093_HB2200sam001

 










                                     LRB093 07959 AMC 16961 a

 1                    AMENDMENT TO HOUSE BILL 2200

 2        AMENDMENT NO.     .  Amend House Bill 2200  by  replacing
 3    the title with the following:
 4        "AN ACT concerning energy."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Renewable Energy, Energy Efficiency, and
 8    Coal Resources Development Law of 1997 is amended by changing
 9    Section 6-3 as follows:

10        (20 ILCS 687/6-3)
11        (Section scheduled to be repealed on December 16, 2007)
12        Sec. 6-3. Renewable energy resources program.
13        (a)  The Department of Commerce and Community Affairs, to
14    be called the "Department" hereinafter  in  this  Law,  shall
15    administer  the Renewable Energy Resources Program to provide
16    grants, loans, and other incentives to foster  investment  in
17    and the development and use of renewable energy resources.
18        (b)  The  Department shall establish eligibility criteria
19    for grants, loans, and other incentives to foster  investment
20    in and the development and use of renewable energy resources.
21    These  criteria  shall  be  reviewed annually and adjusted as
 
                            -2-      LRB093 07959 AMC 16961 a
 1    necessary. The criteria should promote the goal of  fostering
 2    investment  in  and  the development and use, in Illinois, of
 3    renewable energy resources.
 4        (c)  The Department shall accept applications for grants,
 5    loans, and other incentives to foster investment in  and  the
 6    development and use of renewable energy resources.
 7        (d)  To   the   extent   that  funds  are  available  and
 8    appropriated, the Department shall provide grants, loans, and
 9    other  incentives  to  applicants  that  meet  the   criteria
10    specified by the Department.
11        (e)  The  Department shall conduct an annual study on the
12    use  and  availability  of  renewable  energy  resources   in
13    Illinois.  Each year, the Department shall submit a report on
14    the study to the General Assembly. This report shall  include
15    suggestions   for   legislation   which  will  encourage  the
16    development and use of renewable energy resources. In 2007 or
17    the  calendar  year  following  the  end  of  the   mandatory
18    transition  period as defined in Section 16-102 of the Public
19    Utilities  Act,  whichever is later, the Department shall, in
20    coordination  with  the  Illinois  Commerce  Commission,  the
21    Illinois Environmental Protection Agency,  and  the  Illinois
22    Rural Affairs Council, evaluate the extent to which renewable
23    energy resources are being used or have been developed within
24    the  State, and shall also at such time specifically evaluate
25    and make recommendations regarding (i) the establishment of a
26    mandatory renewable portfolio standard to  be  applicable  to
27    all   electric  utilities  and  alternative  retail  electric
28    suppliers as defined in Article XVI of the  Public  Utilities
29    Act  and  (ii)  the  viability of the 5% goal for 2010 or the
30    third year following the  end  of  the  mandatory  transition
31    period,  whichever is later, and the 15% goal for 2020 or the
32    thirteenth year following the end of the mandatory transition
33    period, whichever is later, as set forth in subsection (f) of
34    Section 5 of the Illinois  Resource  Development  and  Energy
 
                            -3-      LRB093 07959 AMC 16961 a
 1    Security Act.  In evaluating the establishment of a mandatory
 2    renewable  portfolio standard and the viability of the 5% and
 3    15% goals, the Department  shall  specifically  evaluate  and
 4    consider  the adequacy of existing generation capacity in the
 5    State and in the region, the availability of renewable energy
 6    in the State and in the region, the effect of such a standard
 7    on the costs of energy service, the effect of such a standard
 8    on the development of competition in the provision of  retail
 9    energy  services,  including value added green power products
10    and other renewable energy-based offerings, the impact on the
11    environment or quality of life, the effect on  employment  in
12    the  State,  and  any  other  factors  affecting  the State's
13    economy.  The Department shall also  consider  the  continued
14    availability   of   existing  federal  tax  credits  and  the
15    development  at  both  State  and  federal  levels   of   the
16    infrastructure  and  rules  and  regulations that promote the
17    development and utilization of renewable energy resources.
18        (f)  As used in this Law,  "renewable  energy  resources"
19    includes energy from wind, solar thermal energy, photovoltaic
20    cells  and  panels, hydrogen fuel cells (fuel cells utilizing
21    hydrogen derived from any of the renewable  energy  resources
22    defined in this subsection), crop-derived bio fuels, landfill
23    gas,   methane   from   anaerobic  decomposition  of  organic
24    materials, dedicated crops grown for  energy  production  and
25    organic  waste  biomass, hydropower that does not involve new
26    construction or significant expansion of hydropower dams, and
27    other such alternative sources of environmentally  preferable
28    energy.  Energy  from  landfill gas shall not be counted as a
29    renewable energy resource to  the  extent  that  energy  from
30    landfill  gas  exceeds 25% of an electric utility's renewable
31    energy resources portfolio. "Renewable energy resources" does
32    not include, however, energy from the  incineration,  burning
33    or  heating of waste wood, tires, garbage, general household,
34    institutional and commercial waste, industrial  lunchroom  or
 
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 1    office  waste, landscape waste, or construction or demolition
 2    debris.
 3        (g)  There is created the  Energy  Efficiency  Investment
 4    Fund  as  a  special  fund  in  the  State  Treasury,  to  be
 5    administered  by the Department to support the development of
 6    technologies for wind, biomass, and solar power in  Illinois.
 7    The Department may accept private and public funds, including
 8    federal funds, for deposit into the Fund.
 9    (Source: P.A. 92-12, eff. 7-1-01.)

10        Section 10.  The Illinois Resource Development and Energy
11    Security  Act  is  amended  by  changing Section 5 and adding
12    Section 7 as follows:

13        (20 ILCS 688/5)
14        Sec. 5.  Findings.  The General Assembly finds that:
15        (a)  Growth of the State's population and  economic  base
16    creates   has   created   a   need  for  ensuring  long  term
17    availability of sufficient new electric  generation  capacity
18    in Illinois.
19        (b)  Illinois has considerable natural resources that are
20    currently  underutilized and could support development of new
21    electric generation capacity power at an affordable price.
22        (c)  The development of new electric generating  capacity
23    is  needed  if  the  State is to continue to be successful in
24    attracting new businesses and jobs.
25        (d)  Certain regions  of  the  State,  such  as  Southern
26    Illinois,   could   benefit   greatly   from  new  employment
27    opportunities created by development of  electric  generating
28    plants  utilizing  the  plentiful supply of Illinois coal and
29    the development of  renewable  energy  resources  within  the
30    State  that  may  enhance  the  State's economy while meeting
31    energy needs.
32        (e)  Technology can be deployed that  allows  high-sulfur
 
                            -5-      LRB093 07959 AMC 16961 a
 1    Illinois  coal  to be burned efficiently while meeting strict
 2    State and federal air quality limitations. Specifically,  the
 3    State  of  Illinois  will encourage the use of advanced clean
 4    coal technology, such as coal gasification.
 5        (f)  Renewable forms of energy should be promoted  as  an
 6    important element of the energy and environmental policies of
 7    the  State. and It is a goal of the State that at least 2% 5%
 8    of  the  electric  State's  energy  used  within  the   State
 9    production  and  use be based on generation from derived from
10    renewable forms  of  energy  resources  or  renewable  energy
11    credits   or  certificates  by  2007  or  the  calendar  year
12    following  the  end  of  the  mandatory  transition   period,
13    whichever  is  later,  at  least 5% by 2010 or the end of the
14    third year following the  end  of  the  mandatory  transition
15    period,  whichever  is later, and at least 15% by 2020 or the
16    end of the thirteenth year following the end of the mandatory
17    transition  period,  whichever  is  later.  The   State,   in
18    contracting  to  meet the electric supply requirements of its
19    agencies and facilities, and municipal systems  and  electric
20    cooperatives  described  in  Section  17-100  of  the  Public
21    Utilities  Act,  shall  endeavor  to acquire renewable energy
22    resources, which may  include  renewable  energy  credits  or
23    certificates,  that  support the attainment of this goal. The
24    General Assembly further finds that attainment of  this  goal
25    is  dependent  on  the  continued  availability  of  existing
26    federal  tax  credits  and  development at both the State and
27    federal  levels  of  the   infrastructure   and   rules   and
28    regulations  that  promote the development and utilization of
29    renewable energy resources. For the purposes of this Section,
30    "mandatory transition period"  shall  have  the  meaning  set
31    forth  in Section 16-102 of the Public Utilities Act. by 2010
32    and at least 15% from renewable forms of energy by 2020.
33    (Source: P.A. 92-12, eff. 7-1-01.)
 
                            -6-      LRB093 07959 AMC 16961 a
 1        (20 ILCS 688/7 new)
 2        Sec. 7. Renewable energy based offerings and programs.
 3        (a)  An  electric  utility  shall,  individually  or   in
 4    conjunction  with  an alternative retail electric supplier or
 5    other market entities, offer a program  or  programs  to  its
 6    retail customers that provide an opportunity to contribute to
 7    the development of renewable energy resources. In structuring
 8    these programs, the electric utility may do any or all of the
 9    following: (i) participate in a program or programs to issue,
10    trade,  monitor  the sale or exchange of, and track renewable
11    energy  credits  or  certificates  applicable  to,  renewable
12    energy resources; (ii) aggregate groups of  retail  customers
13    interested  in purchasing renewable energy for the purpose of
14    obtaining all or a portion of their  electric  energy  supply
15    through  renewable energy or demand response resources; (iii)
16    utilize demand response resources in meeting the  demands  of
17    retail  customers  in  its service area; (iv) directly supply
18    power and energy from renewable energy  resources  to  retail
19    customers  in  its  service  area;  or (v) purchase renewable
20    energy as part of the supply portfolio used by the utility to
21    provide power and energy as  a  tariffed  service  to  retail
22    customers  in  its  service  area.  Programs  established  or
23    offered pursuant to items (i) through (iv) of this subsection
24    may,  at  the  utility's  option,  be  offered either through
25    contracts or as a tariffed  service.  For  purposes  of  this
26    Section,  "electric  utility",  "alternative  retail electric
27    supplier", "retail customer", and  "tariffed  service"  shall
28    have  the  meanings set forth in Section 16-102 of the Public
29    Utilities Act.
30        (b) The Department,  in  cooperation  with  the  electric
31    utilities and alternative retail electric suppliers and other
32    interested  entities,  shall  design and implement a consumer
33    education program that will promote  awareness,  development,
34    and  use  of  renewable  energy resources among retail energy
 
                            -7-      LRB093 07959 AMC 16961 a
 1    consumers.  This  program  shall  include  a  conference   or
 2    conferences,  convened  by  the Governor and sponsored by the
 3    electric utilities,  that  will  focus  on  supply  portfolio
 4    development for large customers as well as match up renewable
 5    energy developers with federal and State incentives.
 6        (c)  Electric utilities shall make a good faith effort to
 7    promote  the  development and utilization of renewable energy
 8    resources among retail  energy  consumers  in  their  service
 9    areas,  and  as  part  of  that good faith effort may create,
10    offer, administer, market, advertise, or promote programs  as
11    described in subsection (a), notwithstanding any provision of
12    the  Public  Utilities Act, or any rule, regulation, or order
13    of the Illinois  Commerce  Commission  that  would  otherwise
14    limit  the electric utility's ability to do so. Evidence of a
15    good faith effort to promote the awareness, development,  and
16    utilization  of renewable energy resources may include but is
17    not limited to:
18             (i)  offering services that promote the  development
19        or utilization of renewable energy resources among retail
20        energy consumers in its service area;
21             (ii)  the   entry   by  the  electric  utility  into
22        purchase power  agreements  or    other  agreements  that
23        promote  the  development  and  utilization  of renewable
24        energy resources among retail energy consumers  in  their
25        service areas, including but not limited to agreements to
26        purchase   and   sell   renewable   energy   credits   or
27        certificates  or  to invest in projects or companies that
28        develop or utilize renewable energy resources;
29             (iii)  acquisition  of  resources  in   the   manner
30        pre-approved  by  the  Illinois  Commerce  Commission for
31        acquisition of renewable energy resources as set forth in
32        subsection (f);
33             (iv)  the  electric   utility's   participation   in
34        additional  activities  identified in subsections (a) and
 
                            -8-      LRB093 07959 AMC 16961 a
 1        (b) or other educational or training programs.
 2        (d) The goal of subsections  (a),  (b),  and  (c)  is  to
 3    promote  development  and  use  of renewable energy resources
 4    among retail energy consumers. The Department shall  evaluate
 5    that  awareness,  development,  and  use, whether measured by
 6    number  of  customers  participating  or  amount  of   energy
 7    supplied  that  reflects  or  incorporates  renewable  energy
 8    resources,  and  include that evaluation in the annual report
 9    provided  for  in  subsection  (e)  of  Section  6-3  of  the
10    Renewable  Energy,  Energy  Efficiency,  and  Coal  Resources
11    Development Law of 1997. Electric utilities  and  alternative
12    retail  electric  suppliers shall provide the Department with
13    copies of the quarterly reports prepared pursuant to  Section
14    16-127  of  the  Public  Utilities  Act and other information
15    relating to the use of renewable energy resources  since  the
16    passage  of  the  Electric  Service  Customer Choice and Rate
17    Relief Law of 1997.
18        (e)  The Illinois Commerce Commission shall, in  2007  or
19    the   calendar  year  following  the  end  of  the  mandatory
20    transition period as defined in Section 16-102 of the  Public
21    Utilities  Act,  whichever  is  later, investigate whether at
22    least 2% of the electric  energy  provided  by  the  electric
23    utility  to  retail  customers within its service area during
24    either the previous or current calendar year was or  will  be
25    based  on  generation  from  renewable  energy  resources  or
26    renewable  energy  credits  or  certificates.  In calculating
27    whether an electric utility has met this 2% goal  for  either
28    of  such  years,  the Commission shall multiply the amount of
29    energy based on generation from renewable energy resources or
30    renewable energy credits or certificates under items (ii) and
31    (iii) of subsection (c) that is derived from  sources  within
32    the  State  by 125%, but shall measure all other energy based
33    on generation from renewable energy  resources  or  renewable
34    energy credits or certificates by the actual amount of energy
 
                            -9-      LRB093 07959 AMC 16961 a
 1    derived  from such sources.  If this goal either has not been
 2    met in an electric utility's service area during the previous
 3    calendar year or is not likely to be met in the year  of  the
 4    investigation,  then the Commission shall investigate whether
 5    the electric utility has made a good faith effort  consistent
 6    with subsection (c). In making a determination of whether the
 7    electric  utility  has  made  such  a  good faith effort, the
 8    Commission shall take into account the diversity and range of
 9    options available to the electric utility, the progress  made
10    by  the  electric  utility  towards  such  2% goal, and other
11    relevant factors consistent with this Section. If an electric
12    utility has engaged in activities consistent with items  (ii)
13    and (iii) of subsection (c), such actions shall be considered
14    prima  facie  evidence  of  a  good  faith effort to meet the
15    utility's 2% goal in its  service  area.  If  the  Commission
16    finds, after notice and a hearing, that there is insufficient
17    evidence  in the quarterly reports required by subsection (d)
18    or in  other  documentation  provided  or  available  to  the
19    Commission  to  conclude that the electric utility has made a
20    good faith effort consistent with subsection  (c),  then  the
21    Commission  may require the electric utility to appear before
22    the Commission and show cause as to why the electric  utility
23    should not be held in violation of its obligations under this
24    Section. If the Commission finds, after notice and a hearing,
25    that  an  electric  utility  failed to make the required good
26    faith effort under this  Section,  then  the  Commission  may
27    require  the electric utility to pay an amount that shall not
28    exceed $12,500,000 for an electric utility that  serves  more
29    than  2,000,000  retail customers, $2,500,000 for an electric
30    utility that serves more than 1,000,000 retail customers  but
31    less  than  2,000,000  retail  customers,  $1,250,000  for an
32    electric  utility  that  serves  more  than  100,000   retail
33    customers  but  less  than  1,000,000  retail  customers, and
34    $250,000 for  an  electric  utility  that  serves  less  than
 
                            -10-     LRB093 07959 AMC 16961 a
 1    100,000   retail   customers  but  more  than  10,000  retail
 2    customers. An electric utility that serves less  than  10,000
 3    retail  customers  shall  not  be  required  to  make  such a
 4    payment.  Any assessment imposed under this subsection  shall
 5    be  paid  into  the  Renewable  Energy  Resources  Trust Fund
 6    established by Section 6-4 of the  Renewable  Energy,  Energy
 7    Efficiency,  and  Coal Resources Development Law of 1997.  In
 8    lieu of paying that  assessment  into  the  Renewable  Energy
 9    Resources  Trust  Fund,  the  electric  utility may choose to
10    fund, in the same amount of the assessment,  a  "supplemental
11    environmental   project"   (defined   as  an  environmentally
12    beneficial project that the electric utility is not otherwise
13    legally required to fund) that promotes  the  utilization  of
14    renewable energy resources.
15        (f)  An  electric  utility electing to purchase renewable
16    energy consistent with clause (v) of  subsection  (a)  shall,
17    prior  to  purchasing renewable energy to be  used as part of
18    its supply portfolio to service retail customers, be able  to
19    petition  for  and    obtain  pre-approval  from the Illinois
20    Commerce  Commission  of  its  selection  process  for   such
21    purchases.  Following the mandatory transition period defined
22    in Section 16-102 of  the  Public  Utilities  Act,  the  cost
23    associated  with  such purchases of renewable energy shall be
24    recoverable by the electric utility through its rates charged
25    to retail customers.  Any renewable energy  procured  through
26    such  a  pre-approval  process shall be presumed to have been
27    prudently procured, and the costs  of  the  renewable  energy
28    shall  be  deemed reasonable and included in regulated rates.
29    Recovery of the costs shall not be subject to any limitations
30    stated in subsection (i) of  Section  16-111  of  the  Public
31    Utilities  Act. Nothing in this subsection (f) is intended to
32    change the provisions of subsection (a) of Section 16-111  of
33    the Public Utilities Act.
 
                            -11-     LRB093 07959 AMC 16961 a
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.".