SB3935 Summary: 2050 Heat Decarbonization Standard

• Heat Decarbonization Standard: Requires gas utilities to reduce greenhouse gas emissions from fuel combustion by 20% by 2030, increasing 4 percentage points annually until reaching 100% by 2050, measured against each utility's 2020 baseline emissions on a weather-normalized basis.

• Compliance Options: Utilities must achieve emission reductions through customer measures (energy efficiency, electrification, fuel switching) and may purchase tradable clean heat credits from other utilities, with restrictions on credit usage (70-90% of obligation must come from own customers depending on time period).

• Clean Building Heating Law: Establishes emissions standards for new furnaces and water heaters, prohibiting sales of units exceeding nitrogen oxide limits starting January 1, 2025, with zero-emission standards beginning January 1, 2030.

• Gas Infrastructure Planning & Equity Requirements: Gas utilities must file biennial infrastructure plans aligned with decarbonization goals; at least 70% of gas main extensions must be cost-borne by new customers causing those costs; equity investment eligible communities must receive emission reductions at least 5 percentage points above proportional share.

• Supporting Programs: Establishes a Statewide Navigator Program to help residents access electrification services, energy efficiency programs, and federal/state incentives; requires 40% of navigator funding directed to equity investment eligible communities; creates Office of Decarbonization Planning within the Illinois Commerce Commission.