Illinois Lifts Nuclear Ban, But Tightens Grip on Energy Supply

Illinois lawmakers passed sweeping energy legislation that ends decades of restrictions on nuclear power while simultaneously expanding state control over how the energy grid operates.

Senate Bill 25, the Clean and Reliable Grid Affordability Act, lifts a 40-year moratorium on large-scale nuclear plants and directs the Illinois Commerce Commission to oversee long-term energy planning through new Integrated Resource Plans.

The bill passed the state Senate 37-22 and the state House 70-37 before heading to Gov. JB Pritzker. The legislation allows construction of reactors larger than 300 megawatts, expanding on a 2023 law that lifted restrictions on smaller modular reactors.

Illinois already derives 54 percent of its electricity from 11 nuclear reactors at six plant sites, according to the Illinois Policy Institute. The state ranks among the most nuclear-reliant states in the nation.

Morris Republican Sen. Sue Rezin, the bill's sponsor, said nuclear power is critical to the state's renewable energy portfolio.

Illinois has a long, successful and safe history of nuclear energy generation, Rezin said in a statement after the Democratic governor signed the measure on November 6.

The legislation will ensure that the state can remain a leader in the energy sector by offering the ability to utilize the amazing advancements in new nuclear energy technology, Rezin added.

The bill includes provisions for increased battery storage, expanded energy efficiency programs, and new planning tools to manage energy demand and supply. It aims to lower electricity costs by improving grid reliability.

However, the measure also introduces new layers of regulation and bureaucracy that industry groups say will increase costs for consumers and businesses.

According to the Illinois Manufacturers Association, the proposal adds cost increases including $7 billion for battery storage projects beginning in 2030.

The bill expands state control by directing the Illinois Commerce Commission to oversee long-term energy planning through new Integrated Resource Plans. Utility companies must project energy demand 5 to 20 years out and include detailed modeling on emissions, affordability, equity, and grid reliability.

The Commission has some power to revise or reject plans to meet demands. Utilities can recover IRP related costs by excluding them from rate-cap calculations.

The legislation creates several new programs and departments:

• The Thermal Energy Network Pilot Program administers $20 million for thermal network projects
• The Geothermal Homes and Businesses Program allocates $10 million per year in credits for installation of new geothermal heating and cooling systems
• Powering Up Illinois mandates faster utility connections for EV infrastructure and establishes performance standards
• The Energy Reliability Corporation of Illinois will study the feasibility of a state-specific independent System Operator to manage Illinois electric grid

Ottawa Democratic Rep. Lance Yednock co-sponsored the measure alongside Sen. Rezin.

The bill also increases fees on nuclear plant operators and takes steps to streamline permitting processes for energy projects.

Counties now have 60 days to approve or deny energy-storage permits. If a consensus is not reached, the permit is automatically approved. The legislation sets limits on local municipalities to demand property-value guarantees, impose extended approval timelines, excessive fees, or set overly strict environmental or safety rules.

Environmentalists argue that wind and solar power are sufficient to replace the burning of fossil fuels. But supporters of the law point out that the state's plan for closing coal-fired power plants by 2045 relies in part on state subsidies to keep two unprofitable nuclear plants in operation.

The Illinois proposal is largely the same as one that earned overwhelming legislative approval but was vetoed by Pritzker last spring. This version adds a study on the risks of new nuclear technology and puts a state agency in charge of oversight.

Tech companies are investing heavily in nuclear energy projects to power data centers supporting the AI boom. Meta signed a 20-year power purchase agreement with Constellation in June to ensure continued operation of the single nuclear reactor at the 1,092-MWe Clinton Clean Energy Center.