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Yes: 378 • No: 173
IllinoisHB1700104th General Assembly (2025–2026)HouseWALLET
FUNDS-COMMUNITY REINVESTMENT
Sponsored By: Sponsor information unavailable
Signed by Governor
Summary
Amends the Deposit of State Moneys Act and the Public Funds Investment Act. Provides that the State Treasurer or any public agency may consider the current and historical ratings that a financial institution has received under the Illinois Community Reinvestment Act when deciding whether to deposit State or public funds in that financial institution. Provides that, effective January 1, 2026, no State or public funds may be deposited in a financial institution subject to the Illinois Community Reinvestment Act unless either (i) the institution has a current rating of satisfactory or outstanding under the Illinois Community Reinvestment Act or (ii) the Department of Financial and Professional Regulation has not yet completed its initial examination of the institution pursuant to the Illinois Community Reinvestment Act. Makes conforming changes. Effective January 1, 2026.
financial institutions and licensingassignmentsexecutive
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Bill Overview
Analyzed Economic Effects
104 provisions identified: 35 benefits, 8 costs, 61 mixed.
More efficiency help for low-income homes
Utilities serving more than 3 million customers must spend at least $40 million a year on efficiency for low-income households. Utilities serving more than 500,000 but fewer than 3 million customers must spend at least $13 million a year. The program’s low-income threshold is 80% of area median income or less. At least 80% of the budget dedicated to low-income customers must go to whole-building weatherization.
Grants for storage at former coal sites
The state provides up to $280.5 million in grants for storage facilities at qualifying coal sites: up to three in the MISO region and two in the PJM region. A facility must have at least 37 megawatts of storage capacity. Grants pay $110,000 per megawatt each year for 10 years after commercial operation, with total annual payments capped at $28.05 million. Owners must meet staffing, wage, reporting, and labor-agreement rules; applications closed March 31, 2022, and awards were due by June 1, 2022.
More funding for low-income solar
The state plan provides up to $50 million per delivery year for Illinois Solar for All and related programs, starting with the year that began June 1, 2018. Four delivery years—beginning June 1, 2021, 2024, 2027, and 2030—also receive $10 million for workforce programs and reporting. The Commission must consider program experience, results, and evaluations. These amounts fund programs; the law does not set a payment for each household.
More utility energy storage across Illinois
The Illinois Power Agency must procure contracts for at least 1,038 megawatts of stand-alone storage: 450 megawatts in MISO Zone 4 and 588 megawatts in the PJM ComEd Area. The initial procurement is due by August 26, 2026, or 90 days after the law takes effect, whichever comes first. Contracts last 20 years, and projects must be ready by December 31, 2029, or an Agency-set date no later than December 31, 2030. Further procurements during 2027 and 2028 must bring contracted storage to 3,000 megawatts, with more possible if planning shows a need.
New rebates for home energy systems
Customers who are not eligible for net metering can receive rebates of $250 per kilowatt of generation and $250 per kilowatt-hour of storage. Systems that would have qualified for net metering before January 1, 2025, and have not received a generation rebate, can receive $300 per kilowatt through December 31, 2029; the generation rate becomes $250 on January 1, 2030. Qualifying storage has separate rates, including $300 per kilowatt-hour through 2029. Utilities serving more than 200,000 customers must include qualifying storage, including third-party-owned systems, in rebate tariffs; storage limits, program participation, and dispatch rules apply, with dispatch voluntary for some stand-alone systems.
Solar and storage rebates for customers
Customers with qualifying solar or other distributed-generation systems and storage can get utility rebates. Before the threshold date, rebates are generally $250 or $300 per kilowatt for generation and per kilowatt-hour for storage. The threshold date is December 31, 2024, or when the utility's new tariff takes effect, whichever is later. After that date, the Commission sets rebate amounts; generation rebates have a $250 minimum, with the $300 tier applying before December 31, 2029. Systems must meet size, location, inverter, and other rules, and some projects must be completed within 24 months to keep their rebate value. Utilities recover eligible rebate and implementation costs from customers over 15 years, with a return on the unpaid balance.
Power plant emissions limits tighten over time
Beginning June 1, 2026, covered power plants face phased limits on greenhouse gases and other pollutants. Nonpublic coal- and oil-fired units must reach zero emissions by January 1, 2030. Public coal units must cut CO2e emissions 45% by January 1, 2035, and reach zero by December 31, 2045; plants missing the reduction target by December 31, 2035, must retire units or meet it by June 30, 2038. Gas-unit deadlines range from January 1, 2030, to January 1, 2045, based on emissions, location, operating history, and heat rate; some units also face 50% reduction targets and operating-hour limits. Public gas and combined-heat-and-power units must reach zero emissions by January 1, 2045. Starting June 1, 2026, the Commission may delay reductions only as long as needed to address a resource shortfall, and must recommend ways to avoid future delays.
More renewable power, higher cost limits
The law raises utility renewable-energy targets to at least 40% by delivery year 2030 and keeps them there afterward. The Illinois Power Agency must try to reach 50% by 2040. Annual renewable credit deliveries rise to 45 million by delivery year 2030, with at least 55% from solar and set shares for different solar projects. The procurement cost limit gets its first inflation adjustment for the year starting June 1, 2026, and rises by another 1.65 percentage points starting June 1, 2027. When forecast costs are below the available budget, the Agency must keep buying credits until the budget is used; alternative compliance payments from hourly-price customers fund renewable purchases in the next plan year.
More flexibility for community solar subscribers
Subscribers can keep or transfer a community solar subscription after moving within the same utility service area, subject to reasonable plan limits. Qualifying shared and community solar projects up to 5,000 kilowatts can receive credits for subscribers’ shares of project output. For some projects, large utilities must provide money credits and offer net crediting on request; the project owner’s net-crediting charge cannot exceed 2% of bill-credit value. Owning or subscribing to a project alone does not make someone a public utility or electricity supplier.
More utility bill and data information
Before installing a qualifying home electrification measure, a utility must estimate its effect on monthly electric bills and yearly energy costs. Qualifying customers who produce more electricity than they use receive one-to-one kilowatt-hour credits on later bills; unused credits expire at the end of the annual period or sooner if service ends. Utilities must also keep covered usage data for at least five years, or while it remains in the active billing system, and provide valid, authorized data requests at no cost.
More weatherization help for low-income homes
Utilities must help low-income customers connect with energy and assistance programs when practical. Beginning January 1, 2027, they must use state and federal weatherization programs when practical and favor providers experienced in low-income communities. Utilities must set aside at least 15% of income-qualified weatherization budgets for health and safety grants. Grants can pay for repairs or technical help that allows eligible homes and organizations to take part in energy programs.
Net-metering customers avoid extra fees
Electricity providers must charge net-metering customers the same rates and monthly charges that apply to similar customers without net metering. Providers cannot add net-metering-only fees or requirements unless Commission rules allow them or similar customers also face them. Customers still pay applicable delivery charges, supply charges, taxes, and fees.
Gas utilities fund low-income energy aid
If a gas utility misses its energy-efficiency standard after three years, it must contribute $600,000, $400,000, or $200,000 to the Low-Income Home Energy Assistance Program, based on its size. The utility cannot recover this contribution from ratepayers. The law directs funds to the program but does not guarantee a payment to any household.
Training placements for Climate Works applicants
Funded Climate Works Hubs must prioritize placements when the applicant pool allows. At least one-third of placements go to applicants living in both an R3 Area and an environmental justice community. At least two-thirds go to applicants living in either type of area. Additional preferences apply to people facing employment barriers, foster care graduates or participants, and displaced energy workers.
More solar help for low-income households
Illinois Solar for All supports residential solar, low-income community solar participation, and eligible nonprofit and public facilities. Available funds start with a 35% share for residential programs, 40% for community solar, and 25% for nonprofits and public facilities; those shares can change after public input. The state allocates up to $50 million per delivery year for the program and adds $10 million for workforce programs in delivery years starting June 1, 2021, 2024, 2027, and 2030. Participating low-income customers must receive reasonable energy and economic benefits, but payments depend on available funding. For this program definition, low-income household income cannot exceed 80% of area median income, adjusted for family size and updated yearly. The Agency must also plan referrals to energy-saving and home-repair programs; repair help is not guaranteed.
New funding for geothermal projects
Starting with the delivery year beginning June 1, 2028, the Agency must set aside up to $10 million per year to buy credits from new geothermal heating and cooling systems. Qualifying contracts last 15 years and follow Agency rules for project eligibility and performance. Starting with the plan for the delivery year beginning June 1, 2030, the Agency can propose advance payments for qualifying small or emerging businesses that show need and face barriers to getting capital.
Caps on carbon credit contract bids
The Illinois Power Agency cannot accept bids for the specified carbon mitigation credit contracts above set limits. The caps are $30.30 per megawatt-hour for the delivery year beginning June 1, 2022; $32.50 for 2023; $33.43 for 2024; $33.50 for 2025; and $34.50 for 2026. The limits can constrain costs passed to Northern Illinois retail customers.
Higher energy-saving goals for large utilities
Utilities serving more than 3 million customers have energy-saving targets that reach 21.5% in 2030. Utilities serving more than 500,000 but fewer than 3 million customers have targets that reach 16% in 2030. After 2030, targets generally rise by 0.9 percentage points each year for the largest utilities and 0.6 points for mid-sized utilities. These are utility-wide goals, not a guaranteed household bill reduction.
Limits on renewable credit costs for customers
The law limits zero-emission credit costs added to eligible customers’ electric bills to 1.65% of the amount paid per kilowatt-hour in the year ending May 31, 2009. If a supplier’s payments exceed the average credit payment, it must repay the difference within 120 days, and utilities credit customers’ bills. Credit prices follow a formula that starts at $16.50 per megawatt-hour, with annual increases beginning June 1, 2023, subject to market-price adjustments. The Illinois Power Agency must pause or reduce new awards when existing commitments are expected to exceed the applicable cost limit; the credit rules become inoperative January 1, 2028.
More efficiency funds for low-income households
Utilities must direct at least 25% of approved efficiency spending to households with income at or below 80% of area median income. At least 80% of low-income measure spending must support whole-building weatherization. Beginning January 1, 2027, covered gas utilities must direct at least 25% of their efficiency budget to low-income programs, or more under a sales-based rule; utilities with 300,000 or fewer customers have a 15% floor. At least 33% of electrification offering and promotion costs must support programs for low-income households, unless a utility shows eligible households cannot support that spending.
More geothermal options for homes
Beginning June 1, 2028, at least 33% of each geothermal program block must be available for residential systems. At least 10% must be available to equity-eligible contractors. The Agency must work toward making at least 40% available to systems in Equity Investment Eligible Communities and propose increasing the contractor share toward 40% over time.
More paths for clean energy projects
The law expands clean-energy procurement options and sets aside capacity for small solar, community solar, public schools, and equity-eligible contractors. At least 5% goes to community-driven solar, and at least 10% goes to qualifying projects from equity-eligible contractors; the Agency must propose raising that share over time to 40%. Hydropower projects in environmental justice communities or places with median income at or below 82% of the state median receive priority. A geothermal credit program also supports qualifying systems that replace less efficient equipment. Starting June 1, 2026, covered new solar contracts must require a qualified installer.
More renewable project contracts
The Illinois Power Agency must open new blocks for several categories of renewable energy projects. The first blocks include at least 75 megawatts for category (i), 75 megawatts for category (ii), 50 megawatts for category (iv), 10 megawatts for category (v), and 75 megawatts across the first two category (vi) blocks. Some blocks set credit prices below earlier prices, and the categories have separate waitlist, project, and application rules. These changes expand procurement opportunities but do not set a household bill amount.
Renewable project payments arrive sooner
Qualifying renewable energy projects receive part of their contract value sooner after they connect, operate, and pass compliance checks. For category one projects, utilities pay 50% of the 15-year contract value at that point and the rest evenly over 6 years. For covered category two, four, five, and six projects, the first payment is 15%, with the rest paid evenly over 6 years. Qualifying category three contracts last 20 years, and 90% subscription counts as full subscription. The Agency's approved plan can set different payment rules.
New rules for home energy credits
Systems registered before January 1, 2025 keep their old net-metering service for life, even after a customer or provider change. New customers use updated credit rules: those without hourly pricing choose a 1-to-1 power credit or money for monthly extra power; hourly customers receive credits based on hourly prices. Utilities must start credits when a system begins operating and promptly transfer saved credits when providers or billing-address owners change. Customers outside the listed net-metering programs receive payment for extra power at the provider’s avoided supply cost or under an agreement, but still pay taxes, fees, and delivery charges on power supplied. Beginning June 1, 2026, eligible storage systems up to 5,000 kilowatts can use net metering with a listed hourly or time-of-use plan.
More safeguards for solar customers
The Illinois Power Agency must approve energy vendors and can require inspections, repairs, bonds, or customer protections for people harmed by vendors. It must also provide complaint centers and refer complaints to authorities when appropriate. The Agency may require clear information before customers sign solar or community-solar contracts and may set rules for financing companies. It can block program funding for devices financed by companies that lose approval, and may restrict offers that pay customers only after a vendor receives renewable-credit money.
Community solar subscribers get bill credits
Subscribers to eligible community renewable projects must receive bill credits for their share of the power produced. Credits include applicable energy, capacity, transmission, and other supply values. Rules vary by utility size and service area; some subscribers must receive power from the utility providing the credit. Utilities may recover remaining costs of certain credits through a rate plan, and payment-plan or budget-billing customers receive credits monthly.
Customer bills track efficiency costs
Utilities can recover approved, reasonable energy-efficiency costs from retail customers, without charging twice for the same costs. Some utilities can defer all yearly efficiency spending, including spending above their funding level, and recover approved costs over time while earning a return. Utilities using an efficiency formula rate must file updated costs by June 1 each year. Customers receive credits when a utility collected too much, or pay charges when it collected too little; new charges start with the first January billing day and last through the next December billing period. For specified utilities serving more than 500,000 but fewer than 3 million customers, an equity share of up to 50% is treated as reasonable when setting rates.
Customers can earn virtual power payments
Beginning June 1, 2026, covered utilities must offer programs for customers to enroll storage and electric-vehicle technology and provide grid services. Participants can receive enrollment and performance payments, with higher upfront payments for specified low-to-moderate income customers and qualifying community projects. Utilities can recover approved program costs through customer tariffs, so the law does not state how much an individual bill will change. Covered utilities must file tariffs by December 31, 2027, and the Commission must approve at least one for each utility by December 31, 2028.
Solar customers get rebates, ratepayers pay
An Illinois utility with at least 3 million retail customers must rebate certain costs for solar paired with storage at or beside a customer's property. Covered costs include connection work and wholesale demand charges incurred after the law takes effect; the law sets no dollar cap. Utility customers pay rebate costs through charges based on electricity use. The Commission decides which costs utilities can spread over 15 years, and operating costs count only if the Commission finds them reasonable.
Industrial gas users can opt out
Starting June 1, 2026, qualifying private industrial gas customers can opt out of covered utility efficiency plans. They must meet industry and gas-use limits, submit the required request and energy audit on time, and renew for each plan cycle. Starting January 1 of the next plan cycle, they stop paying that plan’s costs but cannot take part in it.
Tighter pollution rules for gas power units
Beginning June 1, 2026, covered nonpublic gas-fired units cannot emit more greenhouse gases or copollutants in any 12-month period than their existing emissions. Beginning that date, covered owners also cannot receive regulatory relief from the emissions duties. After January 1, 2035, certain units outside designated communities must cut greenhouse-gas emissions by at least 50% and average no more than six operating hours per day. They cannot run more than 24 hours in a row unless a grid operator declares an emergency. Some sources outside the law’s greenhouse-gas rules do not need air permits because of those emissions, though other requirements remain.
New payment rules for clean-energy credits
The Agency moves unused procurement capacity to categories with waitlisted projects, using the next delivery year’s credit price. For some qualifying 15-year contracts, utilities pay the full estimated contract value when a project connects and passes verification; other contracts pay 15% then spread the rest over six years. Qualifying 20-year contracts use annual payment limits, and unused credits can carry forward during the contract. The Agency may charge a fee to transfer a contract, and it must approve the new holder before the transfer.
Grid needs can delay emissions deadlines
Starting June 1, 2026, covered units can keep emitting after a deadline when needed for grid reliability or emergency backup. Some units need Commission approval to continue as emergency backups. If a grid operator requires a unit to keep running, it must help resolve the problem and cut emissions to zero as soon as practical afterward. State agencies must make a limited plan to delay or reduce emissions rules if a report finds a supply shortfall or a grid operator identifies a reliability risk. The Commission must approve the plan, which can last only as long as needed and must meet emissions, service, and cost rules.
Power plans weigh cost and reliability
Starting June 1, 2026, the Illinois Commerce Commission must hold a hearing before approving an integrated utility resource plan. Plans must assess resource needs for the next 5 years and consider the following 10 years. They must address reliability, affordability, emissions, environmental justice, and labor and equity standards. The Commission can also change approved energy plans and programs, including power purchases, efficiency, grid plans, and virtual power plants. Approved costs for certain new products may be shared across retail customers or electricity providers.
Clean power contracts affect utility costs
The Agency procures zero-emission credits under 10-year contracts covering about 16% of specified electricity; those contracts end May 31, 2027. Utilities serving at least 3 million Illinois customers also seek up to about 54.5 million carbon mitigation credits for five delivery years, through May 31, 2027. Utilities can recover qualifying credit costs through customer tariffs. The law sets no household-level cost amount.
Cost-based power deals for converted coal plants
The Illinois Power Agency and Commission can approve electricity agreements for qualifying converted clean coal plants. Prices must follow the plant’s service costs and stay within cost-based limits. Utilities can recover qualifying contract costs through tariffs, which may affect customer bills.
Electric bills fund coal-site clean energy
Beginning January 1, 2023, covered utilities charge delivery-services customers for each kilowatt-hour used. The law does not set the charge amount; utilities reconcile collections against actual costs. The money supports renewable energy credits and grants for energy storage and renewable projects at qualifying coal sites. The credits cost $30 each; the first procurement targets 400,000 to 580,000 credits a year, and the combined annual total cannot exceed 625,000.
Long-term renewable credit price contracts
The Illinois Power Agency must use indexed renewable credit contracts for covered competitive purchases and new utility-scale wind and solar projects. Contracts must last at least 20 years. Each month, the parties settle the difference between the market index and the agreed strike price based on energy produced, so either side can owe money. The Agency must estimate and update yearly contract costs, but the law does not set household bill amounts.
More contracts for wind and solar power
The law supports renewable projects through capacity blocks, long-term contracts, and purchases of renewable energy credits. Some Adjustable Block projects receive a 4% discount; specified projects receive full payment at connection or 20% upfront, with the rest paid over four years. Covered new utility-scale wind and solar contracts compare strike and index prices each month and last at least 20 years. The Agency also procures 1 million wind credits and 1 million solar credits each year under 15-year contracts; existing covered contracts must still be paid in full when procurement limits leave too little money.
More help through Solar for All
Illinois Solar for All can use up to $10 million for the program year starting June 1, 2026, and up to $5 million for the year starting June 1, 2027. The authority ends May 31, 2028. Some applicants in low-income or environmental justice communities may confirm income themselves, and the Agency must explore ways to ease income checks. The Commission can approve program changes that better serve low-income customers. Grassroots education funds generally cannot market individual solar firms, unless all applicable firms receive equal opportunity.
More opportunities for community solar projects
Community renewable project owners or operators can apply for the available rebate even when subscribers are households or businesses; a project cannot receive another application-based rebate after an owner or operator has applied. The law also sets aside 250 megawatts for certain older community solar waitlists, with 70% for one group and 30% for another. Projects have award, size, pricing, subscription, and prevailing-wage rules, including at least 50% of capacity for residential or small commercial subscribers with subscriptions below 25 kilowatts.
More support for energy-saving programs
Utilities must use at least 10% or 7% of annual efficiency funding, based on customer count, for eligible public entities. Public housing receives a share tied to its share of public-building energy use, and committees guide low-income program design with budgets equal to 0.25% of utility efficiency funding. Utilities must plan for building-code support and track workforce equity at least quarterly. Research and pilot spending is capped at 4% of program revenue.
Natural gas efficiency plans and costs
The Commission can reward natural gas utilities that meet energy-saving plan rules. Plans must budget at least 5% of covered customer payments, save energy for an average of at least 12 years, and spend at least 67% of incentive dollars on qualifying load-reduction or health and safety measures. Utilities can also recover approved efficiency costs through customer rates, with annual review and reconciliation. The law sets no incentive amount or specific bill increase.
New efficiency rules for electric utilities
Electric utilities must file energy-efficiency plans on schedule; late filings can bring $100,000 daily penalties paid to the Energy Efficiency Trust Fund. Utilities serving more than 3 million customers must spend at least $25 million each year on third-party efficiency programs. Through December 31, 2026, utilities must also seek a 0.1% annual reduction in peak demand for covered customers. For the largest utilities, efficiency results can raise or lower the return component by up to 200 basis points; a revised adjustment starts January 1, 2026, and continues in later four-year periods.
Power plant credit payments change
Zero-emission credit prices start at $16.50 per megawatt-hour, adjusted for inflation, and rise by $1 per megawatt-hour each delivery year starting June 1, 2023. A market-price adjustment against a $31.40 baseline can reduce payment to zero. Carbon mitigation contract payments must subtract applicable energy and capacity prices and the value of federal credits. Facilities can pause performance without payment during qualifying events beyond their control. They can also end contracts for certain new state charges, loss of a federal license, or unforeseeable costs above $40 million that a prudent operator would not take on. When a covered resource is sold, its new owner takes on the contract duties; these provisions become inoperative January 1, 2028.
Renewable credit rules expand and tighten
The Illinois Power Agency can accept some renewable credits from neighboring states and can count power sent over a qualifying 525-kilovolt line as Illinois-generated. It must follow geographic rules, and credits generally cannot count when a generating unit's costs were recovered through state-regulated rates on or after January 1, 2017. Community solar projects face subscription and size limits, including a 5,000-kilowatt limit for colocated projects. The Agency sets bidding and price rules, may consider price limits, and must publish winning bidders and average prices within 2 days of supplemental procurements starting June 1, 2026. Credits can count toward only one standard; rules also restrict certain geothermal credits and require qualified installation for covered devices. When procurement limits prevent all goals from being met, existing contracts and Illinois Solar for All receive priority; unused capacity can move to categories with waiting projects. The Agency may allow one contract renegotiation before a project begins operating, subject to limits for eligible contracts made before January 1, 2025.
Utilities face new efficiency goals
Starting in 2027, covered utilities must meet yearly energy-saving goals. Utilities serving more than 3 million customers have a 2% goal. Utilities serving 500,000 to 3 million customers have goals of 1.4% in 2027, 1.7% in 2028, and 2% from 2029 onward. Utilities may count some energy savings from electric heating and other uses, but at least 25% of counted savings must come from low-income housing. Utilities must file plans, and missing a filing deadline costs $100,000 per day. Return adjustments reward savings above goals and penalize shortfalls; older adjustment rules end December 31, 2026, and a new system starts January 1, 2027.
Utility efficiency goals change returns
Utilities serving more than 500,000 but fewer than 3 million customers face return changes tied to energy savings. Through December 31, 2025, returns can fall below 84.4% of a goal or rise above 100%; from January 1, 2026, they can rise or fall around 100%. Adjustments are capped at 200 basis points. Covered utilities also fund at least $8.35 million yearly for third-party efficiency programs, and late plan filings can bring $100,000 daily fines that cannot be charged to customers.
Utility energy-saving programs change
Utilities must use smart-meter data when practical and follow privacy rules. They must direct set shares of program funds to public-building efficiency, including public housing, and use equal measure-life values for the same work in low-income and other homes until manuals are updated. Utilities must involve community groups, track contractor equity at least quarterly, and give local contractors bid preferences. The law also requires peak-demand reductions through December 31, 2026, customer cost estimates before promoting upgrades, and $100,000 daily penalties for late plan refiling; utilities can recover approved efficiency costs through customer rates.
Fairer access to clean-energy jobs
Clean-energy programs must encourage diverse workforces and contractors, and some programs must provide job opportunities without discrimination. Renewable-energy bids must favor equity-eligible contractors when practicable. Starting after the next long-term renewable energy plan, participating entities face a 10% workforce equity minimum that rises each year toward a statewide average of 30% by 2030. Entities that fail required standards can lose access to certain programs, and only equity-eligible contractors can use the solar program’s equity category.
Higher wage standards on clean-energy projects
Construction workers on covered clean-energy projects must receive at least the applicable prevailing wage. Some rules apply to projects with applications submitted after June 30, 2023; residential projects and certain small projects serving houses of worship are excluded. Coal-site projects seeking contracts or grants must also meet wage, contractor, and training standards, and selected projects need labor agreements covering apprenticeships, diversity, and former coal plant workers. Covered geothermal projects of at least 142 tons and community solar projects over 3 megawatts also need labor agreements before construction.
Labor agreements for clean-energy projects
Certain renewable-energy projects must use a general contractor with a project labor agreement signed before construction. Covered community solar projects must exceed 3,000 kilowatts, including colocated projects; some waitlisted projects awarded capacity for program years starting June 1, 2026, or later are covered too. Later Agency procurements for covered storage projects also require a contractor with a labor agreement before construction.
More clean-energy jobs for underrepresented workers
Selected project applicants and grant owners must file diversity plans within 60 days of approval or contract signing. At least 25% of eligible contract-award spending must go to businesses owned by minority persons, women, or persons with disabilities. Renewable-energy participants must meet workforce equity targets that start at 10% and rise toward a statewide average of 30% by 2030; vendors that miss targets may lose access to procurement programs. The Agency must study disparities and report on results. If the study finds strong evidence of discrimination, state agencies must take lawful steps to address it.
More diverse clean-energy suppliers
Selected renewable-energy and storage project owners must set supplier-diversity goals based on at least 25% of eligible materials and services spending. Some items may be excluded for limited availability or safety and cybersecurity needs. Project plans must also encourage diverse businesses and workers, and contractors may face financial penalties for failing to make their best efforts. Owners must report progress each year and file a final report on the fifth June 1 after the project begins operating.
Wage and labor rules for energy projects
Covered storage and geothermal projects must follow prevailing-wage rules, and storage operators must keep a labor peace agreement for facility workers. Some renewable projects must have a project labor agreement before construction. Businesses seeking a special designation for new wind, utility-scale solar, or battery storage projects must also use a project labor agreement with wage, benefit, apprenticeship, and no-strike terms. These rules protect covered workers but add labor requirements for project owners.
Virtual power plant customers can share data
Beginning June 1, 2026, utilities must help customers in the virtual power plant program share their information with an aggregator. This helps the aggregator serve contracted customers and meet reporting rules. The law does not set a payment amount.
Clearer terms for virtual power plants
Starting June 1, 2026, an aggregator must explain payment terms and possible fees before enrolling a customer in a virtual power plant program. The program tariff must include a complaint process. On Commission order, the utility must suspend an aggregator for repeated or serious violations.
Demand-response users avoid extra fees
Starting June 1, 2026, virtual power plant tariffs cannot impose extra charges, fees, or insurance requirements just because a customer owns or operates demand-response technology. The customer must face the same requirements as similar customers without that technology.
Grid connection records become public
Starting June 1, 2026, the Commission must create a group to study grid connections and report at least once a year. The group must set a standard Level 1 connection cost of no more than $200. Utilities must also publish final connection agreements and studies within 12 months after the group submits its specified report.
Lower charges for some power customers
Customers of a qualifying alternative electric supplier can pay lower charges when the supplier uses eligible credits from facilities it owned on December 31, 2015. The facilities cannot use wind or solar power, and all suppliers’ credits under this rule are capped at 9% of Illinois’s target renewable credit quantity. The law does not state how much an individual customer saves.
More solar access for small businesses
The Illinois Power Agency must propose early contract payments for qualifying firms before their projects begin operating. The payments focus on small and emerging businesses and firms facing serious barriers to capital, and can cover added costs from prevailing wages or project labor agreements. They reduce later contract payments and do not increase the total contract value. The Agency must also make every effort to help small and emerging businesses join Illinois Solar for All, with particular attention to businesses in low-income and environmental justice communities. No award is guaranteed.
More clean-energy job connections
The state provides clean-energy job, training, contractor, and funding information through public online tools. Solar program administrators must help training graduates find jobs, connect trainees with participating companies, and link some low-income solar customers with energy-efficiency and home repair programs. The state also helps people preparing for release learn about clean-jobs and preapprenticeship programs; they choose whether to be contacted. These services provide connections, but do not guarantee a job or enrollment.
State funding supports solar and storage planning
The law creates a state fund that supports renewable-energy credit purchases and Illinois Solar for All. The fund has no stated total amount. The Illinois Power Agency must plan referrals between Solar for All and income-based energy-efficiency programs, including ways to address home repairs. It must also work with stakeholders on a storage program that explores zero-upfront-cost options for income-qualified households; this planning does not guarantee storage or a referral.
Clean coal studies get bond repayment
Coal Development Bonds reimburse unrelated third parties for preparing specified cost quotes and studies for the initial clean coal facility. The law does not state a reimbursement amount.
Large energy users get renewable credits
Approved self-direct customers receive an annual credit based on certain renewable procurement costs from the prior delivery year. To qualify, a customer must use new wind or solar contracts lasting at least 10 years and covering at least 40% of the customer’s prior-year use. The customer must intend to keep those contracts for their full terms.
Limits on utility costs passed through
Utilities using an energy-efficiency formula rate cannot pass through incentive pay tied to net income or an affiliate’s earnings per share. Pension and other post-employment benefit costs need support from an actuarial study, except when recovered under other specified rate rules. These limits restrict which costs can be included in this formula rate.
Lower power charges for large businesses
Starting June 1, 2023, approved large self-direct customers that retire eligible energy credits receive a reduction in certain electricity charges. The reduction is set each year based on expected costs for renewable credits under qualifying new wind and solar contracts. Costs for specified earlier contracts and programs are excluded. Residential customers generally do not qualify.
More public projects get efficiency funding
When a utility files a covered efficiency plan, at least 30% of its non-residential spending must go to measures from specified public-sector customers. These include local governments, school districts, and public colleges. The minimum replaces the usual rule requiring 10% of the entire portfolio to go to those measures.
Past extension of efficiency plans
Approved utility efficiency plans covering June 1, 2014, through May 31, 2017, remained in force through December 31, 2017. Utilities could increase approved goals and budgets to cover the added months. This temporary extension has ended.
More clean-energy work for equity contractors
At least 10% of relevant procurement capacity must go to qualifying equity-eligible contractors. The Agency must propose raising that share over time to 40%; 40% is not an immediate requirement. The Agency must also propose advances for qualifying contractors after contract signing but before a project starts operating. Advances cover certain higher labor costs and cannot raise the contract’s total value.
Electricity charge funds storage projects
Since January 1, 2023, qualifying Illinois utilities collect a charge for each kilowatt-hour delivered to delivery-service customers. The money pays for renewable energy credits and energy-storage grants, with collections reconciled against actual costs. The law does not state the charge amount.
Renewable program costs on bills
Electric utility customers may pay reasonable costs for running and reviewing renewable energy programs through their utility bills. These costs include administering and evaluating solar and geothermal programs. The law does not state how much they add to an individual bill.
Vehicle storage systems lose rebate access
Vehicle storage systems defined by the law cannot receive this rebate. The law does not state the amount of any rebate an owner forgoes.
Clean-energy credits must be retired
Renewable-energy credits bought with money from the state renewable-energy fund must be retired permanently and cannot be reused. Utilities must also retire carbon credits used for the related program. If a covered carbon-free resource is sold, its program duties pass to the new owner. The carbon-credit retirement rule ends January 1, 2028.
New clean-energy fees for project bidders
The Illinois Power Agency may charge fees to recover costs from renewable-energy procurement bidders and program applicants. Some Adjustable Block Program fee changes of more than 25% need Commission approval. Storage bidders must pay a nonrefundable deposit of at least $10,000 per bid, as practicable; the Agency may also charge fees and require collateral. The law does not set most fee amounts, and these charges apply to project participants, not households directly.
Old industrial gas-efficiency option ended
A past self-directed efficiency option and feedstock exemption for qualifying industrial natural-gas customers no longer apply after January 1, 2020. Under the former option, a self-directing customer had to fund a reserve account each year with 2% of natural-gas costs or $150,000, whichever was less. This provision does not create a current exemption.
Caps on utility efficiency spending
For efficiency plans starting in 2027, spending caps are 4.25% for utilities with more than 3 million customers. For utilities with more than 500,000 but fewer than 3 million customers, caps are 4.21% in 2027, 5.25% in 2028, and 6.06% in 2029. Research and pilot projects can use no more than 4% of efficiency and demand-response revenue. Demonstrations and evaluation each face a 3% limit; utilities seeking changed savings goals must give up research spending.
New fees for energy program firms
The Illinois Power Agency charges utilities, bidders, and participating firms fees to cover energy procurement and program costs. The Agency may also charge a fee when a renewable-credit contract is assigned to a qualified new holder. The law does not set fee amounts, and these are not direct household charges.
Community solar credits lower subscriber bills
Community solar subscribers receive a utility-bill credit for their share of a project’s output. The Agency must buy credits tied to subscribed shares, and utilities must buy some qualifying unsubscribed output. The Adjustable Block Program must seek projects in different locations. Owning or subscribing to a community project alone does not make you a utility or electricity supplier. At a subscriber’s request, a utility with more than 200,000 customers as of January 1, 2021 must offer net crediting when the project owner asks; its fee cannot exceed 1% of the subscription fee.
More access to building energy data
Starting June 1, 2026, eligible owners, tenants, property boards, and agents can seek gas and electric building-use data from public utilities with more than 100,000 Illinois customers. The Commission must direct electric utilities with at least 100,000 customers to upload requested data in the benchmarking tool’s standard format. Utilities are generally protected when a third party later misuses shared data, unless the utility failed to follow required processes or was grossly negligent.
Net-metering credits and equipment costs
Eligible net-metering customers can receive credits when their systems produce more electricity than they use. Some customers get hourly or time-based credits that include energy and eligible delivery charges; others get 1:1 kilowatt-hour credits that carry forward through the annual period and then expire. Customers still pay applicable taxes, fees, and delivery charges on net electricity used. Providers cannot add unauthorized fees or requirements, but some customers must pay for replacement meters until the utility installs a smart meter.
Lawmakers review some utility rate increases
Starting June 1, 2026, the Commission must tell lawmakers about certain planned rate increases and their estimated monthly customer costs. Lawmakers can suspend all or part of an increase before it takes effect. If they do, the Commission must reopen the case within 30 days and approve a changed plan within 120 days. Without a suspension, the increase takes effect on the order’s schedule.
Pollution benefits guide clean-energy credits
The Agency weighs pollution reductions and other public benefits when choosing carbon-mitigation credit bids. It considers emissions that affect Illinois residents, including carbon dioxide, sulfur dioxide, nitrogen oxides, and fine particles; tied public-interest scores are ranked by price. Winning bidders must make practical efforts to seek eligible federal support when allowed. Each renewable, carbon, zero-emission, or carbon-mitigation credit can count only once toward a standard, and other credits issued for the same megawatt hour must also be retired.
Equity rules for clean-energy suppliers
Entities seeking renewable-energy credits must report each year on whether they meet required equity standards. The Agency must deny program participation, including approved vendor status, to entities that fail those standards; they can reapply after making a corrective plan and meeting the standards. When setting some renewable-credit prices and comparing bids, the Agency must also consider certain labor costs for eligible contractors and review its cost assumptions.
New limits for energy-storage bidders
Storage bidders must show experience with energy facilities totaling at least 100 megawatts and have notice to proceed. A bidder must also certify that it is not an electric utility serving more than 10,000 Illinois customers. The Agency must apply its equity standards to storage purchases and programs, and can propose storage-specific changes to those standards.
Renewable rules for large power users
Starting with the delivery year beginning June 1, 2023, eligible large electricity customers can use qualifying wind or solar credits toward renewable requirements. Their demand must exceed 10,000 kilowatts under utility-specific measurement rules, and qualifying contracts must last at least 10 years. Credits must cover at least 40% of the customer’s prior-year use and be retired for that customer. Customers must report each year. A customer that knowingly fails to buy and retire required credits and does not notify the Agency can lose continued participation; improperly received credits can be recovered with interest after a Commission hearing.
Stronger checks on incentive-funded energy systems
The Illinois Power Agency must set registration rules and basic qualifications for entities seeking state incentive funding. It must publish approved-entity lists and may remove vendors that break contract terms, laws, or program rules. The Agency must also set project standards, which may include inspections, photo records, and repairs. Vendors with too many deficient systems may lose access to further state incentive funding.
Utilities may recover customer-data costs
A utility can ask the Illinois Commerce Commission to review reasonable costs for providing covered customer-use data. The utility must make a good-faith effort to obtain funding. Any funding it receives for the investments must reduce future costs included in its revenue requirements.
Clean-coal contracts need bill review
The initial clean-coal facility's sourcing agreement cannot take effect until officials review its costs and projected electricity prices and customer bills. The Commission must send its analysis to lawmakers within 6 months. After lawmakers approve the agreement, the Commission must finish its review within 90 days.
Energy contracts can bring bill credits
Utilities must keep paying sellers in full and on time under existing renewable-credit contracts when a procurement limit leaves collections short, using retained funds as needed. Utilities can recover eligible costs, and the Agency must pause or reduce new awards to stay within the rate-impact limit. Some carbon-credit contract reconciliations or negative payments require money to be returned to utilities and credited to customer bills. The Agency also pays covered renewable-procurement expenses from its Renewable Energy Resources Fund beginning June 1, 2026, and must start the zero-emission credit procurement process on June 1, 2017.
Large power users get a self-directed option
Beginning June 1, 2023, eligible large electricity customers can meet part of renewable-energy requirements through their own long-term contracts. They must buy and retire qualifying credits equal to at least 40% of prior-year use, under contracts lasting at least 10 years, and file annual reports. After notice and a hearing, the Commission can recover the cost of credits received improperly, plus interest. A customer who knowingly fails to buy and retire required credits and does not notify the Agency cannot remain in the program.
Limits on carbon credit prices
The Illinois Power Agency cannot accept carbon-credit bids above set price caps: $30.30 per megawatt-hour in 2022, rising to $34.50 in 2026. Each year, utilities pay suppliers when the contract calculation is positive. When it is negative, suppliers pay utilities, which must credit customer bills as soon as practical. These rules end January 1, 2028.
Limits on utility fuel savings goals
Utilities may count some savings from fuels other than electricity toward electric energy goals, using an equivalent-energy calculation. Those savings can meet no more than 10% of the yearly total goal. Separate limits on annual savings apply based on utility size: 30% for utilities with more than 3 million customers and 20% for those with more than 500,000 but fewer than 3 million. Starting January 1, 2027, the largest utilities may count only savings from specified weatherization measures.
More efficiency spending for lower incomes
Starting in 2027, covered utilities can lower their annual energy-saving goal when low- and moderate-income programs exceed 25% of program spending. Each extra percentage point of spending allows a 0.025-point goal reduction, up to 0.25 points. Moderate-income ranges depend on utility size: they use area median income and federal poverty limits for some utilities, and area median income alone for the largest utilities.
More utility support for electrification
Utilities can support electric heating, water heating, cooking, and other uses that replace fossil fuels and reduce total energy use at a property. They may count the net savings toward annual goals and recover program costs. Counted savings are capped at 5% per year from 2022 through 2025 and 20% per year from 2026 onward.
New oversight for gas efficiency plans
Covered gas utilities must file efficiency plans every four years, beginning in 2021; utilities that served fewer than 100,000 Illinois customers on January 1, 2009, are excluded. After a utility misses its efficiency standard in two planning periods in a row, the Commission must put an independent administrator in charge. Some customers may pay the administrator’s reasonable costs, but specified industrial customers are exempt. For qualifying plans, a gas utility may seek approval to spend above a cap tied to estimated average bill increases of 2%; the Commission can adjust the cap for approved efficiency spending.
New rules for energy storage credits
The Illinois Power Agency can adjust storage contract terms, including system types, contract lengths, regional timelines, and how projects are divided. Storage systems whose costs were recovered through state-regulated rates on or after January 1, 2017, cannot receive these credits.
Renewable fund rules change
After required payments arrive, no more money can usually be added to the Renewable Energy Resources Fund unless the Commission orders it. The state cannot transfer fund money for unrelated uses or charge it for unrelated costs. Once required payments and contracts are fully paid, a balance below $5,000 makes the fund inactive; remaining money and later deposits then go to the low-income energy assistance fund.
Shared energy-saving programs continue
If a gas utility stops funding a shared efficiency program, the electric utility may keep offering it, including gas-saving measures. The electric utility may recover program costs from customers. Utilities must prioritize low-income home programs when practical.
State can decide delayed energy siting
Starting June 1, 2026, the Illinois Commerce Commission can decide certain energy facility siting cases when a local government denies or delays approval, or lacks a compliant siting rule. For a case based on a missing compliant rule, the facility owner must give the local government at least 60 business days’ written notice before filing a petition.
Storage contracts face cost and output rules
Energy storage bids must stay within confidential cost benchmarks reviewed by the Illinois Commerce Commission. Storage contracts protect full, prompt seller payments when utilities can recover their costs through an approved method. Carbon-free resources seeking carbon-credit contracts must provide operating and financial information and generally commit to an average annual capacity factor of at least 88%. Exceptions apply when specified contract terms or legal requirements make that commitment impracticable.
Utility bills get credits or extra charges
A utility using an energy-efficiency formula rate must file updated cost estimates and charges by June 1 each year. New charges generally cover the next January-to-December billing year. Customers receive credits for overcharges or pay extra for undercharges, with interest and stated tax adjustments. The Commission may review the filing and the costs.
Utility voltage upgrades affect bills
Utilities can include cost-effective voltage controls in approved plans and recover approved costs from customers. Utilities count savings for 15 years, independent of asset depreciation. Counting savings after 15 years requires proof of added investment and an independent review. Certain utilities with more than 500,000 but fewer than 3 million customers had to file investment plans through December 31, 2024.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Ann M. Williams
Democratic • House
Camille Y. Lilly
Democratic • House
Debbie Meyers-Martin
Democratic • House
Emanuel "Chris" Welch
Democratic • House
Hoan Huynh
Democratic • House
Jehan Gordon-Booth
Democratic • House
Justin Slaughter
Democratic • House
Lisa Davis
Democratic • House
Mattie Hunter
Democratic • Senate
Michael Crawford
Democratic • House
Sonya M. Harper
Democratic • House
Steve Stadelman
Democratic • Senate
Suzanne M. Ness
Democratic • House
William "Will" Davis
Democratic • House
Yolonda Morris
Democratic • House
Roll Call Votes
House vote • 5/31/2026
Senate Floor Amendment No. 3 House Concurs
Yes: 75 • No: 39
House vote • 5/31/2026
Senate Committee Amendment No. 1 House Concurs
Yes: 75 • No: 39
House vote • 5/31/2026
Senate Floor Amendment No. 4 House Concurs
Yes: 75 • No: 39
House vote • 5/30/2026
Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee;
Yes: 5 • No: 0
Senate vote • 5/30/2026
Third Reading - Passed;
Yes: 36 • No: 20
House vote • 5/30/2026
Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee;
Yes: 5 • No: 0
House vote • 5/30/2026
Senate Floor Amendment No. 4 Motion to Concur Recommends Be Adopted Rules Committee;
Yes: 5 • No: 0
Senate vote • 5/15/2025
Do Pass as Amended Executive;
Yes: 9 • No: 4
House vote • 4/9/2025
Third Reading - Short Debate - Passed
Yes: 84 • No: 30 • Other: 1
House vote • 3/4/2025
Do Pass as Amended / Short Debate Financial Institutions and Licensing Committee;
Yes: 9 • No: 2
Actions Timeline
Public Act . . . . . . . . . 104-0477
6/26/2026HouseEffective Date June 26, 2026
6/26/2026HouseGovernor Approved
6/26/2026HouseSent to the Governor
6/23/2026HousePassed Both Houses
5/31/2026HouseHouse Concurs
5/31/2026HouseSenate Floor Amendment No. 4 House Concurs 075-039-000
5/31/2026HouseSenate Floor Amendment No. 3 House Concurs 075-039-000
5/31/2026HouseSenate Committee Amendment No. 1 House Concurs 075-039-000
5/31/2026HouseSenate Floor Amendment No. 4 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000
5/30/2026HouseSenate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000
5/30/2026HouseSenate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000
5/30/2026HouseSenate Floor Amendment No. 4 Motion to Concur Referred to Rules Committee
5/30/2026HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee
5/30/2026HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
5/30/2026HouseSenate Floor Amendment No. 4 Motion Filed Concur Rep. Ann M. Williams
5/30/2026HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. Ann M. Williams
5/30/2026HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. Ann M. Williams
5/30/2026HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 3, 4
5/30/2026HouseArrived in House
5/30/2026HouseAdded as Alternate Co-Sponsor Sen. Mattie Hunter
5/30/2026SenateSenate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a)
5/30/2026SenateThird Reading - Passed; 036-020-000
5/30/2026SenatePlaced on Calendar Order of 3rd Reading
5/30/2026SenateSenate Floor Amendment No. 4 Adopted; Stadelman
5/30/2026Senate
Bill Text
Engrossed
Enrolled
House Amendment 1
Introduced
Senate Amendment 1
Senate Amendment 2
Senate Amendment 3
Senate Amendment 4
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