103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5168

 

Introduced 2/9/2024, by Rep. Eva-Dina Delgado

 

SYNOPSIS AS INTRODUCED:
 
220 ILCS 5/16-115D

    Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities.


LRB103 38021 CES 68153 b

 

 

A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Utilities Act is amended by changing
5Section 16-115D as follows:
 
6    (220 ILCS 5/16-115D)
7    Sec. 16-115D. Renewable portfolio standard for alternative
8retail electric suppliers and electric utilities operating
9outside their service territories.
10    (a) An alternative retail electric supplier shall be
11responsible for procuring cost-effective renewable energy
12resources as required under item (5) of subsection (d) of
13Section 16-115 of this Act as outlined herein:
14        (1) The definition of renewable energy resources
15    contained in Section 1-10 of the Illinois Power Agency Act
16    applies to all renewable energy resources required to be
17    procured by alternative retail electric suppliers.
18        (2) Through May 31, 2017, the quantity of renewable
19    energy resources shall be measured as a percentage of the
20    actual amount of metered electricity (megawatt-hours)
21    delivered by the alternative retail electric supplier to
22    Illinois retail customers during the 12-month period June
23    1 through May 31, commencing June 1, 2009, and the

 

 

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1    comparable 12-month period in each year thereafter except
2    as provided in item (6) of this subsection (a).
3        (3) Through May 31, 2017, the quantity of renewable
4    energy resources shall be in amounts at least equal to the
5    annual percentages set forth in item (1) of subsection (c)
6    of Section 1-75 of the Illinois Power Agency Act. At least
7    60% of the renewable energy resources procured pursuant to
8    items (1) and (3) of subsection (b) of this Section shall
9    come from wind generation and, starting June 1, 2015, at
10    least 6% of the renewable energy resources procured
11    pursuant to items (1) and (3) of subsection (b) of this
12    Section shall come from solar photovoltaics. If, in any
13    given year, an alternative retail electric supplier does
14    not purchase at least these levels of renewable energy
15    resources, then the alternative retail electric supplier
16    shall make alternative compliance payments, as described
17    in subsection (d) of this Section.
18        (3.5) For the delivery year commencing June 1, 2017,
19    the quantity of renewable energy resources shall be at
20    least 13.0% of the uncovered amount of metered electricity
21    (megawatt-hours) delivered by the alternative retail
22    electric supplier to Illinois retail customers during the
23    delivery year, which uncovered amount shall equal 50% of
24    such metered electricity delivered by the alternative
25    retail electric supplier. For the delivery year commencing
26    June 1, 2018, the quantity of renewable energy resources

 

 

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1    shall be at least 14.5% of the uncovered amount of metered
2    electricity (megawatt-hours) delivered by the alternative
3    retail electric supplier to Illinois retail customers
4    during the delivery year, which uncovered amount shall
5    equal 25% of such metered electricity delivered by the
6    alternative retail electric supplier. At least 32% of the
7    renewable energy resources procured by the alternative
8    retail electric supplier for its uncovered portion under
9    this paragraph (3.5) shall come from wind or photovoltaic
10    generation. The renewable energy resources procured under
11    this paragraph (3.5) shall not include any resources from
12    a facility whose costs were being recovered through rates
13    regulated by any state or states on or after January 1,
14    2017.
15        (4) The quantity and source of renewable energy
16    resources shall be independently verified through the PJM
17    Environmental Information System Generation Attribute
18    Tracking System (PJM-GATS) or the Midwest Renewable Energy
19    Tracking System (M-RETS), which shall document the
20    location of generation, resource type, month, and year of
21    generation for all qualifying renewable energy resources
22    that an alternative retail electric supplier uses to
23    comply with this Section. No later than June 1, 2009, the
24    Illinois Power Agency shall provide PJM-GATS, M-RETS, and
25    alternative retail electric suppliers with all information
26    necessary to identify resources located in Illinois,

 

 

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1    within states that adjoin Illinois or within portions of
2    the PJM and MISO footprint in the United States that
3    qualify under the definition of renewable energy resources
4    in Section 1-10 of the Illinois Power Agency Act for
5    compliance with this Section 16-115D. Alternative retail
6    electric suppliers shall not be subject to the
7    requirements in item (3) of subsection (c) of Section 1-75
8    of the Illinois Power Agency Act.
9        (5) All renewable energy credits used to comply with
10    this Section shall be permanently retired.
11        (6) The required procurement of renewable energy
12    resources by an alternative retail electric supplier shall
13    apply to all metered electricity delivered to Illinois
14    retail customers by the alternative retail electric
15    supplier pursuant to contracts executed or extended after
16    March 15, 2009.
17    (b) Compliance obligations.
18        (1) Through May 31, 2017, an alternative retail
19    electric supplier shall comply with the renewable energy
20    portfolio standards by making an alternative compliance
21    payment, as described in subsection (d) of this Section,
22    to cover at least one-half of the alternative retail
23    electric supplier's compliance obligation for the period
24    prior to June 1, 2017.
25        (2) For the delivery years beginning June 1, 2017 and
26    June 1, 2018, an alternative retail electric supplier need

 

 

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1    not make any alternative compliance payment to meet any
2    portion of its compliance obligation, as set forth in
3    paragraph (3.5) of subsection (a) of this Section.
4        (3) An alternative retail electric supplier shall use
5    any one or combination of the following means to cover the
6    remainder of the alternative retail electric supplier's
7    compliance obligation, as set forth in paragraphs (3) and
8    (3.5) of subsection (a) of this Section, not covered by an
9    alternative compliance payment made under paragraphs (1)
10    and (2) of this subsection (b) of this Section:
11            (A) Generating electricity using renewable energy
12        resources identified pursuant to item (4) of
13        subsection (a) of this Section.
14            (B) Purchasing electricity generated using
15        renewable energy resources identified pursuant to item
16        (4) of subsection (a) of this Section through an
17        energy contract.
18            (C) Purchasing renewable energy credits from
19        renewable energy resources identified pursuant to item
20        (4) of subsection (a) of this Section.
21            (D) Making an alternative compliance payment as
22        described in subsection (d) of this Section.
23    (c) Use of renewable energy credits.
24        (1) Renewable energy credits that are not used by an
25    alternative retail electric supplier to comply with a
26    renewable portfolio standard in a compliance year may be

 

 

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1    banked and carried forward up to 2 12-month compliance
2    periods after the compliance period in which the credit
3    was generated for the purpose of complying with a
4    renewable portfolio standard in those 2 subsequent
5    compliance periods. For the 2009-2010 and 2010-2011
6    compliance periods, an alternative retail electric
7    supplier may use renewable credits generated after
8    December 31, 2008 and before June 1, 2009 to comply with
9    this Section.
10        (2) An alternative retail electric supplier is
11    responsible for demonstrating that a renewable energy
12    credit used to comply with a renewable portfolio standard
13    is derived from a renewable energy resource and that the
14    alternative retail electric supplier has not used, traded,
15    sold, or otherwise transferred the credit.
16        (3) The same renewable energy credit may be used by an
17    alternative retail electric supplier to comply with a
18    federal renewable portfolio standard and a renewable
19    portfolio standard established under this Act. An
20    alternative retail electric supplier that uses a renewable
21    energy credit to comply with a renewable portfolio
22    standard imposed by any other state may not use the same
23    credit to comply with a renewable portfolio standard
24    established under this Act.
25    (d) Alternative compliance payments.
26        (1) The Commission shall establish and post on its

 

 

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1    website, within 5 business days after entering an order
2    approving a procurement plan pursuant to Section 1-75 of
3    the Illinois Power Agency Act, maximum alternative
4    compliance payment rates, expressed on a per kilowatt-hour
5    basis, that will be applicable in the first compliance
6    period following the plan approval. A separate maximum
7    alternative compliance payment rate shall be established
8    for the service territory of each electric utility that is
9    subject to subsection (c) of Section 1-75 of the Illinois
10    Power Agency Act. Each maximum alternative compliance
11    payment rate shall be equal to the maximum allowable
12    annual estimated average net increase due to the costs of
13    the utility's purchase of renewable energy resources
14    included in the amounts paid by eligible retail customers
15    in connection with electric service, as described in item
16    (2) of subsection (c) of Section 1-75 of the Illinois
17    Power Agency Act for the compliance period, and as
18    established in the approved procurement plan. Following
19    each procurement event through which renewable energy
20    resources are purchased for one or more of these utilities
21    for the compliance period, the Commission shall establish
22    and post on its website estimates of the alternative
23    compliance payment rates, expressed on a per kilowatt-hour
24    basis, that shall apply for that compliance period.
25    Posting of the estimates shall occur no later than 10
26    business days following the procurement event, however,

 

 

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1    the Commission shall not be required to establish and post
2    such estimates more often than once per calendar month. By
3    July 1 of each year, the Commission shall establish and
4    post on its website the actual alternative compliance
5    payment rates for the preceding compliance year. For
6    compliance years beginning prior to June 1, 2014, each
7    alternative compliance payment rate shall be equal to the
8    total amount of dollars that the utility contracted to
9    spend on renewable resources, excepting the additional
10    incremental cost attributable to solar resources, for the
11    compliance period divided by the forecasted load of
12    eligible retail customers, at the customers' meters, as
13    previously established in the Commission-approved
14    procurement plan for that compliance year. For compliance
15    years commencing on or after June 1, 2014, each
16    alternative compliance payment rate shall be equal to the
17    total amount of dollars that the utility contracted to
18    spend on all renewable resources for the compliance period
19    divided by the forecasted load of retail customers for
20    which the utility is procuring renewable energy resources
21    in a given delivery year, at the customers' meters, as
22    previously established in the Commission-approved
23    procurement plan for that compliance year. The actual
24    alternative compliance payment rates may not exceed the
25    maximum alternative compliance payment rates established
26    for the compliance period. For purposes of this subsection

 

 

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1    (d), the term "eligible retail customers" has the same
2    meaning as found in Section 16-111.5 of this Act.
3        (2) In any given compliance year, an alternative
4    retail electric supplier may elect to use alternative
5    compliance payments to comply with all or a part of the
6    applicable renewable portfolio standard. In the event that
7    an alternative retail electric supplier elects to make
8    alternative compliance payments to comply with all or a
9    part of the applicable renewable portfolio standard, such
10    payments shall be made by September 1, 2010 for the period
11    of June 1, 2009 to May 1, 2010 and by September 1 of each
12    year thereafter for the subsequent compliance period, in
13    the manner and form as determined by the Commission. Any
14    election by an alternative retail electric supplier to use
15    alternative compliance payments is subject to review by
16    the Commission under subsection (e) of this Section.
17        (3) An alternative retail electric supplier's
18    alternative compliance payments shall be computed
19    separately for each electric utility's service territory
20    within which the alternative retail electric supplier
21    provided retail service during the compliance period,
22    provided that the electric utility was subject to
23    subsection (c) of Section 1-75 of the Illinois Power
24    Agency Act. For each service territory, the alternative
25    retail electric supplier's alternative compliance payment
26    shall be equal to (i) the actual alternative compliance

 

 

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1    payment rate established in item (1) of this subsection
2    (d), multiplied by (ii) the actual amount of metered
3    electricity delivered by the alternative retail electric
4    supplier to retail customers for which the supplier has a
5    compliance obligation within the service territory during
6    the compliance period, multiplied by (iii) the result of
7    one minus the ratios of the quantity of renewable energy
8    resources used by the alternative retail electric supplier
9    to comply with the requirements of this Section within the
10    service territory to the product of the percentage of
11    renewable energy resources required under item (3) or
12    (3.5) of subsection (a) of this Section and the actual
13    amount of metered electricity delivered by the alternative
14    retail electrical supplier to retail customers for which
15    the supplier has a compliance obligation within the
16    service territory during the compliance period.
17        (4) Through May 31, 2017, all alternative compliance
18    payments by alternative retail electric suppliers shall be
19    deposited in the Illinois Power Agency Renewable Energy
20    Resources Fund and used to purchase renewable energy
21    credits, in accordance with Section 1-56 of the Illinois
22    Power Agency Act. Beginning April 1, 2012 and by April 1 of
23    each year thereafter, the Illinois Power Agency shall
24    submit an annual report to the General Assembly, the
25    Commission, and alternative retail electric suppliers that
26    shall include, but not be limited to:

 

 

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1            (A) the total amount of alternative compliance
2        payments received in aggregate from alternative retail
3        electric suppliers by planning year for all previous
4        planning years in which the alternative compliance
5        payment was in effect;
6            (B) the amount of those payments utilized to
7        purchased renewable energy credits itemized by the
8        date of each procurement in which the payments were
9        utilized; and
10            (C) the unused and remaining balance in the Agency
11        Renewable Energy Resources Fund attributable to those
12        payments.
13        (4.5) Beginning with the delivery year commencing June
14    1, 2017, all alternative compliance payments by
15    alternative retail electric suppliers shall be remitted to
16    the applicable electric utility. To facilitate this
17    remittance, each electric utility shall file a tariff with
18    the Commission no later than 30 days following the
19    effective date of this amendatory Act of the 99th General
20    Assembly, which the Commission shall approve, after notice
21    and hearing, no later than 45 days after its filing. The
22    Illinois Power Agency shall use such payments to increase
23    the amount of renewable energy resources otherwise to be
24    procured under subsection (c) of Section 1-75 of the
25    Illinois Power Agency Act.
26        (5) The Commission, in consultation with the Illinois

 

 

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1    Power Agency, shall establish a process or proceeding to
2    consider the impact of a federal renewable portfolio
3    standard, if enacted, on the operation of the alternative
4    compliance mechanism, which shall include, but not be
5    limited to, developing, to the extent permitted by the
6    applicable federal statute, an appropriate methodology to
7    apportion renewable energy credits retired as a result of
8    alternative compliance payments made in accordance with
9    this Section. The Commission shall commence any such
10    process or proceeding within 35 days after enactment of a
11    federal renewable portfolio standard.
12    (e) Each alternative retail electric supplier shall, by
13September 1, 2010 and by September 1 of each year thereafter,
14prepare and submit to the Commission a report, in a format to
15be specified by the Commission, that provides information
16certifying compliance by the alternative retail electric
17supplier with this Section, including copies of all PJM-GATS
18and M-RETS reports, and documentation relating to banking,
19retiring renewable energy credits, and any other information
20that the Commission determines necessary to ensure compliance
21with this Section.
22    An alternative retail electric supplier may file
23commercially or financially sensitive information or trade
24secrets with the Commission as provided under the rules of the
25Commission. To be filed confidentially, the information shall
26be accompanied by an affidavit that sets forth both the

 

 

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1reasons for the confidentiality and a public synopsis of the
2information.
3    (f) The Commission may initiate a contested case to review
4allegations that the alternative retail electric supplier has
5violated this Section, including an order issued or rule
6promulgated under this Section. In any such proceeding, the
7alternative retail electric supplier shall have the burden of
8proof. If the Commission finds, after notice and hearing, that
9an alternative retail electric supplier has violated this
10Section, then the Commission shall issue an order requiring
11the alternative retail electric supplier to:
12        (1) immediately comply with this Section; and
13        (2) if the violation involves a failure to procure the
14    requisite quantity of renewable energy resources or pay
15    the applicable alternative compliance payment by the
16    annual deadline, the Commission shall require the
17    alternative retail electric supplier to double the
18    applicable alternative compliance payment that would
19    otherwise be required to bring the alternative retail
20    electric supplier into compliance with this Section.
21    If an alternative retail electric supplier fails to comply
22with the renewable energy resource portfolio requirement in
23this Section more than once in a 5-year period, then the
24Commission shall revoke the alternative electric supplier's
25certificate of service authority. The Commission shall not
26accept an application for a certificate of service authority

 

 

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1from an alternative retail electric supplier that has lost
2certification under this subsection (f), or any corporate
3affiliate thereof, for at least one year after the date of
4revocation.
5    (g) All of the provisions of this Section apply to
6electric utilities operating outside their service area except
7under item (2) of subsection (a) of this Section the quantity
8of renewable energy resources shall be measured as a
9percentage of the actual amount of electricity
10(megawatt-hours) supplied in the State outside of the
11utility's service territory during the 12-month period June 1
12through May 31, commencing June 1, 2009, and the comparable
1312-month period in each year thereafter except as provided in
14item (6) of subsection (a) of this Section.
15    If any such utility fails to procure the requisite
16quantity of renewable energy resources by the annual deadline,
17then the Commission shall require the utility to double the
18alternative compliance payment that would otherwise be
19required to bring the utility into compliance with this
20Section.
21    If any such utility fails to comply with the renewable
22energy resource portfolio requirement in this Section more
23than once in a 5-year period, then the Commission shall order
24the utility to cease all sales outside of the utility's
25service territory for a period of at least one year.
26    (h) The provisions of this Section and the provisions of

 

 

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1subsection (d) of Section 16-115 of this Act relating to
2procurement of renewable energy resources, and the provisions
3of paragraph (6) of subsection (c) of Section 1-75 of the
4Illinois Power Agency Act relating to the payments by retail
5customers of a utility for the purpose of recovering the
6utility's costs for procuring renewable energy credits, shall
7not apply to an alternative retail electric supplier, or the
8retail customers of an alternative retail electric supplier,
9that operates a combined heat and power system in this State or
10that has a corporate affiliate that operates such a combined
11heat and power system in this State that supplies electricity
12primarily to or for the benefit of: (i) facilities owned by the
13supplier, its subsidiary, or other corporate affiliate; (ii)
14facilities electrically integrated with the electrical system
15of facilities owned by the supplier, its subsidiary, or other
16corporate affiliate; or (iii) facilities that are adjacent to
17the site on which the combined heat and power system is
18located.
19    (i) The obligations of alternative retail electric
20suppliers and electric utilities operating outside their
21service territories to procure renewable energy resources,
22make alternative compliance payments, and file annual reports,
23and the obligations of the Commission to determine and post
24alternative compliance payment rates, shall terminate after
25May 31, 2019, provided that alternative retail electric
26suppliers and electric utilities operating outside their

 

 

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1service territories shall be obligated to make all alternative
2compliance payments that they were obligated to pay for
3periods through and including May 31, 2019, but were not paid
4as of that date. The Commission shall continue to enforce the
5payment of unpaid alternative compliance payments in
6accordance with subsections (f) and (g) of this Section. All
7alternative compliance payments made after May 31, 2016 shall
8be remitted to the applicable electric utility and used to
9purchase renewable energy credits, in accordance with Section
101-75 of the Illinois Power Agency Act.
11    This subsection (i) is intended to accommodate the
12transition to the procurement of renewable energy resources
13for all retail customers in the amounts specified under
14subsection (c) of Section 1-75 of the Illinois Power Agency
15Act and Section 16-111.5 of this Act, including but not
16limited to the transition to a single charge applicable to all
17retail customers to recover the costs of these resources. Each
18alternative retail electric supplier shall certify in its
19annual reports filed pursuant to subsection (e) of this
20Section after May 31, 2019, that its retail customers are not
21paying the costs of alternative compliance payments or
22renewable energy resources that the alternative retail
23electric supplier is not required to remit or purchase under
24this Section. The Commission shall have the authority to
25initiate an emergency rulemaking to adopt rules regarding such
26certification.

 

 

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1(Source: P.A. 99-906, eff. 6-1-17.)