At the Indiana, Illinois, Iowa, Foundation for Fair Contracting (III FFC), we pay close attention to policy changes that may appear technical on the surface but carry significant long-term consequences for construction markets, public infrastructure, and responsible development. Illinois’ stretch energy code is one of those issues. In simple terms, the Illinois Stretch Energy Code is an optional, more energy-efficient building code that municipalities and counties may adopt in place of the baseline Illinois Energy Conservation Code.
State law directs the Capital Development Board (CDB) to create the stretch code as a consistent statewide pathway for communities that want to require greater energy efficiency than the base code. T he program includes separate residential and commercial components, which local governments may adopt jointly or separately.
Ultimately, stretch codes influence how buildings are designed, which systems are specified, and what kinds of infrastructure will be needed to support future development. A central component is that it requires buildings to be electric-ready, including having electrical panel capacity, wiring, and circuits needed for electric heating, electric water heating, and other electric appliances. Natural gas is not expressly banned by the stretch code, but the structure of the code plainly increases the role of electric-ready construction in new development.
The current 2023 Illinois Stretch Energy Code took effect on January 1, 2025. Under current state guidance, state-funded facilities must comply with the commercial stretch code, while privately funded commercial and residential projects are subject to the stretch code only where a municipality has formally adopted it. The CDB is already developing the 2026 stretch code, which confirms that this is the beginning of an ongoing policy path.
From the III FFC’s standpoint, the central issue is not whether energy efficiency is a worthwhile goal. It is. Responsible contractors build to modern standards every day. T he concern is whether the policy framework remains genuinely balanced and fuel-neutral, or whether it gradually channels the market toward a single energy pathway. And ultimately, these requirements can significantly increase building costs.
That directional shift deserves careful scrutiny. For years, the III FFC has raised concerns about policy approaches that discount the importance of natural-gas infrastructure. When building policy increasingly favors electric-ready design and stronger electrification pathways, it can reduce fuel flexibility over time. That has consequences not just for private construction choices, but for utility planning, service capacity, project cost, and the broader mix of work tied to balanced energy infrastructure. In our view, policymakers should be cautious about adopting frameworks that push communities toward greater dependence on electricity without fully accounting for reliability, affordability, resilience, and the continuing importance of diversified energy systems.
The III FFC will continue monitoring the development and local adoption of Illinois’ stretch energy codes, along with any future revisions advanced by the CDB.