Sen. James F. Clayborne, Jr.

Filed: 3/26/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3173

2    AMENDMENT NO. ______. Amend Senate Bill 3173 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-10 and 1-20 and by adding Section 1-76 as
6follows:
 
7    (20 ILCS 3855/1-10)
8    Sec. 1-10. Definitions.
9    "Agency" means the Illinois Power Agency.
10    "Agency loan agreement" means any agreement pursuant to
11which the Illinois Finance Authority agrees to loan the
12proceeds of revenue bonds issued with respect to a project to
13the Agency upon terms providing for loan repayment installments
14at least sufficient to pay when due all principal of, interest
15and premium, if any, on those revenue bonds, and providing for
16maintenance, insurance, and other matters in respect of the

 

 

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1project.
2    "Authority" means the Illinois Finance Authority.
3    "Clean coal facility" means an electric generating
4facility that uses primarily coal as a feedstock and that
5captures and sequesters carbon dioxide emissions at the
6following levels: at least 50% of the total carbon dioxide
7emissions that the facility would otherwise emit if, at the
8time construction commences, the facility is scheduled to
9commence operation before 2016, at least 70% of the total
10carbon dioxide emissions that the facility would otherwise emit
11if, at the time construction commences, the facility is
12scheduled to commence operation during 2016 or 2017, and at
13least 90% of the total carbon dioxide emissions that the
14facility would otherwise emit if, at the time construction
15commences, the facility is scheduled to commence operation
16after 2017. The power block of the clean coal facility shall
17not exceed allowable emission rates for sulfur dioxide,
18nitrogen oxides, carbon monoxide, particulates and mercury for
19a natural gas-fired combined-cycle facility the same size as
20and in the same location as the clean coal facility at the time
21the clean coal facility obtains an approved air permit. All
22coal used by a clean coal facility shall have high volatile
23bituminous rank and greater than 1.7 pounds of sulfur per
24million btu content, unless the clean coal facility does not
25use gasification technology and was operating as a conventional
26coal-fired electric generating facility on June 1, 2009 (the

 

 

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1effective date of Public Act 95-1027).
2    "Clean coal SNG brownfield facility" means a facility that
3(1) has commenced construction by July 1, 2015 on an urban
4brownfield site in a municipality with at least 1,000,000
5residents; (2) uses a gasification process to produce
6substitute natural gas; (3) uses coal as at least 50% of the
7total feedstock over the term of any sourcing agreement with a
8utility and the remainder of the feedstock may be either
9petroleum coke or coal, with all such coal having a high
10bituminous rank and greater than 1.7 pounds of sulfur per
11million Btu content unless the facility reasonably determines
12that it is necessary to use additional petroleum coke to
13deliver additional consumer savings, in which case the facility
14shall use coal for at least 35% of the total feedstock over the
15term of any sourcing agreement; and (4) captures and sequesters
16at least 85% of the total carbon dioxide emissions that the
17facility would otherwise emit.
18    "Clean coal SNG facility" means a facility that uses a
19gasification process to produce substitute natural gas, that
20sequesters at least 90% of the total carbon dioxide emissions
21that the facility would otherwise emit, that uses at least 90%
22coal as a feedstock, with all such coal having a high
23bituminous rank and greater than 1.7 pounds of sulfur per
24million btu content, and that has a valid and effective permit
25to construct emission sources and air pollution control
26equipment and approval with respect to the federal regulations

 

 

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1for Prevention of Significant Deterioration of Air Quality
2(PSD) for the plant pursuant to the federal Clean Air Act;
3provided, however, a clean coal SNG brownfield facility shall
4not be a clean coal SNG facility.
5    "Commission" means the Illinois Commerce Commission.
6    "Costs incurred in connection with the development and
7construction of a facility" means:
8        (1) the cost of acquisition of all real property,
9    fixtures, and improvements in connection therewith and
10    equipment, personal property, and other property, rights,
11    and easements acquired that are deemed necessary for the
12    operation and maintenance of the facility;
13        (2) financing costs with respect to bonds, notes, and
14    other evidences of indebtedness of the Agency;
15        (3) all origination, commitment, utilization,
16    facility, placement, underwriting, syndication, credit
17    enhancement, and rating agency fees;
18        (4) engineering, design, procurement, consulting,
19    legal, accounting, title insurance, survey, appraisal,
20    escrow, trustee, collateral agency, interest rate hedging,
21    interest rate swap, capitalized interest, contingency, as
22    required by lenders, and other financing costs, and other
23    expenses for professional services; and
24        (5) the costs of plans, specifications, site study and
25    investigation, installation, surveys, other Agency costs
26    and estimates of costs, and other expenses necessary or

 

 

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1    incidental to determining the feasibility of any project,
2    together with such other expenses as may be necessary or
3    incidental to the financing, insuring, acquisition, and
4    construction of a specific project and starting up,
5    commissioning, and placing that project in operation.
6    "Department" means the Department of Commerce and Economic
7Opportunity.
8    "Director" means the Director of the Illinois Power Agency.
9    "Demand-response" means measures that decrease peak
10electricity demand or shift demand from peak to off-peak
11periods.
12    "Distributed renewable energy generation device" means a
13device that is:
14        (1) powered by wind, solar thermal energy,
15    photovoltaic cells and panels, biodiesel, crops and
16    untreated and unadulterated organic waste biomass, tree
17    waste, and hydropower that does not involve new
18    construction or significant expansion of hydropower dams;
19        (2) interconnected at the distribution system level of
20    either an electric utility as defined in this Section, an
21    alternative retail electric supplier as defined in Section
22    16-102 of the Public Utilities Act, a municipal utility as
23    defined in Section 3-105 of the Public Utilities Act, or a
24    rural electric cooperative as defined in Section 3-119 of
25    the Public Utilities Act;
26        (3) located on the customer side of the customer's

 

 

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1    electric meter and is primarily used to offset that
2    customer's electricity load; and
3        (4) limited in nameplate capacity to no more than 2,000
4    kilowatts.
5    "Eligible retail customers" has the same definition as
6found in Section 16-111.5 of the Public Utilities Act.
7    "Energy efficiency" means measures that reduce the amount
8of electricity or natural gas required to achieve a given end
9use.
10    "Electric utility" has the same definition as found in
11Section 16-102 of the Public Utilities Act.
12    "Facility" means an electric generating unit or a
13co-generating unit that produces electricity along with
14related equipment necessary to connect the facility to an
15electric transmission or distribution system.
16    "Governmental aggregator" means one or more units of local
17government that individually or collectively procure
18electricity to serve residential retail electrical loads
19located within its or their jurisdiction.
20    "Local government" means a unit of local government as
21defined in Article VII of Section 1 of Article VII of the
22Illinois Constitution.
23    "Municipal brownfield site" means a site (1) that is owned
24by a municipality and conveyed or leased to a person proposing
25to operate a qualified solar remediation facility on such site
26and (2) that is the subject of a Superfund alternative approach

 

 

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1agreement between the United States Environmental Protection
2Agency and potentially responsible parties in accordance with
3the federal Comprehensive Environmental Response,
4Compensation, and Liability Act of 1980, as amended, requiring
5remedial clean up of such site.
6    "Municipality" means a city, village, or incorporated
7town.
8    "Person" means any natural person, firm, partnership,
9corporation, either domestic or foreign, company, association,
10limited liability company, joint stock company, or association
11and includes any trustee, receiver, assignee, or personal
12representative thereof.
13    "Project" means the planning, bidding, and construction of
14a facility.
15    "Public utility" has the same definition as found in
16Section 3-105 of the Public Utilities Act.
17    "Qualified solar power purchase agreement" means an
18agreement between the operator of a qualified solar remediation
19facility and an electric utility that has terms and conditions
20meeting the requirements of subsection (c) of Section 1-76 of
21this Act and is consistent with the utility's applicable
22tariffs.
23    "Qualified solar remediation facility" means an electric
24generating facility:
25        (1) that uses photovoltaic cells and panels to produce
26    energy;

 

 

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1        (2) that is located at a municipal brownfield site;
2        (3) that has a nameplate capacity of no more than 20
3    megawatts; and
4        (4) where construction of the electric generating
5    facility structure has not commenced on or before the date
6    the application to approve a qualified solar power purchase
7    agreement for such facility is submitted to the Agency in
8    accordance with Section 1-76 of this Act.
9    "Real property" means any interest in land together with
10all structures, fixtures, and improvements thereon, including
11lands under water and riparian rights, any easements,
12covenants, licenses, leases, rights-of-way, uses, and other
13interests, together with any liens, judgments, mortgages, or
14other claims or security interests related to real property.
15    "Renewable energy credit" means a tradable credit that
16represents the environmental attributes of a certain amount of
17energy produced from a renewable energy resource.
18    "Renewable energy resources" includes energy and its
19associated renewable energy credit or renewable energy credits
20from wind, solar thermal energy, photovoltaic cells and panels,
21biodiesel, anaerobic digestion, crops and untreated and
22unadulterated organic waste biomass, tree waste, hydropower
23that does not involve new construction or significant expansion
24of hydropower dams, and other alternative sources of
25environmentally preferable energy. For purposes of this Act,
26landfill gas produced in the State is considered a renewable

 

 

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1energy resource. "Renewable energy resources" does not include
2the incineration or burning of tires, garbage, general
3household, institutional, and commercial waste, industrial
4lunchroom or office waste, landscape waste other than tree
5waste, railroad crossties, utility poles, or construction or
6demolition debris, other than untreated and unadulterated
7waste wood.
8    "Revenue bond" means any bond, note, or other evidence of
9indebtedness issued by the Authority, the principal and
10interest of which is payable solely from revenues or income
11derived from any project or activity of the Agency.
12    "Sequester" means permanent storage of carbon dioxide by
13injecting it into a saline aquifer, a depleted gas reservoir,
14or an oil reservoir, directly or through an enhanced oil
15recovery process that may involve intermediate storage,
16regardless of whether these activities are conducted by a clean
17coal facility, a clean coal SNG facility, a clean coal SNG
18brownfield facility, or a party with which a clean coal
19facility, or clean coal SNG facility, or clean coal SNG
20brownfield facility has contracted for such purposes.
21    "Sourcing agreement" means (i) in the case of an electric
22utility, an agreement between the owner of a clean coal
23facility and such electric utility, which agreement shall have
24terms and conditions meeting the requirements of paragraph (3)
25of subsection (d) of Section 1-75, (ii) in the case of an
26alternative retail electric supplier, an agreement between the

 

 

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1owner of a clean coal facility and such alternative retail
2electric supplier, which agreement shall have terms and
3conditions meeting the requirements of Section 16-115(d)(5) of
4the Public Utilities Act, and (iii) in case of a gas utility,
5an agreement between the owner of a clean coal SNG brownfield
6facility and the gas utility, which agreement shall have the
7terms and conditions meeting the requirements of subsection
8(h-1) of Section 9-220 of the Public Utilities Act.
9    "Substitute natural gas" or "SNG" means a gas manufactured
10by gasification of hydrocarbon feedstock, which is
11substantially interchangeable in use and distribution with
12conventional natural gas.
13    "Total resource cost test" or "TRC test" means a standard
14that is met if, for an investment in energy efficiency or
15demand-response measures, the benefit-cost ratio is greater
16than one. The benefit-cost ratio is the ratio of the net
17present value of the total benefits of the program to the net
18present value of the total costs as calculated over the
19lifetime of the measures. A total resource cost test compares
20the sum of avoided electric utility costs, representing the
21benefits that accrue to the system and the participant in the
22delivery of those efficiency measures, as well as other
23quantifiable societal benefits, including avoided natural gas
24utility costs, to the sum of all incremental costs of end-use
25measures that are implemented due to the program (including
26both utility and participant contributions), plus costs to

 

 

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1administer, deliver, and evaluate each demand-side program, to
2quantify the net savings obtained by substituting the
3demand-side program for supply resources. In calculating
4avoided costs of power and energy that an electric utility
5would otherwise have had to acquire, reasonable estimates shall
6be included of financial costs likely to be imposed by future
7regulations and legislation on emissions of greenhouse gases.
8(Source: P.A. 96-33, eff. 7-10-09; 96-159, eff. 8-10-09;
996-784, eff. 8-28-09; 96-1000, eff. 7-2-10; 97-96, eff.
107-13-11; 97-239, eff. 8-2-11; 97-491, eff. 8-22-11; 97-616,
11eff. 10-26-11; revised 11-10-11.)
 
12    (20 ILCS 3855/1-20)
13    Sec. 1-20. General powers of the Agency.
14    (a) The Agency is authorized to do each of the following:
15        (1) Develop electricity procurement plans to ensure
16    adequate, reliable, affordable, efficient, and
17    environmentally sustainable electric service at the lowest
18    total cost over time, taking into account any benefits of
19    price stability, for electric utilities that on December
20    31, 2005 provided electric service to at least 100,000
21    customers in Illinois and for small multi-jurisdictional
22    electric utilities that (A) on December 31, 2005 served
23    less than 100,000 customers in Illinois and (B) request a
24    procurement plan for their Illinois jurisdictional load.
25    The procurement plans shall be updated on an annual basis

 

 

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1    and shall include electricity generated from renewable
2    resources sufficient to achieve the standards specified in
3    this Act.
4        (2) Conduct competitive procurement processes to
5    procure the supply resources identified in the procurement
6    plan, pursuant to Section 16-111.5 of the Public Utilities
7    Act.
8        (3) Develop electric generation and co-generation
9    facilities that use indigenous coal or renewable
10    resources, or both, financed with bonds issued by the
11    Illinois Finance Authority.
12        (4) Supply electricity from the Agency's facilities at
13    cost to one or more of the following: municipal electric
14    systems, governmental aggregators, or rural electric
15    cooperatives in Illinois.
16    (b) Except as otherwise limited by this Act, the Agency has
17all of the powers necessary or convenient to carry out the
18purposes and provisions of this Act, including without
19limitation, each of the following:
20        (1) To have a corporate seal, and to alter that seal at
21    pleasure, and to use it by causing it or a facsimile to be
22    affixed or impressed or reproduced in any other manner.
23        (2) To use the services of the Illinois Finance
24    Authority necessary to carry out the Agency's purposes.
25        (3) To negotiate and enter into loan agreements and
26    other agreements with the Illinois Finance Authority.

 

 

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1        (4) To obtain and employ personnel and hire consultants
2    that are necessary to fulfill the Agency's purposes, and to
3    make expenditures for that purpose within the
4    appropriations for that purpose.
5        (5) To purchase, receive, take by grant, gift, devise,
6    bequest, or otherwise, lease, or otherwise acquire, own,
7    hold, improve, employ, use, and otherwise deal in and with,
8    real or personal property whether tangible or intangible,
9    or any interest therein, within the State.
10        (6) To acquire real or personal property, whether
11    tangible or intangible, including without limitation
12    property rights, interests in property, franchises,
13    obligations, contracts, and debt and equity securities,
14    and to do so by the exercise of the power of eminent domain
15    in accordance with Section 1-21; except that any real
16    property acquired by the exercise of the power of eminent
17    domain must be located within the State.
18        (7) To sell, convey, lease, exchange, transfer,
19    abandon, or otherwise dispose of, or mortgage, pledge, or
20    create a security interest in, any of its assets,
21    properties, or any interest therein, wherever situated.
22        (8) To purchase, take, receive, subscribe for, or
23    otherwise acquire, hold, make a tender offer for, vote,
24    employ, sell, lend, lease, exchange, transfer, or
25    otherwise dispose of, mortgage, pledge, or grant a security
26    interest in, use, and otherwise deal in and with, bonds and

 

 

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1    other obligations, shares, or other securities (or
2    interests therein) issued by others, whether engaged in a
3    similar or different business or activity.
4        (9) To make and execute agreements, contracts, and
5    other instruments necessary or convenient in the exercise
6    of the powers and functions of the Agency under this Act,
7    including contracts with any person, including personal
8    service contracts, or with any local government, State
9    agency, or other entity; and all State agencies and all
10    local governments are authorized to enter into and do all
11    things necessary to perform any such agreement, contract,
12    or other instrument with the Agency. No such agreement,
13    contract, or other instrument shall exceed 40 years.
14        (10) To lend money, invest and reinvest its funds in
15    accordance with the Public Funds Investment Act, and take
16    and hold real and personal property as security for the
17    payment of funds loaned or invested.
18        (11) To borrow money at such rate or rates of interest
19    as the Agency may determine, issue its notes, bonds, or
20    other obligations to evidence that indebtedness, and
21    secure any of its obligations by mortgage or pledge of its
22    real or personal property, machinery, equipment,
23    structures, fixtures, inventories, revenues, grants, and
24    other funds as provided or any interest therein, wherever
25    situated.
26        (12) To enter into agreements with the Illinois Finance

 

 

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1    Authority to issue bonds whether or not the income
2    therefrom is exempt from federal taxation.
3        (13) To procure insurance against any loss in
4    connection with its properties or operations in such amount
5    or amounts and from such insurers, including the federal
6    government, as it may deem necessary or desirable, and to
7    pay any premiums therefor.
8        (14) To negotiate and enter into agreements with
9    trustees or receivers appointed by United States
10    bankruptcy courts or federal district courts or in other
11    proceedings involving adjustment of debts and authorize
12    proceedings involving adjustment of debts and authorize
13    legal counsel for the Agency to appear in any such
14    proceedings.
15        (15) To file a petition under Chapter 9 of Title 11 of
16    the United States Bankruptcy Code or take other similar
17    action for the adjustment of its debts.
18        (16) To enter into management agreements for the
19    operation of any of the property or facilities owned by the
20    Agency.
21        (17) To enter into an agreement to transfer and to
22    transfer any land, facilities, fixtures, or equipment of
23    the Agency to one or more municipal electric systems,
24    governmental aggregators, or rural electric agencies or
25    cooperatives, for such consideration and upon such terms as
26    the Agency may determine to be in the best interest of the

 

 

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1    citizens of Illinois.
2        (18) To enter upon any lands and within any building
3    whenever in its judgment it may be necessary for the
4    purpose of making surveys and examinations to accomplish
5    any purpose authorized by this Act.
6        (19) To maintain an office or offices at such place or
7    places in the State as it may determine.
8        (20) To request information, and to make any inquiry,
9    investigation, survey, or study that the Agency may deem
10    necessary to enable it effectively to carry out the
11    provisions of this Act.
12        (21) To accept and expend appropriations.
13        (22) To engage in any activity or operation that is
14    incidental to and in furtherance of efficient operation to
15    accomplish the Agency's purposes, including hiring
16    employees that the Director deems essential for the
17    operations of the Agency.
18        (23) To adopt, revise, amend, and repeal rules with
19    respect to its operations, properties, and facilities as
20    may be necessary or convenient to carry out the purposes of
21    this Act, subject to the provisions of the Illinois
22    Administrative Procedure Act and Sections 1-22 and 1-35 of
23    this Act.
24        (24) To establish and collect charges and fees as
25    described in this Act.
26        (25) To conduct competitive gasification feedstock

 

 

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1    procurement processes to procure the feedstocks for the
2    clean coal SNG brownfield facility in accordance with the
3    requirements of Section 1-78 of this Act.
4        (26) To review, revise, and approve sourcing
5    agreements and mediate and resolve disputes between gas
6    utilities and the clean coal SNG brownfield facility
7    pursuant to subsection (h-1) of Section 9-220 of the Public
8    Utilities Act.
9        (27) To review and approve qualified solar power
10    purchase agreements pursuant to Section 1-76 of this Act.
11(Source: P.A. 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10;
1297-96, eff. 7-13-11; 97-325, eff. 8-12-11; 97-618, eff.
1310-26-11; revised 11-10-11.)
 
14    (20 ILCS 3855/1-76 new)
15    Sec. 1-76. Qualified solar power purchase agreements.
16    (a) The General Assembly finds that encouraging the
17development and use of solar energy is in the public interest
18and consistent with the renewable energy goals of the State.
19The General Assembly further finds that repurposing and
20redeveloping brownfield sites owned by municipalities,
21including in particular those sites that are in need of
22remedial clean up due to prior contamination, to host solar
23energy producing facilities is in the economic and
24environmental interests of the State, those municipalities,
25and the public.

 

 

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1    (b) For a period of one year after the effective date of
2this amendatory Act of the 97th General Assembly, the Agency
3shall accept applications from proposed operators of proposed
4qualified solar remediation facilities to approve a qualified
5solar power purchase agreement. The Agency shall accept only
6one application that meets the criteria set forth in this
7Section. The Agency shall not accept an application that does
8not meet the criteria set forth in this Section. The
9application shall include a proposed qualified solar power
10purchase agreement between the applicant and an electric
11utility.
12    (c) Each qualified solar power purchase agreement shall:
13        (1) include provisions governing the prices paid for
14    electricity generated by the qualified solar remediation
15    facility and for renewable energy credits purchased in
16    connection with the electricity, which prices in aggregate
17    (for both electricity and renewable energy credits) shall
18    not:
19            (A) exceed 23 cents per kilowatt hour in the first
20        year of the sale thereof pursuant to such qualified
21        solar power purchase agreement; and
22            (B) increase during the term of the qualified solar
23        power purchase agreement by more than 1.5% per year;
24        (2) specify a term of no more than 20 years, commencing
25    on the commercial operation date of the facility;
26        (3) require the facility to be constructed on the

 

 

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1    specified municipal brownfield site and to achieve the
2    commercial operation date within 5 years after the approval
3    of the qualified solar power purchase agreement by the
4    Agency;
5        (4) include a representation by the applicant that,
6    from and after the execution of the qualified solar power
7    purchase agreement, any costs incurred in the
8    environmental remediation of the municipal brownfield
9    site, other than for the construction of the qualified
10    solar remediation facility, shall not cause an increase in
11    the prices paid for electricity generated by the qualified
12    solar remediation facility in excess of the prices stated
13    in the proposed qualified solar power purchase agreement;
14        (5) provide for purchase and sale of the full output of
15    a qualified solar remediation facility consistent with the
16    electric utility's tariffs and practice, but not to exceed
17    a nameplate capacity of 20 megawatts;
18        (6) require the qualified solar remediation facility
19    to provide to the electric utility, on a day-prior basis,
20    an estimate of the integrated hourly output from the
21    facility and, on a monthly basis, the actual integrated
22    hourly output from the facility; and
23        (7) provide that the effectiveness of such agreement is
24    contingent upon (i) approval by the Agency pursuant to this
25    Section and (ii) inclusion in a procurement plan that is
26    submitted by the Agency and approved by the Commission.

 

 

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1    (d) The Agency shall promptly review an application
2submitted pursuant to this Section. The Agency shall approve a
3qualified solar power purchase agreement within 90 days after
4the Agency has received such an application or before the next
5submission of the Agency's procurement plan to the Commission,
6whichever is earlier, unless the Agency finds that the
7agreement does not conform to the requirements of subsection
8(c) of this Section. Immediately following the approval of the
9qualified solar power purchase agreement by the Agency, the
10Agency shall include and incorporate the qualified solar power
11purchase agreement and the proposed output in the Agency's
12procurement plan.
13    (e) The Commission shall approve the inclusion of the
14qualified solar power purchase agreement in the Agency's
15procurement plan, unless the Commission finds that any
16projected rate increases to eligible retail electric customers
17attributable solely to costs incurred by an electric utility
18pursuant to the qualified solar power purchase agreement
19violate the requirements of paragraph (2) of subsection (c) of
20Section 1-75 of this Act. Upon approval of a qualified solar
21power purchase agreement by the Commission, such qualified
22solar power purchase agreement shall be executed by the parties
23and become effective subject to the electric utility's
24applicable tariffs.
25    (f) The Agency may assess a fee to the applicant to recover
26the costs incurred in reviewing the application pursuant to

 

 

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1this Section.
2    (g) All costs incurred by an electric utility pursuant to a
3qualified solar power purchase agreement approved by the Agency
4pursuant to this Section, including costs for renewable energy
5credits purchased in connection with electricity generated by
6that qualified solar remediation facility and costs incurred in
7negotiating the agreement and seeking approval by the Agency in
8accordance with this Section, shall be deemed prudently
9incurred and reasonable in amount, and the electric utility
10shall be entitled to full cost recovery pursuant to the tariffs
11filed with the Commission.
12    (h) Any renewable energy credits purchased by an electric
13utility pursuant to a qualified solar power purchase agreement
14approved by the Agency pursuant to this Section shall count
15towards the required percentages for solar photovoltaic energy
16for the purposes of subsection (c) of Section 1-75 of this Act.
17    (i) The electric utility shall include purchases under the
18qualified solar power purchase agreement in its portfolio of
19purchases associated with eligible retail customers, at a value
20equal to the total of the per-kilowatt-hour cost of on-peak
21energy, capacity, and solar renewable energy credits
22associated with renewable energy procured in the most recent
23power procurement event conducted under Section 1-75 of this
24Act that included executed contracts for solar renewable energy
25credits. The value of purchases under the qualified solar power
26purchase agreement shall be recovered under tariffs approved by

 

 

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1the Commission pursuant to subsection (l) of Section 16-111.5
2of the Public Utilities Act.
3    The electric utility shall estimate the kilowatt-hour
4quantity of qualified solar power purchase agreement energy
5expected to be acquired in a procurement plan year. The over or
6under cost recovery mechanism contained in the tariff approved
7by the Commission pursuant to subsection (l) of Section
816-111.5 of the Public Utilities Act shall reconcile the
9estimated costs with the actual costs allocated to eligible
10retail customers by multiplying the per-kilowatt-hour cost
11established in this Section by the difference between the
12estimated kilowatt-hour quantity and the actual kilowatt-hour
13quantity generated by the qualified solar remediation
14facility.
15    (j) If the price established by the qualified solar power
16purchase agreement in conformance with subsection (c) of this
17Section is different than the value of the purchases under the
18qualified solar power purchase agreement as determined by
19subsection (i) of this Section, the difference shall be
20collected equally from, or credited equally to, all of the
21electric utility's delivery service customers through a cents
22per-kilowatt-hour tariff mechanism approved by the Commission.
23Such tariff mechanism shall be established outside the context
24of a general rate case or formula rate proceeding. The tariff
25mechanism each year shall establish an estimated amount to
26collect or credit and shall contain provisions that ensure that

 

 

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1its application does not result in over or under recovery,
2including, but not limited to, that may be due to changes in
3qualified solar remediation facility production or customer
4usage or demand patterns.
5    The application of subsections (i) and (j) of this Section
6together shall be construed to permit the electric utility to
7recover all of its costs incurred to comply with this Section.
8    (k) Nothing in this Section shall be construed to prohibit
9the electric utility from recovering prudently incurred costs
10under this Section from its delivery service customers or
11bundled service customers.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".