HB3744 94TH GENERAL ASSEMBLY

LRB094 07312 LJB 40441 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3744

Introduced 2/24/2005, by Rep. Arthur L. Turner

SYNOPSIS AS INTRODUCED:

220 ILCS 5/8-402.2 new

Amends the Public Utilities Act. Provides that each electric utility or alternative retail electric supplier shall provide sufficient renewable energy resources to comprise at least 2% of the total electricity that it supplies to its Illinois customers as of December 31, 2006, at least 4% of the total electricity that it supplies to its Illinois customers as of December 31, 2008, at least 6% of the total electricity that it supplies to its Illinois customers as of December 31, 2010, at least 8% of the total electricity that it supplies to its Illinois customers as of December 31, 2012, and at least 10% of the total electricity that it supplies to its Illinois customers as of December 31, 2014. Provides that, if an electric utility or alternative retail electric supplier does not purchase and supply all of the amounts of renewable energy specified, then the electric utility or alternative retail electric supplier shall pay a penalty of $25 per megawatthour each year for any shortfall in supply, which shall be deposited into the Renewable Energy Resources Trust Fund.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning utilities.

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

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

(220 ILCS 5/8-402.2 new)

Sec. 8-402.2. Renewable energy portfolio standards.

(a) "Renewable energy resources" shall have the meaning set forth in subsection (f) of Section 6-3 of The Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997. However, for the limited purposes of this Section, energy produced by methane recovered from landfills in Illinois may be counted as a renewable energy resource for up to, but no more than, 25% of the amount of renewable energy resources provided by the electric utility or alternative retail electric supplier in meeting the standards set forth in subsection (c).

(b) The objective of this Section is to ensure the development and use of renewable energy resources to advance the goals stated in Section 5 of the Illinois Resource Development and Energy Security Act.

(c) Each electric utility or alternative retail electric supplier shall provide sufficient renewable energy resources to comprise at least 2% of the total electricity (megawatthours) that it supplies to its Illinois customers as of December 31, 2006, at least 4% of the total electricity (megawatthours) that it supplies to its Illinois customers as of December 31, 2008, at least 6% of the total electricity (megawatthours) that it supplies to its Illinois customers as of December 31, 2010, at least 8% of the total electricity (megawatthours) that it supplies to its Illinois customers as of December 31, 2012, and at least 10% of the total electricity (megawatthours) that it supplies to its Illinois customers as of December 31, 2014. Such electric utilities or alternative retail electric suppliers shall report to the Commission on their compliance with these standards by April 1, 2006 and by April 1st of each succeeding year.

(d) In order to help achieve improved air quality, public health, and environmental quality for Illinois, renewable energy resources shall be counted for purposes of meeting the renewable energy portfolio standards set forth in subsection (c) only if they are generated from facilities located in this State or in a directly adjacent serious or severe ozone non-attainment area as designated by the United States Environmental Protection Agency. However, the renewable energy resources may be counted for purposes of the renewable energy portfolio standards after January 1, 2007 if generated from a facility in an adjacent state that has entered into an agreement with Illinois as provided in subsection (e) and the renewable energy resource provided meets the definition set forth in subsection (f) of Section 6-3 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997.

(e) Illinois officials may work with public officials in adjacent states to develop a regional agreement in which Illinois electric utilities and alternative retail electricity suppliers will be allowed, after January 1, 2007, to count for purposes of meeting the designated renewable energy portfolio standards set forth in subsection (c) some renewable energy resources generated in an adjacent state if that other state has enacted statutory renewable energy portfolio standards that are similar to the standards set forth in subsection (c) and that other state also allows renewable energy resources generated in Illinois to be counted toward meeting its statutory renewable energy portfolio standards on a similar basis. For the purposes of such an agreement, only those renewable energy resources meeting the definition set forth in subsection (f) of Section 6-3 of the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 may be included.

(f) Costs of obtaining renewable energy resources to meet the renewable energy portfolio standards, after January 1, 2007, pursuant to subsection (c), shall be recoverable by a utility from its ratepayers to the same extent as other fuel or purchase power costs as allowed by law after January 1, 2007.

(g) If an electric utility or alternative retail electric supplier does not purchase and supply all of the amounts of renewable energy specified by the standards in subsection (c), then the electric utility or alternative retail electric supplier shall pay a penalty of $25 per megawatthour each year for any shortfall in supply. That payment shall be deposited into the Renewable Energy Resources Trust Fund to be used by the Department of Commerce and Economic Opportunity for the purposes of supporting the actual development, construction, and utilization of renewable energy projects in Illinois. However, if the electric utility or alternative retail electric supplier compellingly demonstrates that renewable energy resources are not available in sufficient quantities to meet the renewable energy portfolio standards set forth in subsection (c), and makes such a force majeure showing as to the shortfall and any obstacles to availability, and if the Illinois Commerce Commission finds that the electric utility or alternative retail electric supplier, after notice and a hearing with an opportunity for the public to be heard, has, in fact, made such a compelling demonstration, then the electric utility or alternative retail electric supplier may avoid paying the penalty. The penalty payments shall be set aside in a separate escrow fund pending the hearing. In any case where the Commission finds that such a compelling demonstration has been made, the electric utility or alternative retail electric supplier must provide a mutually acceptable alternative means of developing and utilizing renewable energy resources in Illinois, subject to the review and approval of the Illinois Commerce Commission and the Department of Commerce and Economic Opportunity.