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HB 5538

EPA-GHG-EMITTING UNITS-10YRS

104th Regular Session Introduced by Bill Hauter and 2 co-sponsors

Extends and tightens timelines for zero or substantially reduced CO2 and copollutant emissions from Illinois large GHG units, with earlier deadlines for EJ/ Equity areas and a five

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Bill Summary · HB 5538

Overview

HB5538 proposes to extend the deadlines for achieving zero or reduced carbon dioxide (CO2) and other pollutant reductions for electric generating units (EGUs) and other large greenhouse gas-emitting (GHG) units in Illinois. The bill targets units that run on gas or use cogeneration (combined heat and power) and sets a staged timeline for emissions reductions, culminating in zero emissions by 2030–2055 depending on unit type, fuel, and location (including environmental justice and equity considerations). It also introduces a process for reliability-based plan modification if grid adequacy or reliability concerns arise.

Main purpose and intent

  • Extend the timeline for achieving zero or substantially reduced CO2 and copollutant emissions from EGUs and large GHG-emitting units.
  • Establish a structured, milestone-based path toward zero emissions, with different deadlines by fuel type (gas vs coal/oil) and whether the unit is public or non-public GHG-emitting.
  • Incorporate environmental justice and equity-focused considerations into planning and implementation.
  • Create an ongoing, public reporting and planning framework to monitor progress and adjust plans to preserve reliability and resource adequacy.

Key provisions and changes

  • Greenhouse gas permitting exemptions (existing framework): Clarifies that GHG emissions permit exemptions apply only when units are not regulated for GHGs by federal/state rules. Exemptions do not relieve compliance with other rules.
  • Definitions (section-specific terms): The bill expands and codifies terms such as EGU, large GHG-emitting unit, cogeneration, equity investment eligible community/person, environmental justice community, CO2e (CO2 equivalent), Green hydrogen, NOx/SO2 emission rates, and existing emissions baselines (for measuring reductions).
  • Emission reduction deadlines by category:
    • Coal or oil-fueled EGUs and large GHG units not public: zero CO2 and copollutants by January 1, 2030.
    • Coal-fueled public GHG units: zero CO2e by December 31, 2045; 45% CO2e reduction from existing emissions by January 1, 2035; potential retirement or further reductions by mid-2038 if 2035 target not met.
    • Gas-fueled non-public units: zero CO2 and copollutants by 2040 (with phased NOx/SO2 criteria triggering earlier action); by 2050 for broader gas-fueled non-public units, and by 2045 for some gas units depending on emission rates and location.
    • Cogeneration units: zero CO2 and copollutant emissions by January 1, 2055.
  • Phase-in triggers by environmental justice/equity areas:
    • Early and more aggressive timelines apply to units located in or near environmental justice communities or equity investment eligible communities.
  • Provisions for temporary continuation:
    • Allow limited continued emissions beyond deadlines if operational reliability is at stake, under strict conditions and coordination with regional grid operators (RTOs/ISOs) or ICC approvals.
  • Reliability mitigation and plan process (new 5-year cycle):
    • By June 30 each year, the agencies must publish a report on emissions.
    • Every 5 years, a joint report to the General Assembly assesses renewable progress, CO2e reductions, hydrogen development, reliability, and resource adequacy; includes coordination with PJM/MISO.
    • If a reliability shortfall is anticipated, agencies must develop a reliability mitigation plan with public workshops, stakeholder comments, ICC review, public hearings, and ICC approval within set timeframes.
    • The plan must minimize CO2e and copollutant emissions while ensuring affordable, reliable electric service.
  • Plan modification authority:
    • The agencies may amend plans to delay or reduce reductions if reliability/resource adequacy concerns persist, including strategies like renewables, storage, demand response, and transmission upgrades.
  • Reporting:
    • Annual reporting of actual emissions by unit and aggregate statewide emissions starting in 2025.
  • No regulatory relief:
    • The bill prohibits variances or other regulatory relief that would undermine emission reduction obligations.
  • Publications and public engagement:
    • Requires public-facing plan documents, workshops, and a formal comment process with postings on agency websites.

Who and what would be affected

  • Large greenhouse gas-emitting units and EGUs in Illinois, including coal/oil-fired, gas-fired, cogeneration facilities, and public vs. non-public ownership scenarios.
  • Units located in or near environmental justice communities or equity investment eligible communities receive earlier and more stringent reduction timelines.
  • Government agencies: Environmental Protection Agency (EPA), Illinois Power Agency, and Illinois Commerce Commission (ICC) – plus coordination with PJM Interconnection and MISO for resource adequacy and reliability.
  • Public and stakeholders: Environmental justice communities, energy providers, grid operators, and the general public due to enhanced reporting and public planning processes.

Procedural and timeline aspects

  • Effective date: The 2025–2026 session timing; first reporting requirement begins June 30, 2025.
  • Ongoing five-year planning cycle: A repeated cycle of emissions assessment, plan development, public review, and ICC approval every five years.
  • Deadlines for plan implementation: Specific deadlines are set for plan development, evidentiary hearings, public hearings, and ICC orders (e.g., within 180 days after hearings).
  • Flexibility for reliability: Provisions allow temporary continued operation beyond deadlines under grid reliability considerations, coordinated with RTOs/ISOs.
  • Public access and comment: Public workshops, open comment periods, and posting of plans and responses on agency websites.

Note: This summary reflects the introduced text and intended implementation framework as of the 104th General Assembly.

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

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