Bill Text: IL SB2393 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Creates the Pembroke Township Natural Gas Investment Pilot Program Act. Directs the Department of Commerce and Economic Opportunity to create a pilot program for the distribution of grants for the construction of new natural gas pipelines and infrastructure in Pembroke Township. Requires applicants for grants to demonstrate that the grants will result in the construction of a new natural gas pipeline to provide natural gas to the residents of the township. Provides that the Department shall report annually to the Governor and General Assembly beginning in 2022 regarding cost estimates for the Pilot Program, recommendations for improvement to the Pilot Program, and a recommendation as to whether the Pilot Program should be continued. Amends the State Finance Act to create the Pembroke Township Natural Gas Investment Pilot Program Fund as a special fund in the State treasury. Amends the Public Utilities Act. Provides that a gas public utility may apply for a certificate of public convenience and necessity to increase its gas service territory and extend its gas distribution system to serve a designated hardship area. Provides that the Illinois Commerce Commission shall, after notice and hearing, grant a certificate of public convenience and necessity if, based upon the application filed with the Commission and the evidentiary record, the Commission finds that specified criteria are satisfied. Makes other changes. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 6-3)

Status: (Introduced) 2021-05-21 - Rule 3-9(a) / Re-referred to Assignments [SB2393 Detail]

Download: Illinois-2021-SB2393-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2393

Introduced 2/26/2021, by Sen. Patrick J. Joyce

SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.935 new
220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
220 ILCS 5/8-406.2 new

Creates the Pembroke Township Natural Gas Investment Pilot Program Act. Directs the Department of Commerce and Economic Opportunity to create a pilot program for the distribution of grants for the construction of new natural gas pipelines and infrastructure in Pembroke Township. Requires applicants for grants to demonstrate that the grants will result in the construction of a new natural gas pipeline to provide natural gas to the residents of the township. Provides that the Department shall report annually to the Governor and General Assembly beginning in 2022 regarding cost estimates for the Pilot Program, recommendations for improvement to the Pilot Program, and a recommendation as to whether the Pilot Program should be continued. Amends the State Finance Act to create the Pembroke Township Natural Gas Investment Pilot Program Fund as a special fund in the State treasury. Amends the Public Utilities Act. Provides that a gas public utility may apply for a certificate of public convenience and necessity to increase its gas service territory and extend its gas distribution system to serve a designated hardship area. Provides that the Illinois Commerce Commission shall, after notice and hearing, grant a certificate of public convenience and necessity if, based upon the application filed with the Commission and the evidentiary record, the Commission finds that specified criteria are satisfied. Makes other changes. Effective immediately.
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A BILL FOR

SB2393LRB102 13147 SPS 18490 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Pembroke Township Natural Gas Investment Pilot Program Act.
6 Section 5. Definitions. In this Act:
7 "Department" means the Department of Commerce and Economic
8Opportunity.
9 "Qualifying gas pipeline project" means the construction
10or installation of gas equipment used in connection with the
11distribution and delivery of natural gas in Pembroke Township.
12 Section 10. Pembroke Township Natural Gas Investment Pilot
13Program.
14 (a) The Department shall create the Pembroke Township
15Natural Gas Investment Pilot Program for a duration of 5
16years. The Program shall provide that the Department shall
17distribute grants, subject to appropriation, from moneys in
18the Pembroke Township Natural Gas Investment Fund for the
19construction of new natural gas pipelines and infrastructure
20in Pembroke Township.
21 (b) The Department shall adopt rules for the
22administration of the Program. At a minimum, the rules shall

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1require that the applicant for the grants demonstrate that the
2grants will result in the construction of a new natural gas
3pipeline to provide natural gas to the residents of Pembroke
4Township and that the applicant complies with all other
5requirements of the rules.
6 (c) A grantee must maintain all records as required by
7rule. The records shall be subject to audit by the Department,
8by an auditor appointed by the Department, or by a State
9officer authorized to conduct audits.
10 (d) Eligible applicants under this Program may include a
11nonprofit or community action association that will help the
12residents of Pembroke with the convergence of natural gas
13services in the residents' homes. Notwithstanding any
14provision of law to the contrary, an entity regulated under
15the Public Utilities Act may serve as a grantee under this Act.
16 Section 15. Pembroke Township Natural Gas Investment Pilot
17Program Fund. The Pembroke Township Natural Gas Investment
18Pilot Program Fund is created as a special fund in the State
19treasury. Subject to appropriation, all moneys in the Fund
20shall be used by the Department to fund grants for qualified
21utility infrastructure projects. The Department may accept
22private and public funds, including federal funds, for deposit
23into the Fund. Earnings attributable to moneys in the Fund
24shall be deposited into the Fund.

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1 Section 20. Data collection and reporting. The Department
2shall collect data regarding the successes and challenges of
3the Pembroke Township Natural Gas Investment Pilot Program and
4shall submit an annual report to the Governor and the General
5Assembly by March 1 of each year beginning in 2022 until the
6Pilot Program terminates. The report shall: (i) make a
7recommendation as to whether the Pilot Program should
8continue; (ii) provide cost estimates, including the average
9per person costs; and (iii) recommend ways in which the Pilot
10Program can be improved to better address the needs for
11natural gas distribution.
12 Section 90. The State Finance Act is amended by adding
13Section 5.935 as follows:
14 (30 ILCS 105/5.935 new)
15 Sec. 5.935. The Pembroke Township Natural Gas Investment
16Pilot Program Fund.
17 Section 95. The Public Utilities Act is amended by
18changing Sections 8-406 and by adding Section 8-406.2 as
19follows:
20 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
21 Sec. 8-406. Certificate of public convenience and
22necessity.

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1 (a) No public utility not owning any city or village
2franchise nor engaged in performing any public service or in
3furnishing any product or commodity within this State as of
4July 1, 1921 and not possessing a certificate of public
5convenience and necessity from the Illinois Commerce
6Commission, the State Public Utilities Commission or the
7Public Utilities Commission, at the time this amendatory Act
8of 1985 goes into effect, shall transact any business in this
9State until it shall have obtained a certificate from the
10Commission that public convenience and necessity require the
11transaction of such business. A certificate of public
12convenience and necessity requiring the transaction of public
13utility business in any area of this State shall include
14authorization to the public utility receiving the certificate
15of public convenience and necessity to construct such plant,
16equipment, property, or facility as is provided for under the
17terms and conditions of its tariff and as is necessary to
18provide utility service and carry out the transaction of
19public utility business by the public utility in the
20designated area.
21 (b) No public utility shall begin the construction of any
22new plant, equipment, property or facility which is not in
23substitution of any existing plant, equipment, property or
24facility or any extension or alteration thereof or in addition
25thereto, unless and until it shall have obtained from the
26Commission a certificate that public convenience and necessity

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1require such construction. Whenever after a hearing the
2Commission determines that any new construction or the
3transaction of any business by a public utility will promote
4the public convenience and is necessary thereto, it shall have
5the power to issue certificates of public convenience and
6necessity. The Commission shall determine that proposed
7construction will promote the public convenience and necessity
8only if the utility demonstrates: (1) that the proposed
9construction is necessary to provide adequate, reliable, and
10efficient service to its customers and is the least-cost means
11of satisfying the service needs of its customers or that the
12proposed construction will promote the development of an
13effectively competitive electricity market that operates
14efficiently, is equitable to all customers, and is the least
15cost means of satisfying those objectives; (2) that the
16utility is capable of efficiently managing and supervising the
17construction process and has taken sufficient action to ensure
18adequate and efficient construction and supervision thereof;
19and (3) that the utility is capable of financing the proposed
20construction without significant adverse financial
21consequences for the utility or its customers.
22 (c) After the effective date of this amendatory Act of
231987, no construction shall commence on any new nuclear power
24plant to be located within this State, and no certificate of
25public convenience and necessity or other authorization shall
26be issued therefor by the Commission, until the Director of

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1the Illinois Environmental Protection Agency finds that the
2United States Government, through its authorized agency, has
3identified and approved a demonstrable technology or means for
4the disposal of high level nuclear waste, or until such
5construction has been specifically approved by a statute
6enacted by the General Assembly.
7 As used in this Section, "high level nuclear waste" means
8those aqueous wastes resulting from the operation of the first
9cycle of the solvent extraction system or equivalent and the
10concentrated wastes of the subsequent extraction cycles or
11equivalent in a facility for reprocessing irradiated reactor
12fuel and shall include spent fuel assemblies prior to fuel
13reprocessing.
14 (d) In making its determination under subsection (b) of
15this Section, the Commission shall attach primary weight to
16the cost or cost savings to the customers of the utility. The
17Commission may consider any or all factors which will or may
18affect such cost or cost savings, including the public
19utility's engineering judgment regarding the materials used
20for construction.
21 (e) The Commission may issue a temporary certificate which
22shall remain in force not to exceed one year in cases of
23emergency, to assure maintenance of adequate service or to
24serve particular customers, without notice or hearing, pending
25the determination of an application for a certificate, and may
26by regulation exempt from the requirements of this Section

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1temporary acts or operations for which the issuance of a
2certificate will not be required in the public interest.
3 A public utility shall not be required to obtain but may
4apply for and obtain a certificate of public convenience and
5necessity pursuant to this Section with respect to any matter
6as to which it has received the authorization or order of the
7Commission under the Electric Supplier Act, and any such
8authorization or order granted a public utility by the
9Commission under that Act shall as between public utilities be
10deemed to be, and shall have except as provided in that Act the
11same force and effect as, a certificate of public convenience
12and necessity issued pursuant to this Section.
13 No electric cooperative shall be made or shall become a
14party to or shall be entitled to be heard or to otherwise
15appear or participate in any proceeding initiated under this
16Section for authorization of power plant construction and as
17to matters as to which a remedy is available under The Electric
18Supplier Act.
19 (f) Such certificates may be altered or modified by the
20Commission, upon its own motion or upon application by the
21person or corporation affected. Unless exercised within a
22period of 2 years from the grant thereof authority conferred
23by a certificate of convenience and necessity issued by the
24Commission shall be null and void.
25 No certificate of public convenience and necessity shall
26be construed as granting a monopoly or an exclusive privilege,

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1immunity or franchise.
2 (g) A public utility that undertakes any of the actions
3described in items (1) through (3) of this subsection (g) or
4that has obtained approval pursuant to Section 8-406.1 of this
5Act shall not be required to comply with the requirements of
6this Section to the extent such requirements otherwise would
7apply. For purposes of this Section and Section 8-406.1 of
8this Act, "high voltage electric service line" means an
9electric line having a design voltage of 100,000 or more. For
10purposes of this subsection (g), a public utility may do any of
11the following:
12 (1) replace or upgrade any existing high voltage
13 electric service line and related facilities,
14 notwithstanding its length;
15 (2) relocate any existing high voltage electric
16 service line and related facilities, notwithstanding its
17 length, to accommodate construction or expansion of a
18 roadway or other transportation infrastructure; or
19 (3) construct a high voltage electric service line and
20 related facilities that is constructed solely to serve a
21 single customer's premises or to provide a generator
22 interconnection to the public utility's transmission
23 system and that will pass under or over the premises owned
24 by the customer or generator to be served or under or over
25 premises for which the customer or generator has secured
26 the necessary right of way.

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1 (h) A public utility seeking to construct a high-voltage
2electric service line and related facilities (Project) must
3show that the utility has held a minimum of 2 pre-filing public
4meetings to receive public comment concerning the Project in
5each county where the Project is to be located, no earlier than
66 months prior to filing an application for a certificate of
7public convenience and necessity from the Commission. Notice
8of the public meeting shall be published in a newspaper of
9general circulation within the affected county once a week for
103 consecutive weeks, beginning no earlier than one month prior
11to the first public meeting. If the Project traverses 2
12contiguous counties and where in one county the transmission
13line mileage and number of landowners over whose property the
14proposed route traverses is one-fifth or less of the
15transmission line mileage and number of such landowners of the
16other county, then the utility may combine the 2 pre-filing
17meetings in the county with the greater transmission line
18mileage and affected landowners. All other requirements
19regarding pre-filing meetings shall apply in both counties.
20Notice of the public meeting, including a description of the
21Project, must be provided in writing to the clerk of each
22county where the Project is to be located. A representative of
23the Commission shall be invited to each pre-filing public
24meeting.
25 (i) For applications filed after the effective date of
26this amendatory Act of the 99th General Assembly, the

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1Commission shall by registered mail notify each owner of
2record of land, as identified in the records of the relevant
3county tax assessor, included in the right-of-way over which
4the utility seeks in its application to construct a
5high-voltage electric line of the time and place scheduled for
6the initial hearing on the public utility's application. The
7utility shall reimburse the Commission for the cost of the
8postage and supplies incurred for mailing the notice.
9(Source: P.A. 99-399, eff. 8-18-15.)
10 (220 ILCS 5/8-406.2 new)
11 Sec. 8-406.2. Certificate of public convenience and
12necessity; extension of utility service area and facilities to
13serve designated hardship areas.
14 (a) This Section is intended to provide a mechanism by
15which a gas public utility may extend its service territory
16and gas distribution system to provide service to designated
17low-income areas whose residents do not have access to natural
18gas service and must purchase more costly alternatives to
19satisfy their energy needs.
20 (b) In this Section:
21 "Designated hardship area" means a defined geographic area
22described by the applicant gas utility that meets the
23following requirements:
24 (1) the area is designated as a qualified census tract
25 by the U.S. Department of Housing and Urban Development as

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1 published in the most current Federal Register; if the
2 U.S. Department of Housing and Urban Development ceases to
3 make this designation, then at least 25% of the households
4 in the area are at or below the poverty level; and
5 (2) the area is not currently served by a gas utility.
6 "Hardship area facilities" means all gas distribution
7system facilities that are proposed to be constructed or
8extended and used to serve the designated hardship area,
9through and including retail gas meters. "Hardship area
10facilities" includes the capacity to address reasonably
11foreseeable growth in areas adjacent to or in the vicinity of
12the designated hardship area.
13 (c) A gas public utility may apply for a certificate of
14public convenience and necessity pursuant to this Section to
15increase its gas service territory and extend its gas
16distribution system to serve a designated hardship area. An
17application under this Section shall include all of the
18following:
19 (1) a description of the designated hardship area and
20 its relationship to the existing gas distribution system
21 of the applicant;
22 (2) a showing that the designated hardship area meets
23 the criteria for being a designated hardship area under
24 subsection (b) of this Section;
25 (3) a description of the hardship area facilities
26 proposed to serve the designated hardship area;

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1 (4) a projection of the costs to construct and deploy
2 the hardship area facilities;
3 (5) a statement indicating that the gas distribution
4 utility has received written indications of interest from
5 at least 50% of the customers within the boundaries of the
6 designated hardship area demonstrating an interest shown
7 in obtaining gas service; and
8 (6) a showing that the estimated cost to construct and
9 deploy the hardship area facilities is equal to or less
10 than 250% of the amount allowed under the gas utilities'
11 then current tariffs to provide standard service to extend
12 main and services.
13 (d) The Commission shall, after notice and hearing, grant
14a certificate of public convenience and necessity under this
15Section if, based upon the application filed with the
16Commission and the evidentiary record, the Commission finds
17that all of the following criteria are satisfied:
18 (1) the area to be served is a designated hardship
19 area;
20 (2) the proposed hardship area facilities will provide
21 adequate, reliable, and efficient gas delivery service to
22 the customers within the designated hardship area and are
23 the least-cost means of providing such gas delivery
24 service to these customers;
25 (3) the public utility is capable of efficiently
26 managing and supervising the construction of the hardship

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1 area facilities and has taken sufficient action to ensure
2 adequate and efficient construction and supervision of the
3 construction;
4 (4) the public utility is capable of financing the
5 construction of the hardship area facilities without
6 significant adverse financial consequences for the utility
7 or its customers; and
8 (5) the estimated cost to construct and deploy the
9 hardship area facilities is equal to or less than 250% of
10 the amount allowed under the gas utilities then current
11 tariffs to provide standard service to extend main and
12 services.
13 (e) The Commission shall issue its decision with findings
14of fact and conclusions of law granting or denying the
15application no later than 120 days after the application is
16filed.
17 Section 99. Effective date. This Act takes effect upon
18becoming law.
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