ISACo has reviewed the most recent amendment to SB 25. The analysis below provides information about the content. ISACo will provide updates regarding the energy bill.
Overview
Amendment 3 to SB 25 (Representative Hoffman, D-Swansea) represents a sweeping omnibus energy and infrastructure reform bill, touching nearly every major area of Illinois energy policy. The legislation would create new Acts, expand regulatory authority, and modify over a dozen existing statutes — affecting electric utilities, cooperatives, renewable energy programs, electric vehicle incentives, and local siting authority.
In short, the measure aims to advance Illinois’ clean energy transition by expanding oversight, improving transparency in energy planning, investing in grid modernization, and addressing local authority over renewable and energy storage projects.
Key Components
Municipal and Cooperative Electric Utility Transparent Planning Act
Creates a new planning framework requiring certain municipal utilities and electric cooperatives to undertake integrated resource planning (IRP).
Establishes:
- Mandatory stakeholder meetings to ensure public input.
- A prequalified consultant list for entities preparing IRPs.
These provisions increase transparency in how smaller, locally owned electric providers plan generation and procurement.
Utility Data Access Act
- Directs the Illinois Commerce Commission (ICC) to develop rules for how utilities must share data with regulators, researchers, and possibly the public.
- Aims to improve data-driven decision-making and accountability.
Energy Transition and Electrification Programs
Amends several existing statutes to expand clean energy, workforce, and equity initiatives:
Energy Transition Assistance Fund: Updated provisions for funding allocations tied to workforce and community transition programs.
Energy Transition Act: Revisions to the Illinois Climate Works Preapprenticeship Program and Jobs and Environmental Justice Grant Program, signaling a continued focus on equitable workforce development.
Electric Vehicle Act and Electric Vehicle Rebate Act: Updates to beneficial electrification policies, rebate programs, and user fee structures, including funding for electric vehicle charging infrastructure and grants for transportation electrification.
Thermal Energy Network Revolving Loan Program: New loan fund created under the Illinois Finance Authority Act to support district-scale heating and cooling systems using renewable or waste heat sources.
Illinois Power Agency and Renewable Energy Reforms
- Expands the Illinois Power Agency’s powers related to renewable energy procurement, the Illinois Solar for All Program, and the Renewable Energy Resources Fund.
- Strengthens annual reporting and planning obligations to improve oversight and integration with broader grid and decarbonization goals.
Local Government Impacts
Property Tax Code: Creates a new division on commercial energy storage systems, likely to establish assessment methods, exemptions, or valuation standards for taxing purposes.
Counties Code:
- Updates provisions governing commercial wind and solar facilities.
- Adds new sections addressing energy storage system siting and permitting, potentially requiring counties to adjust local ordinances.
- Introduces a Solar Bill of Rights, which may set statewide standards for permitting, access, and dispute resolution.
Illinois Municipal Code:
Mirrors many of these provisions for municipalities, ensuring consistent treatment of renewable and storage projects.
Public Utilities Act Revisions
Extensive changes expand the ICC’s oversight and modernize energy policy:
- Updates to energy efficiency, demand-response, net metering, distributed generation rebates, and multi-year grid planning.
Establishes new initiatives:
- Thermal Energy Network Pilot Program
- Virtual Power Plant Programs
- Time-of-Use Pricing for customers
Energy Reliability Corporation of Illinois (a potential coordinating entity for reliability and grid performance)
Powering Up Illinois (possibly a statewide grid modernization effort)
Adds new administrative structures:
Interconnection Working Group and Interconnection Monitor to streamline distributed energy resource (DER) connections.
Siting Appeals Board authorizing the ICC to adjudicate disputes between counties and industry over wind and solar project siting.
Construction and Environmental Standards
Electric Transmission Systems and Construction Standards Act: New requirements for contractors involved in transmission projects.
Environmental Protection Act: Expanded greenhouse gas monitoring and changes to the permitting process to align with climate goals.
Illinois Nuclear Safety Preparedness Act: Updates nuclear safety planning, definitions, and fee structures, maintaining the state’s readiness for nuclear-related incidents.
Policy Objectives
The amendment appears designed to:
Enhance transparency and accountability in energy resource planning by requiring IRPs for municipal and cooperative utilities.
Accelerate clean energy deployment through expanded funding, planning, and regulatory tools.
Support workforce and equity initiatives to ensure community participation in the energy transition.
Provide consistent statewide standards for renewable energy, energy storage, and siting practices.
Modernize Illinois’ electric grid and improve reliability while supporting electrification and data-driven regulation.
Implications for Counties
Planning and Siting: Counties may need to update ordinances to align with new state standards for wind, solar, and energy storage facilities.
Taxation: The new division in the Property Tax Code could alter how local governments assess and tax energy storage systems.
Appeals Board: The creation of a Siting Appeals Board may affect local decision-making authority by providing developers with a new path to challenge local siting denials.
Workforce and Grant Opportunities: County governments and local partners could benefit from expanded funding through energy transition and workforce development programs.
Transparency and Coordination: Increased planning requirements may create new opportunities for county input during integrated resource planning or stakeholder processes.
Summary
The amendment to SB 25 would represent one of the most comprehensive overhauls of Illinois energy policy since the 2021 Climate and Equitable Jobs Act (CEJA). It expands the state’s role in energy planning and data management, strengthens environmental standards, and modifies local government authority related to siting and taxation of renewable and storage facilities.