Maryland bill would create no‑interest clean energy loans for small nonprofits

Delegate Johnson introduced legislation (HB 695) seeking to establish a no‑interest loan program and dedicated fund to help small nonprofits pay upfront costs for solar and other energy efficiency upgrades. Johnson said the program would target nonprofits with budgets under $1 million and require that energy‑savings repayments be returned to the fund to support additional borrowers.

“This bill takes the risk away from nonprofits. It allows them to go green,” Delegate Johnson said, describing the measure as “fiscally responsible” and a way to advance Maryland’s climate goals while protecting nonprofit missions.

Members asked how the program would be funded and how the loan mechanics would work. Johnson and other witnesses said the bill would use a one‑time $5 million transfer from the Strategic Energy Investment Fund (CIF) to seed the loan fund. Johnson and Kathy McGruder, executive director of the Maryland Clean Energy Center, said the Clean Energy Center supports a favorable report with amendments that would allow it to administer and manage the fund and to reinvest repayments through an appropriate vehicle.

Dahlia Grammer asked whether taking money from CIF was appropriate given current energy costs. Johnson and McGruder replied that the program was designed so repayments and energy savings would replenish the fund and that administration by an experienced entity could ensure project success. McGruder noted the Clean Energy Center’s lending experience and asked the committee to approve the bill with the proposed amendment.

No formal motion or vote was recorded during the hearing. The committee closed the HB 695 hearing after questioning and supportive testimony.