Jane E. Lawton Conservation Loan Program

Summary

The Jane E. Lawton Conservation Loan Program 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, businesses, and state agencies in Maryland with an opportunity to reduce their operating expenses by identifying and installing cost-effective energy conservation improvements. Projects must be cost effective, meaning that the project's aggregate simple payback must be achieved before the consideration of any rebates or incentives. 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. The principal and interest of the loan are directed to be repaid with the energy cost savings realized by the energy conservation project (or other revenues specified by the borrower equal or equivalent). See examples of ineligible activities here. Eligible energy efficiency projects include: 

• LED lighting and controls
• Heat Pump replacements from fossil fuels
• Non-fueled equipment and other HVAC electrification alternatives
• Improvements to non-fossil fueled equipment
• Building envelope measures (insulation, air sealing, etc.)
• Chiller replacements and other measures
• Building management systems
• Building automation measures
• Hot water, chilled water, and steam system management measures and improvements that do not use fossil fuels or extend use of fossil fueled equipment 
• Variable frequency drives
• Process-specific equipment and other measures that result in significant energy cost savings
• Certain Combined Heat and Power (CHP) where there is not an electrification alternative
• Other energy efficiency and conservation measures, deemed eligible by MEA on a case-by-case basis

Lawton Loans can be made to eligible nonprofits, including hospitals and private schools; local governments, including public school systems and community colleges; and businesses. (Eligible nonprofit applicants may not have a mission that is primarily religious or fraternal.) The Lawton Loan Program has $4,281,842 available for new loans during Fiscal Year 2026 (FY 2026). The Maryland Energy Administration (MEA), which administers the program, is required to reserve $2,140,921 for nonprofit organizations from July 1, 2025 - October 31, 2025 and an additional $2,140,921 for Maryland Department of General Services and other state agencies from July 1, 2025 - October 31, 2025. Thereafter, remaining funds will be pooled and offered to all eligible applicants on a first-come, first-served basis until the FY 2026 deadline of February 2, 2026.

The main evaluation criteria include type of applicant, projected electricity saved, the extent to which the loan would leverage other energy investment dollars, risk profile, the availability of insurance, interaction with broader energy conservation strategy, project readiness, project location, facility ownership, application package documentation, baseline energy consumption, energy savings accuracy, historical properties, good standing requirements, and applicant's resource contribution. Details can be found in the full Funding Opportunity Announcement. 

The "ancillary cost" of implementing projects can be considered for funding, including the technical assessment, reasonable fees for special services, plans and specifications, and the actual costs of construction. Applicants must provide complete applications that document project costs and estimated energy savings in way that can be validated by MEA.

For FY 2026, from $10,000 to $50,000 is available per microloan and $50,001 to $500,000 per traditional loan. For FY 2026 applications, the interest rate is set at 0% for all local and state governments and their instrumentalities and at 3% for microloans and 2% for traditional loans to nonprofits and businesses. 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 no later than 2 years after the loan has closed.

Repayments and interest earned by the fund will allow the program to continue making loans for the foreseeable future.