Energy policy in Illinois, 2004-2017

in Illinois

Fiscal Budgets Illinois state budget and finances Tax policy in Illinois Finance Financial regulation in Illinois Pensions Public pensions in Illinois Pension health in Illinois Civil liberties Affirmative action in Illinois Campaign finance requirements in Illinois Campaign finance requirements for Illinois ballot measures Nonprofit regulation in Illinois Education Charter schools in Illinois Higher education in Illinois Public education in Illinois School choice in Illinois Elections Ballot access Ballot access requirements for political candidates in Illinois Ballot access requirements for political parties in Illinois Political parties in Illinois Ballot access requirements for presidential candidates in Illinois Redistricting in Illinois Voting in Illinois Energy and Environment Energy policy in Illinois Fracking in Illinois Oil and gas extraction on federal land in Illinois Endangered species in Illinois Environmental policy in Illinois Healthcare Healthcare policy in Illinois Medicaid spending in Illinois Effect of the Affordable Care Act in Illinois Immigration Immigration in Illinois

---

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

---

Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy requirements, and energy efficiency standards in Illinois.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Illinois.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Illinois, and the electric reliability organizations in Illinois.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Illinois, a state profile of Illinois from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The Illinois Office of Oil and Gas Resource Management of the Illinois Department of Natural Resources has regulatory authority over the permitting, drilling, operating, and plugging of oil and natural gas wells. The office oversees the construction and operation of oil and gas equipment and facilities and the injection of fluids into underground injection wells. The state's rules and regulations can be found in the Illinois Oil and Gas Act. All oil and gas operators must receive a permit from the department for any oil and gas production. These operators must adhere to state regulations on the spacing and casing of wells, well drilling and operations, well construction, regular reporting of operations, underground injection wells, the plugging of wells, well restoration, annual fees, and more.^[1][2][3]

Fracking

See also: Fracking in Illinois

In 2013, the Illinois State Legislature enacted the Illinois Hydraulic Fracturing Regulatory Act. An oil and gas operator looking to use hydraulic fracturing (also known as fracking) in the state must first register with the Illinois Department of Natural Resources (IDNR). A permit is required for each well to be fracked. Permit seekers must hold least $5 million in insurance coverage and submit a plan containing details of the planned operation and a list of the chemicals that are expected to be used during the fracking process. These applications are approved by the municipality where the fracking will occur. All applications are followed by a 30-day public comment period, during which the public can request a public hearing. Permits can be revoked at any time if information in the application is deemed incorrect or misleading by a municipality, or if the applicant violates applicable state laws.^[4]

Applicants may publicly redact a list of chemicals used during the fracking process that are considered to be a trade secret, though a full list must be submitted to the Illinois Department of Natural Resources, which reserves the right to release the full chemical list if a spill occurs and to share the chemical list with associated agencies.^[4]

In addition, the act regulates the distance between oil and gas wells and certain properties, such as water wells and nature preserves. The act specifies standards for access roads, the removal of topsoil, valves, road repair, fueling tanks, well casings, reserve pits, flowback, and other aspects of the drilling process. The law establishes tests for cement strength, VOCs, heavy metals, NORMs, well strength, water quality, and other environmental and health impacts. Further, the law sets standards for well casing lengths, blowout prevention, inspection requirements and record keeping. The discharge of fracking fluids, produced water or BTEX into freshwater and the injection of diesel during fracking are prohibited.^[4]

The full text of the Illinois Hydraulic Fracturing Regulatory Act can be found here.

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[5]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[6][7]

As of February 2017, Illinois was one of 30 states with a Renewable Portfolio Standard. In 2007, the Illinois State Legislature enacted the Illinois Power Agency Act, which requires larger investor-owned electric utilities and alternative retail electric suppliers (ARES) to produce 10 percent of eligible retail electricity sales from renewable energy sources by the year 2015 and 25 percent by the year 2025. Publicly owned municipal utilities and consumer-owned electric cooperatives are exempt from the standard. The act established the Illinois Power Agency, which develops electricity procurement plans for investor-owned utilities and negotiates contracts between utilities and electricity suppliers. Eligible renewable technologies include solar energy, wind energy, biomass, in-state landfill methane, biodiesel, existing hydroelectric power facilities, and others. Renewable energy systems must generate 2 megawatts (MW) of electricity or less to qualify. To meet the standard, investor-owned electric utilities must have a minimum of 75 percent of their renewable electricity come from wind energy and photovoltaic solar energy sources combined.^[8][9][10]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[5]

As of March 2015, Illinois was one of three states with a state-run renewable energy grant program for solar energy, wind energy, and biomass as well as utility-run and/or locally run grant programs. However, as of February 2017, the state's wind and solar energy grant program and biomass grant program were closed due to a lack of appropriations in the state's budget (the programs are described below).^[5]

The Illinois Department of Commerce and Economic Opportunity's Large Distributed Solar and Wind Grant Program provided grants for the development and implementation of large-scale distributed solar thermal energy systems, photovoltaic solar energy systems, and wind energy systems in Illinois. Eligible applicants included businesses, public sector entities, and nonprofit organizations that receive electricity from a utility that levies the Renewable Energy Resources and Coal Technology Development Assistance Charge. The maximum grant amount allowed under the program was $250,000. In fiscal year 2015, grants were distributed to cover up to 25 percent of eligible project costs for businesses and up to 40 percent for local government agencies and nonprofit groups.^[11]

The Illinois Department of Commerce and Economic Opportunity's Biogas and Biomass to Energy Grant Program provided grants to encourage the use of biogas and biomass for electricity generation. As of February 2017, the grant program was closed due to a lack of appropriations in the state's budget.^[12]

See the map below for grant programs by state.^[5]

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[5]

As of March 2015, Illinois was one of 12 states with a state-run loan program for renewable energy technologies. Businesses, nonprofit organizations, and local government agencies in Illinois may receive loans for renewable energy technologies through the Illinois State Treasurer Office's Green Energy Loan program and eligible banking institutions. Loans can total up to $10 million. Loan seekers must meet one of the following four criteria: participate in a state or utility-run energy efficiency program; hold a contract with an energy service company; have a Leadership in Energy and Environmental Design (LEED) official working on a renewable energy project, which must then receive LEED certification; or have a plan to install a renewable energy system.^[5][13]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Illinois can be found here.

See the map below for renewable energy loan programs by state.

Energy efficiency regulations

As of February 2017, Illinois required new residential and commercial buildings to meet energy efficiency standards. In 2004, the Illinois State Legislature enacted Public Act 093-0936, which requires the state to adopt energy codes for commercial buildings. The code went into effect in April 2006. The act requires all commercial buildings with a permit application from a municipality or county to meet a statewide energy conservation code. Municipalities and counties are required to adopt and implement the 2012 version of the International Energy Conservation Code (IECC), which can be accessed here.^[14]

In 2009, the legislature enacted HB 3987, which requires the state to adopt the 2009 version of the IECC for all residential buildings and privately funded commercial buildings. The Illinois Capital Development Board is required to adopt each subsequent version of the IECC within one year of the code's publication.^[14]

In 2007, the legislature enacted legislation requiring all executive branch state agencies to set a goal of reducing energy use by 10 percent by the year 2018. The law also requires state agencies to purchase appliances, such as air conditioners, computers, and office equipment that meet international energy efficient standards.^[15]

In 2009, the legislature enacted the Green Buildings Act, which requires all new state-funded building construction or major renovations to state-funded buildings to meet energy efficiency criteria. Major renovations include projects with a budget of at least 40 percent of a building's replacement cost. New buildings or renovations of 10,000 square feet or more must meet Leadership in Energy and Environmental Design (LEED) Silver energy efficiency standards.^[15]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[16][17][18]

As of October 2016, Illinois was one of 41 states with a statewide net metering policy. In 2007, the Illinois State Legislature enacted SB 680, which requires investor-owned utilities and alternative retail electric suppliers in the state to provide net metering. Publicly owned municipal utilities and electric cooperatives are exempt. Net metering is offered to consumers that generate electricity with wind energy, solar energy, biomass, hydroelectric power, livestock manure, agricultural residue, and fuel cells generated from renewable fuels. Customers are eligible for net metering for systems of up to 2 megawatts (MW) in capacity.^[19]

For a complete list of net metering programs by state, click here.^[8][20]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Illinois State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Illinois ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Illinois.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Illinois.

Production

The sections below include statistics on total energy production in Illinois, oil and natural gas production in Illinois, oil and gas production in Illinois over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Illinois for production.

Total energy production

The table below provides information regarding energy production in Illinois in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[21]

Energy production, 2014 (in billion Btu)
State	Biomass	Coal	Crude oil	Nuclear energy	Natural gas	Renewable	Total*
Illinois	176,057	1,293,541	55,373	1,023,496	2,754	308,652	2,859,873
Indiana	139,957	886,370	14,541		6,755	215,433	1,263,056
Missouri	36,492	8,206	1,137	97,021	9	93,213	236,078
Wisconsin	73,257	0	0	98,807		199,796	371,860
U.S. average	38,759	404,181	307,301	160,980	585,731	187,132	1,684,085
*Total figures were computed by Ballotpedia. Source: U.S. Energy Information Administration, "Google Sheets API"

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Illinois. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[22][23]

Nonrenewable energy production
State	Coal, productive capacity (short tons)	Natural gas (million cubic feet)	Crude oil (thousand barrels)
Date	2014	December 2014	April 2016
Illinois	76,344,003	206	723
Indiana	49,403,928	550	149
Missouri	377,838	1	11
Wisconsin	0	0	0
U.S. average	24,874,314	43,350	4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in Illinois. Information from select surrounding states is provided for comparative purposes.^[24]

Crude oil production in Illinois and select surrounding states, in thousand barrels
State	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	Percent of total 2014 production	2014 Rank
Illinois	10,984	10,207	10,325	9,608	9,448	9,097	9,069	8,742	8,908	9,539	9,547	0.3%	17
Indiana	1,755	1,727	1,773	1,727	1,859	1,803	1,835	1,987	2,350	2,399	2,507	0.08%	23
Iowa	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
Wisconsin	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
United States	1,991,394	1,891,227	1,857,044	1,853,166	1,830,002	1,952,670	2,000,861	2,060,398	2,377,806	2,722,171	3,180,813	--	--
Source: U.S. Energy Information Administration, "Crude Oil Production" Note: The data above are field production data.

The graph and table below provide information about natural gas production in Illinois. Information from select surrounding states is provided for comparative purposes.^[25]

Natural gas production in Illinois and select surrounding states, in million cubic feet (MMCF)
State	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	Percent of total 2013 production	2013 rank
Illinois	174	170	166	170	1,394	1,193	1,443	1,702	2,121	2,125	2,887	0.01%	27
Indiana	1,464	3,401	3,135	2,921	3,606	4,701	4,927	6,802	9,075	8,814	7,938	0.03%	25
Iowa	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
Wisconsin	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
United States	24,118,978	23,969,678	23,456,822	23,535,018	24,663,656	25,636,257	26,056,893	26,816,085	28,479,026	29,542,313	30,005,254	--	--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production" The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

Oil and gas production on federal land

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.^[26][27]

The table below provides information about oil and natural gas production on federal lands in Illinois in 2014. Information from select surrounding states is provided for comparison.^[28][29]

Oil and natural gas production on federal land, 2014
State	Oil production (in thousands of barrels)	Natural gas production (in million cubic feet)
Illinois	21	0
Indiana	0	0
Missouri	0	0
Wisconsin	0	0
U.S. average	2,976.06	49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

Land leased

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.^[30]

The table below provides information about oil and gas producing leases and acres on federal lands in Illinois from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015
State	FY 2015	FY 2014	FY 2013
Producing leases	Producing acres	Producing leases	Producing acres	Producing leases	Producing acres
Illinois	8	1,581	8	1,581	9	1,651
Indiana	2	68	2	68	2	68
Missouri	0	0	0	0	0	0
Wisconsin	0	0	0	0	0	0
U.S. average	485	257,505	483	258,996	480	262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Illinois in 2014. Information from select surrounding states is provided for comparison.^[22]

Energy consumption in Illinois, 2014 (in billion Btu)
State	Coal	Crude oil and petroleum products	Natural gas	Nuclear energy	Solar	Wind	Geothermal	Hydropower	Wood and wood waste	Biomass
Illinois	1,017,855	1,220,342	1,116,417	1,023,496	3,102	95,888	2,042	1,258	30,304	138,402
Indiana	1,221,492	789,201	727,758		1,374	33,247	4,647	3,530	32,678	112,781
Missouri	780,707	635,718	301,360	97,021	1,819	10,757	352	6,632	37,161	74,839
Wisconsin	417,096	564,769	477,923	98,807	833	15,387	615	23,507	86,197	136,809
U.S. average	359,931	716,746	544,353	172,585	20,739	531,323	16,555	61,397	65,345	101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

Prices and taxes

The sections below include information on energy prices and spending in Illinois, fuel taxes and state taxes in Illinois and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[31][32]

The table below provides information about energy prices in Illinois as of April 2016. Information from select surrounding states is provided for comparison.^[22]

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in Illinois
State	Natural gas Dollars per thousand cubic foot	Electricity Cents per kilowatthour
Date	April 2016	April 2016
Illinois	$7.52	9.0
Indiana	$0.00	9.1
Missouri	$11.31	8.7
Wisconsin	$7.57	10.7
U.S. average	$11.20	10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Illinois in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Illinois by sector (in cents per kilowatthour)
State	Commercial	Industrial	Residential	Transportation	Average (all sectors)
Date	April 2016	April 2016	April 2016	April 2016	April 2016
Illinois	8.7	6.3	12.8	8.7	9.1
Indiana	9.8	7.1	11.8	9.8	9.6
Missouri	8.2	6.2	10.4	8.2	8.3
Wisconsin	10.9	7.4	14.5	10.9	10.9
U.S. average	10.48	7.45	13.05	10.47	10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

Energy spending

The table below provides information about energy spending in Illinois as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Illinois, 2014 (in millions of dollar except per capita spending)
State	Petroleum	Coal	Natural gas	Nuclear	Per capita spending
Illinois	$29,290	$2,155	$9,088	$786	$4,002
Indiana	$18,850	$3,514	$5,266	$0	$5,176
Missouri	$16,449	$1,578	$2,632	$85	$4,406
Wisconsin	$15,161	$1,019	$3,981	$72	$4,592
U.S. average	$17,267	$1,322	$3,786	$574	$5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

Fuel taxes

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[33][34]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Illinois as of January 2016. As of January 2016, Illinois levied a 30.2 cent state gasoline tax and a 33.4 cent state diesel tax. Illinois ranked 20th in total gasoline taxes (federal and state) and 14th in total diesel fuel taxes as of January 2016.^[35][36]

State motor fuel taxes in cents per gallon, January 2016
State	State gasoline tax	Total gasoline tax	Rank	State diesel tax	Total diesel tax	Rank
Illinois	30.2	48.6	20	33.4	57.8	14
Indiana	29.9	48.3	23	38.8	63.2	6
Missouri	17.3	35.7	46	17.3	41.7	47
Wisconsin	32.9	51.3	12	32.9	57.3	16
U.S. average	30.29	48.69	N/A	30.01	54.41	N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[37]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Illinois, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Illinois.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[38][39]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[39]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utility rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[40][41]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[40][41]

As of February 2017, Illinois was one of 17 states with a deregulated electricity market. In 1997, the Illinois State Legislature enacted the Illinois Electric Service Customer Choice and Rate Relief Act, which broke up the Ameren Illinois Utilities Co. and the Commonwealth Edison Company. Larger commercial customers of electricity were permitted to purchase electricity from alternative retail electric suppliers certified by the state government. From 1997 to 2007, the Illinois Commerce Commission, which regulates the state's public utilities, reduced the price of electricity by 20 percent and kept electricity rates as they were. During this period, state utilities were required to sell electricity generation assets to other electric companies. These state utilities were permitted to deliver, though not generate, electricity. In 2002, the state's electricity market was deregulated for residential consumers. The website of the Illinois Commerce Commission contains a database for all utilities, including all electric utilities, electric cooperatives, and alternative retail electric suppliers, which can be accessed here.^[42][43]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[44]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[45]

Illinois EROs

As of February 2017, the SERC Reliability Corporation was the NERC-affiliated nonprofit regulatory commission that oversees electricity reliability in most of Illinois, particularly central and southern Illinois. Meanwhile, ReliabilityFirst was the NERC-affiliated nonprofit corporation that oversees electric service reliability in northern Illinois, including Chicago. These commissions are responsible for developing electricity reliability standards, monitoring compliance by owners and users of the bulk electric system, and issuing seasonal and long-term assessments of bulk electric system reliability in the region.^[46][47]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Illinois (from the U.S. Energy Information Administration), a general profile of Illinois (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Illinois.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[48]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[48]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota—given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[48]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[48]

Illinois energy profile

As of 2015, Illinois was in the top-five energy consuming states, though its per capita energy consumption equaled the national median. The industrial sector, which includes machinery manufacturing, chemical manufacturing, oil refining, coal mining, and food production, was the state's largest energy consumer followed by the residential and transportation sectors.^[22]

As of 2015, Illinois ranked fourth in crude oil refining capacity after Texas, Louisiana, and California. The state was also the largest oil refiner in the Midwest. Illinois oil refineries process both domestic and Canadian crude oil. The state's crude oil ports are located in Chicago along Lake Michigan and in Peoria along a waterway that connects Lake Michigan to the Mississippi River. As of 2015, Illinois had few producing natural gas wells and limited production.^[22]

As of February 2016, one-eighth of total U.S. nuclear power generation came from Illinois. About half of the state's net electricity generation came from Illinois' six nuclear power plants. Approximately 40 percent of the state's electricity came from coal-fired power plants followed by wind energy and natural gas. The state's interstate electricity grids deliver surplus electricity to other states. Around 5 percent of the state's electricity generation came from all renewable energy sources.^[22]

State profile

Demographic data for Illinois
	Illinois	U.S.
Total population:	12,839,047	316,515,021
Land area (sq mi):	55,519	3,531,905
Race and ethnicity**
White:	72.3%	73.6%
Black/African American:	14.3%	12.6%
Asian:	5%	5.1%
Native American:	0.2%	0.8%
Pacific Islander:	0%	0.2%
Two or more:	2.2%	3%
Hispanic/Latino:	16.5%	17.1%
Education
High school graduation rate:	87.9%	86.7%
College graduation rate:	32.3%	29.8%
Income
Median household income:	$57,574	$53,889
Persons below poverty level:	16.8%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Illinois. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Illinois

Illinois voted for the Democratic candidate in all seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, 11 are located in Illinois, accounting for 5.34 percent of the total pivot counties.^[49]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Illinois had 11 Retained Pivot Counties, 6.08 percent of all Retained Pivot Counties.

More Illinois coverage on Ballotpedia

• Elections in Illinois
• United States congressional delegations from Illinois
• Public policy in Illinois
• Endorsers in Illinois
• Illinois fact checks
• More...

Economic indicators

See also: Economic indicators by state

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[50][51][52]

In September 2014, Illinois had an unemployment rate of 6.6 percent, higher than any of its neighboring states. Most residents in Illinois earned incomes at least 400 percent above the federal poverty level, with a median annual household income of $54,083.^{[53][54][55][56]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)	Median annual income (2011-2013)	Unemployment rate	Total GSP (2013)†
Under 100%	100-199%	200-399%	400%+	Sept. 2013	Sept. 2014
Illinois	13%	17%	31%	39%	$54,083	9.1%	6.6%	$720,692
Indiana	12%	23%	31%	35%	$48,178	7.3%	5.7%	$317,102
Iowa	11%	18%	35%	36%	$53,364	4.5%	4.6%	$165,767
Wisconsin	11%	15%	31%	42%	$54,205	6.6%	5.5%	$282,486
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

See also

• Energy policy in the U.S.
• Fracking in Illinois
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Illinois

Recent news

The link below is to the most recent stories in a Google news search for the terms Illinois energy policy. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Footnotes

	v • e State of Illinois Springfield (capital)
Elections	What's on my ballot? | Elections in 2025 | How to vote | How to run for office | Ballot measures
Government	Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy