Anticipated Launch Summer 2025
One-Time $64M Grant Opportunity for Local Governments
*Updated 6/13/2025 to reflect early feedback*
Program Purpose: Grant funding to support large-scale efforts to plan and implement energy efficiency and clean energy projects across local governments’ portfolios of public facilities. 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 Maryland Smart Energy Communities (MSEC) for Fiscal Year 2026. By empowering local governments, the program will save energy and cut annual operating costs, while simultaneously reducing greenhouse gas emissions and advancing state climate goals.
Anticipated Application Period: Summer 2025 - Winter 2025
Anticipated FY26 Budget: $64 million total: $50 million anticipated for planning activities and renewable energy projects. $10 million anticipated for energy efficiency projects. $4 million anticipated for electrification projects.
Anticipated Type of Grant Program: The L-GEM FY26 portfolio offers awards in four core Areas of Interest (AOI):- Area of Interest 1 (AOI1): Formula Block Grant: A 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 energy related projects (planning, energy efficiency, renewables, and some electrification). This allows recipients to align the funding with local priorities and timelines. Counties are encouraged to apply for AOI1. Municipalities are not eligible for AOI1.
- Areas of Interest 2, 3, & 4: Competitive Project Grant: A competitive grant is project-specific funding awarded to local governments proposing individual projects for consideration. 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. County and municipal governments may submit multiple applications with one application per project.
Area of Interest 2 (AOI2): Competitive Planning Project Grant: Counties and municipal governments may submit one application per planning project. Planning projects may include Feasibility Studies, Energy Audits, Energy Planning, and Strategy Development.
Area of Interest 3 (AOI3): Competitive Capital Project Grant (Not Including Electrification): Counties and municipal governments may submit one application per energy efficiency or renewable construction project. Capital projects may include installation of Renewables (solar, geothermal, methane recapture, etc.), Building Envelope Measures (Weatherization, Insulation, etc.) and Efficient Equipment and Appliance Upgrades. Capital projects may not include electrification.
Area of Interest 4 (AOI4): Competitive Project Grant (Only Including Electrification): Counties and municipal governments may submit one application per electrification project. Electrification is the process of replacing fossil fuel systems with electric systems.
In essence, AOI1 is a block grant, AOI2 is a competitive planning grant, AOI3 is a competitive capital grant (not including electrification), and AOI4 is a competitive capital grant (only including electrification).
Anticipated Eligible Applicants:
- AOI1: Formula Block Grant: Counties of Maryland and Baltimore City are eligible for and encouraged to apply to AOI1.
- AOI2: Competitive Planning Project Grant: Eligible applicants include all incorporated towns, cities, and counties of Maryland. Counties that apply for AOI1 are not eligible to apply for AOI2.
- AOI3: Competitive Capital Project Grant (Not Including Electrification): Eligible applicants include all incorporated towns, cities, and counties of Maryland. Counties that apply for AOI1 are not eligible to apply for AOI3.
- AOI4: Competitive Capital Project Grant (Only Including Electrification): Eligible applicants include all incorporated towns, cities, and counties of Maryland. Counties may apply for both AOI1 and AOI4.
Request For Information
MEA has issued a
Request for Information (RFI) to seek feedback on the design of the FY26-Only Local Government Energy Modernization Program (L-GEM).
MEA kindly requests that responses to this RFI be submitted via
this form by
June 30, 2025. MEA may continue to receive comments after the deadline, but comments received by this date will be most impactful. Alternatively, if you prefer, you may send your feedback to
msec.mea@maryland.gov with “L-GEM RFI” in the subject line.
