(a) There is a Climate Catalytic Capital Fund.
(b) 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:
(1) reduce greenhouse gas emissions and enable the adoption of measures to combat climate impacts;
(2) facilitate the electrification of the transportation sector and the use of sustainable alternative fuels in aviation;
(3) enable improvements in energy management and efficiency to reduce greenhouse gas emissions from the building sector;
(4) expand the deployment of clean energy generation and energy storage capacity;
(5) target the implementation of energy and weatherization measures for low– to moderate–income households;
(6) optimize the economic, health, social, and environmental value of community–scale infrastructure for resilience and energy equity;
(7) allow for the deployment of advanced clean energy technology; and
(8) provide for the creation of a Maryland Green Bond program.
(c) (1) The Center shall administer the Fund.
(2) The Center shall establish a Fund Oversight Committee, appointed by the Board, to manage the Fund.
(d) The Fund consists of:
(1) money appropriated in the State budget to the Fund;
(2) money made available to the Fund through private contributions and federal grants or programs;
(3) proceeds from the sale, disposition, lease, or rental of collateral related to financing made from the Fund;
(4) repayment of financing made from the Fund;
(5) returns from or recovery of any financing made from the Fund;
(6) proceeds from the sale of any financing made, or assets acquired with proceeds, from the Fund;
(7) interest earnings on money in the Fund; and
(8) any other money from any other source accepted for the benefit of the Fund.
(e) (1) The Fund may be used only to:
(i) evaluate and coordinate financing for qualified projects and clean energy technologies related to the purposes specified under subsection (b) of this section;
(ii) provide financing for qualified projects;
(iii) facilitate efficient tax equity markets for qualified projects;
(iv) secure private investment capital for financing of qualified projects;
(v) make grants to other green banks in the State for the purpose of financing qualified projects; and
(vi) subject to paragraph (2) of this subsection, administer the Fund and activities of the Center in carrying out this part.
(2) Not more than 5% of the Fund balance may be used for administrative purposes.
(3) 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.
(f) (1) Expenditures from the Fund may be made only with the approval of the Fund Oversight Committee.
(2) (i) 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.
(ii) 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.
(g) (1) The Fund shall be subject to independent audit.
(2) 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.
(h) 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.