103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3935
 
Introduced , by Rep. Dave Severin
 
SYNOPSIS AS INTRODUCED:



415 ILCS 5/9.15
415 ILCS 5/3.131 rep.

 Amends the Environmental Protection Act. Restores a provision in the Act concerning the regulation of greenhouse gases to its form prior to amendment by P.A. 102-662. Repeals a provision defining "clean energy". Effective immediately.



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A BILL FOR
 


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1 AN ACT concerning safety.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Environmental Protection Act is amended by 
5changing Section 9.15 as follows:

6 (415 ILCS 5/9.15)
7 Sec. 9.15. Greenhouse gases.
8 (a) An air pollution construction permit shall not be 
9required due to emissions of greenhouse gases if the 
10equipment, site, or source is not subject to regulation, as 
11defined by 40 CFR 52.21, as now or hereafter amended, for 
12greenhouse gases. This exemption does or is otherwise not 
13addressed in this Section or by the Board in regulations for 
14greenhouse gases. These exemptions do not relieve an owner or 
15operator from the obligation to comply with other applicable 
16rules or regulations.
17 (b) An air pollution operating permit shall not be 
18required due to emissions of greenhouse gases if the 
19equipment, site, or source is not subject to regulation, as 
20defined by Section 39.5 of this Act, for greenhouse gases. 
21This exemption does or is otherwise not addressed in this 
22Section or by the Board in regulations for greenhouse gases. 
23These exemptions do not relieve an owner or operator from the 
 
 
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1obligation to comply with other applicable rules or 
2regulations.
3 (c) Notwithstanding any provision to the contrary in this 
4Section, an air pollution construction or operating permit 
5shall not be required due to emissions of greenhouse gases if 
6any of the following events occur: (Blank). 
7  (1) enactment of federal legislation depriving the 
8 Administrator of the USEPA of authority to regulate 
9 greenhouse gases under the Clean Air Act;
10  (2) the issuance of any opinion, ruling, judgment, 
11 order, or decree by a federal court depriving the 
12 Administrator of the USEPA of authority to regulate 
13 greenhouse gases under the Clean Air Act; or
14  (3) action by the President of the United States or 
15 the President's authorized agent, including the 
16 Administrator of the USEPA, to repeal or withdraw the 
17 Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3, 
18 2010). 
19 This subsection (c) does not relieve an owner or operator 
20from the obligation to comply with applicable rules or 
21regulations other than those relating to greenhouse gases. 
22 (d) If any event listed in subsection (c) of this Section 
23occurs, permits issued after such event shall not impose 
24permit terms or conditions addressing greenhouse gases during 
25the effectiveness of any event listed in subsection (c). 
26(Blank).
 
 
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1 (e) If an event listed in subsection (c) of this Section 
2occurs, any owner or operator with a permit that includes 
3terms or conditions addressing greenhouse gases may elect to 
4submit an application to the Agency to address a revision or 
5repeal of such terms or conditions. The Agency shall 
6expeditiously process such permit application in accordance 
7with applicable laws and regulations. (Blank). 

8 (f) (Blank). As used in this Section:
9 "Carbon dioxide emission" means the plant annual CO2 total 
10output emission as measured by the United States Environmental 
11Protection Agency in its Emissions & Generation Resource 
12Integrated Database (eGrid), or its successor. 
13 "Carbon dioxide equivalent emissions" or "CO2e" means the 
14sum total of the mass amount of emissions in tons per year, 
15calculated by multiplying the mass amount of each of the 6 
16greenhouse gases specified in Section 3.207, in tons per year, 
17by its associated global warming potential as set forth in 40 
18CFR 98, subpart A, table A-1 or its successor, and then adding 
19them all together.
20 "Cogeneration" or "combined heat and power" refers to any 
21system that, either simultaneously or sequentially, produces 
22electricity and useful thermal energy from a single fuel 
23source.
24 "Copollutants" refers to the 6 criteria pollutants that 
25have been identified by the United States Environmental 
26Protection Agency pursuant to the Clean Air Act.
 
 
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1 "Electric generating unit" or "EGU" means a fossil 
2fuel-fired stationary boiler, combustion turbine, or combined 
3cycle system that serves a generator that has a nameplate 
4capacity greater than 25 MWe and produces electricity for 
5sale.
6 "Environmental justice community" means the definition of 
7that term based on existing methodologies and findings, used 
8and as may be updated by the Illinois Power Agency and its 
9program administrator in the Illinois Solar for All Program.
10 "Equity investment eligible community" or "eligible 
11community" means the geographic areas throughout Illinois that 
12would most benefit from equitable investments by the State 
13designed to combat discrimination and foster sustainable 
14economic growth. Specifically, eligible community means the 
15following areas:
16  (1) areas where residents have been historically 
17 excluded from economic opportunities, including 
18 opportunities in the energy sector, as defined as R3 areas 
19 pursuant to
Section 10-40 of the Cannabis Regulation and 
20 Tax Act; and
21  (2) areas where residents have been historically 
22 subject to disproportionate burdens of pollution, 
23 including pollution from the energy sector, as established 
24 by environmental justice communities as defined by the 
25 Illinois Power Agency pursuant to the Illinois Power 
26 Agency Act, excluding any racial or ethnic indicators.
 
 
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1 "Equity investment eligible person" or "eligible person" 
2means the persons who would most benefit from equitable 
3investments by the State designed to combat discrimination and 
4foster sustainable economic growth. Specifically, eligible 
5person means the following people:
6  (1) persons whose primary residence is in an equity 
7 investment eligible community;
8  (2) persons whose primary residence is in a 
9 municipality, or a county with a population under 100,000, 
10 where the closure of an electric generating unit or mine 
11 has been publicly announced or the electric generating 
12 unit or mine is in the process of closing or closed within 
13 the last 5 years;
14  (3) persons who are graduates of or currently enrolled 
15 in the foster care system; or
16  (4) persons who were formerly incarcerated.
17 "Existing emissions" means: 
18  (1) for CO2e, the total average tons-per-year of CO2e 
19 emitted by the EGU or large GHG-emitting unit either in 
20 the years 2018 through 2020 or, if the unit was not yet in 
21 operation by January 1, 2018, in the first 3 full years of 
22 that unit's operation; and
23  (2) for any copollutant, the total average 
24 tons-per-year of that copollutant emitted by the EGU or 
25 large GHG-emitting unit either in the years 2018 through 
26 2020 or, if the unit was not yet in operation by January 1, 
 
 
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1 2018, in the first 3 full years of that unit's operation. 
2 "Green hydrogen" means a power plant technology in which 
3an EGU creates electric power exclusively from electrolytic 
4hydrogen, in a manner that produces zero carbon and 
5copollutant emissions, using hydrogen fuel that is 
6electrolyzed using a 100% renewable zero carbon emission 
7energy source.
8 "Large greenhouse gas-emitting unit" or "large 
9GHG-emitting unit" means a unit that is an electric generating 
10unit or other fossil fuel-fired unit that itself has a 
11nameplate capacity or
serves a generator that has a nameplate 
12capacity greater than 25 MWe and that produces electricity, 
13including, but not limited to, coal-fired, coal-derived, 
14oil-fired, natural gas-fired, and cogeneration units.
15 "NOx emission rate" means the plant annual NOx total output 
16emission rate as measured by the United States Environmental 
17Protection Agency in its Emissions & Generation Resource 
18Integrated Database (eGrid), or its successor, in the most 
19recent year for which data is available.
20 "Public greenhouse gas-emitting units" or "public 
21GHG-emitting unit" means large greenhouse gas-emitting units, 
22including EGUs, that are wholly owned, directly or indirectly, 
23by one or more municipalities, municipal corporations, joint 
24municipal electric power agencies, electric cooperatives, or 
25other governmental or nonprofit entities, whether organized 
26and created under the laws of Illinois or another state.
 
 
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1 "SO2 emission rate" means the "plant annual SO2 total 
2output emission rate" as measured by the United States 
3Environmental Protection Agency in its Emissions & Generation 
4Resource Integrated Database (eGrid), or its successor, in the 
5most recent year for which data is available.
6 (g) All EGUs and large greenhouse gas-emitting units that 
7use coal or oil as a fuel and are not public GHG-emitting units 
8shall permanently reduce all CO2e and copollutant emissions to 
9zero no later than January 1, 2030.
10 (h) All EGUs and large greenhouse gas-emitting units that

11use coal as a fuel and are public GHG-emitting units shall

12permanently reduce CO2e emissions to
zero no later than 
13December 31, 2045. Any source or plant with such units must 
14also reduce their CO2e emissions by 45% from existing 
15emissions by no later than January 1, 2035. If the emissions 
16reduction requirement is not achieved by December 31, 2035, 
17the plant shall retire one or more units or otherwise reduce 
18its CO2e emissions by 45% from existing emissions by June 30, 
192038.
20 (i) All EGUs and large greenhouse gas-emitting units that 
21use gas as a fuel and are not public GHG-emitting units shall 
22permanently reduce all CO2e and copollutant emissions to zero, 
23including through unit retirement or the use of 100% green 
24hydrogen or other similar technology that is commercially 
25proven to achieve zero carbon emissions, according to the 
26following:
 
 
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1  (1) No later than January 1, 2030: all EGUs and large 
2 greenhouse gas-emitting units that have a NOx emissions 
3 rate of greater than 0.12 lbs/MWh or a SO2 emission rate of 
4 greater than 0.006 lb/MWh, and are located in or within 3 
5 miles of an environmental justice community designated as 
6 of January 1, 2021 or an equity investment eligible 
7 community.
8  (2) No later than January 1, 2040: all EGUs and large 
9 greenhouse gas-emitting units that have a NOx emission 
10 rate of greater than 0.12 lbs/MWh or a SO2 emission rate 
11 greater than 0.006 lb/MWh, and are not located in or 
12 within 3 miles of an environmental justice community 
13 designated as of January 1, 2021 or an equity investment 
14 eligible community. After January 1, 2035, each such EGU 
15 and large greenhouse gas-emitting unit shall reduce its 
16 CO2e emissions by at least 50% from its existing emissions 
17 for CO2e, and shall be limited in operation to, on average, 
18 6 hours or less per day, measured over a calendar year, and 
19 shall not run for more than 24 consecutive hours except in 
20 emergency conditions, as designated by a Regional 
21 Transmission Organization or Independent System Operator.
22  (3) No later than January 1, 2035: all EGUs and large 
23 greenhouse gas-emitting units that began operation prior 
24 to the effective date of this amendatory Act of the 102nd 
25 General Assembly and have a NOx emission rate of less than 
26 or equal to 0.12 lb/MWh and a SO2 emission rate less than 
 
 
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1 or equal to 0.006 lb/MWh, and are located in or within 3 
2 miles of an environmental justice community designated as 
3 of January 1, 2021 or an equity investment eligible 
4 community. Each such EGU and large greenhouse gas-emitting 
5 unit shall reduce its CO2e emissions by at least 50% from 
6 its existing emissions for CO2e no later than January 1, 
7 2030.
8  (4) No later than January 1, 2040: All remaining EGUs 
9 and large greenhouse gas-emitting units that have a heat 
10 rate greater than or equal to 7000 BTU/kWh. Each such EGU 
11 and Large greenhouse gas-emitting unit shall reduce its 
12 CO2e emissions by at least 50% from its existing emissions 
13 for CO2e no later than January 1, 2035.
14  (5) No later than January 1, 2045: all remaining EGUs 
15 and large greenhouse gas-emitting units. 
16 (j) All EGUs and large greenhouse gas-emitting units that 
17use gas as a fuel and are public GHG-emitting units shall 
18permanently reduce all CO2e and copollutant emissions to zero, 
19including through unit retirement or the use of 100% green 
20hydrogen or other similar technology that is commercially 
21proven to achieve zero carbon emissions by January 1, 2045.
22 (k) All EGUs and large greenhouse gas-emitting units that 
23utilize combined heat and power or cogeneration technology 
24shall permanently reduce all CO2e and copollutant emissions to 
25zero, including through unit retirement or the use of 100% 
26green hydrogen or other similar technology that is 
 
 
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1commercially proven to achieve zero carbon emissions by 
2January 1, 2045.
3 (k-5) No EGU or large greenhouse gas-emitting unit that 
4uses gas as a fuel and is not a public GHG-emitting unit may 
5emit, in any 12-month period, CO2e or copollutants in excess of 
6that unit's existing emissions for those pollutants. 
7 (l) Notwithstanding subsections (g) through (k-5), large 
8GHG-emitting units including EGUs may temporarily continue 
9emitting CO2e and copollutants after any applicable deadline 
10specified in any of subsections (g) through (k-5) if it has 
11been determined, as described in paragraphs (1) and (2) of 
12this subsection, that ongoing operation of the EGU is 
13necessary to maintain power grid supply and reliability or 
14ongoing operation of large GHG-emitting unit that is not an 
15EGU is necessary to serve as an emergency backup to 
16operations. Up to and including the occurrence of an emission 
17reduction deadline under subsection (i), all EGUs and large 
18GHG-emitting units must comply with the following terms:
19  (1) if an EGU or large GHG-emitting unit that is a 
20 participant in a regional transmission organization 
21 intends to retire, it must submit documentation to the 
22 appropriate regional transmission organization by the 
23 appropriate deadline that meets all applicable regulatory 
24 requirements necessary to obtain approval to permanently 
25 cease operating the large GHG-emitting unit;
26  (2) if any EGU or large GHG-emitting unit that is a 
 
 
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1 participant in a regional transmission organization 
2 receives notice that the regional transmission 
3 organization has determined that continued operation of 
4 the unit is required, the unit may continue operating 
5 until the issue identified by the regional transmission 
6 organization is resolved. The owner or operator of the 
7 unit must cooperate with the regional transmission 
8 organization in resolving the issue and must reduce its 
9 emissions to zero, consistent with the requirements under 
10 subsection (g), (h), (i), (j), (k), or (k-5), as 
11 applicable, as soon as practicable when the issue 
12 identified by the regional transmission organization is 
13 resolved; and
14  (3) any large GHG-emitting unit that is not a 
15 participant in a regional transmission organization shall 
16 be allowed to continue emitting CO2e and copollutants 
17 after the zero-emission date specified in subsection (g), 
18 (h), (i), (j), (k), or (k-5), as applicable, in the 
19 capacity of an emergency backup unit if approved by the 
20 Illinois Commerce Commission.
21 (m) No variance, adjusted standard, or other regulatory 
22relief otherwise available in this Act may be granted to the 
23emissions reduction and elimination obligations in this 
24Section.
25 (n) By June 30 of each year, beginning in 2025, the Agency 
26shall prepare and publish on its website a report setting 
 
 
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1forth the actual greenhouse gas emissions from individual 
2units and the aggregate statewide emissions from all units for 
3the prior year.
4 (o) Every 5 years beginning in 2025, the Environmental 
5Protection Agency, Illinois Power Agency, and Illinois 
6Commerce Commission shall jointly prepare, and release 
7publicly, a report to the General Assembly that examines the 
8State's current progress toward its renewable energy resource 
9development goals, the status of CO2e and copollutant 
10emissions reductions, the current status and progress toward 
11developing and implementing green hydrogen technologies, the 
12current and projected status of electric resource adequacy and 
13reliability throughout the State for the period beginning 5 
14years ahead, and proposed solutions for any findings. The 
15Environmental Protection Agency, Illinois Power Agency, and 
16Illinois Commerce Commission shall consult PJM 
17Interconnection, LLC and Midcontinent Independent System 
18Operator, Inc., or their respective successor organizations 
19regarding forecasted resource adequacy and reliability needs, 
20anticipated new generation interconnection, new transmission 
21development or upgrades, and any announced large GHG-emitting 
22unit closure dates and include this information in the report. 
23The report shall be released publicly by no later than 
24December 15 of the year it is prepared. If the Environmental 
25Protection Agency, Illinois Power Agency, and Illinois 
26Commerce Commission jointly conclude in the report that the 
 
 
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1data from the regional grid operators, the pace of renewable 
2energy development, the pace of development of energy storage 
3and demand response utilization, transmission capacity, and 
4the CO2e and copollutant emissions reductions required by 
5subsection (i) or (k-5) reasonably demonstrate that a resource 
6adequacy shortfall will occur, including whether there will be 
7sufficient in-state capacity to meet the zonal requirements of 
8MISO Zone 4 or the PJM ComEd Zone, per the requirements of the 
9regional transmission organizations, or that the regional 
10transmission operators determine that a reliability violation 
11will occur during the time frame the study is evaluating, then 
12the Illinois Power Agency, in conjunction with the 
13Environmental Protection Agency shall develop a plan to reduce 
14or delay CO2e and copollutant emissions reductions 
15requirements only to the extent and for the duration necessary 
16to meet the resource adequacy and reliability needs of the 
17State, including allowing any plants whose emission reduction 
18deadline has been identified in the plan as creating a 
19reliability concern to continue operating, including operating 
20with reduced emissions or as emergency backup where 
21appropriate. The plan shall also consider the use of renewable 
22energy, energy storage, demand response, transmission 
23development, or other strategies to resolve the identified 
24resource adequacy shortfall or reliability violation.
25  (1) In developing the plan, the Environmental 
26 Protection Agency and the Illinois Power Agency shall hold 
 
 
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1 at least one workshop open to, and accessible at a time and 
2 place convenient to, the public and shall consider any 
3 comments made by stakeholders or the public. Upon 
4 development of the plan, copies of the plan shall be 
5 posted and made publicly available on the Environmental 
6 Protection Agency's, the Illinois Power Agency's, and the 
7 Illinois Commerce Commission's websites. All interested 
8 parties shall have 60 days following the date of posting 
9 to provide comment to the Environmental Protection Agency 
10 and the Illinois Power Agency on the plan. All comments 
11 submitted to the Environmental Protection Agency and the 
12 Illinois Power Agency shall be encouraged to be specific, 
13 supported by data or other detailed analyses, and, if 
14 objecting to all or a portion of the plan, accompanied by 
15 specific alternative wording or proposals. All comments 
16 shall be posted on the Environmental Protection Agency's, 
17 the Illinois Power Agency's, and the Illinois Commerce 
18 Commission's websites. Within 30 days following the end of 
19 the 60-day review period, the Environmental Protection 
20 Agency and the Illinois Power Agency shall revise the plan 
21 as necessary based on the comments received and file its 
22 revised plan with the Illinois Commerce Commission for 
23 approval.
24  (2) Within 60 days after the filing of the revised 
25 plan at the Illinois Commerce Commission, any person 
26 objecting to the plan shall file an objection with the 
 
 
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1 Illinois Commerce Commission. Within 30 days after the 
2 expiration of the comment period, the Illinois Commerce 
3 Commission shall determine whether an evidentiary hearing 
4 is necessary. The Illinois Commerce Commission shall also 
5 host 3 public hearings within 90 days after the plan is 
6 filed. Following the evidentiary and public hearings, the 
7 Illinois Commerce Commission shall enter its order 
8 approving or approving with modifications the reliability 
9 mitigation plan within 180 days.
10  (3) The Illinois Commerce Commission shall only 
11 approve the plan if the Illinois Commerce Commission 
12 determines that it will resolve the resource adequacy or 
13 reliability deficiency identified in the reliability 
14 mitigation plan at the least amount of CO2e and copollutant 
15 emissions, taking into consideration the emissions impacts 
16 on environmental justice communities, and that it will 
17 ensure adequate, reliable, affordable, efficient, and 
18 environmentally sustainable electric service at the lowest 
19 total cost over time, taking into account the impact of 
20 increases in emissions.
21  (4) If the resource adequacy or reliability deficiency 
22 identified in the reliability mitigation plan is resolved 
23 or reduced, the Environmental Protection Agency and the 
24 Illinois Power Agency may file an amended plan adjusting 
25 the reduction or delay in CO2e and copollutant emission 
26 reduction requirements identified in the plan. 
 
 
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1(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)

2 (415 ILCS 5/3.131 rep.)
3 Section 10. The Environmental Protection Act is amended by 
4repealing Section 3.131.


5 Section 99. Effective date. This Act takes effect upon 
6becoming law.