Illinois General Assembly - Full Text of HB2753
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Full Text of HB2753  98th General Assembly




State of Illinois
2013 and 2014


Introduced 2/21/2013, by Rep. Robyn Gabel


New Act

    Creates the Lake Michigan Wind Energy Act. Requires the Department of Natural Resources to develop a detailed offshore wind energy siting matrix for the public trust lands of Lake Michigan. Authorizes the Department, after finalizing the offshore wind energy siting matrix, to grant offshore wind energy development site assessment permits and leases. Authorizes the Department to convert site assessment leases to construction and operation leases. Grants the Department other rulemaking powers. Creates the Offshore Wind Energy Economic Development Policy Task Force. Charges the Task Force with analyzing and evaluating policy and economic options to facilitate the development of offshore wind energy and proposing an appropriate Illinois mechanism for purchasing and selling power from offshore wind energy projects. Effective immediately.

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HB2753LRB098 10899 JDS 41429 b

1    AN ACT concerning energy.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Lake
5Michigan Wind Energy Act.
6    Section 5. Legislative findings. The General Assembly
8    (1) that Lake Michigan is a unique and treasured public
9asset that supports numerous activities for the benefit of the
10people, wildlife, and flora of the State of Illinois;
11    (2) that the bottom of Lake Michigan up to the mean
12high-water line is public land held in trust for the people of
13the State of Illinois and cannot be alienated to a private use
14or person;
15    (3) that federal and State policy, as well as the national
16security, energy, and environmental needs of the United States
17and the people of the State of Illinois, support exploration
18and development of renewable energy resources, including
19offshore wind energy;
20    (4) that the State of Illinois is a signatory to a federal
21and multistate memorandum of understanding and is committed to
22promoting the efficient, expeditious, orderly, and responsible
23evaluation of offshore wind power projects in the Great Lakes;



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1    (5) that wind above the Illinois public trust lands of Lake
2Michigan is a unique and significant renewable energy resource;
3    (6) the development of that resource does not involve
4mining or other extraction of resources from the public trust
5lands of Lake Michigan;
6    (7) the provision of renewable energy from offshore wind,
7if done in an environmentally responsible manner and without a
8grant of any public trust lands of Lake Michigan, would serve a
9primarily public purpose consistent with the public trust; and
10    (8) that the Lake Michigan Offshore Wind Energy Advisory
11Council has recommended clarifying and confirming the State's
12authority to permit such development and has made other
13recommendations to further the responsible development of the
14State's wind energy resources above Lake Michigan.
15    Section 10. Definitions. As used in this Act:
16        "Public trust lands" means lands, on or above the bed
17    of Lake Michigan and below the mean high-water mark of Lake
18    Michigan, belonging to, or subsequently acquired by, the
19    State.
20        "Department" means the Department of Natural
21    Resources.
22    Section 15. Wind energy siting matrix. The Department shall
23develop, by no later than December 31, 2014, a detailed
24offshore wind energy siting matrix for the public trust lands



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1of Lake Michigan, which shall, at a minimum, identify areas
2that are unsuitable for wind energy development ("prohibited
3areas"), areas that are most appropriate for wind energy
4development ("preferred areas"), and areas that are neither
5prohibited nor preferred for wind energy development but that
6may be considered for development upon application ("possible
7areas"). By a proposed rule, the Department may preliminarily
8identify, in advance of completion of the wind energy siting
9matrix, a limited number of prohibited areas, preferred areas,
10and pilot project sites within the preferred areas. The
11Department, in developing the wind energy siting matrix, shall
12take into consideration existing environmental, marine, public
13infrastructure, transportation, and security uses and factors,
14and may also consider other factors it identifies as
16    Section 20. Offshore Wind Energy Economic Development
17Policy Task Force.
18    (a) The Governor shall convene an Offshore Wind Energy
19Economic Development Policy Task Force, to be chaired by the
20Director of Commerce and Economic Opportunity, or his or her
21designee, to analyze and evaluate policy and economic options
22to facilitate the development of offshore wind energy, and to
23propose an appropriate Illinois mechanism for purchasing and
24selling power from possible offshore wind energy projects. The
25Task Force shall examine mechanisms used in other states and



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1jurisdictions, including, without limitation, feed-in-tariffs,
2renewable energy certificates, renewable energy certificate
3carve-outs, power purchase agreements, and pilot projects. The
4Task Force shall report its findings and recommendations to the
5Governor and General Assembly by December 31, 2013.
6    (b) The Director of the Illinois Power Agency (or his or
7her designee), the Executive Director of the Illinois Commerce
8Commission (or his or her designee), and the Attorney General
9(or his or her designee) shall serve as ex officio members of
10the Task Force.
11    (c) The Governor shall appoint the following public members
12to serve on the Task Force:
13        (1) one individual from an institution of higher
14    education in Illinois representing the discipline of
15    economics with experience in the study of renewable energy;
16        (2) one individual representing an energy industry
17    with experience in renewable energy markets;
18        (3) one individual representing a Statewide consumer
19    or electric ratepayer organization;
20        (4) one individual representing the offshore wind
21    energy industry;
22        (5) one individual representing the wind energy supply
23    chain industry;
24        (6) one individual representing an Illinois electrical
25    cooperative, municipal electrical utility, or association
26    of such cooperatives or utilities;



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1        (7) one individual representing an Illinois industrial
2    union involved in the construction, maintenance, or
3    transportation of electrical generation, distribution, or
4    transmission equipment or components;
5        (8) one individual representing an Illinois commercial
6    or industrial electrical consumer;
7        (9) one individual representing an Illinois public
8    education electrical consumer;
9        (10) one individual representing an independent
10    transmission company;
11        (11) one individual from the Illinois legal community
12    with experience in contracts, utility law, municipal law,
13    and constitutional law;
14        (12) one individual representing a Great Lakes
15    regional organization with experience assessing or
16    studying wind energy;
17        (13) one individual representing a Statewide
18    environmental organization;
19        (14) one resident of the State representing an
20    organization advocating for persons of low or limited
21    incomes;
22        (15) one individual representing Argonne National
23    Laboratory; and
24        (16) one individual representing a local community
25    that has aggregated the purchase of electricity.
26    (d) The Governor may appoint additional public members to



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1the Task Force.
2    (e) The Speaker of the House of Representatives, Minority
3Leader of the House of Representatives, Senate President, and
4Minority Leader of the Senate shall each appoint one member of
5the General Assembly to serve on the Task Force.
6    (f) Members of the Task Force shall serve without
8    Section 25. Assessment permits. After finalizing the wind
9energy siting matrix required under Section 15, the Department
10may, in accordance with rules adopted by the Department
11pursuant to Section 5-40 of the Illinois Administrative
12Procedure Act and with the written approval of the Governor,
13grant in the name of the State of Illinois permits and site
14leases with respect to public trust lands of Lake Michigan for
15the assessment of sites for offshore wind energy development.
16An assessment permit and lease may be granted in advance of
17completion of the wind energy siting matrix only for an area
18preliminarily identified by a proposed rule of the Department
19as a preferred area, and that preliminary identification shall
20not be in any manner conclusive or precedential with respect to
21ultimate classification of a site or any Department decision
22authorized by this Act.
23    Section 30. Permits for wind park construction and
24operation. The Department may, in accordance with rules adopted



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1by the Department pursuant to Section 5-40 of the Illinois
2Administrative Procedure Act, convert site assessment leases
3to offshore wind park construction and operation leases, upon
4an appropriate showing by the applicant that the construction
5and operation of wind energy facilities would not be
6inconsistent with the public trust.
7    The Department may insert into any permit or lease issued
8under this Act any terms that it deems necessary to protect the
9rights of the State, the public, lessees, and users of waters
10above the public trust lands of Lake Michigan.
11    Section 35. Rulemaking. The Department may adopt, in
12accordance with the requirements of Section 5-40 of the
13Illinois Administrative Procedure Act, any rule that is
14necessary to implement this Act. The rules adopted by the
15Department under this Section shall, at a minimum, specify
16permit fees and royalty schedules, requirements for bonding and
17guaranteeing, requirements for decommissioning, and any other
18requirements necessary for carrying out the provisions of this
20    Prior to adopting any rule under this Act, the Department
21shall consult with the Illinois Environmental Protection
22Agency, the Illinois Commerce Commission, the Illinois Power
23Agency, and the Department of Commerce and Economic



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1    Section 40. Regulatory toolkit. The Department shall, in
2consultation with the Illinois Environmental Protection
3Agency, the Illinois Commerce Commission, the Illinois Power
4Agency, and the Department of Commerce and Economic
5Opportunity, prepare and publish a toolkit for advising and
6guiding developers on the regulatory and permitting process.
7The toolkit shall, at a minimum, include a checklist of
8required State permits and an overview of estimated timelines
9and likely areas of concern.
10    Section 45. Limitation on Department Authority. Nothing
11contained in this Act shall be construed as requiring or
12permitting the Department to permanently convey any public
13trust lands for energy development, or to permit on any
14offshore public trust lands of Lake Michigan any development
15other than for offshore wind.
16    Section 99. Effective date. This Act takes effect upon
17becoming law.