State Agency Loan Program

Established in 1991, the State Agency Loan Program (SALP) provides loans to State agencies for cost-effective energy efficiency improvements in state facilities. Since its inception, SALP has been used to upgrade lighting, controls, boilers, chillers, and other energy equipment in State buildings and facilities.

State agencies pay zero interest with a 1% administration fee for SALP loans, which typically range from $50,000 to $250,000. Loan repayments are made from an agency's fuel and utility budget, based on the avoided energy costs of the project. As loan repayments are made, new SALP loans can be awarded each fiscal year.

SALP provides a financing mechanism useful to agencies in meeting the requirements of Executive Order 01.01.2001.02, titles "Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency."

How to Apply

Each year from October to November, the MEA solicits facilities managers and energy coordinators (via e-mail) across all state agencies for energy efficiency projects to be funded the next fiscal year (which begins July 1). This solicitation is for energy efficiency projects that typically are not covered in Energy Performance Contracts with ESCOs (Energy Service Company). If you would like to apply, please see the Expression of Interest Form below.

Most of the SALP loans are directed to Energy Performance Contracts that the Department of General Services coordinates with the State’s agencies. These Energy Performance Contracts are typically large scale projects to reduce energy costs and consumption.


Additional Information

The program began by using funds from the Energy Overcharge Restitution Fund (EORF). In fiscal year 2009, an additional $800,000 was added to SALP through the proceeds of the Regional Greenhouse Gas Initiative (RGGI). In 2010, American Recovery and Reinvestment (ARRA) funds added $6.9 million to the program; substantially increasing SALP funding through Fiscal Year 2012.

For more information about ESCOs, visit the MEA's Energy Performance Contracting page.

For more information, e-mail David St. Jean at or call 1-800-72-ENERGY.

DGS Energy Maryland Map

The Maryland Department of General Services (DGS) contributes to Maryland's Smart, Green & Growing initiatives. To see a map of its projects, visit the DGS Energy Maryland Map. While MEA did not work on all of the projects listed, we have been involved in many of them. MEA contributes funds to participating EPCs, and issues efficiency improvement loans through its SALP program.