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American Focus > Blog > Environment > Illinois Passed New Clean Energy Legislation—What to Look for in 2026
Environment

Illinois Passed New Clean Energy Legislation—What to Look for in 2026

Last updated: December 17, 2025 6:50 am
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Illinois Passed New Clean Energy Legislation—What to Look for in 2026
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Illinois clean energy advocates are celebrating the recent passage of the Clean and Reliable Grid Affordability Act (CRGA). This comprehensive legislation, set to take effect on June 1, 2026, aims to help Illinois achieve its clean electricity goals amidst rising electricity costs and federal policy challenges.

The journey towards CRGA began with the Climate and Equitable Jobs Act (CEJA) in 2021, which laid the groundwork for phasing out fossil fuel plant emissions and expanding renewable generation with a focus on equity. However, CEJA lacked policies around energy storage, a critical component of the clean energy transition. In 2023, discussions around energy storage programs began to surface, leading to the release of the “Storing the Future” modeling analysis by the Union of Concerned Scientists (UCS) in November 2024. This analysis recommended Illinois install at least 3 gigawatts of 4-hour discharge duration batteries by 2030, a recommendation that was incorporated into CRGA.

Apart from energy storage, CRGA includes provisions to strengthen renewable energy and energy efficiency initiatives, introduce integrated resource planning (IRP), and enhance transmission planning. The legislation also establishes a virtual power plant program to incentivize customer-owned resources like rooftop solar and batteries to support the grid during peak demand.

Looking ahead to 2026, Illinois will focus on implementing key aspects of CRGA. State agencies are set to submit the first IRP in November, with stakeholder workshops and discussions planned for early in the year. The Illinois Power Agency will conduct an initial procurement for utility-scale battery storage projects by August, and utilities will propose virtual power plant programs by the end of the year.

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One area not addressed in CRGA is the impact of data centers on Illinois’ clean energy goals. Discussions around data centers and their electricity consumption will likely take place in early 2026, alongside other policy considerations.

Overall, 2026 will be a year of action for Illinois as it works towards its clean and equitable energy goals. The state’s commitment to leading in clean energy innovation serves as an example for others, demonstrating a proactive approach to addressing energy challenges and ensuring a sustainable future. UCS remains dedicated to supporting Illinois in this important work throughout the year.

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