Energy

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2027, tangible personal property that is purchased for the improvement of residential or nonresidential real estate by the installation of a solar energy system that is primarily used to provide electricity to the premises is exempt from taxation under the Acts.

Amends the Illinois Income Tax Act. Provides that a qualified taxpayer may apply to the Department of Revenue for an income tax credit in an amount equal to 20% of the wages paid by the qualified taxpayer to a qualified energy choice worker based in Illinois in the taxable year. Provides that the term "qualified taxpayer" means a taxpayer that is a regulated utility in the State of Illinois or a power generating company providing baseload or intermediate generation in Illinois and that meets specified criteria and is able to demonstrate an adverse and material operational impact to either its overall Illinois-based workforce or its ability to conduct business in Illinois based on the scheduled phaseout target dates of 2030, 2035, 2040, and 2045, as provided in Public Act 102-662. Sets forth limitations on the amount of the credit. Effective immediately.

Amends the Property Tax Code. In provisions concerning the valuation of wind energy devices, provides that, for taxable year 2027 and thereafter, the real property cost basis is $588,000 per megawatt of nameplate capacity (currently, $360,000 per megawatt of nameplate capacity). In provisions concerning the valuation of solar energy systems, provides that, for taxable year 2027 and thereafter, the real property cost basis is $446,000 per megawatt of nameplate capacity (currently, $218,000 per megawatt of nameplate capacity). Effective immediately.

Amends the Energy Efficient Building Act. Provides that municipalities and counties (instead of municipalities only) may adopt the Illinois Stretch Energy Code.

Amends the Illinois Power Agency Act. In provisions concerning the Planning and Procurement Bureau, provides that the Illinois Power Agency shall conduct an initial energy storage procurement that results in electric utilities that served more than 300,000 customers in the State as of January 1, 2019 contracting for at least 1,038 megawatts of cost-effective stand-alone energy storage systems, excluding hydrogen batteries, that can achieve commercial operation on or before December 31, 2029 or an alternative date proposed by the Agency that is no later than December 31, 2030. Amends the Counties Code. In provisions concerning energy storage systems, provides that a county may require an energy storage facility to comply with the version of NFPA 855 "Standard for the Installation of Stationary Energy Storage Systems", or, for hydrogen batteries, the version of NFPA 853 "Standard for the Installation of Stationary Fuel Cell Power Systems", in effect on a certain date. Provides that a facility owner's decommissioning plan may include all requirements for decommissioning plans in NFPA 855 or NFPA 853 for hydrogen batteries. Amends the Public Utilities Act. In provisions concerning net electricity metering, provides that each electricity provider shall modify its tariffs to allow net metering for an energy storage system, except for hydrogen batteries, or vehicle storage system energized after a certain date with a nameplate capacity of not more than 5,000 kilowatts. In provisions concerning distributed generation rebates, provides that an energy storage system, except for hydrogen batteries, whether or not paired with distributed generation, shall be separately compensated at a base payment of $300 per kilowatt-hour of nameplate capacity until the threshold date. Provides that, after the threshold date, a stand-alone energy storage system, except for hydrogen batteries, shall be compensated with a rebate of $250 per kilowatt-hour of nameplate capacity. In provisions concerning the resolution of disputes between facility owners and units of local government related to the siting of qualified energy facilities, provides that an energy storage system, except for hydrogen batteries, shall be in compliance with provisions of the Counties Code concerning energy storage systems. Makes other changes.

Amends the Illinois Power Agency Act and the Public Utilities Act. Provides that "agrivoltaic system" means a ground-mounted photovoltaic solar energy system that meets the following criteria: (1) the applicable farm plan and the system have been intentionally designed with agricultural producers, agrivoltaics experts, or both agricultural producers and agrivoltaics experts; (2) the system is constructed, installed, and operated to achieve an integrated and simultaneous production of both solar energy and current or future marketable agricultural products, including all products and activities described in the definition of "production agriculture" in the Use Tax Act and apiaries if the apiary is paired with another qualifying marketable agricultural product, by an agricultural producer; (3) the agricultural production of the system occur on land beneath or between rows of solar panels; and (4) the agricultural production of the system begins as soon as agronomically feasible and optimal for the agricultural producer after the commercial operation date of the solar panels and continues until decommissioning. Provides that "agrivoltaic system" does not include a system that has a pollinator habitat as the sole dual use of the system.

Creates the District Energy and Thermal Energy Storage Parity Act. Provides that the Illinois Commerce Commission, in consultation with Environmental Protection Agency, shall establish an optional certification process for Qualified District Energy Infrastructure. Requires the Environmental Protection Agency to establish a grant program to support certain projects. Provides that, within 180 days after the effective date of the Act, the Commission shall initiate a docketed proceeding to develop standardized thermal service agreement templates, suitable for developer financing and underwriting, and minimum requirements for customer rate stabilization options. Provides that a developer shall obtain a District Energy Feasibility Assessment from a qualified preparer for certain projects. Sets forth requirements for the content of the District Energy Feasibility Assessment. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department to develop and make available to units of local government a municipal alignment toolkit to facilitate the development and expansion of district energy systems. Requires the Department to establish and administer a district energy expansion program to support the development expansion, modernization, and decarbonization of district energy systems in the State. Amends the Illinois Finance Authority Act. Provides that the Authority may provide loans, credit enhancements, interest rate buydowns, loan loss reserves, or other financial assistance for the development, construction, expansion, or operation of the Qualified Energy Infrastructure and Dispatchable Thermal Energy Storage. Amends the Illinois Power Agency Act. Creates the Thermal Energy Storage Credit procurement program. Sets forth requirements for the program. Amends the Illinois Procurement Code. Sets forth provisions concerning district energy evaluation in State procurements. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes changes in provisions concerning exemptions. Amends the Property Tax Code. Defines "commercial energy storage system". Amends the Public Utilities Act. Sets forth provisions concerning district energy enabling measures and heat recovery incentives. Makes other changes.

Amends the Illinois Enterprise Zone Act. In provisions concerning High Impact Businesses, adds utility-scale brownfield site photovoltaic projects and over 5,000 kilowatts and utility-scale solar projects to High Impact Businesses that may be located, at the time of designation, in an enterprise zone. Amends the Illinois Power Agency Act. Provides that "brownfield site photovoltaic project" includes photovoltaics that are interconnected to an electric utility, a municipal utility, a public utility, or an electric cooperative, where at least 50% of the acreage occupied by the photovoltaics is located on the property regulated under specified United States Environmental Protection Agency or Illinois Environmental Protection Agency programs. Makes other changes

Amends the Illinois Enterprise Zone Act. In provisions concerning High Impact Businesses, adds utility-scale brownfield site photovoltaic projects and over 5,000 kilowatts and utility-scale solar projects to High Impact Businesses that may be located, at the time of designation, in an enterprise zone. Amends the Illinois Power Agency Act. Provides that "brownfield site photovoltaic project" includes photovoltaics that are interconnected to an electric utility, a municipal utility, a public utility, or an electric cooperative, where at least 50% of the acreage occupied by the photovoltaics is located on the property regulated under specified United States Environmental Protection Agency or Illinois Environmental Protection Agency programs. Makes other changes

States that it is of vital importance to protect Illinois farmland from irreversible conversion and fragmentation due to solar, industrial, and other large-scale developments. Affirms that farmland protection is consistent with and complementary to the goals of the Climate and Equitable Jobs Act and should be considered in clean-energy planning and implementation. Urges State agencies, local governments, and developers to prioritize renewable-energy and infrastructure projects on non-agricultural lands whenever practicable and to minimize impacts on prime farmland and farmland of statewide importance. Supports renewable-energy siting practices that protect soil health, drainage infrastructure, and long-term agricultural productivity, including appropriate decommissioning and land-restoration standards. Encourages transparent decision-making and meaningful community engagement to ensure that agricultural landowners and rural communities are protected from unintended long-term harm.