Illinois Green Policy Update: August 2024 

Even though the Inflation Reduction Act (IRA) is only two years old, it is reshaping entire industries. The Clean Energy Plan in the bill allocated over $361 billion in federal funding to slash carbon emissions. Illinois is uniquely positioned to take full advantage of the IRA in ways that will help accelerate the building decarbonization trend here. The state has been hard at work accessing various federal opportunities and so far has received over $2.3 billion in climate-related funding.  Early believers across a variety of sectors have been demonstrating exactly how impactful the two-year-old law can be in Illinois. Here are some of their stories. 

Solar For All 

Over $156 million was awarded earlier this year to support Illinois Solar for All. This program overseen by the Illinois Climate Bank and administered by the Illinois Power Agency and Elevate, is contributing to the growing solar industry in Illinois by directly connecting low-income Illinoisans with clean energy. Illinois Solar for All helps fund solar projects for low-income homeowners, multi-family buildings, and nonprofits. For those who aren’t able to install solar panels on their homes, the program provides access to savings through the Community Solar projects.  

Now, this program is set to get even larger as “a large portion of this funding will directly expand the budget,” says Sarah Duffy, Deputy Legal Counsel at the Illinois Power Agency. “The Illinois Climate Bank will use some of the funding to offer grants for site suitability issues, such as roof repairs, electrical upgrades, and battery storage attached to solar. The Climate Bank will also provide financing tools for small businesses serving income-eligible households through low-cost financing, bridge loans, and other mechanisms to ease the upfront capital requirements of providing affordable solar to income-eligible households.” 

Since the passage of the Climate and Equitable Jobs Act in 2021, Illinois’ solar capacity has tripled. The expansion of the Illinois Solar for All program ensures that this growth not only continues, but also brings savings, wealth, and resilience to vulnerable communities. 

A Green School Model 

Omni Energy Partners is leveraging a $15 million Department of Energy (DOE) grant to conduct energy efficiency projects in 20 schools across nine southern Illinois school districts, targeting disadvantaged rural communities.   

“The grant objectives include reducing energy use and energy costs, generating sustainable savings for each district—providing healthy spaces to learn and grow,” says Mark Graves, CEO and Co-Founder of Omni Energy Partners. “The DOE funding of the 16 selected team portfolios will create cleaner, healthier spaces at 320 school facilities across 25 states, benefiting 123,500 students and 9,100 teachers.”  

Beyond the benefits coming to these communities, Omni hopes to use these projects to create a model for other schools to follow. “We will be working with the trades [unions] and vendors to create awareness through marketing materials on the success of these initiatives. We are also working with community colleges and the trades to interest students in the trades for a career. So, there are some components besides just the improvements within the 9 school districts,” Graves says.    

Clean Banking 

Earlier this year the Illinois Finance Authority/Climate Bank received over $100 million from the National Clean Investment Fund as a subrecipient of the Coalition for Green Capital, a national network that has taken a new approach to green financing. “The Illinois Finance Authority/Climate Bank plans to deploy its National Clean Investment Fund award to accelerate fleet and building electrification, invest in carbon-free schools, and support community-driven community solar projects, among other initiatives,” says Chris Meister, Executive Director of IFA/Climate Bank. 

After the 2021 Climate and Equitable Jobs Act refocused the organization, the Illinois Finance Authority/Climate Bank is developing programs to fund sustainability-related projects. So far, the organization has $340 million in federal funding to support its programs, which currently include Private Activity Bonds, C-Pace Bonds, Grid Resilience Grants, and others with more to be rolled out. “The State of Illinois looks forward to using this financing to invest in communities that need it most and further expand our clean energy economy,” Meister says

Revolutionizing the Green Economy 

“We're at the advent of the biggest American economic revolution in generations,” says Bob Keefe, Executive Director of E2 and Author of Clean Economy Now: Stories from the Frontlines of an American Business Revolution. “Two years ago, we passed the largest climate bill in the history of the world. Not just that, the IRA is the biggest economic policy in generations.” 

E2 is a national organization of business leaders and investors who advocate for smart policies that are good for the economy and good for the environment. E2 has been tracking how the private sector has responded to the IRA. Their findings? Business leaders across all sectors are all-in. According to their analysis, Illinois has received over $2.6 billion in private sector investment from the IRA. Seven projects across the state will create 2,719 new jobs in battery manufacturing, wind turbine manufacturing, power generation, and more.  

Connecting the Dots

“The Inflation Reduction Act has dramatically shifted the way that building professionals are thinking about sustainability. There is more interest in healthy, efficient buildings than ever before,” says Brian Imus, Executive Director of Illinois Green Alliance. “We know there’s a need to assist stakeholders in turning that interest to action. That's why we launched the Building Energy Resource Hub.”  

The Hub aims to connect building owners, developers, contractors, and other professionals with the resources, education, and training they’ll need to take advantage of this seismic moment in the building industry. These stakeholders often lack the time, capital, or expertise to learn about these resources. The hub will address these challenges by providing technological primers, playbooks, financing pathways, webinars and other educational resources. “The hub will ‘connect the dots’ so that the marketplace can take advantage of these emerging programs,” Imus says.  

Conclusion  

Though the Inflation Reduction Act is only two years old, it has already had major impacts on the building industry and there is much more to come. The IRA will continue to dole out billions over the next eight years, barring any rollbacks. With this funding, combined with existing state programs like the Climate and Equitable Jobs Act, Illinois is set to transform into a national leader in clean buildings.