093_SB0431sam001

 










                                     LRB093 07550 EFG 12480 a

 1                    AMENDMENT TO SENATE BILL 431

 2        AMENDMENT NO.     .  Amend Senate Bill 431  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Public  Utilities  Act  is amended by
 5    adding Section 8-405.5 as follows:

 6        (220 ILCS 5/8-405.5 new)
 7        Sec. 8-405.5. Renewable energy resources.
 8        (a)  It is the intent of the legislature that by  January
 9    1, 2010, an additional 2,000 megawatts of generating capacity
10    from  renewable  energy technologies will have been installed
11    in this State.  The cumulative installed  renewable  capacity
12    in this State shall total 1,280 megawatts by January 1, 2005;
13    1,730  megawatts  by  January  1,  2006;  2,280  megawatts by
14    January 1, 2007; and 2,880 megawatts by January 1, 2008.
15        (b)  The Commission shall establish  a  renewable  energy
16    credits  trading  program.  Any retail electric provider that
17    does not  satisfy  the  requirements  of  subsection  (a)  by
18    directly owning or purchasing capacity using renewable energy
19    technologies   shall  purchase  sufficient  renewable  energy
20    credits to satisfy  the  requirements  by  holding  renewable
21    energy  credits  in  lieu  of  capacity from renewable energy
22    technologies.
 
                            -2-      LRB093 07550 EFG 12480 a
 1        (c)  Not later than January 1, 2004, the Commission shall
 2    adopt rules necessary to administer and enforce this Section.
 3    At a minimum, the rules shall:
 4             (1)  establish the minimum annual  renewable  energy
 5        requirement  for  each retail electric provider operating
 6        in this State in a manner reasonably  calculated  by  the
 7        Commission  to  produce, on a statewide basis, compliance
 8        with the requirement prescribed by subsection (a); and
 9             (2)  specify reasonable performance  standards  that
10        all  renewable  capacity  additions  must  meet  to count
11        against the requirement prescribed by subsection (a)  and
12        that:
13                  (A)  are   designed   and  operated  so  as  to
14             maximize  the  energy  output  from   the   capacity
15             additions  in  accordance with then-current industry
16             standards;
17                  (B)  encourage the  development,  construction,
18             and  operation  of  new renewable energy projects at
19             those sites in this State  that  have  the  greatest
20             economic  potential  for  capture and development of
21             this State's  environmentally  beneficial  renewable
22             resource; and
23                  (C)  allow  the  retail  electric  provider  to
24             include  the reasonable cost of the renewable energy
25             credits in its rate base; and
26             (3)  provide a mechanism whereby a  retail  electric
27        provider can acquire renewable energy credits as follows:
28                  (A)  the  seller  of  the  credits  is  a power
29             generation facility that has agreed to shutdown,  or
30             remain  shutdown,  and  has  been  certified  by the
31             Illinois   Environmental   Protection   Agency    as
32             environmentally undesirable;
33                  (B)  the  credits  are  equivalent to the total
34             amount of energy the power generation facility would
 
                            -3-      LRB093 07550 EFG 12480 a
 1             have generated  through  the  end  of  its  expected
 2             useful life;
 3                  (C)  the  seller  and  retail electric provider
 4             may agree to a lump sum purchase price equal to  the
 5             net  present  value of the credits over the expected
 6             useful life of the power generation facility; and
 7                  (D)  the retail electric provider is  permitted
 8             to  include  the  reasonable  cost  of  the credits,
 9             including any lump sum payment, in its rate base.
10        (d)  In this Section, "renewable energy technology" means
11    any technology that exclusively relies on  an  energy  source
12    that  is  naturally  regenerated  over  a  short  time and is
13    derived directly from the sun, indirectly from  the  sun,  or
14    from  moving  water or other natural movements and mechanisms
15    of the environment.  Renewable  energy  technologies  include
16    those  that  rely on energy derived directly from the sun, on
17    wind, geothermal, hydroelectric, wave, or tidal energy, or on
18    biomass or biomass-based waste products,  including  landfill
19    gas.   A  renewable energy technology does not rely on energy
20    resources derived from  fossil  fuels,  waste  products  from
21    fossil fuels, or waste products from inorganic sources.

22        Section  99.  Effective date.  This Act takes effect upon
23    becoming law.".