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Full Text of HB1943  97th General Assembly

HB1943ham001 97TH GENERAL ASSEMBLY

Rep. Ann Williams

Filed: 4/13/2011

 

 


 

 


 
09700HB1943ham001LRB097 08923 ASK 54450 a

1
AMENDMENT TO HOUSE BILL 1943

2    AMENDMENT NO. ______. Amend House Bill 1943 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-10, 1-56, and 1-75 as follows:
 
6    (20 ILCS 3855/1-10)
7    Sec. 1-10. Definitions.
8    "Agency" means the Illinois Power Agency.
9    "Agency loan agreement" means any agreement pursuant to
10which the Illinois Finance Authority agrees to loan the
11proceeds of revenue bonds issued with respect to a project to
12the Agency upon terms providing for loan repayment installments
13at least sufficient to pay when due all principal of, interest
14and premium, if any, on those revenue bonds, and providing for
15maintenance, insurance, and other matters in respect of the
16project.

 

 

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

 

 

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1gasification process to produce substitute natural gas, that
2sequesters at least 90% of the total carbon emissions that the
3facility would otherwise emit and that uses petroleum coke or
4coal as a feedstock, with all such coal having a high
5bituminous rank and greater than 1.7 pounds of sulfur per
6million btu content.
7    "Commission" means the Illinois Commerce Commission.
8    "Costs incurred in connection with the development and
9construction of a facility" means:
10        (1) the cost of acquisition of all real property and
11    improvements in connection therewith and equipment and
12    other property, rights, and easements acquired that are
13    deemed necessary for the operation and maintenance of the
14    facility;
15        (2) financing costs with respect to bonds, notes, and
16    other evidences of indebtedness of the Agency;
17        (3) all origination, commitment, utilization,
18    facility, placement, underwriting, syndication, credit
19    enhancement, and rating agency fees;
20        (4) engineering, design, procurement, consulting,
21    legal, accounting, title insurance, survey, appraisal,
22    escrow, trustee, collateral agency, interest rate hedging,
23    interest rate swap, capitalized interest and other
24    financing costs, and other expenses for professional
25    services; and
26        (5) the costs of plans, specifications, site study and

 

 

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1    investigation, installation, surveys, other Agency costs
2    and estimates of costs, and other expenses necessary or
3    incidental to determining the feasibility of any project,
4    together with such other expenses as may be necessary or
5    incidental to the financing, insuring, acquisition, and
6    construction of a specific project and placing that project
7    in operation.
8    "Department" means the Department of Commerce and Economic
9Opportunity.
10    "Director" means the Director of the Illinois Power Agency.
11    "Demand-response" means measures that decrease peak
12electricity demand or shift demand from peak to off-peak
13periods.
14    "Distributed renewable energy generation device" means a
15device that is:
16        (1) powered by wind, solar thermal energy,
17    photovoltaic cells and panels, biodiesel, crops and
18    untreated and unadulterated organic waste biomass, tree
19    waste, and hydropower that does not involve new
20    construction or significant expansion of hydropower dams;
21        (2) interconnected at the distribution system level of
22    either an electric utility as defined in this Section, an
23    alternative retail electric supplier as defined in Section
24    16-102 of the Public Utilities Act, a municipal utility as
25    defined in Section 3-105 of the Public Utilities Act, or a
26    rural electric cooperative as defined in Section 3-119 of

 

 

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1    the Public Utilities Act; and
2        (3) located on the customer side of the customer's
3    electric meter and is generally used to offset that
4    customer's electricity load.
5    "Energy efficiency" means measures that reduce the amount
6of electricity or natural gas required to achieve a given end
7use.
8    "Electric utility" has the same definition as found in
9Section 16-102 of the Public Utilities Act.
10    "Facility" means an electric generating unit or a
11co-generating unit that produces electricity along with
12related equipment necessary to connect the facility to an
13electric transmission or distribution system.
14    "Governmental aggregator" means one or more units of local
15government that individually or collectively procure
16electricity to serve residential retail electrical loads
17located within its or their jurisdiction.
18    "Local government" means a unit of local government as
19defined in Article VII of Section 1 of the Illinois
20Constitution.
21    "Municipality" means a city, village, or incorporated
22town.
23    "Person" means any natural person, firm, partnership,
24corporation, either domestic or foreign, company, association,
25limited liability company, joint stock company, or association
26and includes any trustee, receiver, assignee, or personal

 

 

09700HB1943ham001- 6 -LRB097 08923 ASK 54450 a

1representative thereof.
2    "Project" means the planning, bidding, and construction of
3a facility.
4    "Public utility" has the same definition as found in
5Section 3-105 of the Public Utilities Act.
6    "Real property" means any interest in land together with
7all structures, fixtures, and improvements thereon, including
8lands under water and riparian rights, any easements,
9covenants, licenses, leases, rights-of-way, uses, and other
10interests, together with any liens, judgments, mortgages, or
11other claims or security interests related to real property.
12    "Renewable energy credit" means a tradable credit that
13represents the environmental attributes of a certain amount of
14energy produced from a renewable energy resource.
15    "Renewable energy resources" includes energy and its
16associated renewable energy credit or renewable energy credits
17from wind, solar thermal energy, photovoltaic cells and panels,
18biodiesel, crops and untreated and unadulterated organic waste
19biomass, tree waste, hydropower that does not involve new
20construction or significant expansion of hydropower dams, and
21other alternative sources of environmentally preferable
22energy. For purposes of this Act, landfill gas produced in the
23State is considered a renewable energy resource. "Renewable
24energy resources" does not include the incineration or burning
25of tires, garbage, general household, institutional, and
26commercial waste, industrial lunchroom or office waste,

 

 

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1landscape waste other than tree waste, railroad crossties,
2utility poles, or construction or demolition debris, other than
3untreated and unadulterated waste wood.
4    "Revenue bond" means any bond, note, or other evidence of
5indebtedness issued by the Authority, the principal and
6interest of which is payable solely from revenues or income
7derived from any project or activity of the Agency.
8    "Sequester" means permanent storage of carbon dioxide by
9injecting it into a saline aquifer, a depleted gas reservoir,
10or an oil reservoir, directly or through an enhanced oil
11recovery process that may involve intermediate storage in a
12salt dome.
13    "Servicing agreement" means (i) in the case of an electric
14utility, an agreement between the owner of a clean coal
15facility and such electric utility, which agreement shall have
16terms and conditions meeting the requirements of paragraph (3)
17of subsection (d) of Section 1-75, and (ii) in the case of an
18alternative retail electric supplier, an agreement between the
19owner of a clean coal facility and such alternative retail
20electric supplier, which agreement shall have terms and
21conditions meeting the requirements of Section 16-115(d)(5) of
22the Public Utilities Act.
23    "Substitute natural gas" or "SNG" means a gas manufactured
24by gasification of hydrocarbon feedstock, which is
25substantially interchangeable in use and distribution with
26conventional natural gas.

 

 

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1    "Total resource cost test" or "TRC test" means a standard
2that is met if, for an investment in energy efficiency or
3demand-response measures, the benefit-cost ratio is greater
4than one. The benefit-cost ratio is the ratio of the net
5present value of the total benefits of the program to the net
6present value of the total costs as calculated over the
7lifetime of the measures. A total resource cost test compares
8the sum of avoided electric utility costs, representing the
9benefits that accrue to the system and the participant in the
10delivery of those efficiency measures, as well as other
11quantifiable societal benefits, including avoided natural gas
12utility costs, to the sum of all incremental costs of end-use
13measures that are implemented due to the program (including
14both utility and participant contributions), plus costs to
15administer, deliver, and evaluate each demand-side program, to
16quantify the net savings obtained by substituting the
17demand-side program for supply resources. In calculating
18avoided costs of power and energy that an electric utility
19would otherwise have had to acquire, reasonable estimates shall
20be included of financial costs likely to be imposed by future
21regulations and legislation on emissions of greenhouse gases.
22(Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09;
2395-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff.
248-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
 
25    (20 ILCS 3855/1-56)

 

 

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1    Sec. 1-56. Illinois Power Agency Renewable Energy
2Resources Fund.
3    (a) The Illinois Power Agency Renewable Energy Resources
4Fund is created as a special fund in the State treasury.
5    (b) The Illinois Power Agency Renewable Energy Resources
6Fund shall be administered by the Agency to procure renewable
7energy resources. Prior to June 1, 2011, resources procured
8pursuant to this Section shall be procured from facilities
9located in Illinois, provided the resources are available from
10those facilities. If resources are not available in Illinois,
11then they shall be procured in states that adjoin Illinois. If
12resources are not available in Illinois or in states that
13adjoin Illinois, then they may be purchased elsewhere.
14Beginning June 1, 2011, resources procured pursuant to this
15Section shall be procured from facilities located in Illinois
16or states that adjoin Illinois. If resources are not available
17in Illinois or in states that adjoin Illinois, then they may be
18procured elsewhere. To the extent available, at least 75% of
19these renewable energy resources shall come from wind
20generation. Of the renewable energy resources procured
21pursuant to this Section at least the following specified
22percentages shall come from photovoltaics on the following
23schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
24June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
25renewable energy resources procured pursuant to this Section at
26least the following percentages shall come from distributed

 

 

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1renewable energy generation devices: 0.5% by June 1, 2013,
20.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
3To the extent available, half of the renewable energy resources
4procured from distributed renewable energy generation shall
5come from devices of less than 25 kilowatts in nameplate
6capacity. Renewable energy resources procured from distributed
7generation devices may also count towards the required
8percentages for wind and solar photovoltaics. Procurement of
9renewable energy resources from distributed renewable energy
10generation devices shall be done on an annual basis through
11multi-year contracts of no less than 5 years.
12    The Agency shall create credit requirements for suppliers
13of distributed renewable energy. In order to minimize the
14administrative burden on contracting entities, the Agency
15shall solicit the use of third-party organizations to aggregate
16distributed renewable energy into groups of no less than one
17megawatt in installed capacity. These third-party
18organizations shall administer contracts with individual
19distributed renewable energy generation device owners. An
20individual distributed renewable energy generation device
21owner shall have the ability to measure the output of his or
22her distributed renewable energy generation device.
23    (c) The Agency shall procure renewable energy resources at
24least once each year in conjunction with a procurement event
25for electric utilities required to comply with Section 1-75 of
26the Act and shall, whenever possible, enter into long-term

 

 

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1contracts on an annual basis for a portion of the incremental
2requirement for the given procurement year.
3    (d) The price paid to procure renewable energy credits
4using monies from the Illinois Power Agency Renewable Energy
5Resources Fund shall not exceed the winning bid prices paid for
6like resources procured for electric utilities required to
7comply with Section 1-75 of this Act.
8    (e) All renewable energy credits procured using monies from
9the Illinois Power Agency Renewable Energy Resources Fund shall
10be permanently retired.
11    (f) The procurement process described in this Section is
12exempt from the requirements of the Illinois Procurement Code,
13pursuant to Section 20-10 of that Code.
14    (g) All disbursements from the Illinois Power Agency
15Renewable Energy Resources Fund shall be made only upon
16warrants of the Comptroller drawn upon the Treasurer as
17custodian of the Fund upon vouchers signed by the Director or
18by the person or persons designated by the Director for that
19purpose. The Comptroller is authorized to draw the warrant upon
20vouchers so signed. The Treasurer shall accept all warrants so
21signed and shall be released from liability for all payments
22made on those warrants.
23    (h) The Illinois Power Agency Renewable Energy Resources
24Fund shall not be subject to sweeps, administrative charges, or
25chargebacks, including, but not limited to, those authorized
26under Section 8h of the State Finance Act, that would in any

 

 

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1way result in the transfer of any funds from this Fund to any
2other fund of this State or in having any such funds utilized
3for any purpose other than the express purposes set forth in
4this Section.
5(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10;
696-1437, eff. 8-17-10.)
 
7    (20 ILCS 3855/1-75)
8    Sec. 1-75. Planning and Procurement Bureau. The Planning
9and Procurement Bureau has the following duties and
10responsibilities:
11        (a) The Planning and Procurement Bureau shall each
12    year, beginning in 2008, develop procurement plans and
13    conduct competitive procurement processes in accordance
14    with the requirements of Section 16-111.5 of the Public
15    Utilities Act for the eligible retail customers of electric
16    utilities that on December 31, 2005 provided electric
17    service to at least 100,000 customers in Illinois. For the
18    purposes of this Section, the term "eligible retail
19    customers" has the same definition as found in Section
20    16-111.5(a) of the Public Utilities Act.
21            (1) The Agency shall each year, beginning in 2008,
22        as needed, issue a request for qualifications for
23        experts or expert consulting firms to develop the
24        procurement plans in accordance with Section 16-111.5
25        of the Public Utilities Act. In order to qualify an

 

 

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1        expert or expert consulting firm must have:
2                (A) direct previous experience assembling
3            large-scale power supply plans or portfolios for
4            end-use customers;
5                (B) an advanced degree in economics,
6            mathematics, engineering, risk management, or a
7            related area of study;
8                (C) 10 years of experience in the electricity
9            sector, including managing supply risk;
10                (D) expertise in wholesale electricity market
11            rules, including those established by the Federal
12            Energy Regulatory Commission and regional
13            transmission organizations;
14                (E) expertise in credit protocols and
15            familiarity with contract protocols;
16                (F) adequate resources to perform and fulfill
17            the required functions and responsibilities; and
18                (G) the absence of a conflict of interest and
19            inappropriate bias for or against potential
20            bidders or the affected electric utilities.
21            (2) The Agency shall each year, as needed, issue a
22        request for qualifications for a procurement
23        administrator to conduct the competitive procurement
24        processes in accordance with Section 16-111.5 of the
25        Public Utilities Act. In order to qualify an expert or
26        expert consulting firm must have:

 

 

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1                (A) direct previous experience administering a
2            large-scale competitive procurement process;
3                (B) an advanced degree in economics,
4            mathematics, engineering, or a related area of
5            study;
6                (C) 10 years of experience in the electricity
7            sector, including risk management experience;
8                (D) expertise in wholesale electricity market
9            rules, including those established by the Federal
10            Energy Regulatory Commission and regional
11            transmission organizations;
12                (E) expertise in credit and contract
13            protocols;
14                (F) adequate resources to perform and fulfill
15            the required functions and responsibilities; and
16                (G) the absence of a conflict of interest and
17            inappropriate bias for or against potential
18            bidders or the affected electric utilities.
19            (3) The Agency shall provide affected utilities
20        and other interested parties with the lists of
21        qualified experts or expert consulting firms
22        identified through the request for qualifications
23        processes that are under consideration to develop the
24        procurement plans and to serve as the procurement
25        administrator. The Agency shall also provide each
26        qualified expert's or expert consulting firm's

 

 

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1        response to the request for qualifications. All
2        information provided under this subparagraph shall
3        also be provided to the Commission. The Agency may
4        provide by rule for fees associated with supplying the
5        information to utilities and other interested parties.
6        These parties shall, within 5 business days, notify the
7        Agency in writing if they object to any experts or
8        expert consulting firms on the lists. Objections shall
9        be based on:
10                (A) failure to satisfy qualification criteria;
11                (B) identification of a conflict of interest;
12            or
13                (C) evidence of inappropriate bias for or
14            against potential bidders or the affected
15            utilities.
16            The Agency shall remove experts or expert
17        consulting firms from the lists within 10 days if there
18        is a reasonable basis for an objection and provide the
19        updated lists to the affected utilities and other
20        interested parties. If the Agency fails to remove an
21        expert or expert consulting firm from a list, an
22        objecting party may seek review by the Commission
23        within 5 days thereafter by filing a petition, and the
24        Commission shall render a ruling on the petition within
25        10 days. There is no right of appeal of the
26        Commission's ruling.

 

 

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1            (4) The Agency shall issue requests for proposals
2        to the qualified experts or expert consulting firms to
3        develop a procurement plan for the affected utilities
4        and to serve as procurement administrator.
5            (5) The Agency shall select an expert or expert
6        consulting firm to develop procurement plans based on
7        the proposals submitted and shall award one-year
8        contracts to those selected with an option for the
9        Agency for a one-year renewal.
10            (6) The Agency shall select an expert or expert
11        consulting firm, with approval of the Commission, to
12        serve as procurement administrator based on the
13        proposals submitted. If the Commission rejects, within
14        5 days, the Agency's selection, the Agency shall submit
15        another recommendation within 3 days based on the
16        proposals submitted. The Agency shall award a one-year
17        contract to the expert or expert consulting firm so
18        selected with Commission approval with an option for
19        the Agency for a one-year renewal.
20        (b) The experts or expert consulting firms retained by
21    the Agency shall, as appropriate, prepare procurement
22    plans, and conduct a competitive procurement process as
23    prescribed in Section 16-111.5 of the Public Utilities Act,
24    to ensure adequate, reliable, affordable, efficient, and
25    environmentally sustainable electric service at the lowest
26    total cost over time, taking into account any benefits of

 

 

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1    price stability, for eligible retail customers of electric
2    utilities that on December 31, 2005 provided electric
3    service to at least 100,000 customers in the State of
4    Illinois.
5        (c) Renewable portfolio standard.
6            (1) The procurement plans shall include
7        cost-effective renewable energy resources. A minimum
8        percentage of each utility's total supply to serve the
9        load of eligible retail customers, as defined in
10        Section 16-111.5(a) of the Public Utilities Act,
11        procured for each of the following years shall be
12        generated from cost-effective renewable energy
13        resources: at least 2% by June 1, 2008; at least 4% by
14        June 1, 2009; at least 5% by June 1, 2010; at least 6%
15        by June 1, 2011; at least 7% by June 1, 2012; at least
16        8% by June 1, 2013; at least 9% by June 1, 2014; at
17        least 10% by June 1, 2015; and increasing by at least
18        1.5% each year thereafter to at least 25% by June 1,
19        2025. To the extent that it is available, at least 75%
20        of the renewable energy resources used to meet these
21        standards shall come from wind generation and,
22        beginning on June 1, 2011, at least the following
23        percentages of the renewable energy resources used to
24        meet these standards shall come from photovoltaics on
25        the following schedule: 0.5% by June 1, 2012, 1.5% by
26        June 1, 2013; 3% by June 1, 2014; and 6% by June 1,

 

 

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1        2015 and thereafter. Of the renewable energy resources
2        procured pursuant to this Section at least the
3        following percentages shall come from distributed
4        renewable energy generation devices: 0.5% by June 1,
5        2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 and
6        thereafter. To the extent available, half of the
7        renewable energy resources procured from distributed
8        renewable energy generation shall come from devices of
9        less than 25 kilowatts in nameplate capacity.
10        Renewable energy resources procured from distributed
11        generation devices may also count towards the required
12        percentages for wind and solar photovoltaics.
13        Procurement of renewable energy resources from
14        distributed renewable energy generation devices shall
15        be done on an annual basis through multi-year contracts
16        of no less than 5 years.
17            The Agency shall create credit requirements for
18        suppliers of distributed renewable energy. In order to
19        minimize the administrative burden on contracting
20        entities, the Agency shall solicit the use of
21        third-party organizations to aggregate distributed
22        renewable energy into groups of no less than one
23        megawatt in installed capacity. These third-party
24        organizations shall administer contracts with
25        individual distributed renewable energy generation
26        device owners. An individual distributed renewable

 

 

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1        energy generation device owner shall have the ability
2        to measure the output of his or her distributed
3        renewable energy generation device. For purposes of
4        this subsection (c), "cost-effective" means that the
5        costs of procuring renewable energy resources do not
6        cause the limit stated in paragraph (2) of this
7        subsection (c) to be exceeded and do not exceed
8        benchmarks based on market prices for renewable energy
9        resources in the region, which shall be developed by
10        the procurement administrator, in consultation with
11        the Commission staff, Agency staff, and the
12        procurement monitor and shall be subject to Commission
13        review and approval.
14            (2) For purposes of this subsection (c), the
15        required procurement of cost-effective renewable
16        energy resources for a particular year shall be
17        measured as a percentage of the actual amount of
18        electricity (megawatt-hours) supplied by the electric
19        utility to eligible retail customers in the planning
20        year ending immediately prior to the procurement. For
21        purposes of this subsection (c), the amount paid per
22        kilowatthour means the total amount paid for electric
23        service expressed on a per kilowatthour basis. For
24        purposes of this subsection (c), the total amount paid
25        for electric service includes without limitation
26        amounts paid for supply, transmission, distribution,

 

 

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1        surcharges, and add-on taxes.
2            Notwithstanding the requirements of this
3        subsection (c), the total of renewable energy
4        resources procured pursuant to the procurement plan
5        for any single year shall be reduced by an amount
6        necessary to limit the annual estimated average net
7        increase due to the costs of these resources included
8        in the amounts paid by eligible retail customers in
9        connection with electric service to:
10                (A) in 2008, no more than 0.5% of the amount
11            paid per kilowatthour by those customers during
12            the year ending May 31, 2007;
13                (B) in 2009, the greater of an additional 0.5%
14            of the amount paid per kilowatthour by those
15            customers during the year ending May 31, 2008 or 1%
16            of the amount paid per kilowatthour by those
17            customers during the year ending May 31, 2007;
18                (C) in 2010, the greater of an additional 0.5%
19            of the amount paid per kilowatthour by those
20            customers during the year ending May 31, 2009 or
21            1.5% of the amount paid per kilowatthour by those
22            customers during the year ending May 31, 2007;
23                (D) in 2011, the greater of an additional 0.5%
24            of the amount paid per kilowatthour by those
25            customers during the year ending May 31, 2010 or 2%
26            of the amount paid per kilowatthour by those

 

 

09700HB1943ham001- 21 -LRB097 08923 ASK 54450 a

1            customers during the year ending May 31, 2007; and
2                (E) thereafter, the amount of renewable energy
3            resources procured pursuant to the procurement
4            plan for any single year shall be reduced by an
5            amount necessary to limit the estimated average
6            net increase due to the cost of these resources
7            included in the amounts paid by eligible retail
8            customers in connection with electric service to
9            no more than the greater of 2.015% of the amount
10            paid per kilowatthour by those customers during
11            the year ending May 31, 2007 or the incremental
12            amount per kilowatthour paid for these resources
13            in 2011.
14            No later than June 30, 2011, the Commission shall
15        review the limitation on the amount of renewable energy
16        resources procured pursuant to this subsection (c) and
17        report to the General Assembly its findings as to
18        whether that limitation unduly constrains the
19        procurement of cost-effective renewable energy
20        resources.
21            (3) Through June 1, 2011, renewable energy
22        resources shall be counted for the purpose of meeting
23        the renewable energy standards set forth in paragraph
24        (1) of this subsection (c) only if they are generated
25        from facilities located in the State, provided that
26        cost-effective renewable energy resources are

 

 

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1        available from those facilities. If those
2        cost-effective resources are not available in
3        Illinois, they shall be procured in states that adjoin
4        Illinois and may be counted towards compliance. If
5        those cost-effective resources are not available in
6        Illinois or in states that adjoin Illinois, they shall
7        be purchased elsewhere and shall be counted towards
8        compliance. After June 1, 2011, cost-effective
9        renewable energy resources located in Illinois and in
10        states that adjoin Illinois may be counted towards
11        compliance with the standards set forth in paragraph
12        (1) of this subsection (c). If those cost-effective
13        resources are not available in Illinois or in states
14        that adjoin Illinois, they shall be purchased
15        elsewhere and shall be counted towards compliance.
16            (4) The electric utility shall retire all
17        renewable energy credits used to comply with the
18        standard.
19            (5) Beginning with the year commencing June 1,
20        2010, an electric utility subject to this subsection
21        (c) shall apply the lesser of the maximum alternative
22        compliance payment rate or the most recent estimated
23        alternative compliance payment rate for its service
24        territory for the corresponding compliance period,
25        established pursuant to subsection (d) of Section
26        16-115D of the Public Utilities Act to its retail

 

 

09700HB1943ham001- 23 -LRB097 08923 ASK 54450 a

1        customers that take service pursuant to the electric
2        utility's hourly pricing tariff or tariffs. The
3        electric utility shall retain all amounts collected as
4        a result of the application of the alternative
5        compliance payment rate or rates to such customers,
6        and, beginning in 2011, the utility shall include in
7        the information provided under item (1) of subsection
8        (d) of Section 16-111.5 of the Public Utilities Act the
9        amounts collected under the alternative compliance
10        payment rate or rates for the prior year ending May 31.
11        Notwithstanding any limitation on the procurement of
12        renewable energy resources imposed by item (2) of this
13        subsection (c), the Agency shall increase its spending
14        on the purchase of renewable energy resources to be
15        procured by the electric utility for the next plan year
16        by an amount equal to the amounts collected by the
17        utility under the alternative compliance payment rate
18        or rates in the prior year ending May 31.
19    (d) Clean coal portfolio standard.
20        (1) The procurement plans shall include electricity
21    generated using clean coal. Each utility shall enter into
22    one or more sourcing agreements with the initial clean coal
23    facility, as provided in paragraph (3) of this subsection
24    (d), covering electricity generated by the initial clean
25    coal facility representing at least 5% of each utility's
26    total supply to serve the load of eligible retail customers

 

 

09700HB1943ham001- 24 -LRB097 08923 ASK 54450 a

1    in 2015 and each year thereafter, as described in paragraph
2    (3) of this subsection (d), subject to the limits specified
3    in paragraph (2) of this subsection (d). It is the goal of
4    the State that by January 1, 2025, 25% of the electricity
5    used in the State shall be generated by cost-effective
6    clean coal facilities. For purposes of this subsection (d),
7    "cost-effective" means that the expenditures pursuant to
8    such sourcing agreements do not cause the limit stated in
9    paragraph (2) of this subsection (d) to be exceeded and do
10    not exceed cost-based benchmarks, which shall be developed
11    to assess all expenditures pursuant to such sourcing
12    agreements covering electricity generated by clean coal
13    facilities, other than the initial clean coal facility, by
14    the procurement administrator, in consultation with the
15    Commission staff, Agency staff, and the procurement
16    monitor and shall be subject to Commission review and
17    approval.
18            (A) A utility party to a sourcing agreement shall
19        immediately retire any emission credits that it
20        receives in connection with the electricity covered by
21        such agreement.
22            (B) Utilities shall maintain adequate records
23        documenting the purchases under the sourcing agreement
24        to comply with this subsection (d) and shall file an
25        accounting with the load forecast that must be filed
26        with the Agency by July 15 of each year, in accordance

 

 

09700HB1943ham001- 25 -LRB097 08923 ASK 54450 a

1        with subsection (d) of Section 16-111.5 of the Public
2        Utilities Act.
3            (C) A utility shall be deemed to have complied with
4        the clean coal portfolio standard specified in this
5        subsection (d) if the utility enters into a sourcing
6        agreement as required by this subsection (d).
7        (2) For purposes of this subsection (d), the required
8    execution of sourcing agreements with the initial clean
9    coal facility for a particular year shall be measured as a
10    percentage of the actual amount of electricity
11    (megawatt-hours) supplied by the electric utility to
12    eligible retail customers in the planning year ending
13    immediately prior to the agreement's execution. For
14    purposes of this subsection (d), the amount paid per
15    kilowatthour means the total amount paid for electric
16    service expressed on a per kilowatthour basis. For purposes
17    of this subsection (d), the total amount paid for electric
18    service includes without limitation amounts paid for
19    supply, transmission, distribution, surcharges and add-on
20    taxes.
21        Notwithstanding the requirements of this subsection
22    (d), the total amount paid under sourcing agreements with
23    clean coal facilities pursuant to the procurement plan for
24    any given year shall be reduced by an amount necessary to
25    limit the annual estimated average net increase due to the
26    costs of these resources included in the amounts paid by

 

 

09700HB1943ham001- 26 -LRB097 08923 ASK 54450 a

1    eligible retail customers in connection with electric
2    service to:
3                (A) in 2010, no more than 0.5% of the amount
4            paid per kilowatthour by those customers during
5            the year ending May 31, 2009;
6                (B) in 2011, the greater of an additional 0.5%
7            of the amount paid per kilowatthour by those
8            customers during the year ending May 31, 2010 or 1%
9            of the amount paid per kilowatthour by those
10            customers during the year ending May 31, 2009;
11                (C) in 2012, the greater of an additional 0.5%
12            of the amount paid per kilowatthour by those
13            customers during the year ending May 31, 2011 or
14            1.5% of the amount paid per kilowatthour by those
15            customers during the year ending May 31, 2009;
16                (D) in 2013, the greater of an additional 0.5%
17            of the amount paid per kilowatthour by those
18            customers during the year ending May 31, 2012 or 2%
19            of the amount paid per kilowatthour by those
20            customers during the year ending May 31, 2009; and
21                (E) thereafter, the total amount paid under
22            sourcing agreements with clean coal facilities
23            pursuant to the procurement plan for any single
24            year shall be reduced by an amount necessary to
25            limit the estimated average net increase due to the
26            cost of these resources included in the amounts

 

 

09700HB1943ham001- 27 -LRB097 08923 ASK 54450 a

1            paid by eligible retail customers in connection
2            with electric service to no more than the greater
3            of (i) 2.015% of the amount paid per kilowatthour
4            by those customers during the year ending May 31,
5            2009 or (ii) the incremental amount per
6            kilowatthour paid for these resources in 2013.
7            These requirements may be altered only as provided
8            by statute. No later than June 30, 2015, the
9            Commission shall review the limitation on the
10            total amount paid under sourcing agreements, if
11            any, with clean coal facilities pursuant to this
12            subsection (d) and report to the General Assembly
13            its findings as to whether that limitation unduly
14            constrains the amount of electricity generated by
15            cost-effective clean coal facilities that is
16            covered by sourcing agreements.
17        (3) Initial clean coal facility. In order to promote
18    development of clean coal facilities in Illinois, each
19    electric utility subject to this Section shall execute a
20    sourcing agreement to source electricity from a proposed
21    clean coal facility in Illinois (the "initial clean coal
22    facility") that will have a nameplate capacity of at least
23    500 MW when commercial operation commences, that has a
24    final Clean Air Act permit on the effective date of this
25    amendatory Act of the 95th General Assembly, and that will
26    meet the definition of clean coal facility in Section 1-10

 

 

09700HB1943ham001- 28 -LRB097 08923 ASK 54450 a

1    of this Act when commercial operation commences. The
2    sourcing agreements with this initial clean coal facility
3    shall be subject to both approval of the initial clean coal
4    facility by the General Assembly and satisfaction of the
5    requirements of paragraph (4) of this subsection (d) and
6    shall be executed within 90 days after any such approval by
7    the General Assembly. The Agency and the Commission shall
8    have authority to inspect all books and records associated
9    with the initial clean coal facility during the term of
10    such a sourcing agreement. A utility's sourcing agreement
11    for electricity produced by the initial clean coal facility
12    shall include:
13            (A) a formula contractual price (the "contract
14        price") approved pursuant to paragraph (4) of this
15        subsection (d), which shall:
16                (i) be determined using a cost of service
17            methodology employing either a level or deferred
18            capital recovery component, based on a capital
19            structure consisting of 45% equity and 55% debt,
20            and a return on equity as may be approved by the
21            Federal Energy Regulatory Commission, which in any
22            case may not exceed the lower of 11.5% or the rate
23            of return approved by the General Assembly
24            pursuant to paragraph (4) of this subsection (d);
25            and
26                (ii) provide that all miscellaneous net

 

 

09700HB1943ham001- 29 -LRB097 08923 ASK 54450 a

1            revenue, including but not limited to net revenue
2            from the sale of emission allowances, if any,
3            substitute natural gas, if any, grants or other
4            support provided by the State of Illinois or the
5            United States Government, firm transmission
6            rights, if any, by-products produced by the
7            facility, energy or capacity derived from the
8            facility and not covered by a sourcing agreement
9            pursuant to paragraph (3) of this subsection (d) or
10            item (5) of subsection (d) of Section 16-115 of the
11            Public Utilities Act, whether generated from the
12            synthesis gas derived from coal, from SNG, or from
13            natural gas, shall be credited against the revenue
14            requirement for this initial clean coal facility;
15            (B) power purchase provisions, which shall:
16                (i) provide that the utility party to such
17            sourcing agreement shall pay the contract price
18            for electricity delivered under such sourcing
19            agreement;
20                (ii) require delivery of electricity to the
21            regional transmission organization market of the
22            utility that is party to such sourcing agreement;
23                (iii) require the utility party to such
24            sourcing agreement to buy from the initial clean
25            coal facility in each hour an amount of energy
26            equal to all clean coal energy made available from

 

 

09700HB1943ham001- 30 -LRB097 08923 ASK 54450 a

1            the initial clean coal facility during such hour
2            times a fraction, the numerator of which is such
3            utility's retail market sales of electricity
4            (expressed in kilowatthours sold) in the State
5            during the prior calendar month and the
6            denominator of which is the total retail market
7            sales of electricity (expressed in kilowatthours
8            sold) in the State by utilities during such prior
9            month and the sales of electricity (expressed in
10            kilowatthours sold) in the State by alternative
11            retail electric suppliers during such prior month
12            that are subject to the requirements of this
13            subsection (d) and paragraph (5) of subsection (d)
14            of Section 16-115 of the Public Utilities Act,
15            provided that the amount purchased by the utility
16            in any year will be limited by paragraph (2) of
17            this subsection (d); and
18                (iv) be considered pre-existing contracts in
19            such utility's procurement plans for eligible
20            retail customers;
21            (C) contract for differences provisions, which
22        shall:
23                (i) require the utility party to such sourcing
24            agreement to contract with the initial clean coal
25            facility in each hour with respect to an amount of
26            energy equal to all clean coal energy made

 

 

09700HB1943ham001- 31 -LRB097 08923 ASK 54450 a

1            available from the initial clean coal facility
2            during such hour times a fraction, the numerator of
3            which is such utility's retail market sales of
4            electricity (expressed in kilowatthours sold) in
5            the utility's service territory in the State
6            during the prior calendar month and the
7            denominator of which is the total retail market
8            sales of electricity (expressed in kilowatthours
9            sold) in the State by utilities during such prior
10            month and the sales of electricity (expressed in
11            kilowatthours sold) in the State by alternative
12            retail electric suppliers during such prior month
13            that are subject to the requirements of this
14            subsection (d) and paragraph (5) of subsection (d)
15            of Section 16-115 of the Public Utilities Act,
16            provided that the amount paid by the utility in any
17            year will be limited by paragraph (2) of this
18            subsection (d);
19                (ii) provide that the utility's payment
20            obligation in respect of the quantity of
21            electricity determined pursuant to the preceding
22            clause (i) shall be limited to an amount equal to
23            (1) the difference between the contract price
24            determined pursuant to subparagraph (A) of
25            paragraph (3) of this subsection (d) and the
26            day-ahead price for electricity delivered to the

 

 

09700HB1943ham001- 32 -LRB097 08923 ASK 54450 a

1            regional transmission organization market of the
2            utility that is party to such sourcing agreement
3            (or any successor delivery point at which such
4            utility's supply obligations are financially
5            settled on an hourly basis) (the "reference
6            price") on the day preceding the day on which the
7            electricity is delivered to the initial clean coal
8            facility busbar, multiplied by (2) the quantity of
9            electricity determined pursuant to the preceding
10            clause (i); and
11                (iii) not require the utility to take physical
12            delivery of the electricity produced by the
13            facility;
14            (D) general provisions, which shall:
15                (i) specify a term of no more than 30 years,
16            commencing on the commercial operation date of the
17            facility;
18                (ii) provide that utilities shall maintain
19            adequate records documenting purchases under the
20            sourcing agreements entered into to comply with
21            this subsection (d) and shall file an accounting
22            with the load forecast that must be filed with the
23            Agency by July 15 of each year, in accordance with
24            subsection (d) of Section 16-111.5 of the Public
25            Utilities Act.
26                (iii) provide that all costs associated with

 

 

09700HB1943ham001- 33 -LRB097 08923 ASK 54450 a

1            the initial clean coal facility will be
2            periodically reported to the Federal Energy
3            Regulatory Commission and to purchasers in
4            accordance with applicable laws governing
5            cost-based wholesale power contracts;
6                (iv) permit the Illinois Power Agency to
7            assume ownership of the initial clean coal
8            facility, without monetary consideration and
9            otherwise on reasonable terms acceptable to the
10            Agency, if the Agency so requests no less than 3
11            years prior to the end of the stated contract term;
12                (v) require the owner of the initial clean coal
13            facility to provide documentation to the
14            Commission each year, starting in the facility's
15            first year of commercial operation, accurately
16            reporting the quantity of carbon emissions from
17            the facility that have been captured and
18            sequestered and report any quantities of carbon
19            released from the site or sites at which carbon
20            emissions were sequestered in prior years, based
21            on continuous monitoring of such sites. If, in any
22            year after the first year of commercial operation,
23            the owner of the facility fails to demonstrate that
24            the initial clean coal facility captured and
25            sequestered at least 50% of the total carbon
26            emissions that the facility would otherwise emit

 

 

09700HB1943ham001- 34 -LRB097 08923 ASK 54450 a

1            or that sequestration of emissions from prior
2            years has failed, resulting in the release of
3            carbon dioxide into the atmosphere, the owner of
4            the facility must offset excess emissions. Any
5            such carbon offsets must be permanent, additional,
6            verifiable, real, located within the State of
7            Illinois, and legally and practicably enforceable.
8            The cost of such offsets for the facility that are
9            not recoverable shall not exceed $15 million in any
10            given year. No costs of any such purchases of
11            carbon offsets may be recovered from a utility or
12            its customers. All carbon offsets purchased for
13            this purpose and any carbon emission credits
14            associated with sequestration of carbon from the
15            facility must be permanently retired. The initial
16            clean coal facility shall not forfeit its
17            designation as a clean coal facility if the
18            facility fails to fully comply with the applicable
19            carbon sequestration requirements in any given
20            year, provided the requisite offsets are
21            purchased. However, the Attorney General, on
22            behalf of the People of the State of Illinois, may
23            specifically enforce the facility's sequestration
24            requirement and the other terms of this contract
25            provision. Compliance with the sequestration
26            requirements and offset purchase requirements

 

 

09700HB1943ham001- 35 -LRB097 08923 ASK 54450 a

1            specified in paragraph (3) of this subsection (d)
2            shall be reviewed annually by an independent
3            expert retained by the owner of the initial clean
4            coal facility, with the advance written approval
5            of the Attorney General. The Commission may, in the
6            course of the review specified in item (vii),
7            reduce the allowable return on equity for the
8            facility if the facility wilfully fails to comply
9            with the carbon capture and sequestration
10            requirements set forth in this item (v);
11                (vi) include limits on, and accordingly
12            provide for modification of, the amount the
13            utility is required to source under the sourcing
14            agreement consistent with paragraph (2) of this
15            subsection (d);
16                (vii) require Commission review: (1) to
17            determine the justness, reasonableness, and
18            prudence of the inputs to the formula referenced in
19            subparagraphs (A)(i) through (A)(iii) of paragraph
20            (3) of this subsection (d), prior to an adjustment
21            in those inputs including, without limitation, the
22            capital structure and return on equity, fuel
23            costs, and other operations and maintenance costs
24            and (2) to approve the costs to be passed through
25            to customers under the sourcing agreement by which
26            the utility satisfies its statutory obligations.

 

 

09700HB1943ham001- 36 -LRB097 08923 ASK 54450 a

1            Commission review shall occur no less than every 3
2            years, regardless of whether any adjustments have
3            been proposed, and shall be completed within 9
4            months;
5                (viii) limit the utility's obligation to such
6            amount as the utility is allowed to recover through
7            tariffs filed with the Commission, provided that
8            neither the clean coal facility nor the utility
9            waives any right to assert federal pre-emption or
10            any other argument in response to a purported
11            disallowance of recovery costs;
12                (ix) limit the utility's or alternative retail
13            electric supplier's obligation to incur any
14            liability until such time as the facility is in
15            commercial operation and generating power and
16            energy and such power and energy is being delivered
17            to the facility busbar;
18                (x) provide that the owner or owners of the
19            initial clean coal facility, which is the
20            counterparty to such sourcing agreement, shall
21            have the right from time to time to elect whether
22            the obligations of the utility party thereto shall
23            be governed by the power purchase provisions or the
24            contract for differences provisions;
25                (xi) append documentation showing that the
26            formula rate and contract, insofar as they relate

 

 

09700HB1943ham001- 37 -LRB097 08923 ASK 54450 a

1            to the power purchase provisions, have been
2            approved by the Federal Energy Regulatory
3            Commission pursuant to Section 205 of the Federal
4            Power Act;
5                (xii) provide that any changes to the terms of
6            the contract, insofar as such changes relate to the
7            power purchase provisions, are subject to review
8            under the public interest standard applied by the
9            Federal Energy Regulatory Commission pursuant to
10            Sections 205 and 206 of the Federal Power Act; and
11                (xiii) conform with customary lender
12            requirements in power purchase agreements used as
13            the basis for financing non-utility generators.
14        (4) Effective date of sourcing agreements with the
15    initial clean coal facility. Any proposed sourcing
16    agreement with the initial clean coal facility shall not
17    become effective unless the following reports are prepared
18    and submitted and authorizations and approvals obtained:
19                (i) Facility cost report. The owner of the
20            initial clean coal facility shall submit to the
21            Commission, the Agency, and the General Assembly a
22            front-end engineering and design study, a facility
23            cost report, method of financing (including but
24            not limited to structure and associated costs),
25            and an operating and maintenance cost quote for the
26            facility (collectively "facility cost report"),

 

 

09700HB1943ham001- 38 -LRB097 08923 ASK 54450 a

1            which shall be prepared in accordance with the
2            requirements of this paragraph (4) of subsection
3            (d) of this Section, and shall provide the
4            Commission and the Agency access to the work
5            papers, relied upon documents, and any other
6            backup documentation related to the facility cost
7            report.
8                (ii) Commission report. Within 6 months
9            following receipt of the facility cost report, the
10            Commission, in consultation with the Agency, shall
11            submit a report to the General Assembly setting
12            forth its analysis of the facility cost report.
13            Such report shall include, but not be limited to, a
14            comparison of the costs associated with
15            electricity generated by the initial clean coal
16            facility to the costs associated with electricity
17            generated by other types of generation facilities,
18            an analysis of the rate impacts on residential and
19            small business customers over the life of the
20            sourcing agreements, and an analysis of the
21            likelihood that the initial clean coal facility
22            will commence commercial operation by and be
23            delivering power to the facility's busbar by 2016.
24            To assist in the preparation of its report, the
25            Commission, in consultation with the Agency, may
26            hire one or more experts or consultants, the costs

 

 

09700HB1943ham001- 39 -LRB097 08923 ASK 54450 a

1            of which shall be paid for by the owner of the
2            initial clean coal facility. The Commission and
3            Agency may begin the process of selecting such
4            experts or consultants prior to receipt of the
5            facility cost report.
6                (iii) General Assembly approval. The proposed
7            sourcing agreements shall not take effect unless,
8            based on the facility cost report and the
9            Commission's report, the General Assembly enacts
10            authorizing legislation approving (A) the
11            projected price, stated in cents per kilowatthour,
12            to be charged for electricity generated by the
13            initial clean coal facility, (B) the projected
14            impact on residential and small business
15            customers' bills over the life of the sourcing
16            agreements, and (C) the maximum allowable return
17            on equity for the project; and
18                (iv) Commission review. If the General
19            Assembly enacts authorizing legislation pursuant
20            to subparagraph (iii) approving a sourcing
21            agreement, the Commission shall, within 90 days of
22            such enactment, complete a review of such sourcing
23            agreement. During such time period, the Commission
24            shall implement any directive of the General
25            Assembly, resolve any disputes between the parties
26            to the sourcing agreement concerning the terms of

 

 

09700HB1943ham001- 40 -LRB097 08923 ASK 54450 a

1            such agreement, approve the form of such
2            agreement, and issue an order finding that the
3            sourcing agreement is prudent and reasonable.
4    The facility cost report shall be prepared as follows:
5            (A) The facility cost report shall be prepared by
6        duly licensed engineering and construction firms
7        detailing the estimated capital costs payable to one or
8        more contractors or suppliers for the engineering,
9        procurement and construction of the components
10        comprising the initial clean coal facility and the
11        estimated costs of operation and maintenance of the
12        facility. The facility cost report shall include:
13                (i) an estimate of the capital cost of the core
14            plant based on one or more front end engineering
15            and design studies for the gasification island and
16            related facilities. The core plant shall include
17            all civil, structural, mechanical, electrical,
18            control, and safety systems.
19                (ii) an estimate of the capital cost of the
20            balance of the plant, including any capital costs
21            associated with sequestration of carbon dioxide
22            emissions and all interconnects and interfaces
23            required to operate the facility, such as
24            transmission of electricity, construction or
25            backfeed power supply, pipelines to transport
26            substitute natural gas or carbon dioxide, potable

 

 

09700HB1943ham001- 41 -LRB097 08923 ASK 54450 a

1            water supply, natural gas supply, water supply,
2            water discharge, landfill, access roads, and coal
3            delivery.
4            The quoted construction costs shall be expressed
5        in nominal dollars as of the date that the quote is
6        prepared and shall include (1) capitalized financing
7        costs during construction, (2) taxes, insurance, and
8        other owner's costs, and (3) an assumed escalation in
9        materials and labor beyond the date as of which the
10        construction cost quote is expressed.
11            (B) The front end engineering and design study for
12        the gasification island and the cost study for the
13        balance of plant shall include sufficient design work
14        to permit quantification of major categories of
15        materials, commodities and labor hours, and receipt of
16        quotes from vendors of major equipment required to
17        construct and operate the clean coal facility.
18            (C) The facility cost report shall also include an
19        operating and maintenance cost quote that will provide
20        the estimated cost of delivered fuel, personnel,
21        maintenance contracts, chemicals, catalysts,
22        consumables, spares, and other fixed and variable
23        operations and maintenance costs.
24                (a) The delivered fuel cost estimate will be
25            provided by a recognized third party expert or
26            experts in the fuel and transportation industries.

 

 

09700HB1943ham001- 42 -LRB097 08923 ASK 54450 a

1                (b) The balance of the operating and
2            maintenance cost quote, excluding delivered fuel
3            costs will be developed based on the inputs
4            provided by duly licensed engineering and
5            construction firms performing the construction
6            cost quote, potential vendors under long-term
7            service agreements and plant operating agreements,
8            or recognized third party plant operator or
9            operators.
10                The operating and maintenance cost quote
11            (including the cost of the front end engineering
12            and design study) shall be expressed in nominal
13            dollars as of the date that the quote is prepared
14            and shall include (1) taxes, insurance, and other
15            owner's costs, and (2) an assumed escalation in
16            materials and labor beyond the date as of which the
17            operating and maintenance cost quote is expressed.
18            (D) The facility cost report shall also include (i)
19        an analysis of the initial clean coal facility's
20        ability to deliver power and energy into the applicable
21        regional transmission organization markets and (ii) an
22        analysis of the expected capacity factor for the
23        initial clean coal facility.
24            (E) Amounts paid to third parties unrelated to the
25        owner or owners of the initial clean coal facility to
26        prepare the core plant construction cost quote,

 

 

09700HB1943ham001- 43 -LRB097 08923 ASK 54450 a

1        including the front end engineering and design study,
2        and the operating and maintenance cost quote will be
3        reimbursed through Coal Development Bonds.
4        (5) Re-powering and retrofitting coal-fired power
5    plants previously owned by Illinois utilities to qualify as
6    clean coal facilities. During the 2009 procurement
7    planning process and thereafter, the Agency and the
8    Commission shall consider sourcing agreements covering
9    electricity generated by power plants that were previously
10    owned by Illinois utilities and that have been or will be
11    converted into clean coal facilities, as defined by Section
12    1-10 of this Act. Pursuant to such procurement planning
13    process, the owners of such facilities may propose to the
14    Agency sourcing agreements with utilities and alternative
15    retail electric suppliers required to comply with
16    subsection (d) of this Section and item (5) of subsection
17    (d) of Section 16-115 of the Public Utilities Act, covering
18    electricity generated by such facilities. In the case of
19    sourcing agreements that are power purchase agreements,
20    the contract price for electricity sales shall be
21    established on a cost of service basis. In the case of
22    sourcing agreements that are contracts for differences,
23    the contract price from which the reference price is
24    subtracted shall be established on a cost of service basis.
25    The Agency and the Commission may approve any such utility
26    sourcing agreements that do not exceed cost-based

 

 

09700HB1943ham001- 44 -LRB097 08923 ASK 54450 a

1    benchmarks developed by the procurement administrator, in
2    consultation with the Commission staff, Agency staff and
3    the procurement monitor, subject to Commission review and
4    approval. The Commission shall have authority to inspect
5    all books and records associated with these clean coal
6    facilities during the term of any such contract.
7        (6) Costs incurred under this subsection (d) or
8    pursuant to a contract entered into under this subsection
9    (d) shall be deemed prudently incurred and reasonable in
10    amount and the electric utility shall be entitled to full
11    cost recovery pursuant to the tariffs filed with the
12    Commission.
13        (e) The draft procurement plans are subject to public
14    comment, as required by Section 16-111.5 of the Public
15    Utilities Act.
16        (f) The Agency shall submit the final procurement plan
17    to the Commission. The Agency shall revise a procurement
18    plan if the Commission determines that it does not meet the
19    standards set forth in Section 16-111.5 of the Public
20    Utilities Act.
21        (g) The Agency shall assess fees to each affected
22    utility to recover the costs incurred in preparation of the
23    annual procurement plan for the utility.
24        (h) The Agency shall assess fees to each bidder to
25    recover the costs incurred in connection with a competitive
26    procurement process.

 

 

09700HB1943ham001- 45 -LRB097 08923 ASK 54450 a

1(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09;
296-159, eff. 8-10-09; 96-1437, eff. 8-17-10.)".