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Committee accepts energy‑tax revenue adjustment for Green Bank, defers discretionary cut in two tranches
Summary
The joint committee accepted a FY26 reduction tied to lower fuel energy tax receipts for the Montgomery County Green Bank NDA but placed the executive's discretionary $2.3 million transfer cut on the reconciliation list split into two $1,145,902 tranches for further consideration; Green Bank leaders warned cuts would reduce leveraged investment.
On May 1, a Montgomery County joint committee reviewed the Montgomery County Green Bank non‑departmental account (NDA) in the executive’s FY26 recommended operating budget and reached a compromise: the committee accepted a revenue‑driven decrease that reflects lower fuel energy tax receipts, but the committee did not immediately approve the executive’s discretionary reduction in the county transfer and instead put that reduction on the reconciliation list split into two tranches for later decision.
The staff presentation said the executive recommended a $15,700,000 appropriation for the Green Bank NDA, down about $3.4 million (roughly 17.6%) from FY25. Staff identified two components of the change: a roughly $1.1 million decrease tied to lower fuel energy tax receipts (maintaining the statutory 10% benchmark proportionally) and a $2.3 million discretionary reduction in the transfer below the 10% guideline.
Why it matters: The Green Bank uses county appropriations to leverage private capital for climate and energy projects; committee members and the Green Bank warned that discretionary reductions would reduce the county’s investment leverage and project deployment. Committee staff and the Green Bank noted a packet typographical error: a passage that said the loss would be "$12" should read "$12,000,000," meaning the reduction could translate into roughly $12 million less in total investable project volume at the leverage ratios discussed.
What the Green Bank said: The Green Bank representative Morrell told the committee the organization “has actually spent 100% every year that we’ve received these funds” and explained that some funds appear on its balance sheet because they are used as collateral or to meet grant criteria, not because the money is idle. Morrell described recent accomplishments (catalyzing roughly $105 million of projects from about $20 million in public capital last year) and said reductions would force hiring freezes and a lower capital deployment target (an internal target adjustment from about $21 million to $18 million was described).
Council reaction and committee decision: Multiple council members said the cut appeared to break the spirit of the Montgomery County Green Buildings Now Act and risked undermining partner confidence. The chair said the committee would accept item 1.1 (the revenue‑driven decrease of about $1,080,032) but split consideration of item 1.2 (the discretionary $2.3 million reduction) into two tranches of $1,145,902 each and place those tranches on the reconciliation list for further consideration. The transcript shows that decision was reached without recorded objection.
Outstanding items: The Greenhouse Gas Reduction Fund (GGRF) federal grant the Green Bank recently won is involved in ongoing litigation; Morrell said litigation is unresolved and could affect deployment timing. The committee asked to be kept apprised of litigation developments and expected the Green Bank to continue quarterly reporting.
