Illinois General Assembly - Full Text of HB1871
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Full Text of HB1871  95th General Assembly



State of Illinois
2007 and 2008


Introduced 2/23/2007, by Rep. Elaine Nekritz


220 ILCS 5/9-220.3 new

    Amends the Public Utilities Act. Requires an electric utility to procure or obtain renewable energy resources in amounts equal to provided quantities. Requires an electric utility to report to the Illinois Commerce Commission regarding compliance with renewable energy resource standards by April 1 of each year beginning in 2008. Provides penalties for an electric utility that fails to procure or obtain the full amount of renewable energy resources as required by specified provisions. Provides that the Commission shall adopt rules as necessary within 12 months after the effective date of the amendatory Act to assist in implementing methods of procurement, accounting, tracking, and reporting in order to achieve the stated objectives. Provides that electric utilities may enter into long-term contracts of up to 20 years with providers of renewable energy resources. Provides that the provisions shall not prohibit an electric utility from issuing a competitive solicitation for renewable energy resources in order to meet the required standards. Effective immediately.

LRB095 09347 MJR 31995 b






HB1871 LRB095 09347 MJR 31995 b

1     AN ACT concerning regulation.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Public Utilities Act is amended by adding
5 Section 9-220.3 as follows:
6     (220 ILCS 5/9-220.3 new)
7     Sec. 9-220.3. Renewable energy portfolio standard and
8 energy efficiency portfolio standard.
9     (a) The General Assembly finds and declares that it is
10 desirable to obtain the environmental quality, public health,
11 employment, economic development, rate stabilization, and fuel
12 diversity benefits of developing new renewable energy
13 resources for use in Illinois. The General Assembly has
14 previously found and declared that the benefits of electricity
15 from renewable energy resources accrue to the public at large,
16 thus consumers and electric utilities and alternative retail
17 electric suppliers share an interest in developing and using a
18 significant level of these environmentally preferable
19 resources in the State's electricity supply portfolio. The
20 General Assembly has previously found and declared that
21 renewable forms of energy should be promoted as an important
22 element of the energy and environmental policies of the State.
23     (b) For purposes of this Section:



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1     "Renewable energy credit" means a tradable credit that
2 represents the environmental attributes of a certain amount of
3 energy produced from a renewable energy resource.
4     "Renewable energy resources" includes energy and renewable
5 energy credits from wind, solar thermal energy, photovoltaic
6 cells and panels, dedicated crops grown for energy production
7 and organic waste biomass, hydropower that does not involve new
8 construction or significant expansion of hydropower dams, and
9 other such alternative sources of environmentally preferable
10 energy. "Renewable energy resources" does not include,
11 however, energy from the incineration, burning or heating of
12 waste wood, tires, garbage, general household, institutional
13 and commercial waste, industrial lunchroom or office waste,
14 landscape waste, or construction or demolition debris.
15     (c) The following renewable energy portfolio standards
16 shall apply:
17         (1) Each electric utility shall procure or obtain
18     renewable energy resources in amounts equal to at least the
19     following percentages of the total electricity that it
20     supplies to its Illinois customers: 2% by December 31,
21     2007; 3% by December 31, 2008; 4% by December 31, 2009; 5%
22     by December 31, 2010; 6% by December 31, 2011; 7% by
23     December 31, 2012; 8% by December 31, 2013; 9% by December
24     31, 2014; and 10% by December 31, 2015. To the extent that
25     it is available, at least 75% of the renewable energy
26     resources used to meet these standards shall come from wind



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1     generation.
2         (2) For the purpose of this subsection (c), the
3     required procurement of renewable energy resources for a
4     particular year shall be measured as a percentage of the
5     actual amount of electricity (megawatthours) supplied by
6     the electric utility in the calendar year ending
7     immediately prior to the procurement.
8         (3) Notwithstanding the requirements of item (1), an
9     electric utility may reduce the amount of electric energy
10     procured under new contracts from renewable energy
11     resources in any single year by an amount necessary to
12     limit the estimated average net increase to customers, due
13     to these contracts, to be no more than 0.5% of customers'
14     total electricity bills for the calendar year ending
15     immediately prior to the procurement, subject to
16     adjustments for any known subsequent rate increases. Any
17     reductions in one year shall be offset by additional
18     procurement in the following years subject to the annual
19     limitation set forth in this subsection (c).
20         (4) In order to achieve improved air and water quality,
21     additional environmental benefits, and better public
22     health and economic development for Illinois, renewable
23     energy resources shall be counted for the purpose of
24     meeting the renewable energy standards set forth in item
25     (1) only if they are generated from facilities located in
26     Illinois or in a serious or severe ozone non-attainment



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1     area as designated by the United States Environmental
2     Protection Agency, in another directly adjacent state.
3     Renewable energy resources may be counted for purposes of
4     the renewable energy standards set forth in item (1) after
5     December 31, 2010 if they are generated from a facility
6     anywhere in a directly adjacent state or in any state that
7     is currently in the United States Environmental Protection
8     Agency Region V, and if that state has entered into an
9     agreement with Illinois as provided in item (5), and if the
10     renewable energy resources procured meet the definition
11     set forth in subsection (b) of this Section.
12         (5) The Department of Commerce and Economic
13     Opportunity and other State officials shall attempt to work
14     with public officials in directly adjacent states and other
15     states currently in United States Environmental Protection
16     Agency Region V to develop an agreement in which electric
17     utilities in Illinois shall be allowed after December 31,
18     2010, to count for the purpose of meeting the designated
19     renewable energy standards set forth in item (1) some
20     renewable energy resources generated in a directly
21     adjacent state or in any state that is currently in United
22     States Environmental Protection Agency Region V if that
23     state has enacted renewable energy portfolio standards and
24     that other state also allows renewable energy resources
25     generated in Illinois to be counted towards meeting its
26     statutory renewable energy standards on substantially the



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1     same basis. For the purposes of such an agreement, all
2     renewable energy resources procured must meet the
3     definition set forth in subsection (b) of this Section.
4         (6) Each electric utility shall report to the
5     Commission on compliance with these standards by April 1st
6     of each year, beginning in 2008.
7         (7) If an electric utility does not procure or obtain
8     the full amount of renewable energy resources specified by
9     the standards in item (1), as modified by the limitations
10     of item (3), then the electric utility shall pay a penalty
11     of $50 per megawatthour each year for any shortfall unless
12     and until the utility makes sufficient purchases to meet
13     the requirement. Provided, however, that, if the electric
14     utility proves to the Commission that renewable energy
15     resources are not available in sufficient quantities to
16     meet the renewable energy standards set forth in item (1),
17     as modified by the limitations of item (3), and, if the
18     Commission finds that the electric utility has, in fact,
19     proved that the renewable energy resources are not
20     available in sufficient quantities, after notice and a
21     hearing conducted in accordance with the Commission's
22     rules of practice, then the Commission shall waive the
23     penalty. Any penalty payment shall be deposited into the
24     Renewable Energy Resource Trust Fund to be only used by the
25     Department of Commerce and Economic Opportunity for the
26     sole purposes of supporting the actual development,



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1     construction, and utilization of renewable energy projects
2     in Illinois.
3         (8) The Commission shall adopt rules as necessary
4     within 12 months after the effective date of this
5     amendatory Act of the 95th General Assembly to assist in
6     implementing this Section including, but not limited to,
7     methods of procurement, accounting, tracking, and
8     reporting in order to achieve the full objectives of this
9     Section. Such rules shall also provide for recovery of
10     costs incurred and the pass through to customers of any
11     savings achieved by electric utilities as a result of
12     procuring or obtaining the renewable energy resources
13     specified under item (1). The rate elements and rates used
14     for such cost recovery may be established by the electric
15     utility, subject to the Commission's review and approval,
16     outside the context of a general rate case.
17         (9) In connection with their compliance with the
18     requirements of item (1), electric utilities may enter into
19     long-term contracts of up to 20 years in length with
20     providers of renewable energy resources and the costs or
21     savings associated with those contracts shall be reflected
22     in tariffed rates for the duration of those contracts.
23         (10) Nothing in this Section shall prohibit an electric
24     utility from issuing a competitive solicitation for
25     renewable energy resources in order to meet the standards
26     of item (1) and from beginning to recover the associated



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1     costs in advance of the conclusion of the rulemaking
2     referenced in item (8), provided that such electric utility
3     shall have first requested and received Commission
4     approval for the design and conduct of such solicitation
5     and the associated cost recovery methodology and tariff,
6     which the Commission shall review and consider.
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.