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HB 3231

Relating to withholding tax on income of nonresidents from natural resources royalty payments

2025 Regular Session Introduced by Bill Anderson and 1 co-sponsor

HB 3231 shifts self‑direct REC credits to a per‑REC credit from a volumetric charge and exempts CHP‑affiliated ARES from certain REC cost charges.

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Bill Summary · HB 3231

HB 3231 — Utilities: Energy Credits / Combined Heat & Power (CHP) — Summary

Bill number: HB 3231 (Rep. Christopher "C.D." Davidsmeyer)
Introduced: Feb 24, 2025 — Status: Rule 19(a) / Re‑referred to Rules Committee
Companion: SB 1212
Statutory changes: amends 20 ILCS 3855/1‑75 (Illinois Power Agency Act) and 220 ILCS 5/16‑115D (Public Utilities Act)
Effective: immediately upon enactment

Main purpose

HB 3231 changes how self‑direct renewable portfolio standard (RPS) credits are calculated and credited, and exempts certain alternative retail electric suppliers (ARES) that operate (or have affiliates that operate) combined heat and power (CHP) systems from a particular utility REC cost‑recovery charge. The bill revises IPA planning/crediting rules and clarifies what portions of a volumetric charge may be credited to self‑direct customers.

Key provisions

  • Removes the Illinois Power Agency (IPA) requirement to annually determine a discrete amount of utility‑scale renewable energy credits (RECs) to be included in the self‑direct RPS compliance program.
  • Establishes that the annual “self‑direct credit amount” per REC will be set each year equal to a specified volumetric charge collected under the Public Utilities Act (i.e., the volumetric charge used to recover procurement costs for utility‑scale RECs).
  • Provides that the approved per‑REC credit amount is multiplied by each REC procured by a participating self‑direct customer, up to 100% of that customer’s annual electricity consumption.
  • Specifies that the self‑direct customer’s bill credit applies only to the utility‑scale renewable energy portion of the volumetric charge and expressly excludes any credit against portions of the volumetric charge associated with procurement through:
    • the Adjustable Block Program,
    • the Solar for All Program, and
    • a specified provision of the Act (as noted in the bill).
  • Amends the Public Utilities Act to provide that the IPA’s provisions regarding retail customer payments to utilities for REC procurement costs do not apply to an ARES (or its customers) if the ARES operates, or has a corporate affiliate that operates, a CHP system in Illinois and supplies electricity primarily to (or for the benefit of) specified facilities.

Who is affected

  • Self‑direct RPS participants (typically large commercial/industrial customers that self‑procure RECs).
  • Illinois Power Agency (process and duties around credit determination).
  • Regulated utilities and procurement administrators (implementation of crediting rules).
  • Alternative retail electric suppliers (ARES) that operate or are affiliated with CHP systems, and their customers.
  • Renewable programs referenced (Adjustable Block, Solar for All) — the bill prevents self‑direct credits from offsetting charges funding those programs.

Potential impacts

  • Changes the mechanism for calculating self‑direct credits from an IPA‑determined REC quantity to a volumetric‑charge‑based per‑REC credit; this may alter the economic value of self‑directing customers’ RECs (up or down depending on the volumetric charge).
  • Ensures funding streams for Adjustable Block and Solar for All are not reduced by self‑direct credits (since credits may not be applied against those program charge components).
  • Provides a narrow exemption from REC cost‑recovery charges for ARES with CHP operations, which could lower charges applied to certain industrial or on‑site generation arrangements.
  • Administrative impacts for the IPA and utilities to implement the new per‑REC credit calculation and billing treatment.

Procedural timeline (selected)

  • Filed: Feb 24, 2025 (first reading Feb 18, 2025)
  • Referred and re‑referred to Rules Committee; assigned to Public Utilities Committee Mar 11, 2025
  • Subcommittee and committee activity April–May 2025; placed on General State Calendar May 15, 2025

For full legislative text and statute cross‑references, see 20 ILCS 3855/1‑75 and 220 ILCS 5/16‑115D as amended by HB 3231.

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

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