Bill Text: IL HB4085 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Environmental Protection Act. Provides that the owner or operator of any large GHG-emitting unit in the State, including the owner or operator of an EGU in the State, may petition the Commission for a waiver of any one or more specified emission limitations. Provides that, if the Commission determines, following a hearing, that compliance with any one or more of the emission limitations will either threaten the reliability or adequacy of electricity supplies in the State or will create a significant economic hardship for electricity users in the State, the Commission may enter a written order waiving the operation of those limitations for a period to be specified by the Commission. Provides that, if at any time the Illinois Commerce Commission believes that an impending plant closure would threaten the reliability or adequacy of electricity supplies in the State or create a significant economic hardship for electricity users, the Illinois Commerce Commission shall enter a written order waiving the operation of those limitations for any large GHG-emitting units in the State for a period to be specified by the Commission. Provides that, if there is a conflict between the terms of the Act and an order entered by the Commission, the Commission's order shall control. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4085 Detail]

Download: Illinois-2023-HB4085-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4085 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED:
415 ILCS 5/9.15
Amends the Environmental Protection Act. Provides that the owner or operator of any large GHG-emitting unit in the State, including the owner or operator of an EGU in the State, may petition the Commission for a waiver of any one or more specified emission limitations. Provides that, if the Commission determines, following a hearing, that compliance with any one or more of the emission limitations will either threaten the reliability or adequacy of electricity supplies in the State or will create a significant economic hardship for electricity users in the State, the Commission may enter a written order waiving the operation of those limitations for a period to be specified by the Commission. Provides that, if at any time the Illinois Commerce Commission believes that an impending plant closure would threaten the reliability or adequacy of electricity supplies in the State or create a significant economic hardship for electricity users, the Illinois Commerce Commission shall enter a written order waiving the operation of those limitations for any large GHG-emitting units in the State for a period to be specified by the Commission. Provides that, if there is a conflict between the terms of the Act and an order entered by the Commission, the Commission's order shall control. Effective immediately.
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A BILL FOR
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AN ACT concerning safety.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Environmental Protection Act is amended by
changing Section 9.15 as follows:
(415 ILCS 5/9.15)
Sec. 9.15. Greenhouse gases.
(a) An air pollution construction permit shall not be
required due to emissions of greenhouse gases if the
equipment, site, or source is not subject to regulation, as
defined by 40 CFR 52.21, as now or hereafter amended, for
greenhouse gases or is otherwise not addressed in this Section
or by the Board in regulations for greenhouse gases. These
exemptions do not relieve an owner or operator from the
obligation to comply with other applicable rules or
regulations.
(b) An air pollution operating permit shall not be
required due to emissions of greenhouse gases if the
equipment, site, or source is not subject to regulation, as
defined by Section 39.5 of this Act, for greenhouse gases or is
otherwise not addressed in this Section or by the Board in
regulations for greenhouse gases. These exemptions do not
relieve an owner or operator from the obligation to comply

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with other applicable rules or regulations.
(c) (Blank).
(d) (Blank).
(e) (Blank).
(f) As used in this Section:
"Carbon dioxide emission" means the plant annual CO2 total
output emission as measured by the United States Environmental
Protection Agency in its Emissions & Generation Resource
Integrated Database (eGrid), or its successor.
"Carbon dioxide equivalent emissions" or "CO2e" means the
sum total of the mass amount of emissions in tons per year,
calculated by multiplying the mass amount of each of the 6
greenhouse gases specified in Section 3.207, in tons per year,
by its associated global warming potential as set forth in 40
CFR 98, subpart A, table A-1 or its successor, and then adding
them all together.
"Cogeneration" or "combined heat and power" refers to any
system that, either simultaneously or sequentially, produces
electricity and useful thermal energy from a single fuel
source.
"Copollutants" refers to the 6 criteria pollutants that
have been identified by the United States Environmental
Protection Agency pursuant to the Clean Air Act.
"Electric generating unit" or "EGU" means a fossil
fuel-fired stationary boiler, combustion turbine, or combined
cycle system that serves a generator that has a nameplate

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capacity greater than 25 MWe and produces electricity for
sale.
"Environmental justice community" means the definition of
that term based on existing methodologies and findings, used
and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Equity investment eligible community" or "eligible
community" means the geographic areas throughout Illinois that
would most benefit from equitable investments by the State
designed to combat discrimination and foster sustainable
economic growth. Specifically, eligible community means the
following areas:
(1) areas where residents have been historically
excluded from economic opportunities, including
opportunities in the energy sector, as defined as R3 areas
pursuant to Section 10-40 of the Cannabis Regulation and
Tax Act; and
(2) areas where residents have been historically
subject to disproportionate burdens of pollution,
including pollution from the energy sector, as established
by environmental justice communities as defined by the
Illinois Power Agency pursuant to the Illinois Power
Agency Act, excluding any racial or ethnic indicators.
"Equity investment eligible person" or "eligible person"
means the persons who would most benefit from equitable
investments by the State designed to combat discrimination and

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foster sustainable economic growth. Specifically, eligible
person means the following people:
(1) persons whose primary residence is in an equity
investment eligible community;
(2) persons whose primary residence is in a
municipality, or a county with a population under 100,000,
where the closure of an electric generating unit or mine
has been publicly announced or the electric generating
unit or mine is in the process of closing or closed within
the last 5 years;
(3) persons who are graduates of or currently enrolled
in the foster care system; or
(4) persons who were formerly incarcerated.
"Existing emissions" means:
(1) for CO2e, the total average tons-per-year of CO2e
emitted by the EGU or large GHG-emitting unit either in
the years 2018 through 2020 or, if the unit was not yet in
operation by January 1, 2018, in the first 3 full years of
that unit's operation; and
(2) for any copollutant, the total average
tons-per-year of that copollutant emitted by the EGU or
large GHG-emitting unit either in the years 2018 through
2020 or, if the unit was not yet in operation by January 1,
2018, in the first 3 full years of that unit's operation.
"Green hydrogen" means a power plant technology in which
an EGU creates electric power exclusively from electrolytic

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hydrogen, in a manner that produces zero carbon and
copollutant emissions, using hydrogen fuel that is
electrolyzed using a 100% renewable zero carbon emission
energy source.
"Large greenhouse gas-emitting unit" or "large
GHG-emitting unit" means a unit that is an electric generating
unit or other fossil fuel-fired unit that itself has a
nameplate capacity or serves a generator that has a nameplate
capacity greater than 25 MWe and that produces electricity,
including, but not limited to, coal-fired, coal-derived,
oil-fired, natural gas-fired, and cogeneration units.
"NOx emission rate" means the plant annual NOx total output
emission rate as measured by the United States Environmental
Protection Agency in its Emissions & Generation Resource
Integrated Database (eGrid), or its successor, in the most
recent year for which data is available.
"Public greenhouse gas-emitting units" or "public
GHG-emitting unit" means large greenhouse gas-emitting units,
including EGUs, that are wholly owned, directly or indirectly,
by one or more municipalities, municipal corporations, joint
municipal electric power agencies, electric cooperatives, or
other governmental or nonprofit entities, whether organized
and created under the laws of Illinois or another state.
"SO2 emission rate" means the "plant annual SO2 total
output emission rate" as measured by the United States
Environmental Protection Agency in its Emissions & Generation

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Resource Integrated Database (eGrid), or its successor, in the
most recent year for which data is available.
(g) All EGUs and large greenhouse gas-emitting units that
use coal or oil as a fuel and are not public GHG-emitting units
shall permanently reduce all CO2e and copollutant emissions to
zero no later than January 1, 2030.
(h) All EGUs and large greenhouse gas-emitting units that
use coal as a fuel and are public GHG-emitting units shall
permanently reduce CO2e emissions to zero no later than
December 31, 2045. Any source or plant with such units must
also reduce their CO2e emissions by 45% from existing
emissions by no later than January 1, 2035. If the emissions
reduction requirement is not achieved by December 31, 2035,
the plant shall retire one or more units or otherwise reduce
its CO2e emissions by 45% from existing emissions by June 30,
2038.
(i) All EGUs and large greenhouse gas-emitting units that
use gas as a fuel and are not public GHG-emitting units shall
permanently reduce all CO2e and copollutant emissions to zero,
including through unit retirement or the use of 100% green
hydrogen or other similar technology that is commercially
proven to achieve zero carbon emissions, according to the
following:
(1) No later than January 1, 2030: all EGUs and large
greenhouse gas-emitting units that have a NOx emissions
rate of greater than 0.12 lbs/MWh or a SO2 emission rate of

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greater than 0.006 lb/MWh, and are located in or within 3
miles of an environmental justice community designated as
of January 1, 2021 or an equity investment eligible
community.
(2) No later than January 1, 2040: all EGUs and large
greenhouse gas-emitting units that have a NOx emission
rate of greater than 0.12 lbs/MWh or a SO2 emission rate
greater than 0.006 lb/MWh, and are not located in or
within 3 miles of an environmental justice community
designated as of January 1, 2021 or an equity investment
eligible community. After January 1, 2035, each such EGU
and large greenhouse gas-emitting unit shall reduce its
CO2e emissions by at least 50% from its existing emissions
for CO2e, and shall be limited in operation to, on average,
6 hours or less per day, measured over a calendar year, and
shall not run for more than 24 consecutive hours except in
emergency conditions, as designated by a Regional
Transmission Organization or Independent System Operator.
(3) No later than January 1, 2035: all EGUs and large
greenhouse gas-emitting units that began operation prior
to the effective date of this amendatory Act of the 102nd
General Assembly and have a NOx emission rate of less than
or equal to 0.12 lb/MWh and a SO2 emission rate less than
or equal to 0.006 lb/MWh, and are located in or within 3
miles of an environmental justice community designated as
of January 1, 2021 or an equity investment eligible

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community. Each such EGU and large greenhouse gas-emitting
unit shall reduce its CO2e emissions by at least 50% from
its existing emissions for CO2e no later than January 1,
2030.
(4) No later than January 1, 2040: All remaining EGUs
and large greenhouse gas-emitting units that have a heat
rate greater than or equal to 7000 BTU/kWh. Each such EGU
and Large greenhouse gas-emitting unit shall reduce its
CO2e emissions by at least 50% from its existing emissions
for CO2e no later than January 1, 2035.
(5) No later than January 1, 2045: all remaining EGUs
and large greenhouse gas-emitting units.
(j) All EGUs and large greenhouse gas-emitting units that
use gas as a fuel and are public GHG-emitting units shall
permanently reduce all CO2e and copollutant emissions to zero,
including through unit retirement or the use of 100% green
hydrogen or other similar technology that is commercially
proven to achieve zero carbon emissions by January 1, 2045.
(k) All EGUs and large greenhouse gas-emitting units that
utilize combined heat and power or cogeneration technology
shall permanently reduce all CO2e and copollutant emissions to
zero, including through unit retirement or the use of 100%
green hydrogen or other similar technology that is
commercially proven to achieve zero carbon emissions by
January 1, 2045.
(k-5) No EGU or large greenhouse gas-emitting unit that

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uses gas as a fuel and is not a public GHG-emitting unit may
emit, in any 12-month period, CO2e or copollutants in excess of
that unit's existing emissions for those pollutants.
(l) Notwithstanding subsections (g) through (k-5), large
GHG-emitting units including EGUs may temporarily continue
emitting CO2e and copollutants after any applicable deadline
specified in any of subsections (g) through (k-5) if it has
been determined, as described in paragraphs (1) and (2) of
this subsection, that ongoing operation of the EGU is
necessary to maintain power grid supply and reliability or
ongoing operation of large GHG-emitting unit that is not an
EGU is necessary to serve as an emergency backup to
operations. Up to and including the occurrence of an emission
reduction deadline under subsection (i), all EGUs and large
GHG-emitting units must comply with the following terms:
(1) if an EGU or large GHG-emitting unit that is a
participant in a regional transmission organization
intends to retire, it must submit documentation to the
appropriate regional transmission organization by the
appropriate deadline that meets all applicable regulatory
requirements necessary to obtain approval to permanently
cease operating the large GHG-emitting unit;
(2) if any EGU or large GHG-emitting unit that is a
participant in a regional transmission organization
receives notice that the regional transmission
organization has determined that continued operation of

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the unit is required, the unit may continue operating
until the issue identified by the regional transmission
organization is resolved. The owner or operator of the
unit must cooperate with the regional transmission
organization in resolving the issue and must reduce its
emissions to zero, consistent with the requirements under
subsection (g), (h), (i), (j), (k), or (k-5), as
applicable, as soon as practicable when the issue
identified by the regional transmission organization is
resolved; and
(3) any large GHG-emitting unit that is not a
participant in a regional transmission organization shall
be allowed to continue emitting CO2e and copollutants
after the zero-emission date specified in subsection (g),
(h), (i), (j), (k), or (k-5), as applicable, in the
capacity of an emergency backup unit if approved by the
Illinois Commerce Commission.
(l-5) The owner or operator of any large GHG-emitting unit
in the State, including the owner or operator of an EGU in the
State, may petition the Illinois Commerce Commission under
this subsection for a waiver of any one or more of the emission
limitations set forth in subsections (g) through (k-5) of this
Section. Within 30 days after receiving such a petition, the
Commission shall hold at least one public hearing on the
petition at a location that is within 50 miles of at least one
of the units for which the waiver is sought. If the Commission

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determines, following such a hearing, that compliance with any
one or more of the emission limitations set forth in
subsections (g) through (k-5) of this Section will either
threaten the reliability or adequacy of electricity supplies
in the State or will create a significant economic hardship
for electricity users in the State, then the Commission may
enter a written order waiving the operation of any one or more
of those limitations for any large GHG-emitting units in the
State for a period to be specified by the Commission in its
order. If there is a conflict between the terms of this Section
and an order entered by the Commission under this subsection,
the Commission's order shall control.
(l-10) If at any time the Illinois Commerce Commission
believes that an impending plant closure would threaten the
reliability or adequacy of electricity supplies in the State
or create a significant economic hardship for electricity
users, the Illinois Commerce Commission shall enter a written
order waiving the operation of any one or more of the emission
limitations set forth in subsections (g) through (k-5) for any
large GHG-emitting units in the State for a period to be
specified by the Commission. If there is a conflict between
the terms of this Section and an order entered by the
Commission under this subsection, the Commission's order shall
control.
(m) Except as otherwise provided in this Section, no No
variance, adjusted standard, or other regulatory relief

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otherwise available in this Act may be granted to the
emissions reduction and elimination obligations in this
Section.
(n) By June 30 of each year, beginning in 2025, the Agency
shall prepare and publish on its website a report setting
forth the actual greenhouse gas emissions from individual
units and the aggregate statewide emissions from all units for
the prior year.
(o) Every 5 years beginning in 2025, the Environmental
Protection Agency, Illinois Power Agency, and Illinois
Commerce Commission shall jointly prepare, and release
publicly, a report to the General Assembly that examines the
State's current progress toward its renewable energy resource
development goals, the status of CO2e and copollutant
emissions reductions, the current status and progress toward
developing and implementing green hydrogen technologies, the
current and projected status of electric resource adequacy and
reliability throughout the State for the period beginning 5
years ahead, and proposed solutions for any findings. The
Environmental Protection Agency, Illinois Power Agency, and
Illinois Commerce Commission shall consult PJM
Interconnection, LLC and Midcontinent Independent System
Operator, Inc., or their respective successor organizations
regarding forecasted resource adequacy and reliability needs,
anticipated new generation interconnection, new transmission
development or upgrades, and any announced large GHG-emitting

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unit closure dates and include this information in the report.
The report shall be released publicly by no later than
December 15 of the year it is prepared. If the Environmental
Protection Agency, Illinois Power Agency, and Illinois
Commerce Commission jointly conclude in the report that the
data from the regional grid operators, the pace of renewable
energy development, the pace of development of energy storage
and demand response utilization, transmission capacity, and
the CO2e and copollutant emissions reductions required by
subsection (i) or (k-5) reasonably demonstrate that a resource
adequacy shortfall will occur, including whether there will be
sufficient in-state capacity to meet the zonal requirements of
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
regional transmission organizations, or that the regional
transmission operators determine that a reliability violation
will occur during the time frame the study is evaluating, then
the Illinois Power Agency, in conjunction with the
Environmental Protection Agency shall develop a plan to reduce
or delay CO2e and copollutant emissions reductions
requirements only to the extent and for the duration necessary
to meet the resource adequacy and reliability needs of the
State, including allowing any plants whose emission reduction
deadline has been identified in the plan as creating a
reliability concern to continue operating, including operating
with reduced emissions or as emergency backup where
appropriate. The plan shall also consider the use of renewable

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energy, energy storage, demand response, transmission
development, or other strategies to resolve the identified
resource adequacy shortfall or reliability violation.
(1) In developing the plan, the Environmental
Protection Agency and the Illinois Power Agency shall hold
at least one workshop open to, and accessible at a time and
place convenient to, the public and shall consider any
comments made by stakeholders or the public. Upon
development of the plan, copies of the plan shall be
posted and made publicly available on the Environmental
Protection Agency's, the Illinois Power Agency's, and the
Illinois Commerce Commission's websites. All interested
parties shall have 60 days following the date of posting
to provide comment to the Environmental Protection Agency
and the Illinois Power Agency on the plan. All comments
submitted to the Environmental Protection Agency and the
Illinois Power Agency shall be encouraged to be specific,
supported by data or other detailed analyses, and, if
objecting to all or a portion of the plan, accompanied by
specific alternative wording or proposals. All comments
shall be posted on the Environmental Protection Agency's,
the Illinois Power Agency's, and the Illinois Commerce
Commission's websites. Within 30 days following the end of
the 60-day review period, the Environmental Protection
Agency and the Illinois Power Agency shall revise the plan
as necessary based on the comments received and file its

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revised plan with the Illinois Commerce Commission for
approval.
(2) Within 60 days after the filing of the revised
plan at the Illinois Commerce Commission, any person
objecting to the plan shall file an objection with the
Illinois Commerce Commission. Within 30 days after the
expiration of the comment period, the Illinois Commerce
Commission shall determine whether an evidentiary hearing
is necessary. The Illinois Commerce Commission shall also
host 3 public hearings within 90 days after the plan is
filed. Following the evidentiary and public hearings, the
Illinois Commerce Commission shall enter its order
approving or approving with modifications the reliability
mitigation plan within 180 days.
(3) The Illinois Commerce Commission shall only
approve the plan if the Illinois Commerce Commission
determines that it will resolve the resource adequacy or
reliability deficiency identified in the reliability
mitigation plan at the least amount of CO2e and copollutant
emissions, taking into consideration the emissions impacts
on environmental justice communities, and that it will
ensure adequate, reliable, affordable, efficient, and
environmentally sustainable electric service at the lowest
total cost over time, taking into account the impact of
increases in emissions.
(4) If the resource adequacy or reliability deficiency

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identified in the reliability mitigation plan is resolved
or reduced, the Environmental Protection Agency and the
Illinois Power Agency may file an amended plan adjusting
the reduction or delay in CO2e and copollutant emission
reduction requirements identified in the plan.
(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.