98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1141

 

Introduced , by Rep. Eddie Lee Jackson, Sr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-76 new

    Amends the Illinois Power Agency Act. Defines "eligible retail customers", "municipal brownfield site", "qualified solar power purchase agreement", and "qualified solar remediation facility". Provides that the Illinois Power Agency shall have the authority to review and approve qualified solar power purchase agreements. Provides that the Agency shall accept applications from proposed operators of proposed qualified solar remediation facilities to approve qualified solar power purchase agreements. Sets forth the requirements for each qualified solar power purchase agreement. Provides that the Agency shall review an application within 90 days after receiving the application or before the next submission of the Agency's procurement plan to the Commission, whichever is earlier, and the Agency may assess a fee to review the application. Sets forth general conditions of a qualified solar power purchase agreement by the Illinois Commerce Commission and the Agency. Provides that nothing in the provision shall be construed to prohibit the electric utility from recovering prudently incurred costs from its delivery service customers or bundled service customers. Effective immediately.


LRB098 05955 AMC 35994 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1141LRB098 05955 AMC 35994 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-10 and 1-20 and by adding Section 1-76 as
6follows:
 
7    (20 ILCS 3855/1-10)
8    Sec. 1-10. Definitions.
9    "Agency" means the Illinois Power Agency.
10    "Agency loan agreement" means any agreement pursuant to
11which the Illinois Finance Authority agrees to loan the
12proceeds of revenue bonds issued with respect to a project to
13the Agency upon terms providing for loan repayment installments
14at least sufficient to pay when due all principal of, interest
15and premium, if any, on those revenue bonds, and providing for
16maintenance, insurance, and other matters in respect of the
17project.
18    "Authority" means the Illinois Finance Authority.
19    "Clean coal facility" means an electric generating
20facility that uses primarily coal as a feedstock and that
21captures and sequesters carbon dioxide emissions at the
22following levels: at least 50% of the total carbon dioxide
23emissions that the facility would otherwise emit if, at the

 

 

HB1141- 2 -LRB098 05955 AMC 35994 b

1time construction commences, the facility is scheduled to
2commence operation before 2016, at least 70% of the total
3carbon dioxide emissions that the facility would otherwise emit
4if, at the time construction commences, the facility is
5scheduled to commence operation during 2016 or 2017, and at
6least 90% of the total carbon dioxide emissions that the
7facility would otherwise emit if, at the time construction
8commences, the facility is scheduled to commence operation
9after 2017. The power block of the clean coal facility shall
10not exceed allowable emission rates for sulfur dioxide,
11nitrogen oxides, carbon monoxide, particulates and mercury for
12a natural gas-fired combined-cycle facility the same size as
13and in the same location as the clean coal facility at the time
14the clean coal facility obtains an approved air permit. All
15coal used by a clean coal facility shall have high volatile
16bituminous rank and greater than 1.7 pounds of sulfur per
17million btu content, unless the clean coal facility does not
18use gasification technology and was operating as a conventional
19coal-fired electric generating facility on June 1, 2009 (the
20effective date of Public Act 95-1027).
21    "Clean coal SNG brownfield facility" means a facility that
22(1) has commenced construction by July 1, 2015 on an urban
23brownfield site in a municipality with at least 1,000,000
24residents; (2) uses a gasification process to produce
25substitute natural gas; (3) uses coal as at least 50% of the
26total feedstock over the term of any sourcing agreement with a

 

 

HB1141- 3 -LRB098 05955 AMC 35994 b

1utility and the remainder of the feedstock may be either
2petroleum coke or coal, with all such coal having a high
3bituminous rank and greater than 1.7 pounds of sulfur per
4million Btu content unless the facility reasonably determines
5that it is necessary to use additional petroleum coke to
6deliver additional consumer savings, in which case the facility
7shall use coal for at least 35% of the total feedstock over the
8term of any sourcing agreement; and (4) captures and sequesters
9at least 85% of the total carbon dioxide emissions that the
10facility would otherwise emit.
11    "Clean coal SNG facility" means a facility that uses a
12gasification process to produce substitute natural gas, that
13sequesters at least 90% of the total carbon dioxide emissions
14that the facility would otherwise emit, that uses at least 90%
15coal as a feedstock, with all such coal having a high
16bituminous rank and greater than 1.7 pounds of sulfur per
17million btu content, and that has a valid and effective permit
18to construct emission sources and air pollution control
19equipment and approval with respect to the federal regulations
20for Prevention of Significant Deterioration of Air Quality
21(PSD) for the plant pursuant to the federal Clean Air Act;
22provided, however, a clean coal SNG brownfield facility shall
23not be a clean coal SNG facility.
24    "Commission" means the Illinois Commerce Commission.
25    "Costs incurred in connection with the development and
26construction of a facility" means:

 

 

HB1141- 4 -LRB098 05955 AMC 35994 b

1        (1) the cost of acquisition of all real property,
2    fixtures, and improvements in connection therewith and
3    equipment, personal property, and other property, rights,
4    and easements acquired that are deemed necessary for the
5    operation and maintenance of the facility;
6        (2) financing costs with respect to bonds, notes, and
7    other evidences of indebtedness of the Agency;
8        (3) all origination, commitment, utilization,
9    facility, placement, underwriting, syndication, credit
10    enhancement, and rating agency fees;
11        (4) engineering, design, procurement, consulting,
12    legal, accounting, title insurance, survey, appraisal,
13    escrow, trustee, collateral agency, interest rate hedging,
14    interest rate swap, capitalized interest, contingency, as
15    required by lenders, and other financing costs, and other
16    expenses for professional services; and
17        (5) the costs of plans, specifications, site study and
18    investigation, installation, surveys, other Agency costs
19    and estimates of costs, and other expenses necessary or
20    incidental to determining the feasibility of any project,
21    together with such other expenses as may be necessary or
22    incidental to the financing, insuring, acquisition, and
23    construction of a specific project and starting up,
24    commissioning, and placing that project in operation.
25    "Department" means the Department of Commerce and Economic
26Opportunity.

 

 

HB1141- 5 -LRB098 05955 AMC 35994 b

1    "Director" means the Director of the Illinois Power Agency.
2    "Demand-response" means measures that decrease peak
3electricity demand or shift demand from peak to off-peak
4periods.
5    "Distributed renewable energy generation device" means a
6device that is:
7        (1) powered by wind, solar thermal energy,
8    photovoltaic cells and panels, biodiesel, crops and
9    untreated and unadulterated organic waste biomass, tree
10    waste, and hydropower that does not involve new
11    construction or significant expansion of hydropower dams;
12        (2) interconnected at the distribution system level of
13    either an electric utility as defined in this Section, an
14    alternative retail electric supplier as defined in Section
15    16-102 of the Public Utilities Act, a municipal utility as
16    defined in Section 3-105 of the Public Utilities Act, or a
17    rural electric cooperative as defined in Section 3-119 of
18    the Public Utilities Act;
19        (3) located on the customer side of the customer's
20    electric meter and is primarily used to offset that
21    customer's electricity load; and
22        (4) limited in nameplate capacity to no more than 2,000
23    kilowatts.
24    "Eligible retail customers" has the same definition as
25found in Section 16-111.5 of the Public Utilities Act.
26    "Energy efficiency" means measures that reduce the amount

 

 

HB1141- 6 -LRB098 05955 AMC 35994 b

1of electricity or natural gas required to achieve a given end
2use.
3    "Electric utility" has the same definition as found in
4Section 16-102 of the Public Utilities Act.
5    "Facility" means an electric generating unit or a
6co-generating unit that produces electricity along with
7related equipment necessary to connect the facility to an
8electric transmission or distribution system.
9    "Governmental aggregator" means one or more units of local
10government that individually or collectively procure
11electricity to serve residential retail electrical loads
12located within its or their jurisdiction.
13    "Local government" means a unit of local government as
14defined in Section 1 of Article VII of the Illinois
15Constitution.
16    "Municipal brownfield site" means a site (1) that is owned
17by a municipality and conveyed or leased to a person proposing
18to operate a qualified solar remediation facility on such site
19and (2) that is the subject of a Superfund alternative approach
20agreement between the United States Environmental Protection
21Agency and potentially responsible parties in accordance with
22the federal Comprehensive Environmental Response,
23Compensation, and Liability Act of 1980, as amended, requiring
24remedial clean up of such site.
25    "Municipality" means a city, village, or incorporated
26town.

 

 

HB1141- 7 -LRB098 05955 AMC 35994 b

1    "Person" means any natural person, firm, partnership,
2corporation, either domestic or foreign, company, association,
3limited liability company, joint stock company, or association
4and includes any trustee, receiver, assignee, or personal
5representative thereof.
6    "Project" means the planning, bidding, and construction of
7a facility.
8    "Public utility" has the same definition as found in
9Section 3-105 of the Public Utilities Act.
10    "Qualified solar power purchase agreement" means an
11agreement between the operator of a qualified solar remediation
12facility and an electric utility that has terms and conditions
13meeting the requirements of subsection (c) of Section 1-76 of
14this Act and is consistent with the utility's applicable
15tariffs.
16    "Qualified solar remediation facility" means an electric
17generating facility:
18        (1) that uses photovoltaic cells and panels to produce
19    energy;
20        (2) that is located at a municipal brownfield site;
21        (3) that has a nameplate capacity of no more than 20
22    megawatts; and
23        (4) where construction of the electric generating
24    facility structure has not commenced on or before the date
25    the application to approve a qualified solar power purchase
26    agreement for such facility is submitted to the Agency in

 

 

HB1141- 8 -LRB098 05955 AMC 35994 b

1    accordance with Section 1-76 of this Act.
2    "Real property" means any interest in land together with
3all structures, fixtures, and improvements thereon, including
4lands under water and riparian rights, any easements,
5covenants, licenses, leases, rights-of-way, uses, and other
6interests, together with any liens, judgments, mortgages, or
7other claims or security interests related to real property.
8    "Renewable energy credit" means a tradable credit that
9represents the environmental attributes of a certain amount of
10energy produced from a renewable energy resource.
11    "Renewable energy resources" includes energy and its
12associated renewable energy credit or renewable energy credits
13from wind, solar thermal energy, photovoltaic cells and panels,
14biodiesel, anaerobic digestion, crops and untreated and
15unadulterated organic waste biomass, tree waste, hydropower
16that does not involve new construction or significant expansion
17of hydropower dams, and other alternative sources of
18environmentally preferable energy. For purposes of this Act,
19landfill gas produced in the State is considered a renewable
20energy resource. "Renewable energy resources" does not include
21the incineration or burning of tires, garbage, general
22household, institutional, and commercial waste, industrial
23lunchroom or office waste, landscape waste other than tree
24waste, railroad crossties, utility poles, or construction or
25demolition debris, other than untreated and unadulterated
26waste wood.

 

 

HB1141- 9 -LRB098 05955 AMC 35994 b

1    "Revenue bond" means any bond, note, or other evidence of
2indebtedness issued by the Authority, the principal and
3interest of which is payable solely from revenues or income
4derived from any project or activity of the Agency.
5    "Sequester" means permanent storage of carbon dioxide by
6injecting it into a saline aquifer, a depleted gas reservoir,
7or an oil reservoir, directly or through an enhanced oil
8recovery process that may involve intermediate storage,
9regardless of whether these activities are conducted by a clean
10coal facility, a clean coal SNG facility, a clean coal SNG
11brownfield facility, or a party with which a clean coal
12facility, clean coal SNG facility, or clean coal SNG brownfield
13facility has contracted for such purposes.
14    "Sourcing agreement" means (i) in the case of an electric
15utility, an agreement between the owner of a clean coal
16facility and such electric utility, which agreement shall have
17terms and conditions meeting the requirements of paragraph (3)
18of subsection (d) of Section 1-75, (ii) in the case of an
19alternative retail electric supplier, an agreement between the
20owner of a clean coal facility and such alternative retail
21electric supplier, which agreement shall have terms and
22conditions meeting the requirements of Section 16-115(d)(5) of
23the Public Utilities Act, and (iii) in case of a gas utility,
24an agreement between the owner of a clean coal SNG brownfield
25facility and the gas utility, which agreement shall have the
26terms and conditions meeting the requirements of subsection

 

 

HB1141- 10 -LRB098 05955 AMC 35994 b

1(h-1) of Section 9-220 of the Public Utilities Act.
2    "Substitute natural gas" or "SNG" means a gas manufactured
3by gasification of hydrocarbon feedstock, which is
4substantially interchangeable in use and distribution with
5conventional natural gas.
6    "Total resource cost test" or "TRC test" means a standard
7that is met if, for an investment in energy efficiency or
8demand-response measures, the benefit-cost ratio is greater
9than one. The benefit-cost ratio is the ratio of the net
10present value of the total benefits of the program to the net
11present value of the total costs as calculated over the
12lifetime of the measures. A total resource cost test compares
13the sum of avoided electric utility costs, representing the
14benefits that accrue to the system and the participant in the
15delivery of those efficiency measures, as well as other
16quantifiable societal benefits, including avoided natural gas
17utility costs, to the sum of all incremental costs of end-use
18measures that are implemented due to the program (including
19both utility and participant contributions), plus costs to
20administer, deliver, and evaluate each demand-side program, to
21quantify the net savings obtained by substituting the
22demand-side program for supply resources. In calculating
23avoided costs of power and energy that an electric utility
24would otherwise have had to acquire, reasonable estimates shall
25be included of financial costs likely to be imposed by future
26regulations and legislation on emissions of greenhouse gases.

 

 

HB1141- 11 -LRB098 05955 AMC 35994 b

1(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
296-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
37-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,
4eff. 10-26-11; 97-813, eff. 7-13-12.)
 
5    (20 ILCS 3855/1-20)
6    Sec. 1-20. General powers of the Agency.
7    (a) The Agency is authorized to do each of the following:
8        (1) Develop electricity procurement plans to ensure
9    adequate, reliable, affordable, efficient, and
10    environmentally sustainable electric service at the lowest
11    total cost over time, taking into account any benefits of
12    price stability, for electric utilities that on December
13    31, 2005 provided electric service to at least 100,000
14    customers in Illinois and for small multi-jurisdictional
15    electric utilities that (A) on December 31, 2005 served
16    less than 100,000 customers in Illinois and (B) request a
17    procurement plan for their Illinois jurisdictional load.
18    The procurement plans shall be updated on an annual basis
19    and shall include electricity generated from renewable
20    resources sufficient to achieve the standards specified in
21    this Act.
22        (2) Conduct competitive procurement processes to
23    procure the supply resources identified in the procurement
24    plan, pursuant to Section 16-111.5 of the Public Utilities
25    Act.

 

 

HB1141- 12 -LRB098 05955 AMC 35994 b

1        (3) Develop electric generation and co-generation
2    facilities that use indigenous coal or renewable
3    resources, or both, financed with bonds issued by the
4    Illinois Finance Authority.
5        (4) Supply electricity from the Agency's facilities at
6    cost to one or more of the following: municipal electric
7    systems, governmental aggregators, or rural electric
8    cooperatives in Illinois.
9    (b) Except as otherwise limited by this Act, the Agency has
10all of the powers necessary or convenient to carry out the
11purposes and provisions of this Act, including without
12limitation, each of the following:
13        (1) To have a corporate seal, and to alter that seal at
14    pleasure, and to use it by causing it or a facsimile to be
15    affixed or impressed or reproduced in any other manner.
16        (2) To use the services of the Illinois Finance
17    Authority necessary to carry out the Agency's purposes.
18        (3) To negotiate and enter into loan agreements and
19    other agreements with the Illinois Finance Authority.
20        (4) To obtain and employ personnel and hire consultants
21    that are necessary to fulfill the Agency's purposes, and to
22    make expenditures for that purpose within the
23    appropriations for that purpose.
24        (5) To purchase, receive, take by grant, gift, devise,
25    bequest, or otherwise, lease, or otherwise acquire, own,
26    hold, improve, employ, use, and otherwise deal in and with,

 

 

HB1141- 13 -LRB098 05955 AMC 35994 b

1    real or personal property whether tangible or intangible,
2    or any interest therein, within the State.
3        (6) To acquire real or personal property, whether
4    tangible or intangible, including without limitation
5    property rights, interests in property, franchises,
6    obligations, contracts, and debt and equity securities,
7    and to do so by the exercise of the power of eminent domain
8    in accordance with Section 1-21; except that any real
9    property acquired by the exercise of the power of eminent
10    domain must be located within the State.
11        (7) To sell, convey, lease, exchange, transfer,
12    abandon, or otherwise dispose of, or mortgage, pledge, or
13    create a security interest in, any of its assets,
14    properties, or any interest therein, wherever situated.
15        (8) To purchase, take, receive, subscribe for, or
16    otherwise acquire, hold, make a tender offer for, vote,
17    employ, sell, lend, lease, exchange, transfer, or
18    otherwise dispose of, mortgage, pledge, or grant a security
19    interest in, use, and otherwise deal in and with, bonds and
20    other obligations, shares, or other securities (or
21    interests therein) issued by others, whether engaged in a
22    similar or different business or activity.
23        (9) To make and execute agreements, contracts, and
24    other instruments necessary or convenient in the exercise
25    of the powers and functions of the Agency under this Act,
26    including contracts with any person, including personal

 

 

HB1141- 14 -LRB098 05955 AMC 35994 b

1    service contracts, or with any local government, State
2    agency, or other entity; and all State agencies and all
3    local governments are authorized to enter into and do all
4    things necessary to perform any such agreement, contract,
5    or other instrument with the Agency. No such agreement,
6    contract, or other instrument shall exceed 40 years.
7        (10) To lend money, invest and reinvest its funds in
8    accordance with the Public Funds Investment Act, and take
9    and hold real and personal property as security for the
10    payment of funds loaned or invested.
11        (11) To borrow money at such rate or rates of interest
12    as the Agency may determine, issue its notes, bonds, or
13    other obligations to evidence that indebtedness, and
14    secure any of its obligations by mortgage or pledge of its
15    real or personal property, machinery, equipment,
16    structures, fixtures, inventories, revenues, grants, and
17    other funds as provided or any interest therein, wherever
18    situated.
19        (12) To enter into agreements with the Illinois Finance
20    Authority to issue bonds whether or not the income
21    therefrom is exempt from federal taxation.
22        (13) To procure insurance against any loss in
23    connection with its properties or operations in such amount
24    or amounts and from such insurers, including the federal
25    government, as it may deem necessary or desirable, and to
26    pay any premiums therefor.

 

 

HB1141- 15 -LRB098 05955 AMC 35994 b

1        (14) To negotiate and enter into agreements with
2    trustees or receivers appointed by United States
3    bankruptcy courts or federal district courts or in other
4    proceedings involving adjustment of debts and authorize
5    proceedings involving adjustment of debts and authorize
6    legal counsel for the Agency to appear in any such
7    proceedings.
8        (15) To file a petition under Chapter 9 of Title 11 of
9    the United States Bankruptcy Code or take other similar
10    action for the adjustment of its debts.
11        (16) To enter into management agreements for the
12    operation of any of the property or facilities owned by the
13    Agency.
14        (17) To enter into an agreement to transfer and to
15    transfer any land, facilities, fixtures, or equipment of
16    the Agency to one or more municipal electric systems,
17    governmental aggregators, or rural electric agencies or
18    cooperatives, for such consideration and upon such terms as
19    the Agency may determine to be in the best interest of the
20    citizens of Illinois.
21        (18) To enter upon any lands and within any building
22    whenever in its judgment it may be necessary for the
23    purpose of making surveys and examinations to accomplish
24    any purpose authorized by this Act.
25        (19) To maintain an office or offices at such place or
26    places in the State as it may determine.

 

 

HB1141- 16 -LRB098 05955 AMC 35994 b

1        (20) To request information, and to make any inquiry,
2    investigation, survey, or study that the Agency may deem
3    necessary to enable it effectively to carry out the
4    provisions of this Act.
5        (21) To accept and expend appropriations.
6        (22) To engage in any activity or operation that is
7    incidental to and in furtherance of efficient operation to
8    accomplish the Agency's purposes, including hiring
9    employees that the Director deems essential for the
10    operations of the Agency.
11        (23) To adopt, revise, amend, and repeal rules with
12    respect to its operations, properties, and facilities as
13    may be necessary or convenient to carry out the purposes of
14    this Act, subject to the provisions of the Illinois
15    Administrative Procedure Act and Sections 1-22 and 1-35 of
16    this Act.
17        (24) To establish and collect charges and fees as
18    described in this Act.
19        (25) To conduct competitive gasification feedstock
20    procurement processes to procure the feedstocks for the
21    clean coal SNG brownfield facility in accordance with the
22    requirements of Section 1-78 of this Act.
23        (26) To review, revise, and approve sourcing
24    agreements and mediate and resolve disputes between gas
25    utilities and the clean coal SNG brownfield facility
26    pursuant to subsection (h-1) of Section 9-220 of the Public

 

 

HB1141- 17 -LRB098 05955 AMC 35994 b

1    Utilities Act.
2        (27) To review and approve qualified solar power
3    purchase agreements pursuant to Section 1-76 of this Act.
4(Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10;
597-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.
610-26-11; 97-813, eff. 7-13-12.)
 
7    (20 ILCS 3855/1-76 new)
8    Sec. 1-76. Qualified solar power purchase agreements.
9    (a) The General Assembly finds that encouraging the
10development and use of solar energy is in the public interest
11and consistent with the renewable energy goals of the State.
12The General Assembly further finds that repurposing and
13redeveloping brownfield sites owned by municipalities,
14including in particular those sites that are in need of
15remedial clean up due to prior contamination, to host solar
16energy producing facilities is in the economic and
17environmental interests of the State, those municipalities,
18and the public.
19    (b) For a period of one year after the effective date of
20this amendatory Act of the 98th General Assembly, the Agency
21shall accept applications from proposed operators of proposed
22qualified solar remediation facilities to approve a qualified
23solar power purchase agreement. The Agency shall accept only
24one application that meets the criteria set forth in this
25Section. The Agency shall not accept an application that does

 

 

HB1141- 18 -LRB098 05955 AMC 35994 b

1not meet the criteria set forth in this Section. The
2application shall include a proposed qualified solar power
3purchase agreement between the applicant and an electric
4utility.
5    (c) Each qualified solar power purchase agreement shall:
6        (1) include provisions governing the prices paid for
7    electricity generated by the qualified solar remediation
8    facility and for renewable energy credits purchased in
9    connection with the electricity, which prices in aggregate
10    (for both electricity and renewable energy credits) shall:
11            (A) not exceed 23 cents per kilowatt hour in the
12        first year of the sale of electricity pursuant to such
13        qualified solar power purchase agreement;
14            (B) not increase during the term of the qualified
15        solar power purchase agreement by more than 1.5% per
16        year; and
17            (C) be reduced by an amount, if necessary, such
18        that the annual estimated average prices paid by
19        alternative retail electric suppliers in connection
20        with electric service do not incur a net increase due
21        to the costs of the renewable energy resources procured
22        under such qualified solar power purchase agreement by
23        more than the greater of 2.015% of the amount paid per
24        kilowatt hour by those alternative retail electric
25        suppliers during the year ending May 31, 2007 or the
26        incremental amount per kilowatt hour paid for

 

 

HB1141- 19 -LRB098 05955 AMC 35994 b

1        renewable energy resources in 2011.
2        (2) specify a term of no more than 20 years, commencing
3    on the commercial operation date of the facility;
4        (3) require the facility to be constructed on the
5    specified municipal brownfield site and to achieve the
6    commercial operation date within 5 years after the approval
7    of the qualified solar power purchase agreement by the
8    Agency;
9        (4) include a representation by the applicant that,
10    from and after the execution of the qualified solar power
11    purchase agreement, any costs incurred in the
12    environmental remediation of the municipal brownfield
13    site, other than for the construction of the qualified
14    solar remediation facility, shall not cause an increase in
15    the prices paid for electricity generated by the qualified
16    solar remediation facility in excess of the prices stated
17    in the proposed qualified solar power purchase agreement;
18        (5) provide for purchase and sale of the full output of
19    a qualified solar remediation facility consistent with the
20    electric utility's tariffs and practice, but not to exceed
21    a nameplate capacity of 20 megawatts;
22        (6) require the qualified solar remediation facility
23    to provide to the electric utility, on a day-prior basis,
24    an estimate of the integrated hourly output from the
25    facility and, on a monthly basis, the actual integrated
26    hourly output from the facility; and

 

 

HB1141- 20 -LRB098 05955 AMC 35994 b

1        (7) provide that the effectiveness of such agreement is
2    contingent upon (i) approval by the Agency pursuant to this
3    Section and (ii) inclusion in a procurement plan that is
4    submitted by the Agency and approved by the Commission.
5    (d) The Agency shall promptly review an application
6submitted pursuant to this Section. The Agency shall approve a
7qualified solar power purchase agreement within 90 days after
8the Agency has received such an application or before the next
9submission of the Agency's procurement plan to the Commission,
10whichever is earlier, unless the Agency finds that the
11agreement does not conform to the requirements of subsection
12(c) of this Section. Immediately following the approval of the
13qualified solar power purchase agreement by the Agency, the
14Agency shall include and incorporate the qualified solar power
15purchase agreement and the proposed output in the Agency's
16procurement plan.
17    (e) The Commission shall approve the inclusion of the
18qualified solar power purchase agreement in the Agency's
19procurement plan, unless the Commission finds that any
20projected rate increases to eligible retail electric customers
21attributable solely to costs incurred by an electric utility
22pursuant to the qualified solar power purchase agreement
23violate the requirements of paragraph (2) of subsection (c) of
24Section 1-75 of this Act. Upon approval of a qualified solar
25power purchase agreement by the Commission, such qualified
26solar power purchase agreement shall be executed by the parties

 

 

HB1141- 21 -LRB098 05955 AMC 35994 b

1and become effective subject to the electric utility's
2applicable tariffs.
3    (f) The Agency may assess a fee to the applicant to recover
4the costs incurred in reviewing the application pursuant to
5this Section.
6    (g) All costs incurred by an electric utility pursuant to a
7qualified solar power purchase agreement approved by the Agency
8pursuant to this Section, including costs for renewable energy
9credits purchased in connection with electricity generated by
10that qualified solar remediation facility and costs incurred in
11negotiating the agreement and seeking approval by the Agency in
12accordance with this Section, shall be deemed prudently
13incurred and reasonable in amount, and the electric utility
14shall be entitled to full cost recovery pursuant to the tariffs
15filed with the Commission.
16    (h) Any renewable energy credits purchased by an electric
17utility pursuant to a qualified solar power purchase agreement
18approved by the Agency pursuant to this Section shall count
19towards the required percentages for solar photovoltaic energy
20for the purposes of subsection (c) of Section 1-75 of this Act.
21    (i) The electric utility shall include purchases under the
22qualified solar power purchase agreement in its portfolio of
23purchases associated with eligible retail customers, at a value
24equal to the total of the per-kilowatt-hour cost of on-peak
25energy, capacity, and solar renewable energy credits
26associated with renewable energy procured in the most recent

 

 

HB1141- 22 -LRB098 05955 AMC 35994 b

1power procurement event conducted under Section 1-75 of this
2Act that included executed contracts for solar renewable energy
3credits. The value of purchases under the qualified solar power
4purchase agreement shall be recovered under tariffs approved by
5the Commission pursuant to subsection (l) of Section 16-111.5
6of the Public Utilities Act.
7    The electric utility shall estimate the kilowatt-hour
8quantity of qualified solar power purchase agreement energy
9expected to be acquired in a procurement plan year. The over or
10under cost recovery mechanism contained in the tariff approved
11by the Commission pursuant to subsection (l) of Section
1216-111.5 of the Public Utilities Act shall reconcile the
13estimated costs with the actual costs allocated to eligible
14retail customers by multiplying the per-kilowatt-hour cost
15established in this Section by the difference between the
16estimated kilowatt-hour quantity and the actual kilowatt-hour
17quantity generated by the qualified solar remediation
18facility.
19    (j) If the price established by the qualified solar power
20purchase agreement in conformance with subsection (c) of this
21Section is different than the value of the purchases under the
22qualified solar power purchase agreement as determined by
23subsection (i) of this Section, the difference shall be
24collected equally from, or credited equally to, all of the
25electric utility's delivery service customers through a cents
26per-kilowatt-hour tariff mechanism approved by the Commission.

 

 

HB1141- 23 -LRB098 05955 AMC 35994 b

1Such tariff mechanism shall be established outside the context
2of a general rate case or formula rate proceeding. The tariff
3mechanism each year shall establish an estimated amount to
4collect or credit and shall contain provisions that ensure that
5its application does not result in over or under recovery,
6including, but not limited to, changes in qualified solar
7remediation facility production or customer usage or demand
8patterns.
9    The application of subsections (i) and (j) of this Section
10together shall be construed to permit the electric utility to
11recover all of its costs incurred to comply with this Section.
12    (k) Nothing in this Section shall be construed to prohibit
13the electric utility from recovering prudently incurred costs
14under this Section from its delivery service customers or
15bundled service customers.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.