94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4257


 
Introduced 12/15/05, by Rep. Patricia Reid Lindner
 
SYNOPSIS AS INTRODUCED:
 		













220 ILCS 5/8-402.2 new










    Amends the Public Utilities Act. Provides that each electric utility and each alternative retail electric supplier shall use its best efforts to procure by the end of
calendar year 2007 renewable energy resources equal to at least 2% of the electric energy to be sold to retail customers within its service area during the following calendar
year, and procure by the end of calendar year 2008 renewable energy resources equal to at least 4% of
the electric energy to be sold to retail customers within its service
area during the following calendar year. Provides that the Commission, together with the
Department of Commerce and Economic Opportunity, shall evaluate the availability and
use of renewable energy resources within this State and shall also consider the
feasibility
of adoption of an enforceable mandatory renewable energy resource portfolio
standard to
be applicable to all electric utilities and all alternative retail electric
suppliers that requires that at least
12% of the
energy used within the State be through renewable energy resources by the end of
calendar year
2012 and at least 25% by the end of calendar year 2017. Provides
that costs associated with the procurement of certain renewable energy
resources shall be
fully recoverable from retail customers to the extent allowed by law and shall
not be
subject to specified limitations relating to the recovery of the power and
energy cost
component in tariffed rates.
















LRB094 15767 MKM 50982 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4257

LRB094 15767 MKM 50982 b






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    AN ACT concerning regulation.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Public Utilities Act is amended  by adding 
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Section 8-402.2 as follows:
 



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    (220 ILCS 5/8-402.2 new)




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    Sec. 8-402.2. Renewable energy portfolio standard.

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    (a) The objective of this Section is to ensure the 
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development and use of
economical renewable energy resources 
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consistent with the goals stated in
Section 5 of
the Illinois 
11
Resource Development and Energy Security Act and specifically 
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to
assess
whether the State's electric energy providers can 
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economically provide at least
12% of the
energy used within the 
14
State through renewable energy resources by the end of
calendar 
15
year
2012 and at least 25% by the end of calendar year 2017.

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    (b) Each electric utility and each alternative retail 
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electric supplier, as defined in Section 16-102 of this Act, 
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must use its best efforts to procure by the end of calendar 
19
year 2007 renewable
energy resources equal to at least 2% of 
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the electric energy to be sold to retail customers within its 
21
service area during the following calendar year, and procure by 
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the end of calendar year 2008 renewable energy resources equal 
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to at least 4% of the electric energy to be sold to retail 
24
customers within its service area during the following calendar 
25
year. This provision is, however, contingent upon the continued 
26
existence of federal energy production tax credits enacted as 
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part of the federal Energy Policy Act of 1992. Violations of 
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this Section are subject to the penalties
provided for in

29
Section 5-202 of this Act and assessed through the process 
30
provided for in
Section 4-203.

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    (c) During calendar year 2008, the Commission, together 
32
with the Department
of
Commerce and Economic Opportunity, must 
 


 






HB4257
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1
evaluate the availability and use of
renewable energy resources 
2
within this State and must also evaluate the
feasibility of

3
adoption of an enforceable mandatory renewable energy resource 
4
portfolio
standard to be
applicable to all electric utilities 
5
and all alternative retail electric
suppliers, as defined in

6
Section 16-102 of this Act. The Commission and the Department 
7
must
specifically
evaluate the feasibility and cost 
8
effectiveness of a mandatory renewable energy
resource

9
portfolio standard of at least 25% by the end of calendar year 
10
2017, and may require
electric utilities and alternative retail 
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electric suppliers to introduce
evidence of their
ability to 
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meet that standard. As part of that evaluation, the Commission

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and the
Department must consider each of the following: (i) the 
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adequacy of existing generation
capacity and
the availability 
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of renewable energy resources in the State and in the region; 
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(ii)
the effect of
a mandatory renewable energy resource 
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portfolio standard on the costs and reliability of electric 
18
service; (iii) the
continued
availability of federal tax 
19
credits; (iv) the development at both the State and
federal 
20
levels of infrastructure and rules and regulations that promote 
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the development and
use
of renewable energy resources; (v) the 
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effect of a mandatory renewable energy resource portfolio 
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standard on the
development of competition in the provision of 
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service; (vi) the impact of  a mandatory renewable energy 
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resource portfolio standard on the
environment, quality of 
26
life, and employment in the State; and (vii) any other
factors 
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affecting
the State's economy. The Commission and the 
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Department must report their
findings
to the General Assembly 
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and must include in that report recommendations for
further

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legislative action.

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    (d) The Commission and the Department must work with other 
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state agencies
in
the Midwest to ensure reciprocal acceptance 
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of renewable energy credits and
certificates
from resources 
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located in Illinois for purposes of other states' renewable

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energy
resource
portfolio
standards.

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    (e) Costs associated with the procurement of renewable 
 


 






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energy resources
pursuant
to this Section shall be fully 
2
recoverable from retail customers to the extent
allowed by
law 
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and shall not be subject to any limitations stated in 
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subsection (i) of
Section 16-111
of this Act relating to the 
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recovery of the power and energy cost component in
tariffed

6
rates. Costs associated with contracts that were prudent when 
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entered into
pursuant to
this Section shall not subsequently be 
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denied recovery due to changes in
State or
federal law.

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    (f) For purposes of this Section, "renewable energy 
10
resources" means that term as it is defined
in subsection (f) 
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of Section 6-3 of the Renewable Energy,
Energy
Efficiency, and 
12
Coal Resources Development Law of 1997 and includes
renewable

13
energy credits or certificates associated with those 
14
resources. However,
energy from landfill gas shall not be 
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counted as a renewable energy resource to
the extent
that it 
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exceeds 27.5% of an electric utility's or alternative retail

17
electric
supplier's renewable energy resources portfolio. In 
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addition,
renewable energy
resources shall only be counted for 
19
purposes of meeting the standards set forth
in this Section if

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they are based on or relate to production or generation in this 
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State or in an
adjacent
ozone non-attainment area, as 
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designated by the federal Environmental Protection
Agency,
or 
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in a state that has entered into a reciprocity agreement with 
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Illinois, as
provided in
subsection (d) above.