Sen. Robert Peters
Filed: 3/2/2023
| |||||||
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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.
|
| |||||||
| |||||||
1 | (8) A utility's access to capital, the utility's | ||||||
2 | experience with networked
infrastructure in public | ||||||
3 | rights-of-way, and the requirement that the utility
serve | ||||||
4 | all customers positions the utility well to develop and | ||||||
5 | scale thermal
energy networks that are accessible to all | ||||||
6 | customers and to coordinate
the development of thermal | ||||||
7 | energy networks with any orderly rightsizing of the
| ||||||
8 | utility gas system.
| ||||||
9 | (9) This State also has an interest in the efficient | ||||||
10 | and
reliable delivery of energy and the energy | ||||||
11 | infrastructure of the State,
which interest is | ||||||
12 | acknowledged throughout the Public Utilities Act. Utility | ||||||
13 | corporations and other power suppliers share these | ||||||
14 | interests and, moreover, have a duty to protect | ||||||
15 | proprietary interests in the projects they fund. Such | ||||||
16 | investments of ratepayer resources can be protected by | ||||||
17 | establishing effective contractor qualification and | ||||||
18 | performance standards, including requirements for | ||||||
19 | prevailing wage rates, bona fide apprenticeship criteria, | ||||||
20 | and project labor agreements.
| ||||||
21 | (10) The construction industry is highly skilled and | ||||||
22 | labor intensive,
and the installation of modern thermal | ||||||
23 | energy networks involves particularly complex work. | ||||||
24 | Therefore, effective qualification standards
for craft | ||||||
25 | labor personnel employed on these projects are critically
| ||||||
26 | needed to promote successful project delivery.
|
| |||||||
| |||||||
1 | (11) Finally, these findings are especially vital now | ||||||
2 | because the construction industry is experiencing | ||||||
3 | widespread skill shortages across the country, which are | ||||||
4 | crippling existing capital projects and threatening | ||||||
5 | projects planned for the future. The construction of | ||||||
6 | thermal energy networks will utilize many of the same | ||||||
7 | skills that the current utility and building trades | ||||||
8 | workforces already possess.
| ||||||
9 | (b) It is the intent of the General Assembly that passage | ||||||
10 | of this Act is for the following purposes: | ||||||
11 | (1) to remove the legal barriers to utility | ||||||
12 | development of thermal
energy networks and require the | ||||||
13 | Illinois Commerce Commission, within 90 days after the | ||||||
14 | effective date of this amendatory Act of the 103rd General | ||||||
15 | Assembly, to begin to authorize and direct utilities to | ||||||
16 | immediately commence piloting thermal energy networks in | ||||||
17 | each and every utility territory;
| ||||||
18 | (2) to direct and authorize the Illinois Commerce | ||||||
19 | Commission to develop a regulatory structure for utility | ||||||
20 | thermal energy networks that scales affordable and | ||||||
21 | accessible building electrification, protects customers, | ||||||
22 | and balances the role of incumbent monopoly utilities with | ||||||
23 | other market and public actors;
| ||||||
24 | (3) to promote the successful planning and delivery of | ||||||
25 | thermal energy
networks and protect critical investments | ||||||
26 | in such projects by requiring the use of appropriate |
| |||||||
| |||||||
1 | quality craft labor policies that ensure the development | ||||||
2 | of and access to an adequate supply of well trained, | ||||||
3 | highly skilled craft persons needed to support timely, | ||||||
4 | reliable, high-quality projects;
| ||||||
5 | (4) to promote strong economic development and good | ||||||
6 | jobs for local
residents in the expanding decarbonized | ||||||
7 | sector by requiring application of progressive State labor | ||||||
8 | and employment policies that ensure public utility | ||||||
9 | investments and related State subsidies create | ||||||
10 | unparalleled skill training and employment opportunities | ||||||
11 | for residents in project areas through the use of local | ||||||
12 | prevailing wage standards and successful, bona fide | ||||||
13 | apprenticeship programs or project labor agreements that | ||||||
14 | incorporate prevailing wage and training standards and | ||||||
15 | provide additional benefits for project owners and | ||||||
16 | workers; and
| ||||||
17 | (5) to promote the use of preapprenticeship programs | ||||||
18 | that will fortify and expand existing apprenticeship | ||||||
19 | programs through systematic outreach efforts to recruit | ||||||
20 | and assist persons from underrepresented and low income | ||||||
21 | communities by providing such persons with remedial | ||||||
22 | education, social services, and unique opportunities for | ||||||
23 | direct access into high-quality apprenticeship programs | ||||||
24 | and gainful employment in the growing building | ||||||
25 | decarbonization workforce.
|
| |||||||
| |||||||
1 | Section 10. The Illinois Power Agency Act is amended by | ||||||
2 | adding Section 1-83 as follows: | ||||||
3 | (20 ILCS 3855/1-83 new) | ||||||
4 | Sec. 1-83. Pilot thermal energy network projects. No later | ||||||
5 | than 3 months
after the effective date of this amendatory Act | ||||||
6 | of the 103rd General Assembly, the Department of Commerce and | ||||||
7 | Economic Opportunity, the Agency, and a public utility shall | ||||||
8 | submit for review to the Commission at least one and as many as | ||||||
9 | 5 proposed pilot thermal energy network projects as described | ||||||
10 | in Section 8-513 of the Public Utilities Act. Designs for the | ||||||
11 | projects should coordinate and maximize the value of existing | ||||||
12 | State energy efficiency and weatherization programs and take | ||||||
13 | full advantage of federal funding opportunities. No later than | ||||||
14 | 6 months after the effective date of this amendatory Act of the | ||||||
15 | 103rd General Assembly, and upon recommendation by the Agency, | ||||||
16 | the Commission shall determine whether it is in the public | ||||||
17 | interest to approve or modify such pilot thermal energy | ||||||
18 | network projects and shall direct the service provider to | ||||||
19 | implement such proposed or modified pilot thermal energy | ||||||
20 | network projects. The Commission shall adopt rules consistent | ||||||
21 | with the standards set forth in subsections (b) and (c) of | ||||||
22 | Section 8-513 of the Public Utilities Act. | ||||||
23 | Section 905. The Public Utilities Act is amended by | ||||||
24 | changing Sections 3-101 and 3-105 and by adding Sections |
| |||||||
| |||||||
1 | 3-127, 3-128, and 8-513 as follows:
| ||||||
2 | (220 ILCS 5/3-101) (from Ch. 111 2/3, par. 3-101)
| ||||||
3 | Sec. 3-101. Definitions. Unless otherwise specified, the | ||||||
4 | terms set forth
in Sections 3-102 through 3-128 3-126 are used | ||||||
5 | in this Act as therein defined.
| ||||||
6 | (Source: P.A. 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; | ||||||
7 | 97-813, eff. 7-13-12.)
| ||||||
8 | (220 ILCS 5/3-105) (from Ch. 111 2/3, par. 3-105)
| ||||||
9 | Sec. 3-105. Public utility. | ||||||
10 | (a) "Public utility" means and includes, except where
| ||||||
11 | otherwise expressly provided in this Section, every | ||||||
12 | corporation, company,
limited liability company, association, | ||||||
13 | joint stock company or association,
firm, partnership or | ||||||
14 | individual, their lessees, trustees, or receivers
appointed by | ||||||
15 | any court whatsoever that owns, controls, operates or manages,
| ||||||
16 | within this State, directly or indirectly, for public use, any | ||||||
17 | plant, equipment
or property used or to be used for or in | ||||||
18 | connection with, or owns or controls
any franchise, license, | ||||||
19 | permit , or right to engage in:
| ||||||
20 | (1) the production, storage, transmission, sale, | ||||||
21 | delivery , or furnishing of
heat, cold, power, electricity, | ||||||
22 | water, or light, except when used solely for
| ||||||
23 | communications purposes;
| ||||||
24 | (2) the disposal of sewerage; or
|
| |||||||
| |||||||
1 | (3) the conveyance of oil or gas by pipe line ; or .
| ||||||
2 | (4) a thermal energy network. | ||||||
3 | (b) "Public utility" does not include, however:
| ||||||
4 | (1) public utilities that are owned and operated by | ||||||
5 | any political
subdivision, public institution of higher | ||||||
6 | education or municipal
corporation of this State, or | ||||||
7 | public utilities that are owned by such
political | ||||||
8 | subdivision, public institution of higher education, or
| ||||||
9 | municipal corporation and operated by any of its lessees | ||||||
10 | or operating agents;
| ||||||
11 | (2) water companies which are purely mutual concerns, | ||||||
12 | having no rates
or charges for services, but paying the | ||||||
13 | operating expenses by assessment
upon the members of such | ||||||
14 | a company and no other person;
| ||||||
15 | (3) electric cooperatives as defined in Section 3-119 | ||||||
16 | except to the extent that the cooperative is developing a | ||||||
17 | thermal energy network under Section 8-513 ;
| ||||||
18 | (4) the following natural gas cooperatives:
| ||||||
19 | (A) residential natural gas cooperatives that are | ||||||
20 | not-for-profit
corporations
established for the | ||||||
21 | purpose of administering and operating, on
a | ||||||
22 | cooperative basis, the furnishing of natural gas to | ||||||
23 | residences for the
benefit of their members
who are | ||||||
24 | residential consumers of natural gas. For
entities | ||||||
25 | qualifying as residential
natural gas cooperatives and | ||||||
26 | recognized
by the Illinois Commerce Commission as |
| |||||||
| |||||||
1 | such, the State shall guarantee
legally binding | ||||||
2 | contracts entered into by residential
natural gas
| ||||||
3 | cooperatives for the express purpose of acquiring | ||||||
4 | natural gas supplies for
their members. The Illinois | ||||||
5 | Commerce Commission shall establish rules and
| ||||||
6 | regulations providing for such guarantees. The total | ||||||
7 | liability of the
State in providing all such | ||||||
8 | guarantees shall not at any time exceed
$1,000,000, | ||||||
9 | nor shall the State provide such a guarantee to a | ||||||
10 | residential
natural gas cooperative for more than 3 | ||||||
11 | consecutive years; and
| ||||||
12 | (B) natural gas cooperatives that are | ||||||
13 | not-for-profit corporations operated for the purpose | ||||||
14 | of administering, on a cooperative basis, the | ||||||
15 | furnishing of natural gas for the benefit of their | ||||||
16 | members and that, prior to 90 days after the effective | ||||||
17 | date of this amendatory Act of the 94th General | ||||||
18 | Assembly, either had acquired or had entered into an | ||||||
19 | asset purchase agreement to acquire all or | ||||||
20 | substantially all of the operating assets of a public | ||||||
21 | utility or natural gas cooperative with the intention | ||||||
22 | of operating those assets as a natural gas | ||||||
23 | cooperative;
| ||||||
24 | (5) sewage disposal companies which provide sewage | ||||||
25 | disposal services
on a mutual basis without establishing | ||||||
26 | rates or charges for services,
but paying the operating |
| |||||||
| |||||||
1 | expenses by assessment upon the members of the
company and | ||||||
2 | no others;
| ||||||
3 | (6) (blank);
| ||||||
4 | (7) cogeneration facilities, small power production | ||||||
5 | facilities, and other
qualifying facilities, as defined in | ||||||
6 | the Public Utility Regulatory Policies Act
and regulations | ||||||
7 | promulgated thereunder, except to the extent State | ||||||
8 | regulatory
jurisdiction and action is required or | ||||||
9 | authorized by federal law, regulations,
regulatory | ||||||
10 | decisions or the decisions of federal or State courts of | ||||||
11 | competent
jurisdiction;
| ||||||
12 | (8) the ownership or operation of a facility that | ||||||
13 | sells compressed
natural gas at retail to the public for | ||||||
14 | use only as a motor vehicle fuel
and the selling of | ||||||
15 | compressed natural gas at retail to the public for use
| ||||||
16 | only as a motor vehicle fuel;
| ||||||
17 | (9) alternative retail electric suppliers as defined | ||||||
18 | in Article XVI; and
| ||||||
19 | (10) the Illinois Power Agency.
| ||||||
20 | (c) An entity that furnishes the service of charging | ||||||
21 | electric vehicles does not and shall not be deemed to sell | ||||||
22 | electricity and
is not and shall not be deemed a public utility | ||||||
23 | notwithstanding the basis on which the service is provided or | ||||||
24 | billed. If, however, the entity is otherwise deemed a public | ||||||
25 | utility under this Act, or is otherwise
subject to regulation | ||||||
26 | under this Act, then that entity is not exempt
from and remains |
| |||||||
| |||||||
1 | subject to the otherwise applicable provisions of this Act. | ||||||
2 | The installation, maintenance, and repair of an electric | ||||||
3 | vehicle charging station shall comply with the requirements of | ||||||
4 | subsection (a) of Section 16-128 and Section 16-128A of this | ||||||
5 | Act. | ||||||
6 | For purposes of this subsection, the term "electric | ||||||
7 | vehicles" has the
meaning ascribed to that term in Section 10 | ||||||
8 | of the Electric Vehicle
Act. | ||||||
9 | (Source: P.A. 97-1128, eff. 8-28-12.)
| ||||||
10 | (220 ILCS 5/3-127 new) | ||||||
11 | Sec. 3-127. Thermal energy. "Thermal energy" means piped
| ||||||
12 | noncombustible fluids used for transferring heat into and out | ||||||
13 | of buildings for the purpose of eliminating any resultant | ||||||
14 | onsite greenhouse gas
emissions of all types of heating and | ||||||
15 | cooling processes, including, but
not limited to, comfort | ||||||
16 | heating and cooling, domestic hot water, and
refrigeration. | ||||||
17 | (220 ILCS 5/3-128 new) | ||||||
18 | Sec. 3-128. Thermal energy network. "Thermal energy | ||||||
19 | network" means all real estate, fixtures, and personal | ||||||
20 | property operated, owned, used, or to be used for, in | ||||||
21 | connection with, or to facilitate a utility-scale
distribution | ||||||
22 | infrastructure project that supplies thermal energy. | ||||||
23 | (220 ILCS 5/8-513 new) |
| |||||||
| |||||||
1 | Sec. 8-513. Thermal energy network development. | ||||||
2 | (a) The Illinois Commerce Commission shall initiate a | ||||||
3 | proceeding within 3 months after the effective date of this | ||||||
4 | amendatory Act of the 103rd General Assembly to support the | ||||||
5 | development of thermal energy networks. The matters the | ||||||
6 | Commission shall consider in such proceeding shall include, | ||||||
7 | but are not limited to, the appropriate ownership, market, and | ||||||
8 | rate structures for thermal energy networks and whether the | ||||||
9 | provision of thermal energy services by gas or electric | ||||||
10 | utilities is in the public interest. | ||||||
11 | (b) The Commission shall adopt rules within 2 years after | ||||||
12 | the effective date of this amendatory Act of the 103rd General | ||||||
13 | Assembly to: | ||||||
14 | (1) create fair market access rules for utility-owned | ||||||
15 | thermal energy networks to accept thermal energy that | ||||||
16 | aligns with the Illinois Power Agency Act and that does | ||||||
17 | not increase greenhouse gas emissions or copollutants; | ||||||
18 | (2) exempt small-scale thermal energy networks not | ||||||
19 | owned by utilities from regulation by the Commission; | ||||||
20 | (3) promote the training and transition of utility | ||||||
21 | workers impacted by this amendatory Act of the 103rd | ||||||
22 | General Assembly; and | ||||||
23 | (4) encourage third-party participation and | ||||||
24 | competition where it will maximize benefits to customers. | ||||||
25 | (c) Within 6 months after the effective date of this | ||||||
26 | amendatory Act of the 103rd General Assembly, each of
the |
| |||||||
| |||||||
1 | largest gas, electric, or combination gas and electric | ||||||
2 | corporations shall submit to the Commission for review and | ||||||
3 | approval at least one and as many as 5 proposed pilot thermal | ||||||
4 | energy network projects. In developing the pilot project | ||||||
5 | proposals, at least one pilot project in each utility | ||||||
6 | territory shall be proposed in a disadvantaged community, as | ||||||
7 | described in the Illinois Power Agency Act, and if an electric | ||||||
8 | cooperative, nonutility organization, or utility proposes 4 or | ||||||
9 | more pilot projects, at least 2 shall be proposed in | ||||||
10 | disadvantaged communities. At least one electric cooperative, | ||||||
11 | nonutility organization, or electric utility pilot thermal | ||||||
12 | energy network project shall focus on existing electric heat | ||||||
13 | customers, and if a utility proposes 4 or more pilot projects, | ||||||
14 | at least 2 shall be focused on existing electric heat | ||||||
15 | customers. Each electric cooperative, nonutility organization, | ||||||
16 | or utility shall coordinate with other electric cooperative, | ||||||
17 | nonutility organization, and utility participants, the | ||||||
18 | Illinois Power Agency, and consultants with expertise on | ||||||
19 | successful pilot projects to ensure that the pilot projects | ||||||
20 | are diverse and designed to inform the Commission's decisions | ||||||
21 | in the proceeding on the various ownership, market, and rate | ||||||
22 | structures for thermal energy networks. The pilot project | ||||||
23 | proposals shall include specific customer protection plans, | ||||||
24 | shall be made publicly available on the Commission's website, | ||||||
25 | and shall be subject to a public comment period of no less than | ||||||
26 | 30 days. Within 6 months after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 103rd General Assembly, the Commission | ||||||
2 | shall determine whether it is in the public interest to | ||||||
3 | approve or modify such pilot thermal energy network projects | ||||||
4 | and shall issue an order directing each gas, electric, or | ||||||
5 | combination gas and electric corporation to implement such | ||||||
6 | proposed or modified pilot thermal energy network projects. In | ||||||
7 | considering whether pilot thermal energy network projects are | ||||||
8 | in the public interest, the Commission shall consider whether | ||||||
9 | the pilot project will develop information useful for the | ||||||
10 | Commission's adoption of rules governing thermal energy | ||||||
11 | networks, whether the pilot project furthers the climate | ||||||
12 | justice and emissions reduction, whether the pilot project | ||||||
13 | advances financial and technical approaches to equitable and | ||||||
14 | affordable building electrification, and whether the pilot | ||||||
15 | project creates benefits to customers and society at large, | ||||||
16 | including, but not limited to, public health benefits in areas | ||||||
17 | with disproportionate environmental or public health burdens, | ||||||
18 | job retention and creation, reliability, and increased | ||||||
19 | affordability of renewable thermal energy options. | ||||||
20 | (d) If an electric cooperative, nonutility organization, | ||||||
21 | or gas, electric, or combination gas and electric corporation | ||||||
22 | begins to develop a pilot thermal energy network project, the | ||||||
23 | electric cooperative, nonutility organization, or corporation | ||||||
24 | shall report to the Commission, on a quarterly basis and until | ||||||
25 | completion of the pilot thermal energy network project, as | ||||||
26 | determined by the Commission, the status of each pilot thermal |
| |||||||
| |||||||
1 | energy network project. The Commission shall post and make | ||||||
2 | publicly available such reports on its website. The report | ||||||
3 | shall include, but not be limited to: | ||||||
4 | (1) the stage of development of each pilot project; | ||||||
5 | (2) the barriers to development; | ||||||
6 | (3) the number of customers served; | ||||||
7 | (4) the costs of the pilot project; | ||||||
8 | (5) the number of jobs retained or created by the | ||||||
9 | pilot project; and | ||||||
10 | (6) any other such information the Commission deems to | ||||||
11 | be in the public interest. | ||||||
12 | (e) An electric cooperative, nonutility organization, or | ||||||
13 | gas, electric, or combination gas or electric corporation that | ||||||
14 | begins to develop a pilot thermal energy network project under | ||||||
15 | this Section shall demonstrate that it has entered into a | ||||||
16 | labor peace agreement with a bona fide labor organization that | ||||||
17 | is actively engaged in representing its employees. | ||||||
18 | (f) Any contractor or subcontractor that performs work on | ||||||
19 | a thermal energy network under this Section shall be a | ||||||
20 | responsible bidder as described in Section 30-22 of the | ||||||
21 | Illinois Procurement Code. The contractor or subcontractor | ||||||
22 | shall submit evidence of meeting the requirements to be a | ||||||
23 | responsible bidder as described in Section 30-22 to the | ||||||
24 | thermal energy network utility. | ||||||
25 | (g) For any pending application for a thermal energy | ||||||
26 | network, the contractor or subcontractor shall submit within |
| |||||||
| |||||||
1 | 30 days after the effective date of this amendatory Act of the | ||||||
2 | 103rd General Assembly evidence that the contractor or | ||||||
3 | subcontractor has entered into a fully executed project labor | ||||||
4 | agreement with the applicable local building trades council. | ||||||
5 | The Commission shall not approve any pending applications | ||||||
6 | until the contractor or subcontractor has submitted the | ||||||
7 | information required under this subsection.
| ||||||
8 | Section 999. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
|