In this article, the following words have the meanings indicated:
CLEAN ENERGY LOAN
Any loan made by a private lender to a property owner under
the clean energy loan program.
CLEAN ENERGY LOAN OBLIGATION
All indebtedness and obligations of a property owner to a
clean energy lender under a clean energy financing agreement.
COMMERCIAL PROPERTY
Real property that is not designed principally or intended
for human habitation; or used for human habitation and is improved
by more than four single-family dwelling units.
COUNTY
Talbot County, Maryland.
NONACCELERATING LOAN
A loan agreement containing a provision that if the borrower
defaults or otherwise fails to make payment, the entire remaining
amount on the loan will not become immediately due and payable.
SURCHARGE
Repayment obligations of a clean energy loan, including principal,
interest, any applicable fees and administrative costs, collected
from a property owner through the County's property tax billing system.
SURCHARGE LIEN
The lien automatically established upon the County's levy
of the surcharge on the property tax bill.
There is a clean energy loan program to finance energy efficiency
projects and renewable energy projects as provided in this article.
The Director of the County Finance Office may adopt rules and
regulations to administer the clean energy loan program consistent
with this article, subject to the approval of the County Council.
The clean energy loan program shall be administered by the clean
energy loan program administrator. The County Manager may enter into
an agreement with a third party to administer the clean energy loan
program, subject to the approval of the County Council.
Commercial property owners eligible under the criteria in §
172-36, below, may participate in the clean energy loan program for non-accelerating loans greater than $25,000 for a term up to 20 years.
In order to be eligible for a clean energy loan, the property
owner, or in the case of multiple owners of the same property, property
owners, shall:
A. Have a 100% ownership interest in the commercial property for which
improvements are proposed;
B. Demonstrate that the most recent property taxes, assessments, and
charges on the property have been paid;
C. 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;
D. Obtain an energy audit approved under program guidelines demonstrating
that the savings projected to be obtained from the improvements over
the life of the improvements equal or exceed the principal and aggregate
interest to be paid over the term of the loan; and
E. Establish that the owner(s) of the commercial property 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
under Md. Code Ann., Commercial Law Art., §§ 12-127,
12-311, 12-409.1, 12-925, and 12-1029.
The following improvements, either new or replacement, qualify
as energy efficiency or renewable energy projects under the clean
energy loan program:
B. Geothermal energy devices;
D. Water conservation devices not required by law;
E. 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
F. Any other improvements approved by the County or the clean energy
loan program administrator as qualifying as an energy efficiency project
or renewable energy project.
A clean energy loan may be used to pay for all costs incurred
by a property owner in connection with the qualifying improvements,
including the cost of the 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.
Clean energy loans may be provided by any private lender and
a clean energy 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 County may not finance
or fund any loan under the program, shall serve only as a program
sponsor to facilitate loan repayment by including the surcharge on
the County real property tax bill for the property, and shall incur
no liability for the loan.