News
January 29, 2026

Illinois Proposal Seeks Ban on Gas Connections in New Buildings

Construction Owners Editorial Team

A coalition of labor unions, environmental advocates, and allied organizations is urging Illinois regulators to prohibit natural gas connections in newly constructed residential and commercial buildings, a proposal that has drawn strong opposition from the state’s small-business community.

Courtesy: Photo by Doris Morgan on Unsplash

The Illinois Clean Jobs Coalition (ICJC) recently submitted the proposal to the Illinois Commerce Commission (ICC) as part of the agency’s ongoing Future of Gas proceedings. If adopted, the measure would restrict natural gas hook-ups for most new construction projects across the state, with the ban scheduled to take effect on June 30, 2030.

Coalition Pushes Gas Ban Through State Regulatory Process

Under the proposal, limited exemptions would be allowed for:

  • “Buildings that require gas systems for emergency backup power”
  • “Buildings specifically designated for occupancy by a commercial food establishment, laboratory, laundromat, hospital, or crematorium.”

Supporters argue the restrictions are necessary to advance long-term decarbonization goals and reduce reliance on fossil fuels. The proposal was submitted during Phase 2C of the ICC’s Future of Gas Workshop, which is focused on “exploring legislative, regulatory, and policy options for decarbonization of the gas distribution system in Illinois.”

However, small-business advocates say the proposal would significantly limit consumer energy choice at a time when electricity costs and grid pressures are already rising.

Courtesy: Photo by Max Bender on Unsplash

Illinois members of the National Federation of Independent Business (NFIB) overwhelmingly oppose restrictions on natural gas use. In a recent NFIB member ballot conducted statewide, 98% of respondents said “no” when asked whether “state and local governments [should] limit or ban the use of natural gas and other fossil fuels?”

Small Businesses Warn of Higher Costs and Limited Energy Choice

“At a time of rising electricity prices, it’s unfathomable that these groups continue to push for restricting consumer choice,” said NFIB Illinois State Director Noah Finley. “Small businesses rely upon cheap and abundant energy, and this proposal would restrict their options, forcing them to depend entirely on an expensive and overstretched electricity market.”

Business groups warn that eliminating gas connections in new construction could raise upfront building costs, complicate long-term energy planning, and place additional strain on Illinois’ electric infrastructure as demand continues to grow.

According to ICJC, the coalition is “made up of hundreds of environmental advocacy organizations, businesses, community leaders, consumer advocates, environmental justice groups, and faith-based and student organizations.” Member groups listed by the coalition include the Sierra Club, Chicago Teachers Union, SEIU Local 1, the Citizens Utility Board, the Environmental Law & Policy Center, and the Illinois Environmental Council.

The ICC is expected to continue reviewing stakeholder input as the Future of Gas proceedings move forward. Any final decision on the proposal would shape how energy systems are designed and financed in Illinois for decades, with significant implications for builders, utilities, and small businesses statewide.

Originally reported by NFIB.

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