Green Bank & Climate Mandates
A climate-finance institution, BEPS, and a failing incinerator
FY2026 budget: $141M+ / 16.3M FY27
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 surged to $141.1 million as of FY2025; the FY27 operating budget includes about $16.3 million for the Green Bank. No default rate data has been publicly disclosed. 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. No comprehensive cost estimate for full Climate Action Plan implementation has been published.
Dickerson incinerator & solid waste
In late 2025 and early 2026, Dickerson Resource Recovery Facility boilers were taken offline after dioxin and furan emissions exceeded state limits (Unit 3 at 83% over limit; Unit 2 at 226% over limit). County Executive Elrich has long sought to close the incinerator and proposed shifting waste to out-of-county landfills; the Council deferred that decision for FY27 and funded continued RRF operations pending a fuller cost, revenue, environmental, and equity analysis.