Maryland Energy Infrastructure Program



UPDATE: Governor Larry Hogan issued an executive order on March 12th mandating teleworking for non-essential state employees across all state agencies in response to COVID-19.  During this time, the Maryland Energy Administration (MEA)  Maryland Energy Infrastructure Grant Program (MEIP) program staff can be reached at  MEIP.MEA@maryland.gov Information submitted to MEA by postal mail may have processing times affected by the office closure.  We apologize for any inconvenience this may cause and we appreciate your understanding. ​

MEA is not presently offering any grants for the Maryland Energy Infrastructure Grant Program (MEIP) in fiscal year 2021. MEA is currently reviewing the results​ of the fiscal year 2020 program to develop potential program offerings in fiscal year 2022. Interested applicants are encouraged to contact us with any potential projects. 


NOTE: PSC Order 88631​ provided MEA funding to incentivize natural gas infrastructure expansion within Maryland. These funds have certain provisions which require a majority of the funds be expended within the Washington Gas and Light ("WGL") service area. All applications should indicate whether they are for projects within or outside the WGL service area.


Maryland Anchor Customer Program

 



MEIP Anchor Customer Program Notice of Availability

​The Maryland Anchor Customer Program issues grants from the Maryland Gas Expansion Fund (“MGEF”) to commercial, industrial, state agencies, local governments, and nonprofit energy consumers in Maryland.  MGEF is a merger benefit resource held in a subaccount of the Strategic Energy Investment Fund (“SEIF”). The Maryland Energy Administration administers the Maryland Anchor Customer Program. The purpose of these grants is to assist with energy projects that help to promote natural gas distribution. Grants will be awarded on a competitive basis. However, priority will be given to applicants who own and/or operate State facilities on the Lower Eastern Shore in Maryland.

Energy projects promoting natural gas distribution include:

  • Investing in assets that assist customers in converting​ their operations to natural gas;
  • Projects that reintegrate previous natural gas customers who no longer possess natural gas infrastructure or functional natural gas infrastructure; or
  • Providing benefits to existing customers not presently utilizing their natural gas infrastructure and/or are seeking to expand their energy demand;

Such distributions may be made directly to customers. All hard assets which receive funding shall be installed and operated in Maryland.

Program Bu​dget: Up to $1.5 million for non-residential anchor customers to develop or convert to natural gas fired infrastructure

​Eligible Market Industries: Organized businessess, State of Maryland entities and agencies, and not-for-profits entities whose activies demand on average 3,000 decatherm/month or greater of energy.

Application Deadline: Applications will be accepted on a competitive basis through December 11, 2019, until funding has been expended or until such a time as MEA publishes on its website​.​

Type of Grant Program:

  • ​Subject to funding availability and restrictions, grants will be awarded competitively based upon an applicant's demonstration of their volume of natural gas consumption and whether or not they are geographically located within a One Maryland Economic Development Zone.
  • Some anchor customers face tremendous costs for developing or converting their operations to natural gas. Therefore, applicants may receive subsequent funding in the next proximate fiscal year cycle for grants to cover the conversion of the same project over multiple annual program cycles up to, but not exceeding, $3m or 30% of the project cost. MEA reserves the rigth to prioritize, select, and deny subsequent funding applications for the same project at its discretion.
  • MEA reserves the right to increase or decrease the program budget.

​Required Application Documents:

MEA Application: Please note that the name on the MEA Application must match the name and address listed on the applicant’s W9 form.

Maryland Anchor Customer Program Application
Maryland Anchor Checklist

Each applicant must submit the following documents with the MEA application:

  • Most recent twelve (12) consecutive months' data of natural gas consumption volume; or
  • Most recent twelve (12) consecutive months' fuel consumption invoices, utility bills, or another acceptable third party accounting; or
  • Most recent twelve (12) consecutive months' projected natural gas consumption volume.
  • Current Certificate of Status provided by the Maryland State Department of Assessments and Taxation​​​​​
​​​​​​​

Maryland Local Distribution Company

 

MEIP LDC matching Notice of Availability FY20

The Maryland Local Distribution Company ("LDC") Grant Program ("Program") issues matching grants from the Maryland Gas Expansion Fund (“MGEF”) to licensed Local Distribution Companies ("LDCs") to aid in natural gas expansion in Maryland. MGEF is a merger benefit resource held as a subaccount of the Strategic Energy Investment Fund (“SEIF”). The Maryland Energy Administration administers the Program. The purpose of these grants is to assist with energy projects that help to promote natural gas distribution. LDC Program grants are distributed on a first come, first serve basis.

Such distributions may serve to invest in assets that distribute natural gas for:

  • new customers;
  • the re-integration of previous customers who no longer use natural gas service; or
  • a benefit to existing customers who are not presently utilizing their natural gas infrastrucutre.

Such distributions may be made to LDCs who presently hold a state and/or federal license to operate natural gas infrastrucuture in Maryland. All hard assets, (such as piping, city gates, compression stations, locators, and couplings), which receive funding shall be installed and operated in Maryland.

Program Bu​dget: Up to $1 million is available for this Program in Fiscal Year 2020 ("FY20"), subject to availability. These funds are allocated in the following manner:

  • Up to $1M initially reserved for LDCs to defray:​
    • hard asset costs for city gates, compression stations, locators, piping, couplings, and any other hard asset category that an LDC requests in their application and which MEA may approve AND/OR
    • soft asset costs (labor or non-tangible asset) for installation of any hard asset in the application

Application Deadline: Applications will be accepted through December 11, 2019, or until funding has been expended or until such a time as MEA publishes on its website​.​

Type of Grant Program:

  • Subject to funding availability and restrictions, grants will be awarded on a first come, first serve basis. However, to ensure geopraphic diversity and to conform to the will of the PSC, MEA will initially reserve funding for at least one project in Allegany, Garrett, Frederick, Calvert, Charles, St. Mary's, Kent, or Somerset Counties.
  • MEA reserves the right to increase or decrease the program budget

Required Application Documents:

MEA Application: Please note that the name on the MEA Application must match the name and address listed on the applicant’s W9 form.

Maryland Local Distribution Company Application
LDC Checklist

Each applicant must submit the following documents with the MEA application:

Maryland Cost in Aid of Construction Dispensation Fund

 

MEIP CIAC Dispensation Fund Program Notice of Availability

The Maryland Cost In Aid of Construction Dispensation Fund (“CDF”) Program issues grants from the Maryland Gas Expansion Fund (“MGEF”) to Local Distribution Companies (“LDCs”) for the purpose of avoiding cross-subsidization of costs for natural gas expansion. MGEF is a merger benefit resource held as a subaccount of the Strategic Energy Investment Fund (“SEIF”). The Maryland Energy Administration (“MEA”) administers the CDF Program. These grants are designed to help a LDCs create and fund their own “Cost in the Aid of Construction (“CIAC”) Dispensation Fund,” dedicated to help promote natural gas distribution by defraying costs associated with installing natural gas infrastructure from the end of the utility's asset to the customer’s meter - sometimes referred to as the “last mile” charge. CDF Program grants are distributed on a first come, first serve basis.

Distributions from an LDC's CDF may serve to invest in assets for:

  • new customers

Such grants may be awarded to LDCs who presently hold a state and/or federal license to operate natural gas infrastructure in Maryland. Broadly, disbursements from the CDF Program allow for subsidized natural gas expansion, eliminating risk of cross subsidization paid for by other Maryland natural gas ratepayers. CDF disbursements shall be used to defray or eliminate costs for gas expansion projects in Maryland.

Program Bu​dget: Up to $1.2 million to establish CIAC Dispensation Funds.

​Eligible Market Industries:

  • ​Organized businesses who presently hold or who have filed an application for a tariff or other license for natural gas distribution with the Maryland PSC.

​Application Deadline: Applications will be accepted on a first come, first serve basis until December 11, 2019, until funding has been expended, or until such a time as MEA publishes on its website.

Type of Grant Program:

  • Subject to funding availability and restrictions, grants will be awarded to eligible applicants primarily on a first-come, first-served basis until the Program is fully subscribed.
  • Grant applicants may apply for grants over multiple annual program cycles up to, but not exceeding, $1.5M in total CDF assets.
  • MEA reserves the right to increase or decrease the program budget

Required Application Documents:

MEA Application: Please note that the name on the MEA Application must match the name and address listed on the applicant’s W9 form.

Maryland Cost in Aid of Construction Grant Program Application
CIAC Checklist

Each applicant must submit the following documents with the MEA application:


Contact:
For more information or assistance, please contact David Giusti at David.Giusti1@maryland.gov.  Applications should be submitted electronically to MEIP.MEA@maryland.gov​.