Illinois-2021-SB3614-Introduced

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3614

Introduced 1/19/2022, by Sen. Sue Rezin

SYNOPSIS AS INTRODUCED:

415 ILCS 5/9.15

Amends the Environmental Protection Act. Provides that, every 5 years beginning in 2022 (rather than beginning in 2025), the Environmental Protection Agency, Illinois Power Agency, and Illinois Commerce Commission shall jointly prepare, and release publicly, a report to the General Assembly with specified information. 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,

3 represented in the General Assembly:

4 Section 5. The Environmental Protection Act is amended by

5 changing 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

9 required due to emissions of greenhouse gases if the

10 equipment, site, or source is not subject to regulation, as

11 defined by 40 CFR 52.21, as now or hereafter amended, for

12 greenhouse gases or is otherwise not addressed in this Section

13 or by the Board in regulations for greenhouse gases. These

14 exemptions do not relieve an owner or operator from the

15 obligation to comply with other applicable rules or

16 regulations.

17 (b) An air pollution operating permit shall not be

18 required due to emissions of greenhouse gases if the

19 equipment, site, or source is not subject to regulation, as

20 defined by Section 39.5 of this Act, for greenhouse gases or is

21 otherwise not addressed in this Section or by the Board in

22 regulations for greenhouse gases. These exemptions do not

23 relieve an owner or operator from the obligation to comply

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1 with other applicable rules or regulations.

2 (c) (Blank).

3 (d) (Blank).

4 (e) (Blank).

5 (f) As used in this Section:

6 "Carbon dioxide emission" means the plant annual CO₂ total

7 output emission as measured by the United States Environmental

8 Protection Agency in its Emissions & Generation Resource

9 Integrated Database (eGrid), or its successor.

10 "Carbon dioxide equivalent emissions" or "CO₂e" means the

11 sum total of the mass amount of emissions in tons per year,

12 calculated by multiplying the mass amount of each of the 6

13 greenhouse gases specified in Section 3.207, in tons per year,

14 by its associated global warming potential as set forth in 40

15 CFR 98, subpart A, table A-1 or its successor, and then adding

16 them all together.

17 "Cogeneration" or "combined heat and power" refers to any

18 system that, either simultaneously or sequentially, produces

19 electricity and useful thermal energy from a single fuel

20 source.

21 "Copollutants" refers to the 6 criteria pollutants that

22 have been identified by the United States Environmental

23 Protection Agency pursuant to the Clean Air Act.

24 "Electric generating unit" or "EGU" means a fossil

25 fuel-fired stationary boiler, combustion turbine, or combined

26 cycle system that serves a generator that has a nameplate

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1 capacity greater than 25 MWe and produces electricity for

2 sale.

3 "Environmental justice community" means the definition of

4 that term based on existing methodologies and findings, used

5 and as may be updated by the Illinois Power Agency and its

6 program administrator in the Illinois Solar for All Program.

7 "Equity investment eligible community" or "eligible

8 community" means the geographic areas throughout Illinois that

9 would most benefit from equitable investments by the State

10 designed to combat discrimination and foster sustainable

11 economic growth. Specifically, eligible community means the

12 following areas:

13 (1) areas where residents have been historically

14 excluded from economic opportunities, including

15 opportunities in the energy sector, as defined as R3 areas

16 pursuant to Section 10-40 of the Cannabis Regulation and

17 Tax Act; and

18 (2) areas where residents have been historically

19 subject to disproportionate burdens of pollution,

20 including pollution from the energy sector, as established

21 by environmental justice communities as defined by the

22 Illinois Power Agency pursuant to the Illinois Power

23 Agency Act, excluding any racial or ethnic indicators.

24 "Equity investment eligible person" or "eligible person"

25 means the persons who would most benefit from equitable

26 investments by the State designed to combat discrimination and

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1 foster sustainable economic growth. Specifically, eligible

2 person means the following people:

3 (1) persons whose primary residence is in an equity

4 investment eligible community;

5 (2) persons whose primary residence is in a

6 municipality, or a county with a population under 100,000,

7 where the closure of an electric generating unit or mine

8 has been publicly announced or the electric generating

9 unit or mine is in the process of closing or closed within

10 the last 5 years;

11 (3) persons who are graduates of or currently enrolled

12 in the foster care system; or

13 (4) persons who were formerly incarcerated.

14 "Existing emissions" means:

15 (1) for CO₂e, the total average tons-per-year of CO₂e

16 emitted by the EGU or large GHG-emitting unit either in

17 the years 2018 through 2020 or, if the unit was not yet in

18 operation by January 1, 2018, in the first 3 full years of

19 that unit's operation; and

20 (2) for any copollutant, the total average

21 tons-per-year of that copollutant emitted by the EGU or

22 large GHG-emitting unit either in the years 2018 through

23 2020 or, if the unit was not yet in operation by January 1,

24 2018, in the first 3 full years of that unit's operation.

25 "Green hydrogen" means a power plant technology in which

26 an EGU creates electric power exclusively from electrolytic

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1 hydrogen, in a manner that produces zero carbon and

2 copollutant emissions, using hydrogen fuel that is

3 electrolyzed using a 100% renewable zero carbon emission

4 energy source.

5 "Large greenhouse gas-emitting unit" or "large

6 GHG-emitting unit" means a unit that is an electric generating

7 unit or other fossil fuel-fired unit that itself has a

8 nameplate capacity or serves a generator that has a nameplate

9 capacity greater than 25 MWe and that produces electricity,

10 including, but not limited to, coal-fired, coal-derived,

11 oil-fired, natural gas-fired, and cogeneration units.

12 "NO_x emission rate" means the plant annual NO_x total output

13 emission rate as measured by the United States Environmental

14 Protection Agency in its Emissions & Generation Resource

15 Integrated Database (eGrid), or its successor, in the most

16 recent year for which data is available.

17 "Public greenhouse gas-emitting units" or "public

18 GHG-emitting unit" means large greenhouse gas-emitting units,

19 including EGUs, that are wholly owned, directly or indirectly,

20 by one or more municipalities, municipal corporations, joint

21 municipal electric power agencies, electric cooperatives, or

22 other governmental or nonprofit entities, whether organized

23 and created under the laws of Illinois or another state.

24 "SO₂ emission rate" means the "plant annual SO₂ total

25 output emission rate" as measured by the United States

26 Environmental Protection Agency in its Emissions & Generation

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1 Resource Integrated Database (eGrid), or its successor, in the

2 most recent year for which data is available.

3 (g) All EGUs and large greenhouse gas-emitting units that

4 use coal or oil as a fuel and are not public GHG-emitting units

5 shall permanently reduce all CO₂e and copollutant emissions to

6 zero no later than January 1, 2030.

7 (h) All EGUs and large greenhouse gas-emitting units that

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

9 permanently reduce CO₂e emissions to zero no later than

10 December 31, 2045. Any source or plant with such units must

11 also reduce their CO₂e emissions by 45% from existing

12 emissions by no later than January 1, 2035. If the emissions

13 reduction requirement is not achieved by December 31, 2035,

14 the plant shall retire one or more units or otherwise reduce

15 its CO₂e emissions by 45% from existing emissions by June 30,

16 2038.

17 (i) All EGUs and large greenhouse gas-emitting units that

18 use gas as a fuel and are not public GHG-emitting units shall

19 permanently reduce all CO₂e and copollutant emissions to zero,

20 including through unit retirement or the use of 100% green

21 hydrogen or other similar technology that is commercially

22 proven to achieve zero carbon emissions, according to the

23 following:

24 (1) No later than January 1, 2030: all EGUs and large

25 greenhouse gas-emitting units that have a NO_x emissions

26 rate of greater than 0.12 lbs/MWh or a SO₂ emission rate of

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1 greater than 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.

5 (2) No later than January 1, 2040: all EGUs and large

6 greenhouse gas-emitting units that have a NO_x emission

7 rate of greater than 0.12 lbs/MWh or a SO₂ emission rate

8 greater than 0.006 lb/MWh, and are not located in or

9 within 3 miles of an environmental justice community

10 designated as of January 1, 2021 or an equity investment

11 eligible community. After January 1, 2035, each such EGU

12 and large greenhouse gas-emitting unit shall reduce its

13 CO₂e emissions by at least 50% from its existing emissions

14 for CO₂e, and shall be limited in operation to, on average,

15 6 hours or less per day, measured over a calendar year, and

16 shall not run for more than 24 consecutive hours except in

17 emergency conditions, as designated by a Regional

18 Transmission Organization or Independent System Operator.

19 (3) No later than January 1, 2035: all EGUs and large

20 greenhouse gas-emitting units that began operation prior

21 to the effective date of this amendatory Act of the 102nd

22 General Assembly and have a NO_x emission rate of less than

23 or equal to 0.12 lb/MWh and a SO₂ emission rate less than

24 or equal to 0.006 lb/MWh, and are located in or within 3

25 miles of an environmental justice community designated as

26 of January 1, 2021 or an equity investment eligible

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1 community. Each such EGU and large greenhouse gas-emitting

2 unit shall reduce its CO₂e emissions by at least 50% from

3 its existing emissions for CO₂e no later than January 1,

4 2030.

5 (4) No later than January 1, 2040: All remaining EGUs

6 and large greenhouse gas-emitting units that have a heat

7 rate greater than or equal to 7000 BTU/kWh. Each such EGU

8 and Large greenhouse gas-emitting unit shall reduce its

9 CO₂e emissions by at least 50% from its existing emissions

10 for CO₂e no later than January 1, 2035.

11 (5) No later than January 1, 2045: all remaining EGUs

12 and large greenhouse gas-emitting units.

13 (j) All EGUs and large greenhouse gas-emitting units that

14 use gas as a fuel and are public GHG-emitting units shall

15 permanently reduce all CO₂e and copollutant emissions to zero,

16 including through unit retirement or the use of 100% green

17 hydrogen or other similar technology that is commercially

18 proven to achieve zero carbon emissions by January 1, 2045.

19 (k) All EGUs and large greenhouse gas-emitting units that

20 utilize combined heat and power or cogeneration technology

21 shall permanently reduce all CO₂e and copollutant emissions to

22 zero, including through unit retirement or the use of 100%

23 green hydrogen or other similar technology that is

24 commercially proven to achieve zero carbon emissions by

25 January 1, 2045.

26 (k-5) No EGU or large greenhouse gas-emitting unit that

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1 uses gas as a fuel and is not a public GHG-emitting unit may

2 emit, in any 12-month period, CO₂e or copollutants in excess of

3 that unit's existing emissions for those pollutants.

4 (l) Notwithstanding subsections (g) through (k-5), large

5 GHG-emitting units including EGUs may temporarily continue

6 emitting greenhouse gases after any applicable deadline

7 specified in any of subsections (g) through (k-5) if it has

8 been determined, as described in paragraphs (1) and (2) of

9 this subsection, that ongoing operation of the EGU is

10 necessary to maintain power grid supply and reliability or

11 ongoing operation of large GHG-emitting unit that is not an

12 EGU is necessary to serve as an emergency backup to

13 operations. Up to and including the occurrence of an emission

14 reduction deadline under subsection (i), all EGUs and large

15 GHG-emitting units must comply with the following terms:

16 (1) if an EGU or large GHG-emitting unit that is a

17 participant in a regional transmission organization

18 intends to retire, it must submit documentation to the

19 appropriate regional transmission organization by the

20 appropriate deadline that meets all applicable regulatory

21 requirements necessary to obtain approval to permanently

22 cease operating the large GHG-emitting unit;

23 (2) if any EGU or large GHG-emitting unit that is a

24 participant in a regional transmission organization

25 receives notice that the regional transmission

26 organization has determined that continued operation of

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1 the unit is required, the unit may continue operating

2 until the issue identified by the regional transmission

3 organization is resolved. The owner or operator of the

4 unit must cooperate with the regional transmission

5 organization in resolving the issue and must reduce its

6 emissions to zero, consistent with the requirements under

7 subsection (g), (h), (i), (j), (k), or (k-5), as

8 applicable, as soon as practicable when the issue

9 identified by the regional transmission organization is

10 resolved; and

11 (3) any large GHG-emitting unit that is not a

12 participant in a regional transmission organization shall

13 be allowed to continue emitting greenhouse gases after the

14 zero-emission date specified in subsection (g), (h), (i),

15 (j), (k), or (k-5), as applicable, in the capacity of an

16 emergency backup unit if approved by the Illinois Commerce

17 Commission.

18 (m) No variance, adjusted standard, or other regulatory

19 relief otherwise available in this Act may be granted to the

20 emissions reduction and elimination obligations in this

21 Section.

22 (n) By June 30 of each year, beginning in 2025, the Agency

23 shall prepare and publish on its website a report setting

24 forth the actual greenhouse gas emissions from individual

25 units and the aggregate statewide emissions from all units for

26 the prior year.

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1 (o) Every 5 years beginning in 2022 ~~2025~~, the

2 Environmental Protection Agency, Illinois Power Agency, and

3 Illinois Commerce Commission shall jointly prepare, and

4 release publicly, a report to the General Assembly that

5 examines the State's current progress toward its renewable

6 energy resource development goals, the status of CO₂e and

7 copollutant emissions reductions, the current status and

8 progress toward developing and implementing green hydrogen

9 technologies, the current and projected status of electric

10 resource adequacy and reliability throughout the State for the

11 period beginning 5 years ahead, and proposed solutions for any

12 findings. The Environmental Protection Agency, Illinois Power

13 Agency, and Illinois Commerce Commission shall consult PJM

14 Interconnection, LLC and Midcontinent Independent System

15 Operator, Inc., or their respective successor organizations

16 regarding forecasted resource adequacy and reliability needs,

17 anticipated new generation interconnection, new transmission

18 development or upgrades, and any announced large GHG-emitting

19 unit closure dates and include this information in the report.

20 The report shall be released publicly by no later than

21 December 15 of the year it is prepared. If the Environmental

22 Protection Agency, Illinois Power Agency, and Illinois

23 Commerce Commission jointly conclude in the report that the

24 data from the regional grid operators, the pace of renewable

25 energy development, the pace of development of energy storage

26 and demand response utilization, transmission capacity, and

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1 the CO₂e and copollutant emissions reductions required by

2 subsection (i) or (k-5) reasonably demonstrate that a resource

3 adequacy shortfall will occur, including whether there will be

4 sufficient in-state capacity to meet the zonal requirements of

5 MISO Zone 4 or the PJM ComEd Zone, per the requirements of the

6 regional transmission organizations, or that the regional

7 transmission operators determine that a reliability violation

8 will occur during the time frame the study is evaluating, then

9 the Illinois Power Agency, in conjunction with the

10 Environmental Protection Agency shall develop a plan to reduce

11 or delay CO₂e and copollutant emissions reductions

12 requirements only to the extent and for the duration necessary

13 to meet the resource adequacy and reliability needs of the

14 State, including allowing any plants whose emission reduction

15 deadline has been identified in the plan as creating a

16 reliability concern to continue operating, including operating

17 with reduced emissions or as emergency backup where

18 appropriate. The plan shall also consider the use of renewable

19 energy, energy storage, demand response, transmission

20 development, or other strategies to resolve the identified

21 resource adequacy shortfall or reliability violation.

22 (1) In developing the plan, the Environmental

23 Protection Agency and the Illinois Power Agency shall hold

24 at least one workshop open to, and accessible at a time and

25 place convenient to, the public and shall consider any

26 comments made by stakeholders or the public. Upon

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1 development of the plan, copies of the plan shall be

2 posted and made publicly available on the Environmental

3 Protection Agency's, the Illinois Power Agency's, and the

4 Illinois Commerce Commission's websites. All interested

5 parties shall have 60 days following the date of posting

6 to provide comment to the Environmental Protection Agency

7 and the Illinois Power Agency on the plan. All comments

8 submitted to the Environmental Protection Agency and the

9 Illinois Power Agency shall be encouraged to be specific,

10 supported by data or other detailed analyses, and, if

11 objecting to all or a portion of the plan, accompanied by

12 specific alternative wording or proposals. All comments

13 shall be posted on the Environmental Protection Agency's,

14 the Illinois Power Agency's, and the Illinois Commerce

15 Commission's websites. Within 30 days following the end of

16 the 60-day review period, the Environmental Protection

17 Agency and the Illinois Power Agency shall revise the plan

18 as necessary based on the comments received and file its

19 revised plan with the Illinois Commerce Commission for

20 approval.

21 (2) Within 60 days after the filing of the revised

22 plan at the Illinois Commerce Commission, any person

23 objecting to the plan shall file an objection with the

24 Illinois Commerce Commission. Within 30 days after the

25 expiration of the comment period, the Illinois Commerce

26 Commission shall determine whether an evidentiary hearing

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1 is necessary. The Illinois Commerce Commission shall also

2 host 3 public hearings within 90 days after the plan is

3 filed. Following the evidentiary and public hearings, the

4 Illinois Commerce Commission shall enter its order

5 approving or approving with modifications the reliability

6 mitigation plan within 180 days.

7 (3) The Illinois Commerce Commission shall only

8 approve the plan if the Illinois Commerce Commission

9 determines that it will resolve the resource adequacy or

10 reliability deficiency identified in the reliability

11 mitigation plan at the least amount of CO₂e and copollutant

12 emissions, taking into consideration the emissions impacts

13 on environmental justice communities, and that it will

14 ensure adequate, reliable, affordable, efficient, and

15 environmentally sustainable electric service at the lowest

16 total cost over time, taking into account the impact of

17 increases in emissions.

18 (4) If the resource adequacy or reliability deficiency

19 identified in the reliability mitigation plan is resolved

20 or reduced, the Environmental Protection Agency and the

21 Illinois Power Agency may file an amended plan adjusting

22 the reduction or delay in CO₂e and copollutant emission

23 reduction requirements identified in the plan.

24 (Source: P.A. 102-662, eff. 9-15-21.)

25 Section 99. Effective date. This Act takes effect upon

26 becoming law.