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Combined Heat and Power Grant Program

MEA CHP FY21 Grant Program​

 

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Above: (From left to right) Electric switchgear panels at W.R. Grace and Company’s Curtis Bay plant, MEA CHP Program Manager Brandon Bowser in front of a CHP engine at Baltimore Washington Medical Center, and CHP system at W.R. Grace and Company’s Curtis Bay plant.
 

Update: Governor Larry Hogan issued an executive order on March 12, 2020 mandating teleworking for non-essential state employees across all state agencies in response to COVID-19. With this in mind, the Maryland Energy Administration (MEA) encourages that all correspondence and reporting regarding the CHP Program be submitted via email to CHP.MEA@Maryland.gov.

During this time, MEA CHP Program Manager Brandon Bowser can most easily be reached via email at BrandonW.Bowser@Maryland.gov or via phone at (443) 306-0304. We apologize for any inconvenience this may cause and we appreciate your understanding. 

 

FY21 CHP Grant Program

Program Manager: Brandon Bowser
 

***PROGRAM OPEN FOR APPLICATIONS***
 

ALL ROUND 1 APPLICATIONS DUE BY 11:59 P.M. EDT, FRIDAY, OCTOBER 30, 2020

 

The Maryland Energy Administration (“MEA”) is pleased to announce the Fiscal Year 2021 (“FY21”) Combined Heat and Power (“CHP”) Grant Program, which will be offered in two (2) application rounds. This first-come, first served program invests in the adoption of qualified CHP technologies across Maryland’s commercial, industrial, institutional, critical infrastructure, and agricultural sectors to improve the State’s energy landscape and bring lasting operational and economic benefits to the businesses and public and private organizations that serve Marylanders every day.

MEA offers the FY21 CHP Grant Program to Maryland facilities which seek to improve their energy resiliency, efficiency, affordability, and environmental sustainability. The strategic integration of CHP systems into Maryland’s energy landscape reduces the environmental impact associated with traditional fossil-fuel sources and improves the State’s energy grid integrity through increased presence of distributed energy resources and reduced reliance on centralized generation.

The following sections provide information on eligibility, funding availability, frequently asked questions, and how to apply. MEA will review and process applications in the order in which they are received.

Informational Webinar Sessions: MEA will host three (3) informational webinar sessions for Round 1 that discuss the structure and requirements of successful applications to the FY21 CHP Grant Program. More information including dates and registration instructions are available in the “Informational Webinar Sessions” section below.

Program Overview

 

The FY21 CHP Funding Opportunity Announcement-09.10.2020 Update.pdfFY21 CHP Funding Opportunity Announcement ("FOA") (Note: Updated September 10, 2020) provides full information on the Program terms, conditions, requirements, funding availability, and application instructions. Applicants should thoroughly review this FOA prior to submitting an Application Package to MEA.

Incentives are calculated as a payment per kilowatt (“kW”) of installed nameplate capacity. Capacity payments range in size from up to $600/kW to up to $500/kW and are tiered by range to reflect economies of scale.

Resilient and Biogas Systems: CHP systems which include black start and islanding technologies and/or operate on biogas produced from onsite anaerobic digestion of organic waste may be eligible for up to 20% additional funding. See the FOA for further details.

Micro-CHP Systems: CHP systems with nameplate capacity of 60 kW or less are considered “micro-CHP” systems under the FY21 CHP Grant Program. Incentives for systems of this capacity range will not be calculated on the tiered capacity payment structure described above. Instead, payment will be calculated as up to 50% of the installed cost (up to a maximum incentive amount of $100,000) after the deduction of any applicable utility incentives. See the FOA for further details.

A full list of eligible technologies is available in the FOA, but generally includes:

  • Reciprocating Engines
  • Gas Turbines
  • Steam Turbines
  • Microturbines
  • Micro-CHP (<60 kW)
  • Waste Heat to Power Systems
  • Fuel Cells
  • Ancillary Equipment (e.g. heat exchangers, absorption chillers, anaerobic digesters, etc.)

The Program is offered on a first-come, first served basis. MEA will accept and review each Application Package in the order in which it is received.

An Application Package found to be missing necessary information and/or requiring additional clarification will have thirty (30) calendar days to supply the information requested by MEA to retain its position in the consideration queue. Failure to submit the requested information within this timeframe will result in rejection of the Application Package. Applicants rejected for this reason are welcome to reapply but will be treated as new.

Applicants seeking planning and design funds for black start and islanding CHP systems as standalone projects or those included in larger distributed energy resource projects such as microgrids may be also eligible for incentives under the Resilient Maryland program. MEA strongly recommends exploring this program for CHP systems which have not yet been fully designed.

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Eligible Entities

 

The FY21 CHP Grant Program is open to Applicants in the following sectors:

  • Commercial businesses
  • Nonprofit organizations
  • Critical infrastructure
  • Industrial and manufacturing
  • Chemical and pharmaceutical
  • Institutional (colleges, universities, etc.)
  • Public and private education
  • Multifamily housing
  • Agricultural
  • Maryland State and local government

 

FY21 Funding

 

Up to $1.65 million is available to eligible entities in Round 1, and is divided between two (2) Areas of Interest (“AOIs”):

  • AOI 1: CHP for Energy Resilience: Funding under this AOI is available to Applicants for CHP systems which are primarily meant to enhance the energy resiliency and/or redundancy of the Applicant facility. Eligible systems must include black start and islanding capability.

  • AOI 2: CHP for Energy Efficiency: Funding under this AOI is available to Applicants for CHP systems which are primarily meant to improve the energy efficiency and affordability of the Applicant facility’s operations. Black start and islanding capability are not required, but systems must achieve full project payback without accounting for incentives within 20 years.

  • AOI 3: Fuel Cells: To encourage the use of emerging and innovative fuel cell technologies, funding is provided for fuel cell systems under this AOI. Eligible systems must achieve annual fuel use efficiency of at least 50% higher heating value (HHV). See the FOA for further details.

Remaining Funds

Funds remaining in the FY21 CHP Grant Program are updated as Grant Agreements are executed with selected projects.

Total Round 1 Funds Remaining: $1,650,000

Last Update: August 25, 2020

FY21 Grantees

Grants are awarded on a first-come, first served basis throughout the duration of the Program. The Award Number, Grantee Organization, Nameplate CHP System Capacity, Award Amount, and Project Location of each CHP system will become available in a table below after the first Grant is awarded. Updates will be made as Grant Agreements are executed.

Last Update: August 25, 2020

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How to Apply

 

Applications will be accepted for Round 1 until 11:59 P.M. EDT, October 30, 2020

Application Packages should be submitted electronically. This is a first-come, first served Program, and as such Applicants should submit their Application Packages sooner rather than later to secure funding. The Program will close early in the event FY21 funding is exhausted prior to the deadline.

Follow these steps to submit a successful Application Package (all referenced documents for download are found below in the list):

Step 1: Download and review the FY21 CHP Funding Opportunity Announcement-09.10.2020 Update.pdfFY21 CHP Funding Opportunity Announcement ("FOA") (Note: Updated September 10, 2020) in its entirety.
Step 2: Download and complete the 1. FY21 CHP Application Workbook - Fuel Cell Update.xlsxFY21 CHP Application Workbook (Note: Updated September 10, 2020).
Step 3: Obtain/prepare all required supplemental documents per the FOA.
Step 4: Submit the Application Package electronically to the online portal below.

Complete Application Packages can be sutmitted to MEA via email:

 

>>> CHP.MEA@Maryland.gov <<<

 

MEA is encouraging the use of electronic applications to streamline processing and reduce environmental impacts. If you cannot apply electronically, please contact MEA no later than five (5) days prior to the application deadline to work on an alternative method to submit an application. Applications must be submitted no later than October 30, 2020, 11:59 P.M. EDT, unless the Applicant has contacted MEA regarding an alternative application method and that method has been authorized in writing by MEA.

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U.S. DOE CHP eCatalog

 

Applicants to the FY21 CHP Grant Program are highly encouraged to explore the U.S. Department of Energy ("DOE") CHP eCatalog when considering CHP systems for their facilities. This comprehensive database provides users with a wide array of packaged CHP systems, solution providers, and customer engagement partners who are identified by DOE as organizations, such as MEA, that provide incentives, utilities and technical support providers. All of these resources can be easily identified through an intuitive and highly-customizable search function. Metrics such as system capacity, footprint, thermal applications, islandability, solution provider products (including turnkey solutions), and available incentives can all be tailored specifically to what an organization is seeking in a CHP project. Click the link below to be taken to the eCatalog.

 

>>> CHP eCatalog <<<

 

Informational Webinar Sessions

 

MEA will host three (3) informational webinar sessions for Round 1 that will provide Applicants and interested parties an overview of the Program, its eligibility requirements, and guidance on how to submit a successful Application Package. All sessions will be the same, so only attending one is necessary. However, attendance at more than one session is certainly permitted if desired.

Dates and Times are as follows:

  • Session 1: Thursday, September 10, 2020: 10:00 A.M. EDT
  • Session 2: Wednesday, September 16, 2020: 1:30 P.M. EDT
  • Session 3: Tuesday, September 22, 2020: 11:00 A.M. EDT

Click the follwing link to register: FY21 CHP Informational Webinar Registration

 

Program Timeline

 

The following Program milestones are current but may change at the discretion of MEA.

  • August 25, 2020: FY21 CHP Program Round 1 Open for Applications
  • September 10, 2020: CHP Informational Webinar Session 1
  • September 16, 2020: CHP Informational Webinar Session 2
  • September 22, 2020: CHP Informational Webinar Session 3
  • October 30, 2020: FY21 CHP Program Round 1 Closed for Applications
  • November 2020: Anticipated Opening for FY21 CHP Program Round 2
  • December 30, 2020: Deadline for Round 1 Grant Execution
  • TBD: CHP Informational Webinar Sessions 4 - 6
  • February 26, 2021: Anticipated Close for FY21 CHP Program Round 2
  • April 30, 2021: Deadline for Round 2 Grant Execution
  • July 1, 2022: Groundbreaking Deadline (simple projects)
  • July 1, 2023: Groundbreaking Deadline (complex projects); Commissioning Deadline (simple projects)
  • July 1, 2024: Commissioning Deadline (complex projects)

 

Reporting Resources for Existing Grantees

 

Grantees across all CHP Program Years* are required to submit progress reports on a quarterly basis, in accordance with the reporting timeframes and due dates specified below:

  • Q1 (Jul, Aug, Sep): Due October 10
  • Q2 (Oct, Nov, Dec): Due January 10
  • Q3 (Jan, Feb, Mar): Due April 10
  • Q4 (Apr, May, Jun): Due July 10

*Grantees previously required to submit monthly reports are no longer required to do so and should submit quarterly reports as described above.

Grantees must also comply with the Groundbreaking and Commissioning reporting requirements of their Grant Agreements in order to receive disbursements of their Grant funds.

Online Reporting Portals

MEA encourages Grantees to submit their quarterly project status reports as well as quarterly production reports (latter for operational systems only) online via the links below:

Quarterly Status Report

Quarterly CHP Production Report (Coming Soon)

Downloadable Reporting Documents

Downloadable Groundbreaking and Commissioning reporting and disbursement request forms as well as form versions of the quarterly status and production reports are available below:

CHP Attachment B - Quarterly Status Report.docxQuarterly Status Report (Attachment B)

CHP Attachment C - Groundbreaking Report and Disbursement Request.docxGroundbreaking Report and Disbursement Request (Attachment C)

CHP Attachment D - Commissioning Report and Final Disbursement Request.docxCommissioning Report and Final Disbursement Request (Attachment D)

Quarterly CHP Production Report (Attachment E) (Coming Soon)

Completed reports and disbursement requests can be submitted to MEA via email at CHP.MEA@Maryland.gov. Grantees unable to report electronically should contact MEA to arrange alternative reporting methods.

Any questions or concerns regarding reporting requirements and/or procedures should be directed to Ms. Meg Cefail, Energy Specialist, at Margaret.Cefail@Maryland.gov or via phone at (410) 537-4084.

 

Related Incentive Programs

 

CHP Applicants and Grantees may be eligible for low-cost financing in addition to CHP Grants through MEA’s Jane E. Lawton Conservation Loan Program. Loans are financed at favorable rates not exceeding 1.0% APR and have flexible repayment timelines. Click the link below to learn more.

Jane E. Lawton Conservation Loan Program

The following MEA incentives may help offset the costs of additional energy conservation measures and improvements Applicants are considering.

Resilient Maryland Program

Commercial, Industrial, and Agricultural Grant Program

Low-to-Moderate Income Energy Efficiency Grant Program

Parking Lot Solar PV Canopy with EV Charger Grant Program

Public Facility Solar Grant Program

Commercial Clean Energy Rebate Program

Data Center Energy Efficiency Grant Program

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Prior Fiscal Years

 

The following links provide information on past cycles of the CHP Grant Program. These pages are provided for historical purposes only and do not affect the terms, conditions, rules, restrictions, and requirements of the FY21 CHP Grant Program.

FY20 CHP Grant Program

 

 

Contact

 

Questions or comments regarding the FY21 CHP Grant Program should be directed to Brandon Bowser, CHP & Energy Resilience Program Manager. He can be reached via email at BrandonW.Bowser@Maryland.gov or via phone at (443) 306-0304.

Grants issued by the State of Maryland may be taxable. As the Maryland Energy Administration is unable to give tax advice, any tax-related questions should be directed to a qualified tax professional.​