Bill
HB 3399
HB 3399 creates Illinois Geothermal Homes & Businesses Program to procure geothermal RECs starting 2026, driving adoption of ground-source heat pumps and reducing emissions.
Status snapshot
- Introduced: Feb 18, 2025 (Rep. Marcus C. Evans, Jr.; later Chief Sponsor Rep. Joyce Mason)
- House passage (third reading): Apr 10, 2025 (77–36)
- Arrived in Senate: Apr 14, 2025
- Current status: Rule 3‑9(a) / Re‑referred to Assignments (6/2/2025)
- If enacted: Program effective immediately; program procurement begins Jan 1, 2026
Summary — purpose and intent
HB 3399 creates a statewide Geothermal Homes and Businesses Program administered by the Illinois Power Agency (IPA). The program directs the IPA to include geothermal renewable energy credits (RECs) procurement in its long‑term renewable resources procurement plan beginning Jan 1, 2026, to accelerate deployment of ground‑source geothermal heating and cooling systems, support jobs and manufacturing, reduce greenhouse gas emissions, and spur resilient infrastructure investment in Illinois.
Key provisions
- Definitions: A qualifying "geothermal heating and cooling system" must (among other criteria) exchange thermal energy from groundwater or shallow ground sources via closed‑loop or open‑loop systems, meet current federal Energy Star product specs, replace less efficient heating/cooling/water‑heating systems, not export electricity to the grid at the heat‑pump level, and have become operational on or after June 1, 2017.
- REC calculation: Geothermal RECs are measured in megawatt‑hours (MWh) and are created by calculating the difference between the energy load served by the geothermal system and a less efficient baseline system. The IPA must adopt an industry‑supported formula reflecting national best practices and verification standards.
- Program structure: Projects are organized into at least three categories (Residential; Commercial; Public or Environmental Justice — definitions left to the IPA). For each Program delivery year the IPA will set blocks of REC volumes, fixed prices for the blocks, and waitlist terms. The IPA must plan blocks through the delivery year beginning 2035 and may continue subsequent multi‑year “periods.”
- Block reservation: As amended, at least 33% of each annual block must be reserved for systems meeting the IPA’s (presumably residential or similar) criteria; the IPA may reserve additional volumes for Public/Environmental Justice projects to ensure affordability for public buildings and low‑income housing.
- Administration: The IPA administers the Program, may hire subcontractors to operate and evaluate it (per amendment), and may set territory‑specific block sizes/prices subject to Illinois Commerce Commission approval for expedited changes.
- Double‑claim / cost‑recovery limits: The bill prohibits double‑claiming of geothermal RECs. A later amendment (House Amendment No. 2) adds a new Section 75 stating that the IPA shall not purchase RECs from geothermal systems for which costs are being recovered through rates regulated by Illinois or any other state on or after the Act’s effective date.
Who is affected
- Homeowners, building owners, developers, public agencies, and low‑income housing providers installing qualifying geothermal systems (eligible to generate RECs and receive program payments).
- Geothermal contractors, equipment manufacturers and trade organizations (market growth and standards implications).
- Utilities and ratepayers (program design seeks to be a separate procurement not funded from other REC pools; IPA/ICC oversight affects cost‑recovery and procurement rules).
- State agencies (IPA administering program; ICC oversight and approvals).
Procedural and timeline notes
- Program procurement begins Jan 1, 2026; IPA must set block schedules through 2035 initially and may establish subsequent multi‑year periods.
- IPA must adopt REC calculation and verification methodologies supported by industry practices and national standards.
- The bill (as introduced) took effect immediately upon enactment; amendments modify reservation percentages, allow subcontractors, and add the cost‑recovery prohibition.
Issues to watch
- Final definitions and category rules set by the IPA (impact which projects qualify and how volumes/prices are allocated).
- How the REC valuation and block pricing interact with existing renewable procurement and utility rate mechanisms.
- Implementation details for verifying MWh savings and preventing double‑claiming.
Compiled from official sources — confirm details with the bill’s official record.
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