Summary -- Illinois Clean Jobs Bill
Chief sponsors: Sen. Don Harmon, Rep. Elaine Nekritz
This legislation creates the policy framework under which we can create thousands of jobs and
protect our children and future generations from the impacts of climate change, while
maintaining a reliable and affordable electric system that is second-to-none.
Once the new standards called for in the bill are fully implemented, it is estimated that this
legislation would create on average 32,000 jobs per year across Illinois -- on top of the 100,000
clean energy jobs that already exist in the state.
It has three essential elements:
(1) Energy Efficiency: Strengthen our energy efficiency policies to maximize the potential for
cost-effectively saving energy in buildings and plants in every part of the state;
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Creates a cumulative goal for Illinois electric utilities to use energy efficiency
measures to reduce electricity demand 20% by 2025. To ensure that ratepayers
see benefits, program spending is limited to ensure that the total savings value
exceeds the total program costs. The bill proposes carving out 12.5% of program
budgets for programs that serve low-income electricity customers. Utilities
would comply by filing a plan with the ICC every four years.
Includes energy efficiency and demand response among the utility expenses
recovered through the formula rate.
Specifies that energy efficiency and demand response are among the resources
that the agency may procure in the course of fulfilling its ongoing electricity
procurement obligations.
Modifies On-bill Financing so that more Illinoisans can participate, and that
customers may use on-bill financing for a larger range of cost-effective energy
efficiency measures; and modifies Real-Time Pricing, eliminating the
requirement that a customer electing this option must stay on it for 12 months.
2) Renewable Energy: Update and extend our renewable portfolio standard to enable solar and
wind energy projects to flourish:
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Extends and strengthens the current standard (25% by 2025) by setting a 2030
target of 35% of electricity consumed in Illinois being generated from clean
renewables by 2030; this represents a 50 percent increase in savings compared
to what would otherwise occur based on current policies.
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Empowers the Illinois Power Agency to develop a long-term plan to procure
renewable resources. The plan is approved by the ICC every two years.
Requires prevailing wage on new wind projects, and solar projects over 1000 kW.
Includes larger carve-out for distributed solar, provision for community solar for
those without rooftop access; preference for brownfield solar for utility scale
projects.
Includes renewable energy procurement among recoverable utility expenses.
Includes a robust solar program for low-income communities including job
training and consumer protection.
Maintains 2% rate cap for the entirety of the program to ensure cost
effectiveness and consumer protection.
(3) Market-based strategies to limit carbon: Directs Illinois EPA to develop a market-based
approach to comply with federal carbon standards and allow market forces to find the most
cost-effective emission reduction strategies.
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Provides that once the federal carbon dioxide emission standards for existing
power plants are final, the Illinois EPA shall create a cap and invest or similar
market-based system as part of its state implementation plan, after extensive
stakeholder input and analysis of the program.
Authorizes IEPA to establish a cap on power sector carbon dioxide emissions that
must minimally achieve the level of reduction required by the federal carbon
standards, when taken as a whole with other emission reducing policies
including the energy efficiency and renewable energy standards.
Requires IEPA to administer an auction for carbon dioxide emission allowances.
Requires IEPA to make every effort to enter into multi-state agreements but
allows adoption of an Illinois-only program if in the best interests of the state.
Establishes environmental justice protections, including cumulative impacts
assessments, establishment of Environmental Justice Communities, restrictions
on the creation of co-pollutant hotspots, and installation of pollution monitors.
Restricts program to electric sector only, prohibits offsets, and free allowances.
Proceeds from the auction shall be allocated by IEPA in the following way:
i. A minimum of 65% to energy efficiency and renewable energy, of which
20% is directed to low-income communities; preference given to
Environmental Justice Communities and communities where power
plants are or have been located. A portion of the funds will be for energy
efficiency and renewable energy projects at public institutions.
ii. A minimum of 5% to LIHEAP for bill assistance
iii. A minimum of 5% to job transition
iv. A minimum of 10% to communities affected by power plant pollution
v. A minimum of 5% for program administration, “innovative strategies.”
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