SB2146 104TH GENERAL ASSEMBLY

LRB104 10692 HLH 20771 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2146

Introduced 2/7/2025, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

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.

A BILL FOR

AN ACT concerning State government.

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 Advancing Federally Regulated Illinois Transmission Projects Act.

Section 5. Legislative findings. The General Assembly finds that federally regulated interconnection procedures delay and impair infrastructure necessary for the resilience, reliability, and clean energy transition envisioned in Public Act 102-662 (the "Climate and Equitable Jobs Act") and other Acts. The General Assembly further finds that the State's leading role in quantum computing, data centers, battery manufacturing, and other new economic initiatives requires resilient and reliable electric systems. The General Assembly further finds that the Department is uniquely situated to reduce those delays and impairments for specific electricity transmission infrastructure located partially or wholly within the Illinois footprint of PJM Interconnection, L.L.C. by initiating and managing on behalf of the State the State Agreement Approach for transmission expansion that addresses Illinois public policy requirements. The General Assembly finds that the health, welfare, and prosperity of residents of the State is furthered by the Department pursuing the State Agreement Approach for projects that meet the resilience, reliability, and clean energy goals of the Climate and Equitable Jobs Act.

Section 10. Definitions. As used in this Act:

"Commission" means the Illinois Commerce Commission.

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

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

"FERC" means the Federal Energy Regulatory Commission.

"PJM Operating Agreement" means the Amended and Restated Operating Agreement of PJM Interconnection, L.L.C., as may be amended from time to time, or its successor.

"PJM" means PJM Interconnection, L.L.C., or its successor.

"Project" means a proposed or existing electric transmission line wholly or in part within the Illinois footprint of PJM.

"State Agreement Approach" or "SAA" means the State Agreement Approach process for the development and allocation of costs for transmission expansion projects that address State public policy requirements as described in Section 1.5.9 of Schedule 6 of the PJM Operating Agreement, as may be amended from time to time, or its successor.

Section 15. Initiation. The Department is authorized to 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. The Director may consider any information that the Director determines is relevant, including studies or reports regarding the expected impact of Projects. Upon identification of such a Project by the Director, the Department shall enter into an agreement on behalf of the State with the owner of the Project reflecting the intent of the State to have the Project participate in the PJM State Agreement Approach, for cooperation between the Project and the Department, and for exchange of information including appropriate protocols for confidential, proprietary, and critical infrastructure information. The agreement may provide for reimbursement of reasonable costs incurred by the Department under the agreement or under Section 20 of this Act.

Prior to entering into an agreement with any other Project under the terms of this Section, the Department shall enter into a contract with a Project that meets the following criteria:

(1) more than 75 miles of transmission line from the Project will be built on easements or rights-of-way of existing infrastructure, including railroad rights-of-way, municipal rights-of-way or highway rights-of-way within the State;

(2) more than 80 miles of transmission line from the Project will be built underground within the State;

(3) the portion of the Project within the State will meet the definition of a high voltage direct current transmission facility once built;

(4) the Project connects 2 or more regional transmission organizations; and

(5) the Project will transmit electricity at on the high voltage direct current transmission facility at a design voltage of 500 kV or greater.

Section 20. Applications. Upon execution of the agreement identified in Section 15 of this Act by the Department and the owner of the Project, the Department shall inform PJM in a manner consistent with PJM's Operating Agreement, of the Department's intention to pursue the SAA for the Project on behalf of the State. If and only if the Project does not require the use of eminent domain within the State pursuant to Section 8-509 of the Public Utilities Act or otherwise under law, the Department shall explicitly state in such notice that the Project is not subject to competitive bidding. The notice to PJM shall include an affirmative statement that the costs of the Project will be borne by Illinois ratepayers.

Following the initial notice and application to PJM, the Department shall make such filings and prepare and provide such documents and other materials, or assist PJM with such filings, documents, or information, or participate in such hearings, meetings, or other communications as may be necessary or helpful in facilitating PJM's use of the SAA to allocate the costs of the Project using a FERC-accepted cost allocation proposed by the Department to recover costs from customers within the State, including a proposal for allocating the costs of the Project under PJM's tariffs, as may be modified from time to time, and entering into agreements with PJM as appropriate to implement the SAA for the Project. Such cost allocation proposed by the Department to PJM for acceptance by FERC shall provide that all costs related to the Project shall be recovered from customers located in the State of Illinois and may not include customers in any other state unless such other state voluntarily agrees to be responsible for such cost allocation. The Department shall coordinate with the Project as necessary.

Section 25. Department filings. The Department shall make such filings and prepare and provide such documents and other materials for FERC and PJM as may be reasonably necessary to qualify generators utilizing the Project as a capacity resource with PJM, as defined under PJM's tariffs, as may be modified from time to time.

Section 900. The Public Utilities Act is amended by adding Section 8-406.3 as follows:

(220 ILCS 5/8-406.3 new)

Sec. 8-406.3. State Agreement Approach.

(a) The General Assembly finds that development and operation of interregional electric transmission facilities can substantially improve the resilience and reliability of the bulk electric system and substantially advance the public policy goals of this State, including implementation of Public Act 102-0662 and subparagraphs (B) and (C) of paragraph (1) of subsection (c) of Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act. The General Assembly further finds that the health, welfare, and prosperity of all Illinois residents is advanced by transmission projects that improve resilience, reliability, and access to clean energy and that the Commission has the authority to issue a certificate of public convenience and necessity under Section 8-406 of this Article to such transmission projects. However, the General Assembly further finds that in order to advance such transmission projects through federal approvals not directly regulated by the Commission or the State, the State can and should utilize available tools to simplify and streamline federal processes to obtain federal approval for electric transmission projects issued a certificate of public convenience and necessity under Section 8-406 of this Act, such as the State Agreement Approach offered by PJM Interconnection, L.L.C.

(b) As used in this Section:

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

"PJM" means PJM Interconnection, L.L.C., or its successor.

"PJM Operating Agreement" means the Amended and Restated Operating Agreement of PJM Interconnection, L.L.C. as may be amended from time to time or its successor.

"Project" means a proposed or existing electric transmission line wholly or in part within the Illinois footprint of PJM that meets the criteria set forth in Section 15 of the Advancing Federally Regulated Illinois Transmission Projects Act.

"State Agreement Approach" or "SAA" means the State Agreement Approach process for the development and allocation of costs for transmission expansion projects that address State public policy requirements as described in Section 1.5.9 of Schedule 6 of the PJM Operating Agreement as may be amended from time to time or its successor.

(c) For any applicant for a certificate of public convenience and necessity under Section 8-406 of this Article seeking permission to construct, own, or operate a Project:

(1) The applicant, with its initial submission to the Commission under subsection (b) of Section 8-406 of this Article, may include a statement from the Department that the Department has or plans to submit the Project to PJM for inclusion under the SAA.

(2) If the applicant does not hold a certificate of service authority as a public utility with the Commission, the Commission shall accept the statement from the Department as prima facie evidence that the Project is and will be for public use.

(3) In evaluating the requirements of subsection (d) of Section 8-406, the Commission shall evaluate whether the Project is a reasonable method of developing, constructing, and operating an electric transmission facility with the same technology, attributes, location and purpose as the Project while ensuring adequate safety, reliability, and environmental benefit.

(4) In the final order granting the certificate of public convenience and necessity for the Project, the Commission shall explicitly:

(A) state that the Project is intended and expected to participate in the PJM SAA; and

(B) require that, if the Project enters into a contract to provide services to one or more customers, revenue from those contracts shall be disclosed to the Commission annually on a confidential basis and, consistent with and to the maximum extent allowable by law, that revenue shall offset costs otherwise recoverable from Illinois ratepayers.

(5) The Commission shall grant a certificate of service authority for applicant as a public utility and a certificate of public convenience and necessity as described in Section 8-406 except that if the applicant does not seek authority pursuant to Section 8-509 of this Article:

(A) Subsections (h) and (i) of Section 8-406 do not apply;

(B) The Commission shall issue a final order approving the application for the certificate of service authority and certificate of public convenience and necessity not later than 240 days following the initial application; and

(C) The Commission's final order shall explicitly state that the Project is not intended for competitive bidding under the SAA unless the applicant explicitly requests competitive bidding in its initial application.

(d) Project Labor Agreement. Notwithstanding any other provision of law, the Commission shall make an explicit condition of any certificate of public convenience and necessity that any general contractor constructing any portion of the Project within the State must enter into one or more project labor agreements, as such term is defined in Section 1-10 of the Illinois Power Agency Act.

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