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1 | AN ACT concerning utilities.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be referred to as
the | |||||||||||||||||||||||||||||
5 | Thermal Energy Network and Jobs Act.
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6 | Section 5. Legislative findings and intent. | |||||||||||||||||||||||||||||
7 | (a) The General Assembly finds and
declares that:
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8 | (1) This State has a strong interest in ensuring that | |||||||||||||||||||||||||||||
9 | building emissions are kept at a minimum. Buildings are | |||||||||||||||||||||||||||||
10 | one of this State's largest sources of greenhouse gases | |||||||||||||||||||||||||||||
11 | and other climate emissions due to the combustion of
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12 | fossil fuels for heating, domestic hot water, cooking, and | |||||||||||||||||||||||||||||
13 | other end uses.
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14 | (2) The decarbonization of buildings must be pursued | |||||||||||||||||||||||||||||
15 | in a manner that
is affordable, accessible, preserves and | |||||||||||||||||||||||||||||
16 | creates living-wage jobs, and
retains the knowledge and | |||||||||||||||||||||||||||||
17 | experience of the existing utility union workforce.
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18 | (3) Thermal energy networks have the potential to | |||||||||||||||||||||||||||||
19 | decarbonize buildings
at the community and utility scale.
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20 | (4) Thermal energy networks consist of pipe loops | |||||||||||||||||||||||||||||
21 | between multiple
buildings and energy sources carrying | |||||||||||||||||||||||||||||
22 | water at ambient temperature. Building owners can connect | |||||||||||||||||||||||||||||
23 | to the ambient temperature loops with water
heating and |
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1 | cooling and hot water services.
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2 | (5) Many utilities in this State have been seeking to | ||||||
3 | develop thermal energy networks, but legal and regulatory | ||||||
4 | barriers and the current, and outdated, Public Utilities | ||||||
5 | Act framework have prevented them from moving these | ||||||
6 | proposals forward.
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7 | (6) This State has a strong interest in ensuring an | ||||||
8 | adequate supply
of reliable electrical power and, | ||||||
9 | therefore, needs to promote the development of alternative | ||||||
10 | power sources and take steps to assure reliable
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11 | deliverability. Thermal energy networks are highly | ||||||
12 | efficient because
they utilize and exchange thermal energy | ||||||
13 | from many underground sources
and buildings, including | ||||||
14 | recycled thermal energy, which minimizes impact on
the | ||||||
15 | electricity grid.
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16 | (7) Access to thermal energy networks has the | ||||||
17 | potential to reduce the
up-front and operating costs of | ||||||
18 | building electrification for customers.
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19 | (8) A utility's access to capital, the utility's | ||||||
20 | experience with networked
infrastructure in public | ||||||
21 | rights-of-way, and the requirement that the utility
serve | ||||||
22 | all customers positions the utility well to develop and | ||||||
23 | scale thermal
energy networks that are accessible to all | ||||||
24 | customers and to coordinate
the development of thermal | ||||||
25 | energy networks with any downsizing of the
utility gas | ||||||
26 | system.
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1 | (9) This State also has a proprietary interest in the | ||||||
2 | efficient and
reliable delivery of energy and the energy | ||||||
3 | infrastructure of the State,
which interest is | ||||||
4 | acknowledged throughout the Public Utilities Act. Utility | ||||||
5 | corporations and other power suppliers share these | ||||||
6 | interests and, moreover, have a duty to protect | ||||||
7 | proprietary interests in the projects they fund. Such | ||||||
8 | investments of ratepayer resources can be protected by | ||||||
9 | establishing effective contractor qualification and | ||||||
10 | performance standards, including requirements for | ||||||
11 | prevailing wage rates, bona fide apprenticeship criteria, | ||||||
12 | and project labor agreements.
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13 | (10) The construction industry is highly skilled and | ||||||
14 | labor intensive,
and the installation of modern thermal | ||||||
15 | energy networks involves particularly complex work. | ||||||
16 | Therefore, effective qualification standards
for craft | ||||||
17 | labor personnel employed on these projects are critically
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18 | needed to promote successful project delivery.
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19 | (11) Finally, these findings are especially vital now | ||||||
20 | because the construction industry is experiencing | ||||||
21 | widespread skill shortages across the country, which are | ||||||
22 | crippling existing capital projects and threatening | ||||||
23 | projects planned for the future. The construction of | ||||||
24 | thermal energy networks will utilize many of the same | ||||||
25 | skills that the current utility and building trades | ||||||
26 | workforces already possess.
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1 | (b) It is the intent of the General Assembly that passage | ||||||
2 | of this Act is for the following purposes: | ||||||
3 | (1) to remove the legal barriers to utility | ||||||
4 | development of thermal
energy networks and require the | ||||||
5 | Illinois Commerce Commission to authorize and direct | ||||||
6 | utilities to immediately commence piloting thermal energy | ||||||
7 | networks in each and every utility territory;
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8 | (2) to direct and authorize the Illinois Commerce | ||||||
9 | Commission to develop a regulatory structure for utility | ||||||
10 | thermal energy networks that scales affordable and | ||||||
11 | accessible building electrification, protects customers, | ||||||
12 | and balances the role of incumbent monopoly utilities with | ||||||
13 | other market and public actors;
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14 | (3) to promote the successful planning and delivery of | ||||||
15 | thermal energy
networks and protect critical investments | ||||||
16 | in such projects by requiring the use of appropriate | ||||||
17 | quality craft labor policies that ensure the development | ||||||
18 | of and access to an adequate supply of well trained, | ||||||
19 | highly skilled craft persons needed to support timely, | ||||||
20 | reliable, high-quality projects;
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21 | (4) to promote strong economic development and good | ||||||
22 | jobs for local
residents in the expanding decarbonized | ||||||
23 | sector by requiring application of progressive State labor | ||||||
24 | and employment policies that ensure public utility | ||||||
25 | investments and related State subsidies create | ||||||
26 | unparalleled skill training and employment opportunities |
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1 | for residents in project areas through the use of local | ||||||
2 | prevailing wage standards and successful, bona fide | ||||||
3 | apprenticeship programs or project labor agreements that | ||||||
4 | incorporate prevailing wage and training standards and | ||||||
5 | provide additional benefits for project owners and | ||||||
6 | workers; and
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7 | (5) to promote the use of preapprenticeship programs | ||||||
8 | that will fortify and expand existing apprenticeship | ||||||
9 | programs through systematic outreach efforts to recruit | ||||||
10 | and assist persons from underrepresented and low income | ||||||
11 | communities by providing such persons with remedial | ||||||
12 | education, social services, and unique opportunities for | ||||||
13 | direct access into high-quality apprenticeship programs | ||||||
14 | and gainful employment in the growing building | ||||||
15 | decarbonization workforce.
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16 | Section 10. The Illinois Power Agency Act is amended by | ||||||
17 | adding Section 1-83 as follows: | ||||||
18 | (20 ILCS 3855/1-83 new) | ||||||
19 | Sec. 1-83. Pilot thermal energy network projects. No later | ||||||
20 | than 3 months
after the effective date of this amendatory Act | ||||||
21 | of the 103rd General Assembly, the Resource Development | ||||||
22 | Bureau, the Agency, and the Agency's service provider shall | ||||||
23 | submit for review to the Commission at least one and as many as | ||||||
24 | 5 proposed pilot thermal energy network projects as described |
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1 | in Section 8-513 of the Public Utilities Act. No later than 6 | ||||||
2 | months after the effective date of this amendatory Act of the | ||||||
3 | 103rd General Assembly, and upon recommendation by the Agency, | ||||||
4 | the Commission shall determine whether it is in the public | ||||||
5 | interest to approve or modify such pilot thermal energy | ||||||
6 | network projects and shall direct the service provider to | ||||||
7 | implement such proposed or modified pilot thermal energy | ||||||
8 | network projects. The Commission shall adopt rules consistent | ||||||
9 | with the standards set forth in subsections (b) and (c) of | ||||||
10 | Section 8-513 of the Public Utilities Act. | ||||||
11 | Section 905. The Public Utilities Act is amended by | ||||||
12 | changing Sections 3-101 and 3-105 and by adding Sections | ||||||
13 | 3-127, 3-128, and 8-513 as follows:
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14 | (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101)
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15 | Sec. 3-101. Definitions. Unless otherwise specified, the | ||||||
16 | terms set forth
in Sections 3-102 through 3-128 3-126 are used | ||||||
17 | in this Act as therein defined.
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18 | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; | ||||||
19 | 97-813, eff. 7-13-12.)
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20 | (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
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21 | Sec. 3-105. Public utility. | ||||||
22 | (a) "Public utility" means and includes, except where
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23 | otherwise expressly provided in this Section, every |
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1 | corporation, company,
limited liability company, association, | ||||||
2 | joint stock company or association,
firm, partnership or | ||||||
3 | individual, their lessees, trustees, or receivers
appointed by | ||||||
4 | any court whatsoever that owns, controls, operates or manages,
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5 | within this State, directly or indirectly, for public use, any | ||||||
6 | plant, equipment
or property used or to be used for or in | ||||||
7 | connection with, or owns or controls
any franchise, license, | ||||||
8 | permit , or right to engage in:
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9 | (1) the production, storage, transmission, sale, | ||||||
10 | delivery , or furnishing of
heat, cold, power, electricity, | ||||||
11 | water, or light, except when used solely for
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12 | communications purposes;
| ||||||
13 | (2) the disposal of sewerage; or
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14 | (3) the conveyance of oil or gas by pipe line ; or .
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15 | (4) a thermal energy network. | ||||||
16 | (b) "Public utility" does not include, however:
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17 | (1) public utilities that are owned and operated by | ||||||
18 | any political
subdivision, public institution of higher | ||||||
19 | education or municipal
corporation of this State, or | ||||||
20 | public utilities that are owned by such
political | ||||||
21 | subdivision, public institution of higher education, or
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22 | municipal corporation and operated by any of its lessees | ||||||
23 | or operating agents;
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24 | (2) water companies which are purely mutual concerns, | ||||||
25 | having no rates
or charges for services, but paying the | ||||||
26 | operating expenses by assessment
upon the members of such |
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1 | a company and no other person;
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2 | (3) electric cooperatives as defined in Section 3-119;
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3 | (4) the following natural gas cooperatives:
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4 | (A) residential natural gas cooperatives that are | ||||||
5 | not-for-profit
corporations
established for the | ||||||
6 | purpose of administering and operating, on
a | ||||||
7 | cooperative basis, the furnishing of natural gas to | ||||||
8 | residences for the
benefit of their members
who are | ||||||
9 | residential consumers of natural gas. For
entities | ||||||
10 | qualifying as residential
natural gas cooperatives and | ||||||
11 | recognized
by the Illinois Commerce Commission as | ||||||
12 | such, the State shall guarantee
legally binding | ||||||
13 | contracts entered into by residential
natural gas
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14 | cooperatives for the express purpose of acquiring | ||||||
15 | natural gas supplies for
their members. The Illinois | ||||||
16 | Commerce Commission shall establish rules and
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17 | regulations providing for such guarantees. The total | ||||||
18 | liability of the
State in providing all such | ||||||
19 | guarantees shall not at any time exceed
$1,000,000, | ||||||
20 | nor shall the State provide such a guarantee to a | ||||||
21 | residential
natural gas cooperative for more than 3 | ||||||
22 | consecutive years; and
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23 | (B) natural gas cooperatives that are | ||||||
24 | not-for-profit corporations operated for the purpose | ||||||
25 | of administering, on a cooperative basis, the | ||||||
26 | furnishing of natural gas for the benefit of their |
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1 | members and that, prior to 90 days after the effective | ||||||
2 | date of this amendatory Act of the 94th General | ||||||
3 | Assembly, either had acquired or had entered into an | ||||||
4 | asset purchase agreement to acquire all or | ||||||
5 | substantially all of the operating assets of a public | ||||||
6 | utility or natural gas cooperative with the intention | ||||||
7 | of operating those assets as a natural gas | ||||||
8 | cooperative;
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9 | (5) sewage disposal companies which provide sewage | ||||||
10 | disposal services
on a mutual basis without establishing | ||||||
11 | rates or charges for services,
but paying the operating | ||||||
12 | expenses by assessment upon the members of the
company and | ||||||
13 | no others;
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14 | (6) (blank);
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15 | (7) cogeneration facilities, small power production | ||||||
16 | facilities, and other
qualifying facilities, as defined in | ||||||
17 | the Public Utility Regulatory Policies Act
and regulations | ||||||
18 | promulgated thereunder, except to the extent State | ||||||
19 | regulatory
jurisdiction and action is required or | ||||||
20 | authorized by federal law, regulations,
regulatory | ||||||
21 | decisions or the decisions of federal or State courts of | ||||||
22 | competent
jurisdiction;
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23 | (8) the ownership or operation of a facility that | ||||||
24 | sells compressed
natural gas at retail to the public for | ||||||
25 | use only as a motor vehicle fuel
and the selling of | ||||||
26 | compressed natural gas at retail to the public for use
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1 | only as a motor vehicle fuel;
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2 | (9) alternative retail electric suppliers as defined | ||||||
3 | in Article XVI; and
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4 | (10) the Illinois Power Agency.
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5 | (c) An entity that furnishes the service of charging | ||||||
6 | electric vehicles does not and shall not be deemed to sell | ||||||
7 | electricity and
is not and shall not be deemed a public utility | ||||||
8 | notwithstanding the basis on which the service is provided or | ||||||
9 | billed. If, however, the entity is otherwise deemed a public | ||||||
10 | utility under this Act, or is otherwise
subject to regulation | ||||||
11 | under this Act, then that entity is not exempt
from and remains | ||||||
12 | subject to the otherwise applicable provisions of this Act. | ||||||
13 | The installation, maintenance, and repair of an electric | ||||||
14 | vehicle charging station shall comply with the requirements of | ||||||
15 | subsection (a) of Section 16-128 and Section 16-128A of this | ||||||
16 | Act. | ||||||
17 | For purposes of this subsection, the term "electric | ||||||
18 | vehicles" has the
meaning ascribed to that term in Section 10 | ||||||
19 | of the Electric Vehicle
Act. | ||||||
20 | (Source: P.A. 97-1128, eff. 8-28-12.)
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21 | (220 ILCS 5/3-127 new) | ||||||
22 | Sec. 3-127. Thermal energy. "Thermal energy" means piped
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23 | noncombustible fluids used for transferring heat into and out | ||||||
24 | of buildings for the purpose of eliminating any resultant | ||||||
25 | onsite greenhouse gas
emissions of all types of heating and |
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1 | cooling processes, including, but
not limited to, comfort | ||||||
2 | heating and cooling, domestic hot water, and
refrigeration. | ||||||
3 | (220 ILCS 5/3-128 new) | ||||||
4 | Sec. 3-128. Thermal energy network. "Thermal energy | ||||||
5 | network" means all real estate, fixtures, and personal | ||||||
6 | property operated, owned, used, or to be used for, in | ||||||
7 | connection with, or to facilitate a utility-scale
distribution | ||||||
8 | infrastructure project that supplies thermal energy. | ||||||
9 | (220 ILCS 5/8-513 new) | ||||||
10 | Sec. 8-513. Thermal energy network development. | ||||||
11 | (a) The Illinois Commerce Commission shall initiate a | ||||||
12 | proceeding within 3 months of the effective date after this | ||||||
13 | amendatory Act of the 103rd General Assembly to support the | ||||||
14 | development of thermal energy networks. The matters the | ||||||
15 | Commission shall consider in such proceeding shall include, | ||||||
16 | but is not limited to, the appropriate ownership, market, and | ||||||
17 | rate structures for thermal energy networks and whether the | ||||||
18 | provision of thermal energy services by gas or electric | ||||||
19 | utilities is in the public interest. | ||||||
20 | (b) The Commission shall adopt rules within 2 years after | ||||||
21 | the effective date of this amendatory Act of the 103rd General | ||||||
22 | Assembly to: | ||||||
23 | (1) create fair market access rules for utility-owned | ||||||
24 | thermal energy networks to accept thermal energy that |
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1 | aligns with the Illinois Power Agency Act and that does | ||||||
2 | not increase greenhouse gas emissions or copollutants; | ||||||
3 | (2) exempt small-scale thermal energy networks not | ||||||
4 | owned by utilities from regulation by the Commission; | ||||||
5 | (3) promote the training and transition of utility | ||||||
6 | workers impacted by this amendatory Act of the 103rd | ||||||
7 | General Assembly; and | ||||||
8 | (4) encourage third-party participation and | ||||||
9 | competition where it will maximize benefits to customers. | ||||||
10 | (c) Within 3 months after the effective date of this | ||||||
11 | amendatory Act of the 103rd General Assembly, each of
the | ||||||
12 | largest gas, electric, or combination gas and electric | ||||||
13 | corporations shall submit to the Commission for review and | ||||||
14 | approval at least one and as many as 5 proposed pilot thermal | ||||||
15 | energy network projects. In developing the pilot project | ||||||
16 | proposals, at least one pilot project in each utility | ||||||
17 | territory shall be proposed in a disadvantaged community, as | ||||||
18 | described in the Illinois Power Agency Act, and if a utility | ||||||
19 | proposes 4 or more pilot projects, at least 2 shall be proposed | ||||||
20 | in disadvantaged communities. Each utility shall coordinate | ||||||
21 | with other utility participants, the Illinois Power Agency, | ||||||
22 | and consultants with expertise on successful pilot projects to | ||||||
23 | ensure that the pilot projects are diverse and designed to | ||||||
24 | inform the Commission's decisions in the proceeding on the | ||||||
25 | various ownership, market, and rate structures for thermal | ||||||
26 | energy networks. The pilot project proposals shall include |
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1 | specific customer protection plans, shall be made publicly | ||||||
2 | available on the Commission's website, and shall be subject to | ||||||
3 | a public comment period of no less than 30 days. Within 6 | ||||||
4 | months after the effective date of this amendatory Act of the | ||||||
5 | 103rd General Assembly, the Commission shall determine whether | ||||||
6 | it is in the public interest to approve or modify such pilot | ||||||
7 | thermal energy network projects and shall issue an order | ||||||
8 | directing each gas, electric, or combination gas and electric | ||||||
9 | corporation to implement such proposed or modified pilot | ||||||
10 | thermal energy network projects. In considering whether pilot | ||||||
11 | thermal energy network projects are in the public interest, | ||||||
12 | the Commission shall consider whether the pilot project will | ||||||
13 | develop information useful for the Commission's adoption of | ||||||
14 | rules governing thermal energy networks, whether the pilot | ||||||
15 | project furthers the climate justice and emissions reduction, | ||||||
16 | whether the pilot project advances financial and technical | ||||||
17 | approaches to equitable and affordable building | ||||||
18 | electrification, and whether the pilot project creates | ||||||
19 | benefits to customers and society at large, including, but not | ||||||
20 | limited to, public health benefits in areas with | ||||||
21 | disproportionate environmental or public health burdens, job | ||||||
22 | retention and creation, reliability, and increased | ||||||
23 | affordability of renewable thermal energy options. | ||||||
24 | (d) Each gas, electric, or combination gas and utility | ||||||
25 | corporation shall report to the Commission, on a quarterly | ||||||
26 | basis and until completion of the pilot thermal energy network |
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1 | project, as determined by the Commission, the status of each | ||||||
2 | pilot thermal energy network project. The Commission shall | ||||||
3 | post and make publicly available such reports on its website. | ||||||
4 | The report shall include, but not be limited to: | ||||||
5 | (1) the stage of development of each pilot project; | ||||||
6 | (2) the barriers to development; | ||||||
7 | (3) the number of customers served; | ||||||
8 | (4) the costs of the pilot project; | ||||||
9 | (5) the number of jobs retained or created by the | ||||||
10 | pilot project; and | ||||||
11 | (6) any other such information the Commission deems to | ||||||
12 | be in the public interest. | ||||||
13 | (e) Any thermal energy network created under this Section | ||||||
14 | shall demonstrate that the gas, electric, or combination gas | ||||||
15 | and electric corporation has entered into a labor peace | ||||||
16 | agreement with a bona fide labor organization of jurisdiction | ||||||
17 | that is actively engaged in representing gas, electric, and | ||||||
18 | combination gas and electric corporation employees. The labor | ||||||
19 | peace agreement shall apply to the employees necessary for the | ||||||
20 | maintenance and operation of such thermal energy network. The | ||||||
21 | labor peace agreement shall be an ongoing material condition | ||||||
22 | of authorization to maintain and operate such thermal energy | ||||||
23 | networks. The employees eligible for these positions shall | ||||||
24 | first be selected from and offered to a pool of transitioning | ||||||
25 | utility workers who have lost, or are at risk of losing, their | ||||||
26 | employment with a utility downsizing its gas transmission and |
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1 | distribution system. Such list of potential employees shall be | ||||||
2 | provided by affected unions and provided to the Illinois | ||||||
3 | Department of Labor. The Illinois Department of Labor shall | ||||||
4 | update and provide such list to the gas, electric, or | ||||||
5 | combination gas and electric corporation 90 days prior to the | ||||||
6 | purchase, acquisition, or construction of any thermal energy | ||||||
7 | network created under this Section.
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8 | Section 999. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
|