HB3854 Summary

• Amends Illinois power procurement laws to allow long-term contracts up to 20 years for clean energy, with an appropriate portion of the portfolio allocated to such contracts.

• Requires analysis of demand-side and renewable energy initiatives to consider clean energy procurement, giving preference to clean energy products that can be procured at or below the price of non-clean energy after accounting for the social cost of carbon.

• Applies clean energy procurement requirements to products for delivery years beginning after May 31, 2025, ensuring consideration of environmental attributes including renewable energy credits, zero emission credits, and carbon mitigation credits.

• Requires alternative retail electric suppliers and non-local utilities serving eligible retail customers to purchase the same percentage of clean energy as was procured by the utility in that service area for the immediately prior delivery year.

• Establishes Illinois state policy to rapidly transition to 100% clean energy by 2050 and promotes long-term price stability through clean energy procurement.