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Sen. Don Harmon
Filed: 5/6/2010
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LRB096 18131 JDS 41397 a |
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| AMENDMENT TO HOUSE BILL 6202
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| AMENDMENT NO. ______. Amend House Bill 6202, AS AMENDED, by |
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| replacing everything after the enacting clause with the |
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| following:
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| "Section 5. The Illinois Power Agency Act is amended by |
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| changing Sections 1-56 and 1-75 as follows: |
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| (20 ILCS 3855/1-56) |
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| Sec. 1-56. Illinois Power Agency Renewable Energy |
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| Resources Fund. |
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| (a) The Illinois Power Agency Renewable Energy Resources |
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| Fund is created as a special fund in the State treasury. |
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| (b) The Illinois Power Agency Renewable Energy Resources |
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| Fund shall be administered by the Agency to procure renewable |
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| energy resources. Prior to June 1, 2011, resources procured |
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| pursuant to this Section shall be procured from facilities |
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| located in Illinois, provided the resources are available from |
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| those facilities. If resources are not available in Illinois, |
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| then they shall be procured in states that adjoin Illinois. If |
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| resources are not available in Illinois or in states that |
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| adjoin Illinois, then they may be purchased elsewhere. |
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| Beginning June 1, 2011, resources procured pursuant to this |
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| Section shall be procured from facilities located in Illinois |
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| or states that adjoin Illinois. If resources are not available |
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| in Illinois or in states that adjoin Illinois, then they may be |
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| procured elsewhere. To the extent available, at least 75% of |
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| these renewable energy resources shall come from wind |
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| generation . Of the renewable energy resources procured |
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| pursuant to this Section at least the following specified |
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| percentages shall come from photovoltaics on the following |
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| schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by |
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| June 1, 2014; and 6% by June 1, 2015 and thereafter and, |
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| starting June 1, 2015, at least 6% of the renewable energy |
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| resources used to meet these standards shall come from solar |
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| photovoltaics . |
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| (c) The Agency shall procure renewable energy resources at |
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| least once each year in conjunction with a procurement event |
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| for electric utilities required to comply with Section 1-75 of |
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| the Act and shall, whenever possible, enter into long-term |
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| contracts. |
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| (d) The price paid to procure renewable energy credits |
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| using monies from the Illinois Power Agency Renewable Energy |
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| Resources Fund shall not exceed the winning bid prices paid for |
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| like resources procured for electric utilities required to |
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| comply with Section 1-75 of this Act. |
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| (e) All renewable energy credits procured using monies from |
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| the Illinois Power Agency Renewable Energy Resources Fund shall |
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| be permanently retired. |
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| (f) The procurement process described in this Section is |
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| exempt from the requirements of the Illinois Procurement Code, |
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| pursuant to Section 20-10 of that Code. |
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| (g) All disbursements from the Illinois Power Agency |
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| Renewable Energy Resources Fund shall be made only upon |
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| warrants of the Comptroller drawn upon the Treasurer as |
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| custodian of the Fund upon vouchers signed by the Director or |
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| by the person or persons designated by the Director for that |
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| purpose. The Comptroller is authorized to draw the warrant upon |
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| vouchers so signed. The Treasurer shall accept all warrants so |
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| signed and shall be released from liability for all payments |
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| made on those warrants. |
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| (h) The Illinois Power Agency Renewable Energy Resources |
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| Fund shall not be subject to sweeps, administrative charges, or |
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| chargebacks, including, but not limited to, those authorized |
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| under Section 8h of the State Finance Act, that would in any |
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| way result in the transfer of any funds from this Fund to any |
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| other fund of this State or in having any such funds utilized |
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| for any purpose other than the express purposes set forth in |
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| this Section.
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| (Source: P.A. 96-159, eff. 8-10-09.) |
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| (20 ILCS 3855/1-75) |
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| Sec. 1-75. Planning and Procurement Bureau. The Planning |
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| and Procurement Bureau has the following duties and |
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| responsibilities: |
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| (a) The Planning and Procurement Bureau shall each |
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| year, beginning in 2008, develop procurement plans and |
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| conduct competitive procurement processes in accordance |
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| with the requirements of Section 16-111.5 of the Public |
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| Utilities Act for the eligible retail customers of electric |
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| utilities that on December 31, 2005 provided electric |
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| service to at least 100,000 customers in Illinois. For the |
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| purposes of this Section, the term "eligible retail |
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| customers" has the same definition as found in Section |
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| 16-111.5(a) of the Public Utilities Act. |
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| (1) The Agency shall each year, beginning in 2008, |
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| as needed, issue a request for qualifications for |
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| experts or expert consulting firms to develop the |
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| procurement plans in accordance with Section 16-111.5 |
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| of the Public Utilities Act. In order to qualify an |
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| expert or expert consulting firm must have: |
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| (A) direct previous experience assembling |
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| large-scale power supply plans or portfolios for |
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| end-use customers; |
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| (B) an advanced degree in economics, |
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| mathematics, engineering, risk management, or a |
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| related area of study; |
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| (C) 10 years of experience in the electricity |
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| sector, including managing supply risk; |
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| (D) expertise in wholesale electricity market |
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| rules, including those established by the Federal |
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| Energy Regulatory Commission and regional |
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| transmission organizations; |
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| (E) expertise in credit protocols and |
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| familiarity with contract protocols; |
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| (F) adequate resources to perform and fulfill |
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| the required functions and responsibilities; and |
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| (G) the absence of a conflict of interest and |
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| inappropriate bias for or against potential |
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| bidders or the affected electric utilities. |
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| (2) The Agency shall each year, as needed, issue a |
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| request for qualifications for a procurement |
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| administrator to conduct the competitive procurement |
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| processes in accordance with Section 16-111.5 of the |
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| Public Utilities Act. In order to qualify an expert or |
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| expert consulting firm must have: |
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| (A) direct previous experience administering a |
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| large-scale competitive procurement process; |
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| (B) an advanced degree in economics, |
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| mathematics, engineering, or a related area of |
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| study; |
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| (C) 10 years of experience in the electricity |
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| sector, including risk management experience; |
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| (D) expertise in wholesale electricity market |
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| rules, including those established by the Federal |
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| Energy Regulatory Commission and regional |
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| transmission organizations; |
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| (E) expertise in credit and contract |
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| protocols; |
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| (F) adequate resources to perform and fulfill |
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| the required functions and responsibilities; and |
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| (G) the absence of a conflict of interest and |
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| inappropriate bias for or against potential |
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| bidders or the affected electric utilities. |
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| (3) The Agency shall provide affected utilities |
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| and other interested parties with the lists of |
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| qualified experts or expert consulting firms |
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| identified through the request for qualifications |
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| processes that are under consideration to develop the |
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| procurement plans and to serve as the procurement |
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| administrator. The Agency shall also provide each |
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| qualified expert's or expert consulting firm's |
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| response to the request for qualifications. All |
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| information provided under this subparagraph shall |
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| also be provided to the Commission. The Agency may |
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| provide by rule for fees associated with supplying the |
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| information to utilities and other interested parties. |
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| These parties shall, within 5 business days, notify the |
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| Agency in writing if they object to any experts or |
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| expert consulting firms on the lists. Objections shall |
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| be based on: |
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| (A) failure to satisfy qualification criteria; |
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| (B) identification of a conflict of interest; |
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| or |
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| (C) evidence of inappropriate bias for or |
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| against potential bidders or the affected |
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| utilities. |
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| The Agency shall remove experts or expert |
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| consulting firms from the lists within 10 days if there |
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| is a reasonable basis for an objection and provide the |
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| updated lists to the affected utilities and other |
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| interested parties. If the Agency fails to remove an |
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| expert or expert consulting firm from a list, an |
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| objecting party may seek review by the Commission |
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| within 5 days thereafter by filing a petition, and the |
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| Commission shall render a ruling on the petition within |
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| 10 days. There is no right of appeal of the |
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| Commission's ruling. |
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| (4) The Agency shall issue requests for proposals |
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| to the qualified experts or expert consulting firms to |
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| develop a procurement plan for the affected utilities |
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| and to serve as procurement administrator. |
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| (5) The Agency shall select an expert or expert |
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| consulting firm to develop procurement plans based on |
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| the proposals submitted and shall award one-year |
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| contracts to those selected with an option for the |
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| Agency for a one-year renewal. |
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| (6) The Agency shall select an expert or expert |
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| consulting firm, with approval of the Commission, to |
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| serve as procurement administrator based on the |
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| proposals submitted. If the Commission rejects, within |
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| 5 days, the Agency's selection, the Agency shall submit |
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| another recommendation within 3 days based on the |
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| proposals submitted. The Agency shall award a one-year |
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| contract to the expert or expert consulting firm so |
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| selected with Commission approval with an option for |
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| the Agency for a one-year renewal. |
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| (b) The experts or expert consulting firms retained by |
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| the Agency shall, as appropriate, prepare procurement |
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| plans, and conduct a competitive procurement process as |
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| prescribed in Section 16-111.5 of the Public Utilities Act, |
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| to ensure adequate, reliable, affordable, efficient, and |
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| environmentally sustainable electric service at the lowest |
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| total cost over time, taking into account any benefits of |
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| price stability, for eligible retail customers of electric |
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| utilities that on December 31, 2005 provided electric |
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| service to at least 100,000 customers in the State of |
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| Illinois. |
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| (c) Renewable portfolio standard. |
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| (1) The procurement plans shall include |
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| cost-effective renewable energy resources. A minimum |
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| percentage of each utility's total supply to serve the |
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| load of eligible retail customers, as defined in |
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| Section 16-111.5(a) of the Public Utilities Act, |
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| procured for each of the following years shall be |
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| generated from cost-effective renewable energy |
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| resources: at least 2% by June 1, 2008; at least 4% by |
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| June 1, 2009; at least 5% by June 1, 2010; at least 6% |
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| by June 1, 2011; at least 7% by June 1, 2012; at least |
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| 8% by June 1, 2013; at least 9% by June 1, 2014; at |
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| least 10% by June 1, 2015; and increasing by at least |
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| 1.5% each year thereafter to at least 25% by June 1, |
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| 2025. To the extent that it is available, at least 75% |
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| of the renewable energy resources used to meet these |
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| standards shall come from wind generation and, |
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| beginning on June 1, 2011 2015 , at least the following |
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| percentages 6% of the renewable energy resources used |
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| to meet these standards shall come from photovoltaics |
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| on the following schedule: 0.5% by June 1, 2012, 1.5% |
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| by June 1, 2013; 3% by June 1, 2014; and 6% by June 1, |
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| 2015 and thereafter . For purposes of this subsection |
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| (c), "cost-effective" means that the costs of |
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| procuring renewable energy resources do not cause the |
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| limit stated in paragraph (2) of this subsection (c) to |
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| be exceeded and do not exceed benchmarks based on |
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| market prices for renewable energy resources in the |
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| region, which shall be developed by the procurement |
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| administrator, in consultation with the Commission |
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| staff, Agency staff, and the procurement monitor and |
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| shall be subject to Commission review and approval. |
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| (2) For purposes of this subsection (c), the |
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| required procurement of cost-effective renewable |
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| energy resources for a particular year shall be |
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| measured as a percentage of the actual amount of |
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| electricity (megawatt-hours) supplied by the electric |
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| utility to eligible retail customers in the planning |
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| year ending immediately prior to the procurement. For |
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| purposes of this subsection (c), the amount paid per |
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| kilowatthour means the total amount paid for electric |
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| service expressed on a per kilowatthour basis. For |
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| purposes of this subsection (c), the total amount paid |
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| for electric service includes without limitation |
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| amounts paid for supply, transmission, distribution, |
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| surcharges, and add-on taxes. |
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| Notwithstanding the requirements of this |
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| subsection (c), the total of renewable energy |
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| resources procured pursuant to the procurement plan |
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| for any single year shall be reduced by an amount |
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| necessary to limit the annual estimated average net |
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| increase due to the costs of these resources included |
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| in the amounts paid by eligible retail customers in |
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| connection with electric service to: |
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| (A) in 2008, no more than 0.5% of the amount |
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| paid per kilowatthour by those customers during |
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| the year ending May 31, 2007; |
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| (B) in 2009, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2008 or 1% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; |
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| (C) in 2010, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2009 or |
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| 1.5% of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; |
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| (D) in 2011, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2010 or 2% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2007; and |
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| (E) thereafter, the amount of renewable energy |
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| resources procured pursuant to the procurement |
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| plan for any single year shall be reduced by an |
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| amount necessary to limit the estimated average |
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| net increase due to the cost of these resources |
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| included in the amounts paid by eligible retail |
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| customers in connection with electric service to |
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| no more than the greater of 2.015% of the amount |
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| paid per kilowatthour by those customers during |
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| the year ending May 31, 2007 or the incremental |
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| amount per kilowatthour paid for these resources |
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| in 2011. |
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| No later than June 30, 2011, the Commission shall |
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| review the limitation on the amount of renewable energy |
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| resources procured pursuant to this subsection (c) and |
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| report to the General Assembly its findings as to |
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| whether that limitation unduly constrains the |
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| procurement of cost-effective renewable energy |
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| resources. |
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| (3) Through June 1, 2011, renewable energy |
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| resources shall be counted for the purpose of meeting |
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| the renewable energy standards set forth in paragraph |
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| (1) of this subsection (c) only if they are generated |
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| from facilities located in the State, provided that |
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| cost-effective renewable energy resources are |
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| available from those facilities. If those |
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| cost-effective resources are not available in |
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| Illinois, they shall be procured in states that adjoin |
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| Illinois and may be counted towards compliance. If |
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| those cost-effective resources are not available in |
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| Illinois or in states that adjoin Illinois, they shall |
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| be purchased elsewhere and shall be counted towards |
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| compliance. After June 1, 2011, cost-effective |
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| renewable energy resources located in Illinois and in |
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| states that adjoin Illinois may be counted towards |
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| compliance with the standards set forth in paragraph |
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| (1) of this subsection (c). If those cost-effective |
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| resources are not available in Illinois or in states |
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| that adjoin Illinois, they shall be purchased |
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| elsewhere and shall be counted towards compliance. |
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| (4) The electric utility shall retire all |
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| renewable energy credits used to comply with the |
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| standard. |
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| (5) Beginning with the year commencing June 1, |
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| 2010, an electric utility subject to this subsection |
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| (c) shall apply the lesser of the maximum alternative |
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| compliance payment rate or the most recent estimated |
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| alternative compliance payment rate for its service |
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| territory for the corresponding compliance period, |
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| established pursuant to subsection (d) of Section |
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| 16-115D of the Public Utilities Act to its retail |
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| customers that take service pursuant to the electric |
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| utility's hourly pricing tariff or tariffs. The |
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| electric utility shall retain all amounts collected as |
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| a result of the application of the alternative |
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| compliance payment rate or rates to such customers, |
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| and, beginning in 2011, the utility shall include in |
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| the information provided under item (1) of subsection |
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| (d) of Section 16-111.5 of the Public Utilities Act the |
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| amounts collected under the alternative compliance |
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| payment rate or rates for the prior year ending May 31. |
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| Notwithstanding any limitation on the procurement of |
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| renewable energy resources imposed by item (2) of this |
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| subsection (c), the Agency shall increase its spending |
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| on the purchase of renewable energy resources to be |
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| procured by the electric utility for the next plan year |
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| by an amount equal to the amounts collected by the |
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| utility under the alternative compliance payment rate |
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| or rates in the prior year ending May 31. |
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| (d) Clean coal portfolio standard. |
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| (1) The procurement plans shall include electricity |
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| generated using clean coal. Each utility shall enter into |
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| one or more sourcing agreements with the initial clean coal |
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| facility, as provided in paragraph (3) of this subsection |
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| (d), covering electricity generated by the initial clean |
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| coal facility representing at least 5% of each utility's |
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| total supply to serve the load of eligible retail customers |
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| in 2015 and each year thereafter, as described in paragraph |
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| (3) of this subsection (d), subject to the limits specified |
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| in paragraph (2) of this subsection (d). It is the goal of |
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| the State that by January 1, 2025, 25% of the electricity |
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| used in the State shall be generated by cost-effective |
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| clean coal facilities. For purposes of this subsection (d), |
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| "cost-effective" means that the expenditures pursuant to |
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| such sourcing agreements do not cause the limit stated in |
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| paragraph (2) of this subsection (d) to be exceeded and do |
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| not exceed cost-based benchmarks, which shall be developed |
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| to assess all expenditures pursuant to such sourcing |
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| agreements covering electricity generated by clean coal |
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| facilities, other than the initial clean coal facility, by |
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| the procurement administrator, in consultation with the |
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| Commission staff, Agency staff, and the procurement |
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| monitor and shall be subject to Commission review and |
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| approval. |
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| (A) A utility party to a sourcing agreement shall |
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| immediately retire any emission credits that it |
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| receives in connection with the electricity covered by |
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| such agreement. |
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| (B) Utilities shall maintain adequate records |
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| documenting the purchases under the sourcing agreement |
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| to comply with this subsection (d) and shall file an |
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| accounting with the load forecast that must be filed |
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| with the Agency by July 15 of each year, in accordance |
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| with subsection (d) of Section 16-111.5 of the Public |
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| Utilities Act. |
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| (C) A utility shall be deemed to have complied with |
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| the clean coal portfolio standard specified in this |
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| subsection (d) if the utility enters into a sourcing |
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| agreement as required by this subsection (d). |
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| (2) For purposes of this subsection (d), the required |
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| execution of sourcing agreements with the initial clean |
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| coal facility for a particular year shall be measured as a |
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| percentage of the actual amount of electricity |
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| (megawatt-hours) supplied by the electric utility to |
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| eligible retail customers in the planning year ending |
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| immediately prior to the agreement's execution. For |
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| purposes of this subsection (d), the amount paid per |
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| kilowatthour means the total amount paid for electric |
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| service expressed on a per kilowatthour basis. For purposes |
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| of this subsection (d), the total amount paid for electric |
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| service includes without limitation amounts paid for |
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| supply, transmission, distribution, surcharges and add-on |
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| taxes. |
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| Notwithstanding the requirements of this subsection |
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| (d), the total amount paid under sourcing agreements with |
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| clean coal facilities pursuant to the procurement plan for |
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| any given year shall be reduced by an amount necessary to |
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| limit the annual estimated average net increase due to the |
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| costs of these resources included in the amounts paid by |
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| eligible retail customers in connection with electric |
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| service to: |
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| (A) in 2010, no more than 0.5% of the amount |
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| paid per kilowatthour by those customers during |
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| the year ending May 31, 2009; |
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| (B) in 2011, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2010 or 1% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2009; |
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| (C) in 2012, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2011 or |
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| 1.5% of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2009; |
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| (D) in 2013, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those |
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| customers during the year ending May 31, 2012 or 2% |
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| of the amount paid per kilowatthour by those |
11 |
| customers during the year ending May 31, 2009; and |
12 |
| (E) thereafter, the total amount paid under |
13 |
| sourcing agreements with clean coal facilities |
14 |
| pursuant to the procurement plan for any single |
15 |
| year shall be reduced by an amount necessary to |
16 |
| limit the estimated average net increase due to the |
17 |
| cost of these resources included in the amounts |
18 |
| paid by eligible retail customers in connection |
19 |
| with electric service to no more than the greater |
20 |
| of (i) 2.015% of the amount paid per kilowatthour |
21 |
| by those customers during the year ending May 31, |
22 |
| 2009 or (ii) the incremental amount per |
23 |
| kilowatthour paid for these resources in 2013. |
24 |
| These requirements may be altered only as provided |
25 |
| by statute.
No later than June 30, 2015, the |
26 |
| Commission shall review the limitation on the |
|
|
|
09600HB6202sam003 |
- 18 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| total amount paid under sourcing agreements, if |
2 |
| any, with clean coal facilities pursuant to this |
3 |
| subsection (d) and report to the General Assembly |
4 |
| its findings as to whether that limitation unduly |
5 |
| constrains the amount of electricity generated by |
6 |
| cost-effective clean coal facilities that is |
7 |
| covered by sourcing agreements. |
8 |
| (3) Initial clean coal facility. In order to promote |
9 |
| development of clean coal facilities in Illinois, each |
10 |
| electric utility subject to this Section shall execute a |
11 |
| sourcing agreement to source electricity from a proposed |
12 |
| clean coal facility in Illinois (the "initial clean coal |
13 |
| facility") that will have a nameplate capacity of at least |
14 |
| 500 MW when commercial operation commences, that has a |
15 |
| final Clean Air Act permit on the effective date of this |
16 |
| amendatory Act of the 95th General Assembly, and that will |
17 |
| meet the definition of clean coal facility in Section 1-10 |
18 |
| of this Act when commercial operation commences. The |
19 |
| sourcing agreements with this initial clean coal facility |
20 |
| shall be subject to both approval of the initial clean coal |
21 |
| facility by the General Assembly and satisfaction of the |
22 |
| requirements of paragraph (4) of this subsection (d) and |
23 |
| shall be executed within 90 days after any such approval by |
24 |
| the General Assembly. The Agency and the Commission shall |
25 |
| have authority to inspect all books and records associated |
26 |
| with the initial clean coal facility during the term of |
|
|
|
09600HB6202sam003 |
- 19 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| such a sourcing agreement. A utility's sourcing agreement |
2 |
| for electricity produced by the initial clean coal facility |
3 |
| shall include: |
4 |
| (A) a formula contractual price (the "contract |
5 |
| price") approved pursuant to paragraph (4) of this |
6 |
| subsection (d), which shall: |
7 |
| (i) be determined using a cost of service |
8 |
| methodology employing either a level or deferred |
9 |
| capital recovery component, based on a capital |
10 |
| structure consisting of 45% equity and 55% debt, |
11 |
| and a return on equity as may be approved by the |
12 |
| Federal Energy Regulatory Commission, which in any |
13 |
| case may not exceed the lower of 11.5% or the rate |
14 |
| of return approved by the General Assembly |
15 |
| pursuant to paragraph (4) of this subsection (d); |
16 |
| and |
17 |
| (ii) provide that all miscellaneous net |
18 |
| revenue, including but not limited to net revenue |
19 |
| from the sale of emission allowances, if any, |
20 |
| substitute natural gas, if any, grants or other |
21 |
| support provided by the State of Illinois or the |
22 |
| United States Government, firm transmission |
23 |
| rights, if any, by-products produced by the |
24 |
| facility, energy or capacity derived from the |
25 |
| facility and not covered by a sourcing agreement |
26 |
| pursuant to paragraph (3) of this subsection (d) or |
|
|
|
09600HB6202sam003 |
- 20 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| item (5) of subsection (d) of Section 16-115 of the |
2 |
| Public Utilities Act, whether generated from the |
3 |
| synthesis gas derived from coal, from SNG, or from |
4 |
| natural gas, shall be credited against the revenue |
5 |
| requirement for this initial clean coal facility; |
6 |
| (B) power purchase provisions, which shall: |
7 |
| (i) provide that the utility party to such |
8 |
| sourcing agreement shall pay the contract price |
9 |
| for electricity delivered under such sourcing |
10 |
| agreement; |
11 |
| (ii) require delivery of electricity to the |
12 |
| regional transmission organization market of the |
13 |
| utility that is party to such sourcing agreement; |
14 |
| (iii) require the utility party to such |
15 |
| sourcing agreement to buy from the initial clean |
16 |
| coal facility in each hour an amount of energy |
17 |
| equal to all clean coal energy made available from |
18 |
| the initial clean coal facility during such hour |
19 |
| times a fraction, the numerator of which is such |
20 |
| utility's retail market sales of electricity |
21 |
| (expressed in kilowatthours sold) in the State |
22 |
| during the prior calendar month and the |
23 |
| denominator of which is the total retail market |
24 |
| sales of electricity (expressed in kilowatthours |
25 |
| sold) in the State by utilities during such prior |
26 |
| month and the sales of electricity (expressed in |
|
|
|
09600HB6202sam003 |
- 21 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| kilowatthours sold) in the State by alternative |
2 |
| retail electric suppliers during such prior month |
3 |
| that are subject to the requirements of this |
4 |
| subsection (d) and paragraph (5) of subsection (d) |
5 |
| of Section 16-115 of the Public Utilities Act, |
6 |
| provided that the amount purchased by the utility |
7 |
| in any year will be limited by paragraph (2) of |
8 |
| this subsection (d); and |
9 |
| (iv) be considered pre-existing contracts in |
10 |
| such utility's procurement plans for eligible |
11 |
| retail customers; |
12 |
| (C) contract for differences provisions, which |
13 |
| shall: |
14 |
| (i) require the utility party to such sourcing |
15 |
| agreement to contract with the initial clean coal |
16 |
| facility in each hour with respect to an amount of |
17 |
| energy equal to all clean coal energy made |
18 |
| available from the initial clean coal facility |
19 |
| during such hour times a fraction, the numerator of |
20 |
| which is such utility's retail market sales of |
21 |
| electricity (expressed in kilowatthours sold) in |
22 |
| the utility's service territory in the State |
23 |
| during the prior calendar month and the |
24 |
| denominator of which is the total retail market |
25 |
| sales of electricity (expressed in kilowatthours |
26 |
| sold) in the State by utilities during such prior |
|
|
|
09600HB6202sam003 |
- 22 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| month and the sales of electricity (expressed in |
2 |
| kilowatthours sold) in the State by alternative |
3 |
| retail electric suppliers during such prior month |
4 |
| that are subject to the requirements of this |
5 |
| subsection (d) and paragraph (5) of subsection (d) |
6 |
| of Section 16-115 of the Public Utilities Act, |
7 |
| provided that the amount paid by the utility in any |
8 |
| year will be limited by paragraph (2) of this |
9 |
| subsection (d); |
10 |
| (ii) provide that the utility's payment |
11 |
| obligation in respect of the quantity of |
12 |
| electricity determined pursuant to the preceding |
13 |
| clause (i) shall be limited to an amount equal to |
14 |
| (1) the difference between the contract price |
15 |
| determined pursuant to subparagraph (A) of |
16 |
| paragraph (3) of this subsection (d) and the |
17 |
| day-ahead price for electricity delivered to the |
18 |
| regional transmission organization market of the |
19 |
| utility that is party to such sourcing agreement |
20 |
| (or any successor delivery point at which such |
21 |
| utility's supply obligations are financially |
22 |
| settled on an hourly basis) (the "reference |
23 |
| price") on the day preceding the day on which the |
24 |
| electricity is delivered to the initial clean coal |
25 |
| facility busbar, multiplied by (2) the quantity of |
26 |
| electricity determined pursuant to the preceding |
|
|
|
09600HB6202sam003 |
- 23 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| clause (i); and |
2 |
| (iii) not require the utility to take physical |
3 |
| delivery of the electricity produced by the |
4 |
| facility; |
5 |
| (D) general provisions, which shall: |
6 |
| (i) specify a term of no more than 30 years, |
7 |
| commencing on the commercial operation date of the |
8 |
| facility; |
9 |
| (ii) provide that utilities shall maintain |
10 |
| adequate records documenting purchases under the |
11 |
| sourcing agreements entered into to comply with |
12 |
| this subsection (d) and shall file an accounting |
13 |
| with the load forecast that must be filed with the |
14 |
| Agency by July 15 of each year, in accordance with |
15 |
| subsection (d) of Section 16-111.5 of the Public |
16 |
| Utilities Act. |
17 |
| (iii) provide that all costs associated with |
18 |
| the initial clean coal facility will be |
19 |
| periodically reported to the Federal Energy |
20 |
| Regulatory Commission and to purchasers in |
21 |
| accordance with applicable laws governing |
22 |
| cost-based wholesale power contracts; |
23 |
| (iv) permit the Illinois Power Agency to |
24 |
| assume ownership of the initial clean coal |
25 |
| facility, without monetary consideration and |
26 |
| otherwise on reasonable terms acceptable to the |
|
|
|
09600HB6202sam003 |
- 24 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| Agency, if the Agency so requests no less than 3 |
2 |
| years prior to the end of the stated contract term; |
3 |
| (v) require the owner of the initial clean coal |
4 |
| facility to provide documentation to the |
5 |
| Commission each year, starting in the facility's |
6 |
| first year of commercial operation, accurately |
7 |
| reporting the quantity of carbon emissions from |
8 |
| the facility that have been captured and |
9 |
| sequestered and report any quantities of carbon |
10 |
| released from the site or sites at which carbon |
11 |
| emissions were sequestered in prior years, based |
12 |
| on continuous monitoring of such sites. If, in any |
13 |
| year after the first year of commercial operation, |
14 |
| the owner of the facility fails to demonstrate that |
15 |
| the initial clean coal facility captured and |
16 |
| sequestered at least 50% of the total carbon |
17 |
| emissions that the facility would otherwise emit |
18 |
| or that sequestration of emissions from prior |
19 |
| years has failed, resulting in the release of |
20 |
| carbon dioxide into the atmosphere, the owner of |
21 |
| the facility must offset excess emissions. Any |
22 |
| such carbon offsets must be permanent, additional, |
23 |
| verifiable, real, located within the State of |
24 |
| Illinois, and legally and practicably enforceable. |
25 |
| The cost of such offsets for the facility that are |
26 |
| not recoverable shall not exceed $15 million in any |
|
|
|
09600HB6202sam003 |
- 25 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| given year. No costs of any such purchases of |
2 |
| carbon offsets may be recovered from a utility or |
3 |
| its customers. All carbon offsets purchased for |
4 |
| this purpose and any carbon emission credits |
5 |
| associated with sequestration of carbon from the |
6 |
| facility must be permanently retired. The initial |
7 |
| clean coal facility shall not forfeit its |
8 |
| designation as a clean coal facility if the |
9 |
| facility fails to fully comply with the applicable |
10 |
| carbon sequestration requirements in any given |
11 |
| year, provided the requisite offsets are |
12 |
| purchased. However, the Attorney General, on |
13 |
| behalf of the People of the State of Illinois, may |
14 |
| specifically enforce the facility's sequestration |
15 |
| requirement and the other terms of this contract |
16 |
| provision. Compliance with the sequestration |
17 |
| requirements and offset purchase requirements |
18 |
| specified in paragraph (3) of this subsection (d) |
19 |
| shall be reviewed annually by an independent |
20 |
| expert retained by the owner of the initial clean |
21 |
| coal facility, with the advance written approval |
22 |
| of the Attorney General. The Commission may, in the |
23 |
| course of the review specified in item (vii), |
24 |
| reduce the allowable return on equity for the |
25 |
| facility if the facility wilfully fails to comply |
26 |
| with the carbon capture and sequestration |
|
|
|
09600HB6202sam003 |
- 26 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| requirements set forth in this item (v); |
2 |
| (vi) include limits on, and accordingly |
3 |
| provide for modification of, the amount the |
4 |
| utility is required to source under the sourcing |
5 |
| agreement consistent with paragraph (2) of this |
6 |
| subsection (d); |
7 |
| (vii) require Commission review: (1) to |
8 |
| determine the justness, reasonableness, and |
9 |
| prudence of the inputs to the formula referenced in |
10 |
| subparagraphs (A)(i) through (A)(iii) of paragraph |
11 |
| (3) of this subsection (d), prior to an adjustment |
12 |
| in those inputs including, without limitation, the |
13 |
| capital structure and return on equity, fuel |
14 |
| costs, and other operations and maintenance costs |
15 |
| and (2) to approve the costs to be passed through |
16 |
| to customers under the sourcing agreement by which |
17 |
| the utility satisfies its statutory obligations. |
18 |
| Commission review shall occur no less than every 3 |
19 |
| years, regardless of whether any adjustments have |
20 |
| been proposed, and shall be completed within 9 |
21 |
| months; |
22 |
| (viii) limit the utility's obligation to such |
23 |
| amount as the utility is allowed to recover through |
24 |
| tariffs filed with the Commission, provided that |
25 |
| neither the clean coal facility nor the utility |
26 |
| waives any right to assert federal pre-emption or |
|
|
|
09600HB6202sam003 |
- 27 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| any other argument in response to a purported |
2 |
| disallowance of recovery costs; |
3 |
| (ix) limit the utility's or alternative retail |
4 |
| electric supplier's obligation to incur any |
5 |
| liability until such time as the facility is in |
6 |
| commercial operation and generating power and |
7 |
| energy and such power and energy is being delivered |
8 |
| to the facility busbar; |
9 |
| (x) provide that the owner or owners of the |
10 |
| initial clean coal facility, which is the |
11 |
| counterparty to such sourcing agreement, shall |
12 |
| have the right from time to time to elect whether |
13 |
| the obligations of the utility party thereto shall |
14 |
| be governed by the power purchase provisions or the |
15 |
| contract for differences provisions; |
16 |
| (xi) append documentation showing that the |
17 |
| formula rate and contract, insofar as they relate |
18 |
| to the power purchase provisions, have been |
19 |
| approved by the Federal Energy Regulatory |
20 |
| Commission pursuant to Section 205 of the Federal |
21 |
| Power Act; |
22 |
| (xii) provide that any changes to the terms of |
23 |
| the contract, insofar as such changes relate to the |
24 |
| power purchase provisions, are subject to review |
25 |
| under the public interest standard applied by the |
26 |
| Federal Energy Regulatory Commission pursuant to |
|
|
|
09600HB6202sam003 |
- 28 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| Sections 205 and 206 of the Federal Power Act; and |
2 |
| (xiii) conform with customary lender |
3 |
| requirements in power purchase agreements used as |
4 |
| the basis for financing non-utility generators. |
5 |
| (4) Effective date of sourcing agreements with the |
6 |
| initial clean coal facility. Any proposed sourcing |
7 |
| agreement with the initial clean coal facility shall not |
8 |
| become effective unless the following reports are prepared |
9 |
| and submitted and authorizations and approvals obtained: |
10 |
| (i) Facility cost report. The owner of the |
11 |
| initial clean coal facility shall submit to the |
12 |
| Commission, the Agency, and the General Assembly a |
13 |
| front-end engineering and design study, a facility |
14 |
| cost report, method of financing (including but |
15 |
| not limited to structure and associated costs), |
16 |
| and an operating and maintenance cost quote for the |
17 |
| facility (collectively "facility cost report"), |
18 |
| which shall be prepared in accordance with the |
19 |
| requirements of this paragraph (4) of subsection |
20 |
| (d) of this Section, and shall provide the |
21 |
| Commission and the Agency access to the work |
22 |
| papers, relied upon documents, and any other |
23 |
| backup documentation related to the facility cost |
24 |
| report. |
25 |
| (ii) Commission report. Within 6 months |
26 |
| following receipt of the facility cost report, the |
|
|
|
09600HB6202sam003 |
- 29 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| Commission, in consultation with the Agency, shall |
2 |
| submit a report to the General Assembly setting |
3 |
| forth its analysis of the facility cost report. |
4 |
| Such report shall include, but not be limited to, a |
5 |
| comparison of the costs associated with |
6 |
| electricity generated by the initial clean coal |
7 |
| facility to the costs associated with electricity |
8 |
| generated by other types of generation facilities, |
9 |
| an analysis of the rate impacts on residential and |
10 |
| small business customers over the life of the |
11 |
| sourcing agreements, and an analysis of the |
12 |
| likelihood that the initial clean coal facility |
13 |
| will commence commercial operation by and be |
14 |
| delivering power to the facility's busbar by 2016. |
15 |
| To assist in the preparation of its report, the |
16 |
| Commission, in consultation with the Agency, may |
17 |
| hire one or more experts or consultants, the costs |
18 |
| of which shall be paid for by the owner of the |
19 |
| initial clean coal facility. The Commission and |
20 |
| Agency may begin the process of selecting such |
21 |
| experts or consultants prior to receipt of the |
22 |
| facility cost report. |
23 |
| (iii) General Assembly approval. The proposed |
24 |
| sourcing agreements shall not take effect unless, |
25 |
| based on the facility cost report and the |
26 |
| Commission's report, the General Assembly enacts |
|
|
|
09600HB6202sam003 |
- 30 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| authorizing legislation approving (A) the |
2 |
| projected price, stated in cents per kilowatthour, |
3 |
| to be charged for electricity generated by the |
4 |
| initial clean coal facility, (B) the projected |
5 |
| impact on residential and small business |
6 |
| customers' bills over the life of the sourcing |
7 |
| agreements, and (C) the maximum allowable return |
8 |
| on equity for the project; and |
9 |
| (iv) Commission review. If the General |
10 |
| Assembly enacts authorizing legislation pursuant |
11 |
| to subparagraph (iii) approving a sourcing |
12 |
| agreement, the Commission shall, within 90 days of |
13 |
| such enactment, complete a review of such sourcing |
14 |
| agreement. During such time period, the Commission |
15 |
| shall implement any directive of the General |
16 |
| Assembly, resolve any disputes between the parties |
17 |
| to the sourcing agreement concerning the terms of |
18 |
| such agreement, approve the form of such |
19 |
| agreement, and issue an order finding that the |
20 |
| sourcing agreement is prudent and reasonable. |
21 |
| The facility cost report shall be prepared as follows: |
22 |
| (A) The facility cost report shall be prepared by |
23 |
| duly licensed engineering and construction firms |
24 |
| detailing the estimated capital costs payable to one or |
25 |
| more contractors or suppliers for the engineering, |
26 |
| procurement and construction of the components |
|
|
|
09600HB6202sam003 |
- 31 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| comprising the initial clean coal facility and the |
2 |
| estimated costs of operation and maintenance of the |
3 |
| facility. The facility cost report shall include: |
4 |
| (i) an estimate of the capital cost of the core |
5 |
| plant based on one or more front end engineering |
6 |
| and design studies for the gasification island and |
7 |
| related facilities. The core plant shall include |
8 |
| all civil, structural, mechanical, electrical, |
9 |
| control, and safety systems. |
10 |
| (ii) an estimate of the capital cost of the |
11 |
| balance of the plant, including any capital costs |
12 |
| associated with sequestration of carbon dioxide |
13 |
| emissions and all interconnects and interfaces |
14 |
| required to operate the facility, such as |
15 |
| transmission of electricity, construction or |
16 |
| backfeed power supply, pipelines to transport |
17 |
| substitute natural gas or carbon dioxide, potable |
18 |
| water supply, natural gas supply, water supply, |
19 |
| water discharge, landfill, access roads, and coal |
20 |
| delivery. |
21 |
| The quoted construction costs shall be expressed |
22 |
| in nominal dollars as of the date that the quote is |
23 |
| prepared and shall include (1) capitalized financing |
24 |
| costs during construction,
(2) taxes, insurance, and |
25 |
| other owner's costs, and (3) an assumed escalation in |
26 |
| materials and labor beyond the date as of which the |
|
|
|
09600HB6202sam003 |
- 32 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| construction cost quote is expressed. |
2 |
| (B) The front end engineering and design study for |
3 |
| the gasification island and the cost study for the |
4 |
| balance of plant shall include sufficient design work |
5 |
| to permit quantification of major categories of |
6 |
| materials, commodities and labor hours, and receipt of |
7 |
| quotes from vendors of major equipment required to |
8 |
| construct and operate the clean coal facility. |
9 |
| (C) The facility cost report shall also include an |
10 |
| operating and maintenance cost quote that will provide |
11 |
| the estimated cost of delivered fuel, personnel, |
12 |
| maintenance contracts, chemicals, catalysts, |
13 |
| consumables, spares, and other fixed and variable |
14 |
| operations and maintenance costs. |
15 |
| (a) The delivered fuel cost estimate will be |
16 |
| provided by a recognized third party expert or |
17 |
| experts in the fuel and transportation industries. |
18 |
| (b) The balance of the operating and |
19 |
| maintenance cost quote, excluding delivered fuel |
20 |
| costs will be developed based on the inputs |
21 |
| provided by duly licensed engineering and |
22 |
| construction firms performing the construction |
23 |
| cost quote, potential vendors under long-term |
24 |
| service agreements and plant operating agreements, |
25 |
| or recognized third party plant operator or |
26 |
| operators. |
|
|
|
09600HB6202sam003 |
- 33 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| The operating and maintenance cost quote |
2 |
| (including the cost of the front end engineering |
3 |
| and design study) shall be expressed in nominal |
4 |
| dollars as of the date that the quote is prepared |
5 |
| and shall include (1) taxes, insurance, and other |
6 |
| owner's costs, and (2) an assumed escalation in |
7 |
| materials and labor beyond the date as of which the |
8 |
| operating and maintenance cost quote is expressed. |
9 |
| (D) The facility cost report shall also include (i) |
10 |
| an analysis of the initial clean coal facility's |
11 |
| ability to deliver power and energy into the applicable |
12 |
| regional transmission organization markets and (ii) an |
13 |
| analysis of the expected capacity factor for the |
14 |
| initial clean coal facility. |
15 |
| (E) Amounts paid to third parties unrelated to the |
16 |
| owner or owners of the initial clean coal facility to |
17 |
| prepare the core plant construction cost quote, |
18 |
| including the front end engineering and design study, |
19 |
| and the operating and maintenance cost quote will be |
20 |
| reimbursed through Coal Development Bonds. |
21 |
| (5) Re-powering and retrofitting coal-fired power |
22 |
| plants previously owned by Illinois utilities to qualify as |
23 |
| clean coal facilities. During the 2009 procurement |
24 |
| planning process and thereafter, the Agency and the |
25 |
| Commission shall consider sourcing agreements covering |
26 |
| electricity generated by power plants that were previously |
|
|
|
09600HB6202sam003 |
- 34 - |
LRB096 18131 JDS 41397 a |
|
|
1 |
| owned by Illinois utilities and that have been or will be |
2 |
| converted into clean coal facilities, as defined by Section |
3 |
| 1-10 of this Act. Pursuant to such procurement planning |
4 |
| process, the owners of such facilities may propose to the |
5 |
| Agency sourcing agreements with utilities and alternative |
6 |
| retail electric suppliers required to comply with |
7 |
| subsection (d) of this Section and item (5) of subsection |
8 |
| (d) of Section 16-115 of the Public Utilities Act, covering |
9 |
| electricity generated by such facilities. In the case of |
10 |
| sourcing agreements that are power purchase agreements, |
11 |
| the contract price for electricity sales shall be |
12 |
| established on a cost of service basis. In the case of |
13 |
| sourcing agreements that are contracts for differences, |
14 |
| the contract price from which the reference price is |
15 |
| subtracted shall be established on a cost of service basis. |
16 |
| The Agency and the Commission may approve any such utility |
17 |
| sourcing agreements that do not exceed cost-based |
18 |
| benchmarks developed by the procurement administrator, in |
19 |
| consultation with the Commission staff, Agency staff and |
20 |
| the procurement monitor, subject to Commission review and |
21 |
| approval. The Commission shall have authority to inspect |
22 |
| all books and records associated with these clean coal |
23 |
| facilities during the term of any such contract. |
24 |
| (6) Costs incurred under this subsection (d) or |
25 |
| pursuant to a contract entered into under this subsection |
26 |
| (d) shall be deemed prudently incurred and reasonable in |
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| amount and the electric utility shall be entitled to full |
2 |
| cost recovery pursuant to the tariffs filed with the |
3 |
| Commission. |
4 |
| (e) The draft procurement plans are subject to public |
5 |
| comment, as required by Section 16-111.5 of the Public |
6 |
| Utilities Act. |
7 |
| (f) The Agency shall submit the final procurement plan |
8 |
| to the Commission. The Agency shall revise a procurement |
9 |
| plan if the Commission determines that it does not meet the |
10 |
| standards set forth in Section 16-111.5 of the Public |
11 |
| Utilities Act. |
12 |
| (g) The Agency shall assess fees to each affected |
13 |
| utility to recover the costs incurred in preparation of the |
14 |
| annual procurement plan for the utility. |
15 |
| (h) The Agency shall assess fees to each bidder to |
16 |
| recover the costs incurred in connection with a competitive |
17 |
| procurement process.
|
18 |
| (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; |
19 |
| 96-159, eff. 8-10-09.) |
20 |
| Section 10. The Public Utilities Act is amended by changing |
21 |
| Section 16-115D as follows: |
22 |
| (220 ILCS 5/16-115D) |
23 |
| Sec. 16-115D. Renewable portfolio standard for alternative |
24 |
| retail electric suppliers and electric utilities operating |
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| outside their service territories. |
2 |
| (a) An alternative retail electric supplier shall be |
3 |
| responsible for procuring cost-effective renewable energy |
4 |
| resources as required under item (5) of subsection (d) of |
5 |
| Section 16-115 of this Act as outlined herein: |
6 |
| (1) The definition of renewable energy resources |
7 |
| contained in Section 1-10 of the Illinois Power Agency Act |
8 |
| applies to all renewable energy resources required to be |
9 |
| procured by alternative retail electric suppliers. |
10 |
| (2) The quantity of renewable energy resources shall be |
11 |
| measured as a percentage of the actual amount of metered |
12 |
| electricity (megawatt-hours) delivered by the alternative |
13 |
| retail electric supplier to Illinois retail customers |
14 |
| during the 12-month period June 1 through May 31, |
15 |
| commencing June 1, 2009, and the comparable 12-month period |
16 |
| in each year thereafter except as provided in item (6) of |
17 |
| this subsection (a). |
18 |
| (3) The quantity of renewable energy resources shall be |
19 |
| in amounts at least equal to the annual percentages set |
20 |
| forth in item (1) of subsection (c) of Section 1-75 of the |
21 |
| Illinois Power Agency Act. At least 60% of the renewable |
22 |
| energy resources procured pursuant to items (1) through (3) |
23 |
| of subsection (b) of this Section shall come from wind |
24 |
| generation and, starting June 1, 2015, at least 6% of the |
25 |
| renewable energy resources procured pursuant to items (1) |
26 |
| through (3) of subsection (b) of this Section shall come |
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| from solar photovoltaics. If, in any given year, an |
2 |
| alternative retail electric supplier does not purchase at |
3 |
| least these levels of renewable energy resources, then the |
4 |
| alternative retail electric supplier shall make |
5 |
| alternative compliance payments, as described in |
6 |
| subsection (d) of this Section. |
7 |
| (4) The quantity and source of renewable energy |
8 |
| resources shall be independently verified through the PJM |
9 |
| Environmental Information System Generation Attribute |
10 |
| Tracking System (PJM-GATS) or the Midwest Renewable Energy |
11 |
| Tracking System (M-RETS), which shall document the |
12 |
| location of generation, resource type, month, and year of |
13 |
| generation for all qualifying renewable energy resources |
14 |
| that an alternative retail electric supplier uses to comply |
15 |
| with this Section. No later than June 1, 2009, the Illinois |
16 |
| Power Agency shall provide PJM-GATS, M-RETS, and |
17 |
| alternative retail electric suppliers with all information |
18 |
| necessary to identify resources located in Illinois, |
19 |
| within states that adjoin Illinois or within portions of |
20 |
| the PJM and MISO footprint in the United States that |
21 |
| qualify under the definition of renewable energy resources |
22 |
| in Section 1-10 of the Illinois Power Agency Act for |
23 |
| compliance with this Section 16-115D. Alternative retail |
24 |
| electric suppliers shall not be subject to the requirements |
25 |
| in item (3) of subsection (c) of Section 1-75 of the |
26 |
| Illinois Power Agency Act. |
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09600HB6202sam003 |
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| (5) All renewable energy credits used to comply with |
2 |
| this Section shall be permanently retired. |
3 |
| (6) The required procurement of renewable energy |
4 |
| resources by an alternative retail electric supplier shall |
5 |
| apply to all metered electricity delivered to Illinois |
6 |
| retail customers by the alternative retail electric |
7 |
| supplier pursuant to contracts executed or extended after |
8 |
| March 15, 2009. |
9 |
| (b) An alternative retail electric supplier shall comply |
10 |
| with the renewable energy portfolio standards by making an |
11 |
| alternative compliance payment, as described in subsection (d) |
12 |
| of this Section, to cover at least one-half of the alternative |
13 |
| retail electric supplier's compliance obligation and any one or |
14 |
| combination of the following means to cover the remainder of |
15 |
| the alternative retail electric supplier's compliance |
16 |
| obligation: |
17 |
| (1) Generating electricity using renewable energy |
18 |
| resources identified pursuant to item (4) of subsection (a) |
19 |
| of this Section. |
20 |
| (2) Purchasing electricity generated using renewable |
21 |
| energy resources identified pursuant to item (4) of |
22 |
| subsection (a) of this Section through an energy contract. |
23 |
| (3) Purchasing renewable energy credits from renewable |
24 |
| energy resources identified pursuant to item (4) of |
25 |
| subsection (a) of this Section. |
26 |
| (4) Making an alternative compliance payment as |
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09600HB6202sam003 |
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| described in subsection (d) of this Section. |
2 |
| (c) Use of renewable energy credits. |
3 |
| (1) Renewable energy credits that are not used by an |
4 |
| alternative retail electric supplier to comply with a |
5 |
| renewable portfolio standard in a compliance year may be |
6 |
| banked and carried forward up to 2 12-month compliance |
7 |
| periods after the compliance period in which the credit was |
8 |
| generated for the purpose of complying with a renewable |
9 |
| portfolio standard in those 2 subsequent compliance |
10 |
| periods. For the 2009-2010 and 2010-2011 compliance |
11 |
| periods, an alternative retail electric supplier may use |
12 |
| renewable credits generated after December 31, 2008 and |
13 |
| before June 1, 2009 to comply with this Section. |
14 |
| (2) An alternative retail electric supplier is |
15 |
| responsible for demonstrating that a renewable energy |
16 |
| credit used to comply with a renewable portfolio standard |
17 |
| is derived from a renewable energy resource and that the |
18 |
| alternative retail electric supplier has not used, traded, |
19 |
| sold, or otherwise transferred the credit. |
20 |
| (3) The same renewable energy credit may be used by an |
21 |
| alternative retail electric supplier to comply with a |
22 |
| federal renewable portfolio standard and a renewable |
23 |
| portfolio standard established under this Act. An |
24 |
| alternative retail electric supplier that uses a renewable |
25 |
| energy credit to comply with a renewable portfolio standard |
26 |
| imposed by any other state may not use the same credit to |
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09600HB6202sam003 |
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LRB096 18131 JDS 41397 a |
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| comply with a renewable portfolio standard established |
2 |
| under this Act. |
3 |
| (d) Alternative compliance payments. |
4 |
| (1) The Commission shall establish and post on its |
5 |
| website, within 5 business days after entering an order |
6 |
| approving a procurement plan pursuant to Section 1-75 of |
7 |
| the Illinois Power Agency Act, maximum alternative |
8 |
| compliance payment rates, expressed on a per kilowatt-hour |
9 |
| basis, that will be applicable in the first compliance |
10 |
| period following the plan approval. A separate maximum |
11 |
| alternative compliance payment rate shall be established |
12 |
| for the service territory of each electric utility that is |
13 |
| subject to subsection (c) of Section 1-75 of the Illinois |
14 |
| Power Agency Act. Each maximum alternative compliance |
15 |
| payment rate shall be equal to the maximum allowable annual |
16 |
| estimated average net increase due to the costs of the |
17 |
| utility's purchase of renewable energy resources included |
18 |
| in the amounts paid by eligible retail customers in |
19 |
| connection with electric service, as described in item (2) |
20 |
| of subsection (c) of Section 1-75 of the Illinois Power |
21 |
| Agency Act for the compliance period, and as established in |
22 |
| the approved procurement plan. Following each procurement |
23 |
| event through which renewable energy resources are |
24 |
| purchased for one or more of these utilities for the |
25 |
| compliance period, the Commission shall establish and post |
26 |
| on its website estimates of the alternative compliance |
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09600HB6202sam003 |
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| payment rates, expressed on a per kilowatt-hour basis, that |
2 |
| shall apply for that compliance period. Posting of the |
3 |
| estimates shall occur no later than 10 business days |
4 |
| following the procurement event, however, the Commission |
5 |
| shall not be required to establish and post such estimates |
6 |
| more often than once per calendar month. By July 1 of each |
7 |
| year, the Commission shall establish and post on its |
8 |
| website the actual alternative compliance payment rates |
9 |
| for the preceding compliance year. For compliance years |
10 |
| beginning prior to June 1, 2014, each Each alternative |
11 |
| compliance payment rate shall be equal to the total amount |
12 |
| of dollars that for which the utility contracted to spend |
13 |
| on renewable resources , excepting the additional |
14 |
| incremental cost attributable to solar resources, for the |
15 |
| compliance period divided by the forecasted load of |
16 |
| eligible retail customers, at the customers' meters, as |
17 |
| previously established in the Commission-approved |
18 |
| procurement plan for that compliance year. For compliance |
19 |
| years commencing on or after June 1, 2014, each alternative |
20 |
| compliance payment rate shall be equal to the total amount |
21 |
| of dollars that the utility contracted to spend on all |
22 |
| renewable resources for the compliance period divided by |
23 |
| the forecasted load of eligible retail customers, at the |
24 |
| customers' meters, as previously established in the |
25 |
| Commission-approved procurement plan for that compliance |
26 |
| year. The actual alternative compliance payment rates may |
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09600HB6202sam003 |
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| not exceed the maximum alternative compliance payment |
2 |
| rates established for the compliance period. For purposes |
3 |
| of this subsection (d), the term "eligible retail |
4 |
| customers" has the same meaning as found in Section |
5 |
| 16-111.5 of this Act. |
6 |
| (2) In any given compliance year, an alternative retail |
7 |
| electric supplier may elect to use alternative compliance |
8 |
| payments to comply with all or a part of the applicable |
9 |
| renewable portfolio standard. In the event that an |
10 |
| alternative retail electric supplier elects to make |
11 |
| alternative compliance payments to comply with all or a |
12 |
| part of the applicable renewable portfolio standard, such |
13 |
| payments shall be made by September 1, 2010 for the period |
14 |
| of June 1, 2009 to May 1, 2010 and by September 1 of each |
15 |
| year thereafter for the subsequent compliance period, in |
16 |
| the manner and form as determined by the Commission. Any |
17 |
| election by an alternative retail electric supplier to use |
18 |
| alternative compliance payments is subject to review by the |
19 |
| Commission under subsection (e) of this Section. |
20 |
| (3) An alternative retail electric supplier's |
21 |
| alternative compliance payments shall be computed |
22 |
| separately for each electric utility's service territory |
23 |
| within which the alternative retail electric supplier |
24 |
| provided retail service during the compliance period, |
25 |
| provided that the electric utility was subject to |
26 |
| subsection (c) of Section 1-75 of the Illinois Power Agency |
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09600HB6202sam003 |
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LRB096 18131 JDS 41397 a |
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| Act. For each service territory, the alternative retail |
2 |
| electric supplier's alternative compliance payment shall |
3 |
| be equal to (i) the actual alternative compliance payment |
4 |
| rate established in item (1) of this subsection (d), |
5 |
| multiplied by (ii) the actual amount of metered electricity |
6 |
| delivered by the alternative retail electric supplier to |
7 |
| retail customers within the service territory during the |
8 |
| compliance period, multiplied by (iii) the result of one |
9 |
| minus the ratios of the quantity of renewable energy |
10 |
| resources used by the alternative retail electric supplier |
11 |
| to comply with the requirements of this Section within the |
12 |
| service territory to the product of the percentage of |
13 |
| renewable energy resources required under item (3) of |
14 |
| subsection (a) of this Section and the actual amount of |
15 |
| metered electricity delivered by the alternative retail |
16 |
| electric supplier to retail customers within the service |
17 |
| territory during the compliance period. |
18 |
| (4) All alternative compliance payments by alternative |
19 |
| retail electric suppliers shall be deposited in the |
20 |
| Illinois Power Agency Renewable Energy Resources Fund and |
21 |
| used to purchase renewable energy credits, in accordance |
22 |
| with Section 1-56 of the Illinois Power Agency Act. |
23 |
| (5) The Commission, in consultation with the Illinois |
24 |
| Power Agency, shall establish a process or proceeding to |
25 |
| consider the impact of a federal renewable portfolio |
26 |
| standard, if enacted, on the operation of the alternative |
|
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09600HB6202sam003 |
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LRB096 18131 JDS 41397 a |
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| compliance mechanism, which shall include, but not be |
2 |
| limited to, developing, to the extent permitted by the |
3 |
| applicable federal statute, an appropriate methodology to |
4 |
| apportion renewable energy credits retired as a result of |
5 |
| alternative compliance payments made in accordance with |
6 |
| this Section. The Commission shall commence any such |
7 |
| process or proceeding within 35 days after enactment of a |
8 |
| federal renewable portfolio standard. |
9 |
| (e) Each alternative retail electric supplier shall, by |
10 |
| September 1, 2010 and by September 1 of each year thereafter, |
11 |
| prepare and submit to the Commission a report, in a format to |
12 |
| be specified by the Commission on or before December 31, 2009, |
13 |
| that provides information certifying compliance by the |
14 |
| alternative retail electric supplier with this Section, |
15 |
| including copies of all PJM-GATS and M-RETS reports, and |
16 |
| documentation relating to banking, retiring renewable energy |
17 |
| credits, and any other information that the Commission |
18 |
| determines necessary to ensure compliance with this Section. An |
19 |
| alternative retail electric supplier may file commercially or |
20 |
| financially sensitive information or trade secrets with the |
21 |
| Commission as provided under the rules of the Commission. To be |
22 |
| filed confidentially, the information shall be accompanied by |
23 |
| an affidavit that sets forth both the reasons for the |
24 |
| confidentiality and a public synopsis of the information. |
25 |
| (f) The Commission may initiate a contested case to review |
26 |
| allegations that the alternative retail electric supplier has |
|
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09600HB6202sam003 |
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| violated this Section, including an order issued or rule |
2 |
| promulgated under this Section. In any such proceeding, the |
3 |
| alternative retail electric supplier shall have the burden of |
4 |
| proof. If the Commission finds, after notice and hearing, that |
5 |
| an alternative retail electric supplier has violated this |
6 |
| Section, then the Commission shall issue an order requiring the |
7 |
| alternative retail electric supplier to: |
8 |
| (1) immediately comply with this Section; and |
9 |
| (2) if the violation involves a failure to procure the |
10 |
| requisite quantity of renewable energy resources or pay the |
11 |
| applicable alternative compliance payment by the annual |
12 |
| deadline, the Commission shall require the alternative |
13 |
| retail electric supplier to double the applicable |
14 |
| alternative compliance payment that would otherwise be |
15 |
| required to bring the alternative retail electric supplier |
16 |
| into compliance with this Section. |
17 |
| If an alternative retail electric supplier fails to comply |
18 |
| with the renewable energy resource portfolio requirement in |
19 |
| this Section more than once in a 5-year period, then the |
20 |
| Commission shall revoke the alternative electric supplier's |
21 |
| certificate of service authority. The Commission shall not |
22 |
| accept an application for a certificate of service authority |
23 |
| from an alternative retail electric supplier that has lost |
24 |
| certification under this subsection (f), or any corporate |
25 |
| affiliate thereof, for at least one year after the date of |
26 |
| revocation. |
|
|
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09600HB6202sam003 |
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LRB096 18131 JDS 41397 a |
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| (g) All of the provisions of this Section apply to electric |
2 |
| utilities operating outside their service area except under |
3 |
| item (2) of subsection (a) of this Section the quantity of |
4 |
| renewable energy resources shall be measured as a percentage of |
5 |
| the actual amount of electricity (megawatt-hours) supplied in |
6 |
| the State outside of the utility's service territory during the |
7 |
| 12-month period June 1 through May 31, commencing June 1, 2009, |
8 |
| and the comparable 12-month period in each year thereafter |
9 |
| except as provided in item (6) of subsection (a) of this |
10 |
| Section. |
11 |
| If any such utility fails to procure the requisite quantity |
12 |
| of renewable energy resources by the annual deadline, then the |
13 |
| Commission shall require the utility to double the alternative |
14 |
| compliance payment that would otherwise be required to bring |
15 |
| the utility into compliance with this Section. |
16 |
| If any such utility fails to comply with the renewable |
17 |
| energy resource portfolio requirement in this Section more than |
18 |
| once in a 5-year period, then the Commission shall order the |
19 |
| utility to cease all sales outside of the utility's service |
20 |
| territory for a period of at least one year. |
21 |
| (h) The provisions of this Section and the provisions of |
22 |
| subsection (d) of Section 16-115 of this Act relating to |
23 |
| procurement of renewable energy resources shall not apply to an |
24 |
| alternative retail electric supplier that operates a combined |
25 |
| heat and power system in this State or that has a corporate |
26 |
| affiliate that operates such a combined heat and power system |
|
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09600HB6202sam003 |
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LRB096 18131 JDS 41397 a |
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| in this State that supplies electricity primarily to or for the |
2 |
| benefit of: (i) facilities owned by the supplier, its |
3 |
| subsidiary, or other corporate affiliate; (ii) facilities |
4 |
| electrically integrated with the electrical system of |
5 |
| facilities owned by the supplier, its subsidiary, or other |
6 |
| corporate affiliate; or (iii) facilities that are adjacent to |
7 |
| the site on which the combined heat and power system is |
8 |
| located.
|
9 |
| (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09.)
|
10 |
| Section 99. Effective date. This Act takes effect upon |
11 |
| becoming law.".
|