Full Text of HB5929 95th General Assembly
HB5929 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5929
Introduced , by Rep. Carolyn H. Krause SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Power Agency Act. Provides that by 2020, at least 15% of a utility's total supply to serve the load of retail customers shall be derived from biomass or hydroelectric energy.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB5929 |
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LRB095 18858 MJR 44992 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Power Agency Act is amended by | 5 |
| changing Section 1-75 as follows: | 6 |
| (20 ILCS 3855/1-75)
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| Sec. 1-75. Planning and Procurement Bureau. The Planning | 8 |
| and Procurement Bureau has the following duties and | 9 |
| responsibilities: | 10 |
| (a) The Planning and Procurement Bureau shall each | 11 |
| year, beginning in 2008, develop procurement plans and | 12 |
| conduct competitive procurement processes in accordance | 13 |
| with the requirements of Section 16-111.5 of the Public | 14 |
| Utilities Act for the eligible retail customers of electric | 15 |
| utilities that on December 31, 2005 provided electric | 16 |
| service to at least 100,000 customers in Illinois. For the | 17 |
| purposes of this Section, the term "eligible retail | 18 |
| customers" has the same definition as found in Section | 19 |
| 16-111.5(a) of the Public Utilities Act. | 20 |
| (1) The Agency shall each year, beginning in 2008, | 21 |
| as needed, issue a request for qualifications for | 22 |
| experts or expert consulting firms to develop the | 23 |
| procurement plans in accordance with Section 16-111.5 |
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| of the Public Utilities Act. In order to qualify an | 2 |
| expert or expert consulting firm must have: | 3 |
| (A) direct previous experience assembling | 4 |
| large-scale power supply plans or portfolios for | 5 |
| end-use customers; | 6 |
| (B) an advanced degree in economics, | 7 |
| mathematics, engineering, risk management, or a | 8 |
| related area of study; | 9 |
| (C) 10 years of experience in the electricity | 10 |
| sector, including managing supply risk; | 11 |
| (D) expertise in wholesale electricity market | 12 |
| rules, including those established by the Federal | 13 |
| Energy Regulatory Commission and regional | 14 |
| transmission organizations; | 15 |
| (E) expertise in credit protocols and | 16 |
| familiarity with contract protocols; | 17 |
| (F) adequate resources to perform and fulfill | 18 |
| the required functions and responsibilities; and | 19 |
| (G) the absence of a conflict of interest and | 20 |
| inappropriate bias for or against potential | 21 |
| bidders or the affected electric utilities. | 22 |
| (2) The Agency shall each year, as needed, issue a | 23 |
| request for qualifications for a procurement | 24 |
| administrator to conduct the competitive procurement | 25 |
| processes in accordance with Section 16-111.5 of the | 26 |
| Public Utilities Act. In order to qualify an expert or |
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| expert consulting firm must have: | 2 |
| (A) direct previous experience administering a | 3 |
| large-scale competitive procurement process; | 4 |
| (B) an advanced degree in economics, | 5 |
| mathematics, engineering, or a related area of | 6 |
| study; | 7 |
| (C) 10 years of experience in the electricity | 8 |
| sector, including risk management experience; | 9 |
| (D) expertise in wholesale electricity market | 10 |
| rules, including those established by the Federal | 11 |
| Energy Regulatory Commission and regional | 12 |
| transmission organizations; | 13 |
| (E) expertise in credit and contract | 14 |
| protocols; | 15 |
| (F) adequate resources to perform and fulfill | 16 |
| the required functions and responsibilities; and | 17 |
| (G) the absence of a conflict of interest and | 18 |
| inappropriate bias for or against potential | 19 |
| bidders or the affected electric utilities. | 20 |
| (3) The Agency shall provide affected utilities | 21 |
| and other interested parties with the lists of | 22 |
| qualified experts or expert consulting firms | 23 |
| identified through the request for qualifications | 24 |
| processes that are under consideration to develop the | 25 |
| procurement plans and to serve as the procurement | 26 |
| administrator. The Agency shall also provide each |
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| qualified expert's or expert consulting firm's | 2 |
| response to the request for qualifications. All | 3 |
| information provided under this subparagraph shall | 4 |
| also be provided to the Commission. The Agency may | 5 |
| provide by rule for fees associated with supplying the | 6 |
| information to utilities and other interested parties. | 7 |
| These parties shall, within 5 business days, notify the | 8 |
| Agency in writing if they object to any experts or | 9 |
| expert consulting firms on the lists. Objections shall | 10 |
| be based on: | 11 |
| (A) failure to satisfy qualification criteria; | 12 |
| (B) identification of a conflict of interest; | 13 |
| or | 14 |
| (C) evidence of inappropriate bias for or | 15 |
| against potential bidders or the affected | 16 |
| utilities. | 17 |
| The Agency shall remove experts or expert | 18 |
| consulting firms from the lists within 10 days if there | 19 |
| is a reasonable basis for an objection and provide the | 20 |
| updated lists to the affected utilities and other | 21 |
| interested parties. If the Agency fails to remove an | 22 |
| expert or expert consulting firm from a list, an | 23 |
| objecting party may seek review by the Commission | 24 |
| within 5 days thereafter by filing a petition, and the | 25 |
| Commission shall render a ruling on the petition within | 26 |
| 10 days. There is no right of appeal of the |
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| Commission's ruling. | 2 |
| (4) The Agency shall issue requests for proposals | 3 |
| to the qualified experts or expert consulting firms to | 4 |
| develop a procurement plan for the affected utilities | 5 |
| and to serve as procurement administrator. | 6 |
| (5) The Agency shall select an expert or expert | 7 |
| consulting firm to develop procurement plans based on | 8 |
| the proposals submitted and shall award one-year | 9 |
| contracts to those selected with an option for the | 10 |
| Agency for a one-year renewal. | 11 |
| (6) The Agency shall select an expert or expert | 12 |
| consulting firm, with approval of the Commission, to | 13 |
| serve as procurement administrator based on the | 14 |
| proposals submitted. If the Commission rejects, within | 15 |
| 5 days, the Agency's selection, the Agency shall submit | 16 |
| another recommendation within 3 days based on the | 17 |
| proposals submitted. The Agency shall award a one-year | 18 |
| contract to the expert or expert consulting firm so | 19 |
| selected with Commission approval with an option for | 20 |
| the Agency for a one-year renewal. | 21 |
| (b) The experts or expert consulting firms retained by | 22 |
| the Agency shall, as appropriate, prepare procurement | 23 |
| plans, and conduct a competitive procurement process as | 24 |
| prescribed in Section 16-111.5 of the Public Utilities Act, | 25 |
| to ensure adequate, reliable, affordable, efficient, and | 26 |
| environmentally sustainable electric service at the lowest |
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| total cost over time, taking into account any benefits of | 2 |
| price stability, for eligible retail customers of electric | 3 |
| utilities that on December 31, 2005 provided electric | 4 |
| service to at least 100,000 customers in the State of | 5 |
| Illinois. | 6 |
| (c) Renewable portfolio standard. | 7 |
| (1) The procurement plans shall include | 8 |
| cost-effective renewable energy resources. A minimum | 9 |
| percentage of each utility's total supply to serve the | 10 |
| load of eligible retail customers, as defined in | 11 |
| Section 16-111.5(a) of the Public Utilities Act, | 12 |
| procured for each of the following years shall be | 13 |
| generated from cost-effective renewable energy | 14 |
| resources: at least 2% by June 1, 2008; at least 4% by | 15 |
| June 1, 2009; at least 5% by June 1, 2010; at least 6% | 16 |
| by June 1, 2011; at least 7% by June 1, 2012; at least | 17 |
| 8% by June 1, 2013; at least 9% by June 1, 2014; at | 18 |
| least 10% by June 1, 2015; and increasing by at least | 19 |
| 1.5% each year thereafter to at least 25% by June 1, | 20 |
| 2025. To the extent that it is available, at least 75% | 21 |
| of the renewable energy resources used to meet these | 22 |
| standards shall come from wind generation. For | 23 |
| purposes of this Section, "cost-effective" means that | 24 |
| the costs of procuring renewable energy resources do | 25 |
| not cause the limit stated in paragraph (2) of this | 26 |
| subsection (c) to be exceeded. |
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| (2) For purposes of this subsection (c), the | 2 |
| required procurement of cost-effective renewable | 3 |
| energy resources for a particular year shall be | 4 |
| measured as a percentage of the actual amount of | 5 |
| electricity (megawatt-hours) supplied by the electric | 6 |
| utility to eligible retail customers in the planning | 7 |
| year ending immediately prior to the procurement. For | 8 |
| purposes of this subsection (c), the amount per | 9 |
| kilowatthour means the total amount paid for electric | 10 |
| service expressed on a per kilowatthour basis. For | 11 |
| purposes of this subsection (c), the total amount paid | 12 |
| for electric service includes without limitation | 13 |
| amounts paid for supply, transmission, distribution, | 14 |
| surcharges, and add-on taxes. | 15 |
| Notwithstanding the requirements of this | 16 |
| subsection (c), the total of renewable energy | 17 |
| resources procured pursuant to the procurement plan | 18 |
| for any single year shall be reduced by an amount | 19 |
| necessary to limit the annual estimated average net | 20 |
| increase due to the costs of these resources included | 21 |
| in the amounts paid by eligible retail customers in | 22 |
| connection with electric service to: | 23 |
| (A) in 2008, no more than 0.5% of the amount | 24 |
| paid per kilowatthour by those customers during | 25 |
| the year ending May 31, 2007; | 26 |
| (B) in 2009, the greater of an additional 0.5% |
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| of the amount paid per kilowatthour by those | 2 |
| customers during the year ending May 31, 2008 or 1% | 3 |
| of the amount paid per kilowatthour by those | 4 |
| customers during the year ending May 31, 2007; | 5 |
| (C) in 2010, the greater of an additional 0.5% | 6 |
| of the amount paid per kilowatthour by those | 7 |
| customers during the year ending May 31, 2009 or | 8 |
| 1.5% of the amount paid per kilowatthour by those | 9 |
| customers during the year ending May 31, 2007; | 10 |
| (D) in 2011, the greater of an additional 0.5% | 11 |
| of the amount paid per kilowatthour by those | 12 |
| customers during the year ending May 31, 2010 or 2% | 13 |
| of the amount paid per kilowatthour by those | 14 |
| customers during the year ending May 31, 2007; and | 15 |
| (E) thereafter, the amount of renewable energy | 16 |
| resources procured pursuant to the procurement | 17 |
| plan for any single year shall be reduced by an | 18 |
| amount necessary to limit the estimated average | 19 |
| net increase due to the cost of these resources | 20 |
| included in the amounts paid by eligible retail | 21 |
| customers in connection with electric service to | 22 |
| no more than the greater of 2.015% of the amount | 23 |
| paid per kilowatthour by those customers during | 24 |
| the year ending May 31, 2007 or the incremental | 25 |
| amount per kilowatthour paid for these resources | 26 |
| in 2011. |
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| No later than June 30, 2011, the Commission shall | 2 |
| review the limitation on the amount of renewable energy | 3 |
| resources procured pursuant to this subsection (c) and | 4 |
| report to the General Assembly its findings as to | 5 |
| whether that limitation unduly constrains the | 6 |
| procurement of cost-effective renewable energy | 7 |
| resources. | 8 |
| (3) Through June 1, 2011, renewable energy | 9 |
| resources shall be counted for the purpose of meeting | 10 |
| the renewable energy standards set forth in paragraph | 11 |
| (1) of this subsection (c) only if they are generated | 12 |
| from facilities located in the State, provided that | 13 |
| cost-effective renewable energy resources are | 14 |
| available from those facilities. If those | 15 |
| cost-effective resources are not available in | 16 |
| Illinois, they shall be procured in states that adjoin | 17 |
| Illinois and may be counted towards compliance. If | 18 |
| those cost-effective resources are not available in | 19 |
| Illinois or in states that adjoin Illinois, they shall | 20 |
| be purchased elsewhere and shall be counted towards | 21 |
| compliance. After June 1, 2011, cost-effective | 22 |
| renewable energy resources located in Illinois and in | 23 |
| states that adjoin Illinois may be counted towards | 24 |
| compliance with the standards set forth in paragraph | 25 |
| (1) of this subsection (c). If those cost-effective | 26 |
| resources are not available in Illinois or in states |
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| that adjoin Illinois, they shall be purchased | 2 |
| elsewhere and shall be counted towards compliance. | 3 |
| (4) The electric utility shall retire all | 4 |
| renewable energy credits used to comply with the | 5 |
| standard. | 6 |
| (5) By 2020, at least 15% of a utility's total | 7 |
| supply to serve the load of retail customers shall be | 8 |
| derived from biomass or hydroelectric energy. | 9 |
| (d) The draft procurement plans are subject to public | 10 |
| comment, as required by Section 16-111.5 of the Public | 11 |
| Utilities Act. | 12 |
| (e) The Agency shall submit the final procurement plan | 13 |
| to the Commission. The Agency shall revise a procurement | 14 |
| plan if the Commission determines that it does not meet the | 15 |
| standards set forth in Section 16-111.5 of the Public | 16 |
| Utilities Act. | 17 |
| (f) The Agency shall assess fees to each affected | 18 |
| utility to recover the costs incurred in preparation of the | 19 |
| annual procurement plan for the utility. | 20 |
| (g) The Agency shall assess fees to each bidder to | 21 |
| recover the costs incurred in connection with a competitive | 22 |
| procurement process.
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| (Source: P.A. 95-481, eff. 8-28-07.)
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