EPA-HEAT RATE

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3606

Introduced 2/5/2026, by Sen. Steve Stadelman

SYNOPSIS AS INTRODUCED:

415 ILCS 5/9.15

Amends the Environmental Protection Act. In provisions regarding the
regulation of greenhouse gases, defines "heat rate" as the gross amount of
energy used by an electric generator or power plant, expressed in British
thermal units (Btus), to generate one kilowatt hour (kWh) of electricity,
as measured using a 12-month average. In provisions regarding electric
generating units and large greenhouse gas-emitting units that have a heat
rate greater than or equal to 7,000 Btus/kWh, requires each EGU and large
GHG-emitting unit, by no later than January 1, 2035, to reduce its CO
2
e
emissions by at least 50% from its existing CO
2
e emissions as measured
using a 12-month gross average in 2034.
LRB104 17567 BDA 30995 b

A BILL FOR

SB3606
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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

SB3606
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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

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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

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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

"Heat rate" means the gross amount of energy used by an
6
electric generator or power plant, expressed in British
7
thermal units (Btus), to generate one kilowatt hour (kWh) of
8
electricity, as measured using a 12-month average.

9

"Large greenhouse gas-emitting unit" or "large
10
GHG-emitting unit" means a unit that is an electric generating
11
unit or other fossil fuel-fired unit that itself has a
12
nameplate capacity or serves a generator that has a nameplate
13
capacity greater than 25 MWe and that produces electricity,
14
including, but not limited to, coal-fired, coal-derived,
15
oil-fired, natural gas-fired, and cogeneration units.
16

"NO
x
emission rate" means the plant annual NO
x
total output
17
emission rate as measured by the United States Environmental
18
Protection Agency in its Emissions & Generation Resource
19
Integrated Database (eGrid), or its successor, in the most
20
recent year for which data is available.
21

"Public greenhouse gas-emitting units" or "public
22
GHG-emitting unit" means large greenhouse gas-emitting units,
23
including EGUs, that are wholly owned, directly or indirectly,
24
by one or more municipalities, municipal corporations, joint
25
municipal electric power agencies, electric cooperatives, or
26
other governmental or nonprofit entities, whether organized

SB3606
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1
and created under the laws of Illinois or another state.
2

"SO
2
emission rate" means the "plant annual SO
2
total
3
output emission rate" as measured by the United States
4
Environmental Protection Agency in its Emissions & Generation
5
Resource Integrated Database (eGrid), or its successor, in the
6
most recent year for which data is available.
7

(g) All EGUs and large greenhouse gas-emitting units that
8
use coal or oil as a fuel and are not public GHG-emitting units
9
shall permanently reduce all CO
2
e and copollutant emissions to
10
zero no later than January 1, 2030.
11

(h) All EGUs and large greenhouse gas-emitting units that
12
use coal as a fuel and are public GHG-emitting units shall
13
permanently reduce CO
2
e emissions to zero no later than
14
December 31, 2045. Any source or plant with such units must
15
also reduce their CO
2
e emissions by 45% from existing
16
emissions by no later than January 1, 2035. If the emissions
17
reduction requirement is not achieved by December 31, 2035,
18
the plant shall retire one or more units or otherwise reduce
19
its CO
2
e emissions by 45% from existing emissions by June 30,
20
2038.
21

(i) All EGUs and large greenhouse gas-emitting units that
22
use gas as a fuel and are not public GHG-emitting units shall
23
permanently reduce all CO
2
e and copollutant emissions to zero,
24
including through unit retirement or the use of 100% green
25
hydrogen or other similar technology that is commercially
26
proven to achieve zero carbon emissions, according to the

SB3606
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LRB104 17567 BDA 30995 b
1
following:
2

(1) No later than January 1, 2030: all EGUs and large
3

greenhouse gas-emitting units that have a NO
x
emissions
4

rate of greater than 0.12 lbs/MWh or a SO
2
emission rate of
5

greater than 0.006 lb/MWh, and are located in or within 3
6

miles of an environmental justice community designated as
7

of January 1, 2021 or an equity investment eligible
8

community.
9

(2) No later than January 1, 2040: all EGUs and large
10

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

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

greater than 0.006 lb/MWh, and are not located in or
13

within 3 miles of an environmental justice community
14

designated as of January 1, 2021 or an equity investment
15

eligible community. After January 1, 2035, each such EGU
16

and large greenhouse gas-emitting unit shall reduce its
17

CO
2
e emissions by at least 50% from its existing emissions
18

for CO
2
e, and shall be limited in operation to, on average,
19

6 hours or less per day, measured over a calendar year, and
20

shall not run for more than 24 consecutive hours except in
21

emergency conditions, as designated by a Regional
22

Transmission Organization or Independent System Operator.
23

(3) No later than January 1, 2035: all EGUs and large
24

greenhouse gas-emitting units that began operation prior
25

to the effective date of this amendatory Act of the 102nd
26

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

SB3606
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LRB104 17567 BDA 30995 b
1

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

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

miles of an environmental justice community designated as
4

of January 1, 2021 or an equity investment eligible
5

community. Each such EGU and large greenhouse gas-emitting
6

unit shall reduce its CO
2
e emissions by at least 50% from
7

its existing emissions for CO
2
e no later than January 1,
8

2030.
9

(4) No later than January 1, 2040: All remaining EGUs
10

and large greenhouse gas-emitting units that have a heat
11

rate greater than or equal to
7,000 Btu/kWh

7000 BTU/kWh
.
12

As measured using a 12-month gross average in 2034, each

13

Each
such EGU and Large greenhouse gas-emitting unit shall
14

reduce its CO
2
e emissions by at least 50% from its existing
15

emissions for CO
2
e no later than January 1, 2035.
16

(5) No later than January 1, 2045: all remaining EGUs
17

and large greenhouse gas-emitting units.
18

(j) All EGUs and large greenhouse gas-emitting units that
19
use gas as a fuel and are public GHG-emitting units shall
20
permanently reduce all CO
2
e and copollutant emissions to zero,
21
including through unit retirement or the use of 100% green
22
hydrogen or other similar technology that is commercially
23
proven to achieve zero carbon emissions by January 1, 2045.
24

(k) All EGUs and large greenhouse gas-emitting units that
25
utilize combined heat and power or cogeneration technology
26
shall permanently reduce all CO
2
e and copollutant emissions to

SB3606
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LRB104 17567 BDA 30995 b
1
zero, including through unit retirement or the use of 100%
2
green hydrogen or other similar technology that is
3
commercially proven to achieve zero carbon emissions by
4
January 1, 2045.
5

(k-5) No EGU or large greenhouse gas-emitting unit that
6
uses gas as a fuel and is not a public GHG-emitting unit may
7
emit, in any 12-month period, CO
2
e or copollutants in excess of
8
that unit's existing emissions for those pollutants.
9

(l) Notwithstanding subsections (g) through (k-5), large
10
GHG-emitting units including EGUs may temporarily continue
11
emitting CO
2
e and copollutants after any applicable deadline
12
specified in any of subsections (g) through (k-5) if it has
13
been determined, as described in paragraphs (1) and (2) of
14
this subsection, that ongoing operation of the EGU is
15
necessary to maintain power grid supply and reliability or
16
ongoing operation of large GHG-emitting unit that is not an
17
EGU is necessary to serve as an emergency backup to
18
operations. Up to and including the occurrence of an emission
19
reduction deadline under subsection (i), all EGUs and large
20
GHG-emitting units must comply with the following terms:
21

(1) if an EGU or large GHG-emitting unit that is a
22

participant in a regional transmission organization
23

intends to retire, it must submit documentation to the
24

appropriate regional transmission organization by the
25

appropriate deadline that meets all applicable regulatory
26

requirements necessary to obtain approval to permanently

SB3606
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1

cease operating the large GHG-emitting unit;
2

(2) if any EGU or large GHG-emitting unit that is a
3

participant in a regional transmission organization
4

receives notice that the regional transmission
5

organization has determined that continued operation of
6

the unit is required, the unit may continue operating
7

until the issue identified by the regional transmission
8

organization is resolved. The owner or operator of the
9

unit must cooperate with the regional transmission
10

organization in resolving the issue and must reduce its
11

emissions to zero, consistent with the requirements under
12

subsection (g), (h), (i), (j), (k), or (k-5), as
13

applicable, as soon as practicable when the issue
14

identified by the regional transmission organization is
15

resolved; and
16

(3) any large GHG-emitting unit that is not a
17

participant in a regional transmission organization shall
18

be allowed to continue emitting CO
2
e and copollutants
19

after the zero-emission date specified in subsection (g),
20

(h), (i), (j), (k), or (k-5), as applicable, in the
21

capacity of an emergency backup unit if approved by the
22

Illinois Commerce Commission.
23

(m) No variance, adjusted standard, or other regulatory
24
relief otherwise available in this Act may be granted to the
25
emissions reduction and elimination obligations in this
26
Section.

SB3606
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1

(n) By June 30 of each year, beginning in 2025, the Agency
2
shall prepare and publish on its website a report setting
3
forth the actual greenhouse gas emissions from individual
4
units and the aggregate statewide emissions from all units for
5
the prior year.
6

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

SB3606
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LRB104 17567 BDA 30995 b
1
Protection Agency, Illinois Power Agency, and Illinois
2
Commerce Commission jointly conclude in the report that the
3
data from the regional grid operators, the pace of renewable
4
energy development, the pace of development of energy storage
5
and demand response utilization, transmission capacity, and
6
the CO
2
e and copollutant emissions reductions required by
7
subsection (i) or (k-5) reasonably demonstrate that a resource
8
adequacy shortfall will occur, including whether there will be
9
sufficient in-state capacity to meet the zonal requirements of
10
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
11
regional transmission organizations, or that the regional
12
transmission operators determine that a reliability violation
13
will occur during the time frame the study is evaluating, then
14
the Illinois Power Agency, in conjunction with the
15
Environmental Protection Agency shall develop a plan to reduce
16
or delay CO
2
e and copollutant emissions reductions
17
requirements only to the extent and for the duration necessary
18
to meet the resource adequacy and reliability needs of the
19
State, including allowing any plants whose emission reduction
20
deadline has been identified in the plan as creating a
21
reliability concern to continue operating, including operating
22
with reduced emissions or as emergency backup where
23
appropriate. The plan shall also consider the use of renewable
24
energy, energy storage, demand response, transmission
25
development, or other strategies to resolve the identified
26
resource adequacy shortfall or reliability violation.

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1

(1) In developing the plan, the Environmental
2

Protection Agency and the Illinois Power Agency shall hold
3

at least one workshop open to, and accessible at a time and
4

place convenient to, the public and shall consider any
5

comments made by stakeholders or the public. Upon
6

development of the plan, copies of the plan shall be
7

posted and made publicly available on the Environmental
8

Protection Agency's, the Illinois Power Agency's, and the
9

Illinois Commerce Commission's websites. All interested
10

parties shall have 60 days following the date of posting
11

to provide comment to the Environmental Protection Agency
12

and the Illinois Power Agency on the plan. All comments
13

submitted to the Environmental Protection Agency and the
14

Illinois Power Agency shall be encouraged to be specific,
15

supported by data or other detailed analyses, and, if
16

objecting to all or a portion of the plan, accompanied by
17

specific alternative wording or proposals. All comments
18

shall be posted on the Environmental Protection Agency's,
19

the Illinois Power Agency's, and the Illinois Commerce
20

Commission's websites. Within 30 days following the end of
21

the 60-day review period, the Environmental Protection
22

Agency and the Illinois Power Agency shall revise the plan
23

as necessary based on the comments received and file its
24

revised plan with the Illinois Commerce Commission for
25

approval.
26

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

SB3606
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1

plan at the Illinois Commerce Commission, any person
2

objecting to the plan shall file an objection with the
3

Illinois Commerce Commission. Within 30 days after the
4

expiration of the comment period, the Illinois Commerce
5

Commission shall determine whether an evidentiary hearing
6

is necessary. The Illinois Commerce Commission shall also
7

host 3 public hearings within 90 days after the plan is
8

filed. Following the evidentiary and public hearings, the
9

Illinois Commerce Commission shall enter its order
10

approving or approving with modifications the reliability
11

mitigation plan within 180 days.
12

(3) The Illinois Commerce Commission shall only
13

approve the plan if the Illinois Commerce Commission
14

determines that it will resolve the resource adequacy or
15

reliability deficiency identified in the reliability
16

mitigation plan at the least amount of CO
2
e and copollutant
17

emissions, taking into consideration the emissions impacts
18

on environmental justice communities, and that it will
19

ensure adequate, reliable, affordable, efficient, and
20

environmentally sustainable electric service at the lowest
21

total cost over time, taking into account the impact of
22

increases in emissions.
23

(4) If the resource adequacy or reliability deficiency
24

identified in the reliability mitigation plan is resolved
25

or reduced, the Environmental Protection Agency and the
26

Illinois Power Agency may file an amended plan adjusting

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1

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

reduction requirements identified in the plan.
3
(Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)

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