Climate Catalytic Capital (C3) Fund

The Climate Solutions Now Act (CSNA) of 2022 mandated the creation of the Climate Catalytic Capital Fund to increase private capital investment in technology deployment and development intended to reduce greenhouse gas emissions and mitigate the impact of climate change.

The law provides for an annual allocation of $15M over three years in the Governor’s Budget, beginning in FY24.

Measures eligible for the use of funds include the following:

  • Facilitate the electrification of the transportation sector and the use of sustainable alternative fuels in aviation
  • Enable improvements in energy management and efficiency to reduce GHG emissions from buildings
  • Expand the deployment of clean energy generation and energy storage capacity
  • Target the implementation of energy weatherization measures for low-to-moderate-income households
  • Optimize the economic, health, social, and environmental value of community-scale infrastructure for resilience and energy equity
  • Allow the deployment of advanced clean energy technology
  • Provide for the creation of a Maryland Green Bond Program

The fund may consist of the following:

  • Forty percent of the funds must be used to assist low-income households and communities in the state to access decarbonization solutions and strategies
  • Not more than 5% of the fund balance may be used for administrative purposes
  • 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

The fund may consist of the following:

  • Money appropriated in the state budget

  • Private contributions

  • Federal Grants and programs

  • Proceeds from the sale, disposition, lease, or rental of collateral related to financing made available from the fund

  • Repayment of financing made from the fund

  • Returns from or recovery of any financing made from the fund

  • Proceeds from the sale of any financing made, or assets acquired with proceeds from the fund

  • Interest earnings on the money in the fund

  • Any other money from any other source accepted to benefit the fund

The CSNA requires the Maryland Clean Energy Center Board of Directors to appoint an Investment Oversight Committee to manage the fund. This group is responsible for managing the funds and the use of the funds.

The Investment Oversight Committee (IOC) will:

  • Evaluate and coordinate financing for qualified projects and clean energy technologies related to the purposes specified under subsection
  • Facilitate efficient tax equity markets for qualified project
  • Secure private investment capital for the financing of qualified projects
  • Make grants to other green banks in the state for the purpose of financing qualified projects Administer the fund and activities of the center in carrying out this part