Oil Overcharge Restitution Trust funds, RGGI, ARRA
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."