This chapter describes the policies and procedures for making loans to and offering credit enhancements that benefit local governments, nonprofits, and eligible businesses from the Jane E. Lawton Conservation Loan Fund. To promote energy efficiency, reduce consumption of fossil fuels, and enhance energy-related economic development and stability in the commercial and industrial, nonprofit, and government sectors, the Jane E. Lawton Conservation Loan Program authorizes the Maryland Energy Administration to: Make low-interest loans to eligible nonprofit organizations, businesses, and local jurisdictions; and Enhance the credit of financings offered by eligible banks and other financial institutions to benefit eligible nonprofit organizations, businesses, and local jurisdictions. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means the Jane E. Lawton Conservation Loan Program set forth in State Government Article, Title 9, Subtitle 20A, Annotated Code of Maryland. “Administration” means the Maryland Energy Administration. “Borrower” means a local jurisdiction, nonprofit organization, or eligible business that applies and qualifies for a loan under the Program. “County” means any of the 23 counties of the State, and the Mayor and City Council of Baltimore, and any authorized agency or instrumentality of a county or counties. “Credit enhancement” means a financial arrangement designed to improve the accessibility or affordability of a financing. “Director” means the Director of the Administration or the Director's designated representative. Eligible Business. “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. “Eligible business” includes a corporation, association, general partnership, limited partnership, joint general partnership, joint venture, or other form of legal organization. “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 Loan Program Fund. “Loan” means an issuance of debt by the Administration to a qualified borrower under the Program. “Local jurisdiction” means any county or municipality of the State and includes the board of education or community college of a county. “Municipality” means any municipal corporation or State-created special taxing district in Maryland subject to the provisions of Article XI-E of the Maryland Constitution, or any 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 or assets 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. “Project” means one or more improvements or modifications that enhance the energy efficiency and reduce the operating expenses of a structure located in Maryland. “Project” does not include improvements or modifications for energy conservation in structures used primarily for religious or fraternal activities. A loan under the Program may be made to: Eligible local jurisdictions; Eligible nonprofit organizations; and Eligible businesses. A borrower for a loan under the Program shall: Have the legal capacity and all necessary legal authority to incur the obligations of a loan under the Program; Provide a complete application to the Administration before the expiration of any applicable deadlines; If the borrower is a business entity, be in good standing with the State Department of Assessments and Taxation and be: Incorporated in the State; or Registered to do business in the State; Pay any fees required by the Administration; and Meet any other requirement deemed appropriate by the Administration. A loan under the Program may be used to pay for: The costs of implementing projects, including the costs of all necessary: Technical assessments; Studies; Surveys; Plans and specifications; and Start-up, architectural, engineering, and other special services; The costs of procuring necessary technology, equipment, licenses, or materials; and The costs of construction, rehabilitation, or modification related to a project including the purchase and installation of necessary machinery, equipment, or furnishings. A loan may be made in conjunction with, or in addition to, financial assistance provided through other State or federal programs. In addition to any other condition or requirement determined to be necessary by the Administration, a borrower shall: Make a contribution to the project that is of a type and amount acceptable to the Administration; Document that the anticipated energy savings to the borrower over a defined period after the completion of the project are greater than the total cost of the project to the borrower in a manner that allows the Administration to verify the anticipated energy savings at the time of the application; Pay an interest rate and any other fees and expenses assessed by the Administration; Repay the loan and interest in accordance with a schedule set by the Administration; Execute necessary assurances including a promissory note and other forms of collateral required by the Administration; and Provide the Administration with a letter of counsel that gives any assurances requested by the Administration. The borrower shall make a contribution to the project, acceptable to the Administration, which may take the form of: Cash; Payment of certain predevelopment costs such as preliminary architectural site plans, engineering design studies or feasibility studies, or technical assessments necessary to implement the project; Contribution of in-kind services acceptable to the Administration; or Contribution of equipment, labor, or materials for use in the project. Security. Security or collateral are required for any loan to a nonprofit organization or eligible business. When security is required, a loan shall be secured by liens on real property, equipment, or other assets purchased with loan proceeds and any other collateral approved by the lender and the Administration which may include, but are not limited to: The personal guarantees of the principals of the applicant; Liens on the business assets of the applicant; Guarantees of related entities; Indemnity deeds of trust on real property owned by the principals of the applicant; A cash escrow; or Any other form of security or collateral acceptable to the Administration. If applicable, the borrower shall make the necessary arrangements and, if necessary, execute a waiver in favor of the Administration with a landlord to facilitate the Administration’s security and collateral. Repayment. The principal and interest of a loan under the Program shall be repaid: From energy cost savings realized by the energy conservation project, or other revenues specified by the borrower equal or equivalent to energy cost savings; and In accordance with a schedule acceptable to the Administration provided that the date for beginning of the repayment of a loan may not be later than 2 years from closing of the loan. In calculating the energy cost savings, the Administration, on a case by case basis, may take a number of factors into consideration, including: Actual or anticipated changes to the energy consumption and energy use of a borrower; and Whether these changes will produce monetary or other forms of savings to a borrower. At the conclusion of each fiscal year, if the energy cost savings resulting from the project do not equal or exceed the expected repayment schedule for the loan, the Administration may upon the petition of a borrower: Adjust the terms of repayment with the borrower in such a manner as to assure that the annual payment amount does not exceed the actual energy cost savings resulting from the project; and Extend the repayment period for up to 1 additional year beyond the original maturity date, at the discretion of the Program, or a longer period at the discretion of the Director. Interest Rate. The principal of the loan shall bear interest at a rate determined to be necessary and reasonable for the project, which, at the discretion of the Director, may be as low as zero percent. In the event of default, the Administration may modify: The rate of interest; The time or amount of payment; or Any other term of the loan in order to ensure repayment and achieve the purposes of the Program. Template Documents. The Administration shall publish a loan agreement, note, and security agreement on its website no later than 30 days following the start of each fiscal year that will serve as the Program documents for that fiscal year. The Program documents published under §F(1) of this regulation shall conform to the minimum provisions required under §G of this regulation and include any additional provisions deemed appropriate by the Administration. Except as provided in §F(4) of this regulation, the Administration shall utilize the Program documents published under subsection(1) of this section for each loan issued to a borrower under the Program. The Administration may grant a modification or amendment to a Program document published under §F(1) of this regulation only upon a determination by the Administration of good cause, which may include a determination by the Administration that: A provision of a template document is contrary to law; or A modification or amendment is necessary to facilitate the issuance of a loan to an applicant that is otherwise eligible for a loan under the Program. Document Requirements. A loan agreement issued under the Program shall, at a minimum, include: A definition of terms; Interest rates, fees, and other expenses to be paid by the borrower; A disbursement schedule consistent with the schedule proposed by the borrower in its application; Conditions precedent and other terms that affect the disbursement and availability and funds; Applicable representations, warranties, and covenants; Indemnification of the Administration and its employees; A requirement to hold the Administration and its employees harmless; Default events; Contact information; A statement of governing law; Terms related to confession of judgment; and Collection procedures. A security agreement issued under the Program shall, at a minimum, include: A description of collateral; Applicable representations, warranties, and covenants; and Default events. A note issued under the Program shall, at a minimum, include: A definition of terms; Interest rates, fees, and other expenses to be paid by the borrower; Applicable representations, warranties, and covenants; Indemnification of the Administration and its employees; A requirement to hold the Administration and its employees harmless; Default events; A statement of governing law; Terms related to confession of judgment; Collection procedures; and A requirement for notarization. Insurance. The Administration may require a borrower to maintain insurance as described in this section. Multi-Peril Insurance. Multi-peril insurance provides fire and extended coverage insurance on the project both during and upon completion of construction, rehabilitation, or modification of a project. The insurance coverage shall include the endorsements that the Administration may require, including: Collapse; Explosion; Loss of rents; and Vandalism. Liability Insurance. Comprehensive general liability insurance shall be maintained with the endorsements that the Administration may require both during and after construction, rehabilitation, or modification of a project. Flood Insurance. If the project is located on real property which is in the 100-year flood plain, as designated by the U.S. Department of Housing and Urban Development, the project shall be covered by a flood plain insurance policy. Before closing of a loan for a project, permits shall be secured from the Maryland Department of Natural Resources and the political subdivision in which the project is located. Contractor's Insurance. If a project involves construction, rehabilitation, or modification of a structure or improvements of any kind, the general contractor shall provide insurance coverage for comprehensive public liability, property damage, and Workers' Compensation in the form and amounts required by the Administration. Other Insurance. The borrower shall provide at closing of the loan other insurance the Administration may require, including: Builder's risk; Boiler insurance; Comprehensive automobile liability; and Broad form Workers' Compensation. Terms and Conditions. Insurance coverage shall meet the following minimum requirements plus any additional requirements which may be set by the Administration: Insurance shall be provided by: Companies or other legal entities that are authorized to transact business in the State, and which are reputable and financially sound, as determined by the Administration; or In the case of local jurisdictions, self-insurance programs that are acceptable to the Administration; To the extent applicable, insurance shall be in force upon the closing of the loan; To the extent applicable, an insurance policy shall contain a standard lender endorsement attached to or printed in the policy naming the Administration as mortgagee; To the extent required by the Administration, the insurance policy shall name the Administration as loss payee and additional insured; Insurance shall provide for notification to the Administration before termination; and Insurance shall contain terms and coverage satisfactory to the Administration. Disbursement. Loan proceeds shall be disbursed directly to the borrower upon the terms and conditions set forth in the loan documents. The Administration may take the following factors into consideration in prioritizing loans for any fiscal year: Type of applicant with local governments, including schools, and nonprofits receiving special priority; Amount of projected electricity saved, fossil fuels displaced, or renewable energy generated; The extent to which the loan would leverage other energy investment dollars, including funds from the applicant or other private, local government, or federal financing; Risk profile of loan, including the length of the payback period, the applicant's ability to repay or provide security or collateral, or both, as required by the Administration; The availability of insurance; How the loan interacts with the applicant's broader energy conservation strategy; and Project readiness. Application for a Loan. An application for a loan shall be: Made upon standard forms required by and submitted to the Administration; and Submitted only by an eligible borrower in accordance with a schedule developed and publicized by the Administration. If the borrower is a: Local jurisdiction, the application shall be signed by the local jurisdiction's chief elected officer or, if none, by the governing body to the local jurisdiction; Public school, the application shall be approved by the board of education of the county in which the project is located and signed by the superintendent of public schools for the county; Institution of higher learning, the application shall be signed by the president of the institution or other authorized official; Business entity, the application shall be signed and verified: If a corporation, by an officer of the corporation; If another form of business entity, by a person or official with authority to bind the entity to the commitments required; or Nonprofit organization, the application shall be signed by the executive director, president, chairman of the board, or other authorized official. An application for a loan shall be submitted to the Administration and shall contain: Sufficient information and documentation to determine: The eligibility of a project in accordance with the criteria set forth in Regulations .04 and .06 of this chapter; Whether the terms and requirements of the loan as set forth in Regulation .07 of this chapter can be met; and For a business or nonprofit organization, sufficient information to allow the Administration to make a determination about the creditworthiness of the borrower and the risk profile of the loan; and The following additional information: Identification of the business, structure or structures, or equipment which will be the subject of a project, including, as applicable, a brief description of the existing condition of the structure or equipment evidencing a need for the project; The cost of a proposed project and the amount of dollars committed from private and public resources; A project budget identifying all sources and uses of project funds; Proposed terms of the loan, including interest rates and repayment schedules; The type of security, if any, to be provided by the borrower; A description of type, amount, and source of the contribution to be made by the borrower; As determined by the Administration, the projected energy cost savings to be achieved in dollars, units of fuel, kilowatt-hours, or British thermal units, and the engineering calculations to support these savings estimates; and The anticipated environmental benefits in the form of reduced emissions or pollution attributable to the proposed project. Approval Process. Upon receipt of all the information required by the Program for an eligible project, the Program shall undertake an analysis of each application based on the criteria specified in Regulation .08 of this chapter. Upon completion of its analysis, the Program shall make recommendations to the Director, including any recommended terms and conditions for a project. After receipt of a recommendation from the program, the Director may approve or disapprove the loan and the terms of the loan. If the Director approves an application for a loan on the terms recommended by the Program, or other terms that the Director considers proper, the Director shall execute a determination that the loan is authorized by the Act as codified in State Government Article, §§9-20A-01—9-20A-09, Annotated Code of Maryland. The execution of a determination of this type by the Director shall constitute an approval of a loan and authorize issuance of a commitment letter obligating the Administration to provide the loan and setting forth the amount of the loan and the terms and conditions under which it will be made. The Director may delegate the responsibilities described in §B(2) and (3) of this regulation, including approval of loans under the Program. If the Program determines not to recommend approval of an application for an eligible project, the Program shall issue a written notice of rejection. The Administration may charge an application and an administrative fee to cover the costs of making, servicing, or settling a loan. A borrower may withdraw an application at any time before an award of a loan by written notice to the Administration. The borrower may be required to bear any costs incurred by the Administration for items other than Administration processing, including a nonusage fee. The Administration may return the application and administrative fees paid upon the withdrawal of an application. Time. The closing of an award of a loan shall be scheduled at a time acceptable to the Administration and the Office of the Attorney General. Place. The closing shall be at the Administration's offices unless otherwise agreed to by the Administration. The Director may delegate to any other official or employee of the Administration or the Program the authority to approve loans and credit enhancements under the Program, or to execute or approve any loan documents or other documents governing a loan or credit enhancement, including a commitment. The Administration may enter into contracts with third parties to make, service, or settle loans under the Program. The Administration shall reserve 20 percent of the annual amount of funds available under the Program for loans to nonprofit organizations. If sufficient applications for the reserved funds have not been received from nonprofit organizations, those funds may be made available to other loans or credit enhancements under the Program. Borrowers, recipients of credit enhancements, contractors, and subcontractors shall maintain books, accounts, and records, and shall file with the Administration financial and other reports, that the Administration may from time to time require. The books, accounts, and records referenced in §A of this regulation, as well as the administrative personnel, whether full-time or part-time, shall be available for inspection by representatives of the Administration or other agencies of the State during reasonable working hours. Books, accounts, and records of contractors and subcontractors shall be maintained and made available for inspection for 3 years past the date of termination of the contractual relationship between the contractor and the borrower. A borrower or recipient or beneficiary of a credit enhancement may not discriminate against an individual on the basis of race, color, religion, national origin, sex, marital status, physical or mental handicap, or age in any aspect of the program. A borrower or recipient or beneficiary of a credit enhancement shall comply with all applicable federal, State, and local laws and Administration policies and programs regarding discrimination and equal opportunity in employment, housing, and credit practices including: Titles VI and VII of the Civil Rights Act of 1964, as amended; Title VIII of the Civil Rights Act of 1968, as amended; and The Governor's Code of Fair Practices, as amended. Covenants implementing these requirements, including affirmative action measures, shall be included in appropriate agreements between the Administration and other parties. As a condition of receipt of a loan from the Program, the Administration may require the borrower or recipient or beneficiary of a credit enhancement to adopt and administer a program to promote a drug-free and alcohol-free workplace in accordance with Executive Order 01.01.1989.18. The Director may waive or vary provisions of this chapter to the extent that the waiver or variance is consistent with the Act as codified in State Government Article, §§9-20A-01—9-20A-09, Annotated Code of Maryland. 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 Administration by any agreement relating to a loan or credit enhancement. A person applying for a loan or credit enhancement under the Program may not knowingly make or cause to be made any false statement or report for the purpose of influencing the action of the Administration on an application for a loan or credit enhancement or for the purpose of influencing the action of the Administration affecting a loan or credit enhancement already provided. A person who violates §A or B of this regulation 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. Subject to the requirements of this regulation, the Administration may authorize a credit enhancement to carry out the purpose of the Program under State Government Article, §9-20A-03, Annotated Code of Maryland. The Administration may authorize a credit enhancement under the Program to a bank or other financial institution to facilitate financing of at least one project of an: Eligible local jurisdiction; Eligible nonprofit organization; or Eligible business. A bank or other financial institution offering a financing enhanced by a credit enhancement under the Program shall: Be in good standing with the State Department of Assessments and Taxation and: Incorporated in the State; or Registered to do business in the State; Have the legal capacity and all necessary legal authority to incur the obligations associated with the credit enhancement under the Program; Provide a complete application to the Administration before the expiration of any applicable deadline; Satisfy all financial requirements established by the Administration; At the discretion of the Administration, pay a reasonable fee to the Administration for the administration of the credit enhancement; and Meet any additional requirement deemed appropriate by the Administration. A beneficiary of a credit enhancement under the Program shall: Have the legal capacity and all necessary legal authority to incur the obligations associated with the credit enhancement under the Program; Satisfy all financial and credit-related requirements established by the Administration; and Meet any additional requirement deemed appropriate by the Administration. Application and Review Process. An eligible local jurisdiction, nonprofit organization, or business may apply to the Administration under the Program to receive a credit enhancement for a financing offered by a bank or other financial institution. A bank or other financial institution may apply to the Administration to receive a credit enhancement to benefit an eligible local jurisdiction, nonprofit organization, or business. An application for a credit enhancement shall be: Made upon standard forms required by and submitted to the Administration; and Submitted to the Administration in accordance with a schedule developed and publicized by the Administration. If the beneficiary of the credit enhancement is: A local jurisdiction, the application shall be signed by the local jurisdiction’s chief elected officer or, if none, by the governing body to the local jurisdiction; A public school, the application shall be approved by the board of education of the county in which the project is located and signed by the superintendent of public schools for the county; An institution of higher learning, the application shall be signed by the president of the institution or other authorized official; A business entity, the application shall be signed and verified: If a corporation, by an officer of the corporation; or If another form of business entity, by a person or official with authority to bind the entity to the commitments required; or A nonprofit organization, the application shall be signed by the executive director, president, chairman of the board, or other authorized official. An application for a credit enhancement shall contain: Sufficient information and documentation to determine: Whether the terms and requirements of the credit enhancement as determined by the Administration can be met; and For a business or nonprofit organization, sufficient information to allow the Administration to make a determination about the creditworthiness of the borrower and the risk profile of the credit enhancement; and The following additional information: Identification of the business, structure or structures, or equipment which will be the subject of a project, including, as applicable, a brief description of the existing condition of the structure or equipment evidencing a need for the project; The cost of a proposed project and the amount of dollars committed from private and public resources; A project budget identifying all sources and uses of project funds; Proposed terms of the credit enhancement, including interest rates and repayment schedules; The type of security, if any, to be provided by the beneficiary of the credit enhancement; A description of type, amount, and source of the contribution to be made by the beneficiary of the credit enhancement; As determined by the Administration, the projected energy cost savings to be achieved in dollars, units of fuel, kilowatt-hours, or British thermal units, and the engineering calculations to support these savings estimates; and The anticipated environmental benefits in the form of reduced emissions or pollution attributable to the proposed project. After receipt of an application for a credit enhancement, the Administration may consider whether to offer a credit enhancement under the Program using the following factors: Satisfaction of the requirements under §E(3) of this regulation; Estimated energy savings; Leverage; Risk to the Administration of pecuniary loss; The extent to which the credit enhancement helps achieve the purpose of the Program under State Government Article, §9-20A-03, Annotated Code of Maryland; and Additional factors deemed appropriate by the Administration related to the: Type of credit enhancement proposed; Project; Bank or financial institution; and Beneficiary of the credit enhancement. State Government Article, §§9-20A-04 and 9-20A-09, Annotated Code of Maryland Effective date: May 24, 1993 (20:10 Md. R. 853) (Promulgated as COMAR 14.22.01; recodified to COMAR 14.26.01) Chapter, Community Energy Loan Program, repealed effective March 9, 2009 (36:5 Md. R. 424) Chapter, Jane E. Lawton Conservation Program, adopted effective March 9, 2009 (36:5 Md. R. 424) Regulation .01 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .01 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .02 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .02 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .03B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .03B amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .04 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .04 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .06 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .06 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .07 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .07 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .08 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .08 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .09A amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .09A amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .12 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .12 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .13A amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .13A amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .14A, B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); amended permanently effective September 29, 2014 (41:19 Md. R. 1082) Regulation .14A, B amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .15 amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .15 amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .17A, B amended as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .17A, B amended effective September 29, 2014 (41:19 Md. R. 1082) Regulation .18 adopted as an emergency provision effective July 1, 2014 (41:15 Md. R. 888); emergency status expired effective August 29, 2014 Regulation .18 adopted effective September 29, 2014 (41:19 Md. R. 1082) These regulations establish procedures for the administration of a grant under the Strategic Energy Investment Program, established under State Government Article, §9-20B-02, Annotated Code of Maryland, and utilizing funds appropriated from the Strategic Energy Investment Fund under State Government Article, §9-20B-05, Annotated Code of Maryland, where no other law or regulation controls. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Maryland Energy Administration. “Applicant” means a person or entity that applies for a grant from the Administration. “Application” means a request to receive a grant from the Administration. “Competitive funding opportunity” means a funding opportunity for which the Administration considers all complete applications submitted and selects those applications that best meet the criteria in the relevant FOA as determined by the Administration. “Complete application” means a timely application that includes all the information required by the FOA. “Evaluation criteria” means factors identified in the FOA that the Administration uses to determine which applications submitted in response to a FOA best meet the Administration’s specified purpose. “Fund availability” means the presence of monies that the Administration is authorized to expend for a particular purpose, such as the discretionary offering of grants. “Funding opportunity announcement” or “FOA” means a notice to the public of a grant funding opportunity available for a specific period and purpose that includes the conditions, criteria, and guidelines developed by the Administration. Grant. “Grant” means the bestowing of a power, money, privilege, property, or other item of value that may be conditional, although without other consideration, by the Administration upon another party. Grant includes a rebate, technical assistance, and the provision of a portion or all a grantee’s matching or cost sharing for a federal grant. “Grant agreement” means a written agreement between the Administration and a grantee with respect to a grant. “Noncompetitive funding opportunity” means a funding opportunity for which the Administration considers complete applications on a first-come, first-served basis. Person. “Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. “Person” includes a not-for-profit corporation, partnership, business trust, statutory trust, limited liability company, firm, or association that is in good standing with the State. Project. “Project” means an activity or undertaking that is consistent with the requirements of a FOA. “Project” includes all activities and requirements specified in the FOA or grant agreement. “Rebate” is a noncompetitive funding opportunity for a project that is complete at the time the application is submitted to the Administration. “State” means the State of Maryland. State Agency. “State agency” means any administration, agency, association, authority, board, bureau, college, commission, committee, council, foundation, fund, department, institute, institution, public corporation, service, trust, university, or other unit of the Executive Branch of the State government and includes any subunit within any of these units. “State agency” does not include a bicounty or multicounty government agency or political subdivision of the State, including a county, municipality, special tax district, sanitary district, drainage district, soil conservation district, water supply district, or any entity organized under the general corporation laws of the State. “Strategic Energy Investment Fund” or “SEIF” has the meaning stated in State Government Article, §9-20B-05, Annotated Code of Maryland. “Strategic Energy Investment Program” means the program established and described in State Government Article, Title 9, Subtitle 20B, Annotated Code of Maryland. The Administration may: Develop a FOA; Establish an application process, requirements, and criteria for each FOA; Receive and evaluate a grant application; Offer a grant; Receive and evaluate requests for cost sharing or matching to be used in a proposal for a federal grant; Offer a grant for all or a portion of a grantee’s cost sharing or matching for a federal grant; Terminate a grant; or Require repayment of a grant for noncompliance. The Administration shall publish on its website a FOA for each grant offered by the Administration. Each initial FOA shall include an application period of at least 30 calendar days. Each FOA shall explain each of the following when applicable: Name and purpose; Duration and schedule; Requirements; Deadlines; Anticipated funding amount at the time the FOA is published; Designation as a competitive or a noncompetitive grant; Evaluation criteria; Method for determining a grant amount under the FOA and whether an amount other than the requested amount may be offered; The required form and manner in which to submit a complete application; Limitations on the offer of a grant, including the amount for an individual grant or the number of grants an applicant may receive; Evaluation process; and Other information the Administration determines is appropriate. The Administration may modify a FOA by publishing a notice of the modified provision on its website no less than 10 business days prior to the application deadline and effective date of the modified provision. The Administration shall review each complete application received using any method described in the FOA. After review of a complete application, the Administration may take any of the following actions: Offer a grant; Offer a partial grant; Hold the application for further consideration during the same fiscal year; Hold the application for further consideration in a succeeding fiscal year; or Reject the application. The Administration may reject an application if: The application is not a complete application; The application is inconsistent with law; For a competitive funding opportunity, the Administration has not selected the application for a grant; The Administration determines that sufficient funding is not available; or The Director of the Administration determines that offering a grant is not in the best interest of the State. The Administration shall provide written notice of the action taken under §B of this regulation within 30 days, and, if the application is rejected, the basis for the action taken under §C of this regulation. For reconsideration of an action by the Administration under §B or C of this regulation, the applicant shall submit a written request to the Administration within 14 business days of receiving the written notice under §D of this regulation. The written decision by the Director, or the Director’s designee, on the request for reconsideration shall be the final decision of the Administration. The Administration may offer a grant for the value it determines is appropriate after considering any requirements and evaluation criteria specified in the FOA, fund availability, or any other factor the Administration determines appropriate. The Administration may offer an applicant all or part of the applicant’s cost sharing or matching for a federal grant if: The project is within the scope of this chapter as specified in Regulation .01; The project directly benefits the State; and The applicant complies with all the requirements for the federal grant. The Administration shall cancel a grant offer made pursuant to §A of this regulation if the applicant does not receive the federal grant. The Administration may offer a grant to an applicant that submits an unsolicited request for cost sharing or matching for a federal grant consistent with this regulation. To be eligible to receive a grant from the Administration, the applicant shall execute a grant agreement provided by the Administration prior to any distribution of funds. A grant agreement shall, if applicable: Identify each party and any authorized representative; Describe the project; Specify the value of the grant; Specify terms of the grant agreement; Set forth each requirement for receiving a grant, including any reporting, invoicing, or project compliance verification requirements; Specify each condition under which noncompliance may require repayment of a grant; Require certification of the applicant’s good standing with the State; Provide the Administration or its designee the right to access the project site for verification or any other relevant purpose; Provide the right of the Administration to utilize project information for any relevant purpose; and Include any other applicable provision required in a State financial agreement. A grant agreement may contain any additional provision deemed appropriate by the Administration. For a rebate, a grant application that meets the requirements set forth in §B of this regulation may serve as the grant agreement. An applicant shall timely provide any information concerning an application, request, or proposal as requested by the Administration. A person that provides a statement or report in any document required to be furnished to the Administration by any agreement relating to a grant, loan, or other financial assistance is subject to the provisions of State Government Article, §9–20B–11, Annotated Code of Maryland. A State agency other than the Administration may submit a funding request to the Administration for a project, activity, or investment designed to advance a purpose of the Strategic Energy Investment Program and intended for implementation in a subsequent fiscal year. To request funding from the SEIF, a State agency shall submit a written proposal to the Administration, including the following: A description of the project, activity, or investment; The requested amount of funding in the relevant fiscal year to implement the project, activity, or investment; A description of how the proposed project, activity, or investment is consistent with the Strategic Energy Investment Program and will further State policy goals; A description of anticipated impacts, how they advance the State’s policy goals, and how the impacts are measured and verified; An implementation timeline for the project, activity, or investment; and Any other information the Administration requests for the purpose of evaluating the proposal. In response to such a request from a State agency, the Administration may: Review the funding request to determine whether it is consistent with the Strategic Energy Investment Program, the requirements of any existing FOA, or State policy; Consider the funding request in the context of any existing or anticipated FOA, fund availability, forecasted revenue, and fund balances; or Make recommendations for inclusion of the funding request in the State’s operating budget for a new energy-related project, activity, or investment found to be consistent with State Government Article, Title 9, Subtitle 20B, Annotated Code of Maryland, as well as broader State policy goals. Each State agency that receives funding from the SEIF under this regulation shall: Utilize funding from the SEIF in a manner consistent with a memorandum of understanding executed between the State agency and the Administration; and Comply with all reporting requirements as determined by the Administration. Notwithstanding any applicable law or regulation, the Administration may suspend or cancel any FOA, grant, or agreement due to unavailability of funds. The Director may waive or modify a provision of this chapter that is inconsistent with the Strategic Energy Investment Program or other law or regulation. State Government Article, §§9-20B-01and 9-20B-12, Annotated Code of Maryland Effective date: March 3, 2003 (30:4 Md. R. 318) Chapter revised effective August 29, 2005 (32:17 Md. R. 1440) Regulation .02B amended effective February 12, 2007 (34:3 Md. R. 300) Regulation .04A amended effective February 12, 2007 (34:3 Md. R. 300) Regulation .05 amended effective February 12, 2007 (34:3 Md. R. 300) Chapter revised as an emergency provision effective October 20, 2011 (38:24 Md. R. 1496); emergency status expired December 31, 2011 Regulations .01—.10 under Green Building Tax Credit Program repealed and new Regulations .01—.12 under Maryland Strategic Energy Investment Program adopted effective July 1, 2024 (51:7 Md. R. 333) This chapter: Implements the Maryland Efficiency Standards Act by establishing minimum efficiency standards for certain new products sold or installed in the State; and; Establishes testing, certification, inspection, and enforcement procedures for ensuring compliance with established standards. In this chapter, the following documents are incorporated by reference: 42 U.S.C. §6294a; 42 U.S.C. §6294b; 10 CFR Part 430, Subpart B, Appendix S; and 10 CFR Part 430, Subpart C. In this chapter, the following terms have the meanings indicated. Terms Defined. “Act” means the Maryland Efficiency Standards Act. “Administration” means the Maryland Energy Administration. “Air purifier” means an air cleaner subject to 10 CFR Part 430, Subpart C. “Commercial dishwasher” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Commercial steam cooker” or “compartment steamer” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Covered product” means an item listed in Regulation .04 of this chapter. “ENERGY STAR” means the U.S. Environmental Protection Agency program established under 42 U.S.C. §6294a. “Faucet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Person” has the meaning stated in State Government Article, §1-101, Annotated Code of Maryland. “Portable electric spa” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Public lavatory faucet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Replacement aerator” means an aerator that is: Designed as a replacement part for a faucet; and Packaged and sold separately from a faucet to which it is designed to attach. Residential Ventilating Fan. “Residential ventilating fan” means a fan designed to: Be ceiling mounted, wall mounted, or remotely mounted; and Move air from inside a building to the outdoors. “Residential ventilating fan” includes fans commonly used in a bathroom or utility room to expel odors or fumes. “Retailer” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Showerhead has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Spray sprinkler body” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Urinal” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Water closet” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “Water cooler” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. “WaterSense” means the U.S. Environmental Protection Agency program established under 42 U.S.C. §6294b. “Widely available in Maryland” has the meaning stated in State Government Article, §9-2006, Annotated Code of Maryland. This chapter applies to the testing, certification, and enforcement of efficiency standards for the following types of new products sold, offered for sale, or installed in the State: Portable electric spas; Air purifiers; Commercial dishwashers; Commercial steam cookers; Faucets; Residential ventilating fans; Showerheads; Spray sprinkler bodies; Urinals; Water closets; and Water coolers. This chapter does not apply to: New products manufactured in the State and sold outside the State; New products manufactured outside the State and sold at wholesale inside the State for final retail sale and installation outside the State; Products installed in mobile manufactured homes at the time of construction; Products designed expressly for installation and use in recreational vehicles or marine vessels; or Products to be sold at retail that are in stock at the retail establishment before the effective date of any efficiency standard regulation for that item. On or after the date specified in Regulation .06 of this chapter, a person may not sell or install for profit a covered product that does not meet or exceed the corresponding minimum efficiency standards listed in this regulation. Air purifiers shall comply with federal standards for air cleaners under 10 CFR Part 430, Subpart C. Commercial dishwashers shall meet the applicable qualification criteria specified in the ENERGY STAR program requirements product specification for commercial dishwashers. Commercial steam cookers shall meet the requirements specified in the ENERGY STAR program requirements product specification for commercial steam cookers. Faucets shall meet the following standards when tested in accordance with 10 CFR Part 430, Subpart B, Appendix S, compliance with which shall be verified by using the uniform test method for measuring the water consumption of faucets and showerheads: Private lavatory faucets and replacement aerators may not exceed a maximum flow rate of 1.5 gallons per minute at 60 pounds per square inch; Residential kitchen faucets and replacement aerators may not exceed a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch, with optional temporary flow of 2.2 gallons per minute, provided the faucet defaults to a maximum flow rate of 1.8 gallons per minute at 60 pounds per square inch after each use; and Public lavatory faucets and replacement aerators may not exceed a maximum flow rate of 0.5 gallons per minute at 60 pounds per square inch. Portable electric spas shall meet the requirements of the ANSI/APSP/ICC 14-2019. Residential ventilating fans shall meet the following requirements when tested in accordance with the Home Ventilation Institute’s airflow test procedure stated in Home Ventilation Institute Publication 916: In–line residential ventilating fans shall be equipped with a fan motor with an efficiency of at least 2.8 cubic feet per minute per watt; and Non–in–line residential ventilating fans shall be equipped with a fan motor with an efficiency of at least 1.4 cubic feet per minute per watt for airflows less than 90 cubic feet per minute and at least 2.8 cubic feet per minute per watt for airflows greater than or equal to 90 cubic feet per minute. Showerheads may not exceed a maximum flow rate of 2.0 gallons per minute at 80 pounds per square inch when tested in accordance with 10 CFR Part 430, Subpart B, Appendix S, compliance with which shall be verified by using the uniform test method for measuring the water consumption of faucets and showerheads. Spray sprinkler bodies that are not specifically excluded from the scope of the WaterSense specification for spray sprinkler bodies shall include an integral pressure regulator and meet the water efficiency, performance criteria, and other requirements specified in the WaterSense specification for spray sprinkler bodies. Urinals shall have a maximum flush volume of 0.5 gallons per flush when tested in accordance with 10 CFR Part 430, Subpart B, Appendix T, compliance with which shall be verified by using the uniform test method for measuring the water consumption of water closets and urinals. Water closets shall meet the following standards when tested in accordance with 10 CFR Part 430, Subpart B, Appendix T, compliance with which shall be verified by using the uniform test method for measuring the water consumption of water closets and urinals: Subject to §K(2) of this regulation, water closets shall have a maximum flush volume of 1.28 gallons per flush; and Dual–flush tank–type water closets shall have a maximum dual–flush effective volume of 1.28 gallons per flush. Water coolers included in the scope of the ENERGY STAR program’s water coolers specification shall have an on mode with no water draw energy consumption that is less than or equal to the following values as measured in accordance with the on mode with no water draw test mode specified in the water coolers specification: 0.16 kilowatt–hours per day for cold only units and cook and cold units; 0.87 kilowatt–hours per day for storage type hot and cold units; and 0.18 kilowatt–hours per day for on-demand hot and cold units. The effective date for efficiency standards for covered products sold or offered for sale in the State is January 1, 2024. A covered product that does not meet or exceed the corresponding minimum efficiency standards listed in this regulation may not be installed for profit after January 1, 2025. A Maryland business or consumer may file a request with the Administration to delay the effective date of any standard adopted under this chapter if products conforming to a standard will not be widely available in Maryland by the effective date specified in Regulation .06 of this chapter. The Administration may limit a delay to identifiable subcategories of any category of covered products. The request shall: Be in writing; and State the length of the delayed implementation being requested and the reasons for the proposed delay, including any information the person filing the request relied upon to conclude that the product would not be widely available by the effective date. Upon receipt of a request, the Administration shall issue a public notice of the proposed delay and solicit comment. The Administration may determine the most effective means to issue the notice and receive comment. If, after public notice and comment, the Administration determines that the product conforming to the standard will not be widely available in Maryland, the Administration shall issue notice of the delay for implementing the standard in the Maryland Register and any other means the Administration determines is appropriate for the product being subjected to the delay. The Administration may not delay the implementation of any standard by more than 1 year. A covered product shall be tested in accordance with the requirements of Regulation .05 of this chapter. A covered product may not be sold in the State on or after its respective minimum efficiency standard effective date unless: The Administration has accepted a certification provided by the manufacturer of the covered product demonstrating the covered product meets or exceeds its respective minimum efficiency standard under Regulation .05 of this chapter; or Efficiency of a covered product can be verified by an alternative method, including via the: California Energy Commission Modernized Appliance Efficiency Database System; Northeast Energy Efficiency Partnerships State Appliance Standards Database; Federal ENERGY STAR program; Federal WaterSense Program; or Use of another official state database or other nationally recognized database. The certification required under §A(1) of this regulation shall be filed with the Administration stating that each covered product that is sold or offered for sale in Maryland complies with the requirements of the Efficiency Standards Act. The certification required under §A(1) of this regulation shall: Be in a format and in categories specified and made publicly available by the Administration; Verify that each product has been tested in accordance with all applicable requirements and specify the standard by which the product has been tested; Contain the name, address, telephone number, website address, and email address of the laboratory or other institution where the testing was performed; Contain the name, address, telephone number, and email address of the individual to contact concerning the statement; and Meet all other applicable requirements. The Administration may establish, modify, and enforce schedules for the submittal of statements for the orderly processing of submittals. To ensure compliance with adopted standards, the Administration may test a covered product to verify compliance with its applicable minimum efficiency standard. If a covered product tested is found to be out of compliance with its applicable minimum efficiency standards, the Administration shall: Charge the manufacturer of the product for the cost of product purchase and testing; and Make information available to the public on products found to be out of compliance with the standards by appropriate means. Once a manufacturer has certified a new product as outlined in Regulation .09 of this chapter, a manufacturer may mark, label, or tag the product or packaging as meeting the relevant minimum efficiency level outlined in Regulation .04 of this chapter. The mark, label, or tag shall consist of the letter “M” within a circle no less than 3/8 inch in diameter. The Administration may make periodic inspections of distributors and retailers of new products listed in Regulation .04 of this chapter in order to determine compliance with the provisions of this chapter. Before any inspection, the Administration shall give prior notice to the distributor or retailer. Inspections shall take place during normal business hours unless the distributor or retailer agrees upon a different time. The Administration may set up a process for receiving complaints concerning potential violations of Regulation .05 of this chapter. The Administration may investigate complaints received concerning potential violations of Regulation .05 of this chapter and shall report the results of an investigation to the Attorney General. A manufacturer, distributor, or retailer of new products listed in Regulation .04 of this chapter that violates any provision of Regulation .05 of this chapter shall be issued a warning by the Administration for a first violation. Repeat violators are subject to a civil penalty of not more than $250. Each violation of Regulation .05 of this chapter constitutes a separate offense and each day that a violation continues constitutes a separate offense. Penalties assessed under this regulation are in addition to costs assessed under Regulation .10B(1) of this chapter. State Government Article, §9-2006, Annotated Code of Maryland Effective date: November 22, 2004 (31:23 Md. R. 1655) Regulations 01—.13 repealed and new Regulations .01—.13 adopted effective June 19, 2006 (33:12 Md. R. 998) Regulation .01 amended effective January 1, 2025 (Md. R. 964) Regulation .02 repealed and new Regulation .02 adopted effective January 1, 2025 (Md. R. 964) Regulation .03B amended effective January 1, 2025 (Md. R. 964) Regulation .04 amended effective January 1, 2025 (Md. R. 964) Regulation .05 amended effective January 1, 2025 (Md. R. 964) Regulation .06 amended effective January 1, 2025 (Md. R. 964) Regulation .08 amended effective January 1, 2025 (Md. R. 964) Regulation .09 amended effective January 1, 2025 (Md. R. 964) Regulation .10 amended effective January 1, 2025 (Md. R. 964) Regulation .11 amended effective January 1, 2025 (Md. R. 964) Regulation .12D adopted effective January 1, 2025 (Md. R. 964) Regulation .13A amended effective January 1, 2025 (Md. R. 964) State Government Article, §9-20B-01 et seq., Annotated Code of Maryland Effective date: Regulations .01—.07 adopted as an emergency provision effective January 1, 2005 (31:23 Md. R. 1649); adopted permanently effective January 6, 2005 (31:26 Md. R. 1865) Regulation .02B amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008 Regulation .04 amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008 Regulation .05 amended as an emergency provision effective July 1, 2008 (35:15 Md. R. 1345); emergency action expired effective December 28, 2008 Chapter revised as an emergency provision effective May 18, 2012 (39:12 Md. R. 743); emergency provision expired November 13, 2012 Regulations .01—.07 repealed and new Regulations .01—.11 adopted as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013 Regulations .01—.07 under Solar Energy Grant Program repealed and new Regulations .01— .13 under Clean Energy Grant Program adopted as an emergency provision effective October 11, 2013 (40:22 Md. R. 1871); adopted permanently effective February 3, 2014 (41:2 Md. R. 92) Regulations .01—.13 repealed effective April 15, 2024 (51:7 Md. R. 333) Effective date: February 26, 2007 (34:4 Md. R. 402) Regulations .01—.07 under COMAR 14.26.05 Geothermal Heat Pump Grant Program repealed and Regulations .01—.11 under COMAR 14.26.06 Maryland Clean Energy Incentive Tax Credit Program recodified to be COMAR 14.26.05 as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013 Regulations .01—.07 under COMAR 14.26.05 Geothermal Heat Pump Grant Program repealed as an emergency provision effective October 11, 2013 (40:22 Md. R. 1871); repealed permanently effective February 3, 2014 (41:2 Md. R. 92) Tax-General Article, §10-720, Annotated Code of Maryland Effective date: February 26, 2007 (34:4 Md. R. 402) Regulations .01—.11 under COMAR 14.26.06 Maryland Clean Energy Incentive Tax Credit Program recodified to be Regulations .01—.11 under COMAR 14.26.05 Maryland Clean Energy Incentive Tax Credit Program as an emergency provision effective December 12, 2012 (40:1 Md. R. 16); emergency action expired effective May 30, 2013 Regulations .01—.11 repealed effective April 15, 2024 (51:7 Md. R. 333) These regulations implement Maryland's Income Tax Credit — Energy Storage Systems Act by establishing procedures for persons and businesses to apply for tax credits for purchasing and installing a qualifying energy storage system on eligible property in Maryland. The Maryland Income Tax Credit — Energy Storage System Act establishes a program to award tax credits to Individuals and Corporations that purchase and install a qualifying energy storage system on eligible property in Maryland. The Program also establishes limits on eligibility and the amount and duration of the credit Program. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administration” means the Maryland Energy Administration. “Capacity factor” means the ratio of actual energy output compared with the maximum possible energy output over a specified period of time. “Commercial property” means nonresidential property with a commercial, industrial, or government use as outlined in the qualifications for the Commercial Clean Energy Grant Program in COMAR 14.26.04.02 and includes multifamily properties. “Corporation” has the meaning stated in Tax-General Article, §10-101(c), Annotated Code of Maryland. “Energy density” means the amount of energy that can be stored in the given mass of the system. “Energy markets” mean wholesale electricity markets hosted by PJM Interconnection. “Energy storage duration” means duration at rated power. “Energy storage systems income tax credit” means a decrease in income tax liability offered to assist an individual or corporation in installing an energy storage system. “Energy storage system power density” means the rate of energy flux per unit of area of the energy storage system. “Individual” has the meaning stated in Tax-General Article, §10-101(g), Annotated Code of Maryland. “Installation date” means the date when the energy storage system was installed on the property and operational, not when the final permits were completed. Residential Property. “Residential property” means property, including a single-family home and an individual unit of a multifamily property or mixed use facility, that has the purpose of serving as a primary residence, as outlined in COMAR 14.26.04.02 “Residential property” includes a property with a home office. Qualifying energy storage systems may store the following types of energy for use as electrical energy at a later date or in a process that offsets electricity use at peak times: Electrical energy; Mechanical energy; Chemical energy; or Thermal energy. Qualifying energy storage systems shall maintain certain safety criteria, namely: Use equipment certified by a nationally recognized testing laboratory (NRTL); Be installed by a licensed electrician, for electrical systems; and Be in compliance with all applicable building and fire codes. Qualifying energy storage systems shall also meet the following: Be installed in Maryland; and Abide by Maryland regulations regarding interconnection with the electric utility and grid, if applicable. The Administration may adjust energy storage system qualifications across program years. Qualifying energy storage program participants may include: Residential taxpayers who purchase and install an energy storage system for a residential property which they own; or Commercial taxpayers who purchase and install an energy storage system for a commercial property which they own. Taxpayers that have already claimed an energy storage systems income tax credit as part of this program are ineligible for additional energy storage systems income tax credits for the same taxable year. Addresses where energy storage systems income tax credits have already been claimed, including multifamily properties, are ineligible for additional energy storage income tax credits from this program. An energy storage systems income tax credit cannot be claimed for an electric vehicle. The Administration may adjust program participant qualifications across program years. An individual or corporation that receives a credit certificate from the Administration may claim a credit against the individual’s or corporation’s State income tax for a specified taxable year in an amount that may not exceed the lessor of: For a qualifying energy storage system installed: On a residential property, $5,000; On a commercial property, $75,000; or 30 percent of the total installed costs of the qualifying energy storage system. The Administration may bifurcate the annual program budget to allow for a funding allocation for both residential and commercial participants. An individual or corporation interested in qualifying for a credit certification may be asked to provide some or all, at the sole discretion of the Administration, of the following information to the Administration: Name, address, email address, and phone number of the applicant's authorized representative; Estimated gross income of property owner for a residential participant, or gross revenue for a commercial participant; Estimated tax liability; Property physical address and proof of ownership of property; Description of the qualifying energy storage system being proposed for use at the facility and an explanation of how it offsets electricity when discharging; Name and contact information of the developer/installer; Whether or not the energy storage system will participate in wholesale energy markets; Anticipated cost of the qualifying energy storage system; Expected life of the qualifying energy storage system; Anticipated in-service date for the qualifying energy storage system; Anticipated capacity factor of the qualifying energy storage system; Energy storage duration; Energy density; Energy storage system power density; Documentation verifying that the energy storage system has been installed and is operational, which includes copies of local electrical permits, inspection approvals, equipment certified by a nationally recognized testing laboratory, the results of any performance testing, and any other applicable documentation; and Any other information the Administration considers necessary to process the application. The Administration shall issue credit certificates on a first-come, first-served basis once it has determined the application is complete and verifies the information provided by the applicant. The Administration may bifurcate the application process as necessary into more than one step. The Administration may not issue a credit certification of more than $75,000 for a commercial property or $5,000 for a residential property, and the Administration may not issue a total amount of credits totaling more than $750,000 in any taxable year. If the credit allowed under this chapter in any taxable year exceeds the State income tax otherwise payable by the individual or corporation for that taxable year, any unused credit may not be claimed for another taxable year. The Administration may not issue a certificate for a qualifying energy storage system installed after December 31, 2022. Tax-General Article, §10-719, Annotated Code of Maryland Effective date: September 10, 2018 (45:18 Md. R. 834)