As federal funding for energy and climate projects evaporates into thin air, Illinois communities are scrambling to find alternative resources to do their part in mitigating the worst impacts of climate change.
Thankfully, Illinois offers some of the most robust state programs in the U.S. geared toward helping fill gaps left by the recent federal changes. In our most recent Resilient Communities Webinar, state experts broke down what kind of funding community leaders can expect and how communities can make the most of these programs through strategic planning.
[NOTE: While not covered during the webinar, it’s important to remember that the state also offers the “Illinois Shines” program, which provides financial incentives (known as Renewable Energy Credits) that can cover 25-35% of solar project costs. The recently passed Clean and Reliable Grid Affordability Act has created a similar incentive program for battery storage— Illinois residents and businesses should stay tuned for those grid boosting and energy savings opportunities as well! Finally, there is still time for communities to access federal tax credits before they expire; learn more here.]
IEPA Climate Pollution Reduction Grant Funding
Our first speaker, JC Kibbey, Climate Advisor at the State of Illinois, dug into the sub-grants expected to be released from the Climate Pollution Reduction Grant. In 2024, the State of Illinois was awarded the U.S. EPA Climate Pollution Reduction Grant (CRPG), which provides funds for states to develop and implement climate action plans that reduce greenhouse gas (GHG) emissions. This federal investment prioritizes clean buildings, freight, industry, agriculture, and, of course, clean power.
Highlights include:
- $12.1 million – Clean Small Engines Program
- Supports the switch to all-electric professional lawn equipment.
- $17.6 million – Community Geothermal
- Supports community-based pilot programs for networked geothermal heating.
- $2.6 million – Public Utility Clean Energy Modeling
- Supports municipal and public utilities in planning and deploying clean energy.
While these programs are expected to open in 2026, updated information and opportunities related to the Climate Pollution Reduction sub-grants are available by signing up to join the listserv.
Illinois Climate Bank Funding
Program Manager Claire Brinley from the Illinois Finance Authority (also known as the Illinois Climate Bank) highlighted several programs currently accepting applications from communities interested in upgrading buildings and planning for cleaner, more resilient energy systems.
Highlights:
- $3.6 million – Stretch Building Code Grant
- Facilitates the adoption, implementation, and enforcement of the Illinois Stretch Energy Code by supporting municipalities with the necessary resources to navigate this process.
- $2 million – Small Utility Clean Energy Planning Grant
- Facilitates the transition of municipal and cooperative utilities to cleaner energy sources by supporting their planning efforts.
- $14 million – EE Bridge Loans
- Provides short-term financing to cover the period between funding an energy efficiency project and receiving federal tax credits (including elective pay), renewable energy credits (RECs), or other financial incentives.
- $354.6 million – State Small Business Credit Initiative (SSBCI)
- Helps socially and economically disadvantaged businesses access lower-interest loans to grow through projects that provide environmental benefits or counter the impacts of climate change.
- $16 million – Community Geothermal Planning + Pilots
- Supports the planning, development, and deployment of community-scale geothermal projects.
Details for these grant programs, as well as future opportunities, can be found on the Illinois Climate Bank website.
Illinois Department of Commerce and Economic Opportunity
Our last presenter, was Hilary Scott-Ogunrinde, from the Department of Commerce and Economic Development. Hilary dove into a few energy grants designed specifically to provide upfront capital to deploy energy efficiency and renewable projects.
Highlights:
- $25 million – Equitable Energy Future Grant Program – due 12/31/2025
- Provides pre-development funding opportunities to eligible contractors to support the development of renewable energy and energy efficiency projects benefitting businesses, community organizations, and the workforce in Illinois, with a specific focus on historically disadvantaged communities.
- $8.5 million – Community Solar Grant Program – due 12/31/2025
- Provides upfront capital to support the development of community solar projects, and provides seed capital and pre-development funding to support community ownership of renewable energy projects.
- Clean Energy Jobs and Justice Fund (CEJJF)
- Offers accessible loans and grants to residents, business owners, and clean energy businesses alike to promote access to the benefits of clean energy and energy efficiency.
These grants, as well as upcoming DCEO opportunities, can be found on the DCEO website. Organizations may sign up for technical support when applying for CEJA programs.
Communities seeking funding are encouraged to watch the recorded webinar to preview the programs expected in 2026, as well as learn about current funding opportunities. By tapping into these grants, planning resources, and financing tools, local leaders can position their communities to build cleaner, more resilient futures despite uncertainty at the national level. Whether you’re just beginning to explore funding options or preparing to launch a project, now is the time to engage with these opportunities, connect with state partners, and ensure your community is ready to act when new programs open.
