Illinois General Assembly - Full Text of SB1104
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB1104  102nd General Assembly

SB1104eng 102ND GENERAL ASSEMBLY



 


 
SB1104 EngrossedLRB102 04897 BMS 14916 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Regional Generation Reliability Task Force Act.
 
6    Section 5. Findings. The General Assembly hereby finds,
7determines, and declares the following:
8        (1) The reliability of the Illinois electricity grid
9    is critically important to the consumers, businesses, and
10    all residents of Illinois and should not be compromised.
11        (2) Illinois has taken definitive steps toward
12    redefining the generation mix in Illinois.
13        (3) the Midcontinent Independent System Operator, Inc.
14    ("MISO") is an independent, not-for-profit, member-based
15    organization responsible for operating the power grid
16    across 15 states and the Canadian province of Manitoba,
17    serving 42 million people.
18        (4) The PJM Interconnection LLC ("PJM"), is an
19    independent not-for-profit, member-based Regional
20    Transmission Organization ("RTO") that manages the
21    operations, supply, and movement of power across 13 states
22    and the District of Columbia, serving 65 million people.
23        (5) Illinois is served by both PJM and MISO, which

 

 

SB1104 Engrossed- 2 -LRB102 04897 BMS 14916 b

1    collectively ensure that sufficient electric power
2    generation supply and transmission are available to meet
3    electric demand every minute of every day for over 107
4    million people across 28 states and 2 countries. Wholesale
5    electric power generation is regulated by the Federal
6    Energy Regulatory Commission due to the interstate and
7    international nature of the transmission grid operated by
8    PJM and MISO. As such, Illinois policy changes at the
9    State level can affect the reliability, availability, and
10    cost of power for seniors, families, businesses,
11    municipalities, universities, and hospitals across the
12    region.
13        (6) When natural disasters occur, such as ice storms,
14    blizzards, tornadoes, and hurricanes, states participating
15    in PJM and MISO have provided support to each other
16    through power generation restoration missions. The
17    inability to deliver power generation in critical times
18    can have a huge economic impact and can also result in
19    death across the PJM and MISO Regional Transmission
20    Organizations.
21        (7) PJM and MISO have multiple markets in which power
22    suppliers participate. The Capacity Market, Day-Ahead
23    Energy Market, and Frequency Market are markets that power
24    generators participate in to ensure over 107 million
25    people across 28 states and 2 countries receive the right
26    amount of electricity every minute of every day.

 

 

SB1104 Engrossed- 3 -LRB102 04897 BMS 14916 b

1            (A) Capacity markets are used in wholesale
2        electricity markets to pay resources for being
3        available to meet peak electricity demand. Capacity is
4        not actual electricity, but rather the ability to
5        produce electricity when called upon. Capacity is
6        procured, sometimes multiple years in advance of when
7        it is needed, based on projections of future energy
8        needs using historical demand requirements.
9            (B) The Day-Ahead Energy Market lets market
10        participants commit to buy or sell wholesale
11        electricity one day before the power is needed, to
12        help avoid price volatility. The Real-Time Energy
13        Market balances the differences between day-ahead
14        commitments and the actual real-time demand for and
15        production of electricity.
16            (C) The power grid operates, and shall be
17        maintained, at a constant frequency of 60 hertz.
18        Significant deviation from this level can result in
19        catastrophic damage to the power grid as well as
20        household appliances. Frequency is maintained when
21        electric generators automatically add or remove power
22        from the grid. For example, a large power plant
23        suddenly tripping offline reduces the total amount of
24        available kinetic energy, leading the rotating
25        generators on the system to start rotating less
26        rapidly and thereby decreasing the alternating current

 

 

SB1104 Engrossed- 4 -LRB102 04897 BMS 14916 b

1        frequency across the grid system. Since a generator
2        turbine's rotational velocity is directly coupled to
3        the grid frequency, the generator's control systems
4        can sense this frequency decline as an indicator of
5        insufficient energy provision. The control system
6        within each power plant, which usually has been in the
7        form of a governor, can then automatically increase
8        the plant's power output. This process is autonomous
9        because the governor does not have to wait for a
10        central dispatcher to send a signal, thus bypassing
11        communications system delays.
12        (8) The shifting generation mix in PJM and MISO will
13    require optimum performance and an increased focus on the
14    need to retain reliability as certain existing generators
15    shut down operations and new, intermittent generators are
16    added. Additionally, increased power generation
17    consumption due to increased electric vehicles and
18    charging stations, along with increased electrification of
19    building heating needs will undoubtedly place greater
20    demand on the power system.
21        (9) Illinois has a responsibility to ensure the
22    performance of Illinois and Regional Power Grids are safe,
23    reliable, and maintain the necessary capacity to meet the
24    power demands of Illinois residents. Additionally,
25    Illinois has an obligation to do its part to ensure the
26    regional power grid is safe and reliable for its

 

 

SB1104 Engrossed- 5 -LRB102 04897 BMS 14916 b

1    partnering states. As part of the regional power grid,
2    Illinois should be concerned that shuttered facilities in
3    Illinois will be replaced by higher cost, higher emissions
4    resources from other states.
 
5    Section 10. Illinois Regional Generation Reliability Task
6Force.
7    (a) The Illinois Regional Generation Reliability Task
8Force is created. The Task Force shall monitor the reliability
9of the Illinois power grid. The Task Force should consider the
10present and future needs of Illinois consumers while
11simultaneously addressing any issues related to the
12performance and reliability of power generation and
13transmission and being mindful of the ultimate cost to
14consumers.
15    (b) The duties and responsibilities of the Task Force
16include the following:
17        (1) Identifying and assessing policies, rules, and
18    laws that have the potential to significantly affect the
19    reliability of the Illinois and regional power grids.
20        (2) Developing a set of standards and conditions that
21    will ensure optimal performance of the Illinois and
22    regional power grids based on new and emerging
23    technologies.
24        (3) Identifying opportunities to improve the Illinois
25    power supply mix through existing and new laws to ensure

 

 

SB1104 Engrossed- 6 -LRB102 04897 BMS 14916 b

1    continued power reliability at affordable rates for
2    Illinois consumers.
3        (4) Compiling research and best practices from other
4    states and countries on how to deploy technology to
5    benefit the performance and reliability of the power grid.
6        (5) Developing tools to assess the impact of proposed
7    policies and evaluate their costs and benefits on
8    families, employers, the public, Illinois, and other
9    states as part of the Illinois and regional power grids.
10        (6) Identifying data, reports, and relevant
11    information on the performance of the power grid to ensure
12    reliability and that pricing of power generation is in the
13    best interest of families, businesses, and communities in
14    Illinois.
15        (7) Providing its findings and recommendations for
16    policy changes and any revisions to policies, rules, and
17    laws that will facilitate the stability and reliability of
18    the Illinois and regional power grids on an annual basis
19    to the General Assembly.
20        (8) Developing and proposing legislative concepts to
21    ensure the future stability and reliability of the power
22    grid.
 
23    Section 15. Membership; meetings.
24    (a) The members of the Illinois Regional Generation
25Reliability Task Force shall be composed of the following:

 

 

SB1104 Engrossed- 7 -LRB102 04897 BMS 14916 b

1        (1) three Senators appointed by the President of the
2    Senate, one of whom shall be designated by the President
3    as the co-chair of the Task Force;
4        (2) three Representatives appointed by the Speaker of
5    the House of Representatives, one of whom shall be
6    designated by the Speaker as the co-chair of the Task
7    Force;
8        (3) two Senators appointed by the Minority Leader of
9    the Senate;
10        (4) two Representatives appointed by the Minority
11    Leader of the House of Representatives;
12        (5) one member appointed by the Governor whose sole
13    role is dedicated to energy policy for the State;
14        (6) one member of a State or local labor organization
15    appointed by the President of the Senate;
16        (7) one member of a State or local labor organization
17    appointed by the Speaker of the House of Representatives;
18        (8) one representative from PJM RTO, designated by
19    PJM;
20        (9) one representative from the PJM Independent Market
21    Monitor organization, designated by the PJM Independent
22    Market Monitor organization;
23        (10) one representative from MISO RTO, designated by
24    MISO;
25        (11) one representative from the MISO Independent
26    Market Monitor organization, designated by the MISO

 

 

SB1104 Engrossed- 8 -LRB102 04897 BMS 14916 b

1    Independent Market Monitor organization;
2        (12) six representatives from 6 different power
3    generation companies that operate in the PJM or MISO
4    regional transmission organization, 2 appointed by the
5    President of the Senate, 2 appointed by the Speaker of the
6    House of Representatives, one appointed by the Minority
7    Leader in the Senate, and one appointed by the Minority
8    Leader in the House of Representatives;
9        (13) one representative from a statewide organization
10    representing retail merchants, appointed by the President
11    of the Senate;
12        (14) one representative from a statewide organization
13    representing manufacturers, appointed by the Speaker of
14    the House of Representatives;
15        (15) one representative from a statewide organization
16    representing retired people, appointed by the Speaker of
17    the House of Representatives;
18        (16) one representative from a minority-owned
19    geothermal group, appointed by the President of the
20    Senate;
21        (17) one representative from a statewide organization
22    representing business, appointed by the Speaker of the
23    House of Representatives;
24        (18) two representatives from environmental law
25    groups, one appointed by the President of the Senate and
26    one appointed by the Speaker of the House of

 

 

SB1104 Engrossed- 9 -LRB102 04897 BMS 14916 b

1    Representatives;
2        (19) the Director of the Illinois Power Agency, or the
3    Director's designee;
4        (20) the Director of the Environmental Protection
5    Agency, or the Director's designee; and
6        (21) the Chair of the Illinois Commerce Commission, or
7    the Chair's designee.
8    (b) Appointments for the Task Force shall be made by July
91, 2022. The Task Force shall hold 7 meetings annually, either
10remotely or in person, and the first meeting shall be held
11within 30 days after appointments are made.
12    (c) Members of the Task Force shall serve without
13compensation.
14    (d) The Illinois Commerce Commission shall provide
15administrative support to the Task Force in conjunction with
16the Independent Market Monitors for the MISO and PJM Regional
17Transmission Organizations.
 
18    Section 20. Annual report.
19    (a) The Illinois Regional Generation Reliability Task
20Force shall issue an annual report based upon its findings in
21the course of performing its duties and responsibilities. The
22report shall be written by the administrative staff of the
23Task Force and with staff assistance from the Independent
24Market Monitors from the MISO and PJM Regional Transmission
25Organizations.

 

 

SB1104 Engrossed- 10 -LRB102 04897 BMS 14916 b

1    (b) The Illinois Regional Generation Reliability Task
2Force shall submit its first report on February 1, 2023, and
3each February 1 thereafter to the General Assembly upon the
4completion of its meeting schedule and shall continue to issue
5annual reports each year.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.