Illinois

The Illinois Department of Commerce and Economic Opportunity (DCEO) Bureau of Energy and Recycling administers the public sector energy efficiency programs required by the Illinois Energy Efficiency Portfolio Standard (EEPS). Standard rebates and grants are available for many lighting, refrigeration, HVAC, and motor efficiency improvements. Custom rebates and grants are available for some measures not covered by the standard rebates. Pre-approval is required for all grants, custom rebates, and some standard rebate applications. The DCEO encourages all applicants to submit pre-approval applications in order to verify project eligibility and reserve funding. The program is available to local, state, and federal governments; public school districts; community colleges; and universities that receive electricity distribution service from Commonwealth Edison (ComEd) or Ameren affiliated utilities (AmerenCILCO, AmerenIP, and AmerenCIPS). This includes customers that purchase energy through an alternative supplier.*  
 
Standard incentive amounts vary according to equipment type, size, and relative level of energy efficiency. Custom incentives are based on the amount of energy that a given improvement saves annually, up to $0.08/kilowatt-hour (kWh). Custom measures must have a payback period of between one and seven years. Incentive totals may not exceed 100% of the incremental measure cost or 75% of the project cost. In addition, rebates may not exceed $50,000 and grants will not exceed $200,000.  
 
Projects involving only equipment that qualifies for a standard incentive are not eligible for custom incentives. However, projects that involve a combination of standard measures and measures not eligible for standard incentives are permitted to apply under the custom program. In addition, projects involving standard measures with operating hours substantially greater than the typical operation may apply under the custom program. The following measures are specifically defined as ineligible to receive incentives:

• Fuel switching  
  
• Projects that replace existing equipment with like equipment  
  
• Demand response measures that do not lower overall energy consumption  
  
• Measures installed or receiving funding under another utility, DCEO, or Clean Energy Community Foundation incentive program  
  
• Custom projects with paybacks longer than the equipment life  
  
• Used equipment

The program is in its second year (June 1, 2009 to May 31, 2010). The incentive amounts were increased during the second year because of success during the first year. Measures installed or costs incurred outside of this time period are not eligible for incentives. Please consult the program website for additional details on program eligibility and application requirements.  
 
*For customers located outside of the Ameren and ComEd service territories (that do not pay the EEPS surcharge), DCEO is offering this program with some modifications utilizing $5 million dollars in funding from the American Recovery and Reinvestment Act (ARRA). See DCEO's website for additional eligibility and application procedures. Applications for the ARRA funded Electricity Efficiency Grant Program are due by October 1, 2009.