Maryland

Note: Although this program has funded for profit entities in the past, the current application period is only open to eligible non-profits and governmental agencies. Commercial and industrial loans are now offered through a separate Commercial and Industrial Energy Efficiency Loan Program.  
 
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 and nonprofits 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.  
 
Loans under the Program can be made to eligible nonprofits, including hospitals and private schools; and local governments, including public school systems and community colleges. (Eligible applicants may not have a mission that is primarily religious or fraternal.) The JELLP funds approximately $1.5 million in new projects each fiscal year. 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 Fiscal Year (FY) 2010, the non-profit reserve is 20% of the total budget through March 1, 2010, after which unused funds will revert to the general pool of loan funds.  
 
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 2010, up to $300,000 is available per loan through March 1, 2010. After this date, larger loans may be considered on a case-by-case basis. The interest rate is negotiated by individual loan and is guaranteed to be below market rate. The current average interest rate is approximately 2%. 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. As of September 2008 the loan had funded 58 projects with costs totaling $15.6 million and energy savings exceeding $20 million. These figures include loans made under the prior programs that the JELLP replaced.