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HB 4995

ELECTRIC TRANSMISSION SITING

104th Regular Session Introduced by Robyn Gabel

HB 4995 centralizes siting in priority corridors, allows DOT-approved colocation of high-voltage lines, expands DG/storage rebates, and launches a statewide DER-based virtual power

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Bill Summary · HB 4995

Summary of HB 4995 (104th General Assembly, Illinois)

Purpose and intent

  • Establishes the Electric Transmission Facilities Siting Act to guide the siting of new electric transmission facilities in Illinois.
  • Sets priority corridors for siting: (1) existing public utility corridors, (2) highway corridors, (3) new corridors.
  • Creates a framework to coordinate colocation of high-voltage electric service lines along public rights-of-way or highways, with review and approval by the Illinois Secretary of Transportation.
  • Reforms and expands rebate programs for distributed generation (DG) and energy storage, and integrates these into broader compensation schemes in the Public Utilities Act.
  • Adds provisions related to greenhouse gas planning and the coordination of emissions reduction goals with the Illinois Commerce Commission (ICC) and the Environmental Protection Agency (EPA).

Key provisions and changes

1) Electric transmission facilities siting

  • Priority corridors for new transmission facilities:
    • (1) Existing public utility corridors
    • (2) Highway corridors
    • (3) New corridors
  • Permitting along these corridors should account for economics, reliability, and environmental protection.
  • High-voltage electric service line colocation:
    • Utilities or developers may place such lines on public rights-of-way or along highways if they submit a colocation request to the Secretary of Transportation (Secretary) and the Secretary approves.
    • The Secretary can deny colocation if public safety is endangered or if the highway’s proper function would be interfered with.
    • Denial reasons must be shared with the utility/developer and the ICC within 90 days of denial.
  • Constructability report:
    • Upon identification of an acceptable location within a corridor, the utility/developer must, with the Department of Transportation (DOT), develop a constructability report detailing terms, conditions, and a proposed relocation moratorium window.
    • A permit for use of a public right-of-way for the high-voltage line is issued only after constructability report approval by both the DOT and the utility/developer.
    • Plans must be followed during planning/approval, including a 10-year advance notice for relocations if required by the DOT.
    • If relocations occur with insufficient advance notice or outside the prohibited window, the DOT covers 75% of relocation costs.

2) Public Utilities Act – distributed generation rebates and storage

  • Revisions to base rebates for distributed generation and energy storage:
    • Post-threshold-date rebates and base values adjusted; add-on payments for additive services may be determined by ICC after a statewide investigation (see below).
    • Stand-alone energy storage rebates: $250 per kilowatt-hour of nameplate capacity (subject to timing and pairing with DG or loads).
    • DG behind-the-meter storage rebates may be issued alongside or separate from DG rebates; DG could apply for both base rebates and storage rebates (depending on date and pairing).
  • Tariff filings and independent investigation:
    • Utilities with 200,000+ customers file tariffs for DG/storage rebates.
    • ICC to open a statewide investigation by June 30, 2023, into the value and compensation of distributed energy resources (DERs), including additive services. The investigation will establish:
    • A base rebate per kilowatt (or relevant unit) for DG and community renewables.
    • An ongoing framework for compensating additive services beyond base rebates.
    • Annual update mechanisms for tariff inputs aligned with integrated grid planning.
    • Potential compensation for DERs co-located with EV charging or other grid-supportive infrastructure.
  • Tariff implementation and cost recovery:
    • Utilities may defer costs as regulatory assets, amortize over 15 years, and earn a return on unamortized balances.
    • Options to recover costs via general rate cases, performance-based formulas, or automatic adjustment clauses, with detailed reconciliation requirements.
    • Timelines for tariff filings and ICC orders are specified (generally within months of filing; final orders within 240 days after filing).
  • Community renewable generation (CRG) projects:
    • CRG projects are eligible for rebates, with rules mirroring DG/storage provisions.

3) Virtual power plant (VPP) program and Section 16-107.9

  • Establishes a framework for a statewide VPP program to coordinate distributed energy resources (DERs) as grid services.
  • Tariffs to enable enrollment of behind-the-meter storage, non-storage storage, EV batteries, and other DERs, either directly or via aggregators.
  • Program elements include:
    • Aggregator-based participation with standardized enrollment and dispatch processes.
    • Dispatch opportunities, performance payments, and standardized grid service offerings (e.g., peak-shaving, frequency regulation, voltage support).
    • Requirements for operational parameters (frequency of grid events, notification lead times, etc.).
    • Direct participation and aggregator enrollment options, with protections to prevent double counting of devices.
    • Scheduled dispatch requirements for storage programs, including minimum dispatch windows and annual reporting.
    • Initial tariffs required by utilities by June 1, 2026, with ICC oversight and eventual expansion across utilities.

Who or what would be affected

  • Public utilities and developers constructing or maintaining high-voltage transmission lines.
  • Illinois Secretary of Transportation and DOT project coordinators involved in colocation approvals and constructability studies.
  • Illinois Commerce Commission (ICC) and electric utilities (including large investor-owned utilities) implementing distributed generation and energy storage rebates.
  • Customers hosting DG, energy storage, CRG projects, or DERs participating in VPP programs (through direct enrollment or via aggregators).
  • Environmental policy framework: integration with EPA planning and Illinois’ integrated resource planning efforts.

Procedural and timeline aspects

  • Siting provisions become effective immediately on passage.
  • Constructability report framework activated upon acceptable corridor identification.
  • Constructability approval required before public right-of-way permits.
  • 10-year relocation notice requirement when the Department directs relocation.
  • Statewide DER valuation investigation required to begin by June 30, 2023, with final orders establishing base rebates and additive service compensation.
  • Tariff amendments for rebates to be filed and approved within specified windows (generally up to 240 days after filing).
  • VPP program development and tariff adoption targeted for timelines through 2026-2028, with initial tariff filings by 2027 and approvals by 1 year after filing.
  • By January 1, 2030 (for certain provisions), utilities must file reports on DER participation and impacts.

Effectively, HB 4995 centralizes siting decisions to prioritize corridors, formalizes colocation with DOT oversight, creates constructability agreements, expands DG/storage rebates with a path to additive-service compensation, and launches a statewide VPP framework to optimize distributed energy resources for grid efficiency and resilience.

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

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