UTILITIES-REGULATORY TAKINGS

Illinois General Assembly - Full Text of SB3979

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3979

Introduced 2/6/2026, by Sen. Javier L. Cervantes

SYNOPSIS AS INTRODUCED:

220 ILCS 5/4-620 new

Amends the Public Utilities Act. Provides that all decarbonization
pilots, pathways, or infrastructure plans under a Future of Gas proceeding
pursuant to the final Order of the Commission in Docket No. 24-0158 shall
undergo a Regulatory Takings Assessment prior to approval. Requires the
Assessment shall be conducted by an independent third party and evaluated
and confirmed by intervenors and stakeholders. Provides that the
Assessment shall evaluate certain factors. Provides that a mandate in a
decarbonization pilot, pathway, or infrastructure plan shall not be
approved if the mandate risks creating a taking without compensation that
is equivalent to at least 80% of depreciated asset value. Provides that the
Commission shall coordinate with the Environmental Protection Agency to
ensure the alignment of air pollution standards and shall require, by
rule, uniform metrics across decarbonization pilots, pathways, and
infrastructure plans, including bill impacts and equity analyses. Provides
that rulemaking pursuant to the amendatory Act shall be completed by June
1, 2026 and rules adopted pursuant to the amendatory Act shall be applied
to all Phase 2C proposals, as specified under the final Order of the
Commission in Docket No. 24-0158.
LRB104 19037 AAS 32482 b

A BILL FOR

SB3979
LRB104 19037 AAS 32482 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 Public Utilities Act is amended by adding
5
Section 4-620 as follows:

6

(220 ILCS 5/4-620 new)
7

Sec. 4-620.
Regulatory Takings Assessment.
8

(a) All decarbonization pilots, pathways, or
9
infrastructure plans under a Future of Gas proceeding pursuant
10
to the final Order of the Commission in Docket No. 24-0158
11
shall undergo a Regulatory Takings Assessment prior to
12
approval. The Assessment shall be conducted by an independent
13
third party and evaluated and confirmed by intervenors and
14
stakeholders. The Assessment shall evaluate the following:

15

(1) whether proposed mandates, such as full
16

electrification or renewable natural gas adoption, deprive
17

property owners, public utilities, or customers of the
18

economic use of existing gas infrastructure or appliances
19

without just compensation;
20

(2) potential stranded asset values, including
21

recovery mechanisms for non-migrating customers; and
22

(3) mitigation strategies, such as opt-out provisions
23

or market-based transitions.

SB3979
- 2 -
LRB104 19037 AAS 32482 b
1

(b) A mandate in a decarbonization pilot, pathway, or
2
infrastructure plan shall not be approved if the mandate risks
3
creating a taking without compensation that is equivalent to
4
at least 80% of depreciated asset value.
5

(c) The Commission shall coordinate with the Environmental
6
Protection Agency to ensure the alignment of air pollution
7
standards, as defined in Section 3.115 of the Environmental
8
Protection Act, and shall require, by rule, uniform metrics
9
across decarbonization pilots, pathways, and infrastructure
10
plans, including bill impacts and equity analyses.
11

(d) Rulemaking pursuant to this Section shall be completed
12
by June 1, 2026 and rules adopted pursuant to this Section
13
shall be applied to all Phase 2C proposals, as specified under
14
the final Order of the Commission in Docket No. 24-0158.

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