HB5824 103RD GENERAL ASSEMBLY

LRB103 40257 RTM 72235 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5824

Introduced 4/30/2024, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

New Act
220 ILCS 5/8-106 new
220 ILCS 5/8-107 new
625 ILCS 5/12-830 new
625 ILCS 5/13C-21 new
625 ILCS 5/18c-1206 new
30 ILCS 805/8.48 new

Creates the Zero-Emission Vehicle Act. Provides that all on-road vehicles purchased or leased by a governmental unit on or after January 1, 2028 must be a manufactured zero-emission vehicle, repowered zero-emission vehicle, manufactured near zero-emission vehicle, or repowered near zero-emission vehicle. Provides that on and after January 1, 2033, all on-road vehicles purchased or leased by a governmental unit must be a manufactured zero-emission vehicle or repowered zero-emission vehicle. Provides that, by January 1, 2048, all on-road vehicles operated by a governmental unit must be a manufactured or repowered zero-emission vehicle. Sets forth provisions implementing the Act, including requiring the Department of Central Management Services to adopt certain rules. Amends the Public Utilities Act. Provides that no later than the next multi-year rate case, each electric utility shall propose a new tariff or rule that authorizes each electric utility to design and deploy all electrical distribution infrastructure on the utility side of the customer's meter for all customers installing separate or sub-metered infrastructure to support charging stations, other than those in single-family residences. Amends the Illinois Vehicle Code. Adds provisions concerning electric school buses and large fleet reporting requirements. Provides that no later than December 1, 2025, the Illinois Environmental Protection Agency shall adopt rules to implement to implement motor vehicle emission standards that are identical in substance to specified motor vehicle emission standards in force in California. Requires the Illinois Environmental Protection Agency to amend its standards to maintain consistency with the California standards if the California standards are amended. Makes other changes. Amends the States Mandate Act to require implementation without reimbursement by the State. Effective immediately.

A BILL FOR

AN ACT concerning government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Zero-Emission Vehicle Act.

Section 3. Purpose. The purpose of this Act is to accelerate the adoption of on-road zero-emission vehicles and to reduce emissions of air pollution, including, but not limited to, nitrogen oxides (NO_x), particulate matter, hazardous air pollutants, and greenhouse gases from vehicles owned and operated by governmental units in Illinois.

Section 5. Definitions. In this Act:

"Displaced worker" means any employee whose most recent separation from active service was due to lack of business, a reduction in force, or other economic, nondisciplinary reason related to the transition from fossil-fuel reliant vehicles to zero-emission or near zero-emissions vehicles.

"Governmental unit" means the State, a State agency, a unit of local government, or any other political subdivision of the State, which exercises limited governmental powers or powers in respect to limited governmental subjects, but does not include school districts.

"Individual facing barriers to employment" means either of the following:

(1) An individual with a barrier to employment as defined by 29 U.S.C. 3102(24).

(2) An individual from a demographic group that represents less than 30% of their relevant industry workforce according to the United States Bureau of Labor Statistics.

"Non-temporary job" means a job other than those classified as "day and temporary labor" as defined in the Day and Temporary Labor Services Act.

"Near zero-emission vehicle" means an on-road hybrid electric vehicle that has the capability to charge the battery from an off-vehicle conductive or inductive electric source and achieves all-electric range.

"On-road vehicles" means vehicles intended for use on roads. These vehicles include passenger cars and commercial vehicles, including vans, trucks, road tractors, specially constructed vehicles, buses, trailers, and semi-trailers.

"Repower" means to replace the internal combustion engine in a vehicle with a zero-emission powertrain.

"Zero-emission powertrain" means a powertrain that produces zero exhaust emissions of any criteria pollutant, precursor pollutant, or greenhouse gas in any mode of operation or condition.

"Zero-emission vehicles" means on-road vehicles powered with a zero-emission powertrain.

Section 10. Purchase of zero-emission vehicles and near zero-emission vehicles.

(a) Notwithstanding any other provision of law, all on-road vehicles purchased or leased by a governmental unit on or after January 1, 2028 must be a manufactured zero-emission vehicle, repowered zero-emission vehicle, manufactured near zero-emission vehicle, or repowered near zero-emission vehicle. On and after January 1, 2033, all on-road vehicles purchased or leased by a governmental unit must be a manufactured zero-emission vehicle or repowered zero-emission vehicle. By January 1, 2048, all on-road vehicles operated by a governmental unit must be a manufactured or repowered zero-emission vehicle.

(b) By January 1, 2026, the Department of Central Management Services shall establish guidance for governmental units transitioning fleets to zero-emission and near zero-emission vehicles, including, but not limited to, (1) a periodically updated list of available zero-emission and near zero-emission vehicle models; and (2) a quarterly updated list of available incentives, grants, rebates from the federal government and State government, VW diesel settlement, and utility company programs.

(c) Notwithstanding any other provision of this Section, a governmental unit may purchase a new internal combustion engine vehicle if no zero-emission vehicles nor near zero-emission vehicle of the needed configuration is commercially available. A governmental unit from may not be penalized for not taking immediate delivery of ordered zero-emission vehicles for one year due to a construction delay beyond the control of the governmental unit. The Department of Central Management Services shall adopt rules regarding the scope of any exception under this subsection (c).

(d) Beginning January 1, 2026, all contracts by governmental units for the purchase of zero-emission vehicles or near zero-emission vehicles with a base-buy value of $10,000,000 or more shall be awarded using a competitive best-value procurement process and shall require bidders to submit a United States Jobs Plan as part of their solicitation responses.

(1) The United States Jobs Plan shall include the following information:

(A) The number of full-time non-temporary jobs proposed to be retained and created, including an accounting of the positions classified as employees, and positions classified as independent contractors.

(B) The number of jobs specifically reserved for individuals facing barriers to employment and the number reserved for displaced workers.

(C) The minimum wage levels by job classification for non-supervisory workers.

(D) Proposed amounts to be paid for fringe benefits by job classification and the proposed amounts for worker training by job classification.

(E) Description of what manuals, trainings, and other resources would be provided to ensure existing purchasing government unit employees are trained on the service, maintenance, and operation of the purchased vehicles.

(F) If a federal authority specifically authorizes use of a geographic preference or when State or local funds are used to fund a contract, proposed local jobs created in the State or within an existing facility in the State that are related to the manufacturing of zero-emission and near zero-emissions vehicles and vehicles and related equipment.

(2) The United States Jobs Plan shall be scored as a part of the overall application for the covered public contract. The content of United States Jobs Plans shall be incorporated as material terms of the final contract. The United States Jobs Plan and compliance documents shall be made available to the public and subject to full disclosure under the Freedom of Information Act.

(3) Contracting entities shall be required to submit annual United States Jobs Plan reports to contracting public agencies demonstrating compliance with their United States Jobs Plan commitments. The terms of the final contract as well as all compliance reporting shall be made available to the public online.

(c) This Section does not apply to a contract awarded based on a solicitation issued before January 1, 2026.

Section 100. The Public Utilities Act is amended by adding Sections 8-106 and 8-107 as follows:

(220 ILCS 5/8-106 new)

Sec. 8-106. Make-ready tariff.

(a) The purpose of this Section is to change the Commission's practice of authorizing the electrical distribution infrastructure located on the utility side of the customer meter needed to charge electric vehicles on a case-by-case basis to a practice of considering that infrastructure and associated design, engineering, and construction work as core utility business, treated the same as other necessary distribution infrastructure authorized on an ongoing basis in the electric utility's multi-year rate plans. The Commission shall continue to require each electric utility to provide an accurate and full accounting of all expenses related to electrical distribution infrastructure as it relates to this Section, and apply appropriate penalties to the extent an electric utility is not accurately tracking all expenses.

(b) For purposes of this Section, "electrical distribution infrastructure" includes poles, vaults, service drops, transformers, mounting pads, trenching, conduit, wire, cable, meters, other equipment as necessary, and associated engineering and civil construction work.

(c) Not later than the next multi-year rate case, each electric utility shall propose a new tariff or rule that authorizes each electric utility to design and deploy all electrical distribution infrastructure on the utility side of the customer's meter for all customers installing separate or sub-metered infrastructure to support charging stations, other than those in single-family residences. Each electric utility shall recover its revenue requirement for this work through periodic multi-year rate plan proceedings. In those proceedings, the costs shall be treated like those costs incurred for other necessary distribution infrastructure. The new tariff shall replace the line extension rules currently used for electric vehicle infrastructure as of the effective date of the new tariff or rule and any customer allowances established shall be based on the full useful life of the electrical distribution infrastructure. The Commission may revise the policy described in subsection (a) and this subsection after the completion of the multi-year rate plan of the electric utility following the one during which the proposal was filed if a determination is made that a change in the policy is necessary to ensure just and reasonable rates for ratepayers. Moreover, electric utilities and combination gas and electric utilities shall take reasonable efforts to ensure that any infrastructure built pursuant this Section is efficiently sized and operated. Such efforts include, but are not necessarily limited to, considering customers' reasonably foreseeable load management activities and deployments of distributed energy resources.

(220 ILCS 5/8-107 new)

Sec. 8-107. Inclusive utility investment.

(a) The purpose of this Section is for the Commission to require electric utilities to explore a new and complementary mechanism for investments by the electric utility in the electrical distribution infrastructure and equipment located on the customer side of the meter that may be needed to charge electric vehicles. Electrical distribution infrastructure that may be needed on the customer side of the meter includes wiring, panels, breaker panels, conduit up to the charger itself and the electric vehicle charger. The new mechanism is an inclusive utility investment with a site-specific recovery mechanism described in subsection (b). The Commission shall require each electric utility to explore this mechanism as an option to complement other incentives offered (such as charger rebates).

(b) Inclusive utility investment is seen by the United States Environmental Protection Agency as a promising approach to expanding access to cost-effective more comprehensive efficiency and electrification upgrades for all utility customers. Inclusive utility investment allows for site-specific investments by the electric utility in electrification measures on the customer side of the meter with site-specific cost recovery through a fixed charge on the utility bill of the customer at the metered location. The fixed charge must be no more than the expected energy cost savings resulting from a customer switching from an internal combustion engine vehicle with associated fuel costs to an electric vehicle with associated electric charging costs on an annual basis, and the cost recovery term must be limited to no more than the useful life of the charging equipment. The fixed charge shall be calculated taking into account equipment, installation, and administrative costs, and all available rebates and incentives should be applied to reduce total project costs.

(c) No later than December 1, 2024, each electric utility shall file an advice letter and not later than June 1, 2025, the Commission shall start a process to explore the implementation of inclusive utility investments for investing in the electrical distribution infrastructure on the customer side of the meter, including electric vehicle chargers. For this process, the Commission shall request each electric utility to present a proposal with the estimation of the investments needed. This estimation shall include the costs and energy savings of all the customer-side electric vehicle infrastructure and chargers at the customer's residence. The proposal shall also include the calculation of the tariff required for a cost recovery period equivalent to the warranty of the charger and based on the description of inclusive utility investment in subsection (b). The Commission shall review the proposal as inclusive utility investments and approve the charge proposed as a tariff in the customer's bill ensuring customer protections.

Section 105. The Illinois Vehicle Code is amended by adding Sections 12-830, 13C-21, and 18c-1206 as follows:

(625 ILCS 5/12-830 new)

Sec. 12-830. Electric school buses.

(a) In this Section:

"Displaced worker" means any employee whose most recent separation from active service was due to lack of business, a reduction in force, or other economic, nondisciplinary reason related to the transition from the fossil-fuel reliant vehicles to zero-emission or near zero-emissions vehicles.

"Individual facing barriers to employment" means either of the following:

(A) An individual with a barrier to employment as defined by 29 U.S.C. 3102(24).

(B) An individual from a demographic group that represents less than 30% of their relevant industry workforce according to the United States Bureau of Labor Statistics.

"Non-temporary job" means a job other than those classified as "day and temporary labor" as defined in the Day and Temporary Labor Services Act.

"Repower" means to replace the internal combustion engine in a vehicle with a zero-emission powertrain.

"School bus" means every on-road motor vehicle owned or operated by or for the transportation of persons regularly enrolled as students in grade 12 or below in connection with any activity of such entities as defined in Section 1-182 of the Illinois Vehicle Code.

"Zero-emission vehicle" means vehicles powered with a zero-emission powertrain that produces zero exhaust emissions of any criteria pollutant, precursor pollutant, or greenhouse gas in any mode of operation or condition, as determined by the Illinois Environmental Protection Agency.

(b) Notwithstanding any other provision of law, all school buses newly purchased or leased, including by contractors, after January 1, 2030 must be a manufactured or repowered zero-emission vehicle.

(c) On or before January 1, 2042, all school buses operated in the State must be a manufactured or repowered zero-emission vehicle.

(d) Notwithstanding the provisions of this Section, a school bus owner may purchase a new internal combustion school bus instead of a zero-emission school bus if, due to both terrain and route constraints, the school bus owner can reasonably demonstrate that a daily planned bus route for transporting pupils to and from school cannot be serviced through available zero-emission technology in the period in which the exemption is sought. A school bus owner may not be penalized for not taking immediate delivery of ordered zero-emission vehicles for one year due to a construction delay beyond the control of the governmental unit.

(1) Infrastructure Construction Delay Extension. Excuses the school bus owner from taking immediate delivery of ordered zero-emission vehicles for one year due to a construction delay beyond the owners control.

(2) Route Service Exemption. Allows the purchase or contracting of an internal combustion school bus instead of a zero-emission school bus if, due to both terrain and route constraints, the school bus owner can reasonably demonstrate that a daily planned bus route for transporting pupils to and from school cannot be serviced through available zero-emission technology in the period in which the exemption is sought.

(e) Beginning January 1, 2026, all master agreements by governmental units for the purchase of electric school buses, and all other contracts by governmental units for the purchase of electric school buses with a base-buy value of $1,000,000 or more, shall be awarded using a competitive best-value procurement process; and shall require bidders to submit a United States Jobs Plan as part of their solicitation responses.

(1) The United States Jobs Plan shall include the following information:

(A) The number of full-time non-temporary jobs proposed to be retained and created, including an accounting of the positions classified as employees, and positions classified as independent contractors.

(B) The number of jobs specifically reserved for individuals facing barriers to employment and the number reserved for displaced workers.

(C) The minimum wage levels by job classification for non-supervisory workers.

(D) Proposed amounts to be paid for fringe benefits by job classification and the proposed amounts for worker training by job classification.

(E) Description of what manuals, trainings, and other resources would be provided to ensure existing public employees are trained on the service, maintenance, and operation of the purchased vehicles.

(F) If a federal authority specifically authorizes use of a geographic preference or when State or local funds are used to fund a contract, proposed local jobs created in the State or within an existing facility in the State that are related to the manufacturing of zero-emission and near zero-emissions vehicles and vehicles and related equipment.

(2) The United States Jobs Plan shall be scored as a part of the overall application for the covered public contract. The content of United States Jobs Plans shall be incorporated as material terms of the final contract. The United States Jobs Plan and compliance documents shall be made available to the public and subject to full disclosure under the Freedom of Information Act.

(3) Contracting entities shall be required to submit annual United States Jobs Plan reports to contracting public agencies demonstrating compliance with their United States Jobs Plan commitments.

(f) This Section does not apply to a contract awarded based on a solicitation issued before January 1, 2026.

(625 ILCS 5/13C-21 new)

Sec. 13C-21. Vehicle emissions testing standards.

(a) The purpose of this Section is to establish standards relating to control of emissions from new motor vehicles and motor vehicle engines. Establishing targets for the sale of zero-emission vehicles is needed to meet State goals, address greenhouse gas and criteria pollutant emissions, and provide market certainty to help prepare the grid and alternative fueling infrastructure for the zero-emission vehicle transition.

(b) By no later than December 1, 2025, the Illinois Environmental Protection Agency shall adopt rules to implement motor vehicle emission standards that are identical in substance to the following motor vehicle emission standards in force in California on the effective date of this amendatory Act of the 103rd General Assembly:

(1) the zero-emission vehicle program of the advanced clean cars II program;

(2) the low-emission vehicle program of the advanced clean cars II program;

(3) the advanced clean trucks program; and

(4) the heavy-duty low oxides of nitrogen omnibus program.

(c) If the California standards described in subsection (b) are subsequently amended, the Illinois Environmental Protection Agency shall, within 6 months of such amendment, amend its standards to maintain consistency with the amended California standards and Section 177 of the Clean Air Act.

(d) In adopting the standards described in subsections (b) and (c), the Illinois Environmental Protection Agency may incorporate the relevant California motor vehicle standards by reference.

(625 ILCS 5/18c-1206 new)

Sec. 18c-1206. Large fleet reporting requirement.

(a) The purpose of this Section is to establish reporting requirements for motor carriers in the State to gather data on the transition of medium and heavy-duty vehicles to zero-emission vehicles over time. This public data will provide regulators and government agencies the information necessary to identify the hardest to electrify sectors and invest public dollars responsibly.

(b) In this Section:

"Common ownership or control" means being owned, dispatched, or managed on a day-to-day basis by the same person or entity. Vehicles managed by the same directors, officers, or managers, or by distinct corporations that are controlled by the same majority stockholders are considered to be under common ownership or control, even if their titles are held by different business entities or they have different taxpayer identification numbers. Furthermore, a vehicle is considered to be under an entity's control if that entity operates the vehicle using that entity's State or federal operating authority or other registration. Vehicles owned by different entities but operated by using common or shared resources to manage the day-to-day operations by using the same motor carrier number, displaying the same name or logo, or contractors who represent the same company are considered to be under common ownership or control. Common ownership or control of a federal government vehicle shall be the primary responsibility of the governmental agency that is directly responsible for the day-to-day operational control of the vehicle.

"Drayage truck" means any in-use on-road vehicle with a GVWR greater than 33,000 lbs. that is used for transporting cargo, such as containerized, bulk, or break-bulk goods that:

(A) Operates on or transgresses through an Illinois port, warehouse of 30,000 square feet or larger, or intermodal railyard property to load, unload, or transport cargo, including empty containers and chassis.

(B) Operates on off-port or intermodal railyard property transporting cargo or empty containers or chassis that originated from or is destined to a port or intermodal railyard property.

"Drayage truck" does not include trucks that are any of the following:

(A) Class 6 or smaller.

(B) Unibody vehicles that do not have separate tractor and trailers and include but are not limited to dedicated auto transports, dedicated fuel delivery vehicles, concrete mixers, and on-road mobile cranes.

(C) Emergency vehicles.

(D) Military tactical support vehicles.

(E) Off-road vehicles such as a yard truck or a mobile crane.

"Fleet" means one or more vehicles owned by a fleet owner or under common ownership or control of a controlling party. It also includes rental or leased vehicles that are considered owned by the "fleet owner."

"Fleet owner" means the person or entity that owns the vehicles comprising the fleet. The owner shall be presumed to be either the person registered with the Secretary of State as the owner or lessee of a vehicle, or its equivalent in another state, province, or country; vehicle ownership is based on the vehicle registration document or the vehicle title, except for the following:

(A) For vehicles that are owned by the federal government and not registered in any State or local jurisdiction, the owner shall be the department, agency, branch, or other entity of the United States, including the United States Postal Service, to which the vehicles in the fleet are assigned or which has responsibility for maintenance of the vehicles.

(B) For vehicles that are rented or leased from a business that is regularly engaged in the trade or business of renting or leasing motor vehicles without drivers, including truck leases that are part of a bundled service agreement, the owner shall be presumed to be the rental or leasing entity for purposes of compliance, unless the rental or lease agreement for the vehicle is for a period of one year or longer and the terms of the rental or lease agreement or other equally reliable evidence identifies the renting operator or lessee of the vehicle as the party responsible for compliance with State laws.

"Medium and Heavy-Duty Vehicle" refers to vehicles with a gross vehicle weight rating greater than 8500 lbs.

"School bus" means every on-road motor vehicle owned or operated by or for the transportation of persons regularly enrolled as students in grade 12 or below in connection with any activity of such entities as defined in Section 1-182 of the Illinois Motor Vehicle Act.

"Transit Bus" means a bus engaged in public transportation as defined by the Regional Transportation Authority Act.

(c) By no later than December 1, 2024, the Illinois Commerce Commission shall adopt reporting metrics for large medium and heavy-duty vehicle fleets operating in Illinois. The Commission shall establish rules and processes for the metrics and for eligible entities to report vehicle and fuel information to inform the transition to zero-emission vehicles. The rules must include significant public and stakeholder engagement before finalization. The Commission shall adhere to the following in creating the rules:

(1) Establish reporting metrics that prioritize public health and climate outcomes for disadvantaged communities. The final metrics shall provide useful and publicly available information to inform State incentives, utility planning, and infrastructure investments for the zero-emission vehicle transition for communities most burdened by vehicle traffic. At a minimum, required reporting metrics must include:

(A) Fleet Size.

(B) Vehicle Body Type.

(C) Fuel Type.

(D) Vehicle Home Base.

(2) Establish eligible entities as a fleet that operated a facility in Illinois in 2023 and met, at a minimum, any of the following criteria:

(A) had gross annual revenues greater than $20,000,000 in the United States for the 2023 tax year, including revenues from all subsidiaries, subdivisions, or branches, and had one or more vehicles under common ownership or control that were operated in Illinois in 2023;

(B) any fleet owner in the 2023 calendar year that had 5 or more vehicles under common ownership or control;

(C) any broker or entity that dispatched 5 or more vehicles into or throughout Illinois, in the 2023 calendar year;

(D) any State governmental agency, including all State and local municipalities that had one or more vehicles that were operated in Illinois in 2023; or

(E) any federal governmental agency that had one or more vehicles that were operated in Illinois in 2023.

(3) Establish reporting frequency of 2 years for all eligible entities. The results of the reporting are made publicly available in an easy to understand and anonymized form before the subsequent reporting requirement.

(4) Establish a specific program for drayage vehicles in this State, with a reporting frequency of one year.

(5) Provide opportunity for public comment and engagement before each reporting period begins.

(6) Establish penalties for non-compliance.

(7) Establish a sunset provision for reporting that is conditioned upon this State reaching 100% zero-emission vehicles.

Section 990. The State Mandates Act is amended by adding Section 8.48 as follows:

(30 ILCS 805/8.48 new)

Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 103rd General Assembly.

Section 99 7. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 999. Effective date. This Act takes effect upon becoming law.