99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2522

 

Introduced 2/16/2016, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-70
20 ILCS 3855/1-75
20 ILCS 3855/1-80
20 ILCS 3855/1-125
30 ILCS 105/6z-75

    Amends the Illinois Power Agency Act. Makes establishment of the Resource Development Bureau discretionary, and makes related changes. Moves language providing that each year the Illinois Power Agency shall prepare a public report for the General Assembly and the Illinois Commerce Commission that shall include certain criteria associated with the procurement of renewable energy resources from under a provision concerning the renewable portfolio standard to a provision concerning Agency annual reports within the Act. In a provision concerning Agency annual reports: provides that the Agency shall report annually each February 15 (currently December 15) on the operations and transactions of the Agency; removes a provision regarding reporting the quantity, price, and rate of all renewable resources purchased under the electricity procurement plans for electric utilities; and provides that average quantity (rather than total quantity) be used for certain reporting criteria. Makes other changes. Effective immediately.


LRB099 18581 EGJ 42960 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2522LRB099 18581 EGJ 42960 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-70, 1-75, 1-80, and 1-125 as follows:
 
6    (20 ILCS 3855/1-70)
7    Sec. 1-70. Agency officials.
8    (a) The Agency shall have a Director who meets the
9qualifications specified in Section 5-222 of the Civil
10Administrative Code of Illinois (20 ILCS 5/5-222).
11    (b) Within the Illinois Power Agency, the Agency shall
12establish a Planning and Procurement Bureau and may establish a
13Resource Development Bureau. Each Bureau shall report to the
14Director.
15    (c) The Chief of the Planning and Procurement Bureau shall
16be appointed by the Director, at the Director's sole
17discretion, and (i) shall have at least 5 years of direct
18experience in electricity supply planning and procurement and
19(ii) shall also hold an advanced degree in risk management,
20law, business, or a related field.
21    (d) The Chief of the Resource Development Bureau may shall
22be appointed by the Director and (i) shall have at least 5
23years of direct experience in electric generating project

 

 

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1development and (ii) shall also hold an advanced degree in
2economics, engineering, law, business, or a related field.
3    (e) The Director shall receive an annual salary of $100,000
4or as set by the Compensation Review Board, whichever is
5higher. The Bureau Chiefs shall each receive an annual salary
6of $85,000 or as set by the Compensation Review Board,
7whichever is higher.
8    (f) The Director and Bureau Chiefs shall not, for 2 years
9prior to appointment or for 2 years after he or she leaves his
10or her position, be employed by an electric utility,
11independent power producer, power marketer, or alternative
12retail electric supplier regulated by the Commission or the
13Federal Energy Regulatory Commission.
14    (g) The Director and Bureau Chiefs are prohibited from: (i)
15owning, directly or indirectly, 5% or more of the voting
16capital stock of an electric utility, independent power
17producer, power marketer, or alternative retail electric
18supplier; (ii) being in any chain of successive ownership of 5%
19or more of the voting capital stock of any electric utility,
20independent power producer, power marketer, or alternative
21retail electric supplier; (iii) receiving any form of
22compensation, fee, payment, or other consideration from an
23electric utility, independent power producer, power marketer,
24or alternative retail electric supplier, including legal fees,
25consulting fees, bonuses, or other sums. These limitations do
26not apply to any compensation received pursuant to a defined

 

 

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1benefit plan or other form of deferred compensation, provided
2that the individual has otherwise severed all ties to the
3utility, power producer, power marketer, or alternative retail
4electric supplier.
5(Source: P.A. 97-618, eff. 10-26-11.)
 
6    (20 ILCS 3855/1-75)
7    Sec. 1-75. Planning and Procurement Bureau. The Planning
8and Procurement Bureau has the following duties and
9responsibilities:
10    (a) The Planning and Procurement Bureau shall each year,
11beginning in 2008, develop procurement plans and conduct
12competitive procurement processes in accordance with the
13requirements of Section 16-111.5 of the Public Utilities Act
14for the eligible retail customers of electric utilities that on
15December 31, 2005 provided electric service to at least 100,000
16customers in Illinois. The Planning and Procurement Bureau
17shall also develop procurement plans and conduct competitive
18procurement processes in accordance with the requirements of
19Section 16-111.5 of the Public Utilities Act for the eligible
20retail customers of small multi-jurisdictional electric
21utilities that (i) on December 31, 2005 served less than
22100,000 customers in Illinois and (ii) request a procurement
23plan for their Illinois jurisdictional load. This Section shall
24not apply to a small multi-jurisdictional utility until such
25time as a small multi-jurisdictional utility requests the

 

 

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1Agency to prepare a procurement plan for their Illinois
2jurisdictional load. For the purposes of this Section, the term
3"eligible retail customers" has the same definition as found in
4Section 16-111.5(a) of the Public Utilities Act.
5        (1) The Agency shall each year, beginning in 2008, as
6    needed, issue a request for qualifications for experts or
7    expert consulting firms to develop the procurement plans in
8    accordance with Section 16-111.5 of the Public Utilities
9    Act. In order to qualify an expert or expert consulting
10    firm must have:
11            (A) direct previous experience assembling
12        large-scale power supply plans or portfolios for
13        end-use customers;
14            (B) an advanced degree in economics, mathematics,
15        engineering, risk management, or a related area of
16        study;
17            (C) 10 years of experience in the electricity
18        sector, including managing supply risk;
19            (D) expertise in wholesale electricity market
20        rules, including those established by the Federal
21        Energy Regulatory Commission and regional transmission
22        organizations;
23            (E) expertise in credit protocols and familiarity
24        with contract protocols;
25            (F) adequate resources to perform and fulfill the
26        required functions and responsibilities; and

 

 

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

 

 

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1    other interested parties with the lists of qualified
2    experts or expert consulting firms identified through the
3    request for qualifications processes that are under
4    consideration to develop the procurement plans and to serve
5    as the procurement administrator. The Agency shall also
6    provide each qualified expert's or expert consulting
7    firm's response to the request for qualifications. All
8    information provided under this subparagraph shall also be
9    provided to the Commission. The Agency may provide by rule
10    for fees associated with supplying the information to
11    utilities and other interested parties. These parties
12    shall, within 5 business days, notify the Agency in writing
13    if they object to any experts or expert consulting firms on
14    the lists. Objections shall be based on:
15            (A) failure to satisfy qualification criteria;
16            (B) identification of a conflict of interest; or
17            (C) evidence of inappropriate bias for or against
18        potential bidders or the affected utilities.
19        The Agency shall remove experts or expert consulting
20    firms from the lists within 10 days if there is a
21    reasonable basis for an objection and provide the updated
22    lists to the affected utilities and other interested
23    parties. If the Agency fails to remove an expert or expert
24    consulting firm from a list, an objecting party may seek
25    review by the Commission within 5 days thereafter by filing
26    a petition, and the Commission shall render a ruling on the

 

 

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1    petition within 10 days. There is no right of appeal of the
2    Commission's ruling.
3        (4) The Agency shall issue requests for proposals to
4    the qualified experts or expert consulting firms to develop
5    a procurement plan for the affected utilities and to serve
6    as procurement administrator.
7        (5) The Agency shall select an expert or expert
8    consulting firm to develop procurement plans based on the
9    proposals submitted and shall award contracts of up to 5
10    years to those selected.
11        (6) The Agency shall select an expert or expert
12    consulting firm, with approval of the Commission, to serve
13    as procurement administrator based on the proposals
14    submitted. If the Commission rejects, within 5 days, the
15    Agency's selection, the Agency shall submit another
16    recommendation within 3 days based on the proposals
17    submitted. The Agency shall award a 5-year contract to the
18    expert or expert consulting firm so selected with
19    Commission approval.
20    (b) The experts or expert consulting firms retained by the
21Agency shall, as appropriate, prepare procurement plans, and
22conduct a competitive procurement process as prescribed in
23Section 16-111.5 of the Public Utilities Act, to ensure
24adequate, reliable, affordable, efficient, and environmentally
25sustainable electric service at the lowest total cost over
26time, taking into account any benefits of price stability, for

 

 

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1eligible retail customers of electric utilities that on
2December 31, 2005 provided electric service to at least 100,000
3customers in the State of Illinois, and for eligible Illinois
4retail customers of small multi-jurisdictional electric
5utilities that (i) on December 31, 2005 served less than
6100,000 customers in Illinois and (ii) request a procurement
7plan for their Illinois jurisdictional load.
8    (c) Renewable portfolio standard.
9        (1) The procurement plans shall include cost-effective
10    renewable energy resources. A minimum percentage of each
11    utility's total supply to serve the load of eligible retail
12    customers, as defined in Section 16-111.5(a) of the Public
13    Utilities Act, procured for each of the following years
14    shall be generated from cost-effective renewable energy
15    resources: at least 2% by June 1, 2008; at least 4% by June
16    1, 2009; at least 5% by June 1, 2010; at least 6% by June 1,
17    2011; at least 7% by June 1, 2012; at least 8% by June 1,
18    2013; at least 9% by June 1, 2014; at least 10% by June 1,
19    2015; and increasing by at least 1.5% each year thereafter
20    to at least 25% by June 1, 2025. To the extent that it is
21    available, at least 75% of the renewable energy resources
22    used to meet these standards shall come from wind
23    generation and, beginning on June 1, 2011, at least the
24    following percentages of the renewable energy resources
25    used to meet these standards shall come from photovoltaics
26    on the following schedule: 0.5% by June 1, 2012, 1.5% by

 

 

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

 

 

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

 

 

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

 

 

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1        resources procured pursuant to the procurement plan
2        for any single year shall be reduced by an amount
3        necessary to limit the estimated average net increase
4        due to the cost of these resources included in the
5        amounts paid by eligible retail customers in
6        connection with electric service to no more than the
7        greater of 2.015% of the amount paid per kilowatthour
8        by those customers during the year ending May 31, 2007
9        or the incremental amount per kilowatthour paid for
10        these resources in 2011.
11            No later than June 30, 2011, the Commission shall
12        review the limitation on the amount of renewable energy
13        resources procured pursuant to this subsection (c) and
14        report to the General Assembly its findings as to
15        whether that limitation unduly constrains the
16        procurement of cost-effective renewable energy
17        resources.
18        (3) Through June 1, 2011, renewable energy resources
19    shall be counted for the purpose of meeting the renewable
20    energy standards set forth in paragraph (1) of this
21    subsection (c) only if they are generated from facilities
22    located in the State, provided that cost-effective
23    renewable energy resources are available from those
24    facilities. If those cost-effective resources are not
25    available in Illinois, they shall be procured in states
26    that adjoin Illinois and may be counted towards compliance.

 

 

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

 

 

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1    under item (1) of subsection (d) of Section 16-111.5 of the
2    Public Utilities Act the amounts collected under the
3    alternative compliance payment rate or rates for the prior
4    year ending May 31. Notwithstanding any limitation on the
5    procurement of renewable energy resources imposed by item
6    (2) of this subsection (c), the Agency shall increase its
7    spending on the purchase of renewable energy resources to
8    be procured by the electric utility for the next plan year
9    by an amount equal to the amounts collected by the utility
10    under the alternative compliance payment rate or rates in
11    the prior year ending May 31. Beginning April 1, 2012, and
12    each year thereafter, the Agency shall prepare a public
13    report for the General Assembly and Illinois Commerce
14    Commission that shall include, but not necessarily be
15    limited to:
16            (A) a comparison of the costs associated with the
17        Agency's procurement of renewable energy resources to
18        (1) the Agency's costs associated with electricity
19        generated by other types of generation facilities and
20        (2) the benefits associated with the Agency's
21        procurement of renewable energy resources; and
22            (B) an analysis of the rate impacts associated with
23        the Illinois Power Agency's procurement of renewable
24        resources, including, but not limited to, any
25        long-term contracts, on the eligible retail customers
26        of electric utilities.

 

 

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1        The analysis shall include the Agency's estimate of the
2    total dollar impact that the Agency's procurement of
3    renewable resources has had on the annual electricity bills
4    of the customer classes that comprise each eligible retail
5    customer class taking service from an electric utility. The
6    Agency's report shall also analyze how the operation of the
7    alternative compliance payment mechanism, any long-term
8    contracts, or other aspects of the applicable renewable
9    portfolio standards impacts the rates of customers of
10    alternative retail electric suppliers.
11    (d) Clean coal portfolio standard.
12        (1) The procurement plans shall include electricity
13    generated using clean coal. Each utility shall enter into
14    one or more sourcing agreements with the initial clean coal
15    facility, as provided in paragraph (3) of this subsection
16    (d), covering electricity generated by the initial clean
17    coal facility representing at least 5% of each utility's
18    total supply to serve the load of eligible retail customers
19    in 2015 and each year thereafter, as described in paragraph
20    (3) of this subsection (d), subject to the limits specified
21    in paragraph (2) of this subsection (d). It is the goal of
22    the State that by January 1, 2025, 25% of the electricity
23    used in the State shall be generated by cost-effective
24    clean coal facilities. For purposes of this subsection (d),
25    "cost-effective" means that the expenditures pursuant to
26    such sourcing agreements do not cause the limit stated in

 

 

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1    paragraph (2) of this subsection (d) to be exceeded and do
2    not exceed cost-based benchmarks, which shall be developed
3    to assess all expenditures pursuant to such sourcing
4    agreements covering electricity generated by clean coal
5    facilities, other than the initial clean coal facility, by
6    the procurement administrator, in consultation with the
7    Commission staff, Agency staff, and the procurement
8    monitor and shall be subject to Commission review and
9    approval.
10        A utility party to a sourcing agreement shall
11    immediately retire any emission credits that it receives in
12    connection with the electricity covered by such agreement.
13        Utilities shall maintain adequate records documenting
14    the purchases under the sourcing agreement to comply with
15    this subsection (d) and shall file an accounting with the
16    load forecast that must be filed with the Agency by July 15
17    of each year, in accordance with subsection (d) of Section
18    16-111.5 of the Public Utilities Act.
19        A utility shall be deemed to have complied with the
20    clean coal portfolio standard specified in this subsection
21    (d) if the utility enters into a sourcing agreement as
22    required by this subsection (d).
23        (2) For purposes of this subsection (d), the required
24    execution of sourcing agreements with the initial clean
25    coal facility for a particular year shall be measured as a
26    percentage of the actual amount of electricity

 

 

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1    (megawatt-hours) supplied by the electric utility to
2    eligible retail customers in the planning year ending
3    immediately prior to the agreement's execution. For
4    purposes of this subsection (d), the amount paid per
5    kilowatthour means the total amount paid for electric
6    service expressed on a per kilowatthour basis. For purposes
7    of this subsection (d), the total amount paid for electric
8    service includes without limitation amounts paid for
9    supply, transmission, distribution, surcharges and add-on
10    taxes.
11        Notwithstanding the requirements of this subsection
12    (d), the total amount paid under sourcing agreements with
13    clean coal facilities pursuant to the procurement plan for
14    any given year shall be reduced by an amount necessary to
15    limit the annual estimated average net increase due to the
16    costs of these resources included in the amounts paid by
17    eligible retail customers in connection with electric
18    service to:
19            (A) in 2010, no more than 0.5% of the amount paid
20        per kilowatthour by those customers during the year
21        ending May 31, 2009;
22            (B) in 2011, the greater of an additional 0.5% of
23        the amount paid per kilowatthour by those customers
24        during the year ending May 31, 2010 or 1% of the amount
25        paid per kilowatthour by those customers during the
26        year ending May 31, 2009;

 

 

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1            (C) in 2012, the greater of an additional 0.5% of
2        the amount paid per kilowatthour by those customers
3        during the year ending May 31, 2011 or 1.5% of the
4        amount paid per kilowatthour by those customers during
5        the year ending May 31, 2009;
6            (D) in 2013, the greater of an additional 0.5% of
7        the amount paid per kilowatthour by those customers
8        during the year ending May 31, 2012 or 2% of the amount
9        paid per kilowatthour by those customers during the
10        year ending May 31, 2009; and
11            (E) thereafter, the total amount paid under
12        sourcing agreements with clean coal facilities
13        pursuant to the procurement plan for any single year
14        shall be reduced by an amount necessary to limit the
15        estimated average net increase due to the cost of these
16        resources included in the amounts paid by eligible
17        retail customers in connection with electric service
18        to no more than the greater of (i) 2.015% of the amount
19        paid per kilowatthour by those customers during the
20        year ending May 31, 2009 or (ii) the incremental amount
21        per kilowatthour paid for these resources in 2013.
22        These requirements may be altered only as provided by
23        statute.
24        No later than June 30, 2015, the Commission shall
25    review the limitation on the total amount paid under
26    sourcing agreements, if any, with clean coal facilities

 

 

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1    pursuant to this subsection (d) and report to the General
2    Assembly its findings as to whether that limitation unduly
3    constrains the amount of electricity generated by
4    cost-effective clean coal facilities that is covered by
5    sourcing agreements.
6        (3) Initial clean coal facility. In order to promote
7    development of clean coal facilities in Illinois, each
8    electric utility subject to this Section shall execute a
9    sourcing agreement to source electricity from a proposed
10    clean coal facility in Illinois (the "initial clean coal
11    facility") that will have a nameplate capacity of at least
12    500 MW when commercial operation commences, that has a
13    final Clean Air Act permit on the effective date of this
14    amendatory Act of the 95th General Assembly, and that will
15    meet the definition of clean coal facility in Section 1-10
16    of this Act when commercial operation commences. The
17    sourcing agreements with this initial clean coal facility
18    shall be subject to both approval of the initial clean coal
19    facility by the General Assembly and satisfaction of the
20    requirements of paragraph (4) of this subsection (d) and
21    shall be executed within 90 days after any such approval by
22    the General Assembly. The Agency and the Commission shall
23    have authority to inspect all books and records associated
24    with the initial clean coal facility during the term of
25    such a sourcing agreement. A utility's sourcing agreement
26    for electricity produced by the initial clean coal facility

 

 

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1    shall include:
2            (A) a formula contractual price (the "contract
3        price") approved pursuant to paragraph (4) of this
4        subsection (d), which shall:
5                (i) be determined using a cost of service
6            methodology employing either a level or deferred
7            capital recovery component, based on a capital
8            structure consisting of 45% equity and 55% debt,
9            and a return on equity as may be approved by the
10            Federal Energy Regulatory Commission, which in any
11            case may not exceed the lower of 11.5% or the rate
12            of return approved by the General Assembly
13            pursuant to paragraph (4) of this subsection (d);
14            and
15                (ii) provide that all miscellaneous net
16            revenue, including but not limited to net revenue
17            from the sale of emission allowances, if any,
18            substitute natural gas, if any, grants or other
19            support provided by the State of Illinois or the
20            United States Government, firm transmission
21            rights, if any, by-products produced by the
22            facility, energy or capacity derived from the
23            facility and not covered by a sourcing agreement
24            pursuant to paragraph (3) of this subsection (d) or
25            item (5) of subsection (d) of Section 16-115 of the
26            Public Utilities Act, whether generated from the

 

 

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1            synthesis gas derived from coal, from SNG, or from
2            natural gas, shall be credited against the revenue
3            requirement for this initial clean coal facility;
4            (B) power purchase provisions, which shall:
5                (i) provide that the utility party to such
6            sourcing agreement shall pay the contract price
7            for electricity delivered under such sourcing
8            agreement;
9                (ii) require delivery of electricity to the
10            regional transmission organization market of the
11            utility that is party to such sourcing agreement;
12                (iii) require the utility party to such
13            sourcing agreement to buy from the initial clean
14            coal facility in each hour an amount of energy
15            equal to all clean coal energy made available from
16            the initial clean coal facility during such hour
17            times a fraction, the numerator of which is such
18            utility's retail market sales of electricity
19            (expressed in kilowatthours sold) in the State
20            during the prior calendar month and the
21            denominator of which is the total retail market
22            sales of electricity (expressed in kilowatthours
23            sold) in the State by utilities during such prior
24            month and the sales of electricity (expressed in
25            kilowatthours sold) in the State by alternative
26            retail electric suppliers during such prior month

 

 

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

 

 

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1            retail electric suppliers during such prior month
2            that are subject to the requirements of this
3            subsection (d) and paragraph (5) of subsection (d)
4            of Section 16-115 of the Public Utilities Act,
5            provided that the amount paid by the utility in any
6            year will be limited by paragraph (2) of this
7            subsection (d);
8                (ii) provide that the utility's payment
9            obligation in respect of the quantity of
10            electricity determined pursuant to the preceding
11            clause (i) shall be limited to an amount equal to
12            (1) the difference between the contract price
13            determined pursuant to subparagraph (A) of
14            paragraph (3) of this subsection (d) and the
15            day-ahead price for electricity delivered to the
16            regional transmission organization market of the
17            utility that is party to such sourcing agreement
18            (or any successor delivery point at which such
19            utility's supply obligations are financially
20            settled on an hourly basis) (the "reference
21            price") on the day preceding the day on which the
22            electricity is delivered to the initial clean coal
23            facility busbar, multiplied by (2) the quantity of
24            electricity determined pursuant to the preceding
25            clause (i); and
26                (iii) not require the utility to take physical

 

 

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1            delivery of the electricity produced by the
2            facility;
3            (D) general provisions, which shall:
4                (i) specify a term of no more than 30 years,
5            commencing on the commercial operation date of the
6            facility;
7                (ii) provide that utilities shall maintain
8            adequate records documenting purchases under the
9            sourcing agreements entered into to comply with
10            this subsection (d) and shall file an accounting
11            with the load forecast that must be filed with the
12            Agency by July 15 of each year, in accordance with
13            subsection (d) of Section 16-111.5 of the Public
14            Utilities Act;
15                (iii) provide that all costs associated with
16            the initial clean coal facility will be
17            periodically reported to the Federal Energy
18            Regulatory Commission and to purchasers in
19            accordance with applicable laws governing
20            cost-based wholesale power contracts;
21                (iv) permit the Illinois Power Agency to
22            assume ownership of the initial clean coal
23            facility, without monetary consideration and
24            otherwise on reasonable terms acceptable to the
25            Agency, if the Agency so requests no less than 3
26            years prior to the end of the stated contract term;

 

 

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1                (v) require the owner of the initial clean coal
2            facility to provide documentation to the
3            Commission each year, starting in the facility's
4            first year of commercial operation, accurately
5            reporting the quantity of carbon emissions from
6            the facility that have been captured and
7            sequestered and report any quantities of carbon
8            released from the site or sites at which carbon
9            emissions were sequestered in prior years, based
10            on continuous monitoring of such sites. If, in any
11            year after the first year of commercial operation,
12            the owner of the facility fails to demonstrate that
13            the initial clean coal facility captured and
14            sequestered at least 50% of the total carbon
15            emissions that the facility would otherwise emit
16            or that sequestration of emissions from prior
17            years has failed, resulting in the release of
18            carbon dioxide into the atmosphere, the owner of
19            the facility must offset excess emissions. Any
20            such carbon offsets must be permanent, additional,
21            verifiable, real, located within the State of
22            Illinois, and legally and practicably enforceable.
23            The cost of such offsets for the facility that are
24            not recoverable shall not exceed $15 million in any
25            given year. No costs of any such purchases of
26            carbon offsets may be recovered from a utility or

 

 

SB2522- 26 -LRB099 18581 EGJ 42960 b

1            its customers. All carbon offsets purchased for
2            this purpose and any carbon emission credits
3            associated with sequestration of carbon from the
4            facility must be permanently retired. The initial
5            clean coal facility shall not forfeit its
6            designation as a clean coal facility if the
7            facility fails to fully comply with the applicable
8            carbon sequestration requirements in any given
9            year, provided the requisite offsets are
10            purchased. However, the Attorney General, on
11            behalf of the People of the State of Illinois, may
12            specifically enforce the facility's sequestration
13            requirement and the other terms of this contract
14            provision. Compliance with the sequestration
15            requirements and offset purchase requirements
16            specified in paragraph (3) of this subsection (d)
17            shall be reviewed annually by an independent
18            expert retained by the owner of the initial clean
19            coal facility, with the advance written approval
20            of the Attorney General. The Commission may, in the
21            course of the review specified in item (vii),
22            reduce the allowable return on equity for the
23            facility if the facility wilfully fails to comply
24            with the carbon capture and sequestration
25            requirements set forth in this item (v);
26                (vi) include limits on, and accordingly

 

 

SB2522- 27 -LRB099 18581 EGJ 42960 b

1            provide for modification of, the amount the
2            utility is required to source under the sourcing
3            agreement consistent with paragraph (2) of this
4            subsection (d);
5                (vii) require Commission review: (1) to
6            determine the justness, reasonableness, and
7            prudence of the inputs to the formula referenced in
8            subparagraphs (A)(i) through (A)(iii) of paragraph
9            (3) of this subsection (d), prior to an adjustment
10            in those inputs including, without limitation, the
11            capital structure and return on equity, fuel
12            costs, and other operations and maintenance costs
13            and (2) to approve the costs to be passed through
14            to customers under the sourcing agreement by which
15            the utility satisfies its statutory obligations.
16            Commission review shall occur no less than every 3
17            years, regardless of whether any adjustments have
18            been proposed, and shall be completed within 9
19            months;
20                (viii) limit the utility's obligation to such
21            amount as the utility is allowed to recover through
22            tariffs filed with the Commission, provided that
23            neither the clean coal facility nor the utility
24            waives any right to assert federal pre-emption or
25            any other argument in response to a purported
26            disallowance of recovery costs;

 

 

SB2522- 28 -LRB099 18581 EGJ 42960 b

1                (ix) limit the utility's or alternative retail
2            electric supplier's obligation to incur any
3            liability until such time as the facility is in
4            commercial operation and generating power and
5            energy and such power and energy is being delivered
6            to the facility busbar;
7                (x) provide that the owner or owners of the
8            initial clean coal facility, which is the
9            counterparty to such sourcing agreement, shall
10            have the right from time to time to elect whether
11            the obligations of the utility party thereto shall
12            be governed by the power purchase provisions or the
13            contract for differences provisions;
14                (xi) append documentation showing that the
15            formula rate and contract, insofar as they relate
16            to the power purchase provisions, have been
17            approved by the Federal Energy Regulatory
18            Commission pursuant to Section 205 of the Federal
19            Power Act;
20                (xii) provide that any changes to the terms of
21            the contract, insofar as such changes relate to the
22            power purchase provisions, are subject to review
23            under the public interest standard applied by the
24            Federal Energy Regulatory Commission pursuant to
25            Sections 205 and 206 of the Federal Power Act; and
26                (xiii) conform with customary lender

 

 

SB2522- 29 -LRB099 18581 EGJ 42960 b

1            requirements in power purchase agreements used as
2            the basis for financing non-utility generators.
3        (4) Effective date of sourcing agreements with the
4    initial clean coal facility.
5        Any proposed sourcing agreement with the initial clean
6    coal facility shall not become effective unless the
7    following reports are prepared and submitted and
8    authorizations and approvals obtained:
9            (i) Facility cost report. The owner of the initial
10        clean coal facility shall submit to the Commission, the
11        Agency, and the General Assembly a front-end
12        engineering and design study, a facility cost report,
13        method of financing (including but not limited to
14        structure and associated costs), and an operating and
15        maintenance cost quote for the facility (collectively
16        "facility cost report"), which shall be prepared in
17        accordance with the requirements of this paragraph (4)
18        of subsection (d) of this Section, and shall provide
19        the Commission and the Agency access to the work
20        papers, relied upon documents, and any other backup
21        documentation related to the facility cost report.
22            (ii) Commission report. Within 6 months following
23        receipt of the facility cost report, the Commission, in
24        consultation with the Agency, shall submit a report to
25        the General Assembly setting forth its analysis of the
26        facility cost report. Such report shall include, but

 

 

SB2522- 30 -LRB099 18581 EGJ 42960 b

1        not be limited to, a comparison of the costs associated
2        with electricity generated by the initial clean coal
3        facility to the costs associated with electricity
4        generated by other types of generation facilities, an
5        analysis of the rate impacts on residential and small
6        business customers over the life of the sourcing
7        agreements, and an analysis of the likelihood that the
8        initial clean coal facility will commence commercial
9        operation by and be delivering power to the facility's
10        busbar by 2016. To assist in the preparation of its
11        report, the Commission, in consultation with the
12        Agency, may hire one or more experts or consultants,
13        the costs of which shall be paid for by the owner of
14        the initial clean coal facility. The Commission and
15        Agency may begin the process of selecting such experts
16        or consultants prior to receipt of the facility cost
17        report.
18            (iii) General Assembly approval. The proposed
19        sourcing agreements shall not take effect unless,
20        based on the facility cost report and the Commission's
21        report, the General Assembly enacts authorizing
22        legislation approving (A) the projected price, stated
23        in cents per kilowatthour, to be charged for
24        electricity generated by the initial clean coal
25        facility, (B) the projected impact on residential and
26        small business customers' bills over the life of the

 

 

SB2522- 31 -LRB099 18581 EGJ 42960 b

1        sourcing agreements, and (C) the maximum allowable
2        return on equity for the project; and
3            (iv) Commission review. If the General Assembly
4        enacts authorizing legislation pursuant to
5        subparagraph (iii) approving a sourcing agreement, the
6        Commission shall, within 90 days of such enactment,
7        complete a review of such sourcing agreement. During
8        such time period, the Commission shall implement any
9        directive of the General Assembly, resolve any
10        disputes between the parties to the sourcing agreement
11        concerning the terms of such agreement, approve the
12        form of such agreement, and issue an order finding that
13        the sourcing agreement is prudent and reasonable.
14        The facility cost report shall be prepared as follows:
15            (A) The facility cost report shall be prepared by
16        duly licensed engineering and construction firms
17        detailing the estimated capital costs payable to one or
18        more contractors or suppliers for the engineering,
19        procurement and construction of the components
20        comprising the initial clean coal facility and the
21        estimated costs of operation and maintenance of the
22        facility. The facility cost report shall include:
23                (i) an estimate of the capital cost of the core
24            plant based on one or more front end engineering
25            and design studies for the gasification island and
26            related facilities. The core plant shall include

 

 

SB2522- 32 -LRB099 18581 EGJ 42960 b

1            all civil, structural, mechanical, electrical,
2            control, and safety systems.
3                (ii) an estimate of the capital cost of the
4            balance of the plant, including any capital costs
5            associated with sequestration of carbon dioxide
6            emissions and all interconnects and interfaces
7            required to operate the facility, such as
8            transmission of electricity, construction or
9            backfeed power supply, pipelines to transport
10            substitute natural gas or carbon dioxide, potable
11            water supply, natural gas supply, water supply,
12            water discharge, landfill, access roads, and coal
13            delivery.
14            The quoted construction costs shall be expressed
15        in nominal dollars as of the date that the quote is
16        prepared and shall include capitalized financing costs
17        during construction, taxes, insurance, and other
18        owner's costs, and an assumed escalation in materials
19        and labor beyond the date as of which the construction
20        cost quote is expressed.
21            (B) The front end engineering and design study for
22        the gasification island and the cost study for the
23        balance of plant shall include sufficient design work
24        to permit quantification of major categories of
25        materials, commodities and labor hours, and receipt of
26        quotes from vendors of major equipment required to

 

 

SB2522- 33 -LRB099 18581 EGJ 42960 b

1        construct and operate the clean coal facility.
2            (C) The facility cost report shall also include an
3        operating and maintenance cost quote that will provide
4        the estimated cost of delivered fuel, personnel,
5        maintenance contracts, chemicals, catalysts,
6        consumables, spares, and other fixed and variable
7        operations and maintenance costs. The delivered fuel
8        cost estimate will be provided by a recognized third
9        party expert or experts in the fuel and transportation
10        industries. The balance of the operating and
11        maintenance cost quote, excluding delivered fuel
12        costs, will be developed based on the inputs provided
13        by duly licensed engineering and construction firms
14        performing the construction cost quote, potential
15        vendors under long-term service agreements and plant
16        operating agreements, or recognized third party plant
17        operator or operators.
18            The operating and maintenance cost quote
19        (including the cost of the front end engineering and
20        design study) shall be expressed in nominal dollars as
21        of the date that the quote is prepared and shall
22        include taxes, insurance, and other owner's costs, and
23        an assumed escalation in materials and labor beyond the
24        date as of which the operating and maintenance cost
25        quote is expressed.
26            (D) The facility cost report shall also include an

 

 

SB2522- 34 -LRB099 18581 EGJ 42960 b

1        analysis of the initial clean coal facility's ability
2        to deliver power and energy into the applicable
3        regional transmission organization markets and an
4        analysis of the expected capacity factor for the
5        initial clean coal facility.
6            (E) Amounts paid to third parties unrelated to the
7        owner or owners of the initial clean coal facility to
8        prepare the core plant construction cost quote,
9        including the front end engineering and design study,
10        and the operating and maintenance cost quote will be
11        reimbursed through Coal Development Bonds.
12        (5) Re-powering and retrofitting coal-fired power
13    plants previously owned by Illinois utilities to qualify as
14    clean coal facilities. During the 2009 procurement
15    planning process and thereafter, the Agency and the
16    Commission shall consider sourcing agreements covering
17    electricity generated by power plants that were previously
18    owned by Illinois utilities and that have been or will be
19    converted into clean coal facilities, as defined by Section
20    1-10 of this Act. Pursuant to such procurement planning
21    process, the owners of such facilities may propose to the
22    Agency sourcing agreements with utilities and alternative
23    retail electric suppliers required to comply with
24    subsection (d) of this Section and item (5) of subsection
25    (d) of Section 16-115 of the Public Utilities Act, covering
26    electricity generated by such facilities. In the case of

 

 

SB2522- 35 -LRB099 18581 EGJ 42960 b

1    sourcing agreements that are power purchase agreements,
2    the contract price for electricity sales shall be
3    established on a cost of service basis. In the case of
4    sourcing agreements that are contracts for differences,
5    the contract price from which the reference price is
6    subtracted shall be established on a cost of service basis.
7    The Agency and the Commission may approve any such utility
8    sourcing agreements that do not exceed cost-based
9    benchmarks developed by the procurement administrator, in
10    consultation with the Commission staff, Agency staff and
11    the procurement monitor, subject to Commission review and
12    approval. The Commission shall have authority to inspect
13    all books and records associated with these clean coal
14    facilities during the term of any such contract.
15        (6) Costs incurred under this subsection (d) or
16    pursuant to a contract entered into under this subsection
17    (d) shall be deemed prudently incurred and reasonable in
18    amount and the electric utility shall be entitled to full
19    cost recovery pursuant to the tariffs filed with the
20    Commission.
21    (e) The draft procurement plans are subject to public
22comment, as required by Section 16-111.5 of the Public
23Utilities Act.
24    (f) The Agency shall submit the final procurement plan to
25the Commission. The Agency shall revise a procurement plan if
26the Commission determines that it does not meet the standards

 

 

SB2522- 36 -LRB099 18581 EGJ 42960 b

1set forth in Section 16-111.5 of the Public Utilities Act.
2    (g) The Agency shall assess fees to each affected utility
3to recover the costs incurred in preparation of the annual
4procurement plan for the utility.
5    (h) The Agency shall assess fees to each bidder to recover
6the costs incurred in connection with a competitive procurement
7process.
8(Source: P.A. 97-325, eff. 8-12-11; 97-616, eff. 10-26-11;
997-618, eff. 10-26-11; 97-658, eff. 1-13-12; 97-813, eff.
107-13-12; 98-463, eff. 8-16-13.)
 
11    (20 ILCS 3855/1-80)
12    Sec. 1-80. Resource Development Bureau. Upon its
13establishment by the Agency, the The Resource Development
14Bureau has the following duties and responsibilities:
15        (a) At the Agency's discretion, conduct feasibility
16    studies on the construction of any facility. Funding for a
17    study shall come from either:
18            (i) fees assessed by the Agency on municipal
19        electric systems, governmental aggregators, unit or
20        units of local government, or rural electric
21        cooperatives requesting the feasibility study; or
22            (ii) an appropriation from the General Assembly.
23        (b) If the Agency undertakes the construction of a
24    facility, moneys generated from the sale of revenue bonds
25    by the Authority for the facility shall be used to

 

 

SB2522- 37 -LRB099 18581 EGJ 42960 b

1    reimburse the source of the money used for the facility's
2    feasibility study.
3        (c) The Agency may develop, finance, construct, or
4    operate electric generation and co-generation facilities
5    that use indigenous coal or renewable resources, or both,
6    financed with bonds issued by the Authority on behalf of
7    the Agency. Any such facility that uses coal must be a
8    clean coal facility and must be constructed in a location
9    where the geology is suitable for carbon sequestration. The
10    Agency may also develop, finance, construct, or operate a
11    carbon sequestration facility.
12            (1) The Agency may enter into contractual
13        arrangements with private and public entities,
14        including but not limited to municipal electric
15        systems, governmental aggregators, and rural electric
16        cooperatives, to plan, site, construct, improve,
17        rehabilitate, and operate those electric generation
18        and co-generation facilities. No contract shall be
19        entered into by the Agency that would jeopardize the
20        tax-exempt status of any bond issued in connection with
21        a project for which the Agency entered into the
22        contract.
23            (2) The Agency shall hold at least one public
24        hearing before entering into any such contractual
25        arrangements. At least 30-days' notice of the hearing
26        shall be given by publication once in each week during

 

 

SB2522- 38 -LRB099 18581 EGJ 42960 b

1        that period in 6 newspapers within the State, at least
2        one of which has a circulation area that includes the
3        location of the proposed facility.
4            (3) The first facility that the Agency develops,
5        finances, or constructs shall be a facility that uses
6        coal produced in Illinois. The Agency may, however,
7        also develop, finance, or construct renewable energy
8        facilities after work on the first facility has
9        commenced.
10            (4) The Agency may not develop, finance, or
11        construct a nuclear power plant.
12            (5) The Agency shall assess fees to applicants
13        seeking to partner with the Agency on projects.
14        (d) Use of electricity generated by the Agency's
15    facilities. The Agency may supply electricity produced by
16    the Agency's facilities to municipal electric systems,
17    governmental aggregators, or rural electric cooperatives
18    in Illinois. The electricity shall be supplied at cost.
19            (1) Contracts to supply power and energy from the
20        Agency's facilities shall provide for the effectuation
21        of the policies set forth in this Act.
22            (2) The contracts shall also provide that,
23        notwithstanding any provision in the Public Utilities
24        Act, entities supplied with power and energy from an
25        Agency facility shall supply the power and energy to
26        retail customers at the same price paid to purchase

 

 

SB2522- 39 -LRB099 18581 EGJ 42960 b

1        power and energy from the Agency.
2    (e) Electric utilities shall not be required to purchase
3electricity directly or indirectly from facilities developed
4or sponsored by the Agency.
5    (f) The Agency may sell excess capacity and excess energy
6into the wholesale electric market at prevailing market rates;
7provided, however, the Agency may not sell excess capacity or
8excess energy through the procurement process described in
9Section 16-111.5 of the Public Utilities Act.
10    (g) The Agency shall not directly sell electric power and
11energy to retail customers. Nothing in this paragraph shall be
12construed to prohibit sales to municipal electric systems,
13governmental aggregators, or rural electric cooperatives.
14(Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09.)
 
15    (20 ILCS 3855/1-125)
16    Sec. 1-125. Agency annual reports. By February 15 of each
17year December 1, 2011 and each December 1 thereafter, the
18Agency shall report annually to the Governor and the General
19Assembly on the operations and transactions of the Agency. The
20annual report shall include, but not be limited to, each of the
21following:
22        (1) The average quantity, price, and term of all
23    contracts for electricity procured under the procurement
24    plans for electric utilities.
25        (2) (Blank). The quantity, price, and rate impact of

 

 

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1    all renewable resources purchased under the electricity
2    procurement plans for electric utilities.
3        (3) The quantity, price, and rate impact of all energy
4    efficiency and demand response measures purchased for
5    electric utilities, and any measures included in the
6    procurement plan pursuant to Section 16-111.5B of the
7    Public Utilities Act.
8        (4) The amount of power and energy produced by each
9    Agency facility.
10        (5) The quantity of electricity supplied by each Agency
11    facility to municipal electric systems, governmental
12    aggregators, or rural electric cooperatives in Illinois.
13        (6) The revenues as allocated by the Agency to each
14    facility.
15        (7) The costs as allocated by the Agency to each
16    facility.
17        (8) The accumulated depreciation for each facility.
18        (9) The status of any projects under development.
19        (10) Basic financial and operating information
20    specifically detailed for the reporting year and
21    including, but not limited to, income and expense
22    statements, balance sheets, and changes in financial
23    position, all in accordance with generally accepted
24    accounting principles, debt structure, and a summary of
25    funds on a cash basis.
26        (11) The average quantity, price, contract type and

 

 

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1    term, and rate impact of all renewable resources purchased
2    pursuant to long-term contracts under the electricity
3    procurement plans for electric utilities.
4        (12) A comparison of the costs associated with the
5    Agency's procurement of renewable energy resources to (A)
6    the Agency's costs associated with electricity generated
7    by other types of generation facilities and (B) the
8    benefits associated with the Agency's procurement of
9    renewable energy resources.
10        (13) An analysis of the rate impacts associated with
11    the Illinois Power Agency's procurement of renewable
12    resources, including, but not limited to, any long-term
13    contracts, on the eligible retail customers of electric
14    utilities. The analysis shall include the Agency's
15    estimate of the total dollar impact that the Agency's
16    procurement of renewable resources has had on the annual
17    electricity bills of the customer classes that comprise
18    each eligible retail customer class taking service from an
19    electric utility.
20        (14) An analysis of how the operation of the
21    alternative compliance payment mechanism, any long-term
22    contracts, or other aspects of the applicable renewable
23    portfolio standards impacts the rates of customers of
24    alternative retail electric suppliers.
25(Source: P.A. 97-658, eff. 1-13-12.)
 

 

 

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1    Section 10. The State Finance Act is amended by changing
2Section 6z-75 as follows:
 
3    (30 ILCS 105/6z-75)
4    Sec. 6z-75. The Illinois Power Agency Trust Fund.
5    (a) Creation. The Illinois Power Agency Trust Fund is
6created as a special fund in the State treasury. The State
7Treasurer shall be the custodian of the Fund. Amounts in the
8Fund, both principal and interest not appropriated, shall be
9invested as provided by law.
10    (b) Funding and investment.
11        (1) The Illinois Power Agency Trust Fund may accept,
12    receive, and administer any grants, loans, or other funds
13    made available to it by any source. Any such funds received
14    by the Fund shall not be considered income, but shall be
15    added to the principal of the Fund.
16        (2) The investments of the Fund shall be managed by the
17    Illinois State Board of Investment, for the purpose of
18    obtaining a total return on investments for the long term,
19    as provided for under Article 22A of the Illinois Pension
20    Code.
21    (c) Investment proceeds. Subject to the provisions of
22subsection (d) of this Section, the General Assembly may
23annually appropriate from the Illinois Power Agency Trust Fund
24to the Illinois Power Agency Operations Fund an amount
25calculated not to exceed 90% of the prior fiscal year's annual

 

 

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1investment income earned by the Fund to the Illinois Power
2Agency. Any investment income not appropriated by the General
3Assembly in a given fiscal year shall be added to the principal
4of the Fund, and thereafter considered a part thereof and not
5subject to appropriation as income earned by the Fund.
6    (d) Expenditures.
7        (1) During Fiscal Year 2008 and Fiscal Year 2009, the
8    General Assembly shall not appropriate any of the
9    investment income earned by the Illinois Power Agency Trust
10    Fund to the Illinois Power Agency.
11        (2) During Fiscal Year 2010 and Fiscal Year 2011, the
12    General Assembly shall appropriate a portion of the
13    investment income earned by the Illinois Power Agency Trust
14    Fund to repay to the General Revenue Fund of the State of
15    Illinois those amounts, if any, appropriated from the
16    General Revenue Fund for the operation of the Illinois
17    Power Agency during Fiscal Year 2008 and Fiscal Year 2009,
18    so that at the end of Fiscal Year 2011, the entire amount,
19    if any, appropriated from the General Revenue Fund for the
20    operation of the Illinois Power Agency during Fiscal Year
21    2008 and Fiscal Year 2009 will be repaid in full to the
22    General Revenue Fund.
23        (3) In Fiscal Year 2012 and thereafter, the General
24    Assembly shall consider the need to balance its
25    appropriations from the investment income earned by the
26    Fund with the need to provide for the growth of the

 

 

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1    principal of the Illinois Power Agency Trust Fund in order
2    to ensure that the Fund is able to produce sufficient
3    investment income to fund the operations of the Illinois
4    Power Agency in future years.
5        (4) If the Illinois Power Agency shall cease
6    operations, then, unless otherwise provided for by law or
7    appropriation, the principal and any investment income
8    earned by the Fund shall be transferred into the
9    Supplemental Low-Income Energy Assistance Program (LIHEAP)
10    Fund under Section 13 of the Energy Assistance Act of 1989.
11    (e) Implementation. The provisions of this Section shall
12not be operative until the Illinois Power Agency Trust Fund has
13accumulated a principal balance of $25,000,000.
14(Source: P.A. 95-481, eff. 8-28-07.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.