Illinois Enacts Battery Bill and Renewable Energy Reforms

The State of Illinois has enacted Senate Bill 25, a key update to the state’s renewable energy and taxation framework. The new legislation establishes uniform property tax treatment and siting standards for battery energy storage systems (BESS), refines wind and solar siting standards, and expands the Illinois Commerce Commission’s oversight of large-scale renewable projects.

Uniform Property Tax for Battery Energy Storage

Under the newly created 35 ILCS 200/10-920, battery energy storage systems will now be taxed uniformly statewide, mirroring the approach used for wind and solar energy facilities. Property valuation is set at $65 per kilowatt hour of energy capacity, with adjustments for inflation and depreciation. The law also requires that BESS parcels be subdivided for direct assessment to project owners.

New Statewide BESS Siting Framework

The addition of 55 ILCS 5/5-12024 creates uniform statewide siting standards for BESS projects, requiring counties with zoning to permit these facilities in agricultural and industrial districts. The statute limits setbacks to 150 feet from occupied community buildings and 50 feet from property lines and public rights-of-way.

Streamlined Wind and Solar Siting Standards

Amendments to 55 ILCS 5/5-12020 clarify several key siting requirements for renewable projects:

• 60-day public hearing limit following the filing of a siting application.
• Solar fencing exempt from standard setback requirements, with counties permitted to set only “reasonable” rights-of-way setbacks.
• Fee reasonableness defined: siting/special use fees up to $5,000 per MW (maximum $125,000) and building permit fees up to $5,000 per MW (maximum $75,000) are presumptively reasonable.
• Five-year construction window after approval; shorter local deadlines are prohibited.
• Vegetative screening limited to five feet at installation; U.S. Fish & Wildlife Service consultation may no longer be required.

Expanded Illinois Commerce Commission Authority

Under 220 ILCS 5/23-110, the Illinois Commerce Commission (ICC) is now empowered to resolve disputes when local governments fail to comply with state siting laws. For renewable projects exceeding 50 megawatts, the ICC may issue siting certificates authorizing construction, maintenance, and decommissioning, allowing qualifying projects to proceed even if denied at the county level.

To learn more about Schain Banks’ renewable energy practice, please contact one of our land use and zoning attorneys.