The Local Government Energy Modernization Program (L-GEM) is
OPEN
One-Time $64M Grant Opportunity for Local Governments
Interested in applying to L-GEM but don’t know where to start? Check out the kick-off webinar here or view our
FAQ here!
Application Deadline:
5:00 P.M. ET, December 5, 2025
Eligible Applicants: Only incorporated towns, cities, and counties of Maryland may apply.
Program Purpose: The mission of the Local Government Energy Modernization (L-GEM) program is to support local governments as they engage in sustainable, long-term clean energy and energy efficient projects that lead to reduced energy usage and greenhouse gas emissions, increased cost savings, and robust clean energy and economic development. By empowering local governments to lead by example, the program aims to inspire community-wide engagement and drive broader adoption of clean energy solutions among residents, businesses, and institutions. For FY26 only, MEA anticipates offering $64 million in one-time, not-to-be-missed, funding to accelerate adoption of clean energy. This program will replace the Maryland Smart Energy Communities (MSEC) Program for Fiscal Year 2026.
Anticipated FY26 Budget: $64 million total: $50 million anticipated for planning activities and renewable energy projects, $10 million anticipated for energy efficiency projects and $4 million anticipated for electrification projects.
Program Structure: The L-GEM FY26 portfolio offers awards in four core Areas of Interest (AOI):
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Area of Interest 1 (AOI1): Non-competitive Formula Block Grant: block grant is formula-based, flexible funding that is secured upfront and can be used over multiple years to support both planning and implementation of a variety of clean energy related projects (planning, energy efficiency, and renewables). This allows recipients to align the funding with local priorities and timelines. Counties and the City of Baltimore are encouraged to apply for AOI1. Municipalities are not eligible for AOI1.
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Areas of Interest 2, 3, & 4: Competitive Project Grants: A competitive grant is merit-based funding awarded to local governments proposing specific energy-related public facility projects. Each application is evaluated based on its merits with funding awarded to projects that best align with the program’s goals and priorities based on the evaluation criteria.
Area of Interest 2 (AOI2): Competitive Planning Grant: Planning projects may include one or more of the following activities: Feasibility Studies, Energy Audits, Energy Planning, and Strategy Development. Counties that apply for AOI1 are not eligible to apply for AOI2. Municipalities are eligible for AOI2.
Area of Interest 3 (AOI3): Competitive Implementation Project Grant (Excluding Electrification): Implementation projects may include one or more of the following activities: Installation of Renewables (solar, geothermal, landfill-gas-to-energy, etc.), Building Envelope Measures (Weatherization, Insulation, etc.) and Efficient Equipment and Appliance Upgrades (air source heat pumps, LEDs, etc). Implementation projects may not include electrification. Counties that apply for AOI1 are not eligible to apply for AOI3. Municipalities are eligible for AOI3.
Area of Interest 4 (AOI4): Competitive Implementation Project Grant (Only Including Electrification): Electrification is the process of replacing fossil fuel systems with electric systems. Implementation projects may include core electrification upgrades in conjunction with pre-electrification upgrades. Counties may apply for AOI1 and AOI4. Municipalities are eligible for AOI4.
PROGRAM DOCUMENTS
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AOI 1 Non-competitive Formula Block Grant
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AOI 2 Competitive Planning Grant
For more information about the L-GEM FY26 program, contact Lacey Allor, L-GEM/MSEC program manager, at [email protected] or by phone at 410-507-7143.
Resources
Interested in applying but not sure where to begin? The Environmental Finance Center has developed helpful fact sheets that walk you through potential project types and provide guidance on how to get started.
Tell us about your experience with the Maryland Energy Administration. Click here to complete a three question customer experience survey.
