IL HB3609

Authorizes gas, electric, and combination public utilities serving over 100,000 customers to develop pilot thermal energy networks—pipe loop systems that carry non-combustible fluids between buildings to provide heating, cooling, and hot water services without onsite fossil fuel combustion

Requires the Illinois Commerce Commission to initiate a proceeding within 6 months to support pilot thermal energy network development, with utilities filing proposals for 1-3 pilot projects within 10 months and Commission approval decisions within 18 months

Mandates that utilities proposing 3 pilot projects must include at least one in an economically disadvantaged community and at least one with an industrial heat application; priority given to projects replacing leak-prone natural gas infrastructure or buildings using electric resistance heat

Imposes labor requirements including prevailing wage, project labor agreements with local building trades councils, responsible bidder certification, and labor peace agreements with bona fide labor organizations for ongoing maintenance and operation

Directs the Commission to adopt rules within 4 years creating fair market access for thermal energy networks, potentially exempting small-scale networks from regulation, promoting utility worker training and transition, and encouraging third-party participation and competition