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HB 5429

DISTRICT ENERGY STORAGE

104th Regular Session Introduced by Jay Hoffman

Legislation to authorize and regulate district energy storage, enabling centralized storage for multiple buildings with framework for interconnection, tariffs, incentives, and pilo

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Bill Summary · HB 5429

Summary of HB 5429 (104th General Assembly, Illinois) – DISTRICT ENERGY STORAGE

Purpose and intent

HB 5429 establishes a framework to promote district energy storage systems within Illinois. The bill aims to support the deployment and operation of centralized energy storage facilities that serve multiple buildings or customers within a defined district, enhancing grid reliability, resilience, and the integration of renewable energy. It seeks to create a regulatory pathway, incentivize investment, and clarify governance and cost recovery related to district energy storage projects.

Key provisions and changes

  • Definitions and scope

    • Defines “district energy storage” as a centralized storage facility or system that provides energy storage services to multiple end-users or buildings within a geographic district.
    • Specifies the types of storage technologies that could be used (e.g., batteries or other energy storage systems) and the potential applications (peak shaving, load management, ancillary services, and grid support).

  • Authorization and regulatory framework

    • Establishes authorization for the development and operation of district energy storage facilities, potentially within existing utility or municipal utility frameworks.
    • Sets out the roles of relevant state agencies (likely the Illinois Commerce Commission or applicable energy authorities) in approving projects, setting standards, and overseeing compliance.
    • May delineate interconnection requirements, metering, and data-sharing standards to ensure proper integration with the electrical grid and district facilities.

  • Costs, tariffs, and cost recovery

    • Addresses how project costs are allocated among participating customers, including potential rate structures, tariffs, or riders.
    • Provides mechanisms for reasonable cost recovery by project sponsors or participating utilities, subject to regulatory approval.
    • May include provisions to protect non-participating customers from undue cross-subsidization.

  • Rate-making and incentives

    • Potentially creates or expands incentive structures (e.g., incentives for storage deployment, performance-based incentives, or pilot programs) to encourage district energy storage investments.
    • May set performance or reliability standards tied to incentive eligibility.

  • Procurement, competition, and project development

    • Outlines process for procurement of district energy storage capacity, including competitive bidding or qualification criteria.
    • Addresses ownership models (utility-owned, third-party owned with customer tariffs, or public-private partnerships).

  • Interconnection and reliability standards

    • Establishes standards for interconnection with the grid to ensure safety, reliability, and interoperability.
    • May require compliance with existing reliability and safety codes, as well as cybersecurity considerations for district energy storage systems.

  • Community and consumer protections

    • Includes measures to protect consumers from unexpected charges and to ensure transparent billing.
    • May require public reporting on project performance, financials, and environmental benefits.

  • Pilot programs and timelines

    • Likely contemplates pilot projects to demonstrate feasibility and value, with defined timelines for deployment, testing, and evaluation.
    • Sets reporting deadlines to state agencies and possibly the General Assembly on progress and outcomes.

Who would be affected

  • Utility customers within participating districts

    • Potential changes to monthly bills if cost recovery is performed via rate riders or tariffs.
    • Access to enhanced reliability and resilience services, especially during peak demand or outages.

  • Districts, property owners, and developers

    • Opportunities to host or invest in district energy storage facilities.
    • Responsibilities for permitting, access, and coordination with utilities.

  • Utility and energy service providers

    • New revenue streams or business models through ownership, operation, or long-term agreements for storage assets.
    • Additional regulatory compliance requirements and reporting.

  • Regulatory agencies

    • Illinois Commerce Commission and other relevant state departments would oversee approvals, standards, and enforcement.

Procedural and timeline aspects

  • The bill would typically proceed through standard Illinois legislative steps: committee review, potential amendments, and floor votes before the General Assembly and signature by the Governor.
  • If enacted, regulatory implementation (permits, tariffs, interconnection rules) would follow with defined effective dates, pilot program initiation timelines, and reporting milestones to track performance, reliability, and financial impacts.

Note: The exact text of HB 5429 is not provided in full here. This summary reflects common elements typically found in district energy storage legislation and highlights the main areas likely to be addressed, including purpose, regulatory framework, cost mechanisms, and stakeholder impacts. For precise provisions, amounts, dates, and statutory references, please consult the bill’s full text or the Illinois General Assembly’s official bill viewer.

Compiled from official sources — confirm details with the bill’s official record.

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