Full Text of HB1943 97th General Assembly
HB1943ham001 97TH GENERAL ASSEMBLY | Rep. Ann Williams Filed: 4/13/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1943
| 2 | | AMENDMENT NO. ______. Amend House Bill 1943 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Power Agency Act is amended by | 5 | | changing Sections 1-10, 1-56, and 1-75 as follows:
| 6 | | (20 ILCS 3855/1-10)
| 7 | | Sec. 1-10. Definitions. | 8 | | "Agency" means the Illinois Power Agency. | 9 | | "Agency loan agreement" means any agreement pursuant to | 10 | | which the Illinois Finance Authority agrees to loan the | 11 | | proceeds of revenue bonds issued with respect to a project to | 12 | | the Agency upon terms providing for loan repayment installments | 13 | | at least sufficient to pay when due all principal of, interest | 14 | | and premium, if any, on those revenue bonds, and providing for | 15 | | maintenance, insurance, and other matters in respect of the | 16 | | project. |
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| 1 | | "Authority" means the Illinois Finance Authority. | 2 | | "Clean coal facility" means an electric generating | 3 | | facility that uses primarily coal as a feedstock and that | 4 | | captures and sequesters carbon emissions at the following | 5 | | levels: at least 50% of the total carbon emissions that the | 6 | | facility would otherwise emit if, at the time construction | 7 | | commences, the facility is scheduled to commence operation | 8 | | before 2016, at least 70% of the total carbon emissions that | 9 | | the facility would otherwise emit if, at the time construction | 10 | | commences, the facility is scheduled to commence operation | 11 | | during 2016 or 2017, and at least 90% of the total carbon | 12 | | emissions that the facility would otherwise emit if, at the | 13 | | time construction commences, the facility is scheduled to | 14 | | commence operation after 2017. The power block of the clean | 15 | | coal facility shall not exceed allowable emission rates for | 16 | | sulfur dioxide, nitrogen oxides, carbon monoxide, particulates | 17 | | and mercury for a natural gas-fired combined-cycle facility the | 18 | | same size as and in the same location as the clean coal | 19 | | facility at the time the clean coal facility obtains an | 20 | | approved air permit. All coal used by a clean coal facility | 21 | | shall have high volatile bituminous rank and greater than 1.7 | 22 | | pounds of sulfur per million btu content, unless the clean coal | 23 | | facility does not use gasification technology and was operating | 24 | | as a conventional coal-fired electric generating facility on | 25 | | June 1, 2009 (the effective date of Public Act 95-1027). | 26 | | "Clean coal SNG facility" means a facility that uses a |
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| 1 | | gasification process to produce substitute natural gas, that | 2 | | sequesters at least 90% of the total carbon emissions that the | 3 | | facility would otherwise emit and that uses petroleum coke or | 4 | | coal as a feedstock, with all such coal having a high | 5 | | bituminous rank and greater than 1.7 pounds of sulfur per | 6 | | million btu content. | 7 | | "Commission" means the Illinois Commerce Commission. | 8 | | "Costs incurred in connection with the development and | 9 | | construction of a facility" means: | 10 | | (1) the cost of acquisition of all real property and | 11 | | improvements in connection therewith and equipment and | 12 | | other property, rights, and easements acquired that are | 13 | | deemed necessary for the operation and maintenance of the | 14 | | facility; | 15 | | (2) financing costs with respect to bonds, notes, and | 16 | | other evidences of indebtedness of the Agency; | 17 | | (3) all origination, commitment, utilization, | 18 | | facility, placement, underwriting, syndication, credit | 19 | | enhancement, and rating agency fees; | 20 | | (4) engineering, design, procurement, consulting, | 21 | | legal, accounting, title insurance, survey, appraisal, | 22 | | escrow, trustee, collateral agency, interest rate hedging, | 23 | | interest rate swap, capitalized interest and other | 24 | | financing costs, and other expenses for professional | 25 | | services; and | 26 | | (5) the costs of plans, specifications, site study and |
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| 1 | | investigation, installation, surveys, other Agency costs | 2 | | and estimates of costs, and other expenses necessary or | 3 | | incidental to determining the feasibility of any project, | 4 | | together with such other expenses as may be necessary or | 5 | | incidental to the financing, insuring, acquisition, and | 6 | | construction of a specific project and placing that project | 7 | | in operation. | 8 | | "Department" means the Department of Commerce and Economic | 9 | | Opportunity. | 10 | | "Director" means the Director of the Illinois Power Agency. | 11 | | "Demand-response" means measures that decrease peak | 12 | | electricity demand or shift demand from peak to off-peak | 13 | | periods. | 14 | | "Distributed renewable energy generation device" means a | 15 | | device that is: | 16 | | (1) powered by wind, solar thermal energy, | 17 | | photovoltaic cells and panels, biodiesel, crops and | 18 | | untreated and unadulterated organic waste biomass, tree | 19 | | waste, and hydropower that does not involve new | 20 | | construction or significant expansion of hydropower dams; | 21 | | (2) interconnected at the distribution system level of | 22 | | either an electric utility as defined in this Section, an | 23 | | alternative retail electric supplier as defined in Section | 24 | | 16-102 of the Public Utilities Act, a municipal utility as | 25 | | defined in Section 3-105 of the Public Utilities Act, or a | 26 | | rural electric cooperative as defined in Section 3-119 of |
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| 1 | | the Public Utilities Act; and | 2 | | (3) located on the customer side of the customer's | 3 | | electric meter and is generally used to offset that | 4 | | customer's electricity load. | 5 | | "Energy efficiency" means measures that reduce the amount | 6 | | of electricity or natural gas required to achieve a given end | 7 | | use. | 8 | | "Electric utility" has the same definition as found in | 9 | | Section 16-102 of the Public Utilities Act. | 10 | | "Facility" means an electric generating unit or a | 11 | | co-generating unit that produces electricity along with | 12 | | related equipment necessary to connect the facility to an | 13 | | electric transmission or distribution system. | 14 | | "Governmental aggregator" means one or more units of local | 15 | | government that individually or collectively procure | 16 | | electricity to serve residential retail electrical loads | 17 | | located within its or their jurisdiction. | 18 | | "Local government" means a unit of local government as | 19 | | defined in Article VII of Section 1 of the Illinois | 20 | | Constitution. | 21 | | "Municipality" means a city, village, or incorporated | 22 | | town. | 23 | | "Person" means any natural person, firm, partnership, | 24 | | corporation, either domestic or foreign, company, association, | 25 | | limited liability company, joint stock company, or association | 26 | | and includes any trustee, receiver, assignee, or personal |
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| 1 | | representative thereof. | 2 | | "Project" means the planning, bidding, and construction of | 3 | | a facility. | 4 | | "Public utility" has the same definition as found in | 5 | | Section 3-105 of the Public Utilities Act. | 6 | | "Real property" means any interest in land together with | 7 | | all structures, fixtures, and improvements thereon, including | 8 | | lands under water and riparian rights, any easements, | 9 | | covenants, licenses, leases, rights-of-way, uses, and other | 10 | | interests, together with any liens, judgments, mortgages, or | 11 | | other claims or security interests related to real property. | 12 | | "Renewable energy credit" means a tradable credit that | 13 | | represents the environmental attributes of a certain amount of | 14 | | energy produced from a renewable energy resource. | 15 | | "Renewable energy resources" includes energy and its | 16 | | associated renewable energy credit or renewable energy credits | 17 | | from wind, solar thermal energy, photovoltaic cells and panels, | 18 | | biodiesel, crops and untreated and unadulterated organic waste | 19 | | biomass, tree waste, hydropower that does not involve new | 20 | | construction or significant expansion of hydropower dams, and | 21 | | other alternative sources of environmentally preferable | 22 | | energy. For purposes of this Act, landfill gas produced in the | 23 | | State is considered a renewable energy resource. "Renewable | 24 | | energy resources" does not include the incineration or burning | 25 | | of tires, garbage, general household, institutional, and | 26 | | commercial waste, industrial lunchroom or office waste, |
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| 1 | | landscape waste other than tree waste, railroad crossties, | 2 | | utility poles, or construction or demolition debris, other than | 3 | | untreated and unadulterated waste wood. | 4 | | "Revenue bond" means any bond, note, or other evidence of | 5 | | indebtedness issued by the Authority, the principal and | 6 | | interest of which is payable solely from revenues or income | 7 | | derived from any project or activity of the Agency. | 8 | | "Sequester" means permanent storage of carbon dioxide by | 9 | | injecting it into a saline aquifer, a depleted gas reservoir, | 10 | | or an oil reservoir, directly or through an enhanced oil | 11 | | recovery process that may involve intermediate storage in a | 12 | | salt dome. | 13 | | "Servicing agreement" means (i) in the case of an electric | 14 | | utility, an agreement between the owner of a clean coal | 15 | | facility and such electric utility, which agreement shall have | 16 | | terms and conditions meeting the requirements of paragraph (3) | 17 | | of subsection (d) of Section 1-75, and (ii) in the case of an | 18 | | alternative retail electric supplier, an agreement between the | 19 | | owner of a clean coal facility and such alternative retail | 20 | | electric supplier, which agreement shall have terms and | 21 | | conditions meeting the requirements of Section 16-115(d)(5) of | 22 | | the Public Utilities Act. | 23 | | "Substitute natural gas" or "SNG" means a gas manufactured | 24 | | by gasification of hydrocarbon feedstock, which is | 25 | | substantially interchangeable in use and distribution with | 26 | | conventional natural gas. |
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| 1 | | "Total resource cost test" or "TRC test" means a standard | 2 | | that is met if, for an investment in energy efficiency or | 3 | | demand-response measures, the benefit-cost ratio is greater | 4 | | than one. The benefit-cost ratio is the ratio of the net | 5 | | present value of the total benefits of the program to the net | 6 | | present value of the total costs as calculated over the | 7 | | lifetime of the measures. A total resource cost test compares | 8 | | the sum of avoided electric utility costs, representing the | 9 | | benefits that accrue to the system and the participant in the | 10 | | delivery of those efficiency measures, as well as other | 11 | | quantifiable societal benefits, including avoided natural gas | 12 | | utility costs, to the sum of all incremental costs of end-use | 13 | | measures that are implemented due to the program (including | 14 | | both utility and participant contributions), plus costs to | 15 | | administer, deliver, and evaluate each demand-side program, to | 16 | | quantify the net savings obtained by substituting the | 17 | | demand-side program for supply resources. In calculating | 18 | | avoided costs of power and energy that an electric utility | 19 | | would otherwise have had to acquire, reasonable estimates shall | 20 | | be included of financial costs likely to be imposed by future | 21 | | regulations and legislation on emissions of greenhouse gases.
| 22 | | (Source: P.A. 95-481, eff. 8-28-07; 95-913, eff. 1-1-09; | 23 | | 95-1027, eff. 6-1-09; 96-33, eff. 7-10-09; 96-159, eff. | 24 | | 8-10-09; 96-784, eff. 8-28-09; 96-1000, eff. 7-2-10.)
| 25 | | (20 ILCS 3855/1-56) |
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| 1 | | Sec. 1-56. Illinois Power Agency Renewable Energy | 2 | | Resources Fund. | 3 | | (a) The Illinois Power Agency Renewable Energy Resources | 4 | | Fund is created as a special fund in the State treasury. | 5 | | (b) The Illinois Power Agency Renewable Energy Resources | 6 | | Fund shall be administered by the Agency to procure renewable | 7 | | energy resources. Prior to June 1, 2011, resources procured | 8 | | pursuant to this Section shall be procured from facilities | 9 | | located in Illinois, provided the resources are available from | 10 | | those facilities. If resources are not available in Illinois, | 11 | | then they shall be procured in states that adjoin Illinois. If | 12 | | resources are not available in Illinois or in states that | 13 | | adjoin Illinois, then they may be purchased elsewhere. | 14 | | Beginning June 1, 2011, resources procured pursuant to this | 15 | | Section shall be procured from facilities located in Illinois | 16 | | or states that adjoin Illinois. If resources are not available | 17 | | in Illinois or in states that adjoin Illinois, then they may be | 18 | | procured elsewhere. To the extent available, at least 75% of | 19 | | these renewable energy resources shall come from wind | 20 | | generation. Of the renewable energy resources procured | 21 | | pursuant to this Section at least the following specified | 22 | | percentages shall come from photovoltaics on the following | 23 | | schedule: 0.5% by June 1, 2012; 1.5% by June 1, 2013; 3% by | 24 | | June 1, 2014; and 6% by June 1, 2015 and thereafter. Of the | 25 | | renewable energy resources procured pursuant to this Section at | 26 | | least the following percentages shall come from distributed |
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| 1 | | renewable energy generation devices: 0.5% by June 1, 2013, | 2 | | 0.75% by June 1, 2014, and 1% by June 1, 2015 and thereafter. | 3 | | To the extent available, half of the renewable energy resources | 4 | | procured from distributed renewable energy generation shall | 5 | | come from devices of less than 25 kilowatts in nameplate | 6 | | capacity. Renewable energy resources procured from distributed | 7 | | generation devices may also count towards the required | 8 | | percentages for wind and solar photovoltaics. Procurement of | 9 | | renewable energy resources from distributed renewable energy | 10 | | generation devices shall be done on an annual basis through | 11 | | multi-year contracts of no less than 5 years. | 12 | | The Agency shall create credit requirements for suppliers | 13 | | of distributed renewable energy. In order to minimize the | 14 | | administrative burden on contracting entities, the Agency | 15 | | shall solicit the use of third-party organizations to aggregate | 16 | | distributed renewable energy into groups of no less than one | 17 | | megawatt in installed capacity. These third-party | 18 | | organizations shall administer contracts with individual | 19 | | distributed renewable energy generation device owners. An | 20 | | individual distributed renewable energy generation device | 21 | | owner shall have the ability to measure the output of his or | 22 | | her distributed renewable energy generation device. | 23 | | (c) The Agency shall procure renewable energy resources at | 24 | | least once each year in conjunction with a procurement event | 25 | | for electric utilities required to comply with Section 1-75 of | 26 | | the Act and shall, whenever possible, enter into long-term |
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| 1 | | contracts on an annual basis for a portion of the incremental | 2 | | requirement for the given procurement year . | 3 | | (d) The price paid to procure renewable energy credits | 4 | | using monies from the Illinois Power Agency Renewable Energy | 5 | | Resources Fund shall not exceed the winning bid prices paid for | 6 | | like resources procured for electric utilities required to | 7 | | comply with Section 1-75 of this Act. | 8 | | (e) All renewable energy credits procured using monies from | 9 | | the Illinois Power Agency Renewable Energy Resources Fund shall | 10 | | be permanently retired. | 11 | | (f) The procurement process described in this Section is | 12 | | exempt from the requirements of the Illinois Procurement Code, | 13 | | pursuant to Section 20-10 of that Code. | 14 | | (g) All disbursements from the Illinois Power Agency | 15 | | Renewable Energy Resources Fund shall be made only upon | 16 | | warrants of the Comptroller drawn upon the Treasurer as | 17 | | custodian of the Fund upon vouchers signed by the Director or | 18 | | by the person or persons designated by the Director for that | 19 | | purpose. The Comptroller is authorized to draw the warrant upon | 20 | | vouchers so signed. The Treasurer shall accept all warrants so | 21 | | signed and shall be released from liability for all payments | 22 | | made on those warrants. | 23 | | (h) The Illinois Power Agency Renewable Energy Resources | 24 | | Fund shall not be subject to sweeps, administrative charges, or | 25 | | chargebacks, including, but not limited to, those authorized | 26 | | under Section 8h of the State Finance Act, that would in any |
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| 1 | | way result in the transfer of any funds from this Fund to any | 2 | | other fund of this State or in having any such funds utilized | 3 | | for any purpose other than the express purposes set forth in | 4 | | this Section.
| 5 | | (Source: P.A. 96-159, eff. 8-10-09; 96-1000, eff. 7-2-10; | 6 | | 96-1437, eff. 8-17-10.) | 7 | | (20 ILCS 3855/1-75) | 8 | | Sec. 1-75. Planning and Procurement Bureau. The Planning | 9 | | and Procurement Bureau has the following duties and | 10 | | responsibilities: | 11 | | (a) The Planning and Procurement Bureau shall each | 12 | | year, beginning in 2008, develop procurement plans and | 13 | | conduct competitive procurement processes in accordance | 14 | | with the requirements of Section 16-111.5 of the Public | 15 | | Utilities Act for the eligible retail customers of electric | 16 | | utilities that on December 31, 2005 provided electric | 17 | | service to at least 100,000 customers in Illinois. For the | 18 | | purposes of this Section, the term "eligible retail | 19 | | customers" has the same definition as found in Section | 20 | | 16-111.5(a) of the Public Utilities Act. | 21 | | (1) The Agency shall each year, beginning in 2008, | 22 | | as needed, issue a request for qualifications for | 23 | | experts or expert consulting firms to develop the | 24 | | procurement plans in accordance with Section 16-111.5 | 25 | | of the Public Utilities Act. In order to qualify an |
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| 1 | | expert or expert consulting firm must have: | 2 | | (A) direct previous experience assembling | 3 | | large-scale power supply plans or portfolios for | 4 | | end-use customers; | 5 | | (B) an advanced degree in economics, | 6 | | mathematics, engineering, risk management, or a | 7 | | related area of study; | 8 | | (C) 10 years of experience in the electricity | 9 | | sector, including managing supply risk; | 10 | | (D) expertise in wholesale electricity market | 11 | | rules, including those established by the Federal | 12 | | Energy Regulatory Commission and regional | 13 | | transmission organizations; | 14 | | (E) expertise in credit protocols and | 15 | | familiarity with contract protocols; | 16 | | (F) adequate resources to perform and fulfill | 17 | | the required functions and responsibilities; and | 18 | | (G) the absence of a conflict of interest and | 19 | | inappropriate bias for or against potential | 20 | | bidders or the affected electric utilities. | 21 | | (2) The Agency shall each year, as needed, issue a | 22 | | request for qualifications for a procurement | 23 | | administrator to conduct the competitive procurement | 24 | | processes in accordance with Section 16-111.5 of the | 25 | | Public Utilities Act. In order to qualify an expert or | 26 | | expert consulting firm must have: |
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| 1 | | (A) direct previous experience administering a | 2 | | large-scale competitive procurement process; | 3 | | (B) an advanced degree in economics, | 4 | | mathematics, engineering, or a related area of | 5 | | study; | 6 | | (C) 10 years of experience in the electricity | 7 | | sector, including risk management experience; | 8 | | (D) expertise in wholesale electricity market | 9 | | rules, including those established by the Federal | 10 | | Energy Regulatory Commission and regional | 11 | | transmission organizations; | 12 | | (E) expertise in credit and contract | 13 | | protocols; | 14 | | (F) adequate resources to perform and fulfill | 15 | | the required functions and responsibilities; and | 16 | | (G) the absence of a conflict of interest and | 17 | | inappropriate bias for or against potential | 18 | | bidders or the affected electric utilities. | 19 | | (3) The Agency shall provide affected utilities | 20 | | and other interested parties with the lists of | 21 | | qualified experts or expert consulting firms | 22 | | identified through the request for qualifications | 23 | | processes that are under consideration to develop the | 24 | | procurement plans and to serve as the procurement | 25 | | administrator. The Agency shall also provide each | 26 | | qualified expert's or expert consulting firm's |
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| 1 | | response to the request for qualifications. All | 2 | | information provided under this subparagraph shall | 3 | | also be provided to the Commission. The Agency may | 4 | | provide by rule for fees associated with supplying the | 5 | | information to utilities and other interested parties. | 6 | | These parties shall, within 5 business days, notify the | 7 | | Agency in writing if they object to any experts or | 8 | | expert consulting firms on the lists. Objections shall | 9 | | be based on: | 10 | | (A) failure to satisfy qualification criteria; | 11 | | (B) identification of a conflict of interest; | 12 | | or | 13 | | (C) evidence of inappropriate bias for or | 14 | | against potential bidders or the affected | 15 | | utilities. | 16 | | The Agency shall remove experts or expert | 17 | | consulting firms from the lists within 10 days if there | 18 | | is a reasonable basis for an objection and provide the | 19 | | updated lists to the affected utilities and other | 20 | | interested parties. If the Agency fails to remove an | 21 | | expert or expert consulting firm from a list, an | 22 | | objecting party may seek review by the Commission | 23 | | within 5 days thereafter by filing a petition, and the | 24 | | Commission shall render a ruling on the petition within | 25 | | 10 days. There is no right of appeal of the | 26 | | Commission's ruling. |
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| 1 | | (4) The Agency shall issue requests for proposals | 2 | | to the qualified experts or expert consulting firms to | 3 | | develop a procurement plan for the affected utilities | 4 | | and to serve as procurement administrator. | 5 | | (5) The Agency shall select an expert or expert | 6 | | consulting firm to develop procurement plans based on | 7 | | the proposals submitted and shall award one-year | 8 | | contracts to those selected with an option for the | 9 | | Agency for a one-year renewal. | 10 | | (6) The Agency shall select an expert or expert | 11 | | consulting firm, with approval of the Commission, to | 12 | | serve as procurement administrator based on the | 13 | | proposals submitted. If the Commission rejects, within | 14 | | 5 days, the Agency's selection, the Agency shall submit | 15 | | another recommendation within 3 days based on the | 16 | | proposals submitted. The Agency shall award a one-year | 17 | | contract to the expert or expert consulting firm so | 18 | | selected with Commission approval with an option for | 19 | | the Agency for a one-year renewal. | 20 | | (b) The experts or expert consulting firms retained by | 21 | | the Agency shall, as appropriate, prepare procurement | 22 | | plans, and conduct a competitive procurement process as | 23 | | prescribed in Section 16-111.5 of the Public Utilities Act, | 24 | | to ensure adequate, reliable, affordable, efficient, and | 25 | | environmentally sustainable electric service at the lowest | 26 | | total cost over time, taking into account any benefits of |
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| 1 | | price stability, for eligible retail customers of electric | 2 | | utilities that on December 31, 2005 provided electric | 3 | | service to at least 100,000 customers in the State of | 4 | | Illinois. | 5 | | (c) Renewable portfolio standard. | 6 | | (1) The procurement plans shall include | 7 | | cost-effective renewable energy resources. A minimum | 8 | | percentage of each utility's total supply to serve the | 9 | | load of eligible retail customers, as defined in | 10 | | Section 16-111.5(a) of the Public Utilities Act, | 11 | | procured for each of the following years shall be | 12 | | generated from cost-effective renewable energy | 13 | | resources: at least 2% by June 1, 2008; at least 4% by | 14 | | June 1, 2009; at least 5% by June 1, 2010; at least 6% | 15 | | by June 1, 2011; at least 7% by June 1, 2012; at least | 16 | | 8% by June 1, 2013; at least 9% by June 1, 2014; at | 17 | | least 10% by June 1, 2015; and increasing by at least | 18 | | 1.5% each year thereafter to at least 25% by June 1, | 19 | | 2025. To the extent that it is available, at least 75% | 20 | | of the renewable energy resources used to meet these | 21 | | standards shall come from wind generation and, | 22 | | beginning on June 1, 2011, at least the following | 23 | | percentages of the renewable energy resources used to | 24 | | meet these standards shall come from photovoltaics on | 25 | | the following schedule: 0.5% by June 1, 2012, 1.5% by | 26 | | June 1, 2013; 3% by June 1, 2014; and 6% by June 1, |
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| 1 | | 2015 and thereafter. Of the renewable energy resources | 2 | | procured pursuant to this Section at least the | 3 | | following percentages shall come from distributed | 4 | | renewable energy generation devices: 0.5% by June 1, | 5 | | 2013, 0.75% by June 1, 2014, and 1% by June 1, 2015 and | 6 | | thereafter. To the extent available, half of the | 7 | | renewable energy resources procured from distributed | 8 | | renewable energy generation shall come from devices of | 9 | | less than 25 kilowatts in nameplate capacity. | 10 | | Renewable energy resources procured from distributed | 11 | | generation devices may also count towards the required | 12 | | percentages for wind and solar photovoltaics. | 13 | | Procurement of renewable energy resources from | 14 | | distributed renewable energy generation devices shall | 15 | | be done on an annual basis through multi-year contracts | 16 | | of no less than 5 years. | 17 | | The Agency shall create credit requirements for | 18 | | suppliers of distributed renewable energy. In order to | 19 | | minimize the administrative burden on contracting | 20 | | entities, the Agency shall solicit the use of | 21 | | third-party organizations to aggregate distributed | 22 | | renewable energy into groups of no less than one | 23 | | megawatt in installed capacity. These third-party | 24 | | organizations shall administer contracts with | 25 | | individual distributed renewable energy generation | 26 | | device owners. An individual distributed renewable |
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| 1 | | energy generation device owner shall have the ability | 2 | | to measure the output of his or her distributed | 3 | | renewable energy generation device. For purposes of | 4 | | this subsection (c), "cost-effective" means that the | 5 | | costs of procuring renewable energy resources do not | 6 | | cause the limit stated in paragraph (2) of this | 7 | | subsection (c) to be exceeded and do not exceed | 8 | | benchmarks based on market prices for renewable energy | 9 | | resources in the region, which shall be developed by | 10 | | the procurement administrator, in consultation with | 11 | | the Commission staff, Agency staff, and the | 12 | | procurement monitor and shall be subject to Commission | 13 | | review and approval. | 14 | | (2) For purposes of this subsection (c), the | 15 | | required procurement of cost-effective renewable | 16 | | energy resources for a particular year shall be | 17 | | measured as a percentage of the actual amount of | 18 | | electricity (megawatt-hours) supplied by the electric | 19 | | utility to eligible retail customers in the planning | 20 | | year ending immediately prior to the procurement. For | 21 | | purposes of this subsection (c), the amount paid per | 22 | | kilowatthour means the total amount paid for electric | 23 | | service expressed on a per kilowatthour basis. For | 24 | | purposes of this subsection (c), the total amount paid | 25 | | for electric service includes without limitation | 26 | | amounts paid for supply, transmission, distribution, |
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| 1 | | surcharges, and add-on taxes. | 2 | | Notwithstanding the requirements of this | 3 | | subsection (c), the total of renewable energy | 4 | | resources procured pursuant to the procurement plan | 5 | | for any single year shall be reduced by an amount | 6 | | necessary to limit the annual estimated average net | 7 | | increase due to the costs of these resources included | 8 | | in the amounts paid by eligible retail customers in | 9 | | connection with electric service to: | 10 | | (A) in 2008, no more than 0.5% of the amount | 11 | | paid per kilowatthour by those customers during | 12 | | the year ending May 31, 2007; | 13 | | (B) in 2009, the greater of an additional 0.5% | 14 | | of the amount paid per kilowatthour by those | 15 | | customers during the year ending May 31, 2008 or 1% | 16 | | of the amount paid per kilowatthour by those | 17 | | customers during the year ending May 31, 2007; | 18 | | (C) in 2010, the greater of an additional 0.5% | 19 | | of the amount paid per kilowatthour by those | 20 | | customers during the year ending May 31, 2009 or | 21 | | 1.5% of the amount paid per kilowatthour by those | 22 | | customers during the year ending May 31, 2007; | 23 | | (D) in 2011, the greater of an additional 0.5% | 24 | | of the amount paid per kilowatthour by those | 25 | | customers during the year ending May 31, 2010 or 2% | 26 | | of the amount paid per kilowatthour by those |
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| 1 | | customers during the year ending May 31, 2007; and | 2 | | (E) thereafter, the amount of renewable energy | 3 | | resources procured pursuant to the procurement | 4 | | plan for any single year shall be reduced by an | 5 | | amount necessary to limit the estimated average | 6 | | net increase due to the cost of these resources | 7 | | included in the amounts paid by eligible retail | 8 | | customers in connection with electric service to | 9 | | no more than the greater of 2.015% of the amount | 10 | | paid per kilowatthour by those customers during | 11 | | the year ending May 31, 2007 or the incremental | 12 | | amount per kilowatthour paid for these resources | 13 | | in 2011. | 14 | | No later than June 30, 2011, the Commission shall | 15 | | review the limitation on the amount of renewable energy | 16 | | resources procured pursuant to this subsection (c) and | 17 | | report to the General Assembly its findings as to | 18 | | whether that limitation unduly constrains the | 19 | | procurement of cost-effective renewable energy | 20 | | resources. | 21 | | (3) Through June 1, 2011, renewable energy | 22 | | resources shall be counted for the purpose of meeting | 23 | | the renewable energy standards set forth in paragraph | 24 | | (1) of this subsection (c) only if they are generated | 25 | | from facilities located in the State, provided that | 26 | | cost-effective renewable energy resources are |
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| 1 | | available from those facilities. If those | 2 | | cost-effective resources are not available in | 3 | | Illinois, they shall be procured in states that adjoin | 4 | | Illinois and may be counted towards compliance. If | 5 | | those cost-effective resources are not available in | 6 | | Illinois or in states that adjoin Illinois, they shall | 7 | | be purchased elsewhere and shall be counted towards | 8 | | compliance. After June 1, 2011, cost-effective | 9 | | renewable energy resources located in Illinois and in | 10 | | states that adjoin Illinois may be counted towards | 11 | | compliance with the standards set forth in paragraph | 12 | | (1) of this subsection (c). If those cost-effective | 13 | | resources are not available in Illinois or in states | 14 | | that adjoin Illinois, they shall be purchased | 15 | | elsewhere and shall be counted towards compliance. | 16 | | (4) The electric utility shall retire all | 17 | | renewable energy credits used to comply with the | 18 | | standard. | 19 | | (5) Beginning with the year commencing June 1, | 20 | | 2010, an electric utility subject to this subsection | 21 | | (c) shall apply the lesser of the maximum alternative | 22 | | compliance payment rate or the most recent estimated | 23 | | alternative compliance payment rate for its service | 24 | | territory for the corresponding compliance period, | 25 | | established pursuant to subsection (d) of Section | 26 | | 16-115D of the Public Utilities Act to its retail |
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| 1 | | customers that take service pursuant to the electric | 2 | | utility's hourly pricing tariff or tariffs. The | 3 | | electric utility shall retain all amounts collected as | 4 | | a result of the application of the alternative | 5 | | compliance payment rate or rates to such customers, | 6 | | and, beginning in 2011, the utility shall include in | 7 | | the information provided under item (1) of subsection | 8 | | (d) of Section 16-111.5 of the Public Utilities Act the | 9 | | amounts collected under the alternative compliance | 10 | | payment rate or rates for the prior year ending May 31. | 11 | | Notwithstanding any limitation on the procurement of | 12 | | renewable energy resources imposed by item (2) of this | 13 | | subsection (c), the Agency shall increase its spending | 14 | | on the purchase of renewable energy resources to be | 15 | | procured by the electric utility for the next plan year | 16 | | by an amount equal to the amounts collected by the | 17 | | utility under the alternative compliance payment rate | 18 | | or rates in the prior year ending May 31. | 19 | | (d) Clean coal portfolio standard. | 20 | | (1) The procurement plans shall include electricity | 21 | | generated using clean coal. Each utility shall enter into | 22 | | one or more sourcing agreements with the initial clean coal | 23 | | facility, as provided in paragraph (3) of this subsection | 24 | | (d), covering electricity generated by the initial clean | 25 | | coal facility representing at least 5% of each utility's | 26 | | total supply to serve the load of eligible retail customers |
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| 1 | | in 2015 and each year thereafter, as described in paragraph | 2 | | (3) of this subsection (d), subject to the limits specified | 3 | | in paragraph (2) of this subsection (d). It is the goal of | 4 | | the State that by January 1, 2025, 25% of the electricity | 5 | | used in the State shall be generated by cost-effective | 6 | | clean coal facilities. For purposes of this subsection (d), | 7 | | "cost-effective" means that the expenditures pursuant to | 8 | | such sourcing agreements do not cause the limit stated in | 9 | | paragraph (2) of this subsection (d) to be exceeded and do | 10 | | not exceed cost-based benchmarks, which shall be developed | 11 | | to assess all expenditures pursuant to such sourcing | 12 | | agreements covering electricity generated by clean coal | 13 | | facilities, other than the initial clean coal facility, by | 14 | | the procurement administrator, in consultation with the | 15 | | Commission staff, Agency staff, and the procurement | 16 | | monitor and shall be subject to Commission review and | 17 | | approval. | 18 | | (A) A utility party to a sourcing agreement shall | 19 | | immediately retire any emission credits that it | 20 | | receives in connection with the electricity covered by | 21 | | such agreement. | 22 | | (B) Utilities shall maintain adequate records | 23 | | documenting the purchases under the sourcing agreement | 24 | | to comply with this subsection (d) and shall file an | 25 | | accounting with the load forecast that must be filed | 26 | | with the Agency by July 15 of each year, in accordance |
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| 1 | | with subsection (d) of Section 16-111.5 of the Public | 2 | | Utilities Act. | 3 | | (C) A utility shall be deemed to have complied with | 4 | | the clean coal portfolio standard specified in this | 5 | | subsection (d) if the utility enters into a sourcing | 6 | | agreement as required by this subsection (d). | 7 | | (2) For purposes of this subsection (d), the required | 8 | | execution of sourcing agreements with the initial clean | 9 | | coal facility for a particular year shall be measured as a | 10 | | percentage of the actual amount of electricity | 11 | | (megawatt-hours) supplied by the electric utility to | 12 | | eligible retail customers in the planning year ending | 13 | | immediately prior to the agreement's execution. For | 14 | | purposes of this subsection (d), the amount paid per | 15 | | kilowatthour means the total amount paid for electric | 16 | | service expressed on a per kilowatthour basis. For purposes | 17 | | of this subsection (d), the total amount paid for electric | 18 | | service includes without limitation amounts paid for | 19 | | supply, transmission, distribution, surcharges and add-on | 20 | | taxes. | 21 | | Notwithstanding the requirements of this subsection | 22 | | (d), the total amount paid under sourcing agreements with | 23 | | clean coal facilities pursuant to the procurement plan for | 24 | | any given year shall be reduced by an amount necessary to | 25 | | limit the annual estimated average net increase due to the | 26 | | costs of these resources included in the amounts paid by |
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| 1 | | eligible retail customers in connection with electric | 2 | | service to: | 3 | | (A) in 2010, no more than 0.5% of the amount | 4 | | paid per kilowatthour by those customers during | 5 | | the year ending May 31, 2009; | 6 | | (B) in 2011, the greater of an additional 0.5% | 7 | | of the amount paid per kilowatthour by those | 8 | | customers during the year ending May 31, 2010 or 1% | 9 | | of the amount paid per kilowatthour by those | 10 | | customers during the year ending May 31, 2009; | 11 | | (C) in 2012, the greater of an additional 0.5% | 12 | | of the amount paid per kilowatthour by those | 13 | | customers during the year ending May 31, 2011 or | 14 | | 1.5% of the amount paid per kilowatthour by those | 15 | | customers during the year ending May 31, 2009; | 16 | | (D) in 2013, the greater of an additional 0.5% | 17 | | of the amount paid per kilowatthour by those | 18 | | customers during the year ending May 31, 2012 or 2% | 19 | | of the amount paid per kilowatthour by those | 20 | | customers during the year ending May 31, 2009; and | 21 | | (E) thereafter, the total amount paid under | 22 | | sourcing agreements with clean coal facilities | 23 | | pursuant to the procurement plan for any single | 24 | | year shall be reduced by an amount necessary to | 25 | | limit the estimated average net increase due to the | 26 | | cost of these resources included in the amounts |
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| 1 | | paid by eligible retail customers in connection | 2 | | with electric service to no more than the greater | 3 | | of (i) 2.015% of the amount paid per kilowatthour | 4 | | by those customers during the year ending May 31, | 5 | | 2009 or (ii) the incremental amount per | 6 | | kilowatthour paid for these resources in 2013. | 7 | | These requirements may be altered only as provided | 8 | | by statute.
No later than June 30, 2015, the | 9 | | Commission shall review the limitation on the | 10 | | total amount paid under sourcing agreements, if | 11 | | any, with clean coal facilities pursuant to this | 12 | | subsection (d) and report to the General Assembly | 13 | | its findings as to whether that limitation unduly | 14 | | constrains the amount of electricity generated by | 15 | | cost-effective clean coal facilities that is | 16 | | covered by sourcing agreements. | 17 | | (3) Initial clean coal facility. In order to promote | 18 | | development of clean coal facilities in Illinois, each | 19 | | electric utility subject to this Section shall execute a | 20 | | sourcing agreement to source electricity from a proposed | 21 | | clean coal facility in Illinois (the "initial clean coal | 22 | | facility") that will have a nameplate capacity of at least | 23 | | 500 MW when commercial operation commences, that has a | 24 | | final Clean Air Act permit on the effective date of this | 25 | | amendatory Act of the 95th General Assembly, and that will | 26 | | meet the definition of clean coal facility in Section 1-10 |
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| 1 | | of this Act when commercial operation commences. The | 2 | | sourcing agreements with this initial clean coal facility | 3 | | shall be subject to both approval of the initial clean coal | 4 | | facility by the General Assembly and satisfaction of the | 5 | | requirements of paragraph (4) of this subsection (d) and | 6 | | shall be executed within 90 days after any such approval by | 7 | | the General Assembly. The Agency and the Commission shall | 8 | | have authority to inspect all books and records associated | 9 | | with the initial clean coal facility during the term of | 10 | | such a sourcing agreement. A utility's sourcing agreement | 11 | | for electricity produced by the initial clean coal facility | 12 | | shall include: | 13 | | (A) a formula contractual price (the "contract | 14 | | price") approved pursuant to paragraph (4) of this | 15 | | subsection (d), which shall: | 16 | | (i) be determined using a cost of service | 17 | | methodology employing either a level or deferred | 18 | | capital recovery component, based on a capital | 19 | | structure consisting of 45% equity and 55% debt, | 20 | | and a return on equity as may be approved by the | 21 | | Federal Energy Regulatory Commission, which in any | 22 | | case may not exceed the lower of 11.5% or the rate | 23 | | of return approved by the General Assembly | 24 | | pursuant to paragraph (4) of this subsection (d); | 25 | | and | 26 | | (ii) provide that all miscellaneous net |
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| 1 | | revenue, including but not limited to net revenue | 2 | | from the sale of emission allowances, if any, | 3 | | substitute natural gas, if any, grants or other | 4 | | support provided by the State of Illinois or the | 5 | | United States Government, firm transmission | 6 | | rights, if any, by-products produced by the | 7 | | facility, energy or capacity derived from the | 8 | | facility and not covered by a sourcing agreement | 9 | | pursuant to paragraph (3) of this subsection (d) or | 10 | | item (5) of subsection (d) of Section 16-115 of the | 11 | | Public Utilities Act, whether generated from the | 12 | | synthesis gas derived from coal, from SNG, or from | 13 | | natural gas, shall be credited against the revenue | 14 | | requirement for this initial clean coal facility; | 15 | | (B) power purchase provisions, which shall: | 16 | | (i) provide that the utility party to such | 17 | | sourcing agreement shall pay the contract price | 18 | | for electricity delivered under such sourcing | 19 | | agreement; | 20 | | (ii) require delivery of electricity to the | 21 | | regional transmission organization market of the | 22 | | utility that is party to such sourcing agreement; | 23 | | (iii) require the utility party to such | 24 | | sourcing agreement to buy from the initial clean | 25 | | coal facility in each hour an amount of energy | 26 | | equal to all clean coal energy made available from |
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| 1 | | the initial clean coal facility during such hour | 2 | | times a fraction, the numerator of which is such | 3 | | utility's retail market sales of electricity | 4 | | (expressed in kilowatthours sold) in the State | 5 | | during the prior calendar month and the | 6 | | denominator of which is the total retail market | 7 | | sales of electricity (expressed in kilowatthours | 8 | | sold) in the State by utilities during such prior | 9 | | month and the sales of electricity (expressed in | 10 | | kilowatthours sold) in the State by alternative | 11 | | retail electric suppliers during such prior month | 12 | | that are subject to the requirements of this | 13 | | subsection (d) and paragraph (5) of subsection (d) | 14 | | of Section 16-115 of the Public Utilities Act, | 15 | | provided that the amount purchased by the utility | 16 | | in any year will be limited by paragraph (2) of | 17 | | this subsection (d); and | 18 | | (iv) be considered pre-existing contracts in | 19 | | such utility's procurement plans for eligible | 20 | | retail customers; | 21 | | (C) contract for differences provisions, which | 22 | | shall: | 23 | | (i) require the utility party to such sourcing | 24 | | agreement to contract with the initial clean coal | 25 | | facility in each hour with respect to an amount of | 26 | | energy equal to all clean coal energy made |
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| 1 | | available from the initial clean coal facility | 2 | | during such hour times a fraction, the numerator of | 3 | | which is such utility's retail market sales of | 4 | | electricity (expressed in kilowatthours sold) in | 5 | | the utility's service territory in the State | 6 | | during the prior calendar month and the | 7 | | denominator of which is the total retail market | 8 | | sales of electricity (expressed in kilowatthours | 9 | | sold) in the State by utilities during such prior | 10 | | month and the sales of electricity (expressed in | 11 | | kilowatthours sold) in the State by alternative | 12 | | retail electric suppliers during such prior month | 13 | | that are subject to the requirements of this | 14 | | subsection (d) and paragraph (5) of subsection (d) | 15 | | of Section 16-115 of the Public Utilities Act, | 16 | | provided that the amount paid by the utility in any | 17 | | year will be limited by paragraph (2) of this | 18 | | subsection (d); | 19 | | (ii) provide that the utility's payment | 20 | | obligation in respect of the quantity of | 21 | | electricity determined pursuant to the preceding | 22 | | clause (i) shall be limited to an amount equal to | 23 | | (1) the difference between the contract price | 24 | | determined pursuant to subparagraph (A) of | 25 | | paragraph (3) of this subsection (d) and the | 26 | | day-ahead price for electricity delivered to the |
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| 1 | | regional transmission organization market of the | 2 | | utility that is party to such sourcing agreement | 3 | | (or any successor delivery point at which such | 4 | | utility's supply obligations are financially | 5 | | settled on an hourly basis) (the "reference | 6 | | price") on the day preceding the day on which the | 7 | | electricity is delivered to the initial clean coal | 8 | | facility busbar, multiplied by (2) the quantity of | 9 | | electricity determined pursuant to the preceding | 10 | | clause (i); and | 11 | | (iii) not require the utility to take physical | 12 | | delivery of the electricity produced by the | 13 | | facility; | 14 | | (D) general provisions, which shall: | 15 | | (i) specify a term of no more than 30 years, | 16 | | commencing on the commercial operation date of the | 17 | | facility; | 18 | | (ii) provide that utilities shall maintain | 19 | | adequate records documenting purchases under the | 20 | | sourcing agreements entered into to comply with | 21 | | this subsection (d) and shall file an accounting | 22 | | with the load forecast that must be filed with the | 23 | | Agency by July 15 of each year, in accordance with | 24 | | subsection (d) of Section 16-111.5 of the Public | 25 | | Utilities Act. | 26 | | (iii) provide that all costs associated with |
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| 1 | | the initial clean coal facility will be | 2 | | periodically reported to the Federal Energy | 3 | | Regulatory Commission and to purchasers in | 4 | | accordance with applicable laws governing | 5 | | cost-based wholesale power contracts; | 6 | | (iv) permit the Illinois Power Agency to | 7 | | assume ownership of the initial clean coal | 8 | | facility, without monetary consideration and | 9 | | otherwise on reasonable terms acceptable to the | 10 | | Agency, if the Agency so requests no less than 3 | 11 | | years prior to the end of the stated contract term; | 12 | | (v) require the owner of the initial clean coal | 13 | | facility to provide documentation to the | 14 | | Commission each year, starting in the facility's | 15 | | first year of commercial operation, accurately | 16 | | reporting the quantity of carbon emissions from | 17 | | the facility that have been captured and | 18 | | sequestered and report any quantities of carbon | 19 | | released from the site or sites at which carbon | 20 | | emissions were sequestered in prior years, based | 21 | | on continuous monitoring of such sites. If, in any | 22 | | year after the first year of commercial operation, | 23 | | the owner of the facility fails to demonstrate that | 24 | | the initial clean coal facility captured and | 25 | | sequestered at least 50% of the total carbon | 26 | | emissions that the facility would otherwise emit |
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| 1 | | or that sequestration of emissions from prior | 2 | | years has failed, resulting in the release of | 3 | | carbon dioxide into the atmosphere, the owner of | 4 | | the facility must offset excess emissions. Any | 5 | | such carbon offsets must be permanent, additional, | 6 | | verifiable, real, located within the State of | 7 | | Illinois, and legally and practicably enforceable. | 8 | | The cost of such offsets for the facility that are | 9 | | not recoverable shall not exceed $15 million in any | 10 | | given year. No costs of any such purchases of | 11 | | carbon offsets may be recovered from a utility or | 12 | | its customers. All carbon offsets purchased for | 13 | | this purpose and any carbon emission credits | 14 | | associated with sequestration of carbon from the | 15 | | facility must be permanently retired. The initial | 16 | | clean coal facility shall not forfeit its | 17 | | designation as a clean coal facility if the | 18 | | facility fails to fully comply with the applicable | 19 | | carbon sequestration requirements in any given | 20 | | year, provided the requisite offsets are | 21 | | purchased. However, the Attorney General, on | 22 | | behalf of the People of the State of Illinois, may | 23 | | specifically enforce the facility's sequestration | 24 | | requirement and the other terms of this contract | 25 | | provision. Compliance with the sequestration | 26 | | requirements and offset purchase requirements |
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| 1 | | specified in paragraph (3) of this subsection (d) | 2 | | shall be reviewed annually by an independent | 3 | | expert retained by the owner of the initial clean | 4 | | coal facility, with the advance written approval | 5 | | of the Attorney General. The Commission may, in the | 6 | | course of the review specified in item (vii), | 7 | | reduce the allowable return on equity for the | 8 | | facility if the facility wilfully fails to comply | 9 | | with the carbon capture and sequestration | 10 | | requirements set forth in this item (v); | 11 | | (vi) include limits on, and accordingly | 12 | | provide for modification of, the amount the | 13 | | utility is required to source under the sourcing | 14 | | agreement consistent with paragraph (2) of this | 15 | | subsection (d); | 16 | | (vii) require Commission review: (1) to | 17 | | determine the justness, reasonableness, and | 18 | | prudence of the inputs to the formula referenced in | 19 | | subparagraphs (A)(i) through (A)(iii) of paragraph | 20 | | (3) of this subsection (d), prior to an adjustment | 21 | | in those inputs including, without limitation, the | 22 | | capital structure and return on equity, fuel | 23 | | costs, and other operations and maintenance costs | 24 | | and (2) to approve the costs to be passed through | 25 | | to customers under the sourcing agreement by which | 26 | | the utility satisfies its statutory obligations. |
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| 1 | | Commission review shall occur no less than every 3 | 2 | | years, regardless of whether any adjustments have | 3 | | been proposed, and shall be completed within 9 | 4 | | months; | 5 | | (viii) limit the utility's obligation to such | 6 | | amount as the utility is allowed to recover through | 7 | | tariffs filed with the Commission, provided that | 8 | | neither the clean coal facility nor the utility | 9 | | waives any right to assert federal pre-emption or | 10 | | any other argument in response to a purported | 11 | | disallowance of recovery costs; | 12 | | (ix) limit the utility's or alternative retail | 13 | | electric supplier's obligation to incur any | 14 | | liability until such time as the facility is in | 15 | | commercial operation and generating power and | 16 | | energy and such power and energy is being delivered | 17 | | to the facility busbar; | 18 | | (x) provide that the owner or owners of the | 19 | | initial clean coal facility, which is the | 20 | | counterparty to such sourcing agreement, shall | 21 | | have the right from time to time to elect whether | 22 | | the obligations of the utility party thereto shall | 23 | | be governed by the power purchase provisions or the | 24 | | contract for differences provisions; | 25 | | (xi) append documentation showing that the | 26 | | formula rate and contract, insofar as they relate |
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| 1 | | to the power purchase provisions, have been | 2 | | approved by the Federal Energy Regulatory | 3 | | Commission pursuant to Section 205 of the Federal | 4 | | Power Act; | 5 | | (xii) provide that any changes to the terms of | 6 | | the contract, insofar as such changes relate to the | 7 | | power purchase provisions, are subject to review | 8 | | under the public interest standard applied by the | 9 | | Federal Energy Regulatory Commission pursuant to | 10 | | Sections 205 and 206 of the Federal Power Act; and | 11 | | (xiii) conform with customary lender | 12 | | requirements in power purchase agreements used as | 13 | | the basis for financing non-utility generators. | 14 | | (4) Effective date of sourcing agreements with the | 15 | | initial clean coal facility. Any proposed sourcing | 16 | | agreement with the initial clean coal facility shall not | 17 | | become effective unless the following reports are prepared | 18 | | and submitted and authorizations and approvals obtained: | 19 | | (i) Facility cost report. The owner of the | 20 | | initial clean coal facility shall submit to the | 21 | | Commission, the Agency, and the General Assembly a | 22 | | front-end engineering and design study, a facility | 23 | | cost report, method of financing (including but | 24 | | not limited to structure and associated costs), | 25 | | and an operating and maintenance cost quote for the | 26 | | facility (collectively "facility cost report"), |
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| 1 | | which shall be prepared in accordance with the | 2 | | requirements of this paragraph (4) of subsection | 3 | | (d) of this Section, and shall provide the | 4 | | Commission and the Agency access to the work | 5 | | papers, relied upon documents, and any other | 6 | | backup documentation related to the facility cost | 7 | | report. | 8 | | (ii) Commission report. Within 6 months | 9 | | following receipt of the facility cost report, the | 10 | | Commission, in consultation with the Agency, shall | 11 | | submit a report to the General Assembly setting | 12 | | forth its analysis of the facility cost report. | 13 | | Such report shall include, but not be limited to, a | 14 | | comparison of the costs associated with | 15 | | electricity generated by the initial clean coal | 16 | | facility to the costs associated with electricity | 17 | | generated by other types of generation facilities, | 18 | | an analysis of the rate impacts on residential and | 19 | | small business customers over the life of the | 20 | | sourcing agreements, and an analysis of the | 21 | | likelihood that the initial clean coal facility | 22 | | will commence commercial operation by and be | 23 | | delivering power to the facility's busbar by 2016. | 24 | | To assist in the preparation of its report, the | 25 | | Commission, in consultation with the Agency, may | 26 | | hire one or more experts or consultants, the costs |
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| 1 | | of which shall be paid for by the owner of the | 2 | | initial clean coal facility. The Commission and | 3 | | Agency may begin the process of selecting such | 4 | | experts or consultants prior to receipt of the | 5 | | facility cost report. | 6 | | (iii) General Assembly approval. The proposed | 7 | | sourcing agreements shall not take effect unless, | 8 | | based on the facility cost report and the | 9 | | Commission's report, the General Assembly enacts | 10 | | authorizing legislation approving (A) the | 11 | | projected price, stated in cents per kilowatthour, | 12 | | to be charged for electricity generated by the | 13 | | initial clean coal facility, (B) the projected | 14 | | impact on residential and small business | 15 | | customers' bills over the life of the sourcing | 16 | | agreements, and (C) the maximum allowable return | 17 | | on equity for the project; and | 18 | | (iv) Commission review. If the General | 19 | | Assembly enacts authorizing legislation pursuant | 20 | | to subparagraph (iii) approving a sourcing | 21 | | agreement, the Commission shall, within 90 days of | 22 | | such enactment, complete a review of such sourcing | 23 | | agreement. During such time period, the Commission | 24 | | shall implement any directive of the General | 25 | | Assembly, resolve any disputes between the parties | 26 | | to the sourcing agreement concerning the terms of |
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| 1 | | such agreement, approve the form of such | 2 | | agreement, and issue an order finding that the | 3 | | sourcing agreement is prudent and reasonable. | 4 | | The facility cost report shall be prepared as follows: | 5 | | (A) The facility cost report shall be prepared by | 6 | | duly licensed engineering and construction firms | 7 | | detailing the estimated capital costs payable to one or | 8 | | more contractors or suppliers for the engineering, | 9 | | procurement and construction of the components | 10 | | comprising the initial clean coal facility and the | 11 | | estimated costs of operation and maintenance of the | 12 | | facility. The facility cost report shall include: | 13 | | (i) an estimate of the capital cost of the core | 14 | | plant based on one or more front end engineering | 15 | | and design studies for the gasification island and | 16 | | related facilities. The core plant shall include | 17 | | all civil, structural, mechanical, electrical, | 18 | | control, and safety systems. | 19 | | (ii) an estimate of the capital cost of the | 20 | | balance of the plant, including any capital costs | 21 | | associated with sequestration of carbon dioxide | 22 | | emissions and all interconnects and interfaces | 23 | | required to operate the facility, such as | 24 | | transmission of electricity, construction or | 25 | | backfeed power supply, pipelines to transport | 26 | | substitute natural gas or carbon dioxide, potable |
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| 1 | | water supply, natural gas supply, water supply, | 2 | | water discharge, landfill, access roads, and coal | 3 | | delivery. | 4 | | The quoted construction costs shall be expressed | 5 | | in nominal dollars as of the date that the quote is | 6 | | prepared and shall include (1) capitalized financing | 7 | | costs during construction,
(2) taxes, insurance, and | 8 | | other owner's costs, and (3) an assumed escalation in | 9 | | materials and labor beyond the date as of which the | 10 | | construction cost quote is expressed. | 11 | | (B) The front end engineering and design study for | 12 | | the gasification island and the cost study for the | 13 | | balance of plant shall include sufficient design work | 14 | | to permit quantification of major categories of | 15 | | materials, commodities and labor hours, and receipt of | 16 | | quotes from vendors of major equipment required to | 17 | | construct and operate the clean coal facility. | 18 | | (C) The facility cost report shall also include an | 19 | | operating and maintenance cost quote that will provide | 20 | | the estimated cost of delivered fuel, personnel, | 21 | | maintenance contracts, chemicals, catalysts, | 22 | | consumables, spares, and other fixed and variable | 23 | | operations and maintenance costs. | 24 | | (a) The delivered fuel cost estimate will be | 25 | | provided by a recognized third party expert or | 26 | | experts in the fuel and transportation industries. |
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| 1 | | (b) The balance of the operating and | 2 | | maintenance cost quote, excluding delivered fuel | 3 | | costs will be developed based on the inputs | 4 | | provided by duly licensed engineering and | 5 | | construction firms performing the construction | 6 | | cost quote, potential vendors under long-term | 7 | | service agreements and plant operating agreements, | 8 | | or recognized third party plant operator or | 9 | | operators. | 10 | | The operating and maintenance cost quote | 11 | | (including the cost of the front end engineering | 12 | | and design study) shall be expressed in nominal | 13 | | dollars as of the date that the quote is prepared | 14 | | and shall include (1) taxes, insurance, and other | 15 | | owner's costs, and (2) an assumed escalation in | 16 | | materials and labor beyond the date as of which the | 17 | | operating and maintenance cost quote is expressed. | 18 | | (D) The facility cost report shall also include (i) | 19 | | an analysis of the initial clean coal facility's | 20 | | ability to deliver power and energy into the applicable | 21 | | regional transmission organization markets and (ii) an | 22 | | analysis of the expected capacity factor for the | 23 | | initial clean coal facility. | 24 | | (E) Amounts paid to third parties unrelated to the | 25 | | owner or owners of the initial clean coal facility to | 26 | | prepare the core plant construction cost quote, |
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| 1 | | including the front end engineering and design study, | 2 | | and the operating and maintenance cost quote will be | 3 | | reimbursed through Coal Development Bonds. | 4 | | (5) Re-powering and retrofitting coal-fired power | 5 | | plants previously owned by Illinois utilities to qualify as | 6 | | clean coal facilities. During the 2009 procurement | 7 | | planning process and thereafter, the Agency and the | 8 | | Commission shall consider sourcing agreements covering | 9 | | electricity generated by power plants that were previously | 10 | | owned by Illinois utilities and that have been or will be | 11 | | converted into clean coal facilities, as defined by Section | 12 | | 1-10 of this Act. Pursuant to such procurement planning | 13 | | process, the owners of such facilities may propose to the | 14 | | Agency sourcing agreements with utilities and alternative | 15 | | retail electric suppliers required to comply with | 16 | | subsection (d) of this Section and item (5) of subsection | 17 | | (d) of Section 16-115 of the Public Utilities Act, covering | 18 | | electricity generated by such facilities. In the case of | 19 | | sourcing agreements that are power purchase agreements, | 20 | | the contract price for electricity sales shall be | 21 | | established on a cost of service basis. In the case of | 22 | | sourcing agreements that are contracts for differences, | 23 | | the contract price from which the reference price is | 24 | | subtracted shall be established on a cost of service basis. | 25 | | The Agency and the Commission may approve any such utility | 26 | | sourcing agreements that do not exceed cost-based |
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| 1 | | benchmarks developed by the procurement administrator, in | 2 | | consultation with the Commission staff, Agency staff and | 3 | | the procurement monitor, subject to Commission review and | 4 | | approval. The Commission shall have authority to inspect | 5 | | all books and records associated with these clean coal | 6 | | facilities during the term of any such contract. | 7 | | (6) Costs incurred under this subsection (d) or | 8 | | pursuant to a contract entered into under this subsection | 9 | | (d) shall be deemed prudently incurred and reasonable in | 10 | | amount and the electric utility shall be entitled to full | 11 | | cost recovery pursuant to the tariffs filed with the | 12 | | Commission. | 13 | | (e) The draft procurement plans are subject to public | 14 | | comment, as required by Section 16-111.5 of the Public | 15 | | Utilities Act. | 16 | | (f) The Agency shall submit the final procurement plan | 17 | | to the Commission. The Agency shall revise a procurement | 18 | | plan if the Commission determines that it does not meet the | 19 | | standards set forth in Section 16-111.5 of the Public | 20 | | Utilities Act. | 21 | | (g) The Agency shall assess fees to each affected | 22 | | utility to recover the costs incurred in preparation of the | 23 | | annual procurement plan for the utility. | 24 | | (h) The Agency shall assess fees to each bidder to | 25 | | recover the costs incurred in connection with a competitive | 26 | | procurement process.
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| 1 | | (Source: P.A. 95-481, eff. 8-28-07; 95-1027, eff. 6-1-09; | 2 | | 96-159, eff. 8-10-09; 96-1437, eff. 8-17-10.)".
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