103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5514

 

Introduced 2/9/2024, by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-5
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-75
220 ILCS 5/16-108
220 ILCS 5/16-111.5

    Amends the Illinois Power Agency Act. Authorizes the Illinois Power Agency to develop a high voltage direct current (HVDC) renewable energy credit procurement for HVDC renewable energy credits. Provides that, within 120 days after the effective date of the amendatory Act, the Agency shall develop a HVDC renewable energy credit procurement plan limited to the procurement of HVDC renewable energy credits. Sets forth requirements and procedures for the procurement plan. Amends the Public Utilities Act to make conforming changes.


LRB103 39335 CES 69496 b

 

 

A BILL FOR

 

HB5514LRB103 39335 CES 69496 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Sections 1-5, 1-10, 1-20, and 1-75 as follows:
 
6    (20 ILCS 3855/1-5)
7    Sec. 1-5. Legislative declarations and findings. The
8General Assembly finds and declares:
9        (1) The health, welfare, and prosperity of all
10    Illinois residents require the provision of adequate,
11    reliable, affordable, efficient, and environmentally
12    sustainable electric service at the lowest total cost over
13    time, taking into account any benefits of price stability.
14        (1.5) To provide the highest quality of life for the
15    residents of Illinois and to provide for a clean and
16    healthy environment, it is the policy of this State to
17    rapidly transition to 100% clean energy by 2050.
18        (2) (Blank).
19        (3) (Blank).
20        (4) It is necessary to improve the process of
21    procuring electricity to serve Illinois residents, to
22    promote investment in energy efficiency and
23    demand-response measures, and to maintain and support

 

 

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1    development of clean coal technologies, generation
2    resources that operate at all hours of the day and under
3    all weather conditions, zero emission facilities, and
4    renewable resources.
5        (5) Procuring a diverse electricity supply portfolio
6    will ensure the lowest total cost over time for adequate,
7    reliable, efficient, and environmentally sustainable
8    electric service.
9        (6) Including renewable resources and zero emission
10    credits from zero emission facilities in that portfolio
11    will reduce long-term direct and indirect costs to
12    consumers by decreasing environmental impacts and by
13    avoiding or delaying the need for new generation,
14    transmission, and distribution infrastructure. Developing
15    new renewable energy resources in Illinois, including
16    brownfield solar projects and community solar projects,
17    will help to diversify Illinois electricity supply, avoid
18    and reduce pollution, reduce peak demand, and enhance
19    public health and well-being of Illinois residents.
20        (7) Developing community solar projects in Illinois
21    will help to expand access to renewable energy resources
22    to more Illinois residents.
23        (8) Developing brownfield solar projects in Illinois
24    will help return blighted or contaminated land to
25    productive use while enhancing public health and the
26    well-being of Illinois residents, including those in

 

 

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1    environmental justice communities.
2        (9) Energy efficiency, demand-response measures, zero
3    emission energy, and renewable energy are resources
4    currently underused in Illinois. These resources should be
5    used, when cost effective, to reduce costs to consumers,
6    improve reliability, and improve environmental quality and
7    public health.
8        (10) The State should encourage the use of advanced
9    clean coal technologies that capture and sequester carbon
10    dioxide emissions to advance environmental protection
11    goals and to demonstrate the viability of coal and
12    coal-derived fuels in a carbon-constrained economy.
13        (10.5) The State should encourage the development of
14    interregional high voltage direct current (HVDC)
15    transmission lines that benefit Illinois. All ratepayers
16    in the State served by the regional transmission
17    organization where the HVDC converter station is
18    interconnected benefit from the long-term price stability
19    and market access provided by interregional HVDC
20    transmission facilities. The benefits to Illinois include:
21    reduction in wholesale power prices; access to lower-cost
22    markets; enabling the integration of additional renewable
23    generating units within the State through near
24    instantaneous dispatchability and the provision of
25    ancillary services; creating good-paying union jobs in
26    Illinois; and, enhancing grid reliability and climate

 

 

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1    resilience via HVDC facilities that are installed
2    underground.
3        (10.6) The health, welfare, and safety of the people
4    of the State are advanced by developing new HVDC
5    transmission lines predominantly along transportation
6    rights-of-way, with an HVDC converter station that is
7    located in the service territory of a public utility as
8    defined in Section 3-105 of the Public Utilities Act
9    serving more than 3,000,000 retail customers, and with a
10    project labor agreement as defined in Section 1-10 of this
11    Act.
12        (10.8) Procurement of renewable resources transmitted
13    over new HVDC transmission lines benefits all ratepayers
14    by decarbonizing the Illinois economy by providing as much
15    as 17,958,000 megawatt-hours of diversified renewable
16    energy resources annually while improving reliability
17    through fully dispatchable high-voltage direct current
18    transmission facilities that cannot be provided through
19    development of local renewable generation or transmission
20    alone.
21        (11) The General Assembly enacted Public Act 96-0795
22    to reform the State's purchasing processes, recognizing
23    that government procurement is susceptible to abuse if
24    structural and procedural safeguards are not in place to
25    ensure independence, insulation, oversight, and
26    transparency.

 

 

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1        (12) The principles that underlie the procurement
2    reform legislation apply also in the context of power
3    purchasing.
4        (13) To ensure that the benefits of installing
5    renewable resources are available to all Illinois
6    residents and located across the State, subject to
7    appropriation, it is necessary for the Agency to provide
8    public information and educational resources on how
9    residents can benefit from the expansion of renewable
10    energy in Illinois and participate in the Illinois Solar
11    for All Program established in Section 1-56, the
12    Adjustable Block program established in Section 1-75, the
13    job training programs established by paragraph (1) of
14    subsection (a) of Section 16-108.12 of the Public
15    Utilities Act, and the programs and resources established
16    by the Energy Transition Act.
17    The General Assembly therefore finds that it is necessary
18to create the Illinois Power Agency and that the goals and
19objectives of that Agency are to accomplish each of the
20following:
21        (A) Develop electricity procurement plans to ensure
22    adequate, reliable, affordable, efficient, and
23    environmentally sustainable electric service at the lowest
24    total cost over time, taking into account any benefits of
25    price stability, for electric utilities that on December
26    31, 2005 provided electric service to at least 100,000

 

 

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1    customers in Illinois and for small multi-jurisdictional
2    electric utilities that (i) on December 31, 2005 served
3    less than 100,000 customers in Illinois and (ii) request a
4    procurement plan for their Illinois jurisdictional load.
5    The procurement plan shall be updated on an annual basis
6    and shall include renewable energy resources and,
7    beginning with the delivery year commencing June 1, 2017,
8    zero emission credits from zero emission facilities
9    sufficient to achieve the standards specified in this Act.
10        (B) Conduct the competitive procurement processes
11    identified in this Act.
12        (C) Develop electric generation and co-generation
13    facilities that use indigenous coal or renewable
14    resources, or both, financed with bonds issued by the
15    Illinois Finance Authority.
16        (D) Supply electricity from the Agency's facilities at
17    cost to one or more of the following: municipal electric
18    systems, governmental aggregators, or rural electric
19    cooperatives in Illinois.
20        (E) Ensure that the process of power procurement is
21    conducted in an ethical and transparent fashion, immune
22    from improper influence.
23        (F) Continue to review its policies and practices to
24    determine how best to meet its mission of providing the
25    lowest cost power to the greatest number of people, at any
26    given point in time, in accordance with applicable law.

 

 

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1        (G) Operate in a structurally insulated, independent,
2    and transparent fashion so that nothing impedes the
3    Agency's mission to secure power at the best prices the
4    market will bear, provided that the Agency meets all
5    applicable legal requirements.
6        (H) Implement renewable energy procurement and
7    training programs throughout the State to diversify
8    Illinois electricity supply, improve reliability, avoid
9    and reduce pollution, reduce peak demand, and enhance
10    public health and well-being of Illinois residents,
11    including low-income residents.
12        (I) Implement procurement of high voltage direct
13    current renewable energy credits.
14(Source: P.A. 102-662, eff. 9-15-21.)
 
15    (20 ILCS 3855/1-10)
16    Sec. 1-10. Definitions.
17    "Agency" means the Illinois Power Agency.
18    "Agency loan agreement" means any agreement pursuant to
19which the Illinois Finance Authority agrees to loan the
20proceeds of revenue bonds issued with respect to a project to
21the Agency upon terms providing for loan repayment
22installments at least sufficient to pay when due all principal
23of, interest and premium, if any, on those revenue bonds, and
24providing for maintenance, insurance, and other matters in
25respect of the project.

 

 

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1    "Authority" means the Illinois Finance Authority.
2    "Brownfield site photovoltaic project" means photovoltaics
3that are either:
4        (1) interconnected to an electric utility as defined
5    in this Section, a municipal utility as defined in this
6    Section, a public utility as defined in Section 3-105 of
7    the Public Utilities Act, or an electric cooperative as
8    defined in Section 3-119 of the Public Utilities Act and
9    located at a site that is regulated by any of the following
10    entities under the following programs:
11            (A) the United States Environmental Protection
12        Agency under the federal Comprehensive Environmental
13        Response, Compensation, and Liability Act of 1980, as
14        amended;
15            (B) the United States Environmental Protection
16        Agency under the Corrective Action Program of the
17        federal Resource Conservation and Recovery Act, as
18        amended;
19            (C) the Illinois Environmental Protection Agency
20        under the Illinois Site Remediation Program; or
21            (D) the Illinois Environmental Protection Agency
22        under the Illinois Solid Waste Program; or
23        (2) located at the site of a coal mine that has
24    permanently ceased coal production, permanently halted any
25    re-mining operations, and is no longer accepting any coal
26    combustion residues; has both completed all clean-up and

 

 

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1    remediation obligations under the federal Surface Mining
2    and Reclamation Act of 1977 and all applicable Illinois
3    rules and any other clean-up, remediation, or ongoing
4    monitoring to safeguard the health and well-being of the
5    people of the State of Illinois, as well as demonstrated
6    compliance with all applicable federal and State
7    environmental rules and regulations, including, but not
8    limited, to 35 Ill. Adm. Code Part 845 and any rules for
9    historic fill of coal combustion residuals, including any
10    rules finalized in Subdocket A of Illinois Pollution
11    Control Board docket R2020-019.
12    "Clean coal facility" means an electric generating
13facility that uses primarily coal as a feedstock and that
14captures and sequesters carbon dioxide emissions at the
15following levels: at least 50% of the total carbon dioxide
16emissions that the facility would otherwise emit if, at the
17time construction commences, the facility is scheduled to
18commence operation before 2016, at least 70% of the total
19carbon dioxide emissions that the facility would otherwise
20emit if, at the time construction commences, the facility is
21scheduled to commence operation during 2016 or 2017, and at
22least 90% of the total carbon dioxide emissions that the
23facility would otherwise emit if, at the time construction
24commences, the facility is scheduled to commence operation
25after 2017. The power block of the clean coal facility shall
26not exceed allowable emission rates for sulfur dioxide,

 

 

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1nitrogen oxides, carbon monoxide, particulates and mercury for
2a natural gas-fired combined-cycle facility the same size as
3and in the same location as the clean coal facility at the time
4the clean coal facility obtains an approved air permit. All
5coal used by a clean coal facility shall have high volatile
6bituminous rank and greater than 1.7 pounds of sulfur per
7million Btu content, unless the clean coal facility does not
8use gasification technology and was operating as a
9conventional coal-fired electric generating facility on June
101, 2009 (the effective date of Public Act 95-1027).
11    "Clean coal SNG brownfield facility" means a facility that
12(1) has commenced construction by July 1, 2015 on an urban
13brownfield site in a municipality with at least 1,000,000
14residents; (2) uses a gasification process to produce
15substitute natural gas; (3) uses coal as at least 50% of the
16total feedstock over the term of any sourcing agreement with a
17utility and the remainder of the feedstock may be either
18petroleum coke or coal, with all such coal having a high
19bituminous rank and greater than 1.7 pounds of sulfur per
20million Btu content unless the facility reasonably determines
21that it is necessary to use additional petroleum coke to
22deliver additional consumer savings, in which case the
23facility shall use coal for at least 35% of the total feedstock
24over the term of any sourcing agreement; and (4) captures and
25sequesters at least 85% of the total carbon dioxide emissions
26that the facility would otherwise emit.

 

 

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1    "Clean coal SNG facility" means a facility that uses a
2gasification process to produce substitute natural gas, that
3sequesters at least 90% of the total carbon dioxide emissions
4that the facility would otherwise emit, that uses at least 90%
5coal as a feedstock, with all such coal having a high
6bituminous rank and greater than 1.7 pounds of sulfur per
7million Btu content, and that has a valid and effective permit
8to construct emission sources and air pollution control
9equipment and approval with respect to the federal regulations
10for Prevention of Significant Deterioration of Air Quality
11(PSD) for the plant pursuant to the federal Clean Air Act;
12provided, however, a clean coal SNG brownfield facility shall
13not be a clean coal SNG facility.
14    "Clean energy" means energy generation that is 90% or
15greater free of carbon dioxide emissions.
16    "Commission" means the Illinois Commerce Commission.
17    "Community renewable generation project" means an electric
18generating facility that:
19        (1) is powered by wind, solar thermal energy,
20    photovoltaic cells or panels, biodiesel, crops and
21    untreated and unadulterated organic waste biomass, and
22    hydropower that does not involve new construction of dams;
23        (2) is interconnected at the distribution system level
24    of an electric utility as defined in this Section, a
25    municipal utility as defined in this Section that owns or
26    operates electric distribution facilities, a public

 

 

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1    utility as defined in Section 3-105 of the Public
2    Utilities Act, or an electric cooperative, as defined in
3    Section 3-119 of the Public Utilities Act;
4        (3) credits the value of electricity generated by the
5    facility to the subscribers of the facility; and
6        (4) is limited in nameplate capacity to less than or
7    equal to 5,000 kilowatts.
8    "Costs incurred in connection with the development and
9construction of a facility" means:
10        (1) the cost of acquisition of all real property,
11    fixtures, and improvements in connection therewith and
12    equipment, personal property, and other property, rights,
13    and easements acquired that are deemed necessary for the
14    operation and maintenance of the facility;
15        (2) financing costs with respect to bonds, notes, and
16    other evidences of indebtedness of the Agency;
17        (3) all origination, commitment, utilization,
18    facility, placement, underwriting, syndication, credit
19    enhancement, and rating agency fees;
20        (4) engineering, design, procurement, consulting,
21    legal, accounting, title insurance, survey, appraisal,
22    escrow, trustee, collateral agency, interest rate hedging,
23    interest rate swap, capitalized interest, contingency, as
24    required by lenders, and other financing costs, and other
25    expenses for professional services; and
26        (5) the costs of plans, specifications, site study and

 

 

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1    investigation, installation, surveys, other Agency costs
2    and estimates of costs, and other expenses necessary or
3    incidental to determining the feasibility of any project,
4    together with such other expenses as may be necessary or
5    incidental to the financing, insuring, acquisition, and
6    construction of a specific project and starting up,
7    commissioning, and placing that project in operation.
8    "Delivery services" has the same definition as found in
9Section 16-102 of the Public Utilities Act.
10    "Delivery year" means the consecutive 12-month period
11beginning June 1 of a given year and ending May 31 of the
12following year.
13    "Department" means the Department of Commerce and Economic
14Opportunity.
15    "Director" means the Director of the Illinois Power
16Agency.
17    "Demand-response" means measures that decrease peak
18electricity demand or shift demand from peak to off-peak
19periods.
20    "Distributed renewable energy generation device" means a
21device that is:
22        (1) powered by wind, solar thermal energy,
23    photovoltaic cells or panels, biodiesel, crops and
24    untreated and unadulterated organic waste biomass, tree
25    waste, and hydropower that does not involve new
26    construction of dams, waste heat to power systems, or

 

 

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1    qualified combined heat and power systems;
2        (2) interconnected at the distribution system level of
3    either an electric utility as defined in this Section, a
4    municipal utility as defined in this Section that owns or
5    operates electric distribution facilities, or a rural
6    electric cooperative as defined in Section 3-119 of the
7    Public Utilities Act;
8        (3) located on the customer side of the customer's
9    electric meter and is primarily used to offset that
10    customer's electricity load; and
11        (4) (blank).
12    "Energy efficiency" means measures that reduce the amount
13of electricity or natural gas consumed in order to achieve a
14given end use. "Energy efficiency" includes voltage
15optimization measures that optimize the voltage at points on
16the electric distribution voltage system and thereby reduce
17electricity consumption by electric customers' end use
18devices. "Energy efficiency" also includes measures that
19reduce the total Btus of electricity, natural gas, and other
20fuels needed to meet the end use or uses.
21    "Electric utility" has the same definition as found in
22Section 16-102 of the Public Utilities Act.
23    "Equity investment eligible community" or "eligible
24community" are synonymous and mean the geographic areas
25throughout Illinois which would most benefit from equitable
26investments by the State designed to combat discrimination.

 

 

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1Specifically, the eligible communities shall be defined as the
2following areas:
3        (1) R3 Areas as established pursuant to Section 10-40
4    of the Cannabis Regulation and Tax Act, where residents
5    have historically been excluded from economic
6    opportunities, including opportunities in the energy
7    sector; and
8        (2) environmental justice communities, as defined by
9    the Illinois Power Agency pursuant to the Illinois Power
10    Agency Act, where residents have historically been subject
11    to disproportionate burdens of pollution, including
12    pollution from the energy sector.
13    "Equity eligible persons" or "eligible persons" means
14persons who would most benefit from equitable investments by
15the State designed to combat discrimination, specifically:
16        (1) persons who graduate from or are current or former
17    participants in the Clean Jobs Workforce Network Program,
18    the Clean Energy Contractor Incubator Program, the
19    Illinois Climate Works Preapprenticeship Program,
20    Returning Residents Clean Jobs Training Program, or the
21    Clean Energy Primes Contractor Accelerator Program, and
22    the solar training pipeline and multi-cultural jobs
23    program created in paragraphs (a)(1) and (a)(3) of Section
24    16-208.12 of the Public Utilities Act;
25        (2) persons who are graduates of or currently enrolled
26    in the foster care system;

 

 

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1        (3) persons who were formerly incarcerated;
2        (4) persons whose primary residence is in an equity
3    investment eligible community.
4    "Equity eligible contractor" means a business that is
5majority-owned by eligible persons, or a nonprofit or
6cooperative that is majority-governed by eligible persons, or
7is a natural person that is an eligible person offering
8personal services as an independent contractor.
9    "Facility" means an electric generating unit or a
10co-generating unit that produces electricity along with
11related equipment necessary to connect the facility to an
12electric transmission or distribution system.
13    "General contractor" means the entity or organization with
14main responsibility for the building of a construction project
15and who is the party signing the prime construction contract
16for the project.
17    "Governmental aggregator" means one or more units of local
18government that individually or collectively procure
19electricity to serve residential retail electrical loads
20located within its or their jurisdiction.
21    "High voltage direct current converter station" means the
22collection of equipment that converts direct current energy
23from a high voltage direct current transmission line into
24alternating current using Voltage Source Conversion technology
25and that is interconnected with transmission or distribution
26assets located in Illinois.

 

 

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1    "High voltage direct current renewable energy credit"
2means a renewable energy credit associated with a renewable
3energy resource where the renewable energy resource has
4entered into a contract to transmit the energy associated with
5such renewable energy credit over high voltage direct current
6transmission facilities.
7    "High voltage direct current transmission facilities"
8means the collection of installed equipment that converts
9alternating current energy in one location to direct current
10and transmits that direct current energy to a high voltage
11direct current converter station using Voltage Source
12Conversion technology. "High voltage direct current
13transmission facilities" includes the high voltage direct
14current converter station itself and associated high voltage
15direct current transmission lines. Notwithstanding the
16preceding, after September 15, 2021 (the effective date of
17Public Act 102-662), an otherwise qualifying collection of
18equipment does not qualify as high voltage direct current
19transmission facilities unless: (i) its developer entered into
20a project labor agreement, (ii) more than 100 miles of its
21Illinois footprint is built underground, (iii) the facilities
22are is capable of transmitting electricity at 525kv or above,
23and (iv) the facilities include with an Illinois converter
24station physically located in and interconnected in the
25Illinois footprint region of the PJM Interconnection, LLC, and
26the system does not operate as a public utility in Illinois, as

 

 

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1that term is defined in Section 3-105 of the Public Utilities
2Act.
3    "Hydropower" means any method of electricity generation or
4storage that results from the flow of water, including
5impoundment facilities, diversion facilities, and pumped
6storage facilities.
7    "Index price" means the real-time energy settlement price
8at the applicable Illinois trading hub, such as PJM-NIHUB or
9MISO-IL, for a given settlement period.
10    "Indexed renewable energy credit" means a tradable credit
11that represents the environmental attributes of one megawatt
12hour of energy produced from a renewable energy resource, the
13price of which shall be calculated by subtracting the strike
14price offered by a new utility-scale wind project or a new
15utility-scale photovoltaic project from the index price in a
16given settlement period.
17    "Indexed renewable energy credit counterparty" has the
18same meaning as "public utility" as defined in Section 3-105
19of the Public Utilities Act.
20    "Local government" means a unit of local government as
21defined in Section 1 of Article VII of the Illinois
22Constitution.
23    "Modernized" or "retooled" means the construction, repair,
24maintenance, or significant expansion of turbines and existing
25hydropower dams.
26    "Municipality" means a city, village, or incorporated

 

 

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1town.
2    "Municipal utility" means a public utility owned and
3operated by any subdivision or municipal corporation of this
4State.
5    "Nameplate capacity" means the aggregate inverter
6nameplate capacity in kilowatts AC.
7    "Person" means any natural person, firm, partnership,
8corporation, either domestic or foreign, company, association,
9limited liability company, joint stock company, or association
10and includes any trustee, receiver, assignee, or personal
11representative thereof.
12    "Project" means the planning, bidding, and construction of
13a facility.
14    "Project labor agreement" means a pre-hire collective
15bargaining agreement that covers all terms and conditions of
16employment on a specific construction project and must include
17the following:
18        (1) provisions establishing the minimum hourly wage
19    for each class of labor organization employee;
20        (2) provisions establishing the benefits and other
21    compensation for each class of labor organization
22    employee;
23        (3) provisions establishing that no strike or disputes
24    will be engaged in by the labor organization employees;
25        (4) provisions establishing that no lockout or
26    disputes will be engaged in by the general contractor

 

 

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1    building the project; and
2        (5) provisions for minorities and women, as defined
3    under the Business Enterprise for Minorities, Women, and
4    Persons with Disabilities Act, setting forth goals for
5    apprenticeship hours to be performed by minorities and
6    women and setting forth goals for total hours to be
7    performed by underrepresented minorities and women.
8    A labor organization and the general contractor building
9the project shall have the authority to include other terms
10and conditions as they deem necessary.
11    "Public utility" has the same definition as found in
12Section 3-105 of the Public Utilities Act.
13    "Qualified combined heat and power systems" means systems
14that, either simultaneously or sequentially, produce
15electricity and useful thermal energy from a single fuel
16source. Such systems are eligible for "renewable energy
17credits" in an amount equal to its total energy output where a
18renewable fuel is consumed or in an amount equal to the net
19reduction in nonrenewable fuel consumed on a total energy
20output basis.
21    "Real property" means any interest in land together with
22all structures, fixtures, and improvements thereon, including
23lands under water and riparian rights, any easements,
24covenants, licenses, leases, rights-of-way, uses, and other
25interests, together with any liens, judgments, mortgages, or
26other claims or security interests related to real property.

 

 

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1    "Renewable energy credit" means a tradable credit that
2represents the environmental attributes of one megawatt hour
3of energy produced from a renewable energy resource.
4    "Renewable energy resources" includes energy and its
5associated renewable energy credit or renewable energy credits
6from wind, solar thermal energy, photovoltaic cells and
7panels, biodiesel, anaerobic digestion, crops and untreated
8and unadulterated organic waste biomass, and hydropower that
9does not involve new construction of dams, waste heat to power
10systems, or qualified combined heat and power systems. For
11purposes of this Act, landfill gas produced in the State is
12considered a renewable energy resource. "Renewable energy
13resources" does not include the incineration or burning of
14tires, garbage, general household, institutional, and
15commercial waste, industrial lunchroom or office waste,
16landscape waste, railroad crossties, utility poles, or
17construction or demolition debris, other than untreated and
18unadulterated waste wood. "Renewable energy resources" also
19includes high voltage direct current renewable energy credits
20and the associated energy converted to alternating current by
21a high voltage direct current converter station to the extent
22that: (1) the generator of such renewable energy resource
23contracted with a third party to transmit the energy over the
24high voltage direct current transmission facilities, and (2)
25the third-party contracting for delivery of renewable energy
26resources over the high voltage direct current transmission

 

 

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1facilities have ownership rights over the unretired associated
2high voltage direct current renewable energy credit.
3    "Retail customer" has the same definition as found in
4Section 16-102 of the Public Utilities Act.
5    "Revenue bond" means any bond, note, or other evidence of
6indebtedness issued by the Authority, the principal and
7interest of which is payable solely from revenues or income
8derived from any project or activity of the Agency.
9    "Sequester" means permanent storage of carbon dioxide by
10injecting it into a saline aquifer, a depleted gas reservoir,
11or an oil reservoir, directly or through an enhanced oil
12recovery process that may involve intermediate storage,
13regardless of whether these activities are conducted by a
14clean coal facility, a clean coal SNG facility, a clean coal
15SNG brownfield facility, or a party with which a clean coal
16facility, clean coal SNG facility, or clean coal SNG
17brownfield facility has contracted for such purposes.
18    "Service area" has the same definition as found in Section
1916-102 of the Public Utilities Act.
20    "Settlement period" means the period of time utilized by
21MISO and PJM and their successor organizations as the basis
22for settlement calculations in the real-time energy market.
23    "Sourcing agreement" means (i) in the case of an electric
24utility, an agreement between the owner of a clean coal
25facility and such electric utility, which agreement shall have
26terms and conditions meeting the requirements of paragraph (3)

 

 

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1of subsection (d) of Section 1-75, (ii) in the case of an
2alternative retail electric supplier, an agreement between the
3owner of a clean coal facility and such alternative retail
4electric supplier, which agreement shall have terms and
5conditions meeting the requirements of Section 16-115(d)(5) of
6the Public Utilities Act, and (iii) in case of a gas utility,
7an agreement between the owner of a clean coal SNG brownfield
8facility and the gas utility, which agreement shall have the
9terms and conditions meeting the requirements of subsection
10(h-1) of Section 9-220 of the Public Utilities Act.
11    "Strike price" means a contract price for energy and
12renewable energy credits from a new utility-scale wind project
13or a new utility-scale photovoltaic project.
14    "Subscriber" means a person who (i) takes delivery service
15from an electric utility, and (ii) has a subscription of no
16less than 200 watts to a community renewable generation
17project that is located in the electric utility's service
18area. No subscriber's subscriptions may total more than 40% of
19the nameplate capacity of an individual community renewable
20generation project. Entities that are affiliated by virtue of
21a common parent shall not represent multiple subscriptions
22that total more than 40% of the nameplate capacity of an
23individual community renewable generation project.
24    "Subscription" means an interest in a community renewable
25generation project expressed in kilowatts, which is sized
26primarily to offset part or all of the subscriber's

 

 

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1electricity usage.
2    "Substitute natural gas" or "SNG" means a gas manufactured
3by gasification of hydrocarbon feedstock, which is
4substantially interchangeable in use and distribution with
5conventional natural gas.
6    "Total resource cost test" or "TRC test" means a standard
7that is met if, for an investment in energy efficiency or
8demand-response measures, the benefit-cost ratio is greater
9than one. The benefit-cost ratio is the ratio of the net
10present value of the total benefits of the program to the net
11present value of the total costs as calculated over the
12lifetime of the measures. A total resource cost test compares
13the sum of avoided electric utility costs, representing the
14benefits that accrue to the system and the participant in the
15delivery of those efficiency measures and including avoided
16costs associated with reduced use of natural gas or other
17fuels, avoided costs associated with reduced water
18consumption, and avoided costs associated with reduced
19operation and maintenance costs, as well as other quantifiable
20societal benefits, to the sum of all incremental costs of
21end-use measures that are implemented due to the program
22(including both utility and participant contributions), plus
23costs to administer, deliver, and evaluate each demand-side
24program, to quantify the net savings obtained by substituting
25the demand-side program for supply resources. In calculating
26avoided costs of power and energy that an electric utility

 

 

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1would otherwise have had to acquire, reasonable estimates
2shall be included of financial costs likely to be imposed by
3future regulations and legislation on emissions of greenhouse
4gases. In discounting future societal costs and benefits for
5the purpose of calculating net present values, a societal
6discount rate based on actual, long-term Treasury bond yields
7should be used. Notwithstanding anything to the contrary, the
8TRC test shall not include or take into account a calculation
9of market price suppression effects or demand reduction
10induced price effects.
11    "Utility-scale solar project" means an electric generating
12facility that:
13        (1) generates electricity using photovoltaic cells;
14    and
15        (2) has a nameplate capacity that is greater than
16    5,000 kilowatts.
17    "Utility-scale wind project" means an electric generating
18facility that:
19        (1) generates electricity using wind; and
20        (2) has a nameplate capacity that is greater than
21    5,000 kilowatts.
22    "Waste Heat to Power Systems" means systems that capture
23and generate electricity from energy that would otherwise be
24lost to the atmosphere without the use of additional fuel.
25    "Zero emission credit" means a tradable credit that
26represents the environmental attributes of one megawatt hour

 

 

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1of energy produced from a zero emission facility.
2    "Zero emission facility" means a facility that: (1) is
3fueled by nuclear power; and (2) is interconnected with PJM
4Interconnection, LLC or the Midcontinent Independent System
5Operator, Inc., or their successors.
6(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
7103-380, eff. 1-1-24.)
 
8    (20 ILCS 3855/1-20)
9    Sec. 1-20. General powers and duties of the Agency.
10    (a) The Agency is authorized to do each of the following:
11        (1) Develop electricity procurement plans to ensure
12    adequate, reliable, affordable, efficient, and
13    environmentally sustainable electric service at the lowest
14    total cost over time, taking into account any benefits of
15    price stability, for electric utilities that on December
16    31, 2005 provided electric service to at least 100,000
17    customers in Illinois and for small multi-jurisdictional
18    electric utilities that (A) on December 31, 2005 served
19    less than 100,000 customers in Illinois and (B) request a
20    procurement plan for their Illinois jurisdictional load.
21    Except as provided in paragraph (1.5) of this subsection
22    (a), the electricity procurement plans shall be updated on
23    an annual basis and shall include electricity generated
24    from renewable resources sufficient to achieve the
25    standards specified in this Act. Beginning with the

 

 

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1    delivery year commencing June 1, 2017, develop procurement
2    plans to include zero emission credits generated from zero
3    emission facilities sufficient to achieve the standards
4    specified in this Act. Beginning with the delivery year
5    commencing on June 1, 2022, the Agency is authorized to
6    develop carbon mitigation credit procurement plans to
7    include carbon mitigation credits generated from
8    carbon-free energy resources sufficient to achieve the
9    standards specified in this Act.
10        (1.5) Develop a long-term renewable resources
11    procurement plan in accordance with subsection (c) of
12    Section 1-75 of this Act for renewable energy credits in
13    amounts sufficient to achieve the standards specified in
14    this Act for delivery years commencing June 1, 2017 and
15    for the programs and renewable energy credits specified in
16    Section 1-56 of this Act. Electricity procurement plans
17    for delivery years commencing after May 31, 2017, shall
18    not include procurement of renewable energy resources.
19        (1.7) Develop a high voltage direct current renewable
20    energy credit procurement in accordance with subsection
21    (c-7) of Section 1-75 of this Act for high voltage direct
22    current renewable energy credits for delivery starting on
23    or about June 1, 2029 or as otherwise provided in this Act
24    for at least 25 years, or as otherwise permitted under
25    that subsection.
26        (2) Conduct competitive procurement processes to

 

 

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1    procure the supply resources identified in the electricity
2    procurement plan, pursuant to Section 16-111.5 of the
3    Public Utilities Act, and, for the delivery year
4    commencing June 1, 2017, conduct procurement processes to
5    procure zero emission credits from zero emission
6    facilities, under subsection (d-5) of Section 1-75 of this
7    Act. For the delivery year commencing June 1, 2022, the
8    Agency is authorized to conduct procurement processes to
9    procure carbon mitigation credits from carbon-free energy
10    resources, under subsection (d-10) of Section 1-75 of this
11    Act.
12        (2.5) Beginning with the procurement for the 2017
13    delivery year, conduct competitive procurement processes
14    and implement programs to procure renewable energy credits
15    identified in the long-term renewable resources
16    procurement plan developed and approved under subsection
17    (c) of Section 1-75 of this Act and Section 16-111.5 of the
18    Public Utilities Act.
19        (2.10) Oversee the procurement by electric utilities
20    that served more than 300,000 customers in this State as
21    of January 1, 2019 of renewable energy credits from new
22    renewable energy facilities to be installed, along with
23    energy storage facilities, at or adjacent to the sites of
24    electric generating facilities that burned coal as their
25    primary fuel source as of January 1, 2016 in accordance
26    with subsection (c-5) of Section 1-75 of this Act.

 

 

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1        (2.15) Oversee the procurement by electric utilities
2    of renewable energy credits from newly modernized or
3    retooled hydropower dams or dams that have been converted
4    to support hydropower generation.
5        (3) Develop electric generation and co-generation
6    facilities that use indigenous coal or renewable
7    resources, or both, financed with bonds issued by the
8    Illinois Finance Authority.
9        (4) Supply electricity from the Agency's facilities at
10    cost to one or more of the following: municipal electric
11    systems, governmental aggregators, or rural electric
12    cooperatives in Illinois.
13    (b) Except as otherwise limited by this Act, the Agency
14has all of the powers necessary or convenient to carry out the
15purposes and provisions of this Act, including without
16limitation, each of the following:
17        (1) To have a corporate seal, and to alter that seal at
18    pleasure, and to use it by causing it or a facsimile to be
19    affixed or impressed or reproduced in any other manner.
20        (2) To use the services of the Illinois Finance
21    Authority necessary to carry out the Agency's purposes.
22        (3) To negotiate and enter into loan agreements and
23    other agreements with the Illinois Finance Authority.
24        (4) To obtain and employ personnel and hire
25    consultants that are necessary to fulfill the Agency's
26    purposes, and to make expenditures for that purpose within

 

 

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1    the appropriations for that purpose.
2        (5) To purchase, receive, take by grant, gift, devise,
3    bequest, or otherwise, lease, or otherwise acquire, own,
4    hold, improve, employ, use, and otherwise deal in and
5    with, real or personal property whether tangible or
6    intangible, or any interest therein, within the State.
7        (6) To acquire real or personal property, whether
8    tangible or intangible, including without limitation
9    property rights, interests in property, franchises,
10    obligations, contracts, and debt and equity securities,
11    and to do so by the exercise of the power of eminent domain
12    in accordance with Section 1-21; except that any real
13    property acquired by the exercise of the power of eminent
14    domain must be located within the State.
15        (7) To sell, convey, lease, exchange, transfer,
16    abandon, or otherwise dispose of, or mortgage, pledge, or
17    create a security interest in, any of its assets,
18    properties, or any interest therein, wherever situated.
19        (8) To purchase, take, receive, subscribe for, or
20    otherwise acquire, hold, make a tender offer for, vote,
21    employ, sell, lend, lease, exchange, transfer, or
22    otherwise dispose of, mortgage, pledge, or grant a
23    security interest in, use, and otherwise deal in and with,
24    bonds and other obligations, shares, or other securities
25    (or interests therein) issued by others, whether engaged
26    in a similar or different business or activity.

 

 

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1        (9) To make and execute agreements, contracts, and
2    other instruments necessary or convenient in the exercise
3    of the powers and functions of the Agency under this Act,
4    including contracts with any person, including personal
5    service contracts, or with any local government, State
6    agency, or other entity; and all State agencies and all
7    local governments are authorized to enter into and do all
8    things necessary to perform any such agreement, contract,
9    or other instrument with the Agency. No such agreement,
10    contract, or other instrument shall exceed 40 years.
11        (10) To lend money, invest and reinvest its funds in
12    accordance with the Public Funds Investment Act, and take
13    and hold real and personal property as security for the
14    payment of funds loaned or invested.
15        (11) To borrow money at such rate or rates of interest
16    as the Agency may determine, issue its notes, bonds, or
17    other obligations to evidence that indebtedness, and
18    secure any of its obligations by mortgage or pledge of its
19    real or personal property, machinery, equipment,
20    structures, fixtures, inventories, revenues, grants, and
21    other funds as provided or any interest therein, wherever
22    situated.
23        (12) To enter into agreements with the Illinois
24    Finance Authority to issue bonds whether or not the income
25    therefrom is exempt from federal taxation.
26        (13) To procure insurance against any loss in

 

 

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1    connection with its properties or operations in such
2    amount or amounts and from such insurers, including the
3    federal government, as it may deem necessary or desirable,
4    and to pay any premiums therefor.
5        (14) To negotiate and enter into agreements with
6    trustees or receivers appointed by United States
7    bankruptcy courts or federal district courts or in other
8    proceedings involving adjustment of debts and authorize
9    proceedings involving adjustment of debts and authorize
10    legal counsel for the Agency to appear in any such
11    proceedings.
12        (15) To file a petition under Chapter 9 of Title 11 of
13    the United States Bankruptcy Code or take other similar
14    action for the adjustment of its debts.
15        (16) To enter into management agreements for the
16    operation of any of the property or facilities owned by
17    the Agency.
18        (17) To enter into an agreement to transfer and to
19    transfer any land, facilities, fixtures, or equipment of
20    the Agency to one or more municipal electric systems,
21    governmental aggregators, or rural electric agencies or
22    cooperatives, for such consideration and upon such terms
23    as the Agency may determine to be in the best interest of
24    the residents of Illinois.
25        (18) To enter upon any lands and within any building
26    whenever in its judgment it may be necessary for the

 

 

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1    purpose of making surveys and examinations to accomplish
2    any purpose authorized by this Act.
3        (19) To maintain an office or offices at such place or
4    places in the State as it may determine.
5        (20) To request information, and to make any inquiry,
6    investigation, survey, or study that the Agency may deem
7    necessary to enable it effectively to carry out the
8    provisions of this Act.
9        (21) To accept and expend appropriations.
10        (22) To engage in any activity or operation that is
11    incidental to and in furtherance of efficient operation to
12    accomplish the Agency's purposes, including hiring
13    employees that the Director deems essential for the
14    operations of the Agency.
15        (23) To adopt, revise, amend, and repeal rules with
16    respect to its operations, properties, and facilities as
17    may be necessary or convenient to carry out the purposes
18    of this Act, subject to the provisions of the Illinois
19    Administrative Procedure Act and Sections 1-22 and 1-35 of
20    this Act.
21        (24) To establish and collect charges and fees as
22    described in this Act.
23        (25) To conduct competitive gasification feedstock
24    procurement processes to procure the feedstocks for the
25    clean coal SNG brownfield facility in accordance with the
26    requirements of Section 1-78 of this Act.

 

 

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1        (26) To review, revise, and approve sourcing
2    agreements and mediate and resolve disputes between gas
3    utilities and the clean coal SNG brownfield facility
4    pursuant to subsection (h-1) of Section 9-220 of the
5    Public Utilities Act.
6        (27) To request, review and accept proposals, execute
7    contracts, purchase renewable energy credits and otherwise
8    dedicate funds from the Illinois Power Agency Renewable
9    Energy Resources Fund to create and carry out the
10    objectives of the Illinois Solar for All Program in
11    accordance with Section 1-56 of this Act.
12        (28) To ensure Illinois residents and business benefit
13    from programs administered by the Agency and are properly
14    protected from any deceptive or misleading marketing
15    practices by participants in the Agency's programs and
16    procurements.
17    (c) In conducting the procurement of electricity or other
18products, beginning January 1, 2022, the Agency shall not
19procure any products or services from persons or organizations
20that are in violation of the Displaced Energy Workers Bill of
21Rights, as provided under the Energy Community Reinvestment
22Act at the time of the procurement event or fail to comply the
23labor standards established in subparagraph (Q) of paragraph
24(1) of subsection (c) of Section 1-75.
25(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
 

 

 

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1    (20 ILCS 3855/1-75)
2    Sec. 1-75. Planning and Procurement Bureau. The Planning
3and Procurement Bureau has the following duties and
4responsibilities:
5    (a) The Planning and Procurement Bureau shall each year,
6beginning in 2008, develop procurement plans and conduct
7competitive procurement processes in accordance with the
8requirements of Section 16-111.5 of the Public Utilities Act
9for the eligible retail customers of electric utilities that
10on December 31, 2005 provided electric service to at least
11100,000 customers in Illinois. Beginning with the delivery
12year commencing on June 1, 2017, the Planning and Procurement
13Bureau shall develop plans and processes for the procurement
14of zero emission credits from zero emission facilities in
15accordance with the requirements of subsection (d-5) of this
16Section. Beginning on the effective date of this amendatory
17Act of the 102nd General Assembly, the Planning and
18Procurement Bureau shall develop plans and processes for the
19procurement of carbon mitigation credits from carbon-free
20energy resources in accordance with the requirements of
21subsection (d-10) of this Section. The Planning and
22Procurement Bureau shall also develop procurement plans and
23conduct competitive procurement processes in accordance with
24the requirements of Section 16-111.5 of the Public Utilities
25Act for the eligible retail customers of small
26multi-jurisdictional electric utilities that (i) on December

 

 

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131, 2005 served less than 100,000 customers in Illinois and
2(ii) request a procurement plan for their Illinois
3jurisdictional load. This Section shall not apply to a small
4multi-jurisdictional utility until such time as a small
5multi-jurisdictional utility requests the Agency to prepare a
6procurement plan for their Illinois jurisdictional load. For
7the purposes of this Section, the term "eligible retail
8customers" has the same definition as found in Section
916-111.5(a) of the Public Utilities Act.
10    Beginning with the plan or plans to be implemented in the
112017 delivery year, the Agency shall no longer include the
12procurement of renewable energy resources in the annual
13procurement plans required by this subsection (a), except as
14provided in subsection (q) of Section 16-111.5 of the Public
15Utilities Act, and shall instead develop a long-term renewable
16resources procurement plan in accordance with subsection (c)
17of this Section and Section 16-111.5 of the Public Utilities
18Act.
19    In accordance with subsection (c-5) of this Section, the
20Planning and Procurement Bureau shall oversee the procurement
21by electric utilities that served more than 300,000 retail
22customers in this State as of January 1, 2019 of renewable
23energy credits from new utility-scale solar projects to be
24installed, along with energy storage facilities, at or
25adjacent to the sites of electric generating facilities that,
26as of January 1, 2016, burned coal as their primary fuel

 

 

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1source.
2    In accordance with subsection (c-7) of this Section, the
3Planning and Procurement Bureau shall oversee the procurement
4by electric utilities that served more than 300,000 retail
5customers in this State as of January 1, 2019 of high voltage
6direct current renewable energy credits.
7        (1) The Agency shall each year, beginning in 2008, as
8    needed, issue a request for qualifications for experts or
9    expert consulting firms to develop the procurement plans
10    in accordance with Section 16-111.5 of the Public
11    Utilities Act. In order to qualify an expert or expert
12    consulting firm must have:
13            (A) direct previous experience assembling
14        large-scale power supply plans or portfolios for
15        end-use customers;
16            (B) an advanced degree in economics, mathematics,
17        engineering, risk management, or a related area of
18        study;
19            (C) 10 years of experience in the electricity
20        sector, including managing supply risk;
21            (D) expertise in wholesale electricity market
22        rules, including those established by the Federal
23        Energy Regulatory Commission and regional transmission
24        organizations;
25            (E) expertise in credit protocols and familiarity
26        with contract protocols;

 

 

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

 

 

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1        the affected electric utilities.
2        (3) The Agency shall provide affected utilities and
3    other interested parties with the lists of qualified
4    experts or expert consulting firms identified through the
5    request for qualifications processes that are under
6    consideration to develop the procurement plans and to
7    serve as the procurement administrator. The Agency shall
8    also provide each qualified expert's or expert consulting
9    firm's response to the request for qualifications. All
10    information provided under this subparagraph shall also be
11    provided to the Commission. The Agency may provide by rule
12    for fees associated with supplying the information to
13    utilities and other interested parties. These parties
14    shall, within 5 business days, notify the Agency in
15    writing if they object to any experts or expert consulting
16    firms on the lists. Objections shall be based on:
17            (A) failure to satisfy qualification criteria;
18            (B) identification of a conflict of interest; or
19            (C) evidence of inappropriate bias for or against
20        potential bidders or the affected utilities.
21        The Agency shall remove experts or expert consulting
22    firms from the lists within 10 days if there is a
23    reasonable basis for an objection and provide the updated
24    lists to the affected utilities and other interested
25    parties. If the Agency fails to remove an expert or expert
26    consulting firm from a list, an objecting party may seek

 

 

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1    review by the Commission within 5 days thereafter by
2    filing a petition, and the Commission shall render a
3    ruling on the petition within 10 days. There is no right of
4    appeal of the Commission's ruling.
5        (4) The Agency shall issue requests for proposals to
6    the qualified experts or expert consulting firms to
7    develop a procurement plan for the affected utilities and
8    to serve as procurement administrator.
9        (5) The Agency shall select an expert or expert
10    consulting firm to develop procurement plans based on the
11    proposals submitted and shall award contracts of up to 5
12    years to those selected.
13        (6) The Agency shall select an expert or expert
14    consulting firm, with approval of the Commission, to serve
15    as procurement administrator based on the proposals
16    submitted. If the Commission rejects, within 5 days, the
17    Agency's selection, the Agency shall submit another
18    recommendation within 3 days based on the proposals
19    submitted. The Agency shall award a 5-year contract to the
20    expert or expert consulting firm so selected with
21    Commission approval.
22    (b) The experts or expert consulting firms retained by the
23Agency shall, as appropriate, prepare procurement plans, and
24conduct a competitive procurement process as prescribed in
25Section 16-111.5 of the Public Utilities Act, to ensure
26adequate, reliable, affordable, efficient, and environmentally

 

 

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1sustainable electric service at the lowest total cost over
2time, taking into account any benefits of price stability, for
3eligible retail customers of electric utilities that on
4December 31, 2005 provided electric service to at least
5100,000 customers in the State of Illinois, and for eligible
6Illinois retail customers of small multi-jurisdictional
7electric utilities that (i) on December 31, 2005 served less
8than 100,000 customers in Illinois and (ii) request a
9procurement plan for their Illinois jurisdictional load.
10    (c) Renewable portfolio standard.
11        (1)(A) The Agency shall develop a long-term renewable
12    resources procurement plan that shall include procurement
13    programs and competitive procurement events necessary to
14    meet the goals set forth in this subsection (c). The
15    initial long-term renewable resources procurement plan
16    shall be released for comment no later than 160 days after
17    June 1, 2017 (the effective date of Public Act 99-906).
18    The Agency shall review, and may revise on an expedited
19    basis, the long-term renewable resources procurement plan
20    at least every 2 years, which shall be conducted in
21    conjunction with the procurement plan under Section
22    16-111.5 of the Public Utilities Act to the extent
23    practicable to minimize administrative expense. No later
24    than 120 days after the effective date of this amendatory
25    Act of the 103rd General Assembly, the Agency shall
26    release for comment a revision to the long-term renewable

 

 

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1    resources procurement plan, updating elements of the most
2    recently approved plan as needed to comply with this
3    amendatory Act of the 103rd General Assembly, and any
4    long-term renewable resources procurement plan update
5    published by the Agency but not yet approved by the
6    Illinois Commerce Commission shall be withdrawn. The
7    long-term renewable resources procurement plans shall be
8    subject to review and approval by the Commission under
9    Section 16-111.5 of the Public Utilities Act.
10        (B) Subject to subparagraph (F) of this paragraph (1),
11    the long-term renewable resources procurement plan shall
12    attempt to meet the goals for procurement of renewable
13    energy credits at levels of at least the following overall
14    percentages: 13% by the 2017 delivery year; increasing by
15    at least 1.5% each delivery year thereafter to at least
16    25% by the 2025 delivery year; increasing by at least 3%
17    each delivery year thereafter to at least 40% by the 2030
18    delivery year, and continuing at no less than 40% for each
19    delivery year thereafter. The Agency shall attempt to
20    procure 50% by delivery year 2040. The Agency shall
21    determine the annual increase between delivery year 2030
22    and delivery year 2040, if any, taking into account energy
23    demand, other energy resources, and other public policy
24    goals. In the event of a conflict between these goals and
25    the new wind, new photovoltaic, and hydropower procurement
26    requirements described in items (i) through (iii) of

 

 

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1    subparagraph (C) of this paragraph (1), the long-term plan
2    shall prioritize compliance with the new wind, new
3    photovoltaic, and hydropower procurement requirements
4    described in items (i) through (iii) of subparagraph (C)
5    of this paragraph (1) over the annual percentage targets
6    described in this subparagraph (B). The Agency shall not
7    comply with the annual percentage targets described in
8    this subparagraph (B) by procuring renewable energy
9    credits that are unlikely to lead to the development of
10    new renewable resources or new, modernized, or retooled
11    hydropower facilities.
12        For the delivery year beginning June 1, 2017, the
13    procurement plan shall attempt to include, subject to the
14    prioritization outlined in this subparagraph (B),
15    cost-effective renewable energy resources equal to at
16    least 13% of each utility's load for eligible retail
17    customers and 13% of the applicable portion of each
18    utility's load for retail customers who are not eligible
19    retail customers, which applicable portion shall equal 50%
20    of the utility's load for retail customers who are not
21    eligible retail customers on February 28, 2017.
22        For the delivery year beginning June 1, 2018, the
23    procurement plan shall attempt to include, subject to the
24    prioritization outlined in this subparagraph (B),
25    cost-effective renewable energy resources equal to at
26    least 14.5% of each utility's load for eligible retail

 

 

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

 

 

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1    shall be used to meet the goals set forth in this
2    subsection (c) for the delivery year.
3        (C) The long-term renewable resources procurement plan
4    described in subparagraph (A) of this paragraph (1) shall
5    include the procurement of renewable energy credits from
6    new projects pursuant to the following terms:
7            (i) At least 10,000,000 renewable energy credits
8        delivered annually by the end of the 2021 delivery
9        year, and increasing ratably to reach 45,000,000
10        renewable energy credits delivered annually from new
11        wind and solar projects by the end of delivery year
12        2030 such that the goals in subparagraph (B) of this
13        paragraph (1) are met entirely by procurements of
14        renewable energy credits from new wind and
15        photovoltaic projects. Of that amount, to the extent
16        possible, the Agency shall procure 45% from wind and
17        hydropower projects and 55% from photovoltaic
18        projects. Of the amount to be procured from
19        photovoltaic projects, the Agency shall procure: at
20        least 50% from solar photovoltaic projects using the
21        program outlined in subparagraph (K) of this paragraph
22        (1) from distributed renewable energy generation
23        devices or community renewable generation projects; at
24        least 47% from utility-scale solar projects; at least
25        3% from brownfield site photovoltaic projects that are
26        not community renewable generation projects. High

 

 

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1        voltage direct current renewable energy credits
2        procured by the Agency pursuant to subsection (c-7) of
3        this Section 1-75 shall not count toward the renewable
4        energy credit purchase targets in this subparagraph
5        (i); however, nothing prohibits the Agency from
6        procuring high voltage direct current renewable energy
7        credits under a procurement authorized by this
8        subsection (c) from counting toward the renewable
9        energy credit purchase targets in this subparagraph
10        (i).
11            In developing the long-term renewable resources
12        procurement plan, the Agency shall consider other
13        approaches, in addition to competitive procurements,
14        that can be used to procure renewable energy credits
15        from brownfield site photovoltaic projects and thereby
16        help return blighted or contaminated land to
17        productive use while enhancing public health and the
18        well-being of Illinois residents, including those in
19        environmental justice communities, as defined using
20        existing methodologies and findings used by the Agency
21        and its Administrator in its Illinois Solar for All
22        Program. The Agency shall also consider other
23        approaches, in addition to competitive procurements,
24        to procure renewable energy credits from new and
25        existing hydropower facilities to support the
26        development and maintenance of these facilities. The

 

 

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1        Agency shall explore options to convert existing dams
2        but shall not consider approaches to develop new dams
3        where they do not already exist.
4            (ii) In any given delivery year, if forecasted
5        expenses are less than the maximum budget available
6        under subparagraph (E) of this paragraph (1), the
7        Agency shall continue to procure new renewable energy
8        credits until that budget is exhausted in the manner
9        outlined in item (i) of this subparagraph (C).
10            (iii) For purposes of this Section:
11            "New wind projects" means wind renewable energy
12        facilities that are energized after June 1, 2017 for
13        the delivery year commencing June 1, 2017.
14            "New photovoltaic projects" means photovoltaic
15        renewable energy facilities that are energized after
16        June 1, 2017. Photovoltaic projects developed under
17        Section 1-56 of this Act shall not apply towards the
18        new photovoltaic project requirements in this
19        subparagraph (C).
20            For purposes of calculating whether the Agency has
21        procured enough new wind and solar renewable energy
22        credits required by this subparagraph (C), renewable
23        energy facilities that have a multi-year renewable
24        energy credit delivery contract with the utility
25        through at least delivery year 2030 shall be
26        considered new, however no renewable energy credits

 

 

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1        from contracts entered into before June 1, 2021 shall
2        be used to calculate whether the Agency has procured
3        the correct proportion of new wind and new solar
4        contracts described in this subparagraph (C) for
5        delivery year 2021 and thereafter.
6    (c-7) Within 120 days after the effective date of this
7amendatory Act of the 103rd General Assembly, the Agency shall
8develop a one-time high voltage direct current renewable
9energy credit procurement plan limited to the procurement of
10high voltage direct current renewable energy credits.
11        (1) In addition to the procurement of renewable energy
12    credits pursuant to long-term renewable resources
13    procurement plans in accordance with subsection (c) of
14    this Section, Section 16-111.5 of the Public Utilities
15    Act, and the procurement of coal-to-solar renewable energy
16    credits in accordance with subsection (c-5) of this
17    Section, the Agency shall conduct procurement events in
18    accordance with this subsection (c-7) for the procurement
19    by electric utilities that served more than 300,000 retail
20    customers in this State as of January 1, 2019 of high
21    voltage direct current renewable energy credits and meet
22    the other criteria specified in this subsection (c-7). The
23    procurement of renewable energy credits by electric
24    utilities pursuant to this subsection (c-7) shall be
25    funded solely by revenues collected from the dispatchable
26    and reliable renewable energy charge provided for in this

 

 

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1    subsection (c-7) and subsection (i-7) of Section 16-108 of
2    the Public Utilities Act, shall not be funded by revenues
3    collected through any of the other funding mechanisms
4    provided for in subsection (c) of this Section, and shall
5    not be subject to the limitation imposed by subsection (c)
6    on charges to retail customers for costs to procure
7    renewable energy resources pursuant to subsection (c), and
8    shall not be subject to any other requirements or
9    limitations of subsection (c).
10        (2) Within 5 days after the filing of the high voltage
11    direct current renewable energy credit procurement plan at
12    the Commission, any person objecting to the supplemental
13    procurement plan shall file an objection with the
14    Commission. Within 10 days after the filing, the
15    Commission shall determine whether a hearing is necessary.
16    The Commission shall enter its order confirming or
17    modifying the supplemental procurement plan within 90 days
18    after the filing of the supplemental procurement plan by
19    the Agency.
20        (3) The Commission shall approve the high voltage
21    direct current renewable energy credit procurement plan if
22    the Commission determines that it will ensure adequate,
23    reliable, affordable, efficient, and environmentally
24    sustainable electric service in the form of renewable
25    energy credits at the lowest total cost over time, taking
26    into account any benefits of price stability.

 

 

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1        (4) The high voltage direct current renewable energy
2    credit procurement plan shall provide for procurement of
3    high voltage direct current renewable energy credits using
4    an indexed renewable energy credit structure as described
5    in item (v) of subparagraph (G) of paragraph (1) of
6    subsection (c) of this Section 1-75. The high voltage
7    direct current renewable energy credit procurement plan
8    shall procure a target volume of not less than 12,500,000
9    high voltage direct current renewable energy credits
10    delivered annually. Notwithstanding the preceding
11    provisions, the contracts for high voltage direct current
12    renewable energy credits shall contain the following
13    terms:
14            (i) delivery begins on the later of June 1, 2029
15        and energization of the associated high voltage direct
16        current transmission line, with additional reasonable
17        extensions available for delays in energization of the
18        generation facility;
19            (ii) the term shall be selected by the bidder to be
20        not less than 25 years and not more than 40 years;
21            (iii) the fuel type for the high voltage direct
22        current renewable energy credits shall be solar
23        photovoltaics or wind, or if insufficient high voltage
24        direct current renewable energy credits are available
25        from solar photovoltaics or wind, other fuel types
26        that qualify as a renewable resource under Section

 

 

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1        1-10 of this Act;
2            (iv) monthly payment for renewable energy credits
3        actually delivered, not to exceed on a three-year
4        rolling average basis 120% of the annual delivery
5        quantity bid;
6            (v) a reasonable minimum annual delivery quantity
7        of high voltage direct current renewable energy
8        credits, however no penalties shall be assessed in the
9        event of force majeure, to the extent that the minimum
10        annual delivery quantity was missed due to less than
11        full dispatch of the high voltage direct current
12        converter station or curtailment of associated
13        generation during that same delivery year, or such
14        other reasonable exceptions as may be identified;
15            (vi) reasonable performance assurance and credit
16        requirements;
17            (vii) all high voltage direct current renewable
18        energy credits delivered must be generated from a
19        system that is energized or repowered on or after the
20        effective date of this Act; and
21            (viii) At any time after selection, the winning
22        bidder may change upon notice to the Agency the
23        generation source or anticipated generation source of
24        any high voltage direct current renewable energy
25        credits.
26    The high voltage direct current renewable energy credit

 

 

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1procurement plan shall allow the owner or operator, or the
2owner's or operator's designee, to enter multiple bids,
3provided that the same bid shall not include high-voltage
4direct current renewable energy credits pledged in another
5bid.
6    The high voltage direct current renewable energy credit
7procurement plan shall not, subject to the preference for
8solar photovoltaic and wind generation, prohibit or penalize
9any renewable energy credits that meet the definition of high
10voltage renewable energy credit in this Act.
11    The high voltage direct current renewable energy credit
12procurement plan shall include a contingency plan if the
13Agency procures less than 12,500,000 high voltage direct
14current renewable energy credits annually or if one or more
15winning bidders fails to deliver any high voltage direct
16current renewable energy credits. The number of high voltage
17direct current renewable energy credits to be procured as
18specified in this paragraph (4) shall not be reduced based on
19renewable energy credits procured in the self-direct renewable
20energy credit compliance program established pursuant to
21subparagraph (R) of paragraph (1) of subsection (c) of Section
221-75.
23        (5) The renewable energy credits procured pursuant to
24    the high voltage direct current renewable energy credit
25    procurement plan shall be procured in accordance with the
26    Agency and Commission's process competitive procurement in

 

 

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1    subsections (e) through (p) of Section 16-111.5 of the
2    Public Utilities Act, as applicable. Notwithstanding
3    anything in Section 16-111.5 of the Public Utilities Act:
4            (A) To ensure the delivery of high voltage direct
5        current renewable energy credits, the high voltage
6        direct current renewable energy credit procurement
7        plan shall provide that only the owner or operator of a
8        high voltage direct current transmission line or its
9        designee may bid in the procurements described in this
10        subsection (c-7). For the purposes of this paragraph,
11        the owner or operator, or the owner's or operator's
12        designee, must demonstrate that it has site control of
13        at least 90 miles route located within Illinois, and
14        plans reflecting 525 kV or greater delivery voltage
15        and construction of at least 100 miles of transmission
16        line underground in Illinois. For the purpose of this
17        subparagraph, "site control" may include easements,
18        leases, options for leases, or any similar indicia of
19        site control identified by the Agency.
20            (B) For the purpose of the competitive
21        procurement, a bid shall be a price and quantity of
22        high voltage direct current renewable energy credits.
23        Each bid shall be for a quantity of not less than
24        5,000,000 high voltage direct current renewable energy
25        credits annually.
26            (C) The Agency shall only procure cost-effective

 

 

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1        high voltage direct current renewable energy credits.
2        For the purposes of this subsection (c-7),
3        "cost-effective" shall mean the high voltage direct
4        current renewable energy credits shall not exceed
5        benchmarks based on market prices for high voltage
6        direct current renewable energy credits.
7            (D) Each competitive bid shall specifically
8        identify the price charged by the high voltage direct
9        current transmission line. The benchmark established
10        in accordance with subsection (e) of Section 16-111.5
11        of the Public Utilities Act shall be applied to the bid
12        price minus the line item for the price charged by the
13        high voltage direct current transmission line.
14    Notwithstanding anything to the contrary in this Act or
15the Public Utilities Act, in developing the benchmark the
16Procurement Administrator shall use values for the capital and
17costs for a high voltage direct current transmission line. The
18Capital Development Board shall calculate a range of capital
19costs that it believes would be reasonable for an HVDC
20transmission line of similar specifications to an applicant
21high voltage direct current transmission line. The Capital
22Development Board may consult as much as it deems necessary
23with applicant or potential applicant high voltage direct
24current transmission lines and conduct whatever research and
25investigation it deems necessary. The Capital Development
26Board shall retain an engineering expert in making such

 

 

HB5514- 55 -LRB103 39335 CES 69496 b

1determination with at least ten years of experience in
2transmission and merchant transmission development and
3experience with high voltage direct current transmission. The
4expert shall: (i) not own or control any direct or indirect
5interest in the high voltage direct current transmission line,
6and (iii) have no contractual relationship with the high
7voltage direct current transmission line.
8        (E) The contract price shall the original bid price of
9    each winning bidder, inclusive of the costs charged by the
10    high voltage direct current transmission line.
11        (F) For the purposes of this paragraph (4), all
12    information about high voltage direct current transmission
13    line pricing shall be maintained as highly confidential
14    and not disclosed by the Agency, Commission, or any third
15    party otherwise privy to such information.
16    (6) The Agency and its procurement administrator shall
17administer the procurement authorized in the high voltage
18direct current renewable energy credit procurement plan not
19later than December 31, 2024.
20    (7) The Agency shall assess fees to each applicant to
21recover the Agency's costs incurred in receiving and
22evaluating applications, conducting the procurement event,
23developing contracts for sale, delivery and purchase of
24renewable energy credits, and monitoring the administration of
25such contracts, as provided for in this subsection (c-7),
26including fees paid to a procurement administrator retained by

 

 

HB5514- 56 -LRB103 39335 CES 69496 b

1the Agency for one or more of these purposes.
2    (8) The obligation to purchase high voltage direct current
3renewable energy credits selected by the Agency shall be
4allocated to the electric utilities based on their respective
5percentages of kilowatthours delivered to delivery services
6customers to the aggregate kilowatthour deliveries by the
7electric utilities to delivery services customers for the year
8ended December 31, 2021. In order to achieve these allocation
9percentages between or among the electric utilities, the
10Agency shall require each applicant that is selected in the
11procurement event to enter into a contract with each electric
12utility for the sale and purchase of high voltage direct
13current renewable energy credits meeting the standards of this
14subsection (c-7), with the sale and purchase obligations under
15the contracts to aggregate to the total number of high voltage
16direct current renewable energy credits per year to be
17supplied by the applicant.
18        (D) Renewable energy credits shall be cost effective.
19    For purposes of this subsection (c), "cost effective"
20    means that the costs of procuring renewable energy
21    resources do not cause the limit stated in subparagraph
22    (E) of this paragraph (1) to be exceeded and, for
23    renewable energy credits procured through a competitive
24    procurement event, do not exceed benchmarks based on
25    market prices for like products in the region. For
26    purposes of this subsection (c), "like products" means

 

 

HB5514- 57 -LRB103 39335 CES 69496 b

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

 

 

HB5514- 58 -LRB103 39335 CES 69496 b

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

 

 

HB5514- 59 -LRB103 39335 CES 69496 b

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

 

 

HB5514- 60 -LRB103 39335 CES 69496 b

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

 

 

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1        solicit 15-year contracts for delivery of 1,000,000
2        renewable energy credits delivered annually from new
3        utility-scale wind projects to begin delivery on June
4        1, 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. Payments to
12        suppliers of renewable energy credits shall commence
13        upon delivery. Renewable energy credits procured under
14        this initial procurement shall be included in the
15        Agency's long-term plan and shall apply to all
16        renewable energy goals in this subsection (c).
17            (ii) Notwithstanding whether a long-term renewable
18        resources procurement plan has been approved, the
19        Agency shall conduct an initial forward procurement
20        for renewable energy credits from new utility-scale
21        solar projects and brownfield site photovoltaic
22        projects within one year after June 1, 2017 (the
23        effective date of Public Act 99-906). For the purposes
24        of this initial forward procurement, the Agency shall
25        solicit 15-year contracts for delivery of 1,000,000
26        renewable energy credits delivered annually from new

 

 

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

 

 

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

 

 

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

 

 

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1                the order in which they appear on the
2                waitlist. Any projects that are less than or
3                equal to 25 kilowatts in size on the waitlist
4                for this capacity shall be moved to the
5                waitlist for paragraph (1) of this item (iv).
6                Notwithstanding anything to the contrary,
7                projects that were on the waitlist prior to
8                opening of this block shall not be required to
9                be in compliance with the requirements of
10                subparagraph (Q) of this paragraph (1) of this
11                subsection (c). Notwithstanding anything to
12                the contrary, for those renewable energy
13                credits procured from projects that were on
14                the waitlist for this category before the
15                opening of this block 20% of the renewable
16                energy credit delivery contract value, based
17                on the estimated generation during the first
18                15 years of operation, shall be paid by the
19                contracting utilities at the time that the
20                facility producing the renewable energy
21                credits is interconnected at the distribution
22                system level of the utility and verified as
23                energized by the Program Administrator. The
24                remaining portion shall be paid ratably over
25                the subsequent 4-year period. The electric
26                utility shall receive and retire all renewable

 

 

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1                energy credits generated by the project during
2                the first 15 years of operation. Renewable
3                energy credits generated by the project
4                thereafter shall not be transferred under the
5                renewable energy credit delivery contract with
6                the counterparty electric utility.
7                    (B) The price of renewable energy credits
8                for any project not on the waitlist for this
9                category before the opening of the block shall
10                be determined and published by the Agency.
11                Projects not on a waitlist as of the opening
12                of this block shall be subject to the
13                requirements of subparagraph (Q) of this
14                paragraph (1), as applicable. Projects not on
15                a waitlist as of the opening of this block
16                shall be subject to the contract provisions
17                outlined in item (iii) of subparagraph (L) of
18                this paragraph (1). The Agency shall strive to
19                publish updated prices and an updated
20                renewable energy credit delivery contract as
21                quickly as possible.
22                (3) For opening the first 2 blocks of annual
23            capacity for projects participating in item (iii)
24            of subparagraph (K) of paragraph (1) of subsection
25            (c), projects shall be selected exclusively from
26            those projects on the ordinal waitlists of

 

 

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1            community renewable generation projects
2            established by the Agency based on the status of
3            those ordinal waitlists as of December 31, 2020,
4            and only those projects previously determined to
5            be eligible for the Agency's April 2019 community
6            solar project selection process.
7                The first 2 blocks of annual capacity for item
8            (iii) shall be for 250 megawatts of total
9            nameplate capacity, with both blocks opening
10            simultaneously under the schedule outlined in the
11            paragraphs below. Projects shall be selected as
12            follows:
13                    (A) The geographic balance of selected
14                projects shall follow the Group classification
15                found in the Agency's Revised Long-Term
16                Renewable Resources Procurement Plan, with 70%
17                of capacity allocated to projects on the Group
18                B waitlist and 30% of capacity allocated to
19                projects on the Group A waitlist.
20                    (B) Contract awards for waitlisted
21                projects shall be allocated proportionate to
22                the total nameplate capacity amount across
23                both ordinal waitlists associated with that
24                applicant firm or its affiliates, subject to
25                the following conditions.
26                        (i) Each applicant firm having a

 

 

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

 

 

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

 

 

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1                Contract instruments used for this
2                subparagraph shall contain the following
3                terms:
4                        (i) Renewable energy credit prices
5                    shall be fixed, without further adjustment
6                    under any other provision of this Act or
7                    for any other reason, at 10% lower than
8                    prices applicable to the last open block
9                    for this category, inclusive of any adders
10                    available for achieving a minimum of 50%
11                    of subscribers to the project's nameplate
12                    capacity being residential or small
13                    commercial customers with subscriptions of
14                    below 25 kilowatts in size;
15                        (ii) A requirement that a minimum of
16                    50% of subscribers to the project's
17                    nameplate capacity be residential or small
18                    commercial customers with subscriptions of
19                    below 25 kilowatts in size;
20                        (iii) Permission for the ability of a
21                    contract holder to substitute projects
22                    with other waitlisted projects without
23                    penalty should a project receive a
24                    non-binding estimate of costs to construct
25                    the interconnection facilities and any
26                    required distribution upgrades associated

 

 

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1                    with that project of greater than 30 cents
2                    per watt AC of that project's nameplate
3                    capacity. In developing the applicable
4                    contract instrument, the Agency may
5                    consider whether other circumstances
6                    outside of the control of the applicant
7                    firm should also warrant project
8                    substitution rights.
9                    The Agency shall publish a finalized
10                updated renewable energy credit delivery
11                contract developed consistent with these terms
12                and conditions no less than 30 days before
13                applicant firms must submit their portfolio of
14                projects pursuant to item (D).
15                    (F) To be eligible for an award, the
16                applicant firm shall certify that not less
17                than prevailing wage, as determined pursuant
18                to the Illinois Prevailing Wage Act, was or
19                will be paid to employees who are engaged in
20                construction activities associated with a
21                selected project.
22                (4) The Agency shall open the first block of
23            annual capacity for the category described in item
24            (iv) of subparagraph (K) of this paragraph (1).
25            The first block of annual capacity for item (iv)
26            shall be for at least 50 megawatts of total

 

 

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1            nameplate capacity. Renewable energy credit prices
2            shall be fixed, without further adjustment under
3            any other provision of this Act or for any other
4            reason, at the price in the last open block in the
5            category described in item (ii) of subparagraph
6            (K) of this paragraph (1). Pricing for future
7            blocks of annual capacity for this category may be
8            adjusted in the Agency's second revision to its
9            Long-Term Renewable Resources Procurement Plan.
10            Projects in this category shall be subject to the
11            contract terms outlined in item (iv) of
12            subparagraph (L) of this paragraph (1).
13                (5) The Agency shall open the equivalent of 2
14            years of annual capacity for the category
15            described in item (v) of subparagraph (K) of this
16            paragraph (1). The first block of annual capacity
17            for item (v) shall be for at least 10 megawatts of
18            total nameplate capacity. Notwithstanding the
19            provisions of item (v) of subparagraph (K) of this
20            paragraph (1), for the purpose of this initial
21            block, the agency shall accept new project
22            applications intended to increase the diversity of
23            areas hosting community solar projects, the
24            business models of projects, and the size of
25            projects, as described by the Agency in its
26            long-term renewable resources procurement plan

 

 

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1            that is approved as of the effective date of this
2            amendatory Act of the 102nd General Assembly.
3            Projects in this category shall be subject to the
4            contract terms outlined in item (iii) of
5            subsection (L) of this paragraph (1).
6                (6) The Agency shall open the first blocks of
7            annual capacity for the category described in item
8            (vi) of subparagraph (K) of this paragraph (1),
9            with allocations of capacity within the block
10            generally matching the historical share of block
11            capacity allocated between the category described
12            in items (i) and (ii) of subparagraph (K) of this
13            paragraph (1). The first two blocks of annual
14            capacity for item (vi) shall be for at least 75
15            megawatts of total nameplate capacity. The price
16            of renewable energy credits for the blocks of
17            capacity shall be 4% less than the price of the
18            last open blocks in the categories described in
19            items (i) and (ii) of subparagraph (K) of this
20            paragraph (1). Pricing for future blocks of annual
21            capacity for this category may be adjusted in the
22            Agency's second revision to its Long-Term
23            Renewable Resources Procurement Plan. Projects in
24            this category shall be subject to the applicable
25            contract terms outlined in items (ii) and (iii) of
26            subparagraph (L) of this paragraph (1).

 

 

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1            (v) Upon the effective date of this amendatory Act
2        of the 102nd General Assembly, for all competitive
3        procurements and any procurements of renewable energy
4        credit from new utility-scale wind and new
5        utility-scale photovoltaic projects, the Agency shall
6        procure indexed renewable energy credits and direct
7        respondents to offer a strike price.
8                (1) The purchase price of the indexed
9            renewable energy credit payment shall be
10            calculated for each settlement period. That
11            payment, for any settlement period, shall be equal
12            to the difference resulting from subtracting the
13            strike price from the index price for that
14            settlement period. If this difference results in a
15            negative number, the indexed REC counterparty
16            shall owe the seller the absolute value multiplied
17            by the quantity of energy produced in the relevant
18            settlement period. If this difference results in a
19            positive number, the seller shall owe the indexed
20            REC counterparty this amount multiplied by the
21            quantity of energy produced in the relevant
22            settlement period.
23                (2) Parties shall cash settle every month,
24            summing up all settlements (both positive and
25            negative, if applicable) for the prior month.
26                (3) To ensure funding in the annual budget

 

 

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1            established under subparagraph (E) for indexed
2            renewable energy credit procurements for each year
3            of the term of such contracts, which must have a
4            minimum tenure of 20 calendar years, the
5            procurement administrator, Agency, Commission
6            staff, and procurement monitor shall quantify the
7            annual cost of the contract by utilizing an
8            industry-standard, third-party forward price curve
9            for energy at the appropriate hub or load zone,
10            including the estimated magnitude and timing of
11            the price effects related to federal carbon
12            controls. Each forward price curve shall contain a
13            specific value of the forecasted market price of
14            electricity for each annual delivery year of the
15            contract. For procurement planning purposes, the
16            impact on the annual budget for the cost of
17            indexed renewable energy credits for each delivery
18            year shall be determined as the expected annual
19            contract expenditure for that year, equaling the
20            difference between (i) the sum across all relevant
21            contracts of the applicable strike price
22            multiplied by contract quantity and (ii) the sum
23            across all relevant contracts of the forward price
24            curve for the applicable load zone for that year
25            multiplied by contract quantity. The contracting
26            utility shall not assume an obligation in excess

 

 

HB5514- 76 -LRB103 39335 CES 69496 b

1            of the estimated annual cost of the contracts for
2            indexed renewable energy credits. Forward curves
3            shall be revised on an annual basis as updated
4            forward price curves are released and filed with
5            the Commission in the proceeding approving the
6            Agency's most recent long-term renewable resources
7            procurement plan. If the expected contract spend
8            is higher or lower than the total quantity of
9            contracts multiplied by the forward price curve
10            value for that year, the forward price curve shall
11            be updated by the procurement administrator, in
12            consultation with the Agency, Commission staff,
13            and procurement monitors, using then-currently
14            available price forecast data and additional
15            budget dollars shall be obligated or reobligated
16            as appropriate.
17                (4) To ensure that indexed renewable energy
18            credit prices remain predictable and affordable,
19            the Agency may consider the institution of a price
20            collar on REC prices paid under indexed renewable
21            energy credit procurements establishing floor and
22            ceiling REC prices applicable to indexed REC
23            contract prices. Any price collars applicable to
24            indexed REC procurements shall be proposed by the
25            Agency through its long-term renewable resources
26            procurement plan.

 

 

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1            (vi) All procurements under this subparagraph (G),
2        including the procurement of renewable energy credits
3        from hydropower facilities, shall comply with the
4        geographic requirements in subparagraph (I) of this
5        paragraph (1) and shall follow the procurement
6        processes and procedures described in this Section and
7        Section 16-111.5 of the Public Utilities Act to the
8        extent practicable, and these processes and procedures
9        may be expedited to accommodate the schedule
10        established by this subparagraph (G).
11            (vii) On and after the effective date of this
12        amendatory Act of the 103rd General Assembly, for all
13        procurements of renewable energy credits from
14        hydropower facilities, the Agency shall establish
15        contract terms designed to optimize existing
16        hydropower facilities through modernization or
17        retooling and establish new hydropower facilities at
18        existing dams. Procurements made under this item (vii)
19        shall prioritize projects located in designated
20        environmental justice communities, as defined in
21        subsection (b) of Section 1-56 of this Act, or in
22        projects located in units of local government with
23        median incomes that do not exceed 82% of the median
24        income of the State.
25        (H) The procurement of renewable energy resources for
26    a given delivery year shall be reduced as described in

 

 

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1    this subparagraph (H) if an alternative retail electric
2    supplier meets the requirements described in this
3    subparagraph (H).
4            (i) Within 45 days after June 1, 2017 (the
5        effective date of Public Act 99-906), an alternative
6        retail electric supplier or its successor shall submit
7        an informational filing to the Illinois Commerce
8        Commission certifying that, as of December 31, 2015,
9        the alternative retail electric supplier owned one or
10        more electric generating facilities that generates
11        renewable energy resources as defined in Section 1-10
12        of this Act, provided that such facilities are not
13        powered by wind or photovoltaics, and the facilities
14        generate one renewable energy credit for each
15        megawatthour of energy produced from the facility.
16            The informational filing shall identify each
17        facility that was eligible to satisfy the alternative
18        retail electric supplier's obligations under Section
19        16-115D of the Public Utilities Act as described in
20        this item (i).
21            (ii) For a given delivery year, the alternative
22        retail electric supplier may elect to supply its
23        retail customers with renewable energy credits from
24        the facility or facilities described in item (i) of
25        this subparagraph (H) that continue to be owned by the
26        alternative retail electric supplier.

 

 

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1            (iii) The alternative retail electric supplier
2        shall notify the Agency and the applicable utility, no
3        later than February 28 of the year preceding the
4        applicable delivery year or 15 days after June 1, 2017
5        (the effective date of Public Act 99-906), whichever
6        is later, of its election under item (ii) of this
7        subparagraph (H) to supply renewable energy credits to
8        retail customers of the utility. Such election shall
9        identify the amount of renewable energy credits to be
10        supplied by the alternative retail electric supplier
11        to the utility's retail customers and the source of
12        the renewable energy credits identified in the
13        informational filing as described in item (i) of this
14        subparagraph (H), subject to the following
15        limitations:
16                For the delivery year beginning June 1, 2018,
17            the maximum amount of renewable energy credits to
18            be supplied by an alternative retail electric
19            supplier under this subparagraph (H) shall be 68%
20            multiplied by 25% multiplied by 14.5% multiplied
21            by the amount of metered electricity
22            (megawatt-hours) delivered by the alternative
23            retail electric supplier to Illinois retail
24            customers during the delivery year ending May 31,
25            2016.
26                For delivery years beginning June 1, 2019 and

 

 

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1            each year thereafter, the maximum amount of
2            renewable energy credits to be supplied by an
3            alternative retail electric supplier under this
4            subparagraph (H) shall be 68% multiplied by 50%
5            multiplied by 16% multiplied by the amount of
6            metered electricity (megawatt-hours) delivered by
7            the alternative retail electric supplier to
8            Illinois retail customers during the delivery year
9            ending May 31, 2016, provided that the 16% value
10            shall increase by 1.5% each delivery year
11            thereafter to 25% by the delivery year beginning
12            June 1, 2025, and thereafter the 25% value shall
13            apply to each delivery year.
14            For each delivery year, the total amount of
15        renewable energy credits supplied by all alternative
16        retail electric suppliers under this subparagraph (H)
17        shall not exceed 9% of the Illinois target renewable
18        energy credit quantity. The Illinois target renewable
19        energy credit quantity for the delivery year beginning
20        June 1, 2018 is 14.5% multiplied by the total amount of
21        metered electricity (megawatt-hours) delivered in the
22        delivery year immediately preceding that delivery
23        year, provided that the 14.5% shall increase by 1.5%
24        each delivery year thereafter to 25% by the delivery
25        year beginning June 1, 2025, and thereafter the 25%
26        value shall apply to each delivery year.

 

 

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1            If the requirements set forth in items (i) through
2        (iii) of this subparagraph (H) are met, the charges
3        that would otherwise be applicable to the retail
4        customers of the alternative retail electric supplier
5        under paragraph (6) of this subsection (c) for the
6        applicable delivery year shall be reduced by the ratio
7        of the quantity of renewable energy credits supplied
8        by the alternative retail electric supplier compared
9        to that supplier's target renewable energy credit
10        quantity. The supplier's target renewable energy
11        credit quantity for the delivery year beginning June
12        1, 2018 is 14.5% multiplied by the total amount of
13        metered electricity (megawatt-hours) delivered by the
14        alternative retail supplier in that delivery year,
15        provided that the 14.5% shall increase by 1.5% each
16        delivery year thereafter to 25% by the delivery year
17        beginning June 1, 2025, and thereafter the 25% value
18        shall apply to each delivery year.
19            On or before April 1 of each year, the Agency shall
20        annually publish a report on its website that
21        identifies the aggregate amount of renewable energy
22        credits supplied by alternative retail electric
23        suppliers under this subparagraph (H).
24        (I) The Agency shall design its long-term renewable
25    energy procurement plan to maximize the State's interest
26    in the health, safety, and welfare of its residents,

 

 

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1    including but not limited to minimizing sulfur dioxide,
2    nitrogen oxide, particulate matter and other pollution
3    that adversely affects public health in this State,
4    increasing fuel and resource diversity in this State,
5    enhancing the reliability and resiliency of the
6    electricity distribution system in this State, meeting
7    goals to limit carbon dioxide emissions under federal or
8    State law, and contributing to a cleaner and healthier
9    environment for the citizens of this State. In order to
10    further these legislative purposes, renewable energy
11    credits shall be eligible to be counted toward the
12    renewable energy requirements of this subsection (c) if
13    they are generated from facilities located in this State.
14    The Agency may qualify renewable energy credits from
15    facilities located in states adjacent to Illinois or
16    renewable energy credits associated with the electricity
17    generated by a utility-scale wind energy facility or
18    utility-scale photovoltaic facility and transmitted by a
19    qualifying direct current project described in subsection
20    (b-5) of Section 8-406 of the Public Utilities Act to a
21    delivery point on the electric transmission grid located
22    in this State or a state adjacent to Illinois, if the
23    generator demonstrates and the Agency determines that the
24    operation of such facility or facilities will help promote
25    the State's interest in the health, safety, and welfare of
26    its residents based on the public interest criteria

 

 

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1    described above. For the purposes of this Section,
2    renewable resources that are delivered via a high voltage
3    direct current converter station located in Illinois shall
4    be deemed generated in Illinois at the time and location
5    the energy is converted to alternating current by the high
6    voltage direct current converter station if the high
7    voltage direct current transmission line: (i) after the
8    effective date of this amendatory Act of the 102nd General
9    Assembly, was constructed with a project labor agreement;
10    (ii) is capable of transmitting electricity at 525kv;
11    (iii) has an Illinois converter station located and
12    interconnected in the region of the PJM Interconnection,
13    LLC; (iv) does not operate as a public utility; and (v) if
14    the high voltage direct current transmission line was
15    energized after June 1, 2023. To ensure that the public
16    interest criteria are applied to the procurement and given
17    full effect, the Agency's long-term procurement plan shall
18    describe in detail how each public interest factor shall
19    be considered and weighted for facilities located in
20    states adjacent to Illinois.
21        (J) In order to promote the competitive development of
22    renewable energy resources in furtherance of the State's
23    interest in the health, safety, and welfare of its
24    residents, renewable energy credits shall not be eligible
25    to be counted toward the renewable energy requirements of
26    this subsection (c) if they are sourced from a generating

 

 

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1    unit whose costs were being recovered through rates
2    regulated by this State or any other state or states on or
3    after January 1, 2017. Each contract executed to purchase
4    renewable energy credits under this subsection (c) shall
5    provide for the contract's termination if the costs of the
6    generating unit supplying the renewable energy credits
7    subsequently begin to be recovered through rates regulated
8    by this State or any other state or states; and each
9    contract shall further provide that, in that event, the
10    supplier of the credits must return 110% of all payments
11    received under the contract. Amounts returned under the
12    requirements of this subparagraph (J) shall be retained by
13    the utility and all of these amounts shall be used for the
14    procurement of additional renewable energy credits from
15    new wind or new photovoltaic resources as defined in this
16    subsection (c). The long-term plan shall provide that
17    these renewable energy credits shall be procured in the
18    next procurement event.
19        Notwithstanding the limitations of this subparagraph
20    (J), renewable energy credits sourced from generating
21    units that are constructed, purchased, owned, or leased by
22    an electric utility as part of an approved project,
23    program, or pilot under Section 1-56 of this Act shall be
24    eligible to be counted toward the renewable energy
25    requirements of this subsection (c), regardless of how the
26    costs of these units are recovered. As long as a

 

 

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1    generating unit or an identifiable portion of a generating
2    unit has not had and does not have its costs recovered
3    through rates regulated by this State or any other state,
4    HVDC renewable energy credits associated with that
5    generating unit or identifiable portion thereof shall be
6    eligible to be counted toward the renewable energy
7    requirements of this subsection (c).
8        (K) The long-term renewable resources procurement plan
9    developed by the Agency in accordance with subparagraph
10    (A) of this paragraph (1) shall include an Adjustable
11    Block program for the procurement of renewable energy
12    credits from new photovoltaic projects that are
13    distributed renewable energy generation devices or new
14    photovoltaic community renewable generation projects. The
15    Adjustable Block program shall be generally designed to
16    provide for the steady, predictable, and sustainable
17    growth of new solar photovoltaic development in Illinois.
18    To this end, the Adjustable Block program shall provide a
19    transparent annual schedule of prices and quantities to
20    enable the photovoltaic market to scale up and for
21    renewable energy credit prices to adjust at a predictable
22    rate over time. The prices set by the Adjustable Block
23    program can be reflected as a set value or as the product
24    of a formula.
25        The Adjustable Block program shall include for each
26    category of eligible projects for each delivery year: a

 

 

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1    single block of nameplate capacity, a price for renewable
2    energy credits within that block, and the terms and
3    conditions for securing a spot on a waitlist once the
4    block is fully committed or reserved. Except as outlined
5    below, the waitlist of projects in a given year will carry
6    over to apply to the subsequent year when another block is
7    opened. Only projects energized on or after June 1, 2017
8    shall be eligible for the Adjustable Block program. For
9    each category for each delivery year the Agency shall
10    determine the amount of generation capacity in each block,
11    and the purchase price for each block, provided that the
12    purchase price provided and the total amount of generation
13    in all blocks for all categories shall be sufficient to
14    meet the goals in this subsection (c). The Agency shall
15    strive to issue a single block sized to provide for
16    stability and market growth. The Agency shall establish
17    program eligibility requirements that ensure that projects
18    that enter the program are sufficiently mature to indicate
19    a demonstrable path to completion. The Agency may
20    periodically review its prior decisions establishing the
21    amount of generation capacity in each block, and the
22    purchase price for each block, and may propose, on an
23    expedited basis, changes to these previously set values,
24    including but not limited to redistributing these amounts
25    and the available funds as necessary and appropriate,
26    subject to Commission approval as part of the periodic

 

 

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1    plan revision process described in Section 16-111.5 of the
2    Public Utilities Act. The Agency may define different
3    block sizes, purchase prices, or other distinct terms and
4    conditions for projects located in different utility
5    service territories if the Agency deems it necessary to
6    meet the goals in this subsection (c).
7        The Adjustable Block program shall include the
8    following categories in at least the following amounts:
9            (i) At least 20% from distributed renewable energy
10        generation devices with a nameplate capacity of no
11        more than 25 kilowatts.
12            (ii) At least 20% from distributed renewable
13        energy generation devices with a nameplate capacity of
14        more than 25 kilowatts and no more than 5,000
15        kilowatts. The Agency may create sub-categories within
16        this category to account for the differences between
17        projects for small commercial customers, large
18        commercial customers, and public or non-profit
19        customers.
20            (iii) At least 30% from photovoltaic community
21        renewable generation projects. Capacity for this
22        category for the first 2 delivery years after the
23        effective date of this amendatory Act of the 102nd
24        General Assembly shall be allocated to waitlist
25        projects as provided in paragraph (3) of item (iv) of
26        subparagraph (G). Starting in the third delivery year

 

 

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1        after the effective date of this amendatory Act of the
2        102nd General Assembly or earlier if the Agency
3        determines there is additional capacity needed for to
4        meet previous delivery year requirements, the
5        following shall apply:
6                (1) the Agency shall select projects on a
7            first-come, first-serve basis, however the Agency
8            may suggest additional methods to prioritize
9            projects that are submitted at the same time;
10                (2) projects shall have subscriptions of 25 kW
11            or less for at least 50% of the facility's
12            nameplate capacity and the Agency shall price the
13            renewable energy credits with that as a factor;
14                (3) projects shall not be colocated with one
15            or more other community renewable generation
16            projects, as defined in the Agency's first revised
17            long-term renewable resources procurement plan
18            approved by the Commission on February 18, 2020,
19            such that the aggregate nameplate capacity exceeds
20            5,000 kilowatts; and
21                (4) projects greater than 2 MW may not apply
22            until after the approval of the Agency's revised
23            Long-Term Renewable Resources Procurement Plan
24            after the effective date of this amendatory Act of
25            the 102nd General Assembly.
26            (iv) At least 15% from distributed renewable

 

 

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1        generation devices or photovoltaic community renewable
2        generation projects installed on public school land.
3        The Agency may create subcategories within this
4        category to account for the differences between
5        project size or location. Projects located within
6        environmental justice communities or within
7        Organizational Units that fall within Tier 1 or Tier 2
8        shall be given priority. Each of the Agency's periodic
9        updates to its long-term renewable resources
10        procurement plan to incorporate the procurement
11        described in this subparagraph (iv) shall also include
12        the proposed quantities or blocks, pricing, and
13        contract terms applicable to the procurement as
14        indicated herein. In each such update and procurement,
15        the Agency shall set the renewable energy credit price
16        and establish payment terms for the renewable energy
17        credits procured pursuant to this subparagraph (iv)
18        that make it feasible and affordable for public
19        schools to install photovoltaic distributed renewable
20        energy devices on their premises, including, but not
21        limited to, those public schools subject to the
22        prioritization provisions of this subparagraph. For
23        the purposes of this item (iv):
24            "Environmental Justice Community" shall have the
25        same meaning set forth in the Agency's long-term
26        renewable resources procurement plan;

 

 

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1            "Organization Unit", "Tier 1" and "Tier 2" shall
2        have the meanings set for in Section 18-8.15 of the
3        School Code;
4            "Public schools" shall have the meaning set forth
5        in Section 1-3 of the School Code and includes public
6        institutions of higher education, as defined in the
7        Board of Higher Education Act.
8            (v) At least 5% from community-driven community
9        solar projects intended to provide more direct and
10        tangible connection and benefits to the communities
11        which they serve or in which they operate and,
12        additionally, to increase the variety of community
13        solar locations, models, and options in Illinois. As
14        part of its long-term renewable resources procurement
15        plan, the Agency shall develop selection criteria for
16        projects participating in this category. Nothing in
17        this Section shall preclude the Agency from creating a
18        selection process that maximizes community ownership
19        and community benefits in selecting projects to
20        receive renewable energy credits. Selection criteria
21        shall include:
22                (1) community ownership or community
23            wealth-building;
24                (2) additional direct and indirect community
25            benefit, beyond project participation as a
26            subscriber, including, but not limited to,

 

 

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1            economic, environmental, social, cultural, and
2            physical benefits;
3                (3) meaningful involvement in project
4            organization and development by community members
5            or nonprofit organizations or public entities
6            located in or serving the community;
7                (4) engagement in project operations and
8            management by nonprofit organizations, public
9            entities, or community members; and
10                (5) whether a project is developed in response
11            to a site-specific RFP developed by community
12            members or a nonprofit organization or public
13            entity located in or serving the community.
14            Selection criteria may also prioritize projects
15        that:
16                (1) are developed in collaboration with or to
17            provide complementary opportunities for the Clean
18            Jobs Workforce Network Program, the Illinois
19            Climate Works Preapprenticeship Program, the
20            Returning Residents Clean Jobs Training Program,
21            the Clean Energy Contractor Incubator Program, or
22            the Clean Energy Primes Contractor Accelerator
23            Program;
24                (2) increase the diversity of locations of
25            community solar projects in Illinois, including by
26            locating in urban areas and population centers;

 

 

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1                (3) are located in Equity Investment Eligible
2            Communities;
3                (4) are not greenfield projects;
4                (5) serve only local subscribers;
5                (6) have a nameplate capacity that does not
6            exceed 500 kW;
7                (7) are developed by an equity eligible
8            contractor; or
9                (8) otherwise meaningfully advance the goals
10            of providing more direct and tangible connection
11            and benefits to the communities which they serve
12            or in which they operate and increasing the
13            variety of community solar locations, models, and
14            options in Illinois.
15            For the purposes of this item (v):
16            "Community" means a social unit in which people
17        come together regularly to effect change; a social
18        unit in which participants are marked by a cooperative
19        spirit, a common purpose, or shared interests or
20        characteristics; or a space understood by its
21        residents to be delineated through geographic
22        boundaries or landmarks.
23            "Community benefit" means a range of services and
24        activities that provide affirmative, economic,
25        environmental, social, cultural, or physical value to
26        a community; or a mechanism that enables economic

 

 

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1        development, high-quality employment, and education
2        opportunities for local workers and residents, or
3        formal monitoring and oversight structures such that
4        community members may ensure that those services and
5        activities respond to local knowledge and needs.
6            "Community ownership" means an arrangement in
7        which an electric generating facility is, or over time
8        will be, in significant part, owned collectively by
9        members of the community to which an electric
10        generating facility provides benefits; members of that
11        community participate in decisions regarding the
12        governance, operation, maintenance, and upgrades of
13        and to that facility; and members of that community
14        benefit from regular use of that facility.
15            Terms and guidance within these criteria that are
16        not defined in this item (v) shall be defined by the
17        Agency, with stakeholder input, during the development
18        of the Agency's long-term renewable resources
19        procurement plan. The Agency shall develop regular
20        opportunities for projects to submit applications for
21        projects under this category, and develop selection
22        criteria that gives preference to projects that better
23        meet individual criteria as well as projects that
24        address a higher number of criteria.
25            (vi) At least 10% from distributed renewable
26        energy generation devices, which includes distributed

 

 

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1        renewable energy devices with a nameplate capacity
2        under 5,000 kilowatts or photovoltaic community
3        renewable generation projects, from applicants that
4        are equity eligible contractors. The Agency may create
5        subcategories within this category to account for the
6        differences between project size and type. The Agency
7        shall propose to increase the percentage in this item
8        (vi) over time to 40% based on factors, including, but
9        not limited to, the number of equity eligible
10        contractors and capacity used in this item (vi) in
11        previous delivery years.
12            The Agency shall propose a payment structure for
13        contracts executed pursuant to this paragraph under
14        which, upon a demonstration of qualification or need,
15        applicant firms are advanced capital disbursed after
16        contract execution but before the contracted project's
17        energization. The amount or percentage of capital
18        advanced prior to project energization shall be
19        sufficient to both cover any increase in development
20        costs resulting from prevailing wage requirements or
21        project-labor agreements, and designed to overcome
22        barriers in access to capital faced by equity eligible
23        contractors. The amount or percentage of advanced
24        capital may vary by subcategory within this category
25        and by an applicant's demonstration of need, with such
26        levels to be established through the Long-Term

 

 

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1        Renewable Resources Procurement Plan authorized under
2        subparagraph (A) of paragraph (1) of subsection (c) of
3        this Section.
4            Contracts developed featuring capital advanced
5        prior to a project's energization shall feature
6        provisions to ensure both the successful development
7        of applicant projects and the delivery of the
8        renewable energy credits for the full term of the
9        contract, including ongoing collateral requirements
10        and other provisions deemed necessary by the Agency,
11        and may include energization timelines longer than for
12        comparable project types. The percentage or amount of
13        capital advanced prior to project energization shall
14        not operate to increase the overall contract value,
15        however contracts executed under this subparagraph may
16        feature renewable energy credit prices higher than
17        those offered to similar projects participating in
18        other categories. Capital advanced prior to
19        energization shall serve to reduce the ratable
20        payments made after energization under items (ii) and
21        (iii) of subparagraph (L) or payments made for each
22        renewable energy credit delivery under item (iv) of
23        subparagraph (L).
24            (vii) The remaining capacity shall be allocated by
25        the Agency in order to respond to market demand. The
26        Agency shall allocate any discretionary capacity prior

 

 

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1        to the beginning of each delivery year.
2        To the extent there is uncontracted capacity from any
3    block in any of categories (i) through (vi) at the end of a
4    delivery year, the Agency shall redistribute that capacity
5    to one or more other categories giving priority to
6    categories with projects on a waitlist. The redistributed
7    capacity shall be added to the annual capacity in the
8    subsequent delivery year, and the price for renewable
9    energy credits shall be the price for the new delivery
10    year. Redistributed capacity shall not be considered
11    redistributed when determining whether the goals in this
12    subsection (K) have been met.
13        Notwithstanding anything to the contrary, as the
14    Agency increases the capacity in item (vi) to 40% over
15    time, the Agency may reduce the capacity of items (i)
16    through (v) proportionate to the capacity of the
17    categories of projects in item (vi), to achieve a balance
18    of project types.
19        The Adjustable Block program shall be designed to
20    ensure that renewable energy credits are procured from
21    projects in diverse locations and are not concentrated in
22    a few regional areas.
23        (L) Notwithstanding provisions for advancing capital
24    prior to project energization found in item (vi) of
25    subparagraph (K), the procurement of photovoltaic
26    renewable energy credits under items (i) through (vi) of

 

 

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

 

 

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

 

 

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1        renewable energy credit generation amount. If
2        generation of renewable energy credits during a
3        delivery year exceeds the estimated annual generation
4        amount, the excess renewable energy credits shall be
5        carried forward to future delivery years and shall not
6        expire during the delivery term. If generation of
7        renewable energy credits during a delivery year,
8        including carried forward excess renewable energy
9        credits, if any, is less than the estimated annual
10        generation amount, payments during such delivery year
11        will not exceed the quantity generated plus the
12        quantity carried forward multiplied by the contract
13        price. The electric utility shall receive all
14        renewable energy credits generated by the project
15        during the first 20 years of operation and retire all
16        renewable energy credits paid for under this item (iv)
17        and return at the end of the delivery term all
18        renewable energy credits that were not paid for.
19        Renewable energy credits generated by the project
20        thereafter shall not be transferred under the
21        renewable energy credit delivery contract with the
22        counterparty electric utility. Notwithstanding the
23        preceding, for those projects participating under item
24        (iii) of subparagraph (K), the contract price for a
25        delivery year shall be based on subscription levels as
26        measured on the higher of the first business day of the

 

 

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1        delivery year or the first business day 6 months after
2        the first business day of the delivery year.
3        Subscription of 90% of nameplate capacity or greater
4        shall be deemed to be fully subscribed for the
5        purposes of this item (iv). For projects receiving a
6        20-year delivery contract, REC prices shall be
7        adjusted downward for consistency with the incentive
8        levels previously determined to be necessary to
9        support projects under 15-year delivery contracts,
10        taking into consideration any additional new
11        requirements placed on the projects, including, but
12        not limited to, labor standards.
13            (v) Each contract shall include provisions to
14        ensure the delivery of the estimated quantity of
15        renewable energy credits and ongoing collateral
16        requirements and other provisions deemed appropriate
17        by the Agency.
18            (vi) The utility shall be the counterparty to the
19        contracts executed under this subparagraph (L) that
20        are approved by the Commission under the process
21        described in Section 16-111.5 of the Public Utilities
22        Act. No contract shall be executed for an amount that
23        is less than one renewable energy credit per year.
24            (vii) If, at any time, approved applications for
25        the Adjustable Block program exceed funds collected by
26        the electric utility or would cause the Agency to

 

 

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1        exceed the limitation described in subparagraph (E) of
2        this paragraph (1) on the amount of renewable energy
3        resources that may be procured, then the Agency may
4        consider future uncommitted funds to be reserved for
5        these contracts on a first-come, first-served basis.
6            (viii) Nothing in this Section shall require the
7        utility to advance any payment or pay any amounts that
8        exceed the actual amount of revenues anticipated to be
9        collected by the utility under paragraph (6) of this
10        subsection (c) and subsection (k) of Section 16-108 of
11        the Public Utilities Act inclusive of eligible funds
12        collected in prior years and alternative compliance
13        payments for use by the utility, and contracts
14        executed under this Section shall expressly
15        incorporate this limitation.
16            (ix) Notwithstanding other requirements of this
17        subparagraph (L), no modification shall be required to
18        Adjustable Block program contracts if they were
19        already executed prior to the establishment, approval,
20        and implementation of new contract forms as a result
21        of this amendatory Act of the 102nd General Assembly.
22            (x) Contracts may be assignable, but only to
23        entities first deemed by the Agency to have met
24        program terms and requirements applicable to direct
25        program participation. In developing contracts for the
26        delivery of renewable energy credits, the Agency shall

 

 

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1        be permitted to establish fees applicable to each
2        contract assignment.
3        (M) The Agency shall be authorized to retain one or
4    more experts or expert consulting firms to develop,
5    administer, implement, operate, and evaluate the
6    Adjustable Block program described in subparagraph (K) of
7    this paragraph (1), and the Agency shall retain the
8    consultant or consultants in the same manner, to the
9    extent practicable, as the Agency retains others to
10    administer provisions of this Act, including, but not
11    limited to, the procurement administrator. The selection
12    of experts and expert consulting firms and the procurement
13    process described in this subparagraph (M) are exempt from
14    the requirements of Section 20-10 of the Illinois
15    Procurement Code, under Section 20-10 of that Code. The
16    Agency shall strive to minimize administrative expenses in
17    the implementation of the Adjustable Block program.
18        The Program Administrator may charge application fees
19    to participating firms to cover the cost of program
20    administration. Any application fee amounts shall
21    initially be determined through the long-term renewable
22    resources procurement plan, and modifications to any
23    application fee that deviate more than 25% from the
24    Commission's approved value must be approved by the
25    Commission as a long-term plan revision under Section
26    16-111.5 of the Public Utilities Act. The Agency shall

 

 

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1    consider stakeholder feedback when making adjustments to
2    application fees and shall notify stakeholders in advance
3    of any planned changes.
4        In addition to covering the costs of program
5    administration, the Agency, in conjunction with its
6    Program Administrator, may also use the proceeds of such
7    fees charged to participating firms to support public
8    education and ongoing regional and national coordination
9    with nonprofit organizations, public bodies, and others
10    engaged in the implementation of renewable energy
11    incentive programs or similar initiatives. This work may
12    include developing papers and reports, hosting regional
13    and national conferences, and other work deemed necessary
14    by the Agency to position the State of Illinois as a
15    national leader in renewable energy incentive program
16    development and administration.
17        The Agency and its consultant or consultants shall
18    monitor block activity, share program activity with
19    stakeholders and conduct quarterly meetings to discuss
20    program activity and market conditions. If necessary, the
21    Agency may make prospective administrative adjustments to
22    the Adjustable Block program design, such as making
23    adjustments to purchase prices as necessary to achieve the
24    goals of this subsection (c). Program modifications to any
25    block price that do not deviate from the Commission's
26    approved value by more than 10% shall take effect

 

 

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1    immediately and are not subject to Commission review and
2    approval. Program modifications to any block price that
3    deviate more than 10% from the Commission's approved value
4    must be approved by the Commission as a long-term plan
5    amendment under Section 16-111.5 of the Public Utilities
6    Act. The Agency shall consider stakeholder feedback when
7    making adjustments to the Adjustable Block design and
8    shall notify stakeholders in advance of any planned
9    changes.
10        The Agency and its program administrators for both the
11    Adjustable Block program and the Illinois Solar for All
12    Program, consistent with the requirements of this
13    subsection (c) and subsection (b) of Section 1-56 of this
14    Act, shall propose the Adjustable Block program terms,
15    conditions, and requirements, including the prices to be
16    paid for renewable energy credits, where applicable, and
17    requirements applicable to participating entities and
18    project applications, through the development, review, and
19    approval of the Agency's long-term renewable resources
20    procurement plan described in this subsection (c) and
21    paragraph (5) of subsection (b) of Section 16-111.5 of the
22    Public Utilities Act. Terms, conditions, and requirements
23    for program participation shall include the following:
24            (i) The Agency shall establish a registration
25        process for entities seeking to qualify for
26        program-administered incentive funding and establish

 

 

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1        baseline qualifications for vendor approval. The
2        Agency must maintain a list of approved entities on
3        each program's website, and may revoke a vendor's
4        ability to receive program-administered incentive
5        funding status upon a determination that the vendor
6        failed to comply with contract terms, the law, or
7        other program requirements.
8            (ii) The Agency shall establish program
9        requirements and minimum contract terms to ensure
10        projects are properly installed and produce their
11        expected amounts of energy. Program requirements may
12        include on-site inspections and photo documentation of
13        projects under construction. The Agency may require
14        repairs, alterations, or additions to remedy any
15        material deficiencies discovered. Vendors who have a
16        disproportionately high number of deficient systems
17        may lose their eligibility to continue to receive
18        State-administered incentive funding through Agency
19        programs and procurements.
20            (iii) To discourage deceptive marketing or other
21        bad faith business practices, the Agency may require
22        direct program participants, including agents
23        operating on their behalf, to provide standardized
24        disclosures to a customer prior to that customer's
25        execution of a contract for the development of a
26        distributed generation system or a subscription to a

 

 

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1        community solar project.
2            (iv) The Agency shall establish one or multiple
3        Consumer Complaints Centers to accept complaints
4        regarding businesses that participate in, or otherwise
5        benefit from, State-administered incentive funding
6        through Agency-administered programs. The Agency shall
7        maintain a public database of complaints with any
8        confidential or particularly sensitive information
9        redacted from public entries.
10            (v) Through a filing in the proceeding for the
11        approval of its long-term renewable energy resources
12        procurement plan, the Agency shall provide an annual
13        written report to the Illinois Commerce Commission
14        documenting the frequency and nature of complaints and
15        any enforcement actions taken in response to those
16        complaints.
17            (vi) The Agency shall schedule regular meetings
18        with representatives of the Office of the Attorney
19        General, the Illinois Commerce Commission, consumer
20        protection groups, and other interested stakeholders
21        to share relevant information about consumer
22        protection, project compliance, and complaints
23        received.
24            (vii) To the extent that complaints received
25        implicate the jurisdiction of the Office of the
26        Attorney General, the Illinois Commerce Commission, or

 

 

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1        local, State, or federal law enforcement, the Agency
2        shall also refer complaints to those entities as
3        appropriate.
4        (N) The Agency shall establish the terms, conditions,
5    and program requirements for photovoltaic community
6    renewable generation projects with a goal to expand access
7    to a broader group of energy consumers, to ensure robust
8    participation opportunities for residential and small
9    commercial customers and those who cannot install
10    renewable energy on their own properties. Subject to
11    reasonable limitations, any plan approved by the
12    Commission shall allow subscriptions to community
13    renewable generation projects to be portable and
14    transferable. For purposes of this subparagraph (N),
15    "portable" means that subscriptions may be retained by the
16    subscriber even if the subscriber relocates or changes its
17    address within the same utility service territory; and
18    "transferable" means that a subscriber may assign or sell
19    subscriptions to another person within the same utility
20    service territory.
21        Through the development of its long-term renewable
22    resources procurement plan, the Agency may consider
23    whether community renewable generation projects utilizing
24    technologies other than photovoltaics should be supported
25    through State-administered incentive funding, and may
26    issue requests for information to gauge market demand.

 

 

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1        Electric utilities shall provide a monetary credit to
2    a subscriber's subsequent bill for service for the
3    proportional output of a community renewable generation
4    project attributable to that subscriber as specified in
5    Section 16-107.5 of the Public Utilities Act.
6        The Agency shall purchase renewable energy credits
7    from subscribed shares of photovoltaic community renewable
8    generation projects through the Adjustable Block program
9    described in subparagraph (K) of this paragraph (1) or
10    through the Illinois Solar for All Program described in
11    Section 1-56 of this Act. The electric utility shall
12    purchase any unsubscribed energy from community renewable
13    generation projects that are Qualifying Facilities ("QF")
14    under the electric utility's tariff for purchasing the
15    output from QFs under Public Utilities Regulatory Policies
16    Act of 1978.
17        The owners of and any subscribers to a community
18    renewable generation project shall not be considered
19    public utilities or alternative retail electricity
20    suppliers under the Public Utilities Act solely as a
21    result of their interest in or subscription to a community
22    renewable generation project and shall not be required to
23    become an alternative retail electric supplier by
24    participating in a community renewable generation project
25    with a public utility.
26        (O) For the delivery year beginning June 1, 2018, the

 

 

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1    long-term renewable resources procurement plan required by
2    this subsection (c) shall provide for the Agency to
3    procure contracts to continue offering the Illinois Solar
4    for All Program described in subsection (b) of Section
5    1-56 of this Act, and the contracts approved by the
6    Commission shall be executed by the utilities that are
7    subject to this subsection (c). The long-term renewable
8    resources procurement plan shall allocate up to
9    $50,000,000 per delivery year to fund the programs, and
10    the plan shall determine the amount of funding to be
11    apportioned to the programs identified in subsection (b)
12    of Section 1-56 of this Act; provided that for the
13    delivery years beginning June 1, 2021, June 1, 2022, and
14    June 1, 2023, the long-term renewable resources
15    procurement plan may average the annual budgets over a
16    3-year period to account for program ramp-up. For the
17    delivery years beginning June 1, 2021, June 1, 2024, June
18    1, 2027, and June 1, 2030 and additional $10,000,000 shall
19    be provided to the Department of Commerce and Economic
20    Opportunity to implement the workforce development
21    programs and reporting as outlined in Section 16-108.12 of
22    the Public Utilities Act. In making the determinations
23    required under this subparagraph (O), the Commission shall
24    consider the experience and performance under the programs
25    and any evaluation reports. The Commission shall also
26    provide for an independent evaluation of those programs on

 

 

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1    a periodic basis that are funded under this subparagraph
2    (O).
3        (P) All programs and procurements under this
4    subsection (c) shall be designed to encourage
5    participating projects to use a diverse and equitable
6    workforce and a diverse set of contractors, including
7    minority-owned businesses, disadvantaged businesses,
8    trade unions, graduates of any workforce training programs
9    administered under this Act, and small businesses.
10        The Agency shall develop a method to optimize
11    procurement of renewable energy credits from proposed
12    utility-scale projects that are located in communities
13    eligible to receive Energy Transition Community Grants
14    pursuant to Section 10-20 of the Energy Community
15    Reinvestment Act. If this requirement conflicts with other
16    provisions of law or the Agency determines that full
17    compliance with the requirements of this subparagraph (P)
18    would be unreasonably costly or administratively
19    impractical, the Agency is to propose alternative
20    approaches to achieve development of renewable energy
21    resources in communities eligible to receive Energy
22    Transition Community Grants pursuant to Section 10-20 of
23    the Energy Community Reinvestment Act or seek an exemption
24    from this requirement from the Commission.
25        (Q) Each facility listed in subitems (i) through (ix)
26    of item (1) of this subparagraph (Q) for which a renewable

 

 

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1    energy credit delivery contract is signed after the
2    effective date of this amendatory Act of the 102nd General
3    Assembly is subject to the following requirements through
4    the Agency's long-term renewable resources procurement
5    plan:
6            (1) Each facility shall be subject to the
7        prevailing wage requirements included in the
8        Prevailing Wage Act. The Agency shall require
9        verification that all construction performed on the
10        facility by the renewable energy credit delivery
11        contract holder, its contractors, or its
12        subcontractors relating to construction of the
13        facility is performed by construction employees
14        receiving an amount for that work equal to or greater
15        than the general prevailing rate, as that term is
16        defined in Section 3 of the Prevailing Wage Act. For
17        purposes of this item (1), "house of worship" means
18        property that is both (1) used exclusively by a
19        religious society or body of persons as a place for
20        religious exercise or religious worship and (2)
21        recognized as exempt from taxation pursuant to Section
22        15-40 of the Property Tax Code. This item (1) shall
23        apply to any the following:
24                (i) all new utility-scale wind projects;
25                (ii) all new utility-scale photovoltaic
26            projects;

 

 

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1                (iii) all new brownfield photovoltaic
2            projects;
3                (iv) all new photovoltaic community renewable
4            energy facilities that qualify for item (iii) of
5            subparagraph (K) of this paragraph (1);
6                (v) all new community driven community
7            photovoltaic projects that qualify for item (v) of
8            subparagraph (K) of this paragraph (1);
9                (vi) all new photovoltaic projects on public
10            school land that qualify for item (iv) of
11            subparagraph (K) of this paragraph (1);
12                (vii) all new photovoltaic distributed
13            renewable energy generation devices that (1)
14            qualify for item (i) of subparagraph (K) of this
15            paragraph (1); (2) are not projects that serve
16            single-family or multi-family residential
17            buildings; and (3) are not houses of worship where
18            the aggregate capacity including collocated
19            projects would not exceed 100 kilowatts;
20                (viii) all new photovoltaic distributed
21            renewable energy generation devices that (1)
22            qualify for item (ii) of subparagraph (K) of this
23            paragraph (1); (2) are not projects that serve
24            single-family or multi-family residential
25            buildings; and (3) are not houses of worship where
26            the aggregate capacity including collocated

 

 

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1            projects would not exceed 100 kilowatts;
2                (ix) all new, modernized, or retooled
3            hydropower facilities.
4            (2) Renewable energy credits procured from new
5        utility-scale wind projects, new utility-scale solar
6        projects, and new brownfield solar projects pursuant
7        to Agency procurement events occurring after the
8        effective date of this amendatory Act of the 102nd
9        General Assembly must be from facilities built by
10        general contractors that must enter into a project
11        labor agreement, as defined by this Act, prior to
12        construction. The project labor agreement shall be
13        filed with the Director in accordance with procedures
14        established by the Agency through its long-term
15        renewable resources procurement plan. Any information
16        submitted to the Agency in this item (2) shall be
17        considered commercially sensitive information. At a
18        minimum, the project labor agreement must provide the
19        names, addresses, and occupations of the owner of the
20        plant and the individuals representing the labor
21        organization employees participating in the project
22        labor agreement consistent with the Project Labor
23        Agreements Act. The agreement must also specify the
24        terms and conditions as defined by this Act.
25            (3) It is the intent of this Section to ensure that
26        economic development occurs across Illinois

 

 

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1        communities, that emerging businesses may grow, and
2        that there is improved access to the clean energy
3        economy by persons who have greater economic burdens
4        to success. The Agency shall take into consideration
5        the unique cost of compliance of this subparagraph (Q)
6        that might be borne by equity eligible contractors,
7        shall include such costs when determining the price of
8        renewable energy credits in the Adjustable Block
9        program, and shall take such costs into consideration
10        in a nondiscriminatory manner when comparing bids for
11        competitive procurements. The Agency shall consider
12        costs associated with compliance whether in the
13        development, financing, or construction of projects.
14        The Agency shall periodically review the assumptions
15        in these costs and may adjust prices, in compliance
16        with subparagraph (M) of this paragraph (1).
17        (R) In its long-term renewable resources procurement
18    plan, the Agency shall establish a self-direct renewable
19    portfolio standard compliance program for eligible
20    self-direct customers that purchase renewable energy
21    credits from utility-scale wind and solar projects through
22    long-term agreements for purchase of renewable energy
23    credits as described in this Section. Such long-term
24    agreements may include the purchase of energy or other
25    products on a physical or financial basis and may involve
26    an alternative retail electric supplier as defined in

 

 

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1    Section 16-102 of the Public Utilities Act. This program
2    shall take effect in the delivery year commencing June 1,
3    2023.
4            (1) For the purposes of this subparagraph:
5            "Eligible self-direct customer" means any retail
6        customers of an electric utility that serves 3,000,000
7        or more retail customers in the State and whose total
8        highest 30-minute demand was more than 10,000
9        kilowatts, or any retail customers of an electric
10        utility that serves less than 3,000,000 retail
11        customers but more than 500,000 retail customers in
12        the State and whose total highest 15-minute demand was
13        more than 10,000 kilowatts.
14            "Retail customer" has the meaning set forth in
15        Section 16-102 of the Public Utilities Act and
16        multiple retail customer accounts under the same
17        corporate parent may aggregate their account demands
18        to meet the 10,000 kilowatt threshold. The criteria
19        for determining whether this subparagraph is
20        applicable to a retail customer shall be based on the
21        12 consecutive billing periods prior to the start of
22        the year in which the application is filed.
23            (2) For renewable energy credits to count toward
24        the self-direct renewable portfolio standard
25        compliance program, they must:
26                (i) qualify as renewable energy credits as

 

 

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1            defined in Section 1-10 of this Act;
2                (ii) be sourced from one or more renewable
3            energy generating facilities that comply with the
4            geographic requirements as set forth in
5            subparagraph (I) of paragraph (1) of subsection
6            (c) as interpreted through the Agency's long-term
7            renewable resources procurement plan, or, where
8            applicable, the geographic requirements that
9            governed utility-scale renewable energy credits at
10            the time the eligible self-direct customer entered
11            into the applicable renewable energy credit
12            purchase agreement;
13                (iii) be procured through long-term contracts
14            with term lengths of at least 10 years either
15            directly with the renewable energy generating
16            facility or through a bundled power purchase
17            agreement, a virtual power purchase agreement, an
18            agreement between the renewable generating
19            facility, an alternative retail electric supplier,
20            and the customer, or such other structure as is
21            permissible under this subparagraph (R);
22                (iv) be equivalent in volume to at least 40%
23            of the eligible self-direct customer's usage,
24            determined annually by the eligible self-direct
25            customer's usage during the previous delivery
26            year, measured to the nearest megawatt-hour;

 

 

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1                (v) be retired by or on behalf of the large
2            energy customer;
3                (vi) be sourced from new utility-scale wind
4            projects or new utility-scale solar projects; and
5                (vii) if the contracts for renewable energy
6            credits are entered into after the effective date
7            of this amendatory Act of the 102nd General
8            Assembly, the new utility-scale wind projects or
9            new utility-scale solar projects must comply with
10            the requirements established in subparagraphs (P)
11            and (Q) of paragraph (1) of this subsection (c)
12            and subsection (c-10).
13            (3) The self-direct renewable portfolio standard
14        compliance program shall be designed to allow eligible
15        self-direct customers to procure new renewable energy
16        credits from new utility-scale wind projects or new
17        utility-scale photovoltaic projects. The Agency shall
18        annually determine the amount of utility-scale
19        renewable energy credits it will include each year
20        from the self-direct renewable portfolio standard
21        compliance program, subject to receiving qualifying
22        applications. In making this determination, the Agency
23        shall evaluate publicly available analyses and studies
24        of the potential market size for utility-scale
25        renewable energy long-term purchase agreements by
26        commercial and industrial energy customers and make

 

 

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1        that report publicly available. If demand for
2        participation in the self-direct renewable portfolio
3        standard compliance program exceeds availability, the
4        Agency shall ensure participation is evenly split
5        between commercial and industrial users to the extent
6        there is sufficient demand from both customer classes.
7        Each renewable energy credit procured pursuant to this
8        subparagraph (R) by a self-direct customer shall
9        reduce the total volume of renewable energy credits
10        the Agency is otherwise required to procure from new
11        utility-scale projects pursuant to subparagraph (C) of
12        paragraph (1) of this subsection (c) on behalf of
13        contracting utilities where the eligible self-direct
14        customer is located. The self-direct customer shall
15        file an annual compliance report with the Agency
16        pursuant to terms established by the Agency through
17        its long-term renewable resources procurement plan to
18        be eligible for participation in this program.
19        Customers must provide the Agency with their most
20        recent electricity billing statements or other
21        information deemed necessary by the Agency to
22        demonstrate they are an eligible self-direct customer.
23            (4) The Commission shall approve a reduction in
24        the volumetric charges collected pursuant to Section
25        16-108 of the Public Utilities Act for approved
26        eligible self-direct customers equivalent to the

 

 

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1        anticipated cost of renewable energy credit deliveries
2        under contracts for new utility-scale wind and new
3        utility-scale solar entered for each delivery year
4        after the large energy customer begins retiring
5        eligible new utility scale renewable energy credits
6        for self-compliance. The self-direct credit amount
7        shall be determined annually and is equal to the
8        estimated portion of the cost authorized by
9        subparagraph (E) of paragraph (1) of this subsection
10        (c) that supported the annual procurement of
11        utility-scale renewable energy credits in the prior
12        delivery year using a methodology described in the
13        long-term renewable resources procurement plan,
14        expressed on a per kilowatthour basis, and does not
15        include (i) costs associated with any contracts
16        entered into before the delivery year in which the
17        customer files the initial compliance report to be
18        eligible for participation in the self-direct program,
19        and (ii) costs associated with procuring renewable
20        energy credits through existing and future contracts
21        through the Adjustable Block Program, subsection (c-5)
22        of this Section 1-75, and the Solar for All Program.
23        The Agency shall assist the Commission in determining
24        the current and future costs. The Agency must
25        determine the self-direct credit amount for new and
26        existing eligible self-direct customers and submit

 

 

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1        this to the Commission in an annual compliance filing.
2        The Commission must approve the self-direct credit
3        amount by June 1, 2023 and June 1 of each delivery year
4        thereafter.
5            (5) Customers described in this subparagraph (R)
6        shall apply, on a form developed by the Agency, to the
7        Agency to be designated as a self-direct eligible
8        customer. Once the Agency determines that a
9        self-direct customer is eligible for participation in
10        the program, the self-direct customer will remain
11        eligible until the end of the term of the contract.
12        Thereafter, application may be made not less than 12
13        months before the filing date of the long-term
14        renewable resources procurement plan described in this
15        Act. At a minimum, such application shall contain the
16        following:
17                (i) the customer's certification that, at the
18            time of the customer's application, the customer
19            qualifies to be a self-direct eligible customer,
20            including documents demonstrating that
21            qualification;
22                (ii) the customer's certification that the
23            customer has entered into or will enter into by
24            the beginning of the applicable procurement year,
25            one or more bilateral contracts for new wind
26            projects or new photovoltaic projects, including

 

 

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1            supporting documentation;
2                (iii) certification that the contract or
3            contracts for new renewable energy resources are
4            long-term contracts with term lengths of at least
5            10 years, including supporting documentation;
6                (iv) certification of the quantities of
7            renewable energy credits that the customer will
8            purchase each year under such contract or
9            contracts, including supporting documentation;
10                (v) proof that the contract is sufficient to
11            produce renewable energy credits to be equivalent
12            in volume to at least 40% of the large energy
13            customer's usage from the previous delivery year,
14            measured to the nearest megawatt-hour; and
15                (vi) certification that the customer intends
16            to maintain the contract for the duration of the
17            length of the contract.
18            (6) If a customer receives the self-direct credit
19        but fails to properly procure and retire renewable
20        energy credits as required under this subparagraph
21        (R), the Commission, on petition from the Agency and
22        after notice and hearing, may direct such customer's
23        utility to recover the cost of the wrongfully received
24        self-direct credits plus interest through an adder to
25        charges assessed pursuant to Section 16-108 of the
26        Public Utilities Act. Self-direct customers who

 

 

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1        knowingly fail to properly procure and retire
2        renewable energy credits and do not notify the Agency
3        are ineligible for continued participation in the
4        self-direct renewable portfolio standard compliance
5        program.
6        (2) (Blank).
7        (3) (Blank).
8        (4) The electric utility shall retire all renewable
9    energy credits used to comply with the standard.
10        (5) Beginning with the 2010 delivery year and ending
11    June 1, 2017, an electric utility subject to this
12    subsection (c) shall apply the lesser of the maximum
13    alternative compliance payment rate or the most recent
14    estimated alternative compliance payment rate for its
15    service territory for the corresponding compliance period,
16    established pursuant to subsection (d) of Section 16-115D
17    of the Public Utilities Act to its retail customers that
18    take service pursuant to the electric utility's hourly
19    pricing tariff or tariffs. The electric utility shall
20    retain all amounts collected as a result of the
21    application of the alternative compliance payment rate or
22    rates to such customers, and, beginning in 2011, the
23    utility shall include in the information provided under
24    item (1) of subsection (d) of Section 16-111.5 of the
25    Public Utilities Act the amounts collected under the
26    alternative compliance payment rate or rates for the prior

 

 

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1    year ending May 31. Notwithstanding any limitation on the
2    procurement of renewable energy resources imposed by item
3    (2) of this subsection (c), the Agency shall increase its
4    spending on the purchase of renewable energy resources to
5    be procured by the electric utility for the next plan year
6    by an amount equal to the amounts collected by the utility
7    under the alternative compliance payment rate or rates in
8    the prior year ending May 31.
9        (6) The electric utility shall be entitled to recover
10    all of its costs associated with the procurement of
11    renewable energy credits under plans approved under this
12    Section and Section 16-111.5 of the Public Utilities Act.
13    These costs shall include associated reasonable expenses
14    for implementing the procurement programs, including, but
15    not limited to, the costs of administering and evaluating
16    the Adjustable Block program, through an automatic
17    adjustment clause tariff in accordance with subsection (k)
18    of Section 16-108 of the Public Utilities Act.
19        (7) Renewable energy credits procured from new
20    photovoltaic projects or new distributed renewable energy
21    generation devices under this Section after June 1, 2017
22    (the effective date of Public Act 99-906) must be procured
23    from devices installed by a qualified person in compliance
24    with the requirements of Section 16-128A of the Public
25    Utilities Act and any rules or regulations adopted
26    thereunder.

 

 

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1        In meeting the renewable energy requirements of this
2    subsection (c), to the extent feasible and consistent with
3    State and federal law, the renewable energy credit
4    procurements, Adjustable Block solar program, and
5    community renewable generation program shall provide
6    employment opportunities for all segments of the
7    population and workforce, including minority-owned and
8    female-owned business enterprises, and shall not,
9    consistent with State and federal law, discriminate based
10    on race or socioeconomic status.
11    (c-5) Procurement of renewable energy credits from new
12renewable energy facilities installed at or adjacent to the
13sites of electric generating facilities that burn or burned
14coal as their primary fuel source.
15        (1) In addition to the procurement of renewable energy
16    credits pursuant to long-term renewable resources
17    procurement plans in accordance with subsection (c) of
18    this Section and Section 16-111.5 of the Public Utilities
19    Act, the Agency shall conduct procurement events in
20    accordance with this subsection (c-5) for the procurement
21    by electric utilities that served more than 300,000 retail
22    customers in this State as of January 1, 2019 of renewable
23    energy credits from new renewable energy facilities to be
24    installed at or adjacent to the sites of electric
25    generating facilities that, as of January 1, 2016, burned
26    coal as their primary fuel source and meet the other

 

 

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1    criteria specified in this subsection (c-5). For purposes
2    of this subsection (c-5), "new renewable energy facility"
3    means a new utility-scale solar project as defined in this
4    Section 1-75. The renewable energy credits procured
5    pursuant to this subsection (c-5) may be included or
6    counted for purposes of compliance with the amounts of
7    renewable energy credits required to be procured pursuant
8    to subsection (c) of this Section to the extent that there
9    are otherwise shortfalls in compliance with such
10    requirements. The procurement of renewable energy credits
11    by electric utilities pursuant to this subsection (c-5)
12    shall be funded solely by revenues collected from the Coal
13    to Solar and Energy Storage Initiative Charge provided for
14    in this subsection (c-5) and subsection (i-5) of Section
15    16-108 of the Public Utilities Act, shall not be funded by
16    revenues collected through any of the other funding
17    mechanisms provided for in subsection (c) of this Section,
18    and shall not be subject to the limitation imposed by
19    subsection (c) on charges to retail customers for costs to
20    procure renewable energy resources pursuant to subsection
21    (c), and shall not be subject to any other requirements or
22    limitations of subsection (c).
23        (2) The Agency shall conduct 2 procurement events to
24    select owners of electric generating facilities meeting
25    the eligibility criteria specified in this subsection
26    (c-5) to enter into long-term contracts to sell renewable

 

 

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1    energy credits to electric utilities serving more than
2    300,000 retail customers in this State as of January 1,
3    2019. The first procurement event shall be conducted no
4    later than March 31, 2022, unless the Agency elects to
5    delay it, until no later than May 1, 2022, due to its
6    overall volume of work, and shall be to select owners of
7    electric generating facilities located in this State and
8    south of federal Interstate Highway 80 that meet the
9    eligibility criteria specified in this subsection (c-5).
10    The second procurement event shall be conducted no sooner
11    than September 30, 2022 and no later than October 31, 2022
12    and shall be to select owners of electric generating
13    facilities located anywhere in this State that meet the
14    eligibility criteria specified in this subsection (c-5).
15    The Agency shall establish and announce a time period,
16    which shall begin no later than 30 days prior to the
17    scheduled date for the procurement event, during which
18    applicants may submit applications to be selected as
19    suppliers of renewable energy credits pursuant to this
20    subsection (c-5). The eligibility criteria for selection
21    as a supplier of renewable energy credits pursuant to this
22    subsection (c-5) shall be as follows:
23            (A) The applicant owns an electric generating
24        facility located in this State that: (i) as of January
25        1, 2016, burned coal as its primary fuel to generate
26        electricity; and (ii) has, or had prior to retirement,

 

 

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1        an electric generating capacity of at least 150
2        megawatts. The electric generating facility can be
3        either: (i) retired as of the date of the procurement
4        event; or (ii) still operating as of the date of the
5        procurement event.
6            (B) The applicant is not (i) an electric
7        cooperative as defined in Section 3-119 of the Public
8        Utilities Act, or (ii) an entity described in
9        subsection (b)(1) of Section 3-105 of the Public
10        Utilities Act, or an association or consortium of or
11        an entity owned by entities described in (i) or (ii);
12        and the coal-fueled electric generating facility was
13        at one time owned, in whole or in part, by a public
14        utility as defined in Section 3-105 of the Public
15        Utilities Act.
16            (C) If participating in the first procurement
17        event, the applicant proposes and commits to construct
18        and operate, at the site, and if necessary for
19        sufficient space on property adjacent to the existing
20        property, at which the electric generating facility
21        identified in paragraph (A) is located: (i) a new
22        renewable energy facility of at least 20 megawatts but
23        no more than 100 megawatts of electric generating
24        capacity, and (ii) an energy storage facility having a
25        storage capacity equal to at least 2 megawatts and at
26        most 10 megawatts. If participating in the second

 

 

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1        procurement event, the applicant proposes and commits
2        to construct and operate, at the site, and if
3        necessary for sufficient space on property adjacent to
4        the existing property, at which the electric
5        generating facility identified in paragraph (A) is
6        located: (i) a new renewable energy facility of at
7        least 5 megawatts but no more than 20 megawatts of
8        electric generating capacity, and (ii) an energy
9        storage facility having a storage capacity equal to at
10        least 0.5 megawatts and at most one megawatt.
11            (D) The applicant agrees that the new renewable
12        energy facility and the energy storage facility will
13        be constructed or installed by a qualified entity or
14        entities in compliance with the requirements of
15        subsection (g) of Section 16-128A of the Public
16        Utilities Act and any rules adopted thereunder.
17            (E) The applicant agrees that personnel operating
18        the new renewable energy facility and the energy
19        storage facility will have the requisite skills,
20        knowledge, training, experience, and competence, which
21        may be demonstrated by completion or current
22        participation and ultimate completion by employees of
23        an accredited or otherwise recognized apprenticeship
24        program for the employee's particular craft, trade, or
25        skill, including through training and education
26        courses and opportunities offered by the owner to

 

 

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1        employees of the coal-fueled electric generating
2        facility or by previous employment experience
3        performing the employee's particular work skill or
4        function.
5            (F) The applicant commits that not less than the
6        prevailing wage, as determined pursuant to the
7        Prevailing Wage Act, will be paid to the applicant's
8        employees engaged in construction activities
9        associated with the new renewable energy facility and
10        the new energy storage facility and to the employees
11        of applicant's contractors engaged in construction
12        activities associated with the new renewable energy
13        facility and the new energy storage facility, and
14        that, on or before the commercial operation date of
15        the new renewable energy facility, the applicant shall
16        file a report with the Agency certifying that the
17        requirements of this subparagraph (F) have been met.
18            (G) The applicant commits that if selected, it
19        will negotiate a project labor agreement for the
20        construction of the new renewable energy facility and
21        associated energy storage facility that includes
22        provisions requiring the parties to the agreement to
23        work together to establish diversity threshold
24        requirements and to ensure best efforts to meet
25        diversity targets, improve diversity at the applicable
26        job site, create diverse apprenticeship opportunities,

 

 

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1        and create opportunities to employ former coal-fired
2        power plant workers.
3            (H) The applicant commits to enter into a contract
4        or contracts for the applicable duration to provide
5        specified numbers of renewable energy credits each
6        year from the new renewable energy facility to
7        electric utilities that served more than 300,000
8        retail customers in this State as of January 1, 2019,
9        at a price of $30 per renewable energy credit. The
10        price per renewable energy credit shall be fixed at
11        $30 for the applicable duration and the renewable
12        energy credits shall not be indexed renewable energy
13        credits as provided for in item (v) of subparagraph
14        (G) of paragraph (1) of subsection (c) of Section 1-75
15        of this Act. The applicable duration of each contract
16        shall be 20 years, unless the applicant is physically
17        interconnected to the PJM Interconnection, LLC
18        transmission grid and had a generating capacity of at
19        least 1,200 megawatts as of January 1, 2021, in which
20        case the applicable duration of the contract shall be
21        15 years.
22            (I) The applicant's application is certified by an
23        officer of the applicant and by an officer of the
24        applicant's ultimate parent company, if any.
25        (3) An applicant may submit applications to contract
26    to supply renewable energy credits from more than one new

 

 

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1    renewable energy facility to be constructed at or adjacent
2    to one or more qualifying electric generating facilities
3    owned by the applicant. The Agency may select new
4    renewable energy facilities to be located at or adjacent
5    to the sites of more than one qualifying electric
6    generation facility owned by an applicant to contract with
7    electric utilities to supply renewable energy credits from
8    such facilities.
9        (4) The Agency shall assess fees to each applicant to
10    recover the Agency's costs incurred in receiving and
11    evaluating applications, conducting the procurement event,
12    developing contracts for sale, delivery and purchase of
13    renewable energy credits, and monitoring the
14    administration of such contracts, as provided for in this
15    subsection (c-5), including fees paid to a procurement
16    administrator retained by the Agency for one or more of
17    these purposes.
18        (5) The Agency shall select the applicants and the new
19    renewable energy facilities to contract with electric
20    utilities to supply renewable energy credits in accordance
21    with this subsection (c-5). In the first procurement
22    event, the Agency shall select applicants and new
23    renewable energy facilities to supply renewable energy
24    credits, at a price of $30 per renewable energy credit,
25    aggregating to no less than 400,000 renewable energy
26    credits per year for the applicable duration, assuming

 

 

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1    sufficient qualifying applications to supply, in the
2    aggregate, at least that amount of renewable energy
3    credits per year; and not more than 580,000 renewable
4    energy credits per year for the applicable duration. In
5    the second procurement event, the Agency shall select
6    applicants and new renewable energy facilities to supply
7    renewable energy credits, at a price of $30 per renewable
8    energy credit, aggregating to no more than 625,000
9    renewable energy credits per year less the amount of
10    renewable energy credits each year contracted for as a
11    result of the first procurement event, for the applicable
12    durations. The number of renewable energy credits to be
13    procured as specified in this paragraph (5) shall not be
14    reduced based on renewable energy credits procured in the
15    self-direct renewable energy credit compliance program
16    established pursuant to subparagraph (R) of paragraph (1)
17    of subsection (c) of Section 1-75.
18        (6) The obligation to purchase renewable energy
19    credits from the applicants and their new renewable energy
20    facilities selected by the Agency shall be allocated to
21    the electric utilities based on their respective
22    percentages of kilowatthours delivered to delivery
23    services customers to the aggregate kilowatthour
24    deliveries by the electric utilities to delivery services
25    customers for the year ended December 31, 2021. In order
26    to achieve these allocation percentages between or among

 

 

HB5514- 133 -LRB103 39335 CES 69496 b

1    the electric utilities, the Agency shall require each
2    applicant that is selected in the procurement event to
3    enter into a contract with each electric utility for the
4    sale and purchase of renewable energy credits from each
5    new renewable energy facility to be constructed and
6    operated by the applicant, with the sale and purchase
7    obligations under the contracts to aggregate to the total
8    number of renewable energy credits per year to be supplied
9    by the applicant from the new renewable energy facility.
10        (7) The Agency shall submit its proposed selection of
11    applicants, new renewable energy facilities to be
12    constructed, and renewable energy credit amounts for each
13    procurement event to the Commission for approval. The
14    Commission shall, within 2 business days after receipt of
15    the Agency's proposed selections, approve the proposed
16    selections if it determines that the applicants and the
17    new renewable energy facilities to be constructed meet the
18    selection criteria set forth in this subsection (c-5) and
19    that the Agency seeks approval for contracts of applicable
20    durations aggregating to no more than the maximum amount
21    of renewable energy credits per year authorized by this
22    subsection (c-5) for the procurement event, at a price of
23    $30 per renewable energy credit.
24        (8) The Agency, in conjunction with its procurement
25    administrator if one is retained, the electric utilities,
26    and potential applicants for contracts to produce and

 

 

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1    supply renewable energy credits pursuant to this
2    subsection (c-5), shall develop a standard form contract
3    for the sale, delivery and purchase of renewable energy
4    credits pursuant to this subsection (c-5). Each contract
5    resulting from the first procurement event shall allow for
6    a commercial operation date for the new renewable energy
7    facility of either June 1, 2023 or June 1, 2024, with such
8    dates subject to adjustment as provided in this paragraph.
9    Each contract resulting from the second procurement event
10    shall provide for a commercial operation date on June 1
11    next occurring up to 48 months after execution of the
12    contract. Each contract shall provide that the owner shall
13    receive payments for renewable energy credits for the
14    applicable durations beginning with the commercial
15    operation date of the new renewable energy facility. The
16    form contract shall provide for adjustments to the
17    commercial operation and payment start dates as needed due
18    to any delays in completing the procurement and
19    contracting processes, in finalizing interconnection
20    agreements and installing interconnection facilities, and
21    in obtaining other necessary governmental permits and
22    approvals. The form contract shall be, to the maximum
23    extent possible, consistent with standard electric
24    industry contracts for sale, delivery, and purchase of
25    renewable energy credits while taking into account the
26    specific requirements of this subsection (c-5). The form

 

 

HB5514- 135 -LRB103 39335 CES 69496 b

1    contract shall provide for over-delivery and
2    under-delivery of renewable energy credits within
3    reasonable ranges during each 12-month period and penalty,
4    default, and enforcement provisions for failure of the
5    selling party to deliver renewable energy credits as
6    specified in the contract and to comply with the
7    requirements of this subsection (c-5). The standard form
8    contract shall specify that all renewable energy credits
9    delivered to the electric utility pursuant to the contract
10    shall be retired. The Agency shall make the proposed
11    contracts available for a reasonable period for comment by
12    potential applicants, and shall publish the final form
13    contract at least 30 days before the date of the first
14    procurement event.
15        (9) Coal to Solar and Energy Storage Initiative
16    Charge.
17            (A) By no later than July 1, 2022, each electric
18        utility that served more than 300,000 retail customers
19        in this State as of January 1, 2019 shall file a tariff
20        with the Commission for the billing and collection of
21        a Coal to Solar and Energy Storage Initiative Charge
22        in accordance with subsection (i-5) of Section 16-108
23        of the Public Utilities Act, with such tariff to be
24        effective, following review and approval or
25        modification by the Commission, beginning January 1,
26        2023. The tariff shall provide for the calculation and

 

 

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1        setting of the electric utility's Coal to Solar and
2        Energy Storage Initiative Charge to collect revenues
3        estimated to be sufficient, in the aggregate, (i) to
4        enable the electric utility to pay for the renewable
5        energy credits it has contracted to purchase in the
6        delivery year beginning June 1, 2023 and each delivery
7        year thereafter from new renewable energy facilities
8        located at the sites of qualifying electric generating
9        facilities, and (ii) to fund the grant payments to be
10        made in each delivery year by the Department of
11        Commerce and Economic Opportunity, or any successor
12        department or agency, which shall be referred to in
13        this subsection (c-5) as the Department, pursuant to
14        paragraph (10) of this subsection (c-5). The electric
15        utility's tariff shall provide for the billing and
16        collection of the Coal to Solar and Energy Storage
17        Initiative Charge on each kilowatthour of electricity
18        delivered to its delivery services customers within
19        its service territory and shall provide for an annual
20        reconciliation of revenues collected with actual
21        costs, in accordance with subsection (i-5) of Section
22        16-108 of the Public Utilities Act.
23            (B) Each electric utility shall remit on a monthly
24        basis to the State Treasurer, for deposit in the Coal
25        to Solar and Energy Storage Initiative Fund provided
26        for in this subsection (c-5), the electric utility's

 

 

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1        collections of the Coal to Solar and Energy Storage
2        Initiative Charge in the amount estimated to be needed
3        by the Department for grant payments pursuant to grant
4        contracts entered into by the Department pursuant to
5        paragraph (10) of this subsection (c-5).
6        (10) Coal to Solar and Energy Storage Initiative Fund.
7            (A) The Coal to Solar and Energy Storage
8        Initiative Fund is established as a special fund in
9        the State treasury. The Coal to Solar and Energy
10        Storage Initiative Fund is authorized to receive, by
11        statutory deposit, that portion specified in item (B)
12        of paragraph (9) of this subsection (c-5) of moneys
13        collected by electric utilities through imposition of
14        the Coal to Solar and Energy Storage Initiative Charge
15        required by this subsection (c-5). The Coal to Solar
16        and Energy Storage Initiative Fund shall be
17        administered by the Department to provide grants to
18        support the installation and operation of energy
19        storage facilities at the sites of qualifying electric
20        generating facilities meeting the criteria specified
21        in this paragraph (10).
22            (B) The Coal to Solar and Energy Storage
23        Initiative Fund shall not be subject to sweeps,
24        administrative charges, or chargebacks, including, but
25        not limited to, those authorized under Section 8h of
26        the State Finance Act, that would in any way result in

 

 

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1        the transfer of those funds from the Coal to Solar and
2        Energy Storage Initiative Fund to any other fund of
3        this State or in having any such funds utilized for any
4        purpose other than the express purposes set forth in
5        this paragraph (10).
6            (C) The Department shall utilize up to
7        $280,500,000 in the Coal to Solar and Energy Storage
8        Initiative Fund for grants, assuming sufficient
9        qualifying applicants, to support installation of
10        energy storage facilities at the sites of up to 3
11        qualifying electric generating facilities located in
12        the Midcontinent Independent System Operator, Inc.,
13        region in Illinois and the sites of up to 2 qualifying
14        electric generating facilities located in the PJM
15        Interconnection, LLC region in Illinois that meet the
16        criteria set forth in this subparagraph (C). The
17        criteria for receipt of a grant pursuant to this
18        subparagraph (C) are as follows:
19                (1) the electric generating facility at the
20            site has, or had prior to retirement, an electric
21            generating capacity of at least 150 megawatts;
22                (2) the electric generating facility burns (or
23            burned prior to retirement) coal as its primary
24            source of fuel;
25                (3) if the electric generating facility is
26            retired, it was retired subsequent to January 1,

 

 

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1            2016;
2                (4) the owner of the electric generating
3            facility has not been selected by the Agency
4            pursuant to this subsection (c-5) of this Section
5            to enter into a contract to sell renewable energy
6            credits to one or more electric utilities from a
7            new renewable energy facility located or to be
8            located at or adjacent to the site at which the
9            electric generating facility is located;
10                (5) the electric generating facility located
11            at the site was at one time owned, in whole or in
12            part, by a public utility as defined in Section
13            3-105 of the Public Utilities Act;
14                (6) the electric generating facility at the
15            site is not owned by (i) an electric cooperative
16            as defined in Section 3-119 of the Public
17            Utilities Act, or (ii) an entity described in
18            subsection (b)(1) of Section 3-105 of the Public
19            Utilities Act, or an association or consortium of
20            or an entity owned by entities described in items
21            (i) or (ii);
22                (7) the proposed energy storage facility at
23            the site will have energy storage capacity of at
24            least 37 megawatts;
25                (8) the owner commits to place the energy
26            storage facility into commercial operation on

 

 

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1            either June 1, 2023, June 1, 2024, or June 1, 2025,
2            with such date subject to adjustment as needed due
3            to any delays in completing the grant contracting
4            process, in finalizing interconnection agreements
5            and in installing interconnection facilities, and
6            in obtaining necessary governmental permits and
7            approvals;
8                (9) the owner agrees that the new energy
9            storage facility will be constructed or installed
10            by a qualified entity or entities consistent with
11            the requirements of subsection (g) of Section
12            16-128A of the Public Utilities Act and any rules
13            adopted under that Section;
14                (10) the owner agrees that personnel operating
15            the energy storage facility will have the
16            requisite skills, knowledge, training, experience,
17            and competence, which may be demonstrated by
18            completion or current participation and ultimate
19            completion by employees of an accredited or
20            otherwise recognized apprenticeship program for
21            the employee's particular craft, trade, or skill,
22            including through training and education courses
23            and opportunities offered by the owner to
24            employees of the coal-fueled electric generating
25            facility or by previous employment experience
26            performing the employee's particular work skill or

 

 

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1            function;
2                (11) the owner commits that not less than the
3            prevailing wage, as determined pursuant to the
4            Prevailing Wage Act, will be paid to the owner's
5            employees engaged in construction activities
6            associated with the new energy storage facility
7            and to the employees of the owner's contractors
8            engaged in construction activities associated with
9            the new energy storage facility, and that, on or
10            before the commercial operation date of the new
11            energy storage facility, the owner shall file a
12            report with the Department certifying that the
13            requirements of this subparagraph (11) have been
14            met; and
15                (12) the owner commits that if selected to
16            receive a grant, it will negotiate a project labor
17            agreement for the construction of the new energy
18            storage facility that includes provisions
19            requiring the parties to the agreement to work
20            together to establish diversity threshold
21            requirements and to ensure best efforts to meet
22            diversity targets, improve diversity at the
23            applicable job site, create diverse apprenticeship
24            opportunities, and create opportunities to employ
25            former coal-fired power plant workers.
26            The Department shall accept applications for this

 

 

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1        grant program until March 31, 2022 and shall announce
2        the award of grants no later than June 1, 2022. The
3        Department shall make the grant payments to a
4        recipient in equal annual amounts for 10 years
5        following the date the energy storage facility is
6        placed into commercial operation. The annual grant
7        payments to a qualifying energy storage facility shall
8        be $110,000 per megawatt of energy storage capacity,
9        with total annual grant payments pursuant to this
10        subparagraph (C) for qualifying energy storage
11        facilities not to exceed $28,050,000 in any year.
12            (D) Grants of funding for energy storage
13        facilities pursuant to subparagraph (C) of this
14        paragraph (10), from the Coal to Solar and Energy
15        Storage Initiative Fund, shall be memorialized in
16        grant contracts between the Department and the
17        recipient. The grant contracts shall specify the date
18        or dates in each year on which the annual grant
19        payments shall be paid.
20            (E) All disbursements from the Coal to Solar and
21        Energy Storage Initiative Fund shall be made only upon
22        warrants of the Comptroller drawn upon the Treasurer
23        as custodian of the Fund upon vouchers signed by the
24        Director of the Department or by the person or persons
25        designated by the Director of the Department for that
26        purpose. The Comptroller is authorized to draw the

 

 

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1        warrants upon vouchers so signed. The Treasurer shall
2        accept all written warrants so signed and shall be
3        released from liability for all payments made on those
4        warrants.
5        (11) Diversity, equity, and inclusion plans.
6            (A) Each applicant selected in a procurement event
7        to contract to supply renewable energy credits in
8        accordance with this subsection (c-5) and each owner
9        selected by the Department to receive a grant or
10        grants to support the construction and operation of a
11        new energy storage facility or facilities in
12        accordance with this subsection (c-5) shall, within 60
13        days following the Commission's approval of the
14        applicant to contract to supply renewable energy
15        credits or within 60 days following execution of a
16        grant contract with the Department, as applicable,
17        submit to the Commission a diversity, equity, and
18        inclusion plan setting forth the applicant's or
19        owner's numeric goals for the diversity composition of
20        its supplier entities for the new renewable energy
21        facility or new energy storage facility, as
22        applicable, which shall be referred to for purposes of
23        this paragraph (11) as the project, and the
24        applicant's or owner's action plan and schedule for
25        achieving those goals.
26            (B) For purposes of this paragraph (11), diversity

 

 

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1        composition shall be based on the percentage, which
2        shall be a minimum of 25%, of eligible expenditures
3        for contract awards for materials and services (which
4        shall be defined in the plan) to business enterprises
5        owned by minority persons, women, or persons with
6        disabilities as defined in Section 2 of the Business
7        Enterprise for Minorities, Women, and Persons with
8        Disabilities Act, to LGBTQ business enterprises, to
9        veteran-owned business enterprises, and to business
10        enterprises located in environmental justice
11        communities. The diversity composition goals of the
12        plan may include eligible expenditures in areas for
13        vendor or supplier opportunities in addition to
14        development and construction of the project, and may
15        exclude from eligible expenditures materials and
16        services with limited market availability, limited
17        production and availability from suppliers in the
18        United States, such as solar panels and storage
19        batteries, and material and services that are subject
20        to critical energy infrastructure or cybersecurity
21        requirements or restrictions. The plan may provide
22        that the diversity composition goals may be met
23        through Tier 1 Direct or Tier 2 subcontracting
24        expenditures or a combination thereof for the project.
25            (C) The plan shall provide for, but not be limited
26        to: (i) internal initiatives, including multi-tier

 

 

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1        initiatives, by the applicant or owner, or by its
2        engineering, procurement and construction contractor
3        if one is used for the project, which for purposes of
4        this paragraph (11) shall be referred to as the EPC
5        contractor, to enable diverse businesses to be
6        considered fairly for selection to provide materials
7        and services; (ii) requirements for the applicant or
8        owner or its EPC contractor to proactively solicit and
9        utilize diverse businesses to provide materials and
10        services; and (iii) requirements for the applicant or
11        owner or its EPC contractor to hire a diverse
12        workforce for the project. The plan shall include a
13        description of the applicant's or owner's diversity
14        recruiting efforts both for the project and for other
15        areas of the applicant's or owner's business
16        operations. The plan shall provide for the imposition
17        of financial penalties on the applicant's or owner's
18        EPC contractor for failure to exercise best efforts to
19        comply with and execute the EPC contractor's diversity
20        obligations under the plan. The plan may provide for
21        the applicant or owner to set aside a portion of the
22        work on the project to serve as an incubation program
23        for qualified businesses, as specified in the plan,
24        owned by minority persons, women, persons with
25        disabilities, LGBTQ persons, and veterans, and
26        businesses located in environmental justice

 

 

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1        communities, seeking to enter the renewable energy
2        industry.
3            (D) The applicant or owner may submit a revised or
4        updated plan to the Commission from time to time as
5        circumstances warrant. The applicant or owner shall
6        file annual reports with the Commission detailing the
7        applicant's or owner's progress in implementing its
8        plan and achieving its goals and any modifications the
9        applicant or owner has made to its plan to better
10        achieve its diversity, equity and inclusion goals. The
11        applicant or owner shall file a final report on the
12        fifth June 1 following the commercial operation date
13        of the new renewable energy resource or new energy
14        storage facility, but the applicant or owner shall
15        thereafter continue to be subject to applicable
16        reporting requirements of Section 5-117 of the Public
17        Utilities Act.
18    (c-10) Equity accountability system. It is the purpose of
19this subsection (c-10) to create an equity accountability
20system, which includes the minimum equity standards for all
21renewable energy procurements, the equity category of the
22Adjustable Block Program, and the equity prioritization for
23noncompetitive procurements, that is successful in advancing
24priority access to the clean energy economy for businesses and
25workers from communities that have been excluded from economic
26opportunities in the energy sector, have been subject to

 

 

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1disproportionate levels of pollution, and have
2disproportionately experienced negative public health
3outcomes. Further, it is the purpose of this subsection to
4ensure that this equity accountability system is successful in
5advancing equity across Illinois by providing access to the
6clean energy economy for businesses and workers from
7communities that have been historically excluded from economic
8opportunities in the energy sector, have been subject to
9disproportionate levels of pollution, and have
10disproportionately experienced negative public health
11outcomes.
12        (1) Minimum equity standards. The Agency shall create
13    programs with the purpose of increasing access to and
14    development of equity eligible contractors, who are prime
15    contractors and subcontractors, across all of the programs
16    it manages. All applications for renewable energy credit
17    procurements shall comply with specific minimum equity
18    commitments. Starting in the delivery year immediately
19    following the next long-term renewable resources
20    procurement plan, at least 10% of the project workforce
21    for each entity participating in a procurement program
22    outlined in this subsection (c-10) must be done by equity
23    eligible persons or equity eligible contractors. The
24    Agency shall increase the minimum percentage each delivery
25    year thereafter by increments that ensure a statewide
26    average of 30% of the project workforce for each entity

 

 

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1    participating in a procurement program is done by equity
2    eligible persons or equity eligible contractors by 2030.
3    The Agency shall propose a schedule of percentage
4    increases to the minimum equity standards in its draft
5    revised renewable energy resources procurement plan
6    submitted to the Commission for approval pursuant to
7    paragraph (5) of subsection (b) of Section 16-111.5 of the
8    Public Utilities Act. In determining these annual
9    increases, the Agency shall have the discretion to
10    establish different minimum equity standards for different
11    types of procurements and different regions of the State
12    if the Agency finds that doing so will further the
13    purposes of this subsection (c-10). The proposed schedule
14    of annual increases shall be revisited and updated on an
15    annual basis. Revisions shall be developed with
16    stakeholder input, including from equity eligible persons,
17    equity eligible contractors, clean energy industry
18    representatives, and community-based organizations that
19    work with such persons and contractors.
20            (A) At the start of each delivery year, the Agency
21        shall require a compliance plan from each entity
22        participating in a procurement program of subsection
23        (c) of this Section that demonstrates how they will
24        achieve compliance with the minimum equity standard
25        percentage for work completed in that delivery year.
26        If an entity applies for its approved vendor or

 

 

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1        designee status between delivery years, the Agency
2        shall require a compliance plan at the time of
3        application.
4            (B) Halfway through each delivery year, the Agency
5        shall require each entity participating in a
6        procurement program to confirm that it will achieve
7        compliance in that delivery year, when applicable. The
8        Agency may offer corrective action plans to entities
9        that are not on track to achieve compliance.
10            (C) At the end of each delivery year, each entity
11        participating and completing work in that delivery
12        year in a procurement program of subsection (c) shall
13        submit a report to the Agency that demonstrates how it
14        achieved compliance with the minimum equity standards
15        percentage for that delivery year.
16            (D) The Agency shall prohibit participation in
17        procurement programs by an approved vendor or
18        designee, as applicable, or entities with which an
19        approved vendor or designee, as applicable, shares a
20        common parent company if an approved vendor or
21        designee, as applicable, failed to meet the minimum
22        equity standards for the prior delivery year. Waivers
23        approved for lack of equity eligible persons or equity
24        eligible contractors in a geographic area of a project
25        shall not count against the approved vendor or
26        designee. The Agency shall offer a corrective action

 

 

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1        plan for any such entities to assist them in obtaining
2        compliance and shall allow continued access to
3        procurement programs upon an approved vendor or
4        designee demonstrating compliance.
5            (E) The Agency shall pursue efficiencies achieved
6        by combining with other approved vendor or designee
7        reporting.
8        (2) Equity accountability system within the Adjustable
9    Block program. The equity category described in item (vi)
10    of subparagraph (K) of subsection (c) is only available to
11    applicants that are equity eligible contractors.
12        (3) Equity accountability system within competitive
13    procurements. Through its long-term renewable resources
14    procurement plan, the Agency shall develop requirements
15    for ensuring that competitive procurement processes,
16    including utility-scale solar, utility-scale wind, and
17    brownfield site photovoltaic projects, advance the equity
18    goals of this subsection (c-10). Subject to Commission
19    approval, the Agency shall develop bid application
20    requirements and a bid evaluation methodology for ensuring
21    that utilization of equity eligible contractors, whether
22    as bidders or as participants on project development, is
23    optimized, including requiring that winning or successful
24    applicants for utility-scale projects are or will partner
25    with equity eligible contractors and giving preference to
26    bids through which a higher portion of contract value

 

 

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1    flows to equity eligible contractors. To the extent
2    practicable, entities participating in competitive
3    procurements shall also be required to meet all the equity
4    accountability requirements for approved vendors and their
5    designees under this subsection (c-10). In developing
6    these requirements, the Agency shall also consider whether
7    equity goals can be further advanced through additional
8    measures.
9        (4) In the first revision to the long-term renewable
10    energy resources procurement plan and each revision
11    thereafter, the Agency shall include the following:
12            (A) The current status and number of equity
13        eligible contractors listed in the Energy Workforce
14        Equity Database designed in subsection (c-25),
15        including the number of equity eligible contractors
16        with current certifications as issued by the Agency.
17            (B) A mechanism for measuring, tracking, and
18        reporting project workforce at the approved vendor or
19        designee level, as applicable, which shall include a
20        measurement methodology and records to be made
21        available for audit by the Agency or the Program
22        Administrator.
23            (C) A program for approved vendors, designees,
24        eligible persons, and equity eligible contractors to
25        receive trainings, guidance, and other support from
26        the Agency or its designee regarding the equity

 

 

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1        category outlined in item (vi) of subparagraph (K) of
2        paragraph (1) of subsection (c) and in meeting the
3        minimum equity standards of this subsection (c-10).
4            (D) A process for certifying equity eligible
5        contractors and equity eligible persons. The
6        certification process shall coordinate with the Energy
7        Workforce Equity Database set forth in subsection
8        (c-25).
9            (E) An application for waiver of the minimum
10        equity standards of this subsection, which the Agency
11        shall have the discretion to grant in rare
12        circumstances. The Agency may grant such a waiver
13        where the applicant provides evidence of significant
14        efforts toward meeting the minimum equity commitment,
15        including: use of the Energy Workforce Equity
16        Database; efforts to hire or contract with entities
17        that hire eligible persons; and efforts to establish
18        contracting relationships with eligible contractors.
19        The Agency shall support applicants in understanding
20        the Energy Workforce Equity Database and other
21        resources for pursuing compliance of the minimum
22        equity standards. Waivers shall be project-specific,
23        unless the Agency deems it necessary to grant a waiver
24        across a portfolio of projects, and in effect for no
25        longer than one year. Any waiver extension or
26        subsequent waiver request from an applicant shall be

 

 

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1        subject to the requirements of this Section and shall
2        specify efforts made to reach compliance. When
3        considering whether to grant a waiver, and to what
4        extent, the Agency shall consider the degree to which
5        similarly situated applicants have been able to meet
6        these minimum equity commitments. For repeated waiver
7        requests for specific lack of eligible persons or
8        eligible contractors available, the Agency shall make
9        recommendations to target recruitment to add such
10        eligible persons or eligible contractors to the
11        database.
12        (5) The Agency shall collect information about work on
13    projects or portfolios of projects subject to these
14    minimum equity standards to ensure compliance with this
15    subsection (c-10). Reporting in furtherance of this
16    requirement may be combined with other annual reporting
17    requirements. Such reporting shall include proof of
18    certification of each equity eligible contractor or equity
19    eligible person during the applicable time period.
20        (6) The Agency shall keep confidential all information
21    and communication that provides private or personal
22    information.
23        (7) Modifications to the equity accountability system.
24    As part of the update of the long-term renewable resources
25    procurement plan to be initiated in 2023, or sooner if the
26    Agency deems necessary, the Agency shall determine the

 

 

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1    extent to which the equity accountability system described
2    in this subsection (c-10) has advanced the goals of this
3    amendatory Act of the 102nd General Assembly, including
4    through the inclusion of equity eligible persons and
5    equity eligible contractors in renewable energy credit
6    projects. If the Agency finds that the equity
7    accountability system has failed to meet those goals to
8    its fullest potential, the Agency may revise the following
9    criteria for future Agency procurements: (A) the
10    percentage of project workforce, or other appropriate
11    workforce measure, certified as equity eligible persons or
12    equity eligible contractors; (B) definitions for equity
13    investment eligible persons and equity investment eligible
14    community; and (C) such other modifications necessary to
15    advance the goals of this amendatory Act of the 102nd
16    General Assembly effectively. Such revised criteria may
17    also establish distinct equity accountability systems for
18    different types of procurements or different regions of
19    the State if the Agency finds that doing so will further
20    the purposes of such programs. Revisions shall be
21    developed with stakeholder input, including from equity
22    eligible persons, equity eligible contractors, and
23    community-based organizations that work with such persons
24    and contractors.
25    (c-15) Racial discrimination elimination powers and
26process.

 

 

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1        (1) Purpose. It is the purpose of this subsection to
2    empower the Agency and other State actors to remedy racial
3    discrimination in Illinois' clean energy economy as
4    effectively and expediently as possible, including through
5    the use of race-conscious remedies, such as race-conscious
6    contracting and hiring goals, as consistent with State and
7    federal law.
8        (2) Racial disparity and discrimination review
9    process.
10            (A) Within one year after awarding contracts using
11        the equity actions processes established in this
12        Section, the Agency shall publish a report evaluating
13        the effectiveness of the equity actions point criteria
14        of this Section in increasing participation of equity
15        eligible persons and equity eligible contractors. The
16        report shall disaggregate participating workers and
17        contractors by race and ethnicity. The report shall be
18        forwarded to the Governor, the General Assembly, and
19        the Illinois Commerce Commission and be made available
20        to the public.
21            (B) As soon as is practicable thereafter, the
22        Agency, in consultation with the Department of
23        Commerce and Economic Opportunity, Department of
24        Labor, and other agencies that may be relevant, shall
25        commission and publish a disparity and availability
26        study that measures the presence and impact of

 

 

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1        discrimination on minority businesses and workers in
2        Illinois' clean energy economy. The Agency may hire
3        consultants and experts to conduct the disparity and
4        availability study, with the retention of those
5        consultants and experts exempt from the requirements
6        of Section 20-10 of the Illinois Procurement Code. The
7        Illinois Power Agency shall forward a copy of its
8        findings and recommendations to the Governor, the
9        General Assembly, and the Illinois Commerce
10        Commission. If the disparity and availability study
11        establishes a strong basis in evidence that there is
12        discrimination in Illinois' clean energy economy, the
13        Agency, Department of Commerce and Economic
14        Opportunity, Department of Labor, Department of
15        Corrections, and other appropriate agencies shall take
16        appropriate remedial actions, including race-conscious
17        remedial actions as consistent with State and federal
18        law, to effectively remedy this discrimination. Such
19        remedies may include modification of the equity
20        accountability system as described in subsection
21        (c-10).
22    (c-20) Program data collection.
23        (1) Purpose. Data collection, data analysis, and
24    reporting are critical to ensure that the benefits of the
25    clean energy economy provided to Illinois residents and
26    businesses are equitably distributed across the State. The

 

 

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1    Agency shall collect data from program applicants in order
2    to track and improve equitable distribution of benefits
3    across Illinois communities for all procurements the
4    Agency conducts. The Agency shall use this data to, among
5    other things, measure any potential impact of racial
6    discrimination on the distribution of benefits and provide
7    information necessary to correct any discrimination
8    through methods consistent with State and federal law.
9        (2) Agency collection of program data. The Agency
10    shall collect demographic and geographic data for each
11    entity awarded contracts under any Agency-administered
12    program.
13        (3) Required information to be collected. The Agency
14    shall collect the following information from applicants
15    and program participants where applicable:
16            (A) demographic information, including racial or
17        ethnic identity for real persons employed, contracted,
18        or subcontracted through the program and owners of
19        businesses or entities that apply to receive renewable
20        energy credits from the Agency;
21            (B) geographic location of the residency of real
22        persons employed, contracted, or subcontracted through
23        the program and geographic location of the
24        headquarters of the business or entity that applies to
25        receive renewable energy credits from the Agency; and
26            (C) any other information the Agency determines is

 

 

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1        necessary for the purpose of achieving the purpose of
2        this subsection.
3        (4) Publication of collected information. The Agency
4    shall publish, at least annually, information on the
5    demographics of program participants on an aggregate
6    basis.
7        (5) Nothing in this subsection shall be interpreted to
8    limit the authority of the Agency, or other agency or
9    department of the State, to require or collect demographic
10    information from applicants of other State programs.
11    (c-25) Energy Workforce Equity Database.
12        (1) The Agency, in consultation with the Department of
13    Commerce and Economic Opportunity, shall create an Energy
14    Workforce Equity Database, and may contract with a third
15    party to do so ("database program administrator"). If the
16    Department decides to contract with a third party, that
17    third party shall be exempt from the requirements of
18    Section 20-10 of the Illinois Procurement Code. The Energy
19    Workforce Equity Database shall be a searchable database
20    of suppliers, vendors, and subcontractors for clean energy
21    industries that is:
22            (A) publicly accessible;
23            (B) easy for people to find and use;
24            (C) organized by company specialty or field;
25            (D) region-specific; and
26            (E) populated with information including, but not

 

 

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1        limited to, contacts for suppliers, vendors, or
2        subcontractors who are minority and women-owned
3        business enterprise certified or who participate or
4        have participated in any of the programs described in
5        this Act.
6        (2) The Agency shall create an easily accessible,
7    public facing online tool using the database information
8    that includes, at a minimum, the following:
9            (A) a map of environmental justice and equity
10        investment eligible communities;
11            (B) job postings and recruiting opportunities;
12            (C) a means by which recruiting clean energy
13        companies can find and interact with current or former
14        participants of clean energy workforce training
15        programs;
16            (D) information on workforce training service
17        providers and training opportunities available to
18        prospective workers;
19            (E) renewable energy company diversity reporting;
20            (F) a list of equity eligible contractors with
21        their contact information, types of work performed,
22        and locations worked in;
23            (G) reporting on outcomes of the programs
24        described in the workforce programs of the Energy
25        Transition Act, including information such as, but not
26        limited to, retention rate, graduation rate, and

 

 

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1        placement rates of trainees; and
2            (H) information about the Jobs and Environmental
3        Justice Grant Program, the Clean Energy Jobs and
4        Justice Fund, and other sources of capital.
5        (3) The Agency shall ensure the database is regularly
6    updated to ensure information is current and shall
7    coordinate with the Department of Commerce and Economic
8    Opportunity to ensure that it includes information on
9    individuals and entities that are or have participated in
10    the Clean Jobs Workforce Network Program, Clean Energy
11    Contractor Incubator Program, Returning Residents Clean
12    Jobs Training Program, or Clean Energy Primes Contractor
13    Accelerator Program.
14    (c-30) Enforcement of minimum equity standards. All
15entities seeking renewable energy credits must submit an
16annual report to demonstrate compliance with each of the
17equity commitments required under subsection (c-10). If the
18Agency concludes the entity has not met or maintained its
19minimum equity standards required under the applicable
20subparagraphs under subsection (c-10), the Agency shall deny
21the entity's ability to participate in procurement programs in
22subsection (c), including by withholding approved vendor or
23designee status. The Agency may require the entity to enter
24into a corrective action plan. An entity that is not
25recertified for failing to meet required equity actions in
26subparagraph (c-10) may reapply once they have a corrective

 

 

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1action plan and achieve compliance with the minimum equity
2standards.
3    (d) Clean coal portfolio standard.
4        (1) The procurement plans shall include electricity
5    generated using clean coal. Each utility shall enter into
6    one or more sourcing agreements with the initial clean
7    coal facility, as provided in paragraph (3) of this
8    subsection (d), covering electricity generated by the
9    initial clean coal facility representing at least 5% of
10    each utility's total supply to serve the load of eligible
11    retail customers in 2015 and each year thereafter, as
12    described in paragraph (3) of this subsection (d), subject
13    to the limits specified in paragraph (2) of this
14    subsection (d). It is the goal of the State that by January
15    1, 2025, 25% of the electricity used in the State shall be
16    generated by cost-effective clean coal facilities. For
17    purposes of this subsection (d), "cost-effective" means
18    that the expenditures pursuant to such sourcing agreements
19    do not cause the limit stated in paragraph (2) of this
20    subsection (d) to be exceeded and do not exceed cost-based
21    benchmarks, which shall be developed to assess all
22    expenditures pursuant to such sourcing agreements covering
23    electricity generated by clean coal facilities, other than
24    the initial clean coal facility, by the procurement
25    administrator, in consultation with the Commission staff,
26    Agency staff, and the procurement monitor and shall be

 

 

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1    subject to Commission review and approval.
2        A utility party to a sourcing agreement shall
3    immediately retire any emission credits that it receives
4    in connection with the electricity covered by such
5    agreement.
6        Utilities shall maintain adequate records documenting
7    the purchases under the sourcing agreement to comply with
8    this subsection (d) and shall file an accounting with the
9    load forecast that must be filed with the Agency by July 15
10    of each year, in accordance with subsection (d) of Section
11    16-111.5 of the Public Utilities Act.
12        A utility shall be deemed to have complied with the
13    clean coal portfolio standard specified in this subsection
14    (d) if the utility enters into a sourcing agreement as
15    required by this subsection (d).
16        (2) For purposes of this subsection (d), the required
17    execution of sourcing agreements with the initial clean
18    coal facility for a particular year shall be measured as a
19    percentage of the actual amount of electricity
20    (megawatt-hours) supplied by the electric utility to
21    eligible retail customers in the planning year ending
22    immediately prior to the agreement's execution. For
23    purposes of this subsection (d), the amount paid per
24    kilowatthour means the total amount paid for electric
25    service expressed on a per kilowatthour basis. For
26    purposes of this subsection (d), the total amount paid for

 

 

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1    electric service includes without limitation amounts paid
2    for supply, transmission, distribution, surcharges and
3    add-on taxes.
4        Notwithstanding the requirements of this subsection
5    (d), the total amount paid under sourcing agreements with
6    clean coal facilities pursuant to the procurement plan for
7    any given year shall be reduced by an amount necessary to
8    limit the annual estimated average net increase due to the
9    costs of these resources included in the amounts paid by
10    eligible retail customers in connection with electric
11    service to:
12            (A) in 2010, no more than 0.5% of the amount paid
13        per kilowatthour by those customers during the year
14        ending May 31, 2009;
15            (B) in 2011, the greater of an additional 0.5% of
16        the amount paid per kilowatthour by those customers
17        during the year ending May 31, 2010 or 1% of the amount
18        paid per kilowatthour by those customers during the
19        year ending May 31, 2009;
20            (C) in 2012, the greater of an additional 0.5% of
21        the amount paid per kilowatthour by those customers
22        during the year ending May 31, 2011 or 1.5% of the
23        amount paid per kilowatthour by those customers during
24        the year ending May 31, 2009;
25            (D) in 2013, the greater of an additional 0.5% of
26        the amount paid per kilowatthour by those customers

 

 

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1        during the year ending May 31, 2012 or 2% of the amount
2        paid per kilowatthour by those customers during the
3        year ending May 31, 2009; and
4            (E) thereafter, the total amount paid under
5        sourcing agreements with clean coal facilities
6        pursuant to the procurement plan for any single year
7        shall be reduced by an amount necessary to limit the
8        estimated average net increase due to the cost of
9        these resources included in the amounts paid by
10        eligible retail customers in connection with electric
11        service to no more than the greater of (i) 2.015% of
12        the amount paid per kilowatthour by those customers
13        during the year ending May 31, 2009 or (ii) the
14        incremental amount per kilowatthour paid for these
15        resources in 2013. These requirements may be altered
16        only as provided by statute.
17        No later than June 30, 2015, the Commission shall
18    review the limitation on the total amount paid under
19    sourcing agreements, if any, with clean coal facilities
20    pursuant to this subsection (d) and report to the General
21    Assembly its findings as to whether that limitation unduly
22    constrains the amount of electricity generated by
23    cost-effective clean coal facilities that is covered by
24    sourcing agreements.
25        (3) Initial clean coal facility. In order to promote
26    development of clean coal facilities in Illinois, each

 

 

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1    electric utility subject to this Section shall execute a
2    sourcing agreement to source electricity from a proposed
3    clean coal facility in Illinois (the "initial clean coal
4    facility") that will have a nameplate capacity of at least
5    500 MW when commercial operation commences, that has a
6    final Clean Air Act permit on June 1, 2009 (the effective
7    date of Public Act 95-1027), and that will meet the
8    definition of clean coal facility in Section 1-10 of this
9    Act when commercial operation commences. The sourcing
10    agreements with this initial clean coal facility shall be
11    subject to both approval of the initial clean coal
12    facility by the General Assembly and satisfaction of the
13    requirements of paragraph (4) of this subsection (d) and
14    shall be executed within 90 days after any such approval
15    by the General Assembly. The Agency and the Commission
16    shall have authority to inspect all books and records
17    associated with the initial clean coal facility during the
18    term of such a sourcing agreement. A utility's sourcing
19    agreement for electricity produced by the initial clean
20    coal facility shall include:
21            (A) a formula contractual price (the "contract
22        price") approved pursuant to paragraph (4) of this
23        subsection (d), which shall:
24                (i) be determined using a cost of service
25            methodology employing either a level or deferred
26            capital recovery component, based on a capital

 

 

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1            structure consisting of 45% equity and 55% debt,
2            and a return on equity as may be approved by the
3            Federal Energy Regulatory Commission, which in any
4            case may not exceed the lower of 11.5% or the rate
5            of return approved by the General Assembly
6            pursuant to paragraph (4) of this subsection (d);
7            and
8                (ii) provide that all miscellaneous net
9            revenue, including but not limited to net revenue
10            from the sale of emission allowances, if any,
11            substitute natural gas, if any, grants or other
12            support provided by the State of Illinois or the
13            United States Government, firm transmission
14            rights, if any, by-products produced by the
15            facility, energy or capacity derived from the
16            facility and not covered by a sourcing agreement
17            pursuant to paragraph (3) of this subsection (d)
18            or item (5) of subsection (d) of Section 16-115 of
19            the Public Utilities Act, whether generated from
20            the synthesis gas derived from coal, from SNG, or
21            from natural gas, shall be credited against the
22            revenue requirement for this initial clean coal
23            facility;
24            (B) power purchase provisions, which shall:
25                (i) provide that the utility party to such
26            sourcing agreement shall pay the contract price

 

 

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1            for electricity delivered under such sourcing
2            agreement;
3                (ii) require delivery of electricity to the
4            regional transmission organization market of the
5            utility that is party to such sourcing agreement;
6                (iii) require the utility party to such
7            sourcing agreement to buy from the initial clean
8            coal facility in each hour an amount of energy
9            equal to all clean coal energy made available from
10            the initial clean coal facility during such hour
11            times a fraction, the numerator of which is such
12            utility's retail market sales of electricity
13            (expressed in kilowatthours sold) in the State
14            during the prior calendar month and the
15            denominator of which is the total retail market
16            sales of electricity (expressed in kilowatthours
17            sold) in the State by utilities during such prior
18            month and the sales of electricity (expressed in
19            kilowatthours sold) in the State by alternative
20            retail electric suppliers during such prior month
21            that are subject to the requirements of this
22            subsection (d) and paragraph (5) of subsection (d)
23            of Section 16-115 of the Public Utilities Act,
24            provided that the amount purchased by the utility
25            in any year will be limited by paragraph (2) of
26            this subsection (d); and

 

 

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

 

 

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1            subsection (d);
2                (ii) provide that the utility's payment
3            obligation in respect of the quantity of
4            electricity determined pursuant to the preceding
5            clause (i) shall be limited to an amount equal to
6            (1) the difference between the contract price
7            determined pursuant to subparagraph (A) of
8            paragraph (3) of this subsection (d) and the
9            day-ahead price for electricity delivered to the
10            regional transmission organization market of the
11            utility that is party to such sourcing agreement
12            (or any successor delivery point at which such
13            utility's supply obligations are financially
14            settled on an hourly basis) (the "reference
15            price") on the day preceding the day on which the
16            electricity is delivered to the initial clean coal
17            facility busbar, multiplied by (2) the quantity of
18            electricity determined pursuant to the preceding
19            clause (i); and
20                (iii) not require the utility to take physical
21            delivery of the electricity produced by the
22            facility;
23            (D) general provisions, which shall:
24                (i) specify a term of no more than 30 years,
25            commencing on the commercial operation date of the
26            facility;

 

 

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1                (ii) provide that utilities shall maintain
2            adequate records documenting purchases under the
3            sourcing agreements entered into to comply with
4            this subsection (d) and shall file an accounting
5            with the load forecast that must be filed with the
6            Agency by July 15 of each year, in accordance with
7            subsection (d) of Section 16-111.5 of the Public
8            Utilities Act;
9                (iii) provide that all costs associated with
10            the initial clean coal facility will be
11            periodically reported to the Federal Energy
12            Regulatory Commission and to purchasers in
13            accordance with applicable laws governing
14            cost-based wholesale power contracts;
15                (iv) permit the Illinois Power Agency to
16            assume ownership of the initial clean coal
17            facility, without monetary consideration and
18            otherwise on reasonable terms acceptable to the
19            Agency, if the Agency so requests no less than 3
20            years prior to the end of the stated contract
21            term;
22                (v) require the owner of the initial clean
23            coal facility to provide documentation to the
24            Commission each year, starting in the facility's
25            first year of commercial operation, accurately
26            reporting the quantity of carbon emissions from

 

 

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1            the facility that have been captured and
2            sequestered and report any quantities of carbon
3            released from the site or sites at which carbon
4            emissions were sequestered in prior years, based
5            on continuous monitoring of such sites. If, in any
6            year after the first year of commercial operation,
7            the owner of the facility fails to demonstrate
8            that the initial clean coal facility captured and
9            sequestered at least 50% of the total carbon
10            emissions that the facility would otherwise emit
11            or that sequestration of emissions from prior
12            years has failed, resulting in the release of
13            carbon dioxide into the atmosphere, the owner of
14            the facility must offset excess emissions. Any
15            such carbon offsets must be permanent, additional,
16            verifiable, real, located within the State of
17            Illinois, and legally and practicably enforceable.
18            The cost of such offsets for the facility that are
19            not recoverable shall not exceed $15 million in
20            any given year. No costs of any such purchases of
21            carbon offsets may be recovered from a utility or
22            its customers. All carbon offsets purchased for
23            this purpose and any carbon emission credits
24            associated with sequestration of carbon from the
25            facility must be permanently retired. The initial
26            clean coal facility shall not forfeit its

 

 

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1            designation as a clean coal facility if the
2            facility fails to fully comply with the applicable
3            carbon sequestration requirements in any given
4            year, provided the requisite offsets are
5            purchased. However, the Attorney General, on
6            behalf of the People of the State of Illinois, may
7            specifically enforce the facility's sequestration
8            requirement and the other terms of this contract
9            provision. Compliance with the sequestration
10            requirements and offset purchase requirements
11            specified in paragraph (3) of this subsection (d)
12            shall be reviewed annually by an independent
13            expert retained by the owner of the initial clean
14            coal facility, with the advance written approval
15            of the Attorney General. The Commission may, in
16            the course of the review specified in item (vii),
17            reduce the allowable return on equity for the
18            facility if the facility willfully fails to comply
19            with the carbon capture and sequestration
20            requirements set forth in this item (v);
21                (vi) include limits on, and accordingly
22            provide for modification of, the amount the
23            utility is required to source under the sourcing
24            agreement consistent with paragraph (2) of this
25            subsection (d);
26                (vii) require Commission review: (1) to

 

 

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1            determine the justness, reasonableness, and
2            prudence of the inputs to the formula referenced
3            in subparagraphs (A)(i) through (A)(iii) of
4            paragraph (3) of this subsection (d), prior to an
5            adjustment in those inputs including, without
6            limitation, the capital structure and return on
7            equity, fuel costs, and other operations and
8            maintenance costs and (2) to approve the costs to
9            be passed through to customers under the sourcing
10            agreement by which the utility satisfies its
11            statutory obligations. Commission review shall
12            occur no less than every 3 years, regardless of
13            whether any adjustments have been proposed, and
14            shall be completed within 9 months;
15                (viii) limit the utility's obligation to such
16            amount as the utility is allowed to recover
17            through tariffs filed with the Commission,
18            provided that neither the clean coal facility nor
19            the utility waives any right to assert federal
20            pre-emption or any other argument in response to a
21            purported disallowance of recovery costs;
22                (ix) limit the utility's or alternative retail
23            electric supplier's obligation to incur any
24            liability until such time as the facility is in
25            commercial operation and generating power and
26            energy and such power and energy is being

 

 

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1            delivered to the facility busbar;
2                (x) provide that the owner or owners of the
3            initial clean coal facility, which is the
4            counterparty to such sourcing agreement, shall
5            have the right from time to time to elect whether
6            the obligations of the utility party thereto shall
7            be governed by the power purchase provisions or
8            the contract for differences provisions;
9                (xi) append documentation showing that the
10            formula rate and contract, insofar as they relate
11            to the power purchase provisions, have been
12            approved by the Federal Energy Regulatory
13            Commission pursuant to Section 205 of the Federal
14            Power Act;
15                (xii) provide that any changes to the terms of
16            the contract, insofar as such changes relate to
17            the power purchase provisions, are subject to
18            review under the public interest standard applied
19            by the Federal Energy Regulatory Commission
20            pursuant to Sections 205 and 206 of the Federal
21            Power Act; and
22                (xiii) conform with customary lender
23            requirements in power purchase agreements used as
24            the basis for financing non-utility generators.
25        (4) Effective date of sourcing agreements with the
26    initial clean coal facility. Any proposed sourcing

 

 

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1    agreement with the initial clean coal facility shall not
2    become effective unless the following reports are prepared
3    and submitted and authorizations and approvals obtained:
4            (i) Facility cost report. The owner of the initial
5        clean coal facility shall submit to the Commission,
6        the Agency, and the General Assembly a front-end
7        engineering and design study, a facility cost report,
8        method of financing (including but not limited to
9        structure and associated costs), and an operating and
10        maintenance cost quote for the facility (collectively
11        "facility cost report"), which shall be prepared in
12        accordance with the requirements of this paragraph (4)
13        of subsection (d) of this Section, and shall provide
14        the Commission and the Agency access to the work
15        papers, relied upon documents, and any other backup
16        documentation related to the facility cost report.
17            (ii) Commission report. Within 6 months following
18        receipt of the facility cost report, the Commission,
19        in consultation with the Agency, shall submit a report
20        to the General Assembly setting forth its analysis of
21        the facility cost report. Such report shall include,
22        but not be limited to, a comparison of the costs
23        associated with electricity generated by the initial
24        clean coal facility to the costs associated with
25        electricity generated by other types of generation
26        facilities, an analysis of the rate impacts on

 

 

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1        residential and small business customers over the life
2        of the sourcing agreements, and an analysis of the
3        likelihood that the initial clean coal facility will
4        commence commercial operation by and be delivering
5        power to the facility's busbar by 2016. To assist in
6        the preparation of its report, the Commission, in
7        consultation with the Agency, may hire one or more
8        experts or consultants, the costs of which shall be
9        paid for by the owner of the initial clean coal
10        facility. The Commission and Agency may begin the
11        process of selecting such experts or consultants prior
12        to receipt of the facility cost report.
13            (iii) General Assembly approval. The proposed
14        sourcing agreements shall not take effect unless,
15        based on the facility cost report and the Commission's
16        report, the General Assembly enacts authorizing
17        legislation approving (A) the projected price, stated
18        in cents per kilowatthour, to be charged for
19        electricity generated by the initial clean coal
20        facility, (B) the projected impact on residential and
21        small business customers' bills over the life of the
22        sourcing agreements, and (C) the maximum allowable
23        return on equity for the project; and
24            (iv) Commission review. If the General Assembly
25        enacts authorizing legislation pursuant to
26        subparagraph (iii) approving a sourcing agreement, the

 

 

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1        Commission shall, within 90 days of such enactment,
2        complete a review of such sourcing agreement. During
3        such time period, the Commission shall implement any
4        directive of the General Assembly, resolve any
5        disputes between the parties to the sourcing agreement
6        concerning the terms of such agreement, approve the
7        form of such agreement, and issue an order finding
8        that the sourcing agreement is prudent and reasonable.
9        The facility cost report shall be prepared as follows:
10            (A) The facility cost report shall be prepared by
11        duly licensed engineering and construction firms
12        detailing the estimated capital costs payable to one
13        or more contractors or suppliers for the engineering,
14        procurement and construction of the components
15        comprising the initial clean coal facility and the
16        estimated costs of operation and maintenance of the
17        facility. The facility cost report shall include:
18                (i) an estimate of the capital cost of the
19            core plant based on one or more front end
20            engineering and design studies for the
21            gasification island and related facilities. The
22            core plant shall include all civil, structural,
23            mechanical, electrical, control, and safety
24            systems.
25                (ii) an estimate of the capital cost of the
26            balance of the plant, including any capital costs

 

 

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1            associated with sequestration of carbon dioxide
2            emissions and all interconnects and interfaces
3            required to operate the facility, such as
4            transmission of electricity, construction or
5            backfeed power supply, pipelines to transport
6            substitute natural gas or carbon dioxide, potable
7            water supply, natural gas supply, water supply,
8            water discharge, landfill, access roads, and coal
9            delivery.
10            The quoted construction costs shall be expressed
11        in nominal dollars as of the date that the quote is
12        prepared and shall include capitalized financing costs
13        during construction, taxes, insurance, and other
14        owner's costs, and an assumed escalation in materials
15        and labor beyond the date as of which the construction
16        cost quote is expressed.
17            (B) The front end engineering and design study for
18        the gasification island and the cost study for the
19        balance of plant shall include sufficient design work
20        to permit quantification of major categories of
21        materials, commodities and labor hours, and receipt of
22        quotes from vendors of major equipment required to
23        construct and operate the clean coal facility.
24            (C) The facility cost report shall also include an
25        operating and maintenance cost quote that will provide
26        the estimated cost of delivered fuel, personnel,

 

 

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1        maintenance contracts, chemicals, catalysts,
2        consumables, spares, and other fixed and variable
3        operations and maintenance costs. The delivered fuel
4        cost estimate will be provided by a recognized third
5        party expert or experts in the fuel and transportation
6        industries. The balance of the operating and
7        maintenance cost quote, excluding delivered fuel
8        costs, will be developed based on the inputs provided
9        by duly licensed engineering and construction firms
10        performing the construction cost quote, potential
11        vendors under long-term service agreements and plant
12        operating agreements, or recognized third party plant
13        operator or operators.
14            The operating and maintenance cost quote
15        (including the cost of the front end engineering and
16        design study) shall be expressed in nominal dollars as
17        of the date that the quote is prepared and shall
18        include taxes, insurance, and other owner's costs, and
19        an assumed escalation in materials and labor beyond
20        the date as of which the operating and maintenance
21        cost quote is expressed.
22            (D) The facility cost report shall also include an
23        analysis of the initial clean coal facility's ability
24        to deliver power and energy into the applicable
25        regional transmission organization markets and an
26        analysis of the expected capacity factor for the

 

 

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1        initial clean coal facility.
2            (E) Amounts paid to third parties unrelated to the
3        owner or owners of the initial clean coal facility to
4        prepare the core plant construction cost quote,
5        including the front end engineering and design study,
6        and the operating and maintenance cost quote will be
7        reimbursed through Coal Development Bonds.
8        (5) Re-powering and retrofitting coal-fired power
9    plants previously owned by Illinois utilities to qualify
10    as clean coal facilities. During the 2009 procurement
11    planning process and thereafter, the Agency and the
12    Commission shall consider sourcing agreements covering
13    electricity generated by power plants that were previously
14    owned by Illinois utilities and that have been or will be
15    converted into clean coal facilities, as defined by
16    Section 1-10 of this Act. Pursuant to such procurement
17    planning process, the owners of such facilities may
18    propose to the Agency sourcing agreements with utilities
19    and alternative retail electric suppliers required to
20    comply with subsection (d) of this Section and item (5) of
21    subsection (d) of Section 16-115 of the Public Utilities
22    Act, covering electricity generated by such facilities. In
23    the case of sourcing agreements that are power purchase
24    agreements, the contract price for electricity sales shall
25    be established on a cost of service basis. In the case of
26    sourcing agreements that are contracts for differences,

 

 

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1    the contract price from which the reference price is
2    subtracted shall be established on a cost of service
3    basis. The Agency and the Commission may approve any such
4    utility sourcing agreements that do not exceed cost-based
5    benchmarks developed by the procurement administrator, in
6    consultation with the Commission staff, Agency staff and
7    the procurement monitor, subject to Commission review and
8    approval. The Commission shall have authority to inspect
9    all books and records associated with these clean coal
10    facilities during the term of any such contract.
11        (6) Costs incurred under this subsection (d) or
12    pursuant to a contract entered into under this subsection
13    (d) shall be deemed prudently incurred and reasonable in
14    amount and the electric utility shall be entitled to full
15    cost recovery pursuant to the tariffs filed with the
16    Commission.
17    (d-5) Zero emission standard.
18        (1) Beginning with the delivery year commencing on
19    June 1, 2017, the Agency shall, for electric utilities
20    that serve at least 100,000 retail customers in this
21    State, procure contracts with zero emission facilities
22    that are reasonably capable of generating cost-effective
23    zero emission credits in an amount approximately equal to
24    16% of the actual amount of electricity delivered by each
25    electric utility to retail customers in the State during
26    calendar year 2014. For an electric utility serving fewer

 

 

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1    than 100,000 retail customers in this State that
2    requested, under Section 16-111.5 of the Public Utilities
3    Act, that the Agency procure power and energy for all or a
4    portion of the utility's Illinois load for the delivery
5    year commencing June 1, 2016, the Agency shall procure
6    contracts with zero emission facilities that are
7    reasonably capable of generating cost-effective zero
8    emission credits in an amount approximately equal to 16%
9    of the portion of power and energy to be procured by the
10    Agency for the utility. The duration of the contracts
11    procured under this subsection (d-5) shall be for a term
12    of 10 years ending May 31, 2027. The quantity of zero
13    emission credits to be procured under the contracts shall
14    be all of the zero emission credits generated by the zero
15    emission facility in each delivery year; however, if the
16    zero emission facility is owned by more than one entity,
17    then the quantity of zero emission credits to be procured
18    under the contracts shall be the amount of zero emission
19    credits that are generated from the portion of the zero
20    emission facility that is owned by the winning supplier.
21        The 16% value identified in this paragraph (1) is the
22    average of the percentage targets in subparagraph (B) of
23    paragraph (1) of subsection (c) of this Section for the 5
24    delivery years beginning June 1, 2017.
25        The procurement process shall be subject to the
26    following provisions:

 

 

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1            (A) Those zero emission facilities that intend to
2        participate in the procurement shall submit to the
3        Agency the following eligibility information for each
4        zero emission facility on or before the date
5        established by the Agency:
6                (i) the in-service date and remaining useful
7            life of the zero emission facility;
8                (ii) the amount of power generated annually
9            for each of the years 2005 through 2015, and the
10            projected zero emission credits to be generated
11            over the remaining useful life of the zero
12            emission facility, which shall be used to
13            determine the capability of each facility;
14                (iii) the annual zero emission facility cost
15            projections, expressed on a per megawatthour
16            basis, over the next 6 delivery years, which shall
17            include the following: operation and maintenance
18            expenses; fully allocated overhead costs, which
19            shall be allocated using the methodology developed
20            by the Institute for Nuclear Power Operations;
21            fuel expenditures; non-fuel capital expenditures;
22            spent fuel expenditures; a return on working
23            capital; the cost of operational and market risks
24            that could be avoided by ceasing operation; and
25            any other costs necessary for continued
26            operations, provided that "necessary" means, for

 

 

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1            purposes of this item (iii), that the costs could
2            reasonably be avoided only by ceasing operations
3            of the zero emission facility; and
4                (iv) a commitment to continue operating, for
5            the duration of the contract or contracts executed
6            under the procurement held under this subsection
7            (d-5), the zero emission facility that produces
8            the zero emission credits to be procured in the
9            procurement.
10            The information described in item (iii) of this
11        subparagraph (A) may be submitted on a confidential
12        basis and shall be treated and maintained by the
13        Agency, the procurement administrator, and the
14        Commission as confidential and proprietary and exempt
15        from disclosure under subparagraphs (a) and (g) of
16        paragraph (1) of Section 7 of the Freedom of
17        Information Act. The Office of Attorney General shall
18        have access to, and maintain the confidentiality of,
19        such information pursuant to Section 6.5 of the
20        Attorney General Act.
21            (B) The price for each zero emission credit
22        procured under this subsection (d-5) for each delivery
23        year shall be in an amount that equals the Social Cost
24        of Carbon, expressed on a price per megawatthour
25        basis. However, to ensure that the procurement remains
26        affordable to retail customers in this State if

 

 

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1        electricity prices increase, the price in an
2        applicable delivery year shall be reduced below the
3        Social Cost of Carbon by the amount ("Price
4        Adjustment") by which the market price index for the
5        applicable delivery year exceeds the baseline market
6        price index for the consecutive 12-month period ending
7        May 31, 2016. If the Price Adjustment is greater than
8        or equal to the Social Cost of Carbon in an applicable
9        delivery year, then no payments shall be due in that
10        delivery year. The components of this calculation are
11        defined as follows:
12                (i) Social Cost of Carbon: The Social Cost of
13            Carbon is $16.50 per megawatthour, which is based
14            on the U.S. Interagency Working Group on Social
15            Cost of Carbon's price in the August 2016
16            Technical Update using a 3% discount rate,
17            adjusted for inflation for each year of the
18            program. Beginning with the delivery year
19            commencing June 1, 2023, the price per
20            megawatthour shall increase by $1 per
21            megawatthour, and continue to increase by an
22            additional $1 per megawatthour each delivery year
23            thereafter.
24                (ii) Baseline market price index: The baseline
25            market price index for the consecutive 12-month
26            period ending May 31, 2016 is $31.40 per

 

 

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1            megawatthour, which is based on the sum of (aa)
2            the average day-ahead energy price across all
3            hours of such 12-month period at the PJM
4            Interconnection LLC Northern Illinois Hub, (bb)
5            50% multiplied by the Base Residual Auction, or
6            its successor, capacity price for the rest of the
7            RTO zone group determined by PJM Interconnection
8            LLC, divided by 24 hours per day, and (cc) 50%
9            multiplied by the Planning Resource Auction, or
10            its successor, capacity price for Zone 4
11            determined by the Midcontinent Independent System
12            Operator, Inc., divided by 24 hours per day.
13                (iii) Market price index: The market price
14            index for a delivery year shall be the sum of
15            projected energy prices and projected capacity
16            prices determined as follows:
17                    (aa) Projected energy prices: the
18                projected energy prices for the applicable
19                delivery year shall be calculated once for the
20                year using the forward market price for the
21                PJM Interconnection, LLC Northern Illinois
22                Hub. The forward market price shall be
23                calculated as follows: the energy forward
24                prices for each month of the applicable
25                delivery year averaged for each trade date
26                during the calendar year immediately preceding

 

 

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1                that delivery year to produce a single energy
2                forward price for the delivery year. The
3                forward market price calculation shall use
4                data published by the Intercontinental
5                Exchange, or its successor.
6                    (bb) Projected capacity prices:
7                        (I) For the delivery years commencing
8                    June 1, 2017, June 1, 2018, and June 1,
9                    2019, the projected capacity price shall
10                    be equal to the sum of (1) 50% multiplied
11                    by the Base Residual Auction, or its
12                    successor, price for the rest of the RTO
13                    zone group as determined by PJM
14                    Interconnection LLC, divided by 24 hours
15                    per day and, (2) 50% multiplied by the
16                    resource auction price determined in the
17                    resource auction administered by the
18                    Midcontinent Independent System Operator,
19                    Inc., in which the largest percentage of
20                    load cleared for Local Resource Zone 4,
21                    divided by 24 hours per day, and where
22                    such price is determined by the
23                    Midcontinent Independent System Operator,
24                    Inc.
25                        (II) For the delivery year commencing
26                    June 1, 2020, and each year thereafter,

 

 

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1                    the projected capacity price shall be
2                    equal to the sum of (1) 50% multiplied by
3                    the Base Residual Auction, or its
4                    successor, price for the ComEd zone as
5                    determined by PJM Interconnection LLC,
6                    divided by 24 hours per day, and (2) 50%
7                    multiplied by the resource auction price
8                    determined in the resource auction
9                    administered by the Midcontinent
10                    Independent System Operator, Inc., in
11                    which the largest percentage of load
12                    cleared for Local Resource Zone 4, divided
13                    by 24 hours per day, and where such price
14                    is determined by the Midcontinent
15                    Independent System Operator, Inc.
16            For purposes of this subsection (d-5):
17                "Rest of the RTO" and "ComEd Zone" shall have
18            the meaning ascribed to them by PJM
19            Interconnection, LLC.
20                "RTO" means regional transmission
21            organization.
22            (C) No later than 45 days after June 1, 2017 (the
23        effective date of Public Act 99-906), the Agency shall
24        publish its proposed zero emission standard
25        procurement plan. The plan shall be consistent with
26        the provisions of this paragraph (1) and shall provide

 

 

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1        that winning bids shall be selected based on public
2        interest criteria that include, but are not limited
3        to, minimizing carbon dioxide emissions that result
4        from electricity consumed in Illinois and minimizing
5        sulfur dioxide, nitrogen oxide, and particulate matter
6        emissions that adversely affect the citizens of this
7        State. In particular, the selection of winning bids
8        shall take into account the incremental environmental
9        benefits resulting from the procurement, such as any
10        existing environmental benefits that are preserved by
11        the procurements held under Public Act 99-906 and
12        would cease to exist if the procurements were not
13        held, including the preservation of zero emission
14        facilities. The plan shall also describe in detail how
15        each public interest factor shall be considered and
16        weighted in the bid selection process to ensure that
17        the public interest criteria are applied to the
18        procurement and given full effect.
19            For purposes of developing the plan, the Agency
20        shall consider any reports issued by a State agency,
21        board, or commission under House Resolution 1146 of
22        the 98th General Assembly and paragraph (4) of
23        subsection (d) of this Section, as well as publicly
24        available analyses and studies performed by or for
25        regional transmission organizations that serve the
26        State and their independent market monitors.

 

 

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1            Upon publishing of the zero emission standard
2        procurement plan, copies of the plan shall be posted
3        and made publicly available on the Agency's website.
4        All interested parties shall have 10 days following
5        the date of posting to provide comment to the Agency on
6        the plan. All comments shall be posted to the Agency's
7        website. Following the end of the comment period, but
8        no more than 60 days later than June 1, 2017 (the
9        effective date of Public Act 99-906), the Agency shall
10        revise the plan as necessary based on the comments
11        received and file its zero emission standard
12        procurement plan with the Commission.
13            If the Commission determines that the plan will
14        result in the procurement of cost-effective zero
15        emission credits, then the Commission shall, after
16        notice and hearing, but no later than 45 days after the
17        Agency filed the plan, approve the plan or approve
18        with modification. For purposes of this subsection
19        (d-5), "cost effective" means the projected costs of
20        procuring zero emission credits from zero emission
21        facilities do not cause the limit stated in paragraph
22        (2) of this subsection to be exceeded.
23            (C-5) As part of the Commission's review and
24        acceptance or rejection of the procurement results,
25        the Commission shall, in its public notice of
26        successful bidders:

 

 

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1                (i) identify how the winning bids satisfy the
2            public interest criteria described in subparagraph
3            (C) of this paragraph (1) of minimizing carbon
4            dioxide emissions that result from electricity
5            consumed in Illinois and minimizing sulfur
6            dioxide, nitrogen oxide, and particulate matter
7            emissions that adversely affect the citizens of
8            this State;
9                (ii) specifically address how the selection of
10            winning bids takes into account the incremental
11            environmental benefits resulting from the
12            procurement, including any existing environmental
13            benefits that are preserved by the procurements
14            held under Public Act 99-906 and would have ceased
15            to exist if the procurements had not been held,
16            such as the preservation of zero emission
17            facilities;
18                (iii) quantify the environmental benefit of
19            preserving the resources identified in item (ii)
20            of this subparagraph (C-5), including the
21            following:
22                    (aa) the value of avoided greenhouse gas
23                emissions measured as the product of the zero
24                emission facilities' output over the contract
25                term multiplied by the U.S. Environmental
26                Protection Agency eGrid subregion carbon

 

 

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1                dioxide emission rate and the U.S. Interagency
2                Working Group on Social Cost of Carbon's price
3                in the August 2016 Technical Update using a 3%
4                discount rate, adjusted for inflation for each
5                delivery year; and
6                    (bb) the costs of replacement with other
7                zero carbon dioxide resources, including wind
8                and photovoltaic, based upon the simple
9                average of the following:
10                        (I) the price, or if there is more
11                    than one price, the average of the prices,
12                    paid for renewable energy credits from new
13                    utility-scale wind projects in the
14                    procurement events specified in item (i)
15                    of subparagraph (G) of paragraph (1) of
16                    subsection (c) of this Section; and
17                        (II) the price, or if there is more
18                    than one price, the average of the prices,
19                    paid for renewable energy credits from new
20                    utility-scale solar projects and
21                    brownfield site photovoltaic projects in
22                    the procurement events specified in item
23                    (ii) of subparagraph (G) of paragraph (1)
24                    of subsection (c) of this Section and,
25                    after January 1, 2015, renewable energy
26                    credits from photovoltaic distributed

 

 

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1                    generation projects in procurement events
2                    held under subsection (c) of this Section.
3            Each utility shall enter into binding contractual
4        arrangements with the winning suppliers.
5            The procurement described in this subsection
6        (d-5), including, but not limited to, the execution of
7        all contracts procured, shall be completed no later
8        than May 10, 2017. Based on the effective date of
9        Public Act 99-906, the Agency and Commission may, as
10        appropriate, modify the various dates and timelines
11        under this subparagraph and subparagraphs (C) and (D)
12        of this paragraph (1). The procurement and plan
13        approval processes required by this subsection (d-5)
14        shall be conducted in conjunction with the procurement
15        and plan approval processes required by subsection (c)
16        of this Section and Section 16-111.5 of the Public
17        Utilities Act, to the extent practicable.
18        Notwithstanding whether a procurement event is
19        conducted under Section 16-111.5 of the Public
20        Utilities Act, the Agency shall immediately initiate a
21        procurement process on June 1, 2017 (the effective
22        date of Public Act 99-906).
23            (D) Following the procurement event described in
24        this paragraph (1) and consistent with subparagraph
25        (B) of this paragraph (1), the Agency shall calculate
26        the payments to be made under each contract for the

 

 

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1        next delivery year based on the market price index for
2        that delivery year. The Agency shall publish the
3        payment calculations no later than May 25, 2017 and
4        every May 25 thereafter.
5            (E) Notwithstanding the requirements of this
6        subsection (d-5), the contracts executed under this
7        subsection (d-5) shall provide that the zero emission
8        facility may, as applicable, suspend or terminate
9        performance under the contracts in the following
10        instances:
11                (i) A zero emission facility shall be excused
12            from its performance under the contract for any
13            cause beyond the control of the resource,
14            including, but not restricted to, acts of God,
15            flood, drought, earthquake, storm, fire,
16            lightning, epidemic, war, riot, civil disturbance
17            or disobedience, labor dispute, labor or material
18            shortage, sabotage, acts of public enemy,
19            explosions, orders, regulations or restrictions
20            imposed by governmental, military, or lawfully
21            established civilian authorities, which, in any of
22            the foregoing cases, by exercise of commercially
23            reasonable efforts the zero emission facility
24            could not reasonably have been expected to avoid,
25            and which, by the exercise of commercially
26            reasonable efforts, it has been unable to

 

 

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1            overcome. In such event, the zero emission
2            facility shall be excused from performance for the
3            duration of the event, including, but not limited
4            to, delivery of zero emission credits, and no
5            payment shall be due to the zero emission facility
6            during the duration of the event.
7                (ii) A zero emission facility shall be
8            permitted to terminate the contract if legislation
9            is enacted into law by the General Assembly that
10            imposes or authorizes a new tax, special
11            assessment, or fee on the generation of
12            electricity, the ownership or leasehold of a
13            generating unit, or the privilege or occupation of
14            such generation, ownership, or leasehold of
15            generation units by a zero emission facility.
16            However, the provisions of this item (ii) do not
17            apply to any generally applicable tax, special
18            assessment or fee, or requirements imposed by
19            federal law.
20                (iii) A zero emission facility shall be
21            permitted to terminate the contract in the event
22            that the resource requires capital expenditures in
23            excess of $40,000,000 that were neither known nor
24            reasonably foreseeable at the time it executed the
25            contract and that a prudent owner or operator of
26            such resource would not undertake.

 

 

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1                (iv) A zero emission facility shall be
2            permitted to terminate the contract in the event
3            the Nuclear Regulatory Commission terminates the
4            resource's license.
5            (F) If the zero emission facility elects to
6        terminate a contract under subparagraph (E) of this
7        paragraph (1), then the Commission shall reopen the
8        docket in which the Commission approved the zero
9        emission standard procurement plan under subparagraph
10        (C) of this paragraph (1) and, after notice and
11        hearing, enter an order acknowledging the contract
12        termination election if such termination is consistent
13        with the provisions of this subsection (d-5).
14        (2) For purposes of this subsection (d-5), the amount
15    paid per kilowatthour means the total amount paid for
16    electric service expressed on a per kilowatthour basis.
17    For purposes of this subsection (d-5), the total amount
18    paid for electric service includes, without limitation,
19    amounts paid for supply, transmission, distribution,
20    surcharges, and add-on taxes.
21        Notwithstanding the requirements of this subsection
22    (d-5), the contracts executed under this subsection (d-5)
23    shall provide that the total of zero emission credits
24    procured under a procurement plan shall be subject to the
25    limitations of this paragraph (2). For each delivery year,
26    the contractual volume receiving payments in such year

 

 

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1    shall be reduced for all retail customers based on the
2    amount necessary to limit the net increase that delivery
3    year to the costs of those credits included in the amounts
4    paid by eligible retail customers in connection with
5    electric service to no more than 1.65% of the amount paid
6    per kilowatthour by eligible retail customers during the
7    year ending May 31, 2009. The result of this computation
8    shall apply to and reduce the procurement for all retail
9    customers, and all those customers shall pay the same
10    single, uniform cents per kilowatthour charge under
11    subsection (k) of Section 16-108 of the Public Utilities
12    Act. To arrive at a maximum dollar amount of zero emission
13    credits to be paid for the particular delivery year, the
14    resulting per kilowatthour amount shall be applied to the
15    actual amount of kilowatthours of electricity delivered by
16    the electric utility in the delivery year immediately
17    prior to the procurement, to all retail customers in its
18    service territory. Unpaid contractual volume for any
19    delivery year shall be paid in any subsequent delivery
20    year in which such payments can be made without exceeding
21    the amount specified in this paragraph (2). The
22    calculations required by this paragraph (2) shall be made
23    only once for each procurement plan year. Once the
24    determination as to the amount of zero emission credits to
25    be paid is made based on the calculations set forth in this
26    paragraph (2), no subsequent rate impact determinations

 

 

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1    shall be made and no adjustments to those contract amounts
2    shall be allowed. All costs incurred under those contracts
3    and in implementing this subsection (d-5) shall be
4    recovered by the electric utility as provided in this
5    Section.
6        No later than June 30, 2019, the Commission shall
7    review the limitation on the amount of zero emission
8    credits procured under this subsection (d-5) and report to
9    the General Assembly its findings as to whether that
10    limitation unduly constrains the procurement of
11    cost-effective zero emission credits.
12        (3) Six years after the execution of a contract under
13    this subsection (d-5), the Agency shall determine whether
14    the actual zero emission credit payments received by the
15    supplier over the 6-year period exceed the Average ZEC
16    Payment. In addition, at the end of the term of a contract
17    executed under this subsection (d-5), or at the time, if
18    any, a zero emission facility's contract is terminated
19    under subparagraph (E) of paragraph (1) of this subsection
20    (d-5), then the Agency shall determine whether the actual
21    zero emission credit payments received by the supplier
22    over the term of the contract exceed the Average ZEC
23    Payment, after taking into account any amounts previously
24    credited back to the utility under this paragraph (3). If
25    the Agency determines that the actual zero emission credit
26    payments received by the supplier over the relevant period

 

 

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1    exceed the Average ZEC Payment, then the supplier shall
2    credit the difference back to the utility. The amount of
3    the credit shall be remitted to the applicable electric
4    utility no later than 120 days after the Agency's
5    determination, which the utility shall reflect as a credit
6    on its retail customer bills as soon as practicable;
7    however, the credit remitted to the utility shall not
8    exceed the total amount of payments received by the
9    facility under its contract.
10        For purposes of this Section, the Average ZEC Payment
11    shall be calculated by multiplying the quantity of zero
12    emission credits delivered under the contract times the
13    average contract price. The average contract price shall
14    be determined by subtracting the amount calculated under
15    subparagraph (B) of this paragraph (3) from the amount
16    calculated under subparagraph (A) of this paragraph (3),
17    as follows:
18            (A) The average of the Social Cost of Carbon, as
19        defined in subparagraph (B) of paragraph (1) of this
20        subsection (d-5), during the term of the contract.
21            (B) The average of the market price indices, as
22        defined in subparagraph (B) of paragraph (1) of this
23        subsection (d-5), during the term of the contract,
24        minus the baseline market price index, as defined in
25        subparagraph (B) of paragraph (1) of this subsection
26        (d-5).

 

 

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1        If the subtraction yields a negative number, then the
2    Average ZEC Payment shall be zero.
3        (4) Cost-effective zero emission credits procured from
4    zero emission facilities shall satisfy the applicable
5    definitions set forth in Section 1-10 of this Act.
6        (5) The electric utility shall retire all zero
7    emission credits used to comply with the requirements of
8    this subsection (d-5).
9        (6) Electric utilities shall be entitled to recover
10    all of the costs associated with the procurement of zero
11    emission credits through an automatic adjustment clause
12    tariff in accordance with subsection (k) and (m) of
13    Section 16-108 of the Public Utilities Act, and the
14    contracts executed under this subsection (d-5) shall
15    provide that the utilities' payment obligations under such
16    contracts shall be reduced if an adjustment is required
17    under subsection (m) of Section 16-108 of the Public
18    Utilities Act.
19        (7) This subsection (d-5) shall become inoperative on
20    January 1, 2028.
21    (d-10) Nuclear Plant Assistance; carbon mitigation
22credits.
23    (1) The General Assembly finds:
24        (A) The health, welfare, and prosperity of all
25    Illinois citizens require that the State of Illinois act
26    to avoid and not increase carbon emissions from electric

 

 

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1    generation sources while continuing to ensure affordable,
2    stable, and reliable electricity to all citizens.
3        (B) Absent immediate action by the State to preserve
4    existing carbon-free energy resources, those resources may
5    retire, and the electric generation needs of Illinois'
6    retail customers may be met instead by facilities that
7    emit significant amounts of carbon pollution and other
8    harmful air pollutants at a high social and economic cost
9    until Illinois is able to develop other forms of clean
10    energy.
11        (C) The General Assembly finds that nuclear power
12    generation is necessary for the State's transition to 100%
13    clean energy, and ensuring continued operation of nuclear
14    plants advances environmental and public health interests
15    through providing carbon-free electricity while reducing
16    the air pollution profile of the Illinois energy
17    generation fleet.
18        (D) The clean energy attributes of nuclear generation
19    facilities support the State in its efforts to achieve
20    100% clean energy.
21        (E) The State currently invests in various forms of
22    clean energy, including, but not limited to, renewable
23    energy, energy efficiency, and low-emission vehicles,
24    among others.
25        (F) The Environmental Protection Agency commissioned
26    an independent audit which provided a detailed assessment

 

 

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1    of the financial condition of the Illinois nuclear fleet
2    to evaluate its financial viability and whether the
3    environmental benefits of such resources were at risk. The
4    report identified the risk of losing the environmental
5    benefits of several specific nuclear units. The report
6    also identified that the LaSalle County Generating Station
7    will continue to operate through 2026 and therefore is not
8    eligible to participate in the carbon mitigation credit
9    program.
10        (G) Nuclear plants provide carbon-free energy, which
11    helps to avoid many health-related negative impacts for
12    Illinois residents.
13        (H) The procurement of carbon mitigation credits
14    representing the environmental benefits of carbon-free
15    generation will further the State's efforts at achieving
16    100% clean energy and decarbonizing the electricity sector
17    in a safe, reliable, and affordable manner. Further, the
18    procurement of carbon emission credits will enhance the
19    health and welfare of Illinois residents through decreased
20    reliance on more highly polluting generation.
21        (I) The General Assembly therefore finds it necessary
22    to establish carbon mitigation credits to ensure decreased
23    reliance on more carbon-intensive energy resources, for
24    transitioning to a fully decarbonized electricity sector,
25    and to help ensure health and welfare of the State's
26    residents.

 

 

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1    (2) As used in this subsection:
2    "Baseline costs" means costs used to establish a customer
3protection cap that have been evaluated through an independent
4audit of a carbon-free energy resource conducted by the
5Environmental Protection Agency that evaluated projected
6annual costs for operation and maintenance expenses; fully
7allocated overhead costs, which shall be allocated using the
8methodology developed by the Institute for Nuclear Power
9Operations; fuel expenditures; nonfuel capital expenditures;
10spent fuel expenditures; a return on working capital; the cost
11of operational and market risks that could be avoided by
12ceasing operation; and any other costs necessary for continued
13operations, provided that "necessary" means, for purposes of
14this definition, that the costs could reasonably be avoided
15only by ceasing operations of the carbon-free energy resource.
16    "Carbon mitigation credit" means a tradable credit that
17represents the carbon emission reduction attributes of one
18megawatt-hour of energy produced from a carbon-free energy
19resource.
20    "Carbon-free energy resource" means a generation facility
21that: (1) is fueled by nuclear power; and (2) is
22interconnected to PJM Interconnection, LLC.
23    (3) Procurement.
24        (A) Beginning with the delivery year commencing on
25    June 1, 2022, the Agency shall, for electric utilities
26    serving at least 3,000,000 retail customers in the State,

 

 

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1    seek to procure contracts for no more than approximately
2    54,500,000 cost-effective carbon mitigation credits from
3    carbon-free energy resources because such credits are
4    necessary to support current levels of carbon-free energy
5    generation and ensure the State meets its carbon dioxide
6    emissions reduction goals. The Agency shall not make a
7    partial award of a contract for carbon mitigation credits
8    covering a fractional amount of a carbon-free energy
9    resource's projected output.
10        (B) Each carbon-free energy resource that intends to
11    participate in a procurement shall be required to submit
12    to the Agency the following information for the resource
13    on or before the date established by the Agency:
14            (i) the in-service date and remaining useful life
15        of the carbon-free energy resource;
16            (ii) the amount of power generated annually for
17        each of the past 10 years, which shall be used to
18        determine the capability of each facility;
19            (iii) a commitment to be reflected in any contract
20        entered into pursuant to this subsection (d-10) to
21        continue operating the carbon-free energy resource at
22        a capacity factor of at least 88% annually on average
23        for the duration of the contract or contracts executed
24        under the procurement held under this subsection
25        (d-10), except in an instance described in
26        subparagraph (E) of paragraph (1) of subsection (d-5)

 

 

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1        of this Section or made impracticable as a result of
2        compliance with law or regulation;
3            (iv) financial need and the risk of loss of the
4        environmental benefits of such resource, which shall
5        include the following information:
6                (I) the carbon-free energy resource's cost
7            projections, expressed on a per megawatt-hour
8            basis, over the next 5 delivery years, which shall
9            include the following: operation and maintenance
10            expenses; fully allocated overhead costs, which
11            shall be allocated using the methodology developed
12            by the Institute for Nuclear Power Operations;
13            fuel expenditures; nonfuel capital expenditures;
14            spent fuel expenditures; a return on working
15            capital; the cost of operational and market risks
16            that could be avoided by ceasing operation; and
17            any other costs necessary for continued
18            operations, provided that "necessary" means, for
19            purposes of this subitem (I), that the costs could
20            reasonably be avoided only by ceasing operations
21            of the carbon-free energy resource; and
22                (II) the carbon-free energy resource's revenue
23            projections, including energy, capacity, ancillary
24            services, any other direct State support, known or
25            anticipated federal attribute credits, known or
26            anticipated tax credits, and any other direct

 

 

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1            federal support.
2        The information described in this subparagraph (B) may
3    be submitted on a confidential basis and shall be treated
4    and maintained by the Agency, the procurement
5    administrator, and the Commission as confidential and
6    proprietary and exempt from disclosure under subparagraphs
7    (a) and (g) of paragraph (1) of Section 7 of the Freedom of
8    Information Act. The Office of the Attorney General shall
9    have access to, and maintain the confidentiality of, such
10    information pursuant to Section 6.5 of the Attorney
11    General Act.
12        (C) The Agency shall solicit bids for the contracts
13    described in this subsection (d-10) from carbon-free
14    energy resources that have satisfied the requirements of
15    subparagraph (B) of this paragraph (3). The contracts
16    procured pursuant to a procurement event shall reflect,
17    and be subject to, the following terms, requirements, and
18    limitations:
19            (i) Contracts are for delivery of carbon
20        mitigation credits, and are not energy or capacity
21        sales contracts requiring physical delivery. Pursuant
22        to item (iii), contract payments shall fully deduct
23        the value of any monetized federal production tax
24        credits, credits issued pursuant to a federal clean
25        energy standard, and other federal credits if
26        applicable.

 

 

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1            (ii) Contracts for carbon mitigation credits shall
2        commence with the delivery year beginning on June 1,
3        2022 and shall be for a term of 5 delivery years
4        concluding on May 31, 2027.
5            (iii) The price per carbon mitigation credit to be
6        paid under a contract for a given delivery year shall
7        be equal to an accepted bid price less the sum of:
8                (I) one of the following energy price indices,
9            selected by the bidder at the time of the bid for
10            the term of the contract:
11                    (aa) the weighted-average hourly day-ahead
12                price for the applicable delivery year at the
13                busbar of all resources procured pursuant to
14                this subsection (d-10), weighted by actual
15                production from the resources; or
16                    (bb) the projected energy price for the
17                PJM Interconnection, LLC Northern Illinois Hub
18                for the applicable delivery year determined
19                according to subitem (aa) of item (iii) of
20                subparagraph (B) of paragraph (1) of
21                subsection (d-5).
22                (II) the Base Residual Auction Capacity Price
23            for the ComEd zone as determined by PJM
24            Interconnection, LLC, divided by 24 hours per day,
25            for the applicable delivery year for the first 3
26            delivery years, and then any subsequent delivery

 

 

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1            years unless the PJM Interconnection, LLC applies
2            the Minimum Offer Price Rule to participating
3            carbon-free energy resources because they supply
4            carbon mitigation credits pursuant to this Section
5            at which time, upon notice by the carbon-free
6            energy resource to the Commission and subject to
7            the Commission's confirmation, the value under
8            this subitem shall be zero, as further described
9            in the carbon mitigation credit procurement plan;
10            and
11                (III) any value of monetized federal tax
12            credits, direct payments, or similar subsidy
13            provided to the carbon-free energy resource from
14            any unit of government that is not already
15            reflected in energy prices.
16            If the price-per-megawatt-hour calculation
17        performed under item (iii) of this subparagraph (C)
18        for a given delivery year results in a net positive
19        value, then the electric utility counterparty to the
20        contract shall multiply such net value by the
21        applicable contract quantity and remit the amount to
22        the supplier.
23            To protect retail customers from retail rate
24        impacts that may arise upon the initiation of carbon
25        policy changes, if the price-per-megawatt-hour
26        calculation performed under item (iii) of this

 

 

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1        subparagraph (C) for a given delivery year results in
2        a net negative value, then the supplier counterparty
3        to the contract shall multiply such net value by the
4        applicable contract quantity and remit such amount to
5        the electric utility counterparty. The electric
6        utility shall reflect such amounts remitted by
7        suppliers as a credit on its retail customer bills as
8        soon as practicable.
9            (iv) To ensure that retail customers in Northern
10        Illinois do not pay more for carbon mitigation credits
11        than the value such credits provide, and
12        notwithstanding the provisions of this subsection
13        (d-10), the Agency shall not accept bids for contracts
14        that exceed a customer protection cap equal to the
15        baseline costs of carbon-free energy resources.
16            The baseline costs for the applicable year shall
17        be the following:
18                (I) For the delivery year beginning June 1,
19            2022, the baseline costs shall be an amount equal
20            to $30.30 per megawatt-hour.
21                (II) For the delivery year beginning June 1,
22            2023, the baseline costs shall be an amount equal
23            to $32.50 per megawatt-hour.
24                (III) For the delivery year beginning June 1,
25            2024, the baseline costs shall be an amount equal
26            to $33.43 per megawatt-hour.

 

 

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1                (IV) For the delivery year beginning June 1,
2            2025, the baseline costs shall be an amount equal
3            to $33.50 per megawatt-hour.
4                (V) For the delivery year beginning June 1,
5            2026, the baseline costs shall be an amount equal
6            to $34.50 per megawatt-hour.
7            An Environmental Protection Agency consultant
8        forecast, included in a report issued April 14, 2021,
9        projects that a carbon-free energy resource has the
10        opportunity to earn on average approximately $30.28
11        per megawatt-hour, for the sale of energy and capacity
12        during the time period between 2022 and 2027.
13        Therefore, the sale of carbon mitigation credits
14        provides the opportunity to receive an additional
15        amount per megawatt-hour in addition to the projected
16        prices for energy and capacity.
17            Although actual energy and capacity prices may
18        vary from year-to-year, the General Assembly finds
19        that this customer protection cap will help ensure
20        that the cost of carbon mitigation credits will be
21        less than its value, based upon the social cost of
22        carbon identified in the Technical Support Document
23        issued in February 2021 by the U.S. Interagency
24        Working Group on Social Cost of Greenhouse Gases and
25        the PJM Interconnection, LLC carbon dioxide marginal
26        emission rate for 2020, and that a carbon-free energy

 

 

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1        resource receiving payment for carbon mitigation
2        credits receives no more than necessary to keep those
3        units in operation.
4        (D) No later than 7 days after the effective date of
5    this amendatory Act of the 102nd General Assembly, the
6    Agency shall publish its proposed carbon mitigation credit
7    procurement plan. The Plan shall provide that winning bids
8    shall be selected by taking into consideration which
9    resources best match public interest criteria that
10    include, but are not limited to, minimizing carbon dioxide
11    emissions that result from electricity consumed in
12    Illinois and minimizing sulfur dioxide, nitrogen oxide,
13    and particulate matter emissions that adversely affect the
14    citizens of this State. The selection of winning bids
15    shall also take into account the incremental environmental
16    benefits resulting from the procurement or procurements,
17    such as any existing environmental benefits that are
18    preserved by a procurement held under this subsection
19    (d-10) and would cease to exist if the procurement were
20    not held, including the preservation of carbon-free energy
21    resources. For those bidders having the same public
22    interest criteria score, the relative ranking of such
23    bidders shall be determined by price. The Plan shall
24    describe in detail how each public interest factor shall
25    be considered and weighted in the bid selection process to
26    ensure that the public interest criteria are applied to

 

 

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1    the procurement. The Plan shall, to the extent practical
2    and permissible by federal law, ensure that successful
3    bidders make commercially reasonable efforts to apply for
4    federal tax credits, direct payments, or similar subsidy
5    programs that support carbon-free generation and for which
6    the successful bidder is eligible. Upon publishing of the
7    carbon mitigation credit procurement plan, copies of the
8    plan shall be posted and made publicly available on the
9    Agency's website. All interested parties shall have 7 days
10    following the date of posting to provide comment to the
11    Agency on the plan. All comments shall be posted to the
12    Agency's website. Following the end of the comment period,
13    but no more than 19 days later than the effective date of
14    this amendatory Act of the 102nd General Assembly, the
15    Agency shall revise the plan as necessary based on the
16    comments received and file its carbon mitigation credit
17    procurement plan with the Commission.
18        (E) If the Commission determines that the plan is
19    likely to result in the procurement of cost-effective
20    carbon mitigation credits, then the Commission shall,
21    after notice and hearing and opportunity for comment, but
22    no later than 42 days after the Agency filed the plan,
23    approve the plan or approve it with modification. For
24    purposes of this subsection (d-10), "cost-effective" means
25    carbon mitigation credits that are procured from
26    carbon-free energy resources at prices that are within the

 

 

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1    limits specified in this paragraph (3). As part of the
2    Commission's review and acceptance or rejection of the
3    procurement results, the Commission shall, in its public
4    notice of successful bidders:
5            (i) identify how the selected carbon-free energy
6        resources satisfy the public interest criteria
7        described in this paragraph (3) of minimizing carbon
8        dioxide emissions that result from electricity
9        consumed in Illinois and minimizing sulfur dioxide,
10        nitrogen oxide, and particulate matter emissions that
11        adversely affect the citizens of this State;
12            (ii) specifically address how the selection of
13        carbon-free energy resources takes into account the
14        incremental environmental benefits resulting from the
15        procurement, including any existing environmental
16        benefits that are preserved by the procurements held
17        under this amendatory Act of the 102nd General
18        Assembly and would have ceased to exist if the
19        procurements had not been held, such as the
20        preservation of carbon-free energy resources;
21            (iii) quantify the environmental benefit of
22        preserving the carbon-free energy resources procured
23        pursuant to this subsection (d-10), including the
24        following:
25                (I) an assessment value of avoided greenhouse
26            gas emissions measured as the product of the

 

 

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1            carbon-free energy resources' output over the
2            contract term, using generally accepted
3            methodologies for the valuation of avoided
4            emissions; and
5                (II) an assessment of costs of replacement
6            with other carbon-free energy resources and
7            renewable energy resources, including wind and
8            photovoltaic generation, based upon an assessment
9            of the prices paid for renewable energy credits
10            through programs and procurements conducted
11            pursuant to subsection (c) of Section 1-75 of this
12            Act, and the additional storage necessary to
13            produce the same or similar capability of matching
14            customer usage patterns.
15        (F) The procurements described in this paragraph (3),
16    including, but not limited to, the execution of all
17    contracts procured, shall be completed no later than
18    December 3, 2021. The procurement and plan approval
19    processes required by this paragraph (3) shall be
20    conducted in conjunction with the procurement and plan
21    approval processes required by Section 16-111.5 of the
22    Public Utilities Act, to the extent practicable. However,
23    the Agency and Commission may, as appropriate, modify the
24    various dates and timelines under this subparagraph and
25    subparagraphs (D) and (E) of this paragraph (3) to meet
26    the December 3, 2021 contract execution deadline.

 

 

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1    Following the completion of such procurements, and
2    consistent with this paragraph (3), the Agency shall
3    calculate the payments to be made under each contract in a
4    timely fashion.
5        (F-1) Costs incurred by the electric utility pursuant
6    to a contract authorized by this subsection (d-10) shall
7    be deemed prudently incurred and reasonable in amount, and
8    the electric utility shall be entitled to full cost
9    recovery pursuant to a tariff or tariffs filed with the
10    Commission.
11        (G) The counterparty electric utility shall retire all
12    carbon mitigation credits used to comply with the
13    requirements of this subsection (d-10).
14        (H) If a carbon-free energy resource is sold to
15    another owner, the rights, obligations, and commitments
16    under this subsection (d-10) shall continue to the
17    subsequent owner.
18        (I) This subsection (d-10) shall become inoperative on
19    January 1, 2028.
20    (e) The draft procurement plans are subject to public
21comment, as required by Section 16-111.5 of the Public
22Utilities Act.
23    (f) The Agency shall submit the final procurement plan to
24the Commission. The Agency shall revise a procurement plan if
25the Commission determines that it does not meet the standards
26set forth in Section 16-111.5 of the Public Utilities Act.

 

 

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1    (g) The Agency shall assess fees to each affected utility
2to recover the costs incurred in preparation of the annual
3procurement plan for the utility.
4    (h) The Agency shall assess fees to each bidder to recover
5the costs incurred in connection with a competitive
6procurement process.
7    (i) A renewable energy credit, carbon emission credit,
8zero emission credit, or carbon mitigation credit can only be
9used once to comply with a single portfolio or other standard
10as set forth in subsection (c), subsection (d), or subsection
11(d-5) of this Section, respectively. A renewable energy
12credit, carbon emission credit, zero emission credit, or
13carbon mitigation credit cannot be used to satisfy the
14requirements of more than one standard. If more than one type
15of credit is issued for the same megawatt hour of energy, only
16one credit can be used to satisfy the requirements of a single
17standard. After such use, the credit must be retired together
18with any other credits issued for the same megawatt hour of
19energy.
20(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
21103-580, eff. 12-8-23.)
 
22    Section 10. The Public Utilities Act is amended by
23changing Sections 16-108 and 16-111.5 as follows:
 
24    (220 ILCS 5/16-108)

 

 

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1    Sec. 16-108. Recovery of costs associated with the
2provision of delivery and other services.
3    (a) An electric utility shall file a delivery services
4tariff with the Commission at least 210 days prior to the date
5that it is required to begin offering such services pursuant
6to this Act. An electric utility shall provide the components
7of delivery services that are subject to the jurisdiction of
8the Federal Energy Regulatory Commission at the same prices,
9terms and conditions set forth in its applicable tariff as
10approved or allowed into effect by that Commission. The
11Commission shall otherwise have the authority pursuant to
12Article IX to review, approve, and modify the prices, terms
13and conditions of those components of delivery services not
14subject to the jurisdiction of the Federal Energy Regulatory
15Commission, including the authority to determine the extent to
16which such delivery services should be offered on an unbundled
17basis. In making any such determination the Commission shall
18consider, at a minimum, the effect of additional unbundling on
19(i) the objective of just and reasonable rates, (ii) electric
20utility employees, and (iii) the development of competitive
21markets for electric energy services in Illinois.
22    (b) The Commission shall enter an order approving, or
23approving as modified, the delivery services tariff no later
24than 30 days prior to the date on which the electric utility
25must commence offering such services. The Commission may
26subsequently modify such tariff pursuant to this Act.

 

 

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1    (c) The electric utility's tariffs shall define the
2classes of its customers for purposes of delivery services
3charges. Delivery services shall be priced and made available
4to all retail customers electing delivery services in each
5such class on a nondiscriminatory basis regardless of whether
6the retail customer chooses the electric utility, an affiliate
7of the electric utility, or another entity as its supplier of
8electric power and energy. Charges for delivery services shall
9be cost based, and shall allow the electric utility to recover
10the costs of providing delivery services through its charges
11to its delivery service customers that use the facilities and
12services associated with such costs. Such costs shall include
13the costs of owning, operating and maintaining transmission
14and distribution facilities. The Commission shall also be
15authorized to consider whether, and if so to what extent, the
16following costs are appropriately included in the electric
17utility's delivery services rates: (i) the costs of that
18portion of generation facilities used for the production and
19absorption of reactive power in order that retail customers
20located in the electric utility's service area can receive
21electric power and energy from suppliers other than the
22electric utility, and (ii) the costs associated with the use
23and redispatch of generation facilities to mitigate
24constraints on the transmission or distribution system in
25order that retail customers located in the electric utility's
26service area can receive electric power and energy from

 

 

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1suppliers other than the electric utility. Nothing in this
2subsection shall be construed as directing the Commission to
3allocate any of the costs described in (i) or (ii) that are
4found to be appropriately included in the electric utility's
5delivery services rates to any particular customer group or
6geographic area in setting delivery services rates.
7    (d) The Commission shall establish charges, terms and
8conditions for delivery services that are just and reasonable
9and shall take into account customer impacts when establishing
10such charges. In establishing charges, terms and conditions
11for delivery services, the Commission shall take into account
12voltage level differences. A retail customer shall have the
13option to request to purchase electric service at any delivery
14service voltage reasonably and technically feasible from the
15electric facilities serving that customer's premises provided
16that there are no significant adverse impacts upon system
17reliability or system efficiency. A retail customer shall also
18have the option to request to purchase electric service at any
19point of delivery that is reasonably and technically feasible
20provided that there are no significant adverse impacts on
21system reliability or efficiency. Such requests shall not be
22unreasonably denied.
23    (e) Electric utilities shall recover the costs of
24installing, operating or maintaining facilities for the
25particular benefit of one or more delivery services customers,
26including without limitation any costs incurred in complying

 

 

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1with a customer's request to be served at a different voltage
2level, directly from the retail customer or customers for
3whose benefit the costs were incurred, to the extent such
4costs are not recovered through the charges referred to in
5subsections (c) and (d) of this Section.
6    (f) An electric utility shall be entitled but not required
7to implement transition charges in conjunction with the
8offering of delivery services pursuant to Section 16-104. If
9an electric utility implements transition charges, it shall
10implement such charges for all delivery services customers and
11for all customers described in subsection (h), but shall not
12implement transition charges for power and energy that a
13retail customer takes from cogeneration or self-generation
14facilities located on that retail customer's premises, if such
15facilities meet the following criteria:
16        (i) the cogeneration or self-generation facilities
17    serve a single retail customer and are located on that
18    retail customer's premises (for purposes of this
19    subparagraph and subparagraph (ii), an industrial or
20    manufacturing retail customer and a third party contractor
21    that is served by such industrial or manufacturing
22    customer through such retail customer's own electrical
23    distribution facilities under the circumstances described
24    in subsection (vi) of the definition of "alternative
25    retail electric supplier" set forth in Section 16-102,
26    shall be considered a single retail customer);

 

 

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1        (ii) the cogeneration or self-generation facilities
2    either (A) are sized pursuant to generally accepted
3    engineering standards for the retail customer's electrical
4    load at that premises (taking into account standby or
5    other reliability considerations related to that retail
6    customer's operations at that site) or (B) if the facility
7    is a cogeneration facility located on the retail
8    customer's premises, the retail customer is the thermal
9    host for that facility and the facility has been designed
10    to meet that retail customer's thermal energy requirements
11    resulting in electrical output beyond that retail
12    customer's electrical demand at that premises, comply with
13    the operating and efficiency standards applicable to
14    "qualifying facilities" specified in title 18 Code of
15    Federal Regulations Section 292.205 as in effect on the
16    effective date of this amendatory Act of 1999;
17        (iii) the retail customer on whose premises the
18    facilities are located either has an exclusive right to
19    receive, and corresponding obligation to pay for, all of
20    the electrical capacity of the facility, or in the case of
21    a cogeneration facility that has been designed to meet the
22    retail customer's thermal energy requirements at that
23    premises, an identified amount of the electrical capacity
24    of the facility, over a minimum 5-year period; and
25        (iv) if the cogeneration facility is sized for the
26    retail customer's thermal load at that premises but

 

 

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1    exceeds the electrical load, any sales of excess power or
2    energy are made only at wholesale, are subject to the
3    jurisdiction of the Federal Energy Regulatory Commission,
4    and are not for the purpose of circumventing the
5    provisions of this subsection (f).
6If a generation facility located at a retail customer's
7premises does not meet the above criteria, an electric utility
8implementing transition charges shall implement a transition
9charge until December 31, 2006 for any power and energy taken
10by such retail customer from such facility as if such power and
11energy had been delivered by the electric utility. Provided,
12however, that an industrial retail customer that is taking
13power from a generation facility that does not meet the above
14criteria but that is located on such customer's premises will
15not be subject to a transition charge for the power and energy
16taken by such retail customer from such generation facility if
17the facility does not serve any other retail customer and
18either was installed on behalf of the customer and for its own
19use prior to January 1, 1997, or is both predominantly fueled
20by byproducts of such customer's manufacturing process at such
21premises and sells or offers an average of 300 megawatts or
22more of electricity produced from such generation facility
23into the wholesale market. Such charges shall be calculated as
24provided in Section 16-102, and shall be collected on each
25kilowatt-hour delivered under a delivery services tariff to a
26retail customer from the date the customer first takes

 

 

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1delivery services until December 31, 2006 except as provided
2in subsection (h) of this Section. Provided, however, that an
3electric utility, other than an electric utility providing
4service to at least 1,000,000 customers in this State on
5January 1, 1999, shall be entitled to petition for entry of an
6order by the Commission authorizing the electric utility to
7implement transition charges for an additional period ending
8no later than December 31, 2008. The electric utility shall
9file its petition with supporting evidence no earlier than 16
10months, and no later than 12 months, prior to December 31,
112006. The Commission shall hold a hearing on the electric
12utility's petition and shall enter its order no later than 8
13months after the petition is filed. The Commission shall
14determine whether and to what extent the electric utility
15shall be authorized to implement transition charges for an
16additional period. The Commission may authorize the electric
17utility to implement transition charges for some or all of the
18additional period, and shall determine the mitigation factors
19to be used in implementing such transition charges; provided,
20that the Commission shall not authorize mitigation factors
21less than 110% of those in effect during the 12 months ended
22December 31, 2006. In making its determination, the Commission
23shall consider the following factors: the necessity to
24implement transition charges for an additional period in order
25to maintain the financial integrity of the electric utility;
26the prudence of the electric utility's actions in reducing its

 

 

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1costs since the effective date of this amendatory Act of 1997;
2the ability of the electric utility to provide safe, adequate
3and reliable service to retail customers in its service area;
4and the impact on competition of allowing the electric utility
5to implement transition charges for the additional period.
6    (g) The electric utility shall file tariffs that establish
7the transition charges to be paid by each class of customers to
8the electric utility in conjunction with the provision of
9delivery services. The electric utility's tariffs shall define
10the classes of its customers for purposes of calculating
11transition charges. The electric utility's tariffs shall
12provide for the calculation of transition charges on a
13customer-specific basis for any retail customer whose average
14monthly maximum electrical demand on the electric utility's
15system during the 6 months with the customer's highest monthly
16maximum electrical demands equals or exceeds 3.0 megawatts for
17electric utilities having more than 1,000,000 customers, and
18for other electric utilities for any customer that has an
19average monthly maximum electrical demand on the electric
20utility's system of one megawatt or more, and (A) for which
21there exists data on the customer's usage during the 3 years
22preceding the date that the customer became eligible to take
23delivery services, or (B) for which there does not exist data
24on the customer's usage during the 3 years preceding the date
25that the customer became eligible to take delivery services,
26if in the electric utility's reasonable judgment there exists

 

 

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1comparable usage information or a sufficient basis to develop
2such information, and further provided that the electric
3utility can require customers for which an individual
4calculation is made to sign contracts that set forth the
5transition charges to be paid by the customer to the electric
6utility pursuant to the tariff.
7    (h) An electric utility shall also be entitled to file
8tariffs that allow it to collect transition charges from
9retail customers in the electric utility's service area that
10do not take delivery services but that take electric power or
11energy from an alternative retail electric supplier or from an
12electric utility other than the electric utility in whose
13service area the customer is located. Such charges shall be
14calculated, in accordance with the definition of transition
15charges in Section 16-102, for the period of time that the
16customer would be obligated to pay transition charges if it
17were taking delivery services, except that no deduction for
18delivery services revenues shall be made in such calculation,
19and usage data from the customer's class shall be used where
20historical usage data is not available for the individual
21customer. The customer shall be obligated to pay such charges
22on a lump sum basis on or before the date on which the customer
23commences to take service from the alternative retail electric
24supplier or other electric utility, provided, that the
25electric utility in whose service area the customer is located
26shall offer the customer the option of signing a contract

 

 

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1pursuant to which the customer pays such charges ratably over
2the period in which the charges would otherwise have applied.
3    (i) An electric utility shall be entitled to add to the
4bills of delivery services customers charges pursuant to
5Sections 9-221, 9-222 (except as provided in Section 9-222.1),
6and Section 16-114 of this Act, Section 5-5 of the Electricity
7Infrastructure Maintenance Fee Law, Section 6-5 of the
8Renewable Energy, Energy Efficiency, and Coal Resources
9Development Law of 1997, and Section 13 of the Energy
10Assistance Act.
11    (i-5) An electric utility required to impose the Coal to
12Solar and Energy Storage Initiative Charge provided for in
13subsection (c-5) of Section 1-75 of the Illinois Power Agency
14Act shall add such charge to the bills of its delivery services
15customers pursuant to the terms of a tariff conforming to the
16requirements of subsection (c-5) of Section 1-75 of the
17Illinois Power Agency Act and this subsection (i-5) and filed
18with and approved by the Commission. The electric utility
19shall file its proposed tariff with the Commission on or
20before July 1, 2022 to be effective, after review and approval
21or modification by the Commission, beginning January 1, 2023.
22On or before December 1, 2022, the Commission shall review the
23electric utility's proposed tariff, including by conducting a
24docketed proceeding if deemed necessary by the Commission, and
25shall approve the proposed tariff or direct the electric
26utility to make modifications the Commission finds necessary

 

 

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1for the tariff to conform to the requirements of subsection
2(c-5) of Section 1-75 of the Illinois Power Agency Act and this
3subsection (i-5). The electric utility's tariff shall provide
4for imposition of the Coal to Solar and Energy Storage
5Initiative Charge on a per-kilowatthour basis to all
6kilowatthours delivered by the electric utility to its
7delivery services customers. The tariff shall provide for the
8calculation of the Coal to Solar and Energy Storage Initiative
9Charge to be in effect for the year beginning January 1, 2023
10and each year beginning January 1 thereafter, sufficient to
11collect the electric utility's estimated payment obligations
12for the delivery year beginning the following June 1 under
13contracts for purchase of renewable energy credits entered
14into pursuant to subsection (c-5) of Section 1-75 of the
15Illinois Power Agency Act and the obligations of the
16Department of Commerce and Economic Opportunity, or any
17successor department or agency, which for purposes of this
18subsection (i-5) shall be referred to as the Department, to
19make grant payments during such delivery year from the Coal to
20Solar and Energy Storage Initiative Fund pursuant to grant
21contracts entered into pursuant to subsection (c-5) of Section
221-75 of the Illinois Power Agency Act, and using the electric
23utility's kilowatthour deliveries to its delivery services
24customers during the delivery year ended May 31 of the
25preceding calendar year. On or before November 1 of each year
26beginning November 1, 2022, the Department shall notify the

 

 

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1electric utilities of the amount of the Department's estimated
2obligations for grant payments during the delivery year
3beginning the following June 1 pursuant to grant contracts
4entered into pursuant to subsection (c-5) of Section 1-75 of
5the Illinois Power Agency Act; and each electric utility shall
6incorporate in the calculation of its Coal to Solar and Energy
7Storage Initiative Charge the fractional portion of the
8Department's estimated obligations equal to the electric
9utility's kilowatthour deliveries to its delivery services
10customers in the delivery year ended the preceding May 31
11divided by the aggregate deliveries of both electric utilities
12to delivery services customers in such delivery year. The
13electric utility shall remit on a monthly basis to the State
14Treasurer, for deposit in the Coal to Solar and Energy Storage
15Initiative Fund provided for in subsection (c-5) of Section
161-75 of the Illinois Power Agency Act, the electric utility's
17collections of the Coal to Solar and Energy Storage Initiative
18Charge estimated to be needed by the Department for grant
19payments pursuant to grant contracts entered into pursuant to
20subsection (c-5) of Section 1-75 of the Illinois Power Agency
21Act. The initial charge under the electric utility's tariff
22shall be effective for kilowatthours delivered beginning
23January 1, 2023, and thereafter shall be revised to be
24effective January 1, 2024 and each January 1 thereafter, based
25on the payment obligations for the delivery year beginning the
26following June 1. The tariff shall provide for the electric

 

 

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1utility to make an annual filing with the Commission on or
2before November 15 of each year, beginning in 2023, setting
3forth the Coal to Solar and Energy Storage Initiative Charge
4to be in effect for the year beginning the following January 1.
5The electric utility's tariff shall also provide that the
6electric utility shall make a filing with the Commission on or
7before August 1 of each year beginning in 2024 setting forth a
8reconciliation, for the delivery year ended the preceding May
931, of the electric utility's collections of the Coal to Solar
10and Energy Storage Initiative Charge against actual payments
11for renewable energy credits pursuant to contracts entered
12into, and the actual grant payments by the Department pursuant
13to grant contracts entered into, pursuant to subsection (c-5)
14of Section 1-75 of the Illinois Power Agency Act. The tariff
15shall provide that any excess or shortfall of collections to
16payments shall be deducted from or added to, on a
17per-kilowatthour basis, the Coal to Solar and Energy Storage
18Initiative Charge, over the 6-month period beginning October 1
19of that calendar year.
20    (i-7) The electric utility shall be entitled to recover
21through tariffed charges all of the costs associated with
22payment under contracts for purchase of high voltage direct
23current renewable energy credits entered into pursuant to
24subsection (c-7) of Section 1-75 of the Illinois Power Agency
25Act. An electric utility required to impose the dispatchable
26and reliable renewable energy charge provided for in

 

 

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1subsection (c-7) of Section 1-75 of the Illinois Power Agency
2Act shall add such charge to the bills of its delivery services
3customers pursuant to the terms of a tariff conforming to the
4requirements of subsection (c-7) of Section 1-75 of the
5Illinois Power Agency Act and this subsection (i-7) and filed
6with and approved by the Commission. The electric utility
7shall file its proposed tariff with the Commission on or
8before February 1, 2025 to be effective, after review and
9approval or modification by the Commission, beginning January
101, 2026. On or before January 1, 2026, the Commission shall
11review the electric utility's proposed tariff, including by
12conducting a docketed proceeding if deemed necessary by the
13Commission, and shall approve the proposed tariff or direct
14the electric utility to make modifications the Commission
15finds necessary for the tariff to conform to the requirements
16of subsection (c-7) of Section 1-75 of the Illinois Power
17Agency Act and this subsection (i-7). The electric utility's
18tariff shall provide for imposition of the Dispatchable and
19Reliable Renewable Energy Charge on a per-kilowatthour basis
20to all kilowatthours delivered by the electric utility to its
21delivery services customers. The tariff shall provide for the
22calculation of the dispatchable and reliable renewable energy
23charge to be in effect for the year beginning January 1, 2025
24and each year beginning January 1 thereafter, sufficient to
25collect the electric utility's estimated payment obligations
26for the delivery year beginning the following June 1 under

 

 

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1contracts for purchase of high voltage direct current
2renewable energy credits entered into pursuant to subsection
3(c-7) of Section 1-75 of the Illinois Power Agency Act. The
4tariff shall provide that any excess or shortfall of
5collections to payments shall be deducted from or added to, on
6a per-kilowatthour basis, the dispatchable and reliable
7renewable energy charge, over the 6-month period beginning
8October 1 of that calendar year.
9    (j) If a retail customer that obtains electric power and
10energy from cogeneration or self-generation facilities
11installed for its own use on or before January 1, 1997,
12subsequently takes service from an alternative retail electric
13supplier or an electric utility other than the electric
14utility in whose service area the customer is located for any
15portion of the customer's electric power and energy
16requirements formerly obtained from those facilities
17(including that amount purchased from the utility in lieu of
18such generation and not as standby power purchases, under a
19cogeneration displacement tariff in effect as of the effective
20date of this amendatory Act of 1997), the transition charges
21otherwise applicable pursuant to subsections (f), (g), or (h)
22of this Section shall not be applicable in any year to that
23portion of the customer's electric power and energy
24requirements formerly obtained from those facilities,
25provided, that for purposes of this subsection (j), such
26portion shall not exceed the average number of kilowatt-hours

 

 

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1per year obtained from the cogeneration or self-generation
2facilities during the 3 years prior to the date on which the
3customer became eligible for delivery services, except as
4provided in subsection (f) of Section 16-110.
5    (k) The electric utility shall be entitled to recover
6through tariffed charges all of the costs associated with the
7purchase of zero emission credits from zero emission
8facilities to meet the requirements of subsection (d-5) of
9Section 1-75 of the Illinois Power Agency Act and all of the
10costs associated with the purchase of carbon mitigation
11credits from carbon-free energy resources to meet the
12requirements of subsection (d-10) of Section 1-75 of the
13Illinois Power Agency Act. Such costs shall include the costs
14of procuring the zero emission credits and carbon mitigation
15credits from carbon-free energy resources, as well as the
16reasonable costs that the utility incurs as part of the
17procurement processes and to implement and comply with plans
18and processes approved by the Commission under subsections
19(d-5) and (d-10). The costs shall be allocated across all
20retail customers through a single, uniform cents per
21kilowatt-hour charge applicable to all retail customers, which
22shall appear as a separate line item on each customer's bill.
23Beginning June 1, 2017, the electric utility shall be entitled
24to recover through tariffed charges all of the costs
25associated with the purchase of renewable energy resources to
26meet the renewable energy resource standards of subsection (c)

 

 

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1of Section 1-75 of the Illinois Power Agency Act, under
2procurement plans as approved in accordance with that Section
3and Section 16-111.5 of this Act. Such costs shall include the
4costs of procuring the renewable energy resources, as well as
5the reasonable costs that the utility incurs as part of the
6procurement processes and to implement and comply with plans
7and processes approved by the Commission under such Sections.
8The costs associated with the purchase of renewable energy
9resources shall be allocated across all retail customers in
10proportion to the amount of renewable energy resources the
11utility procures for such customers through a single, uniform
12cents per kilowatt-hour charge applicable to such retail
13customers, which shall appear as a separate line item on each
14such customer's bill. The credits, costs, and penalties
15associated with the self-direct renewable portfolio standard
16compliance program described in subparagraph (R) of paragraph
17(1) of subsection (c) of Section 1-75 of the Illinois Power
18Agency Act shall be allocated to approved eligible self-direct
19customers by the utility in a cents per kilowatt-hour credit,
20cost, or penalty, which shall appear as a separate line item on
21each such customer's bill.
22    Notwithstanding whether the Commission has approved the
23initial long-term renewable resources procurement plan as of
24June 1, 2017, an electric utility shall place new tariffed
25charges into effect beginning with the June 2017 monthly
26billing period, to the extent practicable, to begin recovering

 

 

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1the costs of procuring renewable energy resources, as those
2charges are calculated under the limitations described in
3subparagraph (E) of paragraph (1) of subsection (c) of Section
41-75 of the Illinois Power Agency Act. Notwithstanding the
5date on which the utility places such new tariffed charges
6into effect, the utility shall be permitted to collect the
7charges under such tariff as if the tariff had been in effect
8beginning with the first day of the June 2017 monthly billing
9period. For the delivery years commencing June 1, 2017, June
101, 2018, June 1, 2019, and each delivery year thereafter, the
11electric utility shall deposit into a separate interest
12bearing account of a financial institution the monies
13collected under the tariffed charges. Money collected from
14customers for the procurement of renewable energy resources in
15a given delivery year may be spent by the utility for the
16procurement of renewable resources over any of the following 5
17delivery years, after which unspent money shall be credited
18back to retail customers. The electric utility shall spend all
19money collected in earlier delivery years that has not yet
20been returned to customers, first, before spending money
21collected in later delivery years. Any interest earned shall
22be credited back to retail customers under the reconciliation
23proceeding provided for in this subsection (k), provided that
24the electric utility shall first be reimbursed from the
25interest for the administrative costs that it incurs to
26administer and manage the account. Any taxes due on the funds

 

 

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1in the account, or interest earned on it, will be paid from the
2account or, if insufficient monies are available in the
3account, from the monies collected under the tariffed charges
4to recover the costs of procuring renewable energy resources.
5Monies deposited in the account shall be subject to the
6review, reconciliation, and true-up process described in this
7subsection (k) that is applicable to the funds collected and
8costs incurred for the procurement of renewable energy
9resources.
10    The electric utility shall be entitled to recover all of
11the costs identified in this subsection (k) through automatic
12adjustment clause tariffs applicable to all of the utility's
13retail customers that allow the electric utility to adjust its
14tariffed charges consistent with this subsection (k). The
15determination as to whether any excess funds were collected
16during a given delivery year for the purchase of renewable
17energy resources, and the crediting of any excess funds back
18to retail customers, shall not be made until after the close of
19the delivery year, which will ensure that the maximum amount
20of funds is available to implement the approved long-term
21renewable resources procurement plan during a given delivery
22year. The amount of excess funds eligible to be credited back
23to retail customers shall be reduced by an amount equal to the
24payment obligations required by any contracts entered into by
25an electric utility under contracts described in subsection
26(b) of Section 1-56 and subsection (c) of Section 1-75 of the

 

 

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1Illinois Power Agency Act, even if such payments have not yet
2been made and regardless of the delivery year in which those
3payment obligations were incurred. Notwithstanding anything to
4the contrary, including in tariffs authorized by this
5subsection (k) in effect before the effective date of this
6amendatory Act of the 102nd General Assembly, all unspent
7funds as of May 31, 2021, excluding any funds credited to
8customers during any utility billing cycle that commences
9prior to the effective date of this amendatory Act of the 102nd
10General Assembly, shall remain in the utility account and
11shall on a first in, first out basis be used toward utility
12payment obligations under contracts described in subsection
13(b) of Section 1-56 and subsection (c) of Section 1-75 of the
14Illinois Power Agency Act. The electric utility's collections
15under such automatic adjustment clause tariffs to recover the
16costs of renewable energy resources, zero emission credits
17from zero emission facilities, and carbon mitigation credits
18from carbon-free energy resources shall be subject to separate
19annual review, reconciliation, and true-up against actual
20costs by the Commission under a procedure that shall be
21specified in the electric utility's automatic adjustment
22clause tariffs and that shall be approved by the Commission in
23connection with its approval of such tariffs. The procedure
24shall provide that any difference between the electric
25utility's collections for zero emission credits and carbon
26mitigation credits under the automatic adjustment charges for

 

 

HB5514- 237 -LRB103 39335 CES 69496 b

1an annual period and the electric utility's actual costs of
2zero emission credits from zero emission facilities and carbon
3mitigation credits from carbon-free energy resources for that
4same annual period shall be refunded to or collected from, as
5applicable, the electric utility's retail customers in
6subsequent periods.
7    Nothing in this subsection (k) is intended to affect,
8limit, or change the right of the electric utility to recover
9the costs associated with the procurement of renewable energy
10resources for periods commencing before, on, or after June 1,
112017, as otherwise provided in the Illinois Power Agency Act.
12    The funding available under this subsection (k), if any,
13for the programs described under subsection (b) of Section
141-56 of the Illinois Power Agency Act shall not reduce the
15amount of funding for the programs described in subparagraph
16(O) of paragraph (1) of subsection (c) of Section 1-75 of the
17Illinois Power Agency Act. If funding is available under this
18subsection (k) for programs described under subsection (b) of
19Section 1-56 of the Illinois Power Agency Act, then the
20long-term renewable resources plan shall provide for the
21Agency to procure contracts in an amount that does not exceed
22the funding, and the contracts approved by the Commission
23shall be executed by the applicable utility or utilities.
24    (l) A utility that has terminated any contract executed
25under subsection (d-5) or (d-10) of Section 1-75 of the
26Illinois Power Agency Act shall be entitled to recover any

 

 

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1remaining balance associated with the purchase of zero
2emission credits prior to such termination, and such utility
3shall also apply a credit to its retail customer bills in the
4event of any over-collection.
5    (m)(1) An electric utility that recovers its costs of
6procuring zero emission credits from zero emission facilities
7through a cents-per-kilowatthour charge under subsection (k)
8of this Section shall be subject to the requirements of this
9subsection (m). Notwithstanding anything to the contrary, such
10electric utility shall, beginning on April 30, 2018, and each
11April 30 thereafter until April 30, 2026, calculate whether
12any reduction must be applied to such cents-per-kilowatthour
13charge that is paid by retail customers of the electric
14utility that have opted out of subsections (a) through (j) of
15Section 8-103B of this Act under subsection (l) of Section
168-103B. Such charge shall be reduced for such customers for
17the next delivery year commencing on June 1 based on the amount
18necessary, if any, to limit the annual estimated average net
19increase for the prior calendar year due to the future energy
20investment costs to no more than 1.3% of 5.98 cents per
21kilowatt-hour, which is the average amount paid per
22kilowatthour for electric service during the year ending
23December 31, 2015 by Illinois industrial retail customers, as
24reported to the Edison Electric Institute.
25    The calculations required by this subsection (m) shall be
26made only once for each year, and no subsequent rate impact

 

 

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1determinations shall be made.
2    (2) For purposes of this Section, "future energy
3investment costs" shall be calculated by subtracting the
4cents-per-kilowatthour charge identified in subparagraph (A)
5of this paragraph (2) from the sum of the
6cents-per-kilowatthour charges identified in subparagraph (B)
7of this paragraph (2):
8        (A) The cents-per-kilowatthour charge identified in
9    the electric utility's tariff placed into effect under
10    Section 8-103 of the Public Utilities Act that, on
11    December 1, 2016, was applicable to those retail customers
12    that have opted out of subsections (a) through (j) of
13    Section 8-103B of this Act under subsection (l) of Section
14    8-103B.
15        (B) The sum of the following cents-per-kilowatthour
16    charges applicable to those retail customers that have
17    opted out of subsections (a) through (j) of Section 8-103B
18    of this Act under subsection (l) of Section 8-103B,
19    provided that if one or more of the following charges has
20    been in effect and applied to such customers for more than
21    one calendar year, then each charge shall be equal to the
22    average of the charges applied over a period that
23    commences with the calendar year ending December 31, 2017
24    and ends with the most recently completed calendar year
25    prior to the calculation required by this subsection (m):
26            (i) the cents-per-kilowatthour charge to recover

 

 

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1        the costs incurred by the utility under subsection
2        (d-5) of Section 1-75 of the Illinois Power Agency
3        Act, adjusted for any reductions required under this
4        subsection (m); and
5            (ii) the cents-per-kilowatthour charge to recover
6        the costs incurred by the utility under Section
7        16-107.6 of the Public Utilities Act.
8        If no charge was applied for a given calendar year
9    under item (i) or (ii) of this subparagraph (B), then the
10    value of the charge for that year shall be zero.
11    (3) If a reduction is required by the calculation
12performed under this subsection (m), then the amount of the
13reduction shall be multiplied by the number of years reflected
14in the averages calculated under subparagraph (B) of paragraph
15(2) of this subsection (m). Such reduction shall be applied to
16the cents-per-kilowatthour charge that is applicable to those
17retail customers that have opted out of subsections (a)
18through (j) of Section 8-103B of this Act under subsection (l)
19of Section 8-103B beginning with the next delivery year
20commencing after the date of the calculation required by this
21subsection (m).
22    (4) The electric utility shall file a notice with the
23Commission on May 1 of 2018 and each May 1 thereafter until May
241, 2026 containing the reduction, if any, which must be
25applied for the delivery year which begins in the year of the
26filing. The notice shall contain the calculations made

 

 

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1pursuant to this Section. By October 1 of each year beginning
2in 2018, each electric utility shall notify the Commission if
3it appears, based on an estimate of the calculation required
4in this subsection (m), that a reduction will be required in
5the next year.
6(Source: P.A. 102-662, eff. 9-15-21.)
 
7    (220 ILCS 5/16-111.5)
8    Sec. 16-111.5. Provisions relating to procurement.
9    (a) An electric utility that on December 31, 2005 served
10at least 100,000 customers in Illinois shall procure power and
11energy for its eligible retail customers in accordance with
12the applicable provisions set forth in Section 1-75 of the
13Illinois Power Agency Act and this Section. Beginning with the
14delivery year commencing on June 1, 2017, such electric
15utility shall also procure zero emission credits from zero
16emission facilities in accordance with the applicable
17provisions set forth in Section 1-75 of the Illinois Power
18Agency Act, and, for years beginning on or after June 1, 2017,
19the utility shall procure renewable energy resources in
20accordance with the applicable provisions set forth in Section
211-75 of the Illinois Power Agency Act and this Section.
22Beginning with the delivery year commencing on June 1, 2022,
23an electric utility serving over 3,000,000 customers shall
24also procure carbon mitigation credits from carbon-free energy
25resources in accordance with the applicable provisions set

 

 

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1forth in Section 1-75 of the Illinois Power Agency Act and this
2Section. A small multi-jurisdictional electric utility that on
3December 31, 2005 served less than 100,000 customers in
4Illinois may elect to procure power and energy for all or a
5portion of its eligible Illinois retail customers in
6accordance with the applicable provisions set forth in this
7Section and Section 1-75 of the Illinois Power Agency Act.
8This Section shall not apply to a small multi-jurisdictional
9utility until such time as a small multi-jurisdictional
10utility requests the Illinois Power Agency to prepare a
11procurement plan for its eligible retail customers. "Eligible
12retail customers" for the purposes of this Section means those
13retail customers that purchase power and energy from the
14electric utility under fixed-price bundled service tariffs,
15other than those retail customers whose service is declared or
16deemed competitive under Section 16-113 and those other
17customer groups specified in this Section, including
18self-generating customers, customers electing hourly pricing,
19or those customers who are otherwise ineligible for
20fixed-price bundled tariff service. For those customers that
21are excluded from the procurement plan's electric supply
22service requirements, and the utility shall procure any supply
23requirements, including capacity, ancillary services, and
24hourly priced energy, in the applicable markets as needed to
25serve those customers, provided that the utility may include
26in its procurement plan load requirements for the load that is

 

 

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1associated with those retail customers whose service has been
2declared or deemed competitive pursuant to Section 16-113 of
3this Act to the extent that those customers are purchasing
4power and energy during one of the transition periods
5identified in subsection (b) of Section 16-113 of this Act.
6    (b) A procurement plan shall be prepared for each electric
7utility consistent with the applicable requirements of the
8Illinois Power Agency Act and this Section. For purposes of
9this Section, Illinois electric utilities that are affiliated
10by virtue of a common parent company are considered to be a
11single electric utility. Small multi-jurisdictional utilities
12may request a procurement plan for a portion of or all of its
13Illinois load. Each procurement plan shall analyze the
14projected balance of supply and demand for those retail
15customers to be included in the plan's electric supply service
16requirements over a 5-year period, with the first planning
17year beginning on June 1 of the year following the year in
18which the plan is filed. The plan shall specifically identify
19the wholesale products to be procured following plan approval,
20and shall follow all the requirements set forth in the Public
21Utilities Act and all applicable State and federal laws,
22statutes, rules, or regulations, as well as Commission orders.
23Nothing in this Section precludes consideration of contracts
24longer than 5 years and related forecast data. Unless
25specified otherwise in this Section, in the procurement plan
26or in the implementing tariff, any procurement occurring in

 

 

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1accordance with this plan shall be competitively bid through a
2request for proposals process. Approval and implementation of
3the procurement plan shall be subject to review and approval
4by the Commission according to the provisions set forth in
5this Section. A procurement plan shall include each of the
6following components:
7        (1) Hourly load analysis. This analysis shall include:
8            (i) multi-year historical analysis of hourly
9        loads;
10            (ii) switching trends and competitive retail
11        market analysis;
12            (iii) known or projected changes to future loads;
13        and
14            (iv) growth forecasts by customer class.
15        (2) Analysis of the impact of any demand side and
16    renewable energy initiatives. This analysis shall include:
17            (i) the impact of demand response programs and
18        energy efficiency programs, both current and
19        projected; for small multi-jurisdictional utilities,
20        the impact of demand response and energy efficiency
21        programs approved pursuant to Section 8-408 of this
22        Act, both current and projected; and
23            (ii) supply side needs that are projected to be
24        offset by purchases of renewable energy resources, if
25        any.
26        (3) A plan for meeting the expected load requirements

 

 

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1    that will not be met through preexisting contracts. This
2    plan shall include:
3            (i) definitions of the different Illinois retail
4        customer classes for which supply is being purchased;
5            (ii) the proposed mix of demand-response products
6        for which contracts will be executed during the next
7        year. For small multi-jurisdictional electric
8        utilities that on December 31, 2005 served fewer than
9        100,000 customers in Illinois, these shall be defined
10        as demand-response products offered in an energy
11        efficiency plan approved pursuant to Section 8-408 of
12        this Act. The cost-effective demand-response measures
13        shall be procured whenever the cost is lower than
14        procuring comparable capacity products, provided that
15        such products shall:
16                (A) be procured by a demand-response provider
17            from those retail customers included in the plan's
18            electric supply service requirements;
19                (B) at least satisfy the demand-response
20            requirements of the regional transmission
21            organization market in which the utility's service
22            territory is located, including, but not limited
23            to, any applicable capacity or dispatch
24            requirements;
25                (C) provide for customers' participation in
26            the stream of benefits produced by the

 

 

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1            demand-response products;
2                (D) provide for reimbursement by the
3            demand-response provider of the utility for any
4            costs incurred as a result of the failure of the
5            supplier of such products to perform its
6            obligations thereunder; and
7                (E) meet the same credit requirements as apply
8            to suppliers of capacity, in the applicable
9            regional transmission organization market;
10            (iii) monthly forecasted system supply
11        requirements, including expected minimum, maximum, and
12        average values for the planning period;
13            (iv) the proposed mix and selection of standard
14        wholesale products for which contracts will be
15        executed during the next year, separately or in
16        combination, to meet that portion of its load
17        requirements not met through pre-existing contracts,
18        including but not limited to monthly 5 x 16 peak period
19        block energy, monthly off-peak wrap energy, monthly 7
20        x 24 energy, annual 5 x 16 energy, other standardized
21        energy or capacity products designed to provide
22        eligible retail customer benefits from commercially
23        deployed advanced technologies including but not
24        limited to high voltage direct current converter
25        stations, as such term is defined in Section 1-10 of
26        the Illinois Power Agency Act, whether or not such

 

 

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1        product is currently available in wholesale markets,
2        annual off-peak wrap energy, annual 7 x 24 energy,
3        monthly capacity, annual capacity, peak load capacity
4        obligations, capacity purchase plan, and ancillary
5        services;
6            (v) proposed term structures for each wholesale
7        product type included in the proposed procurement plan
8        portfolio of products; and
9            (vi) an assessment of the price risk, load
10        uncertainty, and other factors that are associated
11        with the proposed procurement plan; this assessment,
12        to the extent possible, shall include an analysis of
13        the following factors: contract terms, time frames for
14        securing products or services, fuel costs, weather
15        patterns, transmission costs, market conditions, and
16        the governmental regulatory environment; the proposed
17        procurement plan shall also identify alternatives for
18        those portfolio measures that are identified as having
19        significant price risk and mitigation in the form of
20        additional retail customer and ratepayer price,
21        reliability, and environmental benefits from
22        standardized energy products delivered from
23        commercially deployed advanced technologies,
24        including, but not limited to, high voltage direct
25        current converter stations, as such term is defined in
26        Section 1-10 of the Illinois Power Agency Act, whether

 

 

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1        or not such product is currently available in
2        wholesale markets.
3        (4) Proposed procedures for balancing loads. The
4    procurement plan shall include, for load requirements
5    included in the procurement plan, the process for (i)
6    hourly balancing of supply and demand and (ii) the
7    criteria for portfolio re-balancing in the event of
8    significant shifts in load.
9        (5) Long-Term Renewable Resources Procurement Plan.
10    The Agency shall prepare a long-term renewable resources
11    procurement plan for the procurement of renewable energy
12    credits under Sections 1-56 and 1-75 of the Illinois Power
13    Agency Act for delivery beginning in the 2017 delivery
14    year.
15            (i) The initial long-term renewable resources
16        procurement plan and all subsequent revisions shall be
17        subject to review and approval by the Commission. For
18        the purposes of this Section, "delivery year" has the
19        same meaning as in Section 1-10 of the Illinois Power
20        Agency Act. For purposes of this Section, "Agency"
21        shall mean the Illinois Power Agency.
22            (ii) The long-term renewable resources planning
23        process shall be conducted as follows:
24                (A) Electric utilities shall provide a range
25            of load forecasts to the Illinois Power Agency
26            within 45 days of the Agency's request for

 

 

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1            forecasts, which request shall specify the length
2            and conditions for the forecasts including, but
3            not limited to, the quantity of distributed
4            generation expected to be interconnected for each
5            year.
6                (B) The Agency shall publish for comment the
7            initial long-term renewable resources procurement
8            plan no later than 120 days after the effective
9            date of this amendatory Act of the 99th General
10            Assembly and shall review, and may revise, the
11            plan at least every 2 years thereafter. To the
12            extent practicable, the Agency shall review and
13            propose any revisions to the long-term renewable
14            energy resources procurement plan in conjunction
15            with the Agency's other planning and approval
16            processes conducted under this Section. The
17            initial long-term renewable resources procurement
18            plan shall:
19                    (aa) Identify the procurement programs and
20                competitive procurement events consistent with
21                the applicable requirements of the Illinois
22                Power Agency Act and shall be designed to
23                achieve the goals set forth in subsection (c)
24                of Section 1-75 of that Act.
25                    (bb) Include a schedule for procurements
26                for renewable energy credits from

 

 

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1                utility-scale wind projects, utility-scale
2                solar projects, and brownfield site
3                photovoltaic projects consistent with
4                subparagraph (G) of paragraph (1) of
5                subsection (c) of Section 1-75 of the Illinois
6                Power Agency Act.
7                    (cc) Identify the process whereby the
8                Agency will submit to the Commission for
9                review and approval the proposed contracts to
10                implement the programs required by such plan.
11                Copies of the initial long-term renewable
12            resources procurement plan and all subsequent
13            revisions shall be posted and made publicly
14            available on the Agency's and Commission's
15            websites, and copies shall also be provided to
16            each affected electric utility. An affected
17            utility and other interested parties shall have 45
18            days following the date of posting to provide
19            comment to the Agency on the initial long-term
20            renewable resources procurement plan and all
21            subsequent revisions. All comments submitted to
22            the Agency shall be specific, supported by data or
23            other detailed analyses, and, if objecting to all
24            or a portion of the procurement plan, accompanied
25            by specific alternative wording or proposals. All
26            comments shall be posted on the Agency's and

 

 

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1            Commission's websites. During this 45-day comment
2            period, the Agency shall hold at least one public
3            hearing within each utility's service area that is
4            subject to the requirements of this paragraph (5)
5            for the purpose of receiving public comment.
6            Within 21 days following the end of the 45-day
7            review period, the Agency may revise the long-term
8            renewable resources procurement plan based on the
9            comments received and shall file the plan with the
10            Commission for review and approval.
11                (C) Within 14 days after the filing of the
12            initial long-term renewable resources procurement
13            plan or any subsequent revisions, any person
14            objecting to the plan may file an objection with
15            the Commission. Within 21 days after the filing of
16            the plan, the Commission shall determine whether a
17            hearing is necessary. The Commission shall enter
18            its order confirming or modifying the initial
19            long-term renewable resources procurement plan or
20            any subsequent revisions within 120 days after the
21            filing of the plan by the Illinois Power Agency.
22                (D) The Commission shall approve the initial
23            long-term renewable resources procurement plan and
24            any subsequent revisions, including expressly the
25            forecast used in the plan and taking into account
26            that funding will be limited to the amount of

 

 

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1            revenues actually collected by the utilities, if
2            the Commission determines that the plan will
3            reasonably and prudently accomplish the
4            requirements of Section 1-56 and subsection (c) of
5            Section 1-75 of the Illinois Power Agency Act. The
6            Commission shall also approve the process for the
7            submission, review, and approval of the proposed
8            contracts to procure renewable energy credits or
9            implement the programs authorized by the
10            Commission pursuant to a long-term renewable
11            resources procurement plan approved under this
12            Section.
13                In approving any long-term renewable resources
14            procurement plan after the effective date of this
15            amendatory Act of the 102nd General Assembly, the
16            Commission shall approve or modify the Agency's
17            proposal for minimum equity standards pursuant to
18            subsection (c-10) of Section 1-75 of the Illinois
19            Power Agency Act. The Commission shall consider
20            any analysis performed by the Agency in developing
21            its proposal, including past performance,
22            availability of equity eligible contractors, and
23            availability of equity eligible persons at the
24            time the long-term renewable resources procurement
25            plan is approved.
26            (iii) The Agency or third parties contracted by

 

 

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1        the Agency shall implement all programs authorized by
2        the Commission in an approved long-term renewable
3        resources procurement plan without further review and
4        approval by the Commission. Third parties shall not
5        begin implementing any programs or receive any payment
6        under this Section until the Commission has approved
7        the contract or contracts under the process authorized
8        by the Commission in item (D) of subparagraph (ii) of
9        paragraph (5) of this subsection (b) and the third
10        party and the Agency or utility, as applicable, have
11        executed the contract. For those renewable energy
12        credits subject to procurement through a competitive
13        bid process under the plan or under the initial
14        forward procurements for wind and solar resources
15        described in subparagraph (G) of paragraph (1) of
16        subsection (c) of Section 1-75 of the Illinois Power
17        Agency Act, the Agency shall follow the procurement
18        process specified in the provisions relating to
19        electricity procurement in subsections (e) through (i)
20        of this Section.
21            (iv) An electric utility shall recover its costs
22        associated with the procurement of renewable energy
23        credits under this Section and pursuant to subsection
24        (c-5) and (c-7) of Section 1-75 of the Illinois Power
25        Agency Act through an automatic adjustment clause
26        tariff under subsection (k) or a tariff pursuant to

 

 

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1        subsection (i-5) or (i-7), as applicable, of Section
2        16-108 of this Act. A utility shall not be required to
3        advance any payment or pay any amounts under this
4        Section that exceed the actual amount of revenues
5        collected by the utility under paragraph (6) of
6        subsection (c) of Section 1-75 of the Illinois Power
7        Agency Act, subsection (c-5) of Section 1-75 of the
8        Illinois Power Agency Act, and subsection (k) or
9        subsection (i-5), as applicable, of Section 16-108 of
10        this Act, and contracts executed under this Section
11        shall expressly incorporate this limitation.
12            (v) For the public interest, safety, and welfare,
13        the Agency and the Commission may adopt rules to carry
14        out the provisions of this Section on an emergency
15        basis immediately following the effective date of this
16        amendatory Act of the 99th General Assembly.
17            (vi) On or before July 1 of each year, the
18        Commission shall hold an informal hearing for the
19        purpose of receiving comments on the prior year's
20        procurement process and any recommendations for
21        change.
22    (b-5) An electric utility that as of January 1, 2019
23served more than 300,000 retail customers in this State shall
24purchase renewable energy credits from new renewable energy
25facilities constructed at or adjacent to the sites of
26coal-fueled electric generating facilities in this State in

 

 

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1accordance with subsection (c-5) of Section 1-75 of the
2Illinois Power Agency Act. Except as expressly provided in
3this Section, the plans and procedures for such procurements
4shall not be included in the procurement plans provided for in
5this Section, but rather shall be conducted and implemented
6solely in accordance with subsection (c-5) of Section 1-75 of
7the Illinois Power Agency Act.
8    (b-7) An electric utility that as of January 1, 2019
9served more than 300,000 retail customers in this State shall
10purchase high voltage direct current renewable energy credits
11in accordance with subsection (c-7) of Section 1-75 of the
12Illinois Power Agency Act. Except as expressly provided in
13this Section, the plans and procedures for such procurements
14shall not be included in the procurement plans provided for in
15this Section, but rather shall be conducted and implemented
16solely in accordance with subsection (c-7) of Section 1-75 of
17the Illinois Power Agency Act.
18    (c) The provisions of this subsection (c) shall not apply
19to procurements conducted pursuant to subsection (c-5) or
20(c-7) of Section 1-75 of the Illinois Power Agency Act.
21However, the Agency may retain a procurement administrator to
22assist the Agency in planning and carrying out the procurement
23events and implementing the other requirements specified in
24such subsection (c-5) of Section 1-75 of the Illinois Power
25Agency Act, with the costs incurred by the Agency for the
26procurement administrator to be recovered through fees charged

 

 

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1to applicants for selection to sell and deliver renewable
2energy credits to electric utilities pursuant to subsection
3(c-5) or (c-7) of Section 1-75 of the Illinois Power Agency
4Act. The procurement process set forth in Section 1-75 of the
5Illinois Power Agency Act and subsection (e) of this Section
6shall be administered by a procurement administrator and
7monitored by a procurement monitor.
8        (1) The procurement administrator shall:
9            (i) design the final procurement process in
10        accordance with Section 1-75 of the Illinois Power
11        Agency Act and subsection (e) of this Section
12        following Commission approval of the procurement plan;
13            (ii) develop benchmarks in accordance with
14        subsection (e)(3) to be used to evaluate bids; these
15        benchmarks shall be submitted to the Commission for
16        review and approval on a confidential basis prior to
17        the procurement event;
18            (iii) serve as the interface between the electric
19        utility and suppliers;
20            (iv) manage the bidder pre-qualification and
21        registration process;
22            (v) obtain the electric utilities' agreement to
23        the final form of all supply contracts and credit
24        collateral agreements;
25            (vi) administer the request for proposals process;
26            (vii) have the discretion to negotiate to

 

 

HB5514- 257 -LRB103 39335 CES 69496 b

1        determine whether bidders are willing to lower the
2        price of bids that meet the benchmarks approved by the
3        Commission; any post-bid negotiations with bidders
4        shall be limited to price only and shall be completed
5        within 24 hours after opening the sealed bids and
6        shall be conducted in a fair and unbiased manner; in
7        conducting the negotiations, there shall be no
8        disclosure of any information derived from proposals
9        submitted by competing bidders; if information is
10        disclosed to any bidder, it shall be provided to all
11        competing bidders;
12            (viii) maintain confidentiality of supplier and
13        bidding information in a manner consistent with all
14        applicable laws, rules, regulations, and tariffs;
15            (ix) submit a confidential report to the
16        Commission recommending acceptance or rejection of
17        bids;
18            (x) notify the utility of contract counterparties
19        and contract specifics; and
20            (xi) administer related contingency procurement
21        events.
22        (2) The procurement monitor, who shall be retained by
23    the Commission, shall:
24            (i) monitor interactions among the procurement
25        administrator, suppliers, and utility;
26            (ii) monitor and report to the Commission on the

 

 

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1        progress of the procurement process;
2            (iii) provide an independent confidential report
3        to the Commission regarding the results of the
4        procurement event;
5            (iv) assess compliance with the procurement plans
6        approved by the Commission for each utility that on
7        December 31, 2005 provided electric service to at
8        least 100,000 customers in Illinois and for each small
9        multi-jurisdictional utility that on December 31, 2005
10        served less than 100,000 customers in Illinois;
11            (v) preserve the confidentiality of supplier and
12        bidding information in a manner consistent with all
13        applicable laws, rules, regulations, and tariffs;
14            (vi) provide expert advice to the Commission and
15        consult with the procurement administrator regarding
16        issues related to procurement process design, rules,
17        protocols, and policy-related matters; and
18            (vii) consult with the procurement administrator
19        regarding the development and use of benchmark
20        criteria, standard form contracts, credit policies,
21        and bid documents.
22    (d) Except as provided in subsection (j), the planning
23process shall be conducted as follows:
24        (1) Beginning in 2008, each Illinois utility procuring
25    power pursuant to this Section shall annually provide a
26    range of load forecasts to the Illinois Power Agency by

 

 

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1    July 15 of each year, or such other date as may be required
2    by the Commission or Agency. The load forecasts shall
3    cover the 5-year procurement planning period for the next
4    procurement plan and shall include hourly data
5    representing a high-load, low-load, and expected-load
6    scenario for the load of those retail customers included
7    in the plan's electric supply service requirements. The
8    utility shall provide supporting data and assumptions for
9    each of the scenarios.
10        (2) Beginning in 2008, the Illinois Power Agency shall
11    prepare a procurement plan by August 15th of each year, or
12    such other date as may be required by the Commission. The
13    procurement plan shall identify the portfolio of
14    demand-response and power and energy products to be
15    procured. Cost-effective demand-response measures shall be
16    procured as set forth in item (iii) of subsection (b) of
17    this Section. Copies of the procurement plan shall be
18    posted and made publicly available on the Agency's and
19    Commission's websites, and copies shall also be provided
20    to each affected electric utility. An affected utility
21    shall have 30 days following the date of posting to
22    provide comment to the Agency on the procurement plan.
23    Other interested entities also may comment on the
24    procurement plan. All comments submitted to the Agency
25    shall be specific, supported by data or other detailed
26    analyses, and, if objecting to all or a portion of the

 

 

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1    procurement plan, accompanied by specific alternative
2    wording or proposals. All comments shall be posted on the
3    Agency's and Commission's websites. During this 30-day
4    comment period, the Agency shall hold at least one public
5    hearing within each utility's service area for the purpose
6    of receiving public comment on the procurement plan.
7    Within 14 days following the end of the 30-day review
8    period, the Agency shall revise the procurement plan as
9    necessary based on the comments received and file the
10    procurement plan with the Commission and post the
11    procurement plan on the websites.
12        (3) Within 5 days after the filing of the procurement
13    plan, any person objecting to the procurement plan shall
14    file an objection with the Commission. Within 10 days
15    after the filing, the Commission shall determine whether a
16    hearing is necessary. The Commission shall enter its order
17    confirming or modifying the procurement plan within 90
18    days after the filing of the procurement plan by the
19    Illinois Power Agency.
20        (4) The Commission shall approve the procurement plan,
21    including expressly the forecast used in the procurement
22    plan, if the Commission determines that it will ensure
23    adequate, reliable, affordable, efficient, and
24    environmentally sustainable electric service at the lowest
25    total cost over time, taking into account any benefits of
26    price stability.

 

 

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1        (4.5) The Commission shall review the Agency's
2    recommendations for the selection of applicants to enter
3    into long-term contracts for the sale and delivery of
4    renewable energy credits from new renewable energy
5    facilities to be constructed at or adjacent to the sites
6    of coal-fueled electric generating facilities in this
7    State in accordance with the provisions of subsection
8    (c-5) of Section 1-75 of the Illinois Power Agency Act,
9    and shall approve the Agency's recommendations if the
10    Commission determines that the applicants recommended by
11    the Agency for selection, the proposed new renewable
12    energy facilities to be constructed, the amounts of
13    renewable energy credits to be delivered pursuant to the
14    contracts, and the other terms of the contracts, are
15    consistent with the requirements of subsection (c-5) of
16    Section 1-75 of the Illinois Power Agency Act.
17    (e) The procurement process shall include each of the
18following components:
19        (1) Solicitation, pre-qualification, and registration
20    of bidders. The procurement administrator shall
21    disseminate information to potential bidders to promote a
22    procurement event, notify potential bidders that the
23    procurement administrator may enter into a post-bid price
24    negotiation with bidders that meet the applicable
25    benchmarks, provide supply requirements, and otherwise
26    explain the competitive procurement process. In addition

 

 

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1    to such other publication as the procurement administrator
2    determines is appropriate, this information shall be
3    posted on the Illinois Power Agency's and the Commission's
4    websites. The procurement administrator shall also
5    administer the prequalification process, including
6    evaluation of credit worthiness, compliance with
7    procurement rules, and agreement to the standard form
8    contract developed pursuant to paragraph (2) of this
9    subsection (e). The procurement administrator shall then
10    identify and register bidders to participate in the
11    procurement event.
12        (2) Standard contract forms and credit terms and
13    instruments. The procurement administrator, in
14    consultation with the utilities, the Commission, and other
15    interested parties and subject to Commission oversight,
16    shall develop and provide standard contract forms for the
17    supplier contracts that meet generally accepted industry
18    practices. Standard credit terms and instruments that meet
19    generally accepted industry practices shall be similarly
20    developed. The procurement administrator shall make
21    available to the Commission all written comments it
22    receives on the contract forms, credit terms, or
23    instruments. If the procurement administrator cannot reach
24    agreement with the applicable electric utility as to the
25    contract terms and conditions, the procurement
26    administrator must notify the Commission of any disputed

 

 

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1    terms and the Commission shall resolve the dispute. The
2    terms of the contracts shall not be subject to negotiation
3    by winning bidders, and the bidders must agree to the
4    terms of the contract in advance so that winning bids are
5    selected solely on the basis of price.
6        (3) Establishment of a market-based price benchmark.
7    As part of the development of the procurement process, the
8    procurement administrator, in consultation with the
9    Commission staff, Agency staff, and the procurement
10    monitor, shall establish benchmarks for evaluating the
11    final prices in the contracts for each of the products
12    that will be procured through the procurement process. The
13    benchmarks shall be based on price data for similar
14    products for the same delivery period and same delivery
15    hub, or other delivery hubs after adjusting for that
16    difference. The price benchmarks may also be adjusted to
17    take into account differences between the information
18    reflected in the underlying data sources and the specific
19    products and procurement process being used to procure
20    power for the Illinois utilities. The benchmarks shall be
21    confidential but shall be provided to, and will be subject
22    to Commission review and approval, prior to a procurement
23    event.
24        (4) Request for proposals competitive procurement
25    process. The procurement administrator shall design and
26    issue a request for proposals to supply electricity in

 

 

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1    accordance with each utility's procurement plan, as
2    approved by the Commission. The request for proposals
3    shall set forth a procedure for sealed, binding commitment
4    bidding with pay-as-bid settlement, and provision for
5    selection of bids on the basis of price.
6        (5) A plan for implementing contingencies in the event
7    of supplier default or failure of the procurement process
8    to fully meet the expected load requirement due to
9    insufficient supplier participation, Commission rejection
10    of results, or any other cause.
11            (i) Event of supplier default: In the event of
12        supplier default, the utility shall review the
13        contract of the defaulting supplier to determine if
14        the amount of supply is 200 megawatts or greater, and
15        if there are more than 60 days remaining of the
16        contract term. If both of these conditions are met,
17        and the default results in termination of the
18        contract, the utility shall immediately notify the
19        Illinois Power Agency that a request for proposals
20        must be issued to procure replacement power, and the
21        procurement administrator shall run an additional
22        procurement event. If the contracted supply of the
23        defaulting supplier is less than 200 megawatts or
24        there are less than 60 days remaining of the contract
25        term, the utility shall procure power and energy from
26        the applicable regional transmission organization

 

 

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1        market, including ancillary services, capacity, and
2        day-ahead or real time energy, or both, for the
3        duration of the contract term to replace the
4        contracted supply; provided, however, that if a needed
5        product is not available through the regional
6        transmission organization market it shall be purchased
7        from the wholesale market.
8            (ii) Failure of the procurement process to fully
9        meet the expected load requirement: If the procurement
10        process fails to fully meet the expected load
11        requirement due to insufficient supplier participation
12        or due to a Commission rejection of the procurement
13        results, the procurement administrator, the
14        procurement monitor, and the Commission staff shall
15        meet within 10 days to analyze potential causes of low
16        supplier interest or causes for the Commission
17        decision. If changes are identified that would likely
18        result in increased supplier participation, or that
19        would address concerns causing the Commission to
20        reject the results of the prior procurement event, the
21        procurement administrator may implement those changes
22        and rerun the request for proposals process according
23        to a schedule determined by those parties and
24        consistent with Section 1-75 of the Illinois Power
25        Agency Act and this subsection. In any event, a new
26        request for proposals process shall be implemented by

 

 

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1        the procurement administrator within 90 days after the
2        determination that the procurement process has failed
3        to fully meet the expected load requirement.
4            (iii) In all cases where there is insufficient
5        supply provided under contracts awarded through the
6        procurement process to fully meet the electric
7        utility's load requirement, the utility shall meet the
8        load requirement by procuring power and energy from
9        the applicable regional transmission organization
10        market, including ancillary services, capacity, and
11        day-ahead or real time energy, or both; provided,
12        however, that if a needed product is not available
13        through the regional transmission organization market
14        it shall be purchased from the wholesale market.
15        (6) The procurement processes described in this
16    subsection and in subsection (c-5) and (c-7) of Section
17    1-75 of the Illinois Power Agency Act are exempt from the
18    requirements of the Illinois Procurement Code, pursuant to
19    Section 20-10 of that Code.
20    (f) Within 2 business days after opening the sealed bids,
21the procurement administrator shall submit a confidential
22report to the Commission. The report shall contain the results
23of the bidding for each of the products along with the
24procurement administrator's recommendation for the acceptance
25and rejection of bids based on the price benchmark criteria
26and other factors observed in the process. The procurement

 

 

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1monitor also shall submit a confidential report to the
2Commission within 2 business days after opening the sealed
3bids. The report shall contain the procurement monitor's
4assessment of bidder behavior in the process as well as an
5assessment of the procurement administrator's compliance with
6the procurement process and rules. The Commission shall review
7the confidential reports submitted by the procurement
8administrator and procurement monitor, and shall accept or
9reject the recommendations of the procurement administrator
10within 2 business days after receipt of the reports.
11    (g) Within 3 business days after the Commission decision
12approving the results of a procurement event, the utility
13shall enter into binding contractual arrangements with the
14winning suppliers using the standard form contracts; except
15that the utility shall not be required either directly or
16indirectly to execute the contracts if a tariff that is
17consistent with subsection (l) of this Section has not been
18approved and placed into effect for that utility.
19    (h) For the procurement of standard wholesale products,
20the names of the successful bidders and the load weighted
21average of the winning bid prices for each contract type and
22for each contract term shall be made available to the public at
23the time of Commission approval of a procurement event. For
24procurements conducted to meet the requirements of subsection
25(b) of Section 1-56 or subsection (c) of Section 1-75 of the
26Illinois Power Agency Act governed by the provisions of this

 

 

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1Section, the address and nameplate capacity of the new
2renewable energy generating facility proposed by a winning
3bidder shall also be made available to the public at the time
4of Commission approval of a procurement event, along with the
5business address and contact information for any winning
6bidder. An estimate or approximation of the nameplate capacity
7of the new renewable energy generating facility may be
8disclosed if necessary to protect the confidentiality of
9individual bid prices.
10    The Commission, the procurement monitor, the procurement
11administrator, the Illinois Power Agency, and all participants
12in the procurement process shall maintain the confidentiality
13of all other supplier and bidding information in a manner
14consistent with all applicable laws, rules, regulations, and
15tariffs. Confidential information, including the confidential
16reports submitted by the procurement administrator and
17procurement monitor pursuant to subsection (f) of this
18Section, shall not be made publicly available and shall not be
19discoverable by any party in any proceeding, absent a
20compelling demonstration of need, nor shall those reports be
21admissible in any proceeding other than one for law
22enforcement purposes.
23    (i) Within 2 business days after a Commission decision
24approving the results of a procurement event or such other
25date as may be required by the Commission from time to time,
26the utility shall file for informational purposes with the

 

 

HB5514- 269 -LRB103 39335 CES 69496 b

1Commission its actual or estimated retail supply charges, as
2applicable, by customer supply group reflecting the costs
3associated with the procurement and computed in accordance
4with the tariffs filed pursuant to subsection (l) of this
5Section and approved by the Commission.
6    (j) Within 60 days following August 28, 2007 (the
7effective date of Public Act 95-481), each electric utility
8that on December 31, 2005 provided electric service to at
9least 100,000 customers in Illinois shall prepare and file
10with the Commission an initial procurement plan, which shall
11conform in all material respects to the requirements of the
12procurement plan set forth in subsection (b); provided,
13however, that the Illinois Power Agency Act shall not apply to
14the initial procurement plan prepared pursuant to this
15subsection. The initial procurement plan shall identify the
16portfolio of power and energy products to be procured and
17delivered for the period June 2008 through May 2009, and shall
18identify the proposed procurement administrator, who shall
19have the same experience and expertise as is required of a
20procurement administrator hired pursuant to Section 1-75 of
21the Illinois Power Agency Act. Copies of the procurement plan
22shall be posted and made publicly available on the
23Commission's website. The initial procurement plan may include
24contracts for renewable resources that extend beyond May 2009.
25        (i) Within 14 days following filing of the initial
26    procurement plan, any person may file a detailed objection

 

 

HB5514- 270 -LRB103 39335 CES 69496 b

1    with the Commission contesting the procurement plan
2    submitted by the electric utility. All objections to the
3    electric utility's plan shall be specific, supported by
4    data or other detailed analyses. The electric utility may
5    file a response to any objections to its procurement plan
6    within 7 days after the date objections are due to be
7    filed. Within 7 days after the date the utility's response
8    is due, the Commission shall determine whether a hearing
9    is necessary. If it determines that a hearing is
10    necessary, it shall require the hearing to be completed
11    and issue an order on the procurement plan within 60 days
12    after the filing of the procurement plan by the electric
13    utility.
14        (ii) The order shall approve or modify the procurement
15    plan, approve an independent procurement administrator,
16    and approve or modify the electric utility's tariffs that
17    are proposed with the initial procurement plan. The
18    Commission shall approve the procurement plan if the
19    Commission determines that it will ensure adequate,
20    reliable, affordable, efficient, and environmentally
21    sustainable electric service at the lowest total cost over
22    time, taking into account any benefits of price stability.
23    (k) (Blank).
24    (k-5) (Blank).
25    (l) An electric utility shall recover its costs incurred
26under this Section and subsection (c-5) of Section 1-75 of the

 

 

HB5514- 271 -LRB103 39335 CES 69496 b

1Illinois Power Agency Act, including, but not limited to, the
2costs of procuring power and energy demand-response resources
3under this Section and its costs for purchasing renewable
4energy credits pursuant to subsection (c-5) of Section 1-75 of
5the Illinois Power Agency Act and (c-7). The utility shall
6file with the initial procurement plan its proposed tariffs
7through which its costs of procuring power that are incurred
8pursuant to a Commission-approved procurement plan and those
9other costs identified in this subsection (l), will be
10recovered. The tariffs shall include a formula rate or charge
11designed to pass through both the costs incurred by the
12utility in procuring a supply of electric power and energy for
13the applicable customer classes with no mark-up or return on
14the price paid by the utility for that supply, plus any just
15and reasonable costs that the utility incurs in arranging and
16providing for the supply of electric power and energy. The
17formula rate or charge shall also contain provisions that
18ensure that its application does not result in over or under
19recovery due to changes in customer usage and demand patterns,
20and that provide for the correction, on at least an annual
21basis, of any accounting errors that may occur. A utility
22shall recover through the tariff all reasonable costs incurred
23to implement or comply with any procurement plan that is
24developed and put into effect pursuant to Section 1-75 of the
25Illinois Power Agency Act and this Section, and for the
26procurement of renewable energy credits pursuant to subsection

 

 

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1(c-5) or (c-7) of Section 1-75 of the Illinois Power Agency
2Act, including any fees assessed by the Illinois Power Agency,
3costs associated with load balancing, and contingency plan
4costs. The electric utility shall also recover its full costs
5of procuring electric supply for which it contracted before
6the effective date of this Section in conjunction with the
7provision of full requirements service under fixed-price
8bundled service tariffs subsequent to December 31, 2006. All
9such costs shall be deemed to have been prudently incurred.
10The pass-through tariffs that are filed and approved pursuant
11to this Section shall not be subject to review under, or in any
12way limited by, Section 16-111(i) of this Act. All of the costs
13incurred by the electric utility associated with the purchase
14of zero emission credits in accordance with subsection (d-5)
15of Section 1-75 of the Illinois Power Agency Act, all costs
16incurred by the electric utility associated with the purchase
17of carbon mitigation credits in accordance with subsection
18(d-10) of Section 1-75 of the Illinois Power Agency Act, and,
19beginning June 1, 2017, all of the costs incurred by the
20electric utility associated with the purchase of renewable
21energy resources in accordance with Sections 1-56 and 1-75 of
22the Illinois Power Agency Act, and all of the costs incurred by
23the electric utility in purchasing renewable energy credits in
24accordance with subsection (c-5) of Section 1-75 of the
25Illinois Power Agency Act, shall be recovered through the
26electric utility's tariffed charges applicable to all of its

 

 

HB5514- 273 -LRB103 39335 CES 69496 b

1retail customers, as specified in subsection (k), or
2subsection (i-5), or (i-7) as applicable, of Section 16-108 of
3this Act, and shall not be recovered through the electric
4utility's tariffed charges for electric power and energy
5supply to its eligible retail customers.
6    (m) The Commission has the authority to adopt rules to
7carry out the provisions of this Section. For the public
8interest, safety, and welfare, the Commission also has
9authority to adopt rules to carry out the provisions of this
10Section on an emergency basis immediately following August 28,
112007 (the effective date of Public Act 95-481).
12    (n) Notwithstanding any other provision of this Act, any
13affiliated electric utilities that submit a single procurement
14plan covering their combined needs may procure for those
15combined needs in conjunction with that plan, and may enter
16jointly into power supply contracts, purchases, and other
17procurement arrangements, and allocate capacity and energy and
18cost responsibility therefor among themselves in proportion to
19their requirements.
20    (o) On or before June 1 of each year, the Commission shall
21hold an informal hearing for the purpose of receiving comments
22on the prior year's procurement process and any
23recommendations for change.
24    (p) An electric utility subject to this Section may
25propose to invest, lease, own, or operate an electric
26generation facility or high voltage direct current

 

 

HB5514- 274 -LRB103 39335 CES 69496 b

1transmission line as part of its procurement plan, provided
2the utility demonstrates that such facility is the least-cost
3option to provide electric service to those retail customers
4included in the plan's electric supply service requirements.
5If the facility is shown to be the least-cost option and is
6included in a procurement plan prepared in accordance with
7Section 1-75 of the Illinois Power Agency Act and this
8Section, then the electric utility shall make a filing
9pursuant to Section 8-406 of this Act, and may request of the
10Commission any statutory relief required thereunder. If the
11Commission grants all of the necessary approvals for the
12proposed facility, such supply shall thereafter be considered
13as a pre-existing contract under subsection (b) of this
14Section. The Commission shall in any order approving a
15proposal under this subsection specify how the utility will
16recover the prudently incurred costs of investing in, leasing,
17owning, or operating such generation facility through just and
18reasonable rates charged to those retail customers included in
19the plan's electric supply service requirements. Cost recovery
20for facilities included in the utility's procurement plan
21pursuant to this subsection shall not be subject to review
22under or in any way limited by the provisions of Section
2316-111(i) of this Act. Nothing in this Section is intended to
24prohibit a utility from filing for a fuel adjustment clause as
25is otherwise permitted under Section 9-220 of this Act.
26    (q) If the Illinois Power Agency filed with the

 

 

HB5514- 275 -LRB103 39335 CES 69496 b

1Commission, under Section 16-111.5 of this Act, its proposed
2procurement plan for the period commencing June 1, 2017, and
3the Commission has not yet entered its final order approving
4the plan on or before the effective date of this amendatory Act
5of the 99th General Assembly, then the Illinois Power Agency
6shall file a notice of withdrawal with the Commission, after
7the effective date of this amendatory Act of the 99th General
8Assembly, to withdraw the proposed procurement of renewable
9energy resources to be approved under the plan, other than the
10procurement of renewable energy credits from distributed
11renewable energy generation devices using funds previously
12collected from electric utilities' retail customers that take
13service pursuant to electric utilities' hourly pricing tariff
14or tariffs and, for an electric utility that serves less than
15100,000 retail customers in the State, other than the
16procurement of renewable energy credits from distributed
17renewable energy generation devices. Upon receipt of the
18notice, the Commission shall enter an order that approves the
19withdrawal of the proposed procurement of renewable energy
20resources from the plan. The initially proposed procurement of
21renewable energy resources shall not be approved or be the
22subject of any further hearing, investigation, proceeding, or
23order of any kind.
24    This amendatory Act of the 99th General Assembly preempts
25and supersedes any order entered by the Commission that
26approved the Illinois Power Agency's procurement plan for the

 

 

HB5514- 276 -LRB103 39335 CES 69496 b

1period commencing June 1, 2017, to the extent it is
2inconsistent with the provisions of this amendatory Act of the
399th General Assembly. To the extent any previously entered
4order approved the procurement of renewable energy resources,
5the portion of that order approving the procurement shall be
6void, other than the procurement of renewable energy credits
7from distributed renewable energy generation devices using
8funds previously collected from electric utilities' retail
9customers that take service under electric utilities' hourly
10pricing tariff or tariffs and, for an electric utility that
11serves less than 100,000 retail customers in the State, other
12than the procurement of renewable energy credits for
13distributed renewable energy generation devices.
14(Source: P.A. 102-662, eff. 9-15-21.)