Full Text of SB1666 103rd General Assembly
SB1666sam002 103RD GENERAL ASSEMBLY | Sen. Robert Peters Filed: 1/17/2024 | | 10300SB1666sam002 | | LRB103 26363 LNS 65872 a |
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| 1 | | AMENDMENT TO SENATE BILL 1666
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1666 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 1. Short title. This Act may be referred to as the | 5 | | Thermal Energy Network and Jobs Act. | 6 | | Section 5. Legislative findings and intent. | 7 | | (a) The General Assembly finds and declares that: | 8 | | (1) This State has a strong interest in ensuring that | 9 | | emissions of greenhouse gases from buildings are reduced | 10 | | because buildings are one of this State's largest sources | 11 | | of greenhouse gases due to the combustion of fossil fuels | 12 | | for heating, domestic hot water production, cooking, and | 13 | | other end uses. | 14 | | (2) The decarbonization of buildings must be pursued | 15 | | in a manner that is affordable and accessible, preserves | 16 | | and creates living-wage jobs, and retains the knowledge |
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| 1 | | and experience of the existing utility union workforce. | 2 | | (3) Thermal energy networks have the potential to | 3 | | decarbonize buildings at the community and utility scale | 4 | | and help achieve the goals of Public Act 102-662 (also | 5 | | known as the Climate and Equitable Jobs Act). | 6 | | (4) Thermal energy networks consist of pipe loops | 7 | | between multiple buildings and energy sources, which carry | 8 | | water and can be connected to by building owners to | 9 | | support heating and cooling and hot water services. | 10 | | Building owners can connect to the loops to support water | 11 | | heating and cooling and hot water services. | 12 | | (5) Many utilities in this State have been seeking to | 13 | | develop thermal energy networks but have encountered legal | 14 | | and regulatory barriers. | 15 | | (6) This State has a strong interest in ensuring an | 16 | | adequate supply of reliable electrical power and, | 17 | | therefore, needs to promote the development of alternative | 18 | | power sources and take steps to assure reliable | 19 | | deliverability. Thermal energy networks are highly | 20 | | efficient because they use and exchange thermal energy | 21 | | from many underground sources and buildings, including | 22 | | recycled thermal energy, which minimizes impacts on the | 23 | | electricity grid. | 24 | | (7) Access to thermal energy networks has the | 25 | | potential to reduce the upfront and operating costs of | 26 | | building electrification for customers. |
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| 1 | | (8) Thermal loop technology provides benefits to | 2 | | participants and non-participants alike including societal | 3 | | benefits to the environment and the market benefits | 4 | | associated with the reduction of both the volume and peak | 5 | | demand of electricity and natural gas. | 6 | | (9) A utility's access to capital, the utility's | 7 | | experience with networked infrastructure in public | 8 | | rights-of-way, and the requirement that the utility serve | 9 | | all customers positions the utility well to develop and | 10 | | scale thermal energy networks that are accessible to all | 11 | | customers and to coordinate the development of thermal | 12 | | energy networks with any orderly rightsizing of the | 13 | | utility gas system. | 14 | | (10) This State also has an interest in the efficient | 15 | | and reliable delivery of energy and the energy | 16 | | infrastructure of the State, which interest is | 17 | | acknowledged throughout the Public Utilities Act. Utility | 18 | | corporations and other power suppliers share these | 19 | | interests and, moreover, have a duty to protect | 20 | | proprietary interests in the projects they fund. Such | 21 | | investments of ratepayer resources can be protected by | 22 | | establishing effective contractor qualification and | 23 | | performance standards, including requirements for | 24 | | prevailing wage rates, bona fide apprenticeship criteria, | 25 | | and project labor agreements. | 26 | | (11) The construction industry is highly skilled and |
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| 1 | | labor intensive, and the installation of modern thermal | 2 | | energy networks involves particularly complex work. | 3 | | Therefore, effective qualification standards for craft | 4 | | labor personnel employed on these projects are critically | 5 | | needed to promote successful project delivery. | 6 | | (12) Finally, these findings are especially vital now | 7 | | because the construction industry is experiencing | 8 | | widespread skill shortages across the country, which are | 9 | | crippling existing capital projects and threatening | 10 | | projects planned for the future. The construction of | 11 | | thermal energy networks will utilize many of the same | 12 | | skills that the current utility and building trades | 13 | | workforces already possess. | 14 | | (b) It is the intent of the General Assembly that passage | 15 | | of this Act is for the following purposes: | 16 | | (1) to remove the legal barriers to utility | 17 | | development of thermal energy networks and require the | 18 | | Illinois Commerce Commission, within 90 days after the | 19 | | effective date of this amendatory Act of the 103rd General | 20 | | Assembly, to begin to authorize and direct utilities to | 21 | | immediately commence piloting thermal energy networks in | 22 | | each and every utility territory; | 23 | | (2) to direct and authorize the Illinois Commerce | 24 | | Commission to develop a regulatory structure for utility | 25 | | thermal energy networks that scales affordable and | 26 | | accessible building electrification, protects customers, |
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| 1 | | and balances the role of incumbent monopoly utilities with | 2 | | other market and public actors; | 3 | | (3) to promote the successful planning and delivery of | 4 | | thermal energy networks and protect critical investments | 5 | | in such projects by requiring the use of appropriate | 6 | | quality craft labor policies that ensure the development | 7 | | of and access to an adequate supply of well trained, | 8 | | highly skilled craft persons needed to support timely, | 9 | | reliable, high-quality projects; | 10 | | (4) to promote strong economic development and good | 11 | | jobs for local residents in the expanding decarbonized | 12 | | sector by requiring application of progressive State labor | 13 | | and employment policies that ensure public utility | 14 | | investments and related State subsidies create | 15 | | unparalleled skill training and employment opportunities | 16 | | for residents in project areas through the use of local | 17 | | prevailing wage standards and successful, bona fide | 18 | | apprenticeship programs or project labor agreements that | 19 | | incorporate prevailing wage and training standards and | 20 | | provide additional benefits for project owners and | 21 | | workers; and | 22 | | (5) to promote the use of preapprenticeship programs | 23 | | that will fortify and expand existing apprenticeship | 24 | | programs through systematic outreach efforts to recruit | 25 | | and assist persons from underrepresented and low income | 26 | | communities by providing such persons with remedial |
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| 1 | | education, social services, and unique opportunities for | 2 | | direct access into high-quality apprenticeship programs | 3 | | and gainful employment in the growing building | 4 | | decarbonization workforce. | 5 | | Section 10. The Public Utilities Act is amended by | 6 | | changing Section 3-101 and by adding Sections 3-127, 3-128, | 7 | | and 8-513 as follows: | 8 | | (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101) | 9 | | Sec. 3-101. Definitions. Unless otherwise specified, the | 10 | | terms set forth in Sections 3-102 through 3-128 3-126 are used | 11 | | in this Act as therein defined. | 12 | | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; | 13 | | 97-813, eff. 7-13-12.) | 14 | | (220 ILCS 5/3-127 new) | 15 | | Sec. 3-127. Thermal energy. "Thermal energy" means piped | 16 | | noncombustible fluids used for transferring heat into and out | 17 | | of buildings for the purpose of reducing any resultant onsite | 18 | | greenhouse gas emissions of all types of heating and cooling | 19 | | processes, including, but not limited to, comfort heating and | 20 | | cooling, domestic hot water, and refrigeration. | 21 | | (220 ILCS 5/3-128 new) | 22 | | Sec. 3-128. Thermal energy network. "Thermal energy |
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| 1 | | network" means all real estate, fixtures, and personal | 2 | | property operated, owned, used, or to be used for, in | 3 | | connection with, or to facilitate a utility-scale distribution | 4 | | infrastructure project that supplies thermal energy. | 5 | | (220 ILCS 5/8-513 new) | 6 | | Sec. 8-513. Pilot thermal energy network development. | 7 | | (a) The Illinois Commerce Commission shall initiate a | 8 | | proceeding within 6 months after the effective date of this | 9 | | amendatory Act of the 103rd General Assembly to support the | 10 | | development of pilot thermal energy networks. The Commission | 11 | | shall consider matters in the proceeding, including, but not | 12 | | limited to, the appropriate ownership, market, and rate | 13 | | structures for pilot thermal energy networks and whether the | 14 | | provision of thermal energy services by thermal network energy | 15 | | providers is in the public interest. | 16 | | (b) Within 10 months after the effective date of this | 17 | | amendatory Act of the 103rd General Assembly, every gas public | 18 | | utility, electric public utility, or combination public | 19 | | utility serving over 100,000 customers shall file with the | 20 | | Commission a petition seeking Commission approval of at least | 21 | | one and no more than 3 proposed pilot thermal energy network | 22 | | projects. Designs for the projects should coordinate and | 23 | | maximize the value of existing State energy efficiency and | 24 | | weatherization programs and take advantage of federal funding | 25 | | opportunities to the extent practicable. No later than 18 |
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| 1 | | months after the effective date of this amendatory Act of the | 2 | | 103rd General Assembly, the Commission shall enter an order | 3 | | approving, approving with modification, or rejecting each | 4 | | proposed pilot thermal energy network project and shall direct | 5 | | the public utility to implement the pilot thermal energy | 6 | | network projects as approved or approved as modified. In | 7 | | considering whether to approve or approve as modified each | 8 | | pilot thermal energy network project, the Commission shall | 9 | | consider whether the pilot thermal energy network project is | 10 | | in the public interest, whether the pilot thermal energy | 11 | | network project will develop information useful for the | 12 | | Commission in adopting rules governing thermal energy | 13 | | networks, whether the pilot thermal energy network project | 14 | | furthers climate justice and emissions reduction, whether the | 15 | | pilot thermal energy network project advances financial and | 16 | | technical approaches to equitable and affordable building | 17 | | electrification, and whether the pilot thermal energy network | 18 | | project creates benefits to customers and society at large, | 19 | | including, but not limited to, public health benefits in areas | 20 | | with disproportionate environmental or public health burdens, | 21 | | job retention and creation, reliability, and increased | 22 | | affordability of renewable thermal energy options. After the | 23 | | filing of a petition, a utility may request the Commission to | 24 | | grant additional time for pilot development approval, which | 25 | | shall be approved for at least 6 months upon request or up to | 26 | | 12 months upon a showing that additional time would benefit |
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| 1 | | pilot development. | 2 | | (c) If a utility proposes 3 pilot thermal energy network | 3 | | projects, at least one project shall be proposed in | 4 | | economically disadvantaged communities as defined in Section | 5 | | 5-35 of the Energy Transition Act and at least one shall be | 6 | | focused on existing electric heat customers. Each public | 7 | | utility shall coordinate with other public utilities and | 8 | | consultants with expertise on successful pilot projects to | 9 | | ensure that the pilot projects are diverse and designed to | 10 | | inform the Commission's decisions in the proceeding on the | 11 | | various ownership, market, and rate structures for thermal | 12 | | energy networks. The pilot project proposals shall be made | 13 | | publicly available on the Commission's website. Utilities are | 14 | | encouraged to develop plans that enable and facilitate access | 15 | | to thermal loop technology benefits, including access by low | 16 | | and moderate income households. As part of any pilot project | 17 | | proposed pursuant to this Section, a public utility subject to | 18 | | this Section may propose to include customer rebates and | 19 | | incentives, and associated tariffs and proposed regulatory | 20 | | treatment, in a manner similar to what is included in | 21 | | Commission-approved electric energy efficiency plans pursuant | 22 | | to Section 8-103B of this Act. | 23 | | (d) Any gas public utility, electric public utility, or | 24 | | combination public utility constructing or operating a | 25 | | Commission-approved pilot thermal energy network project shall | 26 | | report to the Commission, on a quarterly basis and until |
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| 1 | | completion of the pilot thermal energy network project, as | 2 | | determined by the Commission, the status of each pilot thermal | 3 | | energy network project. The Commission shall post and make | 4 | | publicly available the reports on its website. The report | 5 | | shall include, but not be limited to: | 6 | | (1) the stage of development of each pilot project; | 7 | | (2) the barriers to development; | 8 | | (3) the number of customers served; | 9 | | (4) the costs of the pilot project; | 10 | | (5) the number of jobs retained or created by the | 11 | | pilot project; and | 12 | | (6) other information the Commission deems to be in | 13 | | the public interest or considers likely to prove useful or | 14 | | relevant to the rulemaking described in subsection (h). | 15 | | (e) Any gas public utility, electric public utility, or | 16 | | combination public utility constructing or operating a | 17 | | Commission-approved pilot thermal energy network project shall | 18 | | demonstrate that it has entered into a labor peace agreement | 19 | | with a bona fide labor organization that is actively engaged | 20 | | in representing its employees. The labor peace agreement shall | 21 | | apply to the employees necessary for the ongoing maintenance | 22 | | and operation of the thermal energy network. The labor peace | 23 | | agreement shall be an ongoing material condition of | 24 | | authorization to maintain and operate the thermal energy | 25 | | networks. | 26 | | (f) Any contractor or subcontractor that performs work on |
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| 1 | | a pilot thermal energy network under this Section shall be a | 2 | | responsible bidder as described in Section 30-22 of the | 3 | | Illinois Procurement Code and shall certify that not less than | 4 | | prevailing wage, as determined under the Prevailing Wage Act, | 5 | | was or will be paid to employees who are engaged in | 6 | | construction activities associated with the pilot thermal | 7 | | energy network project. The contractor or subcontractor shall | 8 | | submit evidence to the Commission that it complied with the | 9 | | requirements of this subsection. | 10 | | (g) For any pending application for a thermal energy | 11 | | network, the contractor or subcontractor shall submit evidence | 12 | | that the contractor or subcontractor has entered into a fully | 13 | | executed project labor agreement with the applicable local | 14 | | building trades council. The Commission shall not approve any | 15 | | pending applications until the contractor or subcontractor has | 16 | | submitted the information required under this subsection. | 17 | | (h) Within 4 years after the completion of the | 18 | | construction of all thermal energy network projects under this | 19 | | Section, the Commission shall adopt rules to, at a minimum: | 20 | | (1) create fair market access rules for thermal energy | 21 | | networks to accept thermal energy and that do not increase | 22 | | greenhouse gas emissions or copollutants; | 23 | | (2) to the extent it is in the public interest to do | 24 | | so, exempt small-scale thermal energy networks from active | 25 | | regulation by the Commission; | 26 | | (3) promote the training and transition of utility |
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| 1 | | workers impacted by this amendatory Act of the 103rd | 2 | | General Assembly; and | 3 | | (4) encourage third-party participation and | 4 | | competition where it will maximize benefits to customers. | 5 | | (i) A gas public utility, electric public utility, or | 6 | | combination public utility required to develop any pilot | 7 | | thermal energy network project under this Section shall be | 8 | | permitted to recover all reasonable and prudently incurred | 9 | | costs associated with the development, construction, and | 10 | | operation of one or more pilot thermal energy network projects | 11 | | through general rates set pursuant to Section 9-201 or through | 12 | | rates set in a Multi-Year Rate Plan pursuant to Section | 13 | | 16-108.18. The Commission shall have broad discretion in | 14 | | approving proposed pilot projects that are consistent with the | 15 | | public interest consistent with this Section and in approving | 16 | | all tariffs and issue other regulatory approvals as necessary | 17 | | to permit a pilot program that facilitates a full review of | 18 | | technologies, and associated policies, with respect to thermal | 19 | | network technology in this State. | 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.". |
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