SB3794 103RD GENERAL ASSEMBLY

LRB103 38957 CES 69094 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3794

Introduced 2/9/2024, by Sen. Adriane Johnson

SYNOPSIS AS INTRODUCED:

New Act

Creates the Powering Up Illinois Act. Provides that an electrical corporation which operates in the State shall upgrade the State's electrical distribution systems in order to achieve the State's decarbonization standards. Provides that an electrical corporation shall be adequately staffed and recruit, train, and retain further staff as needed. Provides that the Illinois Commerce Commission shall establish reasonable average and maximum target energization time periods. Provides that the Commission shall establish requirements for an electrical corporation to report to the Commission, at least annually, to track and improve electrical corporation performance. Provides that the Commission shall require an electrical corporation to establish a dedicated electrification team. Sets forth requirements for an electrical corporation to consider when engaging in the annual distribution planning process. Provides that, in its site evaluation and design process, the Commission shall require an electrical corporation to consider flexible interconnection to defer or mitigate energization-related grid upgrades, but, if the solutions cannot defer or mitigate an upgrade, the corporation may evaluate traditional system upgrades. Provides that an electrical corporation may recover costs. 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 Powering Up Illinois Act.

Section 5. Definitions. In this Act:

"Electrification" means any new use of electricity, expanded use of electricity, or change in use of electricity, including, but not limited to, in the industrial, commercial, agricultural, housing, or transportation sectors.

"Energization" and "energize" means connecting new customers to the electrical grid, establishing adequate electrical capacity to provide service for a new customer, or upgrading electrical capacity to provide upgraded service to an existing customer. The terms "energization" and "energize" do not include activities related to connecting electricity supply resources.

"Energization time period" means the elapsed time beginning when the electrical corporation receives a substantially complete energization project application and ending when the electric service is installed and energized.

Section 10. Findings. The General Assembly finds and declares all of the following:

(1) It is the policy of the State to increase the use of electric vehicles in the State to 1,000,000 by 2030. That expanded infrastructure investment will help Illinois more rapidly decarbonize the transportation sector. Widespread use of electric vehicles and charging equipment has the potential to provide customers with fuel cost savings and provide electric utility customers with cost-saving benefits. Widespread use of electric vehicles stimulates innovation, competition, and increased choices in charging equipment and networks and also attracts private capital investments and creates high-quality jobs in Illinois. Accelerating the adoption of electric vehicles will drive the decarbonization of Illinois' transportation sector. To meet these goals and federal, State, regional, and local air quality and decarbonization standards, plans, and regulations, a large increase in both the quantity of electricity used and the functions for which electricity will be used is needed.

(2) To meet these decarbonization goals as well as federal, State, regional, and local air quality and decarbonization standards, plans, and regulations, the State's electrical distribution systems must be substantially upgraded, new customers must promptly connect to the electrical distribution system, and existing customers must have their service level promptly upgraded.

(3) There are many reports of large housing developments that are unable to be promptly energized. The State has an urgent need to increase its supply of housing, requiring both new electrical distribution capacity and the prompt energization of new housing.

(4) There are many reports of individual customers who are unable to have their electrical service promptly upgraded or energized and charging stations for light-duty, medium-duty, and heavy-duty vehicles and off-road vehicles, vessels, trains, and equipment that are unable to be promptly energized. These delays may inhibit the State's ability to meet its decarbonization goals and federal, State, regional, and local air quality and decarbonization standards, plans, and regulations.

(5) To improve the speed at which energization and service upgrades are performed, electrical corporations that distribute electricity must do both of the following:

(A) improve their advance planning, engineering, and construction of increased distribution and transmission system capacity; and

(B) preorder transformers, switchgear, and other needed equipment.

(6) Electrifying transportation and buildings can put downward pressure on rates by spreading fixed costs over more kilowatt-hours of usage.

(7) Delays in energization, including service upgrades, are costly both to the customers awaiting service and to other customers who are deprived of the downward pressure on rates.

(8) To carry out the planning, engineering, and construction of electrical distribution systems needed to promptly serve customers, electrical corporations that distribute electricity must recruit, train, and retain an adequately sized, qualified workforce.

(9) The Illinois Commerce Commission shall establish target deadlines for utilities that distribute electricity to energize new customers and upgrade the service of existing customers.

(10) The Illinois Commerce Commission shall establish reporting requirements for electrical corporations that distribute electricity to report the extent to which they comply with the target deadlines and the reasons for any noncompliance.

Section 15. Electrical distribution system upgrades. An electrical corporation that operates within the State shall:

(1) upgrade the State's electrical distribution systems as needed and in time to achieve the State's decarbonization goals, and implement federal, State, regional, and local air quality and decarbonization standards, plans, and regulations;

(2) comply with the obligation of the electrical corporation to serve by conducting sufficient advance planning, engineering, and construction of increased distribution of system capacity and by preordering transformers and other needed equipment so that customers can be energized without substantial delay;

(3) promptly energize new customers, including by ensuring that new housing, new businesses, and new charging for light-duty, medium-duty, and heavy-duty vehicles and off-road vehicles, vessels, trains, and equipment can be used without delay caused by a failure of the utility to implement energization projects;

(4) promptly upgrade service when needed by customers; and

(5) recruit, train, and retain an adequately sized and qualified workforce to carry out the planning, engineering, and construction of electrical distribution systems needed to promptly serve customers seeking energization and service upgrades without sacrificing other necessary activities of the workforce.

Section 20. Illinois Commerce Commission requirements.

(a) On or before 180 days after the effective date of this Act, the Illinois Commerce Commission shall:

(1) Establish reasonable average and maximum target energization time periods. The targets shall ensure that work is completed in a manner that minimizes delay in meeting the date requested by the customer for completion of the project to the greatest extent possible and prioritizes work in a manner consistent with Sections 10 and 15 of this Act. The targets may vary depending on the complexity and magnitude of the work required and uncertainties regarding the readiness of the customer project needing energization. The targets may also recognize any factors beyond the electrical corporation's control.

(2) Establish requirements for an electrical corporation to report to the Illinois Commerce Commission, at least annually, in order to track and improve electrical corporation performance. The report shall include the average, median, and standard deviation time between receiving an application for energizing the electrical service, explanations for energization time periods that exceed the target maximum for energization projects, constraints, and obstacles to each type of energization, including, but not limited to, funding limitations, qualified staffing availability, or equipment availability, and any other information requested by the Illinois Commerce Commission.

(3) Establish a procedure for customers to report energization delays to the Illinois Commerce Commission.

(b) If energization time periods exceed the Commission's target averages, or if the electrical corporation has a substantial number of energization projects that exceed the Commission's target maximums, the electrical corporation shall include in its report pursuant to paragraph (2) of subsection (a) a strategy for meeting the targets in the future. The Commission may request modification of the electrical corporation's strategy to ensure that the electrical corporation meets targets promptly and consistent with the policies set forth in Section 10.

(c) Data reported by electrical corporations shall be anonymized or averaged data to the extent necessary to prevent identifying individual customers. The Commission shall require all reports to be publicly available.

(d) The Commission shall require the electrical corporation to take any remedial actions necessary to achieve the Commission's targets, including the use of incentives or penalties.

Section 25. Electrification team; staffing.

(a) The Commission shall require each electrical corporation to establish a dedicated electrification team that shall, at a minimum, do the following:

(1) serve as a single point of contact for customers throughout the entire energization process;

(2) proactively engage with customers to understand and support electrification plans; and

(3) consolidate all transportation electrification customer programs, accounts and relevant information to support electrification and the energization process.

(b) The Commission shall require each electrical corporation to have adequate qualified staffing needed for the electrification team to be consistent with the findings and achieve the policies and requirements of this Act.

(c) For job classifications that have apprentice training requirements, the Commission shall require each electrical corporation to maintain a pipeline of apprentices sufficient to meet future qualified staffing needs, subject to any limitations based on safe staffing ratios.

(d) As part of each report required pursuant to paragraph (2) of subsection (a) of Section 20, and in each general rate case application, each electrical corporation shall include a detailed analysis of its current qualified staffing level and future required qualified staffing level for each job classification needed to achieve the policies and requirements of this Act.

Section 30. Electrical corporation requirements. The Commission shall require an electrical corporation to do the following:

(1) consider, in its annual distribution planning process, all of the following:

(A) federal, State, regional, and local air quality and decarbonization standards, plans, and regulations;

(B) the transportation and building electrification policies of State law;

(C) State agency, local agency, and local government plans and requirements related to housing, economic development, critical facilities, transportation, and building electrification; and

(D) load and electrification forecasts that include the following:

(i) known load and projections of load conducted by State agencies, and projections of load that exceed forecasts conducted by State agencies, including the Commission-led study as required by this Act;

(ii) includes a minimum of 3 time horizons including short (1 to 2 years), medium (3 to 5 years), and long-term (6 to 10 years);

(iii) includes multiple scenarios including business-as-usual, meeting climate goals, and low, medium, and high electrification;

(iv) hourly, feeder-level forecasts; and

(v) a consideration of the impact of distributed energy resource forecasts and specifically, local generation.

(2) Consider, in its site evaluation and design process, all of the following:

(A) flexible interconnection such as automated load management, managed charging, and distributed energy resources to defer or mitigate energization-related grid upgrades; and

(B) if the above solutions cannot defer or mitigate an upgrade, the electrical corporation may evaluate traditional system upgrades.

(3) Adopt and implement rules and regulations to satisfy the policies set forth in Section 20 and to meet the energization time periods established pursuant to paragraph (1) of subsection (a) of Section 20.

Section 35. Recovery of costs. The Commission shall ensure that electrical corporations have sufficient and timely recovery of costs to be consistent with the findings and achieve the policies and requirements of this Act, including for emergent electrification projects.

Section 99. Effective date. This Act takes effect upon becoming law.