Local Government Energy Modernization (L-GEM)

About this funding opportunity

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Local Government Energy Modernization Program (L-GEM)

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The Local Government Energy Modernization Program (L-GEM) is CLOSED

_One-Time $64M Grant Opportunity for Local Governments_

New! FY2027 Commercial & Community Buildings Grant Program Request for Information (RFI):The Maryland Energy Administration's FY2027 Commercial & Community Buildings RFI is now available. We welcome feedback from interested stakeholders to help inform program design and development. Responses will be accepted via JotForm through Friday, July 3.

FY2026 Awardees List: L-GEM Award Recipient List

Application Deadline: 5:00 P.M. ET, December 5, 2025

Eligible Applicants: Only incorporated towns, cities, and counties of Maryland may apply.

Program Purpose: The mission of the Local Government Energy Modernization (L-GEM) program is to support local governments as they engage in sustainable, long-term clean energy and energy efficient projects that lead to reduced energy usage and greenhouse gas emissions, increased cost savings, and robust clean energy and economic development. By empowering local governments to lead by example, the program aims to inspire community-wide engagement and drive broader adoption of clean energy solutions among residents, businesses, and institutions. 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 the Maryland Smart Energy Communities (MSEC) Program for Fiscal Year 2026.

Anticipated FY26 Budget: $64 million total: $50 million anticipated for planning activities and renewable energy projects, $10 million anticipated for energy efficiency projects and $4 million anticipated for electrification projects.

Program Structure: The L-GEM FY26 portfolio offers awards in four core Areas of Interest (AOI): Area of Interest 1 (AOI1): Non-competitive Formula Block Grant: 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 clean energy related projects (planning, energy efficiency, and renewables). This allows recipients to align the funding with local priorities and timelines. Counties and the City of Baltimore are encouraged to apply for AOI1. Municipalities are not eligible for AOI1. Areas of Interest 2, 3, & 4: Competitive Project Grants: A competitive grant is merit-based funding awarded to local governments proposing specific energy-related public facility projects. 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.

Area of Interest 2 (AOI2): Competitive Planning Grant: Planning projects may include one or more of the following activities: Feasibility Studies, Energy Audits, Energy Planning, and Strategy Development. Counties that apply for AOI1 are not eligible to apply for AOI2. Municipalities are eligible for AOI2. Area of Interest 3 (AOI3): Competitive Implementation Project Grant (Excluding Electrification): Implementation projects may include one or more of the following activities: Installation of Renewables (solar, geothermal, landfill-gas-to-energy, etc.), Building Envelope Measures (Weatherization, Insulation, etc.) and Efficient Equipment and Appliance Upgrades (air source heat pumps, LEDs, etc). Implementation projects may not include electrification. Counties that apply for AOI1 are not eligible to apply for AOI3. Municipalities are eligible for…

Topic areas: Energy and Environment, Smart Cities, Public Policy and Governance.

Funding amount

This other provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Local Government Energy Modernization (L-GEM) is administered by Maryland Energy Administration (MEA), listed via Maryland Energy Administration.