Sen. Patrick J. Joyce
Filed: 5/13/2021
 
 


 




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1
AMENDMENT TO HOUSE BILL 3404




2 AMENDMENT NO. ______. Amend House Bill 3404 by replacing 
3everything after the enacting clause with the following:


4 "Section 1. Short title. This Act may be cited as the 
5Pembroke Township Natural Gas Investment Pilot Program Act.

6 Section 5. Definitions. In this Act:
7 "Department" means the Department of Commerce and Economic 
8Opportunity.
9 "Qualifying gas pipeline project" means the construction 
10or installation of gas equipment used in connection with the 
11distribution and delivery of natural gas in Pembroke Township.


12 Section 10. Pembroke Township Natural Gas Investment Pilot 
13Program.

14 (a) The Department shall create the Pembroke Township 
15Natural Gas Investment Pilot Program for a duration of 5 
 
 
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1years. The Program shall provide that the Department shall 
2distribute grants, subject to appropriation, from moneys in 
3the Pembroke Township Natural Gas Investment Fund for the 
4conversion of appliances to be compatible with natural gas.

5 (b) The Department shall adopt rules for the 
6administration of the Program. At a minimum, the rules shall 
7require that the applicant for the grants demonstrate that the 
8grants will result in the conversion of necessary equipment to 
9have the ability to utilize natural gas. The rules shall allow 
10for conversion grants awarded to residents of Pembroke 
11Township and to Pembroke Township to provide assistance for 
12the use of natural gas and shall ensure that the applicant 
13complies with all other requirements of the rules.
14 (c) A grantee must maintain all records as required by 
15rule. The records shall be subject to audit by the Department, 
16by an auditor appointed by the Department, or by a State 
17officer authorized to conduct audits.

18 (d) Eligible applicants under this Program may include a 
19nonprofit or community action association that will help the 
20residents of Pembroke with the convergence of natural gas 
21services in the residents' homes. Notwithstanding any 
22provision of law to the contrary, an entity regulated under 
23the Public Utilities Act may serve as a grantee under this Act.

24 Section 15. Pembroke Township Natural Gas Investment Pilot 
25Program Fund. The Pembroke Township Natural Gas Investment 
 
 
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1Pilot Program Fund is created as a special fund in the State

2treasury. Subject to appropriation, all moneys in the Fund 
3shall be used by the
Department to fund grants for qualified 
4utility infrastructure
projects. The Department may accept 
5private and public funds,
including federal funds, for deposit 
6into the Fund. Earnings
attributable to moneys in the Fund 
7shall be deposited into the
Fund.


8 Section 20. Data collection and reporting. The Department 
9shall collect data regarding the successes and challenges of 
10the Pembroke Township Natural Gas Investment Pilot Program and 
11shall submit an annual report to the Governor and the General 
12Assembly by March 1 of each year beginning in 2022 until the 
13Pilot Program terminates. The report shall: (i) make a 
14recommendation as to whether the Pilot Program should 
15continue; (ii) provide cost estimates, including the average 
16per person costs; and (iii) recommend ways in which the Pilot 
17Program can be improved to better address the needs for 
18natural gas distribution.

19 Section 90. The State Finance Act is amended by adding 
20Section 5.935 as follows:

21 (30 ILCS 105/5.935 new)
22 Sec. 5.935. The Pembroke Township Natural Gas Investment 
23Pilot Program Fund.

 
 
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1 Section 95. The Public Utilities Act is amended by 
2changing Sections 8-406 and by adding Section 8-406.2 as 
3follows:

4 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
5 Sec. 8-406. Certificate of public convenience and 
6necessity. 
7 (a) No public utility not owning any city or village

8franchise nor engaged in performing any public service or in 
9furnishing any
product or commodity within this State as of 
10July 1, 1921 and not
possessing a certificate of
public 
11convenience and necessity from the Illinois Commerce 
12Commission,
the State Public Utilities Commission or
the 
13Public Utilities Commission, at the time this amendatory Act 
14of 1985 goes
into effect, shall transact any business in this 
15State until it shall have
obtained a certificate from the 
16Commission that public convenience and
necessity require the 
17transaction of such business. A certificate of public 
18convenience and necessity requiring the transaction of public 
19utility business in any area of this State shall include 
20authorization to the public utility receiving the certificate 
21of public convenience and necessity to construct such plant, 
22equipment, property, or facility as is provided for under the 
23terms and conditions of its tariff and as is necessary to 
24provide utility service and carry out the transaction of 
 
 
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1public utility business by the public utility in the 
2designated area. 
3 (b) No public utility shall begin the construction of any 
4new plant,
equipment, property or facility which is not in 
5substitution of any
existing plant, equipment, property or 
6facility or any extension or
alteration thereof or in addition 
7thereto,
unless and until it shall have obtained from the

8Commission a certificate that public convenience and necessity 
9require such
construction. Whenever after a hearing the 
10Commission determines that any
new construction or the 
11transaction of any business by a public utility will
promote 
12the public convenience and is necessary thereto, it shall have 
13the
power to issue certificates of public convenience and 
14necessity. The
Commission shall determine that proposed 
15construction will promote the
public convenience and necessity 
16only if the utility demonstrates: (1) that the
proposed 
17construction is necessary to provide adequate, reliable, and

18efficient service to its customers and is the
least-cost means 
19of
satisfying the service needs of its customers or that the 
20proposed construction will promote the development of an 
21effectively competitive electricity market that operates 
22efficiently, is equitable to all customers, and is the least 
23cost means of satisfying those objectives;
(2) that the 
24utility is capable of efficiently managing and
supervising the 
25construction process and has taken sufficient action to
ensure 
26adequate and efficient construction and supervision thereof; 
 
 
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1and (3)
that the utility is capable of financing the proposed 
2construction without
significant adverse financial 
3consequences for the utility or its
customers.
4 (c) After the effective date of this amendatory Act of 
51987, no
construction shall commence on any new nuclear
power 
6plant to be located within this State, and no certificate of 
7public
convenience and necessity or other authorization shall 
8be issued therefor
by the Commission, until the Director of 
9the Illinois Environmental
Protection Agency finds that the 
10United States Government, through its
authorized agency, has 
11identified and approved a demonstrable technology or
means for 
12the disposal of high level nuclear waste, or until such

13construction has been specifically approved by a statute 
14enacted by the General
Assembly.
15 As used in this Section, "high level nuclear waste" means 
16those aqueous
wastes resulting from the operation of the first 
17cycle of the solvent
extraction system or equivalent and the 
18concentrated wastes of the
subsequent extraction cycles or 
19equivalent in a facility for reprocessing
irradiated reactor 
20fuel and shall include spent fuel assemblies prior to
fuel 
21reprocessing.
22 (d) In making its determination under subsection (b) of 
23this Section, the Commission shall attach primary
weight to 
24the cost or cost savings to the customers of the utility. The

25Commission may consider any or all factors which will or may 
26affect such
cost or cost savings, including the public 
 
 
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1utility's engineering judgment regarding the materials used 
2for construction.
3 (e) The Commission may issue a temporary certificate which 
4shall remain
in force not to exceed one year in cases of 
5emergency, to assure maintenance
of adequate service or to 
6serve particular customers, without notice or
hearing, pending 
7the determination of an application for a certificate, and
may 
8by regulation exempt from the requirements of this Section 
9temporary
acts or operations for which the issuance of a 
10certificate will not be
required in the public interest.
11 A public utility shall not be required to obtain but may 
12apply for and
obtain a certificate of public convenience and 
13necessity pursuant to this
Section with respect to any matter 
14as to which it has received the
authorization or order of the 
15Commission under the Electric Supplier Act,
and any such 
16authorization or order granted a public utility by the

17Commission under that Act shall as between public utilities be 
18deemed to
be, and shall have except as provided in that Act the 
19same force and effect
as, a certificate of public convenience 
20and necessity issued pursuant to this
Section.
21 No electric cooperative shall be made or shall become a 
22party to or shall
be entitled to be heard or to otherwise 
23appear or participate in any
proceeding initiated under this 
24Section for authorization of power plant
construction and as 
25to matters as to which a remedy is available under The
Electric 
26Supplier Act.
 
 
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1 (f) Such certificates may be altered or modified by the 
2Commission, upon
its own motion or upon application by the 
3person or corporation affected.
Unless exercised within a 
4period of 2 years from the grant thereof
authority conferred 
5by a certificate of convenience and necessity issued by
the 
6Commission shall be null and void.
7 No certificate of public convenience and necessity shall 
8be construed as
granting a monopoly or an exclusive privilege, 
9immunity or franchise.
10 (g) A public utility that undertakes any of the actions 
11described in items (1) through (3) of this subsection (g) or 
12that has obtained approval pursuant to Section 8-406.1 of this 
13Act shall not be required to comply with the requirements of 
14this Section to the extent such requirements otherwise would 
15apply. For purposes of this Section and Section 8-406.1 of 
16this Act, "high voltage electric service line" means an 
17electric line having a design voltage of 100,000 or more. For 
18purposes of this subsection (g), a public utility may do any of 
19the following:
20  (1) replace or upgrade any existing high voltage 
21 electric service line and related facilities, 
22 notwithstanding its length;
23  (2) relocate any existing high voltage electric 
24 service line and related facilities, notwithstanding its 
25 length, to accommodate construction or expansion of a 
26 roadway or other transportation infrastructure; or
 
 
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1  (3) construct a high voltage electric service line and 
2 related facilities that is constructed solely to serve a 
3 single customer's premises or to provide a generator 
4 interconnection to the public utility's transmission 
5 system and that will pass under or over the premises owned 
6 by the customer or generator to be served or under or over 
7 premises for which the customer or generator has secured 
8 the necessary right of way. 
9 (h) A public utility seeking to construct a high-voltage 
10electric service line and related facilities (Project) must 
11show that the utility has held a minimum of 2 pre-filing public 
12meetings to receive public comment concerning the Project in 
13each county where the Project is to be located, no earlier than 
146 months prior to filing an application for a certificate of 
15public convenience and necessity from the Commission. Notice 
16of the public meeting shall be published in a newspaper of 
17general circulation within the affected county once a week for 
183 consecutive weeks, beginning no earlier than one month prior 
19to the first public meeting. If the Project traverses 2 
20contiguous counties and where in one county the transmission 
21line mileage and number of landowners over whose property the 
22proposed route traverses is one-fifth or less of the 
23transmission line mileage and number of such landowners of the 
24other county, then the utility may combine the 2 pre-filing 
25meetings in the county with the greater transmission line 
26mileage and affected landowners. All other requirements 
 
 
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1regarding pre-filing meetings shall apply in both counties. 
2Notice of the public meeting, including a description of the 
3Project, must be provided in writing to the clerk of each 
4county where the Project is to be located. A representative of 
5the Commission shall be invited to each pre-filing public 
6meeting.
7 (i) For applications filed after the effective date of 
8this amendatory Act of the 99th General Assembly, the 
9Commission shall by registered mail notify each owner of 
10record of land, as identified in the records of the relevant 
11county tax assessor, included in the right-of-way over which 
12the utility seeks in its application to construct a 
13high-voltage electric line of the time and place scheduled for 
14the initial hearing on the public utility's application. The 
15utility shall reimburse the Commission for the cost of the 
16postage and supplies incurred for mailing the notice.
17(Source: P.A. 99-399, eff. 8-18-15.)

18 (220 ILCS 5/8-406.2 new)
19 Sec. 8-406.2. Certificate of public convenience and 
20necessity; extension of utility service area and facilities to 
21serve designated hardship areas.
22 (a) This Section is intended to provide a mechanism by 
23which a gas public utility may extend its service territory 
24and gas distribution system to provide service to designated 
25low-income areas whose residents do not have access to natural 
 
 
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1gas service and must purchase more costly alternatives to 
2satisfy their energy needs.
3 (b) In this Section:
4 "Designated hardship area" is limited to Pembroke 
5Township, if the Township meets certain requirements. Any 
6"designated hardship area" only applies to the specific 
7community of Pembroke within the scope of the Project. 
8Pembroke Township will only be categorized as a "designated 
9hardship area" if it meets the following requirements:
10  (1) the area is designated as a qualified census tract 
11 by the U.S. Department of Housing and Urban Development as 
12 published in the most current Federal Register; if the 
13 U.S. Department of Housing and Urban Development ceases to 
14 make this designation, then at least 25% of the households 
15 in the area are at or below the poverty level; and
16  (2) the area is not currently served by a gas utility.
17 "Hardship area facilities" means all gas distribution 
18system facilities that are proposed to be constructed or 
19extended and used to serve the designated hardship area, 
20through and including retail gas meters. "Hardship area 
21facilities" includes the capacity to address reasonably 
22foreseeable growth in areas adjacent to or in the vicinity of 
23the designated hardship area.
24 (c) A gas public utility may apply for a certificate of 
25public convenience and necessity pursuant to this Section to 
26increase its gas service territory and extend its gas 
 
 
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1distribution system to serve a designated hardship area. An 
2application under this Section shall include all of the 
3following:
4  (1) a description of the designated hardship area and 
5 its relationship to the existing gas distribution system 
6 of the applicant;
7  (2) a showing that the designated hardship area meets 
8 the criteria for being a designated hardship area under 
9 subsection (b) of this Section;
10  (3) a description of the hardship area facilities 
11 proposed to serve the designated hardship area;
12  (4) a projection of the costs to construct and deploy 
13 the hardship area facilities;
14  (5) a showing that the estimated cost to construct and 
15 deploy the hardship area facilities is equal to or less 
16 than 250% of the amount allowed under the gas utilities' 
17 then current tariffs to provide standard service to extend 
18 main and services; and
19  (6) a statement to confirm that the public utility has 
20 held at least 2 pre-filing public meetings in the 
21 community and considered public input from those meetings 
22 when developing and implementing its plans.
23 (d) The Commission shall, after notice and hearing, grant 
24a certificate of public convenience and necessity under this 
25Section if, based upon the application filed with the 
26Commission and the evidentiary record, the Commission finds 
 
 
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1that all of the following criteria are satisfied:
2  (1) the area to be served is a designated hardship 
3 area;
4  (2) the proposed hardship area facilities will provide 
5 adequate, reliable, and efficient gas delivery service to 
6 the customers within the designated hardship area and are 
7 the least-cost means of providing such gas delivery 
8 service to these customers;
9  (3) the public utility is capable of efficiently 
10 managing and supervising the construction of the hardship 
11 area facilities and has taken sufficient action to ensure 
12 adequate and efficient construction and supervision of the 
13 construction;
14  (4) the public utility is capable of financing the 
15 construction of the hardship area facilities without 
16 significant adverse financial consequences for the utility 
17 or its customers;
18  (5) the estimated cost to construct and deploy the 
19 hardship area facilities is equal to or less than 250% of 
20 the amount allowed under the gas utilities then current 
21 tariffs to provide standard service to extend main and 
22 services;
23  (6) the public utility can guarantee that residents of 
24 Hopkins Park who choose to opt out of converting to a 
25 natural gas delivery service will not be assessed any 
26 charges relating to the pipeline construction or any other 
 
 
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1 fees relating to the designated hardship area facilities;
2  (7) the public utility disclosed to the Commission the 
3 mapping of the proposed pipeline and infrastructure 
4 management requirements within the designated hardship 
5 area; and
6  (8) the public utility has guaranteed that, before 
7 implementation, it will disclose to the Commission the 
8 cost to the utility for customers of Hopkins Park to 
9 utilize gas services. 
10 (e) The Commission shall issue its decision with findings 
11of fact and conclusions of law granting or denying the 
12application no later than 120 days after the application is 
13filed.


14 Section 99. Effective date. This Act takes effect upon 
15becoming law.".