SPRINGFIELD – Thanks to a new law introduced by State Senator Rachel Ventura, units of local government can now apply for loans through the Illinois Finance Authority Climate Bank in an effort to expand clean energy infrastructure while saving taxpayers money on interest rates.

“Every level of government needs to do their part when it comes to mitigating the effects of climate change,” said Ventura (D-Joliet). “Through the IFA bank, these low-rate loans to local government will not only save taxpayers money in the long run, but also address and tackle the effects of climate change.”

Senate Bill 3597 allows units of local government to apply and obtain a loan from the Illinois Finance Authority Climate Bank to build, purchase, remodel or improve clean energy infrastructure.

"Good-paying jobs, environmental sustainability and long-term economic growth are at the heart of the clean energy goals Illinois lawmakers have been pursuing for years, and this measure is another step toward making those goals a reality," said House Majority Leader Robyn Gabel (D-Evanston). "In addition to financial benefits, communities across our state will receive the benefit of preserving our environment, a responsibility we have towards future generations who deserve a natural world they can enjoy."

Under previous law, units of local government borrowed from the bond market, but by borrowing from the Climate Bank, they will receive a lower interest rate, saving all taxpayers money. After the Climate and Equitable Jobs Act passed in 2021, cities in Illinois were allowed to borrow funds from the Climate Bank. In 2023, the first full year of IFA's designation as the Climate Bank, it mobilized $256 million for climate finance purposes. To date, they have received $60 million in federal funding awards, with more anticipated.

"SB 3597 will help local property taxpayers by lowering the cost for Illinois local governments to finance public clean energy infrastructure - solar panels, energy storage, energy efficiency, building electrification, electric vehicle fleets/charging infrastructure - using one-time only funds provided by the Biden/Harris Administration through the federal Inflation Reduction Act,” said Chris Meister, executive director of the Illinois Finance Authority/Climate Bank.  “SB 3597 is another tool to help make Governor JB Pritzker's vision of an equitable climate-friendly future for all the people of Illinois reality.”

Senate Bill 3597 was signed into law Friday and is effective immediately.