Illinois Budget Crisis Threatens Ratepayer Protection and Clean Energy Programs

While the Illinois budget crisis wreaks havoc on social programs across the state, the budget impasse also poses a major threat to three other major funds. These funds, each funded by ratepayers, not tax dollars, that are the primary funding for Illinois’ programs to protect the most vulnerable, lower bills through energy efficiency, and create jobs in renewable energy projects. Each of these funds have been specifically targeted during this budget crisis. We must act together to ensure that these important resources are protected in this time of crisis.

psp take action button2SB3382 and HB5791 will protect our most vulnerable, create good jobs in clean energy, and reduce pollution. SB3383 and HB5971 both ask for full funding and protection for the the Energy Efficiency Portfolio Standards (EEPS) Fund, while SB3383 also asks for full funding and protection for the Low Income Heating and Energy Assistance Program (LIHEAP) and the Renewable Energy Resources Fund (RERF).

1. Low Income Heating and Energy Assistance Program (LIHEAP) This fund is a mix of ratepayer and federal funds, and helps low income utility customers pay gas and electric bills to avoid the shut-off of service. Funds are also used to help these customers save energy through weatherization projects. More than 300,000 vulnerable Illinois households use LIHEAP to assist with energy costs. This includes seniors, disabled persons and low-income families. LIHEAP is funded by federal funds and a charge on utility bills – no state tax dollars are provided. The program consists of two funds – the Supplemental Low-Income Energy Assistance Fund and the Low Income Home Energy Assistance Block Grant Fund In 2015, the LIHEAP program was targeted for elimination. SB 3383 would protect both LIHEAP funds in Fiscal Year 2017 by appropriating the full amount of anticipated funds collected from ratepayers and received from the federal government to protect our most vulnerable.

2. Renewable Energy Resources Fund (RERF) This fund, held at the Illinois Power Agency, is collected from alternative electric suppliers and is supposedly dedicated to buying renewable energy as part of Illinois’ electric suppliers. Payments from these alternative suppliers are part of their required compliance with Illinois’ Renewable Portfolio Standard, which requires a certain percentage of each supplier’s energy portfolio to come from renewable sources. To date these funds have been used to buy renewable energy credits from newly constructed solar energy projects – directly creating good jobs in Illinois. Both the pending Clean Jobs Bill (HB2607/SB1485) and ComEd’s Future Energy Plan (HB3328/SB1879) depend on RERF dollars for a new low-income community solar program. No state tax dollars are used on these programs. They are entirely collected from electric suppliers. In 2015, $98 million was swept from the RERF. SB 3383 would protect RERF funds in Fiscal Year 2017 by appropriating $120M, the approximate current balance in the Fund, to create jobs in solar energy projects.

3. Energy Efficiency Portfolio Standards (EEPS) Fund The Energy Efficiency Portfolio Standard (EEPS) at DCEO is used by ComEd and Ameren to help homes, businesses, and local governments save energy. These projects have lowered electric bills by well over $1 billion in the last decade and created good jobs modernizing and retrofitting homes, businesses, and local government buildings with energy-saving technologies. No state tax dollars are used on these programs. They are entirely collected from ratepayers and used by ComEd and Ameren on energy efficiency projects. In 2015, these funds were targeted for sweeps. SB 3383 would protect EEPS funds in Fiscal Year 2017 by appropriating up to $125M, or the maximum amount collected from ratepayers, to help lower electric bills through energy conservation.

DON’T SWEEP AWAY ILLINOIS’ CLEAN ENERGY FUTURE

Act Now — Support SB 3383 and HB5791

 

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