CLIMATE BANK ACCOMPLISHMENTS TO DATE

In calendar year 2022 (the first 12 months of IFA’s Climate Bank Designation),

CLIMATE BANK OVERVIEW – HIGH LEVEL WORKING DRAFT

As the Climate Bank, IFA is actively pursuing federal resources to combat climate change through finance within an equitable framework that reflects the diversity of Illinois. Periodically, we update this to keep stakeholders informed.

Section 40101(d) - Grid Resilience Programs

Under Section 40101(d) of the Bipartisan Infrastructure Law, the U.S. Department of Energy is providing funds to States to create new grants programs focused on improving the resilience of their electric grids. The Illinois Finance Authority, in its new role as the Illinois Climate Bank, will be responsible for distributing these grants in Illinois with a focus on targeting innovative approaches and funding gaps to improve reliability and resilience, particularly in disadvantaged communities that are least able to respond to power outages. The State will be receiving $8 million/year for the next five years to invest in projects. Funds can be used for a variety of investments, including for microgrids, weatherization, and automation. The State will be submitting its application to the U.S. Department of Energy in March 2023, with funds expected to be available in late 2023.

Materials:

FEDERAL Section 134 of the Inflation reduction Act of 2022 - Greenhouse Gas Reduction Fund Programs

Engaging the Public to Shape the Greenhouse Gas Reduction Fund

The first-of-its-kind program will provide competitive grants to mobilize financing for clean energy and climate projects that reduce greenhouse gas emissions.

Greenhouse Gas Reduction Fund Agency Listening Sessions

11/10/22 Listening Session Recording
Listening Session Material
11/10/22 Listening Session Minutes
11/17/22 Listening Session Recording
11/17/22 Listening Session Minutes

USEPA GGRF Website

The following information is posted on the GGRF website:

General Background from USEPA:

"The Greenhouse Gas Reduction Fund is an unprecedented opportunity to accelerate the adoption of greenhouse gas reducing technologies and position the United States to compete and win the 21st century economy.” --EPA Administrator Michael S. Regan.

The Greenhouse Gas Reduction Fund provides $27 billion to EPA for expenditure until September 30, 2024. This includes:

$7 billion for competitive grants to enable low-income and disadvantaged communities to deploy or benefit from zero-emission technologies, including distributed technologies on residential rooftops;

Nearly $12 billion for competitive grants to eligible entities to provide financial and technical assistance to projects that reduce or avoid greenhouse gas emissions; and

$8 billion for competitive grants to eligible entities to provide financial and technical assistance to projects that reduce or avoid greenhouse gas emissions in low-income and disadvantaged communities.

EPA is launching a coordinated stakeholder engagement strategy to help shape the implementation of the Greenhouse Gas Reduction Fund and ensure the full economic and environmental benefits of this historic investment are realized by all Americans.”

State Small Business Climate Initiative

Climate Bank Finance

The Small Business Loan Program of the Illinois Finance Authority

***WORK IN PROGRESS-NOT YET LIVE FROM IFA/CLIMATE BANK!***

  • Though substantial funding has been designated for allocation to the State of Illinois, Treasury has not yet fully approved the State’s Application for SSBCI funds.  Once this step occurs, IFA will finalize all legal documentation, fulfill its staffing requirements, and post its program terms, conditions, and other requirements on its website, https://www.il-fa.com/
  • Note that all SSBCI-supported funding provided the Illinois Department of Commerce and Economic Opportunity and the Illinois Finance Authority may only be used to support the start-up or expansion of businesses physically located in Illinois.
  • Borrowers do not apply directly to DCEO or IFA. All requests for SSBCI-funded assistance must be presented through a bank or other financial institution formally enrolled at DCEO and/or IFA.
  • Grants are not available under SSBCI capital programs.
  • As Illinois’ officially designated “Climate Bank”, IFA will be exclusively focusing on providing its SSBCI-supported financing for the start-up and/or expansion of ventures directly involving environmentally-supportive, “green” businesses, including those that address the adverse impacts of climate change.

Such projects include, but are not limited to;

  • clean air/water projects and wastewater treatment
  • production/installation of wind, hydro, or solar power equipment
  • clean energy generation/alternative fuels, new battery technologies
  • production/installation/servicing of electric vehicles and charging stations
  • energy conservation
  • bio-material production
  • sustainable agricultural practices, etc.

If your planned request for SSBCI-supported financing is for an activity other than those climate change/environmentally green examples listed above, your request for program information should, instead, be directed to The Illinois Department of Commerce and Economic Opportunity, through its website, https://www2.illinois.gov/dceo/Pages/default.aspx