Illinois General Assembly - Full Text of HB2427
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Full Text of HB2427  98th General Assembly


Sen. Don Harmon

Filed: 5/22/2014





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2    AMENDMENT NO. ______. Amend House Bill 2427 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-56 as follows:
6    (20 ILCS 3855/1-56)
7    Sec. 1-56. Illinois Power Agency Renewable Energy
8Resources Fund.
9    (a) The Illinois Power Agency Renewable Energy Resources
10Fund is created as a special fund in the State treasury.
11    (b) The Illinois Power Agency Renewable Energy Resources
12Fund shall be administered by the Agency to procure renewable
13energy resources. Prior to June 1, 2011, resources procured
14pursuant to this Section shall be procured from facilities
15located in Illinois, provided the resources are available from
16those facilities. If resources are not available in Illinois,



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1then they shall be procured in states that adjoin Illinois. If
2resources are not available in Illinois or in states that
3adjoin Illinois, then they may be purchased elsewhere.
4Beginning June 1, 2011, resources procured pursuant to this
5Section shall be procured from facilities located in Illinois
6or states that adjoin Illinois. If resources are not available
7in Illinois or in states that adjoin Illinois, then they may be
8procured elsewhere. To the extent available, at least 75% of
9these renewable energy resources shall come from wind
10generation. Of the renewable energy resources procured
11pursuant to this Section at least the following specified
12percentages shall come from photovoltaics on the following
13schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by
14June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the
15renewable energy resources procured pursuant to this Section,
16at least the following percentages shall come from distributed
17renewable energy generation devices: 0.5% by June 1, 2013,
180.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter.
19To the extent available, half of the renewable energy resources
20procured from distributed renewable energy generation shall
21come from devices of less than 25 kilowatts in nameplate
22capacity. Renewable energy resources procured from distributed
23generation devices may also count towards the required
24percentages for wind and solar photovoltaics. Procurement of
25renewable energy resources from distributed renewable energy
26generation devices shall be done on an annual basis through



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1multi-year contracts of no less than 5 years, and shall consist
2solely of renewable energy credits.
3    The Agency shall create credit requirements for suppliers
4of distributed renewable energy. In order to minimize the
5administrative burden on contracting entities, the Agency
6shall solicit the use of third-party organizations to aggregate
7distributed renewable energy into groups of no less than one
8megawatt in installed capacity. These third-party
9organizations shall administer contracts with individual
10distributed renewable energy generation device owners. An
11individual distributed renewable energy generation device
12owner shall have the ability to measure the output of his or
13her distributed renewable energy generation device.
14    (c) The Agency shall procure renewable energy resources at
15least once each year in conjunction with a procurement event
16for electric utilities required to comply with Section 1-75 of
17the Act and shall, whenever possible, enter into long-term
18contracts on an annual basis for a portion of the incremental
19requirement for the given procurement year.
20    (d) The price paid to procure renewable energy credits
21using monies from the Illinois Power Agency Renewable Energy
22Resources Fund shall not exceed the winning bid prices paid for
23like resources procured for electric utilities required to
24comply with Section 1-75 of this Act.
25    (e) All renewable energy credits procured using monies from
26the Illinois Power Agency Renewable Energy Resources Fund shall



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1be permanently retired.
2    (f) The procurement process described in this Section is
3exempt from the requirements of the Illinois Procurement Code,
4pursuant to Section 20-10 of that Code.
5    (g) All disbursements from the Illinois Power Agency
6Renewable Energy Resources Fund shall be made only upon
7warrants of the Comptroller drawn upon the Treasurer as
8custodian of the Fund upon vouchers signed by the Director or
9by the person or persons designated by the Director for that
10purpose. The Comptroller is authorized to draw the warrant upon
11vouchers so signed. The Treasurer shall accept all warrants so
12signed and shall be released from liability for all payments
13made on those warrants.
14    (h) The Illinois Power Agency Renewable Energy Resources
15Fund shall not be subject to sweeps, administrative charges, or
16chargebacks, including, but not limited to, those authorized
17under Section 8h of the State Finance Act, that would in any
18way result in the transfer of any funds from this Fund to any
19other fund of this State or in having any such funds utilized
20for any purpose other than the express purposes set forth in
21this Section.
22    (i) Supplemental procurement process.
23        (1) Within 90 days after the effective date of this
24    amendatory Act of the 98th General Assembly, the Agency
25    shall file with the Commission a one-time supplemental
26    procurement plan limited to the procurement of renewable



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1    energy credits, if available, from new or existing
2    photovoltaics, including, but not limited to, distributed
3    photovoltaic generation. Nothing in this subsection (i)
4    requires procurement of wind generation through the
5    supplemental procurement.
6        The renewable energy credits procured pursuant to the
7    supplemental procurement plan shall be procured using up to
8    $30,000,000 from the Illinois Power Agency Renewable
9    Energy Resources Fund. The Agency shall not plan to use
10    funds from the Illinois Power Agency Renewable Energy
11    Resources Fund in excess of the monies on deposit in such
12    fund or projected to be deposited into such fund. The
13    supplemental procurement plan shall ensure adequate,
14    reliable, affordable, efficient, and environmentally
15    sustainable renewable energy resources (including credits)
16    at the lowest total cost over time, taking into account any
17    benefits of price stability.
18        To the extent available, 50% of the renewable energy
19    credits procured from distributed renewable energy
20    generation shall come from devices of less than 25
21    kilowatts in nameplate capacity. Procurement of renewable
22    energy credits from distributed renewable energy
23    generation devices shall be done through multi-year
24    contracts of no less than 5 years. The Agency shall create
25    credit requirements for counterparties. In order to
26    minimize the administrative burden on contracting



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1    entities, the Agency shall solicit the use of third parties
2    to aggregate distributed renewable energy. These third
3    parties shall enter into and administer contracts with
4    individual distributed renewable energy generation device
5    owners. An individual distributed renewable energy
6    generation device owner shall have the ability to measure
7    the output of his or her distributed renewable energy
8    generation device.
9        In developing the supplemental procurement plan, the
10    Agency shall hold at least one workshop open to the public
11    within 90 days after the effective date of this amendatory
12    Act of the 98th General Assembly and shall consider any
13    comments made by stakeholders or the public. Upon
14    development of the supplemental procurement plan within
15    this 90-day period, copies of the supplemental procurement
16    plan shall be posted and made publicly available on the
17    Agency's and Commission's websites. All interested parties
18    shall have 14 days following the date of posting to provide
19    comment to the Agency on the supplemental procurement plan.
20    All comments submitted to the Agency shall be specific,
21    supported by data or other detailed analyses, and, if
22    objecting to all or a portion of the supplemental
23    procurement plan, accompanied by specific alternative
24    wording or proposals. All comments shall be posted on the
25    Agency's and Commission's websites. Within 14 days
26    following the end of the 14-day review period, the Agency



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1    shall revise the supplemental procurement plan as
2    necessary based on the comments received and file its
3    revised supplemental procurement plan with the Commission
4    for approval.
5        (2) Within 5 days after the filing of the final
6    supplemental procurement plan at the Commission, any
7    person objecting to the supplemental procurement plan
8    shall file an objection with the Commission. Within 10 days
9    after the filing, the Commission shall determine whether a
10    hearing is necessary. The Commission shall enter its order
11    confirming or modifying the supplemental procurement plan
12    within 90 days after the filing of the supplemental
13    procurement plan by the Agency.
14        (3) The Commission shall approve the supplemental
15    procurement plan of the renewable energy credits to be
16    procured from new or existing photovoltaics, including,
17    but not limited to, distributed photovoltaic generation,
18    if the Commission determines that it will ensure adequate,
19    reliable, affordable, efficient, and environmentally
20    sustainable electric service in the form of renewable
21    energy credits at the lowest total cost over time, taking
22    into account any benefits of price stability.
23        (4) The supplemental procurement process under this
24    subsection (i) shall include each of the following
25    components:
26            (A) Procurement administrator. The Agency may



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1        retain a procurement administrator in the manner set
2        forth in item (2) of subsection (a) of Section 1-75 of
3        this Act to conduct the supplemental procurement or may
4        elect to use the same procurement administrator
5        administering the Agency's annual procurement under
6        Section 1-75.
7            (B) Solicitation, pre-qualification, and
8        registration of bidders. The procurement administrator
9        shall disseminate information to potential bidders to
10        promote a procurement event, notify potential bidders
11        that the procurement administrator may enter into a
12        post-bid price negotiation with bidders that meet the
13        applicable benchmarks, provide supply requirements,
14        and otherwise explain the competitive procurement
15        process. In addition to such other publication as the
16        procurement administrator determines is appropriate,
17        this information shall be posted on the Agency's and
18        the Commission's websites. The procurement
19        administrator shall also administer the
20        prequalification process, including evaluation of
21        credit worthiness, compliance with procurement rules,
22        and agreement to the standard form contract developed
23        pursuant to item (C) of this paragraph (4). The
24        procurement administrator shall then identify and
25        register bidders to participate in the procurement
26        event.



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1            (C) Standard contract forms and credit terms and
2        instruments. The procurement administrator, in
3        consultation with the Agency, the Commission, and
4        other interested parties and subject to Commission
5        oversight, shall develop and provide standard contract
6        forms for the supplier contracts that meet generally
7        accepted industry practices as well as include any
8        applicable State of Illinois terms and conditions that
9        are required for contracts entered into by an agency of
10        the State of Illinois. Standard credit terms and
11        instruments that meet generally accepted industry
12        practices shall be similarly developed. The
13        procurement administrator shall make available to the
14        Commission all written comments it receives on the
15        contract forms, credit terms, or instruments. If the
16        procurement administrator cannot reach agreement with
17        the parties as to the contract terms and conditions,
18        the procurement administrator must notify the
19        Commission of any disputed terms and the Commission
20        shall resolve the dispute. The terms of the contracts
21        shall not be subject to negotiation by winning bidders,
22        and the bidders must agree to the terms of the contract
23        in advance so that winning bids are selected solely on
24        the basis of price.
25            (D) Requests for proposals; competitive
26        procurement process. The procurement administrator



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1        shall design and issue requests for proposals to supply
2        renewable energy credits in accordance with the
3        supplemental procurement plan, as approved by the
4        Commission. The requests for proposals shall set forth
5        a procedure for sealed, binding commitment bidding
6        with pay-as-bid settlement, and provision for
7        selection of bids on the basis of price, provided,
8        however, that no bid shall be accepted if it exceeds
9        the benchmark developed pursuant to item (E) of this
10        paragraph (4).
11            (E) Benchmarks. Benchmarks for each product to be
12        procured shall be developed by the procurement
13        administrator in consultation with Commission staff,
14        the Agency, and the procurement monitor for use in this
15        supplemental procurement.
16            (F) A plan for implementing contingencies in the
17        event of supplier default, Commission rejection of
18        results, or any other cause.
19        (5) Within 2 business days after opening the sealed
20    bids, the procurement administrator shall submit a
21    confidential report to the Commission. The report shall
22    contain the results of the bidding for each of the products
23    along with the procurement administrator's recommendation
24    for the acceptance and rejection of bids based on the price
25    benchmark criteria and other factors observed in the
26    process. The procurement monitor also shall submit a



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1    confidential report to the Commission within 2 business
2    days after opening the sealed bids. The report shall
3    contain the procurement monitor's assessment of bidder
4    behavior in the process as well as an assessment of the
5    procurement administrator's compliance with the
6    procurement process and rules. The Commission shall review
7    the confidential reports submitted by the procurement
8    administrator and procurement monitor and shall accept or
9    reject the recommendations of the procurement
10    administrator within 2 business days after receipt of the
11    reports.
12        (6) Within 3 business days after the Commission
13    decision approving the results of a procurement event, the
14    Agency shall enter into binding contractual arrangements
15    with the winning suppliers using the standard form
16    contracts.
17        (7) The names of the successful bidders and the average
18    of the winning bid prices for each contract type and for
19    each contract term shall be made available to the public
20    within 2 days after the supplemental procurement event. The
21    Commission, the procurement monitor, the procurement
22    administrator, the Agency, and all participants in the
23    procurement process shall maintain the confidentiality of
24    all other supplier and bidding information in a manner
25    consistent with all applicable laws, rules, regulations,
26    and tariffs. Confidential information, including the



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1    confidential reports submitted by the procurement
2    administrator and procurement monitor pursuant to this
3    Section, shall not be made publicly available and shall not
4    be discoverable by any party in any proceeding, absent a
5    compelling demonstration of need, nor shall those reports
6    be admissible in any proceeding other than one for law
7    enforcement purposes.
8        (8) The supplemental procurement provided in this
9    subsection (i) shall not be subject to the requirements and
10    limitations of subsections (c) and (d) of this Section.
11        (9) The Agency may assess fees to each bidder to
12    recover the costs incurred in connection with a procurement
13    process held pursuant to this Section, including, but not
14    limited to, the cost of developing the supplemental
15    procurement plan, the procurement administrator, and the
16    cost of the retirement of Renewable Energy Credits
17    purchased pursuant to the supplemental procurement.
18(Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10;
1996-1437, eff. 8-17-10; 97-616, eff. 10-26-11.)
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".