Maryland Clean Energy Center seeks new operating funds, proposes navigators and loan transfers to boost local projects
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Summary
The Maryland Clean Energy Center told the Environment and Transportation Committee it needs a larger operating budget and proposed project navigators and a loan-program transfer (House Bills 119 and 245) to expand consumer financing, technical assistance and community solar and charging projects.
Kathy McGruder, executive director of the Maryland Clean Energy Center, told the House Environment and Transportation Committee on Jan. 28 that the center serves as the state’s Green Bank and uses modest public funds to attract private capital for clean-energy projects.
McGruder said MCEC was created by the General Assembly in 2009, is governed by a nine‑member board and operates with an annual operating commitment of about $1.2 million. ‘‘For every dollar MCEC receives from you, $21 is returned to the state's economy,’’ she told members, citing an economic‑impact model used by Salisbury State University.
Why it matters: McGruder framed MCEC as a lever to expand affordable clean‑energy access for households and local governments while minimizing reliance on direct public lending. She described programs that pair empower ratepayer dollars and federal grants with private capital to reduce costs for homeowners who need heating, cooling and efficiency upgrades.
Details and requests: McGruder said MCEC has made roughly 500 consumer loans since 2022 and about 3,000 more during an earlier ARRA‑funded program, putting total loans “somewhere in the range of 3,600.” She reported that roughly $24 million in public funds invested over 17 years helped leverage more than $240 million in private capital and attracted about $136 million in federal and private grants.
On pending legislation, McGruder identified House Bill 119, which would add $1.5 million annually to fund a team of project navigators to provide boots‑on‑the‑ground procurement and technical assistance, and House Bill 245, to transfer a law‑and‑loan program from the Maryland Energy Administration to MCEC to expand the center’s financing toolkit. She also noted a $5 million climate catalytic capital fund available for FY25–FY28 and a recent $5 million grant from MEA to support projects that lack access to production tax credits.
Questions from lawmakers focused on program scale, funding exhaustion and outreach. McGruder acknowledged the pilot loan buy‑down and loss‑reserve funding had been exhausted and said MCEC had petitioned the Public Service Commission to extend support while officials seek a permanent program. She said contractor referrals and targeted low‑budget marketing (about $13,000 for the pilot) have been the primary consumer outreach channels and that the program accepts borrowers with credit scores as low as about 580.
What’s next: The Center’s representatives asked the committee to consider modest operating increases and track the two bills scheduled in the committee’s upcoming hearings. McGruder invited members to a Feb. 19 legislative reception to meet industry stakeholders from their districts.