Bill Text: IL HB2427 | 2013-2014 | 98th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Public Utilities Act. Creates a provision that provides that the Director of the Office of Retail Market Development shall conduct research, gather input, and develop and present a detailed plan designed to promote retail natural gas competition for residential and small commercial natural gas consumers. Provides that interested parties shall be given the opportunity to review the plan and provide written comments regarding the plan prior to its submission. Provides that to the extent the plan calls for Illinois Commerce Commission action, the Commission shall initiate any proceeding or proceedings called for in the final plan within 60 days after receipt of the final plan and complete those proceedings within 11 months after their initiation; nothing shall prevent the Commission from acting earlier to remove identified barriers to retail natural gas competition for residential and small commercial consumers. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 37-2)
Status: (Passed) 2014-06-30 - Public Act . . . . . . . . . 98-0672 [HB2427 Detail]
Download: Illinois-2013-HB2427-Amended.html
Bill Title: Amends the Public Utilities Act. Creates a provision that provides that the Director of the Office of Retail Market Development shall conduct research, gather input, and develop and present a detailed plan designed to promote retail natural gas competition for residential and small commercial natural gas consumers. Provides that interested parties shall be given the opportunity to review the plan and provide written comments regarding the plan prior to its submission. Provides that to the extent the plan calls for Illinois Commerce Commission action, the Commission shall initiate any proceeding or proceedings called for in the final plan within 60 days after receipt of the final plan and complete those proceedings within 11 months after their initiation; nothing shall prevent the Commission from acting earlier to remove identified barriers to retail natural gas competition for residential and small commercial consumers. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 37-2)
Status: (Passed) 2014-06-30 - Public Act . . . . . . . . . 98-0672 [HB2427 Detail]
Download: Illinois-2013-HB2427-Amended.html
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1 | AMENDMENT TO HOUSE BILL 2427
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2 | AMENDMENT NO. ______. Amend House Bill 2427 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Power Agency Act is amended by | ||||||
5 | changing Section 1-56 as follows:
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6 | (20 ILCS 3855/1-56) | ||||||
7 | Sec. 1-56. Illinois Power Agency Renewable Energy | ||||||
8 | Resources Fund. | ||||||
9 | (a) The Illinois Power Agency Renewable Energy Resources | ||||||
10 | Fund is created as a special fund in the State treasury. | ||||||
11 | (b) The Illinois Power Agency Renewable Energy Resources | ||||||
12 | Fund shall be administered by the Agency to procure renewable | ||||||
13 | energy resources. Prior to June 1, 2011, resources procured | ||||||
14 | pursuant to this Section shall be procured from facilities | ||||||
15 | located in Illinois, provided the resources are available from | ||||||
16 | those facilities. If resources are not available in Illinois, |
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1 | then they shall be procured in states that adjoin Illinois. If | ||||||
2 | resources are not available in Illinois or in states that | ||||||
3 | adjoin Illinois, then they may be purchased elsewhere. | ||||||
4 | Beginning June 1, 2011, resources procured pursuant to this | ||||||
5 | Section shall be procured from facilities located in Illinois | ||||||
6 | or states that adjoin Illinois. If resources are not available | ||||||
7 | in Illinois or in states that adjoin Illinois, then they may be | ||||||
8 | procured elsewhere. To the extent available, at least 75% of | ||||||
9 | these renewable energy resources shall come from wind | ||||||
10 | generation. Of the renewable energy resources procured | ||||||
11 | pursuant to this Section at least the following specified | ||||||
12 | percentages shall come from photovoltaics on the following | ||||||
13 | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by | ||||||
14 | June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the | ||||||
15 | renewable energy resources procured pursuant to this Section, | ||||||
16 | at least the following percentages shall come from distributed | ||||||
17 | renewable energy generation devices: 0.5% by June 1, 2013, | ||||||
18 | 0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. | ||||||
19 | To the extent available, half of the renewable energy resources | ||||||
20 | procured from distributed renewable energy generation shall | ||||||
21 | come from devices of less than 25 kilowatts in nameplate | ||||||
22 | capacity. Renewable energy resources procured from distributed | ||||||
23 | generation devices may also count towards the required | ||||||
24 | percentages for wind and solar photovoltaics. Procurement of | ||||||
25 | renewable energy resources from distributed renewable energy | ||||||
26 | generation devices shall be done on an annual basis through |
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1 | multi-year contracts of no less than 5 years, and shall consist | ||||||
2 | solely of renewable energy credits. | ||||||
3 | The Agency shall create credit requirements for suppliers | ||||||
4 | of distributed renewable energy. In order to minimize the | ||||||
5 | administrative burden on contracting entities, the Agency | ||||||
6 | shall solicit the use of third-party organizations to aggregate | ||||||
7 | distributed renewable energy into groups of no less than one | ||||||
8 | megawatt in installed capacity. These third-party | ||||||
9 | organizations shall administer contracts with individual | ||||||
10 | distributed renewable energy generation device owners. An | ||||||
11 | individual distributed renewable energy generation device | ||||||
12 | owner shall have the ability to measure the output of his or | ||||||
13 | her distributed renewable energy generation device. | ||||||
14 | (c) The Agency shall procure renewable energy resources at | ||||||
15 | least once each year in conjunction with a procurement event | ||||||
16 | for electric utilities required to comply with Section 1-75 of | ||||||
17 | the Act and shall, whenever possible, enter into long-term | ||||||
18 | contracts on an annual basis for a portion of the incremental | ||||||
19 | requirement for the given procurement year. | ||||||
20 | (d) The price paid to procure renewable energy credits | ||||||
21 | using monies from the Illinois Power Agency Renewable Energy | ||||||
22 | Resources Fund shall not exceed the winning bid prices paid for | ||||||
23 | like resources procured for electric utilities required to | ||||||
24 | comply with Section 1-75 of this Act. | ||||||
25 | (e) All renewable energy credits procured using monies from | ||||||
26 | the Illinois Power Agency Renewable Energy Resources Fund shall |
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1 | be permanently retired. | ||||||
2 | (f) The procurement process described in this Section is | ||||||
3 | exempt from the requirements of the Illinois Procurement Code, | ||||||
4 | pursuant to Section 20-10 of that Code. | ||||||
5 | (g) All disbursements from the Illinois Power Agency | ||||||
6 | Renewable Energy Resources Fund shall be made only upon | ||||||
7 | warrants of the Comptroller drawn upon the Treasurer as | ||||||
8 | custodian of the Fund upon vouchers signed by the Director or | ||||||
9 | by the person or persons designated by the Director for that | ||||||
10 | purpose. The Comptroller is authorized to draw the warrant upon | ||||||
11 | vouchers so signed. The Treasurer shall accept all warrants so | ||||||
12 | signed and shall be released from liability for all payments | ||||||
13 | made on those warrants. | ||||||
14 | (h) The Illinois Power Agency Renewable Energy Resources | ||||||
15 | Fund shall not be subject to sweeps, administrative charges, or | ||||||
16 | chargebacks, including, but not limited to, those authorized | ||||||
17 | under Section 8h of the State Finance Act, that would in any | ||||||
18 | way result in the transfer of any funds from this Fund to any | ||||||
19 | other fund of this State or in having any such funds utilized | ||||||
20 | for any purpose other than the express purposes set forth in | ||||||
21 | this Section.
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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; | ||||||
19 | 96-1437, eff. 8-17-10; 97-616, eff. 10-26-11.)
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.".
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