Illinois-2023-SB2970-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2970

Introduced 1/31/2024, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

`New Act`
`20 ILCS 3855/1-129 new`
`30 ILCS 105/5.1015 new`

Creates the Illinois Regional Generation Reliability Task Force Act. Sets forth findings of the General Assembly. Creates the Illinois Regional Generation Reliability Task Force. Provides that the Task Force shall monitor the reliability of the Illinois power grid. Contains provisions concerning: the membership of the Task Force; duties of the Task Force; administrative support; and an annual report. Amends the Illinois Power Agency Act. Provides that the Carbon Capture Infrastructure Fund is created as a special fund in the State treasury and shall be administered by the Illinois Power Agency. Provides that $10,000,000 shall be transferred from the Illinois Power Agency Renewable Energy Resources Fund to the Carbon Capture Infrastructure Fund. Provides that the Agency shall award grants from the fund to carbon producing power plants for the construction of new carbon capture storage systems. Amends the State Finance Act to create the Carbon Capture Infrastructure Fund. Effective immediately.

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A BILL FOR

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1 AN ACT concerning State government.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the

5 Illinois Regional Generation Reliability Task Force Act.

6 Section 5. Findings. The General Assembly hereby finds,

7 determines, and declares the following:

8 (1) The reliability of the electricity grid of the

9 State is critically important to the consumers,

10 businesses, and residents of this State and should not be

11 compromised.

12 (2) The State has taken definitive steps toward

13 redefining the generation mix in this State.

14 (3) The Midcontinent Independent System Operator, Inc.

15 ("MISO") is an independent, not-for-profit, member-based

16 organization responsible for operating the power grid

17 across 15 states and the Canadian province of Manitoba,

18 serving 42 million people.

19 (4) The PJM Interconnection LLC ("PJM"), is an

20 independent not-for-profit, member-based Regional

21 Transmission Organization ("RTO") that manages the

22 operations, supply, and movement of power across 13 states

23 and the District of Columbia, serving 65 million people.

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1 (5) The State is served by both PJM and MISO, which

2 collectively ensure that sufficient electric power

3 generation supply and transmission are available to meet

4 electric demand every minute of every day for over 107

5 million people across 28 states and 2 countries. Wholesale

6 electric power generation is regulated by the Federal

7 Energy Regulatory Commission due to the interstate and

8 international nature of the transmission grid operated by

9 PJM and MISO. As such, policy changes at the State level

10 can affect the reliability, availability, and cost of

11 power for seniors, families, businesses, municipalities,

12 universities, and hospitals across the region.

13 (6) When natural disasters occur, such as ice storms,

14 blizzards, tornadoes, and hurricanes, states participating

15 in PJM and MISO have provided support to each other

16 through power generation restoration missions. The

17 inability to deliver power generation in critical times

18 can have a huge economic impact and can also result in

19 death across the PJM and MISO regional transmission

20 organizations.

21 (7) PJM and MISO have multiple markets in which power

22 suppliers participate. The capacity market, day-ahead

23 energy market, and frequency market are markets that power

24 generators participate in to ensure over 107 million

25 people across 28 states and 2 countries receive the right

26 amount of electricity every minute of every day.

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1 (A) Capacity markets are used in wholesale

2 electricity markets to pay resources for being

3 available to meet peak electricity demand. Capacity is

4 not actual electricity but rather the ability to

5 produce electricity when called upon. Capacity is

6 procured sometimes multiple years in advance of when

7 it is needed, based on projections of future energy

8 needs using historical demand requirements.

9 (B) The day-ahead energy market lets market

10 participants commit to buy or sell wholesale

11 electricity one day before the power is needed, to

12 help avoid price volatility. The real-time energy

13 market balances the differences between day-ahead

14 commitments and the actual real-time demand for and

15 production of electricity.

16 (C) The power grid operates, and shall be

17 maintained, at a constant frequency of 60 hertz.

18 Significant deviation from this level can result in

19 catastrophic damage to the power grid as well as

20 household appliances. Frequency is maintained when

21 electric generators automatically add or remove power

22 from the grid. For example, a large power plant

23 suddenly tripping offline reduces the total amount of

24 available kinetic energy, leading the rotating

25 generators on the system to start rotating less

26 rapidly and thereby decreasing the alternating current

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1 frequency across the grid system. Since a generator

2 turbine's rotational velocity is directly coupled to

3 the grid frequency, the generator's control systems

4 can sense this frequency decline as an indicator of

5 insufficient energy provision. The control system

6 within each power plant, which usually has been in the

7 form of a governor, can then automatically increase

8 the plant's power output. This process is autonomous

9 because the governor does not have to wait for a

10 central dispatcher to send a signal, thus bypassing

11 communications system delays.

12 (8) The shifting generation mix in PJM and MISO will

13 require optimum performance and an increased focus on the

14 need to retain reliability as certain existing generators

15 shut down operations and new, intermittent generators are

16 added. Additionally, increased power generation

17 consumption due to increased electric vehicles and

18 charging stations, along with increased electrification of

19 building heating needs, will undoubtedly place greater

20 demand on the power system.

21 (9) The State has a responsibility to ensure that the

22 performance of State and regional power grids are safe,

23 reliable, and maintain the necessary capacity to meet the

24 power demands of residents of this State. Additionally,

25 the State has an obligation to do its part to ensure the

26 regional power grid is safe and reliable for its

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1 partnering states. As part of the regional power grid,

2 this State should be concerned that shuttered facilities

3 in this State will be replaced by higher cost, higher

4 emissions resources from other states.

5 Section 10. Illinois Regional Generation Reliability Task

6 Force.

7 (a) The Illinois Regional Generation Reliability Task

8 Force is created. The Task Force shall monitor the reliability

9 of the power grid of this State. The Task Force should consider

10 the present and future needs of consumers of this State while

11 simultaneously addressing any issues related to the

12 performance and reliability of power generation and

13 transmission and being mindful of the ultimate cost to

14 consumers.

15 (b) The duties and responsibilities of the Task Force

16 include the following:

17 (1) identifying and assessing policies, rules, and

18 laws that have the potential to significantly affect the

19 reliability of the State and regional power grids;

20 (2) developing a set of standards and conditions that

21 will ensure optimal performance of the State and regional

22 power grids based on new and emerging technologies;

23 (3) identifying opportunities to improve the power

24 supply mix in this State through existing and new laws to

25 ensure continued power reliability at affordable rates for

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1 consumers of this State;

2 (4) compiling research and best practices from other

3 states and countries on how to deploy technology to

4 benefit the performance and reliability of the power grid;

5 (5) developing tools to assess the impact of proposed

6 policies and evaluate their costs and benefits on

7 families, employers, the public, this State, and other

8 states as part of the State and regional power grids;

9 (6) identifying data, reports, and relevant

10 information on the performance of the power grid to ensure

11 reliability and that pricing of power generation is in the

12 best interest of families, businesses, and communities in

13 this State;

14 (7) providing its findings and recommendations for

15 policy changes and any revisions to policies, rules, and

16 laws that will facilitate the stability and reliability of

17 the State and regional power grids on an annual basis to

18 the General Assembly; and

19 (8) developing and proposing legislative concepts to

20 ensure the future stability and reliability of the power

21 grid.

22 Section 15. Membership; meetings.

23 (a) The members of the Illinois Regional Generation

24 Reliability Task Force shall be composed of the following:

25 (1) three Senators appointed by the President of the

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1 Senate, one of whom shall be designated by the President

2 as the co-chair of the Task Force;

3 (2) three Representatives appointed by the Speaker of

4 the House of Representatives, one of whom shall be

5 designated by the Speaker as the co-chair of the Task

6 Force;

7 (3) three Senators appointed by the Minority Leader of

8 the Senate;

9 (4) three Representatives appointed by the Minority

10 Leader of the House of Representatives;

11 (5) one member appointed by the Governor whose sole

12 role is dedicated to energy policy for the State;

13 (6) one member of a State or local labor organization

14 appointed by the President of the Senate;

15 (7) one member of a State or local labor organization

16 appointed by the Speaker of the House of Representatives;

17 (8) one representative from PJM RTO, designated by

18 PJM;

19 (9) one representative from the PJM Independent Market

20 Monitor organization, designated by the PJM Independent

21 Market Monitor organization;

22 (10) one representative from MISO RTO, designated by

23 MISO;

24 (11) one representative from the MISO Independent

25 Market Monitor organization, designated by the MISO

26 Independent Market Monitor organization;

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1 (12) six representatives from 6 different power

2 generation companies that operate in the PJM or MISO

3 regional transmission organization, 2 appointed by the

4 President of the Senate, 2 appointed by the Speaker of the

5 House of Representatives, one appointed by the Minority

6 Leader in the Senate, and one appointed by the Minority

7 Leader in the House of Representatives;

8 (13) one representative from a statewide organization

9 representing retail merchants, appointed by the President

10 of the Senate;

11 (14) one representative from a statewide organization

12 representing manufacturers, appointed by the Speaker of

13 the House of Representatives;

14 (15) one representative from a statewide organization

15 representing retired people, appointed by the Speaker of

16 the House of Representatives;

17 (16) one representative from a minority-owned

18 geothermal group, appointed by the President of the

19 Senate;

20 (17) one representative from a statewide organization

21 representing business, appointed by the Speaker of the

22 House of Representatives;

23 (18) two representatives from environmental law

24 groups, one appointed by the President of the Senate and

25 one appointed by the Speaker of the House of

26 Representatives;

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1 (19) the Director of the Illinois Power Agency, or the

2 Director's designee;

3 (20) the Director of the Environmental Protection

4 Agency, or the Director's designee; and

5 (21) the Chair of the Illinois Commerce Commission, or

6 the Chair's designee.

7 (b) Appointments for the Task Force shall be made by May 1,

8 2025. The Task Force shall hold 7 meetings annually, either

9 remotely or in person, and the first meeting shall be held

10 within 30 days after appointments are made.

11 (c) Members of the Task Force shall serve without

12 compensation.

13 (d) The Illinois Commerce Commission shall provide

14 administrative support to the Task Force in conjunction with

15 the independent market monitors for the MISO and PJM regional

16 transmission organizations.

17 Section 20. Annual report.

18 (a) The Illinois Regional Generation Reliability Task

19 Force shall issue an annual report based upon its findings in

20 the course of performing its duties and responsibilities. The

21 report shall be written by the administrative staff of the

22 Task Force and with staff assistance from the independent

23 market monitors from the MISO and PJM regional transmission

24 organizations.

25 (b) The Illinois Regional Generation Reliability Task

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1 Force shall submit its first report on October 1, 2025, and

2 each October 1 thereafter to the General Assembly upon the

3 completion of its meeting schedule and shall continue to issue

4 reports each year.

5 Section 25. The Illinois Power Agency Act is amended by

6 adding Section 1-129 as follows:

7 (20 ILCS 3855/1-129 new)

8 Sec. 1-129. Carbon Capture Infrastructure Fund.

9 (a) The Carbon Capture Infrastructure Fund is created as a

10 special fund in the State treasury.

11 (b) The Carbon Capture Infrastructure Fund shall be

12 administered by the Agency to award grants for the

13 construction of new carbon capture storage systems.

14 (c) As soon as practicable after the effective date of

15 this amendatory Act of the 103rd General Assembly, $10,000,000

16 shall be transferred from the Illinois Power Agency Renewable

17 Energy Resources Fund to the Carbon Capture Infrastructure

18 Fund.

19 (d) The Agency shall award grants from the Carbon Capture

20 Infrastructure Fund to carbon producing power plants in this

21 State for the construction of new carbon capture storage

22 systems.

23 (e) The Agency shall adopt rules to implement this

24 Section.

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1 Section 30. The State Finance Act is amended by adding

2 Section 5.1015 as follows:

3 (30 ILCS 105/5.1015 new)

4 Sec. 5.1015. The Carbon Capture Infrastructure Fund.