HB4257 94TH GENERAL ASSEMBLY

LRB094 15767 MKM 50982 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4257

Introduced 12/15/05, by Rep. Patricia Reid Lindner

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-402.2 new

Amends the Public Utilities Act. Provides that each electric utility and each alternative retail electric supplier shall use its best efforts to procure by the end of calendar year 2007 renewable energy resources equal to at least 2% of the electric energy to be sold to retail customers within its service area during the following calendar year, and procure by the end of calendar year 2008 renewable energy resources equal to at least 4% of the electric energy to be sold to retail customers within its service area during the following calendar year. Provides that the Commission, together with the Department of Commerce and Economic Opportunity, shall evaluate the availability and use of renewable energy resources within this State and shall also consider the feasibility of adoption of an enforceable mandatory renewable energy resource portfolio standard to be applicable to all electric utilities and all alternative retail electric suppliers that requires that at least 12% of the energy used within the State be through renewable energy resources by the end of calendar year 2012 and at least 25% by the end of calendar year 2017. Provides that costs associated with the procurement of certain renewable energy resources shall be fully recoverable from retail customers to the extent allowed by law and shall not be subject to specified limitations relating to the recovery of the power and energy cost component in tariffed rates.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Public Utilities Act is amended by adding Section 8-402.2 as follows:

(220 ILCS 5/8-402.2 new)

Sec. 8-402.2. Renewable energy portfolio standard.

(a) The objective of this Section is to ensure the development and use of economical renewable energy resources consistent with the goals stated in Section 5 of the Illinois Resource Development and Energy Security Act and specifically to assess whether the State's electric energy providers can economically provide at least 12% of the energy used within the State through renewable energy resources by the end of calendar year 2012 and at least 25% by the end of calendar year 2017.

(b) Each electric utility and each alternative retail electric supplier, as defined in Section 16-102 of this Act, must use its best efforts to procure by the end of calendar year 2007 renewable energy resources equal to at least 2% of the electric energy to be sold to retail customers within its service area during the following calendar year, and procure by the end of calendar year 2008 renewable energy resources equal to at least 4% of the electric energy to be sold to retail customers within its service area during the following calendar year. This provision is, however, contingent upon the continued existence of federal energy production tax credits enacted as part of the federal Energy Policy Act of 1992. Violations of this Section are subject to the penalties provided for in Section 5-202 of this Act and assessed through the process provided for in Section 4-203.

(c) During calendar year 2008, the Commission, together with the Department of Commerce and Economic Opportunity, must evaluate the availability and use of renewable energy resources within this State and must also evaluate the feasibility of adoption of an enforceable mandatory renewable energy resource portfolio standard to be applicable to all electric utilities and all alternative retail electric suppliers, as defined in Section 16-102 of this Act. The Commission and the Department must specifically evaluate the feasibility and cost effectiveness of a mandatory renewable energy resource portfolio standard of at least 25% by the end of calendar year 2017, and may require electric utilities and alternative retail electric suppliers to introduce evidence of their ability to meet that standard. As part of that evaluation, the Commission and the Department must consider each of the following: (i) the adequacy of existing generation capacity and the availability of renewable energy resources in the State and in the region; (ii) the effect of a mandatory renewable energy resource portfolio standard on the costs and reliability of electric service; (iii) the continued availability of federal tax credits; (iv) the development at both the State and federal levels of infrastructure and rules and regulations that promote the development and use of renewable energy resources; (v) the effect of a mandatory renewable energy resource portfolio standard on the development of competition in the provision of service; (vi) the impact of a mandatory renewable energy resource portfolio standard on the environment, quality of life, and employment in the State; and (vii) any other factors affecting the State's economy. The Commission and the Department must report their findings to the General Assembly and must include in that report recommendations for further legislative action.

(d) The Commission and the Department must work with other state agencies in the Midwest to ensure reciprocal acceptance of renewable energy credits and certificates from resources located in Illinois for purposes of other states' renewable energy resource portfolio standards.

(e) Costs associated with the procurement of renewable energy resources pursuant to this Section shall be fully recoverable from retail customers to the extent allowed by law and shall not be subject to any limitations stated in subsection (i) of Section 16-111 of this Act relating to the recovery of the power and energy cost component in tariffed rates. Costs associated with contracts that were prudent when entered into pursuant to this Section shall not subsequently be denied recovery due to changes in State or federal law.

(f) For purposes of this Section, "renewable energy resources" means that term as it is defined in subsection (f) of Section 6-3 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 and includes renewable energy credits or certificates associated with those resources. However, energy from landfill gas shall not be counted as a renewable energy resource to the extent that it exceeds 27.5% of an electric utility's or alternative retail electric supplier's renewable energy resources portfolio. In addition, renewable energy resources shall only be counted for purposes of meeting the standards set forth in this Section if they are based on or relate to production or generation in this State or in an adjacent ozone non-attainment area, as designated by the federal Environmental Protection Agency, or in a state that has entered into a reciprocity agreement with Illinois, as provided in subsection (d) above.