The Great Lakes Zephyr - Wind Energy & Hydrogen Journal

SB 2321: Good for Jobs, Economic Growth, the Environment & Consumers

More renewable energy in Illinois means more jobs, economic growth, a cleaner environment, and less fuel cost volatility. Illinois already has taken two important steps towards diversifying our state’s energy supply with renewable energy. First, in 2001, Illinois enacted legislation setting statewide renewable energy goals of at least 5% of the total energy supplied by 2010 and at least 15% of the total energy supplied by 2020. According to the law, "renewable forms of energy should be promoted as an important element of the energy and environmental policies of the State." Second, in 1997, Illinois specifically defined "renewable energy" to include energy from wind, solar, biomass and other environmentally superior energy resources.

SB 2321 establishes a Renewable Energy Portfolio Standard ("RPS") that is realistic and attainable for all players in the Illinois utility market. All electric utilities and other competing supplies are required to meet a standard by providing 3% renewable energy supply as part of their overall power mix by 2007 and 10% by 2012. There is a gradual ramp-up of the percentages in the interim years in order to achieve progress sooner and encourage better implementation.

Thirteen other states, including Texas (under then-Governor George Bush), Iowa, Minnesota and California, have adopted various RPS mechanisms, and New York Governor Pataki recently announced his support for a 25% RPS. Illinois should catch up and be a leader in seizing renewable energy development opportunities, rather than falling behind.
Elements of the SB 2321 Renewable Energy Portfolio Standard

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All electric utilities and other retail electricity suppliers generate or purchase ("build or buy") at least 3% of their total energy sales from renewable energy resources by 2007, and at least 10% by 2012, with a gradual percentage ramp-up in the interim years.

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Uses the existing statutory definition of "renewable energy resources."

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The Illinois Commerce Commission oversees the implementation and administration.

Jobs and Economic Benefits: (1) provides a new income stream for farmers who lease sites or own wind turbines, or grow biomass "energy crops"; (2) produces significant new property and sales tax revenues; and (3) creates thousands of new jobs and economic growth benefits.

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Job Jolt, a new study by the Regional Economics Applications Laboratory of the University of Illinois, concludes that renewable energy development can create 8,580 net new jobs by 2010, and 13,470 by 2020, and can spur Illinois economic growth of $950 million by 2010 and $1.5 billion by 2020.

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The new Crescent Ridge Wind Farm will be the largest property taxpayer in Bureau County. Farmers and other landowners will receive lease payments of about $5,000 per wind turbine per year.

Environmental Quality Benefits: Clean renewable energy generation, which all public opinion polling shows that the Illinois public clearly wants, avoids air and water pollution.

Fuel Diversity: Zero-fuel cost wind power hedges against volatile gas prices.

*These benefits can come at no additional cost to consumers since the rate freeze is in effect until 2007. *

Frequently Asked Questions

Please contact Howard Learner, Barry Matchett, Rebecca Stamey-White or John Moore
at the Environmental Law and Policy Center (312-673-6500) to discuss SB 2321 in more detail.

http://www.elpc.org/energy/ilrps/FactSheetSB2321OnePageGeneral.htm