In this subtitle the following words have the meanings indicated. “Administration” means the Maryland Energy Administration. “Advanced clean energy” includes: solar photovoltaic technology; solar heating; geothermal; wind; biofuels; ethanol; renewable chemical production; other qualifying biomass as defined in § 7–701 of the Public Utilities Article; ocean, including energy from waves, tides, currents, and thermal differences; a fuel cell that produces energy with reduced greenhouse gas emissions as compared to conventional technology; energy efficiency and conservation; combined heat and power; energy storage and battery technologies; grid modernization, including the use of artificial technology and integrated systems for energy demand response, demand management technology, and improved energy distribution; biotechnology in clean energy and for the reduction of direct and indirect agricultural emissions; carbon dioxide removal and management or reuse; clean fuels and displacement of energy–intensive products; transportation electrification and mobility technologies; new concepts to improve safety and reduce the cost of nuclear power; carbon–free generation technologies; any other technology or service that the Center determines will contribute directly or indirectly to the production of energy from renewable or sustainable sources, or to the improvement of efficiency in the use of energy; and deployment of any of the technologies or services listed in items (1) through (21) of this subsection. “Board” means the Board of Directors of the Center. “Bond” means a bond issued by the Center under this subtitle. “Bond” includes a revenue bond, a revenue refunding bond, a note, and any other obligation, whether a general or limited obligation of the Center. “Center” means the Maryland Clean Energy Center. “Clean energy innovation” means in–State development and deployment of advanced clean energy technologies that address the goals of: energy efficiency in all economic sectors; carbon–free generation of electrical power; and the reduction of direct and indirect greenhouse gas emissions in all economic sectors. “Cost”, with respect to a project financed under this subtitle, includes: the purchase price of a project; the cost to acquire any right, title, or interest in a project; the cost of any improvement; the cost of any property, right, easement, and franchise; the cost of demolition, removal, or relocation of structures; the cost of acquiring land to which the structures may be moved; the cost of equipment; financing charges; interest before and during construction and, if the Center determines, for a limited period after the completion of construction; reserves for principal and interest and for improvements; the cost of revenue and cost estimates, architectural, engineering, financial, and legal services, plans, specifications, studies, surveys, and other expenses necessary or incident to determining the feasibility of improving a project; and other expenses as necessary or incident to: financing a project; acquiring and improving a project; and placing a project in operation. “Director” means the Director of the Administration. “Executive Director” means the Executive Director of the Maryland Clean Energy Center. “Finance” includes refinance. “Governmental unit” means: a county; a municipal corporation; a State unit; a local unit; or any other public body or unit established in accordance with a State or local law, ordinance, or resolution. “Improve” means to add, alter, construct, equip, expand, extend, improve, install, reconstruct, rehabilitate, remodel, or repair. “Improvement” means addition, alteration, construction, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair. With respect to Parts I through VI of this subtitle: “project” means any property, the acquisition or improvement of which the Board, in its sole discretion, determines by resolution will accomplish at least one of the purposes listed in § 10–802(b) of this subtitle, whether or not the property: is or will be used or operated for profit or not for profit; is or will be located on a single site or multiple sites; or may be financed by bonds, the interest on which is exempt from income taxation under federal law; and “project” includes: land or an interest in land; structures, equipment, furnishings, rail or motor vehicles, barges, and boats; property and rights related to property, appurtenances, rights–of–way, franchises, and easements; property that is functionally related and subordinate to a project; and patents, licenses, and other rights necessary or useful in the improvement or operation of a project. “Revenues” means the income, revenue, and other money the Center receives from or in connection with a project, and all other income of the Center. “Revenues” includes grants, rentals, rates, fees, and charges for the use of the services furnished or available. “State agency” means any permanent or temporary State office, department, division or unit, bureau, board, commission, task force, authority, institution, State college or university, and any other unit of State government, whether executive, legislative, or judicial, and any subunits of State government. “Trust agreement” means an agreement entered into by the Center to secure a bond. “Trust agreement” may include a bond contract, bond resolution, or other contract with or for the benefit of a bondholder.

The General Assembly finds that: the United States as a whole, and the State in particular, are facing increased energy costs based on many factors, including rising fuel costs, limited investment in generation and transmission facilities, and a complex combination of market–based and other regulatory mechanisms that balance environmental, economic, health, and welfare interests; continued exclusive reliance on traditional forms of electricity supply entrenches the State’s dependence on fossil fuels, working against the State’s policy of decreasing greenhouse gas production, as evidenced by the State’s accession to the Regional Greenhouse Gas Initiative; “advanced clean energy”, a broad term that includes a wide and varied mixture of strategies and techniques to produce useful energy from renewable and sustainable sources in a manner that minimizes fossil fuel use and harmful emissions, and to increase the efficient use of energy derived from all sources, offers many different opportunities for residents of the State to succeed in entrepreneurial and other commercial activity, to the overall economic and environmental benefit of the entire State, as measured in improved air and water quality, moderated energy expenditures, and increased State and local tax receipts; many individuals and businesses in the State possess talents and interest in the clean energy technology sector, which may form the basis for encouraging development and deployment of sustainable and renewable energy technologies in the State, the nation, and the world; the State will benefit from a targeted effort to establish and incubate advanced clean energy industries and clean energy innovation industries in the State, including financial assistance, information sharing, and technical support for entrepreneurs in the manufacture and installation of advanced clean energy technology and clean energy innovations; and it is in the public interest to establish a public corporation to undertake the tasks of promoting advanced clean energy industries and clean energy innovation industries in the State, developing incubators for those industries, providing financial assistance, and also providing information sharing and technical assistance. The purposes of this subtitle are to: encourage the development of advanced clean energy industries and clean energy innovation industries in the State; encourage the deployment of advanced clean energy technologies and clean energy innovations in the State; help retain and attract business activity and commerce in the advanced clean energy technology industry and clean energy innovation industry sectors in the State; promote economic development; designate the Maryland Clean Energy Center as a green bank for the State; encourage the Center to work in conjunction with other local and private green banks; and promote the health, safety, and welfare of residents of the State. The General Assembly intends that: the Center operate and exercise its corporate powers in all areas of the State; without limiting its authority to otherwise exercise its corporate powers, the Center exercise its corporate powers to assist governmental units and State and local economic development agencies to contribute to the expansion, modernization, and retention of existing enterprises in the State as well as the attraction of new business to the State; the Center cooperate with private industries and local governments in maximizing new economic opportunities for residents of the State; and the Center accomplish at least one of the purposes listed in subsection (b) of this section and complement existing State marketing and financial assistance programs by: owning projects; leasing projects to other persons; or lending the proceeds of bonds to other persons to finance the costs of acquiring or improving projects that the persons own or will own.

This subtitle shall be liberally construed to carry out its purposes. This subtitle may not be construed to limit or restrict the duties, programs, or authority of the Maryland Energy Administration.

There is a Maryland Clean Energy Center. The Center is a body politic and corporate and is an instrumentality of the State. The exercise by the Center of the powers conferred by this subtitle is the performance of an essential governmental function. The purposes of the Center are to: promote economic development and jobs in the advanced clean energy industry and clean energy innovation industry sectors in the State; promote the deployment of advanced clean energy technology and clean energy innovations in the State; serve as an incubator for the development of the advanced clean energy industry and clean energy innovation industry in the State; in collaboration with the Administration, collect, analyze, and disseminate industry data; provide outreach and technical support to further the advanced clean energy industry and clean energy innovation industry in the State; and work as a green bank and in conjunction with local and private green banks. It is the intent of the General Assembly that, as the Center develops programs and activities under this subtitle, the Center and the Administration shall work collaboratively together, as appropriate, in order to coordinate shared–interest functions and avoid duplication of efforts.

A Board of Directors shall manage the Center and exercise its corporate powers. The Board consists of the following nine members: the Director, or the Director’s designee; the Director of the Maryland Energy Innovation Institute, or the Director of the Maryland Energy Innovation Institute’s designee; and seven members appointed by the Governor with the advice and consent of the Senate: one representing the nonprofit advanced clean energy research sector of the State; two with expertise in capital financing; two representing advanced clean energy industries in the State; one consumer member; and one member of the general public. A member of the Board shall reside in the State. In making appointments to the Board, the Governor shall consider: diversity; and all geographic regions of the State. A member of the Board: may not receive compensation as a member of the Board; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The term of an appointed member is 4 years and begins on July 1. The terms of the appointed members are staggered as required by the terms provided for members on October 1, 2008. At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position.

From among the members of the Board: the Governor shall appoint a chair; and the Board shall elect a vice chair and a treasurer.

The Board shall determine the times and places of its meetings. A majority of the appointed and qualified members of the Board is a quorum. The Board may act with an affirmative vote of a majority of the appointed and qualified members of the Board.

The Board shall establish an Advisory Committee. The Advisory Committee consists of individuals that the Board considers will assist the Center in studying and developing policies to further the purposes of this subtitle. The Board shall establish a Financing Investment Advisory Committee. The Financing Investment Advisory Committee consists of individuals with knowledge and expertise in financing matters relevant to borrower eligibility, terms and conditions of support, and other financing evaluation criteria of the Center. Before the Center provides financing for a project, including a project to be funded by the Maryland Energy Innovation Fund under § 10–835 of this subtitle, the Financing Investment Advisory Committee shall review and make recommendations to the Board for qualifying project applicants. The Maryland Economic Development Corporation and other State economic development units may provide resources and expertise to the Financing Investment Advisory Committee and the Center to assist in evaluating projects, coordinating financing for projects, and other matters. The Board may establish other committees as appropriate. The membership of a committee may include individuals who are not Board members. The Board may establish the term and manner of selection of the membership of a committee.

Subject to the approval of the Governor, the Board shall appoint an Executive Director. The Executive Director serves at the pleasure of the Board. The Board shall determine the salary of the Executive Director. The Executive Director is the chief administrative officer of the Center. The Executive Director shall manage the administrative affairs and technical activities of the Center in accordance with policies and procedures that the Board establishes. The Executive Director, or the Executive Director’s designee, shall: attend all meetings of the Board; act as secretary to the Board; keep minutes of all proceedings of the Board; approve all salaries, per diem payments, and allowable expenses of the Center, its employees, and its consultants; approve any expenses incidental to the operation of the Center; and perform the other duties that the Board directs in carrying out this subtitle.

The Attorney General is the legal advisor to the Center. With the approval of the Attorney General, the Center may retain any necessary lawyers.

The Center may retain any necessary accountants, engineers, financial advisors, or other consultants.

Except as provided in subsections (b), (c), and (e) of this section, the Center is exempt from Title 10 and Division II of the State Finance and Procurement Article. The Center is subject to: the Public Information Act; and the Open Meetings Act. For purposes of the Open Meetings Act, a project site visit or educational field tour may not be considered a meeting of the Center if no organizational business is conducted. The Board and the officers and employees of the Center are subject to the Public Ethics Law. The officers and employees of the Center are not subject to the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System. The Center, its Board, and employees are subject to Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State Finance and Procurement Article. The Center is a public body under Title 5, Subtitle 4 of this article, the Maryland Industrial Development Financing Authority Act, for purposes of applying for, receiving, and making agreements in connection with: a loan; a grant; insurance; or any other form of financial assistance.

A finding by the Board concerning the public purpose of an action, the legislative intent expressed under this subtitle, or the appropriateness of the action in serving the public purpose and satisfying the legislative intent is conclusive in a proceeding that involves the validity or enforceability of: an agreement entered into by the Center under this subtitle; a bond; or any security relating to a bond.

The Center shall establish a system of financial accounting, controls, audits, and reports. The fiscal year of the Center begins on July 1 and ends on the following June 30.

The Center may create and administer the accounts that it requires. The Center shall deposit its money into a State or national bank or a federally insured savings and loan association that has a total paid–in capital of at least $1,000,000. The Center may designate the trust department of a State bank, national bank, or savings and loan association as a depository to receive securities that the Center owns or acquires. Unless an agreement or covenant between the Center and the holders of its obligations limits classes of investments, the Center may invest its money in bonds or other obligations of, or guaranteed as to principal and interest by, the United States, the State, or a governmental unit.

The Executive Director and each other officer authorized by the Center may: allow copies to be made of the minutes and records of the Center; and certify records under seal showing that the copies are true copies. A person may rely on the certified record. The records of the Center are public records subject to reasonable inspection.

The Center may: adopt bylaws for the conduct of its business; adopt a seal; maintain offices at a place it designates in the State; accept loans, grants, or assistance of any kind from the federal or State government, a local government, a college or university, or a private source; enter into contracts and other legal instruments; sue or be sued; acquire, purchase, hold, lease as lessee, and use: a franchise, patent, or license; any real, personal, mixed, tangible, or intangible property; or an interest in the property listed in this item; sell, lease as lessor, transfer, license, assign, or dispose of property or a property interest that it acquires; fix and collect rates, rentals, fees, royalties, and charges for services and resources it provides or makes available; create, own, control, or be a member of a corporation, limited liability company, partnership, or other entity, whether operated for profit or not for profit; exercise power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law; and do all things necessary or convenient to carry out the powers granted by this subtitle.

The Center may make grants to or provide equity investment financing for advanced clean energy technology–based businesses and clean energy innovation businesses.

The Center may: acquire, develop, improve, manage, market, license, sublicense, maintain, lease as lessor or lessee, or operate a project in the State to carry out its purposes; acquire, directly or indirectly, from a person or governmental unit, by purchase, gift, or devise any property, rights–of–way, franchises, easements, or other interests in land, including submerged land and riparian rights: as necessary or convenient to improve or operate a project to carry out its purposes; and on the terms and at the prices that it considers reasonable; and enter into a project with a manufacturer to carry out its purposes.

The Center may enter into financing transactions with, on behalf of, or for the benefit of any State agency for the purposes of a project on State–owned or State–leased property. Financing under this section: may be in any form, including bonds, loans, grants, energy performance contracts, shared energy savings contracts, participation agreements, lease agreements, and reimbursement agreements; but may not pledge the faith and credit of the State. The Department of General Services and the Department of Budget and Management shall work with the Center to ensure that financing transactions under this section are efficient and cost–effective for the State.

The Center may: borrow money and issue bonds to finance any part of the cost of a project or for any other corporate purpose of the Center; secure the payment of any portion of the borrowing by pledge of or mortgage or deed of trust on property or revenues of the Center; combine projects for financing, make agreements with or for the benefit of the bondholders or with others in connection with the issuance or future issuance of bonds, as the Center considers advisable; and otherwise provide for the security of bonds and the rights of bondholders.

The Center may disseminate information and materials pertinent to advanced clean energy technology, clean energy innovation, financing, and development in the State, for persons engaged in the advanced clean energy and clean energy innovation industries as developers, manufacturers, and installers, as well as for consumers and financial institutions, including information on available federal, State, and private financial assistance and technical assistance. The Center may: cooperate with and provide assistance to local governments, instrumentalities, and research entities in the State; and coordinate advanced clean energy technology and clean energy innovation development, education, and deployment activities with programs of the federal government and of governmental units and public and private entities in and outside the State. The Center may conduct the activities under this section in consultation with the Administration. The Maryland Environmental Service, the Maryland Economic Development Corporation, and other State economic development units shall cooperate with the Center and may make available to the Center resources and expertise for the evaluation of project financing and coordination of financing between the Center and other economic development units.

The Center is exempt from State and local taxes.

The books and records of the Center are subject to audit: at any time by the State; and each year by an independent auditor. The Center shall publish its annual audits on its website.

On or before December 1 of each year, the Center shall report to the Governor, the Administration, and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The report shall include: a complete operating and financial statement covering the Center’s operations; a summary of the Center’s activities during the preceding fiscal year; a summary of the Center’s activities specific to clean energy innovation; and a summary of the Center’s activities specific to the Green and Renewable Energy Efficiency for Nonprofits Loan Program established under § 10–863 of this subtitle, including: the total number of loans awarded; the total monetary value of the loans awarded; the average term of loans in the loan portfolio; the estimated annual energy savings, in kilowatt–hours, resulting from measures associated with loans in the loan portfolio; and the estimated reduction of greenhouse gas emissions, in metric tons, associated with loans in the loan portfolio.

In this part the following words have the meanings indicated. “Academic institution” means a public senior higher education institution or an independent institution of higher education in the State, as those terms are defined in § 10–101 of the Education Article. “Fund” means the Maryland Energy Innovation Fund. “Institute” means the Maryland Energy Innovation Institute. “Institute Board” means the Advisory Board of the Maryland Energy Innovation Institute. “Institute Director” means the Director of the Maryland Energy Innovation Institute.

There is a Maryland Energy Innovation Institute. The Institute is a part of the A. James Clark School of Engineering of the University of Maryland. The A. James Clark School of Engineering shall manage the Institute according to the policies of the University of Maryland and the University System of Maryland with the advice of the Institute Board. The purposes of the Institute are to: collaborate with academic institutions in the State to participate in advanced clean energy and clean energy innovation programs; and develop and attract private investment in clean energy innovation and commercialization in the State. The exercise by the Institute of the powers conferred by this part is the performance of an essential governmental function.

There is an Advisory Board of the Institute. The Institute Board advises the University of Maryland on the management of the Institute. The Institute Board consists of the following nine members: the chair of the Board of Directors of the Maryland Clean Energy Center; the Director; and seven members selected by the University of Maryland based on expertise in energy technology commercialization, the advanced clean energy industry, the clean energy innovation industry, venture capital financing, and energy research. A member of the Institute Board: may not receive compensation as a member of the Institute Board; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. From among its members, the Institute Board shall elect a chair and a vice chair.

The Institute Board shall determine the times and places of its meetings. Seven members of the Institute Board are a quorum. The Institute Board may act with an affirmative vote of five members.

The Director of the University of Maryland Energy Research Center, a University of Maryland faculty member, shall be the Director of the Institute. The Institute Director shall appoint an Associate Director who shall be a University of Maryland faculty member. The Institute Director, or the Institute Director’s designee, shall: attend all meetings of the Institute Board; act as secretary to the Institute Board; keep minutes of all proceedings of the Institute Board; approve all salaries, per diem payments, and allowable expenses of the Institute, its employees, and its consultants; approve any expenses incidental to the operation of the Institute; and perform the other duties the Institute Board directs in carrying out this part.

The Institute may retain any staff or consultants.

The Institute may: maintain offices at the University of Maryland, College Park campus; coordinate and promote energy research and education at the University of Maryland, College Park campus, including its relevant energy centers, as well as at other academic institutions; provide energy policy innovation advice to State and federal units; collaborate with other academic institutions, governmental units, foundations, and industrial companies for advanced clean energy research and innovation; pursue grants, other funds, and in–kind contributions for advanced clean energy research and innovation; provide seed grant funding to academic institution–based entrepreneurs or entities, in order to promote the commercialization of advanced clean energy technologies developed wholly or partly by an academic institution, but not duplicate existing seed grants made through the Maryland Technology Development Corporation; work with the Maryland Technology Enterprise Institute to jointly manage, operate, and maintain facilities for an advanced clean energy and clean energy innovation incubator at the University of Maryland, College Park campus; work with the Maryland Technology Enterprise Institute to expand Maryland Industrial Partnership Awards to promote the commercialization of advanced clean energy and clean energy innovation technologies developed wholly or partly by an academic institution; work with the Maryland Technology Enterprise Institute and the University of Maryland Office of Technology Commercialization to: identify advanced clean energy and clean energy innovation technologies at academic institutions that may be viable for commercialization; and provide grant funding and investment financing to cover patent, facilities, and other costs not allowed under federal or state research grants to an academic institution–based entrepreneur or entity, in order to promote the commercialization of advanced clean energy and clean energy innovation technologies developed wholly or partly by an academic institution; coordinate incubation and potential financing of academic institution–based entrepreneurs or entities with resources provided by the Center; work closely with State units, industrial partners, nongovernmental organizations, and federal agencies and laboratories to ensure effective implementation and execution of the State’s energy mission and vision, in collaboration with the Administration; undergo periodic reviews every 5 years consistent with University System of Maryland policies; and do all things necessary or convenient to carry out the powers granted by this part. The Institute shall coordinate with the Maryland Technology Development Corporation in supporting Maryland–based technology companies engaged in clean energy innovation. The Institute and the Center shall implement an accelerator program for Maryland–based technology companies engaged in clean energy innovation that features seed funding, training, developmental support for the companies, and pilot projects focused on on–site clean energy generation for buildings. In carrying out their responsibilities under this subsection, the Institute and the Center shall consult with the Department, the Maryland Technology Development Corporation, the Administration, the Department of the Environment, and the Maryland Industrial Partnership Awards program.

There is a Maryland Energy Innovation Fund in the University System of Maryland. The Fund shall be used by the Institute and the Center. The Institute: may use the Fund to: carry out the purposes of this subtitle, including the purposes listed in § 10–834 of this subtitle; purchase advisory services and technical assistance to better support economic development; and pay the administrative, legal, and actuarial expenses of the Institute; and shall use the Fund for the administrative and operating costs of the Center. The Center may use the Fund to: make a grant or a loan under this subtitle, at the rate of interest the Center sets; provide equity investment financing for a business enterprise under this subtitle; and guarantee a loan, an equity, an investment, or any other private financing to expand the capital resources of a business enterprise under this subtitle. The Institute shall manage and supervise the Fund. The Fund is a special, nonlapsing revolving fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated by the State to the Fund; money contributed to the Fund through federal programs or private entities; repayment of principal of a loan made from the Fund; payment of interest on a loan made from the Fund; proceeds from the sale, disposition, lease, or rental by the Center of collateral related to financing that the Center provides from the Fund; premiums, fees, royalties, interest, repayments of principal, and returns on investments paid to the Center by or on behalf of: a business enterprise in which the Center has made an investment from the Fund; or an investor providing an investment guaranteed by the Center from the Fund; recovery of an investment made by the Center in a business enterprise from the Fund, including an arrangement under which the Center’s investment in the business enterprise is recovered through: a requirement that the Fund receive a proportion of cash flow, commission, royalty, or payment on a patent; or the repurchase from the Center of any evidence of indebtedness or other financial participation made from the Fund, including a note, stock, bond, or debenture; repayment of a conditional grant extended by the Center from the Fund; money transferred to the Fund in accordance with § 9–20B–05 of the State Government Article; and any other money made available to the Institute for the Fund. The State Treasurer shall invest the money in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Money expended from the Fund under this subtitle is supplemental to and is not intended to take the place of funding that otherwise would be appropriated for the Center, the Institute, or any part of the University System of Maryland.

The Institute is exempt from State and local taxes.

The books and records of the Institute are subject to audit: at any time by the State; and each year by an independent auditor that the Office of Legislative Audits approves.

The Institute and the Center are independent entities that are not liable or responsible for each other’s debts, liabilities, bonds, or obligations.

On or before October 1 each year, the Institute shall report to the Governor, the Administration, and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The report shall include: a complete operating and financial statement covering the Institute’s operations; a summary of the Institute’s activities during the preceding fiscal year; and a summary of: the annual increase in the number of clean energy innovation businesses in the State; federal funding awarded for clean energy innovation and commercialization in the State; and private sector investment in clean energy innovation and commercialization in the State.

The Center may periodically: issue bonds for any corporate purpose, including operating expenses; refund those bonds; purchase its bonds with any funds available; and hold, pledge, cancel, or resell bonds. By resolution, the Board may authorize the chair, vice chair, one of its members, or a committee of its members to determine, provide for, or approve any matters relating to bonds that the Board considers appropriate including: specifying, determining, prescribing, and approving matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds; creating security for the bonds; providing for the administration of bond issues; and taking other actions it considers appropriate concerning the bonds. The power granted in paragraph (2) of this subsection is in addition to powers conferred on the Board by this subtitle and does not limit any power of the Board under this subtitle. Subject to subparagraph (ii) of this paragraph, the Board may authorize the Executive Director to take any of the actions described in paragraph (2) of this subsection. If the Board authorizes the Executive Director to take any of the actions described in paragraph (2) of this subsection, the Board shall prescribe limits within which the Executive Director may exercise discretion. Except as otherwise provided by the Center, each issue of its bonds is a general obligation of the Center payable from any revenues or money of the Center that are available and not otherwise pledged. The provisions of paragraph (1) of this subsection are subject to any agreements with: holders of particular bonds pledging any particular revenues or money; and any participating institution. For each issue of its bonds, the Center shall pass a resolution that: specifies and describes the project for which the proceeds of the bond issuance are intended; generally describes the public purpose and the financing transaction to be accomplished; specifies the maximum principal amount of the bonds that may be issued by the Center; and imposes any terms or conditions on the issuance and sale of the bonds that the Center considers appropriate. Subject to any provision for their registration, bonds are negotiable instruments for all purposes regardless of whether they are payable from a special fund. The bonds may be: serial bonds; term bonds; or both in the discretion of the Center. Subject to any delegation under subsection (a)(2) of this section, the resolution authorizing bonds may provide: the dates of the bonds; the maturity dates of the bonds; the interest rates on the bonds; the time at which the bonds will be payable; the denominations of the bonds; whether the bonds will be in a coupon or registered form; any registration privileges of the bonds; the manner of execution of the bonds; the place at which the bonds will be payable; and any terms of redemption of the bonds. The bonds shall mature within a period not to exceed 50 years after their date. The bonds shall be payable in United States currency. The bonds may be sold by competitive or negotiated sale at a price determined by the Center. Pending preparation of the definitive bonds, the Center may issue interim receipts or certificates that will be exchanged for definitive bonds. A trust agreement authorizing bonds may contain provisions that are part of the contract with the bondholders. The provisions may include: pledging the following to secure payment of bonds, subject to any existing agreements with bondholders: the full faith and credit of the Center; the full faith and credit of a participating institution; revenues of a project; a revenue–producing contract the Center has made with a person or public entity; or the proceeds of the sale of bonds; the rentals, fees, and other charges, the amounts to be raised in each year, and the use and disposition of the revenues; the setting aside of reserves and sinking funds and their disposition; limits on the right of the Center or its agents to restrict and regulate the use of a project; limits on the purpose to which the proceeds of sale of bonds may be applied; limits on issuing additional bonds, the terms under which additional bonds may be issued and secured, and refunding outstanding bonds; the procedure to amend or abrogate the terms of a contract with bondholders and the requirements for consent; limits on the amount of project revenues to be expended for operating, administrative, or other expenses of the Center; the acts or omissions that constitute default by the Center and the rights and remedies of the bondholders in the event of a default; the conveyance or mortgaging of a project and its site to secure the bondholders; and creation and disposition of a collateral fund, instead of conveyance or mortgage, for the purpose of securing the bondholders. The members of the Board and a person executing the bonds may not be held liable personally on the bonds.

The Center may secure bonds by a trust agreement. The corporate trustee under a trust agreement may be a trust company or a bank that has the powers of a trust company in or outside the State. In addition to the provisions described in § 10–840(h) of this subtitle, the trust agreement may contain: either: a provision conveying or mortgaging all or a portion of the project; or a provision creating a collateral account; other provisions that the Center considers reasonable and proper for the security of bondholders; and a provision that restricts the individual right of action by bondholders. An expense incurred in carrying out the trust agreement or a resolution may be treated as part of the cost of the operation of a project.

Bonds are securities: in which any of the following persons may legally and properly invest money, including capital that the person owns or controls: an officer or unit of the State or a political subdivision; a bank, trust company, savings and loan association, investment company, or other person conducting a banking business; an insurance company, insurance association, or other person conducting an insurance business; a personal representative, guardian, trustee, or other fiduciary; and any other person; and that may be deposited with and received by a unit of the State or a political subdivision for any purpose for which the deposit of bonds or obligations of the State is authorized by law.

A bond: is not: a debt or liability of the State or a political subdivision of the State; or a pledge of the faith and credit of the State or a political subdivision of the State; and is payable solely from money available in accordance with this subtitle. Each bond shall state on its face that: the State and its political subdivisions are not obliged to pay the bond or the interest on the bond except from revenues of the project or the portion of the project for which the bond is issued; and the faith, credit, and taxing power of the State and its political subdivisions are not pledged to pay the principal of or the interest on the bond. The issuance of bonds does not directly, indirectly, or contingently obligate the State or its political subdivisions: to levy or pledge a tax to pay the bonds; or to make an appropriation to pay the bonds. This section does not prevent the Center from pledging its full faith and credit to pay bonds.

The Center may: fix and collect rates, rents, fees, and charges for the use of a project and for the services furnished or to be furnished by a project; and contract with a person or governmental entity to exercise its authority under this section. The rates, rents, fees, and charges established by the Center under this section shall be fixed and adjusted so that the aggregate amount of the rates, rents, fees, and charges from the project, when added to other available money, is sufficient to: pay for maintaining, repairing, and operating the project; pay the principal of and the interest on the bonds that the Center issued for the project as they become due and payable; and create and maintain reserves required or provided for in a trust agreement. The rates, rents, fees, and charges established by the Center under this section are not subject to supervision or regulation by any unit of the State other than the Center.

Any pledge of revenues and other money under § 10–840(h) of this subtitle is valid and binding from the time the pledge is made. The revenue or money that the Center pledges and receives is subject immediately to the lien of the pledge. Neither physical delivery of the revenue or money nor any other act is required to validate the lien. The lien of the pledge is valid and binding against each party with a claim against the Center in tort, contract, or otherwise, regardless of whether the party has notice of the lien. The trust agreement and any other agreement or lease creating a pledge under this section need not be filed or recorded, except in the records of the Center.

Proceeds from the sale of bonds and other revenues received under this subtitle are trust funds to be held and applied solely as provided in this subtitle. Each officer, bank, or trust company that receives money from the Center under this subtitle shall act as trustee of the money and shall hold and apply the money for the purposes specified under this subtitle. The officer, bank, or trust company holding money is subject to: any regulation adopted under this subtitle; and the trust agreement securing the bonds.

The Center may issue bonds to refund outstanding bonds of the Center, including paying: any redemption premium; interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and if considered advisable by the Center, any part of the cost of acquiring or improving a project. Refunding bonds may be issued for any corporate purpose, including: realizing savings in the effective costs of debt service, directly or through a debt restructuring; or alleviating a potential or actual default. A refunding bond that the Center issues under this section shall be issued in the same manner and is subject to this subtitle to the same extent as any other bond. The Center may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded. In addition to other sources of payment that the Center determines, refunding bonds may be payable from escrowed bond proceeds and earnings and profits on investments. Escrowed bond proceeds and earnings and profits on investments used under subparagraph (i) of this paragraph constitute revenues of a project under this subtitle.

The Center may issue negotiable bond anticipation notes in anticipation of the sale of bonds for any corporate purpose. Bond anticipation notes issued under this section shall be issued in the same manner as bonds. Bond anticipation notes issued under this section and the resolution authorizing them may contain any provisions, conditions, or limitations that may be included in a trust agreement. The Center may issue bond anticipation notes to pay any other bond anticipation notes. Bond anticipation notes shall be paid from: revenues of the Center; money available and not otherwise pledged; or the proceeds of the sale of the bonds in anticipation of which the notes were issued.

The Center shall convey title to a project and release collateral in accordance with this section when the following conditions are met: the principal of and interest on bonds issued to finance the project, including any refunding bonds, have been fully paid and retired; or adequate provision has been made to fully pay and retire the bonds; all other conditions of the trust agreement have been satisfied; and the lien of the trust agreement has been released. On satisfaction of the conditions under subsection (a) of this section, the Center promptly shall execute any deeds, conveyances, releases, and documents and take any other action necessary to convey title to the project to the participating institution and release collateral free of all liens and encumbrances created through the Center.

A bondholder, a holder of any coupons attached to bonds, or a trustee under a trust agreement securing the bonds may sue to: protect and enforce rights under the laws of the State or a trust agreement; and enforce and compel the performance of duties by the Center or its officer, employee, or agent that this subtitle or a trust agreement requires, including fixing and collecting rates, rents, fees, and charges that the trust agreement requires. The rights under this section are subject to any trust agreement.

The Center, its agent, or its lessee is not required to pay a tax or assessment on: a project or property that it acquires or uses under this subtitle; or the income from that project or property. The principal of and interest on bonds, the transfer of bonds, and any income derived from the bonds, including profits made in their sale or transfer, are forever exempt from all State and local taxes.

In this part the following words have the meanings indicated. “Fund” means the Climate Catalytic Capital Fund. “Low– to moderate–income household” means a household located in a census tract with an average median income at or below 80% of the average median income for the State. “Qualified project” means a project related to the purposes specified in § 10–855(b) of this subtitle.

There is a Climate Catalytic Capital Fund. The purpose of the Fund is to promote geographical impact remedies and to leverage increased private capital investment in technology development and deployment, including project planning, to: reduce greenhouse gas emissions and enable the adoption of measures to combat climate impacts; facilitate the electrification of the transportation sector and the use of sustainable alternative fuels in aviation; enable improvements in energy management and efficiency to reduce greenhouse gas emissions from the building sector; expand the deployment of clean energy generation and energy storage capacity; target the implementation of energy and weatherization measures for low– to moderate–income households; optimize the economic, health, social, and environmental value of community–scale infrastructure for resilience and energy equity; allow for the deployment of advanced clean energy technology; and provide for the creation of a Maryland Green Bond program. The Center shall administer the Fund. The Center shall establish a Fund Oversight Committee, appointed by the Board, to manage the Fund. The Fund consists of: money appropriated in the State budget to the Fund; money made available to the Fund through private contributions and federal grants or programs; proceeds from the sale, disposition, lease, or rental of collateral related to financing made from the Fund; repayment of financing made from the Fund; returns from or recovery of any financing made from the Fund; proceeds from the sale of any financing made, or assets acquired with proceeds, from the Fund; interest earnings on money in the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only to: evaluate and coordinate financing for qualified projects and clean energy technologies related to the purposes specified under subsection (b) of this section; provide financing for qualified projects; facilitate efficient tax equity markets for qualified projects; secure private investment capital for financing of qualified projects; make grants to other green banks in the State for the purpose of financing qualified projects; and subject to paragraph (2) of this subsection, administer the Fund and activities of the Center in carrying out this part. Not more than 5% of the Fund balance may be used for administrative purposes. The Fund may not be used for a project to install new equipment that uses fossil fuels or improve the efficiency of existing equipment that uses fossil fuels. Expenditures from the Fund may be made only with the approval of the Fund Oversight Committee. Except as provided in subparagraph (ii) of this paragraph, in each fiscal year at least 40% of the Fund balance shall be used for qualified projects in communities with low– to moderate–income households. In any fiscal year that there are not sufficient applications for qualified projects in communities with low– to moderate–income households, the Fund Oversight Committee may authorize funding that would otherwise be reserved under subparagraph (i) of this paragraph to be used for other qualified projects. The Fund shall be subject to independent audit. On or before December 1 each year, the Center shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the use of the Fund and outcomes of investments made from the Fund. For fiscal years 2024, 2025, and 2026, the Governor shall include in the annual budget bill an appropriation of $5,000,000 to the Fund.

In this part the following words have the meanings indicated. “Climate technology” includes: solar energy; wind energy; energy storage devices; grid modernization; carbon capture utilization and storage; and any other technology defined by the Center that: reduces greenhouse gas emissions; mitigates the impacts of climate change; or provides a negative emission benefit in the electric, oil, or gas sector. “Fund” means the Climate Technology Founder’s Fund. “Qualified project” means a project related to climate technology.

There is a Climate Technology Founder’s Fund. The purpose of the Fund is to provide early–stage funding for start–up companies focused on qualified projects in climate technologies. The Center shall administer the Fund. The Center shall establish a Fund Oversight Committee, appointed by the Board, to manage the Fund. The Fund consists of: money appropriated in the State budget to the Fund; money made available to the Fund through private contributions and federal grants or programs; proceeds from the sale, disposition, lease, or rental of collateral related to financing made from the Fund; repayment of financing made from the Fund; returns from or recovery of any financing made from the Fund; proceeds from the sale of any financing made or assets acquired with proceeds from the Fund; money transferred from the Maryland Strategic Energy Investment Fund under § 9–20B–05 of the State Government Article; interest earnings on money in the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only to: evaluate and coordinate financing for qualified projects related to the purpose of the Fund; provide financing to qualified projects; secure private investment capital for financing of qualified projects; and subject to paragraph (2) of this subsection, administer the Fund and the activities of the Center in carrying out this part. Money in the Fund may be allocated as follows: up to $1,720,000 for direct investments of the Fund; up to $3,280,000 for the Maryland Clean Energy Center and the Maryland Energy Innovation Accelerator tech support programs; and up to $2,000,000 for Maryland Energy Innovation Institute seed grants. Subject to paragraphs (2) and (3) of this subsection, in determining the qualified projects to receive investment from the Fund, the Center shall give preference to companies that are small, minority, women–owned, and veteran–owned businesses in the clean energy industry. At least 40% of the funds awarded by the Center shall be used for equity investments in minority, women–owned, and veteran–owned businesses start–up companies. Forty percent of the funding from the Center’s overall appropriation that is allocated for Maryland Energy Innovation Institute seed grants shall be used to provide grants for start–up companies from minority serving institutions. Expenditures from the Fund may be made only with approval of the Fund Oversight Committee. A recipient of financial assistance under this section shall provide matching funds for the qualified project equal to the amount of financial assistance awarded from the Fund by the Center. On or before October 1 each year, the Center shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on the use of the Fund and outcomes of investments made from the Fund.

In this part the following words have the meanings indicated. “Borrower” means a nonprofit organization that applies and qualifies for a loan under the Program. “Fund” means the Green and Renewable Energy Efficiency for Nonprofits Loan Fund. “Nonprofit organization” means an organization that is exempt from federal income tax under § 501(c)(3) of the Internal Revenue Code. “Program” means the Green and Renewable Energy Efficiency for Nonprofits Loan Program. “Qualifying energy system” means a system that: generates electricity or usable thermal energy that is used to meet on–site demand; and assists the State in meeting the environmental and greenhouse gas reduction goals under Title 2, Subtitle 12 of the Environment Article.

There is a Green and Renewable Energy Efficiency for Nonprofits Loan Program in the Center.

The purpose of the Program is to provide financial assistance in the form of no–interest loans to nonprofit organizations for: the planning, purchase, and installation of qualifying energy systems in the State; and actions that improve energy efficiency, such as repairing or replacing windows, doors, and heating, ventilation, and air–conditioning systems and other similar improvements.

The Center shall: manage, supervise, and administer the Program; adopt regulations to ensure that loans provided to nonprofit organizations carry out the purpose of the Program; and attach to any loan specific terms that are considered necessary to ensure that the purpose of the Program is fulfilled.

A borrower must file an application with the Center to receive a loan under the Program. The application must be signed by the chief operating officer or an authorized officer of the nonprofit organization. The application must contain any information the Center determines is necessary, including: the projected cost of the qualifying energy system, energy efficiency action, or technical assistance being financed through the loan; the location of the property where the qualifying energy system will be installed or an energy efficiency action will occur and whether the property is owned or leased by the applicant; evidence that the borrower: is current on its registration status with the Secretary of State at the time the borrower submits the application; or is an exempt organization that is complying with any filing requirements of the Secretary of State related to exempt organizations; or certification that the borrower is not required to register or file as an exempt organization with the Secretary of State because the borrower does not solicit charitable contributions in the State; and any additional information relating to the borrower or the proposed qualifying energy system or energy efficiency action being financed through the loan that may be required by the Center to administer the Program. The Center may approve an application for a loan specified in § 10–867(a)(1) or (3) of this subtitle only if the application demonstrates that the proposed qualifying energy system or energy efficiency action is estimated, based on projected energy costs, to generate energy cost savings over the useful life of the system or energy efficiency action that equal or exceed the total amortized cost of the loan. In approving an application, the Center shall consider and give priority to an applicant that has an annual budget of $1,000,000 or less.

Loans from the Fund may be used for: the purchase and installation of a qualifying energy system, including any necessary ancillary machinery, equipment, or furnishings; technical assistance for the planning and installation of a qualifying energy system; and actions that improve energy efficiency, such as repairing or replacing windows, doors, and heating, ventilation, and air–conditioning systems and other similar improvements. Each borrower for a loan under subsection (a)(1) or (3) of this section shall contribute at least 10% of the cost of the qualifying energy system or energy efficiency action. Loans made under the Program shall be repayable by the borrower in accordance with a schedule set by the Center. The schedule set by the Center may be on a deferred payment basis. A borrower shall provide assurances for the repayment of a loan. The assurances: shall include a promissory note; and may include a plan for repayment. Loans may be made in conjunction with or in addition to financial assistance provided through other State or federal programs.

There is a Green and Renewable Energy Efficiency for Nonprofits Loan Fund. The Center shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The Center shall hold the Fund separately and account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; money transferred from the Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article; money received from any public or private source; interest and investment earnings of the Fund; and repayments and prepayments on loans made from the Fund. In fiscal year 2028, the Governor may include in the annual budget bill an appropriation of $5,000,000 for the Fund. In fiscal year 2029, the Governor may include in the annual budget bill an appropriation equal to at least $5,000,000 minus the amount in the Fund as of June 30 of the immediately preceding fiscal year. The Fund may be used only: to pay the expenses of the Program; and to provide loans to eligible borrowers under the Program. The Center shall invest and reinvest the money of the Fund in the same manner as other State money held by the Center may be invested. Any investment earnings of the Fund shall be paid into the Fund. Any repayment on loans made from the Fund shall be paid into the Fund.

In this part the following words have the meanings indicated. “Borrower” means an eligible State agency, local jurisdiction, nonprofit organization, or eligible business that applies and qualifies for a loan under this Program. “Eligible business” means a commercial enterprise or business that is in good standing with the State Department of Assessments and Taxation and is: incorporated in the State; or registered to do business in the State. “Energy cost savings” means the actual reduction in operating expenses resulting from the installation, operation, and maintenance of a project financed under the Program. “Fund” means the Jane E. Lawton Conservation Fund. “Local jurisdiction” means any county or municipality of the State. “Local jurisdiction” includes: a board of education of a county or municipality; a special district that is established by State law and that operates within a single county; a special district that is established by a county under public general law; and an office, board, or department that is established in a county under State law and that is funded, under State law, at least in part by the county governing body. “Municipality” means any municipal corporation in the State that is subject to the provisions of Article XI–E of the Maryland Constitution or any duly authorized agency or instrumentality of the municipality. “Nonprofit organization” means a corporation, foundation, school, hospital, or other legal entity, no part of the net earnings of which inure to the benefit of any private shareholder or individual holding an interest in the entity. “Program” means the Jane E. Lawton Conservation Loan Program. “Project” means one or more improvements or modifications that enhance the energy efficiency and reduce the operating expenses of a structure located in Maryland.

There is a Jane E. Lawton Conservation Loan Program in the Center.

The purpose of the Program is to provide financial assistance in the form of low interest and zero interest loans to nonprofit organizations, local jurisdictions, State agencies, and eligible businesses for projects to: promote energy conservation; reduce consumption of fossil fuels; improve energy efficiency; enhance energy–related economic development and stability in the nonprofit, commercial, and industrial sectors; and reduce greenhouse gas emissions.

The Center shall: manage, supervise, and administer the Program; ensure that loans are provided only to projects that carry out the purpose of the Program; attach specific terms to any loan that are considered necessary to ensure that the purpose of the Program is fulfilled; and develop procedures for monitoring projects to assess whether the improvements or modifications made by an eligible entity or business that had received a loan under the Program have resulted in a measurable reduction in energy consumption.

To receive a loan under the Program, a borrower must file an application with the Center. If the borrower is an eligible business, the application must be signed by the chief operating officer or an authorized officer of the business. If the borrower is a local jurisdiction, the application must be signed by the chief elected officer of the county or municipality, or if none, by the governing body of the county or municipality in which the project is located. If the borrower is a public school, the application must be signed by the board of education of the county in which the project is located. If the borrower is a State agency, the application must be signed by the head of the State agency. The application shall contain any information the Center determines is necessary, including: the projected cost to accomplish a proposed project; the amount of energy or fuel a proposed project is expected to save over a defined period of time after completion of the project; the anticipated environmental benefits in the form of reduced emissions or pollution attributable to the proposed project; the amount of cost savings expected to be generated over a defined period of time after completion of the proposed project; a description of the borrower’s contribution to a proposed project as required by § 10–867 of this subtitle; and any additional information relating to the borrower or the proposed project that may be required by the Center in order to administer the Program.

Loans from the Fund may be used for: the costs of implementing projects, including the costs of all necessary: technical assessments; studies; surveys; plans and specifications; and start–up, architectural, engineering, or other special services; the costs of procuring necessary technology, equipment, licenses, or materials; and the costs of construction, rehabilitation, or modification, including the purchase and installation of any necessary machinery, equipment, or furnishings. Each borrower shall make a contribution to a project that is of a type and amount acceptable to the Center. A borrower other than a State agency must document that the anticipated energy cost savings to the borrower over a defined period according to a methodology acceptable to the Center after the completion of the project are greater than the total cost of the project to the borrower. Loans made under the Program to a borrower other than a State agency shall: be repayable by the borrower from specified revenues that may include the energy cost savings generated by a project; bear interest at a rate that the Center determines to be necessary and reasonable for the project; and be repayable in accordance with a schedule that the Center sets, which may be on a deferred payment basis. A borrower other than a State agency shall provide assurances for the repayment of a loan. The assurances: shall include a promissory note; and may include superior or subordinate mortgage liens, guarantees of repayment, or other forms of collateral. Loans may be made in conjunction with, or in addition to, financial assistance provided through other State or federal programs.

There is a Jane E. Lawton Conservation Fund. The Center shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The Center shall hold the Fund. The Fund consists of: money appropriated in the State budget to the Program; money received from any public or private source; interest and investment earnings on the Fund; and repayments and prepayments of principal and interest on loans made from the Fund. The Fund may be used only: to pay the expenses of the Program; to provide loans to eligible borrowers and projects; and to enhance the credit of a financing offered by eligible banks and other financial institutions for projects. The Center shall invest and reinvest the money of the Fund in the same manner as other money held by the Center may be invested. Any investment earnings of the Fund shall be paid into the Fund. Any repayment of principal and interest on loans made from the Fund shall be paid into the Fund. The Center shall annually reserve for at least 90 days a portion of the money from the Fund that is available for financial assistance under the Program for loans to nonprofit organizations. In a fiscal year in which requests for financial assistance from nonprofit organizations are less than the amount of money reserved under paragraph (1) of this subsection for the period determined by the Center, the Center may make the unencumbered or noncommitted portion of the reserve available to other borrowers in the Program.

The Center may enter into contracts with third parties to make, service, or settle loans made under this part.

The Center may use the Fund to enhance the credit of a financing offered by a bank or other financial institution for a project. A credit enhancement issued in accordance with subsection (a) of this section shall: carry out the purpose of the Program in a manner the Center considers appropriate; facilitate financing of at least one project of a local jurisdiction, nonprofit organization, or eligible business; and be offered only to a bank or other financial institution in good standing with the State Department of Assessments and Taxation that is: incorporated in the State; or registered to do business in the State. The Center may assess a reasonable fee to a participating bank or financial institution for the administration of this section.

A person may not knowingly make or cause to be made any false statement or report in any document required to be furnished to the Center by any agreement relating to financial assistance. A person applying for financial assistance may not knowingly make or cause to be made any false statement for the purpose of influencing any action of the Center on an application for financial assistance or for the purpose of influencing any action of the Center affecting financial assistance already provided. A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding 1 year or both.

This subtitle may be cited as the “Maryland Clean Energy Center Act”.