House Bill 5374, introduced by Rep. Robyn Gabel and referred to the Rules Committee on March 27, would require the Illinois Environmental Protection Agency to evaluate both the environmental conditions of surrounding communities and the compliance track record of permit applicants before issuing certain air pollution construction permits. The requirements would apply to permits filed on or after January 1, 2026.
The part of the bill most likely to affect companies with facilities in Illinois is the compliance history review. Current state law gives the Illinois EPA the option to consider prior violations when reviewing permit applications. HB5374 would make that review mandatory for facilities located in designated environmental justice areas.
Under the bill, a permit could be denied if the applicant or any board member has a history of repeated violations of environmental laws, has been convicted of knowingly submitting false information under an environmental permit, or has demonstrated gross carelessness in operating air pollution sources. This represents a significant change from the current provision, which states that the Illinois EPA may consider adjudicated noncompliance, expanding what the agency must consider to include compliance commitment agreements and any other alleged noncompliance with state or local rules related to a release of a contaminant into the environment.
The bill establishes a detailed methodology for identifying which communities trigger enhanced review. Areas scoring in the top 25% statewide on a composite index combining environmental indicators — particulate matter, ozone, diesel emissions, proximity to leaking underground storage tanks — with socioeconomic factors including household income, unemployment, and limited English proficiency would qualify as areas of environmental justice concern.
For facilities located in those areas, the Illinois EPA would be required to evaluate whether proposed emissions can be voluntarily reduced, determine whether additional air quality modeling is needed, and may impose enhanced permit conditions including improved monitoring systems, odor control plans, and increased emissions testing frequency.
The bill would also establish an Office of Environmental Justice within the Illinois EPA to coordinate these reviews and manage public outreach in affected communities.
Illinois has been working toward this kind of framework for several years. A prior version of environmental justice air permitting legislation passed the Illinois House in 2022 but did not become law. A companion Senate bill, SB3772, recently passed the Senate Executive Committee and would similarly require the Illinois EPA to evaluate environmental justice factors when reviewing certain air pollution construction permit applications.
Other states have already moved in this direction. Colorado and Virginia have both built environmental justice reviews into their permitting processes, and the EPA has encouraged permitting authorities to conduct environmental justice analyses that include evaluation of the facility's compliance record alongside air monitoring and modeling data.
HB5374 remains in the Rules Committee. EHS and sustainability teams at companies with Illinois operations or expansion plans should monitor the bill's progress as the legislative session continues.
