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HB 3609

THERMAL ENERGY NETWORKS

104th Regular Session Introduced by Kelly Cassidy and 6 co-sponsors

Illinois requires ICC-backed pilots of utility-scale thermal energy networks to cut building emissions and create living-wage jobs, with labor protections and cost recovery rules.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3609

Summary — HB 3609 (Thermal Energy Network and Jobs Act)

Status: Introduced (104th GA). Rule 19(a) / Re‑referred to Rules Committee. Introduced 2/18/2025; multiple committee actions and amendments; placed on General State Calendar 5/05/2025. Companion: SB 1583.

Purpose and intent

HB 3609 directs the Illinois Commerce Commission (ICC) and large utilities to support pilot development of utility‑scale thermal energy networks (also called district thermal loops) to reduce greenhouse gas emissions from buildings, promote equitable building decarbonization, and create living‑wage construction and trade jobs. The bill pairs regulatory direction with labor, workforce training, consumer‑protection, and cost‑recovery provisions.

Key definitions (new)

  • Thermal energy: piped, non‑combustible fluids used to transfer heat into/out of buildings (space heating/cooling, domestic hot water, refrigeration).
  • Thermal energy network: utility‑scale distribution infrastructure (pipes, fixtures, real property) that supplies non‑combusting thermal energy to multiple buildings/parties.

Major provisions

  • ICC action: Requires the ICC to initiate a proceeding to support development of pilot thermal energy networks soon after the act’s effective date (bill text includes both 90‑day and 6‑month timing in different sections/versions).
  • Utility filings: Every gas, electric, or combination public utility serving >100,000 customers must, within 10 months after the act’s effective date, file a petition seeking ICC approval of at least one and no more than three pilot thermal energy network projects.
  • Reporting: Utilities constructing/operating ICC‑approved pilots must submit quarterly status reports to the ICC until pilot completion.
  • Labor and workforce requirements: Utilities must demonstrate they have entered labor peace agreements with bona fide labor organizations; projects are subject to contractor qualification, prevailing wage, apprenticeship/bona fide apprenticeship criteria, project labor agreement and pre‑apprenticeship outreach requirements aimed at underserved communities.
  • Consumer protections & rates: Projects submitted for approval must include a proposed rate structure and consumer‑protection plan; one amendment authorizes ICC to approve rates only if projected heating/cooling costs for participating end users are no greater than they would otherwise incur.
  • Cost recovery: Utilities are permitted to recover reasonable and prudently incurred development, construction, and operation costs of pilot projects through general rates or a Multi‑Year Rate Plan; provisions allow proportional rate recovery across customer classes for industrial heat applications.
  • Public engagement: Amendments require public pre‑filing meetings in affected municipalities with published notice and invitation to ICC representatives.
  • Rulemaking deadline: The ICC must adopt specified rules; original language set a 4‑year deadline after completion of construction of projects, with an amendment moving some rule timing to after the act’s effective date.

Who is affected

  • Gas, electric, and combination public utilities serving large customer bases (>100,000).
  • Building owners and tenants (potential participants in networks).
  • Ratepayers (through cost recovery mechanisms and proposed rate parity test).
  • Construction trades, labor unions, and apprenticeship programs (workforce and hiring rules).
  • Local governments where pilots are sited (public meetings, infrastructure siting).

Procedural/timeline notes

  • Introduced Feb 18, 2025. Multiple committee hearings, substitutes, and floor amendments (House Amendments 001 & 002) have been filed.
  • Current legislative status: Rule 19(a) / Re‑referred to Rules Committee (4/11/2025) and placed on calendar 5/05/2025.
  • Effective date: bill text indicates immediate effectiveness for some provisions (see enacted language and amendments for specific timing).

This bill establishes a policy and regulatory pathway for utility‑led thermal energy networks in Illinois while tying project approval and cost recovery to labor standards, consumer protections, and public engagement.

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

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