103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5897

 

Introduced 11/12/2024, by Rep. Tony M. McCombie

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 5/9.15

    Amends the Environmental Protection Act. In a provision regarding greenhouse gases, extends deadlines by 5 years for reduced or zero carbon dioxide equivalent and copollutant emissions by certain electric generating units and large greenhouse gas-emitting units.


LRB103 42659 BDA 75892 b

 

 

A BILL FOR

 

HB5897LRB103 42659 BDA 75892 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 or is otherwise not addressed in this Section
13or by the Board in regulations for greenhouse gases. These
14exemptions do not relieve an owner or operator from the
15obligation to comply with other applicable rules or
16regulations.
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 or is
21otherwise not addressed in this Section or by the Board in
22regulations for greenhouse gases. These exemptions do not
23relieve an owner or operator from the obligation to comply

 

 

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1with other applicable rules or regulations.
2    (c) (Blank).
3    (d) (Blank).
4    (e) (Blank).
5    (f) As used in this Section:
6    "Carbon dioxide emission" means the plant annual CO2 total
7output emission as measured by the United States Environmental
8Protection Agency in its Emissions & Generation Resource
9Integrated Database (eGrid), or its successor.
10    "Carbon dioxide equivalent emissions" or "CO2e" means the
11sum total of the mass amount of emissions in tons per year,
12calculated by multiplying the mass amount of each of the 6
13greenhouse gases specified in Section 3.207, in tons per year,
14by its associated global warming potential as set forth in 40
15CFR 98, subpart A, table A-1 or its successor, and then adding
16them all together.
17    "Cogeneration" or "combined heat and power" refers to any
18system that, either simultaneously or sequentially, produces
19electricity and useful thermal energy from a single fuel
20source.
21    "Copollutants" refers to the 6 criteria pollutants that
22have been identified by the United States Environmental
23Protection Agency pursuant to the Clean Air Act.
24    "Electric generating unit" or "EGU" means a fossil
25fuel-fired stationary boiler, combustion turbine, or combined
26cycle system that serves a generator that has a nameplate

 

 

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

 

 

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

 

 

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1hydrogen, in a manner that produces zero carbon and
2copollutant emissions, using hydrogen fuel that is
3electrolyzed using a 100% renewable zero carbon emission
4energy source.
5    "Large greenhouse gas-emitting unit" or "large
6GHG-emitting unit" means a unit that is an electric generating
7unit or other fossil fuel-fired unit that itself has a
8nameplate capacity or serves a generator that has a nameplate
9capacity greater than 25 MWe and that produces electricity,
10including, but not limited to, coal-fired, coal-derived,
11oil-fired, natural gas-fired, and cogeneration units.
12    "NOx emission rate" means the plant annual NOx total output
13emission rate as measured by the United States Environmental
14Protection Agency in its Emissions & Generation Resource
15Integrated Database (eGrid), or its successor, in the most
16recent year for which data is available.
17    "Public greenhouse gas-emitting units" or "public
18GHG-emitting unit" means large greenhouse gas-emitting units,
19including EGUs, that are wholly owned, directly or indirectly,
20by one or more municipalities, municipal corporations, joint
21municipal electric power agencies, electric cooperatives, or
22other governmental or nonprofit entities, whether organized
23and created under the laws of Illinois or another state.
24    "SO2 emission rate" means the "plant annual SO2 total
25output emission rate" as measured by the United States
26Environmental Protection Agency in its Emissions & Generation

 

 

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1Resource Integrated Database (eGrid), or its successor, in the
2most recent year for which data is available.
3    (g) All EGUs and large greenhouse gas-emitting units that
4use coal or oil as a fuel and are not public GHG-emitting units
5shall permanently reduce all CO2e and copollutant emissions to
6zero no later than January 1, 2035 2030.
7    (h) All EGUs and large greenhouse gas-emitting units that
8use coal as a fuel and are public GHG-emitting units shall
9permanently reduce CO2e emissions to zero no later than
10December 31, 2050 2045. Any source or plant with such units
11must also reduce their CO2e emissions by 45% from existing
12emissions by no later than January 1, 2040 2035. If the
13emissions reduction requirement is not achieved by December
1431, 2040 2035, the plant shall retire one or more units or
15otherwise reduce its CO2e emissions by 45% from existing
16emissions by June 30, 2043 2038.
17    (i) All EGUs and large greenhouse gas-emitting units that
18use gas as a fuel and are not public GHG-emitting units shall
19permanently reduce all CO2e and copollutant emissions to zero,
20including through unit retirement or the use of 100% green
21hydrogen or other similar technology that is commercially
22proven to achieve zero carbon emissions, according to the
23following:
24        (1) No later than January 1, 2035 2030: all EGUs and
25    large greenhouse gas-emitting units that have a NOx
26    emissions rate of greater than 0.12 lbs/MWh or a SO2

 

 

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1    emission rate of greater than 0.006 lb/MWh, and are
2    located in or within 3 miles of an environmental justice
3    community designated as of January 1, 2021 or an equity
4    investment eligible community.
5        (2) No later than January 1, 2045 2040: all EGUs and
6    large greenhouse gas-emitting units that have a NOx
7    emission rate of greater than 0.12 lbs/MWh or a SO2
8    emission rate greater than 0.006 lb/MWh, and are not
9    located in or within 3 miles of an environmental justice
10    community designated as of January 1, 2021 or an equity
11    investment eligible community. After January 1, 2040 2035,
12    each such EGU and large greenhouse gas-emitting unit shall
13    reduce its CO2e emissions by at least 50% from its existing
14    emissions for CO2e, and shall be limited in operation to,
15    on average, 6 hours or less per day, measured over a
16    calendar year, and shall not run for more than 24
17    consecutive hours except in emergency conditions, as
18    designated by a Regional Transmission Organization or
19    Independent System Operator.
20        (3) No later than January 1, 2040 2035: all EGUs and
21    large greenhouse gas-emitting units that began operation
22    prior to September 15, 2021 (the effective date of Public
23    Act 102-662), the effective date of this amendatory Act of
24    the 102nd General Assembly and have a NOx emission rate of
25    less than or equal to 0.12 lb/MWh and a SO2 emission rate
26    less than or equal to 0.006 lb/MWh, and are located in or

 

 

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1    within 3 miles of an environmental justice community
2    designated as of January 1, 2021 or an equity investment
3    eligible community. Each such EGU and large greenhouse
4    gas-emitting unit shall reduce its CO2e emissions by at
5    least 50% from its existing emissions for CO2e no later
6    than January 1, 2035 2030.
7        (4) No later than January 1, 2045 2040: All remaining
8    EGUs and large greenhouse gas-emitting units that have a
9    heat rate greater than or equal to 7000 BTU/kWh. Each such
10    EGU and Large greenhouse gas-emitting unit shall reduce
11    its CO2e emissions by at least 50% from its existing
12    emissions for CO2e no later than January 1, 2040 2035.
13        (5) No later than January 1, 2050 2045: all remaining
14    EGUs and large greenhouse gas-emitting units.
15    (j) All EGUs and large greenhouse gas-emitting units that
16use gas as a fuel and are public GHG-emitting units shall
17permanently reduce all CO2e and copollutant emissions to zero,
18including through unit retirement or the use of 100% green
19hydrogen or other similar technology that is commercially
20proven to achieve zero carbon emissions by January 1, 2050
212045.
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, 2050 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.)