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1 | AN ACT concerning utilities.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by adding | ||||||||||||||||||||||||
5 | Section 16-132 as follows: | ||||||||||||||||||||||||
6 | (220 ILCS 5/16-132 new) | ||||||||||||||||||||||||
7 | Sec. 16-132. Renewable portfolio standards. | ||||||||||||||||||||||||
8 | (a) An alternative retail electric supplier shall be | ||||||||||||||||||||||||
9 | responsible for procuring cost-effective renewable energy | ||||||||||||||||||||||||
10 | resources as required under item (5) of subsection (d) of | ||||||||||||||||||||||||
11 | Section 16-115 of this Act as follows: | ||||||||||||||||||||||||
12 | (1) The definition of renewable energy resources | ||||||||||||||||||||||||
13 | contained in Section 1-10 of the Illinois Power Agency Act | ||||||||||||||||||||||||
14 | shall apply to all renewable energy resources required to | ||||||||||||||||||||||||
15 | be procured by alternative retail electric suppliers. | ||||||||||||||||||||||||
16 | (2) The quantity of renewable energy resources shall be | ||||||||||||||||||||||||
17 | measured as a percentage of the actual amount of | ||||||||||||||||||||||||
18 | electricity (megawatt-hours) supplied by the alternative | ||||||||||||||||||||||||
19 | retail electric supplier in the prior calendar year, as | ||||||||||||||||||||||||
20 | reported for that prior calendar year to the Commission. | ||||||||||||||||||||||||
21 | (3) The quantity of renewable energy resources will be | ||||||||||||||||||||||||
22 | in amounts at least equal to the percentages set forth in | ||||||||||||||||||||||||
23 | item (1) of subsection (c) of Section 1-75 of the Illinois |
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1 | Power Agency Act. | ||||||
2 | (4) The required procurement of renewable energy | ||||||
3 | resources by an alternative retail electric supplier | ||||||
4 | commences with the June 1, 2010 through May 31, 2011 | ||||||
5 | procurement year, and continues each year thereafter for | ||||||
6 | the comparable 12-month period; provided, however, that | ||||||
7 | retail contracts in effect prior to January 12, 2009 are | ||||||
8 | exempt from compliance with these requirements, provided | ||||||
9 | that the alternative retail electric supplier submits all | ||||||
10 | documentation needed by the Commission to determine the | ||||||
11 | actual amount of electricity supplied under contracts that | ||||||
12 | may be excluded under this limitation. Any retail contracts | ||||||
13 | executed between January 12, 2009 and the effective date of | ||||||
14 | this amendatory Act of the 96th General Assembly shall be | ||||||
15 | exempt from compliance with these requirements for a | ||||||
16 | 24-month period after the effective date of this amendatory | ||||||
17 | Act of the 96th General Assembly. Beginning with the June | ||||||
18 | 1, 2012 through May 31, 2013 procurement year, all | ||||||
19 | megawatt-hours supplied by the alternative retail electric | ||||||
20 | supplier after June 1, 2011 to retail customers shall be | ||||||
21 | included in the calculation to determine the quantity of | ||||||
22 | renewable energy resources to be procured. Alternative | ||||||
23 | retail electric suppliers shall be required to submit all | ||||||
24 | documentation needed by the Commission to determine the | ||||||
25 | actual amount of electricity supplied under contracts that | ||||||
26 | may be excluded under either of the limitations included in |
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1 | this Section. | ||||||
2 |
(b) An alternative retail electric supplier shall comply | ||||||
3 | with the renewable energy portfolio standards by any one or a | ||||||
4 | combination of the following means: | ||||||
5 | (1) producing electricity from renewable energy | ||||||
6 | systems; | ||||||
7 | (2) purchasing electricity through a renewable energy | ||||||
8 | contract; | ||||||
9 | (3) purchasing renewable energy credits; or | ||||||
10 | (4) making an alternative compliance payment as | ||||||
11 | described in subsection (d) of this Section. | ||||||
12 | (c) Use of renewable energy certificates. | ||||||
13 | (1) Renewable energy certificates that are not used by | ||||||
14 | an alternative retail electric supplier to comply with a | ||||||
15 | renewable portfolio standard in a compliance year may be | ||||||
16 | banked and carried forward up to 2 years after the year of | ||||||
17 | generation for the purpose of complying with a renewable | ||||||
18 | portfolio standard in those 2 subsequent years. | ||||||
19 | (2) An alternative retail electric supplier is | ||||||
20 | responsible for demonstrating that a renewable energy | ||||||
21 | certificate used to comply with a renewable portfolio | ||||||
22 | standard is derived from a renewable energy resource and | ||||||
23 | that the alternative retail electric supplier has not used, | ||||||
24 | traded, sold, or otherwise transferred the certificate. | ||||||
25 | (3) The same renewable energy certificate may be used | ||||||
26 | by an alternative retail electric supplier to comply with a |
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1 | federal renewable portfolio standard and a renewable | ||||||
2 | portfolio standard established under this Act. An | ||||||
3 | alternative retail electric supplier that uses a renewable | ||||||
4 | energy certificate to comply with a renewable portfolio | ||||||
5 | standard imposed by any other state may not use the same | ||||||
6 | certificate to comply with a renewable portfolio standard | ||||||
7 | established under this Act. | ||||||
8 | (d) Alternative compliance payments. | ||||||
9 | (1) The Commission shall establish an alternative | ||||||
10 | compliance rate for each compliance year for the | ||||||
11 | alternative retail electric suppliers that are subject to a | ||||||
12 | renewable portfolio standard. The rate shall be expressed | ||||||
13 | in dollars per megawatt-hour and shall at no time exceed | ||||||
14 | the amount paid by eligible retail customers of an electric | ||||||
15 | utility to meet the renewable portfolio standards set forth | ||||||
16 | in Section 1-75 of the Illinois Power Agency Act. | ||||||
17 | (2) In establishing an alternative compliance rate, | ||||||
18 | the Commission shall set the rate at least 3 years forward | ||||||
19 | so as to provide adequate incentive for the alternative | ||||||
20 | retail electric supplier to purchase or generate | ||||||
21 | qualifying renewable energy resources in lieu of using an | ||||||
22 | alternative compliance payment to meet the renewable | ||||||
23 | portfolio standard applicable to the alternative retail | ||||||
24 | electric supplier. | ||||||
25 | (3) In any given compliance year, an alternative retail | ||||||
26 | electric supplier may elect to use an alternative |
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1 | compliance payment to comply with all or a part of the | ||||||
2 | applicable renewable portfolio standard. Any election by | ||||||
3 | an alternative retail electric supplier to use alternative | ||||||
4 | compliance payments is subject to review by the Commission | ||||||
5 | under subsection (e) of this Section. | ||||||
6 | (4) All alternative compliance payments by alternative | ||||||
7 | retail electric suppliers shall be deposited in an account | ||||||
8 | or accounts as shall be determined by the Commission on an | ||||||
9 | annual basis; provided, however, that 20% of assessed | ||||||
10 | alternative compliance charges shall be deposited in the | ||||||
11 | Renewable Energy Resources Trust Fund, the Energy | ||||||
12 | Efficiency Trust Fund, or the Public Utility Fund. Amounts | ||||||
13 | in both of the accounts shall accrue interest at the rate | ||||||
14 | of return authorized by the Commission. | ||||||
15 | (5) Amounts in accounts established under item (4) of | ||||||
16 | this subsection (d) may be expended only for costs | ||||||
17 | associated with incentive programs for new generating | ||||||
18 | capacity from renewable energy resources or energy | ||||||
19 | conservation programs within the State of Illinois. The | ||||||
20 | Commission must approve expenditures from an account or | ||||||
21 | accounts established under item (4) of this subsection. | ||||||
22 | (6) The Commission shall establish initial alternative | ||||||
23 | compliance rates as required by this Section no later than | ||||||
24 | June 1, 2009 and shall determine the formula or process for | ||||||
25 | annually setting the alternative compliance rate for 3 | ||||||
26 | years forward no later than January 1 of each year for the |
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1 | next 3-year period. | ||||||
2 | (e) Each alternative retail electric supplier shall, by | ||||||
3 | September 1, 2011 and by September 1 of each year thereafter, | ||||||
4 | prepare and submit to the Commission a report that provides | ||||||
5 | information certifying compliance by the alternative retail | ||||||
6 | electric supplier with this Section, including copies of all | ||||||
7 | PJM Environmental Information System's Generation Attribute | ||||||
8 | Tracking System ("PJM-GATS"), MISO's Midwest Renewable Energy | ||||||
9 | Tracking System ("MISO M-RETS") reports, or contracts and other | ||||||
10 | documentation relating to compliance. An alternative retail | ||||||
11 | electric supplier may file commercially or financially | ||||||
12 | sensitive information or trade secrets with the Commission as | ||||||
13 | provided under the rules of the Commission. To be filed | ||||||
14 | confidentially, the information shall be accompanied by an | ||||||
15 | affidavit that sets forth both the reasons for the | ||||||
16 | confidentiality and a public synopsis of the information. | ||||||
17 | (f) Within 120 days after the effective date of this | ||||||
18 | amendatory Act of the 96th General Assembly, but in no event | ||||||
19 | later than October 1, 2009, the Commission shall establish | ||||||
20 | rules to implement this Section, which may include, but are not | ||||||
21 | limited to, all of the following: | ||||||
22 | (1) A standard format for the submission of annual | ||||||
23 | reports by an alternative retail electric supplier. | ||||||
24 | (2) Use of the MISO M-RETS and PJM-GATS systems for | ||||||
25 | independent verification of the location of generation, | ||||||
26 | resource type, month and year of generation for all |
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1 | eligible qualifying renewable energy facilities, including | ||||||
2 | all existing renewable energy systems eligible to receive | ||||||
3 | renewable energy credits and a procedure for certification | ||||||
4 | of new qualifying renewable energy facilities. | ||||||
5 | (3) A method for the banking, transferring, and | ||||||
6 | retiring of renewable energy certificates. | ||||||
7 | (4) A method to address the implications on the | ||||||
8 | required procurement of renewable resources when | ||||||
9 | alternative retail electric suppliers exit or enter the | ||||||
10 | Illinois market. | ||||||
11 | (5) Ensuring that alternative retail electric | ||||||
12 | suppliers are not placed at a competitive disadvantage | ||||||
13 | compared to the eligible retail customers of electric | ||||||
14 | utilities subject to Section 1-75 of the Illinois Power | ||||||
15 | Agency Act. | ||||||
16 | (6) The provision of any other information that the | ||||||
17 | Commission determines necessary. | ||||||
18 | (g) Upon complaint or the Commission's own motion, the | ||||||
19 | Commission may conduct a contested case to review allegations | ||||||
20 | that the alternative retail electric supplier has violated this | ||||||
21 | Section, including an order issued or rule promulgated under | ||||||
22 | this Section. If the Commission finds, after notice and | ||||||
23 | hearing, that an alternative electric supplier has violated | ||||||
24 | this Section, the Commission may do one or more of the | ||||||
25 | following: | ||||||
26 | (1) issue a cease and desist order; |
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1 | (2) order the alternative retail electric supplier to | ||||||
2 | immediately come into compliance with the Act and to pay a | ||||||
3 | civil fine of not less than $5,000 or more than $50,000 for | ||||||
4 | each violation; | ||||||
5 | (3) revoke the license of the alternative electric | ||||||
6 | supplier; or | ||||||
7 | (4) impose any other penalty that the Commission deems | ||||||
8 | reasonable and appropriate. | ||||||
9 | The Commission shall not accept an application for | ||||||
10 | certification from an alternative retail electric supplier | ||||||
11 | that has lost certification under this subsection (g), or any | ||||||
12 | corporate affiliate thereof, for at least one year from the | ||||||
13 | date of revocation. | ||||||
14 | (h) All of the provisions of this Section apply to an | ||||||
15 | electric utility operating outside its service area, except | ||||||
16 | that under item (2) of subsection (a) of this Section the | ||||||
17 | quantity of renewable energy resources shall be measured as a | ||||||
18 | percentage of the actual amount of electricity | ||||||
19 | (megawatt-hours) supplied in this State outside of the | ||||||
20 | utility's service territory in the prior calendar year, as | ||||||
21 | reported for that prior calendar year to the Commission. | ||||||
22 | (i) Biennially, the Commission shall submit to the General | ||||||
23 | Assembly a report that discusses the status of renewable energy | ||||||
24 | in this State and the effect of this Section on electricity | ||||||
25 | prices and retail and wholesale electric markets. In each | ||||||
26 | report, the Commission shall make any recommendations it may |
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1 | have concerning amendments to this Act.
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