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Illinois Energy Policies and Programs:Driving Economic DevelopmentNational Conference of State LegislaturesLegislative SummitWednesday, August 8, 2012Kate TomfordIllinois Energy OfficeDept. of Commerce & Economic Opportunity
Illinois’ Energy ContextSource: NASEO, “Illinois Energy Profile,” developed by DEDI
Illinois’ Energy ContextSource: NASEO, “Illinois Energy Profile,” developed by DEDI
Why PromoteClean Energy in Illinois?Economic benefits Generates economic growth Retains and creates quality jobs Leverages Illinois’ competitive advantages in transmissioninfrastructure, transportation infrastructure, skilled workforce inmanufacturing, research institutions.Consumer benefits Hedges against volatility in fossil fuel prices Hedges against future costs of environmental externalities Renewables and efficiency programs complement each other astools to help consumers mitigate higher energy costs Improves air quality by reducing emissions
A Very Brief History ofIllinois Energy Policy2011 Smart grid legislation DG carve-out in RPS2010 Long-Term RE contracts awarded Solar ramp-up established in RPS2009 American Recovery & Reinvestment Act (ARRA) Renewable Portfolio Standard expanded to ARES Energy Efficiency Portfolio Standard for gas Solar carve-out established in RPS2007 Renewable Portfolio Standard (RPS) Energy Efficiency Portfolio Standard for electricity (EEPS) Illinois Power Agency (IPA) created1997 Electric market restructuring
Renewable Energy in Illinois Illinois RPS compliance cost was 53.5m;aggregate savings was almost 177min total load payment for generation. 300 companies are part of the RE supplychains in Illinois. 1 MW of solar/wind power creates 15-20manufacturing jobs – jobs from installation,operations and professional services jobs. Chicago region is home to 13 corporate HQsof major wind power companies – generatesprofessional services jobs in finance,insurance, real estate and law. In total, Illinois RE sector companies employan estimated 18,000 people.Sources: ELPC, “The Clean Energy Supply Chain in Illinois:Wind, Solar and Geothermal,” July 2011; ELPC estimates
Growth in IllinoisWind Power Capacity (MW)Source: ELPC, “The Clean Energy Supply Chain in Illinois: Wind, Solar and Geothermal,” July 2011
Energy Efficiency Portfolio StandardComEdAmerenElectric EfficiencyPrivate SectorBusinessesResidentialNon-profitsDCEOElectric EfficiencyGas EfficiencyPublic SectorGovernmentsK-12 schoolsCommunity collegesPublic universitiesLow-incomeResidential SectorAffordable enGas EfficiencyPrivate SectorBusinessesResidentialNon-profits
Estimated Statewide EEPS BudgetYearElectricNatural GasFY 2011-12 216 million 60 millionFY 2012-13 220 million 88 millionFY 2013-14 220 million 120 million
EEPS Impact(before Smart Grid Bill)201520202025Total Program Cost(in millions of 2009 )204.4184.6168.5Consumer Match(in millions of 2009 )284.1256.5234.3Consumer Savings(in millions of 2009 )528.81,064.51,600.2Net Gain in Total Jobs(Actual)3,0005,9008,200Benefit/Cost Ratio1.61Source: ACEEE, “Energy Productivity: Efficiency Benefits to Power Illinois Jobs and the Economy,”by Skip Laitner, August 2011; study commissioned by NRDC
EEPS Impact(after Smart Grid Bill)201520202025Total Program Cost(in millions of 2009 )267.6241.6220.6Consumer Match(in millions of 2009 )327.7295.9270.2Consumer Savings(in millions of 2009 )651.91,392.72,133.5Net Gain in Total Jobs(Actual)3,5007,50010,800Benefit/Cost Ratio1.76Source: ACEEE, “Energy Productivity: Efficiency Benefits to Power Illinois Jobs and the Economy,”by Skip Laitner, August 2011; study commissioned by NRDC
DCEO Energy Incentive ProgramsEfficiency Public sectorelectricity andgas efficiencyrebates Low-incomeresidentialenergyefficiency Industry trainingand education WeatherizationRenewables Solar Wind Biomass BiogasBiofuelsEVsARRA R&D Newfacilities Retrofits Chargingstationrebates Manufacturinggrants State EnergyProgram EnergyEfficiency &ConservationBlock Grant Energy EfficientApplianceRebates Weatherization
Illinois Energy Office ARRA SEPSpending by Program Area
ARRA SEP Leveraged Funds 25 differentcompanies funded. To date: 1,154jobs created; 712 jobs retained.
Ingersoll Machine Tools Project located in Rockford Retrofitted existingequipment; designed andbuilt new equipment formachining of wind turbinerotor hubs. 10.3M total project cost 5M grant Created 82 jobs to date Retained 18 jobs to date
www.IllinoisEnergy.orgKate Tomford(312) 814-1985kate.tomford@illinois.gov
insurance, real estate and law. In total, Illinois RE sector companies employ . Nicor . Integrys . DCEO . Ameren . Electric Efficiency Electric Efficiency Gas Efficiency . Appliance Rebates Weath
