102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4731

 

Introduced 1/27/2022, by Rep. Lawrence Walsh, Jr.

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 730/5-40
20 ILCS 3855/1-75

    Amends the Energy Transition Act. Provides that Climate Works Hubs shall be awarded grants in multi-year increments not to exceed 36 months with the opportunity for grant renewal and modification for subsequent years. Provides that each Climate Works Hub that receives funding from the Energy Transition Assistance Fund shall: recruit, prescreen, and provide preapprenticeship training to equity investment eligible persons; provide training information related to opportunities and certifications relevant to clean energy jobs in the construction and building trades; and provide preapprentices with stipends not less than the State minimum wage unless a higher wage is required by the locality where preapprenticeship training program is situated. Provides that priority shall be given to Climate Works Hubs that have an agreement with North American Building Trades Union to utilize the Multi-Craft Core Curriculum or successor curriculums. Amends the Illinois Power Agency Act. Provides that projects less than or equal to 25 kilowatts on the waitlist for this capacity that are moved to the waitlist for the first block of annual capacity shall not be required to be in compliance with the Agency's long-term renewable resources plan. Removes language that provides that projects that were on the waitlist for the first block of annual capacity prior to the opening of the next block is not required to be in compliance with the Agency's long-term renewable resources plan.


LRB102 24633 AMQ 33871 b

 

 

A BILL FOR

 

HB4731LRB102 24633 AMQ 33871 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Energy Transition Act is amended by
5changing Section 5-40 as follows:
 
6    (20 ILCS 730/5-40)
7    (Section scheduled to be repealed on September 15, 2045)
8    Sec. 5-40. Illinois Climate Works Preapprenticeship
9Program.
10    (a) Subject to appropriation, the Department shall
11develop, and through Regional Administrators administer, the
12Illinois Climate Works Preapprenticeship Program. The goal of
13the Illinois Climate Works Preapprenticeship Program is to
14create a network of hubs throughout the State that will
15recruit, prescreen, and provide preapprenticeship skills
16training, for which participants may attend free of charge and
17receive a stipend, to create a qualified, diverse pipeline of
18workers who are prepared for careers in the construction and
19building trades and clean energy jobs opportunities therein.
20Upon completion of the Illinois Climate Works
21Preapprenticeship Program, the candidates will be connected to
22and prepared to successfully complete an apprenticeship
23program.

 

 

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1    (b) Each Climate Works Hub that receives funding from the
2Energy Transition Assistance Fund shall provide an annual
3report to the Illinois Works Review Panel by April 1 of each
4calendar year. The annual report shall include the following
5information:
6        (1) a description of the Climate Works Hub's
7    recruitment, screening, and training efforts, including a
8    description of training related to construction and
9    building trades opportunities in clean energy jobs;
10        (2) the number of individuals who apply to,
11    participate in, and complete the Climate Works Hub's
12    program, broken down by race, gender, age, and veteran
13    status;
14        (3) the number of the individuals referenced in
15    paragraph (2) of this subsection who are initially
16    accepted and placed into apprenticeship programs in the
17    construction and building trades; and
18        (4) the number of individuals referenced in paragraph
19    (2) of this subsection who remain in apprenticeship
20    programs in the construction and building trades or have
21    become journeymen one calendar year after their placement,
22    as referenced in paragraph (3) of this subsection.
23    (c) Subject to appropriation, the Department shall provide
24funding to 3 Climate Works Hubs throughout the State,
25including one to the Illinois Department of Transportation
26Region 1, one to the Illinois Department of Transportation

 

 

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1Regions 2 and 3, and one to the Illinois Department of
2Transportation Regions 4 and 5. Climate Works Hubs shall be
3awarded grants in multi-year increments not to exceed 36
4months with the opportunity for grant renewal and modification
5for subsequent years. The Department shall initially select a
6community-based provider in each region and shall subsequently
7select a community-based provider in each region every 3
8years.
9    (d) Each Climate Works Hub that receives funding from the
10Energy Transition Assistance Fund shall: The Climate Works
11Hubs shall recruit, prescreen, and provide preapprenticeship
12training to equity investment eligible persons. This training
13shall include information related to opportunities and
14certifications relevant to clean energy jobs in the
15construction and building trades.
16        (1) recruit, prescreen, and provide preapprenticeship
17    training to equity investment eligible persons;
18        (2) provide training information related to
19    opportunities and certifications relevant to clean energy
20    jobs in the construction and building trades; and
21        (3) provide preapprentices with stipends not less than
22    the State minimum wage unless a higher wage is required by
23    a locality where the preapprenticeship training program is
24    sited.
25    (d-5) Priority shall be given to Climate Works Hubs that
26have an agreement with North American Building Trades Unions

 

 

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1(NABTU) to utilize the Multi-Craft Core Curriculum or
2successor curriculums.
3    (e) Funding for the Program is subject to appropriation
4from the Energy Transition Assistance Fund.
5    (f) The Department shall adopt any rules deemed necessary
6to implement this Section.
7(Source: P.A. 102-662, eff. 9-15-21.)
 
8    Section 10. The Illinois Power Agency Act is amended by
9changing Section 1-75 as follows:
 
10    (20 ILCS 3855/1-75)
11    Sec. 1-75. Planning and Procurement Bureau. The Planning
12and Procurement Bureau has the following duties and
13responsibilities:
14    (a) The Planning and Procurement Bureau shall each year,
15beginning in 2008, develop procurement plans and conduct
16competitive procurement processes in accordance with the
17requirements of Section 16-111.5 of the Public Utilities Act
18for the eligible retail customers of electric utilities that
19on December 31, 2005 provided electric service to at least
20100,000 customers in Illinois. Beginning with the delivery
21year commencing on June 1, 2017, the Planning and Procurement
22Bureau shall develop plans and processes for the procurement
23of zero emission credits from zero emission facilities in
24accordance with the requirements of subsection (d-5) of this

 

 

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1Section. Beginning on the effective date of this amendatory
2Act of the 102nd General Assembly, the Planning and
3Procurement Bureau shall develop plans and processes for the
4procurement of carbon mitigation credits from carbon-free
5energy resources in accordance with the requirements of
6subsection (d-10) of this Section. The Planning and
7Procurement Bureau shall also develop procurement plans and
8conduct competitive procurement processes in accordance with
9the requirements of Section 16-111.5 of the Public Utilities
10Act for the eligible retail customers of small
11multi-jurisdictional electric utilities that (i) on December
1231, 2005 served less than 100,000 customers in Illinois and
13(ii) request a procurement plan for their Illinois
14jurisdictional load. This Section shall not apply to a small
15multi-jurisdictional utility until such time as a small
16multi-jurisdictional utility requests the Agency to prepare a
17procurement plan for their Illinois jurisdictional load. For
18the purposes of this Section, the term "eligible retail
19customers" has the same definition as found in Section
2016-111.5(a) of the Public Utilities Act.
21    Beginning with the plan or plans to be implemented in the
222017 delivery year, the Agency shall no longer include the
23procurement of renewable energy resources in the annual
24procurement plans required by this subsection (a), except as
25provided in subsection (q) of Section 16-111.5 of the Public
26Utilities Act, and shall instead develop a long-term renewable

 

 

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1resources procurement plan in accordance with subsection (c)
2of this Section and Section 16-111.5 of the Public Utilities
3Act.
4    In accordance with subsection (c-5) of this Section, the
5Planning and Procurement Bureau shall oversee the procurement
6by electric utilities that served more than 300,000 retail
7customers in this State as of January 1, 2019 of renewable
8energy credits from new utility-scale solar projects to be
9installed, along with energy storage facilities, at or
10adjacent to the sites of electric generating facilities that,
11as of January 1, 2016, burned coal as their primary fuel
12source.
13        (1) The Agency shall each year, beginning in 2008, as
14    needed, issue a request for qualifications for experts or
15    expert consulting firms to develop the procurement plans
16    in accordance with Section 16-111.5 of the Public
17    Utilities Act. In order to qualify an expert or expert
18    consulting firm must have:
19            (A) direct previous experience assembling
20        large-scale power supply plans or portfolios for
21        end-use customers;
22            (B) an advanced degree in economics, mathematics,
23        engineering, risk management, or a related area of
24        study;
25            (C) 10 years of experience in the electricity
26        sector, including managing supply risk;

 

 

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1            (D) expertise in wholesale electricity market
2        rules, including those established by the Federal
3        Energy Regulatory Commission and regional transmission
4        organizations;
5            (E) expertise in credit protocols and familiarity
6        with contract protocols;
7            (F) adequate resources to perform and fulfill the
8        required functions and responsibilities; and
9            (G) the absence of a conflict of interest and
10        inappropriate bias for or against potential bidders or
11        the affected electric utilities.
12        (2) The Agency shall each year, as needed, issue a
13    request for qualifications for a procurement administrator
14    to conduct the competitive procurement processes in
15    accordance with Section 16-111.5 of the Public Utilities
16    Act. In order to qualify an expert or expert consulting
17    firm must have:
18            (A) direct previous experience administering a
19        large-scale competitive procurement process;
20            (B) an advanced degree in economics, mathematics,
21        engineering, or a related area of study;
22            (C) 10 years of experience in the electricity
23        sector, including risk management experience;
24            (D) expertise in wholesale electricity market
25        rules, including those established by the Federal
26        Energy Regulatory Commission and regional transmission

 

 

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1        organizations;
2            (E) expertise in credit and contract protocols;
3            (F) adequate resources to perform and fulfill the
4        required functions and responsibilities; and
5            (G) the absence of a conflict of interest and
6        inappropriate bias for or against potential bidders or
7        the affected electric utilities.
8        (3) The Agency shall provide affected utilities and
9    other interested parties with the lists of qualified
10    experts or expert consulting firms identified through the
11    request for qualifications processes that are under
12    consideration to develop the procurement plans and to
13    serve as the procurement administrator. The Agency shall
14    also provide each qualified expert's or expert consulting
15    firm's response to the request for qualifications. All
16    information provided under this subparagraph shall also be
17    provided to the Commission. The Agency may provide by rule
18    for fees associated with supplying the information to
19    utilities and other interested parties. These parties
20    shall, within 5 business days, notify the Agency in
21    writing if they object to any experts or expert consulting
22    firms on the lists. Objections shall be based on:
23            (A) failure to satisfy qualification criteria;
24            (B) identification of a conflict of interest; or
25            (C) evidence of inappropriate bias for or against
26        potential bidders or the affected utilities.

 

 

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1        The Agency shall remove experts or expert consulting
2    firms from the lists within 10 days if there is a
3    reasonable basis for an objection and provide the updated
4    lists to the affected utilities and other interested
5    parties. If the Agency fails to remove an expert or expert
6    consulting firm from a list, an objecting party may seek
7    review by the Commission within 5 days thereafter by
8    filing a petition, and the Commission shall render a
9    ruling on the petition within 10 days. There is no right of
10    appeal of the Commission's ruling.
11        (4) The Agency shall issue requests for proposals to
12    the qualified experts or expert consulting firms to
13    develop a procurement plan for the affected utilities and
14    to serve as procurement administrator.
15        (5) The Agency shall select an expert or expert
16    consulting firm to develop procurement plans based on the
17    proposals submitted and shall award contracts of up to 5
18    years to those selected.
19        (6) The Agency shall select an expert or expert
20    consulting firm, with approval of the Commission, to serve
21    as procurement administrator based on the proposals
22    submitted. If the Commission rejects, within 5 days, the
23    Agency's selection, the Agency shall submit another
24    recommendation within 3 days based on the proposals
25    submitted. The Agency shall award a 5-year contract to the
26    expert or expert consulting firm so selected with

 

 

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1    Commission approval.
2    (b) The experts or expert consulting firms retained by the
3Agency shall, as appropriate, prepare procurement plans, and
4conduct a competitive procurement process as prescribed in
5Section 16-111.5 of the Public Utilities Act, to ensure
6adequate, reliable, affordable, efficient, and environmentally
7sustainable electric service at the lowest total cost over
8time, taking into account any benefits of price stability, for
9eligible retail customers of electric utilities that on
10December 31, 2005 provided electric service to at least
11100,000 customers in the State of Illinois, and for eligible
12Illinois retail customers of small multi-jurisdictional
13electric utilities that (i) on December 31, 2005 served less
14than 100,000 customers in Illinois and (ii) request a
15procurement plan for their Illinois jurisdictional load.
16    (c) Renewable portfolio standard.
17        (1)(A) The Agency shall develop a long-term renewable
18    resources procurement plan that shall include procurement
19    programs and competitive procurement events necessary to
20    meet the goals set forth in this subsection (c). The
21    initial long-term renewable resources procurement plan
22    shall be released for comment no later than 160 days after
23    June 1, 2017 (the effective date of Public Act 99-906).
24    The Agency shall review, and may revise on an expedited
25    basis, the long-term renewable resources procurement plan
26    at least every 2 years, which shall be conducted in

 

 

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1    conjunction with the procurement plan under Section
2    16-111.5 of the Public Utilities Act to the extent
3    practicable to minimize administrative expense. No later
4    than 120 days after the effective date of this amendatory
5    Act of the 102nd General Assembly, the Agency shall
6    release for comment a revision to the long-term renewable
7    resources procurement plan, updating elements of the most
8    recently approved plan as needed to comply with this
9    amendatory Act of the 102nd General Assembly, and any
10    long-term renewable resources procurement plan update
11    published by the Agency but not yet approved by the
12    Illinois Commerce Commission shall be withdrawn. The
13    long-term renewable resources procurement plans shall be
14    subject to review and approval by the Commission under
15    Section 16-111.5 of the Public Utilities Act.
16        (B) Subject to subparagraph (F) of this paragraph (1),
17    the long-term renewable resources procurement plan shall
18    attempt to meet the goals for procurement of renewable
19    energy credits at levels of at least the following overall
20    percentages: 13% by the 2017 delivery year; increasing by
21    at least 1.5% each delivery year thereafter to at least
22    25% by the 2025 delivery year; increasing by at least 3%
23    each delivery year thereafter to at least 40% by the 2030
24    delivery year, and continuing at no less than 40% for each
25    delivery year thereafter. The Agency shall attempt to
26    procure 50% by delivery year 2040. The Agency shall

 

 

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1    determine the annual increase between delivery year 2030
2    and delivery year 2040, if any, taking into account energy
3    demand, other energy resources, and other public policy
4    goals. In the event of a conflict between these goals and
5    the new wind and new photovoltaic procurement requirements
6    described in items (i) through (iii) of subparagraph (C)
7    of this paragraph (1), the long-term plan shall prioritize
8    compliance with the new wind and new photovoltaic
9    procurement requirements described in items (i) through
10    (iii) of subparagraph (C) of this paragraph (1) over the
11    annual percentage targets described in this subparagraph
12    (B). The Agency shall not comply with the annual
13    percentage targets described in this subparagraph (B) by
14    procuring renewable energy credits that are unlikely to
15    lead to the development of new renewable resources.
16        For the delivery year beginning June 1, 2017, the
17    procurement plan shall attempt to include, subject to the
18    prioritization outlined in this subparagraph (B),
19    cost-effective renewable energy resources equal to at
20    least 13% of each utility's load for eligible retail
21    customers and 13% of the applicable portion of each
22    utility's load for retail customers who are not eligible
23    retail customers, which applicable portion shall equal 50%
24    of the utility's load for retail customers who are not
25    eligible retail customers on February 28, 2017.
26        For the delivery year beginning June 1, 2018, the

 

 

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1    procurement plan shall attempt to include, subject to the
2    prioritization outlined in this subparagraph (B),
3    cost-effective renewable energy resources equal to at
4    least 14.5% of each utility's load for eligible retail
5    customers and 14.5% of the applicable portion of each
6    utility's load for retail customers who are not eligible
7    retail customers, which applicable portion shall equal 75%
8    of the utility's load for retail customers who are not
9    eligible retail customers on February 28, 2017.
10        For the delivery year beginning June 1, 2019, and for
11    each year thereafter, the procurement plans shall attempt
12    to include, subject to the prioritization outlined in this
13    subparagraph (B), cost-effective renewable energy
14    resources equal to a minimum percentage of each utility's
15    load for all retail customers as follows: 16% by June 1,
16    2019; increasing by 1.5% each year thereafter to 25% by
17    June 1, 2025; and 25% by June 1, 2026; increasing by at
18    least 3% each delivery year thereafter to at least 40% by
19    the 2030 delivery year, and continuing at no less than 40%
20    for each delivery year thereafter. The Agency shall
21    attempt to procure 50% by delivery year 2040. The Agency
22    shall determine the annual increase between delivery year
23    2030 and delivery year 2040, if any, taking into account
24    energy demand, other energy resources, and other public
25    policy goals.
26        For each delivery year, the Agency shall first

 

 

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1    recognize each utility's obligations for that delivery
2    year under existing contracts. Any renewable energy
3    credits under existing contracts, including renewable
4    energy credits as part of renewable energy resources,
5    shall be used to meet the goals set forth in this
6    subsection (c) for the delivery year.
7        (C) The long-term renewable resources procurement plan
8    described in subparagraph (A) of this paragraph (1) shall
9    include the procurement of renewable energy credits from
10    new projects in amounts equal to at least the following:
11            (i) 10,000,000 renewable energy credits delivered
12        annually by the end of the 2021 delivery year, and
13        increasing ratably to reach 45,000,000 renewable
14        energy credits delivered annually from new wind and
15        solar projects by the end of delivery year 2030 such
16        that the goals in subparagraph (B) of this paragraph
17        (1) are met entirely by procurements of renewable
18        energy credits from new wind and photovoltaic
19        projects. Of that amount, to the extent possible, the
20        Agency shall procure 45% from wind projects and 55%
21        from photovoltaic projects. Of the amount to be
22        procured from photovoltaic projects, the Agency shall
23        procure: at least 50% from solar photovoltaic projects
24        using the program outlined in subparagraph (K) of this
25        paragraph (1) from distributed renewable energy
26        generation devices or community renewable generation

 

 

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1        projects; at least 47% from utility-scale solar
2        projects; at least 3% from brownfield site
3        photovoltaic projects that are not community renewable
4        generation projects.
5            In developing the long-term renewable resources
6        procurement plan, the Agency shall consider other
7        approaches, in addition to competitive procurements,
8        that can be used to procure renewable energy credits
9        from brownfield site photovoltaic projects and thereby
10        help return blighted or contaminated land to
11        productive use while enhancing public health and the
12        well-being of Illinois residents, including those in
13        environmental justice communities, as defined using
14        existing methodologies and findings used by the Agency
15        and its Administrator in its Illinois Solar for All
16        Program.
17            (ii) In any given delivery year, if forecasted
18        expenses are less than the maximum budget available
19        under subparagraph (E) of this paragraph (1), the
20        Agency shall continue to procure new renewable energy
21        credits until that budget is exhausted in the manner
22        outlined in item (i) of this subparagraph (C).
23            (iii) For purposes of this Section:
24            "New wind projects" means wind renewable energy
25        facilities that are energized after June 1, 2017 for
26        the delivery year commencing June 1, 2017.

 

 

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1            "New photovoltaic projects" means photovoltaic
2        renewable energy facilities that are energized after
3        June 1, 2017. Photovoltaic projects developed under
4        Section 1-56 of this Act shall not apply towards the
5        new photovoltaic project requirements in this
6        subparagraph (C).
7            For purposes of calculating whether the Agency has
8        procured enough new wind and solar renewable energy
9        credits required by this subparagraph (C), renewable
10        energy facilities that have a multi-year renewable
11        energy credit delivery contract with the utility
12        through at least delivery year 2030 shall be
13        considered new, however no renewable energy credits
14        from contracts entered into before June 1, 2021 shall
15        be used to calculate whether the Agency has procured
16        the correct proportion of new wind and new solar
17        contracts described in this subparagraph (C) for
18        delivery year 2021 and thereafter.
19        (D) Renewable energy credits shall be cost effective.
20    For purposes of this subsection (c), "cost effective"
21    means that the costs of procuring renewable energy
22    resources do not cause the limit stated in subparagraph
23    (E) of this paragraph (1) to be exceeded and, for
24    renewable energy credits procured through a competitive
25    procurement event, do not exceed benchmarks based on
26    market prices for like products in the region. For

 

 

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1    purposes of this subsection (c), "like products" means
2    contracts for renewable energy credits from the same or
3    substantially similar technology, same or substantially
4    similar vintage (new or existing), the same or
5    substantially similar quantity, and the same or
6    substantially similar contract length and structure.
7    Benchmarks shall reflect development, financing, or
8    related costs resulting from requirements imposed through
9    other provisions of State law, including, but not limited
10    to, requirements in subparagraphs (P) and (Q) of this
11    paragraph (1) and the Renewable Energy Facilities
12    Agricultural Impact Mitigation Act. Confidential
13    benchmarks shall be developed by the procurement
14    administrator, in consultation with the Commission staff,
15    Agency staff, and the procurement monitor and shall be
16    subject to Commission review and approval. If price
17    benchmarks for like products in the region are not
18    available, the procurement administrator shall establish
19    price benchmarks based on publicly available data on
20    regional technology costs and expected current and future
21    regional energy prices. The benchmarks in this Section
22    shall not be used to curtail or otherwise reduce
23    contractual obligations entered into by or through the
24    Agency prior to June 1, 2017 (the effective date of Public
25    Act 99-906).
26        (E) For purposes of this subsection (c), the required

 

 

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1    procurement of cost-effective renewable energy resources
2    for a particular year commencing prior to June 1, 2017
3    shall be measured as a percentage of the actual amount of
4    electricity (megawatt-hours) supplied by the electric
5    utility to eligible retail customers in the delivery year
6    ending immediately prior to the procurement, and, for
7    delivery years commencing on and after June 1, 2017, the
8    required procurement of cost-effective renewable energy
9    resources for a particular year shall be measured as a
10    percentage of the actual amount of electricity
11    (megawatt-hours) delivered by the electric utility in the
12    delivery year ending immediately prior to the procurement,
13    to all retail customers in its service territory. For
14    purposes of this subsection (c), the amount paid per
15    kilowatthour means the total amount paid for electric
16    service expressed on a per kilowatthour basis. For
17    purposes of this subsection (c), the total amount paid for
18    electric service includes without limitation amounts paid
19    for supply, transmission, capacity, distribution,
20    surcharges, and add-on taxes.
21        Notwithstanding the requirements of this subsection
22    (c), the total of renewable energy resources procured
23    under the procurement plan for any single year shall be
24    subject to the limitations of this subparagraph (E). Such
25    procurement shall be reduced for all retail customers
26    based on the amount necessary to limit the annual

 

 

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1    estimated average net increase due to the costs of these
2    resources included in the amounts paid by eligible retail
3    customers in connection with electric service to no more
4    than 4.25% of the amount paid per kilowatthour by those
5    customers during the year ending May 31, 2009. To arrive
6    at a maximum dollar amount of renewable energy resources
7    to be procured for the particular delivery year, the
8    resulting per kilowatthour amount shall be applied to the
9    actual amount of kilowatthours of electricity delivered,
10    or applicable portion of such amount as specified in
11    paragraph (1) of this subsection (c), as applicable, by
12    the electric utility in the delivery year immediately
13    prior to the procurement to all retail customers in its
14    service territory. The calculations required by this
15    subparagraph (E) shall be made only once for each delivery
16    year at the time that the renewable energy resources are
17    procured. Once the determination as to the amount of
18    renewable energy resources to procure is made based on the
19    calculations set forth in this subparagraph (E) and the
20    contracts procuring those amounts are executed, no
21    subsequent rate impact determinations shall be made and no
22    adjustments to those contract amounts shall be allowed.
23    All costs incurred under such contracts shall be fully
24    recoverable by the electric utility as provided in this
25    Section.
26        (F) If the limitation on the amount of renewable

 

 

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1    energy resources procured in subparagraph (E) of this
2    paragraph (1) prevents the Agency from meeting all of the
3    goals in this subsection (c), the Agency's long-term plan
4    shall prioritize compliance with the requirements of this
5    subsection (c) regarding renewable energy credits in the
6    following order:
7            (i) renewable energy credits under existing
8        contractual obligations as of June 1, 2021;
9            (i-5) funding for the Illinois Solar for All
10        Program, as described in subparagraph (O) of this
11        paragraph (1);
12            (ii) renewable energy credits necessary to comply
13        with the new wind and new photovoltaic procurement
14        requirements described in items (i) through (iii) of
15        subparagraph (C) of this paragraph (1); and
16            (iii) renewable energy credits necessary to meet
17        the remaining requirements of this subsection (c).
18        (G) The following provisions shall apply to the
19    Agency's procurement of renewable energy credits under
20    this subsection (c):
21            (i) Notwithstanding whether a long-term renewable
22        resources procurement plan has been approved, the
23        Agency shall conduct an initial forward procurement
24        for renewable energy credits from new utility-scale
25        wind projects within 160 days after June 1, 2017 (the
26        effective date of Public Act 99-906). For the purposes

 

 

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1        of this initial forward procurement, the Agency shall
2        solicit 15-year contracts for delivery of 1,000,000
3        renewable energy credits delivered annually from new
4        utility-scale wind projects to begin delivery on June
5        1, 2019, if available, but not later than June 1, 2021,
6        unless the project has delays in the establishment of
7        an operating interconnection with the applicable
8        transmission or distribution system as a result of the
9        actions or inactions of the transmission or
10        distribution provider, or other causes for force
11        majeure as outlined in the procurement contract, in
12        which case, not later than June 1, 2022. Payments to
13        suppliers of renewable energy credits shall commence
14        upon delivery. Renewable energy credits procured under
15        this initial procurement shall be included in the
16        Agency's long-term plan and shall apply to all
17        renewable energy goals in this subsection (c).
18            (ii) Notwithstanding whether a long-term renewable
19        resources procurement plan has been approved, the
20        Agency shall conduct an initial forward procurement
21        for renewable energy credits from new utility-scale
22        solar projects and brownfield site photovoltaic
23        projects within one year after June 1, 2017 (the
24        effective date of Public Act 99-906). For the purposes
25        of this initial forward procurement, the Agency shall
26        solicit 15-year contracts for delivery of 1,000,000

 

 

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1        renewable energy credits delivered annually from new
2        utility-scale solar projects and brownfield site
3        photovoltaic projects to begin delivery on June 1,
4        2019, if available, but not later than June 1, 2021,
5        unless the project has delays in the establishment of
6        an operating interconnection with the applicable
7        transmission or distribution system as a result of the
8        actions or inactions of the transmission or
9        distribution provider, or other causes for force
10        majeure as outlined in the procurement contract, in
11        which case, not later than June 1, 2022. The Agency may
12        structure this initial procurement in one or more
13        discrete procurement events. Payments to suppliers of
14        renewable energy credits shall commence upon delivery.
15        Renewable energy credits procured under this initial
16        procurement shall be included in the Agency's
17        long-term plan and shall apply to all renewable energy
18        goals in this subsection (c).
19            (iii) Notwithstanding whether the Commission has
20        approved the periodic long-term renewable resources
21        procurement plan revision described in Section
22        16-111.5 of the Public Utilities Act, the Agency shall
23        conduct at least one subsequent forward procurement
24        for renewable energy credits from new utility-scale
25        wind projects, new utility-scale solar projects, and
26        new brownfield site photovoltaic projects within 240

 

 

HB4731- 23 -LRB102 24633 AMQ 33871 b

1        days after the effective date of this amendatory Act
2        of the 102nd General Assembly in quantities necessary
3        to meet the requirements of subparagraph (C) of this
4        paragraph (1) through the delivery year beginning June
5        1, 2021.
6            (iv) Notwithstanding whether the Commission has
7        approved the periodic long-term renewable resources
8        procurement plan revision described in Section
9        16-111.5 of the Public Utilities Act, the Agency shall
10        open capacity for each category in the Adjustable
11        Block program within 90 days after the effective date
12        of this amendatory Act of the 102nd General Assembly
13        manner:
14                (1) The Agency shall open the first block of
15            annual capacity for the category described in item
16            (i) of subparagraph (K) of this paragraph (1). The
17            first block of annual capacity for item (i) shall
18            be for at least 75 megawatts of total nameplate
19            capacity. The price of the renewable energy credit
20            for this block of capacity shall be 4% less than
21            the price of the last open block in this category.
22            Projects on a waitlist shall be awarded contracts
23            first in the order in which they appear on the
24            waitlist. Notwithstanding anything to the
25            contrary, for those renewable energy credits that
26            qualify and are procured under this subitem (1) of

 

 

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1            this item (iv), the renewable energy credit
2            delivery contract value shall be paid in full,
3            based on the estimated generation during the first
4            15 years of operation, by the contracting
5            utilities at the time that the facility producing
6            the renewable energy credits is interconnected at
7            the distribution system level of the utility and
8            verified as energized and in compliance by the
9            Program Administrator. The electric utility shall
10            receive and retire all renewable energy credits
11            generated by the project for the first 15 years of
12            operation. Renewable energy credits generated by
13            the project thereafter shall not be transferred
14            under the renewable energy credit delivery
15            contract with the counterparty electric utility.
16                (2) The Agency shall open the first block of
17            annual capacity for the category described in item
18            (ii) of subparagraph (K) of this paragraph (1).
19            The first block of annual capacity for item (ii)
20            shall be for at least 75 megawatts of total
21            nameplate capacity.
22                    (A) The price of the renewable energy
23                credit for any project on a waitlist for this
24                category before the opening of this block
25                shall be 4% less than the price of the last
26                open block in this category. Projects on the

 

 

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1                waitlist shall be awarded contracts first in
2                the order in which they appear on the
3                waitlist. Any projects that are less than or
4                equal to 25 kilowatts in size on the waitlist
5                for this capacity shall be moved to the
6                waitlist for paragraph (1) of this item (iv).
7                Notwithstanding anything to the contrary,
8                projects less than or equal to 25 kilowatts on
9                the waitlist for this capacity that are moved
10                to the waitlist for paragraph (1) of this item
11                (iv) shall not be required to be in compliance
12                with the requirements of subparagraph (Q) of
13                paragraph (1) of this subsection (c) projects
14                that were on the waitlist prior to opening of
15                this block shall not be required to be in
16                compliance with the requirements of
17                subparagraph (Q) of this paragraph (1) of this
18                subsection (c). Notwithstanding anything to
19                the contrary, for those renewable energy
20                credits procured from projects that were on
21                the waitlist for this category before the
22                opening of this block 20% of the renewable
23                energy credit delivery contract value, based
24                on the estimated generation during the first
25                15 years of operation, shall be paid by the
26                contracting utilities at the time that the

 

 

HB4731- 26 -LRB102 24633 AMQ 33871 b

1                facility producing the renewable energy
2                credits is interconnected at the distribution
3                system level of the utility and verified as
4                energized by the Program Administrator. The
5                remaining portion shall be paid ratably over
6                the subsequent 4-year period. The electric
7                utility shall receive and retire all renewable
8                energy credits generated by the project during
9                the first 15 years of operation. Renewable
10                energy credits generated by the project
11                thereafter shall not be transferred under the
12                renewable energy credit delivery contract with
13                the counterparty electric utility.
14                    (B) The price of renewable energy credits
15                for any project not on the waitlist for this
16                category before the opening of the block shall
17                be determined and published by the Agency.
18                Projects not on a waitlist as of the opening
19                of this block shall be subject to the
20                requirements of subparagraph (Q) of this
21                paragraph (1), as applicable. Projects not on
22                a waitlist as of the opening of this block
23                shall be subject to the contract provisions
24                outlined in item (iii) of subparagraph (L) of
25                this paragraph (1). The Agency shall strive to
26                publish updated prices and an updated

 

 

HB4731- 27 -LRB102 24633 AMQ 33871 b

1                renewable energy credit delivery contract as
2                quickly as possible.
3                (3) For opening the first 2 blocks of annual
4            capacity for projects participating in item (iii)
5            of subparagraph (K) of paragraph (1) of subsection
6            (c), projects shall be selected exclusively from
7            those projects on the ordinal waitlists of
8            community renewable generation projects
9            established by the Agency based on the status of
10            those ordinal waitlists as of December 31, 2020,
11            and only those projects previously determined to
12            be eligible for the Agency's April 2019 community
13            solar project selection process.
14                The first 2 blocks of annual capacity for item
15            (iii) shall be for 250 megawatts of total
16            nameplate capacity, with both blocks opening
17            simultaneously under the schedule outlined in the
18            paragraphs below. Projects shall be selected as
19            follows:
20                    (A) The geographic balance of selected
21                projects shall follow the Group classification
22                found in the Agency's Revised Long-Term
23                Renewable Resources Procurement Plan, with 70%
24                of capacity allocated to projects on the Group
25                B waitlist and 30% of capacity allocated to
26                projects on the Group A waitlist.

 

 

HB4731- 28 -LRB102 24633 AMQ 33871 b

1                    (B) Contract awards for waitlisted
2                projects shall be allocated proportionate to
3                the total nameplate capacity amount across
4                both ordinal waitlists associated with that
5                applicant firm or its affiliates, subject to
6                the following conditions.
7                        (i) Each applicant firm having a
8                    waitlisted project eligible for selection
9                    shall receive no less than 500 kilowatts
10                    in awarded capacity across all groups, and
11                    no approved vendor may receive more than
12                    20% of each Group's waitlist allocation.
13                        (ii) Each applicant firm, upon
14                    receiving an award of program capacity
15                    proportionate to its waitlisted capacity,
16                    may then determine which waitlisted
17                    projects it chooses to be selected for a
18                    contract award up to that capacity amount.
19                        (iii) Assuming all other program
20                    requirements are met, applicant firms may
21                    adjust the nameplate capacity of applicant
22                    projects without losing waitlist
23                    eligibility, so long as no project is
24                    greater than 2,000 kilowatts in size.
25                        (iv) Assuming all other program
26                    requirements are met, applicant firms may

 

 

HB4731- 29 -LRB102 24633 AMQ 33871 b

1                    adjust the expected production associated
2                    with applicant projects, subject to
3                    verification by the Program Administrator.
4                    (C) After a review of affiliate
5                information and the current ordinal waitlists,
6                the Agency shall announce the nameplate
7                capacity award amounts associated with
8                applicant firms no later than 90 days after
9                the effective date of this amendatory Act of
10                the 102nd General Assembly.
11                    (D) Applicant firms shall submit their
12                portfolio of projects used to satisfy those
13                contract awards no less than 90 days after the
14                Agency's announcement. The total nameplate
15                capacity of all projects used to satisfy that
16                portfolio shall be no greater than the
17                Agency's nameplate capacity award amount
18                associated with that applicant firm. An
19                applicant firm may decline, in whole or in
20                part, its nameplate capacity award without
21                penalty, with such unmet capacity rolled over
22                to the next block opening for project
23                selection under item (iii) of subparagraph (K)
24                of this subsection (c). Any projects not
25                included in an applicant firm's portfolio may
26                reapply without prejudice upon the next block

 

 

HB4731- 30 -LRB102 24633 AMQ 33871 b

1                reopening for project selection under item
2                (iii) of subparagraph (K) of this subsection
3                (c).
4                    (E) The renewable energy credit delivery
5                contract shall be subject to the contract and
6                payment terms outlined in item (iv) of
7                subparagraph (L) of this subsection (c).
8                Contract instruments used for this
9                subparagraph shall contain the following
10                terms:
11                        (i) Renewable energy credit prices
12                    shall be fixed, without further adjustment
13                    under any other provision of this Act or
14                    for any other reason, at 10% lower than
15                    prices applicable to the last open block
16                    for this category, inclusive of any adders
17                    available for achieving a minimum of 50%
18                    of subscribers to the project's nameplate
19                    capacity being residential or small
20                    commercial customers with subscriptions of
21                    below 25 kilowatts in size;
22                        (ii) A requirement that a minimum of
23                    50% of subscribers to the project's
24                    nameplate capacity be residential or small
25                    commercial customers with subscriptions of
26                    below 25 kilowatts in size;

 

 

HB4731- 31 -LRB102 24633 AMQ 33871 b

1                        (iii) Permission for the ability of a
2                    contract holder to substitute projects
3                    with other waitlisted projects without
4                    penalty should a project receive a
5                    non-binding estimate of costs to construct
6                    the interconnection facilities and any
7                    required distribution upgrades associated
8                    with that project of greater than 30 cents
9                    per watt AC of that project's nameplate
10                    capacity. In developing the applicable
11                    contract instrument, the Agency may
12                    consider whether other circumstances
13                    outside of the control of the applicant
14                    firm should also warrant project
15                    substitution rights.
16                    The Agency shall publish a finalized
17                updated renewable energy credit delivery
18                contract developed consistent with these terms
19                and conditions no less than 30 days before
20                applicant firms must submit their portfolio of
21                projects pursuant to item (D).
22                    (F) To be eligible for an award, the
23                applicant firm shall certify that not less
24                than prevailing wage, as determined pursuant
25                to the Illinois Prevailing Wage Act, was or
26                will be paid to employees who are engaged in

 

 

HB4731- 32 -LRB102 24633 AMQ 33871 b

1                construction activities associated with a
2                selected project.
3                (4) The Agency shall open the first block of
4            annual capacity for the category described in item
5            (iv) of subparagraph (K) of this paragraph (1).
6            The first block of annual capacity for item (iv)
7            shall be for at least 50 megawatts of total
8            nameplate capacity. Renewable energy credit prices
9            shall be fixed, without further adjustment under
10            any other provision of this Act or for any other
11            reason, at the price in the last open block in the
12            category described in item (ii) of subparagraph
13            (K) of this paragraph (1). Pricing for future
14            blocks of annual capacity for this category may be
15            adjusted in the Agency's second revision to its
16            Long-Term Renewable Resources Procurement Plan.
17            Projects in this category shall be subject to the
18            contract terms outlined in item (iv) of
19            subparagraph (L) of this paragraph (1).
20                (5) The Agency shall open the equivalent of 2
21            years of annual capacity for the category
22            described in item (v) of subparagraph (K) of this
23            paragraph (1). The first block of annual capacity
24            for item (v) shall be for at least 10 megawatts of
25            total nameplate capacity. Notwithstanding the
26            provisions of item (v) of subparagraph (K) of this

 

 

HB4731- 33 -LRB102 24633 AMQ 33871 b

1            paragraph (1), for the purpose of this initial
2            block, the agency shall accept new project
3            applications intended to increase the diversity of
4            areas hosting community solar projects, the
5            business models of projects, and the size of
6            projects, as described by the Agency in its
7            long-term renewable resources procurement plan
8            that is approved as of the effective date of this
9            amendatory Act of the 102nd General Assembly.
10            Projects in this category shall be subject to the
11            contract terms outlined in item (iii) of
12            subsection (L) of this paragraph (1).
13                (6) The Agency shall open the first blocks of
14            annual capacity for the category described in item
15            (vi) of subparagraph (K) of this paragraph (1),
16            with allocations of capacity within the block
17            generally matching the historical share of block
18            capacity allocated between the category described
19            in items (i) and (ii) of subparagraph (K) of this
20            paragraph (1). The first two blocks of annual
21            capacity for item (vi) shall be for at least 75
22            megawatts of total nameplate capacity. The price
23            of renewable energy credits for the blocks of
24            capacity shall be 4% less than the price of the
25            last open blocks in the categories described in
26            items (i) and (ii) of subparagraph (K) of this

 

 

HB4731- 34 -LRB102 24633 AMQ 33871 b

1            paragraph (1). Pricing for future blocks of annual
2            capacity for this category may be adjusted in the
3            Agency's second revision to its Long-Term
4            Renewable Resources Procurement Plan. Projects in
5            this category shall be subject to the applicable
6            contract terms outlined in items (ii) and (iii) of
7            subparagraph (L) of this paragraph (1).
8            (v) Upon the effective date of this amendatory Act
9        of the 102nd General Assembly, for all competitive
10        procurements and any procurements of renewable energy
11        credit from new utility-scale wind and new
12        utility-scale photovoltaic projects, the Agency shall
13        procure indexed renewable energy credits and direct
14        respondents to offer a strike price.
15                (1) The purchase price of the indexed
16            renewable energy credit payment shall be
17            calculated for each settlement period. That
18            payment, for any settlement period, shall be equal
19            to the difference resulting from subtracting the
20            strike price from the index price for that
21            settlement period. If this difference results in a
22            negative number, the indexed REC counterparty
23            shall owe the seller the absolute value multiplied
24            by the quantity of energy produced in the relevant
25            settlement period. If this difference results in a
26            positive number, the seller shall owe the indexed

 

 

HB4731- 35 -LRB102 24633 AMQ 33871 b

1            REC counterparty this amount multiplied by the
2            quantity of energy produced in the relevant
3            settlement period.
4                (2) Parties shall cash settle every month,
5            summing up all settlements (both positive and
6            negative, if applicable) for the prior month.
7                (3) To ensure funding in the annual budget
8            established under subparagraph (E) for indexed
9            renewable energy credit procurements for each year
10            of the term of such contracts, which must have a
11            minimum tenure of 20 calendar years, the
12            procurement administrator, Agency, Commission
13            staff, and procurement monitor shall quantify the
14            annual cost of the contract by utilizing an
15            industry-standard, third-party forward price curve
16            for energy at the appropriate hub or load zone,
17            including the estimated magnitude and timing of
18            the price effects related to federal carbon
19            controls. Each forward price curve shall contain a
20            specific value of the forecasted market price of
21            electricity for each annual delivery year of the
22            contract. For procurement planning purposes, the
23            impact on the annual budget for the cost of
24            indexed renewable energy credits for each delivery
25            year shall be determined as the expected annual
26            contract expenditure for that year, equaling the

 

 

HB4731- 36 -LRB102 24633 AMQ 33871 b

1            difference between (i) the sum across all relevant
2            contracts of the applicable strike price
3            multiplied by contract quantity and (ii) the sum
4            across all relevant contracts of the forward price
5            curve for the applicable load zone for that year
6            multiplied by contract quantity. The contracting
7            utility shall not assume an obligation in excess
8            of the estimated annual cost of the contracts for
9            indexed renewable energy credits. Forward curves
10            shall be revised on an annual basis as updated
11            forward price curves are released and filed with
12            the Commission in the proceeding approving the
13            Agency's most recent long-term renewable resources
14            procurement plan. If the expected contract spend
15            is higher or lower than the total quantity of
16            contracts multiplied by the forward price curve
17            value for that year, the forward price curve shall
18            be updated by the procurement administrator, in
19            consultation with the Agency, Commission staff,
20            and procurement monitors, using then-currently
21            available price forecast data and additional
22            budget dollars shall be obligated or reobligated
23            as appropriate.
24                (4) To ensure that indexed renewable energy
25            credit prices remain predictable and affordable,
26            the Agency may consider the institution of a price

 

 

HB4731- 37 -LRB102 24633 AMQ 33871 b

1            collar on REC prices paid under indexed renewable
2            energy credit procurements establishing floor and
3            ceiling REC prices applicable to indexed REC
4            contract prices. Any price collars applicable to
5            indexed REC procurements shall be proposed by the
6            Agency through its long-term renewable resources
7            procurement plan.
8            (vi) All procurements under this subparagraph (G)
9        shall comply with the geographic requirements in
10        subparagraph (I) of this paragraph (1) and shall
11        follow the procurement processes and procedures
12        described in this Section and Section 16-111.5 of the
13        Public Utilities Act to the extent practicable, and
14        these processes and procedures may be expedited to
15        accommodate the schedule established by this
16        subparagraph (G).
17        (H) The procurement of renewable energy resources for
18    a given delivery year shall be reduced as described in
19    this subparagraph (H) if an alternative retail electric
20    supplier meets the requirements described in this
21    subparagraph (H).
22            (i) Within 45 days after June 1, 2017 (the
23        effective date of Public Act 99-906), an alternative
24        retail electric supplier or its successor shall submit
25        an informational filing to the Illinois Commerce
26        Commission certifying that, as of December 31, 2015,

 

 

HB4731- 38 -LRB102 24633 AMQ 33871 b

1        the alternative retail electric supplier owned one or
2        more electric generating facilities that generates
3        renewable energy resources as defined in Section 1-10
4        of this Act, provided that such facilities are not
5        powered by wind or photovoltaics, and the facilities
6        generate one renewable energy credit for each
7        megawatthour of energy produced from the facility.
8            The informational filing shall identify each
9        facility that was eligible to satisfy the alternative
10        retail electric supplier's obligations under Section
11        16-115D of the Public Utilities Act as described in
12        this item (i).
13            (ii) For a given delivery year, the alternative
14        retail electric supplier may elect to supply its
15        retail customers with renewable energy credits from
16        the facility or facilities described in item (i) of
17        this subparagraph (H) that continue to be owned by the
18        alternative retail electric supplier.
19            (iii) The alternative retail electric supplier
20        shall notify the Agency and the applicable utility, no
21        later than February 28 of the year preceding the
22        applicable delivery year or 15 days after June 1, 2017
23        (the effective date of Public Act 99-906), whichever
24        is later, of its election under item (ii) of this
25        subparagraph (H) to supply renewable energy credits to
26        retail customers of the utility. Such election shall

 

 

HB4731- 39 -LRB102 24633 AMQ 33871 b

1        identify the amount of renewable energy credits to be
2        supplied by the alternative retail electric supplier
3        to the utility's retail customers and the source of
4        the renewable energy credits identified in the
5        informational filing as described in item (i) of this
6        subparagraph (H), subject to the following
7        limitations:
8                For the delivery year beginning June 1, 2018,
9            the maximum amount of renewable energy credits to
10            be supplied by an alternative retail electric
11            supplier under this subparagraph (H) shall be 68%
12            multiplied by 25% multiplied by 14.5% multiplied
13            by the amount of metered electricity
14            (megawatt-hours) delivered by the alternative
15            retail electric supplier to Illinois retail
16            customers during the delivery year ending May 31,
17            2016.
18                For delivery years beginning June 1, 2019 and
19            each year thereafter, the maximum amount of
20            renewable energy credits to be supplied by an
21            alternative retail electric supplier under this
22            subparagraph (H) shall be 68% multiplied by 50%
23            multiplied by 16% multiplied by the amount of
24            metered electricity (megawatt-hours) delivered by
25            the alternative retail electric supplier to
26            Illinois retail customers during the delivery year

 

 

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1            ending May 31, 2016, provided that the 16% value
2            shall increase by 1.5% each delivery year
3            thereafter to 25% by the delivery year beginning
4            June 1, 2025, and thereafter the 25% value shall
5            apply to each delivery year.
6            For each delivery year, the total amount of
7        renewable energy credits supplied by all alternative
8        retail electric suppliers under this subparagraph (H)
9        shall not exceed 9% of the Illinois target renewable
10        energy credit quantity. The Illinois target renewable
11        energy credit quantity for the delivery year beginning
12        June 1, 2018 is 14.5% multiplied by the total amount of
13        metered electricity (megawatt-hours) delivered in the
14        delivery year immediately preceding that delivery
15        year, provided that the 14.5% shall increase by 1.5%
16        each delivery year thereafter to 25% by the delivery
17        year beginning June 1, 2025, and thereafter the 25%
18        value shall apply to each delivery year.
19            If the requirements set forth in items (i) through
20        (iii) of this subparagraph (H) are met, the charges
21        that would otherwise be applicable to the retail
22        customers of the alternative retail electric supplier
23        under paragraph (6) of this subsection (c) for the
24        applicable delivery year shall be reduced by the ratio
25        of the quantity of renewable energy credits supplied
26        by the alternative retail electric supplier compared

 

 

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1        to that supplier's target renewable energy credit
2        quantity. The supplier's target renewable energy
3        credit quantity for the delivery year beginning June
4        1, 2018 is 14.5% multiplied by the total amount of
5        metered electricity (megawatt-hours) delivered by the
6        alternative retail supplier in that delivery year,
7        provided that the 14.5% shall increase by 1.5% each
8        delivery year thereafter to 25% by the delivery year
9        beginning June 1, 2025, and thereafter the 25% value
10        shall apply to each delivery year.
11            On or before April 1 of each year, the Agency shall
12        annually publish a report on its website that
13        identifies the aggregate amount of renewable energy
14        credits supplied by alternative retail electric
15        suppliers under this subparagraph (H).
16        (I) The Agency shall design its long-term renewable
17    energy procurement plan to maximize the State's interest
18    in the health, safety, and welfare of its residents,
19    including but not limited to minimizing sulfur dioxide,
20    nitrogen oxide, particulate matter and other pollution
21    that adversely affects public health in this State,
22    increasing fuel and resource diversity in this State,
23    enhancing the reliability and resiliency of the
24    electricity distribution system in this State, meeting
25    goals to limit carbon dioxide emissions under federal or
26    State law, and contributing to a cleaner and healthier

 

 

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1    environment for the citizens of this State. In order to
2    further these legislative purposes, renewable energy
3    credits shall be eligible to be counted toward the
4    renewable energy requirements of this subsection (c) if
5    they are generated from facilities located in this State.
6    The Agency may qualify renewable energy credits from
7    facilities located in states adjacent to Illinois or
8    renewable energy credits associated with the electricity
9    generated by a utility-scale wind energy facility or
10    utility-scale photovoltaic facility and transmitted by a
11    qualifying direct current project described in subsection
12    (b-5) of Section 8-406 of the Public Utilities Act to a
13    delivery point on the electric transmission grid located
14    in this State or a state adjacent to Illinois, if the
15    generator demonstrates and the Agency determines that the
16    operation of such facility or facilities will help promote
17    the State's interest in the health, safety, and welfare of
18    its residents based on the public interest criteria
19    described above. For the purposes of this Section,
20    renewable resources that are delivered via a high voltage
21    direct current converter station located in Illinois shall
22    be deemed generated in Illinois at the time and location
23    the energy is converted to alternating current by the high
24    voltage direct current converter station if the high
25    voltage direct current transmission line: (i) after the
26    effective date of this amendatory Act of the 102nd General

 

 

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1    Assembly, was constructed with a project labor agreement;
2    (ii) is capable of transmitting electricity at 525kv;
3    (iii) has an Illinois converter station located and
4    interconnected in the region of the PJM Interconnection,
5    LLC; (iv) does not operate as a public utility; and (v) if
6    the high voltage direct current transmission line was
7    energized after June 1, 2023. To ensure that the public
8    interest criteria are applied to the procurement and given
9    full effect, the Agency's long-term procurement plan shall
10    describe in detail how each public interest factor shall
11    be considered and weighted for facilities located in
12    states adjacent to Illinois.
13        (J) In order to promote the competitive development of
14    renewable energy resources in furtherance of the State's
15    interest in the health, safety, and welfare of its
16    residents, renewable energy credits shall not be eligible
17    to be counted toward the renewable energy requirements of
18    this subsection (c) if they are sourced from a generating
19    unit whose costs were being recovered through rates
20    regulated by this State or any other state or states on or
21    after January 1, 2017. Each contract executed to purchase
22    renewable energy credits under this subsection (c) shall
23    provide for the contract's termination if the costs of the
24    generating unit supplying the renewable energy credits
25    subsequently begin to be recovered through rates regulated
26    by this State or any other state or states; and each

 

 

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1    contract shall further provide that, in that event, the
2    supplier of the credits must return 110% of all payments
3    received under the contract. Amounts returned under the
4    requirements of this subparagraph (J) shall be retained by
5    the utility and all of these amounts shall be used for the
6    procurement of additional renewable energy credits from
7    new wind or new photovoltaic resources as defined in this
8    subsection (c). The long-term plan shall provide that
9    these renewable energy credits shall be procured in the
10    next procurement event.
11        Notwithstanding the limitations of this subparagraph
12    (J), renewable energy credits sourced from generating
13    units that are constructed, purchased, owned, or leased by
14    an electric utility as part of an approved project,
15    program, or pilot under Section 1-56 of this Act shall be
16    eligible to be counted toward the renewable energy
17    requirements of this subsection (c), regardless of how the
18    costs of these units are recovered. As long as a
19    generating unit or an identifiable portion of a generating
20    unit has not had and does not have its costs recovered
21    through rates regulated by this State or any other state,
22    HVDC renewable energy credits associated with that
23    generating unit or identifiable portion thereof shall be
24    eligible to be counted toward the renewable energy
25    requirements of this subsection (c).
26        (K) The long-term renewable resources procurement plan

 

 

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1    developed by the Agency in accordance with subparagraph
2    (A) of this paragraph (1) shall include an Adjustable
3    Block program for the procurement of renewable energy
4    credits from new photovoltaic projects that are
5    distributed renewable energy generation devices or new
6    photovoltaic community renewable generation projects. The
7    Adjustable Block program shall be generally designed to
8    provide for the steady, predictable, and sustainable
9    growth of new solar photovoltaic development in Illinois.
10    To this end, the Adjustable Block program shall provide a
11    transparent annual schedule of prices and quantities to
12    enable the photovoltaic market to scale up and for
13    renewable energy credit prices to adjust at a predictable
14    rate over time. The prices set by the Adjustable Block
15    program can be reflected as a set value or as the product
16    of a formula.
17        The Adjustable Block program shall include for each
18    category of eligible projects for each delivery year: a
19    single block of nameplate capacity, a price for renewable
20    energy credits within that block, and the terms and
21    conditions for securing a spot on a waitlist once the
22    block is fully committed or reserved. Except as outlined
23    below, the waitlist of projects in a given year will carry
24    over to apply to the subsequent year when another block is
25    opened. Only projects energized on or after June 1, 2017
26    shall be eligible for the Adjustable Block program. For

 

 

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1    each category for each delivery year the Agency shall
2    determine the amount of generation capacity in each block,
3    and the purchase price for each block, provided that the
4    purchase price provided and the total amount of generation
5    in all blocks for all categories shall be sufficient to
6    meet the goals in this subsection (c). The Agency shall
7    strive to issue a single block sized to provide for
8    stability and market growth. The Agency shall establish
9    program eligibility requirements that ensure that projects
10    that enter the program are sufficiently mature to indicate
11    a demonstrable path to completion. The Agency may
12    periodically review its prior decisions establishing the
13    amount of generation capacity in each block, and the
14    purchase price for each block, and may propose, on an
15    expedited basis, changes to these previously set values,
16    including but not limited to redistributing these amounts
17    and the available funds as necessary and appropriate,
18    subject to Commission approval as part of the periodic
19    plan revision process described in Section 16-111.5 of the
20    Public Utilities Act. The Agency may define different
21    block sizes, purchase prices, or other distinct terms and
22    conditions for projects located in different utility
23    service territories if the Agency deems it necessary to
24    meet the goals in this subsection (c).
25        The Adjustable Block program shall include the
26    following categories in at least the following amounts:

 

 

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1            (i) At least 20% from distributed renewable energy
2        generation devices with a nameplate capacity of no
3        more than 25 kilowatts.
4            (ii) At least 20% from distributed renewable
5        energy generation devices with a nameplate capacity of
6        more than 25 kilowatts and no more than 5,000
7        kilowatts. The Agency may create sub-categories within
8        this category to account for the differences between
9        projects for small commercial customers, large
10        commercial customers, and public or non-profit
11        customers.
12            (iii) At least 30% from photovoltaic community
13        renewable generation projects. Capacity for this
14        category for the first 2 delivery years after the
15        effective date of this amendatory Act of the 102nd
16        General Assembly shall be allocated to waitlist
17        projects as provided in paragraph (3) of item (iv) of
18        subparagraph (G). Starting in the third delivery year
19        after the effective date of this amendatory Act of the
20        102nd General Assembly or earlier if the Agency
21        determines there is additional capacity needed for to
22        meet previous delivery year requirements, the
23        following shall apply:
24                (1) the Agency shall select projects on a
25            first-come, first-serve basis, however the Agency
26            may suggest additional methods to prioritize

 

 

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1            projects that are submitted at the same time;
2                (2) projects shall have subscriptions of 25 kW
3            or less for at least 50% of the facility's
4            nameplate capacity and the Agency shall price the
5            renewable energy credits with that as a factor;
6                (3) projects shall not be colocated with one
7            or more other community renewable generation
8            projects, as defined in the Agency's first revised
9            long-term renewable resources procurement plan
10            approved by the Commission on February 18, 2020,
11            such that the aggregate nameplate capacity exceeds
12            5,000 kilowatts; and
13                (4) projects greater than 2 MW may not apply
14            until after the approval of the Agency's revised
15            Long-Term Renewable Resources Procurement Plan
16            after the effective date of this amendatory Act of
17            the 102nd General Assembly.
18            (iv) At least 15% from distributed renewable
19        generation devices or photovoltaic community renewable
20        generation projects installed at public schools. The
21        Agency may create subcategories within this category
22        to account for the differences between project size or
23        location. Projects located within environmental
24        justice communities or within Organizational Units
25        that fall within Tier 1 or Tier 2 shall be given
26        priority. Each of the Agency's periodic updates to its

 

 

HB4731- 49 -LRB102 24633 AMQ 33871 b

1        long-term renewable resources procurement plan to
2        incorporate the procurement described in this
3        subparagraph (iv) shall also include the proposed
4        quantities or blocks, pricing, and contract terms
5        applicable to the procurement as indicated herein. In
6        each such update and procurement, the Agency shall set
7        the renewable energy credit price and establish
8        payment terms for the renewable energy credits
9        procured pursuant to this subparagraph (iv) that make
10        it feasible and affordable for public schools to
11        install photovoltaic distributed renewable energy
12        devices on their premises, including, but not limited
13        to, those public schools subject to the prioritization
14        provisions of this subparagraph. For the purposes of
15        this item (iv):
16            "Environmental Justice Community" shall have the
17        same meaning set forth in the Agency's long-term
18        renewable resources procurement plan;
19            "Organization Unit", "Tier 1" and "Tier 2" shall
20        have the meanings set for in Section 18-8.15 of the
21        School Code;
22            "Public schools" shall have the meaning set forth
23        in Section 1-3 of the School Code.
24            (v) At least 5% from community-driven community
25        solar projects intended to provide more direct and
26        tangible connection and benefits to the communities

 

 

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1        which they serve or in which they operate and,
2        additionally, to increase the variety of community
3        solar locations, models, and options in Illinois. As
4        part of its long-term renewable resources procurement
5        plan, the Agency shall develop selection criteria for
6        projects participating in this category. Nothing in
7        this Section shall preclude the Agency from creating a
8        selection process that maximizes community ownership
9        and community benefits in selecting projects to
10        receive renewable energy credits. Selection criteria
11        shall include:
12                (1) community ownership or community
13            wealth-building;
14                (2) additional direct and indirect community
15            benefit, beyond project participation as a
16            subscriber, including, but not limited to,
17            economic, environmental, social, cultural, and
18            physical benefits;
19                (3) meaningful involvement in project
20            organization and development by community members
21            or nonprofit organizations or public entities
22            located in or serving the community;
23                (4) engagement in project operations and
24            management by nonprofit organizations, public
25            entities, or community members; and
26                (5) whether a project is developed in response

 

 

HB4731- 51 -LRB102 24633 AMQ 33871 b

1            to a site-specific RFP developed by community
2            members or a nonprofit organization or public
3            entity located in or serving the community.
4            Selection criteria may also prioritize projects
5        that:
6                (1) are developed in collaboration with or to
7            provide complementary opportunities for the Clean
8            Jobs Workforce Network Program, the Illinois
9            Climate Works Preapprenticeship Program, the
10            Returning Residents Clean Jobs Training Program,
11            the Clean Energy Contractor Incubator Program, or
12            the Clean Energy Primes Contractor Accelerator
13            Program;
14                (2) increase the diversity of locations of
15            community solar projects in Illinois, including by
16            locating in urban areas and population centers;
17                (3) are located in Equity Investment Eligible
18            Communities;
19                (4) are not greenfield projects;
20                (5) serve only local subscribers;
21                (6) have a nameplate capacity that does not
22            exceed 500 kW;
23                (7) are developed by an equity eligible
24            contractor; or
25                (8) otherwise meaningfully advance the goals
26            of providing more direct and tangible connection

 

 

HB4731- 52 -LRB102 24633 AMQ 33871 b

1            and benefits to the communities which they serve
2            or in which they operate and increasing the
3            variety of community solar locations, models, and
4            options in Illinois.
5            For the purposes of this item (v):
6            "Community" means a social unit in which people
7        come together regularly to effect change; a social
8        unit in which participants are marked by a cooperative
9        spirit, a common purpose, or shared interests or
10        characteristics; or a space understood by its
11        residents to be delineated through geographic
12        boundaries or landmarks.
13            "Community benefit" means a range of services and
14        activities that provide affirmative, economic,
15        environmental, social, cultural, or physical value to
16        a community; or a mechanism that enables economic
17        development, high-quality employment, and education
18        opportunities for local workers and residents, or
19        formal monitoring and oversight structures such that
20        community members may ensure that those services and
21        activities respond to local knowledge and needs.
22            "Community ownership" means an arrangement in
23        which an electric generating facility is, or over time
24        will be, in significant part, owned collectively by
25        members of the community to which an electric
26        generating facility provides benefits; members of that

 

 

HB4731- 53 -LRB102 24633 AMQ 33871 b

1        community participate in decisions regarding the
2        governance, operation, maintenance, and upgrades of
3        and to that facility; and members of that community
4        benefit from regular use of that facility.
5            Terms and guidance within these criteria that are
6        not defined in this item (v) shall be defined by the
7        Agency, with stakeholder input, during the development
8        of the Agency's long-term renewable resources
9        procurement plan. The Agency shall develop regular
10        opportunities for projects to submit applications for
11        projects under this category, and develop selection
12        criteria that gives preference to projects that better
13        meet individual criteria as well as projects that
14        address a higher number of criteria.
15            (vi) At least 10% from distributed renewable
16        energy generation devices, which includes distributed
17        renewable energy devices with a nameplate capacity
18        under 5,000 kilowatts or photovoltaic community
19        renewable generation projects, from applicants that
20        are equity eligible contractors. The Agency may create
21        subcategories within this category to account for the
22        differences between project size and type. The Agency
23        shall propose to increase the percentage in this item
24        (vi) over time to 40% based on factors, including, but
25        not limited to, the number of equity eligible
26        contractors and capacity used in this item (vi) in

 

 

HB4731- 54 -LRB102 24633 AMQ 33871 b

1        previous delivery years.
2            The Agency shall propose a payment structure for
3        contracts executed pursuant to this paragraph under
4        which, upon a demonstration of qualification or need,
5        applicant firms are advanced capital disbursed after
6        contract execution but before the contracted project's
7        energization. The amount or percentage of capital
8        advanced prior to project energization shall be
9        sufficient to both cover any increase in development
10        costs resulting from prevailing wage requirements or
11        project-labor agreements, and designed to overcome
12        barriers in access to capital faced by equity eligible
13        contractors. The amount or percentage of advanced
14        capital may vary by subcategory within this category
15        and by an applicant's demonstration of need, with such
16        levels to be established through the Long-Term
17        Renewable Resources Procurement Plan authorized under
18        subparagraph (A) of paragraph (1) of subsection (c) of
19        this Section.
20            Contracts developed featuring capital advanced
21        prior to a project's energization shall feature
22        provisions to ensure both the successful development
23        of applicant projects and the delivery of the
24        renewable energy credits for the full term of the
25        contract, including ongoing collateral requirements
26        and other provisions deemed necessary by the Agency,

 

 

HB4731- 55 -LRB102 24633 AMQ 33871 b

1        and may include energization timelines longer than for
2        comparable project types. The percentage or amount of
3        capital advanced prior to project energization shall
4        not operate to increase the overall contract value,
5        however contracts executed under this subparagraph may
6        feature renewable energy credit prices higher than
7        those offered to similar projects participating in
8        other categories. Capital advanced prior to
9        energization shall serve to reduce the ratable
10        payments made after energization under items (ii) and
11        (iii) of subparagraph (L) or payments made for each
12        renewable energy credit delivery under item (iv) of
13        subparagraph (L).
14            (vii) The remaining capacity shall be allocated by
15        the Agency in order to respond to market demand. The
16        Agency shall allocate any discretionary capacity prior
17        to the beginning of each delivery year.
18        To the extent there is uncontracted capacity from any
19    block in any of categories (i) through (vi) at the end of a
20    delivery year, the Agency shall redistribute that capacity
21    to one or more other categories giving priority to
22    categories with projects on a waitlist. The redistributed
23    capacity shall be added to the annual capacity in the
24    subsequent delivery year, and the price for renewable
25    energy credits shall be the price for the new delivery
26    year. Redistributed capacity shall not be considered

 

 

HB4731- 56 -LRB102 24633 AMQ 33871 b

1    redistributed when determining whether the goals in this
2    subsection (K) have been met.
3        Notwithstanding anything to the contrary, as the
4    Agency increases the capacity in item (vi) to 40% over
5    time, the Agency may reduce the capacity of items (i)
6    through (v) proportionate to the capacity of the
7    categories of projects in item (vi), to achieve a balance
8    of project types.
9        The Adjustable Block program shall be designed to
10    ensure that renewable energy credits are procured from
11    projects in diverse locations and are not concentrated in
12    a few regional areas.
13        (L) Notwithstanding provisions for advancing capital
14    prior to project energization found in item (vi) of
15    subparagraph (K), the procurement of photovoltaic
16    renewable energy credits under items (i) through (vi) of
17    subparagraph (K) of this paragraph (1) shall otherwise be
18    subject to the following contract and payment terms:
19        (i) (Blank).
20            (ii) For those renewable energy credits that
21        qualify and are procured under item (i) of
22        subparagraph (K) of this paragraph (1), and any
23        similar category projects that are procured under item
24        (vi) of subparagraph (K) of this paragraph (1) that
25        qualify and are procured under item (vi), the contract
26        length shall be 15 years. The renewable energy credit

 

 

HB4731- 57 -LRB102 24633 AMQ 33871 b

1        delivery contract value shall be paid in full, based
2        on the estimated generation during the first 15 years
3        of operation, by the contracting utilities at the time
4        that the facility producing the renewable energy
5        credits is interconnected at the distribution system
6        level of the utility and verified as energized and
7        compliant by the Program Administrator. The electric
8        utility shall receive and retire all renewable energy
9        credits generated by the project for the first 15
10        years of operation. Renewable energy credits generated
11        by the project thereafter shall not be transferred
12        under the renewable energy credit delivery contract
13        with the counterparty electric utility.
14            (iii) For those renewable energy credits that
15        qualify and are procured under item (ii) and (v) of
16        subparagraph (K) of this paragraph (1) and any like
17        projects similar category that qualify and are
18        procured under item (vi), the contract length shall be
19        15 years. 15% of the renewable energy credit delivery
20        contract value, based on the estimated generation
21        during the first 15 years of operation, shall be paid
22        by the contracting utilities at the time that the
23        facility producing the renewable energy credits is
24        interconnected at the distribution system level of the
25        utility and verified as energized and compliant by the
26        Program Administrator. The remaining portion shall be

 

 

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1        paid ratably over the subsequent 6-year period. The
2        electric utility shall receive and retire all
3        renewable energy credits generated by the project for
4        the first 15 years of operation. Renewable energy
5        credits generated by the project thereafter shall not
6        be transferred under the renewable energy credit
7        delivery contract with the counterparty electric
8        utility.
9            (iv) For those renewable energy credits that
10        qualify and are procured under items (iii) and (iv) of
11        subparagraph (K) of this paragraph (1), and any like
12        projects that qualify and are procured under item
13        (vi), the renewable energy credit delivery contract
14        length shall be 20 years and shall be paid over the
15        delivery term, not to exceed during each delivery year
16        the contract price multiplied by the estimated annual
17        renewable energy credit generation amount. If
18        generation of renewable energy credits during a
19        delivery year exceeds the estimated annual generation
20        amount, the excess renewable energy credits shall be
21        carried forward to future delivery years and shall not
22        expire during the delivery term. If generation of
23        renewable energy credits during a delivery year,
24        including carried forward excess renewable energy
25        credits, if any, is less than the estimated annual
26        generation amount, payments during such delivery year

 

 

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1        will not exceed the quantity generated plus the
2        quantity carried forward multiplied by the contract
3        price. The electric utility shall receive all
4        renewable energy credits generated by the project
5        during the first 20 years of operation and retire all
6        renewable energy credits paid for under this item (iv)
7        and return at the end of the delivery term all
8        renewable energy credits that were not paid for.
9        Renewable energy credits generated by the project
10        thereafter shall not be transferred under the
11        renewable energy credit delivery contract with the
12        counterparty electric utility. Notwithstanding the
13        preceding, for those projects participating under item
14        (iii) of subparagraph (K), the contract price for a
15        delivery year shall be based on subscription levels as
16        measured on the higher of the first business day of the
17        delivery year or the first business day 6 months after
18        the first business day of the delivery year.
19        Subscription of 90% of nameplate capacity or greater
20        shall be deemed to be fully subscribed for the
21        purposes of this item (iv). For projects receiving a
22        20-year delivery contract, REC prices shall be
23        adjusted downward for consistency with the incentive
24        levels previously determined to be necessary to
25        support projects under 15-year delivery contracts,
26        taking into consideration any additional new

 

 

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1        requirements placed on the projects, including, but
2        not limited to, labor standards.
3            (v) Each contract shall include provisions to
4        ensure the delivery of the estimated quantity of
5        renewable energy credits and ongoing collateral
6        requirements and other provisions deemed appropriate
7        by the Agency.
8            (vi) The utility shall be the counterparty to the
9        contracts executed under this subparagraph (L) that
10        are approved by the Commission under the process
11        described in Section 16-111.5 of the Public Utilities
12        Act. No contract shall be executed for an amount that
13        is less than one renewable energy credit per year.
14            (vii) If, at any time, approved applications for
15        the Adjustable Block program exceed funds collected by
16        the electric utility or would cause the Agency to
17        exceed the limitation described in subparagraph (E) of
18        this paragraph (1) on the amount of renewable energy
19        resources that may be procured, then the Agency may
20        consider future uncommitted funds to be reserved for
21        these contracts on a first-come, first-served basis.
22            (viii) Nothing in this Section shall require the
23        utility to advance any payment or pay any amounts that
24        exceed the actual amount of revenues anticipated to be
25        collected by the utility under paragraph (6) of this
26        subsection (c) and subsection (k) of Section 16-108 of

 

 

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1        the Public Utilities Act inclusive of eligible funds
2        collected in prior years and alternative compliance
3        payments for use by the utility, and contracts
4        executed under this Section shall expressly
5        incorporate this limitation.
6            (ix) Notwithstanding other requirements of this
7        subparagraph (L), no modification shall be required to
8        Adjustable Block program contracts if they were
9        already executed prior to the establishment, approval,
10        and implementation of new contract forms as a result
11        of this amendatory Act of the 102nd General Assembly.
12            (x) Contracts may be assignable, but only to
13        entities first deemed by the Agency to have met
14        program terms and requirements applicable to direct
15        program participation. In developing contracts for the
16        delivery of renewable energy credits, the Agency shall
17        be permitted to establish fees applicable to each
18        contract assignment.
19        (M) The Agency shall be authorized to retain one or
20    more experts or expert consulting firms to develop,
21    administer, implement, operate, and evaluate the
22    Adjustable Block program described in subparagraph (K) of
23    this paragraph (1), and the Agency shall retain the
24    consultant or consultants in the same manner, to the
25    extent practicable, as the Agency retains others to
26    administer provisions of this Act, including, but not

 

 

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1    limited to, the procurement administrator. The selection
2    of experts and expert consulting firms and the procurement
3    process described in this subparagraph (M) are exempt from
4    the requirements of Section 20-10 of the Illinois
5    Procurement Code, under Section 20-10 of that Code. The
6    Agency shall strive to minimize administrative expenses in
7    the implementation of the Adjustable Block program.
8        The Program Administrator may charge application fees
9    to participating firms to cover the cost of program
10    administration. Any application fee amounts shall
11    initially be determined through the long-term renewable
12    resources procurement plan, and modifications to any
13    application fee that deviate more than 25% from the
14    Commission's approved value must be approved by the
15    Commission as a long-term plan revision under Section
16    16-111.5 of the Public Utilities Act. The Agency shall
17    consider stakeholder feedback when making adjustments to
18    application fees and shall notify stakeholders in advance
19    of any planned changes.
20        In addition to covering the costs of program
21    administration, the Agency, in conjunction with its
22    Program Administrator, may also use the proceeds of such
23    fees charged to participating firms to support public
24    education and ongoing regional and national coordination
25    with nonprofit organizations, public bodies, and others
26    engaged in the implementation of renewable energy

 

 

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1    incentive programs or similar initiatives. This work may
2    include developing papers and reports, hosting regional
3    and national conferences, and other work deemed necessary
4    by the Agency to position the State of Illinois as a
5    national leader in renewable energy incentive program
6    development and administration.
7        The Agency and its consultant or consultants shall
8    monitor block activity, share program activity with
9    stakeholders and conduct quarterly meetings to discuss
10    program activity and market conditions. If necessary, the
11    Agency may make prospective administrative adjustments to
12    the Adjustable Block program design, such as making
13    adjustments to purchase prices as necessary to achieve the
14    goals of this subsection (c). Program modifications to any
15    block price that do not deviate from the Commission's
16    approved value by more than 10% shall take effect
17    immediately and are not subject to Commission review and
18    approval. Program modifications to any block price that
19    deviate more than 10% from the Commission's approved value
20    must be approved by the Commission as a long-term plan
21    amendment under Section 16-111.5 of the Public Utilities
22    Act. The Agency shall consider stakeholder feedback when
23    making adjustments to the Adjustable Block design and
24    shall notify stakeholders in advance of any planned
25    changes.
26        The Agency and its program administrators for both the

 

 

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1    Adjustable Block program and the Illinois Solar for All
2    Program, consistent with the requirements of this
3    subsection (c) and subsection (b) of Section 1-56 of this
4    Act, shall propose the Adjustable Block program terms,
5    conditions, and requirements, including the prices to be
6    paid for renewable energy credits, where applicable, and
7    requirements applicable to participating entities and
8    project applications, through the development, review, and
9    approval of the Agency's long-term renewable resources
10    procurement plan described in this subsection (c) and
11    paragraph (5) of subsection (b) of Section 16-111.5 of the
12    Public Utilities Act. Terms, conditions, and requirements
13    for program participation shall include the following:
14            (i) The Agency shall establish a registration
15        process for entities seeking to qualify for
16        program-administered incentive funding and establish
17        baseline qualifications for vendor approval. The
18        Agency must maintain a list of approved entities on
19        each program's website, and may revoke a vendor's
20        ability to receive program-administered incentive
21        funding status upon a determination that the vendor
22        failed to comply with contract terms, the law, or
23        other program requirements.
24            (ii) The Agency shall establish program
25        requirements and minimum contract terms to ensure
26        projects are properly installed and produce their

 

 

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1        expected amounts of energy. Program requirements may
2        include on-site inspections and photo documentation of
3        projects under construction. The Agency may require
4        repairs, alterations, or additions to remedy any
5        material deficiencies discovered. Vendors who have a
6        disproportionately high number of deficient systems
7        may lose their eligibility to continue to receive
8        State-administered incentive funding through Agency
9        programs and procurements.
10            (iii) To discourage deceptive marketing or other
11        bad faith business practices, the Agency may require
12        direct program participants, including agents
13        operating on their behalf, to provide standardized
14        disclosures to a customer prior to that customer's
15        execution of a contract for the development of a
16        distributed generation system or a subscription to a
17        community solar project.
18            (iv) The Agency shall establish one or multiple
19        Consumer Complaints Centers to accept complaints
20        regarding businesses that participate in, or otherwise
21        benefit from, State-administered incentive funding
22        through Agency-administered programs. The Agency shall
23        maintain a public database of complaints with any
24        confidential or particularly sensitive information
25        redacted from public entries.
26            (v) Through a filing in the proceeding for the

 

 

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1        approval of its long-term renewable energy resources
2        procurement plan, the Agency shall provide an annual
3        written report to the Illinois Commerce Commission
4        documenting the frequency and nature of complaints and
5        any enforcement actions taken in response to those
6        complaints.
7            (vi) The Agency shall schedule regular meetings
8        with representatives of the Office of the Attorney
9        General, the Illinois Commerce Commission, consumer
10        protection groups, and other interested stakeholders
11        to share relevant information about consumer
12        protection, project compliance, and complaints
13        received.
14            (vii) To the extent that complaints received
15        implicate the jurisdiction of the Office of the
16        Attorney General, the Illinois Commerce Commission, or
17        local, State, or federal law enforcement, the Agency
18        shall also refer complaints to those entities as
19        appropriate.
20        (N) The Agency shall establish the terms, conditions,
21    and program requirements for photovoltaic community
22    renewable generation projects with a goal to expand access
23    to a broader group of energy consumers, to ensure robust
24    participation opportunities for residential and small
25    commercial customers and those who cannot install
26    renewable energy on their own properties. Subject to

 

 

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1    reasonable limitations, any plan approved by the
2    Commission shall allow subscriptions to community
3    renewable generation projects to be portable and
4    transferable. For purposes of this subparagraph (N),
5    "portable" means that subscriptions may be retained by the
6    subscriber even if the subscriber relocates or changes its
7    address within the same utility service territory; and
8    "transferable" means that a subscriber may assign or sell
9    subscriptions to another person within the same utility
10    service territory.
11        Through the development of its long-term renewable
12    resources procurement plan, the Agency may consider
13    whether community renewable generation projects utilizing
14    technologies other than photovoltaics should be supported
15    through State-administered incentive funding, and may
16    issue requests for information to gauge market demand.
17        Electric utilities shall provide a monetary credit to
18    a subscriber's subsequent bill for service for the
19    proportional output of a community renewable generation
20    project attributable to that subscriber as specified in
21    Section 16-107.5 of the Public Utilities Act.
22        The Agency shall purchase renewable energy credits
23    from subscribed shares of photovoltaic community renewable
24    generation projects through the Adjustable Block program
25    described in subparagraph (K) of this paragraph (1) or
26    through the Illinois Solar for All Program described in

 

 

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1    Section 1-56 of this Act. The electric utility shall
2    purchase any unsubscribed energy from community renewable
3    generation projects that are Qualifying Facilities ("QF")
4    under the electric utility's tariff for purchasing the
5    output from QFs under Public Utilities Regulatory Policies
6    Act of 1978.
7        The owners of and any subscribers to a community
8    renewable generation project shall not be considered
9    public utilities or alternative retail electricity
10    suppliers under the Public Utilities Act solely as a
11    result of their interest in or subscription to a community
12    renewable generation project and shall not be required to
13    become an alternative retail electric supplier by
14    participating in a community renewable generation project
15    with a public utility.
16        (O) For the delivery year beginning June 1, 2018, the
17    long-term renewable resources procurement plan required by
18    this subsection (c) shall provide for the Agency to
19    procure contracts to continue offering the Illinois Solar
20    for All Program described in subsection (b) of Section
21    1-56 of this Act, and the contracts approved by the
22    Commission shall be executed by the utilities that are
23    subject to this subsection (c). The long-term renewable
24    resources procurement plan shall allocate up to
25    $50,000,000 per delivery year to fund the programs, and
26    the plan shall determine the amount of funding to be

 

 

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1    apportioned to the programs identified in subsection (b)
2    of Section 1-56 of this Act; provided that for the
3    delivery years beginning June 1, 2021, June 1, 2022, and
4    June 1, 2023, the long-term renewable resources
5    procurement plan may average the annual budgets over a
6    3-year period to account for program ramp-up. For the
7    delivery years beginning June 1, 2021, June 1, 2024, June
8    1, 2027, and June 1, 2030 and additional $10,000,000 shall
9    be provided to the Department of Commerce and Economic
10    Opportunity to implement the workforce development
11    programs and reporting as outlined in Section 16-108.12 of
12    the Public Utilities Act. In making the determinations
13    required under this subparagraph (O), the Commission shall
14    consider the experience and performance under the programs
15    and any evaluation reports. The Commission shall also
16    provide for an independent evaluation of those programs on
17    a periodic basis that are funded under this subparagraph
18    (O).
19        (P) All programs and procurements under this
20    subsection (c) shall be designed to encourage
21    participating projects to use a diverse and equitable
22    workforce and a diverse set of contractors, including
23    minority-owned businesses, disadvantaged businesses,
24    trade unions, graduates of any workforce training programs
25    administered under this Act, and small businesses.
26        The Agency shall develop a method to optimize

 

 

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1    procurement of renewable energy credits from proposed
2    utility-scale projects that are located in communities
3    eligible to receive Energy Transition Community Grants
4    pursuant to Section 10-20 of the Energy Community
5    Reinvestment Act. If this requirement conflicts with other
6    provisions of law or the Agency determines that full
7    compliance with the requirements of this subparagraph (P)
8    would be unreasonably costly or administratively
9    impractical, the Agency is to propose alternative
10    approaches to achieve development of renewable energy
11    resources in communities eligible to receive Energy
12    Transition Community Grants pursuant to Section 10-20 of
13    the Energy Community Reinvestment Act or seek an exemption
14    from this requirement from the Commission.
15        (Q) Each facility listed in subitems (i) through
16    (viii) of item (1) of this subparagraph (Q) for which a
17    renewable energy credit delivery contract is signed after
18    the effective date of this amendatory Act of the 102nd
19    General Assembly is subject to the following requirements
20    through the Agency's long-term renewable resources
21    procurement plan:
22            (1) Each facility shall be subject to the
23        prevailing wage requirements included in the
24        Prevailing Wage Act. The Agency shall require
25        verification that all construction performed on the
26        facility by the renewable energy credit delivery

 

 

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1        contract holder, its contractors, or its
2        subcontractors relating to construction of the
3        facility is performed by construction employees
4        receiving an amount for that work equal to or greater
5        than the general prevailing rate, as that term is
6        defined in Section 3 of the Prevailing Wage Act. For
7        purposes of this item (1), "house of worship" means
8        property that is both (1) used exclusively by a
9        religious society or body of persons as a place for
10        religious exercise or religious worship and (2)
11        recognized as exempt from taxation pursuant to Section
12        15-40 of the Property Tax Code. This item (1) shall
13        apply to any the following:
14                (i) all new utility-scale wind projects;
15                (ii) all new utility-scale photovoltaic
16            projects;
17                (iii) all new brownfield photovoltaic
18            projects;
19                (iv) all new photovoltaic community renewable
20            energy facilities that qualify for item (iii) of
21            subparagraph (K) of this paragraph (1);
22                (v) all new community driven community
23            photovoltaic projects that qualify for item (v) of
24            subparagraph (K) of this paragraph (1);
25                (vi) all new photovoltaic distributed
26            renewable energy generation devices on schools

 

 

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1            that qualify for item (iv) of subparagraph (K) of
2            this paragraph (1);
3                (vii) all new photovoltaic distributed
4            renewable energy generation devices that (1)
5            qualify for item (i) of subparagraph (K) of this
6            paragraph (1); (2) are not projects that serve
7            single-family or multi-family residential
8            buildings; and (3) are not houses of worship where
9            the aggregate capacity including collocated
10            projects would not exceed 100 kilowatts;
11                (viii) all new photovoltaic distributed
12            renewable energy generation devices that (1)
13            qualify for item (ii) of subparagraph (K) of this
14            paragraph (1); (2) are not projects that serve
15            single-family or multi-family residential
16            buildings; and (3) are not houses of worship where
17            the aggregate capacity including collocated
18            projects would not exceed 100 kilowatts.
19            (2) Renewable energy credits procured from new
20        utility-scale wind projects, new utility-scale solar
21        projects, and new brownfield solar projects pursuant
22        to Agency procurement events occurring after the
23        effective date of this amendatory Act of the 102nd
24        General Assembly must be from facilities built by
25        general contractors that must enter into a project
26        labor agreement, as defined by this Act, prior to

 

 

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1        construction. The project labor agreement shall be
2        filed with the Director in accordance with procedures
3        established by the Agency through its long-term
4        renewable resources procurement plan. Any information
5        submitted to the Agency in this item (2) shall be
6        considered commercially sensitive information. At a
7        minimum, the project labor agreement must provide the
8        names, addresses, and occupations of the owner of the
9        plant and the individuals representing the labor
10        organization employees participating in the project
11        labor agreement consistent with the Project Labor
12        Agreements Act. The agreement must also specify the
13        terms and conditions as defined by this Act.
14            (3) It is the intent of this Section to ensure that
15        economic development occurs across Illinois
16        communities, that emerging businesses may grow, and
17        that there is improved access to the clean energy
18        economy by persons who have greater economic burdens
19        to success. The Agency shall take into consideration
20        the unique cost of compliance of this subparagraph (Q)
21        that might be borne by equity eligible contractors,
22        shall include such costs when determining the price of
23        renewable energy credits in the Adjustable Block
24        program, and shall take such costs into consideration
25        in a nondiscriminatory manner when comparing bids for
26        competitive procurements. The Agency shall consider

 

 

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1        costs associated with compliance whether in the
2        development, financing, or construction of projects.
3        The Agency shall periodically review the assumptions
4        in these costs and may adjust prices, in compliance
5        with subparagraph (M) of this paragraph (1).
6        (R) In its long-term renewable resources procurement
7    plan, the Agency shall establish a self-direct renewable
8    portfolio standard compliance program for eligible
9    self-direct customers that purchase renewable energy
10    credits from utility-scale wind and solar projects through
11    long-term agreements for purchase of renewable energy
12    credits as described in this Section. Such long-term
13    agreements may include the purchase of energy or other
14    products on a physical or financial basis and may involve
15    an alternative retail electric supplier as defined in
16    Section 16-102 of the Public Utilities Act. This program
17    shall take effect in the delivery year commencing June 1,
18    2023.
19            (1) For the purposes of this subparagraph:
20            "Eligible self-direct customer" means any retail
21        customers of an electric utility that serves 3,000,000
22        or more retail customers in the State and whose total
23        highest 30-minute demand was more than 10,000
24        kilowatts, or any retail customers of an electric
25        utility that serves less than 3,000,000 retail
26        customers but more than 500,000 retail customers in

 

 

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1        the State and whose total highest 15-minute demand was
2        more than 10,000 kilowatts.
3            "Retail customer" has the meaning set forth in
4        Section 16-102 of the Public Utilities Act and
5        multiple retail customer accounts under the same
6        corporate parent may aggregate their account demands
7        to meet the 10,000 kilowatt threshold. The criteria
8        for determining whether this subparagraph is
9        applicable to a retail customer shall be based on the
10        12 consecutive billing periods prior to the start of
11        the year in which the application is filed.
12            (2) For renewable energy credits to count toward
13        the self-direct renewable portfolio standard
14        compliance program, they must:
15                (i) qualify as renewable energy credits as
16            defined in Section 1-10 of this Act;
17                (ii) be sourced from one or more renewable
18            energy generating facilities that comply with the
19            geographic requirements as set forth in
20            subparagraph (I) of paragraph (1) of subsection
21            (c) as interpreted through the Agency's long-term
22            renewable resources procurement plan, or, where
23            applicable, the geographic requirements that
24            governed utility-scale renewable energy credits at
25            the time the eligible self-direct customer entered
26            into the applicable renewable energy credit

 

 

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1            purchase agreement;
2                (iii) be procured through long-term contracts
3            with term lengths of at least 10 years either
4            directly with the renewable energy generating
5            facility or through a bundled power purchase
6            agreement, a virtual power purchase agreement, an
7            agreement between the renewable generating
8            facility, an alternative retail electric supplier,
9            and the customer, or such other structure as is
10            permissible under this subparagraph (R);
11                (iv) be equivalent in volume to at least 40%
12            of the eligible self-direct customer's usage,
13            determined annually by the eligible self-direct
14            customer's usage during the previous delivery
15            year, measured to the nearest megawatt-hour;
16                (v) be retired by or on behalf of the large
17            energy customer;
18                (vi) be sourced from new utility-scale wind
19            projects or new utility-scale solar projects; and
20                (vii) if the contracts for renewable energy
21            credits are entered into after the effective date
22            of this amendatory Act of the 102nd General
23            Assembly, the new utility-scale wind projects or
24            new utility-scale solar projects must comply with
25            the requirements established in subparagraphs (P)
26            and (Q) of paragraph (1) of this subsection (c)

 

 

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1            and subsection (c-10).
2            (3) The self-direct renewable portfolio standard
3        compliance program shall be designed to allow eligible
4        self-direct customers to procure new renewable energy
5        credits from new utility-scale wind projects or new
6        utility-scale photovoltaic projects. The Agency shall
7        annually determine the amount of utility-scale
8        renewable energy credits it will include each year
9        from the self-direct renewable portfolio standard
10        compliance program, subject to receiving qualifying
11        applications. In making this determination, the Agency
12        shall evaluate publicly available analyses and studies
13        of the potential market size for utility-scale
14        renewable energy long-term purchase agreements by
15        commercial and industrial energy customers and make
16        that report publicly available. If demand for
17        participation in the self-direct renewable portfolio
18        standard compliance program exceeds availability, the
19        Agency shall ensure participation is evenly split
20        between commercial and industrial users to the extent
21        there is sufficient demand from both customer classes.
22        Each renewable energy credit procured pursuant to this
23        subparagraph (R) by a self-direct customer shall
24        reduce the total volume of renewable energy credits
25        the Agency is otherwise required to procure from new
26        utility-scale projects pursuant to subparagraph (C) of

 

 

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1        paragraph (1) of this subsection (c) on behalf of
2        contracting utilities where the eligible self-direct
3        customer is located. The self-direct customer shall
4        file an annual compliance report with the Agency
5        pursuant to terms established by the Agency through
6        its long-term renewable resources procurement plan to
7        be eligible for participation in this program.
8        Customers must provide the Agency with their most
9        recent electricity billing statements or other
10        information deemed necessary by the Agency to
11        demonstrate they are an eligible self-direct customer.
12            (4) The Commission shall approve a reduction in
13        the volumetric charges collected pursuant to Section
14        16-108 of the Public Utilities Act for approved
15        eligible self-direct customers equivalent to the
16        anticipated cost of renewable energy credit deliveries
17        under contracts for new utility-scale wind and new
18        utility-scale solar entered for each delivery year
19        after the large energy customer begins retiring
20        eligible new utility scale renewable energy credits
21        for self-compliance. The self-direct credit amount
22        shall be determined annually and is equal to the
23        estimated portion of the cost authorized by
24        subparagraph (E) of paragraph (1) of this subsection
25        (c) that supported the annual procurement of
26        utility-scale renewable energy credits in the prior

 

 

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1        delivery year using a methodology described in the
2        long-term renewable resources procurement plan,
3        expressed on a per kilowatthour basis, and does not
4        include (i) costs associated with any contracts
5        entered into before the delivery year in which the
6        customer files the initial compliance report to be
7        eligible for participation in the self-direct program,
8        and (ii) costs associated with procuring renewable
9        energy credits through existing and future contracts
10        through the Adjustable Block Program, subsection (c-5)
11        of this Section 1-75, and the Solar for All Program.
12        The Agency shall assist the Commission in determining
13        the current and future costs. The Agency must
14        determine the self-direct credit amount for new and
15        existing eligible self-direct customers and submit
16        this to the Commission in an annual compliance filing.
17        The Commission must approve the self-direct credit
18        amount by June 1, 2023 and June 1 of each delivery year
19        thereafter.
20            (5) Customers described in this subparagraph (R)
21        shall apply, on a form developed by the Agency, to the
22        Agency to be designated as a self-direct eligible
23        customer. Once the Agency determines that a
24        self-direct customer is eligible for participation in
25        the program, the self-direct customer will remain
26        eligible until the end of the term of the contract.

 

 

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1        Thereafter, application may be made not less than 12
2        months before the filing date of the long-term
3        renewable resources procurement plan described in this
4        Act. At a minimum, such application shall contain the
5        following:
6                (i) the customer's certification that, at the
7            time of the customer's application, the customer
8            qualifies to be a self-direct eligible customer,
9            including documents demonstrating that
10            qualification;
11                (ii) the customer's certification that the
12            customer has entered into or will enter into by
13            the beginning of the applicable procurement year,
14            one or more bilateral contracts for new wind
15            projects or new photovoltaic projects, including
16            supporting documentation;
17                (iii) certification that the contract or
18            contracts for new renewable energy resources are
19            long-term contracts with term lengths of at least
20            10 years, including supporting documentation;
21                (iv) certification of the quantities of
22            renewable energy credits that the customer will
23            purchase each year under such contract or
24            contracts, including supporting documentation;
25                (v) proof that the contract is sufficient to
26            produce renewable energy credits to be equivalent

 

 

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1            in volume to at least 40% of the large energy
2            customer's usage from the previous delivery year,
3            measured to the nearest megawatt-hour; and
4                (vi) certification that the customer intends
5            to maintain the contract for the duration of the
6            length of the contract.
7            (6) If a customer receives the self-direct credit
8        but fails to properly procure and retire renewable
9        energy credits as required under this subparagraph
10        (R), the Commission, on petition from the Agency and
11        after notice and hearing, may direct such customer's
12        utility to recover the cost of the wrongfully received
13        self-direct credits plus interest through an adder to
14        charges assessed pursuant to Section 16-108 of the
15        Public Utilities Act. Self-direct customers who
16        knowingly fail to properly procure and retire
17        renewable energy credits and do not notify the Agency
18        are ineligible for continued participation in the
19        self-direct renewable portfolio standard compliance
20        program.
21        (2) (Blank).
22        (3) (Blank).
23        (4) The electric utility shall retire all renewable
24    energy credits used to comply with the standard.
25        (5) Beginning with the 2010 delivery year and ending
26    June 1, 2017, an electric utility subject to this

 

 

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1    subsection (c) shall apply the lesser of the maximum
2    alternative compliance payment rate or the most recent
3    estimated alternative compliance payment rate for its
4    service territory for the corresponding compliance period,
5    established pursuant to subsection (d) of Section 16-115D
6    of the Public Utilities Act to its retail customers that
7    take service pursuant to the electric utility's hourly
8    pricing tariff or tariffs. The electric utility shall
9    retain all amounts collected as a result of the
10    application of the alternative compliance payment rate or
11    rates to such customers, and, beginning in 2011, the
12    utility shall include in the information provided under
13    item (1) of subsection (d) of Section 16-111.5 of the
14    Public Utilities Act the amounts collected under the
15    alternative compliance payment rate or rates for the prior
16    year ending May 31. Notwithstanding any limitation on the
17    procurement of renewable energy resources imposed by item
18    (2) of this subsection (c), the Agency shall increase its
19    spending on the purchase of renewable energy resources to
20    be procured by the electric utility for the next plan year
21    by an amount equal to the amounts collected by the utility
22    under the alternative compliance payment rate or rates in
23    the prior year ending May 31.
24        (6) The electric utility shall be entitled to recover
25    all of its costs associated with the procurement of
26    renewable energy credits under plans approved under this

 

 

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1    Section and Section 16-111.5 of the Public Utilities Act.
2    These costs shall include associated reasonable expenses
3    for implementing the procurement programs, including, but
4    not limited to, the costs of administering and evaluating
5    the Adjustable Block program, through an automatic
6    adjustment clause tariff in accordance with subsection (k)
7    of Section 16-108 of the Public Utilities Act.
8        (7) Renewable energy credits procured from new
9    photovoltaic projects or new distributed renewable energy
10    generation devices under this Section after June 1, 2017
11    (the effective date of Public Act 99-906) must be procured
12    from devices installed by a qualified person in compliance
13    with the requirements of Section 16-128A of the Public
14    Utilities Act and any rules or regulations adopted
15    thereunder.
16        In meeting the renewable energy requirements of this
17    subsection (c), to the extent feasible and consistent with
18    State and federal law, the renewable energy credit
19    procurements, Adjustable Block solar program, and
20    community renewable generation program shall provide
21    employment opportunities for all segments of the
22    population and workforce, including minority-owned and
23    female-owned business enterprises, and shall not,
24    consistent with State and federal law, discriminate based
25    on race or socioeconomic status.
26    (c-5) Procurement of renewable energy credits from new

 

 

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1renewable energy facilities installed at or adjacent to the
2sites of electric generating facilities that burn or burned
3coal as their primary fuel source.
4        (1) In addition to the procurement of renewable energy
5    credits pursuant to long-term renewable resources
6    procurement plans in accordance with subsection (c) of
7    this Section and Section 16-111.5 of the Public Utilities
8    Act, the Agency shall conduct procurement events in
9    accordance with this subsection (c-5) for the procurement
10    by electric utilities that served more than 300,000 retail
11    customers in this State as of January 1, 2019 of renewable
12    energy credits from new renewable energy facilities to be
13    installed at or adjacent to the sites of electric
14    generating facilities that, as of January 1, 2016, burned
15    coal as their primary fuel source and meet the other
16    criteria specified in this subsection (c-5). For purposes
17    of this subsection (c-5), "new renewable energy facility"
18    means a new utility-scale solar project as defined in this
19    Section 1-75. The renewable energy credits procured
20    pursuant to this subsection (c-5) may be included or
21    counted for purposes of compliance with the amounts of
22    renewable energy credits required to be procured pursuant
23    to subsection (c) of this Section to the extent that there
24    are otherwise shortfalls in compliance with such
25    requirements. The procurement of renewable energy credits
26    by electric utilities pursuant to this subsection (c-5)

 

 

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1    shall be funded solely by revenues collected from the Coal
2    to Solar and Energy Storage Initiative Charge provided for
3    in this subsection (c-5) and subsection (i-5) of Section
4    16-108 of the Public Utilities Act, shall not be funded by
5    revenues collected through any of the other funding
6    mechanisms provided for in subsection (c) of this Section,
7    and shall not be subject to the limitation imposed by
8    subsection (c) on charges to retail customers for costs to
9    procure renewable energy resources pursuant to subsection
10    (c), and shall not be subject to any other requirements or
11    limitations of subsection (c).
12        (2) The Agency shall conduct 2 procurement events to
13    select owners of electric generating facilities meeting
14    the eligibility criteria specified in this subsection
15    (c-5) to enter into long-term contracts to sell renewable
16    energy credits to electric utilities serving more than
17    300,000 retail customers in this State as of January 1,
18    2019. The first procurement event shall be conducted no
19    later than March 31, 2022, unless the Agency elects to
20    delay it, until no later than May 1, 2022, due to its
21    overall volume of work, and shall be to select owners of
22    electric generating facilities located in this State and
23    south of federal Interstate Highway 80 that meet the
24    eligibility criteria specified in this subsection (c-5).
25    The second procurement event shall be conducted no sooner
26    than September 30, 2022 and no later than October 31, 2022

 

 

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1    and shall be to select owners of electric generating
2    facilities located anywhere in this State that meet the
3    eligibility criteria specified in this subsection (c-5).
4    The Agency shall establish and announce a time period,
5    which shall begin no later than 30 days prior to the
6    scheduled date for the procurement event, during which
7    applicants may submit applications to be selected as
8    suppliers of renewable energy credits pursuant to this
9    subsection (c-5). The eligibility criteria for selection
10    as a supplier of renewable energy credits pursuant to this
11    subsection (c-5) shall be as follows:
12            (A) The applicant owns an electric generating
13        facility located in this State that: (i) as of January
14        1, 2016, burned coal as its primary fuel to generate
15        electricity; and (ii) has, or had prior to retirement,
16        an electric generating capacity of at least 150
17        megawatts. The electric generating facility can be
18        either: (i) retired as of the date of the procurement
19        event; or (ii) still operating as of the date of the
20        procurement event.
21            (B) The applicant is not (i) an electric
22        cooperative as defined in Section 3-119 of the Public
23        Utilities Act, or (ii) an entity described in
24        subsection (b)(1) of Section 3-105 of the Public
25        Utilities Act, or an association or consortium of or
26        an entity owned by entities described in (i) or (ii);

 

 

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1        and the coal-fueled electric generating facility was
2        at one time owned, in whole or in part, by a public
3        utility as defined in Section 3-105 of the Public
4        Utilities Act.
5            (C) If participating in the first procurement
6        event, the applicant proposes and commits to construct
7        and operate, at the site, and if necessary for
8        sufficient space on property adjacent to the existing
9        property, at which the electric generating facility
10        identified in paragraph (A) is located: (i) a new
11        renewable energy facility of at least 20 megawatts but
12        no more than 100 megawatts of electric generating
13        capacity, and (ii) an energy storage facility having a
14        storage capacity equal to at least 2 megawatts and at
15        most 10 megawatts. If participating in the second
16        procurement event, the applicant proposes and commits
17        to construct and operate, at the site, and if
18        necessary for sufficient space on property adjacent to
19        the existing property, at which the electric
20        generating facility identified in paragraph (A) is
21        located: (i) a new renewable energy facility of at
22        least 5 megawatts but no more than 20 megawatts of
23        electric generating capacity, and (ii) an energy
24        storage facility having a storage capacity equal to at
25        least 0.5 megawatts and at most one megawatt.
26            (D) The applicant agrees that the new renewable

 

 

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1        energy facility and the energy storage facility will
2        be constructed or installed by a qualified entity or
3        entities in compliance with the requirements of
4        subsection (g) of Section 16-128A of the Public
5        Utilities Act and any rules adopted thereunder.
6            (E) The applicant agrees that personnel operating
7        the new renewable energy facility and the energy
8        storage facility will have the requisite skills,
9        knowledge, training, experience, and competence, which
10        may be demonstrated by completion or current
11        participation and ultimate completion by employees of
12        an accredited or otherwise recognized apprenticeship
13        program for the employee's particular craft, trade, or
14        skill, including through training and education
15        courses and opportunities offered by the owner to
16        employees of the coal-fueled electric generating
17        facility or by previous employment experience
18        performing the employee's particular work skill or
19        function.
20            (F) The applicant commits that not less than the
21        prevailing wage, as determined pursuant to the
22        Prevailing Wage Act, will be paid to the applicant's
23        employees engaged in construction activities
24        associated with the new renewable energy facility and
25        the new energy storage facility and to the employees
26        of applicant's contractors engaged in construction

 

 

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1        activities associated with the new renewable energy
2        facility and the new energy storage facility, and
3        that, on or before the commercial operation date of
4        the new renewable energy facility, the applicant shall
5        file a report with the Agency certifying that the
6        requirements of this subparagraph (F) have been met.
7            (G) The applicant commits that if selected, it
8        will negotiate a project labor agreement for the
9        construction of the new renewable energy facility and
10        associated energy storage facility that includes
11        provisions requiring the parties to the agreement to
12        work together to establish diversity threshold
13        requirements and to ensure best efforts to meet
14        diversity targets, improve diversity at the applicable
15        job site, create diverse apprenticeship opportunities,
16        and create opportunities to employ former coal-fired
17        power plant workers.
18            (H) The applicant commits to enter into a contract
19        or contracts for the applicable duration to provide
20        specified numbers of renewable energy credits each
21        year from the new renewable energy facility to
22        electric utilities that served more than 300,000
23        retail customers in this State as of January 1, 2019,
24        at a price of $30 per renewable energy credit. The
25        price per renewable energy credit shall be fixed at
26        $30 for the applicable duration and the renewable

 

 

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1        energy credits shall not be indexed renewable energy
2        credits as provided for in item (v) of subparagraph
3        (G) of paragraph (1) of subsection (c) of Section 1-75
4        of this Act. The applicable duration of each contract
5        shall be 20 years, unless the applicant is physically
6        interconnected to the PJM Interconnection, LLC
7        transmission grid and had a generating capacity of at
8        least 1,200 megawatts as of January 1, 2021, in which
9        case the applicable duration of the contract shall be
10        15 years.
11            (I) The applicant's application is certified by an
12        officer of the applicant and by an officer of the
13        applicant's ultimate parent company, if any.
14        (3) An applicant may submit applications to contract
15    to supply renewable energy credits from more than one new
16    renewable energy facility to be constructed at or adjacent
17    to one or more qualifying electric generating facilities
18    owned by the applicant. The Agency may select new
19    renewable energy facilities to be located at or adjacent
20    to the sites of more than one qualifying electric
21    generation facility owned by an applicant to contract with
22    electric utilities to supply renewable energy credits from
23    such facilities.
24        (4) The Agency shall assess fees to each applicant to
25    recover the Agency's costs incurred in receiving and
26    evaluating applications, conducting the procurement event,

 

 

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1    developing contracts for sale, delivery and purchase of
2    renewable energy credits, and monitoring the
3    administration of such contracts, as provided for in this
4    subsection (c-5), including fees paid to a procurement
5    administrator retained by the Agency for one or more of
6    these purposes.
7        (5) The Agency shall select the applicants and the new
8    renewable energy facilities to contract with electric
9    utilities to supply renewable energy credits in accordance
10    with this subsection (c-5). In the first procurement
11    event, the Agency shall select applicants and new
12    renewable energy facilities to supply renewable energy
13    credits, at a price of $30 per renewable energy credit,
14    aggregating to no less than 400,000 renewable energy
15    credits per year for the applicable duration, assuming
16    sufficient qualifying applications to supply, in the
17    aggregate, at least that amount of renewable energy
18    credits per year; and not more than 580,000 renewable
19    energy credits per year for the applicable duration. In
20    the second procurement event, the Agency shall select
21    applicants and new renewable energy facilities to supply
22    renewable energy credits, at a price of $30 per renewable
23    energy credit, aggregating to no more than 625,000
24    renewable energy credits per year less the amount of
25    renewable energy credits each year contracted for as a
26    result of the first procurement event, for the applicable

 

 

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1    durations. The number of renewable energy credits to be
2    procured as specified in this paragraph (5) shall not be
3    reduced based on renewable energy credits procured in the
4    self-direct renewable energy credit compliance program
5    established pursuant to subparagraph (R) of paragraph (1)
6    of subsection (c) of Section 1-75.
7        (6) The obligation to purchase renewable energy
8    credits from the applicants and their new renewable energy
9    facilities selected by the Agency shall be allocated to
10    the electric utilities based on their respective
11    percentages of kilowatthours delivered to delivery
12    services customers to the aggregate kilowatthour
13    deliveries by the electric utilities to delivery services
14    customers for the year ended December 31, 2021. In order
15    to achieve these allocation percentages between or among
16    the electric utilities, the Agency shall require each
17    applicant that is selected in the procurement event to
18    enter into a contract with each electric utility for the
19    sale and purchase of renewable energy credits from each
20    new renewable energy facility to be constructed and
21    operated by the applicant, with the sale and purchase
22    obligations under the contracts to aggregate to the total
23    number of renewable energy credits per year to be supplied
24    by the applicant from the new renewable energy facility.
25        (7) The Agency shall submit its proposed selection of
26    applicants, new renewable energy facilities to be

 

 

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1    constructed, and renewable energy credit amounts for each
2    procurement event to the Commission for approval. The
3    Commission shall, within 2 business days after receipt of
4    the Agency's proposed selections, approve the proposed
5    selections if it determines that the applicants and the
6    new renewable energy facilities to be constructed meet the
7    selection criteria set forth in this subsection (c-5) and
8    that the Agency seeks approval for contracts of applicable
9    durations aggregating to no more than the maximum amount
10    of renewable energy credits per year authorized by this
11    subsection (c-5) for the procurement event, at a price of
12    $30 per renewable energy credit.
13        (8) The Agency, in conjunction with its procurement
14    administrator if one is retained, the electric utilities,
15    and potential applicants for contracts to produce and
16    supply renewable energy credits pursuant to this
17    subsection (c-5), shall develop a standard form contract
18    for the sale, delivery and purchase of renewable energy
19    credits pursuant to this subsection (c-5). Each contract
20    resulting from the first procurement event shall allow for
21    a commercial operation date for the new renewable energy
22    facility of either June 1, 2023 or June 1, 2024, with such
23    dates subject to adjustment as provided in this paragraph.
24    Each contract resulting from the second procurement event
25    shall provide for a commercial operation date on June 1
26    next occurring up to 48 months after execution of the

 

 

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1    contract. Each contract shall provide that the owner shall
2    receive payments for renewable energy credits for the
3    applicable durations beginning with the commercial
4    operation date of the new renewable energy facility. The
5    form contract shall provide for adjustments to the
6    commercial operation and payment start dates as needed due
7    to any delays in completing the procurement and
8    contracting processes, in finalizing interconnection
9    agreements and installing interconnection facilities, and
10    in obtaining other necessary governmental permits and
11    approvals. The form contract shall be, to the maximum
12    extent possible, consistent with standard electric
13    industry contracts for sale, delivery, and purchase of
14    renewable energy credits while taking into account the
15    specific requirements of this subsection (c-5). The form
16    contract shall provide for over-delivery and
17    under-delivery of renewable energy credits within
18    reasonable ranges during each 12-month period and penalty,
19    default, and enforcement provisions for failure of the
20    selling party to deliver renewable energy credits as
21    specified in the contract and to comply with the
22    requirements of this subsection (c-5). The standard form
23    contract shall specify that all renewable energy credits
24    delivered to the electric utility pursuant to the contract
25    shall be retired. The Agency shall make the proposed
26    contracts available for a reasonable period for comment by

 

 

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1    potential applicants, and shall publish the final form
2    contract at least 30 days before the date of the first
3    procurement event.
4        (9) Coal to Solar and Energy Storage Initiative
5    Charge.
6            (A) By no later than July 1, 2022, each electric
7        utility that served more than 300,000 retail customers
8        in this State as of January 1, 2019 shall file a tariff
9        with the Commission for the billing and collection of
10        a Coal to Solar and Energy Storage Initiative Charge
11        in accordance with subsection (i-5) of Section 16-108
12        of the Public Utilities Act, with such tariff to be
13        effective, following review and approval or
14        modification by the Commission, beginning January 1,
15        2023. The tariff shall provide for the calculation and
16        setting of the electric utility's Coal to Solar and
17        Energy Storage Initiative Charge to collect revenues
18        estimated to be sufficient, in the aggregate, (i) to
19        enable the electric utility to pay for the renewable
20        energy credits it has contracted to purchase in the
21        delivery year beginning June 1, 2023 and each delivery
22        year thereafter from new renewable energy facilities
23        located at the sites of qualifying electric generating
24        facilities, and (ii) to fund the grant payments to be
25        made in each delivery year by the Department of
26        Commerce and Economic Opportunity, or any successor

 

 

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1        department or agency, which shall be referred to in
2        this subsection (c-5) as the Department, pursuant to
3        paragraph (10) of this subsection (c-5). The electric
4        utility's tariff shall provide for the billing and
5        collection of the Coal to Solar and Energy Storage
6        Initiative Charge on each kilowatthour of electricity
7        delivered to its delivery services customers within
8        its service territory and shall provide for an annual
9        reconciliation of revenues collected with actual
10        costs, in accordance with subsection (i-5) of Section
11        16-108 of the Public Utilities Act.
12            (B) Each electric utility shall remit on a monthly
13        basis to the State Treasurer, for deposit in the Coal
14        to Solar and Energy Storage Initiative Fund provided
15        for in this subsection (c-5), the electric utility's
16        collections of the Coal to Solar and Energy Storage
17        Initiative Charge in the amount estimated to be needed
18        by the Department for grant payments pursuant to grant
19        contracts entered into by the Department pursuant to
20        paragraph (10) of this subsection (c-5).
21        (10) Coal to Solar and Energy Storage Initiative Fund.
22            (A) The Coal to Solar and Energy Storage
23        Initiative Fund is established as a special fund in
24        the State treasury. The Coal to Solar and Energy
25        Storage Initiative Fund is authorized to receive, by
26        statutory deposit, that portion specified in item (B)

 

 

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1        of paragraph (9) of this subsection (c-5) of moneys
2        collected by electric utilities through imposition of
3        the Coal to Solar and Energy Storage Initiative Charge
4        required by this subsection (c-5). The Coal to Solar
5        and Energy Storage Initiative Fund shall be
6        administered by the Department to provide grants to
7        support the installation and operation of energy
8        storage facilities at the sites of qualifying electric
9        generating facilities meeting the criteria specified
10        in this paragraph (10).
11            (B) The Coal to Solar and Energy Storage
12        Initiative Fund shall not be subject to sweeps,
13        administrative charges, or chargebacks, including, but
14        not limited to, those authorized under Section 8h of
15        the State Finance Act, that would in any way result in
16        the transfer of those funds from the Coal to Solar and
17        Energy Storage Initiative Fund to any other fund of
18        this State or in having any such funds utilized for any
19        purpose other than the express purposes set forth in
20        this paragraph (10).
21            (C) The Department shall utilize up to
22        $280,500,000 in the Coal to Solar and Energy Storage
23        Initiative Fund for grants, assuming sufficient
24        qualifying applicants, to support installation of
25        energy storage facilities at the sites of up to 3
26        qualifying electric generating facilities located in

 

 

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1        the Midcontinent Independent System Operator, Inc.,
2        region in Illinois and the sites of up to 2 qualifying
3        electric generating facilities located in the PJM
4        Interconnection, LLC region in Illinois that meet the
5        criteria set forth in this subparagraph (C). The
6        criteria for receipt of a grant pursuant to this
7        subparagraph (C) are as follows:
8                (1) the electric generating facility at the
9            site has, or had prior to retirement, an electric
10            generating capacity of at least 150 megawatts;
11                (2) the electric generating facility burns (or
12            burned prior to retirement) coal as its primary
13            source of fuel;
14                (3) if the electric generating facility is
15            retired, it was retired subsequent to January 1,
16            2016;
17                (4) the owner of the electric generating
18            facility has not been selected by the Agency
19            pursuant to this subsection (c-5) of this Section
20            to enter into a contract to sell renewable energy
21            credits to one or more electric utilities from a
22            new renewable energy facility located or to be
23            located at or adjacent to the site at which the
24            electric generating facility is located;
25                (5) the electric generating facility located
26            at the site was at one time owned, in whole or in

 

 

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1            part, by a public utility as defined in Section
2            3-105 of the Public Utilities Act;
3                (6) the electric generating facility at the
4            site is not owned by (i) an electric cooperative
5            as defined in Section 3-119 of the Public
6            Utilities Act, or (ii) an entity described in
7            subsection (b)(1) of Section 3-105 of the Public
8            Utilities Act, or an association or consortium of
9            or an entity owned by entities described in items
10            (i) or (ii);
11                (7) the proposed energy storage facility at
12            the site will have energy storage capacity of at
13            least 37 megawatts;
14                (8) the owner commits to place the energy
15            storage facility into commercial operation on
16            either June 1, 2023, June 1, 2024, or June 1, 2025,
17            with such date subject to adjustment as needed due
18            to any delays in completing the grant contracting
19            process, in finalizing interconnection agreements
20            and in installing interconnection facilities, and
21            in obtaining necessary governmental permits and
22            approvals;
23                (9) the owner agrees that the new energy
24            storage facility will be constructed or installed
25            by a qualified entity or entities consistent with
26            the requirements of subsection (g) of Section

 

 

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1            16-128A of the Public Utilities Act and any rules
2            adopted under that Section;
3                (10) the owner agrees that personnel operating
4            the energy storage facility will have the
5            requisite skills, knowledge, training, experience,
6            and competence, which may be demonstrated by
7            completion or current participation and ultimate
8            completion by employees of an accredited or
9            otherwise recognized apprenticeship program for
10            the employee's particular craft, trade, or skill,
11            including through training and education courses
12            and opportunities offered by the owner to
13            employees of the coal-fueled electric generating
14            facility or by previous employment experience
15            performing the employee's particular work skill or
16            function;
17                (11) the owner commits that not less than the
18            prevailing wage, as determined pursuant to the
19            Prevailing Wage Act, will be paid to the owner's
20            employees engaged in construction activities
21            associated with the new energy storage facility
22            and to the employees of the owner's contractors
23            engaged in construction activities associated with
24            the new energy storage facility, and that, on or
25            before the commercial operation date of the new
26            energy storage facility, the owner shall file a

 

 

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1            report with the Department certifying that the
2            requirements of this subparagraph (11) have been
3            met; and
4                (12) the owner commits that if selected to
5            receive a grant, it will negotiate a project labor
6            agreement for the construction of the new energy
7            storage facility that includes provisions
8            requiring the parties to the agreement to work
9            together to establish diversity threshold
10            requirements and to ensure best efforts to meet
11            diversity targets, improve diversity at the
12            applicable job site, create diverse apprenticeship
13            opportunities, and create opportunities to employ
14            former coal-fired power plant workers.
15            The Department shall accept applications for this
16        grant program until March 31, 2022 and shall announce
17        the award of grants no later than June 1, 2022. The
18        Department shall make the grant payments to a
19        recipient in equal annual amounts for 10 years
20        following the date the energy storage facility is
21        placed into commercial operation. The annual grant
22        payments to a qualifying energy storage facility shall
23        be $110,000 per megawatt of energy storage capacity,
24        with total annual grant payments pursuant to this
25        subparagraph (C) for qualifying energy storage
26        facilities not to exceed $28,050,000 in any year.

 

 

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1            (D) Grants of funding for energy storage
2        facilities pursuant to subparagraph (C) of this
3        paragraph (10), from the Coal to Solar and Energy
4        Storage Initiative Fund, shall be memorialized in
5        grant contracts between the Department and the
6        recipient. The grant contracts shall specify the date
7        or dates in each year on which the annual grant
8        payments shall be paid.
9            (E) All disbursements from the Coal to Solar and
10        Energy Storage Initiative Fund shall be made only upon
11        warrants of the Comptroller drawn upon the Treasurer
12        as custodian of the Fund upon vouchers signed by the
13        Director of the Department or by the person or persons
14        designated by the Director of the Department for that
15        purpose. The Comptroller is authorized to draw the
16        warrants upon vouchers so signed. The Treasurer shall
17        accept all written warrants so signed and shall be
18        released from liability for all payments made on those
19        warrants.
20        (11) Diversity, equity, and inclusion plans.
21            (A) Each applicant selected in a procurement event
22        to contract to supply renewable energy credits in
23        accordance with this subsection (c-5) and each owner
24        selected by the Department to receive a grant or
25        grants to support the construction and operation of a
26        new energy storage facility or facilities in

 

 

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1        accordance with this subsection (c-5) shall, within 60
2        days following the Commission's approval of the
3        applicant to contract to supply renewable energy
4        credits or within 60 days following execution of a
5        grant contract with the Department, as applicable,
6        submit to the Commission a diversity, equity, and
7        inclusion plan setting forth the applicant's or
8        owner's numeric goals for the diversity composition of
9        its supplier entities for the new renewable energy
10        facility or new energy storage facility, as
11        applicable, which shall be referred to for purposes of
12        this paragraph (11) as the project, and the
13        applicant's or owner's action plan and schedule for
14        achieving those goals.
15            (B) For purposes of this paragraph (11), diversity
16        composition shall be based on the percentage, which
17        shall be a minimum of 25%, of eligible expenditures
18        for contract awards for materials and services (which
19        shall be defined in the plan) to business enterprises
20        owned by minority persons, women, or persons with
21        disabilities as defined in Section 2 of the Business
22        Enterprise for Minorities, Women, and Persons with
23        Disabilities Act, to LGBTQ business enterprises, to
24        veteran-owned business enterprises, and to business
25        enterprises located in environmental justice
26        communities. The diversity composition goals of the

 

 

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1        plan may include eligible expenditures in areas for
2        vendor or supplier opportunities in addition to
3        development and construction of the project, and may
4        exclude from eligible expenditures materials and
5        services with limited market availability, limited
6        production and availability from suppliers in the
7        United States, such as solar panels and storage
8        batteries, and material and services that are subject
9        to critical energy infrastructure or cybersecurity
10        requirements or restrictions. The plan may provide
11        that the diversity composition goals may be met
12        through Tier 1 Direct or Tier 2 subcontracting
13        expenditures or a combination thereof for the project.
14            (C) The plan shall provide for, but not be limited
15        to: (i) internal initiatives, including multi-tier
16        initiatives, by the applicant or owner, or by its
17        engineering, procurement and construction contractor
18        if one is used for the project, which for purposes of
19        this paragraph (11) shall be referred to as the EPC
20        contractor, to enable diverse businesses to be
21        considered fairly for selection to provide materials
22        and services; (ii) requirements for the applicant or
23        owner or its EPC contractor to proactively solicit and
24        utilize diverse businesses to provide materials and
25        services; and (iii) requirements for the applicant or
26        owner or its EPC contractor to hire a diverse

 

 

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1        workforce for the project. The plan shall include a
2        description of the applicant's or owner's diversity
3        recruiting efforts both for the project and for other
4        areas of the applicant's or owner's business
5        operations. The plan shall provide for the imposition
6        of financial penalties on the applicant's or owner's
7        EPC contractor for failure to exercise best efforts to
8        comply with and execute the EPC contractor's diversity
9        obligations under the plan. The plan may provide for
10        the applicant or owner to set aside a portion of the
11        work on the project to serve as an incubation program
12        for qualified businesses, as specified in the plan,
13        owned by minority persons, women, persons with
14        disabilities, LGBTQ persons, and veterans, and
15        businesses located in environmental justice
16        communities, seeking to enter the renewable energy
17        industry.
18            (D) The applicant or owner may submit a revised or
19        updated plan to the Commission from time to time as
20        circumstances warrant. The applicant or owner shall
21        file annual reports with the Commission detailing the
22        applicant's or owner's progress in implementing its
23        plan and achieving its goals and any modifications the
24        applicant or owner has made to its plan to better
25        achieve its diversity, equity and inclusion goals. The
26        applicant or owner shall file a final report on the

 

 

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1        fifth June 1 following the commercial operation date
2        of the new renewable energy resource or new energy
3        storage facility, but the applicant or owner shall
4        thereafter continue to be subject to applicable
5        reporting requirements of Section 5-117 of the Public
6        Utilities Act.
7    (c-10) Equity accountability system. It is the purpose of
8this subsection (c-10) to create an equity accountability
9system, which includes the minimum equity standards for all
10renewable energy procurements, the equity category of the
11Adjustable Block Program, and the equity prioritization for
12noncompetitive procurements, that is successful in advancing
13priority access to the clean energy economy for businesses and
14workers from communities that have been excluded from economic
15opportunities in the energy sector, have been subject to
16disproportionate levels of pollution, and have
17disproportionately experienced negative public health
18outcomes. Further, it is the purpose of this subsection to
19ensure that this equity accountability system is successful in
20advancing equity across Illinois by providing access to the
21clean energy economy for businesses and workers from
22communities that have been historically excluded from economic
23opportunities in the energy sector, have been subject to
24disproportionate levels of pollution, and have
25disproportionately experienced negative public health
26outcomes.

 

 

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1        (1) Minimum equity standards. The Agency shall create
2    programs with the purpose of increasing access to and
3    development of equity eligible contractors, who are prime
4    contractors and subcontractors, across all of the programs
5    it manages. All applications for renewable energy credit
6    procurements shall comply with specific minimum equity
7    commitments. Starting in the delivery year immediately
8    following the next long-term renewable resources
9    procurement plan, at least 10% of the project workforce
10    for each entity participating in a procurement program
11    outlined in this subsection (c-10) must be done by equity
12    eligible persons or equity eligible contractors. The
13    Agency shall increase the minimum percentage each delivery
14    year thereafter by increments that ensure a statewide
15    average of 30% of the project workforce for each entity
16    participating in a procurement program is done by equity
17    eligible persons or equity eligible contractors by 2030.
18    The Agency shall propose a schedule of percentage
19    increases to the minimum equity standards in its draft
20    revised renewable energy resources procurement plan
21    submitted to the Commission for approval pursuant to
22    paragraph (5) of subsection (b) of Section 16-111.5 of the
23    Public Utilities Act. In determining these annual
24    increases, the Agency shall have the discretion to
25    establish different minimum equity standards for different
26    types of procurements and different regions of the State

 

 

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1    if the Agency finds that doing so will further the
2    purposes of this subsection (c-10). The proposed schedule
3    of annual increases shall be revisited and updated on an
4    annual basis. Revisions shall be developed with
5    stakeholder input, including from equity eligible persons,
6    equity eligible contractors, clean energy industry
7    representatives, and community-based organizations that
8    work with such persons and contractors.
9            (A) At the start of each delivery year, the Agency
10        shall require a compliance plan from each entity
11        participating in a procurement program of subsection
12        (c) of this Section that demonstrates how they will
13        achieve compliance with the minimum equity standard
14        percentage for work completed in that delivery year.
15        If an entity applies for its approved vendor or
16        designee status between delivery years, the Agency
17        shall require a compliance plan at the time of
18        application.
19            (B) Halfway through each delivery year, the Agency
20        shall require each entity participating in a
21        procurement program to confirm that it will achieve
22        compliance in that delivery year, when applicable. The
23        Agency may offer corrective action plans to entities
24        that are not on track to achieve compliance.
25            (C) At the end of each delivery year, each entity
26        participating and completing work in that delivery

 

 

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1        year in a procurement program of subsection (c) shall
2        submit a report to the Agency that demonstrates how it
3        achieved compliance with the minimum equity standards
4        percentage for that delivery year.
5            (D) The Agency shall prohibit participation in
6        procurement programs by an approved vendor or
7        designee, as applicable, or entities with which an
8        approved vendor or designee, as applicable, shares a
9        common parent company if an approved vendor or
10        designee, as applicable, failed to meet the minimum
11        equity standards for the prior delivery year. Waivers
12        approved for lack of equity eligible persons or equity
13        eligible contractors in a geographic area of a project
14        shall not count against the approved vendor or
15        designee. The Agency shall offer a corrective action
16        plan for any such entities to assist them in obtaining
17        compliance and shall allow continued access to
18        procurement programs upon an approved vendor or
19        designee demonstrating compliance.
20            (E) The Agency shall pursue efficiencies achieved
21        by combining with other approved vendor or designee
22        reporting.
23        (2) Equity accountability system within the Adjustable
24    Block program. The equity category described in item (vi)
25    of subparagraph (K) of subsection (c) is only available to
26    applicants that are equity eligible contractors.

 

 

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1        (3) Equity accountability system within competitive
2    procurements. Through its long-term renewable resources
3    procurement plan, the Agency shall develop requirements
4    for ensuring that competitive procurement processes,
5    including utility-scale solar, utility-scale wind, and
6    brownfield site photovoltaic projects, advance the equity
7    goals of this subsection (c-10). Subject to Commission
8    approval, the Agency shall develop bid application
9    requirements and a bid evaluation methodology for ensuring
10    that utilization of equity eligible contractors, whether
11    as bidders or as participants on project development, is
12    optimized, including requiring that winning or successful
13    applicants for utility-scale projects are or will partner
14    with equity eligible contractors and giving preference to
15    bids through which a higher portion of contract value
16    flows to equity eligible contractors. To the extent
17    practicable, entities participating in competitive
18    procurements shall also be required to meet all the equity
19    accountability requirements for approved vendors and their
20    designees under this subsection (c-10). In developing
21    these requirements, the Agency shall also consider whether
22    equity goals can be further advanced through additional
23    measures.
24        (4) In the first revision to the long-term renewable
25    energy resources procurement plan and each revision
26    thereafter, the Agency shall include the following:

 

 

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1            (A) The current status and number of equity
2        eligible contractors listed in the Energy Workforce
3        Equity Database designed in subsection (c-25),
4        including the number of equity eligible contractors
5        with current certifications as issued by the Agency.
6            (B) A mechanism for measuring, tracking, and
7        reporting project workforce at the approved vendor or
8        designee level, as applicable, which shall include a
9        measurement methodology and records to be made
10        available for audit by the Agency or the Program
11        Administrator.
12            (C) A program for approved vendors, designees,
13        eligible persons, and equity eligible contractors to
14        receive trainings, guidance, and other support from
15        the Agency or its designee regarding the equity
16        category outlined in item (vi) of subparagraph (K) of
17        paragraph (1) of subsection (c) and in meeting the
18        minimum equity standards of this subsection (c-10).
19            (D) A process for certifying equity eligible
20        contractors and equity eligible persons. The
21        certification process shall coordinate with the Energy
22        Workforce Equity Database set forth in subsection
23        (c-25).
24            (E) An application for waiver of the minimum
25        equity standards of this subsection, which the Agency
26        shall have the discretion to grant in rare

 

 

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1        circumstances. The Agency may grant such a waiver
2        where the applicant provides evidence of significant
3        efforts toward meeting the minimum equity commitment,
4        including: use of the Energy Workforce Equity
5        Database; efforts to hire or contract with entities
6        that hire eligible persons; and efforts to establish
7        contracting relationships with eligible contractors.
8        The Agency shall support applicants in understanding
9        the Energy Workforce Equity Database and other
10        resources for pursuing compliance of the minimum
11        equity standards. Waivers shall be project-specific,
12        unless the Agency deems it necessary to grant a waiver
13        across a portfolio of projects, and in effect for no
14        longer than one year. Any waiver extension or
15        subsequent waiver request from an applicant shall be
16        subject to the requirements of this Section and shall
17        specify efforts made to reach compliance. When
18        considering whether to grant a waiver, and to what
19        extent, the Agency shall consider the degree to which
20        similarly situated applicants have been able to meet
21        these minimum equity commitments. For repeated waiver
22        requests for specific lack of eligible persons or
23        eligible contractors available, the Agency shall make
24        recommendations to target recruitment to add such
25        eligible persons or eligible contractors to the
26        database.

 

 

HB4731- 113 -LRB102 24633 AMQ 33871 b

1        (5) The Agency shall collect information about work on
2    projects or portfolios of projects subject to these
3    minimum equity standards to ensure compliance with this
4    subsection (c-10). Reporting in furtherance of this
5    requirement may be combined with other annual reporting
6    requirements. Such reporting shall include proof of
7    certification of each equity eligible contractor or equity
8    eligible person during the applicable time period.
9        (6) The Agency shall keep confidential all information
10    and communication that provides private or personal
11    information.
12        (7) Modifications to the equity accountability system.
13    As part of the update of the long-term renewable resources
14    procurement plan to be initiated in 2023, or sooner if the
15    Agency deems necessary, the Agency shall determine the
16    extent to which the equity accountability system described
17    in this subsection (c-10) has advanced the goals of this
18    amendatory Act of the 102nd General Assembly, including
19    through the inclusion of equity eligible persons and
20    equity eligible contractors in renewable energy credit
21    projects. If the Agency finds that the equity
22    accountability system has failed to meet those goals to
23    its fullest potential, the Agency may revise the following
24    criteria for future Agency procurements: (A) the
25    percentage of project workforce, or other appropriate
26    workforce measure, certified as equity eligible persons or

 

 

HB4731- 114 -LRB102 24633 AMQ 33871 b

1    equity eligible contractors; (B) definitions for equity
2    investment eligible persons and equity investment eligible
3    community; and (C) such other modifications necessary to
4    advance the goals of this amendatory Act of the 102nd
5    General Assembly effectively. Such revised criteria may
6    also establish distinct equity accountability systems for
7    different types of procurements or different regions of
8    the State if the Agency finds that doing so will further
9    the purposes of such programs. Revisions shall be
10    developed with stakeholder input, including from equity
11    eligible persons, equity eligible contractors, and
12    community-based organizations that work with such persons
13    and contractors.
14    (c-15) Racial discrimination elimination powers and
15process.
16        (1) Purpose. It is the purpose of this subsection to
17    empower the Agency and other State actors to remedy racial
18    discrimination in Illinois' clean energy economy as
19    effectively and expediently as possible, including through
20    the use of race-conscious remedies, such as race-conscious
21    contracting and hiring goals, as consistent with State and
22    federal law.
23        (2) Racial disparity and discrimination review
24    process.
25            (A) Within one year after awarding contracts using
26        the equity actions processes established in this

 

 

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1        Section, the Agency shall publish a report evaluating
2        the effectiveness of the equity actions point criteria
3        of this Section in increasing participation of equity
4        eligible persons and equity eligible contractors. The
5        report shall disaggregate participating workers and
6        contractors by race and ethnicity. The report shall be
7        forwarded to the Governor, the General Assembly, and
8        the Illinois Commerce Commission and be made available
9        to the public.
10            (B) As soon as is practicable thereafter, the
11        Agency, in consultation with the Department of
12        Commerce and Economic Opportunity, Department of
13        Labor, and other agencies that may be relevant, shall
14        commission and publish a disparity and availability
15        study that measures the presence and impact of
16        discrimination on minority businesses and workers in
17        Illinois' clean energy economy. The Agency may hire
18        consultants and experts to conduct the disparity and
19        availability study, with the retention of those
20        consultants and experts exempt from the requirements
21        of Section 20-10 of the Illinois Procurement Code. The
22        Illinois Power Agency shall forward a copy of its
23        findings and recommendations to the Governor, the
24        General Assembly, and the Illinois Commerce
25        Commission. If the disparity and availability study
26        establishes a strong basis in evidence that there is

 

 

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1        discrimination in Illinois' clean energy economy, the
2        Agency, Department of Commerce and Economic
3        Opportunity, Department of Labor, Department of
4        Corrections, and other appropriate agencies shall take
5        appropriate remedial actions, including race-conscious
6        remedial actions as consistent with State and federal
7        law, to effectively remedy this discrimination. Such
8        remedies may include modification of the equity
9        accountability system as described in subsection
10        (c-10).
11    (c-20) Program data collection.
12        (1) Purpose. Data collection, data analysis, and
13    reporting are critical to ensure that the benefits of the
14    clean energy economy provided to Illinois residents and
15    businesses are equitably distributed across the State. The
16    Agency shall collect data from program applicants in order
17    to track and improve equitable distribution of benefits
18    across Illinois communities for all procurements the
19    Agency conducts. The Agency shall use this data to, among
20    other things, measure any potential impact of racial
21    discrimination on the distribution of benefits and provide
22    information necessary to correct any discrimination
23    through methods consistent with State and federal law.
24        (2) Agency collection of program data. The Agency
25    shall collect demographic and geographic data for each
26    entity awarded contracts under any Agency-administered

 

 

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1    program.
2        (3) Required information to be collected. The Agency
3    shall collect the following information from applicants
4    and program participants where applicable:
5            (A) demographic information, including racial or
6        ethnic identity for real persons employed, contracted,
7        or subcontracted through the program and owners of
8        businesses or entities that apply to receive renewable
9        energy credits from the Agency;
10            (B) geographic location of the residency of real
11        persons employed, contracted, or subcontracted through
12        the program and geographic location of the
13        headquarters of the business or entity that applies to
14        receive renewable energy credits from the Agency; and
15            (C) any other information the Agency determines is
16        necessary for the purpose of achieving the purpose of
17        this subsection.
18        (4) Publication of collected information. The Agency
19    shall publish, at least annually, information on the
20    demographics of program participants on an aggregate
21    basis.
22        (5) Nothing in this subsection shall be interpreted to
23    limit the authority of the Agency, or other agency or
24    department of the State, to require or collect demographic
25    information from applicants of other State programs.
26    (c-25) Energy Workforce Equity Database.

 

 

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1        (1) The Agency, in consultation with the Department of
2    Commerce and Economic Opportunity, shall create an Energy
3    Workforce Equity Database, and may contract with a third
4    party to do so ("database program administrator"). If the
5    Department decides to contract with a third party, that
6    third party shall be exempt from the requirements of
7    Section 20-10 of the Illinois Procurement Code. The Energy
8    Workforce Equity Database shall be a searchable database
9    of suppliers, vendors, and subcontractors for clean energy
10    industries that is:
11            (A) publicly accessible;
12            (B) easy for people to find and use;
13            (C) organized by company specialty or field;
14            (D) region-specific; and
15            (E) populated with information including, but not
16        limited to, contacts for suppliers, vendors, or
17        subcontractors who are minority and women-owned
18        business enterprise certified or who participate or
19        have participated in any of the programs described in
20        this Act.
21        (2) The Agency shall create an easily accessible,
22    public facing online tool using the database information
23    that includes, at a minimum, the following:
24            (A) a map of environmental justice and equity
25        investment eligible communities;
26            (B) job postings and recruiting opportunities;

 

 

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1            (C) a means by which recruiting clean energy
2        companies can find and interact with current or former
3        participants of clean energy workforce training
4        programs;
5            (D) information on workforce training service
6        providers and training opportunities available to
7        prospective workers;
8            (E) renewable energy company diversity reporting;
9            (F) a list of equity eligible contractors with
10        their contact information, types of work performed,
11        and locations worked in;
12            (G) reporting on outcomes of the programs
13        described in the workforce programs of the Energy
14        Transition Act, including information such as, but not
15        limited to, retention rate, graduation rate, and
16        placement rates of trainees; and
17            (H) information about the Jobs and Environmental
18        Justice Grant Program, the Clean Energy Jobs and
19        Justice Fund, and other sources of capital.
20        (3) The Agency shall ensure the database is regularly
21    updated to ensure information is current and shall
22    coordinate with the Department of Commerce and Economic
23    Opportunity to ensure that it includes information on
24    individuals and entities that are or have participated in
25    the Clean Jobs Workforce Network Program, Clean Energy
26    Contractor Incubator Program, Returning Residents Clean

 

 

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1    Jobs Training Program, or Clean Energy Primes Contractor
2    Accelerator Program.
3    (c-30) Enforcement of minimum equity standards. All
4entities seeking renewable energy credits must submit an
5annual report to demonstrate compliance with each of the
6equity commitments required under subsection (c-10). If the
7Agency concludes the entity has not met or maintained its
8minimum equity standards required under the applicable
9subparagraphs under subsection (c-10), the Agency shall deny
10the entity's ability to participate in procurement programs in
11subsection (c), including by withholding approved vendor or
12designee status. The Agency may require the entity to enter
13into a corrective action plan. An entity that is not
14recertified for failing to meet required equity actions in
15subparagraph (c-10) may reapply once they have a corrective
16action plan and achieve compliance with the minimum equity
17standards.
18    (d) Clean coal portfolio standard.
19        (1) The procurement plans shall include electricity
20    generated using clean coal. Each utility shall enter into
21    one or more sourcing agreements with the initial clean
22    coal facility, as provided in paragraph (3) of this
23    subsection (d), covering electricity generated by the
24    initial clean coal facility representing at least 5% of
25    each utility's total supply to serve the load of eligible
26    retail customers in 2015 and each year thereafter, as

 

 

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1    described in paragraph (3) of this subsection (d), subject
2    to the limits specified in paragraph (2) of this
3    subsection (d). It is the goal of the State that by January
4    1, 2025, 25% of the electricity used in the State shall be
5    generated by cost-effective clean coal facilities. For
6    purposes of this subsection (d), "cost-effective" means
7    that the expenditures pursuant to such sourcing agreements
8    do not cause the limit stated in paragraph (2) of this
9    subsection (d) to be exceeded and do not exceed cost-based
10    benchmarks, which shall be developed to assess all
11    expenditures pursuant to such sourcing agreements covering
12    electricity generated by clean coal facilities, other than
13    the initial clean coal facility, by the procurement
14    administrator, in consultation with the Commission staff,
15    Agency staff, and the procurement monitor and shall be
16    subject to Commission review and approval.
17        A utility party to a sourcing agreement shall
18    immediately retire any emission credits that it receives
19    in connection with the electricity covered by such
20    agreement.
21        Utilities shall maintain adequate records documenting
22    the purchases under the sourcing agreement to comply with
23    this subsection (d) and shall file an accounting with the
24    load forecast that must be filed with the Agency by July 15
25    of each year, in accordance with subsection (d) of Section
26    16-111.5 of the Public Utilities Act.

 

 

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1        A utility shall be deemed to have complied with the
2    clean coal portfolio standard specified in this subsection
3    (d) if the utility enters into a sourcing agreement as
4    required by this subsection (d).
5        (2) For purposes of this subsection (d), the required
6    execution of sourcing agreements with the initial clean
7    coal facility for a particular year shall be measured as a
8    percentage of the actual amount of electricity
9    (megawatt-hours) supplied by the electric utility to
10    eligible retail customers in the planning year ending
11    immediately prior to the agreement's execution. For
12    purposes of this subsection (d), the amount paid per
13    kilowatthour means the total amount paid for electric
14    service expressed on a per kilowatthour basis. For
15    purposes of this subsection (d), the total amount paid for
16    electric service includes without limitation amounts paid
17    for supply, transmission, distribution, surcharges and
18    add-on taxes.
19        Notwithstanding the requirements of this subsection
20    (d), the total amount paid under sourcing agreements with
21    clean coal facilities pursuant to the procurement plan for
22    any given year shall be reduced by an amount necessary to
23    limit the annual estimated average net increase due to the
24    costs of these resources included in the amounts paid by
25    eligible retail customers in connection with electric
26    service to:

 

 

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1            (A) in 2010, no more than 0.5% of the amount paid
2        per kilowatthour by those customers during the year
3        ending May 31, 2009;
4            (B) in 2011, the greater of an additional 0.5% of
5        the amount paid per kilowatthour by those customers
6        during the year ending May 31, 2010 or 1% of the amount
7        paid per kilowatthour by those customers during the
8        year ending May 31, 2009;
9            (C) in 2012, the greater of an additional 0.5% of
10        the amount paid per kilowatthour by those customers
11        during the year ending May 31, 2011 or 1.5% of the
12        amount paid per kilowatthour by those customers during
13        the year ending May 31, 2009;
14            (D) in 2013, the greater of an additional 0.5% of
15        the amount paid per kilowatthour by those customers
16        during the year ending May 31, 2012 or 2% of the amount
17        paid per kilowatthour by those customers during the
18        year ending May 31, 2009; and
19            (E) thereafter, the total amount paid under
20        sourcing agreements with clean coal facilities
21        pursuant to the procurement plan for any single year
22        shall be reduced by an amount necessary to limit the
23        estimated average net increase due to the cost of
24        these resources included in the amounts paid by
25        eligible retail customers in connection with electric
26        service to no more than the greater of (i) 2.015% of

 

 

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1        the amount paid per kilowatthour by those customers
2        during the year ending May 31, 2009 or (ii) the
3        incremental amount per kilowatthour paid for these
4        resources in 2013. These requirements may be altered
5        only as provided by statute.
6        No later than June 30, 2015, the Commission shall
7    review the limitation on the total amount paid under
8    sourcing agreements, if any, with clean coal facilities
9    pursuant to this subsection (d) and report to the General
10    Assembly its findings as to whether that limitation unduly
11    constrains the amount of electricity generated by
12    cost-effective clean coal facilities that is covered by
13    sourcing agreements.
14        (3) Initial clean coal facility. In order to promote
15    development of clean coal facilities in Illinois, each
16    electric utility subject to this Section shall execute a
17    sourcing agreement to source electricity from a proposed
18    clean coal facility in Illinois (the "initial clean coal
19    facility") that will have a nameplate capacity of at least
20    500 MW when commercial operation commences, that has a
21    final Clean Air Act permit on June 1, 2009 (the effective
22    date of Public Act 95-1027), and that will meet the
23    definition of clean coal facility in Section 1-10 of this
24    Act when commercial operation commences. The sourcing
25    agreements with this initial clean coal facility shall be
26    subject to both approval of the initial clean coal

 

 

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1    facility by the General Assembly and satisfaction of the
2    requirements of paragraph (4) of this subsection (d) and
3    shall be executed within 90 days after any such approval
4    by the General Assembly. The Agency and the Commission
5    shall have authority to inspect all books and records
6    associated with the initial clean coal facility during the
7    term of such a sourcing agreement. A utility's sourcing
8    agreement for electricity produced by the initial clean
9    coal facility shall include:
10            (A) a formula contractual price (the "contract
11        price") approved pursuant to paragraph (4) of this
12        subsection (d), which shall:
13                (i) be determined using a cost of service
14            methodology employing either a level or deferred
15            capital recovery component, based on a capital
16            structure consisting of 45% equity and 55% debt,
17            and a return on equity as may be approved by the
18            Federal Energy Regulatory Commission, which in any
19            case may not exceed the lower of 11.5% or the rate
20            of return approved by the General Assembly
21            pursuant to paragraph (4) of this subsection (d);
22            and
23                (ii) provide that all miscellaneous net
24            revenue, including but not limited to net revenue
25            from the sale of emission allowances, if any,
26            substitute natural gas, if any, grants or other

 

 

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1            support provided by the State of Illinois or the
2            United States Government, firm transmission
3            rights, if any, by-products produced by the
4            facility, energy or capacity derived from the
5            facility and not covered by a sourcing agreement
6            pursuant to paragraph (3) of this subsection (d)
7            or item (5) of subsection (d) of Section 16-115 of
8            the Public Utilities Act, whether generated from
9            the synthesis gas derived from coal, from SNG, or
10            from natural gas, shall be credited against the
11            revenue requirement for this initial clean coal
12            facility;
13            (B) power purchase provisions, which shall:
14                (i) provide that the utility party to such
15            sourcing agreement shall pay the contract price
16            for electricity delivered under such sourcing
17            agreement;
18                (ii) require delivery of electricity to the
19            regional transmission organization market of the
20            utility that is party to such sourcing agreement;
21                (iii) require the utility party to such
22            sourcing agreement to buy from the initial clean
23            coal facility in each hour an amount of energy
24            equal to all clean coal energy made available from
25            the initial clean coal facility during such hour
26            times a fraction, the numerator of which is such

 

 

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1            utility's retail market sales of electricity
2            (expressed in kilowatthours sold) in the State
3            during the prior calendar month and the
4            denominator of which is the total retail market
5            sales of electricity (expressed in kilowatthours
6            sold) in the State by utilities during such prior
7            month and the sales of electricity (expressed in
8            kilowatthours sold) in the State by alternative
9            retail electric suppliers during such prior month
10            that are subject to the requirements of this
11            subsection (d) and paragraph (5) of subsection (d)
12            of Section 16-115 of the Public Utilities Act,
13            provided that the amount purchased by the utility
14            in any year will be limited by paragraph (2) of
15            this subsection (d); and
16                (iv) be considered pre-existing contracts in
17            such utility's procurement plans for eligible
18            retail customers;
19            (C) contract for differences provisions, which
20        shall:
21                (i) require the utility party to such sourcing
22            agreement to contract with the initial clean coal
23            facility in each hour with respect to an amount of
24            energy equal to all clean coal energy made
25            available from the initial clean coal facility
26            during such hour times a fraction, the numerator

 

 

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1            of which is such utility's retail market sales of
2            electricity (expressed in kilowatthours sold) in
3            the utility's service territory in the State
4            during the prior calendar month and the
5            denominator of which is the total retail market
6            sales of electricity (expressed in kilowatthours
7            sold) in the State by utilities during such prior
8            month and the sales of electricity (expressed in
9            kilowatthours sold) in the State by alternative
10            retail electric suppliers during such prior month
11            that are subject to the requirements of this
12            subsection (d) and paragraph (5) of subsection (d)
13            of Section 16-115 of the Public Utilities Act,
14            provided that the amount paid by the utility in
15            any year will be limited by paragraph (2) of this
16            subsection (d);
17                (ii) provide that the utility's payment
18            obligation in respect of the quantity of
19            electricity determined pursuant to the preceding
20            clause (i) shall be limited to an amount equal to
21            (1) the difference between the contract price
22            determined pursuant to subparagraph (A) of
23            paragraph (3) of this subsection (d) and the
24            day-ahead price for electricity delivered to the
25            regional transmission organization market of the
26            utility that is party to such sourcing agreement

 

 

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1            (or any successor delivery point at which such
2            utility's supply obligations are financially
3            settled on an hourly basis) (the "reference
4            price") on the day preceding the day on which the
5            electricity is delivered to the initial clean coal
6            facility busbar, multiplied by (2) the quantity of
7            electricity determined pursuant to the preceding
8            clause (i); and
9                (iii) not require the utility to take physical
10            delivery of the electricity produced by the
11            facility;
12            (D) general provisions, which shall:
13                (i) specify a term of no more than 30 years,
14            commencing on the commercial operation date of the
15            facility;
16                (ii) provide that utilities shall maintain
17            adequate records documenting purchases under the
18            sourcing agreements entered into to comply with
19            this subsection (d) and shall file an accounting
20            with the load forecast that must be filed with the
21            Agency by July 15 of each year, in accordance with
22            subsection (d) of Section 16-111.5 of the Public
23            Utilities Act;
24                (iii) provide that all costs associated with
25            the initial clean coal facility will be
26            periodically reported to the Federal Energy

 

 

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1            Regulatory Commission and to purchasers in
2            accordance with applicable laws governing
3            cost-based wholesale power contracts;
4                (iv) permit the Illinois Power Agency to
5            assume ownership of the initial clean coal
6            facility, without monetary consideration and
7            otherwise on reasonable terms acceptable to the
8            Agency, if the Agency so requests no less than 3
9            years prior to the end of the stated contract
10            term;
11                (v) require the owner of the initial clean
12            coal facility to provide documentation to the
13            Commission each year, starting in the facility's
14            first year of commercial operation, accurately
15            reporting the quantity of carbon emissions from
16            the facility that have been captured and
17            sequestered and report any quantities of carbon
18            released from the site or sites at which carbon
19            emissions were sequestered in prior years, based
20            on continuous monitoring of such sites. If, in any
21            year after the first year of commercial operation,
22            the owner of the facility fails to demonstrate
23            that the initial clean coal facility captured and
24            sequestered at least 50% of the total carbon
25            emissions that the facility would otherwise emit
26            or that sequestration of emissions from prior

 

 

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1            years has failed, resulting in the release of
2            carbon dioxide into the atmosphere, the owner of
3            the facility must offset excess emissions. Any
4            such carbon offsets must be permanent, additional,
5            verifiable, real, located within the State of
6            Illinois, and legally and practicably enforceable.
7            The cost of such offsets for the facility that are
8            not recoverable shall not exceed $15 million in
9            any given year. No costs of any such purchases of
10            carbon offsets may be recovered from a utility or
11            its customers. All carbon offsets purchased for
12            this purpose and any carbon emission credits
13            associated with sequestration of carbon from the
14            facility must be permanently retired. The initial
15            clean coal facility shall not forfeit its
16            designation as a clean coal facility if the
17            facility fails to fully comply with the applicable
18            carbon sequestration requirements in any given
19            year, provided the requisite offsets are
20            purchased. However, the Attorney General, on
21            behalf of the People of the State of Illinois, may
22            specifically enforce the facility's sequestration
23            requirement and the other terms of this contract
24            provision. Compliance with the sequestration
25            requirements and offset purchase requirements
26            specified in paragraph (3) of this subsection (d)

 

 

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1            shall be reviewed annually by an independent
2            expert retained by the owner of the initial clean
3            coal facility, with the advance written approval
4            of the Attorney General. The Commission may, in
5            the course of the review specified in item (vii),
6            reduce the allowable return on equity for the
7            facility if the facility willfully fails to comply
8            with the carbon capture and sequestration
9            requirements set forth in this item (v);
10                (vi) include limits on, and accordingly
11            provide for modification of, the amount the
12            utility is required to source under the sourcing
13            agreement consistent with paragraph (2) of this
14            subsection (d);
15                (vii) require Commission review: (1) to
16            determine the justness, reasonableness, and
17            prudence of the inputs to the formula referenced
18            in subparagraphs (A)(i) through (A)(iii) of
19            paragraph (3) of this subsection (d), prior to an
20            adjustment in those inputs including, without
21            limitation, the capital structure and return on
22            equity, fuel costs, and other operations and
23            maintenance costs and (2) to approve the costs to
24            be passed through to customers under the sourcing
25            agreement by which the utility satisfies its
26            statutory obligations. Commission review shall

 

 

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1            occur no less than every 3 years, regardless of
2            whether any adjustments have been proposed, and
3            shall be completed within 9 months;
4                (viii) limit the utility's obligation to such
5            amount as the utility is allowed to recover
6            through tariffs filed with the Commission,
7            provided that neither the clean coal facility nor
8            the utility waives any right to assert federal
9            pre-emption or any other argument in response to a
10            purported disallowance of recovery costs;
11                (ix) limit the utility's or alternative retail
12            electric supplier's obligation to incur any
13            liability until such time as the facility is in
14            commercial operation and generating power and
15            energy and such power and energy is being
16            delivered to the facility busbar;
17                (x) provide that the owner or owners of the
18            initial clean coal facility, which is the
19            counterparty to such sourcing agreement, shall
20            have the right from time to time to elect whether
21            the obligations of the utility party thereto shall
22            be governed by the power purchase provisions or
23            the contract for differences provisions;
24                (xi) append documentation showing that the
25            formula rate and contract, insofar as they relate
26            to the power purchase provisions, have been

 

 

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1            approved by the Federal Energy Regulatory
2            Commission pursuant to Section 205 of the Federal
3            Power Act;
4                (xii) provide that any changes to the terms of
5            the contract, insofar as such changes relate to
6            the power purchase provisions, are subject to
7            review under the public interest standard applied
8            by the Federal Energy Regulatory Commission
9            pursuant to Sections 205 and 206 of the Federal
10            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 initial
20        clean coal facility shall submit to the Commission,
21        the Agency, and the General Assembly a front-end
22        engineering and design study, a facility cost report,
23        method of financing (including but not limited to
24        structure and associated costs), and an operating and
25        maintenance cost quote for the facility (collectively
26        "facility cost report"), which shall be prepared in

 

 

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1        accordance with the requirements of this paragraph (4)
2        of subsection (d) of this Section, and shall provide
3        the Commission and the Agency access to the work
4        papers, relied upon documents, and any other backup
5        documentation related to the facility cost report.
6            (ii) Commission report. Within 6 months following
7        receipt of the facility cost report, the Commission,
8        in consultation with the Agency, shall submit a report
9        to the General Assembly setting forth its analysis of
10        the facility cost report. Such report shall include,
11        but not be limited to, a comparison of the costs
12        associated with electricity generated by the initial
13        clean coal facility to the costs associated with
14        electricity generated by other types of generation
15        facilities, an analysis of the rate impacts on
16        residential and small business customers over the life
17        of the sourcing agreements, and an analysis of the
18        likelihood that the initial clean coal facility will
19        commence commercial operation by and be delivering
20        power to the facility's busbar by 2016. To assist in
21        the preparation of its report, the Commission, in
22        consultation with the Agency, may hire one or more
23        experts or consultants, the costs of which shall be
24        paid for by the owner of the initial clean coal
25        facility. The Commission and Agency may begin the
26        process of selecting such experts or consultants prior

 

 

HB4731- 136 -LRB102 24633 AMQ 33871 b

1        to receipt of the facility cost report.
2            (iii) General Assembly approval. The proposed
3        sourcing agreements shall not take effect unless,
4        based on the facility cost report and the Commission's
5        report, the General Assembly enacts authorizing
6        legislation approving (A) the projected price, stated
7        in cents per kilowatthour, to be charged for
8        electricity generated by the initial clean coal
9        facility, (B) the projected impact on residential and
10        small business customers' bills over the life of the
11        sourcing agreements, and (C) the maximum allowable
12        return on equity for the project; and
13            (iv) Commission review. If the General Assembly
14        enacts authorizing legislation pursuant to
15        subparagraph (iii) approving a sourcing agreement, the
16        Commission shall, within 90 days of such enactment,
17        complete a review of such sourcing agreement. During
18        such time period, the Commission shall implement any
19        directive of the General Assembly, resolve any
20        disputes between the parties to the sourcing agreement
21        concerning the terms of such agreement, approve the
22        form of such agreement, and issue an order finding
23        that the sourcing agreement is prudent and reasonable.
24        The facility cost report shall be prepared as follows:
25            (A) The facility cost report shall be prepared by
26        duly licensed engineering and construction firms

 

 

HB4731- 137 -LRB102 24633 AMQ 33871 b

1        detailing the estimated capital costs payable to one
2        or more contractors or suppliers for the engineering,
3        procurement and construction of the components
4        comprising the initial clean coal facility and the
5        estimated costs of operation and maintenance of the
6        facility. The facility cost report shall include:
7                (i) an estimate of the capital cost of the
8            core plant based on one or more front end
9            engineering and design studies for the
10            gasification island and related facilities. The
11            core plant shall include all civil, structural,
12            mechanical, electrical, control, and safety
13            systems.
14                (ii) an estimate of the capital cost of the
15            balance of the plant, including any capital costs
16            associated with sequestration of carbon dioxide
17            emissions and all interconnects and interfaces
18            required to operate the facility, such as
19            transmission of electricity, construction or
20            backfeed power supply, pipelines to transport
21            substitute natural gas or carbon dioxide, potable
22            water supply, natural gas supply, water supply,
23            water discharge, landfill, access roads, and coal
24            delivery.
25            The quoted construction costs shall be expressed
26        in nominal dollars as of the date that the quote is

 

 

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1        prepared and shall include capitalized financing costs
2        during construction, taxes, insurance, and other
3        owner's costs, and an assumed escalation in materials
4        and labor beyond the date as of which the construction
5        cost quote is expressed.
6            (B) The front end engineering and design study for
7        the gasification island and the cost study for the
8        balance of plant shall include sufficient design work
9        to permit quantification of major categories of
10        materials, commodities and labor hours, and receipt of
11        quotes from vendors of major equipment required to
12        construct and operate the clean coal facility.
13            (C) The facility cost report shall also include an
14        operating and maintenance cost quote that will provide
15        the estimated cost of delivered fuel, personnel,
16        maintenance contracts, chemicals, catalysts,
17        consumables, spares, and other fixed and variable
18        operations and maintenance costs. The delivered fuel
19        cost estimate will be provided by a recognized third
20        party expert or experts in the fuel and transportation
21        industries. The balance of the operating and
22        maintenance cost quote, excluding delivered fuel
23        costs, will be developed based on the inputs provided
24        by duly licensed engineering and construction firms
25        performing the construction cost quote, potential
26        vendors under long-term service agreements and plant

 

 

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1        operating agreements, or recognized third party plant
2        operator or operators.
3            The operating and maintenance cost quote
4        (including the cost of the front end engineering and
5        design study) shall be expressed in nominal dollars as
6        of the date that the quote is prepared and shall
7        include taxes, insurance, and other owner's costs, and
8        an assumed escalation in materials and labor beyond
9        the date as of which the operating and maintenance
10        cost quote is expressed.
11            (D) The facility cost report shall also include an
12        analysis of the initial clean coal facility's ability
13        to deliver power and energy into the applicable
14        regional transmission organization markets and an
15        analysis of the expected capacity factor for the
16        initial clean coal facility.
17            (E) Amounts paid to third parties unrelated to the
18        owner or owners of the initial clean coal facility to
19        prepare the core plant construction cost quote,
20        including the front end engineering and design study,
21        and the operating and maintenance cost quote will be
22        reimbursed through Coal Development Bonds.
23        (5) Re-powering and retrofitting coal-fired power
24    plants previously owned by Illinois utilities to qualify
25    as clean coal facilities. During the 2009 procurement
26    planning process and thereafter, the Agency and the

 

 

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1    Commission shall consider sourcing agreements covering
2    electricity generated by power plants that were previously
3    owned by Illinois utilities and that have been or will be
4    converted into clean coal facilities, as defined by
5    Section 1-10 of this Act. Pursuant to such procurement
6    planning process, the owners of such facilities may
7    propose to the Agency sourcing agreements with utilities
8    and alternative retail electric suppliers required to
9    comply with subsection (d) of this Section and item (5) of
10    subsection (d) of Section 16-115 of the Public Utilities
11    Act, covering electricity generated by such facilities. In
12    the case of sourcing agreements that are power purchase
13    agreements, the contract price for electricity sales shall
14    be established on a cost of service basis. In the case of
15    sourcing agreements that are contracts for differences,
16    the contract price from which the reference price is
17    subtracted shall be established on a cost of service
18    basis. The Agency and the Commission may approve any such
19    utility sourcing agreements that do not exceed cost-based
20    benchmarks developed by the procurement administrator, in
21    consultation with the Commission staff, Agency staff and
22    the procurement monitor, subject to Commission review and
23    approval. The Commission shall have authority to inspect
24    all books and records associated with these clean coal
25    facilities during the term of any such contract.
26        (6) Costs incurred under this subsection (d) or

 

 

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1    pursuant to a contract entered into under this subsection
2    (d) shall be deemed prudently incurred and reasonable in
3    amount and the electric utility shall be entitled to full
4    cost recovery pursuant to the tariffs filed with the
5    Commission.
6    (d-5) Zero emission standard.
7        (1) Beginning with the delivery year commencing on
8    June 1, 2017, the Agency shall, for electric utilities
9    that serve at least 100,000 retail customers in this
10    State, procure contracts with zero emission facilities
11    that are reasonably capable of generating cost-effective
12    zero emission credits in an amount approximately equal to
13    16% of the actual amount of electricity delivered by each
14    electric utility to retail customers in the State during
15    calendar year 2014. For an electric utility serving fewer
16    than 100,000 retail customers in this State that
17    requested, under Section 16-111.5 of the Public Utilities
18    Act, that the Agency procure power and energy for all or a
19    portion of the utility's Illinois load for the delivery
20    year commencing June 1, 2016, the Agency shall procure
21    contracts with zero emission facilities that are
22    reasonably capable of generating cost-effective zero
23    emission credits in an amount approximately equal to 16%
24    of the portion of power and energy to be procured by the
25    Agency for the utility. The duration of the contracts
26    procured under this subsection (d-5) shall be for a term

 

 

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1    of 10 years ending May 31, 2027. The quantity of zero
2    emission credits to be procured under the contracts shall
3    be all of the zero emission credits generated by the zero
4    emission facility in each delivery year; however, if the
5    zero emission facility is owned by more than one entity,
6    then the quantity of zero emission credits to be procured
7    under the contracts shall be the amount of zero emission
8    credits that are generated from the portion of the zero
9    emission facility that is owned by the winning supplier.
10        The 16% value identified in this paragraph (1) is the
11    average of the percentage targets in subparagraph (B) of
12    paragraph (1) of subsection (c) of this Section for the 5
13    delivery years beginning June 1, 2017.
14        The procurement process shall be subject to the
15    following provisions:
16            (A) Those zero emission facilities that intend to
17        participate in the procurement shall submit to the
18        Agency the following eligibility information for each
19        zero emission facility on or before the date
20        established by the Agency:
21                (i) the in-service date and remaining useful
22            life of the zero emission facility;
23                (ii) the amount of power generated annually
24            for each of the years 2005 through 2015, and the
25            projected zero emission credits to be generated
26            over the remaining useful life of the zero

 

 

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1            emission facility, which shall be used to
2            determine the capability of each facility;
3                (iii) the annual zero emission facility cost
4            projections, expressed on a per megawatthour
5            basis, over the next 6 delivery years, which shall
6            include the following: operation and maintenance
7            expenses; fully allocated overhead costs, which
8            shall be allocated using the methodology developed
9            by the Institute for Nuclear Power Operations;
10            fuel expenditures; non-fuel capital expenditures;
11            spent fuel expenditures; a return on working
12            capital; the cost of operational and market risks
13            that could be avoided by ceasing operation; and
14            any other costs necessary for continued
15            operations, provided that "necessary" means, for
16            purposes of this item (iii), that the costs could
17            reasonably be avoided only by ceasing operations
18            of the zero emission facility; and
19                (iv) a commitment to continue operating, for
20            the duration of the contract or contracts executed
21            under the procurement held under this subsection
22            (d-5), the zero emission facility that produces
23            the zero emission credits to be procured in the
24            procurement.
25            The information described in item (iii) of this
26        subparagraph (A) may be submitted on a confidential

 

 

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1        basis and shall be treated and maintained by the
2        Agency, the procurement administrator, and the
3        Commission as confidential and proprietary and exempt
4        from disclosure under subparagraphs (a) and (g) of
5        paragraph (1) of Section 7 of the Freedom of
6        Information Act. The Office of Attorney General shall
7        have access to, and maintain the confidentiality of,
8        such information pursuant to Section 6.5 of the
9        Attorney General Act.
10            (B) The price for each zero emission credit
11        procured under this subsection (d-5) for each delivery
12        year shall be in an amount that equals the Social Cost
13        of Carbon, expressed on a price per megawatthour
14        basis. However, to ensure that the procurement remains
15        affordable to retail customers in this State if
16        electricity prices increase, the price in an
17        applicable delivery year shall be reduced below the
18        Social Cost of Carbon by the amount ("Price
19        Adjustment") by which the market price index for the
20        applicable delivery year exceeds the baseline market
21        price index for the consecutive 12-month period ending
22        May 31, 2016. If the Price Adjustment is greater than
23        or equal to the Social Cost of Carbon in an applicable
24        delivery year, then no payments shall be due in that
25        delivery year. The components of this calculation are
26        defined as follows:

 

 

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1                (i) Social Cost of Carbon: The Social Cost of
2            Carbon is $16.50 per megawatthour, which is based
3            on the U.S. Interagency Working Group on Social
4            Cost of Carbon's price in the August 2016
5            Technical Update using a 3% discount rate,
6            adjusted for inflation for each year of the
7            program. Beginning with the delivery year
8            commencing June 1, 2023, the price per
9            megawatthour shall increase by $1 per
10            megawatthour, and continue to increase by an
11            additional $1 per megawatthour each delivery year
12            thereafter.
13                (ii) Baseline market price index: The baseline
14            market price index for the consecutive 12-month
15            period ending May 31, 2016 is $31.40 per
16            megawatthour, which is based on the sum of (aa)
17            the average day-ahead energy price across all
18            hours of such 12-month period at the PJM
19            Interconnection LLC Northern Illinois Hub, (bb)
20            50% multiplied by the Base Residual Auction, or
21            its successor, capacity price for the rest of the
22            RTO zone group determined by PJM Interconnection
23            LLC, divided by 24 hours per day, and (cc) 50%
24            multiplied by the Planning Resource Auction, or
25            its successor, capacity price for Zone 4
26            determined by the Midcontinent Independent System

 

 

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1            Operator, Inc., divided by 24 hours per day.
2                (iii) Market price index: The market price
3            index for a delivery year shall be the sum of
4            projected energy prices and projected capacity
5            prices determined as follows:
6                    (aa) Projected energy prices: the
7                projected energy prices for the applicable
8                delivery year shall be calculated once for the
9                year using the forward market price for the
10                PJM Interconnection, LLC Northern Illinois
11                Hub. The forward market price shall be
12                calculated as follows: the energy forward
13                prices for each month of the applicable
14                delivery year averaged for each trade date
15                during the calendar year immediately preceding
16                that delivery year to produce a single energy
17                forward price for the delivery year. The
18                forward market price calculation shall use
19                data published by the Intercontinental
20                Exchange, or its successor.
21                    (bb) Projected capacity prices:
22                        (I) For the delivery years commencing
23                    June 1, 2017, June 1, 2018, and June 1,
24                    2019, the projected capacity price shall
25                    be equal to the sum of (1) 50% multiplied
26                    by the Base Residual Auction, or its

 

 

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1                    successor, price for the rest of the RTO
2                    zone group as determined by PJM
3                    Interconnection LLC, divided by 24 hours
4                    per day and, (2) 50% multiplied by the
5                    resource auction price determined in the
6                    resource auction administered by the
7                    Midcontinent Independent System Operator,
8                    Inc., in which the largest percentage of
9                    load cleared for Local Resource Zone 4,
10                    divided by 24 hours per day, and where
11                    such price is determined by the
12                    Midcontinent Independent System Operator,
13                    Inc.
14                        (II) For the delivery year commencing
15                    June 1, 2020, and each year thereafter,
16                    the projected capacity price shall be
17                    equal to the sum of (1) 50% multiplied by
18                    the Base Residual Auction, or its
19                    successor, price for the ComEd zone as
20                    determined by PJM Interconnection LLC,
21                    divided by 24 hours per day, and (2) 50%
22                    multiplied by the resource auction price
23                    determined in the resource auction
24                    administered by the Midcontinent
25                    Independent System Operator, Inc., in
26                    which the largest percentage of load

 

 

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1                    cleared for Local Resource Zone 4, divided
2                    by 24 hours per day, and where such price
3                    is determined by the Midcontinent
4                    Independent System Operator, Inc.
5            For purposes of this subsection (d-5):
6                "Rest of the RTO" and "ComEd Zone" shall have
7            the meaning ascribed to them by PJM
8            Interconnection, LLC.
9                "RTO" means regional transmission
10            organization.
11            (C) No later than 45 days after June 1, 2017 (the
12        effective date of Public Act 99-906), the Agency shall
13        publish its proposed zero emission standard
14        procurement plan. The plan shall be consistent with
15        the provisions of this paragraph (1) and shall provide
16        that winning bids shall be selected based on public
17        interest criteria that include, but are not limited
18        to, minimizing carbon dioxide emissions that result
19        from electricity consumed in Illinois and minimizing
20        sulfur dioxide, nitrogen oxide, and particulate matter
21        emissions that adversely affect the citizens of this
22        State. In particular, the selection of winning bids
23        shall take into account the incremental environmental
24        benefits resulting from the procurement, such as any
25        existing environmental benefits that are preserved by
26        the procurements held under Public Act 99-906 and

 

 

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1        would cease to exist if the procurements were not
2        held, including the preservation of zero emission
3        facilities. The plan shall also describe in detail how
4        each public interest factor shall be considered and
5        weighted in the bid selection process to ensure that
6        the public interest criteria are applied to the
7        procurement and given full effect.
8            For purposes of developing the plan, the Agency
9        shall consider any reports issued by a State agency,
10        board, or commission under House Resolution 1146 of
11        the 98th General Assembly and paragraph (4) of
12        subsection (d) of this Section, as well as publicly
13        available analyses and studies performed by or for
14        regional transmission organizations that serve the
15        State and their independent market monitors.
16            Upon publishing of the zero emission standard
17        procurement plan, copies of the plan shall be posted
18        and made publicly available on the Agency's website.
19        All interested parties shall have 10 days following
20        the date of posting to provide comment to the Agency on
21        the plan. All comments shall be posted to the Agency's
22        website. Following the end of the comment period, but
23        no more than 60 days later than June 1, 2017 (the
24        effective date of Public Act 99-906), the Agency shall
25        revise the plan as necessary based on the comments
26        received and file its zero emission standard

 

 

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1        procurement plan with the Commission.
2            If the Commission determines that the plan will
3        result in the procurement of cost-effective zero
4        emission credits, then the Commission shall, after
5        notice and hearing, but no later than 45 days after the
6        Agency filed the plan, approve the plan or approve
7        with modification. For purposes of this subsection
8        (d-5), "cost effective" means the projected costs of
9        procuring zero emission credits from zero emission
10        facilities do not cause the limit stated in paragraph
11        (2) of this subsection to be exceeded.
12            (C-5) As part of the Commission's review and
13        acceptance or rejection of the procurement results,
14        the Commission shall, in its public notice of
15        successful bidders:
16                (i) identify how the winning bids satisfy the
17            public interest criteria described in subparagraph
18            (C) of this paragraph (1) of minimizing carbon
19            dioxide emissions that result from electricity
20            consumed in Illinois and minimizing sulfur
21            dioxide, nitrogen oxide, and particulate matter
22            emissions that adversely affect the citizens of
23            this State;
24                (ii) specifically address how the selection of
25            winning bids takes into account the incremental
26            environmental benefits resulting from the

 

 

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1            procurement, including any existing environmental
2            benefits that are preserved by the procurements
3            held under Public Act 99-906 and would have ceased
4            to exist if the procurements had not been held,
5            such as the preservation of zero emission
6            facilities;
7                (iii) quantify the environmental benefit of
8            preserving the resources identified in item (ii)
9            of this subparagraph (C-5), including the
10            following:
11                    (aa) the value of avoided greenhouse gas
12                emissions measured as the product of the zero
13                emission facilities' output over the contract
14                term multiplied by the U.S. Environmental
15                Protection Agency eGrid subregion carbon
16                dioxide emission rate and the U.S. Interagency
17                Working Group on Social Cost of Carbon's price
18                in the August 2016 Technical Update using a 3%
19                discount rate, adjusted for inflation for each
20                delivery year; and
21                    (bb) the costs of replacement with other
22                zero carbon dioxide resources, including wind
23                and photovoltaic, based upon the simple
24                average of the following:
25                        (I) the price, or if there is more
26                    than one price, the average of the prices,

 

 

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1                    paid for renewable energy credits from new
2                    utility-scale wind projects in the
3                    procurement events specified in item (i)
4                    of subparagraph (G) of paragraph (1) of
5                    subsection (c) of this Section; and
6                        (II) the price, or if there is more
7                    than one price, the average of the prices,
8                    paid for renewable energy credits from new
9                    utility-scale solar projects and
10                    brownfield site photovoltaic projects in
11                    the procurement events specified in item
12                    (ii) of subparagraph (G) of paragraph (1)
13                    of subsection (c) of this Section and,
14                    after January 1, 2015, renewable energy
15                    credits from photovoltaic distributed
16                    generation projects in procurement events
17                    held under subsection (c) of this Section.
18            Each utility shall enter into binding contractual
19        arrangements with the winning suppliers.
20            The procurement described in this subsection
21        (d-5), including, but not limited to, the execution of
22        all contracts procured, shall be completed no later
23        than May 10, 2017. Based on the effective date of
24        Public Act 99-906, the Agency and Commission may, as
25        appropriate, modify the various dates and timelines
26        under this subparagraph and subparagraphs (C) and (D)

 

 

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1        of this paragraph (1). The procurement and plan
2        approval processes required by this subsection (d-5)
3        shall be conducted in conjunction with the procurement
4        and plan approval processes required by subsection (c)
5        of this Section and Section 16-111.5 of the Public
6        Utilities Act, to the extent practicable.
7        Notwithstanding whether a procurement event is
8        conducted under Section 16-111.5 of the Public
9        Utilities Act, the Agency shall immediately initiate a
10        procurement process on June 1, 2017 (the effective
11        date of Public Act 99-906).
12            (D) Following the procurement event described in
13        this paragraph (1) and consistent with subparagraph
14        (B) of this paragraph (1), the Agency shall calculate
15        the payments to be made under each contract for the
16        next delivery year based on the market price index for
17        that delivery year. The Agency shall publish the
18        payment calculations no later than May 25, 2017 and
19        every May 25 thereafter.
20            (E) Notwithstanding the requirements of this
21        subsection (d-5), the contracts executed under this
22        subsection (d-5) shall provide that the zero emission
23        facility may, as applicable, suspend or terminate
24        performance under the contracts in the following
25        instances:
26                (i) A zero emission facility shall be excused

 

 

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1            from its performance under the contract for any
2            cause beyond the control of the resource,
3            including, but not restricted to, acts of God,
4            flood, drought, earthquake, storm, fire,
5            lightning, epidemic, war, riot, civil disturbance
6            or disobedience, labor dispute, labor or material
7            shortage, sabotage, acts of public enemy,
8            explosions, orders, regulations or restrictions
9            imposed by governmental, military, or lawfully
10            established civilian authorities, which, in any of
11            the foregoing cases, by exercise of commercially
12            reasonable efforts the zero emission facility
13            could not reasonably have been expected to avoid,
14            and which, by the exercise of commercially
15            reasonable efforts, it has been unable to
16            overcome. In such event, the zero emission
17            facility shall be excused from performance for the
18            duration of the event, including, but not limited
19            to, delivery of zero emission credits, and no
20            payment shall be due to the zero emission facility
21            during the duration of the event.
22                (ii) A zero emission facility shall be
23            permitted to terminate the contract if legislation
24            is enacted into law by the General Assembly that
25            imposes or authorizes a new tax, special
26            assessment, or fee on the generation of

 

 

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1            electricity, the ownership or leasehold of a
2            generating unit, or the privilege or occupation of
3            such generation, ownership, or leasehold of
4            generation units by a zero emission facility.
5            However, the provisions of this item (ii) do not
6            apply to any generally applicable tax, special
7            assessment or fee, or requirements imposed by
8            federal law.
9                (iii) A zero emission facility shall be
10            permitted to terminate the contract in the event
11            that the resource requires capital expenditures in
12            excess of $40,000,000 that were neither known nor
13            reasonably foreseeable at the time it executed the
14            contract and that a prudent owner or operator of
15            such resource would not undertake.
16                (iv) A zero emission facility shall be
17            permitted to terminate the contract in the event
18            the Nuclear Regulatory Commission terminates the
19            resource's license.
20            (F) If the zero emission facility elects to
21        terminate a contract under subparagraph (E) of this
22        paragraph (1), then the Commission shall reopen the
23        docket in which the Commission approved the zero
24        emission standard procurement plan under subparagraph
25        (C) of this paragraph (1) and, after notice and
26        hearing, enter an order acknowledging the contract

 

 

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1        termination election if such termination is consistent
2        with the provisions of this subsection (d-5).
3        (2) For purposes of this subsection (d-5), the amount
4    paid per kilowatthour means the total amount paid for
5    electric service expressed on a per kilowatthour basis.
6    For purposes of this subsection (d-5), the total amount
7    paid for electric service includes, without limitation,
8    amounts paid for supply, transmission, distribution,
9    surcharges, and add-on taxes.
10        Notwithstanding the requirements of this subsection
11    (d-5), the contracts executed under this subsection (d-5)
12    shall provide that the total of zero emission credits
13    procured under a procurement plan shall be subject to the
14    limitations of this paragraph (2). For each delivery year,
15    the contractual volume receiving payments in such year
16    shall be reduced for all retail customers based on the
17    amount necessary to limit the net increase that delivery
18    year to the costs of those credits included in the amounts
19    paid by eligible retail customers in connection with
20    electric service to no more than 1.65% of the amount paid
21    per kilowatthour by eligible retail customers during the
22    year ending May 31, 2009. The result of this computation
23    shall apply to and reduce the procurement for all retail
24    customers, and all those customers shall pay the same
25    single, uniform cents per kilowatthour charge under
26    subsection (k) of Section 16-108 of the Public Utilities

 

 

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1    Act. To arrive at a maximum dollar amount of zero emission
2    credits to be paid for the particular delivery year, the
3    resulting per kilowatthour amount shall be applied to the
4    actual amount of kilowatthours of electricity delivered by
5    the electric utility in the delivery year immediately
6    prior to the procurement, to all retail customers in its
7    service territory. Unpaid contractual volume for any
8    delivery year shall be paid in any subsequent delivery
9    year in which such payments can be made without exceeding
10    the amount specified in this paragraph (2). The
11    calculations required by this paragraph (2) shall be made
12    only once for each procurement plan year. Once the
13    determination as to the amount of zero emission credits to
14    be paid is made based on the calculations set forth in this
15    paragraph (2), no subsequent rate impact determinations
16    shall be made and no adjustments to those contract amounts
17    shall be allowed. All costs incurred under those contracts
18    and in implementing this subsection (d-5) shall be
19    recovered by the electric utility as provided in this
20    Section.
21        No later than June 30, 2019, the Commission shall
22    review the limitation on the amount of zero emission
23    credits procured under this subsection (d-5) and report to
24    the General Assembly its findings as to whether that
25    limitation unduly constrains the procurement of
26    cost-effective zero emission credits.

 

 

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1        (3) Six years after the execution of a contract under
2    this subsection (d-5), the Agency shall determine whether
3    the actual zero emission credit payments received by the
4    supplier over the 6-year period exceed the Average ZEC
5    Payment. In addition, at the end of the term of a contract
6    executed under this subsection (d-5), or at the time, if
7    any, a zero emission facility's contract is terminated
8    under subparagraph (E) of paragraph (1) of this subsection
9    (d-5), then the Agency shall determine whether the actual
10    zero emission credit payments received by the supplier
11    over the term of the contract exceed the Average ZEC
12    Payment, after taking into account any amounts previously
13    credited back to the utility under this paragraph (3). If
14    the Agency determines that the actual zero emission credit
15    payments received by the supplier over the relevant period
16    exceed the Average ZEC Payment, then the supplier shall
17    credit the difference back to the utility. The amount of
18    the credit shall be remitted to the applicable electric
19    utility no later than 120 days after the Agency's
20    determination, which the utility shall reflect as a credit
21    on its retail customer bills as soon as practicable;
22    however, the credit remitted to the utility shall not
23    exceed the total amount of payments received by the
24    facility under its contract.
25        For purposes of this Section, the Average ZEC Payment
26    shall be calculated by multiplying the quantity of zero

 

 

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1    emission credits delivered under the contract times the
2    average contract price. The average contract price shall
3    be determined by subtracting the amount calculated under
4    subparagraph (B) of this paragraph (3) from the amount
5    calculated under subparagraph (A) of this paragraph (3),
6    as follows:
7            (A) The average of the Social Cost of Carbon, as
8        defined in subparagraph (B) of paragraph (1) of this
9        subsection (d-5), during the term of the contract.
10            (B) The average of the market price indices, as
11        defined in subparagraph (B) of paragraph (1) of this
12        subsection (d-5), during the term of the contract,
13        minus the baseline market price index, as defined in
14        subparagraph (B) of paragraph (1) of this subsection
15        (d-5).
16        If the subtraction yields a negative number, then the
17    Average ZEC Payment shall be zero.
18        (4) Cost-effective zero emission credits procured from
19    zero emission facilities shall satisfy the applicable
20    definitions set forth in Section 1-10 of this Act.
21        (5) The electric utility shall retire all zero
22    emission credits used to comply with the requirements of
23    this subsection (d-5).
24        (6) Electric utilities shall be entitled to recover
25    all of the costs associated with the procurement of zero
26    emission credits through an automatic adjustment clause

 

 

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1    tariff in accordance with subsection (k) and (m) of
2    Section 16-108 of the Public Utilities Act, and the
3    contracts executed under this subsection (d-5) shall
4    provide that the utilities' payment obligations under such
5    contracts shall be reduced if an adjustment is required
6    under subsection (m) of Section 16-108 of the Public
7    Utilities Act.
8        (7) This subsection (d-5) shall become inoperative on
9    January 1, 2028.
10    (d-10) Nuclear Plant Assistance; carbon mitigation
11credits.
12    (1) The General Assembly finds:
13        (A) The health, welfare, and prosperity of all
14    Illinois citizens require that the State of Illinois act
15    to avoid and not increase carbon emissions from electric
16    generation sources while continuing to ensure affordable,
17    stable, and reliable electricity to all citizens.
18        (B) Absent immediate action by the State to preserve
19    existing carbon-free energy resources, those resources may
20    retire, and the electric generation needs of Illinois'
21    retail customers may be met instead by facilities that
22    emit significant amounts of carbon pollution and other
23    harmful air pollutants at a high social and economic cost
24    until Illinois is able to develop other forms of clean
25    energy.
26        (C) The General Assembly finds that nuclear power

 

 

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1    generation is necessary for the State's transition to 100%
2    clean energy, and ensuring continued operation of nuclear
3    plants advances environmental and public health interests
4    through providing carbon-free electricity while reducing
5    the air pollution profile of the Illinois energy
6    generation fleet.
7        (D) The clean energy attributes of nuclear generation
8    facilities support the State in its efforts to achieve
9    100% clean energy.
10        (E) The State currently invests in various forms of
11    clean energy, including, but not limited to, renewable
12    energy, energy efficiency, and low-emission vehicles,
13    among others.
14        (F) The Environmental Protection Agency commissioned
15    an independent audit which provided a detailed assessment
16    of the financial condition of the Illinois nuclear fleet
17    to evaluate its financial viability and whether the
18    environmental benefits of such resources were at risk. The
19    report identified the risk of losing the environmental
20    benefits of several specific nuclear units. The report
21    also identified that the LaSalle County Generating Station
22    will continue to operate through 2026 and therefore is not
23    eligible to participate in the carbon mitigation credit
24    program.
25        (G) Nuclear plants provide carbon-free energy, which
26    helps to avoid many health-related negative impacts for

 

 

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1    Illinois residents.
2        (H) The procurement of carbon mitigation credits
3    representing the environmental benefits of carbon-free
4    generation will further the State's efforts at achieving
5    100% clean energy and decarbonizing the electricity sector
6    in a safe, reliable, and affordable manner. Further, the
7    procurement of carbon emission credits will enhance the
8    health and welfare of Illinois residents through decreased
9    reliance on more highly polluting generation.
10        (I) The General Assembly therefore finds it necessary
11    to establish carbon mitigation credits to ensure decreased
12    reliance on more carbon-intensive energy resources, for
13    transitioning to a fully decarbonized electricity sector,
14    and to help ensure health and welfare of the State's
15    residents.
16    (2) As used in this subsection:
17    "Baseline costs" means costs used to establish a customer
18protection cap that have been evaluated through an independent
19audit of a carbon-free energy resource conducted by the
20Environmental Protection Agency that evaluated projected
21annual costs for operation and maintenance expenses; fully
22allocated overhead costs, which shall be allocated using the
23methodology developed by the Institute for Nuclear Power
24Operations; fuel expenditures; nonfuel capital expenditures;
25spent fuel expenditures; a return on working capital; the cost
26of operational and market risks that could be avoided by

 

 

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1ceasing operation; and any other costs necessary for continued
2operations, provided that "necessary" means, for purposes of
3this definition, that the costs could reasonably be avoided
4only by ceasing operations of the carbon-free energy resource.
5    "Carbon mitigation credit" means a tradable credit that
6represents the carbon emission reduction attributes of one
7megawatt-hour of energy produced from a carbon-free energy
8resource.
9    "Carbon-free energy resource" means a generation facility
10that: (1) is fueled by nuclear power; and (2) is
11interconnected to PJM Interconnection, LLC.
12    (3) Procurement.
13        (A) Beginning with the delivery year commencing on
14    June 1, 2022, the Agency shall, for electric utilities
15    serving at least 3,000,000 retail customers in the State,
16    seek to procure contracts for no more than approximately
17    54,500,000 cost-effective carbon mitigation credits from
18    carbon-free energy resources because such credits are
19    necessary to support current levels of carbon-free energy
20    generation and ensure the State meets its carbon dioxide
21    emissions reduction goals. The Agency shall not make a
22    partial award of a contract for carbon mitigation credits
23    covering a fractional amount of a carbon-free energy
24    resource's projected output.
25        (B) Each carbon-free energy resource that intends to
26    participate in a procurement shall be required to submit

 

 

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1    to the Agency the following information for the resource
2    on or before the date established by the Agency:
3            (i) the in-service date and remaining useful life
4        of the carbon-free energy resource;
5            (ii) the amount of power generated annually for
6        each of the past 10 years, which shall be used to
7        determine the capability of each facility;
8            (iii) a commitment to be reflected in any contract
9        entered into pursuant to this subsection (d-10) to
10        continue operating the carbon-free energy resource at
11        a capacity factor of at least 88% annually on average
12        for the duration of the contract or contracts executed
13        under the procurement held under this subsection
14        (d-10), except in an instance described in
15        subparagraph (E) of paragraph (1) of subsection (d-5)
16        of this Section or made impracticable as a result of
17        compliance with law or regulation;
18            (iv) financial need and the risk of loss of the
19        environmental benefits of such resource, which shall
20        include the following information:
21                (I) the carbon-free energy resource's cost
22            projections, expressed on a per megawatt-hour
23            basis, over the next 5 delivery years, which shall
24            include the following: operation and maintenance
25            expenses; fully allocated overhead costs, which
26            shall be allocated using the methodology developed

 

 

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1            by the Institute for Nuclear Power Operations;
2            fuel expenditures; nonfuel capital expenditures;
3            spent fuel expenditures; a return on working
4            capital; the cost of operational and market risks
5            that could be avoided by ceasing operation; and
6            any other costs necessary for continued
7            operations, provided that "necessary" means, for
8            purposes of this subitem (I), that the costs could
9            reasonably be avoided only by ceasing operations
10            of the carbon-free energy resource; and
11                (II) the carbon-free energy resource's revenue
12            projections, including energy, capacity, ancillary
13            services, any other direct State support, known or
14            anticipated federal attribute credits, known or
15            anticipated tax credits, and any other direct
16            federal support.
17        The information described in this subparagraph (B) may
18    be submitted on a confidential basis and shall be treated
19    and maintained by the Agency, the procurement
20    administrator, and the Commission as confidential and
21    proprietary and exempt from disclosure under subparagraphs
22    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
23    Information Act. The Office of the Attorney General shall
24    have access to, and maintain the confidentiality of, such
25    information pursuant to Section 6.5 of the Attorney
26    General Act.

 

 

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1        (C) The Agency shall solicit bids for the contracts
2    described in this subsection (d-10) from carbon-free
3    energy resources that have satisfied the requirements of
4    subparagraph (B) of this paragraph (3). The contracts
5    procured pursuant to a procurement event shall reflect,
6    and be subject to, the following terms, requirements, and
7    limitations:
8            (i) Contracts are for delivery of carbon
9        mitigation credits, and are not energy or capacity
10        sales contracts requiring physical delivery. Pursuant
11        to item (iii), contract payments shall fully deduct
12        the value of any monetized federal production tax
13        credits, credits issued pursuant to a federal clean
14        energy standard, and other federal credits if
15        applicable.
16            (ii) Contracts for carbon mitigation credits shall
17        commence with the delivery year beginning on June 1,
18        2022 and shall be for a term of 5 delivery years
19        concluding on May 31, 2027.
20            (iii) The price per carbon mitigation credit to be
21        paid under a contract for a given delivery year shall
22        be equal to an accepted bid price less the sum of:
23                (I) one of the following energy price indices,
24            selected by the bidder at the time of the bid for
25            the term of the contract:
26                    (aa) the weighted-average hourly day-ahead

 

 

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1                price for the applicable delivery year at the
2                busbar of all resources procured pursuant to
3                this subsection (d-10), weighted by actual
4                production from the resources; or
5                    (bb) the projected energy price for the
6                PJM Interconnection, LLC Northern Illinois Hub
7                for the applicable delivery year determined
8                according to subitem (aa) of item (iii) of
9                subparagraph (B) of paragraph (1) of
10                subsection (d-5).
11                (II) the Base Residual Auction Capacity Price
12            for the ComEd zone as determined by PJM
13            Interconnection, LLC, divided by 24 hours per day,
14            for the applicable delivery year for the first 3
15            delivery years, and then any subsequent delivery
16            years unless the PJM Interconnection, LLC applies
17            the Minimum Offer Price Rule to participating
18            carbon-free energy resources because they supply
19            carbon mitigation credits pursuant to this Section
20            at which time, upon notice by the carbon-free
21            energy resource to the Commission and subject to
22            the Commission's confirmation, the value under
23            this subitem shall be zero, as further described
24            in the carbon mitigation credit procurement plan;
25            and
26                (III) any value of monetized federal tax

 

 

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1            credits, direct payments, or similar subsidy
2            provided to the carbon-free energy resource from
3            any unit of government that is not already
4            reflected in energy prices.
5            If the price-per-megawatt-hour calculation
6        performed under item (iii) of this subparagraph (C)
7        for a given delivery year results in a net positive
8        value, then the electric utility counterparty to the
9        contract shall multiply such net value by the
10        applicable contract quantity and remit the amount to
11        the supplier.
12            To protect retail customers from retail rate
13        impacts that may arise upon the initiation of carbon
14        policy changes, if the price-per-megawatt-hour
15        calculation performed under item (iii) of this
16        subparagraph (C) for a given delivery year results in
17        a net negative value, then the supplier counterparty
18        to the contract shall multiply such net value by the
19        applicable contract quantity and remit such amount to
20        the electric utility counterparty. The electric
21        utility shall reflect such amounts remitted by
22        suppliers as a credit on its retail customer bills as
23        soon as practicable.
24            (iv) To ensure that retail customers in Northern
25        Illinois do not pay more for carbon mitigation credits
26        than the value such credits provide, and

 

 

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1        notwithstanding the provisions of this subsection
2        (d-10), the Agency shall not accept bids for contracts
3        that exceed a customer protection cap equal to the
4        baseline costs of carbon-free energy resources.
5            The baseline costs for the applicable year shall
6        be the following:
7                (I) For the delivery year beginning June 1,
8            2022, the baseline costs shall be an amount equal
9            to $30.30 per megawatt-hour.
10                (II) For the delivery year beginning June 1,
11            2023, the baseline costs shall be an amount equal
12            to $32.50 per megawatt-hour.
13                (III) For the delivery year beginning June 1,
14            2024, the baseline costs shall be an amount equal
15            to $33.43 per megawatt-hour.
16                (IV) For the delivery year beginning June 1,
17            2025, the baseline costs shall be an amount equal
18            to $33.50 per megawatt-hour.
19                (V) For the delivery year beginning June 1,
20            2026, the baseline costs shall be an amount equal
21            to $34.50 per megawatt-hour.
22            An Environmental Protection Agency consultant
23        forecast, included in a report issued April 14, 2021,
24        projects that a carbon-free energy resource has the
25        opportunity to earn on average approximately $30.28
26        per megawatt-hour, for the sale of energy and capacity

 

 

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1        during the time period between 2022 and 2027.
2        Therefore, the sale of carbon mitigation credits
3        provides the opportunity to receive an additional
4        amount per megawatt-hour in addition to the projected
5        prices for energy and capacity.
6            Although actual energy and capacity prices may
7        vary from year-to-year, the General Assembly finds
8        that this customer protection cap will help ensure
9        that the cost of carbon mitigation credits will be
10        less than its value, based upon the social cost of
11        carbon identified in the Technical Support Document
12        issued in February 2021 by the U.S. Interagency
13        Working Group on Social Cost of Greenhouse Gases and
14        the PJM Interconnection, LLC carbon dioxide marginal
15        emission rate for 2020, and that a carbon-free energy
16        resource receiving payment for carbon mitigation
17        credits receives no more than necessary to keep those
18        units in operation.
19        (D) No later than 7 days after the effective date of
20    this amendatory Act of the 102nd General Assembly, the
21    Agency shall publish its proposed carbon mitigation credit
22    procurement plan. The Plan shall provide that winning bids
23    shall be selected by taking into consideration which
24    resources best match public interest criteria that
25    include, but are not limited to, minimizing carbon dioxide
26    emissions that result from electricity consumed in

 

 

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1    Illinois and minimizing sulfur dioxide, nitrogen oxide,
2    and particulate matter emissions that adversely affect the
3    citizens of this State. The selection of winning bids
4    shall also take into account the incremental environmental
5    benefits resulting from the procurement or procurements,
6    such as any existing environmental benefits that are
7    preserved by a procurement held under this subsection
8    (d-10) and would cease to exist if the procurement were
9    not held, including the preservation of carbon-free energy
10    resources. For those bidders having the same public
11    interest criteria score, the relative ranking of such
12    bidders shall be determined by price. The Plan shall
13    describe in detail how each public interest factor shall
14    be considered and weighted in the bid selection process to
15    ensure that the public interest criteria are applied to
16    the procurement. The Plan shall, to the extent practical
17    and permissible by federal law, ensure that successful
18    bidders make commercially reasonable efforts to apply for
19    federal tax credits, direct payments, or similar subsidy
20    programs that support carbon-free generation and for which
21    the successful bidder is eligible. Upon publishing of the
22    carbon mitigation credit procurement plan, copies of the
23    plan shall be posted and made publicly available on the
24    Agency's website. All interested parties shall have 7 days
25    following the date of posting to provide comment to the
26    Agency on the plan. All comments shall be posted to the

 

 

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1    Agency's website. Following the end of the comment period,
2    but no more than 19 days later than the effective date of
3    this amendatory Act of the 102nd General Assembly, the
4    Agency shall revise the plan as necessary based on the
5    comments received and file its carbon mitigation credit
6    procurement plan with the Commission.
7        (E) If the Commission determines that the plan is
8    likely to result in the procurement of cost-effective
9    carbon mitigation credits, then the Commission shall,
10    after notice and hearing and opportunity for comment, but
11    no later than 42 days after the Agency filed the plan,
12    approve the plan or approve it with modification. For
13    purposes of this subsection (d-10), "cost-effective" means
14    carbon mitigation credits that are procured from
15    carbon-free energy resources at prices that are within the
16    limits specified in this paragraph (3). As part of the
17    Commission's review and acceptance or rejection of the
18    procurement results, the Commission shall, in its public
19    notice of successful bidders:
20            (i) identify how the selected carbon-free energy
21        resources satisfy the public interest criteria
22        described in this paragraph (3) of minimizing carbon
23        dioxide emissions that result from electricity
24        consumed in Illinois and minimizing sulfur dioxide,
25        nitrogen oxide, and particulate matter emissions that
26        adversely affect the citizens of this State;

 

 

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1            (ii) specifically address how the selection of
2        carbon-free energy resources takes into account the
3        incremental environmental benefits resulting from the
4        procurement, including any existing environmental
5        benefits that are preserved by the procurements held
6        under this amendatory Act of the 102nd General
7        Assembly and would have ceased to exist if the
8        procurements had not been held, such as the
9        preservation of carbon-free energy resources;
10            (iii) quantify the environmental benefit of
11        preserving the carbon-free energy resources procured
12        pursuant to this subsection (d-10), including the
13        following:
14                (I) an assessment value of avoided greenhouse
15            gas emissions measured as the product of the
16            carbon-free energy resources' output over the
17            contract term, using generally accepted
18            methodologies for the valuation of avoided
19            emissions; and
20                (II) an assessment of costs of replacement
21            with other carbon-free energy resources and
22            renewable energy resources, including wind and
23            photovoltaic generation, based upon an assessment
24            of the prices paid for renewable energy credits
25            through programs and procurements conducted
26            pursuant to subsection (c) of Section 1-75 of this

 

 

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1            Act, and the additional storage necessary to
2            produce the same or similar capability of matching
3            customer usage patterns.
4        (F) The procurements described in this paragraph (3),
5    including, but not limited to, the execution of all
6    contracts procured, shall be completed no later than
7    December 3, 2021. The procurement and plan approval
8    processes required by this paragraph (3) shall be
9    conducted in conjunction with the procurement and plan
10    approval processes required by Section 16-111.5 of the
11    Public Utilities Act, to the extent practicable. However,
12    the Agency and Commission may, as appropriate, modify the
13    various dates and timelines under this subparagraph and
14    subparagraphs (D) and (E) of this paragraph (3) to meet
15    the December 3, 2021 contract execution deadline.
16    Following the completion of such procurements, and
17    consistent with this paragraph (3), the Agency shall
18    calculate the payments to be made under each contract in a
19    timely fashion.
20        (F-1) Costs incurred by the electric utility pursuant
21    to a contract authorized by this subsection (d-10) shall
22    be deemed prudently incurred and reasonable in amount, and
23    the electric utility shall be entitled to full cost
24    recovery pursuant to a tariff or tariffs filed with the
25    Commission.
26        (G) The counterparty electric utility shall retire all

 

 

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1    carbon mitigation credits used to comply with the
2    requirements of this subsection (d-10).
3        (H) If a carbon-free energy resource is sold to
4    another owner, the rights, obligations, and commitments
5    under this subsection (d-10) shall continue to the
6    subsequent owner.
7        (I) This subsection (d-10) shall become inoperative on
8    January 1, 2028.
9    (e) The draft procurement plans are subject to public
10comment, as required by Section 16-111.5 of the Public
11Utilities Act.
12    (f) The Agency shall submit the final procurement plan to
13the Commission. The Agency shall revise a procurement plan if
14the Commission determines that it does not meet the standards
15set forth in Section 16-111.5 of the Public Utilities Act.
16    (g) The Agency shall assess fees to each affected utility
17to recover the costs incurred in preparation of the annual
18procurement plan for the utility.
19    (h) The Agency shall assess fees to each bidder to recover
20the costs incurred in connection with a competitive
21procurement process.
22    (i) A renewable energy credit, carbon emission credit,
23zero emission credit, or carbon mitigation credit can only be
24used once to comply with a single portfolio or other standard
25as set forth in subsection (c), subsection (d), or subsection
26(d-5) of this Section, respectively. A renewable energy

 

 

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1credit, carbon emission credit, zero emission credit, or
2carbon mitigation credit cannot be used to satisfy the
3requirements of more than one standard. If more than one type
4of credit is issued for the same megawatt hour of energy, only
5one credit can be used to satisfy the requirements of a single
6standard. After such use, the credit must be retired together
7with any other credits issued for the same megawatt hour of
8energy.
9(Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
10102-662, eff. 9-15-21.)