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Maryland

Maryland

Incentives/Policies for Renewables & Efficiency

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Jane E. Lawton Conservation Loan Program   

Last DSIRE Review: 10/16/2014
Program Overview:
State: Maryland
Incentive Type: State Loan Program
Eligible Efficiency Technologies: Custom/Others pending approval
Eligible Renewable/Other Technologies: Solar Water Heat, Geothermal Electric, Geothermal Heat Pumps, Geothermal Direct-Use
Applicable Sectors: Commercial, Industrial, Nonprofit, Schools, Local Government, Institutional, Hospitals
Amount:Varies; $40,000 - $500,000
Maximum Incentive:$500,000 (larger requests considered on a case-by-case basis)
Terms:Interest rate of 2.0% for FY 2015; payback of 10 years or less
Funding Source:Revolving Loan Fund
Program Budget:FY 2015: $1.5 million
Expiration Date:06/30/2015 (FY 2015 applications)
Web Site: http://www.energy.state.md.us/Govt/janeelawton.html
Authority 1:
Date Enacted:
Date Effective:
Md Code: State Government §9–20A–01 et seq.
05/13/2008 (subsequently amended)
07/01/2008
Summary:

The Jane E. Lawton Conservation Loan Program (JELLP) takes the place of the former Community Energy Loan Program (CELP) and the Energy Efficiency and Economic Development Loan Program (EEEDLP). This program provides local governments, nonprofits, and businesses in the State with an opportunity to reduce their operating expenses by identifying and installing energy conservation improvements. It allows borrowers to use the cost savings generated by the improvements as the primary source of revenue for repaying the loans. The program operates as a revolving loan fund where loan repayments from prior awards replenish the fund and allow it to support additional projects. Projects may include renewable installations* for eligible non-profit organizations and local governments only. For businesses, only energy conservation and energy efficiency projects are eligible for loans.

Loans under the Program can be made to eligible nonprofits, including hospitals and private schools; local governments, including public school systems and community colleges; and businesses. (Eligible applicants may not have a mission that is primarily religious or fraternal.) The JELLP has roughly $1.5 million available for new loans during Fiscal Year 2015 (FY 2015). The Maryland Energy Administration (MEA), which administers the program, is required to reserve a portion of the funding each year for loans to non-profits. For FY 2015, $500,000 of available loans funds are reserved for non-profits through August 31, 2014. Thereafter, remaining funds will be pooled and offered to all eligible applicants on a first-come, first-served basis.

The only qualifying criteria for projects are that they save energy and have a simple payback of 10 years or less. All costs necessary for implementing an energy conservation project can be considered for funding, including the technical assessment, reasonable fees for special services, plans and specifications, and the actual costs of construction. In April 2009, the authorizing legislation for the program was amended by H.B. 1442 to add specific types of renewable energy projects* as eligible for loan proceeds and to revise the list of eligible recipients to include certain special county districts and agencies.

For FY 2015, from $40,000 - $500,000 is available per loan although larger requests may be considered on a case-by-case basis. The interest rate is set at 2.0% for FY 2015 applications. Loan applicants are required to make a contribution to the project although the contribution does not necessarily have to be in the form of cash. Participants begin repaying the loan in the second year after a loan is made, allowing time for projects to be completed and begin generating returns.

Repayments and interest earned by the fund will allow the program to continue making loans for the foreseeable future. To date the program has reportedly issued more than 50 loan awards providing a total of roughly $21 million for projects across the state. These figures include loans made under the prior programs that the JELLP replaced.

 

*As the program is designed to increase the energy efficiency of applicant property, in this instance, "renewable energy" has been interpreted by the MEA to refer only to renewable energy technologies that save, rather than generate energy (i.e., solar water heating or geothermal heat pumps).


 
Contact:
  Dan Bressete
Maryland Energy Administration
60 West Street, 3rd Floor
Annapolis, MD 21401
Phone: (800) 723-6374
Fax: (410) 974-2250
E-Mail: daniel.bresette@maryland.gov
Web Site: http://www.energy.state.md.us/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.