Fall Veto Session Recap
Below are few key issues that IFCA was watching at the Capitol as legislators wrapped up veto session:
Energy Legislation
Energy legislation is set to become law after passing through both legislative chambers with the governor’s endorsement. SB25 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.
Supporters of the bill say it will lower costs for utility customers, but critics worry that a lack of cost-control measures will increase electricity prices for Illinois residents.
The Illinois Senate approved SB25 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.”
Among its core policies:
Energy Legislation
Energy legislation is set to become law after passing through both legislative chambers with the governor’s endorsement. SB25 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.
Supporters of the bill say it will lower costs for utility customers, but critics worry that a lack of cost-control measures will increase electricity prices for Illinois residents.
The Illinois Senate approved SB25 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.”
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 supporters 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.
MASS TRANSIT FUNDING BAILOUT SENT TO GOVERNOR
The General Assembly also pushed through a $1.5 billion bailout of the Chicago area mass transit system along party lines. As you may know, these transit systems were facing a $230 million funding shortfall in 2026 and possibly up to a billion dollars by 2028 which would have required these transit agencies to cut services by 40%.
The plan approved by lawmakers does not contain any controversial statewide tax increases as previously debated such as fees on deliveries, streaming services, sporting and concert events, or a new tax on unrealized capital gains from billionaires.
Instead, the plan utilizes several different funding changes and some increased taxes and fees from area residents and commuters. The bulk of the new funding raises $860 million by redirecting sales tax revenue charged on motor fuel purchases to the transit agencies.
In addition, tolls for passenger vehicles will be increased by 45 cents, with proportionate reductions for reduced fare programs, and tolls on commercial vehicles will be increased by 30% effective on January 1, 2027. This funding is part of a plan to create a new capital program for tollway projects. In addition, tolls will now by indexed to increase by the rate of inflation each year. This increase will raise up to $1 billion annually for tollway renovations.
The General Assembly also pushed through a $1.5 billion bailout of the Chicago area mass transit system along party lines. As you may know, these transit systems were facing a $230 million funding shortfall in 2026 and possibly up to a billion dollars by 2028 which would have required these transit agencies to cut services by 40%.
The plan approved by lawmakers does not contain any controversial statewide tax increases as previously debated such as fees on deliveries, streaming services, sporting and concert events, or a new tax on unrealized capital gains from billionaires.
Instead, the plan utilizes several different funding changes and some increased taxes and fees from area residents and commuters. The bulk of the new funding raises $860 million by redirecting sales tax revenue charged on motor fuel purchases to the transit agencies.
In addition, tolls for passenger vehicles will be increased by 45 cents, with proportionate reductions for reduced fare programs, and tolls on commercial vehicles will be increased by 30% effective on January 1, 2027. This funding is part of a plan to create a new capital program for tollway projects. In addition, tolls will now by indexed to increase by the rate of inflation each year. This increase will raise up to $1 billion annually for tollway renovations.