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Illinois Senate Bill SB2146

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2146 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2146 Introduced 2/7/2025, by Sen. Bill Cunningham 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 10692 HLH 20771 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2146 Introduced 2/7/2025, by Sen. Bill Cunningham 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 10692 HLH 20771 b LRB104 10692 HLH 20771 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2146 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
33 New Act220 ILCS 5/8-406.3 new New Act 220 ILCS 5/8-406.3 new
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55 220 ILCS 5/8-406.3 new
66 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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1212 1 AN ACT concerning State government.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 1. Short title. This Act may be cited as the
1616 5 Advancing Federally Regulated Illinois Transmission Projects
1717 6 Act.
1818 7 Section 5. Legislative findings. The General Assembly
1919 8 finds that federally regulated interconnection procedures
2020 9 delay and impair infrastructure necessary for the resilience,
2121 10 reliability, and clean energy transition envisioned in Public
2222 11 Act 102-662 (the "Climate and Equitable Jobs Act") and other
2323 12 Acts. The General Assembly further finds that the State's
2424 13 leading role in quantum computing, data centers, battery
2525 14 manufacturing, and other new economic initiatives requires
2626 15 resilient and reliable electric systems. The General Assembly
2727 16 further finds that the Department is uniquely situated to
2828 17 reduce those delays and impairments for specific electricity
2929 18 transmission infrastructure located partially or wholly within
3030 19 the Illinois footprint of PJM Interconnection, L.L.C. by
3131 20 initiating and managing on behalf of the State the State
3232 21 Agreement Approach for transmission expansion that addresses
3333 22 Illinois public policy requirements. The General Assembly
3434 23 finds that the health, welfare, and prosperity of residents of
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3838 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2146 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3939 New Act220 ILCS 5/8-406.3 new New Act 220 ILCS 5/8-406.3 new
4040 New Act
4141 220 ILCS 5/8-406.3 new
4242 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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7171 1 the State is furthered by the Department pursuing the State
7272 2 Agreement Approach for projects that meet the resilience,
7373 3 reliability, and clean energy goals of the Climate and
7474 4 Equitable Jobs Act.
7575 5 Section 10. Definitions. As used in this Act:
7676 6 "Commission" means the Illinois Commerce Commission.
7777 7 "Department" means the Department of Commerce and Economic
7878 8 Opportunity.
7979 9 "Director" means the Director of Commerce and Economic
8080 10 Opportunity.
8181 11 "FERC" means the Federal Energy Regulatory Commission.
8282 12 "PJM Operating Agreement" means the Amended and Restated
8383 13 Operating Agreement of PJM Interconnection, L.L.C., as may be
8484 14 amended from time to time, or its successor.
8585 15 "PJM" means PJM Interconnection, L.L.C., or its successor.
8686 16 "Project" means a proposed or existing electric
8787 17 transmission line wholly or in part within the Illinois
8888 18 footprint of PJM.
8989 19 "State Agreement Approach" or "SAA" means the State
9090 20 Agreement Approach process for the development and allocation
9191 21 of costs for transmission expansion projects that address
9292 22 State public policy requirements as described in Section 1.5.9
9393 23 of Schedule 6 of the PJM Operating Agreement, as may be amended
9494 24 from time to time, or its successor.
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105105 1 Section 15. Initiation. The Department is authorized to
106106 2 identify one or more Projects for potential application of the
107107 3 PJM State Agreement Approach that the Director determines may
108108 4 improve the resilience, reliability, and access to clean
109109 5 energy of the ratepayers of a public utility with more than
110110 6 3,000,000 customers in this State. The Director may consider
111111 7 any information that the Director determines is relevant,
112112 8 including studies or reports regarding the expected impact of
113113 9 Projects. Upon identification of such a Project by the
114114 10 Director, the Department shall enter into an agreement on
115115 11 behalf of the State with the owner of the Project reflecting
116116 12 the intent of the State to have the Project participate in the
117117 13 PJM State Agreement Approach, for cooperation between the
118118 14 Project and the Department, and for exchange of information
119119 15 including appropriate protocols for confidential, proprietary,
120120 16 and critical infrastructure information. The agreement may
121121 17 provide for reimbursement of reasonable costs incurred by the
122122 18 Department under the agreement or under Section 20 of this
123123 19 Act.
124124 20 Prior to entering into an agreement with any other Project
125125 21 under the terms of this Section, the Department shall enter
126126 22 into a contract with a Project that meets the following
127127 23 criteria:
128128 24 (1) more than 75 miles of transmission line from the
129129 25 Project will be built on easements or rights-of-way of
130130 26 existing infrastructure, including railroad
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141141 1 rights-of-way, municipal rights-of-way or highway
142142 2 rights-of-way within the State;
143143 3 (2) more than 80 miles of transmission line from the
144144 4 Project will be built underground within the State;
145145 5 (3) the portion of the Project within the State will
146146 6 meet the definition of a high voltage direct current
147147 7 transmission facility once built;
148148 8 (4) the Project connects 2 or more regional
149149 9 transmission organizations; and
150150 10 (5) the Project will transmit electricity at on the
151151 11 high voltage direct current transmission facility at a
152152 12 design voltage of 500 kV or greater.
153153 13 Section 20. Applications. Upon execution of the agreement
154154 14 identified in Section 15 of this Act by the Department and the
155155 15 owner of the Project, the Department shall inform PJM in a
156156 16 manner consistent with PJM's Operating Agreement, of the
157157 17 Department's intention to pursue the SAA for the Project on
158158 18 behalf of the State. If and only if the Project does not
159159 19 require the use of eminent domain within the State pursuant to
160160 20 Section 8-509 of the Public Utilities Act or otherwise under
161161 21 law, the Department shall explicitly state in such notice that
162162 22 the Project is not subject to competitive bidding. The notice
163163 23 to PJM shall include an affirmative statement that the costs
164164 24 of the Project will be borne by Illinois ratepayers.
165165 25 Following the initial notice and application to PJM, the
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176176 1 Department shall make such filings and prepare and provide
177177 2 such documents and other materials, or assist PJM with such
178178 3 filings, documents, or information, or participate in such
179179 4 hearings, meetings, or other communications as may be
180180 5 necessary or helpful in facilitating PJM's use of the SAA to
181181 6 allocate the costs of the Project using a FERC-accepted cost
182182 7 allocation proposed by the Department to recover costs from
183183 8 customers within the State, including a proposal for
184184 9 allocating the costs of the Project under PJM's tariffs, as
185185 10 may be modified from time to time, and entering into
186186 11 agreements with PJM as appropriate to implement the SAA for
187187 12 the Project. Such cost allocation proposed by the Department
188188 13 to PJM for acceptance by FERC shall provide that all costs
189189 14 related to the Project shall be recovered from customers
190190 15 located in the State of Illinois and may not include customers
191191 16 in any other state unless such other state voluntarily agrees
192192 17 to be responsible for such cost allocation. The Department
193193 18 shall coordinate with the Project as necessary.
194194 19 Section 25. Department filings. The Department shall make
195195 20 such filings and prepare and provide such documents and other
196196 21 materials for FERC and PJM as may be reasonably necessary to
197197 22 qualify generators utilizing the Project as a capacity
198198 23 resource with PJM, as defined under PJM's tariffs, as may be
199199 24 modified from time to time.
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210210 1 Section 900. The Public Utilities Act is amended by adding
211211 2 Section 8-406.3 as follows:
212212 3 (220 ILCS 5/8-406.3 new)
213213 4 Sec. 8-406.3. State Agreement Approach.
214214 5 (a) The General Assembly finds that development and
215215 6 operation of interregional electric transmission facilities
216216 7 can substantially improve the resilience and reliability of
217217 8 the bulk electric system and substantially advance the public
218218 9 policy goals of this State, including implementation of Public
219219 10 Act 102-0662 and subparagraphs (B) and (C) of paragraph (1) of
220220 11 subsection (c) of Section 1-75 of the Illinois Power Agency
221221 12 Act and Section 16-111.5 of the Public Utilities Act. The
222222 13 General Assembly further finds that the health, welfare, and
223223 14 prosperity of all Illinois residents is advanced by
224224 15 transmission projects that improve resilience, reliability,
225225 16 and access to clean energy and that the Commission has the
226226 17 authority to issue a certificate of public convenience and
227227 18 necessity under Section 8-406 of this Article to such
228228 19 transmission projects. However, the General Assembly further
229229 20 finds that in order to advance such transmission projects
230230 21 through federal approvals not directly regulated by the
231231 22 Commission or the State, the State can and should utilize
232232 23 available tools to simplify and streamline federal processes
233233 24 to obtain federal approval for electric transmission projects
234234 25 issued a certificate of public convenience and necessity under
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245245 1 Section 8-406 of this Act, such as the State Agreement
246246 2 Approach offered by PJM Interconnection, L.L.C.
247247 3 (b) As used in this Section:
248248 4 "Department" means the Department of Commerce and Economic
249249 5 Opportunity.
250250 6 "PJM" means PJM Interconnection, L.L.C., or its successor.
251251 7 "PJM Operating Agreement" means the Amended and Restated
252252 8 Operating Agreement of PJM Interconnection, L.L.C. as may be
253253 9 amended from time to time or its successor.
254254 10 "Project" means a proposed or existing electric
255255 11 transmission line wholly or in part within the Illinois
256256 12 footprint of PJM that meets the criteria set forth in Section
257257 13 15 of the Advancing Federally Regulated Illinois Transmission
258258 14 Projects Act.
259259 15 "State Agreement Approach" or "SAA" means the State
260260 16 Agreement Approach process for the development and allocation
261261 17 of costs for transmission expansion projects that address
262262 18 State public policy requirements as described in Section 1.5.9
263263 19 of Schedule 6 of the PJM Operating Agreement as may be amended
264264 20 from time to time or its successor.
265265 21 (c) For any applicant for a certificate of public
266266 22 convenience and necessity under Section 8-406 of this Article
267267 23 seeking permission to construct, own, or operate a Project:
268268 24 (1) The applicant, with its initial submission to the
269269 25 Commission under subsection (b) of Section 8-406 of this
270270 26 Article, may include a statement from the Department that
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281281 1 the Department has or plans to submit the Project to PJM
282282 2 for inclusion under the SAA.
283283 3 (2) If the applicant does not hold a certificate of
284284 4 service authority as a public utility with the Commission,
285285 5 the Commission shall accept the statement from the
286286 6 Department as prima facie evidence that the Project is and
287287 7 will be for public use.
288288 8 (3) In evaluating the requirements of subsection (d)
289289 9 of Section 8-406, the Commission shall evaluate whether
290290 10 the Project is a reasonable method of developing,
291291 11 constructing, and operating an electric transmission
292292 12 facility with the same technology, attributes, location
293293 13 and purpose as the Project while ensuring adequate safety,
294294 14 reliability, and environmental benefit.
295295 15 (4) In the final order granting the certificate of
296296 16 public convenience and necessity for the Project, the
297297 17 Commission shall explicitly:
298298 18 (A) state that the Project is intended and
299299 19 expected to participate in the PJM SAA; and
300300 20 (B) require that, if the Project enters into a
301301 21 contract to provide services to one or more customers,
302302 22 revenue from those contracts shall be disclosed to the
303303 23 Commission annually on a confidential basis and,
304304 24 consistent with and to the maximum extent allowable by
305305 25 law, that revenue shall offset costs otherwise
306306 26 recoverable from Illinois ratepayers.
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317317 1 (5) The Commission shall grant a certificate of
318318 2 service authority for applicant as a public utility and a
319319 3 certificate of public convenience and necessity as
320320 4 described in Section 8-406 except that if the applicant
321321 5 does not seek authority pursuant to Section 8-509 of this
322322 6 Article:
323323 7 (A) Subsections (h) and (i) of Section 8-406 do
324324 8 not apply;
325325 9 (B) The Commission shall issue a final order
326326 10 approving the application for the certificate of
327327 11 service authority and certificate of public
328328 12 convenience and necessity not later than 240 days
329329 13 following the initial application; and
330330 14 (C) The Commission's final order shall explicitly
331331 15 state that the Project is not intended for competitive
332332 16 bidding under the SAA unless the applicant explicitly
333333 17 requests competitive bidding in its initial
334334 18 application.
335335 19 (d) Project Labor Agreement. Notwithstanding any other
336336 20 provision of law, the Commission shall make an explicit
337337 21 condition of any certificate of public convenience and
338338 22 necessity that any general contractor constructing any portion
339339 23 of the Project within the State must enter into one or more
340340 24 project labor agreements, as such term is defined in Section
341341 25 1-10 of the Illinois Power Agency Act.
342342 26 Section 999. Effective date. This Act takes effect upon
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