Local Government Energy Modernization Program (L-GEM)

Description: The Local Government Energy Modernization (L-GEM) program is designed to support local governments in planning long-term energy efficiency and clean energy projects that reduce greenhouse gas emissions and reduce energy usage.

The program is offering a one-time FY2026 budget of $64 million, broken down into $50 million anticipated for planning activities and renewable energy projects, $10 million anticipated for energy efficiency projects and $4 million anticipated for electrification projects.

The program includes four major areas of interest (AOIs). Please see each AOI’s linked funding opportunity announcement for more information:AOI1 is a non-competitive formula block grant to support planning and implementation of clean energy related projects. Municipalities are not eligible. AOI2 is a competitive planning grant for feasibility studies, energy audits, energy planning, and strategy development. Counties may not apply for both AOI1 and AOI2. Municipalities are eligible. AOI3 projects may include installation of renewables, building envelope measures, and efficiency equipment and appliance upgrades. Counties may not apply for both AOI1 and AOI3. Municipalities are eligible. AOI4 is a competitive implementation program grant (only electrification). Projects may include electrification upgrades in conjunction with pre-electrification upgrades. Counties may apply for both AOI1 and AOI4. Municipalities are eligible.