HB5202 102ND GENERAL ASSEMBLY

LRB102 24418 AMQ 33652 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5202

Introduced 1/31/2022, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-406.2

Amends the Public Utilities Act. Provides that no land or personal property of any landowner shall be taken or infringed upon by eminent domain, easement, or other mechanism for the installation of any infrastructure for the distribution of natural gas that was approved without the express and written consent of the landowner or property owner. Provides that the Illinois Commerce Commission shall cancel any agreement or contract entered into in furtherance of any project if it determines that corrupt or fraudulent practices were engaged in by any individual in creation of the agreement, and the Commission has the authority to inspect and audit accounts and records of any entity relating to the execution and performance of any agreement entered into in furtherance of any project. Provides that to protect the unique natural ecosystem of Pembroke Township, the Commission shall provide public notice in an easily accessible manner of past or pending complaints concerning public safety, health, or the environment involving any individual that is agreeing to contracting to perform work related to construction of any natural gas pipeline. Provides that the natural gas utility prior to construction of natural gas utilities shall submit a compliance filing to the Commission demonstrating that specified preconstruction requirements are satisfied.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by changing Section 8-406.2 as follows:

(220 ILCS 5/8-406.2)

Sec. 8-406.2. Certificate of public convenience and necessity; extension of utility service area and facilities to serve designated hardship areas.

(a) Where a public utility has met the requirements of Section 8-406, this This Section is intended to provide a mechanism by which a gas public utility may extend its service territory and gas distribution system to provide service to designated low-income areas whose residents do not have access to natural gas service and must purchase more costly alternatives to satisfy their energy needs.

(b) In this Section:

"Designated hardship area" is limited to Pembroke Township, if the Township meets certain requirements. Any "designated hardship area" only applies to the specific community of Pembroke within the scope of the Project. Pembroke Township will only be categorized as a "designated hardship area" if it meets the following requirements:

(1) the area is designated as a qualified census tract by the U.S. Department of Housing and Urban Development as published in the most current Federal Register; if the U.S. Department of Housing and Urban Development ceases to make this designation, then at least 25% of the households in the area are at or below the poverty level; and

(2) the area is not currently served by a gas utility.

"Hardship area facilities" means all gas distribution system facilities that are proposed to be constructed or extended and used to serve the designated hardship area, through and including retail gas meters. "Hardship area facilities" includes the capacity to address reasonably foreseeable growth in areas adjacent to or in the vicinity of the designated hardship area.

(c) A gas public utility may apply for a certificate of public convenience and necessity pursuant to this Section to increase its gas service territory and extend its gas distribution system to serve a designated hardship area. An application under this Section shall include all of the following:

(1) a description of the designated hardship area and its relationship to the existing gas distribution system of the applicant;

(2) a showing that the designated hardship area meets the criteria for being a designated hardship area under subsection (b) of this Section;

(3) a description of the hardship area facilities proposed to serve the designated hardship area;

(4) a projection of the costs to construct and deploy the hardship area facilities;

(5) a showing that the estimated cost to construct and deploy the hardship area facilities is equal to or less than 250% of the amount allowed under the gas utilities' then current tariffs to provide standard service to extend main and services; and

(6) a statement to confirm that the public utility has held at least 2 pre-filing public meetings in the community and considered public input from those meetings when developing and implementing its plans.

(d) The Commission shall, after notice and hearing, grant a certificate of public convenience and necessity under this Section if, based upon the application filed with the Commission and the evidentiary record, the Commission finds that all of the following criteria are satisfied:

(1) the area to be served is a designated hardship area;

(2) the proposed hardship area facilities will provide adequate, reliable, and efficient gas delivery service to the customers within the designated hardship area and are the least-cost means of providing such gas delivery service to these customers;

(3) the public utility is capable of efficiently managing and supervising the construction of the hardship area facilities and has taken sufficient action to ensure adequate and efficient construction and supervision of the construction;

(4) the public utility is capable of financing the construction of the hardship area facilities without significant adverse financial consequences for the utility or its customers;

(5) the estimated cost to construct and deploy the hardship area facilities is equal to or less than 250% of the amount allowed under the gas utilities then current tariffs to provide standard service to extend main and services;

(6) the public utility can guarantee that residents of Hopkins Park who choose to opt out of converting to a natural gas delivery service will not be assessed any charges relating to the pipeline construction or any other fees relating to the designated hardship area facilities;

(7) the public utility disclosed to the Commission the mapping of the proposed pipeline and infrastructure management requirements within the designated hardship area; and

(8) the public utility has guaranteed that, before implementation, it will disclose to the Commission the cost to the utility for customers of Hopkins Park to utilize gas services.

(e) The Commission shall issue its decision with findings of fact and conclusions of law granting or denying the application no later than 120 days after the application is filed.

(f) No land or personal property of any landowner shall be taken or otherwise infringed upon or jeopardized, by eminent domain, easement, or other mechanism for the purpose of the design, construction, and installation of any pipeline, mains, services, facilities, or other infrastructure for the distribution of natural gas that is or has been approved wholly or in part pursuant to this Section without the express and written consent of the landowner or property owner. Where any personal property is used in any way for installation of any pipeline, mains, services, facilities, or other infrastructure for distribution of natural gas, with written consent of the landowner or property owner, the natural gas utility that owns the infrastructure shall not disturb, temporarily or permanently, any cropland, farmland, pastureland, forest, or other property inhabited by plants or wildlife. The use of personal property, including for storing, moving, or using construction equipment, shall be strictly limited to roadways.

(g) In furtherance of public accountability and to guard against misuse of public and ratepayer funds, the Commission shall:

(1) where it has the authority, cancel any agreement or contract entered into in furtherance of any project approved wholly or in part pursuant to this Section if it determines that corrupt or fraudulent practices were engaged in by any individual or entity in the creation or effectuation of the agreement or contract. The Commission shall also seek any other remedies that may be appropriate to address the corrupt or fraudulent activities; and

(2) have the authority to inspect and audit accounts and records of any entity relating to the execution and performance of any agreement or contract entered into in furtherance of any project approved wholly or in part pursuant to this Section.

(h) To inform the public and protect the unique and endangered natural ecosystem of Pembroke Township, the Commission shall provide public notice in an easily accessible manner of any past or pending complaints, legal claims, and regulatory actions concerning public safety, health, or the environment involving any individual or entity, including, but not limited to, a public utility, that is agreeing or contracting, or has agreed or contracted, to perform work related to the design, construction, installation, operation, or maintenance of any natural gas pipeline approved wholly or in part pursuant to this Section. Any individual or entity covered by this subsection shall provide the information to the Commission prior to undertaking any such work.

(i) Prior to construction pursuant to a certificate obtained wholly or in part pursuant to this Section, whether granted prior to or after the enactment of this Section, the natural gas utility shall submit a compliance filing to the Commission demonstrating that the preconstruction requirements in paragraphs (1) and (2) are satisfied. The Commission staff shall submit a report to the Commission with a recommendation as to whether the preconstruction requirements have been satisfied. Construction shall not commence until and unless the Commission issues an order determining that the preconstruction requirements have been met. The preconstruction requirements include:

(1) The Commission, the Department of Commerce and Economic Opportunity, and the Environmental Protection Agency shall jointly conduct and publish a comprehensive cost-benefit analysis of the project and associated risks and make a finding as to whether the project is net-beneficial for Pembroke Township as a whole and net-beneficial for subpopulations that may be differentially impacted by the project, including residents of greater Pembroke Township not in the Village of Hopkins Park. The analysis includes, but is not limited to: socioeconomic, public health, and environmental risk factors and vulnerabilities that may affect the costs and benefits of the proposed project on populations within Pembroke Township; an accounting of the social cost of greenhouse gases; and a consideration of the unique economic, environmental, and ecological impacts for Pembroke Township. The cost-benefit analysis shall also account for distributional impacts to ensure that it appropriately benefits and does not inappropriately burden disadvantaged, vulnerable, or marginalized communities.

(2) The Commission, jointly with any other State agency it deems appropriate, shall, on its own or utilizing an independent contractor, conduct a thorough alternative energy analysis to compare the costs and benefits of the natural gas expansion as proposed by the natural gas utility and approved by the Commission in granting a certificate of public convenience and necessity pursuant to this Section, including design, construction, installation, and operation of any natural gas pipelines and distribution infrastructure in Pembroke Township and the Village of Hopkins Park, relative to the costs and benefits of non-gas energy alternatives, including, but not limited to, building electrification, air and ground-source heat pumps, photovoltaic, and other options for providing environmentally sustainable utility services that are affordable to local households, consumers, businesses, farmers, and other industries and that meet the energy needs of Pembroke Township. The alternative energy analysis shall consider the social cost of greenhouse gases as established by the United States Office of Management and Budget Interagency Working Group on the Social Cost of Greenhouse Gases, including, but not limited to, methane and carbon, when comparing the relative climate costs of each alternative considered. The cost-benefit analysis shall also account for the distributional impacts of each alternative considered to ensure that it appropriately benefits and does not inappropriately burden disadvantaged, vulnerable, or marginalized communities. This analysis shall also evaluate rate estimates for each energy option, accounting for declining natural gas demand as a result of clean energy adoption, natural gas prices, and other factors as the Commission deems appropriate. The Commission shall make a finding as to whether the proposed natural gas expansion is the best alternative for meeting the energy needs of Pembroke Township considering affordability, sustainability, distributional impacts, and impact on the affected environment.

The cost-benefit analysis, alternative energy analysis, and any underpinning documentation shall be completed and filed as a report with the General Assembly and made available to the public. The natural gas utility shall be responsible for reimbursing the State for the costs of the analyses.

If the cost-benefit analysis finds that the proposed natural gas expansion is not net-beneficial for Pembroke Township and the subpopulations evaluated, or if the alternative energy analysis finds that the proposed natural gas expansion is not the best option for meeting the energy needs of Pembroke Township, then the Commission shall determine that the preconstruction requirements have not been satisfied and the certificate of public convenience and necessity shall be revoked.

Where construction has begun and is in progress prior to this amendatory Act of the 102nd General Assembly, that construction shall halt until the Commission has made a determination as to the preconstruction requirements.

(Source: P.A. 102-609, eff. 8-27-21.)