Energy Omnibus Bill Passes Both Houses in Veto Session

The Energy Omnibus bill (SB 25) passed both houses of the Illinois General Assembly during Veto Session, and the Governor is expected to sign the legislation into law. This bill is one of the most significant updates to Illinois' energy policy in recent years.

SB 25 includes a wide range of initiatives to modernize the grid and expand clean energy, with the goal of improving affordability. The bill is massive and has been amended several times, with each amendment running 800-1,000 pages. In addition to including the Utility Data Access Act, championed by BOMA/Chicago to require utilities to provide whole building data access to buildings that are required to benchmark, the bill contains the following key components:

• Battery Storage Incentives: The bill creates a new funding model to support energy storage projects, modeled after existing programs for wind and solar. While it introduces new charges for ratepayers, supporters argue that increased storage capacity will stabilize the grid and reduce long-term costs.
• Energy Efficiency Standards: Utilities serving natural gas and electricity customers would face expanded requirements to implement energy-saving programs, with the goal of lowering overall demand and reducing consumer bills.
• Nuclear Policy Changes: The legislation lifts Illinois’ ban on new large-scale nuclear facilities, while also increasing fees for current nuclear operators.
• Expanded Regulatory Authority: The Illinois Commerce Commission would gain new powers to oversee long-term energy planning, including both generation and demand-side strategies.
• Labor Standards for Solar Projects: Community solar developers would be required to meet new labor standards, closing loopholes that previously allowed some to bypass union hiring practices.
• Data Center Emissions Oversight: Backup generators used by data centers would be subject to new environmental regulations, reflecting their growing role in energy consumption.
• Virtual Power Plants & Time-of-Use Rates: Large utilities would be required to launch programs that aggregate residential solar and battery systems into virtual power plants, alongside rate structures that reflect time-based energy usage.
• Geothermal Heating Support: A new funding program would promote geothermal heating systems, which use underground thermal energy to reduce reliance on fossil fuels.
• Thermal Energy Networks: The bill establishes a state-backed loan program to support thermal networks that transfer heat between buildings and infrastructure using water-based systems, including integration with geothermal sources.

Once signed into law, SB 25 takes effect June 1, 2026.