Green Bank & Climate Mandates
A $141M climate-finance institution and BEPS with unknown total costs
FY2026 budget: $141M+
The Green Bank
The Montgomery County Green Bank (MCGB), established in 2016, is described as the nation's first local green bank. Initially capitalized with $14 million from a utility merger settlement, its funding expanded in 2022 when the Green Buildings Now Act allocated 10% of the county's fuel-energy tax revenue — approximately $18–$20 million annually. Total assets have surged to $141.1 million as of FY2025. No default rate data has been publicly disclosed. Charity Navigator gives the organization a 75% (three-star) rating. No peer county operates a comparable local green bank; Fairfax studied one then shelved it in June 2024.
Building Energy Performance Standards (BEPS)
Enacted May 2022, BEPS makes Montgomery County the first county and fifth jurisdiction nationally to impose such standards. Buildings 25,000+ square feet must reduce energy use intensity up to 30% from baseline on a phased timeline through 2034. Non-compliance triggers fines of up to $500/day. Approximately 5,000 commercial and multifamily properties covering 288 million square feet are affected. Compliance may require ASHRAE Level 2 energy audits costing $15,000–$50,000+ per building. No comprehensive cost estimate for full Climate Action Plan implementation has been published.