Full Text of HB5168 103rd General Assembly
HB5168 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5168 Introduced 2/9/2024, by Rep. Eva-Dina Delgado SYNOPSIS AS INTRODUCED: | | | Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities. |
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Public Utilities Act is amended by changing | 5 | | Section 16-115D as follows: | 6 | | (220 ILCS 5/16-115D) | 7 | | Sec. 16-115D. Renewable portfolio standard for alternative | 8 | | retail electric suppliers and electric utilities operating | 9 | | outside their service territories. | 10 | | (a) An alternative retail electric supplier shall be | 11 | | responsible for procuring cost-effective renewable energy | 12 | | resources as required under item (5) of subsection (d) of | 13 | | Section 16-115 of this Act as outlined herein: | 14 | | (1) The definition of renewable energy resources | 15 | | contained in Section 1-10 of the Illinois Power Agency Act | 16 | | applies to all renewable energy resources required to be | 17 | | procured by alternative retail electric suppliers. | 18 | | (2) Through May 31, 2017, the quantity of renewable | 19 | | energy resources shall be measured as a percentage of the | 20 | | actual amount of metered electricity (megawatt-hours) | 21 | | delivered by the alternative retail electric supplier to | 22 | | Illinois retail customers during the 12-month period June | 23 | | 1 through May 31, commencing June 1, 2009, and the |
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| 1 | | comparable 12-month period in each year thereafter except | 2 | | as provided in item (6) of this subsection (a). | 3 | | (3) Through May 31, 2017, the quantity of renewable | 4 | | energy resources shall be in amounts at least equal to the | 5 | | annual percentages set forth in item (1) of subsection (c) | 6 | | of Section 1-75 of the Illinois Power Agency Act. At least | 7 | | 60% of the renewable energy resources procured pursuant to | 8 | | items (1) and (3) of subsection (b) of this Section shall | 9 | | come from wind generation and, starting June 1, 2015, at | 10 | | least 6% of the renewable energy resources procured | 11 | | pursuant to items (1) and (3) of subsection (b) of this | 12 | | Section shall come from solar photovoltaics. If, in any | 13 | | given year, an alternative retail electric supplier does | 14 | | not purchase at least these levels of renewable energy | 15 | | resources, then the alternative retail electric supplier | 16 | | shall make alternative compliance payments, as described | 17 | | in subsection (d) of this Section. | 18 | | (3.5) For the delivery year commencing June 1, 2017, | 19 | | the quantity of renewable energy resources shall be at | 20 | | least 13.0% of the uncovered amount of metered electricity | 21 | | (megawatt-hours) delivered by the alternative retail | 22 | | electric supplier to Illinois retail customers during the | 23 | | delivery year, which uncovered amount shall equal 50% of | 24 | | such metered electricity delivered by the alternative | 25 | | retail electric supplier. For the delivery year commencing | 26 | | June 1, 2018, the quantity of renewable energy resources |
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| 1 | | shall be at least 14.5% of the uncovered amount of metered | 2 | | electricity (megawatt-hours) delivered by the alternative | 3 | | retail electric supplier to Illinois retail customers | 4 | | during the delivery year, which uncovered amount shall | 5 | | equal 25% of such metered electricity delivered by the | 6 | | alternative retail electric supplier. At least 32% of the | 7 | | renewable energy resources procured by the alternative | 8 | | retail electric supplier for its uncovered portion under | 9 | | this paragraph (3.5) shall come from wind or photovoltaic | 10 | | generation. The renewable energy resources procured under | 11 | | this paragraph (3.5) shall not include any resources from | 12 | | a facility whose costs were being recovered through rates | 13 | | regulated by any state or states on or after January 1, | 14 | | 2017. | 15 | | (4) The quantity and source of renewable energy | 16 | | resources shall be independently verified through the PJM | 17 | | Environmental Information System Generation Attribute | 18 | | Tracking System (PJM-GATS) or the Midwest Renewable Energy | 19 | | Tracking System (M-RETS), which shall document the | 20 | | location of generation, resource type, month, and year of | 21 | | generation for all qualifying renewable energy resources | 22 | | that an alternative retail electric supplier uses to | 23 | | comply with this Section. No later than June 1, 2009, the | 24 | | Illinois Power Agency shall provide PJM-GATS, M-RETS, and | 25 | | alternative retail electric suppliers with all information | 26 | | necessary to identify resources located in Illinois, |
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| 1 | | within states that adjoin Illinois or within portions of | 2 | | the PJM and MISO footprint in the United States that | 3 | | qualify under the definition of renewable energy resources | 4 | | in Section 1-10 of the Illinois Power Agency Act for | 5 | | compliance with this Section 16-115D. Alternative retail | 6 | | electric suppliers shall not be subject to the | 7 | | requirements in item (3) of subsection (c) of Section 1-75 | 8 | | of the Illinois Power Agency Act. | 9 | | (5) All renewable energy credits used to comply with | 10 | | this Section shall be permanently retired. | 11 | | (6) The required procurement of renewable energy | 12 | | resources by an alternative retail electric supplier shall | 13 | | apply to all metered electricity delivered to Illinois | 14 | | retail customers by the alternative retail electric | 15 | | supplier pursuant to contracts executed or extended after | 16 | | March 15, 2009. | 17 | | (b) Compliance obligations. | 18 | | (1) Through May 31, 2017, an alternative retail | 19 | | electric supplier shall comply with the renewable energy | 20 | | portfolio standards by making an alternative compliance | 21 | | payment, as described in subsection (d) of this Section, | 22 | | to cover at least one-half of the alternative retail | 23 | | electric supplier's compliance obligation for the period | 24 | | prior to June 1, 2017. | 25 | | (2) For the delivery years beginning June 1, 2017 and | 26 | | June 1, 2018, an alternative retail electric supplier need |
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| 1 | | not make any alternative compliance payment to meet any | 2 | | portion of its compliance obligation, as set forth in | 3 | | paragraph (3.5) of subsection (a) of this Section. | 4 | | (3) An alternative retail electric supplier shall use | 5 | | any one or combination of the following means to cover the | 6 | | remainder of the alternative retail electric supplier's | 7 | | compliance obligation, as set forth in paragraphs (3) and | 8 | | (3.5) of subsection (a) of this Section, not covered by an | 9 | | alternative compliance payment made under paragraphs (1) | 10 | | and (2) of this subsection (b) of this Section: | 11 | | (A) Generating electricity using renewable energy | 12 | | resources identified pursuant to item (4) of | 13 | | subsection (a) of this Section. | 14 | | (B) Purchasing electricity generated using | 15 | | renewable energy resources identified pursuant to item | 16 | | (4) of subsection (a) of this Section through an | 17 | | energy contract. | 18 | | (C) Purchasing renewable energy credits from | 19 | | renewable energy resources identified pursuant to item | 20 | | (4) of subsection (a) of this Section. | 21 | | (D) Making an alternative compliance payment as | 22 | | described in subsection (d) of this Section. | 23 | | (c) Use of renewable energy credits. | 24 | | (1) Renewable energy credits that are not used by an | 25 | | alternative retail electric supplier to comply with a | 26 | | renewable portfolio standard in a compliance year may be |
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| 1 | | banked and carried forward up to 2 12-month compliance | 2 | | periods after the compliance period in which the credit | 3 | | was generated for the purpose of complying with a | 4 | | renewable portfolio standard in those 2 subsequent | 5 | | compliance periods. For the 2009-2010 and 2010-2011 | 6 | | compliance periods, an alternative retail electric | 7 | | supplier may use renewable credits generated after | 8 | | December 31, 2008 and before June 1, 2009 to comply with | 9 | | this Section. | 10 | | (2) An alternative retail electric supplier is | 11 | | responsible for demonstrating that a renewable energy | 12 | | credit used to comply with a renewable portfolio standard | 13 | | is derived from a renewable energy resource and that the | 14 | | alternative retail electric supplier has not used, traded, | 15 | | sold, or otherwise transferred the credit. | 16 | | (3) The same renewable energy credit may be used by an | 17 | | alternative retail electric supplier to comply with a | 18 | | federal renewable portfolio standard and a renewable | 19 | | portfolio standard established under this Act. An | 20 | | alternative retail electric supplier that uses a renewable | 21 | | energy credit to comply with a renewable portfolio | 22 | | standard imposed by any other state may not use the same | 23 | | credit to comply with a renewable portfolio standard | 24 | | established under this Act. | 25 | | (d) Alternative compliance payments. | 26 | | (1) The Commission shall establish and post on its |
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| 1 | | website, within 5 business days after entering an order | 2 | | approving a procurement plan pursuant to Section 1-75 of | 3 | | the Illinois Power Agency Act, maximum alternative | 4 | | compliance payment rates, expressed on a per kilowatt-hour | 5 | | basis, that will be applicable in the first compliance | 6 | | period following the plan approval. A separate maximum | 7 | | alternative compliance payment rate shall be established | 8 | | for the service territory of each electric utility that is | 9 | | subject to subsection (c) of Section 1-75 of the Illinois | 10 | | Power Agency Act. Each maximum alternative compliance | 11 | | payment rate shall be equal to the maximum allowable | 12 | | annual estimated average net increase due to the costs of | 13 | | the utility's purchase of renewable energy resources | 14 | | included in the amounts paid by eligible retail customers | 15 | | in connection with electric service, as described in item | 16 | | (2) of subsection (c) of Section 1-75 of the Illinois | 17 | | Power Agency Act for the compliance period, and as | 18 | | established in the approved procurement plan. Following | 19 | | each procurement event through which renewable energy | 20 | | resources are purchased for one or more of these utilities | 21 | | for the compliance period, the Commission shall establish | 22 | | and post on its website estimates of the alternative | 23 | | compliance payment rates, expressed on a per kilowatt-hour | 24 | | basis, that shall apply for that compliance period. | 25 | | Posting of the estimates shall occur no later than 10 | 26 | | business days following the procurement event, however, |
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| 1 | | the Commission shall not be required to establish and post | 2 | | such estimates more often than once per calendar month. By | 3 | | July 1 of each year, the Commission shall establish and | 4 | | post on its website the actual alternative compliance | 5 | | payment rates for the preceding compliance year. For | 6 | | compliance years beginning prior to June 1, 2014, each | 7 | | alternative compliance payment rate shall be equal to the | 8 | | total amount of dollars that the utility contracted to | 9 | | spend on renewable resources, excepting the additional | 10 | | incremental cost attributable to solar resources, for the | 11 | | compliance period divided by the forecasted load of | 12 | | eligible retail customers, at the customers' meters, as | 13 | | previously established in the Commission-approved | 14 | | procurement plan for that compliance year. For compliance | 15 | | years commencing on or after June 1, 2014, each | 16 | | alternative compliance payment rate shall be equal to the | 17 | | total amount of dollars that the utility contracted to | 18 | | spend on all renewable resources for the compliance period | 19 | | divided by the forecasted load of retail customers for | 20 | | which the utility is procuring renewable energy resources | 21 | | in a given delivery year, at the customers' meters, as | 22 | | previously established in the Commission-approved | 23 | | procurement plan for that compliance year. The actual | 24 | | alternative compliance payment rates may not exceed the | 25 | | maximum alternative compliance payment rates established | 26 | | for the compliance period. For purposes of this subsection |
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| 1 | | (d), the term "eligible retail customers" has the same | 2 | | meaning as found in Section 16-111.5 of this Act. | 3 | | (2) In any given compliance year, an alternative | 4 | | retail electric supplier may elect to use alternative | 5 | | compliance payments to comply with all or a part of the | 6 | | applicable renewable portfolio standard. In the event that | 7 | | an alternative retail electric supplier elects to make | 8 | | alternative compliance payments to comply with all or a | 9 | | part of the applicable renewable portfolio standard, such | 10 | | payments shall be made by September 1, 2010 for the period | 11 | | of June 1, 2009 to May 1, 2010 and by September 1 of each | 12 | | year thereafter for the subsequent compliance period, in | 13 | | the manner and form as determined by the Commission. Any | 14 | | election by an alternative retail electric supplier to use | 15 | | alternative compliance payments is subject to review by | 16 | | the Commission under subsection (e) of this Section. | 17 | | (3) An alternative retail electric supplier's | 18 | | alternative compliance payments shall be computed | 19 | | separately for each electric utility's service territory | 20 | | within which the alternative retail electric supplier | 21 | | provided retail service during the compliance period, | 22 | | provided that the electric utility was subject to | 23 | | subsection (c) of Section 1-75 of the Illinois Power | 24 | | Agency Act. For each service territory, the alternative | 25 | | retail electric supplier's alternative compliance payment | 26 | | shall be equal to (i) the actual alternative compliance |
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| 1 | | payment rate established in item (1) of this subsection | 2 | | (d), multiplied by (ii) the actual amount of metered | 3 | | electricity delivered by the alternative retail electric | 4 | | supplier to retail customers for which the supplier has a | 5 | | compliance obligation within the service territory during | 6 | | the compliance period, multiplied by (iii) the result of | 7 | | one minus the ratios of the quantity of renewable energy | 8 | | resources used by the alternative retail electric supplier | 9 | | to comply with the requirements of this Section within the | 10 | | service territory to the product of the percentage of | 11 | | renewable energy resources required under item (3) or | 12 | | (3.5) of subsection (a) of this Section and the actual | 13 | | amount of metered electricity delivered by the alternative | 14 | | retail electrical supplier to retail customers for which | 15 | | the supplier has a compliance obligation within the | 16 | | service territory during the compliance period. | 17 | | (4) Through May 31, 2017, all alternative compliance | 18 | | payments by alternative retail electric suppliers shall be | 19 | | deposited in the Illinois Power Agency Renewable Energy | 20 | | Resources Fund and used to purchase renewable energy | 21 | | credits, in accordance with Section 1-56 of the Illinois | 22 | | Power Agency Act. Beginning April 1, 2012 and by April 1 of | 23 | | each year thereafter, the Illinois Power Agency shall | 24 | | submit an annual report to the General Assembly, the | 25 | | Commission, and alternative retail electric suppliers that | 26 | | shall include, but not be limited to: |
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| 1 | | (A) the total amount of alternative compliance | 2 | | payments received in aggregate from alternative retail | 3 | | electric suppliers by planning year for all previous | 4 | | planning years in which the alternative compliance | 5 | | payment was in effect; | 6 | | (B) the amount of those payments utilized to | 7 | | purchased renewable energy credits itemized by the | 8 | | date of each procurement in which the payments were | 9 | | utilized; and | 10 | | (C) the unused and remaining balance in the Agency | 11 | | Renewable Energy Resources Fund attributable to those | 12 | | payments. | 13 | | (4.5) Beginning with the delivery year commencing June | 14 | | 1, 2017, all alternative compliance payments by | 15 | | alternative retail electric suppliers shall be remitted to | 16 | | the applicable electric utility. To facilitate this | 17 | | remittance, each electric utility shall file a tariff with | 18 | | the Commission no later than 30 days following the | 19 | | effective date of this amendatory Act of the 99th General | 20 | | Assembly, which the Commission shall approve, after notice | 21 | | and hearing, no later than 45 days after its filing. The | 22 | | Illinois Power Agency shall use such payments to increase | 23 | | the amount of renewable energy resources otherwise to be | 24 | | procured under subsection (c) of Section 1-75 of the | 25 | | Illinois Power Agency Act. | 26 | | (5) The Commission, in consultation with the Illinois |
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| 1 | | Power Agency, shall establish a process or proceeding to | 2 | | consider the impact of a federal renewable portfolio | 3 | | standard, if enacted, on the operation of the alternative | 4 | | compliance mechanism, which shall include, but not be | 5 | | limited to, developing, to the extent permitted by the | 6 | | applicable federal statute, an appropriate methodology to | 7 | | apportion renewable energy credits retired as a result of | 8 | | alternative compliance payments made in accordance with | 9 | | this Section. The Commission shall commence any such | 10 | | process or proceeding within 35 days after enactment of a | 11 | | federal renewable portfolio standard. | 12 | | (e) Each alternative retail electric supplier shall, by | 13 | | September 1, 2010 and by September 1 of each year thereafter, | 14 | | prepare and submit to the Commission a report, in a format to | 15 | | be specified by the Commission, that provides information | 16 | | certifying compliance by the alternative retail electric | 17 | | supplier with this Section, including copies of all PJM-GATS | 18 | | and M-RETS reports, and documentation relating to banking, | 19 | | retiring renewable energy credits, and any other information | 20 | | that the Commission determines necessary to ensure compliance | 21 | | with this Section. | 22 | | An alternative retail electric supplier may file | 23 | | commercially or financially sensitive information or trade | 24 | | secrets with the Commission as provided under the rules of the | 25 | | Commission. To be filed confidentially, the information shall | 26 | | be accompanied by an affidavit that sets forth both the |
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| 1 | | reasons for the confidentiality and a public synopsis of the | 2 | | information. | 3 | | (f) The Commission may initiate a contested case to review | 4 | | allegations that the alternative retail electric supplier has | 5 | | violated this Section, including an order issued or rule | 6 | | promulgated under this Section. In any such proceeding, the | 7 | | alternative retail electric supplier shall have the burden of | 8 | | proof. If the Commission finds, after notice and hearing, that | 9 | | an alternative retail electric supplier has violated this | 10 | | Section, then the Commission shall issue an order requiring | 11 | | the alternative retail electric supplier to: | 12 | | (1) immediately comply with this Section; and | 13 | | (2) if the violation involves a failure to procure the | 14 | | requisite quantity of renewable energy resources or pay | 15 | | the applicable alternative compliance payment by the | 16 | | annual deadline, the Commission shall require the | 17 | | alternative retail electric supplier to double the | 18 | | applicable alternative compliance payment that would | 19 | | otherwise be required to bring the alternative retail | 20 | | electric supplier into compliance with this Section. | 21 | | If an alternative retail electric supplier fails to comply | 22 | | with the renewable energy resource portfolio requirement in | 23 | | this Section more than once in a 5-year period, then the | 24 | | Commission shall revoke the alternative electric supplier's | 25 | | certificate of service authority. The Commission shall not | 26 | | accept an application for a certificate of service authority |
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| 1 | | from an alternative retail electric supplier that has lost | 2 | | certification under this subsection (f), or any corporate | 3 | | affiliate thereof, for at least one year after the date of | 4 | | revocation. | 5 | | (g) All of the provisions of this Section apply to | 6 | | electric utilities operating outside their service area except | 7 | | under item (2) of subsection (a) of this Section the quantity | 8 | | of renewable energy resources shall be measured as a | 9 | | percentage of the actual amount of electricity | 10 | | (megawatt-hours) supplied in the State outside of the | 11 | | utility's service territory during the 12-month period June 1 | 12 | | through May 31, commencing June 1, 2009, and the comparable | 13 | | 12-month period in each year thereafter except as provided in | 14 | | item (6) of subsection (a) of this Section. | 15 | | If any such utility fails to procure the requisite | 16 | | quantity of renewable energy resources by the annual deadline, | 17 | | then the Commission shall require the utility to double the | 18 | | alternative compliance payment that would otherwise be | 19 | | required to bring the utility into compliance with this | 20 | | Section. | 21 | | If any such utility fails to comply with the renewable | 22 | | energy resource portfolio requirement in this Section more | 23 | | than once in a 5-year period, then the Commission shall order | 24 | | the utility to cease all sales outside of the utility's | 25 | | service territory for a period of at least one year. | 26 | | (h) The provisions of this Section and the provisions of |
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| 1 | | subsection (d) of Section 16-115 of this Act relating to | 2 | | procurement of renewable energy resources , and the provisions | 3 | | of paragraph (6) of subsection (c) of Section 1-75 of the | 4 | | Illinois Power Agency Act relating to the payments by retail | 5 | | customers of a utility for the purpose of recovering the | 6 | | utility's costs for procuring renewable energy credits, shall | 7 | | not apply to an alternative retail electric supplier , or the | 8 | | retail customers of an alternative retail electric supplier, | 9 | | that operates a combined heat and power system in this State or | 10 | | that has a corporate affiliate that operates such a combined | 11 | | heat and power system in this State that supplies electricity | 12 | | primarily to or for the benefit of: (i) facilities owned by the | 13 | | supplier, its subsidiary, or other corporate affiliate; (ii) | 14 | | facilities electrically integrated with the electrical system | 15 | | of facilities owned by the supplier, its subsidiary, or other | 16 | | corporate affiliate; or (iii) facilities that are adjacent to | 17 | | the site on which the combined heat and power system is | 18 | | located. | 19 | | (i) The obligations of alternative retail electric | 20 | | suppliers and electric utilities operating outside their | 21 | | service territories to procure renewable energy resources, | 22 | | make alternative compliance payments, and file annual reports, | 23 | | and the obligations of the Commission to determine and post | 24 | | alternative compliance payment rates, shall terminate after | 25 | | May 31, 2019, provided that alternative retail electric | 26 | | suppliers and electric utilities operating outside their |
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| 1 | | service territories shall be obligated to make all alternative | 2 | | compliance payments that they were obligated to pay for | 3 | | periods through and including May 31, 2019, but were not paid | 4 | | as of that date. The Commission shall continue to enforce the | 5 | | payment of unpaid alternative compliance payments in | 6 | | accordance with subsections (f) and (g) of this Section. All | 7 | | alternative compliance payments made after May 31, 2016 shall | 8 | | be remitted to the applicable electric utility and used to | 9 | | purchase renewable energy credits, in accordance with Section | 10 | | 1-75 of the Illinois Power Agency Act. | 11 | | This subsection (i) is intended to accommodate the | 12 | | transition to the procurement of renewable energy resources | 13 | | for all retail customers in the amounts specified under | 14 | | subsection (c) of Section 1-75 of the Illinois Power Agency | 15 | | Act and Section 16-111.5 of this Act, including but not | 16 | | limited to the transition to a single charge applicable to all | 17 | | retail customers to recover the costs of these resources. Each | 18 | | alternative retail electric supplier shall certify in its | 19 | | annual reports filed pursuant to subsection (e) of this | 20 | | Section after May 31, 2019, that its retail customers are not | 21 | | paying the costs of alternative compliance payments or | 22 | | renewable energy resources that the alternative retail | 23 | | electric supplier is not required to remit or purchase under | 24 | | this Section. The Commission shall have the authority to | 25 | | initiate an emergency rulemaking to adopt rules regarding such | 26 | | certification. |
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| 1 | | (Source: P.A. 99-906, eff. 6-1-17 .) |
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