A solar array catches the morning light outside Champaign. (Capitol News Illinois photo by Andrew Adams)
Article Summary
- An energy policy package incentivizing battery storage passed the General Assembly with only Democratic support and will likely become law, as Gov. JB Pritzker pledged to sign it.
- The bill creates a new funding mechanism for energy storage projects, lifts the state’s ban on new large-scale nuclear power, creates requirements for utilities to implement energy efficiency programs and more.
- Renewable industry groups and environmentalists generally supported the package, with the loudest opposition coming from large electric consumers like manufacturers. The union-backed Climate Jobs Illinois supported the final bill.
- Debate centered on affordability, with critics worried about a guaranteed increase to utility bills. The bill’s supporters said it will ultimately suppress rising electricity costs, saving customers money in the long run.
This summary was written by the reporters and editors who worked on this story.
SPRINGFIELD — A closely-watched and long-debated piece of energy legislation is set to become law after passing through both legislative chambers with the governor’s endorsement.
The bill that cleared the General Assembly Thursday funds energy storage systems through a new charge to Illinois electric customers that will take effect in 2030. The bill also lifts a longtime ban on new nuclear power developments and gives new authority to state utility regulators.
Proponents say the bill will lower costs for utility customers, but critics worry that a lack of cost-control measures will increase electricity prices for Illinois residents.
“Here’s the bottom line in my view: this package is about making energy more affordable for ratepayers in years ahead. We’re getting more energy on the grid,” bill sponsor Sen. Steve Stadelman, D-Rockford, said Thursday. “If we do nothing… the rates are going to continue to go up.”
The Illinois Senate approved Senate Bill 25 — also known as the Clean and Reliable Grid Affordability Act, or CRGA — Thursday evening, 37-22. That follows the House of Representatives approving it Wednesday night, 70-37.
It next heads to Gov. JB Pritzker, who pledged to sign the bill Thursday, noting that “what we’re trying to do is lower electricity costs.”
Pritzker’s office was heavily involved in negotiations around the bill throughout its tumultuous legislative history.
Read more: House passes energy bill amid debate over costs to consumers | With electric prices going up, advocates tried — and failed — to reform the energy sector
Versions of the bill date back to negotiations in 2024, with initial talks of an energy package cropping up in the weeks ahead of a January 2025 lame duck session. Drafts of the bill circulated throughout the spring legislative session before ultimately being abandoned.
What’s in the bill?
Senate Bill 25 — which supporters call the Clean and Reliable Grid Affordability Act, or CRGA — is the largest change to Illinois’ energy policy in at least four years. Among its core policies:
Battery storage. The core of the bill is a new incentive structure for energy storage projects. The incentives are broadly similar to how the state funds renewable developments like wind and solar power. They will result in new charges to ratepayers, although proponents say that savings from more storage on the grid will offset costs.
Energy efficiency. The bill adds new requirements for energy efficiency programs at natural gas and electric utilities. These are aimed at reducing energy demand and proponents of the measure say they will lower prices for consumers.
Nuclear power. The bill lifts a longstanding moratorium on large-scale nuclear power plants, but it also hikes fees for nuclear plant operators.
New authority for regulators. The Illinois Commerce Commission, the state’s utility regulator, would gain new authority for “integrated resource planning,” a way of setting long-term plans to control both supply-side issues, like plans for electric generation, as well as managing demand.
Labor protections. New requirements for community solar projects would close a loophole that some developers were using to avoid hiring union labor. This was a major priority for organized labor groups during negotiations.
Data centers air regulations. The bill places new requirements on the backup generators used by data centers, which require always-on power to operate.
Virtual power plants and time-of-use. The bill requires large utilities to create “virtual power plant” programs and time-of-use rate plans. This allows utilities to use small-scale residential solar and battery projects to deliver energy throughout the day.
Geothermal energy. The bill outlines a program to fund geothermal heating, a technology which uses naturally occurring heat from underground to offset the need for electric or fossil fuel-based heating.
Thermal energy networks. A new state-backed loan program would fund thermal energy network projects. These use water-filled pipes to transfer heat between energy-intensive buildings, wastewater systems and bodies of water. They can also use geothermal energy to manage heat.
Renewable industry, environmentalists celebrate
A cadre of advocacy groups, renewable industry associations and lawmakers praised the bill’s passage.
The governor said the bill was a positive step toward affordability at a time when renewable energy faces expensive headwinds across the U.S.
“For far too long, private grid operators have been hiking up rates that are making it harder for Illinois families to pay their utility bills,” Pritzker said in a statement. “At the same time, the Trump Administration has been blocking the ability to bring lower-cost energy options online.”
President Donald Trump’s domestic policy package, passed earlier this summer, sent shockwaves through the renewable industry as it ended subsidies and incentives for electric vehicles, wind power projects, solar installation and other policies key to funding renewable development.
David Braun, head of sales and marketing for the Illinois-based renewable tech company Intelligent Generation, said that law caused “a lot of shock and uncertainty” but that the industry was “figuring it out.”
Illinois’ bill, according to Braun, signals that the future is bright for renewables.
“It’s good news for the industry, and I think it’s good news for the state of Illinois and for ratepayers,” Braun said.
The bill incentivizes new storage projects, which state officials at the Illinois Power Agency found will suppress electricity prices in an analysis they provided to lawmakers. It also mandates new programs to decrease strain on the grid, like energy efficiency programs.
Amy Heart, senior vice president for policy at the California-based solar company Sunrun, said the bill’s “virtual power plant” program will allow utilities to aggregate resources like residential solar and storage installations and coordinate them.
“The idea of utilizing electrons that are already stored in the batteries that are in houses and businesses — but adding them all up and dispatching them at times we need them the most in Illinois — reduces the amount of energy that ComEd or Ameren has to go to the wholesale market and buy from other states,” Heart said.
Environmental groups also praised the bill, with representatives of the Natural Resources Defense Council, Illinois Clean Jobs Coalition and others saying the policy was a major step in keeping prices low.
“The legislation bolsters tools and programs the state needs to achieve its clean energy goals and rebukes recent federal efforts to undermine abundant, cost-effective wind and solar power,” James Gignac, Midwest policy director for the climate and energy program at the Union of Concerned Scientists, said in a statement.
After a prolonged negotiation, labor groups also signed on to support the bill. They held out full support until lawmakers moved to close a loophole that allowed community solar developers to avoid using project labor agreements. Joe Duffy, head of the labor-affiliated Climate Jobs Illinois, lauded the bill’s passage. He noted that it “ensures the clean energy transition delivers good-paying, local union jobs.”
Criticism from Republicans, business groups
While affordability was at the center of proponents’ commendations of the policy, it was also central to critics’ attacks. The bill’s energy storage funding mechanism will put a guaranteed increase to Illinois consumers’ utility bills, which sparked significant opposition from Republicans, business groups and some Democrats.
Sen. Willie Preston, D-Chicago, broke with his party as one of three Senate Democrats to vote against the bill. Sen. Michael Hastings, D-Frankfort, and Sen. Patrick Joyce, D-Essex, also voted no.
“This is about standing for integrity, for people who do not have armies of lobbyists down here giving talking points to people to justify raising their bills when they’re already struggling,” Preston said. “I have to vote no.”
Preston had advocated for an alternative funding mechanism — one that used state-backed loans and not an increase to ratepayers — in the months leading up to the bill’s passage.
Groups representing large businesses cited similar concerns. Illinois Industrial Electric Consumers Chair Phillip Golden said the bill’s funding “makes no sense, especially when the same objectives are achievable without forcing more costs on ratepayers.”
Business groups and Republicans also raised concerns over a provision that grants the Illinois Commerce Commission, which regulates utilities, the authority to create long-term “integrated resource plans.” These plans could include goals for the supply of electricity and managing demand.
By giving the ICC that authority, according to critics, the General Assembly is ceding too much authority to the executive branch.
“This is a huge overreach by the governor’s administration,” Sen. Sue Rezin, R-Morris, said. “In this bill, he just gave all of the power for energy making decisions to the ICC — five unelected officials that he appoints.”
Rezin, a long-time advocate for allowing more nuclear construction in the state, said the bill’s elimination of the state’s nuclear moratorium might not mean more nuclear power because of the authority granted to the governor’s appointees.
“Do you think they’re going to bring nuclear online? In the past, they’ve shown they don’t support it,” Rezin said. “They’re going to go towards wind, solar, battery and transmission.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
