New MCEC fund aims to increase energy efficiency in underserved areas

MARYLAND – The Maryland Clean Energy Center (MCEC) is offering a new funding opportunity, by launching the Climate Catalytic Fund.

Climate Catalytic Fund

MCEC is looking to award money towards projects and investments aimed at bringing energy efficiency to underserved and low-income communities. There is $15 million in the bank for the fund, to be distributed over three fiscal years.

“Ideally, we’re looking for investments that are going to leverage private capital to do more, with a little bit of public money,” said MCEC Executive Director, Kathy Magruder.

Ideal Candidates

An example of an ideal candidate would be a housing complex needing new heating or cooling infrastructure and insulation. Or, the owner could be seeking solar and battery storage for resilience, says Magruder.

“This could be particularly applicable for senior housing, or nursing homes, where applying these energy efficient building management technologies, renewable energy generation, and storage technologies would help make the building more resilient, as a whole,” Magruder said.

The funds could be available to individuals through certain channels, as well. For example, a lending partner awarded some of the fund might then offer low-cost loans available for individual homeowners to make improvements and increase energy efficiency, says Magruder.

Reaching Climate Goals

While this opportunity is aimed at helping disadvantaged communities, Magruder says the results will benefit the state of Maryland. In 2022, the state’s legislature passed the Climate Solutions Now Act, which holds the state to climate goals. Opportunities like this, could help Marylanders achieve those benchmarks, says Magruder.

“It’s easy to think about the problem. It’s not as easy to think about thinking about a solution,” Magruder said. “It takes focus, and it takes information. We’re hopeful that these funds can be used to help solve some of that barrier to success.”

Future Funding

As MCEC is waiting for applications, they are also working with a financial advisory firm to help manage and grow the fund. “[That] will help us better understand the opportunities to grow the fund, by pulling in private sector patterns, who can help deploy the capital in the most efficient way, to get the biggest bang for the buck,” Magruder said.

Looking ahead, Magruder says MCEC is looking for other ways to grow the fund.

“We are also tapped into the EPA Greenhouse Gas Reduction Fund grants that should be announced soon, with $14 billion of funding for the National Climate Investment Fund. And, we can take the ideas that we get from the applications that are coming in, and match those projects to other funding resources that we have our eyes on,” Magruder said. “The more we can show the need, or the opportunity, the more likely we are to be able to get other sources of funding to help address the opportunities.”