Full Text of SB1104 102nd General Assembly
SB1104sam002 102ND GENERAL ASSEMBLY | Sen. Napoleon Harris, III Filed: 3/25/2022
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| 1 | | AMENDMENT TO SENATE BILL 1104
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1104 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Illinois Regional Generation Reliability Task Force Act . | 6 | | Section 5. Findings. The General Assembly hereby finds, | 7 | | determines, and declares the following: | 8 | | (1) The reliability of the Illinois electricity grid | 9 | | is critically important to the consumers, businesses, and | 10 | | all residents of Illinois and should not be compromised. | 11 | | (2) Illinois has taken definitive steps toward | 12 | | redefining the generation mix in Illinois. | 13 | | (3) the Midcontinent Independent System Operator, Inc. | 14 | | ("MISO") is an independent, not-for-profit, member-based | 15 | | organization responsible for operating the power grid | 16 | | across 15 states and the Canadian province of Manitoba, |
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| 1 | | serving 42 million people. | 2 | | (4) The PJM Interconnection LLC ("PJM"), is an | 3 | | independent not-for-profit, member-based Regional | 4 | | Transmission Organization ("RTO") that manages the | 5 | | operations, supply, and movement of power across 13 states | 6 | | and the District of Columbia, serving 65 million people. | 7 | | (5) Illinois is served by both PJM and MISO, which | 8 | | collectively ensure that sufficient electric power | 9 | | generation supply and transmission are available to meet | 10 | | electric demand every minute of every day for over 107 | 11 | | million people across 28 states and 2 countries. Wholesale | 12 | | electric power generation is regulated by the Federal | 13 | | Energy Regulatory Commission due to the interstate and | 14 | | international nature of the transmission grid operated by | 15 | | PJM and MISO. As such, Illinois policy changes at the | 16 | | State level can affect the reliability, availability, and | 17 | | cost of power for seniors, families, businesses, | 18 | | municipalities, universities, and hospitals across the | 19 | | region. | 20 | | (6) When natural disasters occur, such as ice storms, | 21 | | blizzards, tornadoes, and hurricanes, states participating | 22 | | in PJM and MISO have provided support to each other | 23 | | through power generation restoration missions. The | 24 | | inability to deliver power generation in critical times | 25 | | can have a huge economic impact and can also result in | 26 | | death across the PJM and MISO Regional Transmission |
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| 1 | | Organizations. | 2 | | (7) PJM and MISO have multiple markets in which power | 3 | | suppliers participate. The Capacity Market, Day-Ahead | 4 | | Energy Market, and Frequency Market are markets that power | 5 | | generators participate in to ensure over 107 million | 6 | | people across 28 states and 2 countries receive the right | 7 | | amount of electricity every minute of every day. | 8 | | (A) Capacity markets are used in wholesale | 9 | | electricity markets to pay resources for being | 10 | | available to meet peak electricity demand. Capacity is | 11 | | not actual electricity, but rather the ability to | 12 | | produce electricity when called upon. Capacity is | 13 | | procured, sometimes multiple years in advance of when | 14 | | it is needed, based on projections of future energy | 15 | | needs using historical demand requirements. | 16 | | (B) The Day-Ahead Energy Market lets market | 17 | | participants commit to buy or sell wholesale | 18 | | electricity one day before the power is needed, to | 19 | | help avoid price volatility. The Real-Time Energy | 20 | | Market balances the differences between day-ahead | 21 | | commitments and the actual real-time demand for and | 22 | | production of electricity. | 23 | | (C) The power grid operates, and shall be | 24 | | maintained, at a constant frequency of 60 hertz. | 25 | | Significant deviation from this level can result in | 26 | | catastrophic damage to the power grid as well as |
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| 1 | | household appliances. Frequency is maintained when | 2 | | electric generators automatically add or remove power | 3 | | from the grid. For example, a large power plant | 4 | | suddenly tripping offline reduces the total amount of | 5 | | available kinetic energy, leading the rotating | 6 | | generators on the system to start rotating less | 7 | | rapidly and thereby decreasing the alternating current | 8 | | frequency across the grid system. Since a generator | 9 | | turbine's rotational velocity is directly coupled to | 10 | | the grid frequency, the generator's control systems | 11 | | can sense this frequency decline as an indicator of | 12 | | insufficient energy provision. The control system | 13 | | within each power plant, which usually has been in the | 14 | | form of a governor, can then automatically increase | 15 | | the plant's power output. This process is autonomous | 16 | | because the governor does not have to wait for a | 17 | | central dispatcher to send a signal, thus bypassing | 18 | | communications system delays. | 19 | | (8) The shifting generation mix in PJM and MISO will | 20 | | require optimum performance and an increased focus on the | 21 | | need to retain reliability as certain existing generators | 22 | | shut down operations and new, intermittent generators are | 23 | | added. Additionally, increased power generation | 24 | | consumption due to increased electric vehicles and | 25 | | charging stations, along with increased electrification of | 26 | | building heating needs will undoubtedly place greater |
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| 1 | | demand on the power system. | 2 | | (9) Illinois has a responsibility to ensure the | 3 | | performance of Illinois and Regional Power Grids are safe, | 4 | | reliable, and maintain the necessary capacity to meet the | 5 | | power demands of Illinois residents. Additionally, | 6 | | Illinois has an obligation to do its part to ensure the | 7 | | regional power grid is safe and reliable for its | 8 | | partnering states. As part of the regional power grid, | 9 | | Illinois should be concerned that shuttered facilities in | 10 | | Illinois will be replaced by higher cost, higher emissions | 11 | | resources from other states. | 12 | | Section 10. Illinois Regional Generation Reliability Task | 13 | | Force. | 14 | | (a) The Illinois Regional Generation Reliability Task | 15 | | Force is created. The
Task Force shall monitor the reliability | 16 | | of the Illinois power grid. The Task Force should consider the | 17 | | present and future needs of Illinois consumers while | 18 | | simultaneously addressing any issues related to the | 19 | | performance and reliability of power generation and | 20 | | transmission and being mindful of the ultimate cost to | 21 | | consumers. | 22 | | (b) The duties and responsibilities of the Task Force
| 23 | | include the following: | 24 | | (1) Identifying and assessing policies, rules, and | 25 | | laws that have the potential to significantly affect the |
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| 1 | | reliability of the Illinois and regional power grids. | 2 | | (2) Developing a set of standards and conditions that | 3 | | will ensure optimal performance of the Illinois and | 4 | | regional power grids based on new and emerging | 5 | | technologies. | 6 | | (3) Identifying opportunities to improve the Illinois | 7 | | power supply mix through existing and new laws to ensure | 8 | | continued power reliability at affordable rates for | 9 | | Illinois consumers. | 10 | | (4) Compiling research and best practices from other | 11 | | states and countries on how to deploy technology to | 12 | | benefit the performance and reliability of the power grid. | 13 | | (5) Developing tools to assess the impact of proposed | 14 | | policies and evaluate their costs and benefits on | 15 | | families, employers, the public, Illinois, and other | 16 | | states as part of the Illinois and regional power grids. | 17 | | (6) Identifying data, reports, and relevant | 18 | | information on the performance of the power grid to ensure | 19 | | reliability and that pricing of power generation is in the | 20 | | best interest of families, businesses, and communities in | 21 | | Illinois. | 22 | | (7) Providing its findings and recommendations for | 23 | | policy changes and any revisions to policies, rules, and | 24 | | laws that will facilitate the stability and reliability of | 25 | | the Illinois and regional power grids on an annual basis | 26 | | to the General Assembly. |
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| 1 | | (8) Developing and proposing legislative concepts to | 2 | | ensure the future stability and reliability of the power | 3 | | grid. | 4 | | Section 15. Membership; meetings. | 5 | | (a) The members of the Illinois Regional Generation | 6 | | Reliability Task Force shall be composed of the following: | 7 | | (1) three Senators appointed by the President of the | 8 | | Senate, one of whom shall be designated by the President | 9 | | as the co-chair of the Task Force;
| 10 | | (2) three Representatives appointed by the Speaker of | 11 | | the House of Representatives, one of whom shall be | 12 | | designated by the Speaker as the co-chair of the Task | 13 | | Force;
| 14 | | (3) two Senators appointed by the Minority Leader of | 15 | | the Senate;
| 16 | | (4) two Representatives appointed by the Minority | 17 | | Leader of the House of Representatives;
| 18 | | (5) one member appointed by the Governor whose sole | 19 | | role is dedicated to energy policy for the State;
| 20 | | (6) one member of a State or local labor organization | 21 | | appointed by the President of the Senate;
| 22 | | (7) one member of a State or local labor organization | 23 | | appointed by the Speaker of the House of Representatives;
| 24 | | (8) one representative from PJM RTO, designated by | 25 | | PJM;
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| 1 | | (9) one representative from the PJM Independent Market | 2 | | Monitor organization, designated by the PJM Independent | 3 | | Market Monitor organization;
| 4 | | (10) one representative from MISO RTO, designated by | 5 | | MISO;
| 6 | | (11) one representative from the MISO Independent | 7 | | Market Monitor organization, designated by the MISO | 8 | | Independent Market Monitor organization;
| 9 | | (12) one member from a utility or transmission company | 10 | | that operates in the PJM regional transmission | 11 | | organization, designated by PJM; | 12 | | (13) one member from a utility or transmission company | 13 | | that operates in MISO Zone 4, designated by MISO Zone 4; | 14 | | (14) six representatives from 6 different power | 15 | | generation companies that operate in the PJM or MISO | 16 | | regional transmission organization, 2 appointed by the | 17 | | President of the Senate, 2 appointed by the Speaker of the | 18 | | House of Representatives, one appointed by the Minority | 19 | | Leader in the Senate, and one appointed by the Minority | 20 | | Leader in the House of Representatives;
| 21 | | (15) one representative from a statewide organization | 22 | | representing retail merchants, appointed by the President | 23 | | of the Senate;
| 24 | | (16) one representative from a statewide organization | 25 | | representing manufacturers, appointed by the Speaker of | 26 | | the House of Representatives;
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| 1 | | (17) one representative from a statewide organization | 2 | | representing retired people, appointed by the Speaker of | 3 | | the House of Representatives;
| 4 | | (18) one representative from a minority-owned | 5 | | geothermal group, appointed by the President of the | 6 | | Senate;
| 7 | | (19) one representative from a statewide organization | 8 | | representing business, appointed by the Speaker of the | 9 | | House of Representatives;
| 10 | | (20) two representatives from environmental law | 11 | | groups, one appointed by the President of the Senate and | 12 | | one appointed by the Speaker of the House of | 13 | | Representatives;
| 14 | | (21) the Director of the Illinois Power Agency, or the | 15 | | Director's designee;
| 16 | | (22) the Director of the Environmental Protection | 17 | | Agency, or the Director's designee; and
| 18 | | (23) the Chair of the Illinois Commerce Commission, or | 19 | | the Chair's designee.
| 20 | | (b) Appointments for the Task Force shall be made by July | 21 | | 1, 2022. The Task Force shall hold 7 meetings annually, either | 22 | | remotely or in person, and the first meeting shall be held | 23 | | within 30 days after appointments are made. | 24 | | (c) Members of the Task Force shall serve without | 25 | | compensation. | 26 | | (d) The Illinois Commerce Commission shall provide |
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| 1 | | administrative support to the Task Force in conjunction with | 2 | | the Independent Market Monitors for the MISO and PJM Regional | 3 | | Transmission Organizations. | 4 | | Section 20. Annual report. | 5 | | (a) The Illinois Regional Generation Reliability Task | 6 | | Force shall issue an annual report based upon its findings in | 7 | | the course of performing its duties and responsibilities. The | 8 | | report shall be written by the administrative staff of the | 9 | | Task Force and with staff assistance from the Independent | 10 | | Market Monitors from the MISO and PJM Regional Transmission | 11 | | Organizations. | 12 | | (b) The Illinois Regional Generation Reliability Task | 13 | | Force shall submit its first report on February 1, 2023, and | 14 | | each February 1 thereafter to the General Assembly upon the | 15 | | completion of its meeting schedule and shall continue to issue | 16 | | annual reports each year.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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