Illinois 2025-2026 Regular Session

Illinois House Bill HB3609 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	HB3609 EngrossedLRB104 12086 AAS 22184 b HB3609 Engrossed LRB104 12086 AAS 22184 b
2		-	HB3609 Engrossed LRB104 12086 AAS 22184 b
	1	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3609 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: 220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101220 ILCS 5/3-128 new220 ILCS 5/3-129 new220 ILCS 5/8-513 new Provides that the amendatory Act may be referred to as the Thermal Energy Network and Jobs Acts. Sets forth a statement of legislative findings and intent. Amends the Public Utilities Act. Defines "thermal energy" and "thermal energy network". Requires the Illinois Commerce Commission to initiate a proceeding within 6 months after the effective date of the amendatory Act to support the development of pilot thermal energy networks. Provides that within 10 months after the effective date of the amendatory Act, every gas public utility, electric public utility, or combination public utility serving over 100,000 customers shall file with the Commission a petition seeking Commission-approval of at least one and no more than 3 proposed pilot thermal energy network projects. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to report to the Commission, on a quarterly basis and until completion of the pilot thermal energy network project, the status of each pilot thermal energy network project. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to demonstrate that it has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing its employees. Requires the Commission to adopt specified rules within 4 years after the completion of the construction of all thermal energy network projects. Provides that a gas public utility, electric public utility, or combination public utility required to develop a pilot thermal energy network project shall be permitted to recover all reasonable and prudently incurred costs associated with the development, construction, and operation of one or more pilot thermal energy network projects through general rates or through rates set in a Multi-Year Rate Plan. Effective immediately. LRB104 12086 AAS 22184 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3609 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: 220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101220 ILCS 5/3-128 new220 ILCS 5/3-129 new220 ILCS 5/8-513 new 220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101 220 ILCS 5/3-128 new 220 ILCS 5/3-129 new 220 ILCS 5/8-513 new Provides that the amendatory Act may be referred to as the Thermal Energy Network and Jobs Acts. Sets forth a statement of legislative findings and intent. Amends the Public Utilities Act. Defines "thermal energy" and "thermal energy network". Requires the Illinois Commerce Commission to initiate a proceeding within 6 months after the effective date of the amendatory Act to support the development of pilot thermal energy networks. Provides that within 10 months after the effective date of the amendatory Act, every gas public utility, electric public utility, or combination public utility serving over 100,000 customers shall file with the Commission a petition seeking Commission-approval of at least one and no more than 3 proposed pilot thermal energy network projects. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to report to the Commission, on a quarterly basis and until completion of the pilot thermal energy network project, the status of each pilot thermal energy network project. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to demonstrate that it has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing its employees. Requires the Commission to adopt specified rules within 4 years after the completion of the construction of all thermal energy network projects. Provides that a gas public utility, electric public utility, or combination public utility required to develop a pilot thermal energy network project shall be permitted to recover all reasonable and prudently incurred costs associated with the development, construction, and operation of one or more pilot thermal energy network projects through general rates or through rates set in a Multi-Year Rate Plan. Effective immediately. LRB104 12086 AAS 22184 b LRB104 12086 AAS 22184 b A BILL FOR
	2	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3609 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
	3	+	220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101220 ILCS 5/3-128 new220 ILCS 5/3-129 new220 ILCS 5/8-513 new 220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101 220 ILCS 5/3-128 new 220 ILCS 5/3-129 new 220 ILCS 5/8-513 new
	4	+	220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101
	5	+	220 ILCS 5/3-128 new
	6	+	220 ILCS 5/3-129 new
	7	+	220 ILCS 5/8-513 new
	8	+	Provides that the amendatory Act may be referred to as the Thermal Energy Network and Jobs Acts. Sets forth a statement of legislative findings and intent. Amends the Public Utilities Act. Defines "thermal energy" and "thermal energy network". Requires the Illinois Commerce Commission to initiate a proceeding within 6 months after the effective date of the amendatory Act to support the development of pilot thermal energy networks. Provides that within 10 months after the effective date of the amendatory Act, every gas public utility, electric public utility, or combination public utility serving over 100,000 customers shall file with the Commission a petition seeking Commission-approval of at least one and no more than 3 proposed pilot thermal energy network projects. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to report to the Commission, on a quarterly basis and until completion of the pilot thermal energy network project, the status of each pilot thermal energy network project. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to demonstrate that it has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing its employees. Requires the Commission to adopt specified rules within 4 years after the completion of the construction of all thermal energy network projects. Provides that a gas public utility, electric public utility, or combination public utility required to develop a pilot thermal energy network project shall be permitted to recover all reasonable and prudently incurred costs associated with the development, construction, and operation of one or more pilot thermal energy network projects through general rates or through rates set in a Multi-Year Rate Plan. Effective immediately.
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3	14		1 AN ACT concerning regulation.
4	15		2 Be it enacted by the People of the State of Illinois,
5	16		3 represented in the General Assembly:
6	17		4 Section 1. Short title. This Act may be referred to as the
7	18		5 Thermal Energy Network and Jobs Act.
8	19		6 Section 5. Legislative findings and intent.
9	20		7 (a) The General Assembly finds and declares that:
10	21		8 (1) This State has a strong interest in ensuring that
11	22		9 emissions of greenhouse gases from buildings are reduced
12	23		10 because buildings are one of this State's largest sources
13	24		11 of greenhouse gases due to the combustion of fossil fuels
14	25		12 for heating, domestic hot water production, cooking, and
15	26		13 other end uses.
16	27		14 (2) The decarbonization of buildings must be pursued
17	28		15 in a manner that is affordable and accessible, preserves
18	29		16 and creates living-wage jobs, and retains the knowledge
19	30		17 and experience of the existing utility union workforce.
20	31		18 (3) Thermal energy networks have the potential to
21	32		19 decarbonize buildings at the community and utility scale
22	33		20 and help achieve the goals of Public Act 102-662 (also
23	34		21 known as the Climate and Equitable Jobs Act).
24	35		22 (4) Thermal energy networks consist of pipe loops
25	36		23 between multiple buildings and energy sources, which carry
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	40	+	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3609 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
	41	+	220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101220 ILCS 5/3-128 new220 ILCS 5/3-129 new220 ILCS 5/8-513 new 220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101 220 ILCS 5/3-128 new 220 ILCS 5/3-129 new 220 ILCS 5/8-513 new
	42	+	220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101
	43	+	220 ILCS 5/3-128 new
	44	+	220 ILCS 5/3-129 new
	45	+	220 ILCS 5/8-513 new
	46	+	Provides that the amendatory Act may be referred to as the Thermal Energy Network and Jobs Acts. Sets forth a statement of legislative findings and intent. Amends the Public Utilities Act. Defines "thermal energy" and "thermal energy network". Requires the Illinois Commerce Commission to initiate a proceeding within 6 months after the effective date of the amendatory Act to support the development of pilot thermal energy networks. Provides that within 10 months after the effective date of the amendatory Act, every gas public utility, electric public utility, or combination public utility serving over 100,000 customers shall file with the Commission a petition seeking Commission-approval of at least one and no more than 3 proposed pilot thermal energy network projects. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to report to the Commission, on a quarterly basis and until completion of the pilot thermal energy network project, the status of each pilot thermal energy network project. Requires every gas public utility, electric public utility, or combination public utility constructing or operating a Commission-approved pilot thermal energy network project to demonstrate that it has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing its employees. Requires the Commission to adopt specified rules within 4 years after the completion of the construction of all thermal energy network projects. Provides that a gas public utility, electric public utility, or combination public utility required to develop a pilot thermal energy network project shall be permitted to recover all reasonable and prudently incurred costs associated with the development, construction, and operation of one or more pilot thermal energy network projects through general rates or through rates set in a Multi-Year Rate Plan. Effective immediately.
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	49	+	A BILL FOR
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	55	+	220 ILCS 5/3-101 from Ch. 111 2/3, par. 3-101
	56	+	220 ILCS 5/3-128 new
	57	+	220 ILCS 5/3-129 new
	58	+	220 ILCS 5/8-513 new
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34	77		1 water and can be connected to by building owners to
35	78		2 support heating and cooling and hot water services.
36	79		3 Building owners can connect to the loops to support water
37	80		4 heating and cooling and hot water services.
38	81		5 (5) Many utilities in this State have been seeking to
39	82		6 develop thermal energy networks but have encountered legal
40	83		7 and regulatory barriers.
41	84		8 (6) This State has a strong interest in ensuring an
42	85		9 adequate supply of reliable electrical power and,
43	86		10 therefore, needs to promote the development of alternative
44	87		11 power sources and take steps to assure reliable
45	88		12 deliverability. Thermal energy networks are highly
46	89		13 efficient because they use and exchange thermal energy
47	90		14 from many underground sources and buildings, including
48	91		15 recycled thermal energy, which minimizes impacts on the
49	92		16 electricity grid.
50	93		17 (7) Access to thermal energy networks has the
51	94		18 potential to reduce the upfront and operating costs of
52	95		19 building electrification for customers.
53	96		20 (8) Thermal loop technology provides benefits to
54		-	21 participants and non-participants alike, including
55		-	22 ~~societal~~ benefits to the environment and the market
56		-	23 ~~benefits~~ associated with the reduction of both the volume
57		-	24 ~~and peak~~ demand of electricity and natural gas.
	97	+	21 participants and non-participants alike including societal
	98	+	22 benefits to the environment and the market benefits
	99	+	23 associated with the reduction of both the volume and peak
	100	+	24 demand of electricity and natural gas.
58	101		25 (9) A utility's access to capital, the utility's
59	102		26 experience with networked infrastructure in public
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70	113		1 rights-of-way, and the requirement that the utility serve
71	114		2 all customers positions the utility well to develop and
72	115		3 scale thermal energy networks that are accessible to all
73	116		4 customers and to coordinate the development of thermal
74	117		5 energy networks with any orderly rightsizing of the
75	118		6 utility gas system.
76	119		7 (10) This State also has an interest in the efficient
77	120		8 and reliable delivery of energy and the energy
78	121		9 infrastructure of the State, which interest is
79	122		10 acknowledged throughout the Public Utilities Act. Utility
80	123		11 corporations and other power suppliers share these
81	124		12 interests and, moreover, have a duty to protect
82	125		13 proprietary interests in the projects they fund. Such
83	126		14 investments of ratepayer resources can be protected by
84	127		15 establishing effective contractor qualification and
85	128		16 performance standards, including requirements for
86	129		17 prevailing wage rates, bona fide apprenticeship criteria,
87	130		18 and project labor agreements.
88	131		19 (11) The construction industry is highly skilled and
89	132		20 labor intensive, and the installation of modern thermal
90	133		21 energy networks involves particularly complex work.
91	134		22 Therefore, effective qualification standards for craft
92	135		23 labor personnel employed on these projects are critically
93	136		24 needed to promote successful project delivery.
94	137		25 (12) Finally, these findings are especially vital now
95	138		26 because the construction industry is experiencing
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106	149		1 widespread skill shortages across the country, which are
107	150		2 crippling existing capital projects and threatening
108	151		3 projects planned for the future. The construction of
109	152		4 thermal energy networks will utilize many of the same
110	153		5 skills that the current utility and building trades
111	154		6 workforces already possess.
112	155		7 (b) It is the intent of the General Assembly that passage
113	156		8 of this Act is for the following purposes:
114	157		9 (1) to remove the legal barriers to utility
115	158		10 development of thermal energy networks and require the
116	159		11 Illinois Commerce Commission, within 90 days after the
117	160		12 effective date of this amendatory Act of the 104th General
118	161		13 Assembly, to begin to authorize and direct utilities to
119	162		14 immediately commence piloting thermal energy networks in
120	163		15 each and every utility territory;
121	164		16 (2) to direct and authorize the Illinois Commerce
122	165		17 Commission to develop a regulatory structure for utility
123	166		18 thermal energy networks that scales affordable and
124	167		19 accessible building electrification, protects customers,
125	168		20 and balances the role of incumbent monopoly utilities with
126	169		21 other market and public actors;
127	170		22 (3) to promote the successful planning and delivery of
128	171		23 thermal energy networks and protect critical investments
129	172		24 in such projects by requiring the use of appropriate
130	173		25 quality craft labor policies that ensure the development
131	174		26 of and access to an adequate supply of well trained,
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142	185		1 highly skilled craft persons needed to support timely,
143	186		2 reliable, high-quality projects;
144	187		3 (4) to promote strong economic development and good
145	188		4 jobs for local residents in the expanding decarbonized
146	189		5 sector by requiring application of progressive State labor
147	190		6 and employment policies that ensure public utility
148	191		7 investments and related State subsidies create
149	192		8 unparalleled skill training and employment opportunities
150	193		9 for residents in project areas through the use of local
151	194		10 prevailing wage standards and successful, bona fide
152	195		11 apprenticeship programs or project labor agreements that
153	196		12 incorporate prevailing wage and training standards and
154	197		13 provide additional benefits for project owners and
155	198		14 workers; and
156	199		15 (5) to promote the use of preapprenticeship programs
157	200		16 that will fortify and expand existing apprenticeship
158	201		17 programs through systematic outreach efforts to recruit
159	202		18 and assist persons from underrepresented and low income
160	203		19 communities by providing such persons with remedial
161	204		20 education, social services, and unique opportunities for
162	205		21 direct access into high-quality apprenticeship programs
163	206		22 and gainful employment in the growing building
164	207		23 decarbonization workforce.
165	208		24 Section 10. The Public Utilities Act is amended by
166	209		25 changing Section 3-101 and by adding Sections 3-128, 3-129,
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177	220		1 and 8-513 as follows:
178	221		2 (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101)
179	222		3 Sec. 3-101. Definitions. Unless otherwise specified, the
180	223		4 terms set forth in Sections 3-102 through 3-129 3-126 are used
181	224		5 in this Act as therein defined.
182	225		6 (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11;
183	226		7 97-813, eff. 7-13-12.)
184	227		8 (220 ILCS 5/3-128 new)
185	228		9 Sec. 3-128. Thermal energy. "Thermal energy" means piped
186	229		10 noncombustible fluids used for transferring heat into and out
187	230		11 of buildings for the purpose of reducing any resultant onsite
188	231		12 greenhouse gas emissions of all types of heating and cooling
189	232		13 processes, including, but not limited to, comfort heating and
190	233		14 cooling, domestic hot water, and refrigeration.
191	234		15 (220 ILCS 5/3-129 new)
192	235		16 Sec. 3-129. Thermal energy network. "Thermal energy
193	236		17 network" means all real estate, fixtures, and personal
194	237		18 property operated, owned, used, or to be used for, in
195	238		19 connection with, or to facilitate a utility-scale distribution
196		-	20 infrastructure project that supplies non-combusting thermal
197		-	21 energy. "Thermal energy network" includes real estate,
198		-	22 fixtures, and personal property that is operated, owned, or
199		-	23 used by multiple parties.
	239	+	20 infrastructure project that supplies thermal energy.
	240	+	21 (220 ILCS 5/8-513 new)
	241	+	22 Sec. 8-513. Pilot thermal energy network development.
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210		-	1 (220 ILCS 5/8-513 new)
211		-	2 Sec. 8-513. Pilot thermal energy network development.
212		-	3 (a) The Illinois Commerce Commission shall initiate a
213		-	4 proceeding within 6 months after the effective date of this
214		-	5 amendatory Act of the 104th General Assembly to support the
215		-	6 development of pilot thermal energy networks. The Commission
216		-	7 shall consider matters in the proceeding, including, but not
217		-	8 limited to, the appropriate ownership, market, and rate
218		-	9 structures for pilot thermal energy networks and whether the
219		-	10 provision of thermal energy services by thermal network energy
220		-	11 providers is in the public interest.
221		-	12 (b) Within 10 months after the effective date of this
222		-	13 amendatory Act of the 104th General Assembly, every gas public
223		-	14 utility, electric public utility, or combination public
224		-	15 utility serving over 100,000 customers shall file with the
225		-	16 Commission a petition seeking Commission approval of at least
226		-	17 one and no more than 3 proposed pilot thermal energy network
227		-	18 projects. Designs for the projects should coordinate and
228		-	19 maximize the value of existing State energy efficiency and
229		-	20 weatherization programs and take advantage of federal funding
230		-	21 opportunities to the extent practicable. No later than 18
231		-	22 months after the effective date of this amendatory Act of the
232		-	23 104th General Assembly, the Commission shall enter an order
233		-	24 approving, approving with modification, or rejecting each
234		-	25 proposed pilot thermal energy network project and shall direct
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	252	+	1 (a) The Illinois Commerce Commission shall initiate a
	253	+	2 proceeding within 6 months after the effective date of this
	254	+	3 amendatory Act of the 104th General Assembly to support the
	255	+	4 development of pilot thermal energy networks. The Commission
	256	+	5 shall consider matters in the proceeding, including, but not
	257	+	6 limited to, the appropriate ownership, market, and rate
	258	+	7 structures for pilot thermal energy networks and whether the
	259	+	8 provision of thermal energy services by thermal network energy
	260	+	9 providers is in the public interest.
	261	+	10 (b) Within 10 months after the effective date of this
	262	+	11 amendatory Act of the 104th General Assembly, every gas public
	263	+	12 utility, electric public utility, or combination public
	264	+	13 utility serving over 100,000 customers shall file with the
	265	+	14 Commission a petition seeking Commission approval of at least
	266	+	15 one and no more than 3 proposed pilot thermal energy network
	267	+	16 projects. Designs for the projects should coordinate and
	268	+	17 maximize the value of existing State energy efficiency and
	269	+	18 weatherization programs and take advantage of federal funding
	270	+	19 opportunities to the extent practicable. No later than 18
	271	+	20 months after the effective date of this amendatory Act of the
	272	+	21 104th General Assembly, the Commission shall enter an order
	273	+	22 approving, approving with modification, or rejecting each
	274	+	23 proposed pilot thermal energy network project and shall direct
	275	+	24 the public utility to implement the pilot thermal energy
	276	+	25 network projects as approved or approved as modified. In
	277	+	26 considering whether to approve or approve as modified each
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245		-	1 ~~the public utility to implement the~~ pilot thermal energy
246		-	2 network ~~projects as approved or approved as modified. In~~
247		-	3 ~~considering~~ whether ~~to approve or approve as modified each~~
248		-	4 ~~pilot thermal energy~~ network project, the ~~Commission shall~~
249		-	5 ~~consider whether the pilot~~ thermal energy ~~network project is~~
250		-	6 ~~in the public interest~~, whether the pilot thermal energy
251		-	7 ~~network project will develop information useful for~~ the
252		-	8 ~~Commission in adopting rules governing~~ thermal energy
253		-	9 ~~networks, whether the pilot thermal energy network project~~
254		-	10 ~~furthers climate justice~~ and ~~emissions reduction,~~ whether the
255		-	11 ~~pilot thermal energy network~~ project ~~advances financial~~ and
256		-	12 ~~technical approaches~~ to ~~equitable and affordable building~~
257		-	13 ~~electrification~~, ~~and whether the pilot thermal energy network~~
258		-	14 ~~project creates benefits to customers~~ and ~~society at large,~~
259		-	15 ~~including, but not limited to,~~ ~~public health benefits in areas~~
260		-	16 ~~with disproportionate environmental or public health burdens,~~
261		-	17 ~~job retention and creation~~, ~~reliability, and increased~~
262		-	18 ~~affordability of renewable thermal energy options.~~ ~~After the~~
263		-	19 ~~filing of~~ a ~~petition, a utility may request the Commission to~~
264		-	20 ~~grant additional time for~~ pilot development ~~approval, which~~
265		-	21 ~~shall be approved for at least 6 months upon request or up to~~
266		-	22 ~~12 months upon a showing that additional time would benefit~~
267		-	23 ~~pilot development.~~
268		-	24 ~~(c) If a utility proposes 3 pilot thermal~~ energy ~~network~~
269		-	25 ~~projects, at least one project shall be proposed in~~
270		-	26 ~~economically disadvantaged communities as defined in Section~~
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	288	+	1 pilot thermal energy network project, the Commission shall
	289	+	2 consider whether the pilot thermal energy network project is
	290	+	3 in the public interest, whether the pilot thermal energy
	291	+	4 network project will develop information useful for the
	292	+	5 Commission in adopting rules governing thermal energy
	293	+	6 networks, whether the pilot thermal energy network project
	294	+	7 furthers climate justice and emissions reduction, whether the
	295	+	8 pilot thermal energy network project advances financial and
	296	+	9 technical approaches to equitable and affordable building
	297	+	10 electrification, and whether the pilot thermal energy network
	298	+	11 project creates benefits to customers and society at large,
	299	+	12 including, but not limited to, public health benefits in areas
	300	+	13 with disproportionate environmental or public health burdens,
	301	+	14 job retention and creation, reliability, and increased
	302	+	15 affordability of renewable thermal energy options. After the
	303	+	16 filing of a petition, a utility may request the Commission to
	304	+	17 grant additional time for pilot development approval, which
	305	+	18 shall be approved for at least 6 months upon request or up to
	306	+	19 12 months upon a showing that additional time would benefit
	307	+	20 pilot development.
	308	+	21 (c) If a utility proposes 3 pilot thermal energy network
	309	+	22 projects, at least one project shall be proposed in
	310	+	23 economically disadvantaged communities as defined in Section
	311	+	24 5-35 of the Energy Transition Act and at least one shall be
	312	+	25 focused on existing electric heat customers. Each public
	313	+	26 utility shall coordinate with other public utilities and
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281		-	1 ~~5-35 of the Energy Transition Act and at least one shall~~
282		-	2 ~~include an industrial heat application~~ that ~~may additionally~~
283		-	3 ~~include residential and commercial applications.~~ ~~Priority~~
284		-	4 ~~shall be given to pilot proposals that replace leak-prone~~
285		-	5 ~~natural gas distribution infrastructure with distribution~~
286		-	6 ~~infrastructure that supplies non-combusting~~ ~~thermal energy or~~
287		-	7 that ~~replaces thermal energy for buildings currently heated~~
288		-	8 ~~with electric resistance heat.~~ ~~Each public utility shall~~
289		-	9 ~~coordinate with other public utilities~~ and ~~consultants with~~
290		-	10 ~~expertise on successful pilot projects~~ to ~~ensure that the~~
291		-	11 ~~pilot projects are diverse and designed~~ to ~~inform the~~
292		-	12 ~~Commission's decisions in the proceeding on the various~~
293		-	13 ~~ownership~~, ~~market, and rate structures for thermal energy~~
294		-	14 ~~networks. The pilot project proposals shall be made publicly~~
295		-	15 ~~available on the Commission's website~~. ~~Utilities are~~
296		-	16 ~~encouraged to develop plans that enable and facilitate access~~
297		-	17 ~~to thermal loop technology benefits,~~ ~~including access by low~~
298		-	18 ~~and moderate income households. As part of any~~ pilot project
299		-	19 ~~proposed pursuant~~ to ~~this Section~~, a ~~public utility subject to~~
300		-	20 ~~this Section may propose to include customer rebates and~~
301		-	21 ~~incentives~~, ~~and associated tariffs and proposed regulatory~~
302		-	22 ~~treatment, in a manner similar to what is included in~~
303		-	23 ~~Commission-approved electric energy efficiency plans pursuant~~
304		-	24 to ~~Section 8-103B of this Act.~~
305		-	25 (~~c-5~~) Each ~~public utility shall hold at least one~~
306		-	26 ~~pre-filing public meeting~~ to ~~receive public comment concerning~~
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	324	+	1 consultants with expertise on successful pilot projects to
	325	+	2 ensure that the pilot projects are diverse and designed to
	326	+	3 inform the Commission's decisions in the proceeding on the
	327	+	4 various ownership, market, and rate structures for thermal
	328	+	5 energy networks. The pilot project proposals shall be made
	329	+	6 publicly available on the Commission's website. Utilities are
	330	+	7 encouraged to develop plans that enable and facilitate access
	331	+	8 to thermal loop technology benefits, including access by low
	332	+	9 and moderate income households. As part of any pilot project
	333	+	10 proposed pursuant to this Section, a public utility subject to
	334	+	11 this Section may propose to include customer rebates and
	335	+	12 incentives, and associated tariffs and proposed regulatory
	336	+	13 treatment, in a manner similar to what is included in
	337	+	14 Commission-approved electric energy efficiency plans pursuant
	338	+	15 to Section 8-103B of this Act.
	339	+	16 (d) Any gas public utility, electric public utility, or
	340	+	17 combination public utility constructing or operating a
	341	+	18 Commission-approved pilot thermal energy network project shall
	342	+	19 report to the Commission, on a quarterly basis and until
	343	+	20 completion of the pilot thermal energy network project, as
	344	+	21 determined by the Commission, the status of each pilot thermal
	345	+	22 energy network project. The Commission shall post and make
	346	+	23 publicly available the reports on its website. The report
	347	+	24 shall include, but not be limited to:
	348	+	25 (1) the stage of development of each pilot project;
	349	+	26 (2) the barriers to development;
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317		-	1 ~~the proposed thermal energy network in~~ the ~~municipality where~~
318		-	2 the ~~thermal energy network is to be located. Notice~~ of the
319		-	3 ~~public meeting shall be published in a newspaper~~ of ~~general~~
320		-	4 ~~circulation for 3 consecutive weeks, beginning no earlier than~~
321		-	5 ~~one month before~~ the ~~first public meeting.~~ ~~Notice of the~~
322		-	6 public ~~meeting, including a description of the thermal energy~~
323		-	7 ~~network, must be provided in writing~~ to the ~~clerk of the county~~
324		-	8 ~~where the project is to be located and to the Chief Clerk of~~
325		-	9 ~~the Commission.~~ A ~~representative of the Commission shall be~~
326		-	10 ~~invited to each pre-filing~~ ~~public meeting.~~
327		-	11 ~~(d) Any gas public utility,~~ ~~electric public utility,~~ or
328		-	12 ~~combination public utility constructing or operating~~ a
329		-	13 ~~Commission-approved pilot thermal energy network project~~ shall
330		-	14 ~~report~~ to the ~~Commission, on a quarterly basis and until~~
331		-	15 ~~completion~~ of the ~~pilot~~ thermal energy network ~~project,~~ as
332		-	16 ~~determined by the Commission,~~ ~~the status~~ of ~~each pilot thermal~~
333		-	17 ~~energy network project.~~ The ~~Commission shall post and make~~
334		-	18 ~~publicly available the reports on its website~~. ~~The report~~
335		-	19 ~~shall include,~~ ~~but not be limited to:~~
336		-	20 ~~(1) the stage of development of each~~ pilot ~~project;~~
337		-	21 ~~(2)~~ the ~~barriers to development;~~
338		-	22 ~~(3) the number of customers served;~~
339		-	23 ~~(4)~~ the ~~costs of the pilot project;~~
340		-	24 ~~(5) the number of jobs retained~~ or ~~created by the~~
341		-	25 pilot ~~project; and~~
342		-	26 ~~(6) other information~~ the ~~Commission deems to be in~~
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	360	+	1 (3) the number of customers served;
	361	+	2 (4) the costs of the pilot project;
	362	+	3 (5) the number of jobs retained or created by the
	363	+	4 pilot project; and
	364	+	5 (6) other information the Commission deems to be in
	365	+	6 the public interest or considers likely to prove useful or
	366	+	7 relevant to the rulemaking described in subsection (h).
	367	+	8 (e) Any gas public utility, electric public utility, or
	368	+	9 combination public utility constructing or operating a
	369	+	10 Commission-approved pilot thermal energy network project shall
	370	+	11 demonstrate that it has entered into a labor peace agreement
	371	+	12 with a bona fide labor organization that is actively engaged
	372	+	13 in representing its employees. The labor peace agreement shall
	373	+	14 apply to the employees necessary for the ongoing maintenance
	374	+	15 and operation of the thermal energy network. The labor peace
	375	+	16 agreement shall be an ongoing material condition of
	376	+	17 authorization to maintain and operate the thermal energy
	377	+	18 networks.
	378	+	19 (f) Any contractor or subcontractor that performs work on
	379	+	20 a pilot thermal energy network under this Section shall be a
	380	+	21 responsible bidder as described in Section 30-22 of the
	381	+	22 Illinois Procurement Code and shall certify that not less than
	382	+	23 prevailing wage, as determined under the Prevailing Wage Act,
	383	+	24 was or will be paid to employees who are engaged in
	384	+	25 construction activities associated with the pilot thermal
	385	+	26 energy network project. The contractor or subcontractor shall
343	386
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353		-	1 ~~the public interest or considers likely~~ to ~~prove useful or~~
354		-	2 ~~relevant to the rulemaking described in~~ subsection ~~(h)~~.
355		-	3 (~~d-5~~) ~~The Commission shall require projects submitted to~~
356		-	4 the ~~utility-scale renewable thermal energy network program for~~
357		-	5 ~~approval to include~~ a ~~proposed rate structure for thermal~~
358		-	6 ~~energy services supplied to network end users and consumer~~
359		-	7 ~~protection plans for end users~~. The Commission ~~may~~ approve ~~the~~
360		-	8 ~~proposed rate structure if~~ the ~~projected heating and cooling~~
361		-	9 ~~costs for end users is not greater than~~ the ~~heating and cooling~~
362		-	10 ~~costs~~ the ~~end users would have incurred if~~ the ~~end users had~~
363		-	11 ~~not participated in the program.~~
364		-	12 ~~(e) Any gas public utility~~, ~~electric public utility~~, or
365		-	13 ~~combination public utility constructing or operating a~~
366		-	14 ~~Commission-approved pilot~~ thermal energy ~~network project shall~~
367		-	15 ~~demonstrate that it has entered into a labor peace agreement~~
368		-	16 ~~with a bona fide labor organization that~~ is ~~actively engaged~~
369		-	17 ~~in representing its employees.~~ ~~The labor peace agreement shall~~
370		-	18 ~~apply to~~ the ~~employees necessary for the ongoing maintenance~~
371		-	19 and ~~operation~~ of ~~the thermal energy network. The labor peace~~
372		-	20 ~~agreement shall be an ongoing material condition~~ of
373		-	21 ~~authorization to maintain~~ and ~~operate the thermal energy~~
374		-	22 ~~networks.~~
375		-	23 ~~(f) Any contractor or subcontractor that performs work on~~
376		-	24 a ~~pilot thermal energy network under this Section shall be a~~
377		-	25 ~~responsible bidder as described in Section 30-22~~ ~~of the~~
378		-	26 ~~Illinois Procurement Code and~~ shall ~~certify that not less than~~
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	396	+	1 submit evidence to the Commission that it complied with the
	397	+	2 requirements of this subsection.
	398	+	3 (g) For any pending application for a thermal energy
	399	+	4 network, the contractor or subcontractor shall submit evidence
	400	+	5 that the contractor or subcontractor has entered into a fully
	401	+	6 executed project labor agreement with the applicable local
	402	+	7 building trades council. The Commission shall not approve any
	403	+	8 pending applications until the contractor or subcontractor has
	404	+	9 submitted the information required under this subsection.
	405	+	10 (h) Within 4 years after the completion of the
	406	+	11 construction of all thermal energy network projects under this
	407	+	12 Section, the Commission shall adopt rules to, at a minimum:
	408	+	13 (1) create fair market access rules for thermal energy
	409	+	14 networks to accept thermal energy and that do not increase
	410	+	15 greenhouse gas emissions or copollutants;
	411	+	16 (2) to the extent it is in the public interest to do
	412	+	17 so, exempt small-scale thermal energy networks from active
	413	+	18 regulation by the Commission;
	414	+	19 (3) promote the training and transition of utility
	415	+	20 workers impacted by this amendatory Act of the 104th
	416	+	21 General Assembly; and
	417	+	22 (4) encourage third-party participation and
	418	+	23 competition where it will maximize benefits to customers.
	419	+	24 (i) A gas public utility, electric public utility, or
	420	+	25 combination public utility required to develop any pilot
	421	+	26 thermal energy network project under this Section shall be
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389		-	1 prevailing wage, as determined under the Prevailing Wage Act,
390		-	2 was or will be paid to employees who are engaged in
391		-	3 construction activities associated with the pilot thermal
392		-	4 energy network project. The contractor or subcontractor shall
393		-	5 submit evidence to the Commission that it complied with the
394		-	6 requirements of this subsection.
395		-	7 (g) For any pending application for a thermal energy
396		-	8 network, the contractor or subcontractor shall submit evidence
397		-	9 that the contractor or subcontractor has entered into a fully
398		-	10 executed project labor agreement with the applicable local
399		-	11 building trades council. The Commission shall not approve any
400		-	12 pending applications until the contractor or subcontractor has
401		-	13 submitted the information required under this subsection.
402		-	14 (h) Within 4 years after the effective date of this
403		-	15 amendatory Act of the 104th General Assembly, the Commission
404		-	16 shall adopt rules to, at a minimum:
405		-	17 (1) create fair market access rules for thermal energy
406		-	18 networks to accept thermal energy and that do not increase
407		-	19 greenhouse gas emissions or copollutants;
408		-	20 (2) to the extent it is in the public interest to do
409		-	21 so, exempt small-scale thermal energy networks from active
410		-	22 regulation by the Commission;
411		-	23 (3) promote the training and transition of utility
412		-	24 workers impacted by this amendatory Act of the 104th
413		-	25 General Assembly; and
414		-	26 (4) encourage third-party participation and
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	432	+	1 permitted to recover all reasonable and prudently incurred
	433	+	2 costs associated with the development, construction, and
	434	+	3 operation of one or more pilot thermal energy network projects
	435	+	4 through general rates set pursuant to Section 9-201 or through
	436	+	5 rates set in a Multi-Year Rate Plan pursuant to Section
	437	+	6 16-108.18. The Commission shall have broad discretion in
	438	+	7 approving proposed pilot projects that are consistent with the
	439	+	8 public interest consistent with this Section and in approving
	440	+	9 all tariffs and issue other regulatory approvals as necessary
	441	+	10 to permit a pilot program that facilitates a full review of
	442	+	11 technologies, and associated policies, with respect to thermal
	443	+	12 network technology in this State.
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425		-	1 competition where it will maximize benefits to customers.
426		-	2 (i) A gas public utility, electric public utility, or
427		-	3 combination public utility required to develop any pilot
428		-	4 thermal energy network project under this Section shall be
429		-	5 permitted to recover all reasonable and prudently incurred
430		-	6 costs associated with the development, construction, and
431		-	7 operation of one or more pilot thermal energy network projects
432		-	8 through general rates set pursuant to Section 9-201 or through
433		-	9 rates set in a Multi-Year Rate Plan pursuant to Section
434		-	10 16-108.18. A gas public utility, electric public utility, or
435		-	11 combination public utility developing a thermal energy network
436		-	12 project that includes an industrial heat application may
437		-	13 recover rates proportionally from each class of customer. The
438		-	14 Commission shall have broad discretion in approving proposed
439		-	15 pilot projects that are consistent with the public interest
440		-	16 consistent with this Section and in approving all tariffs and
441		-	17 issue other regulatory approvals as necessary to permit a
442		-	18 pilot program that facilitates a full review of technologies,
443		-	19 and associated policies, with respect to thermal network
444		-	20 technology in this State.
445		-	21 Section 99. Effective date. This Act takes effect upon
446		-	22 becoming law.
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