HB4823 104TH GENERAL ASSEMBLY

LRB104 19410 AAS 32858 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4823

Introduced , by Rep. Lawrence "Larry" Walsh, Jr.

SYNOPSIS AS INTRODUCED:

See Index

Creates the Transmission Ownership and Reliability Act. Defines terms. Provides that all new electric transmission facilities located wholly or partly within the geographic boundaries of the State shall be owned, operated, and maintained exclusively by a Commission-regulated and investor-owned utility. Provides that any entity proposing to construct a new electric transmission facility in the State shall obtain a certificate of public convenience and necessity under the Public Utilities Act. Provides that the construction of electric transmission facilities shall comply with all provisions of the Electric Transmission Systems Construction Standards Act and that third-party constructors shall adhere to prevailing wage, safety, and diversity requirements under that Act. Sets forth rulemaking provisions. Provides that any entity that constructs or operates an electric transmission facility in violation of the Act may be subject to monetary penalties, revocation of certification, or transfer orders issued by the Commission. Amends the Illinois Works Jobs Program Act. Provides that, to qualify as a "community-based organization", an organization must demonstrate, among other things, a plan to provide the skills and knowledge necessary to obtain a commercial driver's license (CDL). Creates the Transmission Efficiency and Cooperation Law within the Public Utilities Act. Provides that an incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line that has been approved for construction in a transmission plan and that will connect to facilities that are owned by the incumbent electric transmission owner and are or will be under the functional control of a regional transmission operator. Provides that the right to construct, own, and maintain an electric transmission line belongs individually and proportionally to each incumbent electric transmission owner, unless otherwise agreed upon in writing. Provides that proportionality shall be determined based on the location of the electric transmission line relative to each incumbent electric transmission owner's retail service territory. Provides that an incumbent electric transmission owner may assign its right to construct, own, and maintain an electric transmission line to a transmission affiliate. Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Transmission Ownership and Reliability Act.

Section 5. Legislative findings. The General Assembly finds that:

(1) The reliable operation of the electric transmission grid in Illinois is a matter of vital public interest and is essential to the health, safety, and welfare of the State's residents and businesses.

(2) Investor-owned public utilities regulated by the Commission have demonstrated long-standing operational competence, accountability, and maintenance of ratepayer protections under Illinois law.

(3) The increasing participation of unregulated or out-of-state entities in transmission development has created potential risks to grid reliability, transparency, and consumer protection.

(4) Ensuring that all transmission assets located in Illinois remain under the ownership, operational control, and maintenance of Commission-regulated public utilities will preserve safety, reliability, and local oversight while enabling continued renewable energy development and regional integration.

Section 10. Purpose. It is the purpose of this Act to:

(1) require that ownership, operation, and maintenance of all electric transmission facilities within Illinois rest solely with Commission-regulated and investor-owned utilities;

(2) allow third-party developers, contractors, and construction entities to design and construct electric transmission facilities under contract if ownership and operational control are transferred to a Commission-regulated and investor-owned utility; and

(3) ensure consistent regulation, safety standards, and consumer accountability across all transmission assets in Illinois.

Section 15. Definitions. As used in this Act:

"Commission" means the Illinois Commerce Commission.

"Electric transmission facility" or "transmission asset" means any line, pole, tower, substation, converter station, or other infrastructure operated at a nominal voltage of 69 kilovolts or higher for the transmission of electric power.

"Commission-regulated and investor-owned utility" means a public utility, as defined in Section 3-105 of the Public Utilities Act, that is headquartered and incorporated in this State and subject to rate regulation by the Commission.

"Third-party constructor" means a non-utility entity that designs, constructs, or installs an electric transmission facility for compensation and that does not operate as a public utility under State law.

Section 20. Ownership and operational control.

(a) All new electric transmission facilities located wholly or partly within the geographic boundaries of this State shall be owned, operated, and maintained exclusively by a Commission-regulated and investor-owned utility.

(b) Nothing in this Section prohibits a third-party constructor from performing engineering, procurement, construction, or commissioning work on new electric transmission facilities if the following criteria are met:

(1) legal and operational ownership of the electric transmission facility transfers to the Commission-regulated and investor-owned utility before initial energization; and

(2) the third-party constructor has no ongoing ownership interest in or operational control of the electric transmission facility following commercial operation.

(c) The Commission shall ensure compliance with this Section as part of any certificate of public convenience and necessity issued under Section 8-406 or 8-406.1 of the Public Utilities Act.

Section 25. Certificate proceedings; coordination with the Public Utilities Act.

(a) Any entity proposing to construct a new electric transmission facility in this State shall obtain a certificate of public convenience and necessity under Section 8-406.1 of the Public Utilities Act.

(b) The Commission shall not issue a certificate of public convenience and necessity unless an applicant demonstrates that final ownership and operational control of a new electric transmission facility will vest in a Commission-regulated and investor-owned utility.

(c) The Commission may require documentation of transfer agreements, ownership assignments, and maintenance plans as a condition of certification.

Section 30. Safety, labor, and training standards.

(a) Construction of electric transmission facilities shall comply with all provisions of the Electric Transmission Systems Construction Standards Act.

(b) Third-party constructors shall adhere to prevailing wage, safety, and diversity requirements under the Electric Transmission Systems Construction Standards Act.

(c) A Commission-regulated and investor-owned utility assuming ownership of an electric transmission facility shall ensure continuing compliance with all applicable Commission reliability, maintenance, and safety rules.

Section 35. Enforcement; rulemaking.

(a) The Commission shall adopt rules to enforce this Act, including rules regarding reporting, transferring documentation, and imposing civil penalties for noncompliance.

(b) Any entity that constructs or operates an electric transmission facility in violation of this Act may be subject to monetary civil penalties, revocation of certification, or transfer orders issued by the Commission.

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 100. The Illinois Works Jobs Program Act is amended by changing Section 20-10 as follows:

(30 ILCS 559/20-10)

Sec. 20-10. Definitions.

"Apprentice" means a participant in an apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.

"Apprenticeship program" means an apprenticeship and training program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.

"Bid credit" means a virtual dollar for a contractor or subcontractor to use toward future bids on contracts with the State for public works projects.

"Community-based organization" means a nonprofit organization, including an accredited public college or university, selected by the Department to participate in the Illinois Works Preapprenticeship Program. To qualify as a "community-based organization", the organization must demonstrate the following:

(1) the ability to effectively serve diverse and underrepresented populations, including by providing employment services to such populations;

(2) knowledge of the construction and building trades;

(3) the ability to recruit, prescreen, and provide preapprenticeship training to prepare workers for employment in the construction and building trades; and

(4) a plan to provide the following:

(A) preparatory classes;

(B) workplace readiness skills, such as resume preparation and interviewing techniques;

(C) strategies for overcoming barriers to entry and completion of an apprenticeship program; and

(D) any prerequisites for acceptance into an apprenticeship program; and .

(E) the skills and knowledge necessary to obtain a commercial driver's license (CDL).

"Contractor" means a person, corporation, partnership, limited liability company, or joint venture entering into a contract to construct a public work.

"Department" means the Department of Commerce and Economic Opportunity.

"Labor hours" means the total hours for workers who are receiving an hourly wage and who are directly employed for the public works project. "Labor hours" includes hours performed by workers employed by the contractor and subcontractors on the public works project. "Labor hours" does not include hours worked by the forepersons, superintendents, owners, and workers who are not subject to prevailing wage requirements.

"Minorities" means minority persons as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"Public works" means all projects, contracted or funded by the State or any agency of the State, in whole or in part, from appropriated capital funds, that constitute public works under the Prevailing Wage Act.

"Subcontractor" means a person, corporation, partnership, limited liability company, or joint venture that has contracted with the contractor to perform all or part of the work to construct a public work by a contractor.

"Underrepresented populations" means populations identified by the Department that historically have had barriers to entry or advancement in the workforce. "Underrepresented populations" includes, but is not limited to, minorities, women, and veterans.

(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)

Section 200. The Public Utilities Act is amended by adding Article XXIV as follows:

(220 ILCS 5/Art. XXIV heading new)

ARTICLE XXIV. TRANSMISSION EFFICIENCY AND COOPERATION LAW

(220 ILCS 5/24-100 new)

Sec. 24-100. Short title. This Article may be cited as the Transmission Efficiency and Cooperation Law.

(220 ILCS 5/24-105 new)

Sec. 24-105. Incumbent electric transmission owner rights.

(a) As used in this Section:

"Electric transmission line" means a transmission line that is designed and constructed with the capability of being safely and reliably energized at 100 kilovolts or more and its associated transmission facilities, including transmission substations. "Electric transmission line" does not include electric transmission lines located on an electric generating facility's side of the facility's point of interconnection with an incumbent electric transmission line owner.

"Incumbent electric transmission owner" means any public utility, municipal corporation, or electric cooperative that owns, operates, and maintains at least one electric transmission line in this State.

"Regional transmission operator" means a regional transmission organization, independent system operator, or equivalent entity approved by the Federal Energy Regulatory Commission, or its successor agency, that exercises functional control over electric transmission lines located in this State.

"Transmission affiliate" means any company that (i) has been issued a certificate of public convenience and necessity in this State authorizing the company to own and operate an electric transmission line and (ii) is an electric utility, as defined in Section 16-102, in this State or an affiliate of an electric utility through a common ownership structure.

"Transmission plan" means a transmission plan adopted by a regional transmission operator.

(b) An incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line that has been approved for construction in a transmission plan and that will connect to facilities that are owned by the incumbent electric transmission owner and that are or will be, once construction is completed, under the functional control of a regional transmission operator. The right to construct, own, and maintain an electric transmission line that will connect to facilities owned by 2 or more incumbent electric transmission owners belongs individually and proportionally to each incumbent electric transmission owner, unless otherwise agreed upon in writing. Proportionality shall be determined based on the location of the electric transmission line relative to each incumbent electric transmission owner's retail service territory. An incumbent electric transmission owner shall be permitted to assign its right to construct, own, and maintain an electric transmission line to a transmission affiliate.

(c) Nothing in this Section limits the right of any incumbent electric transmission owner to construct, own, and maintain any transmission equipment or facilities that have a capacity of less than 100 kilovolts or the right of any entity otherwise qualified under this Act to own, operate, and maintain electric transmission facilities that are not approved for construction in a transmission plan or that will not connect to facilities under the functional control of a regional transmission operator.

(d) Nothing in this Section shall be construed to impair, abridge, or diminish in any way the powers, rights, and privileges of municipal corporations that are not incumbent electric transmission owners to partner with an incumbent electric transmission owner on the development and ownership of an electric transmission line included in a transmission plan or to develop, construct, own, operate, maintain, upgrade, and renew facilities that are not included in a transmission plan but that are necessary or convenient in the provision of electric service, directly or indirectly, to citizens and businesses located in the service areas of municipal systems, as that term is described in Section 17-100, including the rights of the municipal systems and of municipal power agencies, as defined in Section 11-119.1-3 of the Illinois Municipal Code, to develop, construct, own, operate, maintain, upgrade, and renew such electric transmission lines and related facilities.

(e) Nothing in this Section shall relieve an incumbent electric transmission owner asserting its right to construct an electric transmission line, or a transmission affiliate of an incumbent electric transmission owner, as applicable, of the requirement to file an application for a certificate of public convenience and necessity to the extent otherwise required by this Act.

(f) Within 90 days after the effective date of this amendatory Act of the 104th General Assembly or the date of approval of the construction of an electric transmission line by a regional transmission operator, whichever is later, an incumbent electric transmission owner otherwise authorized to engage in construction under this Section may provide notice to the Commission and the applicable regional transmission operator indicating that it will not construct any or all of the approved electric transmission line or that it will assign any or all of the construction to a transmission affiliate. If the incumbent electric transmission owner elects to not construct any or all of the approved electric transmission line, the incumbent electric transmission owner shall indicate the reason for that election, and the Commission may grant permission and approval for such construction to another entity otherwise qualified to own and operate the electric transmission line under this Act.

Section 999. Effective date. This Act takes effect upon becoming law.