103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3935

 

Introduced 2/17/2023, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/9.15
415 ILCS 5/3.131 rep.

    Amends the Environmental Protection Act. Restores a provision in the Act concerning the regulation of greenhouse gases to its form prior to amendment by P.A. 102-662. Repeals a provision defining "clean energy". Effective immediately.


LRB103 28358 CPF 54738 b

 

 

A BILL FOR

 

HB3935LRB103 28358 CPF 54738 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Environmental Protection Act is amended by
5changing Section 9.15 as follows:
 
6    (415 ILCS 5/9.15)
7    Sec. 9.15. Greenhouse gases.
8    (a) An air pollution construction permit shall not be
9required due to emissions of greenhouse gases if the
10equipment, site, or source is not subject to regulation, as
11defined by 40 CFR 52.21, as now or hereafter amended, for
12greenhouse gases. This exemption does or is otherwise not
13addressed in this Section or by the Board in regulations for
14greenhouse gases. These exemptions do not relieve an owner or
15operator from the obligation to comply with other applicable
16rules or regulations.
17    (b) An air pollution operating permit shall not be
18required due to emissions of greenhouse gases if the
19equipment, site, or source is not subject to regulation, as
20defined by Section 39.5 of this Act, for greenhouse gases.
21This exemption does or is otherwise not addressed in this
22Section or by the Board in regulations for greenhouse gases.
23These exemptions do not relieve an owner or operator from the

 

 

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1obligation to comply with other applicable rules or
2regulations.
3    (c) Notwithstanding any provision to the contrary in this
4Section, an air pollution construction or operating permit
5shall not be required due to emissions of greenhouse gases if
6any of the following events occur: (Blank).
7        (1) enactment of federal legislation depriving the
8    Administrator of the USEPA of authority to regulate
9    greenhouse gases under the Clean Air Act;
10        (2) the issuance of any opinion, ruling, judgment,
11    order, or decree by a federal court depriving the
12    Administrator of the USEPA of authority to regulate
13    greenhouse gases under the Clean Air Act; or
14        (3) action by the President of the United States or
15    the President's authorized agent, including the
16    Administrator of the USEPA, to repeal or withdraw the
17    Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3,
18    2010).
19    This subsection (c) does not relieve an owner or operator
20from the obligation to comply with applicable rules or
21regulations other than those relating to greenhouse gases.
22    (d) If any event listed in subsection (c) of this Section
23occurs, permits issued after such event shall not impose
24permit terms or conditions addressing greenhouse gases during
25the effectiveness of any event listed in subsection (c).
26(Blank).

 

 

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1    (e) If an event listed in subsection (c) of this Section
2occurs, any owner or operator with a permit that includes
3terms or conditions addressing greenhouse gases may elect to
4submit an application to the Agency to address a revision or
5repeal of such terms or conditions. The Agency shall
6expeditiously process such permit application in accordance
7with applicable laws and regulations. (Blank).
8    (f) (Blank). As used in this Section:
9    "Carbon dioxide emission" means the plant annual CO2 total
10output emission as measured by the United States Environmental
11Protection Agency in its Emissions & Generation Resource
12Integrated Database (eGrid), or its successor.
13    "Carbon dioxide equivalent emissions" or "CO2e" means the
14sum total of the mass amount of emissions in tons per year,
15calculated by multiplying the mass amount of each of the 6
16greenhouse gases specified in Section 3.207, in tons per year,
17by its associated global warming potential as set forth in 40
18CFR 98, subpart A, table A-1 or its successor, and then adding
19them all together.
20    "Cogeneration" or "combined heat and power" refers to any
21system that, either simultaneously or sequentially, produces
22electricity and useful thermal energy from a single fuel
23source.
24    "Copollutants" refers to the 6 criteria pollutants that
25have been identified by the United States Environmental
26Protection Agency pursuant to the Clean Air Act.

 

 

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1    "Electric generating unit" or "EGU" means a fossil
2fuel-fired stationary boiler, combustion turbine, or combined
3cycle system that serves a generator that has a nameplate
4capacity greater than 25 MWe and produces electricity for
5sale.
6    "Environmental justice community" means the definition of
7that term based on existing methodologies and findings, used
8and as may be updated by the Illinois Power Agency and its
9program administrator in the Illinois Solar for All Program.
10    "Equity investment eligible community" or "eligible
11community" means the geographic areas throughout Illinois that
12would most benefit from equitable investments by the State
13designed to combat discrimination and foster sustainable
14economic growth. Specifically, eligible community means the
15following areas:
16        (1) areas where residents have been historically
17    excluded from economic opportunities, including
18    opportunities in the energy sector, as defined as R3 areas
19    pursuant to Section 10-40 of the Cannabis Regulation and
20    Tax Act; and
21        (2) areas where residents have been historically
22    subject to disproportionate burdens of pollution,
23    including pollution from the energy sector, as established
24    by environmental justice communities as defined by the
25    Illinois Power Agency pursuant to the Illinois Power
26    Agency Act, excluding any racial or ethnic indicators.

 

 

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1    "Equity investment eligible person" or "eligible person"
2means the persons who would most benefit from equitable
3investments by the State designed to combat discrimination and
4foster sustainable economic growth. Specifically, eligible
5person means the following people:
6        (1) persons whose primary residence is in an equity
7    investment eligible community;
8        (2) persons whose primary residence is in a
9    municipality, or a county with a population under 100,000,
10    where the closure of an electric generating unit or mine
11    has been publicly announced or the electric generating
12    unit or mine is in the process of closing or closed within
13    the last 5 years;
14        (3) persons who are graduates of or currently enrolled
15    in the foster care system; or
16        (4) persons who were formerly incarcerated.
17    "Existing emissions" means:
18        (1) for CO2e, the total average tons-per-year of CO2e
19    emitted by the EGU or large GHG-emitting unit either in
20    the years 2018 through 2020 or, if the unit was not yet in
21    operation by January 1, 2018, in the first 3 full years of
22    that unit's operation; and
23        (2) for any copollutant, the total average
24    tons-per-year of that copollutant emitted by the EGU or
25    large GHG-emitting unit either in the years 2018 through
26    2020 or, if the unit was not yet in operation by January 1,

 

 

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1    2018, in the first 3 full years of that unit's operation.
2    "Green hydrogen" means a power plant technology in which
3an EGU creates electric power exclusively from electrolytic
4hydrogen, in a manner that produces zero carbon and
5copollutant emissions, using hydrogen fuel that is
6electrolyzed using a 100% renewable zero carbon emission
7energy source.
8    "Large greenhouse gas-emitting unit" or "large
9GHG-emitting unit" means a unit that is an electric generating
10unit or other fossil fuel-fired unit that itself has a
11nameplate capacity or serves a generator that has a nameplate
12capacity greater than 25 MWe and that produces electricity,
13including, but not limited to, coal-fired, coal-derived,
14oil-fired, natural gas-fired, and cogeneration units.
15    "NOx emission rate" means the plant annual NOx total output
16emission rate as measured by the United States Environmental
17Protection Agency in its Emissions & Generation Resource
18Integrated Database (eGrid), or its successor, in the most
19recent year for which data is available.
20    "Public greenhouse gas-emitting units" or "public
21GHG-emitting unit" means large greenhouse gas-emitting units,
22including EGUs, that are wholly owned, directly or indirectly,
23by one or more municipalities, municipal corporations, joint
24municipal electric power agencies, electric cooperatives, or
25other governmental or nonprofit entities, whether organized
26and created under the laws of Illinois or another state.

 

 

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1    "SO2 emission rate" means the "plant annual SO2 total
2output emission rate" as measured by the United States
3Environmental Protection Agency in its Emissions & Generation
4Resource Integrated Database (eGrid), or its successor, in the
5most recent year for which data is available.
6    (g) All EGUs and large greenhouse gas-emitting units that
7use coal or oil as a fuel and are not public GHG-emitting units
8shall permanently reduce all CO2e and copollutant emissions to
9zero no later than January 1, 2030.
10    (h) All EGUs and large greenhouse gas-emitting units that
11use coal as a fuel and are public GHG-emitting units shall
12permanently reduce CO2e emissions to zero no later than
13December 31, 2045. Any source or plant with such units must
14also reduce their CO2e emissions by 45% from existing
15emissions by no later than January 1, 2035. If the emissions
16reduction requirement is not achieved by December 31, 2035,
17the plant shall retire one or more units or otherwise reduce
18its CO2e emissions by 45% from existing emissions by June 30,
192038.
20    (i) All EGUs and large greenhouse gas-emitting units that
21use gas as a fuel and are not public GHG-emitting units shall
22permanently reduce all CO2e and copollutant emissions to zero,
23including through unit retirement or the use of 100% green
24hydrogen or other similar technology that is commercially
25proven to achieve zero carbon emissions, according to the
26following:

 

 

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1        (1) No later than January 1, 2030: all EGUs and large
2    greenhouse gas-emitting units that have a NOx emissions
3    rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
4    greater than 0.006 lb/MWh, and are located in or within 3
5    miles of an environmental justice community designated as
6    of January 1, 2021 or an equity investment eligible
7    community.
8        (2) No later than January 1, 2040: all EGUs and large
9    greenhouse gas-emitting units that have a NOx emission
10    rate of greater than 0.12 lbs/MWh or a SO2 emission rate
11    greater than 0.006 lb/MWh, and are not located in or
12    within 3 miles of an environmental justice community
13    designated as of January 1, 2021 or an equity investment
14    eligible community. After January 1, 2035, each such EGU
15    and large greenhouse gas-emitting unit shall reduce its
16    CO2e emissions by at least 50% from its existing emissions
17    for CO2e, and shall be limited in operation to, on average,
18    6 hours or less per day, measured over a calendar year, and
19    shall not run for more than 24 consecutive hours except in
20    emergency conditions, as designated by a Regional
21    Transmission Organization or Independent System Operator.
22        (3) No later than January 1, 2035: all EGUs and large
23    greenhouse gas-emitting units that began operation prior
24    to the effective date of this amendatory Act of the 102nd
25    General Assembly and have a NOx emission rate of less than
26    or equal to 0.12 lb/MWh and a SO2 emission rate less than

 

 

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1    or equal to 0.006 lb/MWh, and are located in or within 3
2    miles of an environmental justice community designated as
3    of January 1, 2021 or an equity investment eligible
4    community. Each such EGU and large greenhouse gas-emitting
5    unit shall reduce its CO2e emissions by at least 50% from
6    its existing emissions for CO2e no later than January 1,
7    2030.
8        (4) No later than January 1, 2040: All remaining EGUs
9    and large greenhouse gas-emitting units that have a heat
10    rate greater than or equal to 7000 BTU/kWh. Each such EGU
11    and Large greenhouse gas-emitting unit shall reduce its
12    CO2e emissions by at least 50% from its existing emissions
13    for CO2e no later than January 1, 2035.
14        (5) No later than January 1, 2045: all remaining EGUs
15    and large greenhouse gas-emitting units.
16    (j) All EGUs and large greenhouse gas-emitting units that
17use gas as a fuel and are public GHG-emitting units shall
18permanently reduce all CO2e and copollutant emissions to zero,
19including through unit retirement or the use of 100% green
20hydrogen or other similar technology that is commercially
21proven to achieve zero carbon emissions by January 1, 2045.
22    (k) All EGUs and large greenhouse gas-emitting units that
23utilize combined heat and power or cogeneration technology
24shall permanently reduce all CO2e and copollutant emissions to
25zero, including through unit retirement or the use of 100%
26green hydrogen or other similar technology that is

 

 

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1commercially proven to achieve zero carbon emissions by
2January 1, 2045.
3    (k-5) No EGU or large greenhouse gas-emitting unit that
4uses gas as a fuel and is not a public GHG-emitting unit may
5emit, in any 12-month period, CO2e or copollutants in excess of
6that unit's existing emissions for those pollutants.
7    (l) Notwithstanding subsections (g) through (k-5), large
8GHG-emitting units including EGUs may temporarily continue
9emitting CO2e and copollutants after any applicable deadline
10specified in any of subsections (g) through (k-5) if it has
11been determined, as described in paragraphs (1) and (2) of
12this subsection, that ongoing operation of the EGU is
13necessary to maintain power grid supply and reliability or
14ongoing operation of large GHG-emitting unit that is not an
15EGU is necessary to serve as an emergency backup to
16operations. Up to and including the occurrence of an emission
17reduction deadline under subsection (i), all EGUs and large
18GHG-emitting units must comply with the following terms:
19        (1) if an EGU or large GHG-emitting unit that is a
20    participant in a regional transmission organization
21    intends to retire, it must submit documentation to the
22    appropriate regional transmission organization by the
23    appropriate deadline that meets all applicable regulatory
24    requirements necessary to obtain approval to permanently
25    cease operating the large GHG-emitting unit;
26        (2) if any EGU or large GHG-emitting unit that is a

 

 

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1    participant in a regional transmission organization
2    receives notice that the regional transmission
3    organization has determined that continued operation of
4    the unit is required, the unit may continue operating
5    until the issue identified by the regional transmission
6    organization is resolved. The owner or operator of the
7    unit must cooperate with the regional transmission
8    organization in resolving the issue and must reduce its
9    emissions to zero, consistent with the requirements under
10    subsection (g), (h), (i), (j), (k), or (k-5), as
11    applicable, as soon as practicable when the issue
12    identified by the regional transmission organization is
13    resolved; and
14        (3) any large GHG-emitting unit that is not a
15    participant in a regional transmission organization shall
16    be allowed to continue emitting CO2e and copollutants
17    after the zero-emission date specified in subsection (g),
18    (h), (i), (j), (k), or (k-5), as applicable, in the
19    capacity of an emergency backup unit if approved by the
20    Illinois Commerce Commission.
21    (m) No variance, adjusted standard, or other regulatory
22relief otherwise available in this Act may be granted to the
23emissions reduction and elimination obligations in this
24Section.
25    (n) By June 30 of each year, beginning in 2025, the Agency
26shall prepare and publish on its website a report setting

 

 

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1forth the actual greenhouse gas emissions from individual
2units and the aggregate statewide emissions from all units for
3the prior year.
4    (o) Every 5 years beginning in 2025, the Environmental
5Protection Agency, Illinois Power Agency, and Illinois
6Commerce Commission shall jointly prepare, and release
7publicly, a report to the General Assembly that examines the
8State's current progress toward its renewable energy resource
9development goals, the status of CO2e and copollutant
10emissions reductions, the current status and progress toward
11developing and implementing green hydrogen technologies, the
12current and projected status of electric resource adequacy and
13reliability throughout the State for the period beginning 5
14years ahead, and proposed solutions for any findings. The
15Environmental Protection Agency, Illinois Power Agency, and
16Illinois Commerce Commission shall consult PJM
17Interconnection, LLC and Midcontinent Independent System
18Operator, Inc., or their respective successor organizations
19regarding forecasted resource adequacy and reliability needs,
20anticipated new generation interconnection, new transmission
21development or upgrades, and any announced large GHG-emitting
22unit closure dates and include this information in the report.
23The report shall be released publicly by no later than
24December 15 of the year it is prepared. If the Environmental
25Protection Agency, Illinois Power Agency, and Illinois
26Commerce Commission jointly conclude in the report that the

 

 

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1data from the regional grid operators, the pace of renewable
2energy development, the pace of development of energy storage
3and demand response utilization, transmission capacity, and
4the CO2e and copollutant emissions reductions required by
5subsection (i) or (k-5) reasonably demonstrate that a resource
6adequacy shortfall will occur, including whether there will be
7sufficient in-state capacity to meet the zonal requirements of
8MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
9regional transmission organizations, or that the regional
10transmission operators determine that a reliability violation
11will occur during the time frame the study is evaluating, then
12the Illinois Power Agency, in conjunction with the
13Environmental Protection Agency shall develop a plan to reduce
14or delay CO2e and copollutant emissions reductions
15requirements only to the extent and for the duration necessary
16to meet the resource adequacy and reliability needs of the
17State, including allowing any plants whose emission reduction
18deadline has been identified in the plan as creating a
19reliability concern to continue operating, including operating
20with reduced emissions or as emergency backup where
21appropriate. The plan shall also consider the use of renewable
22energy, energy storage, demand response, transmission
23development, or other strategies to resolve the identified
24resource adequacy shortfall or reliability violation.
25        (1) In developing the plan, the Environmental
26    Protection Agency and the Illinois Power Agency shall hold

 

 

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1    at least one workshop open to, and accessible at a time and
2    place convenient to, the public and shall consider any
3    comments made by stakeholders or the public. Upon
4    development of the plan, copies of the plan shall be
5    posted and made publicly available on the Environmental
6    Protection Agency's, the Illinois Power Agency's, and the
7    Illinois Commerce Commission's websites. All interested
8    parties shall have 60 days following the date of posting
9    to provide comment to the Environmental Protection Agency
10    and the Illinois Power Agency on the plan. All comments
11    submitted to the Environmental Protection Agency and the
12    Illinois Power Agency shall be encouraged to be specific,
13    supported by data or other detailed analyses, and, if
14    objecting to all or a portion of the plan, accompanied by
15    specific alternative wording or proposals. All comments
16    shall be posted on the Environmental Protection Agency's,
17    the Illinois Power Agency's, and the Illinois Commerce
18    Commission's websites. Within 30 days following the end of
19    the 60-day review period, the Environmental Protection
20    Agency and the Illinois Power Agency shall revise the plan
21    as necessary based on the comments received and file its
22    revised plan with the Illinois Commerce Commission for
23    approval.
24        (2) Within 60 days after the filing of the revised
25    plan at the Illinois Commerce Commission, any person
26    objecting to the plan shall file an objection with the

 

 

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1    Illinois Commerce Commission. Within 30 days after the
2    expiration of the comment period, the Illinois Commerce
3    Commission shall determine whether an evidentiary hearing
4    is necessary. The Illinois Commerce Commission shall also
5    host 3 public hearings within 90 days after the plan is
6    filed. Following the evidentiary and public hearings, the
7    Illinois Commerce Commission shall enter its order
8    approving or approving with modifications the reliability
9    mitigation plan within 180 days.
10        (3) The Illinois Commerce Commission shall only
11    approve the plan if the Illinois Commerce Commission
12    determines that it will resolve the resource adequacy or
13    reliability deficiency identified in the reliability
14    mitigation plan at the least amount of CO2e and copollutant
15    emissions, taking into consideration the emissions impacts
16    on environmental justice communities, and that it will
17    ensure adequate, reliable, affordable, efficient, and
18    environmentally sustainable electric service at the lowest
19    total cost over time, taking into account the impact of
20    increases in emissions.
21        (4) If the resource adequacy or reliability deficiency
22    identified in the reliability mitigation plan is resolved
23    or reduced, the Environmental Protection Agency and the
24    Illinois Power Agency may file an amended plan adjusting
25    the reduction or delay in CO2e and copollutant emission
26    reduction requirements identified in the plan.

 

 

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1(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
 
2    (415 ILCS 5/3.131 rep.)
3    Section 10. The Environmental Protection Act is amended by
4repealing Section 3.131.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.