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INFO SHEET: How is a law like CEJA paid for?

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US citizens should rightfully be concerned about how their taxpayer money is being spent. A big part of covering the costs comes from savings achieved through the new programs, which are substantial. Also, this law is expected to generate $39 billion in private investment, because of the security that laws like CEJA put in place. Here we summarize the information for “how it’s paid for” from the Illinois Clean Jobs website. It shows the tools lawmakers utilize to provide resources needed per each program area.

Renewable Energy Development>>Addresses renewables jobs cliff with initial budget increase:

—-Rate cap increased from 2.015% to 2.67% through mid-2023

>>Gives IPA the funding it needs to fully meet renewables goals over long-term

—-Rate cap increased to 4.88% beginning mid-2023

—-Savings from capacity market reform would be redirected to cover the renewable energy budget before the renewable energy customer charge would be used, ensuring little or no customer impact from the rate cap increase

Electrifying TransportationMajor utilities like ComEd and Ameren are required to directly fund medium and heavy-duty vehicle programs (up to $25m/yr) and EV mass-market programs (up to $17.5m/yr) within their service territories while keeping rates low. Utilities will reimburse state for EV Access for All (up to $7.5m/yr).
Energy EfficiencyA small charge on utility customer bills funds these programs whose benefits must exceed cost.
Capacity Market ReformAn Illinois capacity market would reduce the amount of money Northern Illinois customers pay on their electric bills. CEJA builds in a guaranteed savings of approximately $250 million per year, which can be redirected to cover the costs of renewable energy expansion, as well as other CEJA investments if needed.
Utility AccountabilityThe ICC’s increased oversight and public engagement duties will require an expanded agency budget to pay for staff that the ICC doesn’t currently have. However, a small investment in staff time to evaluate and vet billions of dollars in spending will create significant savings for customers. ComEd and Ameren Illinois would pay for community groups’ participation.
Equitable Workforce and Business DevelopmentThe Energy Community Reinvestment Fund collects money through a small fee on fossil-fuel pollution and a 6% Coal Severance Fee on coal extraction. The fund supports the workforce programs, as well as the just transition in former fossil fuel communities in other parts of CEJA.
Energy Access & SFAThe Solar for All Program is funded through a portion of the renewable energy charge that is on customers’ electric bills.
Support for Fossil Fuel Workers and CommunitiesThe Energy Community Reinvestment Fund collects money through a small fee on fossil-fuel pollution and a 6% Coal Severance Fee on coal extraction. The fund supports the just transition in former fossil fuel communities, as well as the workforce programs in other parts of CEJA.

What can you do?

Get the latest CEJA news, contact legislators, participate in grassroots activism, learn about town halls and other events; visit the Illinois Clean Jobs Coalition website at www.ilcleanjobs.orgTake courses on energy and climate, join in an online community and find local groups, take clean energy target actions and earn points; visit the CLEANetwork website at