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Public Act 102-0820


 

Public Act 0820 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0820
 
SB2940 EnrolledLRB102 20854 LNS 29735 b

    AN ACT concerning electric vehicles.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Electric Vehicle Act is amended by changing
Section 45 as follows:
 
    (20 ILCS 627/45)
    Sec. 45. Beneficial electrification.
    (a) It is the intent of the General Assembly to decrease
reliance on fossil fuels, reduce pollution from the
transportation sector, increase access to electrification for
all consumers, and ensure that electric vehicle adoption and
increased electricity usage and demand do not place
significant additional burdens on the electric system and
create benefits for Illinois residents.
        (1) Illinois should increase the adoption of electric
    vehicles in the State to 1,000,000 by 2030.
        (2) Illinois should strive to be the best state in the
    nation in which to drive and manufacture electric
    vehicles.
        (3) Widespread adoption of electric vehicles is
    necessary to electrify the transportation sector,
    diversify the transportation fuel mix, drive economic
    development, and protect air quality.
        (4) Accelerating the adoption of electric vehicles
    will drive the decarbonization of Illinois' transportation
    sector.
        (5) Expanded infrastructure investment will help
    Illinois more rapidly decarbonize the transportation
    sector.
        (6) Statewide adoption of electric vehicles requires
    increasing access to electrification for all consumers.
        (7) Widespread adoption of electric vehicles requires
    increasing public access to charging equipment throughout
    Illinois, especially in low-income and environmental
    justice communities, where levels of air pollution burden
    tend to be higher.
        (8) Widespread adoption of electric vehicles and
    charging equipment has the potential to provide customers
    with fuel cost savings and electric utility customers with
    cost-saving benefits.
        (9) Widespread adoption of electric vehicles can
    improve an electric utility's electric system efficiency
    and operational flexibility, including the ability of the
    electric utility to integrate renewable energy resources
    and make use of off-peak generation resources that support
    the operation of charging equipment.
        (10) Widespread adoption of electric vehicles should
    stimulate innovation, competition, and increased choices
    in charging equipment and networks and should also attract
    private capital investments and create high-quality jobs
    in Illinois.
    (b) As used in this Section:
    "Agency" means the Environmental Protection Agency.
    "Beneficial electrification programs" means programs that
lower carbon dioxide emissions, replace fossil fuel use,
create cost savings, improve electric grid operations, reduce
increases to peak demand, improve electric usage load shape,
and align electric usage with times of renewable generation.
All beneficial electrification programs shall provide for
incentives such that customers are induced to use electricity
at times of low overall system usage or at times when
generation from renewable energy sources is high. "Beneficial
electrification programs" include a portfolio of the
following:
        (1) time-of-use electric rates;
        (2) hourly pricing electric rates;
        (3) optimized charging programs or programs that
    encourage charging at times beneficial to the electric
    grid;
        (4) optional demand-response programs specifically
    related to electrification efforts;
        (5) incentives for electrification and associated
    infrastructure tied to using electricity at off-peak
    times;
        (6) incentives for electrification and associated
    infrastructure targeted to medium-duty and heavy-duty
    vehicles used by transit agencies;
        (7) incentives for electrification and associated
    infrastructure targeted to school buses;
        (8) incentives for electrification and associated
    infrastructure for medium-duty and heavy-duty government
    and private fleet vehicles;
        (9) low-income programs that provide access to
    electric vehicles for communities where car ownership or
    new car ownership is not common;
        (10) incentives for electrification in eligible
    communities;
        (11) incentives or programs to enable quicker adoption
    of electric vehicles by developing public charging
    stations in dense areas, workplaces, and low-income
    communities;
        (12) incentives or programs to develop electric
    vehicle infrastructure that minimizes range anxiety,
    filling the gaps in deployment, particularly in rural
    areas and along highway corridors;
        (13) incentives to encourage the development of
    electrification and renewable energy generation in close
    proximity in order to reduce grid congestion;
        (14) offer support to low-income communities who are
    experiencing financial and accessibility barriers such
    that electric vehicle ownership is not an option; and
        (15) other such programs as defined by the Commission.
    "Black, indigenous, and people of color" or "BIPOC" means
people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
    "Commission" means the Illinois Commerce Commission.
    "Coordinator" means the Electric Vehicle Coordinator.
    "Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, must be plugged in to
charge, and is licensed to drive on public roadways. "Electric
vehicle" does not include electric mopeds, electric
off-highway vehicles, motorcycles or hybrid electric vehicles
and extended-range electric vehicles that are also equipped
with conventional fueled propulsion or auxiliary engines.
    "Electric vehicle charging station" means a station that
delivers electricity from a source outside an electric vehicle
into one or more electric vehicles.
    "Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
    "Equity investment eligible community" or "eligible
community" means the geographic areas throughout Illinois
which would most benefit from equitable investments by the
State designed to combat discrimination and foster sustainable
economic growth. Specifically, "eligible community" means the
following areas:
        (1) areas where residents have been historically
    excluded from economic opportunities, including
    opportunities in the energy sector, as defined pursuant to
    Section 10-40 of the Cannabis Regulation and Tax Act; and
        (2) areas where residents have been historically
    subject to disproportionate burdens of pollution,
    including pollution from the energy sector, as established
    by environmental justice communities as defined by the
    Illinois Power Agency pursuant to Illinois Power Agency
    Act, excluding any racial or ethnic indicators.
    "Equity investment eligible person" or "eligible person"
means the persons who would most benefit from equitable
investments by the State designed to combat discrimination and
foster sustainable economic growth. Specifically, "eligible
person" means the following people:
        (1) persons whose primary residence is in an equity
    investment eligible community;
        (2) persons who are graduates of or currently enrolled
    in the foster care system; or
        (3) persons who were formerly incarcerated.
    "Low-income" means persons and families whose income does
not exceed 80% of the state median income for the current State
fiscal year as established by the U.S. Department of Health
and Human Services.
    "Make-ready infrastructure" means the electrical and
construction work necessary between the distribution circuit
to the connection point of charging equipment.
    "Optimized charging programs" mean programs whereby owners
of electric vehicles can set their vehicles to be charged
based on the electric system's current demand, retail or
wholesale market rates, incentives, the carbon or other
pollution intensity of the electric generation mix, the
provision of grid services, efficient use of the electric
grid, or the availability of clean energy generation.
Optimized charging programs may be operated by utilities as
well as third parties.
    (c) The Commission shall initiate a workshop process no
later than November 30, 2021 for the purpose of soliciting
input on the design of beneficial electrification programs
that the utility shall offer. The workshop shall be
coordinated by the Staff of the Commission, or a facilitator
retained by Staff, and shall be organized and facilitated in a
manner that encourages representation from diverse
stakeholders, including stakeholders representing
environmental justice and low-income communities, and ensures
equitable opportunities for participation, without requiring
formal intervention or representation by an attorney.
    The stakeholder workshop process shall take into
consideration the benefits of electric vehicle adoption and
barriers to adoption, including:
        (1) the benefit of lower bills for customers who do
    not charge electric vehicles;
        (2) benefits to the distribution system from electric
    vehicle usage;
        (3) the avoidance and reduction in capacity costs from
    optimized charging and off-peak charging;
        (4) energy price and cost reductions;
        (5) environmental benefits, including greenhouse gas
    emission and other pollution reductions;
        (6) current barriers to mass-market adoption,
    including cost of ownership and availability of charging
    stations;
        (7) current barriers to increasing access among
    populations that have limited access to electric vehicle
    ownership, communities significantly impacted by
    transportation-related pollution, and market segments that
    create disproportionate pollution impacts;
        (8) benefits of and incentives for medium-duty and
    heavy-duty fleet vehicle electrification;
        (9) opportunities for eligible communities to benefit
    from electrification;
        (10) geographic areas and market segments that should
    be prioritized for electrification infrastructure
    investment.
    The workshops shall consider barriers, incentives,
enabling rate structures, and other opportunities for the bill
reduction and environmental benefits described in this
subsection.
    The workshop process shall conclude no later than February
28, 2022. Following the workshop, the Staff of the Commission,
or the facilitator retained by the Staff, shall prepare and
submit a report, no later than March 31, 2022, to the
Commission that includes, but is not limited to,
recommendations for transportation electrification investment
or incentives in the following areas:
        (i) publicly accessible Level 2 and fast-charging
    stations, with a focus on bringing access to
    transportation electrification in densely populated areas
    and workplaces within eligible communities;
        (ii) medium-duty and heavy-duty charging
    infrastructure used by government and private fleet
    vehicles that serve or travel through environmental
    justice or eligible communities;
        (iii) medium-duty and heavy-duty charging
    infrastructure used in school bus operations, whether
    private or public, that primarily serve governmental or
    educational institutions, and also serve or travel through
    environmental justice or eligible communities;
        (iv) public transit medium-duty and heavy-duty
    charging infrastructure, developed in consultation with
    public transportation agencies; and
        (v) publicly accessible Level 2 and fast-charging
    stations targeted to fill gaps in deployment, particularly
    in rural areas and along State highway corridors.
    The report must also identify the participants in the
process, program designs proposed during the process,
estimates of the costs and benefits of proposed programs, any
material issues that remained unresolved at the conclusions of
such process, and any recommendations for workshop process
improvements. The report shall be used by the Commission to
inform and evaluate the cost effectiveness and achievement of
goals within the submitted Beneficial Electrification Plans.
    (d) No later than July 1, 2022, electric utilities serving
greater than 500,000 customers in the State shall file a
Beneficial Electrification Plan with the Illinois Commerce
Commission for programs that start no later than January 1,
2023. The plan shall take into consideration recommendations
from the workshop report described in this Section. Within 45
days after the filing of the Beneficial Electrification Plan,
the Commission shall, with reasonable notice, open an
investigation to consider whether the plan meets the
objectives and contains the information required by this
Section. The Commission shall determine if the proposed plan
is cost-beneficial and in the public interest. When
considering if the plan is in the public interest and
determining appropriate levels of cost recovery for
investments and expenditures related to programs proposed by
an electric utility, the Commission shall consider whether the
investments and other expenditures are designed and reasonably
expected to:
        (1) maximize total energy cost savings and rate
    reductions so that nonparticipants can benefit;
        (2) address environmental justice interests by
    ensuring there are significant opportunities for residents
    and businesses in eligible communities to directly
    participate in and benefit from beneficial electrification
    programs;
        (3) support at least a 40% investment of make-ready
    infrastructure incentives to facilitate the rapid
    deployment of charging equipment in or serving
    environmental justice, low-income, and eligible
    communities; however, nothing in this subsection is
    intended to require a specific amount of spending in a
    particular geographic area;
        (4) support at least a 5% investment target in
    electrifying medium-duty and heavy-duty school bus and
    diesel public transportation vehicles located in or
    serving environmental justice, low-income, and eligible
    communities in order to provide those communities and
    businesses with greater economic investment,
    transportation opportunities, and a cleaner environment so
    they can directly benefit from transportation
    electrification efforts; however, nothing in this
    subsection is intended to require a specific amount of
    spending in a particular geographic area;
        (5) stimulate innovation, competition, private
    investment, and increased consumer choices in electric
    vehicle charging equipment and networks;
        (6) contribute to the reduction of carbon emissions
    and meeting air quality standards, including improving air
    quality in eligible communities who disproportionately
    suffer from emissions from the medium-duty and heavy-duty
    transportation sector;
        (7) support the efficient and cost-effective use of
    the electric grid in a manner that supports electric
    vehicle charging operations; and
        (8) provide resources to support private investment in
    charging equipment for uses in public and private charging
    applications, including residential, multi-family, fleet,
    transit, community, and corridor applications.
    The plan shall be determined to be cost-beneficial if the
total cost of beneficial electrification expenditures is less
than the net present value of increased electricity costs
(defined as marginal avoided energy, avoided capacity, and
avoided transmission and distribution system costs) avoided by
programs under the plan, the net present value of reductions
in other customer energy costs, net revenue from all electric
charging in the service territory, and the societal value of
reduced carbon emissions and surface-level pollutants,
particularly in environmental justice communities. The
calculation of costs and benefits should be based on net
impacts, including the impact on customer rates.
    The Commission shall approve, approve with modifications,
or reject the plan within 270 days from the date of filing. The
Commission may approve the plan if it finds that the plan will
achieve the goals described in this Section and contains the
information described in this Section. Proceedings under this
Section shall proceed according to the rules provided by
Article IX of the Public Utilities Act. Information contained
in the approved plan shall be considered part of the record in
any Commission proceeding under Section 16-107.6 of the Public
Utilities Act, provided that a final order has not been
entered prior to the initial filing date. The Beneficial
Electrification Plan shall specifically address, at a minimum,
the following:
        (i) make-ready investments to facilitate the rapid
    deployment of charging equipment throughout the State,
    facilitate the electrification of public transit and other
    vehicle fleets in the light-duty, medium-duty, and
    heavy-duty sectors, and align with Agency-issued rebates
    for charging equipment;
        (ii) the development and implementation of beneficial
    electrification programs, including time-of-use rates and
    their benefit for electric vehicle users and for all
    customers, optimized charging programs to achieve savings
    identified, and new contracts and compensation for
    services in those programs, through signals that allow
    electric vehicle charging to respond to local system
    conditions, manage critical peak periods, serve as a
    demand response or peak resource, and maximize renewable
    energy use and integration into the grid;
        (iii) optional commercial tariffs utilizing
    alternatives to traditional demand-based rate structures
    to facilitate charging for light duty, heavy duty, and
    fleet electric vehicles;
        (iv) financial and other challenges to electric
    vehicle usage in low-income communities, and strategies
    for overcoming those challenges, particularly in
    communities and for people for whom car ownership is not
    an option;
        (v) methods of minimizing ratepayer impacts and
    exempting or minimizing, to the extent possible,
    low-income ratepayers from the costs associated with
    facilitating the expansion of electric vehicle charging;
        (vi) plans to increase access to Level 3 Public
    Electric Vehicle Charging Infrastructure to serve vehicles
    that need quicker charging times and vehicles of persons
    who have no other access to charging infrastructure,
    regardless of whether those projects participate in
    optimized charging programs;
        (vii) whether to establish charging standards for type
    of plugs eligible for investment or incentive programs,
    and if so, what standards;
        (viii) opportunities for coordination and cohesion
    with electric vehicle and electric vehicle charging
    equipment incentives established by any agency,
    department, board, or commission of the State, any other
    unit of government in the State, any national programs, or
    any unit of the federal government;
        (ix) ideas for the development of online tools,
    applications, and data sharing that provide essential
    information to those charging electric vehicles, and
    enable an automated charging response to price signals,
    emission signals, real-time renewable generation
    production, and other Commission-approved or
    customer-desired indicators of beneficial charging times;
    and
        (x) customer education, outreach, and incentive
    programs that increase awareness of the programs and the
    benefits of transportation electrification, including
    direct outreach to eligible communities;
    (e) Proceedings under this Section shall proceed according
to the rules provided by Article IX of the Public Utilities
Act. Information contained in the approved plan shall be
considered part of the record in any Commission proceeding
under Section 16-107.6 of the Public Utilities Act, provided
that a final order has not been entered prior to the initial
filing date.
    (f) The utility shall file an update to the plan on July 1,
2024 and every 3 years thereafter. This update shall describe
transportation investments made during the prior plan period,
investments planned for the following 24 months, and updates
to the information required by this Section. Beginning with
the first update, the utility shall develop the plan in
conjunction with the distribution system planning process
described in Section 16-105.17, including incorporation of
stakeholder feedback from that process.
    (g) Within 35 days after the utility files its report, the
Commission shall, upon its own initiative, open an
investigation regarding the utility's plan update to
investigate whether the objectives described in this Section
are being achieved. The Commission shall determine whether
investment targets should be increased based on achievement of
spending goals outlined in the Beneficial Electrification Plan
and consistency with outcomes directed in the plan stakeholder
workshop report. If the Commission finds, after notice and
hearing, that the utility's plan is materially deficient, the
Commission shall issue an order requiring the utility to
devise a corrective action plan, subject to Commission
approval, to bring the plan into compliance with the goals of
this Section. The Commission's order shall be entered within
270 days after the utility files its annual report. The
contents of a plan filed under this Section shall be available
for evidence in Commission proceedings. However, omission from
an approved plan shall not render any future utility
expenditure to be considered unreasonable or imprudent. The
Commission may, upon sufficient evidence, allow expenditures
that were not part of any particular distribution plan. The
Commission shall consider revenues from electric vehicles in
the utility's service territory in evaluating the retail rate
impact. The retail rate impact from the development of
electric vehicle infrastructure shall not exceed 1% per year
of the total annual revenue requirements of the utility.
    (h) In meeting the requirements of this Section, the
utility shall demonstrate efforts to increase the use of
contractors and electric vehicle charging station installers
that meet multiple workforce equity actions, including, but
not limited to:
        (1) the business is headquartered in or the person
    resides in an eligible community;
        (2) the business is majority owned by eligible person
    or the contractor is an eligible person;
        (3) the business or person is certified by another
    municipal, State, federal, or other certification for
    disadvantaged businesses;
        (4) the business or person meets the eligibility
    criteria for a certification program such as:
            (A) certified under Section 2 of the Business
        Enterprise for Minorities, Women, and Persons with
        Disabilities Act;
            (B) certified by another municipal, State,
        federal, or other certification for disadvantaged
        businesses;
            (C) submits an affidavit showing that the vendor
        meets the eligibility criteria for a certification
        program such as those in items (A) and (B); or
            (D) if the vendor is a nonprofit, meets any of the
        criteria in those in item (A), (B), or (C) with the
        exception that the nonprofit is not required to meet
        any criteria related to being a for-profit entity, or
        is controlled by a board of directors that consists of
        51% or greater individuals who are equity investment
        eligible persons; or
            (E) ensuring that program implementation
        contractors and electric vehicle charging station
        installers pay employees working on electric vehicle
        charging installations at or above the prevailing wage
        rate as published by the Department of Labor.
    Utilities shall establish reporting procedures for vendors
that ensure compliance with this subsection, but are
structured to avoid, wherever possible, placing an undue
administrative burden on vendors.
    (i) Program data collection.
        (1) In order to ensure that the benefits provided to
    Illinois residents and business by the clean energy
    economy are equitably distributed across the State, it is
    necessary to accurately measure the applicants and
    recipients of this Program. The purpose of this paragraph
    is to require the implementing utilities to collect all
    data from Program applicants and beneficiaries to track
    and improve equitable distribution of benefits across
    Illinois communities. The further purpose is to measure
    any potential impact of racial discrimination on the
    distribution of benefits and provide the utilities the
    information necessary to correct any discrimination
    through methods consistent with State and federal law.
        (2) The implementing utilities shall collect
    demographic and geographic data for each applicant and
    each person or business awarded benefits or contracts
    under this Program.
        (3) The implementing utilities shall collect the
    following information from applicants and Program or
    procurement beneficiaries where applicable:
            (A) demographic information, including racial or
        ethnic identity for real persons employed, contracted,
        or subcontracted through the program;
            (B) demographic information, including racial or
        ethnic identity of business owners;
            (C) geographic location of the residency of real
        persons or geographic location of the headquarters for
        businesses; and
            (D) any other information necessary for the
        purpose of achieving the purpose of this paragraph.
        (4) The utility shall publish, at least annually,
    aggregated information on the demographics of program and
    procurement applicants and beneficiaries. The utilities
    shall protect personal and confidential business
    information as necessary.
        (5) The utilities shall conduct a regular review
    process to confirm the accuracy of reported data.
        (6) On a quarterly basis, utilities shall collect data
    necessary to ensure compliance with this Section and shall
    communicate progress toward compliance to program
    implementation contractors and electric vehicle charging
    station installation vendors.
        (7) Utilities filing Beneficial Electrification Plans
    under this Section shall report annually to the Illinois
    Commerce Commission and the General Assembly on how
    hiring, contracting, job training, and other practices
    related to its Beneficial electrification programs enhance
    the diversity of vendors working on such programs. These
    reports must include data on vendor and employee
    diversity.
    (j) The provisions of this Section are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 102-662, eff. 9-15-21.)
 
    Section 10. The Electric Vehicle Rebate Act is amended by
changing Sections 10 and 27 as follows:
 
    (415 ILCS 120/10)
    Sec. 10. Definitions. As used in this Act:
    "Agency" means the Environmental Protection Agency.
    "Covered Area" means the counties of Cook, DuPage, Kane,
Lake, McHenry, and Will, the townships of Aux Sable and Goose
Lake in Grundy County, and the township of Oswego in Kendall
County.
    "Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, must be plugged in to
charge, and is licensed to drive on public roadways. "Electric
Vehicle" does not include electric mopeds, electric
off-highway vehicles motorcycles, or hybrid electric vehicles
and extended-range electric vehicles that are also equipped
with conventional fueled propulsion or auxiliary engines.
    "Environmental justice community" has the same meaning,
based on existing methodologies and findings, used and as may
be updated by the Illinois Power Agency and its Program
Administrator of the Illinois Solar for All Program.
    "Low income" means persons and families whose income does
not exceed 80% of the State median income for the current State
fiscal year, as established by the United States Department of
Health and Human Services.
(Source: P.A. 102-662, eff. 9-15-21.)
 
    (415 ILCS 120/27)
    Sec. 27. Electric vehicle rebate.
    (a) Beginning July 1, 2022, and continuing as long as
funds are available, each person shall be eligible to apply
for a rebate, in the amounts set forth below, following the
purchase of an electric vehicle in Illinois. The Agency shall
issue rebates consistent with the provisions of this Act and
any implementing regulations adopted by the Agency. In no
event shall a rebate amount exceed the purchase price of the
vehicle.
        (1) Beginning July 1, 2022, a $4,000 rebate for the
    purchase of an electric vehicle that is not an electric
    motorcycle.
        (2) Beginning July 1, 2026, a $2,000 rebate for the
    purchase of an electric vehicle that is not an electric
    motorcycle.
        (3) Beginning July 1, 2028, a $1,500 $1,000 rebate for
    the purchase of an electric vehicle that is not an
    electric motorcycle.
        (4) Beginning July 1, 2022, a $1,500 rebate for the
    purchase of an electric vehicle that is an electric
    motorcycle.
    (b) To be eligible to receive a rebate, a purchaser must:
        (1) Reside in Illinois, both at the time the vehicle
    was purchased and at the time the rebate is issued.
        (2) Purchase an electric vehicle in Illinois on or
    after July 1, 2022 and be the owner of the vehicle at the
    time the rebate is issued. Rented or leased vehicles,
    vehicles purchased from an out-of-state dealership, and
    vehicles delivered to or received by the purchaser
    out-of-state are not eligible for a rebate under this Act.
        (3) Apply for the rebate within 90 days after the
    vehicle purchase date, and provide to the Agency proof of
    residence, proof of vehicle ownership, and proof that the
    vehicle was purchased in Illinois, including a copy of a
    purchase agreement noting an Illinois seller. The
    purchaser must notify the Agency of any changes in
    residency or ownership of the vehicle that occur between
    application for a rebate and issuance of a rebate.
    (c) The Agency shall make available in application
materials methods for purchasers to identify as low-income.
The Agency shall prioritize the review of qualified
applications from low-income purchasers and award rebates to
qualified purchasers accordingly.
    (d) The purchaser must retain ownership of the vehicle for
a minimum of 12 consecutive months immediately after the
vehicle purchase date. The purchaser must continue to reside
in Illinois a covered area during that time frame and register
the vehicle in Illinois during that time frame. Rebate
recipients who fail to satisfy any of the above criteria will
be required to reimburse the Agency all or part of the original
rebate amount and shall notify the Agency within 60 days of
failing to satisfy the criteria.
    (e) Rebates administered under this Section shall be
available for both new and used passenger electric vehicles.
    (f) A rebate administered under this Act may only be
applied for and awarded one time per vehicle identification
number. A rebate may only be applied for and awarded once per
purchaser in any 10-year period.
(Source: P.A. 102-662, eff. 9-15-21.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 5/13/2022