Illinois 2025-2026 Regular Session

Illinois House Bill HB3131 Latest Draft

Bill / Introduced Version Filed 02/06/2025

                            104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3131 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: New Act220 ILCS 5/8-406.3 new Creates the Advancing Federally Regulated Illinois Transmission Projects Act. Provides that the Department of Department of Commerce and Economic Opportunity may identify one or more Projects for potential application of the PJM State Agreement Approach that the Director determines may improve the resilience, reliability, and access to clean energy of the ratepayers of a public utility with more than 3,000,000 customers in this State. Sets forth eligibility criteria for the projects. Sets forth provisions concerning applications. Amends the Public Utilities Act to make conforming changes. Effective immediately. LRB104 10747 HLH 20826 b   A BILL FOR 104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3131 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:  New Act220 ILCS 5/8-406.3 new New Act  220 ILCS 5/8-406.3 new  Creates the Advancing Federally Regulated Illinois Transmission Projects Act. Provides that the Department of Department of Commerce and Economic Opportunity may identify one or more Projects for potential application of the PJM State Agreement Approach that the Director determines may improve the resilience, reliability, and access to clean energy of the ratepayers of a public utility with more than 3,000,000 customers in this State. Sets forth eligibility criteria for the projects. Sets forth provisions concerning applications. Amends the Public Utilities Act to make conforming changes. Effective immediately.  LRB104 10747 HLH 20826 b     LRB104 10747 HLH 20826 b   A BILL FOR
104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3131 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
New Act220 ILCS 5/8-406.3 new New Act  220 ILCS 5/8-406.3 new
New Act
220 ILCS 5/8-406.3 new
Creates the Advancing Federally Regulated Illinois Transmission Projects Act. Provides that the Department of Department of Commerce and Economic Opportunity may identify one or more Projects for potential application of the PJM State Agreement Approach that the Director determines may improve the resilience, reliability, and access to clean energy of the ratepayers of a public utility with more than 3,000,000 customers in this State. Sets forth eligibility criteria for the projects. Sets forth provisions concerning applications. Amends the Public Utilities Act to make conforming changes. Effective immediately.
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    LRB104 10747 HLH 20826 b
A BILL FOR
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1  AN ACT concerning State government.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 1. Short title. This Act may be cited as the
5  Advancing Federally Regulated Illinois Transmission Projects
6  Act.
7  Section 5. Legislative findings. The General Assembly
8  finds that federally regulated interconnection procedures
9  delay and impair infrastructure necessary for the resilience,
10  reliability, and clean energy transition envisioned in Public
11  Act 102-662 (the "Climate and Equitable Jobs Act") and other
12  Acts. The General Assembly further finds that the State's
13  leading role in quantum computing, data centers, battery
14  manufacturing, and other new economic initiatives requires
15  resilient and reliable electric systems. The General Assembly
16  further finds that the Department is uniquely situated to
17  reduce those delays and impairments for specific electricity
18  transmission infrastructure located partially or wholly within
19  the Illinois footprint of PJM Interconnection, L.L.C. by
20  initiating and managing on behalf of the State the State
21  Agreement Approach for transmission expansion that addresses
22  Illinois public policy requirements. The General Assembly
23  finds that the health, welfare, and prosperity of residents of

 

104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB3131 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
New Act220 ILCS 5/8-406.3 new New Act  220 ILCS 5/8-406.3 new
New Act
220 ILCS 5/8-406.3 new
Creates the Advancing Federally Regulated Illinois Transmission Projects Act. Provides that the Department of Department of Commerce and Economic Opportunity may identify one or more Projects for potential application of the PJM State Agreement Approach that the Director determines may improve the resilience, reliability, and access to clean energy of the ratepayers of a public utility with more than 3,000,000 customers in this State. Sets forth eligibility criteria for the projects. Sets forth provisions concerning applications. Amends the Public Utilities Act to make conforming changes. Effective immediately.
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    LRB104 10747 HLH 20826 b
A BILL FOR

 

 

New Act
220 ILCS 5/8-406.3 new



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1  the State is furthered by the Department pursuing the State
2  Agreement Approach for projects that meet the resilience,
3  reliability, and clean energy goals of the Climate and
4  Equitable Jobs Act.
5  Section 10. Definitions. As used in this Act:
6  "Commission" means the Illinois Commerce Commission.
7  "Department" means the Department of Commerce and Economic
8  Opportunity.
9  "Director" means the Director of Commerce and Economic
10  Opportunity.
11  "FERC" means the Federal Energy Regulatory Commission.
12  "PJM Operating Agreement" means the Amended and Restated
13  Operating Agreement of PJM Interconnection, L.L.C., as may be
14  amended from time to time, or its successor.
15  "PJM" means PJM Interconnection, L.L.C., or its successor.
16  "Project" means a proposed or existing electric
17  transmission line wholly or in part within the Illinois
18  footprint of PJM.
19  "State Agreement Approach" or "SAA" means the State
20  Agreement Approach process for the development and allocation
21  of costs for transmission expansion projects that address
22  State public policy requirements as described in Section 1.5.9
23  of Schedule 6 of the PJM Operating Agreement, as may be amended
24  from time to time, or its successor.

 

 

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1  Section 15. Initiation. The Department is authorized to
2  identify one or more Projects for potential application of the
3  PJM State Agreement Approach that the Director determines may
4  improve the resilience, reliability, and access to clean
5  energy of the ratepayers of a public utility with more than
6  3,000,000 customers in this State. The Director may consider
7  any information that the Director determines is relevant,
8  including studies or reports regarding the expected impact of
9  Projects. Upon identification of such a Project by the
10  Director, the Department shall enter into an agreement on
11  behalf of the State with the owner of the Project reflecting
12  the intent of the State to have the Project participate in the
13  PJM State Agreement Approach, for cooperation between the
14  Project and the Department, and for exchange of information
15  including appropriate protocols for confidential, proprietary,
16  and critical infrastructure information. The agreement may
17  provide for reimbursement of reasonable costs incurred by the
18  Department under the agreement or under Section 20 of this
19  Act.
20  Prior to entering into an agreement with any other Project
21  under the terms of this Section, the Department shall enter
22  into a contract with a Project that meets the following
23  criteria:
24  (1) more than 75 miles of transmission line from the
25  Project will be built on easements or rights-of-way of
26  existing infrastructure, including railroad

 

 

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1  rights-of-way, municipal rights-of-way or highway
2  rights-of-way within the State;
3  (2) more than 80 miles of transmission line from the
4  Project will be built underground within the State;
5  (3) the portion of the Project within the State will
6  meet the definition of a high voltage direct current
7  transmission facility once built;
8  (4) the Project connects 2 or more regional
9  transmission organizations; and
10  (5) the Project will transmit electricity at on the
11  high voltage direct current transmission facility at a
12  design voltage of 500 kV or greater.
13  Section 20. Applications. Upon execution of the agreement
14  identified in Section 15 of this Act by the Department and the
15  owner of the Project, the Department shall inform PJM in a
16  manner consistent with PJM's Operating Agreement, of the
17  Department's intention to pursue the SAA for the Project on
18  behalf of the State. If and only if the Project does not
19  require the use of eminent domain within the State pursuant to
20  Section 8-509 of the Public Utilities Act or otherwise under
21  law, the Department shall explicitly state in such notice that
22  the Project is not subject to competitive bidding. The notice
23  to PJM shall include an affirmative statement that the costs
24  of the Project will be borne by Illinois ratepayers.
25  Following the initial notice and application to PJM, the

 

 

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1  Department shall make such filings and prepare and provide
2  such documents and other materials, or assist PJM with such
3  filings, documents, or information, or participate in such
4  hearings, meetings, or other communications as may be
5  necessary or helpful in facilitating PJM's use of the SAA to
6  allocate the costs of the Project using a FERC-accepted cost
7  allocation proposed by the Department to recover costs from
8  customers within the State, including a proposal for
9  allocating the costs of the Project under PJM's tariffs, as
10  may be modified from time to time, and entering into
11  agreements with PJM as appropriate to implement the SAA for
12  the Project. Such cost allocation proposed by the Department
13  to PJM for acceptance by FERC shall provide that all costs
14  related to the Project shall be recovered from customers
15  located in the State of Illinois and may not include customers
16  in any other state unless such other state voluntarily agrees
17  to be responsible for such cost allocation. The Department
18  shall coordinate with the Project as necessary.
19  Section 25. Department filings. The Department shall make
20  such filings and prepare and provide such documents and other
21  materials for FERC and PJM as may be reasonably necessary to
22  qualify generators utilizing the Project as a capacity
23  resource with PJM, as defined under PJM's tariffs, as may be
24  modified from time to time.

 

 

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1  Section 900. The Public Utilities Act is amended by adding
2  Section 8-406.3 as follows:
3  (220 ILCS 5/8-406.3 new)
4  Sec. 8-406.3. State Agreement Approach.
5  (a) The General Assembly finds that development and
6  operation of interregional electric transmission facilities
7  can substantially improve the resilience and reliability of
8  the bulk electric system and substantially advance the public
9  policy goals of this State, including implementation of Public
10  Act 102-0662 and subparagraphs (B) and (C) of paragraph (1) of
11  subsection (c) of Section 1-75 of the Illinois Power Agency
12  Act and Section 16-111.5 of the Public Utilities Act. The
13  General Assembly further finds that the health, welfare, and
14  prosperity of all Illinois residents is advanced by
15  transmission projects that improve resilience, reliability,
16  and access to clean energy and that the Commission has the
17  authority to issue a certificate of public convenience and
18  necessity under Section 8-406 of this Article to such
19  transmission projects. However, the General Assembly further
20  finds that in order to advance such transmission projects
21  through federal approvals not directly regulated by the
22  Commission or the State, the State can and should utilize
23  available tools to simplify and streamline federal processes
24  to obtain federal approval for electric transmission projects
25  issued a certificate of public convenience and necessity under

 

 

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1  Section 8-406 of this Act, such as the State Agreement
2  Approach offered by PJM Interconnection, L.L.C.
3  (b) As used in this Section:
4  "Department" means the Department of Commerce and Economic
5  Opportunity.
6  "PJM" means PJM Interconnection, L.L.C., or its successor.
7  "PJM Operating Agreement" means the Amended and Restated
8  Operating Agreement of PJM Interconnection, L.L.C. as may be
9  amended from time to time or its successor.
10  "Project" means a proposed or existing electric
11  transmission line wholly or in part within the Illinois
12  footprint of PJM that meets the criteria set forth in Section
13  15 of the Advancing Federally Regulated Illinois Transmission
14  Projects Act.
15  "State Agreement Approach" or "SAA" means the State
16  Agreement Approach process for the development and allocation
17  of costs for transmission expansion projects that address
18  State public policy requirements as described in Section 1.5.9
19  of Schedule 6 of the PJM Operating Agreement as may be amended
20  from time to time or its successor.
21  (c) For any applicant for a certificate of public
22  convenience and necessity under Section 8-406 of this Article
23  seeking permission to construct, own, or operate a Project:
24  (1) The applicant, with its initial submission to the
25  Commission under subsection (b) of Section 8-406 of this
26  Article, may include a statement from the Department that

 

 

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1  the Department has or plans to submit the Project to PJM
2  for inclusion under the SAA.
3  (2) If the applicant does not hold a certificate of
4  service authority as a public utility with the Commission,
5  the Commission shall accept the statement from the
6  Department as prima facie evidence that the Project is and
7  will be for public use.
8  (3) In evaluating the requirements of subsection (d)
9  of Section 8-406, the Commission shall evaluate whether
10  the Project is a reasonable method of developing,
11  constructing, and operating an electric transmission
12  facility with the same technology, attributes, location
13  and purpose as the Project while ensuring adequate safety,
14  reliability, and environmental benefit.
15  (4) In the final order granting the certificate of
16  public convenience and necessity for the Project, the
17  Commission shall explicitly:
18  (A) state that the Project is intended and
19  expected to participate in the PJM SAA; and
20  (B) require that, if the Project enters into a
21  contract to provide services to one or more customers,
22  revenue from those contracts shall be disclosed to the
23  Commission annually on a confidential basis and,
24  consistent with and to the maximum extent allowable by
25  law, that revenue shall offset costs otherwise
26  recoverable from Illinois ratepayers.

 

 

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1  (5) The Commission shall grant a certificate of
2  service authority for applicant as a public utility and a
3  certificate of public convenience and necessity as
4  described in Section 8-406 except that if the applicant
5  does not seek authority pursuant to Section 8-509 of this
6  Article:
7  (A) Subsections (h) and (i) of Section 8-406 do
8  not apply;
9  (B) The Commission shall issue a final order
10  approving the application for the certificate of
11  service authority and certificate of public
12  convenience and necessity not later than 240 days
13  following the initial application; and
14  (C) The Commission's final order shall explicitly
15  state that the Project is not intended for competitive
16  bidding under the SAA unless the applicant explicitly
17  requests competitive bidding in its initial
18  application.
19  (d) Project Labor Agreement. Notwithstanding any other
20  provision of law, the Commission shall make an explicit
21  condition of any certificate of public convenience and
22  necessity that any general contractor constructing any portion
23  of the Project within the State must enter into one or more
24  project labor agreements, as such term is defined in Section
25  1-10 of the Illinois Power Agency Act.
26  Section 999. Effective date. This Act takes effect upon

 

 

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