State Agency Loan Program

Program status: superseded. The State Agency Loan Program no longer exists as a separate program.

House Bill 170 (Chapter 135 of the Acts of the General Assembly of 2019), effective 1 June 2019, expanded the Jane E. Lawton Conservation Loan Program (MEA page) to include state agencies among its eligible borrowers. From fiscal year 2020 onward, state agencies have applied for energy efficiency loans through the Lawton program using the standard Lawton application form, and the Maryland Energy Administration no longer runs the State Agency Loan Program as a distinct offering.

Administration of the Lawton program itself moved again on 1 July 2026, from the Maryland Energy Administration to the Maryland Clean Energy Center, which now handles both new applications and servicing for existing loans.

Who could apply: Maryland state agencies only. This program was never open to homeowners, businesses or non-profit organisations, and it financed energy efficiency improvements in state facilities rather than solar installations.

Status verified against the Maryland Energy Administration's own current and archived program pages on 28 October 2026. The description below is kept for reference and describes the program as it operated while it was open; its figures are historical and are no longer available.

Historical program description

The State Agency Loan Program (SALP) was established in 1991 using funds from the Energy Overcharge Restitution Fund. Through this revolving loan program, the Maryland Energy Administration (MEA) provides loans to state agencies for cost-effective energy efficiency improvements in state facilities. Typical loan amounts range from $50,000 to $250,000. State agencies pay zero interest with a one percent administration fee. Their repayments are made from the agency's fuel and utility budget, based on the avoided energy costs of the project. Repayments replenish the fund so that it can continue to make additional loans each year. During 2011 alone the MEA reports making $6.5 million in loans which are expected to result in energy cost savings of over $13 million over the life of the improvements. It also reports that since 2007, it is has issued loans totaling $16.2 million with projected energy cost savings of over $2 million.

Just over half of all SALP loans are directed to Energy Performance Contracts (EPCs) that the Maryland Department of General Services coordinates with the State’s agencies. These EPCs are typically large scale projects that are designed to reduce energy costs and consumption. Each year from October to November, the MEA solicits interest from facilities managers and energy coordinators in state agencies for energy efficiency projects to be funded the next fiscal year (which begins July 1). The annual solicitation is for energy efficiency projects that typically are not covered in Energy Performance Contracts (i.e., smaller projects for which the EPC process is not appropriate).

The program was capitalized between 1991 and 1996 with approximately $3 million in Oil Overcharge Restitution Trust funds. An additional $800,000 was added to the fund in Fiscal Year (FY) 2009 from the proceeds of carbon emission allowance auctions under the Regional Greenhouse Gas Initiative (RGGI) and further funding of $6.9 million was added by the American Recovery and Reinvestment Act (ARRA) in 2010.  In the past, approximately $1 million in new loans have been awarded each fiscal year, though as noted above, in recent years additional funding has permitted the program to expand. During FY 2014 the total program budget was $1.7 million.

The SALP provides a financing mechanism useful to agencies in meeting the requirements of Executive Order 01.01.2001.02 "Sustaining Maryland's Future with Clean Power, Green Buildings and Energy Efficiency."