Energy Efficiency Trust Fund

According to § 20 ILCS 687/6-6, the statute this trust is under will be repealed on December 31, 2030. Illinois's 1997 electric-industry restructuring legislation created separate public benefits funds that support renewable energy and residential energy efficiency. The efficiency fund is known as the Energy Efficiency Trust Fund. Electric utilities and alternative retail electric suppliers contribute annually a pro rata share of a total amount of $3 million based on the number of kilowatt-hours sold during the previous year. The funding mechanism was established for 10 years in January 1998; the law was last amended in June 2024, with the funding mechanism scheduled to last through 2030. Additional funds may be accumulated through non-compliance fees as part of the Energy Efficiency Portfolio Standard (EEPS). For both natural gas and electric utilities, failure to submit an energy reduction plan will result in a fine of $100,000 for each day until the plan is filed. This penalty is deposited in the Energy Efficiency Trust Fund and may not be recovered by rate payers. Plans are due on September 1 every three years. If an electric utility fails to comply with its plan after 2 years, it must make a contribution to the Low-Income Home Energy Assistance Program (LIHEAP). Large utilities (those with more than 2,000,000 customers on December 31, 2005) must contribute $665,000, and medium utilities (those with between 100,000 and 2,000,000 customers) must contribute $335,000. Utilities that fail to meet their plans again after the third year must make another contribution to the fund ($665,000 for large utilities and $335,000 for medium utilities). For natural gas utilities that fail to meet their efficiency plans after three years, large utilities (those with more than 1,500,000 customers on December 31, 2008) must pay $600,000 into LIHEAP, medium utilities (those with 500,000-1,500,000 customers on December 31, 2008) must pay $400,000, and small utilities (those with 100,000-500,000 customers on December 31, 2008) must pay $200,000. The Energy Efficiency Trust Fund is administered by the Illinois Environmental Protection Agency, which is authorized to determine how funds are used. Projects eligible for funding include energy-efficiency upgrades for low-income residents, new construction and building retrofits, window upgrades, appliance upgrades, lighting upgrades, insulation and other efficiency measures approved by the EPA. Currently, the Energy Efficiency Trust Fund supports the Illinois Energy Efficient Affordable Housing Construction Program, which provides funding to not-for-profits to support energy efficiency in low-income housing (both new construction and retrofits) as well as several other energy efficiency initiatives. For details regarding the Energy Efficiency Trust Fund's programs and projects funded, see this report.