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HB5538 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5538
Introduced 2/13/2026, by Rep. Ryan Spain
SYNOPSIS AS INTRODUCED:
415 ILCS 5/9.15
Amends the Environmental Protection Act. Extends deadlines for
reduced or zero carbon dioxide emissions by 10 years for EGUs and large
greenhouse gas-emitting units that use gas as a fuel or that use
cogeneration technology.
LRB104 16311 BDA 29697 b
A BILL FOR
HB5538
LRB104 16311 BDA 29697 b
1
AN ACT concerning safety.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 5.
The Environmental Protection Act is amended by
5
changing Section 9.15 as follows:
6
(415 ILCS 5/9.15)
7
Sec. 9.15.
Greenhouse gases.
8
(a) An air pollution construction permit shall not be
9
required due to emissions of greenhouse gases if the
10
equipment, site, or source is not subject to regulation, as
11
defined by 40 CFR 52.21, as now or hereafter amended, for
12
greenhouse gases or is otherwise not addressed in this Section
13
or by the Board in regulations for greenhouse gases. These
14
exemptions do not relieve an owner or operator from the
15
obligation to comply with other applicable rules or
16
regulations.
17
(b) An air pollution operating permit shall not be
18
required due to emissions of greenhouse gases if the
19
equipment, site, or source is not subject to regulation, as
20
defined by Section 39.5 of this Act, for greenhouse gases or is
21
otherwise not addressed in this Section or by the Board in
22
regulations for greenhouse gases. These exemptions do not
23
relieve an owner or operator from the obligation to comply
HB5538
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LRB104 16311 BDA 29697 b
1
with other applicable rules or regulations.
2
(c) (Blank).
3
(d) (Blank).
4
(e) (Blank).
5
(f) As used in this Section:
6
"Carbon dioxide emission" means the plant annual CO
2
total
7
output emission as measured by the United States Environmental
8
Protection Agency in its Emissions & Generation Resource
9
Integrated Database (eGrid), or its successor.
10
"Carbon dioxide equivalent emissions" or "CO
2
e" means the
11
sum total of the mass amount of emissions in tons per year,
12
calculated by multiplying the mass amount of each of the 6
13
greenhouse gases specified in Section 3.207, in tons per year,
14
by its associated global warming potential as set forth in 40
15
CFR 98, subpart A, table A-1 or its successor, and then adding
16
them all together.
17
"Cogeneration" or "combined heat and power" refers to any
18
system that, either simultaneously or sequentially, produces
19
electricity and useful thermal energy from a single fuel
20
source.
21
"Copollutants" refers to the 6 criteria pollutants that
22
have been identified by the United States Environmental
23
Protection Agency pursuant to the Clean Air Act.
24
"Electric generating unit" or "EGU" means a fossil
25
fuel-fired stationary boiler, combustion turbine, or combined
26
cycle system that serves a generator that has a nameplate
HB5538
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1
capacity greater than 25 MWe and produces electricity for
2
sale.
3
"Environmental justice community" means the definition of
4
that term based on existing methodologies and findings, used
5
and as may be updated by the Illinois Power Agency and its
6
program administrator in the Illinois Solar for All Program.
7
"Equity investment eligible community" or "eligible
8
community" means the geographic areas throughout Illinois that
9
would most benefit from equitable investments by the State
10
designed to combat discrimination and foster sustainable
11
economic growth. Specifically, eligible community means the
12
following areas:
13
(1) areas where residents have been historically
14
excluded from economic opportunities, including
15
opportunities in the energy sector, as defined as R3 areas
16
pursuant to Section 10-40 of the Cannabis Regulation and
17
Tax Act; and
18
(2) areas where residents have been historically
19
subject to disproportionate burdens of pollution,
20
including pollution from the energy sector, as established
21
by environmental justice communities as defined by the
22
Illinois Power Agency pursuant to the Illinois Power
23
Agency Act, excluding any racial or ethnic indicators.
24
"Equity investment eligible person" or "eligible person"
25
means the persons who would most benefit from equitable
26
investments by the State designed to combat discrimination and
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1
foster sustainable economic growth. Specifically, eligible
2
person means the following people:
3
(1) persons whose primary residence is in an equity
4
investment eligible community;
5
(2) persons whose primary residence is in a
6
municipality, or a county with a population under 100,000,
7
where the closure of an electric generating unit or mine
8
has been publicly announced or the electric generating
9
unit or mine is in the process of closing or closed within
10
the last 5 years;
11
(3) persons who are graduates of or currently enrolled
12
in the foster care system; or
13
(4) persons who were formerly incarcerated.
14
"Existing emissions" means:
15
(1) for CO
2
e, the total average tons-per-year of CO
2
e
16
emitted by the EGU or large GHG-emitting unit either in
17
the years 2018 through 2020 or, if the unit was not yet in
18
operation by January 1, 2018, in the first 3 full years of
19
that unit's operation; and
20
(2) for any copollutant, the total average
21
tons-per-year of that copollutant emitted by the EGU or
22
large GHG-emitting unit either in the years 2018 through
23
2020 or, if the unit was not yet in operation by January 1,
24
2018, in the first 3 full years of that unit's operation.
25
"Green hydrogen" means a power plant technology in which
26
an EGU creates electric power exclusively from electrolytic
HB5538
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LRB104 16311 BDA 29697 b
1
hydrogen, in a manner that produces zero carbon and
2
copollutant emissions, using hydrogen fuel that is
3
electrolyzed using a 100% renewable zero carbon emission
4
energy source.
5
"Large greenhouse gas-emitting unit" or "large
6
GHG-emitting unit" means a unit that is an electric generating
7
unit or other fossil fuel-fired unit that itself has a
8
nameplate capacity or serves a generator that has a nameplate
9
capacity greater than 25 MWe and that produces electricity,
10
including, but not limited to, coal-fired, coal-derived,
11
oil-fired, natural gas-fired, and cogeneration units.
12
"NO
x
emission rate" means the plant annual NO
x
total output
13
emission rate as measured by the United States Environmental
14
Protection Agency in its Emissions & Generation Resource
15
Integrated Database (eGrid), or its successor, in the most
16
recent year for which data is available.
17
"Public greenhouse gas-emitting units" or "public
18
GHG-emitting unit" means large greenhouse gas-emitting units,
19
including EGUs, that are wholly owned, directly or indirectly,
20
by one or more municipalities, municipal corporations, joint
21
municipal electric power agencies, electric cooperatives, or
22
other governmental or nonprofit entities, whether organized
23
and created under the laws of Illinois or another state.
24
"SO
2
emission rate" means the "plant annual SO
2
total
25
output emission rate" as measured by the United States
26
Environmental Protection Agency in its Emissions & Generation
HB5538
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LRB104 16311 BDA 29697 b
1
Resource Integrated Database (eGrid), or its successor, in the
2
most recent year for which data is available.
3
(g) All EGUs and large greenhouse gas-emitting units that
4
use coal or oil as a fuel and are not public GHG-emitting units
5
shall permanently reduce all CO
2
e and copollutant emissions to
6
zero no later than January 1, 2030.
7
(h) All EGUs and large greenhouse gas-emitting units that
8
use coal as a fuel and are public GHG-emitting units shall
9
permanently reduce CO
2
e emissions to zero no later than
10
December 31, 2045. Any source or plant with such units must
11
also reduce their CO
2
e emissions by 45% from existing
12
emissions by no later than January 1, 2035. If the emissions
13
reduction requirement is not achieved by December 31, 2035,
14
the plant shall retire one or more units or otherwise reduce
15
its CO
2
e emissions by 45% from existing emissions by June 30,
16
2038.
17
(i) All EGUs and large greenhouse gas-emitting units that
18
use gas as a fuel and are not public GHG-emitting units shall
19
permanently reduce all CO
2
e and copollutant emissions to zero,
20
including through unit retirement or the use of 100% green
21
hydrogen or other similar technology that is commercially
22
proven to achieve zero carbon emissions, according to the
23
following:
24
(1) No later than January 1,
2040
2030
: all EGUs and
25
large greenhouse gas-emitting units that have a NO
x
26
emissions rate of greater than 0.12 lbs/MWh or a SO
2
HB5538
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LRB104 16311 BDA 29697 b
1
emission rate of greater than 0.006 lb/MWh, and are
2
located in or within 3 miles of an environmental justice
3
community designated as of January 1, 2021 or an equity
4
investment eligible community.
5
(2) No later than January 1,
2050
2040
: all EGUs and
6
large greenhouse gas-emitting units that have a NO
x
7
emission rate of greater than 0.12 lbs/MWh or a SO
2
8
emission rate greater than 0.006 lb/MWh, and are not
9
located in or within 3 miles of an environmental justice
10
community designated as of January 1, 2021 or an equity
11
investment eligible community. After January 1,
2045
2035
,
12
each such EGU and large greenhouse gas-emitting unit shall
13
reduce its CO
2
e emissions by at least 50% from its existing
14
emissions for CO
2
e, and shall be limited in operation to,
15
on average, 6 hours or less per day, measured over a
16
calendar year, and shall not run for more than 24
17
consecutive hours except in emergency conditions, as
18
designated by a Regional Transmission Organization or
19
Independent System Operator.
20
(3) No later than January 1,
2045
2035
: all EGUs and
21
large greenhouse gas-emitting units that began operation
22
prior to the effective date of this amendatory Act of the
23
102nd General Assembly and have a NO
x
emission rate of less
24
than or equal to 0.12 lb/MWh and a SO
2
emission rate less
25
than or equal to 0.006 lb/MWh, and are located in or within
26
3 miles of an environmental justice community designated
HB5538
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LRB104 16311 BDA 29697 b
1
as of January 1, 2021 or an equity investment eligible
2
community. Each such EGU and large greenhouse gas-emitting
3
unit shall reduce its CO
2
e emissions by at least 50% from
4
its existing emissions for CO
2
e no later than January 1,
5
2040
2030
.
6
(4) No later than January 1,
2050
2040
: All remaining
7
EGUs and large greenhouse gas-emitting units that have a
8
heat rate greater than or equal to 7000 BTU/kWh. Each such
9
EGU and Large greenhouse gas-emitting unit shall reduce
10
its CO
2
e emissions by at least 50% from its existing
11
emissions for CO
2
e no later than January 1,
2045
2035
.
12
(5) No later than January 1,
2055
2045
: all remaining
13
EGUs and large greenhouse gas-emitting units.
14
(j) All EGUs and large greenhouse gas-emitting units that
15
use gas as a fuel and are public GHG-emitting units shall
16
permanently reduce all CO
2
e and copollutant emissions to zero,
17
including through unit retirement or the use of 100% green
18
hydrogen or other similar technology that is commercially
19
proven to achieve zero carbon emissions by January 1,
2055
20
2045
.
21
(k) All EGUs and large greenhouse gas-emitting units that
22
utilize combined heat and power or cogeneration technology
23
shall permanently reduce all CO
2
e and copollutant emissions to
24
zero, including through unit retirement or the use of 100%
25
green hydrogen or other similar technology that is
26
commercially proven to achieve zero carbon emissions by
HB5538
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LRB104 16311 BDA 29697 b
1
January 1,
2055
2045
.
2
(k-5) No EGU or large greenhouse gas-emitting unit that
3
uses gas as a fuel and is not a public GHG-emitting unit may
4
emit, in any 12-month period, CO
2
e or copollutants in excess of
5
that unit's existing emissions for those pollutants.
6
(l) Notwithstanding subsections (g) through (k-5), large
7
GHG-emitting units including EGUs may temporarily continue
8
emitting CO
2
e and copollutants after any applicable deadline
9
specified in any of subsections (g) through (k-5) if it has
10
been determined, as described in paragraphs (1) and (2) of
11
this subsection, that ongoing operation of the EGU is
12
necessary to maintain power grid supply and reliability or
13
ongoing operation of large GHG-emitting unit that is not an
14
EGU is necessary to serve as an emergency backup to
15
operations. Up to and including the occurrence of an emission
16
reduction deadline under subsection (i), all EGUs and large
17
GHG-emitting units must comply with the following terms:
18
(1) if an EGU or large GHG-emitting unit that is a
19
participant in a regional transmission organization
20
intends to retire, it must submit documentation to the
21
appropriate regional transmission organization by the
22
appropriate deadline that meets all applicable regulatory
23
requirements necessary to obtain approval to permanently
24
cease operating the large GHG-emitting unit;
25
(2) if any EGU or large GHG-emitting unit that is a
26
participant in a regional transmission organization
HB5538
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LRB104 16311 BDA 29697 b
1
receives notice that the regional transmission
2
organization has determined that continued operation of
3
the unit is required, the unit may continue operating
4
until the issue identified by the regional transmission
5
organization is resolved. The owner or operator of the
6
unit must cooperate with the regional transmission
7
organization in resolving the issue and must reduce its
8
emissions to zero, consistent with the requirements under
9
subsection (g), (h), (i), (j), (k), or (k-5), as
10
applicable, as soon as practicable when the issue
11
identified by the regional transmission organization is
12
resolved; and
13
(3) any large GHG-emitting unit that is not a
14
participant in a regional transmission organization shall
15
be allowed to continue emitting CO
2
e and copollutants
16
after the zero-emission date specified in subsection (g),
17
(h), (i), (j), (k), or (k-5), as applicable, in the
18
capacity of an emergency backup unit if approved by the
19
Illinois Commerce Commission.
20
(m) No variance, adjusted standard, or other regulatory
21
relief otherwise available in this Act may be granted to the
22
emissions reduction and elimination obligations in this
23
Section.
24
(n) By June 30 of each year, beginning in 2025, the Agency
25
shall prepare and publish on its website a report setting
26
forth the actual greenhouse gas emissions from individual
HB5538
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LRB104 16311 BDA 29697 b
1
units and the aggregate statewide emissions from all units for
2
the prior year.
3
(o) Every 5 years beginning in 2025, the Environmental
4
Protection Agency, Illinois Power Agency, and Illinois
5
Commerce Commission shall jointly prepare, and release
6
publicly, a report to the General Assembly that examines the
7
State's current progress toward its renewable energy resource
8
development goals, the status of CO
2
e and copollutant
9
emissions reductions, the current status and progress toward
10
developing and implementing green hydrogen technologies, the
11
current and projected status of electric resource adequacy and
12
reliability throughout the State for the period beginning 5
13
years ahead, and proposed solutions for any findings. The
14
Environmental Protection Agency, Illinois Power Agency, and
15
Illinois Commerce Commission shall consult PJM
16
Interconnection, LLC and Midcontinent Independent System
17
Operator, Inc., or their respective successor organizations
18
regarding forecasted resource adequacy and reliability needs,
19
anticipated new generation interconnection, new transmission
20
development or upgrades, and any announced large GHG-emitting
21
unit closure dates and include this information in the report.
22
The report shall be released publicly by no later than
23
December 15 of the year it is prepared. If the Environmental
24
Protection Agency, Illinois Power Agency, and Illinois
25
Commerce Commission jointly conclude in the report that the
26
data from the regional grid operators, the pace of renewable
HB5538
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LRB104 16311 BDA 29697 b
1
energy development, the pace of development of energy storage
2
and demand response utilization, transmission capacity, and
3
the CO
2
e and copollutant emissions reductions required by
4
subsection (i) or (k-5) reasonably demonstrate that a resource
5
adequacy shortfall will occur, including whether there will be
6
sufficient in-state capacity to meet the zonal requirements of
7
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
8
regional transmission organizations, or that the regional
9
transmission operators determine that a reliability violation
10
will occur during the time frame the study is evaluating, then
11
the Illinois Power Agency, in conjunction with the
12
Environmental Protection Agency shall develop a plan to reduce
13
or delay CO
2
e and copollutant emissions reductions
14
requirements only to the extent and for the duration necessary
15
to meet the resource adequacy and reliability needs of the
16
State, including allowing any plants whose emission reduction
17
deadline has been identified in the plan as creating a
18
reliability concern to continue operating, including operating
19
with reduced emissions or as emergency backup where
20
appropriate. The plan shall also consider the use of renewable
21
energy, energy storage, demand response, transmission
22
development, or other strategies to resolve the identified
23
resource adequacy shortfall or reliability violation.
24
(1) In developing the plan, the Environmental
25
Protection Agency and the Illinois Power Agency shall hold
26
at least one workshop open to, and accessible at a time and
HB5538
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LRB104 16311 BDA 29697 b
1
place convenient to, the public and shall consider any
2
comments made by stakeholders or the public. Upon
3
development of the plan, copies of the plan shall be
4
posted and made publicly available on the Environmental
5
Protection Agency's, the Illinois Power Agency's, and the
6
Illinois Commerce Commission's websites. All interested
7
parties shall have 60 days following the date of posting
8
to provide comment to the Environmental Protection Agency
9
and the Illinois Power Agency on the plan. All comments
10
submitted to the Environmental Protection Agency and the
11
Illinois Power Agency shall be encouraged to be specific,
12
supported by data or other detailed analyses, and, if
13
objecting to all or a portion of the plan, accompanied by
14
specific alternative wording or proposals. All comments
15
shall be posted on the Environmental Protection Agency's,
16
the Illinois Power Agency's, and the Illinois Commerce
17
Commission's websites. Within 30 days following the end of
18
the 60-day review period, the Environmental Protection
19
Agency and the Illinois Power Agency shall revise the plan
20
as necessary based on the comments received and file its
21
revised plan with the Illinois Commerce Commission for
22
approval.
23
(2) Within 60 days after the filing of the revised
24
plan at the Illinois Commerce Commission, any person
25
objecting to the plan shall file an objection with the
26
Illinois Commerce Commission. Within 30 days after the
HB5538
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LRB104 16311 BDA 29697 b
1
expiration of the comment period, the Illinois Commerce
2
Commission shall determine whether an evidentiary hearing
3
is necessary. The Illinois Commerce Commission shall also
4
host 3 public hearings within 90 days after the plan is
5
filed. Following the evidentiary and public hearings, the
6
Illinois Commerce Commission shall enter its order
7
approving or approving with modifications the reliability
8
mitigation plan within 180 days.
9
(3) The Illinois Commerce Commission shall only
10
approve the plan if the Illinois Commerce Commission
11
determines that it will resolve the resource adequacy or
12
reliability deficiency identified in the reliability
13
mitigation plan at the least amount of CO
2
e and copollutant
14
emissions, taking into consideration the emissions impacts
15
on environmental justice communities, and that it will
16
ensure adequate, reliable, affordable, efficient, and
17
environmentally sustainable electric service at the lowest
18
total cost over time, taking into account the impact of
19
increases in emissions.
20
(4) If the resource adequacy or reliability deficiency
21
identified in the reliability mitigation plan is resolved
22
or reduced, the Environmental Protection Agency and the
23
Illinois Power Agency may file an amended plan adjusting
24
the reduction or delay in CO
2
e and copollutant emission
25
reduction requirements identified in the plan.
26
(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
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