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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2727

Introduced 10/28/2025, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

415 ILCS 5/9.15

Amends the Environmental Protection Act. Defines "battery storage
resource" and "total State-installed generation capacity". Provides that
no variance, adjusted standard, or other regulatory relief otherwise
available in the Act may be granted to the emissions reduction and
elimination obligations in the amendatory provisions if battery storage
resources constitute at least 10% of the total State-installed generation
capacity in the State. Provides that, if battery storage resources
constitute less than 10% of the total State-installed generation capacity
at any time after the effective date of the amendatory Act, the
Environmental Protection Agency shall delay enforcement of certain
timelines and relieve generators of their obligation not to exceed their
existing emission levels. Provides that, for a large GHG-emitting unit
that uses gas as a fuel and is subject to certain restrictions within the
provisions concerning greenhouse gases, the unit may exceed its existing
emissions during run hours dispatched by a regional transmission
organization during emergency, pre-emergency, or conservative operations
or run hours that are required to maintain system reliability. Makes other
changes. Effective immediately.
LRB104 15876 AAS 29097 b

A BILL FOR

SB2727
LRB104 15876 AAS 29097 b
1

AN ACT concerning regulation.

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

SB2727
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LRB104 15876 AAS 29097 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

"Battery storage resource" means any device or assembly of
7
devices that is (i) either installed as a stand-alone system
8
or tied to a power generation system, (ii) used for the primary
9
purpose of storing energy for wholesale or retail sale and not
10
primarily for storage to later consume on the property on
11
which the device resides, and (iii) an energy storage system,
12
as defined in Section 16-135 of the Public Utilities Act.

13

"Carbon dioxide emission" means the plant annual CO
2
total
14
output emission as measured by the United States Environmental
15
Protection Agency in its Emissions & Generation Resource
16
Integrated Database (eGrid), or its successor.
17

"Carbon dioxide equivalent emissions" or "CO
2
e" means the
18
sum total of the mass amount of emissions in tons per year,
19
calculated by multiplying the mass amount of each of the 6
20
greenhouse gases specified in Section 3.207, in tons per year,
21
by its associated global warming potential as set forth in 40
22
CFR 98, subpart A, table A-1 or its successor, and then adding
23
them all together.
24

"Cogeneration" or "combined heat and power" refers to any
25
system that, either simultaneously or sequentially, produces
26
electricity and useful thermal energy from a single fuel

SB2727
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LRB104 15876 AAS 29097 b
1
source.
2

"Copollutants" refers to the 6 criteria pollutants that
3
have been identified by the United States Environmental
4
Protection Agency pursuant to the Clean Air Act.
5

"Electric generating unit" or "EGU" means a fossil
6
fuel-fired stationary boiler, combustion turbine, or combined
7
cycle system that serves a generator that has a nameplate
8
capacity greater than 25 MWe and produces electricity for
9
sale.
10

"Environmental justice community" means the definition of
11
that term based on existing methodologies and findings, used
12
and as may be updated by the Illinois Power Agency and its
13
program administrator in the Illinois Solar for All Program.
14

"Equity investment eligible community" or "eligible
15
community" means the geographic areas throughout Illinois that
16
would most benefit from equitable investments by the State
17
designed to combat discrimination and foster sustainable
18
economic growth. Specifically, eligible community means the
19
following areas:
20

(1) areas where residents have been historically
21

excluded from economic opportunities, including
22

opportunities in the energy sector, as defined as R3 areas
23

pursuant to Section 10-40 of the Cannabis Regulation and
24

Tax Act; and
25

(2) areas where residents have been historically
26

subject to disproportionate burdens of pollution,

SB2727
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LRB104 15876 AAS 29097 b
1

including pollution from the energy sector, as established
2

by environmental justice communities as defined by the
3

Illinois Power Agency pursuant to the Illinois Power
4

Agency Act, excluding any racial or ethnic indicators.
5

"Equity investment eligible person" or "eligible person"
6
means the persons who would most benefit from equitable
7
investments by the State designed to combat discrimination and
8
foster sustainable economic growth. Specifically, eligible
9
person means the following people:
10

(1) persons whose primary residence is in an equity
11

investment eligible community;
12

(2) persons whose primary residence is in a
13

municipality, or a county with a population under 100,000,
14

where the closure of an electric generating unit or mine
15

has been publicly announced or the electric generating
16

unit or mine is in the process of closing or closed within
17

the last 5 years;
18

(3) persons who are graduates of or currently enrolled
19

in the foster care system; or
20

(4) persons who were formerly incarcerated.
21

"Existing emissions" means:
22

(1) for CO
2
e, the total average tons-per-year of CO
2
e
23

emitted by the EGU or large GHG-emitting unit either in
24

the years 2018 through 2020 or, if the unit was not yet in
25

operation by January 1, 2018, in the first 3 full years of
26

that unit's operation; and

SB2727
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LRB104 15876 AAS 29097 b
1

(2) for any copollutant, the total average
2

tons-per-year of that copollutant emitted by the EGU or
3

large GHG-emitting unit either in the years 2018 through
4

2020 or, if the unit was not yet in operation by January 1,
5

2018, in the first 3 full years of that unit's operation.
6

"Green hydrogen" means a power plant technology in which
7
an EGU creates electric power exclusively from electrolytic
8
hydrogen, in a manner that produces zero carbon and
9
copollutant emissions, using hydrogen fuel that is
10
electrolyzed using a 100% renewable zero carbon emission
11
energy source.
12

"Large greenhouse gas-emitting unit" or "large
13
GHG-emitting unit" means a unit that is an electric generating
14
unit or other fossil fuel-fired unit that itself has a
15
nameplate capacity or serves a generator that has a nameplate
16
capacity greater than 25 MWe and that produces electricity,
17
including, but not limited to, coal-fired, coal-derived,
18
oil-fired, natural gas-fired, and cogeneration units.
19

"NO
x
emission rate" means the plant annual NO
x
total output
20
emission rate as measured by the United States Environmental
21
Protection Agency in its Emissions & Generation Resource
22
Integrated Database (eGrid), or its successor, in the most
23
recent year for which data is available.
24

"Public greenhouse gas-emitting units" or "public
25
GHG-emitting unit" means large greenhouse gas-emitting units,
26
including EGUs, that are wholly owned, directly or indirectly,

SB2727
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LRB104 15876 AAS 29097 b
1
by one or more municipalities, municipal corporations, joint
2
municipal electric power agencies, electric cooperatives, or
3
other governmental or nonprofit entities, whether organized
4
and created under the laws of Illinois or another state.
5

"SO
2
emission rate" means the "plant annual SO
2
total
6
output emission rate" as measured by the United States
7
Environmental Protection Agency in its Emissions & Generation
8
Resource Integrated Database (eGrid), or its successor, in the
9
most recent year for which data is available.
10

"Total State-installed generation capacity" means the
11
electric power industry capacity in Illinois by primary energy
12
source as of September 15, 2021, as published by the United
13
States Energy Information Administration.
14

(g) All EGUs and large greenhouse gas-emitting units that
15
use coal or oil as a fuel and are not public GHG-emitting units
16
shall permanently reduce all CO
2
e and copollutant emissions to
17
zero no later than January 1, 2030.
18

(h) All EGUs and large greenhouse gas-emitting units that
19
use coal as a fuel and are public GHG-emitting units shall
20
permanently reduce CO
2
e emissions to zero no later than
21
December 31, 2045. Any source or plant with such units must
22
also reduce their CO
2
e emissions by 45% from existing
23
emissions by no later than January 1, 2035. If the emissions
24
reduction requirement is not achieved by December 31, 2035,
25
the plant shall retire one or more units or otherwise reduce
26
its CO
2
e emissions by 45% from existing emissions by June 30,

SB2727
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LRB104 15876 AAS 29097 b
1
2038.
2

(i) All EGUs and large greenhouse gas-emitting units that
3
use gas as a fuel and are not public GHG-emitting units shall
4
permanently reduce all CO
2
e and copollutant emissions to zero,
5
including through unit retirement or the use of 100% green
6
hydrogen or other similar technology that is commercially
7
proven to achieve zero carbon emissions, according to the
8
following:
9

(1) No later than January 1, 2030: all EGUs and large
10

greenhouse gas-emitting units that have a NO
x
emissions
11

rate of greater than 0.12 lbs/MWh or a SO
2
emission rate of
12

greater than 0.006 lb/MWh, and are located in or within 3
13

miles of an environmental justice community designated as
14

of January 1, 2021 or an equity investment eligible
15

community.
16

(2) No later than January 1, 2040: all EGUs and large
17

greenhouse gas-emitting units that have a NO
x
emission
18

rate of greater than 0.12 lbs/MWh or a SO
2
emission rate
19

greater than 0.006 lb/MWh, and are not located in or
20

within 3 miles of an environmental justice community
21

designated as of January 1, 2021 or an equity investment
22

eligible community. After January 1, 2035, each such EGU
23

and large greenhouse gas-emitting unit shall reduce its
24

CO
2
e emissions by at least 50% from its existing emissions
25

for CO
2
e, and shall be limited in operation to, on average,
26

6 hours or less per day, measured over a calendar year, and

SB2727
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LRB104 15876 AAS 29097 b
1

shall not run for more than 24 consecutive hours except in
2

emergency conditions, as designated by a Regional
3

Transmission Organization or Independent System Operator.
4

(3) No later than January 1, 2035: all EGUs and large
5

greenhouse gas-emitting units that began operation prior
6

to the effective date of this amendatory Act of the 102nd
7

General Assembly and have a NO
x
emission rate of less than
8

or equal to 0.12 lb/MWh and a SO
2
emission rate less than
9

or equal to 0.006 lb/MWh, and are located in or within 3
10

miles of an environmental justice community designated as
11

of January 1, 2021 or an equity investment eligible
12

community. Each such EGU and large greenhouse gas-emitting
13

unit shall reduce its CO
2
e emissions by at least 50% from
14

its existing emissions for CO
2
e no later than January 1,
15

2030.
16

(4) No later than January 1, 2040: All remaining EGUs
17

and large greenhouse gas-emitting units that have a heat
18

rate greater than or equal to 7000 BTU/kWh. Each such EGU
19

and Large greenhouse gas-emitting unit shall reduce its
20

CO
2
e emissions by at least 50% from its existing emissions
21

for CO
2
e no later than January 1, 2035.
22

(5) No later than January 1, 2045: all remaining EGUs
23

and large greenhouse gas-emitting units.
24

(j) All EGUs and large greenhouse gas-emitting units that
25
use gas as a fuel and are public GHG-emitting units shall
26
permanently reduce all CO
2
e and copollutant emissions to zero,

SB2727
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LRB104 15876 AAS 29097 b
1
including through unit retirement or the use of 100% green
2
hydrogen or other similar technology that is commercially
3
proven to achieve zero carbon emissions by January 1, 2045.
4

(k) All EGUs and large greenhouse gas-emitting units that
5
utilize combined heat and power or cogeneration technology
6
shall permanently reduce all CO
2
e and copollutant emissions to
7
zero, including through unit retirement or the use of 100%
8
green hydrogen or other similar technology that is
9
commercially proven to achieve zero carbon emissions by
10
January 1, 2045.
11

(k-5)
Except as provided in subsection (m) of this
12
Section, no

No
EGU or large greenhouse gas-emitting unit that
13
uses gas as a fuel and is not a public GHG-emitting unit may
14
emit, in any 12-month period, CO
2
e or copollutants in excess of
15
that unit's existing emissions for those pollutants.
16

(l) Notwithstanding subsections (g) through (k-5), large
17
GHG-emitting units including EGUs may temporarily continue
18
emitting CO
2
e and copollutants after any applicable deadline
19
specified in any of subsections (g) through (k-5) if it has
20
been determined, as described in paragraphs (1) and (2) of
21
this subsection, that ongoing operation of the EGU is
22
necessary to maintain power grid supply and reliability or
23
ongoing operation of large GHG-emitting unit that is not an
24
EGU is necessary to serve as an emergency backup to
25
operations. Up to and including the occurrence of an emission
26
reduction deadline under subsection (i), all EGUs and large

SB2727
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LRB104 15876 AAS 29097 b
1
GHG-emitting units must comply with the following terms:
2

(1) if an EGU or large GHG-emitting unit that is a
3

participant in a regional transmission organization
4

intends to retire, it must submit documentation to the
5

appropriate regional transmission organization by the
6

appropriate deadline that meets all applicable regulatory
7

requirements necessary to obtain approval to permanently
8

cease operating the large GHG-emitting unit;
9

(2) if any EGU or large GHG-emitting unit that is a
10

participant in a regional transmission organization
11

receives notice that the regional transmission
12

organization has determined that
an emergency,
13

pre-emergency, or conservative operations situation exists
14

or that
continued operation of the unit is required, the
15

unit may continue operating until the issue identified by
16

the regional transmission organization is resolved. The
17

owner or operator of the unit must cooperate with the
18

regional transmission organization in resolving the issue
19

and must reduce its emissions to zero, consistent with the
20

requirements under subsection (g), (h), (i), (j), (k), or
21

(k-5), as applicable, as soon as practicable when the
22

issue identified by the regional transmission organization
23

is resolved; and
24

(3) any large GHG-emitting unit that is not a
25

participant in a regional transmission organization shall
26

be allowed to continue emitting CO
2
e and copollutants

SB2727
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LRB104 15876 AAS 29097 b
1

after the zero-emission date specified in subsection (g),
2

(h), (i), (j), (k), or (k-5), as applicable, in the
3

capacity of an emergency backup unit if approved by the
4

Illinois Commerce Commission.
5

(m) No variance, adjusted standard, or other regulatory
6
relief otherwise available in this Act may be granted to the
7
emissions reduction and elimination obligations in this
8
Section
if battery storage resources constitute at least 10%
9
of the total State-installed generation capacity in the State.
10
If battery storage resources constitute less than 10% of the
11
total State-installed generation capacity at any time after
12
the effective date of this amendatory Act of the 104th General
13
Assembly, the Agency shall delay enforcement of the timelines
14
in paragraphs (1) through (5) of subsection (i) and relieve
15
generators of their obligation not to exceed their existing
16
emission levels, as described in subsection (k-5). For a large
17
GHG-emitting unit that uses gas as a fuel and is subject to the
18
restrictions of subsection (k-5) of this Section, the unit may
19
exceed its existing emissions during run hours dispatched by a
20
regional transmission organization during emergency,
21
pre-emergency, or conservative operations or run hours that
22
are required to maintain system reliability
.
23

(n) By June 30 of each year, beginning in 2025, the Agency
24
shall prepare and publish on its website a report setting
25
forth the actual greenhouse gas emissions from individual
26
units and the aggregate statewide emissions from all units for

SB2727
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LRB104 15876 AAS 29097 b
1
the prior year.
2

(o) Every 5 years beginning in 2025, the Environmental
3
Protection Agency, Illinois Power Agency, and Illinois
4
Commerce Commission shall jointly prepare, and release
5
publicly, a report to the General Assembly that examines the
6
State's current progress toward its renewable energy resource
7
development goals, the status of CO
2
e and copollutant
8
emissions reductions, the current status and progress toward
9
developing and implementing green hydrogen technologies, the
10
current and projected status of electric resource adequacy and
11
reliability throughout the State for the period beginning 5
12
years ahead, and proposed solutions for any findings. The
13
Environmental Protection Agency, Illinois Power Agency, and
14
Illinois Commerce Commission shall consult PJM
15
Interconnection, LLC and Midcontinent Independent System
16
Operator, Inc., or their respective successor organizations
17
regarding forecasted resource adequacy and reliability needs,
18
anticipated new generation interconnection, new transmission
19
development or upgrades, and any announced large GHG-emitting
20
unit closure dates and include this information in the report.
21
The report shall be released publicly by no later than
22
December 15 of the year it is prepared. If the Environmental
23
Protection Agency, Illinois Power Agency, and Illinois
24
Commerce Commission jointly conclude in the report that the
25
data from the regional grid operators, the pace of renewable
26
energy development, the pace of development of energy storage

SB2727
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LRB104 15876 AAS 29097 b
1
and demand response utilization, transmission capacity, and
2
the CO
2
e and copollutant emissions reductions required by
3
subsection (i) or (k-5) reasonably demonstrate that a resource
4
adequacy shortfall will occur, including whether there will be
5
sufficient in-state capacity to meet the zonal requirements of
6
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
7
regional transmission organizations, or that the regional
8
transmission operators determine that a reliability violation
9
will occur during the time frame the study is evaluating, then
10
the Illinois Power Agency, in conjunction with the
11
Environmental Protection Agency shall develop a plan to reduce
12
or delay CO
2
e and copollutant emissions reductions
13
requirements only to the extent and for the duration necessary
14
to meet the resource adequacy and reliability needs of the
15
State, including allowing any plants whose emission reduction
16
deadline has been identified in the plan as creating a
17
reliability concern to continue operating, including operating
18
with reduced emissions or as emergency backup where
19
appropriate. The plan shall also consider the use of renewable
20
energy, energy storage, demand response, transmission
21
development, or other strategies to resolve the identified
22
resource adequacy shortfall or reliability violation.
23

(1) In developing the plan, the Environmental
24

Protection Agency and the Illinois Power Agency shall hold
25

at least one workshop open to, and accessible at a time and
26

place convenient to, the public and shall consider any

SB2727
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LRB104 15876 AAS 29097 b
1

comments made by stakeholders or the public. Upon
2

development of the plan, copies of the plan shall be
3

posted and made publicly available on the Environmental
4

Protection Agency's, the Illinois Power Agency's, and the
5

Illinois Commerce Commission's websites. All interested
6

parties shall have 60 days following the date of posting
7

to provide comment to the Environmental Protection Agency
8

and the Illinois Power Agency on the plan. All comments
9

submitted to the Environmental Protection Agency and the
10

Illinois Power Agency shall be encouraged to be specific,
11

supported by data or other detailed analyses, and, if
12

objecting to all or a portion of the plan, accompanied by
13

specific alternative wording or proposals. All comments
14

shall be posted on the Environmental Protection Agency's,
15

the Illinois Power Agency's, and the Illinois Commerce
16

Commission's websites. Within 30 days following the end of
17

the 60-day review period, the Environmental Protection
18

Agency and the Illinois Power Agency shall revise the plan
19

as necessary based on the comments received and file its
20

revised plan with the Illinois Commerce Commission for
21

approval.
22

(2) Within 60 days after the filing of the revised
23

plan at the Illinois Commerce Commission, any person
24

objecting to the plan shall file an objection with the
25

Illinois Commerce Commission. Within 30 days after the
26

expiration of the comment period, the Illinois Commerce

SB2727
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LRB104 15876 AAS 29097 b
1

Commission shall determine whether an evidentiary hearing
2

is necessary. The Illinois Commerce Commission shall also
3

host 3 public hearings within 90 days after the plan is
4

filed. Following the evidentiary and public hearings, the
5

Illinois Commerce Commission shall enter its order
6

approving or approving with modifications the reliability
7

mitigation plan within 180 days.
8

(3) The Illinois Commerce Commission shall only
9

approve the plan if the Illinois Commerce Commission
10

determines that it will resolve the resource adequacy or
11

reliability deficiency identified in the reliability
12

mitigation plan at the least amount of CO
2
e and copollutant
13

emissions, taking into consideration the emissions impacts
14

on environmental justice communities, and that it will
15

ensure adequate, reliable, affordable, efficient, and
16

environmentally sustainable electric service at the lowest
17

total cost over time, taking into account the impact of
18

increases in emissions.
19

(4) If the resource adequacy or reliability deficiency
20

identified in the reliability mitigation plan is resolved
21

or reduced, the Environmental Protection Agency and the
22

Illinois Power Agency may file an amended plan adjusting
23

the reduction or delay in CO
2
e and copollutant emission
24

reduction requirements identified in the plan.
25

(p) The Agency shall adopt rules implementing this Section
26
no later than July 1, 2026.

SB2727
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LRB104 15876 AAS 29097 b
1
(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)

2

Section 99.
Effective date.
This Act takes effect upon
3
becoming law.

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