[HISTORY: Adopted by the Board of County Commissioners of Charles County 9-15-2016 by Bill No. 2016-05. Amendments noted where applicable.]
GENERAL REFERENCES
Building construction — See Ch. 224.
Electrical standards — See Ch. 234.
Gas standards — See Ch. 241.
A. 
Definitions. In this chapter, the following words have the meanings indicated:
CLEAN ENERGY LENDER
A private lender providing a clean energy loan.
CLEAN ENERGY LOAN
Any loan made by a private lender to a property owner under the Clean Energy Loan Program.
CLEAN ENERGY LOAN FINANCING AGREEMENT
An agreement between a property owner and a clean energy lender providing for the terms and conditions of a clean energy loan.
[Amended 4-25-2023 by Bill No. 2023-02]
CLEAN ENERGY LOAN OBLIGATION
All indebtedness and obligations of a property owner to a clean energy lender under a clean energy financing agreement.
CLEAN ENERGY LOAN PROGRAM
The Clean Energy Loan Program authorized by Title 1, Subtitle 11, of the Local Government Article of the Annotated Code of Maryland, the purpose of which is to provide loans to property owners to finance qualifying improvements to commercial property.
[Added 4-25-2023 by Bill No. 2023-02]
CLEAN ENERGY LOAN PROGRAM ADMINISTRATOR or PROGRAM ADMINISTRATOR
Any person or entity selected by the County to manage the Clean Energy Loan Program.
COMMERCIAL PROPERTY
Has the meaning stated in Title 1, Subtitle 11, of the Local Government Article of the Annotated Code of Maryland.
DEPARTMENT
The Charles County Department of Fiscal and Administrative Services.
PROPERTY OWNER
An owner of commercial property as defined in this subsection.
SURCHARGE
The assessment levied by the County on a property owner's property tax bill to collect clean energy loan payments owed to a clean energy lender by the property owner and costs of administering the Clean Energy Loan Program in accordance with this chapter.
[Added 4-25-2023 by Bill No. 2023-02]
SURCHARGE LIEN
The lien automatically established upon the County's levy of the surcharge on the property tax bill.
[Added 4-25-2023 by Bill No. 2023-02]
B. 
Program established; administration.
(1) 
There is a Clean Energy Loan Program to finance qualifying improvements as described in this section in accordance with Title 1, Subtitle 11, of the Local Government Article of the Annotated Code of Maryland.
[Amended 4-25-2023 by Bill No. 2023-02]
(2) 
Rules and regulations, guidelines. The Department may adopt rules and regulations, or guidelines, to administer the Clean Energy Loan Program consistent with this subtitle.
(3) 
Program administrator. The County Commissioners of Charles County may enter into an agreement with a public or private entity to administer the Clean Energy Loan Program.
C. 
Scope. Commercial property owners are eligible to participate in the Clean Energy Loan Program for nonaccelerating loans greater than $25,000.
D. 
Eligibility. In order to be eligible for a clean energy loan, the property owner shall:
(1) 
Have a 100% ownership interest in the property located in Charles County for which improvements are proposed;[1]
[1]
Editor's Note: Former Subsection D(2), regarding obtaining an energy audit, which immediately followed, was repealed 2-7-2024 by Bill No. 2023-15. Said ordinance also renumbered former Subsection D(3) through (5) as Subsection D(2) through (4), respectively.
(2) 
Demonstrate that the most recent property taxes, liens, special assessments, and charges on the property have been paid;
(3) 
Provide a copy of written notice to all current holders of a mortgage or deed of trust who have a priority recorded lien on the property and written proof of express consent to the clean energy loan as a priority lien by all current holders of a mortgage or deed of trust on the property; and
(4) 
Establish that the property owner is able to repay the loan provided under the Clean Energy Loan Program, in a manner substantially similar to that required for a mortgage loan according to the Commercial Law Article of the Annotated Code of Maryland and any additional criteria and methods required by the clean energy lender.
E. 
Qualifying improvements. The following improvements, either new or replacement, qualify for the Clean Energy Loan Program:
[Amended 4-25-2023 by Bill No. 2023-02]
(1) 
Energy and water efficiency projects;
(2) 
Renewable energy projects, including but not limited to solar energy equipment, geothermal energy devices, and wind energy systems;
(3) 
Environmental remediation projects, which means a project intended to remove environmental or health hazards, and including projects that promote indoor air and water quality, asbestos remediation, lead paint removal, and mold remediation;
(4) 
Resiliency projects, which means a project intended to increase the capacity of a property to withstand natural disasters and the effects of climate change, including flood mitigation, stormwater management, a project to increase fire or wind resistance, a project to increase the capacity of a natural system, an inundation adaptation project, alternative vehicle charging infrastructure, and energy storage;
(5) 
Any construction, renovation or retrofitting of commercial property to reduce energy consumption, including high-efficiency lighting and building systems, heating, ventilation, air conditioning (HVAC) upgrades, high-efficiency boilers and furnaces, high-efficiency hot water heating systems, combustion and burner upgrades, fuel switching, heat recovery and steam traps, building shell or envelope improvements, fenestration improvements, building energy management systems, and process equipment upgrades; and
(6) 
Any other improvement approved by the County as qualifying as an energy efficiency project or renewable energy project.
F. 
Qualifying costs. A clean energy loan may be used to pay for all costs incurred by a property owner in connection with the qualifying improvements, including, but not limited to, the cost of an energy audit; feasibility studies and reports; project management, design, installation, and construction of the qualifying improvements; commissioning; energy savings or performance guaranty or insurance; building accreditation; closing costs of the clean energy loan; permitting fees; administrative fees; post-install evaluation, measurement and verification; and building accreditation.
[Amended 4-25-2023 by Bill No. 2023-02; 2-7-2024 by Bill No. 2023-15]
A. 
Repayment of loans. A property owner participating in the Clean Energy Loan Program shall repay the clean energy loan through a surcharge on his/her real property tax bill. Upon receipt of written notice from the Clean Energy Loan Program Administrator of the execution of a clean energy loan financing agreement, the County shall, on the July full-year billing add the surcharge to the tax property bill. The surcharge shall constitute a first lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership, whether voluntary or involuntary. A person or entity that acquires property subject to a surcharge assumes the obligation to pay such surcharge. The County may assign the surcharge lien to the Clean Energy Loan Program Administrator.
B. 
Calculation. The surcharge for a clean energy loan shall include the clean energy loan obligation and any administrative costs incurred by the County, which shall be the actual expenses incurred to administer the program.
C. 
Agreement. The property owner shall execute an agreement with the County and the clean energy lender that will be recorded in the land records of Charles County, at the expense of the property owner, and which shall include:
(1) 
The date the clean energy loan was made to the property owner and the property became subject to the surcharge;
(2) 
The term of the clean energy loan and the term over which the surcharge will apply to the property;
(3) 
The amount of the clean energy loan obligation and estimated County administrative costs for the first year;
(4) 
The annual principal and interest amount for each year of the term of the clean energy loan, including any partial year prorated amounts;
(5) 
The prepayment requirements and any prepayment premium that may apply, if the loan is a prepayable clean energy loan;
(6) 
Agreement by the property owner to repay all clean energy loan obligations and the County's administrative costs through a surcharge included on the property owner's real property tax bill due and payable on the same date as the real property tax bill;
(7) 
Acknowledgement by the property owner that an unpaid clean energy loan surcharge constitutes a first lien on the property that has priority over prior or subsequent liens in favor of private parties, and that the surcharge will continue as a lien on the property from the date it becomes payable until the unpaid surcharge and interest and penalties on the surcharge are paid in full, regardless of a change in ownership of the property, whether voluntary or involuntary; and
(8) 
Acknowledgement by the property owner and the lender that the County has no liabilty for the clean energy loan obligation or any costs associated with the collection of amounts due under the clean energy loan financing agreement; and
[Amended 4-25-2023 by Bill No. 2023-02]
(9) 
Acknowledgement by the property owner that an overdue surcharge shall be collected as a tax lien pursuant to Title 14, Subtitle 8, of the Tax-Property Article of the Annotated Code of Maryland, and the Charles County Code and that an overdue surcharge will be so collected, irrespective of whether real property taxes (or any other taxes, charges, or assessments) are due and owing.
D. 
Default. If a property owner defaults on the clean energy loan surcharge, the lien will be collected pursuant to Title 14, Subtitle 8, of the Tax-Property Article of the Annotated Code of Maryland, and the Charles County Code, irrespective of whether property taxes (or any other taxes, charges, or assessments) are due and owing. The County shall not incur any liability to the clean energy lender or others in the event of default.
E. 
Credit of payments. Payments received from a property owner shall be credited first to all County taxes, assessments, and charges.
F. 
Payment to clean energy lender. The County shall forward surcharges, less administrative costs of the County, to the clean energy lenders or the Program Administrator within 30 days of receipt. The County shall have no obligation to make payments to any clean energy lender with respect to any clean energy loan obligation other than that portion of surcharge actually collected from a property owner for the repayment of a clean energy loan.
[Amended 4-25-2023 by Bill No. 2023-02]
G. 
County liability. Except for the obligation to forward surcharges under Subsection F, the County does not incur any liability by participating in the Clean Energy Loan Program and the County shall not incur any liability to the clean energy lenders or others in the event of a default.
A. 
Private lenders; terms. The clean energy loans may be provided by any private lender, and a clean energy loan financing agreement may contain any terms agreed to by the clean energy lender and the property owner, as permitted by law, for the financing of clean energy loans. The clean energy loan must be repaid over a term not to exceed the useful life of the project as determined by the Clean Energy Loan Program.
[Amended 4-25-2023 by Bill No. 2023-02]
B. 
County role. The County's role in the Clean Energy Loan Program is limited to sponsoring the Program and collecting and forwarding the surcharges imposed under the Program. The County may not provide clean energy loans or other financing in connection with this Program.