the building performance improvement plan within the timeline specified in the plan.

**Sec. 18A-42C. Extensions and adjustments.**

  (a)   The Department may establish additional criteria recommended by the Building Performance Improvement Board for qualified affordable housing, non-profit buildings, and other buildings as appropriate to modify compliance with interim or final performance standards by regulation.

  (b)   The Director, in consultation with the Building Performance Improvement Board, may grant an extension or adjustment to an interim or final performance standard for a covered building whose owner submits a request along with documentation at least 90 days before the deadline for submitting documentation of compliance with an interim or final performance standard if any of the following conditions apply:

    (1)   A demolition permit has been issued or a demolition of the building is planned before the deadline to comply with the next interim performance standard;

    (2)   The building is in financial distress under Section 18A-39 (g)(1);

    (3)   The building is exempt from real property taxes and the owner is able to certify by the statement of a certified public accountant or by sworn affidavit that the owner’s revenue less expenses for the previous 2 years was negative;

    (4)   The Director determines that strict compliance with those standards would be economically infeasible, as defined by regulation, due to circumstances beyond the owner’s control;

    (5)   Other acceptable conditions as determined by the Director through regulation.

**Sec. 18A-43. Annual report; disclosure of benchmarking and energy performance information.**

  (a)   Annual report required.  By October 1 of each year, the Director must submit a benchmarking and building performance report to the County Executive and County Council.  The report must review and evaluate energy efficiency in covered buildings, including:

    (1)   summary statistics on the most recent reported energy benchmarking information, including information on the completeness and level of data quality of the building energy data being reported by building type per the benchmarking tool;

    (2)   discussion of any energy efficiency trends, cost savings, and job creation resulting from energy efficiency improvements;

    (3)   for County-owned covered buildings:

      (A)   the scores of County-owned covered buildings benchmarked; and

      (B)   whether the Director recommends any energy efficiency improvements for specific buildings; and

    (4)   building energy performance summary statistics, if an interim or final performance standard occurs for a covered building type in the current reporting cycle.

  (b)   Disclosure of benchmarking and building energy performance standards data.  The Director must make reported aggregated benchmarking and building energy performance standard data readily available to the public, including on the open data website created under Section 2-154, and the Director may exempt information from disclosure only to the extent that disclosure is prohibited under federal or state law.

  (c)   Exceptions to disclosure.  To the extent allowable under state law, the Director must not make the following readily available to the public:

    (1)   any individually attributable reported benchmarking information from the first calendar year that a covered building is required to benchmark;

    (2)   any individually attributable reported benchmarking or building energy performance standards information relating to a covered building if the disclosure of the covered building’s energy use would be harmful to the public interest and national security; and

    (3)   building performance improvement plans and associated documentation attributable to an individual covered building.

**Sec. 18A-43A. Regulations.**

  The County Executive may issue Method (2) regulations to administer this Article.

  (a)   The Executive must convene a Benchmarking Work Group.  Members of the Work Group must include representatives from the County, building owners and manager, industry trade associations, non-profit organizations, and utility companies.

  (b)   The Work Group must:

    (1)   review the application of Chapter 18A, Article 6, as added by Section 1 of this Act, to County buildings for the reporting period ending June 1, 2015; and

    (2)   submit a report to the County Council and County Executive by September 1, 2015 with recommendations on implementing building benchmarking for privately-owned buildings, including any proposed amendments to County law.

**Sec. 18A-43B. Penalties; enforcement.**

  (a)   A building owner must not knowingly provide false information required under this Article to the Department. The Director may revoke or modify an extension, adjustment, building performance improvement plan, or compliance with benchmarking or the interim or final performance standards in response to any false information provided by the building owner.

  (b)   Any violation of this Article is a Class A violation.

### Article 7. Montgomery County Green Bank.

**Sec. 18A-44. Purpose.**

  The County Government supports the formation of a Montgomery County Green Bank to promote and support investment in climate change mitigation and adaptation activities and provide financing for climate change mitigation and adaptation activities in the County. These activities include clean energy technologies and resiliency, sustainability, or climate adaptive projects. The Green Bank must be able to:

  (a)   serve and support climate change mitigation and adaptation activities in all sectors, including residential single-family homes and multifamily, commercial, industrial, non-profit, municipal governments, universities and colleges, schools, and hospitals;

  (b)   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 financing and increase private investment in climate change mitigation and adaptation activities;

  (c)   leverage private investment in climate change mitigation and adaptation activities through financing mechanisms that support, enhance, or complement private investment;

  (d)   consider improvements ancillary to the primary climate change mitigation and adaptation project or related to environmental health or building safety or durability;

  (e)   accept capital from the county, the state, the federal government, non-profits, foundations, and any other capital source that the Green Bank governance deems to be attractive and useful;

  (f)   recapitalize its funds through market means, including by selling whole or portions of assets (loans) through private placement or other securitization;

  (g)   stimulate the demand for climate change mitigation and adaptation activities that serve end-use customers;

  (h)   before making a loan, loan guarantee, or other form of financing support for climate change mitigation and adaptation activities, develop rules, policies, and procedures to specify borrower eligibility and any other term or condition of financial support;

  (i)   provide by resolution for the issuance of revenue bonds to finance climate change mitigation and adaptation activities;

  (j)   provide information regarding best practices for overseeing climate change mitigation and adaptation activity projects and other appropriate consumer education;

  (k)   recognize that equity investments carry 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;

  (l)   assess reasonable fees and charges on its financing activities to cover its reasonable costs and expenses, as determined by the Board of Directors appointed under Section 18A-47;

  (m)   make information regarding rates, terms, and conditions for all of its financing support transactions available to the public for inspection, including any formal annual reviews by both a private auditor and the Director of Finance, and provide details to the public on the Internet unless such disclosure includes a trade secret, confidential commercial information, or confidential financial information;

  (n)   provide leadership on environmental issues at both the County and State levels;

  (o)   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

  (p)   undertake any other activities deemed by the Board of Directors to support the mission of the Green Bank.

**Sec. 18A-45. Definitions.**

  In this Article, the following words have the meanings indicated:

  Clean energy technologies means measures addressing energy resources and emerging energy technologies, including renewable energy systems and 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 grid and battery storage.

  Climate change mitigation and adaptation activities means activities that include clean energy technologies or resiliency, sustainability, or climate adaptive projects.

  Energy efficiency project means an improvement made to an existing property that reduces consumption of energy.

  Green Bank means the Green Bank that the County has designated to promote and support investment in climate change mitigation and adaptation activities in the County, including clean energy technologies; resiliency, sustainability, and climate adaptive projects; and other related risk reduction activities.

  Maryland Open Meetings Act means the Maryland Open Meetings Act, codified at Sections 3-101 through 3-501 of the General Provisions Article of the Maryland Code.

  Renewable energy project means a permanent improvement made to an existing property that creates, converts, stores, or actively uses renewable energy.

  Resiliency, sustainability, or climate adaptive projects mean measures designed to support property or community resilience, reliability, and environmental sustainability; property or community environmental health and environmental safety; property or community water conservation and on-site management; sustainable waste treatment; sustainable agricultural activities; and adaption of systems to manage changes to the climate, such as activities responding to extreme weather events.

**Sec. 18A-46. Designation.**

  (a)   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.

  (b)

    (1)

      (b)

        (2)   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.

    (2)   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.

  (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.

  (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.

  (e)   This Section may not be construed to prevent the corporation designated as the County’s Green Bank from:

    (1)   undertaking, during its designation, the following activities that may mature after the designation expires:

      (A)   assuming liability as guarantor, endorser, or acceptor of obligations; and

      (B)   issuing for purchase its notes, debentures, bonds, or other obligations; or

    (2)   continuing as a corporation and exercising any of its functions after expiration of its designation for purposes of orderly liquidation, including the administration of its assets and the collection of any obligations held by the corporation in its capacity as the County’s Green Bank.

**Sec. 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 15 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 groups;

    (2)   representatives of low-income groups;

    (3)   representatives of environmental organizations;

    (4)   representatives of business organizations;

    (5)   persons with experience in investment or fund management;

    (6)   persons with banking and lending experience;

    (7)   persons with experience in the finance or deployment of renewable energy or energy efficiency;

    (8)   the Director of the Montgomery County Department of Environmental Protection or the Director’s designee; and

    (9)   the Director of the Montgomery County Department of Finance or the Director’s designee.

  (c)   A member must not be paid for service on the Board but may be reimbursed for necessary travel expenses.

  (d)   A member is not subject to Chapter 19A because of serving on the Board. The Bank’s bylaws must include provisions defining and regulating conflicts of interest by Board members and Bank staff.

  (e)   Notwithstanding any inconsistent provision of Section 19A-21, a 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 a lobbyist under Article V of Chapter 19A because of that advocacy.

  (f)   The Board must direct the program, management, and finances of the corporation.

  (g)   The Bank’s bylaws must provide that upon dissolution of the Green 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.

**Sec. 18A-48. Status; incorporation; bylaws.**

  (a)   To qualify as the County’s Green Bank, a corporation’s articles of incorporation must provide that the corporation is:

    (1)   a tax-exempt nonprofit corporation;

    (2)   not an instrumentality of the County; and

    (3)   incorporated for the sole purpose of serving as the County’s Green Bank.

  (b)   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 applicable provisions of the Financial Institutions Article of the Maryland Code.

  (c)   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 a copy of each adopted amendment to the Executive and Council within 5 days after adoption.

  (d)   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 a recorded vote of the Board for a reason expressly listed in the state law.

**Sec. 18A-49. Work program; staff; support from County Government.**

  (a)   The Board of Directors must adopt a work program each year to advance the policy objectives and perform the activities listed in Section 18A-44.

  (b)   The Green Bank’s work program may include a plan for sponsorship of private investment, marketing, and advocacy initiatives.

  (c)   The Board must meet with the Executive and the Committee of the Council that oversees environmental sustainability, at least annually.

  (d)   The Department of Environmental Protection 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.

  (e)   Funding sources for the Green Bank may include:

    (1)   federal or State funds provided to it;

    (2)   County funds, including a portion of the fuel-energy tax revenue received by the County, provided that any funds given to the Green Bank under Chapter 52, Sec. 52-14 must only be used to promote the investment in clean energy technologies and to provide financing for clean energy technologies, including renewable energy and energy efficiency projects and must not be used for resiliency activities;

    (3)   charitable gifts, grants, or contributions, investments, and loans from individuals, corporations, university endowments, and philanthropic foundations; and

    (4)   earnings and interest derived from its investments and financing support for climate change mitigation and adaptation activities backed by the Green Bank.

The Green Bank may also raise private funds and may accept services from any source consistent with its purpose.

  (f)   Restrictions on County funding.  After July 1, 2023, the Green Bank must not use the annual direct appropriations from the County to fund new mechanical energy equipment that uses fossil fuels or the equipment that upgrades the efficiency of existing mechanical energy equipment that uses fossil fuels. The Green Bank must use the annual direct appropriations from the County as follows:

    (1)   20% of the funds must be used to support the Bank’s activities in Equity Emphasis Areas in the County as defined by the Metropolitan Washington Council of Governments; and

    (2)   15% of the funds must be used to reduce the cost of energy projects undertaken by property owners by a loan subsidy, interest rate buydown, technical assistance, pre-development, blended capital, or other similar tools.

**Sec. 18A-50. Report.**

  The Board of Directors must report annually by December 31 on the activities and finances of the Green Bank to the Executive and Council. The report must include details about the use and fund balance of County funds.

  (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; 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 Council and County Executive by June 30, 2016 with recommendations on implementing Chapter 18A, Article 7, including any proposed amendments to County Law.”

### Article 8. Community Choice Aggregation.

**Sec. 18A-51. Definitions.**

  In this Article, the following words have the meanings indicated:

  Community Choice Aggregator or CCA has the meaning set forth in Maryland Code § 1-101 of the Public Utilities Article, as amended.

  Director means the Director of the Department of Environmental Protection.

**Sec. 18A-52. Established.**

  (a)   There is within the Department of Environmental Protection a Community Choice Aggregator, as authorized under Maryland Code § 7-510.3 of the Public Utilities Article, as amended, to promote and facilitate the provision of clean and renewable energy to residential and small commercial electric customers within the County.

  (b)   The Director, or their designee, is responsible for all operations and functions of the CCA.

  (c)   The CCA must have the capacity to serve as the electric aggregator for the purpose of negotiating the purchase of electric generation services from an electricity supplier or from an electric generating or storage facility, or providing electricity from an electric generating facility owned by the aggregator for all residential and small commercial electric customers, all as defined in Maryland Code § 1-101 and § 7-510.3 of the Public Utilities Article, as amended, in the County and provide to its customers a percentage of renewable content that exceeds the amount required by the State’s renewable energy portfolio standards, as set forth in Subtitle 7 of the Public Utilities Article of the Maryland Code, and applicable regulation.

  (d)   In its operations, the CCA must prioritize sustainability, cost-efficiency, stability, and predictability in the provision of electricity.

**Sec. 18A-53. Electricity supply procurement.**

  The purchase of electric service by the CCA or by a contractor purchasing electric service on behalf of the CCA is exempt from Chapter 11B, other than Article XII.

**Sec. 18A-54. Aggregation Plan Notice to County Council.**

  (a)   Except as provided in Section 18A-54(b), at least 30 days before filing an Aggregation Plan or Aggregation Plan Changes with the Maryland Public Service Commission for approval as required under Maryland Code § 7-510.3 of the Public Utilities Article and Code of Maryland Regulations Sections 20.63.11.02 and 20.63.11.03, the Director must transmit the proposed Aggregation Plan or Aggregation Plan Changes to the County Council.

  (b)   If the Director transmits an Aggregation Plan or Aggregation Plan Changes to the County Council between July 15th and August 31st of a calendar year, the Director must not file the Aggregation Plan or Aggregation Plan Changes with the Maryland Public Service Commission until after September 30th of the same year. If the Director transmits an Aggregation Plan or Aggregation Plan Changes to the County Council between November 15th and December 31st of a calendar year, the Director must not file the Aggregation Plan or Aggregation Plan Changes with the Maryland Public Service Commission until after January 31st of the next year.