Illinois General Assembly - Full Text of SB1104
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Full Text of SB1104  102nd General Assembly

SB1104sam002 102ND GENERAL ASSEMBLY

Sen. Napoleon Harris, III

Filed: 3/25/2022

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1104

2    AMENDMENT NO. ______. Amend Senate Bill 1104 by replacing
3everything after the enacting clause with the following:
 
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,

 

 

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1    serving 42 million people.
2        (4) The PJM Interconnection LLC ("PJM"), is an
3    independent not-for-profit, member-based Regional
4    Transmission Organization ("RTO") that manages the
5    operations, supply, and movement of power across 13 states
6    and the District of Columbia, serving 65 million people.
7        (5) Illinois is served by both PJM and MISO, which
8    collectively ensure that sufficient electric power
9    generation supply and transmission are available to meet
10    electric demand every minute of every day for over 107
11    million people across 28 states and 2 countries. Wholesale
12    electric power generation is regulated by the Federal
13    Energy Regulatory Commission due to the interstate and
14    international nature of the transmission grid operated by
15    PJM and MISO. As such, Illinois policy changes at the
16    State level can affect the reliability, availability, and
17    cost of power for seniors, families, businesses,
18    municipalities, universities, and hospitals across the
19    region.
20        (6) When natural disasters occur, such as ice storms,
21    blizzards, tornadoes, and hurricanes, states participating
22    in PJM and MISO have provided support to each other
23    through power generation restoration missions. The
24    inability to deliver power generation in critical times
25    can have a huge economic impact and can also result in
26    death across the PJM and MISO Regional Transmission

 

 

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1    Organizations.
2        (7) PJM and MISO have multiple markets in which power
3    suppliers participate. The Capacity Market, Day-Ahead
4    Energy Market, and Frequency Market are markets that power
5    generators participate in to ensure over 107 million
6    people across 28 states and 2 countries receive the right
7    amount of electricity every minute of every day.
8            (A) Capacity markets are used in wholesale
9        electricity markets to pay resources for being
10        available to meet peak electricity demand. Capacity is
11        not actual electricity, but rather the ability to
12        produce electricity when called upon. Capacity is
13        procured, sometimes multiple years in advance of when
14        it is needed, based on projections of future energy
15        needs using historical demand requirements.
16            (B) The Day-Ahead Energy Market lets market
17        participants commit to buy or sell wholesale
18        electricity one day before the power is needed, to
19        help avoid price volatility. The Real-Time Energy
20        Market balances the differences between day-ahead
21        commitments and the actual real-time demand for and
22        production of electricity.
23            (C) The power grid operates, and shall be
24        maintained, at a constant frequency of 60 hertz.
25        Significant deviation from this level can result in
26        catastrophic damage to the power grid as well as

 

 

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1        household appliances. Frequency is maintained when
2        electric generators automatically add or remove power
3        from the grid. For example, a large power plant
4        suddenly tripping offline reduces the total amount of
5        available kinetic energy, leading the rotating
6        generators on the system to start rotating less
7        rapidly and thereby decreasing the alternating current
8        frequency across the grid system. Since a generator
9        turbine's rotational velocity is directly coupled to
10        the grid frequency, the generator's control systems
11        can sense this frequency decline as an indicator of
12        insufficient energy provision. The control system
13        within each power plant, which usually has been in the
14        form of a governor, can then automatically increase
15        the plant's power output. This process is autonomous
16        because the governor does not have to wait for a
17        central dispatcher to send a signal, thus bypassing
18        communications system delays.
19        (8) The shifting generation mix in PJM and MISO will
20    require optimum performance and an increased focus on the
21    need to retain reliability as certain existing generators
22    shut down operations and new, intermittent generators are
23    added. Additionally, increased power generation
24    consumption due to increased electric vehicles and
25    charging stations, along with increased electrification of
26    building heating needs will undoubtedly place greater

 

 

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1    demand on the power system.
2        (9) Illinois has a responsibility to ensure the
3    performance of Illinois and Regional Power Grids are safe,
4    reliable, and maintain the necessary capacity to meet the
5    power demands of Illinois residents. Additionally,
6    Illinois has an obligation to do its part to ensure the
7    regional power grid is safe and reliable for its
8    partnering states. As part of the regional power grid,
9    Illinois should be concerned that shuttered facilities in
10    Illinois will be replaced by higher cost, higher emissions
11    resources from other states.
 
12    Section 10. Illinois Regional Generation Reliability Task
13Force.
14    (a) The Illinois Regional Generation Reliability Task
15Force is created. The Task Force shall monitor the reliability
16of the Illinois power grid. The Task Force should consider the
17present and future needs of Illinois consumers while
18simultaneously addressing any issues related to the
19performance and reliability of power generation and
20transmission and being mindful of the ultimate cost to
21consumers.
22    (b) The duties and responsibilities of the Task Force
23include the following:
24        (1) Identifying and assessing policies, rules, and
25    laws that have the potential to significantly affect the

 

 

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1    reliability of the Illinois and regional power grids.
2        (2) Developing a set of standards and conditions that
3    will ensure optimal performance of the Illinois and
4    regional power grids based on new and emerging
5    technologies.
6        (3) Identifying opportunities to improve the Illinois
7    power supply mix through existing and new laws to ensure
8    continued power reliability at affordable rates for
9    Illinois consumers.
10        (4) Compiling research and best practices from other
11    states and countries on how to deploy technology to
12    benefit the performance and reliability of the power grid.
13        (5) Developing tools to assess the impact of proposed
14    policies and evaluate their costs and benefits on
15    families, employers, the public, Illinois, and other
16    states as part of the Illinois and regional power grids.
17        (6) Identifying data, reports, and relevant
18    information on the performance of the power grid to ensure
19    reliability and that pricing of power generation is in the
20    best interest of families, businesses, and communities in
21    Illinois.
22        (7) Providing its findings and recommendations for
23    policy changes and any revisions to policies, rules, and
24    laws that will facilitate the stability and reliability of
25    the Illinois and regional power grids on an annual basis
26    to the General Assembly.

 

 

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1        (8) Developing and proposing legislative concepts to
2    ensure the future stability and reliability of the power
3    grid.
 
4    Section 15. Membership; meetings.
5    (a) The members of the Illinois Regional Generation
6Reliability Task Force shall be composed of the following:
7        (1) three Senators appointed by the President of the
8    Senate, one of whom shall be designated by the President
9    as the co-chair of the Task Force;
10        (2) three Representatives appointed by the Speaker of
11    the House of Representatives, one of whom shall be
12    designated by the Speaker as the co-chair of the Task
13    Force;
14        (3) two Senators appointed by the Minority Leader of
15    the Senate;
16        (4) two Representatives appointed by the Minority
17    Leader of the House of Representatives;
18        (5) one member appointed by the Governor whose sole
19    role is dedicated to energy policy for the State;
20        (6) one member of a State or local labor organization
21    appointed by the President of the Senate;
22        (7) one member of a State or local labor organization
23    appointed by the Speaker of the House of Representatives;
24        (8) one representative from PJM RTO, designated by
25    PJM;

 

 

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1        (9) one representative from the PJM Independent Market
2    Monitor organization, designated by the PJM Independent
3    Market Monitor organization;
4        (10) one representative from MISO RTO, designated by
5    MISO;
6        (11) one representative from the MISO Independent
7    Market Monitor organization, designated by the MISO
8    Independent Market Monitor organization;
9        (12) one member from a utility or transmission company
10    that operates in the PJM regional transmission
11    organization, designated by PJM;
12        (13) one member from a utility or transmission company
13    that operates in MISO Zone 4, designated by MISO Zone 4;
14        (14) six representatives from 6 different power
15    generation companies that operate in the PJM or MISO
16    regional transmission organization, 2 appointed by the
17    President of the Senate, 2 appointed by the Speaker of the
18    House of Representatives, one appointed by the Minority
19    Leader in the Senate, and one appointed by the Minority
20    Leader in the House of Representatives;
21        (15) one representative from a statewide organization
22    representing retail merchants, appointed by the President
23    of the Senate;
24        (16) one representative from a statewide organization
25    representing manufacturers, appointed by the Speaker of
26    the House of Representatives;

 

 

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1        (17) one representative from a statewide organization
2    representing retired people, appointed by the Speaker of
3    the House of Representatives;
4        (18) one representative from a minority-owned
5    geothermal group, appointed by the President of the
6    Senate;
7        (19) one representative from a statewide organization
8    representing business, appointed by the Speaker of the
9    House of Representatives;
10        (20) two representatives from environmental law
11    groups, one appointed by the President of the Senate and
12    one appointed by the Speaker of the House of
13    Representatives;
14        (21) the Director of the Illinois Power Agency, or the
15    Director's designee;
16        (22) the Director of the Environmental Protection
17    Agency, or the Director's designee; and
18        (23) the Chair of the Illinois Commerce Commission, or
19    the Chair's designee.
20    (b) Appointments for the Task Force shall be made by July
211, 2022. The Task Force shall hold 7 meetings annually, either
22remotely or in person, and the first meeting shall be held
23within 30 days after appointments are made.
24    (c) Members of the Task Force shall serve without
25compensation.
26    (d) The Illinois Commerce Commission shall provide

 

 

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1administrative support to the Task Force in conjunction with
2the Independent Market Monitors for the MISO and PJM Regional
3Transmission Organizations.
 
4    Section 20. Annual report.
5    (a) The Illinois Regional Generation Reliability Task
6Force shall issue an annual report based upon its findings in
7the course of performing its duties and responsibilities. The
8report shall be written by the administrative staff of the
9Task Force and with staff assistance from the Independent
10Market Monitors from the MISO and PJM Regional Transmission
11Organizations.
12    (b) The Illinois Regional Generation Reliability Task
13Force shall submit its first report on February 1, 2023, and
14each February 1 thereafter to the General Assembly upon the
15completion of its meeting schedule and shall continue to issue
16annual reports each year.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".