Woodkirk Stone
This story was updated at 9:30 p.m. February 1, 2022 to include comments from County Council Member Tom Hucker.
Montgomery County Council voted unanimously on Tuesday to allocate 10% of the county’s energy tax revenue — nearly $18 million this year — to a county nonprofit focused on energy efficiency and l ‘investment.
County Executive Marc Elrich said in a brief interview on Tuesday that he would sign The law project. However, council members need to figure out where in the budget to cut about $18 million, unless they want to raise taxes somewhere, he said.
Council members Tom Hucker and Andrew Friedson led the movement as co-sponsors of the bill and said ahead of Tuesday’s vote that efforts on the matter began about three years ago.
Their bill was amended several times to specify how the funds could be spent by the county’s Green Bank and when certain aspects of the law would go into effect.
Green Bank is a publicly chartered 501(c)3 non-profit organization. Its website says it uses funding from the utility merger of Exelon and Pepco.
According to its website, it uses lenders and private capital to help raise public funds to invest in environmental projects throughout the county.
The amended bill says:
- The Green Bank must spend 20% of its county funds to support activity in countywide “equity emphasis zones,” as defined by the Metropolitan Washington Council of Governments. These areas have higher concentrations of low-income and/or minority populations.
- The bank must also spend 15% of county funds to help reduce the cost of homeowners’ energy projects “through loan subsidy, interest rate buyout, technical assistance, pre-development, mixed capital or other similar tools”.
- After July 1, 2023, Green Bank will no longer be able to use the funds to pay for mechanical equipment upgrades, for newer equipment that still uses fossil fuels. Council member Hans Riemer said the amendment was necessary so that owners and partners can adapt to the new law.
- The director of the county’s Department of Environmental Protection must submit an annual report to the county executive and members of council detailing the activities of the Green Bank.
Elrich said he was frustrated that the council did not adopt building energy performance standards legislation for a final vote. The measure was introduced last May.
This legislation is needed so builders and developers know what energy use requirements they need to meet in relation to future climate goals, Elrich said.
It is difficult to see how the money from the Green Bank bill could be used without the references and laws established in the other bill, he added.
“If you don’t have that, you’re not in a position to drive the kind of change you want to make,” Elrich said.
Hucker was chairman of the county council when the bill was introduced and chairs the transport and environment committee, to which he is assigned. In a voicemail, Hucker said he and his colleagues are “eager” to pass the building energy performance standards bill, but are awaiting a feasibility study from the Elrich administration.
This study would help determine how feasible it is for building owners across the county to implement the changes proposed in the bill, and how enforceable the benchmarks and regulations are, Hucker said. .
Regarding the Green Bank bill, Hucker said ahead of Tuesday’s vote that it “puts our money where our political commitment is,” calling it part of how county officials achieve the objectives set out in the Climate action plan. This plan calls on the county to eliminate greenhouse gas emissions in the county by 2035 and reduce them by 80% by 2027.
Friedson called the bill “critical” as the county addresses those goals in the coming years.
The county has budgeted $175.7 million for energy tax revenue in the current budget year, and 10% of that — just under $18 million — would go to the Green Bank. Board members may review this level of funding in the future.
The bill does not define the types of projects the money should be used for, but the Green Bank can help property owners make improvements such as adding solar panels to a roof; make a heating, ventilation and air conditioning system more efficient; or modifying a building to conserve natural resources such as sunlight or water, for example.
The funds will come from the county’s energy use tax, which is “levied and imposed on any person transmitting, distributing, manufacturing, producing or supplying electricity, gas, steam, coal, fuel oil or liquefied petroleum gas in the county”. according to council staff reports.
Steve Bohnel can be reached at [email protected]