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Illinois - Annual Minimum Equity Standard (MES) Compliance
Illinois - Annual Minimum Equity Standard (MES) Compliance
Ana - LR Product Expert avatar
Written by Ana - LR Product Expert
Updated over a week ago

The Minimum Equity Standard (MES) is a compliance requirement under the Illinois Shines Program intended to help historically underserved communities participate in and benefit from the growing clean energy economy in Illinois. The MES originated as a provision in the Climate & Equitable Jobs Act (CEJA) of 2021 and went into effect on June 1, 2023 ahead of the 2023/ 2024 Program Year.

Background

  • All participants in the Illinois Shines Program must file

    1. an annual MES Compliance Plan (due June 3, 2024) and

    2. an annual MES Year- End Report (due July 15, 2024)

  • For this Program year, participants are required to have 10% of their project workforce that identifies as an Equity Eligible Person (“EEP”) to comply

Who does this apply to?

  • All partners that conduct business in Illinois

Is this required?

  • Yes, MES compliance is required by Public Act 102-0662 and is a condition of Program participation

  • Any entities that do not have a 2024/ 2025 MES Compliance Plan submitted by the deadline will receive a Notice of Potential Violation (NOPV) from the Program which may lead to disciplinary action, including suspension from the program

How do I complete the Compliance Plan (due June 3, 2024)?

  • All partners must:

    1. file a 2024/ 2025 MES Compliance Plan by June 3, 2024. One report needs to be completed per company, and

    2. Provide Palmetto with the confirmation screen/ email for verification

How do I complete the Year- End Report? (due July 15, 2024)?

  • All partners must:

    1. file a 2023/ 2024 Year- End Report by July 15, 2024. One report needs to be completed per company, and

    2. Provide Palmetto with the confirmation screen/ email for verification

  • For additional assistance, please see the step-by-step guidance on completing the Compliance Plan attached and available for download below.

  • Please note, companies are required to verify employment of any employees identified as Equity Eligible Persons (EEPs). We provide guidance on how to identify an employee’s EEP status based on their zip code in our guidance attached below.

  • To verify EEP employment, we recommend emailing the Program at <[email protected]> and requesting a SharePoint folder be created that you can upload pay stubs or another form of employment proof into.

How do I determine if my company meets the MES?

  • Palmetto recommends the following:

    1. Determine your “Project workforce” (ie. your total number of in-state employees)

    2. Enter the zip code of each employee’s primary residence in the Equity Eligible Community Map. If the zip code is in an Equity Eligible community, that employee qualifies as an EEP.

    3. Finally, divide the number of EEPs you employ by the total number of employees. If this is greater than 10% you are currently in compliance. For example, 1 EEP / 10 total employees = 10%

What if I don’t meet the MES?

  • If 10% of your employees are not defined as an Equity Eligible Person (EEP), then you will have to submit a Waiver Form in addition to your Compliance Report.

  • If applicable, the Waiver form should be completed and returned to the Program at [email protected]

  • Minimum Equity Standard (“MES”): This is a new requirement for all participants in the Illinois Shines/ ABP which mandates 10% of each participant’s Project Workforce be designated as an Equity Eligible Person (“EEP”). The MES was included in CEJA which was signed into State law in September, 2021.

  • Project Workforce: Is defined to include employees, contractors and their employees. Job duties are directly required by or substantially related to the sale, construction, and/or operation of a project participating in the Illinois Shines/ ABP.

  • Equity Eligible Person (“EEP”): Is defined as an individual meeting one or more of the following criteria:

    1. Graduates or current or former participants in eligible workforce programs

    2. Persons who are graduates of or currently enrolled in the foster care system

    3. Persons who were formerly incarcerated

    4. Persons whose primary residence is in an equity eligible investment community

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