Bill Text: IL SB1455 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Public Utilities Act. Provides that the provisions of the Illinois Power Agency Act relating to the payments by retail customers of a utility for the purpose of recovering the utility's costs for procuring renewable energy credits shall not apply to an alternative retail electric supplier, or its customers, that operates a combined heat and power system in this State, or that has a corporate affiliate that operates a combined heat and power system in this State, and supplies electricity primarily to or for the benefit of certain specified facilities.
Spectrum: Bipartisan Bill
Status: (Failed) 2019-01-09 - Session Sine Die [SB1455 Detail]
Download: Illinois-2017-SB1455-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Public Utilities Act is amended by changing | |||||||||||||||||||
5 | Section 16-115D as follows:
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6 | (220 ILCS 5/16-115D) | |||||||||||||||||||
7 | (Text of Section before amendment by P.A. 99-906 ) | |||||||||||||||||||
8 | Sec. 16-115D. Renewable portfolio standard for alternative | |||||||||||||||||||
9 | retail electric suppliers and electric utilities operating | |||||||||||||||||||
10 | outside their service territories. | |||||||||||||||||||
11 | (a) An alternative retail electric supplier shall be | |||||||||||||||||||
12 | responsible for procuring cost-effective renewable energy | |||||||||||||||||||
13 | resources as required under item (5) of subsection (d) of | |||||||||||||||||||
14 | Section 16-115 of this Act as outlined herein: | |||||||||||||||||||
15 | (1) The definition of renewable energy resources | |||||||||||||||||||
16 | contained in Section 1-10 of the Illinois Power Agency Act | |||||||||||||||||||
17 | applies to all renewable energy resources required to be | |||||||||||||||||||
18 | procured by alternative retail electric suppliers. | |||||||||||||||||||
19 | (2) The quantity of renewable energy resources shall be | |||||||||||||||||||
20 | measured as a percentage of the actual amount of metered | |||||||||||||||||||
21 | electricity (megawatt-hours) delivered by the alternative | |||||||||||||||||||
22 | retail electric supplier to Illinois retail customers | |||||||||||||||||||
23 | during the 12-month period June 1 through May 31, |
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1 | commencing June 1, 2009, and the comparable 12-month period | ||||||
2 | in each year thereafter except as provided in item (6) of | ||||||
3 | this subsection (a). | ||||||
4 | (3) The quantity of renewable energy resources shall be | ||||||
5 | in amounts at least equal to the annual percentages set | ||||||
6 | forth in item (1) of subsection (c) of Section 1-75 of the | ||||||
7 | Illinois Power Agency Act. At least 60% of the renewable | ||||||
8 | energy resources procured pursuant to items (1) through (3) | ||||||
9 | of subsection (b) of this Section shall come from wind | ||||||
10 | generation and, starting June 1, 2015, at least 6% of the | ||||||
11 | renewable energy resources procured pursuant to items (1) | ||||||
12 | through (3) of subsection (b) of this Section shall come | ||||||
13 | from solar photovoltaics. If, in any given year, an | ||||||
14 | alternative retail electric supplier does not purchase at | ||||||
15 | least these levels of renewable energy resources, then the | ||||||
16 | alternative retail electric supplier shall make | ||||||
17 | alternative compliance payments, as described in | ||||||
18 | subsection (d) of this Section. | ||||||
19 | (4) The quantity and source of renewable energy | ||||||
20 | resources shall be independently verified through the PJM | ||||||
21 | Environmental Information System Generation Attribute | ||||||
22 | Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||||||
23 | Tracking System (M-RETS), which shall document the | ||||||
24 | location of generation, resource type, month, and year of | ||||||
25 | generation for all qualifying renewable energy resources | ||||||
26 | that an alternative retail electric supplier uses to comply |
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1 | with this Section. No later than June 1, 2009, the Illinois | ||||||
2 | Power Agency shall provide PJM-GATS, M-RETS, and | ||||||
3 | alternative retail electric suppliers with all information | ||||||
4 | necessary to identify resources located in Illinois, | ||||||
5 | within states that adjoin Illinois or within portions of | ||||||
6 | the PJM and MISO footprint in the United States that | ||||||
7 | qualify under the definition of renewable energy resources | ||||||
8 | in Section 1-10 of the Illinois Power Agency Act for | ||||||
9 | compliance with this Section 16-115D. Alternative retail | ||||||
10 | electric suppliers shall not be subject to the requirements | ||||||
11 | in item (3) of subsection (c) of Section 1-75 of the | ||||||
12 | Illinois Power Agency Act. | ||||||
13 | (5) All renewable energy credits used to comply with | ||||||
14 | this Section shall be permanently retired. | ||||||
15 | (6) The required procurement of renewable energy | ||||||
16 | resources by an alternative retail electric supplier shall | ||||||
17 | apply to all metered electricity delivered to Illinois | ||||||
18 | retail customers by the alternative retail electric | ||||||
19 | supplier pursuant to contracts executed or extended after | ||||||
20 | March 15, 2009. | ||||||
21 | (b) An alternative retail electric supplier shall comply | ||||||
22 | with the renewable energy portfolio standards by making an | ||||||
23 | alternative compliance payment, as described in subsection (d) | ||||||
24 | of this Section, to cover at least one-half of the alternative | ||||||
25 | retail electric supplier's compliance obligation and any one or | ||||||
26 | combination of the following means to cover the remainder of |
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1 | the alternative retail electric supplier's compliance | ||||||
2 | obligation: | ||||||
3 | (1) Generating electricity using renewable energy | ||||||
4 | resources identified pursuant to item (4) of subsection (a) | ||||||
5 | of this Section. | ||||||
6 | (2) Purchasing electricity generated using renewable | ||||||
7 | energy resources identified pursuant to item (4) of | ||||||
8 | subsection (a) of this Section through an energy contract. | ||||||
9 | (3) Purchasing renewable energy credits from renewable | ||||||
10 | energy resources identified pursuant to item (4) of | ||||||
11 | subsection (a) of this Section. | ||||||
12 | (4) Making an alternative compliance payment as | ||||||
13 | described in subsection (d) of this Section. | ||||||
14 | (c) Use of renewable energy credits. | ||||||
15 | (1) Renewable energy credits that are not used by an | ||||||
16 | alternative retail electric supplier to comply with a | ||||||
17 | renewable portfolio standard in a compliance year may be | ||||||
18 | banked and carried forward up to 2 12-month compliance | ||||||
19 | periods after the compliance period in which the credit was | ||||||
20 | generated for the purpose of complying with a renewable | ||||||
21 | portfolio standard in those 2 subsequent compliance | ||||||
22 | periods. For the 2009-2010 and 2010-2011 compliance | ||||||
23 | periods, an alternative retail electric supplier may use | ||||||
24 | renewable credits generated after December 31, 2008 and | ||||||
25 | before June 1, 2009 to comply with this Section. | ||||||
26 | (2) An alternative retail electric supplier is |
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1 | responsible for demonstrating that a renewable energy | ||||||
2 | credit used to comply with a renewable portfolio standard | ||||||
3 | is derived from a renewable energy resource and that the | ||||||
4 | alternative retail electric supplier has not used, traded, | ||||||
5 | sold, or otherwise transferred the credit. | ||||||
6 | (3) The same renewable energy credit may be used by an | ||||||
7 | alternative retail electric supplier to comply with a | ||||||
8 | federal renewable portfolio standard and a renewable | ||||||
9 | portfolio standard established under this Act. An | ||||||
10 | alternative retail electric supplier that uses a renewable | ||||||
11 | energy credit to comply with a renewable portfolio standard | ||||||
12 | imposed by any other state may not use the same credit to | ||||||
13 | comply with a renewable portfolio standard established | ||||||
14 | under this Act. | ||||||
15 | (d) Alternative compliance payments. | ||||||
16 | (1) The Commission shall establish and post on its | ||||||
17 | website, within 5 business days after entering an order | ||||||
18 | approving a procurement plan pursuant to Section 1-75 of | ||||||
19 | the Illinois Power Agency Act, maximum alternative | ||||||
20 | compliance payment rates, expressed on a per kilowatt-hour | ||||||
21 | basis, that will be applicable in the first compliance | ||||||
22 | period following the plan approval. A separate maximum | ||||||
23 | alternative compliance payment rate shall be established | ||||||
24 | for the service territory of each electric utility that is | ||||||
25 | subject to subsection (c) of Section 1-75 of the Illinois | ||||||
26 | Power Agency Act. Each maximum alternative compliance |
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1 | payment rate shall be equal to the maximum allowable annual | ||||||
2 | estimated average net increase due to the costs of the | ||||||
3 | utility's purchase of renewable energy resources included | ||||||
4 | in the amounts paid by eligible retail customers in | ||||||
5 | connection with electric service, as described in item (2) | ||||||
6 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
7 | Agency Act for the compliance period, and as established in | ||||||
8 | the approved procurement plan. Following each procurement | ||||||
9 | event through which renewable energy resources are | ||||||
10 | purchased for one or more of these utilities for the | ||||||
11 | compliance period, the Commission shall establish and post | ||||||
12 | on its website estimates of the alternative compliance | ||||||
13 | payment rates, expressed on a per kilowatt-hour basis, that | ||||||
14 | shall apply for that compliance period. Posting of the | ||||||
15 | estimates shall occur no later than 10 business days | ||||||
16 | following the procurement event, however, the Commission | ||||||
17 | shall not be required to establish and post such estimates | ||||||
18 | more often than once per calendar month. By July 1 of each | ||||||
19 | year, the Commission shall establish and post on its | ||||||
20 | website the actual alternative compliance payment rates | ||||||
21 | for the preceding compliance year. For compliance years | ||||||
22 | beginning prior to June 1, 2014, each alternative | ||||||
23 | compliance payment rate shall be equal to the total amount | ||||||
24 | of dollars that the utility contracted to spend on | ||||||
25 | renewable resources, excepting the additional incremental | ||||||
26 | cost attributable to solar resources, for the compliance |
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1 | period divided by the forecasted load of eligible retail | ||||||
2 | customers, at the customers' meters, as previously | ||||||
3 | established in the Commission-approved procurement plan | ||||||
4 | for that compliance year. For compliance years commencing | ||||||
5 | on or after June 1, 2014, each alternative compliance | ||||||
6 | payment rate shall be equal to the total amount of dollars | ||||||
7 | that the utility contracted to spend on all renewable | ||||||
8 | resources for the compliance period divided by the | ||||||
9 | forecasted load of eligible retail customers, at the | ||||||
10 | customers' meters, as previously established in the | ||||||
11 | Commission-approved procurement plan for that compliance | ||||||
12 | year. The actual alternative compliance payment rates may | ||||||
13 | not exceed the maximum alternative compliance payment | ||||||
14 | rates established for the compliance period. For purposes | ||||||
15 | of this subsection (d), the term "eligible retail | ||||||
16 | customers" has the same meaning as found in Section | ||||||
17 | 16-111.5 of this Act. | ||||||
18 | (2) In any given compliance year, an alternative retail | ||||||
19 | electric supplier may elect to use alternative compliance | ||||||
20 | payments to comply with all or a part of the applicable | ||||||
21 | renewable portfolio standard. In the event that an | ||||||
22 | alternative retail electric supplier elects to make | ||||||
23 | alternative compliance payments to comply with all or a | ||||||
24 | part of the applicable renewable portfolio standard, such | ||||||
25 | payments shall be made by September 1, 2010 for the period | ||||||
26 | of June 1, 2009 to May 1, 2010 and by September 1 of each |
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1 | year thereafter for the subsequent compliance period, in | ||||||
2 | the manner and form as determined by the Commission. Any | ||||||
3 | election by an alternative retail electric supplier to use | ||||||
4 | alternative compliance payments is subject to review by the | ||||||
5 | Commission under subsection (e) of this Section. | ||||||
6 | (3) An alternative retail electric supplier's | ||||||
7 | alternative compliance payments shall be computed | ||||||
8 | separately for each electric utility's service territory | ||||||
9 | within which the alternative retail electric supplier | ||||||
10 | provided retail service during the compliance period, | ||||||
11 | provided that the electric utility was subject to | ||||||
12 | subsection (c) of Section 1-75 of the Illinois Power Agency | ||||||
13 | Act. For each service territory, the alternative retail | ||||||
14 | electric supplier's alternative compliance payment shall | ||||||
15 | be equal to (i) the actual alternative compliance payment | ||||||
16 | rate established in item (1) of this subsection (d), | ||||||
17 | multiplied by (ii) the actual amount of metered electricity | ||||||
18 | delivered by the alternative retail electric supplier to | ||||||
19 | retail customers within the service territory during the | ||||||
20 | compliance period, multiplied by (iii) the result of one | ||||||
21 | minus the ratios of the quantity of renewable energy | ||||||
22 | resources used by the alternative retail electric supplier | ||||||
23 | to comply with the requirements of this Section within the | ||||||
24 | service territory to the product of the percentage of | ||||||
25 | renewable energy resources required under item (3) of | ||||||
26 | subsection (a) of this Section and the actual amount of |
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1 | metered electricity delivered by the alternative retail | ||||||
2 | electric supplier to retail customers within the service | ||||||
3 | territory during the compliance period. | ||||||
4 | (4) All alternative compliance payments by alternative | ||||||
5 | retail electric suppliers shall be deposited in the | ||||||
6 | Illinois Power Agency Renewable Energy Resources Fund and | ||||||
7 | used to purchase renewable energy credits, in accordance | ||||||
8 | with Section 1-56 of the Illinois Power Agency Act. | ||||||
9 | Beginning April 1, 2012 and by April 1 of each year | ||||||
10 | thereafter, the Illinois Power Agency shall submit an | ||||||
11 | annual report to the General Assembly, the Commission, and | ||||||
12 | alternative retail electric suppliers that shall include, | ||||||
13 | but not be limited to: | ||||||
14 | (A) the total amount of alternative compliance | ||||||
15 | payments received in aggregate from alternative retail | ||||||
16 | electric suppliers by planning year for all previous | ||||||
17 | planning years in which the alternative compliance | ||||||
18 | payment was in effect; | ||||||
19 | (B) the amount of those payments utilized to | ||||||
20 | purchased renewable energy credits itemized by the | ||||||
21 | date of each procurement in which the payments were | ||||||
22 | utilized; and | ||||||
23 | (C) the unused and remaining balance in the Agency | ||||||
24 | Renewable Energy Resources Fund attributable to those | ||||||
25 | payments. | ||||||
26 | (5) The Commission, in consultation with the Illinois |
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1 | Power Agency, shall establish a process or proceeding to | ||||||
2 | consider the impact of a federal renewable portfolio | ||||||
3 | standard, if enacted, on the operation of the alternative | ||||||
4 | compliance mechanism, which shall include, but not be | ||||||
5 | limited to, developing, to the extent permitted by the | ||||||
6 | applicable federal statute, an appropriate methodology to | ||||||
7 | apportion renewable energy credits retired as a result of | ||||||
8 | alternative compliance payments made in accordance with | ||||||
9 | this Section. The Commission shall commence any such | ||||||
10 | process or proceeding within 35 days after enactment of a | ||||||
11 | federal renewable portfolio standard. | ||||||
12 | (e) Each alternative retail electric supplier shall, by | ||||||
13 | September 1, 2010 and by September 1 of each year thereafter, | ||||||
14 | prepare and submit to the Commission a report, in a format to | ||||||
15 | be specified by the Commission on or before December 31, 2009, | ||||||
16 | that provides information certifying compliance by the | ||||||
17 | alternative retail electric supplier with this Section, | ||||||
18 | including copies of all PJM-GATS and M-RETS reports, and | ||||||
19 | documentation relating to banking, retiring renewable energy | ||||||
20 | credits, and any other information that the Commission | ||||||
21 | determines necessary to ensure compliance with this Section. An | ||||||
22 | alternative retail electric supplier may file commercially or | ||||||
23 | financially sensitive information or trade secrets with the | ||||||
24 | Commission as provided under the rules of the Commission. To be | ||||||
25 | filed confidentially, the information shall be accompanied by | ||||||
26 | an affidavit that sets forth both the reasons for the |
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1 | confidentiality and a public synopsis of the information. | ||||||
2 | (f) The Commission may initiate a contested case to review | ||||||
3 | allegations that the alternative retail electric supplier has | ||||||
4 | violated this Section, including an order issued or rule | ||||||
5 | promulgated under this Section. In any such proceeding, the | ||||||
6 | alternative retail electric supplier shall have the burden of | ||||||
7 | proof. If the Commission finds, after notice and hearing, that | ||||||
8 | an alternative retail electric supplier has violated this | ||||||
9 | Section, then the Commission shall issue an order requiring the | ||||||
10 | alternative retail electric supplier to: | ||||||
11 | (1) immediately comply with this Section; and | ||||||
12 | (2) if the violation involves a failure to procure the | ||||||
13 | requisite quantity of renewable energy resources or pay the | ||||||
14 | applicable alternative compliance payment by the annual | ||||||
15 | deadline, the Commission shall require the alternative | ||||||
16 | retail electric supplier to double the applicable | ||||||
17 | alternative compliance payment that would otherwise be | ||||||
18 | required to bring the alternative retail electric supplier | ||||||
19 | into compliance with this Section. | ||||||
20 | If an alternative retail electric supplier fails to comply | ||||||
21 | with the renewable energy resource portfolio requirement in | ||||||
22 | this Section more than once in a 5-year period, then the | ||||||
23 | Commission shall revoke the alternative electric supplier's | ||||||
24 | certificate of service authority. The Commission shall not | ||||||
25 | accept an application for a certificate of service authority | ||||||
26 | from an alternative retail electric supplier that has lost |
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1 | certification under this subsection (f), or any corporate | ||||||
2 | affiliate thereof, for at least one year after the date of | ||||||
3 | revocation. | ||||||
4 | (g) All of the provisions of this Section apply to electric | ||||||
5 | utilities operating outside their service area except under | ||||||
6 | item (2) of subsection (a) of this Section the quantity of | ||||||
7 | renewable energy resources shall be measured as a percentage of | ||||||
8 | the actual amount of electricity (megawatt-hours) supplied in | ||||||
9 | the State outside of the utility's service territory during the | ||||||
10 | 12-month period June 1 through May 31, commencing June 1, 2009, | ||||||
11 | and the comparable 12-month period in each year thereafter | ||||||
12 | except as provided in item (6) of subsection (a) of this | ||||||
13 | Section. | ||||||
14 | If any such utility fails to procure the requisite quantity | ||||||
15 | of renewable energy resources by the annual deadline, then the | ||||||
16 | Commission shall require the utility to double the alternative | ||||||
17 | compliance payment that would otherwise be required to bring | ||||||
18 | the utility into compliance with this Section. | ||||||
19 | If any such utility fails to comply with the renewable | ||||||
20 | energy resource portfolio requirement in this Section more than | ||||||
21 | once in a 5-year period, then the Commission shall order the | ||||||
22 | utility to cease all sales outside of the utility's service | ||||||
23 | territory for a period of at least one year. | ||||||
24 | (h) The provisions of this Section and the provisions of | ||||||
25 | subsection (d) of Section 16-115 of this Act relating to | ||||||
26 | procurement of renewable energy resources shall not apply to an |
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1 | alternative retail electric supplier that operates a combined | ||||||
2 | heat and power system in this State or that has a corporate | ||||||
3 | affiliate that operates such a combined heat and power system | ||||||
4 | in this State that supplies electricity primarily to or for the | ||||||
5 | benefit of: (i) facilities owned by the supplier, its | ||||||
6 | subsidiary, or other corporate affiliate; (ii) facilities | ||||||
7 | electrically integrated with the electrical system of | ||||||
8 | facilities owned by the supplier, its subsidiary, or other | ||||||
9 | corporate affiliate; or (iii) facilities that are adjacent to | ||||||
10 | the site on which the combined heat and power system is | ||||||
11 | located.
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12 | (Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09; | ||||||
13 | 96-1437, eff. 8-17-10; 97-658, eff. 1-13-12.)
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14 | (Text of Section after amendment by P.A. 99-906 ) | ||||||
15 | Sec. 16-115D. Renewable portfolio standard for alternative | ||||||
16 | retail electric suppliers and electric utilities operating | ||||||
17 | outside their service territories. | ||||||
18 | (a) An alternative retail electric supplier shall be | ||||||
19 | responsible for procuring cost-effective renewable energy | ||||||
20 | resources as required under item (5) of subsection (d) of | ||||||
21 | Section 16-115 of this Act as outlined herein: | ||||||
22 | (1) The definition of renewable energy resources | ||||||
23 | contained in Section 1-10 of the Illinois Power Agency Act | ||||||
24 | applies to all renewable energy resources required to be | ||||||
25 | procured by alternative retail electric suppliers. |
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1 | (2) Through May 31, 2017, the quantity of renewable | ||||||
2 | energy resources shall be measured as a percentage of the | ||||||
3 | actual amount of metered electricity (megawatt-hours) | ||||||
4 | delivered by the alternative retail electric supplier to | ||||||
5 | Illinois retail customers during the 12-month period June 1 | ||||||
6 | through May 31, commencing June 1, 2009, and the comparable | ||||||
7 | 12-month period in each year thereafter except as provided | ||||||
8 | in item (6) of this subsection (a). | ||||||
9 | (3) Through May 31, 2017, the quantity of renewable | ||||||
10 | energy resources shall be in amounts at least equal to the | ||||||
11 | annual percentages set forth in item (1) of subsection (c) | ||||||
12 | of Section 1-75 of the Illinois Power Agency Act. At least | ||||||
13 | 60% of the renewable energy resources procured pursuant to | ||||||
14 | items (1) and (3) of subsection (b) of this Section shall | ||||||
15 | come from wind generation and, starting June 1, 2015, at | ||||||
16 | least 6% of the renewable energy resources procured | ||||||
17 | pursuant to items (1) and (3) of subsection (b) of this | ||||||
18 | Section shall come from solar photovoltaics. If, in any | ||||||
19 | given year, an alternative retail electric supplier does | ||||||
20 | not purchase at least these levels of renewable energy | ||||||
21 | resources, then the alternative retail electric supplier | ||||||
22 | shall make alternative compliance payments, as described | ||||||
23 | in subsection (d) of this Section. | ||||||
24 | (3.5) For the delivery year commencing June 1, 2017, | ||||||
25 | the quantity of renewable energy resources shall be at | ||||||
26 | least 13.0% of the uncovered amount of metered electricity |
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1 | (megawatt-hours) delivered by the alternative retail | ||||||
2 | electric supplier to Illinois retail customers during the | ||||||
3 | delivery year, which uncovered amount shall equal 50% of | ||||||
4 | such metered electricity delivered by the alternative | ||||||
5 | retail electric supplier. For the delivery year commencing | ||||||
6 | June 1, 2018, the quantity of renewable energy resources | ||||||
7 | shall be at least 14.5% of the uncovered amount of metered | ||||||
8 | electricity (megawatt-hours) delivered by the alternative | ||||||
9 | retail electric supplier to Illinois retail customers | ||||||
10 | during the delivery year, which uncovered amount shall | ||||||
11 | equal 25% of such metered electricity delivered by the | ||||||
12 | alternative retail electric supplier. At least 32% of the | ||||||
13 | renewable energy resources procured by the alternative | ||||||
14 | retail electric supplier for its uncovered portion under | ||||||
15 | this paragraph (3.5) shall come from wind or photovoltaic | ||||||
16 | generation. The renewable energy resources procured under | ||||||
17 | this paragraph (3.5) shall not include any resources from a | ||||||
18 | facility whose costs were being recovered through rates | ||||||
19 | regulated by any state or states on or after January 1, | ||||||
20 | 2017. | ||||||
21 | (4) The quantity and source of renewable energy | ||||||
22 | resources shall be independently verified through the PJM | ||||||
23 | Environmental Information System Generation Attribute | ||||||
24 | Tracking System (PJM-GATS) or the Midwest Renewable Energy | ||||||
25 | Tracking System (M-RETS), which shall document the | ||||||
26 | location of generation, resource type, month, and year of |
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1 | generation for all qualifying renewable energy resources | ||||||
2 | that an alternative retail electric supplier uses to comply | ||||||
3 | with this Section. No later than June 1, 2009, the Illinois | ||||||
4 | Power Agency shall provide PJM-GATS, M-RETS, and | ||||||
5 | alternative retail electric suppliers with all information | ||||||
6 | necessary to identify resources located in Illinois, | ||||||
7 | within states that adjoin Illinois or within portions of | ||||||
8 | the PJM and MISO footprint in the United States that | ||||||
9 | qualify under the definition of renewable energy resources | ||||||
10 | in Section 1-10 of the Illinois Power Agency Act for | ||||||
11 | compliance with this Section 16-115D. Alternative retail | ||||||
12 | electric suppliers shall not be subject to the requirements | ||||||
13 | in item (3) of subsection (c) of Section 1-75 of the | ||||||
14 | Illinois Power Agency Act. | ||||||
15 | (5) All renewable energy credits used to comply with | ||||||
16 | this Section shall be permanently retired. | ||||||
17 | (6) The required procurement of renewable energy | ||||||
18 | resources by an alternative retail electric supplier shall | ||||||
19 | apply to all metered electricity delivered to Illinois | ||||||
20 | retail customers by the alternative retail electric | ||||||
21 | supplier pursuant to contracts executed or extended after | ||||||
22 | March 15, 2009. | ||||||
23 | (b) Compliance obligations. | ||||||
24 | (1) Through May 31, 2017, an alternative retail | ||||||
25 | electric supplier shall comply with the renewable energy | ||||||
26 | portfolio standards by making an alternative compliance |
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1 | payment, as described in subsection (d) of this Section, to | ||||||
2 | cover at least one-half of the alternative retail electric | ||||||
3 | supplier's compliance obligation for the period prior to | ||||||
4 | June 1, 2017. | ||||||
5 | (2) For the delivery years beginning June 1, 2017 and | ||||||
6 | June 1, 2018, an alternative retail electric supplier need | ||||||
7 | not make any alternative compliance payment to meet any | ||||||
8 | portion of its compliance obligation, as set forth in | ||||||
9 | paragraph (3.5) of subsection (a) of this Section. | ||||||
10 | (3) An alternative retail electric supplier shall use | ||||||
11 | any one or combination of the following means to cover the | ||||||
12 | remainder of the alternative retail electric supplier's | ||||||
13 | compliance obligation, as set forth in paragraphs (3) and | ||||||
14 | (3.5) of subsection (a) of this Section, not covered by an | ||||||
15 | alternative compliance payment made under paragraphs (1) | ||||||
16 | and (2) of this subsection (b) of this Section: | ||||||
17 | (A) Generating electricity using renewable energy | ||||||
18 | resources identified pursuant to item (4) of | ||||||
19 | subsection (a) of this Section. | ||||||
20 | (B) Purchasing electricity generated using | ||||||
21 | renewable energy resources identified pursuant to item | ||||||
22 | (4) of subsection (a) of this Section through an energy | ||||||
23 | contract. | ||||||
24 | (C) Purchasing renewable energy credits from | ||||||
25 | renewable energy resources identified pursuant to item | ||||||
26 | (4) of subsection (a) of this Section. |
| |||||||
| |||||||
1 | (D) Making an alternative compliance payment as | ||||||
2 | described in subsection (d) of this Section. | ||||||
3 | (c) Use of renewable energy credits. | ||||||
4 | (1) Renewable energy credits that are not used by an | ||||||
5 | alternative retail electric supplier to comply with a | ||||||
6 | renewable portfolio standard in a compliance year may be | ||||||
7 | banked and carried forward up to 2 12-month compliance | ||||||
8 | periods after the compliance period in which the credit was | ||||||
9 | generated for the purpose of complying with a renewable | ||||||
10 | portfolio standard in those 2 subsequent compliance | ||||||
11 | periods. For the 2009-2010 and 2010-2011 compliance | ||||||
12 | periods, an alternative retail electric supplier may use | ||||||
13 | renewable credits generated after December 31, 2008 and | ||||||
14 | before June 1, 2009 to comply with this Section. | ||||||
15 | (2) An alternative retail electric supplier is | ||||||
16 | responsible for demonstrating that a renewable energy | ||||||
17 | credit used to comply with a renewable portfolio standard | ||||||
18 | is derived from a renewable energy resource and that the | ||||||
19 | alternative retail electric supplier has not used, traded, | ||||||
20 | sold, or otherwise transferred the credit. | ||||||
21 | (3) The same renewable energy credit may be used by an | ||||||
22 | alternative retail electric supplier to comply with a | ||||||
23 | federal renewable portfolio standard and a renewable | ||||||
24 | portfolio standard established under this Act. An | ||||||
25 | alternative retail electric supplier that uses a renewable | ||||||
26 | energy credit to comply with a renewable portfolio standard |
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| |||||||
1 | imposed by any other state may not use the same credit to | ||||||
2 | comply with a renewable portfolio standard established | ||||||
3 | under this Act. | ||||||
4 | (d) Alternative compliance payments. | ||||||
5 | (1) The Commission shall establish and post on its | ||||||
6 | website, within 5 business days after entering an order | ||||||
7 | approving a procurement plan pursuant to Section 1-75 of | ||||||
8 | the Illinois Power Agency Act, maximum alternative | ||||||
9 | compliance payment rates, expressed on a per kilowatt-hour | ||||||
10 | basis, that will be applicable in the first compliance | ||||||
11 | period following the plan approval. A separate maximum | ||||||
12 | alternative compliance payment rate shall be established | ||||||
13 | for the service territory of each electric utility that is | ||||||
14 | subject to subsection (c) of Section 1-75 of the Illinois | ||||||
15 | Power Agency Act. Each maximum alternative compliance | ||||||
16 | payment rate shall be equal to the maximum allowable annual | ||||||
17 | estimated average net increase due to the costs of the | ||||||
18 | utility's purchase of renewable energy resources included | ||||||
19 | in the amounts paid by eligible retail customers in | ||||||
20 | connection with electric service, as described in item (2) | ||||||
21 | of subsection (c) of Section 1-75 of the Illinois Power | ||||||
22 | Agency Act for the compliance period, and as established in | ||||||
23 | the approved procurement plan. Following each procurement | ||||||
24 | event through which renewable energy resources are | ||||||
25 | purchased for one or more of these utilities for the | ||||||
26 | compliance period, the Commission shall establish and post |
| |||||||
| |||||||
1 | on its website estimates of the alternative compliance | ||||||
2 | payment rates, expressed on a per kilowatt-hour basis, that | ||||||
3 | shall apply for that compliance period. Posting of the | ||||||
4 | estimates shall occur no later than 10 business days | ||||||
5 | following the procurement event, however, the Commission | ||||||
6 | shall not be required to establish and post such estimates | ||||||
7 | more often than once per calendar month. By July 1 of each | ||||||
8 | year, the Commission shall establish and post on its | ||||||
9 | website the actual alternative compliance payment rates | ||||||
10 | for the preceding compliance year. For compliance years | ||||||
11 | beginning prior to June 1, 2014, each alternative | ||||||
12 | compliance payment rate shall be equal to the total amount | ||||||
13 | of dollars that the utility contracted to spend on | ||||||
14 | renewable resources, excepting the additional incremental | ||||||
15 | cost attributable to solar resources, for the compliance | ||||||
16 | period divided by the forecasted load of eligible retail | ||||||
17 | customers, at the customers' meters, as previously | ||||||
18 | established in the Commission-approved procurement plan | ||||||
19 | for that compliance year. For compliance years commencing | ||||||
20 | on or after June 1, 2014, each alternative compliance | ||||||
21 | payment rate shall be equal to the total amount of dollars | ||||||
22 | that the utility contracted to spend on all renewable | ||||||
23 | resources for the compliance period divided by the | ||||||
24 | forecasted load of retail customers for which the utility | ||||||
25 | is procuring renewable energy resources in a given delivery | ||||||
26 | year, at the customers' meters, as previously established |
| |||||||
| |||||||
1 | in the Commission-approved procurement plan for that | ||||||
2 | compliance year. The actual alternative compliance payment | ||||||
3 | rates may not exceed the maximum alternative compliance | ||||||
4 | payment rates established for the compliance period. For | ||||||
5 | purposes of this subsection (d), the term "eligible retail | ||||||
6 | customers" has the same meaning as found in Section | ||||||
7 | 16-111.5 of this Act. | ||||||
8 | (2) In any given compliance year, an alternative retail | ||||||
9 | electric supplier may elect to use alternative compliance | ||||||
10 | payments to comply with all or a part of the applicable | ||||||
11 | renewable portfolio standard. In the event that an | ||||||
12 | alternative retail electric supplier elects to make | ||||||
13 | alternative compliance payments to comply with all or a | ||||||
14 | part of the applicable renewable portfolio standard, such | ||||||
15 | payments shall be made by September 1, 2010 for the period | ||||||
16 | of June 1, 2009 to May 1, 2010 and by September 1 of each | ||||||
17 | year thereafter for the subsequent compliance period, in | ||||||
18 | the manner and form as determined by the Commission. Any | ||||||
19 | election by an alternative retail electric supplier to use | ||||||
20 | alternative compliance payments is subject to review by the | ||||||
21 | Commission under subsection (e) of this Section. | ||||||
22 | (3) An alternative retail electric supplier's | ||||||
23 | alternative compliance payments shall be computed | ||||||
24 | separately for each electric utility's service territory | ||||||
25 | within which the alternative retail electric supplier | ||||||
26 | provided retail service during the compliance period, |
| |||||||
| |||||||
1 | provided that the electric utility was subject to | ||||||
2 | subsection (c) of Section 1-75 of the Illinois Power Agency | ||||||
3 | Act. For each service territory, the alternative retail | ||||||
4 | electric supplier's alternative compliance payment shall | ||||||
5 | be equal to (i) the actual alternative compliance payment | ||||||
6 | rate established in item (1) of this subsection (d), | ||||||
7 | multiplied by (ii) the actual amount of metered electricity | ||||||
8 | delivered by the alternative retail electric supplier to | ||||||
9 | retail customers for which the supplier has a compliance | ||||||
10 | obligation within the service territory during the | ||||||
11 | compliance period, multiplied by (iii) the result of one | ||||||
12 | minus the ratios of the quantity of renewable energy | ||||||
13 | resources used by the alternative retail electric supplier | ||||||
14 | to comply with the requirements of this Section within the | ||||||
15 | service territory to the product of the percentage of | ||||||
16 | renewable energy resources required under item (3) or (3.5) | ||||||
17 | of subsection (a) of this Section and the actual amount of | ||||||
18 | metered electricity delivered by the alternative retail | ||||||
19 | electrical supplier to retail customers for which the | ||||||
20 | supplier has a compliance obligation within the service | ||||||
21 | territory during the compliance period. | ||||||
22 | (4) Through May 31, 2017, all alternative compliance | ||||||
23 | payments by alternative retail electric suppliers shall be | ||||||
24 | deposited in the Illinois Power Agency Renewable Energy | ||||||
25 | Resources Fund and used to purchase renewable energy | ||||||
26 | credits, in accordance with Section 1-56 of the Illinois |
| |||||||
| |||||||
1 | Power Agency Act. Beginning April 1, 2012 and by April 1 of | ||||||
2 | each year thereafter, the Illinois Power Agency shall | ||||||
3 | submit an annual report to the General Assembly, the | ||||||
4 | Commission, and alternative retail electric suppliers that | ||||||
5 | shall include, but not be limited to: | ||||||
6 | (A) the total amount of alternative compliance | ||||||
7 | payments received in aggregate from alternative retail | ||||||
8 | electric suppliers by planning year for all previous | ||||||
9 | planning years in which the alternative compliance | ||||||
10 | payment was in effect; | ||||||
11 | (B) the amount of those payments utilized to | ||||||
12 | purchased renewable energy credits itemized by the | ||||||
13 | date of each procurement in which the payments were | ||||||
14 | utilized; and | ||||||
15 | (C) the unused and remaining balance in the Agency | ||||||
16 | Renewable Energy Resources Fund attributable to those | ||||||
17 | payments. | ||||||
18 | (4.5) Beginning with the delivery year commencing June | ||||||
19 | 1, 2017, all alternative compliance payments by | ||||||
20 | alternative retail electric suppliers shall be remitted to | ||||||
21 | the applicable electric utility. To facilitate this | ||||||
22 | remittance, each electric utility shall file a tariff with | ||||||
23 | the Commission no later than 30 days following the | ||||||
24 | effective date of this amendatory Act of the 99th General | ||||||
25 | Assembly, which the Commission shall approve, after notice | ||||||
26 | and hearing, no later than 45 days after its filing. The |
| |||||||
| |||||||
1 | Illinois Power Agency shall use such payments to increase | ||||||
2 | the amount of renewable energy resources otherwise to be | ||||||
3 | procured under subsection (c) of Section 1-75 of the | ||||||
4 | Illinois Power Agency Act. | ||||||
5 | (5) The Commission, in consultation with the Illinois | ||||||
6 | Power Agency, shall establish a process or proceeding to | ||||||
7 | consider the impact of a federal renewable portfolio | ||||||
8 | standard, if enacted, on the operation of the alternative | ||||||
9 | compliance mechanism, which shall include, but not be | ||||||
10 | limited to, developing, to the extent permitted by the | ||||||
11 | applicable federal statute, an appropriate methodology to | ||||||
12 | apportion renewable energy credits retired as a result of | ||||||
13 | alternative compliance payments made in accordance with | ||||||
14 | this Section. The Commission shall commence any such | ||||||
15 | process or proceeding within 35 days after enactment of a | ||||||
16 | federal renewable portfolio standard. | ||||||
17 | (e) Each alternative retail electric supplier shall, by | ||||||
18 | September 1, 2010 and by September 1 of each year thereafter, | ||||||
19 | prepare and submit to the Commission a report, in a format to | ||||||
20 | be specified by the Commission, that provides information | ||||||
21 | certifying compliance by the alternative retail electric | ||||||
22 | supplier with this Section, including copies of all PJM-GATS | ||||||
23 | and M-RETS reports, and documentation relating to banking, | ||||||
24 | retiring renewable energy credits, and any other information | ||||||
25 | that the Commission determines necessary to ensure compliance | ||||||
26 | with this Section. |
| |||||||
| |||||||
1 | An alternative retail electric supplier may file | ||||||
2 | commercially or financially sensitive information or trade | ||||||
3 | secrets with the Commission as provided under the rules of the | ||||||
4 | Commission. To be filed confidentially, the information shall | ||||||
5 | be accompanied by an affidavit that sets forth both the reasons | ||||||
6 | for the confidentiality and a public synopsis of the | ||||||
7 | information. | ||||||
8 | (f) The Commission may initiate a contested case to review | ||||||
9 | allegations that the alternative retail electric supplier has | ||||||
10 | violated this Section, including an order issued or rule | ||||||
11 | promulgated under this Section. In any such proceeding, the | ||||||
12 | alternative retail electric supplier shall have the burden of | ||||||
13 | proof. If the Commission finds, after notice and hearing, that | ||||||
14 | an alternative retail electric supplier has violated this | ||||||
15 | Section, then the Commission shall issue an order requiring the | ||||||
16 | alternative retail electric supplier to: | ||||||
17 | (1) immediately comply with this Section; and | ||||||
18 | (2) if the violation involves a failure to procure the | ||||||
19 | requisite quantity of renewable energy resources or pay the | ||||||
20 | applicable alternative compliance payment by the annual | ||||||
21 | deadline, the Commission shall require the alternative | ||||||
22 | retail electric supplier to double the applicable | ||||||
23 | alternative compliance payment that would otherwise be | ||||||
24 | required to bring the alternative retail electric supplier | ||||||
25 | into compliance with this Section. | ||||||
26 | If an alternative retail electric supplier fails to comply |
| |||||||
| |||||||
1 | with the renewable energy resource portfolio requirement in | ||||||
2 | this Section more than once in a 5-year period, then the | ||||||
3 | Commission shall revoke the alternative electric supplier's | ||||||
4 | certificate of service authority. The Commission shall not | ||||||
5 | accept an application for a certificate of service authority | ||||||
6 | from an alternative retail electric supplier that has lost | ||||||
7 | certification under this subsection (f), or any corporate | ||||||
8 | affiliate thereof, for at least one year after the date of | ||||||
9 | revocation. | ||||||
10 | (g) All of the provisions of this Section apply to electric | ||||||
11 | utilities operating outside their service area except under | ||||||
12 | item (2) of subsection (a) of this Section the quantity of | ||||||
13 | renewable energy resources shall be measured as a percentage of | ||||||
14 | the actual amount of electricity (megawatt-hours) supplied in | ||||||
15 | the State outside of the utility's service territory during the | ||||||
16 | 12-month period June 1 through May 31, commencing June 1, 2009, | ||||||
17 | and the comparable 12-month period in each year thereafter | ||||||
18 | except as provided in item (6) of subsection (a) of this | ||||||
19 | Section. | ||||||
20 | If any such utility fails to procure the requisite quantity | ||||||
21 | of renewable energy resources by the annual deadline, then the | ||||||
22 | Commission shall require the utility to double the alternative | ||||||
23 | compliance payment that would otherwise be required to bring | ||||||
24 | the utility into compliance with this Section. | ||||||
25 | If any such utility fails to comply with the renewable | ||||||
26 | energy resource portfolio requirement in this Section more than |
| |||||||
| |||||||
1 | once in a 5-year period, then the Commission shall order the | ||||||
2 | utility to cease all sales outside of the utility's service | ||||||
3 | territory for a period of at least one year. | ||||||
4 | (h) The provisions of this Section and the provisions of | ||||||
5 | subsection (d) of Section 16-115 of this Act relating to | ||||||
6 | procurement of renewable energy resources , and the provisions | ||||||
7 | of paragraph (6) of subsection (c) of Section 1-75 of the | ||||||
8 | Illinois Power Agency Act relating to the payments by retail | ||||||
9 | customers of a utility for the purpose of recovering the | ||||||
10 | utility's costs for procuring renewable energy credits, shall | ||||||
11 | not apply to an alternative retail electric supplier , or the | ||||||
12 | retail customers of an alternative retail electric supplier, | ||||||
13 | that operates a combined heat and power system in this State or | ||||||
14 | that has a corporate affiliate that operates such a combined | ||||||
15 | heat and power system in this State that supplies electricity | ||||||
16 | primarily to or for the benefit of: (i) facilities owned by the | ||||||
17 | supplier, its subsidiary, or other corporate affiliate; (ii) | ||||||
18 | facilities electrically integrated with the electrical system | ||||||
19 | of facilities owned by the supplier, its subsidiary, or other | ||||||
20 | corporate affiliate; or (iii) facilities that are adjacent to | ||||||
21 | the site on which the combined heat and power system is | ||||||
22 | located.
| ||||||
23 | (i) The obligations of alternative retail electric | ||||||
24 | suppliers and electric utilities operating outside their | ||||||
25 | service territories to procure renewable energy resources, | ||||||
26 | make alternative compliance payments, and file annual reports, |
| |||||||
| |||||||
1 | and the obligations of the Commission to determine and post | ||||||
2 | alternative compliance payment rates, shall terminate after | ||||||
3 | May 31, 2019, provided that alternative retail electric | ||||||
4 | suppliers and electric utilities operating outside their | ||||||
5 | service territories shall be obligated to make all alternative | ||||||
6 | compliance payments that they were obligated to pay for periods | ||||||
7 | through and including May 31, 2019, but were not paid as of | ||||||
8 | that date. The Commission shall continue to enforce the payment | ||||||
9 | of unpaid alternative compliance payments in accordance with | ||||||
10 | subsections (f) and (g) of this Section. All alternative | ||||||
11 | compliance payments made after May 31, 2016 shall be remitted | ||||||
12 | to the applicable electric utility and used to purchase | ||||||
13 | renewable energy credits, in accordance with Section 1-75 of | ||||||
14 | the Illinois Power Agency Act. | ||||||
15 | This subsection (i) is intended to accommodate the | ||||||
16 | transition to the procurement of renewable energy resources for | ||||||
17 | all retail customers in the amounts specified under subsection | ||||||
18 | (c) of Section 1-75 of the Illinois Power Agency Act and | ||||||
19 | Section 16-111.5 of this Act, including but not limited to the | ||||||
20 | transition to a single charge applicable to all retail | ||||||
21 | customers to recover the costs of these resources. Each | ||||||
22 | alternative retail electric supplier shall certify in its | ||||||
23 | annual reports filed pursuant to subsection (e) of this Section | ||||||
24 | after May 31, 2019, that its retail customers are not paying | ||||||
25 | the costs of alternative compliance payments or renewable | ||||||
26 | energy resources that the alternative retail electric supplier |
| |||||||
| |||||||
1 | is not required to remit or purchase under this Section. The | ||||||
2 | Commission shall have the authority to initiate an emergency | ||||||
3 | rulemaking to adopt rules regarding such certification. | ||||||
4 | (Source: P.A. 99-906, eff. 6-1-17.)
| ||||||
5 | Section 95. No acceleration or delay. Where this Act makes | ||||||
6 | changes in a statute that is represented in this Act by text | ||||||
7 | that is not yet or no longer in effect (for example, a Section | ||||||
8 | represented by multiple versions), the use of that text does | ||||||
9 | not accelerate or delay the taking effect of (i) the changes | ||||||
10 | made by this Act or (ii) provisions derived from any other | ||||||
11 | Public Act.
|