104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1874 Introduced 2/5/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Public Utilities Act. In provisions regarding a certificate of public convenience and necessity, makes changes to the limitations on the construction of a nuclear power reactor. Provides that, beginning January 1, 2026, construction may commence on an advanced nuclear reactor (rather than a new nuclear power reactor with a nameplate capacity of 300 megawatts of electricity or less) within the State under specified conditions. Defines "advanced nuclear reactor". Makes other changes. LRB104 07081 AAS 17118 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1874 Introduced 2/5/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Public Utilities Act. In provisions regarding a certificate of public convenience and necessity, makes changes to the limitations on the construction of a nuclear power reactor. Provides that, beginning January 1, 2026, construction may commence on an advanced nuclear reactor (rather than a new nuclear power reactor with a nameplate capacity of 300 megawatts of electricity or less) within the State under specified conditions. Defines "advanced nuclear reactor". Makes other changes. LRB104 07081 AAS 17118 b LRB104 07081 AAS 17118 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1874 Introduced 2/5/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Public Utilities Act. In provisions regarding a certificate of public convenience and necessity, makes changes to the limitations on the construction of a nuclear power reactor. Provides that, beginning January 1, 2026, construction may commence on an advanced nuclear reactor (rather than a new nuclear power reactor with a nameplate capacity of 300 megawatts of electricity or less) within the State under specified conditions. Defines "advanced nuclear reactor". Makes other changes. LRB104 07081 AAS 17118 b LRB104 07081 AAS 17118 b LRB104 07081 AAS 17118 b A BILL FOR SB1874LRB104 07081 AAS 17118 b SB1874 LRB104 07081 AAS 17118 b SB1874 LRB104 07081 AAS 17118 b 1 AN ACT concerning regulation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Utilities Act is amended by changing 5 Section 8-406 as follows: 6 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406) 7 Sec. 8-406. Certificate of public convenience and 8 necessity. 9 (a) No public utility not owning any city or village 10 franchise nor engaged in performing any public service or in 11 furnishing any product or commodity within this State as of 12 July 1, 1921 and not possessing a certificate of public 13 convenience and necessity from the Illinois Commerce 14 Commission, the State Public Utilities Commission, or the 15 Public Utilities Commission, at the time Public Act 84-617 16 goes into effect (January 1, 1986), shall transact any 17 business in this State until it shall have obtained a 18 certificate from the Commission that public convenience and 19 necessity require the transaction of such business. A 20 certificate of public convenience and necessity requiring the 21 transaction of public utility business in any area of this 22 State shall include authorization to the public utility 23 receiving the certificate of public convenience and necessity 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1874 Introduced 2/5/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Public Utilities Act. In provisions regarding a certificate of public convenience and necessity, makes changes to the limitations on the construction of a nuclear power reactor. Provides that, beginning January 1, 2026, construction may commence on an advanced nuclear reactor (rather than a new nuclear power reactor with a nameplate capacity of 300 megawatts of electricity or less) within the State under specified conditions. Defines "advanced nuclear reactor". Makes other changes. LRB104 07081 AAS 17118 b LRB104 07081 AAS 17118 b LRB104 07081 AAS 17118 b A BILL FOR 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 LRB104 07081 AAS 17118 b SB1874 LRB104 07081 AAS 17118 b SB1874- 2 -LRB104 07081 AAS 17118 b SB1874 - 2 - LRB104 07081 AAS 17118 b SB1874 - 2 - LRB104 07081 AAS 17118 b 1 to construct such plant, equipment, property, or facility as 2 is provided for under the terms and conditions of its tariff 3 and as is necessary to provide utility service and carry out 4 the transaction of public utility business by the public 5 utility in the designated area. 6 (b) No public utility shall begin the construction of any 7 new plant, equipment, property, or facility which is not in 8 substitution of any existing plant, equipment, property, or 9 facility, or any extension or alteration thereof or in 10 addition thereto, unless and until it shall have obtained from 11 the Commission a certificate that public convenience and 12 necessity require such construction. Whenever after a hearing 13 the Commission determines that any new construction or the 14 transaction of any business by a public utility will promote 15 the public convenience and is necessary thereto, it shall have 16 the power to issue certificates of public convenience and 17 necessity. The Commission shall determine that proposed 18 construction will promote the public convenience and necessity 19 only if the utility demonstrates: (1) that the proposed 20 construction is necessary to provide adequate, reliable, and 21 efficient service to its customers and is the least-cost means 22 of satisfying the service needs of its customers or that the 23 proposed construction will promote the development of an 24 effectively competitive electricity market that operates 25 efficiently, is equitable to all customers, and is the least 26 cost means of satisfying those objectives; (2) that the SB1874 - 2 - LRB104 07081 AAS 17118 b SB1874- 3 -LRB104 07081 AAS 17118 b SB1874 - 3 - LRB104 07081 AAS 17118 b SB1874 - 3 - LRB104 07081 AAS 17118 b 1 utility is capable of efficiently managing and supervising the 2 construction process and has taken sufficient action to ensure 3 adequate and efficient construction and supervision thereof; 4 and (3) that the utility is capable of financing the proposed 5 construction without significant adverse financial 6 consequences for the utility or its customers. 7 (b-5) As used in this subsection (b-5): 8 "Qualifying direct current applicant" means an entity that 9 seeks to provide direct current bulk transmission service for 10 the purpose of transporting electric energy in interstate 11 commerce. 12 "Qualifying direct current project" means a high voltage 13 direct current electric service line that crosses at least one 14 Illinois border, the Illinois portion of which is physically 15 located within the region of the Midcontinent Independent 16 System Operator, Inc., or its successor organization, and runs 17 through the counties of Pike, Scott, Greene, Macoupin, 18 Montgomery, Christian, Shelby, Cumberland, and Clark, is 19 capable of transmitting electricity at voltages of 345 20 kilovolts or above, and may also include associated 21 interconnected alternating current interconnection facilities 22 in this State that are part of the proposed project and 23 reasonably necessary to connect the project with other 24 portions of the grid. 25 Notwithstanding any other provision of this Act, a 26 qualifying direct current applicant that does not own, SB1874 - 3 - LRB104 07081 AAS 17118 b SB1874- 4 -LRB104 07081 AAS 17118 b SB1874 - 4 - LRB104 07081 AAS 17118 b SB1874 - 4 - LRB104 07081 AAS 17118 b 1 control, operate, or manage, within this State, any plant, 2 equipment, or property used or to be used for the transmission 3 of electricity at the time of its application or of the 4 Commission's order may file an application on or before 5 December 31, 2023 with the Commission pursuant to this Section 6 or Section 8-406.1 for, and the Commission may grant, a 7 certificate of public convenience and necessity to construct, 8 operate, and maintain a qualifying direct current project. The 9 qualifying direct current applicant may also include in the 10 application requests for authority under Section 8-503. The 11 Commission shall grant the application for a certificate of 12 public convenience and necessity and requests for authority 13 under Section 8-503 if it finds that the qualifying direct 14 current applicant and the proposed qualifying direct current 15 project satisfy the requirements of this subsection and 16 otherwise satisfy the criteria of this Section or Section 17 8-406.1 and the criteria of Section 8-503, as applicable to 18 the application and to the extent such criteria are not 19 superseded by the provisions of this subsection. The 20 Commission's order on the application for the certificate of 21 public convenience and necessity shall also include the 22 Commission's findings and determinations on the request or 23 requests for authority pursuant to Section 8-503. Prior to 24 filing its application under either this Section or Section 25 8-406.1, the qualifying direct current applicant shall conduct 26 3 public meetings in accordance with subsection (h) of this SB1874 - 4 - LRB104 07081 AAS 17118 b SB1874- 5 -LRB104 07081 AAS 17118 b SB1874 - 5 - LRB104 07081 AAS 17118 b SB1874 - 5 - LRB104 07081 AAS 17118 b 1 Section. If the qualifying direct current applicant 2 demonstrates in its application that the proposed qualifying 3 direct current project is designed to deliver electricity to a 4 point or points on the electric transmission grid in either or 5 both the PJM Interconnection, LLC or the Midcontinent 6 Independent System Operator, Inc., or their respective 7 successor organizations, the proposed qualifying direct 8 current project shall be deemed to be, and the Commission 9 shall find it to be, for public use. If the qualifying direct 10 current applicant further demonstrates in its application that 11 the proposed transmission project has a capacity of 1,000 12 megawatts or larger and a voltage level of 345 kilovolts or 13 greater, the proposed transmission project shall be deemed to 14 satisfy, and the Commission shall find that it satisfies, the 15 criteria stated in item (1) of subsection (b) of this Section 16 or in paragraph (1) of subsection (f) of Section 8-406.1, as 17 applicable to the application, without the taking of 18 additional evidence on these criteria. Prior to the transfer 19 of functional control of any transmission assets to a regional 20 transmission organization, a qualifying direct current 21 applicant shall request Commission approval to join a regional 22 transmission organization in an application filed pursuant to 23 this subsection (b-5) or separately pursuant to Section 7-102 24 of this Act. The Commission may grant permission to a 25 qualifying direct current applicant to join a regional 26 transmission organization if it finds that the membership, and SB1874 - 5 - LRB104 07081 AAS 17118 b SB1874- 6 -LRB104 07081 AAS 17118 b SB1874 - 6 - LRB104 07081 AAS 17118 b SB1874 - 6 - LRB104 07081 AAS 17118 b 1 associated transfer of functional control of transmission 2 assets, benefits Illinois customers in light of the attendant 3 costs and is otherwise in the public interest. Nothing in this 4 subsection (b-5) requires a qualifying direct current 5 applicant to join a regional transmission organization. 6 Nothing in this subsection (b-5) requires the owner or 7 operator of a high voltage direct current transmission line 8 that is not a qualifying direct current project to obtain a 9 certificate of public convenience and necessity to the extent 10 it is not otherwise required by this Section 8-406 or any other 11 provision of this Act. 12 (c) As used in this subsection (c): 13 "Advanced nuclear reactor" means a nuclear fission reactor 14 with significant improvements, including additional inherent 15 safety features, compared to reactors operating prior to 16 December 27, 2020 in the United States. 17 "Decommissioning" has the meaning given to that term in 18 subsection (a) of Section 8-508.1. 19 "Nuclear power reactor" has the meaning given to that term 20 in Section 8 of the Nuclear Safety Law of 2004. 21 No After the effective date of this amendatory Act of the 22 103rd General Assembly, no construction shall commence on any 23 new nuclear power reactor with a nameplate capacity of more 24 than 300 megawatts of electricity to be located within this 25 State, and no certificate of public convenience and necessity 26 or other authorization shall be issued therefor by the SB1874 - 6 - LRB104 07081 AAS 17118 b SB1874- 7 -LRB104 07081 AAS 17118 b SB1874 - 7 - LRB104 07081 AAS 17118 b SB1874 - 7 - LRB104 07081 AAS 17118 b 1 Commission, unless (i) the new nuclear power reactor is an 2 advanced nuclear reactor, (ii) until the Illinois Emergency 3 Management Agency and Office of Homeland Security, in 4 consultation with the Illinois Environmental Protection Agency 5 and the Illinois Department of Natural Resources, finds that 6 the United States Government, through its authorized agency, 7 has identified and approved a demonstrable technology or means 8 for the disposal of high level nuclear waste, or (iii) until 9 such construction has been specifically approved by a statute 10 enacted by the General Assembly. Beginning January 1, 2026, 11 construction may commence on an advanced nuclear reactor a new 12 nuclear power reactor with a nameplate capacity of 300 13 megawatts of electricity or less within this State if the 14 entity constructing the advanced nuclear reactor new nuclear 15 power reactor has obtained all permits, licenses, permissions, 16 or approvals governing the construction, operation, and can 17 demonstrate adequate funding of decommissioning funding 18 assurance of such nuclear power reactors required by: (1) this 19 Act; (2) any rules adopted by the Illinois Emergency 20 Management Agency and Office of Homeland Security under the 21 authority of this Act; (3) any applicable federal statutes, 22 including, but not limited to, the Atomic Energy Act of 1954, 23 the Energy Reorganization Act of 1974, the Low-Level 24 Radioactive Waste Policy Amendments Act of 1985, and the 25 Energy Policy Act of 1992; (4) any regulations promulgated or 26 enforced by the U.S. Nuclear Regulatory Commission, including, SB1874 - 7 - LRB104 07081 AAS 17118 b SB1874- 8 -LRB104 07081 AAS 17118 b SB1874 - 8 - LRB104 07081 AAS 17118 b SB1874 - 8 - LRB104 07081 AAS 17118 b 1 but not limited to, those codified at Title X, Parts 20, 30, 2 40, 50, 70, and 72 of the Code of Federal Regulations, as from 3 time to time amended; and (5) any other federal or State 4 statute, rule, or regulation governing the permitting, 5 licensing, operation, or decommissioning of such nuclear power 6 reactors. None of the rules developed by the Illinois 7 Emergency Management Agency and Office of Homeland Security or 8 any other State agency, board, or commission pursuant to this 9 Act shall be construed to supersede the authority of the U.S. 10 Nuclear Regulatory Commission. These rules The changes made by 11 this amendatory Act of the 103rd General Assembly shall not 12 apply to the uprate, renewal, or subsequent renewal of any 13 license for an existing nuclear power reactor that began 14 operation prior to June 1, 2024 (the effective date of Public 15 Act 103-569) this amendatory Act of the 103rd General 16 Assembly. 17 None of the changes made in Public Act 103-569 this 18 amendatory Act of the 103rd General Assembly are intended to 19 authorize the construction of nuclear power plants powered by 20 nuclear power reactors that are not either: (1) advanced 21 nuclear reactors small modular nuclear reactors; or (2) 22 nuclear power reactors licensed by the U.S. Nuclear Regulatory 23 Commission to operate in this State prior to the effective 24 date of this amendatory Act of the 104th General Assembly. 25 this amendatory Act of the 103rd General Assembly. 26 (d) In making its determination under subsection (b) of SB1874 - 8 - LRB104 07081 AAS 17118 b SB1874- 9 -LRB104 07081 AAS 17118 b SB1874 - 9 - LRB104 07081 AAS 17118 b SB1874 - 9 - LRB104 07081 AAS 17118 b 1 this Section, the Commission shall attach primary weight to 2 the cost or cost savings to the customers of the utility. The 3 Commission may consider any or all factors which will or may 4 affect such cost or cost savings, including the public 5 utility's engineering judgment regarding the materials used 6 for construction. 7 (e) The Commission may issue a temporary certificate which 8 shall remain in force not to exceed one year in cases of 9 emergency, to assure maintenance of adequate service or to 10 serve particular customers, without notice or hearing, pending 11 the determination of an application for a certificate, and may 12 by regulation exempt from the requirements of this Section 13 temporary acts or operations for which the issuance of a 14 certificate will not be required in the public interest. 15 A public utility shall not be required to obtain but may 16 apply for and obtain a certificate of public convenience and 17 necessity pursuant to this Section with respect to any matter 18 as to which it has received the authorization or order of the 19 Commission under the Electric Supplier Act, and any such 20 authorization or order granted a public utility by the 21 Commission under that Act shall as between public utilities be 22 deemed to be, and shall have except as provided in that Act the 23 same force and effect as, a certificate of public convenience 24 and necessity issued pursuant to this Section. 25 No electric cooperative shall be made or shall become a 26 party to or shall be entitled to be heard or to otherwise SB1874 - 9 - LRB104 07081 AAS 17118 b SB1874- 10 -LRB104 07081 AAS 17118 b SB1874 - 10 - LRB104 07081 AAS 17118 b SB1874 - 10 - LRB104 07081 AAS 17118 b 1 appear or participate in any proceeding initiated under this 2 Section for authorization of power plant construction and as 3 to matters as to which a remedy is available under the Electric 4 Supplier Act. 5 (f) Such certificates may be altered or modified by the 6 Commission, upon its own motion or upon application by the 7 person or corporation affected. Unless exercised within a 8 period of 2 years from the grant thereof, authority conferred 9 by a certificate of convenience and necessity issued by the 10 Commission shall be null and void. 11 No certificate of public convenience and necessity shall 12 be construed as granting a monopoly or an exclusive privilege, 13 immunity or franchise. 14 (g) A public utility that undertakes any of the actions 15 described in items (1) through (3) of this subsection (g) or 16 that has obtained approval pursuant to Section 8-406.1 of this 17 Act shall not be required to comply with the requirements of 18 this Section to the extent such requirements otherwise would 19 apply. For purposes of this Section and Section 8-406.1 of 20 this Act, "high voltage electric service line" means an 21 electric line having a design voltage of 100,000 or more. For 22 purposes of this subsection (g), a public utility may do any of 23 the following: 24 (1) replace or upgrade any existing high voltage 25 electric service line and related facilities, 26 notwithstanding its length; SB1874 - 10 - LRB104 07081 AAS 17118 b SB1874- 11 -LRB104 07081 AAS 17118 b SB1874 - 11 - LRB104 07081 AAS 17118 b SB1874 - 11 - LRB104 07081 AAS 17118 b 1 (2) relocate any existing high voltage electric 2 service line and related facilities, notwithstanding its 3 length, to accommodate construction or expansion of a 4 roadway or other transportation infrastructure; or 5 (3) construct a high voltage electric service line and 6 related facilities that is constructed solely to serve a 7 single customer's premises or to provide a generator 8 interconnection to the public utility's transmission 9 system and that will pass under or over the premises owned 10 by the customer or generator to be served or under or over 11 premises for which the customer or generator has secured 12 the necessary right of way. 13 (h) A public utility seeking to construct a high-voltage 14 electric service line and related facilities (Project) must 15 show that the utility has held a minimum of 2 pre-filing public 16 meetings to receive public comment concerning the Project in 17 each county where the Project is to be located, no earlier than 18 6 months prior to filing an application for a certificate of 19 public convenience and necessity from the Commission. Notice 20 of the public meeting shall be published in a newspaper of 21 general circulation within the affected county once a week for 22 3 consecutive weeks, beginning no earlier than one month prior 23 to the first public meeting. If the Project traverses 2 24 contiguous counties and where in one county the transmission 25 line mileage and number of landowners over whose property the 26 proposed route traverses is one-fifth or less of the SB1874 - 11 - LRB104 07081 AAS 17118 b SB1874- 12 -LRB104 07081 AAS 17118 b SB1874 - 12 - LRB104 07081 AAS 17118 b SB1874 - 12 - LRB104 07081 AAS 17118 b SB1874 - 12 - LRB104 07081 AAS 17118 b