104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1234 Introduced 1/24/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: New Act20 ILCS 3855/1-131 new30 ILCS 105/5.1030 new Creates the Illinois Regional Generation Reliability Task Force Act. Sets forth findings of the General Assembly. Creates the Illinois Regional Generation Reliability Task Force. Provides that the Task Force shall monitor the reliability of the Illinois power grid. Contains provisions concerning: the membership of the Task Force; duties of the Task Force; administrative support; and an annual report. Amends the Illinois Power Agency Act. Provides that the Carbon Capture Infrastructure Fund is created as a special fund in the State treasury and shall be administered by the Illinois Power Agency. Provides that $10,000,000 shall be transferred from the Illinois Power Agency Renewable Energy Resources Fund to the Carbon Capture Infrastructure Fund. Provides that the Agency shall award grants from the fund to carbon producing power plants for the construction of new carbon capture storage systems. Amends the State Finance Act to create the Carbon Capture Infrastructure Fund. Effective immediately. LRB104 04066 BDA 14090 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1234 Introduced 1/24/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: New Act20 ILCS 3855/1-131 new30 ILCS 105/5.1030 new New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new Creates the Illinois Regional Generation Reliability Task Force Act. Sets forth findings of the General Assembly. Creates the Illinois Regional Generation Reliability Task Force. Provides that the Task Force shall monitor the reliability of the Illinois power grid. Contains provisions concerning: the membership of the Task Force; duties of the Task Force; administrative support; and an annual report. Amends the Illinois Power Agency Act. Provides that the Carbon Capture Infrastructure Fund is created as a special fund in the State treasury and shall be administered by the Illinois Power Agency. Provides that $10,000,000 shall be transferred from the Illinois Power Agency Renewable Energy Resources Fund to the Carbon Capture Infrastructure Fund. Provides that the Agency shall award grants from the fund to carbon producing power plants for the construction of new carbon capture storage systems. Amends the State Finance Act to create the Carbon Capture Infrastructure Fund. Effective immediately. LRB104 04066 BDA 14090 b LRB104 04066 BDA 14090 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1234 Introduced 1/24/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: New Act20 ILCS 3855/1-131 new30 ILCS 105/5.1030 new New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new Creates the Illinois Regional Generation Reliability Task Force Act. Sets forth findings of the General Assembly. Creates the Illinois Regional Generation Reliability Task Force. Provides that the Task Force shall monitor the reliability of the Illinois power grid. Contains provisions concerning: the membership of the Task Force; duties of the Task Force; administrative support; and an annual report. Amends the Illinois Power Agency Act. Provides that the Carbon Capture Infrastructure Fund is created as a special fund in the State treasury and shall be administered by the Illinois Power Agency. Provides that $10,000,000 shall be transferred from the Illinois Power Agency Renewable Energy Resources Fund to the Carbon Capture Infrastructure Fund. Provides that the Agency shall award grants from the fund to carbon producing power plants for the construction of new carbon capture storage systems. Amends the State Finance Act to create the Carbon Capture Infrastructure Fund. Effective immediately. LRB104 04066 BDA 14090 b LRB104 04066 BDA 14090 b LRB104 04066 BDA 14090 b A BILL FOR SB1234LRB104 04066 BDA 14090 b SB1234 LRB104 04066 BDA 14090 b SB1234 LRB104 04066 BDA 14090 b 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 Illinois Regional Generation Reliability Task Force Act. 6 Section 5. Findings. The General Assembly hereby finds, 7 determines, and declares the following: 8 (1) The reliability of the electricity grid of the 9 State is critically important to the consumers, 10 businesses, and residents of this State and should not be 11 compromised. 12 (2) The State has taken definitive steps toward 13 redefining the generation mix in this State. 14 (3) The Midcontinent Independent System Operator, Inc. 15 ("MISO") is an independent, not-for-profit, member-based 16 organization responsible for operating the power grid 17 across 15 states and the Canadian province of Manitoba, 18 serving 42 million people. 19 (4) The PJM Interconnection LLC ("PJM"), is an 20 independent not-for-profit, member-based Regional 21 Transmission Organization ("RTO") that manages the 22 operations, supply, and movement of power across 13 states 23 and the District of Columbia, serving 65 million people. 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1234 Introduced 1/24/2025, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED: New Act20 ILCS 3855/1-131 new30 ILCS 105/5.1030 new New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new Creates the Illinois Regional Generation Reliability Task Force Act. Sets forth findings of the General Assembly. Creates the Illinois Regional Generation Reliability Task Force. Provides that the Task Force shall monitor the reliability of the Illinois power grid. Contains provisions concerning: the membership of the Task Force; duties of the Task Force; administrative support; and an annual report. Amends the Illinois Power Agency Act. Provides that the Carbon Capture Infrastructure Fund is created as a special fund in the State treasury and shall be administered by the Illinois Power Agency. Provides that $10,000,000 shall be transferred from the Illinois Power Agency Renewable Energy Resources Fund to the Carbon Capture Infrastructure Fund. Provides that the Agency shall award grants from the fund to carbon producing power plants for the construction of new carbon capture storage systems. Amends the State Finance Act to create the Carbon Capture Infrastructure Fund. Effective immediately. LRB104 04066 BDA 14090 b LRB104 04066 BDA 14090 b LRB104 04066 BDA 14090 b A BILL FOR New Act 20 ILCS 3855/1-131 new 30 ILCS 105/5.1030 new LRB104 04066 BDA 14090 b SB1234 LRB104 04066 BDA 14090 b SB1234- 2 -LRB104 04066 BDA 14090 b SB1234 - 2 - LRB104 04066 BDA 14090 b SB1234 - 2 - LRB104 04066 BDA 14090 b 1 (5) The State is served by both PJM and MISO, which 2 collectively ensure that sufficient electric power 3 generation supply and transmission are available to meet 4 electric demand every minute of every day for over 107 5 million people across 28 states and 2 countries. Wholesale 6 electric power generation is regulated by the Federal 7 Energy Regulatory Commission due to the interstate and 8 international nature of the transmission grid operated by 9 PJM and MISO. As such, policy changes at the State level 10 can affect the reliability, availability, and cost of 11 power for seniors, families, businesses, municipalities, 12 universities, and hospitals across the region. 13 (6) When natural disasters occur, such as ice storms, 14 blizzards, tornadoes, and hurricanes, states participating 15 in PJM and MISO have provided support to each other 16 through power generation restoration missions. The 17 inability to deliver power generation in critical times 18 can have a huge economic impact and can also result in 19 death across the PJM and MISO regional transmission 20 organizations. 21 (7) PJM and MISO have multiple markets in which power 22 suppliers participate. The capacity market, day-ahead 23 energy market, and frequency market are markets that power 24 generators participate in to ensure over 107 million 25 people across 28 states and 2 countries receive the right 26 amount of electricity every minute of every day. SB1234 - 2 - LRB104 04066 BDA 14090 b SB1234- 3 -LRB104 04066 BDA 14090 b SB1234 - 3 - LRB104 04066 BDA 14090 b SB1234 - 3 - LRB104 04066 BDA 14090 b 1 (A) Capacity markets are used in wholesale 2 electricity markets to pay resources for being 3 available to meet peak electricity demand. Capacity is 4 not actual electricity but rather the ability to 5 produce electricity when called upon. Capacity is 6 procured sometimes multiple years in advance of when 7 it is needed, based on projections of future energy 8 needs using historical demand requirements. 9 (B) The day-ahead energy market lets market 10 participants commit to buy or sell wholesale 11 electricity one day before the power is needed, to 12 help avoid price volatility. The real-time energy 13 market balances the differences between day-ahead 14 commitments and the actual real-time demand for and 15 production of electricity. 16 (C) The power grid operates, and shall be 17 maintained, at a constant frequency of 60 hertz. 18 Significant deviation from this level can result in 19 catastrophic damage to the power grid as well as 20 household appliances. Frequency is maintained when 21 electric generators automatically add or remove power 22 from the grid. For example, a large power plant 23 suddenly tripping offline reduces the total amount of 24 available kinetic energy, leading the rotating 25 generators on the system to start rotating less 26 rapidly and thereby decreasing the alternating current SB1234 - 3 - LRB104 04066 BDA 14090 b SB1234- 4 -LRB104 04066 BDA 14090 b SB1234 - 4 - LRB104 04066 BDA 14090 b SB1234 - 4 - LRB104 04066 BDA 14090 b 1 frequency across the grid system. Since a generator 2 turbine's rotational velocity is directly coupled to 3 the grid frequency, the generator's control systems 4 can sense this frequency decline as an indicator of 5 insufficient energy provision. The control system 6 within each power plant, which usually has been in the 7 form of a governor, can then automatically increase 8 the plant's power output. This process is autonomous 9 because the governor does not have to wait for a 10 central dispatcher to send a signal, thus bypassing 11 communications system delays. 12 (8) The shifting generation mix in PJM and MISO will 13 require optimum performance and an increased focus on the 14 need to retain reliability as certain existing generators 15 shut down operations and new, intermittent generators are 16 added. Additionally, increased power generation 17 consumption due to increased electric vehicles and 18 charging stations, along with increased electrification of 19 building heating needs, will undoubtedly place greater 20 demand on the power system. 21 (9) The State has a responsibility to ensure that the 22 performance of State and regional power grids are safe, 23 reliable, and maintain the necessary capacity to meet the 24 power demands of residents of this State. Additionally, 25 the State has an obligation to do its part to ensure the 26 regional power grid is safe and reliable for its SB1234 - 4 - LRB104 04066 BDA 14090 b SB1234- 5 -LRB104 04066 BDA 14090 b SB1234 - 5 - LRB104 04066 BDA 14090 b SB1234 - 5 - LRB104 04066 BDA 14090 b 1 partnering states. As part of the regional power grid, 2 this State should be concerned that shuttered facilities 3 in this State will be replaced by higher cost, higher 4 emissions resources from other states. 5 Section 10. Illinois Regional Generation Reliability Task 6 Force. 7 (a) The Illinois Regional Generation Reliability Task 8 Force is created. The Task Force shall monitor the reliability 9 of the power grid of this State. The Task Force should consider 10 the present and future needs of consumers of this State while 11 simultaneously addressing any issues related to the 12 performance and reliability of power generation and 13 transmission and being mindful of the ultimate cost to 14 consumers. 15 (b) The duties and responsibilities of the Task Force 16 include the following: 17 (1) identifying and assessing policies, rules, and 18 laws that have the potential to significantly affect the 19 reliability of the State and regional power grids; 20 (2) developing a set of standards and conditions that 21 will ensure optimal performance of the State and regional 22 power grids based on new and emerging technologies; 23 (3) identifying opportunities to improve the power 24 supply mix in this State through existing and new laws to 25 ensure continued power reliability at affordable rates for SB1234 - 5 - LRB104 04066 BDA 14090 b SB1234- 6 -LRB104 04066 BDA 14090 b SB1234 - 6 - LRB104 04066 BDA 14090 b SB1234 - 6 - LRB104 04066 BDA 14090 b 1 consumers of this State; 2 (4) compiling research and best practices from other 3 states and countries on how to deploy technology to 4 benefit the performance and reliability of the power grid; 5 (5) developing tools to assess the impact of proposed 6 policies and evaluate their costs and benefits on 7 families, employers, the public, this State, and other 8 states as part of the State and regional power grids; 9 (6) identifying data, reports, and relevant 10 information on the performance of the power grid to ensure 11 reliability and that pricing of power generation is in the 12 best interest of families, businesses, and communities in 13 this State; 14 (7) providing its findings and recommendations for 15 policy changes and any revisions to policies, rules, and 16 laws that will facilitate the stability and reliability of 17 the State and regional power grids on an annual basis to 18 the General Assembly; and 19 (8) developing and proposing legislative concepts to 20 ensure the future stability and reliability of the power 21 grid. 22 Section 15. Membership; meetings. 23 (a) The members of the Illinois Regional Generation 24 Reliability Task Force shall be composed of the following: 25 (1) three Senators appointed by the President of the SB1234 - 6 - LRB104 04066 BDA 14090 b SB1234- 7 -LRB104 04066 BDA 14090 b SB1234 - 7 - LRB104 04066 BDA 14090 b SB1234 - 7 - LRB104 04066 BDA 14090 b 1 Senate, one of whom shall be designated by the President 2 as the co-chair of the Task Force; 3 (2) three Representatives appointed by the Speaker of 4 the House of Representatives, one of whom shall be 5 designated by the Speaker as the co-chair of the Task 6 Force; 7 (3) three Senators appointed by the Minority Leader of 8 the Senate; 9 (4) three Representatives appointed by the Minority 10 Leader of the House of Representatives; 11 (5) one member appointed by the Governor whose sole 12 role is dedicated to energy policy for the State; 13 (6) one member of a State or local labor organization 14 appointed by the President of the Senate; 15 (7) one member of a State or local labor organization 16 appointed by the Speaker of the House of Representatives; 17 (8) one representative from PJM RTO, designated by 18 PJM; 19 (9) one representative from the PJM Independent Market 20 Monitor organization, designated by the PJM Independent 21 Market Monitor organization; 22 (10) one representative from MISO RTO, designated by 23 MISO; 24 (11) one representative from the MISO Independent 25 Market Monitor organization, designated by the MISO 26 Independent Market Monitor organization; SB1234 - 7 - LRB104 04066 BDA 14090 b SB1234- 8 -LRB104 04066 BDA 14090 b SB1234 - 8 - LRB104 04066 BDA 14090 b SB1234 - 8 - LRB104 04066 BDA 14090 b 1 (12) six representatives from 6 different power 2 generation companies that operate in the PJM or MISO 3 regional transmission organization, 2 appointed by the 4 President of the Senate, 2 appointed by the Speaker of the 5 House of Representatives, one appointed by the Minority 6 Leader in the Senate, and one appointed by the Minority 7 Leader in the House of Representatives; 8 (13) one representative from a statewide organization 9 representing retail merchants, appointed by the President 10 of the Senate; 11 (14) one representative from a statewide organization 12 representing manufacturers, appointed by the Speaker of 13 the House of Representatives; 14 (15) one representative from a statewide organization 15 representing retired people, appointed by the Speaker of 16 the House of Representatives; 17 (16) one representative from a minority-owned 18 geothermal group, appointed by the President of the 19 Senate; 20 (17) one representative from a statewide organization 21 representing business, appointed by the Speaker of the 22 House of Representatives; 23 (18) two representatives from environmental law 24 groups, one appointed by the President of the Senate and 25 one appointed by the Speaker of the House of 26 Representatives; SB1234 - 8 - LRB104 04066 BDA 14090 b SB1234- 9 -LRB104 04066 BDA 14090 b SB1234 - 9 - LRB104 04066 BDA 14090 b SB1234 - 9 - LRB104 04066 BDA 14090 b 1 (19) the Director of the Illinois Power Agency, or the 2 Director's designee; 3 (20) the Director of the Environmental Protection 4 Agency, or the Director's designee; and 5 (21) the Chair of the Illinois Commerce Commission, or 6 the Chair's designee. 7 (b) Appointments for the Task Force shall be made by May 1, 8 2026. The Task Force shall hold 7 meetings annually, either 9 remotely or in person, and the first meeting shall be held 10 within 30 days after appointments are made. 11 (c) Members of the Task Force shall serve without 12 compensation. 13 (d) The Illinois Commerce Commission shall provide 14 administrative support to the Task Force in conjunction with 15 the independent market monitors for the MISO and PJM regional 16 transmission organizations. 17 Section 20. Annual report. 18 (a) The Illinois Regional Generation Reliability Task 19 Force shall issue an annual report based upon its findings in 20 the course of performing its duties and responsibilities. The 21 report shall be written by the administrative staff of the 22 Task Force and with staff assistance from the independent 23 market monitors from the MISO and PJM regional transmission 24 organizations. 25 (b) The Illinois Regional Generation Reliability Task SB1234 - 9 - LRB104 04066 BDA 14090 b SB1234- 10 -LRB104 04066 BDA 14090 b SB1234 - 10 - LRB104 04066 BDA 14090 b SB1234 - 10 - LRB104 04066 BDA 14090 b 1 Force shall submit its first report on October 1, 2026, and 2 each October 1 thereafter to the General Assembly upon the 3 completion of its meeting schedule and shall continue to issue 4 reports each year. 5 Section 25. The Illinois Power Agency Act is amended by 6 adding Section 1-131 as follows: 7 (20 ILCS 3855/1-131 new) 8 Sec. 1-131. Carbon Capture Infrastructure Fund. 9 (a) The Carbon Capture Infrastructure Fund is created as a 10 special fund in the State treasury. 11 (b) The Carbon Capture Infrastructure Fund shall be 12 administered by the Agency to award grants for the 13 construction of new carbon capture storage systems. 14 (c) As soon as practicable after the effective date of 15 this amendatory Act of the 104th General Assembly, $10,000,000 16 shall be transferred from the Illinois Power Agency Renewable 17 Energy Resources Fund to the Carbon Capture Infrastructure 18 Fund. 19 (d) The Agency shall award grants from the Carbon Capture 20 Infrastructure Fund to carbon producing power plants in this 21 State for the construction of new carbon capture storage 22 systems. 23 (e) The Agency shall adopt rules to implement this 24 Section. SB1234 - 10 - LRB104 04066 BDA 14090 b SB1234- 11 -LRB104 04066 BDA 14090 b SB1234 - 11 - LRB104 04066 BDA 14090 b SB1234 - 11 - LRB104 04066 BDA 14090 b 1 Section 30. The State Finance Act is amended by adding 2 Section 5.1030 as follows: 3 (30 ILCS 105/5.1030 new) 4 Sec. 5.1030. The Carbon Capture Infrastructure Fund. SB1234 - 11 - LRB104 04066 BDA 14090 b