103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3949

 

Introduced 5/8/2024, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Provides that the amendatory Act may be referred to as the Transmission for Transition Law. Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" if the business intends to construct a new high voltage direct current converter station facility at a designated location in Illinois. Amends the Illinois Power Agency Act. Provides that the long-term renewable resources procurement plan shall include the procurement of renewable energy credits from high voltage direct current renewable energy credits. Provides that the Illinois Power Agency shall conduct at least one forward procurement for high voltage direct current renewable energy credits within 240 days after the effective date of the amendatory Act. Sets forth procedures for application and bidding. Provides that, no later than December 1, 2024, the Agency shall create and issue a report that describes how transmission systems limit the ability of electric utilities to meet renewable resource procurement goals. Makes changes in provisions concerning legislative declarations and findings and definitions. Makes conforming changes. Amends the Public Utilities Act. Provides that an electric utility that has entered into a contract to purchase high voltage direct current renewable energy credits shall be entitled to recover through tariffed charges all costs related to the purchase of high voltage direct current renewable energy credits under the contract. Provides that an entity that received a contract to provide high voltage direct current renewable energy credits and the associated high voltage direct current transmission lines shall not be obligated to submit an annual supplier diversity report to the Illinois Commerce Commission. Makes changes to provisions concerning definitions. Amends the Prevailing Wage Act to make a conforming change. Effective immediately.


LRB103 40603 LNS 73240 b

 

 

A BILL FOR

 

SB3949LRB103 40603 LNS 73240 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 1. References to Act. This Act may be referred to
5as the Transmission for Transition Law.
 
6    Section 5. Findings. The General Assembly finds and
7determines that:
8        (1) Illinois is committed to addressing climate change
9    through the development and delivery of renewable energy
10    resources.
11        (2) A robust transmission system is critical to the
12    State's regional and national economic and energy
13    security.
14        (3) Deploying interregional transmission,
15    specifically high voltage direct current transmission
16    lines connecting multiple independent system operator
17    service areas or regional transmission organization
18    service areas, so that abundant, high-capacity renewable
19    energy resources are connected to demand centers, will
20    increase the reliability and resilience of the electric
21    grid.
22        (4) The United States Department of Energy has
23    determined that increased transmission is a cost-effective

 

 

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1    means to access low-cost renewable generation to serve
2    load centers and facilitate the transition to clean
3    energy.
4        (5) The Illinois Commerce Commission's Renewable
5    Energy Access Plan recommends the development of a
6    strategy for proactive interregional transmission
7    planning.
8        (6) Meeting the State's decarbonization goals with
9    geographically diverse renewable energy resources will
10    require long-term procurement of renewable energy
11    resources and infrastructure necessary to transmit those
12    renewable energy resources.
13        (7) The health, welfare, and prosperity of the
14    residents of the State will improve if new interregional
15    transmission projects bring renewable resources from
16    geographically diverse sources to the State.
17        (8) It is beneficial for new transmission projects to
18    transmit renewable energy resources procured by the
19    Illinois Power Agency on behalf of the residents and
20    ratepayers of the State. New transmission projects
21    participating in Agency procurements or delivering
22    renewable energy resources procured by the Illinois Power
23    Agency can provide significant economic benefits to equity
24    investment eligible communities, equity eligible persons,
25    minority-owned businesses, women-owned businesses, and
26    other economically disadvantaged populations and

 

 

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1    businesses.
2        (9) New interregional transmission projects create
3    economic opportunity and thousands of new
4    family-sustaining jobs to construct the projects.
5        (10) The State and all of its residents will benefit
6    from the development of interregional high voltage direct
7    current transmission facilities.
8    Therefore, the General Assembly finds that it is necessary
9to enact this Act to encourage the responsible development of
10high voltage direct current transmission lines in the State in
11pursuit of an affordable, reliable transition to a clean
12energy future.
 
13    Section 10. The Illinois Enterprise Zone Act is amended by
14changing Section 5.5 as follows:
 
15    (20 ILCS 655/5.5)  (from Ch. 67 1/2, par. 609.1)
16    Sec. 5.5. High Impact Business.
17    (a) In order to respond to unique opportunities to assist
18in the encouragement, development, growth, and expansion of
19the private sector through large scale investment and
20development projects, the Department is authorized to receive
21and approve applications for the designation of "High Impact
22Businesses" in Illinois, for an initial term of 20 years with
23an option for renewal for a term not to exceed 20 years,
24subject to the following conditions:

 

 

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1        (1) such applications may be submitted at any time
2    during the year;
3        (2) such business is not located, at the time of
4    designation, in an enterprise zone designated pursuant to
5    this Act;
6        (3) the business intends to do, commits to do, or is
7    one or more of the following:
8            (A) the business intends to make a minimum
9        investment of $12,000,000 which will be placed in
10        service in qualified property and intends to create
11        500 full-time equivalent jobs at a designated location
12        in Illinois or intends to make a minimum investment of
13        $30,000,000 which will be placed in service in
14        qualified property and intends to retain 1,500
15        full-time retained jobs at a designated location in
16        Illinois. The terms "placed in service" and "qualified
17        property" have the same meanings as described in
18        subsection (h) of Section 201 of the Illinois Income
19        Tax Act; or
20            (B) the business intends to establish a new
21        electric generating facility at a designated location
22        in Illinois. "New electric generating facility", for
23        purposes of this Section, means a newly constructed
24        electric generation plant or a newly constructed
25        generation capacity expansion at an existing electric
26        generation plant, including the transmission lines and

 

 

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1        associated equipment that transfers electricity from
2        points of supply to points of delivery, and for which
3        such new foundation construction commenced not sooner
4        than July 1, 2001. Such facility shall be designed to
5        provide baseload electric generation and shall operate
6        on a continuous basis throughout the year; and (i)
7        shall have an aggregate rated generating capacity of
8        at least 1,000 megawatts for all new units at one site
9        if it uses natural gas as its primary fuel and
10        foundation construction of the facility is commenced
11        on or before December 31, 2004, or shall have an
12        aggregate rated generating capacity of at least 400
13        megawatts for all new units at one site if it uses coal
14        or gases derived from coal as its primary fuel and
15        shall support the creation of at least 150 new
16        Illinois coal mining jobs, or (ii) shall be funded
17        through a federal Department of Energy grant before
18        December 31, 2010 and shall support the creation of
19        Illinois coal mining coal-mining jobs, or (iii) shall
20        use coal gasification or integrated
21        gasification-combined cycle units that generate
22        electricity or chemicals, or both, and shall support
23        the creation of Illinois coal mining coal-mining jobs.
24        The term "placed in service" has the same meaning as
25        described in subsection (h) of Section 201 of the
26        Illinois Income Tax Act; or

 

 

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1            (B-5) the business intends to establish a new
2        gasification facility at a designated location in
3        Illinois. As used in this Section, "new gasification
4        facility" means a newly constructed coal gasification
5        facility that generates chemical feedstocks or
6        transportation fuels derived from coal (which may
7        include, but are not limited to, methane, methanol,
8        and nitrogen fertilizer), that supports the creation
9        or retention of Illinois coal mining coal-mining jobs,
10        and that qualifies for financial assistance from the
11        Department before December 31, 2010. A new
12        gasification facility does not include a pilot project
13        located within Jefferson County or within a county
14        adjacent to Jefferson County for synthetic natural gas
15        from coal; or
16            (C) the business intends to establish production
17        operations at a new coal mine, re-establish production
18        operations at a closed coal mine, or expand production
19        at an existing coal mine at a designated location in
20        Illinois not sooner than July 1, 2001; provided that
21        the production operations result in the creation of
22        150 new Illinois coal mining jobs as described in
23        subdivision (a)(3)(B) of this Section, and further
24        provided that the coal extracted from such mine is
25        utilized as the predominant source for a new electric
26        generating facility. The term "placed in service" has

 

 

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1        the same meaning as described in subsection (h) of
2        Section 201 of the Illinois Income Tax Act; or
3            (D) the business intends to construct new
4        transmission facilities or upgrade existing
5        transmission facilities at designated locations in
6        Illinois, for which construction commenced not sooner
7        than July 1, 2001. For the purposes of this Section,
8        "transmission facilities" means transmission lines
9        with a voltage rating of 115 kilovolts or above,
10        including associated equipment, that transfer
11        electricity from points of supply to points of
12        delivery and that transmit a majority of the
13        electricity generated by a new electric generating
14        facility designated as a High Impact Business in
15        accordance with this Section. The term "placed in
16        service" has the same meaning as described in
17        subsection (h) of Section 201 of the Illinois Income
18        Tax Act; or
19            (E) the business intends to establish a new wind
20        power facility at a designated location in Illinois.
21        For purposes of this Section, "new wind power
22        facility" means a newly constructed electric
23        generation facility, a newly constructed expansion of
24        an existing electric generation facility, or the
25        replacement of an existing electric generation
26        facility, including the demolition and removal of an

 

 

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1        electric generation facility irrespective of whether
2        it will be replaced, placed in service or replaced on
3        or after July 1, 2009, that generates electricity
4        using wind energy devices, and such facility shall be
5        deemed to include any permanent structures associated
6        with the electric generation facility and all
7        associated transmission lines, substations, and other
8        equipment related to the generation of electricity
9        from wind energy devices. For purposes of this
10        Section, "wind energy device" means any device, with a
11        nameplate capacity of at least 0.5 megawatts, that is
12        used in the process of converting kinetic energy from
13        the wind to generate electricity; or
14            (E-5) the business intends to establish a new
15        utility-scale solar facility at a designated location
16        in Illinois. For purposes of this Section, "new
17        utility-scale solar power facility" means a newly
18        constructed electric generation facility, or a newly
19        constructed expansion of an existing electric
20        generation facility, placed in service on or after
21        July 1, 2021, that (i) generates electricity using
22        photovoltaic cells and (ii) has a nameplate capacity
23        that is greater than 5,000 kilowatts, and such
24        facility shall be deemed to include all associated
25        transmission lines, substations, energy storage
26        facilities, and other equipment related to the

 

 

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1        generation and storage of electricity from
2        photovoltaic cells; or
3            (F) the business commits to (i) make a minimum
4        investment of $500,000,000, which will be placed in
5        service in a qualified property, (ii) create 125
6        full-time equivalent jobs at a designated location in
7        Illinois, (iii) establish a fertilizer plant at a
8        designated location in Illinois that complies with the
9        set-back standards as described in Table 1: Initial
10        Isolation and Protective Action Distances in the 2012
11        Emergency Response Guidebook published by the United
12        States Department of Transportation, (iv) pay a
13        prevailing wage for employees at that location who are
14        engaged in construction activities, and (v) secure an
15        appropriate level of general liability insurance to
16        protect against catastrophic failure of the fertilizer
17        plant or any of its constituent systems; in addition,
18        the business must agree to enter into a construction
19        project labor agreement including provisions
20        establishing wages, benefits, and other compensation
21        for employees performing work under the project labor
22        agreement at that location; for the purposes of this
23        Section, "fertilizer plant" means a newly constructed
24        or upgraded plant utilizing gas used in the production
25        of anhydrous ammonia and downstream nitrogen
26        fertilizer products for resale; for the purposes of

 

 

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1        this Section, "prevailing wage" means the hourly cash
2        wages plus fringe benefits for training and
3        apprenticeship programs approved by the U.S.
4        Department of Labor, Bureau of Apprenticeship and
5        Training, health and welfare, insurance, vacations and
6        pensions paid generally, in the locality in which the
7        work is being performed, to employees engaged in work
8        of a similar character on public works; this paragraph
9        (F) applies only to businesses that submit an
10        application to the Department within 60 days after
11        July 25, 2013 (the effective date of Public Act
12        98-109); or
13            (G) the business intends to establish a new
14        cultured cell material food production facility at a
15        designated location in Illinois. As used in this
16        paragraph (G):
17            "Cultured cell material food production facility"
18        means a facility (i) at which cultured animal cell
19        food is developed using animal cell culture
20        technology, (ii) at which production processes occur
21        that include the establishment of cell lines and cell
22        banks, manufacturing controls, and all components and
23        inputs, and (iii) that complies with all existing
24        registrations, inspections, licensing, and approvals
25        from all applicable and participating State and
26        federal food agencies, including the Department of

 

 

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1        Agriculture, the Department of Public Health, and the
2        United States Food and Drug Administration, to ensure
3        that all food production is safe and lawful under
4        provisions of the Federal Food, Drug and Cosmetic Act
5        related to the development, production, and storage of
6        cultured animal cell food.
7            "New cultured cell material food production
8        facility" means a newly constructed cultured cell
9        material food production facility that is placed in
10        service on or after June 7, 2023 (the effective date of
11        Public Act 103-9) this amendatory Act of the 103rd
12        General Assembly or a newly constructed expansion of
13        an existing cultured cell material food production
14        facility, in a controlled environment, when the
15        improvements are placed in service on or after June 7,
16        2023 (the effective date of Public Act 103-9) this
17        amendatory Act of the 103rd General Assembly; or and
18            (H) (G) the business is an existing or planned
19        grocery store, as that term is defined in Section 5 of
20        the Grocery Initiative Act, and receives financial
21        support under that Act within the 10 years before
22        submitting its application under this Act; or and
23            (I) the business intends to construct a new high
24        voltage direct current converter station facility at a
25        designated location in Illinois. As used in this
26        paragraph, "high voltage direct current converter

 

 

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1        station" has the same meaning given to that term in
2        Section 1-10 of the Illinois Power Act; and
3        (4) no later than 90 days after an application is
4    submitted, the Department shall notify the applicant of
5    the Department's determination of the qualification of the
6    proposed High Impact Business under this Section.
7    (b) Businesses designated as High Impact Businesses
8pursuant to subdivision (a)(3)(A) of this Section shall
9qualify for the credits and exemptions described in the
10following Acts: Section 9-222 and Section 9-222.1A of the
11Public Utilities Act, subsection (h) of Section 201 of the
12Illinois Income Tax Act, and Section 1d of the Retailers'
13Occupation Tax Act; provided that these credits and exemptions
14described in these Acts shall not be authorized until the
15minimum investments set forth in subdivision (a)(3)(A) of this
16Section have been placed in service in qualified properties
17and, in the case of the exemptions described in the Public
18Utilities Act and Section 1d of the Retailers' Occupation Tax
19Act, the minimum full-time equivalent jobs or full-time
20retained jobs set forth in subdivision (a)(3)(A) of this
21Section have been created or retained. Businesses designated
22as High Impact Businesses under this Section shall also
23qualify for the exemption described in Section 5l of the
24Retailers' Occupation Tax Act. The credit provided in
25subsection (h) of Section 201 of the Illinois Income Tax Act
26shall be applicable to investments in qualified property as

 

 

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1set forth in subdivision (a)(3)(A) of this Section.
2    (b-5) Businesses designated as High Impact Businesses
3pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
4(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
5qualify for the credits and exemptions described in the
6following Acts: Section 51 of the Retailers' Occupation Tax
7Act, Section 9-222 and Section 9-222.1A of the Public
8Utilities Act, and subsection (h) of Section 201 of the
9Illinois Income Tax Act; however, the credits and exemptions
10authorized under Section 9-222 and Section 9-222.1A of the
11Public Utilities Act, and subsection (h) of Section 201 of the
12Illinois Income Tax Act shall not be authorized until the new
13electric generating facility, the new gasification facility,
14the new transmission facility, the new, expanded, or reopened
15coal mine, or the new cultured cell material food production
16facility, or the existing or planned grocery store is
17operational, except that a new electric generating facility
18whose primary fuel source is natural gas is eligible only for
19the exemption under Section 5l of the Retailers' Occupation
20Tax Act.
21    (b-6) Businesses designated as High Impact Businesses
22pursuant to subdivision (a)(3)(E), or (a)(3)(E-5), or
23(a)(3)(I) of this Section shall qualify for the exemptions
24described in Section 5l of the Retailers' Occupation Tax Act;
25any business so designated as a High Impact Business being,
26for purposes of this Section, a "Wind Energy Business".

 

 

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1    (b-7) Beginning on January 1, 2021, businesses designated
2as High Impact Businesses by the Department shall qualify for
3the High Impact Business construction jobs credit under
4subsection (h-5) of Section 201 of the Illinois Income Tax Act
5if the business meets the criteria set forth in subsection (i)
6of this Section. The total aggregate amount of credits awarded
7under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
8shall not exceed $20,000,000 in any State fiscal year.
9    (c) High Impact Businesses located in federally designated
10foreign trade zones or sub-zones are also eligible for
11additional credits, exemptions and deductions as described in
12the following Acts: Section 9-221 and Section 9-222.1 of the
13Public Utilities Act; and subsection (g) of Section 201, and
14Section 203 of the Illinois Income Tax Act.
15    (d) Except for businesses contemplated under subdivision
16(a)(3)(D), (a)(3)(E), (a)(3)(E-5), or (a)(3)(G), (a)(3)(H), or
17(a)(3)(I) of this Section, existing Illinois businesses which
18apply for designation as a High Impact Business must provide
19the Department with the prospective plan for which 1,500
20full-time retained jobs would be eliminated in the event that
21the business is not designated.
22    (e) Except for new businesses contemplated under
23subdivision (a)(3)(D), (a)(3)(E), or subdivision (a)(3)(G),
24(a)(3)(H), or (a)(3)(I) of this Section, new proposed
25facilities which apply for designation as High Impact Business
26must provide the Department with proof of alternative

 

 

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1non-Illinois sites which would receive the proposed investment
2and job creation in the event that the business is not
3designated as a High Impact Business.
4    (f) Except for businesses contemplated under subdivision
5(a)(3)(D), (a)(3)(E), or subdivision (a)(3)(G), (a)(3)(H), or
6(a)(3)(I) of this Section, in the event that a business is
7designated a High Impact Business and it is later determined
8after reasonable notice and an opportunity for a hearing as
9provided under the Illinois Administrative Procedure Act, that
10the business would have placed in service in qualified
11property the investments and created or retained the requisite
12number of jobs without the benefits of the High Impact
13Business designation, the Department shall be required to
14immediately revoke the designation and notify the Director of
15the Department of Revenue who shall begin proceedings to
16recover all wrongfully exempted State taxes with interest. The
17business shall also be ineligible for all State funded
18Department programs for a period of 10 years.
19    (g) The Department shall revoke a High Impact Business
20designation if the participating business fails to comply with
21the terms and conditions of the designation.
22    (h) Prior to designating a business, the Department shall
23provide the members of the General Assembly and Commission on
24Government Forecasting and Accountability with a report
25setting forth the terms and conditions of the designation and
26guarantees that have been received by the Department in

 

 

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1relation to the proposed business being designated.
2    (i) High Impact Business construction jobs credit.
3Beginning on January 1, 2021, a High Impact Business may
4receive a tax credit against the tax imposed under subsections
5(a) and (b) of Section 201 of the Illinois Income Tax Act in an
6amount equal to 50% of the amount of the incremental income tax
7attributable to High Impact Business construction jobs credit
8employees employed in the course of completing a High Impact
9Business construction jobs project. However, the High Impact
10Business construction jobs credit may equal 75% of the amount
11of the incremental income tax attributable to High Impact
12Business construction jobs credit employees if the High Impact
13Business construction jobs credit project is located in an
14underserved area.
15    The Department shall certify to the Department of Revenue:
16(1) the identity of taxpayers that are eligible for the High
17Impact Business construction jobs credit; and (2) the amount
18of High Impact Business construction jobs credits that are
19claimed pursuant to subsection (h-5) of Section 201 of the
20Illinois Income Tax Act in each taxable year. Any business
21entity that receives a High Impact Business construction jobs
22credit shall maintain a certified payroll pursuant to
23subsection (j) of this Section.
24    As used in this subsection (i):
25    "High Impact Business construction jobs credit" means an
26amount equal to 50% (or 75% if the High Impact Business

 

 

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1construction project is located in an underserved area) of the
2incremental income tax attributable to High Impact Business
3construction job employees. The total aggregate amount of
4credits awarded under the Blue Collar Jobs Act (Article 20 of
5Public Act 101-9) shall not exceed $20,000,000 in any State
6fiscal year
7    "High Impact Business construction job employee" means a
8laborer or worker who is employed by an Illinois contractor or
9subcontractor in the actual construction work on the site of a
10High Impact Business construction job project.
11    "High Impact Business construction jobs project" means
12building a structure or building or making improvements of any
13kind to real property, undertaken and commissioned by a
14business that was designated as a High Impact Business by the
15Department. The term "High Impact Business construction jobs
16project" does not include the routine operation, routine
17repair, or routine maintenance of existing structures,
18buildings, or real property.
19    "Incremental income tax" means the total amount withheld
20during the taxable year from the compensation of High Impact
21Business construction job employees.
22    "Underserved area" means a geographic area that meets one
23or more of the following conditions:
24        (1) the area has a poverty rate of at least 20%
25    according to the latest American Community Survey;
26        (2) 35% or more of the families with children in the

 

 

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1    area are living below 130% of the poverty line, according
2    to the latest American Community Survey;
3        (3) at least 20% of the households in the area receive
4    assistance under the Supplemental Nutrition Assistance
5    Program (SNAP); or
6        (4) the area has an average unemployment rate, as
7    determined by the Illinois Department of Employment
8    Security, that is more than 120% of the national
9    unemployment average, as determined by the U.S. Department
10    of Labor, for a period of at least 2 consecutive calendar
11    years preceding the date of the application.
12    (j) Each contractor and subcontractor who is engaged in
13and executing a High Impact Business construction Construction
14jobs project, as defined under subsection (i) of this Section,
15for a business that is entitled to a credit pursuant to
16subsection (i) of this Section shall:
17        (1) make and keep, for a period of 5 years from the
18    date of the last payment made on or after June 5, 2019 (the
19    effective date of Public Act 101-9) on a contract or
20    subcontract for a High Impact Business construction jobs
21    project Construction Jobs Project, records for all
22    laborers and other workers employed by the contractor or
23    subcontractor on the project; the records shall include:
24            (A) the worker's name;
25            (B) the worker's address;
26            (C) the worker's telephone number, if available;

 

 

SB3949- 19 -LRB103 40603 LNS 73240 b

1            (D) the worker's social security number;
2            (E) the worker's classification or
3        classifications;
4            (F) the worker's gross and net wages paid in each
5        pay period;
6            (G) the worker's number of hours worked each day;
7            (H) the worker's starting and ending times of work
8        each day;
9            (I) the worker's hourly wage rate;
10            (J) the worker's hourly overtime wage rate;
11            (K) the worker's race and ethnicity; and
12            (L) the worker's gender;
13        (2) no later than the 15th day of each calendar month,
14    provide a certified payroll for the immediately preceding
15    month to the taxpayer in charge of the High Impact
16    Business construction jobs project; within 5 business days
17    after receiving the certified payroll, the taxpayer shall
18    file the certified payroll with the Department of Labor
19    and the Department of Commerce and Economic Opportunity; a
20    certified payroll must be filed for only those calendar
21    months during which construction on a High Impact Business
22    construction jobs project has occurred; the certified
23    payroll shall consist of a complete copy of the records
24    identified in paragraph (1) of this subsection (j), but
25    may exclude the starting and ending times of work each
26    day; the certified payroll shall be accompanied by a

 

 

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1    statement signed by the contractor or subcontractor or an
2    officer, employee, or agent of the contractor or
3    subcontractor which avers that:
4            (A) he or she has examined the certified payroll
5        records required to be submitted by the Act and such
6        records are true and accurate; and
7            (B) the contractor or subcontractor is aware that
8        filing a certified payroll that he or she knows to be
9        false is a Class A misdemeanor.
10    A general contractor is not prohibited from relying on a
11certified payroll of a lower-tier subcontractor, provided the
12general contractor does not knowingly rely upon a
13subcontractor's false certification.
14    Any contractor or subcontractor subject to this
15subsection, and any officer, employee, or agent of such
16contractor or subcontractor whose duty as an officer,
17employee, or agent it is to file a certified payroll under this
18subsection, who willfully fails to file such a certified
19payroll on or before the date such certified payroll is
20required by this paragraph to be filed and any person who
21willfully files a false certified payroll that is false as to
22any material fact is in violation of this Act and guilty of a
23Class A misdemeanor.
24    The taxpayer in charge of the project shall keep the
25records submitted in accordance with this subsection on or
26after June 5, 2019 (the effective date of Public Act 101-9) for

 

 

SB3949- 21 -LRB103 40603 LNS 73240 b

1a period of 5 years from the date of the last payment for work
2on a contract or subcontract for the High Impact Business
3construction jobs project.
4    The records submitted in accordance with this subsection
5shall be considered public records, except an employee's
6address, telephone number, and social security number, and
7made available in accordance with the Freedom of Information
8Act. The Department of Labor shall share the information with
9the Department in order to comply with the awarding of a High
10Impact Business construction jobs credit. A contractor,
11subcontractor, or public body may retain records required
12under this Section in paper or electronic format.
13    (k) Upon 7 business days' notice, each contractor and
14subcontractor shall make available for inspection and copying
15at a location within this State during reasonable hours, the
16records identified in this subsection (j) to the taxpayer in
17charge of the High Impact Business construction jobs project,
18its officers and agents, the Director of the Department of
19Labor and his or her deputies and agents, and to federal,
20State, or local law enforcement agencies and prosecutors.
21    (l) The changes made to this Section by Public Act
22102-1125 this amendatory Act of the 102nd General Assembly,
23other than the changes in subsection (a), apply to High Impact
24Businesses high impact businesses that submit applications on
25or after February 3, 2023 (the effective date of Public Act
26102-1125) this amendatory Act of the 102nd General Assembly.

 

 

SB3949- 22 -LRB103 40603 LNS 73240 b

1(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
2102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
311-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
4eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
 
5    Section 15. The Illinois Power Agency Act is amended by
6changing Sections 1-5, 1-10, and 1-75 and by adding Section
71-126 as follows:
 
8    (20 ILCS 3855/1-5)
9    Sec. 1-5. Legislative declarations and findings. The
10General Assembly finds and declares:
11        (1) The health, welfare, and prosperity of all
12    Illinois residents require the provision of adequate,
13    reliable, affordable, efficient, and environmentally
14    sustainable electric service at the lowest total cost over
15    time, taking into account any benefits of price stability.
16        (1.5) To provide the highest quality of life for the
17    residents of Illinois and to provide for a clean and
18    healthy environment, it is the policy of this State to
19    rapidly transition to 100% clean energy by 2050.
20        (2) (Blank).
21        (3) (Blank).
22        (4) It is necessary to improve the process of
23    procuring electricity to serve Illinois residents, to
24    promote investment in energy efficiency and

 

 

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

 

 

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

 

 

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1    Illinois; and, enhancing grid reliability and climate
2    resilience via HVDC facilities that are installed
3    underground.
4        (10.6) The health, welfare, and safety of the people
5    of the State are advanced by developing new HVDC
6    transmission lines that are capable of transmitting power
7    to the service territory of a public utility as defined in
8    Section 3-105 of the Public Utilities Act predominantly
9    along transportation rights-of-way, with an HVDC converter
10    station that is located in the service territory of a
11    public utility as defined in Section 3-105 of the Public
12    Utilities Act serving more than 3,000,000 retail
13    customers, and with a project labor agreement as defined
14    in Section 1-10 of this Act.
15        (11) The General Assembly enacted Public Act 96-0795
16    to reform the State's purchasing processes, recognizing
17    that government procurement is susceptible to abuse if
18    structural and procedural safeguards are not in place to
19    ensure independence, insulation, oversight, and
20    transparency.
21        (12) The principles that underlie the procurement
22    reform legislation apply also in the context of power
23    purchasing.
24        (13) To ensure that the benefits of installing
25    renewable resources are available to all Illinois
26    residents and located across the State, subject to

 

 

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1    appropriation, it is necessary for the Agency to provide
2    public information and educational resources on how
3    residents can benefit from the expansion of renewable
4    energy in Illinois and participate in the Illinois Solar
5    for All Program established in Section 1-56, the
6    Adjustable Block program established in Section 1-75, the
7    job training programs established by paragraph (1) of
8    subsection (a) of Section 16-108.12 of the Public
9    Utilities Act, and the programs and resources established
10    by the Energy Transition Act.
11    The General Assembly therefore finds that it is necessary
12to create the Illinois Power Agency and that the goals and
13objectives of that Agency are to accomplish each of the
14following:
15        (A) Develop electricity procurement plans to ensure
16    adequate, reliable, affordable, efficient, and
17    environmentally sustainable electric service at the lowest
18    total cost over time, taking into account any benefits of
19    price stability, for electric utilities that on December
20    31, 2005 provided electric service to at least 100,000
21    customers in Illinois and for small multi-jurisdictional
22    electric utilities that (i) on December 31, 2005 served
23    less than 100,000 customers in Illinois and (ii) request a
24    procurement plan for their Illinois jurisdictional load.
25    The procurement plan shall be updated on an annual basis
26    and shall include renewable energy resources and,

 

 

SB3949- 27 -LRB103 40603 LNS 73240 b

1    beginning with the delivery year commencing June 1, 2017,
2    zero emission credits from zero emission facilities
3    sufficient to achieve the standards specified in this Act.
4        (B) Conduct the competitive procurement processes
5    identified in this Act.
6        (C) Develop electric generation and co-generation
7    facilities that use indigenous coal or renewable
8    resources, or both, financed with bonds issued by the
9    Illinois Finance Authority.
10        (D) Supply electricity from the Agency's facilities at
11    cost to one or more of the following: municipal electric
12    systems, governmental aggregators, or rural electric
13    cooperatives in Illinois.
14        (E) Ensure that the process of power procurement is
15    conducted in an ethical and transparent fashion, immune
16    from improper influence.
17        (F) Continue to review its policies and practices to
18    determine how best to meet its mission of providing the
19    lowest cost power to the greatest number of people, at any
20    given point in time, in accordance with applicable law.
21        (G) Operate in a structurally insulated, independent,
22    and transparent fashion so that nothing impedes the
23    Agency's mission to secure power at the best prices the
24    market will bear, provided that the Agency meets all
25    applicable legal requirements.
26        (H) Implement renewable energy procurement and

 

 

SB3949- 28 -LRB103 40603 LNS 73240 b

1    training programs throughout the State to diversify
2    Illinois electricity supply, improve reliability, avoid
3    and reduce pollution, reduce peak demand, and enhance
4    public health and well-being of Illinois residents,
5    including low-income residents.
6(Source: P.A. 102-662, eff. 9-15-21.)
 
7    (20 ILCS 3855/1-10)
8    Sec. 1-10. Definitions.
9    "Agency" means the Illinois Power Agency.
10    "Agency loan agreement" means any agreement pursuant to
11which the Illinois Finance Authority agrees to loan the
12proceeds of revenue bonds issued with respect to a project to
13the Agency upon terms providing for loan repayment
14installments at least sufficient to pay when due all principal
15of, interest and premium, if any, on those revenue bonds, and
16providing for maintenance, insurance, and other matters in
17respect of the project.
18    "Authority" means the Illinois Finance Authority.
19    "Brownfield site photovoltaic project" means photovoltaics
20that are either:
21        (1) interconnected to an electric utility as defined
22    in this Section, a municipal utility as defined in this
23    Section, a public utility as defined in Section 3-105 of
24    the Public Utilities Act, or an electric cooperative as
25    defined in Section 3-119 of the Public Utilities Act and

 

 

SB3949- 29 -LRB103 40603 LNS 73240 b

1    located at a site that is regulated by any of the following
2    entities under the following programs:
3            (A) the United States Environmental Protection
4        Agency under the federal Comprehensive Environmental
5        Response, Compensation, and Liability Act of 1980, as
6        amended;
7            (B) the United States Environmental Protection
8        Agency under the Corrective Action Program of the
9        federal Resource Conservation and Recovery Act, as
10        amended;
11            (C) the Illinois Environmental Protection Agency
12        under the Illinois Site Remediation Program; or
13            (D) the Illinois Environmental Protection Agency
14        under the Illinois Solid Waste Program; or
15        (2) located at the site of a coal mine that has
16    permanently ceased coal production, permanently halted any
17    re-mining operations, and is no longer accepting any coal
18    combustion residues; has both completed all clean-up and
19    remediation obligations under the federal Surface Mining
20    and Reclamation Act of 1977 and all applicable Illinois
21    rules and any other clean-up, remediation, or ongoing
22    monitoring to safeguard the health and well-being of the
23    people of the State of Illinois, as well as demonstrated
24    compliance with all applicable federal and State
25    environmental rules and regulations, including, but not
26    limited, to 35 Ill. Adm. Code Part 845 and any rules for

 

 

SB3949- 30 -LRB103 40603 LNS 73240 b

1    historic fill of coal combustion residuals, including any
2    rules finalized in Subdocket A of Illinois Pollution
3    Control Board docket R2020-019.
4    "Clean coal facility" means an electric generating
5facility that uses primarily coal as a feedstock and that
6captures and sequesters carbon dioxide emissions at the
7following levels: at least 50% of the total carbon dioxide
8emissions that the facility would otherwise emit if, at the
9time construction commences, the facility is scheduled to
10commence operation before 2016, at least 70% of the total
11carbon dioxide emissions that the facility would otherwise
12emit if, at the time construction commences, the facility is
13scheduled to commence operation during 2016 or 2017, and at
14least 90% of the total carbon dioxide emissions that the
15facility would otherwise emit if, at the time construction
16commences, the facility is scheduled to commence operation
17after 2017. The power block of the clean coal facility shall
18not exceed allowable emission rates for sulfur dioxide,
19nitrogen oxides, carbon monoxide, particulates and mercury for
20a natural gas-fired combined-cycle facility the same size as
21and in the same location as the clean coal facility at the time
22the clean coal facility obtains an approved air permit. All
23coal used by a clean coal facility shall have high volatile
24bituminous rank and greater than 1.7 pounds of sulfur per
25million Btu content, unless the clean coal facility does not
26use gasification technology and was operating as a

 

 

SB3949- 31 -LRB103 40603 LNS 73240 b

1conventional coal-fired electric generating facility on June
21, 2009 (the effective date of Public Act 95-1027).
3    "Clean coal SNG brownfield facility" means a facility that
4(1) has commenced construction by July 1, 2015 on an urban
5brownfield site in a municipality with at least 1,000,000
6residents; (2) uses a gasification process to produce
7substitute natural gas; (3) uses coal as at least 50% of the
8total feedstock over the term of any sourcing agreement with a
9utility and the remainder of the feedstock may be either
10petroleum coke or coal, with all such coal having a high
11bituminous rank and greater than 1.7 pounds of sulfur per
12million Btu content unless the facility reasonably determines
13that it is necessary to use additional petroleum coke to
14deliver additional consumer savings, in which case the
15facility shall use coal for at least 35% of the total feedstock
16over the term of any sourcing agreement; and (4) captures and
17sequesters at least 85% of the total carbon dioxide emissions
18that the facility would otherwise emit.
19    "Clean coal SNG facility" means a facility that uses a
20gasification process to produce substitute natural gas, that
21sequesters at least 90% of the total carbon dioxide emissions
22that the facility would otherwise emit, that uses at least 90%
23coal as a feedstock, with all such coal having a high
24bituminous rank and greater than 1.7 pounds of sulfur per
25million Btu content, and that has a valid and effective permit
26to construct emission sources and air pollution control

 

 

SB3949- 32 -LRB103 40603 LNS 73240 b

1equipment and approval with respect to the federal regulations
2for Prevention of Significant Deterioration of Air Quality
3(PSD) for the plant pursuant to the federal Clean Air Act;
4provided, however, a clean coal SNG brownfield facility shall
5not be a clean coal SNG facility.
6    "Clean energy" means energy generation that is 90% or
7greater free of carbon dioxide emissions.
8    "Commission" means the Illinois Commerce Commission.
9    "Community renewable generation project" means an electric
10generating facility that:
11        (1) is powered by wind, solar thermal energy,
12    photovoltaic cells or panels, biodiesel, crops and
13    untreated and unadulterated organic waste biomass, and
14    hydropower that does not involve new construction of dams;
15        (2) is interconnected at the distribution system level
16    of an electric utility as defined in this Section, a
17    municipal utility as defined in this Section that owns or
18    operates electric distribution facilities, a public
19    utility as defined in Section 3-105 of the Public
20    Utilities Act, or an electric cooperative, as defined in
21    Section 3-119 of the Public Utilities Act;
22        (3) credits the value of electricity generated by the
23    facility to the subscribers of the facility; and
24        (4) is limited in nameplate capacity to less than or
25    equal to 5,000 kilowatts.
26    "Costs incurred in connection with the development and

 

 

SB3949- 33 -LRB103 40603 LNS 73240 b

1construction of a facility" means:
2        (1) the cost of acquisition of all real property,
3    fixtures, and improvements in connection therewith and
4    equipment, personal property, and other property, rights,
5    and easements acquired that are deemed necessary for the
6    operation and maintenance of the facility;
7        (2) financing costs with respect to bonds, notes, and
8    other evidences of indebtedness of the Agency;
9        (3) all origination, commitment, utilization,
10    facility, placement, underwriting, syndication, credit
11    enhancement, and rating agency fees;
12        (4) engineering, design, procurement, consulting,
13    legal, accounting, title insurance, survey, appraisal,
14    escrow, trustee, collateral agency, interest rate hedging,
15    interest rate swap, capitalized interest, contingency, as
16    required by lenders, and other financing costs, and other
17    expenses for professional services; and
18        (5) the costs of plans, specifications, site study and
19    investigation, installation, surveys, other Agency costs
20    and estimates of costs, and other expenses necessary or
21    incidental to determining the feasibility of any project,
22    together with such other expenses as may be necessary or
23    incidental to the financing, insuring, acquisition, and
24    construction of a specific project and starting up,
25    commissioning, and placing that project in operation.
26    "Delivery services" has the same definition as found in

 

 

SB3949- 34 -LRB103 40603 LNS 73240 b

1Section 16-102 of the Public Utilities Act.
2    "Delivery year" means the consecutive 12-month period
3beginning June 1 of a given year and ending May 31 of the
4following year.
5    "Department" means the Department of Commerce and Economic
6Opportunity.
7    "Director" means the Director of the Illinois Power
8Agency.
9    "Demand-response" means measures that decrease peak
10electricity demand or shift demand from peak to off-peak
11periods.
12    "Distributed renewable energy generation device" means a
13device that is:
14        (1) powered by wind, solar thermal energy,
15    photovoltaic cells or panels, biodiesel, crops and
16    untreated and unadulterated organic waste biomass, tree
17    waste, and hydropower that does not involve new
18    construction of dams, waste heat to power systems, or
19    qualified combined heat and power systems;
20        (2) interconnected at the distribution system level of
21    either an electric utility as defined in this Section, a
22    municipal utility as defined in this Section that owns or
23    operates electric distribution facilities, or a rural
24    electric cooperative as defined in Section 3-119 of the
25    Public Utilities Act;
26        (3) located on the customer side of the customer's

 

 

SB3949- 35 -LRB103 40603 LNS 73240 b

1    electric meter and is primarily used to offset that
2    customer's electricity load; and
3        (4) (blank).
4    "Energy efficiency" means measures that reduce the amount
5of electricity or natural gas consumed in order to achieve a
6given end use. "Energy efficiency" includes voltage
7optimization measures that optimize the voltage at points on
8the electric distribution voltage system and thereby reduce
9electricity consumption by electric customers' end use
10devices. "Energy efficiency" also includes measures that
11reduce the total Btus of electricity, natural gas, and other
12fuels needed to meet the end use or uses.
13    "Electric utility" has the same definition as found in
14Section 16-102 of the Public Utilities Act.
15    "Equity investment eligible community" or "eligible
16community" are synonymous and mean the geographic areas
17throughout Illinois which would most benefit from equitable
18investments by the State designed to combat discrimination.
19Specifically, the eligible communities shall be defined as the
20following areas:
21        (1) R3 Areas as established pursuant to Section 10-40
22    of the Cannabis Regulation and Tax Act, where residents
23    have historically been excluded from economic
24    opportunities, including opportunities in the energy
25    sector; and
26        (2) environmental justice communities, as defined by

 

 

SB3949- 36 -LRB103 40603 LNS 73240 b

1    the Illinois Power Agency pursuant to the Illinois Power
2    Agency Act, where residents have historically been subject
3    to disproportionate burdens of pollution, including
4    pollution from the energy sector.
5    "Equity eligible persons" or "eligible persons" means
6persons who would most benefit from equitable investments by
7the State designed to combat discrimination, specifically:
8        (1) persons who graduate from or are current or former
9    participants in the Clean Jobs Workforce Network Program,
10    the Clean Energy Contractor Incubator Program, the
11    Illinois Climate Works Preapprenticeship Program,
12    Returning Residents Clean Jobs Training Program, or the
13    Clean Energy Primes Contractor Accelerator Program, and
14    the solar training pipeline and multi-cultural jobs
15    program created in paragraphs (a)(1) and (a)(3) of Section
16    16-208.12 of the Public Utilities Act;
17        (2) persons who are graduates of or currently enrolled
18    in the foster care system;
19        (3) persons who were formerly incarcerated;
20        (4) persons whose primary residence is in an equity
21    investment eligible community.
22    "Equity eligible contractor" means a business that is
23majority-owned by eligible persons, or a nonprofit or
24cooperative that is majority-governed by eligible persons, or
25is a natural person that is an eligible person offering
26personal services as an independent contractor.

 

 

SB3949- 37 -LRB103 40603 LNS 73240 b

1    "Facility" means an electric generating unit or a
2co-generating unit that produces electricity along with
3related equipment necessary to connect the facility to an
4electric transmission or distribution system.
5    "General contractor" means the entity or organization with
6main responsibility for the building of a construction project
7and who is the party signing the prime construction contract
8for the project.
9    "Governmental aggregator" means one or more units of local
10government that individually or collectively procure
11electricity to serve residential retail electrical loads
12located within its or their jurisdiction.
13    "High voltage direct current converter station" means the
14collection of equipment that converts direct current energy
15from a high voltage direct current transmission line into
16alternating current using Voltage Source Conversion technology
17and that is interconnected with transmission or distribution
18assets located in Illinois.
19    "High voltage direct current renewable energy credit"
20means a renewable energy credit associated with a renewable
21energy resource where the renewable energy resource has
22entered into a contract to transmit the energy associated with
23such renewable energy credit over high voltage direct current
24transmission facilities.
25    "High voltage direct current transmission facilities"
26means the collection of installed equipment that converts

 

 

SB3949- 38 -LRB103 40603 LNS 73240 b

1alternating current energy in one balancing authority location
2to direct current and transmits that direct current energy to
3a high voltage direct current converter station in another
4balancing authority using Voltage Source Conversion
5technology. "High voltage direct current transmission
6facilities" includes the high voltage direct current converter
7station itself and associated high voltage direct current
8transmission lines. Notwithstanding the preceding, after
9September 15, 2021 (the effective date of Public Act 102-662),
10an otherwise qualifying collection of equipment does not
11qualify as high voltage direct current transmission facilities
12unless either: (1) its developer entered into a project labor
13agreement, is capable of transmitting electricity at 525
14kilovolts 525kv with an Illinois converter station located and
15interconnected in the region of the PJM Interconnection, LLC,
16and the system does not operate as a public utility, as that
17term is defined in Section 3-105 of the Public Utilities Act
18serving more than 100,000 customers as of January 1, 2021; or
19(2) its developer entered into a project labor agreement, the
20project is capable of transmitting electricity at 600
21kilovolts or above and has a converter station that is located
22in Illinois or in a state adjacent to Illinois and is
23interconnected to PJM Interconnection, LLC, the Midcontinent
24Independent System Operator, Inc., or their successors.
25    "Hydropower" means any method of electricity generation or
26storage that results from the flow of water, including

 

 

SB3949- 39 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 40 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

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1associated renewable energy credit or renewable energy credits
2from wind, solar thermal energy, photovoltaic cells and
3panels, biodiesel, anaerobic digestion, crops and untreated
4and unadulterated organic waste biomass, and hydropower that
5does not involve new construction of dams, waste heat to power
6systems, or qualified combined heat and power systems. For
7purposes of this Act, landfill gas produced in the State is
8considered a renewable energy resource. "Renewable energy
9resources" does not include the incineration or burning of
10tires, garbage, general household, institutional, and
11commercial waste, industrial lunchroom or office waste,
12landscape waste, railroad crossties, utility poles, or
13construction or demolition debris, other than untreated and
14unadulterated waste wood. "Renewable energy resources" also
15includes high voltage direct current renewable energy credits
16and the associated energy converted to alternating current by
17a high voltage direct current converter station to the extent
18that: (1) the generator of such renewable energy resource
19contracted with a third party to transmit the energy over the
20high voltage direct current transmission facilities, and (2)
21the third-party contracting for delivery of renewable energy
22resources over the high voltage direct current transmission
23facilities have ownership rights over the unretired associated
24high voltage direct current renewable energy credit.
25    "Retail customer" has the same definition as found in
26Section 16-102 of the Public Utilities Act.

 

 

SB3949- 43 -LRB103 40603 LNS 73240 b

1    "Revenue bond" means any bond, note, or other evidence of
2indebtedness issued by the Authority, the principal and
3interest of which is payable solely from revenues or income
4derived from any project or activity of the Agency.
5    "Sequester" means permanent storage of carbon dioxide by
6injecting it into a saline aquifer, a depleted gas reservoir,
7or an oil reservoir, directly or through an enhanced oil
8recovery process that may involve intermediate storage,
9regardless of whether these activities are conducted by a
10clean coal facility, a clean coal SNG facility, a clean coal
11SNG brownfield facility, or a party with which a clean coal
12facility, clean coal SNG facility, or clean coal SNG
13brownfield facility has contracted for such purposes.
14    "Service area" has the same definition as found in Section
1516-102 of the Public Utilities Act.
16    "Settlement period" means the period of time utilized by
17MISO and PJM and their successor organizations as the basis
18for settlement calculations in the real-time energy market.
19    "Sourcing agreement" means (i) in the case of an electric
20utility, an agreement between the owner of a clean coal
21facility and such electric utility, which agreement shall have
22terms and conditions meeting the requirements of paragraph (3)
23of subsection (d) of Section 1-75, (ii) in the case of an
24alternative retail electric supplier, an agreement between the
25owner of a clean coal facility and such alternative retail
26electric supplier, which agreement shall have terms and

 

 

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

 

 

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

 

 

SB3949- 46 -LRB103 40603 LNS 73240 b

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

 

 

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1    "Zero emission facility" means a facility that: (1) is
2fueled by nuclear power; and (2) is interconnected with PJM
3Interconnection, LLC or the Midcontinent Independent System
4Operator, Inc., or their successors.
5(Source: P.A. 102-662, eff. 9-15-21; 103-154, eff. 6-28-23;
6103-380, eff. 1-1-24.)
 
7    (20 ILCS 3855/1-75)
8    Sec. 1-75. Planning and Procurement Bureau. The Planning
9and Procurement Bureau has the following duties and
10responsibilities:
11    (a) The Planning and Procurement Bureau shall each year,
12beginning in 2008, develop procurement plans and conduct
13competitive procurement processes in accordance with the
14requirements of Section 16-111.5 of the Public Utilities Act
15for the eligible retail customers of electric utilities that
16on December 31, 2005 provided electric service to at least
17100,000 customers in Illinois. Beginning with the delivery
18year commencing on June 1, 2017, the Planning and Procurement
19Bureau shall develop plans and processes for the procurement
20of zero emission credits from zero emission facilities in
21accordance with the requirements of subsection (d-5) of this
22Section. Beginning on the effective date of this amendatory
23Act of the 102nd General Assembly, the Planning and
24Procurement Bureau shall develop plans and processes for the
25procurement of carbon mitigation credits from carbon-free

 

 

SB3949- 48 -LRB103 40603 LNS 73240 b

1energy resources in accordance with the requirements of
2subsection (d-10) of this Section. The Planning and
3Procurement Bureau shall also develop procurement plans and
4conduct competitive procurement processes in accordance with
5the requirements of Section 16-111.5 of the Public Utilities
6Act for the eligible retail customers of small
7multi-jurisdictional electric utilities that (i) on December
831, 2005 served less than 100,000 customers in Illinois and
9(ii) request a procurement plan for their Illinois
10jurisdictional load. This Section shall not apply to a small
11multi-jurisdictional utility until such time as a small
12multi-jurisdictional utility requests the Agency to prepare a
13procurement plan for their Illinois jurisdictional load. For
14the purposes of this Section, the term "eligible retail
15customers" has the same definition as found in Section
1616-111.5(a) of the Public Utilities Act.
17    Beginning with the plan or plans to be implemented in the
182017 delivery year, the Agency shall no longer include the
19procurement of renewable energy resources in the annual
20procurement plans required by this subsection (a), except as
21provided in subsection (q) of Section 16-111.5 of the Public
22Utilities Act, and shall instead develop a long-term renewable
23resources procurement plan in accordance with subsection (c)
24of this Section and Section 16-111.5 of the Public Utilities
25Act.
26    In accordance with subsection (c-5) of this Section, the

 

 

SB3949- 49 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 50 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 51 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 52 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 53 -LRB103 40603 LNS 73240 b

1Section 16-111.5 of the Public Utilities Act, to ensure
2adequate, reliable, affordable, efficient, and environmentally
3sustainable electric service at the lowest total cost over
4time, taking into account any benefits of price stability, for
5eligible retail customers of electric utilities that on
6December 31, 2005 provided electric service to at least
7100,000 customers in the State of Illinois, and for eligible
8Illinois retail customers of small multi-jurisdictional
9electric utilities that (i) on December 31, 2005 served less
10than 100,000 customers in Illinois and (ii) request a
11procurement plan for their Illinois jurisdictional load.
12    (c) Renewable portfolio standard.
13        (1)(A) The Agency shall develop a long-term renewable
14    resources procurement plan that shall include procurement
15    programs and competitive procurement events necessary to
16    meet the goals set forth in this subsection (c). The
17    initial long-term renewable resources procurement plan
18    shall be released for comment no later than 160 days after
19    June 1, 2017 (the effective date of Public Act 99-906).
20    The Agency shall review, and may revise on an expedited
21    basis, the long-term renewable resources procurement plan
22    at least every 2 years, which shall be conducted in
23    conjunction with the procurement plan under Section
24    16-111.5 of the Public Utilities Act to the extent
25    practicable to minimize administrative expense. No later
26    than 120 days after the effective date of this amendatory

 

 

SB3949- 54 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 55 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 56 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 57 -LRB103 40603 LNS 73240 b

1    credits under existing contracts, including renewable
2    energy credits as part of renewable energy resources,
3    shall be used to meet the goals set forth in this
4    subsection (c) for the delivery year.
5        (C) The long-term renewable resources procurement plan
6    described in subparagraph (A) of this paragraph (1) shall
7    include the procurement of renewable energy credits from
8    new projects pursuant to the following terms:
9            (i) At least 10,000,000 renewable energy credits
10        delivered annually by the end of the 2021 delivery
11        year, and increasing ratably to reach 45,000,000
12        renewable energy credits delivered annually from new
13        wind and solar projects by the end of delivery year
14        2030 such that the goals in subparagraph (B) of this
15        paragraph (1) are met entirely by procurements of
16        renewable energy credits from new wind and
17        photovoltaic projects. Of that amount, to the extent
18        possible, the Agency shall procure 45% from wind and
19        hydropower projects and 55% from photovoltaic
20        projects. Of the amount to be procured from
21        photovoltaic projects, the Agency shall procure: at
22        least 50% from solar photovoltaic projects using the
23        program outlined in subparagraph (K) of this paragraph
24        (1) from distributed renewable energy generation
25        devices or community renewable generation projects; at
26        least 47% from utility-scale solar projects; at least

 

 

SB3949- 58 -LRB103 40603 LNS 73240 b

1        3% from brownfield site photovoltaic projects that are
2        not community renewable generation projects. High
3        voltage direct current renewable energy credits
4        procured under item (ii-5) shall not be counted toward
5        the procurement requirements of this item.
6            In developing the long-term renewable resources
7        procurement plan, the Agency shall consider other
8        approaches, in addition to competitive procurements,
9        that can be used to procure renewable energy credits
10        from brownfield site photovoltaic projects and thereby
11        help return blighted or contaminated land to
12        productive use while enhancing public health and the
13        well-being of Illinois residents, including those in
14        environmental justice communities, as defined using
15        existing methodologies and findings used by the Agency
16        and its Administrator in its Illinois Solar for All
17        Program. The Agency shall also consider other
18        approaches, in addition to competitive procurements,
19        to procure renewable energy credits from new and
20        existing hydropower facilities to support the
21        development and maintenance of these facilities. The
22        Agency shall explore options to convert existing dams
23        but shall not consider approaches to develop new dams
24        where they do not already exist.
25            (ii) In any given delivery year, if forecasted
26        expenses are less than the maximum budget available

 

 

SB3949- 59 -LRB103 40603 LNS 73240 b

1        under subparagraph (E) of this paragraph (1), the
2        Agency shall continue to procure new renewable energy
3        credits until that budget is exhausted in the manner
4        outlined in item (i) of this subparagraph (C).
5            (ii-5) At least 3,000,000 high voltage direct
6        current renewable energy credits shall be procured
7        under item (iii-5) of subparagraph (G), delivered
8        annually beginning in 2028, or a later date designated
9        by the Agency, subject to availability; at least
10        6,000,000 high voltage direct current renewable energy
11        credits shall be procured under item (iii-5) of
12        subparagraph (G), delivered annually beginning in
13        2030, or a later date designated by the Agency,
14        subject to availability; and at least 9,000,000 high
15        voltage direct current renewable energy credits shall
16        be procured under item (iii-5) of subparagraph (G),
17        delivered annually beginning in 2035, or a later date
18        designated by the Agency, subject to availability.
19            (iii) For purposes of this Section:
20            "New wind projects" means wind renewable energy
21        facilities that are energized after June 1, 2017 for
22        the delivery year commencing June 1, 2017.
23            "New photovoltaic projects" means photovoltaic
24        renewable energy facilities that are energized after
25        June 1, 2017. Photovoltaic projects developed under
26        Section 1-56 of this Act shall not apply towards the

 

 

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

 

 

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

 

 

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1    utility to eligible retail customers in the delivery year
2    ending immediately prior to the procurement, and, for
3    delivery years commencing on and after June 1, 2017, the
4    required procurement of cost-effective renewable energy
5    resources for a particular year shall be measured as a
6    percentage of the actual amount of electricity
7    (megawatt-hours) delivered by the electric utility in the
8    delivery year ending immediately prior to the procurement,
9    to all retail customers in its service territory. For
10    purposes of this subsection (c), the amount paid per
11    kilowatthour means the total amount paid for electric
12    service expressed on a per kilowatthour basis. For
13    purposes of this subsection (c), the total amount paid for
14    electric service includes without limitation amounts paid
15    for supply, transmission, capacity, distribution,
16    surcharges, and add-on taxes.
17        Notwithstanding the requirements of this subsection
18    (c), the total of renewable energy resources procured
19    under the procurement plan for any single year shall be
20    subject to the limitations of this subparagraph (E),
21    except for high voltage direct current renewable energy
22    credits to the extent compensated using funds collected
23    through a tariffed charge authorized by subsection (i-10)
24    of Section 16-108 of the Public Utilities Act. Such
25    procurement shall be reduced for all retail customers
26    based on the amount necessary to limit the annual

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        days after the effective date of this amendatory Act
2        of the 102nd General Assembly in quantities necessary
3        to meet the requirements of subparagraph (C) of this
4        paragraph (1) through the delivery year beginning June
5        1, 2021.
6            (iii-5) Notwithstanding whether the Commission has
7        approved the periodic long-term renewable resources
8        procurement plan revision described in Section
9        16-111.5 of the Public Utilities Act, the Agency shall
10        conduct at least one forward procurement for high
11        voltage direct current renewable energy credits within
12        240 days after the effective date of this amendatory
13        Act of the 103rd General Assembly, in quantities
14        necessary to meet the requirements of item (ii-5) of
15        subparagraph (C) of paragraph (1) of this subsection
16        (c), as follows:
17                (1) The Agency shall structure procurement and
18            contract design of high voltage direct current
19            renewable energy credits in a manner that is
20            substantially similar to the methods used for
21            indexed renewable energy credits, as described in
22            item (v) of this subparagraph (G), except as
23            otherwise required by this item (iii-5).
24                (2) Each bid shall be made by, or on behalf of,
25            a generation facility at a single location, or a
26            portion of that generation facility, that is a

 

 

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1            utility-scale wind project or a utility-scale
2            solar project energized or repowered after the
3            effective date of this amendatory Act of the 103rd
4            General Assembly. Nothing prohibits 2 or more
5            separate portions of the same generating facility
6            or 2 or more separate generating facilities from
7            issuing separate bids while using the same
8            pre-qualified high voltage direct current
9            transmission facility to qualify for high voltage
10            direct current renewable energy credits. Any third
11            party may bid on behalf of one or more generation
12            facilities or a portion of that generation
13            facility if the third party demonstrates to the
14            Agency that it has the authority to bid for the
15            generation facilities or a portion of that
16            generation facility and that the third party has
17            the authority to transfer or cause to be
18            transferred title to renewable energy credits
19            generated by the generation facilities or a
20            portion of that generation facility.
21                (3) Each bid shall include a strike price and
22            total target delivery quantity over the life of
23            the contract and a description of plans to
24            maximize all project revenues and subtract those
25            revenues from the total amount owed under the high
26            voltage direct current renewable energy credit

 

 

SB3949- 69 -LRB103 40603 LNS 73240 b

1            contract, including any revenues a project may
2            receive as described in subitem (12) of this item
3            (iii-5). The Agency, the Commission, the
4            procurement administrator, and the procurement
5            monitor shall exclusively evaluate each bid based
6            only on the strike price and delivery quantity,
7            provided that the Agency shall only allow one or
8            more generating facilities or portions thereof to
9            bid if they meet qualification standards,
10            including identifying the high voltage direct
11            current transmission facility transmitting the
12            energy associated with the high voltage direct
13            current renewable energy credits, submitting an
14            equity plan described in subitem (15) of this item
15            (iii-5), and providing evidence that the high
16            voltage direct current transmission facility
17            connects or will connect 2 separate balancing
18            authorities. The Agency, the Commission, the
19            procurement administrator, and the procurement
20            monitor shall assume that the strike price
21            includes costs to transmit on the high voltage
22            direct current transmission facilities associated
23            with the bid.
24                (4) The standard contracts shall be for 25
25            years. In creating the standard contracts, the
26            Agency shall first ask potential bidders to

 

 

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1            identify material differences with the indexed
2            renewable energy credit contract used for other
3            procurements.
4                (5) Settlement of the index price shall be, at
5            the election of the bidder, against either the
6            node into which the applicable high voltage direct
7            current transmission facility interconnects or the
8            Illinois zone of Midcontinent Independent System
9            Operator, Inc., or PJM Interconnection, LLC, into
10            which the high voltage direct current transmission
11            facility transmits.
12                (6) Payment to a winning bidder shall be
13            monthly, and the payment shall be calculated
14            according to the following formula:
15                    (A) the sum across all hours over the
16                applicable monthly period of the strike price
17                bid by the winning bidder, subject to subitem
18                (14) of this item (iii-5), minus the index
19                price, which for the purposes of this subitem
20                (6) shall be the hourly nodal real-time energy
21                price at a node designated by the winning
22                bidder, multiplied by the energy generation
23                during that hour; and
24                    (B) subtracting from the cumulative amount
25                calculated under subdivision (A) any capacity
26                payment actually made to the generating unit

 

 

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1                for its participation in the Midcontinent
2                Independent System Operator, Inc., PJM
3                Interconnection, LLC, or a bilateral capacity
4                transaction as described in subitem (12) of
5                this item (iii-5).
6                The Agency, the Commission, the procurement
7            administrator, and the procurement monitor shall
8            create a confidential benchmark to evaluate a bid
9            by assuming that the strike price includes the
10            cost of transmission over a pre-qualified high
11            voltage direct current transmission facility.
12                Payments shall be made on a monthly basis for
13            high voltage direct current renewable energy
14            credits actually delivered, not to exceed, on a
15            3-year rolling average basis, 120% of the delivery
16            quantity during that 3-year rolling period.
17                (7) The Agency shall hold a supplemental
18            procurement event within 150 days after the
19            results of each procurement, as needed, to procure
20            the remaining amount of high voltage direct
21            current renewable energy credits so that the total
22            procured is within 5% of the amount of high
23            voltage direct current renewable energy credits to
24            be delivered annually, described in item (ii-5) of
25            subparagraph (C) of paragraph (1) of this
26            subsection (c).

 

 

SB3949- 72 -LRB103 40603 LNS 73240 b

1                (8) The primary funding source for contracts
2            entered into under this item (iii-5) shall be the
3            tariffs proposed and approved under subsection
4            (i-10) of Section 16-108 of the Public Utilities
5            Act.
6                (9) Prior to a bidding event, the Agency shall
7            pre-qualify high voltage direct current
8            transmission facilities, including high voltage
9            direct current transmission facilities that are
10            under development at the time of the procurement.
11            In order to pre-qualify as a high voltage direct
12            current transmission facility, the owner or
13            operator of a high voltage direct current
14            transmission facility or a generating unit, or a
15            third party on its behalf, shall provide the
16            Agency with evidence that the high voltage direct
17            current transmission facility:
18                    (A) has submitted an attestation that the
19                high voltage direct current transmission
20                facility was or will be constructed under a
21                project labor agreement signed by 2 or more
22                construction crafts in compliance with the
23                obligations under item (2) of subparagraph (Q)
24                of this paragraph (1);
25                    (B) has submitted one or more equity
26                plans;

 

 

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1                    (C) is not an electric utility as that
2                term is defined in Section 3-105 of the Public
3                Utilities Act and serving more than 100,000
4                customers as of January 1, 2021;
5                    (D) provides evidence that the high
6                voltage direct current transmission line
7                connects one or more independent system
8                operators or regional transmission
9                organizations; and
10                    (E) otherwise meets the definition of a
11                high voltage direct current transmission
12                facility.
13                Not less than 20 business days before the
14            initial applicant submission for the procurement
15            event described in this item (iii-5), the Agency
16            shall provide a publicly available list of high
17            voltage direct current transmission facilities
18            that have been pre-qualified.
19                (10) As part of the bidding process, each
20            generation facility shall provide evidence that
21            the generation facility has or will have a right
22            to transmit over a pre-qualified high voltage
23            direct current transmission facility a sufficient
24            quantity of energy to fulfill its bid quantity
25            based on an estimated capacity factor and an
26            estimated or actual nameplate capacity.

 

 

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1                (11) The Agency may require collateral prior
2            to signing an indexed renewable energy credit
3            contract under this item (iii-5), not to exceed
4            $1,000 per megawatt of proposed nameplate capacity
5            of the generation unit, and collateral after the
6            signing of the indexed renewable energy credit
7            contract, but prior to delivery of the first high
8            voltage direct current indexed renewable energy
9            credit, not to exceed $4 per high voltage direct
10            current renewable energy credit projected for
11            delivery in the initial year of operation.
12                (12) As part of the bidding process, the
13            applicant shall commit that not less than the
14            prevailing wage, as determined under the
15            Prevailing Wage Act, was or will be paid to
16            employees who are engaged in construction
17            activities associated with the selected project,
18            and that on or before the commercial operation
19            date of the facility, the applicant shall file a
20            report with the Agency certifying that the
21            requirements of this paragraph (12) have been met.
22                (13) Each generation facility, or portion
23            thereof, taking part in the bidding process shall
24            demonstrate to the Agency's satisfaction that the
25            generation facility, or portion thereof, meets the
26            qualifications of a capacity resource as

 

 

SB3949- 75 -LRB103 40603 LNS 73240 b

1            designated by Midcontinent Independent System
2            Operator, Inc. or PJM Interconnection, LLC, or
3            their successors.
4                (14) Notwithstanding any other provision of
5            law, a contract signed by a winning bidder and the
6            electric utility counterparties may, at the
7            request of the winning bidder, be renegotiated
8            with the Agency to reflect a change in conditions.
9            If the Agency concludes that a proposed amendment
10            to the contract reflects a change in conditions
11            that has occurred since the date of the bid,
12            whether or not such changes were foreseeable, the
13            Agency or the winning bidder shall submit such
14            amendment to the Commission for approval. Upon
15            approval, or approval with modifications, each
16            utility counterparty shall execute the amendment
17            not less than 7 calendar days after delivery by
18            the Agency.
19                (15) Each renewable energy credit contract
20            shall include a force majeure provision that
21            addresses conditions related to the generator and
22            the high voltage direct current transmission
23            facility, including curtailment and dispatch
24            limitations.
25                (16) The owner or operator of a high voltage
26            direct current transmission facility, including a

 

 

SB3949- 76 -LRB103 40603 LNS 73240 b

1            high voltage direct current transmission facility
2            that is under development, shall, as a condition
3            of qualification or pre-qualification under this
4            item (iii-5), develop and maintain an equity plan.
5            The equity plan shall include:
6                    (A) the owner's numeric goals for the
7                diversity composition of its suppliers, with a
8                plan to make at least 10% of expenditures on
9                suppliers to suppliers that are:
10                        (i) subcontractors or vendors
11                    registered under the Business Enterprise
12                    Program or a successor program
13                    administered by the Department of Central
14                    Management;
15                        (ii) subcontractors or vendors owned
16                    by minority persons, women, or persons
17                    with disability, as defined in Section 2
18                    of the Business Enterprise for Minorities,
19                    Women, and Persons with Disabilities Act,
20                    LGBTQ-owned business enterprises,
21                    veteran-owned business enterprises, and
22                    business enterprises located in an equity
23                    investment eligible community; and
24                        (iii) equity eligible contractors;
25                    (B) a description of efforts to
26                incentivize a diverse project workforce; and

 

 

SB3949- 77 -LRB103 40603 LNS 73240 b

1                    (C) a community benefits plan that
2                outlines economic and social benefits,
3                including opportunities for investment in
4                communities located along the route of the
5                high voltage direct current transmission line
6                and actions taken to mitigate or reduce any
7                environmental and public health impacts; the
8                community benefits plan may consider donations
9                or grants to community-based organizations
10                serving equity investment eligible
11                communities.
12                Each owner of a pre-qualified high voltage
13            direct current transmission facility with an
14            equity plan shall track expenditures made in
15            accordance with the equity plan and shall report
16            the expenditures to the Commission in compliance
17            with reporting obligations under Section 5-117 of
18            the Public Utilities Act, provided that nothing
19            prohibits the high voltage direct current
20            transmission facility from requesting confidential
21            treatment of information in such report or any
22            supporting evidence.
23                Notwithstanding subsection (c-10) of this
24            Section, the equity plan shall be the exclusive
25            source of obligations related to equity eligible
26            persons and equity eligible contractors related to

 

 

SB3949- 78 -LRB103 40603 LNS 73240 b

1            the development, construction, or operation of the
2            high voltage direct current transmission line or
3            participating new utility-scale solar or new
4            utility-scale wind project.
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

 

 

SB3949- 79 -LRB103 40603 LNS 73240 b

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

 

 

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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 megawatt
15        hour megawatthour of energy produced from the
16        facility.
17            The informational filing shall identify each
18        facility that was eligible to satisfy the alternative
19        retail electric supplier's obligations under Section
20        16-115D of the Public Utilities Act as described in
21        this item (i).
22            (ii) For a given delivery year, the alternative
23        retail electric supplier may elect to supply its
24        retail customers with renewable energy credits from
25        the facility or facilities described in item (i) of
26        this subparagraph (H) that continue to be owned by the

 

 

SB3949- 94 -LRB103 40603 LNS 73240 b

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

 

 

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1                For delivery years beginning June 1, 2019 and
2            each year thereafter, the maximum amount of
3            renewable energy credits to be supplied by an
4            alternative retail electric supplier under this
5            subparagraph (H) shall be 68% multiplied by 50%
6            multiplied by 16% multiplied by the amount of
7            metered electricity (megawatt-hours) delivered by
8            the alternative retail electric supplier to
9            Illinois retail customers during the delivery year
10            ending May 31, 2016, provided that the 16% value
11            shall increase by 1.5% each delivery year
12            thereafter to 25% by the delivery year beginning
13            June 1, 2025, and thereafter the 25% value shall
14            apply to each delivery year.
15            For each delivery year, the total amount of
16        renewable energy credits supplied by all alternative
17        retail electric suppliers under this subparagraph (H)
18        shall not exceed 9% of the Illinois target renewable
19        energy credit quantity. The Illinois target renewable
20        energy credit quantity for the delivery year beginning
21        June 1, 2018 is 14.5% multiplied by the total amount of
22        metered electricity (megawatt-hours) delivered in the
23        delivery year immediately preceding that delivery
24        year, provided that the 14.5% shall increase by 1.5%
25        each delivery year thereafter to 25% by the delivery
26        year beginning June 1, 2025, and thereafter the 25%

 

 

SB3949- 96 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 97 -LRB103 40603 LNS 73240 b

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

 

 

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1    its residents based on the public interest criteria
2    described above. For the purposes of this Section,
3    renewable resources that are delivered via a high voltage
4    direct current transmission facilities converter station
5    located in Illinois shall be deemed generated in Illinois
6    or an adjacent state at the time and location the energy is
7    converted to alternating current by the high voltage
8    direct current transmission facilities converter station
9    if the high voltage direct current transmission line:
10            (i) after the effective date of this amendatory
11        Act of the 103rd 102nd General Assembly, will be was
12        constructed with a project labor agreement;
13            (ii) is capable of transmitting electricity at 525
14        kilovolts or above 525kv;
15            (iii) has a an Illinois converter station located
16        within or and interconnected with in the region of the
17        PJM Interconnection, LLC, or Midcontinent Independent
18        System Operator, Inc.; and (iv) does not operate as a
19        public utility; and (v) if the high voltage direct
20        current transmission line
21            (iv) was energized after June 1, 2023.
22    To ensure that the public interest criteria are applied to
23the procurement and given full effect, the Agency's long-term
24procurement plan shall describe in detail how each public
25interest factor shall be considered and weighted for
26facilities located in states adjacent to Illinois.

 

 

SB3949- 99 -LRB103 40603 LNS 73240 b

1        (J) In order to promote the competitive development of
2    renewable energy resources in furtherance of the State's
3    interest in the health, safety, and welfare of its
4    residents, renewable energy credits shall not be eligible
5    to be counted toward the renewable energy requirements of
6    this subsection (c) if they are sourced from a generating
7    unit whose costs were being recovered through rates
8    regulated by this State or any other state or states on or
9    after January 1, 2017. Each contract executed to purchase
10    renewable energy credits under this subsection (c) shall
11    provide for the contract's termination if the costs of the
12    generating unit supplying the renewable energy credits
13    subsequently begin to be recovered through rates regulated
14    by this State or any other state or states; and each
15    contract shall further provide that, in that event, the
16    supplier of the credits must return 110% of all payments
17    received under the contract. Amounts returned under the
18    requirements of this subparagraph (J) shall be retained by
19    the utility and all of these amounts shall be used for the
20    procurement of additional renewable energy credits from
21    new wind or new photovoltaic resources as defined in this
22    subsection (c). The long-term plan shall provide that
23    these renewable energy credits shall be procured in the
24    next procurement event.
25        Notwithstanding the limitations of this subparagraph
26    (J), renewable energy credits sourced from generating

 

 

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1    units that are constructed, purchased, owned, or leased by
2    an electric utility as part of an approved project,
3    program, or pilot under Section 1-56 of this Act shall be
4    eligible to be counted toward the renewable energy
5    requirements of this subsection (c), regardless of how the
6    costs of these units are recovered. As long as a
7    generating unit or an identifiable portion of a generating
8    unit has not had and does not have its costs recovered
9    through rates regulated by this State or any other state,
10    HVDC renewable energy credits associated with that
11    generating unit or identifiable portion thereof shall be
12    eligible to be counted toward the renewable energy
13    requirements of this subsection (c). If a generation
14    facility does not have its costs recovered through rates
15    regulated by this State or any other state, the high
16    voltage direct current renewable energy credits generated
17    by that generation facility are eligible to be counted
18    toward the renewable energy requirements of this
19    subsection without regard to cost recovery for the
20    associated high voltage direct current transmission
21    facilities.
22        (K) The long-term renewable resources procurement plan
23    developed by the Agency in accordance with subparagraph
24    (A) of this paragraph (1) shall include an Adjustable
25    Block program for the procurement of renewable energy
26    credits from new photovoltaic projects that are

 

 

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

 

 

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1    in all blocks for all categories shall be sufficient to
2    meet the goals in this subsection (c). The Agency shall
3    strive to issue a single block sized to provide for
4    stability and market growth. The Agency shall establish
5    program eligibility requirements that ensure that projects
6    that enter the program are sufficiently mature to indicate
7    a demonstrable path to completion. The Agency may
8    periodically review its prior decisions establishing the
9    amount of generation capacity in each block, and the
10    purchase price for each block, and may propose, on an
11    expedited basis, changes to these previously set values,
12    including but not limited to redistributing these amounts
13    and the available funds as necessary and appropriate,
14    subject to Commission approval as part of the periodic
15    plan revision process described in Section 16-111.5 of the
16    Public Utilities Act. The Agency may define different
17    block sizes, purchase prices, or other distinct terms and
18    conditions for projects located in different utility
19    service territories if the Agency deems it necessary to
20    meet the goals in this subsection (c).
21        The Adjustable Block program shall include the
22    following categories in at least the following amounts:
23            (i) At least 20% from distributed renewable energy
24        generation devices with a nameplate capacity of no
25        more than 25 kilowatts.
26            (ii) At least 20% from distributed renewable

 

 

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1        energy generation devices with a nameplate capacity of
2        more than 25 kilowatts and no more than 5,000
3        kilowatts. The Agency may create sub-categories within
4        this category to account for the differences between
5        projects for small commercial customers, large
6        commercial customers, and public or non-profit
7        customers.
8            (iii) At least 30% from photovoltaic community
9        renewable generation projects. Capacity for this
10        category for the first 2 delivery years after the
11        effective date of this amendatory Act of the 102nd
12        General Assembly shall be allocated to waitlist
13        projects as provided in paragraph (3) of item (iv) of
14        subparagraph (G). Starting in the third delivery year
15        after the effective date of this amendatory Act of the
16        102nd General Assembly or earlier if the Agency
17        determines there is additional capacity needed for to
18        meet previous delivery year requirements, the
19        following shall apply:
20                (1) the Agency shall select projects on a
21            first-come, first-serve basis, however the Agency
22            may suggest additional methods to prioritize
23            projects that are submitted at the same time;
24                (2) projects shall have subscriptions of 25 kW
25            or less for at least 50% of the facility's
26            nameplate capacity and the Agency shall price the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            (v) Each contract shall include provisions to
2        ensure the delivery of the estimated quantity of
3        renewable energy credits and ongoing collateral
4        requirements and other provisions deemed appropriate
5        by the Agency.
6            (vi) The utility shall be the counterparty to the
7        contracts executed under this subparagraph (L) that
8        are approved by the Commission under the process
9        described in Section 16-111.5 of the Public Utilities
10        Act. No contract shall be executed for an amount that
11        is less than one renewable energy credit per year.
12            (vii) If, at any time, approved applications for
13        the Adjustable Block program exceed funds collected by
14        the electric utility or would cause the Agency to
15        exceed the limitation described in subparagraph (E) of
16        this paragraph (1) on the amount of renewable energy
17        resources that may be procured, then the Agency may
18        consider future uncommitted funds to be reserved for
19        these contracts on a first-come, first-served basis.
20            (viii) Nothing in this Section shall require the
21        utility to advance any payment or pay any amounts that
22        exceed the actual amount of revenues anticipated to be
23        collected by the utility under paragraph (6) of this
24        subsection (c) and subsection (k) of Section 16-108 of
25        the Public Utilities Act inclusive of eligible funds
26        collected in prior years and alternative compliance

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    renewable generation projects to be portable and
2    transferable. For purposes of this subparagraph (N),
3    "portable" means that subscriptions may be retained by the
4    subscriber even if the subscriber relocates or changes its
5    address within the same utility service territory; and
6    "transferable" means that a subscriber may assign or sell
7    subscriptions to another person within the same utility
8    service territory.
9        Through the development of its long-term renewable
10    resources procurement plan, the Agency may consider
11    whether community renewable generation projects utilizing
12    technologies other than photovoltaics should be supported
13    through State-administered incentive funding, and may
14    issue requests for information to gauge market demand.
15        Electric utilities shall provide a monetary credit to
16    a subscriber's subsequent bill for service for the
17    proportional output of a community renewable generation
18    project attributable to that subscriber as specified in
19    Section 16-107.5 of the Public Utilities Act.
20        The Agency shall purchase renewable energy credits
21    from subscribed shares of photovoltaic community renewable
22    generation projects through the Adjustable Block program
23    described in subparagraph (K) of this paragraph (1) or
24    through the Illinois Solar for All Program described in
25    Section 1-56 of this Act. The electric utility shall
26    purchase any unsubscribed energy from community renewable

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        filed with the Director in accordance with procedures
2        established by the Agency through its long-term
3        renewable resources procurement plan. Any information
4        submitted to the Agency in this item (2) shall be
5        considered commercially sensitive information. At a
6        minimum, the project labor agreement must provide the
7        names, addresses, and occupations of the owner of the
8        plant and the individuals representing the labor
9        organization employees participating in the project
10        labor agreement consistent with the Project Labor
11        Agreements Act. The agreement must also specify the
12        terms and conditions as defined by this Act.
13        Notwithstanding any other provision of this
14        subparagraph, utility-scale solar projects and
15        utility-scale wind projects that are not located in
16        Illinois, but are associated with high voltage direct
17        current renewable energy credits are not obligated to
18        comply with this subparagraph if the associated high
19        voltage direct current transmission facility was
20        constructed under a project labor agreement signed by
21        2 or more construction crafts and the construction
22        project workforce for the generation unit was paid at
23        least the prevailing wage as determined by the United
24        States Department of Labor in the locality where the
25        work is being performed.
26            (3) It is the intent of this Section to ensure that

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3949- 149 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

SB3949- 151 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 152 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

SB3949- 154 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 155 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 156 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 157 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    average of 30% of the project workforce for each entity
2    participating in a procurement program is done by equity
3    eligible persons or equity eligible contractors by 2030.
4    The Agency shall propose a schedule of percentage
5    increases to the minimum equity standards in its draft
6    revised renewable energy resources procurement plan
7    submitted to the Commission for approval pursuant to
8    paragraph (5) of subsection (b) of Section 16-111.5 of the
9    Public Utilities Act. In determining these annual
10    increases, the Agency shall have the discretion to
11    establish different minimum equity standards for different
12    types of procurements and different regions of the State
13    if the Agency finds that doing so will further the
14    purposes of this subsection (c-10). The proposed schedule
15    of annual increases shall be revisited and updated on an
16    annual basis. Revisions shall be developed with
17    stakeholder input, including from equity eligible persons,
18    equity eligible contractors, clean energy industry
19    representatives, and community-based organizations that
20    work with such persons and contractors.
21            (A) At the start of each delivery year, the Agency
22        shall require a compliance plan from each entity
23        participating in a procurement program of subsection
24        (c) of this Section that demonstrates how they will
25        achieve compliance with the minimum equity standard
26        percentage for work completed in that delivery year.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            (C) any other information the Agency determines is
2        necessary for the purpose of achieving the purpose of
3        this subsection.
4        (4) Publication of collected information. The Agency
5    shall publish, at least annually, information on the
6    demographics of program participants on an aggregate
7    basis.
8        (5) Nothing in this subsection shall be interpreted to
9    limit the authority of the Agency, or other agency or
10    department of the State, to require or collect demographic
11    information from applicants of other State programs.
12    (c-25) Energy Workforce Equity Database.
13        (1) The Agency, in consultation with the Department of
14    Commerce and Economic Opportunity, shall create an Energy
15    Workforce Equity Database, and may contract with a third
16    party to do so ("database program administrator"). If the
17    Department decides to contract with a third party, that
18    third party shall be exempt from the requirements of
19    Section 20-10 of the Illinois Procurement Code. The Energy
20    Workforce Equity Database shall be a searchable database
21    of suppliers, vendors, and subcontractors for clean energy
22    industries that is:
23            (A) publicly accessible;
24            (B) easy for people to find and use;
25            (C) organized by company specialty or field;
26            (D) region-specific; and

 

 

SB3949- 175 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

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

 

 

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

 

 

SB3949- 179 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 180 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

SB3949- 182 -LRB103 40603 LNS 73240 b

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

 

 

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1            sourcing agreement shall pay the contract price
2            for electricity delivered under such sourcing
3            agreement;
4                (ii) require delivery of electricity to the
5            regional transmission organization market of the
6            utility that is party to such sourcing agreement;
7                (iii) require the utility party to such
8            sourcing agreement to buy from the initial clean
9            coal facility in each hour an amount of energy
10            equal to all clean coal energy made available from
11            the initial clean coal facility during such hour
12            times a fraction, the numerator of which is such
13            utility's retail market sales of electricity
14            (expressed in kilowatthours sold) 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 purchased by the utility
26            in any year will be limited by paragraph (2) of

 

 

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

 

 

SB3949- 185 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 186 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 187 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 188 -LRB103 40603 LNS 73240 b

1            clean coal facility shall not forfeit its
2            designation as a clean coal facility if the
3            facility fails to fully comply with the applicable
4            carbon sequestration requirements in any given
5            year, provided the requisite offsets are
6            purchased. However, the Attorney General, on
7            behalf of the People of the State of Illinois, may
8            specifically enforce the facility's sequestration
9            requirement and the other terms of this contract
10            provision. Compliance with the sequestration
11            requirements and offset purchase requirements
12            specified in paragraph (3) of this subsection (d)
13            shall be reviewed annually by an independent
14            expert retained by the owner of the initial clean
15            coal facility, with the advance written approval
16            of the Attorney General. The Commission may, in
17            the course of the review specified in item (vii),
18            reduce the allowable return on equity for the
19            facility if the facility willfully fails to comply
20            with the carbon capture and sequestration
21            requirements set forth in this item (v);
22                (vi) include limits on, and accordingly
23            provide for modification of, the amount the
24            utility is required to source under the sourcing
25            agreement consistent with paragraph (2) of this
26            subsection (d);

 

 

SB3949- 189 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 190 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 191 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 192 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 193 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 194 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 195 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 196 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

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1    calendar year 2014. For an electric utility serving fewer
2    than 100,000 retail customers in this State that
3    requested, under Section 16-111.5 of the Public Utilities
4    Act, that the Agency procure power and energy for all or a
5    portion of the utility's Illinois load for the delivery
6    year commencing June 1, 2016, the Agency shall procure
7    contracts with zero emission facilities that are
8    reasonably capable of generating cost-effective zero
9    emission credits in an amount approximately equal to 16%
10    of the portion of power and energy to be procured by the
11    Agency for the utility. The duration of the contracts
12    procured under this subsection (d-5) shall be for a term
13    of 10 years ending May 31, 2027. The quantity of zero
14    emission credits to be procured under the contracts shall
15    be all of the zero emission credits generated by the zero
16    emission facility in each delivery year; however, if the
17    zero emission facility is owned by more than one entity,
18    then the quantity of zero emission credits to be procured
19    under the contracts shall be the amount of zero emission
20    credits that are generated from the portion of the zero
21    emission facility that is owned by the winning supplier.
22        The 16% value identified in this paragraph (1) is the
23    average of the percentage targets in subparagraph (B) of
24    paragraph (1) of subsection (c) of this Section for the 5
25    delivery years beginning June 1, 2017.
26        The procurement process shall be subject to the

 

 

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

 

 

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

 

 

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

 

 

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1            market price index for the consecutive 12-month
2            period ending May 31, 2016 is $31.40 per megawatt
3            hour megawatthour, which is based on the sum of
4            (aa) the average day-ahead energy price across all
5            hours of such 12-month period at the PJM
6            Interconnection LLC Northern Illinois Hub, (bb)
7            50% multiplied by the Base Residual Auction, or
8            its successor, capacity price for the rest of the
9            RTO zone group determined by PJM Interconnection
10            LLC, divided by 24 hours per day, and (cc) 50%
11            multiplied by the Planning Resource Auction, or
12            its successor, capacity price for Zone 4
13            determined by the Midcontinent Independent System
14            Operator, Inc., divided by 24 hours per day.
15                (iii) Market price index: The market price
16            index for a delivery year shall be the sum of
17            projected energy prices and projected capacity
18            prices determined as follows:
19                    (aa) Projected energy prices: the
20                projected energy prices for the applicable
21                delivery year shall be calculated once for the
22                year using the forward market price for the
23                PJM Interconnection, LLC Northern Illinois
24                Hub. The forward market price shall be
25                calculated as follows: the energy forward
26                prices for each month of the applicable

 

 

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

 

 

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1                        (II) For the delivery year commencing
2                    June 1, 2020, and each year thereafter,
3                    the projected capacity price shall be
4                    equal to the sum of (1) 50% multiplied by
5                    the Base Residual Auction, or its
6                    successor, price for the ComEd zone as
7                    determined by PJM Interconnection LLC,
8                    divided by 24 hours per day, and (2) 50%
9                    multiplied by the resource auction price
10                    determined in the resource auction
11                    administered by the Midcontinent
12                    Independent System Operator, Inc., in
13                    which the largest percentage of load
14                    cleared for Local Resource Zone 4, divided
15                    by 24 hours per day, and where such price
16                    is determined by the Midcontinent
17                    Independent System Operator, Inc.
18            For purposes of this subsection (d-5):
19                "Rest of the RTO" and "ComEd Zone" shall have
20            the meaning ascribed to them by PJM
21            Interconnection, LLC.
22                "RTO" means regional transmission
23            organization.
24            (C) No later than 45 days after June 1, 2017 (the
25        effective date of Public Act 99-906), the Agency shall
26        publish its proposed zero emission standard

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1                    after January 1, 2015, renewable energy
2                    credits from photovoltaic distributed
3                    generation projects in procurement events
4                    held under subsection (c) of this Section.
5            Each utility shall enter into binding contractual
6        arrangements with the winning suppliers.
7            The procurement described in this subsection
8        (d-5), including, but not limited to, the execution of
9        all contracts procured, shall be completed no later
10        than May 10, 2017. Based on the effective date of
11        Public Act 99-906, the Agency and Commission may, as
12        appropriate, modify the various dates and timelines
13        under this subparagraph and subparagraphs (C) and (D)
14        of this paragraph (1). The procurement and plan
15        approval processes required by this subsection (d-5)
16        shall be conducted in conjunction with the procurement
17        and plan approval processes required by subsection (c)
18        of this Section and Section 16-111.5 of the Public
19        Utilities Act, to the extent practicable.
20        Notwithstanding whether a procurement event is
21        conducted under Section 16-111.5 of the Public
22        Utilities Act, the Agency shall immediately initiate a
23        procurement process on June 1, 2017 (the effective
24        date of Public Act 99-906).
25            (D) Following the procurement event described in
26        this paragraph (1) and consistent with subparagraph

 

 

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

 

 

SB3949- 211 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 212 -LRB103 40603 LNS 73240 b

1            contract and that a prudent owner or operator of
2            such resource would not undertake.
3                (iv) A zero emission facility shall be
4            permitted to terminate the contract in the event
5            the Nuclear Regulatory Commission terminates the
6            resource's license.
7            (F) If the zero emission facility elects to
8        terminate a contract under subparagraph (E) of this
9        paragraph (1), then the Commission shall reopen the
10        docket in which the Commission approved the zero
11        emission standard procurement plan under subparagraph
12        (C) of this paragraph (1) and, after notice and
13        hearing, enter an order acknowledging the contract
14        termination election if such termination is consistent
15        with the provisions of this subsection (d-5).
16        (2) For purposes of this subsection (d-5), the amount
17    paid per kilowatthour means the total amount paid for
18    electric service expressed on a per kilowatthour basis.
19    For purposes of this subsection (d-5), the total amount
20    paid for electric service includes, without limitation,
21    amounts paid for supply, transmission, distribution,
22    surcharges, and add-on taxes.
23        Notwithstanding the requirements of this subsection
24    (d-5), the contracts executed under this subsection (d-5)
25    shall provide that the total of zero emission credits
26    procured under a procurement plan shall be subject to the

 

 

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

 

 

SB3949- 214 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

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1        subparagraph (B) of paragraph (1) of this subsection
2        (d-5).
3        If the subtraction yields a negative number, then the
4    Average ZEC Payment shall be zero.
5        (4) Cost-effective zero emission credits procured from
6    zero emission facilities shall satisfy the applicable
7    definitions set forth in Section 1-10 of this Act.
8        (5) The electric utility shall retire all zero
9    emission credits used to comply with the requirements of
10    this subsection (d-5).
11        (6) Electric utilities shall be entitled to recover
12    all of the costs associated with the procurement of zero
13    emission credits through an automatic adjustment clause
14    tariff in accordance with subsection (k) and (m) of
15    Section 16-108 of the Public Utilities Act, and the
16    contracts executed under this subsection (d-5) shall
17    provide that the utilities' payment obligations under such
18    contracts shall be reduced if an adjustment is required
19    under subsection (m) of Section 16-108 of the Public
20    Utilities Act.
21        (7) This subsection (d-5) shall become inoperative on
22    January 1, 2028.
23    (d-10) Nuclear Plant Assistance; carbon mitigation
24credits.
25    (1) The General Assembly finds:
26        (A) The health, welfare, and prosperity of all

 

 

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

 

 

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

 

 

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

 

 

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1    June 1, 2022, the Agency shall, for electric utilities
2    serving at least 3,000,000 retail customers in the State,
3    seek to procure contracts for no more than approximately
4    54,500,000 cost-effective carbon mitigation credits from
5    carbon-free energy resources because such credits are
6    necessary to support current levels of carbon-free energy
7    generation and ensure the State meets its carbon dioxide
8    emissions reduction goals. The Agency shall not make a
9    partial award of a contract for carbon mitigation credits
10    covering a fractional amount of a carbon-free energy
11    resource's projected output.
12        (B) Each carbon-free energy resource that intends to
13    participate in a procurement shall be required to submit
14    to the Agency the following information for the resource
15    on or before the date established by the Agency:
16            (i) the in-service date and remaining useful life
17        of the carbon-free energy resource;
18            (ii) the amount of power generated annually for
19        each of the past 10 years, which shall be used to
20        determine the capability of each facility;
21            (iii) a commitment to be reflected in any contract
22        entered into pursuant to this subsection (d-10) to
23        continue operating the carbon-free energy resource at
24        a capacity factor of at least 88% annually on average
25        for the duration of the contract or contracts executed
26        under the procurement held under this subsection

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3949- 225 -LRB103 40603 LNS 73240 b

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

 

 

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1            2024, the baseline costs shall be an amount equal
2            to $33.43 per megawatt-hour.
3                (IV) For the delivery year beginning June 1,
4            2025, the baseline costs shall be an amount equal
5            to $33.50 per megawatt-hour.
6                (V) For the delivery year beginning June 1,
7            2026, the baseline costs shall be an amount equal
8            to $34.50 per megawatt-hour.
9            An Environmental Protection Agency consultant
10        forecast, included in a report issued April 14, 2021,
11        projects that a carbon-free energy resource has the
12        opportunity to earn on average approximately $30.28
13        per megawatt-hour, for the sale of energy and capacity
14        during the time period between 2022 and 2027.
15        Therefore, the sale of carbon mitigation credits
16        provides the opportunity to receive an additional
17        amount per megawatt-hour in addition to the projected
18        prices for energy and capacity.
19            Although actual energy and capacity prices may
20        vary from year-to-year, the General Assembly finds
21        that this customer protection cap will help ensure
22        that the cost of carbon mitigation credits will be
23        less than its value, based upon the social cost of
24        carbon identified in the Technical Support Document
25        issued in February 2021 by the U.S. Interagency
26        Working Group on Social Cost of Greenhouse Gases and

 

 

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1        the PJM Interconnection, LLC carbon dioxide marginal
2        emission rate for 2020, and that a carbon-free energy
3        resource receiving payment for carbon mitigation
4        credits receives no more than necessary to keep those
5        units in operation.
6        (D) No later than 7 days after the effective date of
7    this amendatory Act of the 102nd General Assembly, the
8    Agency shall publish its proposed carbon mitigation credit
9    procurement plan. The Plan shall provide that winning bids
10    shall be selected by taking into consideration which
11    resources best match public interest criteria that
12    include, but are not limited to, minimizing carbon dioxide
13    emissions that result from electricity consumed in
14    Illinois and minimizing sulfur dioxide, nitrogen oxide,
15    and particulate matter emissions that adversely affect the
16    citizens of this State. The selection of winning bids
17    shall also take into account the incremental environmental
18    benefits resulting from the procurement or procurements,
19    such as any existing environmental benefits that are
20    preserved by a procurement held under this subsection
21    (d-10) and would cease to exist if the procurement were
22    not held, including the preservation of carbon-free energy
23    resources. For those bidders having the same public
24    interest criteria score, the relative ranking of such
25    bidders shall be determined by price. The Plan shall
26    describe in detail how each public interest factor shall

 

 

SB3949- 228 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 229 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 230 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 231 -LRB103 40603 LNS 73240 b

1    subparagraphs (D) and (E) of this paragraph (3) to meet
2    the December 3, 2021 contract execution deadline.
3    Following the completion of such procurements, and
4    consistent with this paragraph (3), the Agency shall
5    calculate the payments to be made under each contract in a
6    timely fashion.
7        (F-1) Costs incurred by the electric utility pursuant
8    to a contract authorized by this subsection (d-10) shall
9    be deemed prudently incurred and reasonable in amount, and
10    the electric utility shall be entitled to full cost
11    recovery pursuant to a tariff or tariffs filed with the
12    Commission.
13        (G) The counterparty electric utility shall retire all
14    carbon mitigation credits used to comply with the
15    requirements of this subsection (d-10).
16        (H) If a carbon-free energy resource is sold to
17    another owner, the rights, obligations, and commitments
18    under this subsection (d-10) shall continue to the
19    subsequent owner.
20        (I) This subsection (d-10) shall become inoperative on
21    January 1, 2028.
22    (e) The draft procurement plans are subject to public
23comment, as required by Section 16-111.5 of the Public
24Utilities Act.
25    (f) The Agency shall submit the final procurement plan to
26the Commission. The Agency shall revise a procurement plan if

 

 

SB3949- 232 -LRB103 40603 LNS 73240 b

1the Commission determines that it does not meet the standards
2set forth in Section 16-111.5 of the Public Utilities Act.
3    (g) The Agency shall assess fees to each affected utility
4to recover the costs incurred in preparation of the annual
5procurement plan for the utility.
6    (h) The Agency shall assess fees to each bidder to recover
7the costs incurred in connection with a competitive
8procurement process.
9    (i) A renewable energy credit, carbon emission credit,
10zero emission credit, or carbon mitigation credit can only be
11used once to comply with a single portfolio or other standard
12as set forth in subsection (c), subsection (d), or subsection
13(d-5) of this Section, respectively. A renewable energy
14credit, carbon emission credit, zero emission credit, or
15carbon mitigation credit cannot be used to satisfy the
16requirements of more than one standard. If more than one type
17of credit is issued for the same megawatt hour of energy, only
18one credit can be used to satisfy the requirements of a single
19standard. After such use, the credit must be retired together
20with any other credits issued for the same megawatt hour of
21energy.
22(Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
23103-580, eff. 12-8-23.)
 
24    (20 ILCS 3855/1-126 new)
25    Sec. 1-126. Transmission systems report. No later than

 

 

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1December 1, 2024, the Agency shall create and issue a report
2that describes how transmission systems limit the ability of
3electric utilities to meet renewable resource procurement
4goals described in subsection (c) of Section 1-75, including,
5but not limited to, constraints on transmission
6interconnection, the transmission capacity to transmit
7renewable energy resources into this State, and the
8opportunities to procure renewable energy resources associated
9with specific existing or proposed transmission assets. The
10Agency shall evaluate transmission lines and high voltage
11direct current transmission facilities that connect one or
12more independent system operator or regional transmission
13organizations so that renewable energy resources can be
14transmitted to electrical load centers. The Agency shall
15solicit stakeholder feedback and incorporate that feedback in
16its report.
 
17    Section 20. The Public Utilities Act is amended by
18changing Sections 3-105, 16-108, 16-111.5, and 16-111.11 as
19follows:
 
20    (220 ILCS 5/3-105)  (from Ch. 111 2/3, par. 3-105)
21    Sec. 3-105. Public utility.
22    (a) "Public utility" means and includes, except where
23otherwise expressly provided in this Section, every
24corporation, company, limited liability company, association,

 

 

SB3949- 234 -LRB103 40603 LNS 73240 b

1joint stock company or association, firm, partnership or
2individual, their lessees, trustees, or receivers appointed by
3any court whatsoever that owns, controls, operates or manages,
4within this State, directly or indirectly, for public use, any
5plant, equipment, or property used or to be used for or in
6connection with, or now owns or is seeking Commission approval
7to own or control controls any franchise, license, permit or
8right to engage in:
9        (1) the production, storage, transmission, sale,
10    delivery or furnishing of heat, cold, power, electricity,
11    water, or light, except when used solely for
12    communications purposes;
13        (2) the disposal of sewerage; or
14        (3) the conveyance of oil or gas by pipe line.
15    (b) "Public utility" does not include, however:
16        (1) public utilities that are owned and operated by
17    any political subdivision, public institution of higher
18    education or municipal corporation of this State, or
19    public utilities that are owned by such political
20    subdivision, public institution of higher education, or
21    municipal corporation and operated by any of its lessees
22    or operating agents;
23        (2) water companies which are purely mutual concerns,
24    having no rates or charges for services, but paying the
25    operating expenses by assessment upon the members of such
26    a company and no other person;

 

 

SB3949- 235 -LRB103 40603 LNS 73240 b

1        (3) electric cooperatives as defined in Section 3-119;
2        (4) the following natural gas cooperatives:
3            (A) residential natural gas cooperatives that are
4        not-for-profit corporations established for the
5        purpose of administering and operating, on a
6        cooperative basis, the furnishing of natural gas to
7        residences for the benefit of their members who are
8        residential consumers of natural gas. For entities
9        qualifying as residential natural gas cooperatives and
10        recognized by the Illinois Commerce Commission as
11        such, the State shall guarantee legally binding
12        contracts entered into by residential natural gas
13        cooperatives for the express purpose of acquiring
14        natural gas supplies for their members. The Illinois
15        Commerce Commission shall establish rules and
16        regulations providing for such guarantees. The total
17        liability of the State in providing all such
18        guarantees shall not at any time exceed $1,000,000,
19        nor shall the State provide such a guarantee to a
20        residential natural gas cooperative for more than 3
21        consecutive years; and
22            (B) natural gas cooperatives that are
23        not-for-profit corporations operated for the purpose
24        of administering, on a cooperative basis, the
25        furnishing of natural gas for the benefit of their
26        members and that, prior to 90 days after the effective

 

 

SB3949- 236 -LRB103 40603 LNS 73240 b

1        date of this amendatory Act of the 94th General
2        Assembly, either had acquired or had entered into an
3        asset purchase agreement to acquire all or
4        substantially all of the operating assets of a public
5        utility or natural gas cooperative with the intention
6        of operating those assets as a natural gas
7        cooperative;
8        (5) sewage disposal companies which provide sewage
9    disposal services on a mutual basis without establishing
10    rates or charges for services, but paying the operating
11    expenses by assessment upon the members of the company and
12    no others;
13        (6) (blank);
14        (7) cogeneration facilities, small power production
15    facilities, and other qualifying facilities, as defined in
16    the Public Utility Regulatory Policies Act and regulations
17    promulgated thereunder, except to the extent State
18    regulatory jurisdiction and action is required or
19    authorized by federal law, regulations, regulatory
20    decisions or the decisions of federal or State courts of
21    competent jurisdiction;
22        (8) the ownership or operation of a facility that
23    sells compressed natural gas at retail to the public for
24    use only as a motor vehicle fuel and the selling of
25    compressed natural gas at retail to the public for use
26    only as a motor vehicle fuel;

 

 

SB3949- 237 -LRB103 40603 LNS 73240 b

1        (9) alternative retail electric suppliers as defined
2    in Article XVI; and
3        (10) the Illinois Power Agency.
4    (c) An entity that furnishes the service of charging
5electric vehicles does not and shall not be deemed to sell
6electricity and is not and shall not be deemed a public utility
7notwithstanding the basis on which the service is provided or
8billed. If, however, the entity is otherwise deemed a public
9utility under this Act, or is otherwise subject to regulation
10under this Act, then that entity is not exempt from and remains
11subject to the otherwise applicable provisions of this Act.
12The installation, maintenance, and repair of an electric
13vehicle charging station shall comply with the requirements of
14subsection (a) of Section 16-128 and Section 16-128A of this
15Act.
16    For purposes of this subsection, the term "electric
17vehicles" has the meaning ascribed to that term in Section 10
18of the Electric Vehicle Act.
19(Source: P.A. 97-1128, eff. 8-28-12.)
 
20    (220 ILCS 5/16-108)
21    Sec. 16-108. Recovery of costs associated with the
22provision of delivery and other services.
23    (a) An electric utility shall file a delivery services
24tariff with the Commission at least 210 days prior to the date
25that it is required to begin offering such services pursuant

 

 

SB3949- 238 -LRB103 40603 LNS 73240 b

1to this Act. An electric utility shall provide the components
2of delivery services that are subject to the jurisdiction of
3the Federal Energy Regulatory Commission at the same prices,
4terms and conditions set forth in its applicable tariff as
5approved or allowed into effect by that Commission. The
6Commission shall otherwise have the authority pursuant to
7Article IX to review, approve, and modify the prices, terms
8and conditions of those components of delivery services not
9subject to the jurisdiction of the Federal Energy Regulatory
10Commission, including the authority to determine the extent to
11which such delivery services should be offered on an unbundled
12basis. In making any such determination the Commission shall
13consider, at a minimum, the effect of additional unbundling on
14(i) the objective of just and reasonable rates, (ii) electric
15utility employees, and (iii) the development of competitive
16markets for electric energy services in Illinois.
17    (b) The Commission shall enter an order approving, or
18approving as modified, the delivery services tariff no later
19than 30 days prior to the date on which the electric utility
20must commence offering such services. The Commission may
21subsequently modify such tariff pursuant to this Act.
22    (c) The electric utility's tariffs shall define the
23classes of its customers for purposes of delivery services
24charges. Delivery services shall be priced and made available
25to all retail customers electing delivery services in each
26such class on a nondiscriminatory basis regardless of whether

 

 

SB3949- 239 -LRB103 40603 LNS 73240 b

1the retail customer chooses the electric utility, an affiliate
2of the electric utility, or another entity as its supplier of
3electric power and energy. Charges for delivery services shall
4be cost based, and shall allow the electric utility to recover
5the costs of providing delivery services through its charges
6to its delivery service customers that use the facilities and
7services associated with such costs. Such costs shall include
8the costs of owning, operating and maintaining transmission
9and distribution facilities. The Commission shall also be
10authorized to consider whether, and if so to what extent, the
11following costs are appropriately included in the electric
12utility's delivery services rates: (i) the costs of that
13portion of generation facilities used for the production and
14absorption of reactive power in order that retail customers
15located in the electric utility's service area can receive
16electric power and energy from suppliers other than the
17electric utility, and (ii) the costs associated with the use
18and redispatch of generation facilities to mitigate
19constraints on the transmission or distribution system in
20order that retail customers located in the electric utility's
21service area can receive electric power and energy from
22suppliers other than the electric utility. Nothing in this
23subsection shall be construed as directing the Commission to
24allocate any of the costs described in (i) or (ii) that are
25found to be appropriately included in the electric utility's
26delivery services rates to any particular customer group or

 

 

SB3949- 240 -LRB103 40603 LNS 73240 b

1geographic area in setting delivery services rates.
2    (d) The Commission shall establish charges, terms and
3conditions for delivery services that are just and reasonable
4and shall take into account customer impacts when establishing
5such charges. In establishing charges, terms and conditions
6for delivery services, the Commission shall take into account
7voltage level differences. A retail customer shall have the
8option to request to purchase electric service at any delivery
9service voltage reasonably and technically feasible from the
10electric facilities serving that customer's premises provided
11that there are no significant adverse impacts upon system
12reliability or system efficiency. A retail customer shall also
13have the option to request to purchase electric service at any
14point of delivery that is reasonably and technically feasible
15provided that there are no significant adverse impacts on
16system reliability or efficiency. Such requests shall not be
17unreasonably denied.
18    (e) Electric utilities shall recover the costs of
19installing, operating or maintaining facilities for the
20particular benefit of one or more delivery services customers,
21including without limitation any costs incurred in complying
22with a customer's request to be served at a different voltage
23level, directly from the retail customer or customers for
24whose benefit the costs were incurred, to the extent such
25costs are not recovered through the charges referred to in
26subsections (c) and (d) of this Section.

 

 

SB3949- 241 -LRB103 40603 LNS 73240 b

1    (f) An electric utility shall be entitled but not required
2to implement transition charges in conjunction with the
3offering of delivery services pursuant to Section 16-104. If
4an electric utility implements transition charges, it shall
5implement such charges for all delivery services customers and
6for all customers described in subsection (h), but shall not
7implement transition charges for power and energy that a
8retail customer takes from cogeneration or self-generation
9facilities located on that retail customer's premises, if such
10facilities meet the following criteria:
11        (i) the cogeneration or self-generation facilities
12    serve a single retail customer and are located on that
13    retail customer's premises (for purposes of this
14    subparagraph and subparagraph (ii), an industrial or
15    manufacturing retail customer and a third party contractor
16    that is served by such industrial or manufacturing
17    customer through such retail customer's own electrical
18    distribution facilities under the circumstances described
19    in subsection (vi) of the definition of "alternative
20    retail electric supplier" set forth in Section 16-102,
21    shall be considered a single retail customer);
22        (ii) the cogeneration or self-generation facilities
23    either (A) are sized pursuant to generally accepted
24    engineering standards for the retail customer's electrical
25    load at that premises (taking into account standby or
26    other reliability considerations related to that retail

 

 

SB3949- 242 -LRB103 40603 LNS 73240 b

1    customer's operations at that site) or (B) if the facility
2    is a cogeneration facility located on the retail
3    customer's premises, the retail customer is the thermal
4    host for that facility and the facility has been designed
5    to meet that retail customer's thermal energy requirements
6    resulting in electrical output beyond that retail
7    customer's electrical demand at that premises, comply with
8    the operating and efficiency standards applicable to
9    "qualifying facilities" specified in title 18 Code of
10    Federal Regulations Section 292.205 as in effect on the
11    effective date of this amendatory Act of 1999;
12        (iii) the retail customer on whose premises the
13    facilities are located either has an exclusive right to
14    receive, and corresponding obligation to pay for, all of
15    the electrical capacity of the facility, or in the case of
16    a cogeneration facility that has been designed to meet the
17    retail customer's thermal energy requirements at that
18    premises, an identified amount of the electrical capacity
19    of the facility, over a minimum 5-year period; and
20        (iv) if the cogeneration facility is sized for the
21    retail customer's thermal load at that premises but
22    exceeds the electrical load, any sales of excess power or
23    energy are made only at wholesale, are subject to the
24    jurisdiction of the Federal Energy Regulatory Commission,
25    and are not for the purpose of circumventing the
26    provisions of this subsection (f).

 

 

SB3949- 243 -LRB103 40603 LNS 73240 b

1If a generation facility located at a retail customer's
2premises does not meet the above criteria, an electric utility
3implementing transition charges shall implement a transition
4charge until December 31, 2006 for any power and energy taken
5by such retail customer from such facility as if such power and
6energy had been delivered by the electric utility. Provided,
7however, that an industrial retail customer that is taking
8power from a generation facility that does not meet the above
9criteria but that is located on such customer's premises will
10not be subject to a transition charge for the power and energy
11taken by such retail customer from such generation facility if
12the facility does not serve any other retail customer and
13either was installed on behalf of the customer and for its own
14use prior to January 1, 1997, or is both predominantly fueled
15by byproducts of such customer's manufacturing process at such
16premises and sells or offers an average of 300 megawatts or
17more of electricity produced from such generation facility
18into the wholesale market. Such charges shall be calculated as
19provided in Section 16-102, and shall be collected on each
20kilowatt-hour delivered under a delivery services tariff to a
21retail customer from the date the customer first takes
22delivery services until December 31, 2006 except as provided
23in subsection (h) of this Section. Provided, however, that an
24electric utility, other than an electric utility providing
25service to at least 1,000,000 customers in this State on
26January 1, 1999, shall be entitled to petition for entry of an

 

 

SB3949- 244 -LRB103 40603 LNS 73240 b

1order by the Commission authorizing the electric utility to
2implement transition charges for an additional period ending
3no later than December 31, 2008. The electric utility shall
4file its petition with supporting evidence no earlier than 16
5months, and no later than 12 months, prior to December 31,
62006. The Commission shall hold a hearing on the electric
7utility's petition and shall enter its order no later than 8
8months after the petition is filed. The Commission shall
9determine whether and to what extent the electric utility
10shall be authorized to implement transition charges for an
11additional period. The Commission may authorize the electric
12utility to implement transition charges for some or all of the
13additional period, and shall determine the mitigation factors
14to be used in implementing such transition charges; provided,
15that the Commission shall not authorize mitigation factors
16less than 110% of those in effect during the 12 months ended
17December 31, 2006. In making its determination, the Commission
18shall consider the following factors: the necessity to
19implement transition charges for an additional period in order
20to maintain the financial integrity of the electric utility;
21the prudence of the electric utility's actions in reducing its
22costs since the effective date of this amendatory Act of 1997;
23the ability of the electric utility to provide safe, adequate
24and reliable service to retail customers in its service area;
25and the impact on competition of allowing the electric utility
26to implement transition charges for the additional period.

 

 

SB3949- 245 -LRB103 40603 LNS 73240 b

1    (g) The electric utility shall file tariffs that establish
2the transition charges to be paid by each class of customers to
3the electric utility in conjunction with the provision of
4delivery services. The electric utility's tariffs shall define
5the classes of its customers for purposes of calculating
6transition charges. The electric utility's tariffs shall
7provide for the calculation of transition charges on a
8customer-specific basis for any retail customer whose average
9monthly maximum electrical demand on the electric utility's
10system during the 6 months with the customer's highest monthly
11maximum electrical demands equals or exceeds 3.0 megawatts for
12electric utilities having more than 1,000,000 customers, and
13for other electric utilities for any customer that has an
14average monthly maximum electrical demand on the electric
15utility's system of one megawatt or more, and (A) for which
16there exists data on the customer's usage during the 3 years
17preceding the date that the customer became eligible to take
18delivery services, or (B) for which there does not exist data
19on the customer's usage during the 3 years preceding the date
20that the customer became eligible to take delivery services,
21if in the electric utility's reasonable judgment there exists
22comparable usage information or a sufficient basis to develop
23such information, and further provided that the electric
24utility can require customers for which an individual
25calculation is made to sign contracts that set forth the
26transition charges to be paid by the customer to the electric

 

 

SB3949- 246 -LRB103 40603 LNS 73240 b

1utility pursuant to the tariff.
2    (h) An electric utility shall also be entitled to file
3tariffs that allow it to collect transition charges from
4retail customers in the electric utility's service area that
5do not take delivery services but that take electric power or
6energy from an alternative retail electric supplier or from an
7electric utility other than the electric utility in whose
8service area the customer is located. Such charges shall be
9calculated, in accordance with the definition of transition
10charges in Section 16-102, for the period of time that the
11customer would be obligated to pay transition charges if it
12were taking delivery services, except that no deduction for
13delivery services revenues shall be made in such calculation,
14and usage data from the customer's class shall be used where
15historical usage data is not available for the individual
16customer. The customer shall be obligated to pay such charges
17on a lump sum basis on or before the date on which the customer
18commences to take service from the alternative retail electric
19supplier or other electric utility, provided, that the
20electric utility in whose service area the customer is located
21shall offer the customer the option of signing a contract
22pursuant to which the customer pays such charges ratably over
23the period in which the charges would otherwise have applied.
24    (i) An electric utility shall be entitled to add to the
25bills of delivery services customers charges pursuant to
26Sections 9-221, 9-222 (except as provided in Section 9-222.1),

 

 

SB3949- 247 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 248 -LRB103 40603 LNS 73240 b

1kilowatthours delivered by the electric utility to its
2delivery services customers. The tariff shall provide for the
3calculation of the Coal to Solar and Energy Storage Initiative
4Charge to be in effect for the year beginning January 1, 2023
5and each year beginning January 1 thereafter, sufficient to
6collect the electric utility's estimated payment obligations
7for the delivery year beginning the following June 1 under
8contracts for purchase of renewable energy credits entered
9into pursuant to subsection (c-5) of Section 1-75 of the
10Illinois Power Agency Act and the obligations of the
11Department of Commerce and Economic Opportunity, or any
12successor department or agency, which for purposes of this
13subsection (i-5) shall be referred to as the Department, to
14make grant payments during such delivery year from the Coal to
15Solar and Energy Storage Initiative Fund pursuant to grant
16contracts entered into pursuant to subsection (c-5) of Section
171-75 of the Illinois Power Agency Act, and using the electric
18utility's kilowatthour deliveries to its delivery services
19customers during the delivery year ended May 31 of the
20preceding calendar year. On or before November 1 of each year
21beginning November 1, 2022, the Department shall notify the
22electric utilities of the amount of the Department's estimated
23obligations for grant payments during the delivery year
24beginning the following June 1 pursuant to grant contracts
25entered into pursuant to subsection (c-5) of Section 1-75 of
26the Illinois Power Agency Act; and each electric utility shall

 

 

SB3949- 249 -LRB103 40603 LNS 73240 b

1incorporate in the calculation of its Coal to Solar and Energy
2Storage Initiative Charge the fractional portion of the
3Department's estimated obligations equal to the electric
4utility's kilowatthour deliveries to its delivery services
5customers in the delivery year ended the preceding May 31
6divided by the aggregate deliveries of both electric utilities
7to delivery services customers in such delivery year. The
8electric utility shall remit on a monthly basis to the State
9Treasurer, for deposit in the Coal to Solar and Energy Storage
10Initiative Fund provided for in subsection (c-5) of Section
111-75 of the Illinois Power Agency Act, the electric utility's
12collections of the Coal to Solar and Energy Storage Initiative
13Charge estimated to be needed by the Department for grant
14payments pursuant to grant contracts entered into pursuant to
15subsection (c-5) of Section 1-75 of the Illinois Power Agency
16Act. The initial charge under the electric utility's tariff
17shall be effective for kilowatthours delivered beginning
18January 1, 2023, and thereafter shall be revised to be
19effective January 1, 2024 and each January 1 thereafter, based
20on the payment obligations for the delivery year beginning the
21following June 1. The tariff shall provide for the electric
22utility to make an annual filing with the Commission on or
23before November 15 of each year, beginning in 2023, setting
24forth the Coal to Solar and Energy Storage Initiative Charge
25to be in effect for the year beginning the following January 1.
26The electric utility's tariff shall also provide that the

 

 

SB3949- 250 -LRB103 40603 LNS 73240 b

1electric utility shall make a filing with the Commission on or
2before August 1 of each year beginning in 2024 setting forth a
3reconciliation, for the delivery year ended the preceding May
431, of the electric utility's collections of the Coal to Solar
5and Energy Storage Initiative Charge against actual payments
6for renewable energy credits pursuant to contracts entered
7into, and the actual grant payments by the Department pursuant
8to grant contracts entered into, pursuant to subsection (c-5)
9of Section 1-75 of the Illinois Power Agency Act. The tariff
10shall provide that any excess or shortfall of collections to
11payments shall be deducted from or added to, on a
12per-kilowatthour basis, the Coal to Solar and Energy Storage
13Initiative Charge, over the 6-month period beginning October 1
14of that calendar year.
15    (i-10) An electric utility that has entered into a
16contract to purchase high voltage direct current renewable
17energy credits as described in item (iii-5) of subparagraph
18(G) of paragraph (1) of subsection (c) of Section 1-75 of the
19Illinois Power Agency Act shall be entitled to recover through
20tariffed charges all costs related to the purchase of high
21voltage direct current renewable energy credits under the
22contract. The recoverable costs shall include the costs of
23procuring the high voltage direct current renewable energy
24credits, the reasonable costs that the utility incurs as part
25of the procurement processes, and the cost of implementing and
26complying with item (iii-5) of subparagraph (G) of paragraph

 

 

SB3949- 251 -LRB103 40603 LNS 73240 b

1(1) of subsection (c) of Section 1-75 of the Illinois Power
2Agency Act. The costs associated with the purchase of high
3voltage direct current renewable energy credits shall be
4allocated across all retail customers in proportion to the
5amount of high voltage renewable energy credits the electric
6utility procures for the customers through a single, uniform
7cents per kilowatt-hour charge applicable to the retail
8customers, and pursuant to the terms of a tariff conforming to
9the requirements of this subsection and filed with and
10approved by the Commission within 30 days after entering into
11a contract for high voltage direct current renewable energy
12credits. The Commission shall approve, or approve with
13modifications, the tariff no later than 90 days after the
14tariff is filed.
15    (j) If a retail customer that obtains electric power and
16energy from cogeneration or self-generation facilities
17installed for its own use on or before January 1, 1997,
18subsequently takes service from an alternative retail electric
19supplier or an electric utility other than the electric
20utility in whose service area the customer is located for any
21portion of the customer's electric power and energy
22requirements formerly obtained from those facilities
23(including that amount purchased from the utility in lieu of
24such generation and not as standby power purchases, under a
25cogeneration displacement tariff in effect as of the effective
26date of this amendatory Act of 1997), the transition charges

 

 

SB3949- 252 -LRB103 40603 LNS 73240 b

1otherwise applicable pursuant to subsections (f), (g), or (h)
2of this Section shall not be applicable in any year to that
3portion of the customer's electric power and energy
4requirements formerly obtained from those facilities,
5provided, that for purposes of this subsection (j), such
6portion shall not exceed the average number of kilowatt-hours
7per year obtained from the cogeneration or self-generation
8facilities during the 3 years prior to the date on which the
9customer became eligible for delivery services, except as
10provided in subsection (f) of Section 16-110.
11    (k) The electric utility shall be entitled to recover
12through tariffed charges all of the costs associated with the
13purchase of zero emission credits from zero emission
14facilities to meet the requirements of subsection (d-5) of
15Section 1-75 of the Illinois Power Agency Act and all of the
16costs associated with the purchase of carbon mitigation
17credits from carbon-free energy resources to meet the
18requirements of subsection (d-10) of Section 1-75 of the
19Illinois Power Agency Act. Such costs shall include the costs
20of procuring the zero emission credits and carbon mitigation
21credits from carbon-free energy resources, as well as the
22reasonable costs that the utility incurs as part of the
23procurement processes and to implement and comply with plans
24and processes approved by the Commission under subsections
25(d-5) and (d-10). The costs shall be allocated across all
26retail customers through a single, uniform cents per

 

 

SB3949- 253 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 254 -LRB103 40603 LNS 73240 b

1each such customer's bill.
2    Notwithstanding whether the Commission has approved the
3initial long-term renewable resources procurement plan as of
4June 1, 2017, an electric utility shall place new tariffed
5charges into effect beginning with the June 2017 monthly
6billing period, to the extent practicable, to begin recovering
7the costs of procuring renewable energy resources, as those
8charges are calculated under the limitations described in
9subparagraph (E) of paragraph (1) of subsection (c) of Section
101-75 of the Illinois Power Agency Act. Notwithstanding the
11date on which the utility places such new tariffed charges
12into effect, the utility shall be permitted to collect the
13charges under such tariff as if the tariff had been in effect
14beginning with the first day of the June 2017 monthly billing
15period. For the delivery years commencing June 1, 2017, June
161, 2018, June 1, 2019, and each delivery year thereafter, the
17electric utility shall deposit into a separate interest
18bearing account of a financial institution the monies
19collected under the tariffed charges. Money collected from
20customers for the procurement of renewable energy resources in
21a given delivery year may be spent by the utility for the
22procurement of renewable resources over any of the following 5
23delivery years, after which unspent money shall be credited
24back to retail customers. The electric utility shall spend all
25money collected in earlier delivery years that has not yet
26been returned to customers, first, before spending money

 

 

SB3949- 255 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 256 -LRB103 40603 LNS 73240 b

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

 

 

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1specified in the electric utility's automatic adjustment
2clause tariffs and that shall be approved by the Commission in
3connection with its approval of such tariffs. The procedure
4shall provide that any difference between the electric
5utility's collections for zero emission credits and carbon
6mitigation credits under the automatic adjustment charges for
7an annual period and the electric utility's actual costs of
8zero emission credits from zero emission facilities and carbon
9mitigation credits from carbon-free energy resources for that
10same annual period shall be refunded to or collected from, as
11applicable, the electric utility's retail customers in
12subsequent periods.
13    Nothing in this subsection (k) is intended to affect,
14limit, or change the right of the electric utility to recover
15the costs associated with the procurement of renewable energy
16resources for periods commencing before, on, or after June 1,
172017, as otherwise provided in the Illinois Power Agency Act.
18    The funding available under this subsection (k), if any,
19for the programs described under subsection (b) of Section
201-56 of the Illinois Power Agency Act shall not reduce the
21amount of funding for the programs described in subparagraph
22(O) of paragraph (1) of subsection (c) of Section 1-75 of the
23Illinois Power Agency Act. If funding is available under this
24subsection (k) for programs described under subsection (b) of
25Section 1-56 of the Illinois Power Agency Act, then the
26long-term renewable resources plan shall provide for the

 

 

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1Agency to procure contracts in an amount that does not exceed
2the funding, and the contracts approved by the Commission
3shall be executed by the applicable utility or utilities.
4    (l) A utility that has terminated any contract executed
5under subsection (d-5) or (d-10) of Section 1-75 of the
6Illinois Power Agency Act shall be entitled to recover any
7remaining balance associated with the purchase of zero
8emission credits prior to such termination, and such utility
9shall also apply a credit to its retail customer bills in the
10event of any over-collection.
11    (m)(1) An electric utility that recovers its costs of
12procuring zero emission credits from zero emission facilities
13through a cents-per-kilowatthour charge under subsection (k)
14of this Section shall be subject to the requirements of this
15subsection (m). Notwithstanding anything to the contrary, such
16electric utility shall, beginning on April 30, 2018, and each
17April 30 thereafter until April 30, 2026, calculate whether
18any reduction must be applied to such cents-per-kilowatthour
19charge that is paid by retail customers of the electric
20utility that have opted out of subsections (a) through (j) of
21Section 8-103B of this Act under subsection (l) of Section
228-103B. Such charge shall be reduced for such customers for
23the next delivery year commencing on June 1 based on the amount
24necessary, if any, to limit the annual estimated average net
25increase for the prior calendar year due to the future energy
26investment costs to no more than 1.3% of 5.98 cents per

 

 

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1kilowatt-hour, which is the average amount paid per
2kilowatthour for electric service during the year ending
3December 31, 2015 by Illinois industrial retail customers, as
4reported to the Edison Electric Institute.
5    The calculations required by this subsection (m) shall be
6made only once for each year, and no subsequent rate impact
7determinations shall be made.
8    (2) For purposes of this Section, "future energy
9investment costs" shall be calculated by subtracting the
10cents-per-kilowatthour charge identified in subparagraph (A)
11of this paragraph (2) from the sum of the
12cents-per-kilowatthour charges identified in subparagraph (B)
13of this paragraph (2):
14        (A) The cents-per-kilowatthour charge identified in
15    the electric utility's tariff placed into effect under
16    Section 8-103 of the Public Utilities Act that, on
17    December 1, 2016, was applicable to those retail customers
18    that have opted out of subsections (a) through (j) of
19    Section 8-103B of this Act under subsection (l) of Section
20    8-103B.
21        (B) The sum of the following cents-per-kilowatthour
22    charges applicable to those retail customers that have
23    opted out of subsections (a) through (j) of Section 8-103B
24    of this Act under subsection (l) of Section 8-103B,
25    provided that if one or more of the following charges has
26    been in effect and applied to such customers for more than

 

 

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1    one calendar year, then each charge shall be equal to the
2    average of the charges applied over a period that
3    commences with the calendar year ending December 31, 2017
4    and ends with the most recently completed calendar year
5    prior to the calculation required by this subsection (m):
6            (i) the cents-per-kilowatthour charge to recover
7        the costs incurred by the utility under subsection
8        (d-5) of Section 1-75 of the Illinois Power Agency
9        Act, adjusted for any reductions required under this
10        subsection (m); and
11            (ii) the cents-per-kilowatthour charge to recover
12        the costs incurred by the utility under Section
13        16-107.6 of the Public Utilities Act.
14        If no charge was applied for a given calendar year
15    under item (i) or (ii) of this subparagraph (B), then the
16    value of the charge for that year shall be zero.
17    (3) If a reduction is required by the calculation
18performed under this subsection (m), then the amount of the
19reduction shall be multiplied by the number of years reflected
20in the averages calculated under subparagraph (B) of paragraph
21(2) of this subsection (m). Such reduction shall be applied to
22the cents-per-kilowatthour charge that is applicable to those
23retail customers that have opted out of subsections (a)
24through (j) of Section 8-103B of this Act under subsection (l)
25of Section 8-103B beginning with the next delivery year
26commencing after the date of the calculation required by this

 

 

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1subsection (m).
2    (4) The electric utility shall file a notice with the
3Commission on May 1 of 2018 and each May 1 thereafter until May
41, 2026 containing the reduction, if any, which must be
5applied for the delivery year which begins in the year of the
6filing. The notice shall contain the calculations made
7pursuant to this Section. By October 1 of each year beginning
8in 2018, each electric utility shall notify the Commission if
9it appears, based on an estimate of the calculation required
10in this subsection (m), that a reduction will be required in
11the next year.
12(Source: P.A. 102-662, eff. 9-15-21.)
 
13    (220 ILCS 5/16-111.5)
14    Sec. 16-111.5. Provisions relating to procurement.
15    (a) An electric utility that on December 31, 2005 served
16at least 100,000 customers in Illinois shall procure power and
17energy for its eligible retail customers in accordance with
18the applicable provisions set forth in Section 1-75 of the
19Illinois Power Agency Act and this Section. Beginning with the
20delivery year commencing on June 1, 2017, such electric
21utility shall also procure zero emission credits from zero
22emission facilities in accordance with the applicable
23provisions set forth in Section 1-75 of the Illinois Power
24Agency Act, and, for years beginning on or after June 1, 2017,
25the utility shall procure renewable energy resources in

 

 

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1accordance with the applicable provisions set forth in Section
21-75 of the Illinois Power Agency Act and this Section.
3Beginning with the delivery year commencing on June 1, 2022,
4an electric utility serving over 3,000,000 customers shall
5also procure carbon mitigation credits from carbon-free energy
6resources in accordance with the applicable provisions set
7forth in Section 1-75 of the Illinois Power Agency Act and this
8Section. A small multi-jurisdictional electric utility that on
9December 31, 2005 served less than 100,000 customers in
10Illinois may elect to procure power and energy for all or a
11portion of its eligible Illinois retail customers in
12accordance with the applicable provisions set forth in this
13Section and Section 1-75 of the Illinois Power Agency Act.
14This Section shall not apply to a small multi-jurisdictional
15utility until such time as a small multi-jurisdictional
16utility requests the Illinois Power Agency to prepare a
17procurement plan for its eligible retail customers. "Eligible
18retail customers" for the purposes of this Section means those
19retail customers that purchase power and energy from the
20electric utility under fixed-price bundled service tariffs,
21other than those retail customers whose service is declared or
22deemed competitive under Section 16-113 and those other
23customer groups specified in this Section, including
24self-generating customers, customers electing hourly pricing,
25or those customers who are otherwise ineligible for
26fixed-price bundled tariff service. For those customers that

 

 

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1are excluded from the procurement plan's electric supply
2service requirements, and the utility shall procure any supply
3requirements, including capacity, ancillary services, and
4hourly priced energy, in the applicable markets as needed to
5serve those customers, provided that the utility may include
6in its procurement plan load requirements for the load that is
7associated with those retail customers whose service has been
8declared or deemed competitive pursuant to Section 16-113 of
9this Act to the extent that those customers are purchasing
10power and energy during one of the transition periods
11identified in subsection (b) of Section 16-113 of this Act.
12    (b) A procurement plan shall be prepared for each electric
13utility consistent with the applicable requirements of the
14Illinois Power Agency Act and this Section. For purposes of
15this Section, Illinois electric utilities that are affiliated
16by virtue of a common parent company are considered to be a
17single electric utility. Small multi-jurisdictional utilities
18may request a procurement plan for a portion of or all of its
19Illinois load. Each procurement plan shall analyze the
20projected balance of supply and demand for those retail
21customers to be included in the plan's electric supply service
22requirements over a 5-year period, with the first planning
23year beginning on June 1 of the year following the year in
24which the plan is filed. The plan shall specifically identify
25the wholesale products to be procured following plan approval,
26and shall follow all the requirements set forth in the Public

 

 

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1Utilities Act and all applicable State and federal laws,
2statutes, rules, or regulations, as well as Commission orders.
3Nothing in this Section precludes consideration of contracts
4longer than 5 years and related forecast data. Unless
5specified otherwise in this Section, in the procurement plan
6or in the implementing tariff, any procurement occurring in
7accordance with this plan shall be competitively bid through a
8request for proposals process. Approval and implementation of
9the procurement plan shall be subject to review and approval
10by the Commission according to the provisions set forth in
11this Section. A procurement plan shall include each of the
12following components:
13        (1) Hourly load analysis. This analysis shall include:
14            (i) multi-year historical analysis of hourly
15        loads;
16            (ii) switching trends and competitive retail
17        market analysis;
18            (iii) known or projected changes to future loads;
19        and
20            (iv) growth forecasts by customer class.
21        (2) Analysis of the impact of any demand side and
22    renewable energy initiatives. This analysis shall include:
23            (i) the impact of demand response programs and
24        energy efficiency programs, both current and
25        projected; for small multi-jurisdictional utilities,
26        the impact of demand response and energy efficiency

 

 

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1        programs approved pursuant to Section 8-408 of this
2        Act, both current and projected; and
3            (ii) supply side needs that are projected to be
4        offset by purchases of renewable energy resources, if
5        any.
6        (3) A plan for meeting the expected load requirements
7    that will not be met through preexisting contracts. This
8    plan shall include:
9            (i) definitions of the different Illinois retail
10        customer classes for which supply is being purchased;
11            (ii) the proposed mix of demand-response products
12        for which contracts will be executed during the next
13        year. For small multi-jurisdictional electric
14        utilities that on December 31, 2005 served fewer than
15        100,000 customers in Illinois, these shall be defined
16        as demand-response products offered in an energy
17        efficiency plan approved pursuant to Section 8-408 of
18        this Act. The cost-effective demand-response measures
19        shall be procured whenever the cost is lower than
20        procuring comparable capacity products, provided that
21        such products shall:
22                (A) be procured by a demand-response provider
23            from those retail customers included in the plan's
24            electric supply service requirements;
25                (B) at least satisfy the demand-response
26            requirements of the regional transmission

 

 

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1            organization market in which the utility's service
2            territory is located, including, but not limited
3            to, any applicable capacity or dispatch
4            requirements;
5                (C) provide for customers' participation in
6            the stream of benefits produced by the
7            demand-response products;
8                (D) provide for reimbursement by the
9            demand-response provider of the utility for any
10            costs incurred as a result of the failure of the
11            supplier of such products to perform its
12            obligations thereunder; and
13                (E) meet the same credit requirements as apply
14            to suppliers of capacity, in the applicable
15            regional transmission organization market;
16            (iii) monthly forecasted system supply
17        requirements, including expected minimum, maximum, and
18        average values for the planning period;
19            (iv) the proposed mix and selection of standard
20        wholesale products for which contracts will be
21        executed during the next year, separately or in
22        combination, to meet that portion of its load
23        requirements not met through pre-existing contracts,
24        including but not limited to monthly 5 x 16 peak period
25        block energy, monthly off-peak wrap energy, monthly 7
26        x 24 energy, annual 5 x 16 energy, other standardized

 

 

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1        energy or capacity products designed to provide
2        eligible retail customer benefits from commercially
3        deployed advanced technologies including but not
4        limited to high voltage direct current converter
5        stations, as such term is defined in Section 1-10 of
6        the Illinois Power Agency Act, whether or not such
7        product is currently available in wholesale markets
8        and including bilateral purchases of capacity from a
9        winning bidder under a procurement authorized by item
10        (iii-5) of subparagraph (G) of paragraph (1) of
11        subsection (c) of Section 1-75 of the Illinois Power
12        Agency Act on terms and conditions determined by the
13        Agency, annual off-peak wrap energy, annual 7 x 24
14        energy, monthly capacity, annual capacity, peak load
15        capacity obligations, capacity purchase plan, and
16        ancillary services;
17            (v) proposed term structures for each wholesale
18        product type included in the proposed procurement plan
19        portfolio of products; and
20            (vi) an assessment of the price risk, load
21        uncertainty, and other factors that are associated
22        with the proposed procurement plan; this assessment,
23        to the extent possible, shall include an analysis of
24        the following factors: contract terms, time frames for
25        securing products or services, fuel costs, weather
26        patterns, transmission costs, market conditions, and

 

 

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1        the governmental regulatory environment; the proposed
2        procurement plan shall also identify alternatives for
3        those portfolio measures that are identified as having
4        significant price risk and mitigation in the form of
5        additional retail customer and ratepayer price,
6        reliability, and environmental benefits from
7        standardized energy products delivered from
8        commercially deployed advanced technologies,
9        including, but not limited to, high voltage direct
10        current converter stations, as such term is defined in
11        Section 1-10 of the Illinois Power Agency Act, whether
12        or not such product is currently available in
13        wholesale markets.
14        (4) Proposed procedures for balancing loads. The
15    procurement plan shall include, for load requirements
16    included in the procurement plan, the process for (i)
17    hourly balancing of supply and demand and (ii) the
18    criteria for portfolio re-balancing in the event of
19    significant shifts in load.
20        (5) Long-Term Renewable Resources Procurement Plan.
21    The Agency shall prepare a long-term renewable resources
22    procurement plan for the procurement of renewable energy
23    credits under Sections 1-56 and 1-75 of the Illinois Power
24    Agency Act for delivery beginning in the 2017 delivery
25    year.
26            (i) The initial long-term renewable resources

 

 

SB3949- 269 -LRB103 40603 LNS 73240 b

1        procurement plan and all subsequent revisions shall be
2        subject to review and approval by the Commission. For
3        the purposes of this Section, "delivery year" has the
4        same meaning as in Section 1-10 of the Illinois Power
5        Agency Act. For purposes of this Section, "Agency"
6        shall mean the Illinois Power Agency.
7            (ii) The long-term renewable resources planning
8        process shall be conducted as follows:
9                (A) Electric utilities shall provide a range
10            of load forecasts to the Illinois Power Agency
11            within 45 days of the Agency's request for
12            forecasts, which request shall specify the length
13            and conditions for the forecasts including, but
14            not limited to, the quantity of distributed
15            generation expected to be interconnected for each
16            year.
17                (B) The Agency shall publish for comment the
18            initial long-term renewable resources procurement
19            plan no later than 120 days after the effective
20            date of this amendatory Act of the 99th General
21            Assembly and shall review, and may revise, the
22            plan at least every 2 years thereafter. To the
23            extent practicable, the Agency shall review and
24            propose any revisions to the long-term renewable
25            energy resources procurement plan in conjunction
26            with the Agency's other planning and approval

 

 

SB3949- 270 -LRB103 40603 LNS 73240 b

1            processes conducted under this Section. The
2            initial long-term renewable resources procurement
3            plan shall:
4                    (aa) Identify the procurement programs and
5                competitive procurement events consistent with
6                the applicable requirements of the Illinois
7                Power Agency Act and shall be designed to
8                achieve the goals set forth in subsection (c)
9                of Section 1-75 of that Act.
10                    (bb) Include a schedule for procurements
11                for renewable energy credits from
12                utility-scale wind projects, utility-scale
13                solar projects, and brownfield site
14                photovoltaic projects consistent with
15                subparagraph (G) of paragraph (1) of
16                subsection (c) of Section 1-75 of the Illinois
17                Power Agency Act.
18                    (cc) Identify the process whereby the
19                Agency will submit to the Commission for
20                review and approval the proposed contracts to
21                implement the programs required by such plan.
22                Copies of the initial long-term renewable
23            resources procurement plan and all subsequent
24            revisions shall be posted and made publicly
25            available on the Agency's and Commission's
26            websites, and copies shall also be provided to

 

 

SB3949- 271 -LRB103 40603 LNS 73240 b

1            each affected electric utility. An affected
2            utility and other interested parties shall have 45
3            days following the date of posting to provide
4            comment to the Agency on the initial long-term
5            renewable resources procurement plan and all
6            subsequent revisions. All comments submitted to
7            the Agency shall be specific, supported by data or
8            other detailed analyses, and, if objecting to all
9            or a portion of the procurement plan, accompanied
10            by specific alternative wording or proposals. All
11            comments shall be posted on the Agency's and
12            Commission's websites. During this 45-day comment
13            period, the Agency shall hold at least one public
14            hearing within each utility's service area that is
15            subject to the requirements of this paragraph (5)
16            for the purpose of receiving public comment.
17            Within 21 days following the end of the 45-day
18            review period, the Agency may revise the long-term
19            renewable resources procurement plan based on the
20            comments received and shall file the plan with the
21            Commission for review and approval.
22                (C) Within 14 days after the filing of the
23            initial long-term renewable resources procurement
24            plan or any subsequent revisions, any person
25            objecting to the plan may file an objection with
26            the Commission. Within 21 days after the filing of

 

 

SB3949- 272 -LRB103 40603 LNS 73240 b

1            the plan, the Commission shall determine whether a
2            hearing is necessary. The Commission shall enter
3            its order confirming or modifying the initial
4            long-term renewable resources procurement plan or
5            any subsequent revisions within 120 days after the
6            filing of the plan by the Illinois Power Agency.
7                (D) The Commission shall approve the initial
8            long-term renewable resources procurement plan and
9            any subsequent revisions, including expressly the
10            forecast used in the plan and taking into account
11            that funding will be limited to the amount of
12            revenues actually collected by the utilities, if
13            the Commission determines that the plan will
14            reasonably and prudently accomplish the
15            requirements of Section 1-56 and subsection (c) of
16            Section 1-75 of the Illinois Power Agency Act. The
17            Commission shall also approve the process for the
18            submission, review, and approval of the proposed
19            contracts to procure renewable energy credits or
20            implement the programs authorized by the
21            Commission pursuant to a long-term renewable
22            resources procurement plan approved under this
23            Section.
24                In approving any long-term renewable resources
25            procurement plan after the effective date of this
26            amendatory Act of the 102nd General Assembly, the

 

 

SB3949- 273 -LRB103 40603 LNS 73240 b

1            Commission shall approve or modify the Agency's
2            proposal for minimum equity standards pursuant to
3            subsection (c-10) of Section 1-75 of the Illinois
4            Power Agency Act. The Commission shall consider
5            any analysis performed by the Agency in developing
6            its proposal, including past performance,
7            availability of equity eligible contractors, and
8            availability of equity eligible persons at the
9            time the long-term renewable resources procurement
10            plan is approved.
11            (iii) The Agency or third parties contracted by
12        the Agency shall implement all programs authorized by
13        the Commission in an approved long-term renewable
14        resources procurement plan without further review and
15        approval by the Commission. Third parties shall not
16        begin implementing any programs or receive any payment
17        under this Section until the Commission has approved
18        the contract or contracts under the process authorized
19        by the Commission in item (D) of subparagraph (ii) of
20        paragraph (5) of this subsection (b) and the third
21        party and the Agency or utility, as applicable, have
22        executed the contract. For those renewable energy
23        credits subject to procurement through a competitive
24        bid process under the plan or under the initial
25        forward procurements for wind and solar resources
26        described in subparagraph (G) of paragraph (1) of

 

 

SB3949- 274 -LRB103 40603 LNS 73240 b

1        subsection (c) of Section 1-75 of the Illinois Power
2        Agency Act, the Agency shall follow the procurement
3        process specified in the provisions relating to
4        electricity procurement in subsections (e) through (i)
5        of this Section.
6            (iv) An electric utility shall recover its costs
7        associated with the procurement of renewable energy
8        credits under this Section and pursuant to subsection
9        (c-5) of Section 1-75 of the Illinois Power Agency Act
10        through an automatic adjustment clause tariff under
11        subsection (k) or a tariff pursuant to subsection
12        (i-5), as applicable, of Section 16-108 of this Act. A
13        utility shall not be required to advance any payment
14        or pay any amounts under this Section that exceed the
15        actual amount of revenues collected by the utility
16        under paragraph (6) of subsection (c) of Section 1-75
17        of the Illinois Power Agency Act, subsection (c-5) of
18        Section 1-75 of the Illinois Power Agency Act, and
19        subsection (k) or subsection (i-5), as applicable, of
20        Section 16-108 of this Act, and contracts executed
21        under this Section shall expressly incorporate this
22        limitation.
23            (v) For the public interest, safety, and welfare,
24        the Agency and the Commission may adopt rules to carry
25        out the provisions of this Section on an emergency
26        basis immediately following the effective date of this

 

 

SB3949- 275 -LRB103 40603 LNS 73240 b

1        amendatory Act of the 99th General Assembly.
2            (vi) On or before July 1 of each year, the
3        Commission shall hold an informal hearing for the
4        purpose of receiving comments on the prior year's
5        procurement process and any recommendations for
6        change.
7    (b-5) An electric utility that as of January 1, 2019
8served more than 300,000 retail customers in this State shall
9purchase renewable energy credits from new renewable energy
10facilities constructed at or adjacent to the sites of
11coal-fueled electric generating facilities in this State in
12accordance with subsection (c-5) of Section 1-75 of the
13Illinois Power Agency Act. Except as expressly provided in
14this Section, the plans and procedures for such procurements
15shall not be included in the procurement plans provided for in
16this Section, but rather shall be conducted and implemented
17solely in accordance with subsection (c-5) of Section 1-75 of
18the Illinois Power Agency Act.
19    (c) The provisions of this subsection (c) shall not apply
20to procurements conducted pursuant to subsection (c-5) of
21Section 1-75 of the Illinois Power Agency Act. However, the
22Agency may retain a procurement administrator to assist the
23Agency in planning and carrying out the procurement events and
24implementing the other requirements specified in such
25subsection (c-5) of Section 1-75 of the Illinois Power Agency
26Act, with the costs incurred by the Agency for the procurement

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3949- 285 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 286 -LRB103 40603 LNS 73240 b

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

 

 

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

 

 

SB3949- 288 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 289 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 290 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 291 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 292 -LRB103 40603 LNS 73240 b

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

 

 

SB3949- 293 -LRB103 40603 LNS 73240 b

1electric utility's tariffed charges applicable to all of its
2retail customers, as specified in subsection (k) or subsection
3(i-5), as applicable, of Section 16-108 of this Act, and shall
4not be recovered through the electric utility's tariffed
5charges for electric power and energy supply to its eligible
6retail customers.
7    (m) The Commission has the authority to adopt rules to
8carry out the provisions of this Section. For the public
9interest, safety, and welfare, the Commission also has
10authority to adopt rules to carry out the provisions of this
11Section on an emergency basis immediately following August 28,
122007 (the effective date of Public Act 95-481).
13    (n) Notwithstanding any other provision of this Act, any
14affiliated electric utilities that submit a single procurement
15plan covering their combined needs may procure for those
16combined needs in conjunction with that plan, and may enter
17jointly into power supply contracts, purchases, and other
18procurement arrangements, and allocate capacity and energy and
19cost responsibility therefor among themselves in proportion to
20their requirements.
21    (o) On or before June 1 of each year, the Commission shall
22hold an informal hearing for the purpose of receiving comments
23on the prior year's procurement process and any
24recommendations for change.
25    (p) An electric utility subject to this Section may
26propose to invest, lease, own, or operate an electric

 

 

SB3949- 294 -LRB103 40603 LNS 73240 b

1generation facility 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

 

 

SB3949- 295 -LRB103 40603 LNS 73240 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

 

 

SB3949- 296 -LRB103 40603 LNS 73240 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.)
 
15    (220 ILCS 5/16-111.11)
16    Sec. 16-111.11. Supplier diversity reporting for
17non-utilities.
18    (a) The following entities shall submit an annual supplier
19diversity report to the Commission for a given year:
20        (1) entities that received a contract to provide more
21    than 10,000 renewable energy credits approved by the
22    Commission in a given year pursuant to subparagraph (iii)
23    of paragraph (5) of subsection (b) of Section 16-111.5;
24        (2) entities that received a contract to provide more
25    than 10,000 renewable energy credits approved by the

 

 

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1    Commission in a given year pursuant to subsection (e) of
2    Section 16-111.5;
3        (3) alternative retail electric suppliers that have
4    yearly sales in the State of 1,000,000,000 kilowatt hours
5    or more, and alternative gas suppliers as defined in
6    Section 19-105 that have yearly sales in the State of
7    1,000,000 dekatherms or more;
8        (4) entities constructing or operating an HVDC
9    transmission line as defined in Section 1-10 of the
10    Illinois Power Agency Act or entities constructing or
11    operating transmission facilities under a certificate of
12    public convenience and necessity issued pursuant to
13    subsection (b-5) of Section 8-406;
14        (5) entities installing more than 100 energy
15    efficiency measures with a certificate approved by the
16    Commission pursuant to Section 16-128B; and
17        (6) other suppliers of electricity generated from any
18    resource, including, but not limited to, hydro, nuclear,
19    coal, natural gas, and any other supplier of energy within
20    this State.
21    (a-5) An entity that receives a contract to provide high
22voltage direct current renewable energy credits and the
23associated high voltage direct current transmission facility
24is exempt from the obligations of this Section.
25    (b) An annual report filed pursuant to this Section shall
26be filed on an electronic form as designed by the Commission by

 

 

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1June 1, 2023 and every June 1 thereafter, in a searchable Adobe
2PDF format, on all procurement goals and actual spending for
3women-owned businesses, minority-owned businesses,
4veteran-owned businesses, and small business enterprises in
5the previous calendar year related to the performance of
6obligations in the State of the contracts of licenses listed
7in subsection (a). These goals shall be expressed as a
8percentage of the total work performed by the entity
9submitting the report. The actual spending for all women-owned
10businesses, minority-owned businesses, veteran-owned
11businesses, and small business enterprises shall also be
12expressed as a percentage of the total work performed by the
13entity submitting the report. Notwithstanding any provision of
14law to the contrary, any entity with obligations related to
15equity eligible actions pursuant to the Illinois Power Agency
16Act may express such goals and spending in those terms.
17    Each participating entity in its annual report shall
18include the following information related to the entity's
19operations in the State related to the certificates or
20activities listed in subsection (a):
21        (1) an explanation of the plan for the next year to
22    increase participation;
23        (2) an explanation of the plan to increase the goals;
24        (3) the areas of procurement each entity shall be
25    actively seeking more participation in the next year;
26        (4) an outline of the plan to alert and encourage

 

 

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1    potential vendors in that area to seek business from the
2    entity;
3        (5) an explanation of the challenges faced in finding
4    quality vendors and offer any suggestions for what the
5    Commission could do to be helpful to identify those
6    vendors;
7        (6) a list of the certifications the entity
8    recognizes;
9        (7) the point of contact for any potential vendor who
10    wants to do business with the entity and explain the
11    process for a vendor to enroll with the company as a
12    minority-owned, women-owned, or veteran-owned company; and
13        (8) any particular success stories to encourage other
14    entities to emulate best practices.
15    (c) Each annual report shall include as much
16State-specific data as possible. If the submitting entity does
17not submit State-specific data, then the entity shall include
18any national data it does have and explain why it could not
19submit State-specific data and how it intends to do so in
20future reports.
21    (d) Each annual report shall include the rules,
22regulations, and definitions used for the procurement goals in
23the entity's annual report.
24    (e) Each annual report filed or submitted under this
25Section shall be submitted with the Commission. The Commission
26shall not be required or authorized to compel production of

 

 

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1any report under this Section. The Commission shall hold an
2annual workshop open to the public in 2024 and every year
3thereafter on the state of supplier diversity to
4collaboratively seek solutions to structural impediments to
5achieving stated goals, including testimony from participating
6entities as well as subject matter experts and advocates in a
7non-antagonistic manner. The Commission shall invite all
8entities submitting a report pursuant to this Section. The
9Commission shall publish a database on its website of the
10point of contact for each participating entity for supplier
11diversity, along with a list of certifications each company
12recognizes from the information submitted in each annual
13report. The Commission shall publish each annual report on its
14website and shall maintain each annual report for at least 5
15years.
16(Source: P.A. 102-1031, eff. 5-27-22.)
 
17    Section 25. The Prevailing Wage Act is amended by changing
18Section 2 as follows:
 
19    (820 ILCS 130/2)
20    Sec. 2. This Act applies to the wages of laborers,
21mechanics and other workers employed in any public works, as
22hereinafter defined, by any public body and to anyone under
23contracts for public works. This includes any maintenance,
24repair, assembly, or disassembly work performed on equipment

 

 

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1whether owned, leased, or rented.
2    As used in this Act, unless the context indicates
3otherwise:
4    "Public works" means all fixed works constructed or
5demolished by any public body, or paid for wholly or in part
6out of public funds. "Public works" as defined herein includes
7all projects financed in whole or in part with bonds, grants,
8loans, or other funds made available by or through the State or
9any of its political subdivisions, including but not limited
10to: bonds issued under the Industrial Project Revenue Bond Act
11(Article 11, Division 74 of the Illinois Municipal Code), the
12Industrial Building Revenue Bond Act, the Illinois Finance
13Authority Act, the Illinois Sports Facilities Authority Act,
14or the Build Illinois Bond Act; loans or other funds made
15available pursuant to the Build Illinois Act; loans or other
16funds made available pursuant to the Riverfront Development
17Fund under Section 10-15 of the River Edge Redevelopment Zone
18Act; or funds from the Fund for Illinois' Future under Section
196z-47 of the State Finance Act, funds for school construction
20under Section 5 of the General Obligation Bond Act, funds
21authorized under Section 3 of the School Construction Bond
22Act, funds for school infrastructure under Section 6z-45 of
23the State Finance Act, and funds for transportation purposes
24under Section 4 of the General Obligation Bond Act. "Public
25works" also includes (i) all projects financed in whole or in
26part with funds from the Environmental Protection Agency under

 

 

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1the Illinois Renewable Fuels Development Program Act for which
2there is no project labor agreement; (ii) all work performed
3pursuant to a public private agreement under the Public
4Private Agreements for the Illiana Expressway Act or the
5Public-Private Agreements for the South Suburban Airport Act;
6(iii) all projects undertaken under a public-private agreement
7under the Public-Private Partnerships for Transportation Act
8or the Department of Natural Resources World Shooting and
9Recreational Complex Act; and (iv) all transportation
10facilities undertaken under a design-build contract or a
11Construction Manager/General Contractor contract under the
12Innovations for Transportation Infrastructure Act. "Public
13works" also includes all projects at leased facility property
14used for airport purposes under Section 35 of the Local
15Government Facility Lease Act. "Public works" also includes
16the construction of a new wind power facility by a business
17designated as a High Impact Business under Section
185.5(a)(3)(E), and the construction of a new utility-scale
19solar power facility by a business designated as a High Impact
20Business under Section 5.5(a)(3)(E-5), and the construction of
21a new high voltage direct current converter station by a
22business designated as a High Impact Business under Section
235.5(a)(3)(I) of the Illinois Enterprise Zone Act. "Public
24works" also includes electric vehicle charging station
25projects financed pursuant to the Electric Vehicle Act and
26renewable energy projects required to pay the prevailing wage

 

 

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1pursuant to the Illinois Power Agency Act. "Public works" also
2includes power washing projects by a public body or paid for
3wholly or in part out of public funds in which steam or
4pressurized water, with or without added abrasives or
5chemicals, is used to remove paint or other coatings, oils or
6grease, corrosion, or debris from a surface or to prepare a
7surface for a coating. "Public works" does not include work
8done directly by any public utility company, whether or not
9done under public supervision or direction, or paid for wholly
10or in part out of public funds. "Public works" also includes
11construction projects performed by a third party contracted by
12any public utility, as described in subsection (a) of Section
132.1, in public rights-of-way, as defined in Section 21-201 of
14the Public Utilities Act, whether or not done under public
15supervision or direction, or paid for wholly or in part out of
16public funds. "Public works" also includes construction
17projects that exceed 15 aggregate miles of new fiber optic
18cable, performed by a third party contracted by any public
19utility, as described in subsection (b) of Section 2.1, in
20public rights-of-way, as defined in Section 21-201 of the
21Public Utilities Act, whether or not done under public
22supervision or direction, or paid for wholly or in part out of
23public funds. "Public works" also includes any corrective
24action performed pursuant to Title XVI of the Environmental
25Protection Act for which payment from the Underground Storage
26Tank Fund is requested. "Public works" also includes all

 

 

SB3949- 304 -LRB103 40603 LNS 73240 b

1construction projects involving fixtures or permanent
2attachments affixed to light poles that are owned by a public
3body, including street light poles, traffic light poles, and
4other lighting fixtures, whether or not done under public
5supervision or direction, or paid for wholly or in part out of
6public funds, unless the project is performed by employees
7employed directly by the public body. "Public works" also
8includes work performed subject to the Mechanical Insulation
9Energy and Safety Assessment Act. "Public works" also includes
10the removal, hauling, and transportation of biosolids, lime
11sludge, and lime residue from a water treatment plant or
12facility and the disposal of biosolids, lime sludge, and lime
13residue removed from a water treatment plant or facility at a
14landfill. "Public works" does not include projects undertaken
15by the owner at an owner-occupied single-family residence or
16at an owner-occupied unit of a multi-family residence. "Public
17works" does not include work performed for soil and water
18conservation purposes on agricultural lands, whether or not
19done under public supervision or paid for wholly or in part out
20of public funds, done directly by an owner or person who has
21legal control of those lands.
22    "Construction" means all work on public works involving
23laborers, workers or mechanics. This includes any maintenance,
24repair, assembly, or disassembly work performed on equipment
25whether owned, leased, or rented.
26    "Locality" means the county where the physical work upon

 

 

SB3949- 305 -LRB103 40603 LNS 73240 b

1public works is performed, except (1) that if there is not
2available in the county a sufficient number of competent
3skilled laborers, workers and mechanics to construct the
4public works efficiently and properly, "locality" includes any
5other county nearest the one in which the work or construction
6is to be performed and from which such persons may be obtained
7in sufficient numbers to perform the work and (2) that, with
8respect to contracts for highway work with the Department of
9Transportation of this State, "locality" may at the discretion
10of the Secretary of the Department of Transportation be
11construed to include two or more adjacent counties from which
12workers may be accessible for work on such construction.
13    "Public body" means the State or any officer, board or
14commission of the State or any political subdivision or
15department thereof, or any institution supported in whole or
16in part by public funds, and includes every county, city,
17town, village, township, school district, irrigation, utility,
18reclamation improvement or other district and every other
19political subdivision, district or municipality of the state
20whether such political subdivision, municipality or district
21operates under a special charter or not.
22    "Labor organization" means an organization that is the
23exclusive representative of an employer's employees recognized
24or certified pursuant to the National Labor Relations Act.
25    The terms "general prevailing rate of hourly wages",
26"general prevailing rate of wages" or "prevailing rate of

 

 

SB3949- 306 -LRB103 40603 LNS 73240 b

1wages" when used in this Act mean the hourly cash wages plus
2annualized fringe benefits for training and apprenticeship
3programs approved by the U.S. Department of Labor, Bureau of
4Apprenticeship and Training, health and welfare, insurance,
5vacations and pensions paid generally, in the locality in
6which the work is being performed, to employees engaged in
7work of a similar character on public works.
8(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
9102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
106-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
11eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
12revised 12-15-23.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.

 

 

SB3949- 307 -LRB103 40603 LNS 73240 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 655/5.5from Ch. 67 1/2, par. 609.1
4    20 ILCS 3855/1-5
5    20 ILCS 3855/1-10
6    20 ILCS 3855/1-75
7    20 ILCS 3855/1-126 new
8    220 ILCS 5/3-105from Ch. 111 2/3, par. 3-105
9    220 ILCS 5/16-108
10    220 ILCS 5/16-111.5
11    220 ILCS 5/16-111.11
12    820 ILCS 130/2