Energy Policy in Illinois

Overview▼ Energy Efficiency Resource Standards▼ Decoupling▼
Building Energy Codes▼ Appliance Standards▼ Useful Links▼

Overview - Energy in Illinois

While Illinois does have significant amounts of in-state coal production, and has the third-highest estimated coal reserves in the nation, the high sulfur content of Illinois coal as compared with Western coal have made it, thus far, an uneconomical choice as a provider of the majority of the coal-fired electric generation fuel mix. Some of the coal mined in-state is exported to other states, and overall Illinois is still a net importer of coal, primarily from Wyoming. 94% of coal consumed in Illinois is used for electricity generation, to generate 45% of the state's electricity. Illinois' cost for imported coal used by utilities to generate electricity is approximately $1.36 billion annually.

Illinois produces a very small amount of natural gas in-state, a fraction of what the state consumes every year. 81% of Illinois homes are heated with natural gas. Natural gas imports cost Illinois $7.6 billion annually at the wholesale level. The cost for the state's residential, commercial, and industrial customers is even higher.

Taken together, just for these two fuels, and excluding petroleum, Illinois spends $8.96 billion annually on imported energy fuels. This dollar drain on Illinois' economy could, by reducing energy consumption through energy efficiency, stay in Illinois to build the state economy, reduce customer bills, and provide opportunity for the growth of jobs in the clean energy sector.

Illinois is also the home to approximately 10% of the nuclear power generation in the nation which, while not producing the carbon dioxide and air pollutant emissions that coal and natural gas do, has serious waste disposal issues. The nuclear generation fleet in Illinois, like much of the nation, is aging. The cost to replace a nuclear plant or to expand nuclear generation capacity is enormous and would have significant impact on the state's utility rates. Illinois also has to import all of the fuel for the nuclear electric generation, as there is no uranium mining or processing in the state.

Illinois has, in the past several years, taken bold policy steps to increase energy efficiency and orient its energy policy toward a clean energy future. Some of these measures are detailed below.

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Energy Efficiency Resource Standards

Electricity

Illinois enacted an energy efficiency resource standard (EERS) in 2007 for investor owned electric utilities, with efficiency programs beginning in 2008. The law required 0.2% savings through efficiency of energy delivered in 2009 and ramps-up to 2.0% by 2015 and every year thereafter.

Public Act 095-0481 (Illinois Power Agency Act)

Natural Gas

Illinois enacted an energy efficiency resource standard (EERS) for investor owned natural gas utilities in 2009 and programs under the standard will begin in 2010. The law requires 0.2% savings through efficiency of energy delivered by 2012 and ramps-up to 1.5% savings by 2019 and every year thereafter.

Public Act 096-0033 (Illinois Power Agency Act – Amended)

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Decoupling

Illinois does not have any policies to support decoupling; however, some utilities have been approved for revenue-per-customer pilot programs in February of 2008.

Illinois Commerce Commission Docket 07-241 (North Shore Gas)
Illinois Commerce Commission Docket 07-0242 (Peoples Gas)

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Building Energy Codes

Residential

In May of 2009 the Illinois General Assembly passed the Energy Efficient Building Act, which enacts a statewide residential building code and compels the state to adopt the most recently published form of the International Energy Conservation Code (IECC), currently the 2009 IECC. The Act was signed into law by Governor Pat Quinn in August of 2009. The code sets a minimum standard of energy efficiency for all new residential construction and applies to any major renovations or upgrades of existing buildings. The Illinois Capital Development Board is currently finalizing the new code for implementation, which by law must be implemented no later than the end of September, 2010.

Public Act 096-0778 (Energy Efficient Building Act)

Commercial

The 2009 IECC serves as the statewide energy code for all new commercial construction and major renovations or upgrades of existing buildings; this standard of minimum energy efficiency requirements was set forth in the Energy Efficient Commercial Building Act which was later amended to include residential construction and became the Energy Efficient Building Act.