Full Text of HB0691 102nd General Assembly
HB0691sam001 102ND GENERAL ASSEMBLY | Sen. Robert Peters Filed: 5/28/2021
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| 1 | | AMENDMENT TO HOUSE BILL 691
| 2 | | AMENDMENT NO. ______. Amend House Bill 691 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the Rust | 5 | | Belt to Green Belt Pilot Program Act. | 6 | | Section 5. Legislative findings. The General Assembly | 7 | | finds and determines that: | 8 | | (1) Human-induced greenhouse gas emissions have been | 9 | | identified as contributing to global warming, the effects | 10 | | of which pose a threat to the public health, safety, | 11 | | welfare, and economy of the State of Illinois. | 12 | | (2) The White House released a statement claiming | 13 | | that, in 2020, the United States endured 22 separate | 14 | | billion-dollar weather and climate disasters, costing | 15 | | $95,000,000,000 in damages to homes, businesses, and | 16 | | public infrastructure. |
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| 1 | | (3) In order to meet the energy needs of the State of | 2 | | Illinois, keep its economy strong, and protect the | 3 | | environment while reducing its contribution to | 4 | | human-induced greenhouse gas emissions, the State of | 5 | | Illinois must be a leader in developing new low-carbon | 6 | | technologies. | 7 | | (4) Offshore wind is an emerging source of large-scale | 8 | | renewable energy that is proximate to Illinois' major | 9 | | electric loads and very job intensive. | 10 | | (5) Offshore wind produces high capacity factor power, | 11 | | making it a valuable resource complimentary to land-based | 12 | | wind and solar. | 13 | | (6) In his first week in office, President Joseph R. | 14 | | Biden, Jr., issued an Executive Order (14008) on Tackling | 15 | | the Climate Crisis at Home and Abroad that directs the | 16 | | Secretary of the Interior to identify steps that can be | 17 | | taken to double offshore wind by 2030 while "ensuring | 18 | | robust protection for our lands, waters, and biodiversity | 19 | | and creating good jobs". | 20 | | (7) The United States Departments of Interior, Energy, | 21 | | and Commerce announced a shared goal to deploy 30 | 22 | | gigawatts of offshore wind in the United States by 2030, | 23 | | while protecting biodiversity and promoting ocean co-use, | 24 | | which trigger more than $12,000,000,000 per year in | 25 | | capital investment; create tens of thousands of | 26 | | good-paying, union jobs, with more than 44,000 workers |
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| 1 | | employed in offshore wind by 2030 and nearly 33,000 | 2 | | additional jobs in communities supported by offshore wind | 3 | | activity; generate enough power to meet the demand of more | 4 | | than 10,000,000 American homes for a year; and avoid | 5 | | 78,000,000 metric tons of carbon dioxide emissions. | 6 | | (8) The United States Department of Transportation's | 7 | | Maritime Administration has announced a Notice of Funding | 8 | | Opportunity for port authorities and other applicants to | 9 | | apply for $230,000,000 for port and intermodal | 10 | | infrastructure-related projects through the Port | 11 | | Infrastructure Development Program to support projects | 12 | | that strengthen and modernize port infrastructure, and can | 13 | | support shore-side wind energy projects, such as storage | 14 | | areas, laydown areas, and docking of wind energy vessels | 15 | | to load and move items to offshore wind farms. | 16 | | (9) Extensive development of offshore wind on the East | 17 | | Coast is making offshore wind costs more competitive. | 18 | | (10) Lake Michigan is the fifth largest lake in the | 19 | | world, with a total surface area of 22,404 square miles | 20 | | across 4 states, with 1,576 square miles of surface area | 21 | | in Illinois. | 22 | | (11) The 1,576 square miles of Lake Michigan within | 23 | | the boundaries of the State of Illinois have a potential | 24 | | capacity of 4,528 megawatts of offshore wind. | 25 | | (12) The State of Illinois has excellent and available | 26 | | port infrastructure on the South Side of Chicago that can |
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| 1 | | be used as a base for construction, operations, and | 2 | | maintenance. | 3 | | (13) The State of Illinois seeks a leadership position | 4 | | in the offshore wind industry as it emerges in the Great | 5 | | Lakes. | 6 | | (14) Fostering development of a new industry on the | 7 | | South Side of Chicago will help create jobs for the most | 8 | | underserved and underrepresented segment of Illinois' | 9 | | population. | 10 | | (15) Offshore wind developments will attract | 11 | | investment capital and will enable the development and | 12 | | preservation of a skilled and trained construction | 13 | | workforce to carry out projects, long-term job creation, | 14 | | and development of an offshore wind energy supply chain. | 15 | | Therefore, the General Assembly finds that it is necessary | 16 | | to enact this Act to enable the responsible creation of an | 17 | | offshore wind industry in the State of Illinois with the | 18 | | creation of a single 200 megawatt pilot project to provide | 19 | | economic and environmental benefits to the State of Illinois. | 20 | | Section 10. Definitions. As used in this Act: | 21 | | "Department" means the Department of Commerce and Economic | 22 | | Opportunity. | 23 | | "Disproportionately impacted area" means a census tract or | 24 | | comparable geographic area that satisfies criteria as | 25 | | determined by the Department. |
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| 1 | | "Minorities" has the same meaning as minority persons as | 2 | | defined in the Business Enterprise for Minorities, Women, and | 3 | | Persons with Disabilities Act. | 4 | | "Offshore wind energy generation facility" means a wind | 5 | | renewable energy power generation facility that is located in | 6 | | Lake Michigan, is at least 200 megawatts in size, and is | 7 | | interconnected to PJM Interconnection's regional transmission | 8 | | system. | 9 | | "Underrepresented populations" means populations | 10 | | identified by the Department that historically have had | 11 | | barriers to entry or advancement in the workforce and reside | 12 | | within a disproportionately impacted area that is within 3 | 13 | | miles of the primary staging location of the subject project. | 14 | | "Underrepresented populations" includes, but is not limited | 15 | | to, minorities, women, and veterans.
| 16 | | Section 15. Rust Belt to Green Belt Fund; creation; | 17 | | distribution of proceeds. | 18 | | (a) The Rust Belt to Green Belt Fund is created as a | 19 | | special fund in the State treasury. The Rust Belt to Green Belt | 20 | | Fund shall be administered by the Department and is created | 21 | | for the purpose of receiving and disbursing moneys in | 22 | | accordance with this Section. The Department may accept | 23 | | private and public funds, including federal funds, for deposit | 24 | | into the Rust Belt to Green Belt Fund. | 25 | | (b) The Rust Belt to Green Belt Fund shall be used by the |
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| 1 | | Department to recruit and prepare underrepresented populations | 2 | | for careers in the building and construction trades to build | 3 | | clean energy, renewable energy, energy efficiency, climate | 4 | | change mitigation, and climate change adaptation construction | 5 | | projects. | 6 | | Grants and other financial assistance may be made | 7 | | available on a competitive annual basis to organizations that | 8 | | demonstrate a capacity to recruit, prescreen, and provide | 9 | | appropriate preapprenticeship training to entities | 10 | | specifically focused on recruiting residents of | 11 | | disproportionately impacted areas, including, but not limited | 12 | | to, community based organizations, educational institutions, | 13 | | workforce investment boards, and community action agencies. | 14 | | Grants and other financial assistance shall be awarded on | 15 | | a competitive and annual basis to organizations that provide | 16 | | the following: | 17 | | (1) employment services to underrepresented | 18 | | populations; | 19 | | (2) recruiting, prescreening, and preapprenticeship | 20 | | training to prepare underrepresented populations for a | 21 | | career in clean energy in the construction and building | 22 | | trades; | 23 | | (3) preapprenticeship training to participants free of | 24 | | charge and provide participants a stipend during the term | 25 | | of the program; | 26 | | (4) job placement services for participants during and |
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| 1 | | after completion of the preapprenticeship program; and | 2 | | (5) financial, administrative, and management | 3 | | assistance for organizations engaged in these activities. | 4 | | Section 20. Offshore wind generation. | 5 | | (a) The developer of an offshore wind energy generation | 6 | | facility may apply to the Department for certification that it | 7 | | provides economic and environmental benefits to the State of | 8 | | Illinois in furtherance of the intent of the Act, including | 9 | | jobs for underrepresented populations. The Department shall | 10 | | consider issuing a certification to an applicant who has | 11 | | established: | 12 | | (1) that the applicant has identified a suitable site | 13 | | for its offshore wind energy generation facility and has a | 14 | | comprehensive plan to develop, finance, construct, own, | 15 | | and operate the facility; | 16 | | (2) that the applicant or any of the applicant's | 17 | | affiliates have experience and knowledge in owning an | 18 | | offshore wind energy generation facility; | 19 | | (3) that the applicant has an equity and inclusion | 20 | | plan crafted to create opportunities for underrepresented | 21 | | populations in the building and construction trades; | 22 | | (4) that the applicant has the financial ability to | 23 | | operate an offshore wind energy generation facility; | 24 | | (5) that the applicant has a fully executed project | 25 | | labor agreement with the applicable local building and |
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| 1 | | construction trades council; and | 2 | | (6) that the applicant has a comprehensive plan to | 3 | | conduct essential research around the compatibility of | 4 | | offshore wind and the lake ecology and historical lake | 5 | | uses that can become the basis for future decision making | 6 | | around prudent expansion of offshore wind into Lake | 7 | | Michigan.
| 8 | | (b) Prior to issuing a certification to an applicant, the | 9 | | Department shall enter into an impact mitigation agreement | 10 | | with the applicant that contains construction and | 11 | | deconstruction standards and policies and appropriate | 12 | | financial assurance mechanisms for deconstruction or | 13 | | abandonment.
| 14 | | Section 25. Emergency rulemaking. To provide for the | 15 | | expeditious and timely implementation of this Act, emergency | 16 | | rules to implement any provision of this Act may be adopted by | 17 | | the Department subject to the provisions of Section 5-45 of | 18 | | the Illinois Administrative Procedure Act. | 19 | | Section 80. The Illinois Administrative Procedure Act is | 20 | | amended by adding Sections 5-45.8 and 5-45.9 as follows: | 21 | | (5 ILCS 100/5-45.8 new) | 22 | | Sec. 5-45.8. Emergency rulemaking; Rust Belt to Green Belt | 23 | | Pilot Program Act. To provide for the expeditious and timely |
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| 1 | | implementation of the Rust Belt to Green Belt Pilot Program | 2 | | Act, emergency rules implementing the Rust Belt to Green Belt | 3 | | Pilot Program Act may be adopted in accordance with Section | 4 | | 5-45 by the Department of Commerce and Economic Opportunity. | 5 | | The adoption of emergency rules authorized by Section 5-45 and | 6 | | this Section is deemed to be necessary for the public | 7 | | interest, safety, and welfare. | 8 | | This Section is repealed on January 1, 2027. | 9 | | (5 ILCS 100/5-45.9 new) | 10 | | Sec. 5-45.9. Emergency rulemaking; Illinois Power Agency | 11 | | Act. To provide for the expeditious and timely implementation | 12 | | of changes made to Section 1-75 of the Illinois Power Agency | 13 | | Act by this amendatory Act of the 102nd General Assembly, | 14 | | emergency rules implementing the changes made to Section 1-75 | 15 | | of the Illinois Power Agency Act by this amendatory Act of the | 16 | | 102nd General Assembly may be adopted in accordance with | 17 | | Section 5-45 by the Illinois Power Agency. The adoption of | 18 | | emergency rules authorized by Section 5-45 and this Section is | 19 | | deemed to be necessary for the public interest, safety, and | 20 | | welfare. | 21 | | This Section is repealed on January 1, 2027. | 22 | | Section 85. The Illinois Power Agency Act is amended by | 23 | | changing Section 1-75 as follows: |
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| 1 | | (20 ILCS 3855/1-75) | 2 | | Sec. 1-75. Planning and Procurement Bureau. The Planning | 3 | | and Procurement Bureau has the following duties and | 4 | | responsibilities: | 5 | | (a) The Planning and Procurement Bureau shall each year, | 6 | | beginning in 2008, develop procurement plans and conduct | 7 | | competitive procurement processes in accordance with the | 8 | | requirements of Section 16-111.5 of the Public Utilities Act | 9 | | for the eligible retail customers of electric utilities that | 10 | | on December 31, 2005 provided electric service to at least | 11 | | 100,000 customers in Illinois. Beginning with the delivery | 12 | | year commencing on June 1, 2017, the Planning and Procurement | 13 | | Bureau shall develop plans and processes for the procurement | 14 | | of zero emission credits from zero emission facilities in | 15 | | accordance with the requirements of subsection (d-5) of this | 16 | | Section. The Planning and Procurement Bureau shall also | 17 | | develop procurement plans and conduct competitive procurement | 18 | | processes in accordance with the requirements of Section | 19 | | 16-111.5 of the Public Utilities Act for the eligible retail | 20 | | customers of small multi-jurisdictional electric utilities | 21 | | that (i) on December 31, 2005 served less than 100,000 | 22 | | customers in Illinois and (ii) request a procurement plan for | 23 | | their Illinois jurisdictional load. This Section shall not | 24 | | apply to a small multi-jurisdictional utility until such time | 25 | | as a small multi-jurisdictional utility requests the Agency to | 26 | | prepare a procurement plan for their Illinois jurisdictional |
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| 1 | | load. For the purposes of this Section, the term "eligible | 2 | | retail customers" has the same definition as found in Section | 3 | | 16-111.5(a) of the Public Utilities Act. | 4 | | Beginning with the plan or plans to be implemented in the | 5 | | 2017 delivery year, the Agency shall no longer include the | 6 | | procurement of renewable energy resources in the annual | 7 | | procurement plans required by this subsection (a), except as | 8 | | provided in subsection (q) of Section 16-111.5 of the Public | 9 | | Utilities Act, and shall instead develop a long-term renewable | 10 | | resources procurement plan in accordance with subsection (c) | 11 | | of this Section and Section 16-111.5 of the Public Utilities | 12 | | Act. | 13 | | (1) The Agency shall each year, beginning in 2008, as | 14 | | needed, issue a request for qualifications for experts or | 15 | | expert consulting firms to develop the procurement plans | 16 | | in accordance with Section 16-111.5 of the Public | 17 | | Utilities Act. In order to qualify an expert or expert | 18 | | consulting firm must have: | 19 | | (A) direct previous experience assembling | 20 | | large-scale power supply plans or portfolios for | 21 | | end-use customers; | 22 | | (B) an advanced degree in economics, mathematics, | 23 | | engineering, risk management, or a related area of | 24 | | study; | 25 | | (C) 10 years of experience in the electricity | 26 | | sector, including managing supply risk; |
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| 1 | | (D) expertise in wholesale electricity market | 2 | | rules, including those established by the Federal | 3 | | Energy Regulatory Commission and regional transmission | 4 | | organizations; | 5 | | (E) expertise in credit protocols and familiarity | 6 | | with contract protocols; | 7 | | (F) adequate resources to perform and fulfill the | 8 | | required functions and responsibilities; and | 9 | | (G) the absence of a conflict of interest and | 10 | | inappropriate bias for or against potential bidders or | 11 | | the affected electric utilities. | 12 | | (2) The Agency shall each year, as needed, issue a | 13 | | request for qualifications for a procurement administrator | 14 | | to conduct the competitive procurement processes in | 15 | | accordance with Section 16-111.5 of the Public Utilities | 16 | | Act. In order to qualify an expert or expert consulting | 17 | | firm must have: | 18 | | (A) direct previous experience administering a | 19 | | large-scale competitive procurement process; | 20 | | (B) an advanced degree in economics, mathematics, | 21 | | engineering, or a related area of study; | 22 | | (C) 10 years of experience in the electricity | 23 | | sector, including risk management experience; | 24 | | (D) expertise in wholesale electricity market | 25 | | rules, including those established by the Federal | 26 | | Energy Regulatory Commission and regional transmission |
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| 1 | | organizations; | 2 | | (E) expertise in credit and contract protocols; | 3 | | (F) adequate resources to perform and fulfill the | 4 | | required functions and responsibilities; and | 5 | | (G) the absence of a conflict of interest and | 6 | | inappropriate bias for or against potential bidders or | 7 | | the affected electric utilities. | 8 | | (3) The Agency shall provide affected utilities and | 9 | | other interested parties with the lists of qualified | 10 | | experts or expert consulting firms identified through the | 11 | | request for qualifications processes that are under | 12 | | consideration to develop the procurement plans and to | 13 | | serve as the procurement administrator. The Agency shall | 14 | | also provide each qualified expert's or expert consulting | 15 | | firm's response to the request for qualifications. All | 16 | | information provided under this subparagraph shall also be | 17 | | provided to the Commission. The Agency may provide by rule | 18 | | for fees associated with supplying the information to | 19 | | utilities and other interested parties. These parties | 20 | | shall, within 5 business days, notify the Agency in | 21 | | writing if they object to any experts or expert consulting | 22 | | firms on the lists. Objections shall be based on: | 23 | | (A) failure to satisfy qualification criteria; | 24 | | (B) identification of a conflict of interest; or | 25 | | (C) evidence of inappropriate bias for or against | 26 | | potential bidders or the affected utilities. |
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| 1 | | The Agency shall remove experts or expert consulting | 2 | | firms from the lists within 10 days if there is a | 3 | | reasonable basis for an objection and provide the updated | 4 | | lists to the affected utilities and other interested | 5 | | parties. If the Agency fails to remove an expert or expert | 6 | | consulting firm from a list, an objecting party may seek | 7 | | review by the Commission within 5 days thereafter by | 8 | | filing a petition, and the Commission shall render a | 9 | | ruling on the petition within 10 days. There is no right of | 10 | | appeal of the Commission's ruling. | 11 | | (4) The Agency shall issue requests for proposals to | 12 | | the qualified experts or expert consulting firms to | 13 | | develop a procurement plan for the affected utilities and | 14 | | to serve as procurement administrator. | 15 | | (5) The Agency shall select an expert or expert | 16 | | consulting firm to develop procurement plans based on the | 17 | | proposals submitted and shall award contracts of up to 5 | 18 | | years to those selected. | 19 | | (6) The Agency shall select an expert or expert | 20 | | consulting firm, with approval of the Commission, to serve | 21 | | as procurement administrator based on the proposals | 22 | | submitted. If the Commission rejects, within 5 days, the | 23 | | Agency's selection, the Agency shall submit another | 24 | | recommendation within 3 days based on the proposals | 25 | | submitted. The Agency shall award a 5-year contract to the | 26 | | expert or expert consulting firm so selected with |
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| 1 | | Commission approval. | 2 | | (b) The experts or expert consulting firms retained by the | 3 | | Agency shall, as appropriate, prepare procurement plans, and | 4 | | conduct a competitive procurement process as prescribed in | 5 | | Section 16-111.5 of the Public Utilities Act, to ensure | 6 | | adequate, reliable, affordable, efficient, and environmentally | 7 | | sustainable electric service at the lowest total cost over | 8 | | time, taking into account any benefits of price stability, for | 9 | | eligible retail customers of electric utilities that on | 10 | | December 31, 2005 provided electric service to at least | 11 | | 100,000 customers in the State of Illinois, and for eligible | 12 | | Illinois retail customers of small multi-jurisdictional | 13 | | electric utilities that (i) on December 31, 2005 served less | 14 | | than 100,000 customers in Illinois and (ii) request a | 15 | | procurement plan for their Illinois jurisdictional load. | 16 | | (c) Renewable portfolio standard. | 17 | | (1)(A) The Agency shall develop a long-term renewable | 18 | | resources procurement plan that shall include procurement | 19 | | programs and competitive procurement events necessary to | 20 | | meet the goals set forth in this subsection (c). The | 21 | | initial long-term renewable resources procurement plan | 22 | | shall be released for comment no later than 160 days after | 23 | | June 1, 2017 (the effective date of Public Act 99-906). | 24 | | The Agency shall review, and may revise on an expedited | 25 | | basis, the long-term renewable resources procurement plan | 26 | | at least every 2 years, which shall be conducted in |
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| 1 | | conjunction with the procurement plan under Section | 2 | | 16-111.5 of the Public Utilities Act to the extent | 3 | | practicable to minimize administrative expense. The | 4 | | long-term renewable resources procurement plans shall be | 5 | | subject to review and approval by the Commission under | 6 | | Section 16-111.5 of the Public Utilities Act. | 7 | | (B) Subject to subparagraph (F) of this paragraph (1), | 8 | | the long-term renewable resources procurement plan shall | 9 | | include the goals for procurement of renewable energy | 10 | | credits to meet at least the following overall | 11 | | percentages: 13% by the 2017 delivery year; increasing by | 12 | | at least 1.5% each delivery year thereafter to at least | 13 | | 25% by the 2025 delivery year; and continuing at no less | 14 | | than 25% for each delivery year thereafter. In the event | 15 | | of a conflict between these goals and the new wind and new | 16 | | photovoltaic procurement requirements described in items | 17 | | (i) through (iii) of subparagraph (C) of this paragraph | 18 | | (1), the long-term plan shall prioritize compliance with | 19 | | the new wind and new photovoltaic procurement requirements | 20 | | described in items (i) through (iii) of subparagraph (C) | 21 | | of this paragraph (1) over the annual percentage targets | 22 | | described in this subparagraph (B). | 23 | | For the delivery year beginning June 1, 2017, the | 24 | | procurement plan shall include cost-effective renewable | 25 | | energy resources equal to at least 13% of each utility's | 26 | | load for eligible retail customers and 13% of the |
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| 1 | | applicable portion of each utility's load for retail | 2 | | customers who are not eligible retail customers, which | 3 | | applicable portion shall equal 50% of the utility's load | 4 | | for retail customers who are not eligible retail customers | 5 | | on February 28, 2017. | 6 | | For the delivery year beginning June 1, 2018, the | 7 | | procurement plan shall include cost-effective renewable | 8 | | energy resources equal to at least 14.5% of each utility's | 9 | | load for eligible retail customers and 14.5% of the | 10 | | applicable portion of each utility's load for retail | 11 | | customers who are not eligible retail customers, which | 12 | | applicable portion shall equal 75% of the utility's load | 13 | | for retail customers who are not eligible retail customers | 14 | | on February 28, 2017. | 15 | | For the delivery year beginning June 1, 2019, and for | 16 | | each year thereafter, the procurement plans shall include | 17 | | cost-effective renewable energy resources equal to a | 18 | | minimum percentage of each utility's load for all retail | 19 | | customers as follows: 16% by June 1, 2019; increasing by | 20 | | 1.5% each year thereafter to 25% by June 1, 2025; and 25% | 21 | | by June 1, 2026 and each year thereafter. | 22 | | For each delivery year, the Agency shall first | 23 | | recognize each utility's obligations for that delivery | 24 | | year under existing contracts. Any renewable energy | 25 | | credits under existing contracts, including renewable | 26 | | energy credits as part of renewable energy resources, |
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| 1 | | shall be used to meet the goals set forth in this | 2 | | subsection (c) for the delivery year. | 3 | | (C) Of the renewable energy credits procured under | 4 | | this subsection (c), at least 75% shall come from wind and | 5 | | photovoltaic projects. The long-term renewable resources | 6 | | procurement plan described in subparagraph (A) of this | 7 | | paragraph (1) shall include the procurement of renewable | 8 | | energy credits in amounts equal to at least the following: | 9 | | (i) By the end of the 2020 delivery year: | 10 | | At least 2,000,000 renewable energy credits | 11 | | for each delivery year shall come from new wind | 12 | | projects; and | 13 | | At least 2,000,000 renewable energy credits | 14 | | for each delivery year shall come from new | 15 | | photovoltaic projects; of that amount, to the | 16 | | extent possible, the Agency shall procure: at | 17 | | least 50% from solar photovoltaic projects using | 18 | | the program outlined in subparagraph (K) of this | 19 | | paragraph (1) from distributed renewable energy | 20 | | generation devices or community renewable | 21 | | generation projects; at least 40% from | 22 | | utility-scale solar projects; at least 2% from | 23 | | brownfield site photovoltaic projects that are not | 24 | | community renewable generation projects; and the | 25 | | remainder shall be determined through the | 26 | | long-term planning process described in |
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| 1 | | subparagraph (A) of this paragraph (1). | 2 | | (ii) By the end of the 2025 delivery year: | 3 | | At least 3,000,000 renewable energy credits | 4 | | for each delivery year shall come from new wind | 5 | | projects; and | 6 | | At least 3,000,000 renewable energy credits | 7 | | for each delivery year shall come from new | 8 | | photovoltaic projects; of that amount, to the | 9 | | extent possible, the Agency shall procure: at | 10 | | least 50% from solar photovoltaic projects using | 11 | | the program outlined in subparagraph (K) of this | 12 | | paragraph (1) from distributed renewable energy | 13 | | devices or community renewable generation | 14 | | projects; at least 40% from utility-scale solar | 15 | | projects; at least 2% from brownfield site | 16 | | photovoltaic projects that are not community | 17 | | renewable generation projects; and the remainder | 18 | | shall be determined through the long-term planning | 19 | | process described in subparagraph (A) of this | 20 | | paragraph (1). | 21 | | (iii) By the end of the 2030 delivery year: | 22 | | At least 4,000,000 renewable energy credits | 23 | | for each delivery year shall come from new wind | 24 | | projects; and | 25 | | At least 4,000,000 renewable energy credits | 26 | | for each delivery year shall come from new |
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| 1 | | photovoltaic projects; of that amount, to the | 2 | | extent possible, the Agency shall procure: at | 3 | | least 50% from solar photovoltaic projects using | 4 | | the program outlined in subparagraph (K) of this | 5 | | paragraph (1) from distributed renewable energy | 6 | | devices or community renewable generation | 7 | | projects; at least 40% from utility-scale solar | 8 | | projects; at least 2% from brownfield site | 9 | | photovoltaic projects that are not community | 10 | | renewable generation projects; and the remainder | 11 | | shall be determined through the long-term planning | 12 | | process described in subparagraph (A) of this | 13 | | paragraph (1). | 14 | | For purposes of this Section: | 15 | | "New wind projects" means wind renewable | 16 | | energy facilities that are energized after June 1, | 17 | | 2017 for the delivery year commencing June 1, 2017 | 18 | | or within 3 years after the date the Commission | 19 | | approves contracts for subsequent delivery years. | 20 | | "New photovoltaic projects" means photovoltaic | 21 | | renewable energy facilities that are energized | 22 | | after June 1, 2017. Photovoltaic projects | 23 | | developed under Section 1-56 of this Act shall not | 24 | | apply towards the new photovoltaic project | 25 | | requirements in this subparagraph (C). | 26 | | (D) Renewable energy credits shall be cost effective. |
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| 1 | | For purposes of this subsection (c), "cost effective" | 2 | | means that the costs of procuring renewable energy | 3 | | resources do not cause the limit stated in subparagraph | 4 | | (E) of this paragraph (1) to be exceeded and, for | 5 | | renewable energy credits procured through a competitive | 6 | | procurement event, do not exceed benchmarks based on | 7 | | market prices for like products in the region. For | 8 | | purposes of this subsection (c), "like products" means | 9 | | contracts for renewable energy credits from the same or | 10 | | substantially similar technology, same or substantially | 11 | | similar vintage (new or existing), the same or | 12 | | substantially similar quantity, and the same or | 13 | | substantially similar contract length and structure. | 14 | | Benchmarks shall be developed by the procurement | 15 | | administrator, in consultation with the Commission staff, | 16 | | Agency staff, and the procurement monitor and shall be | 17 | | subject to Commission review and approval. If price | 18 | | benchmarks for like products in the region are not | 19 | | available, the procurement administrator shall establish | 20 | | price benchmarks based on publicly available data on | 21 | | regional technology costs and expected current and future | 22 | | regional energy prices. The benchmarks in this Section | 23 | | shall not be used to curtail or otherwise reduce | 24 | | contractual obligations entered into by or through the | 25 | | Agency prior to June 1, 2017 (the effective date of Public | 26 | | Act 99-906). |
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| 1 | | (E) For purposes of this subsection (c), the required | 2 | | procurement of cost-effective renewable energy resources | 3 | | for a particular year commencing prior to June 1, 2017 | 4 | | shall be measured as a percentage of the actual amount of | 5 | | electricity (megawatt-hours) supplied by the electric | 6 | | utility to eligible retail customers in the delivery year | 7 | | ending immediately prior to the procurement, and, for | 8 | | delivery years commencing on and after June 1, 2017, the | 9 | | required procurement of cost-effective renewable energy | 10 | | resources for a particular year shall be measured as a | 11 | | percentage of the actual amount of electricity | 12 | | (megawatt-hours) delivered by the electric utility in the | 13 | | delivery year ending immediately prior to the procurement, | 14 | | to all retail customers in its service territory. For | 15 | | purposes of this subsection (c), the amount paid per | 16 | | kilowatthour means the total amount paid for electric | 17 | | service expressed on a per kilowatthour basis. For | 18 | | purposes of this subsection (c), the total amount paid for | 19 | | electric service includes without limitation amounts paid | 20 | | for supply, transmission, distribution, surcharges, and | 21 | | add-on taxes. | 22 | | Notwithstanding the requirements of this subsection | 23 | | (c), the total of renewable energy resources procured | 24 | | under the procurement plan for any single year shall be | 25 | | subject to the limitations of this subparagraph (E). Such | 26 | | procurement shall be reduced for all retail customers |
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| 1 | | based on the amount necessary to limit the annual | 2 | | estimated average net increase due to the costs of these | 3 | | resources included in the amounts paid by eligible retail | 4 | | customers in connection with electric service to no more | 5 | | than the greater of 2.015% of the amount paid per | 6 | | kilowatthour by those customers during the year ending May | 7 | | 31, 2007 or the incremental amount per kilowatthour paid | 8 | | for these resources in 2011. To arrive at a maximum dollar | 9 | | amount of renewable energy resources to be procured for | 10 | | the particular delivery year, the resulting per | 11 | | kilowatthour amount shall be applied to the actual amount | 12 | | of kilowatthours of electricity delivered, or applicable | 13 | | portion of such amount as specified in paragraph (1) of | 14 | | this subsection (c), as applicable, by the electric | 15 | | utility in the delivery year immediately prior to the | 16 | | procurement to all retail customers in its service | 17 | | territory. The calculations required by this subparagraph | 18 | | (E) shall be made only once for each delivery year at the | 19 | | time that the renewable energy resources are procured. | 20 | | Once the determination as to the amount of renewable | 21 | | energy resources to procure is made based on the | 22 | | calculations set forth in this subparagraph (E) and the | 23 | | contracts procuring those amounts are executed, no | 24 | | subsequent rate impact determinations shall be made and no | 25 | | adjustments to those contract amounts shall be allowed. | 26 | | All costs incurred under such contracts shall be fully |
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| 1 | | recoverable by the electric utility as provided in this | 2 | | Section. | 3 | | (F) If the limitation on the amount of renewable | 4 | | energy resources procured in subparagraph (E) of this | 5 | | paragraph (1) prevents the Agency from meeting all of the | 6 | | goals in this subsection (c), the Agency's long-term plan | 7 | | shall prioritize compliance with the requirements of this | 8 | | subsection (c) regarding renewable energy credits in the | 9 | | following order: | 10 | | (i) renewable energy credits under existing | 11 | | contractual obligations; | 12 | | (i-5) funding for the Illinois Solar for All | 13 | | Program, as described in subparagraph (O) of this | 14 | | paragraph (1); | 15 | | (ii) renewable energy credits necessary to comply | 16 | | with the new wind and new photovoltaic procurement | 17 | | requirements described in items (i) through (iii) of | 18 | | subparagraph (C) of this paragraph (1); and | 19 | | (iii) renewable energy credits necessary to meet | 20 | | the remaining requirements of this subsection (c). | 21 | | (G) The following provisions shall apply to the | 22 | | Agency's procurement of renewable energy credits under | 23 | | this subsection (c): | 24 | | (i) Notwithstanding whether a long-term renewable | 25 | | resources procurement plan has been approved, the | 26 | | Agency shall conduct an initial forward procurement |
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| 1 | | for renewable energy credits from new utility-scale | 2 | | wind projects within 160 days after June 1, 2017 (the | 3 | | effective date of Public Act 99-906). For the purposes | 4 | | of this initial forward procurement, the Agency shall | 5 | | solicit 15-year contracts for delivery of 1,000,000 | 6 | | renewable energy credits delivered annually from new | 7 | | utility-scale wind projects to begin delivery on June | 8 | | 1, 2019, if available, but not later than June 1, 2021, | 9 | | unless the project has delays in the establishment of | 10 | | an operating interconnection with the applicable | 11 | | transmission or distribution system as a result of the | 12 | | actions or inactions of the transmission or | 13 | | distribution provider, or other causes for force | 14 | | majeure as outlined in the procurement contract, in | 15 | | which case, not later than June 1, 2022. Payments to | 16 | | suppliers of renewable energy credits shall commence | 17 | | upon delivery. Renewable energy credits procured under | 18 | | this initial procurement shall be included in the | 19 | | Agency's long-term plan and shall apply to all | 20 | | renewable energy goals in this subsection (c). | 21 | | (ii) 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 | | solar projects and brownfield site photovoltaic | 26 | | projects within one year after June 1, 2017 (the |
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| 1 | | effective date of Public Act 99-906). For the purposes | 2 | | of this initial forward procurement, the Agency shall | 3 | | solicit 15-year contracts for delivery of 1,000,000 | 4 | | renewable energy credits delivered annually from new | 5 | | utility-scale solar projects and brownfield site | 6 | | photovoltaic projects to begin delivery on June 1, | 7 | | 2019, if available, but not later than June 1, 2021, | 8 | | unless the project has delays in the establishment of | 9 | | an operating interconnection with the applicable | 10 | | transmission or distribution system as a result of the | 11 | | actions or inactions of the transmission or | 12 | | distribution provider, or other causes for force | 13 | | majeure as outlined in the procurement contract, in | 14 | | which case, not later than June 1, 2022. The Agency may | 15 | | structure this initial procurement in one or more | 16 | | discrete procurement events. Payments to suppliers of | 17 | | renewable energy credits shall commence upon delivery. | 18 | | Renewable energy credits procured under this initial | 19 | | procurement shall be included in the Agency's | 20 | | long-term plan and shall apply to all renewable energy | 21 | | goals in this subsection (c). | 22 | | (iii) Subsequent forward procurements for | 23 | | utility-scale wind projects shall solicit at least | 24 | | 1,000,000 renewable energy credits delivered annually | 25 | | per procurement event and shall be planned, scheduled, | 26 | | and designed such that the cumulative amount of |
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| 1 | | renewable energy credits delivered from all new wind | 2 | | projects in each delivery year shall not exceed the | 3 | | Agency's projection of the cumulative amount of | 4 | | renewable energy credits that will be delivered from | 5 | | all new photovoltaic projects, including utility-scale | 6 | | and distributed photovoltaic devices, in the same | 7 | | delivery year at the time scheduled for wind contract | 8 | | delivery. | 9 | | (iv) If, at any time after the time set for | 10 | | delivery of renewable energy credits pursuant to the | 11 | | initial procurements in items (i) and (ii) of this | 12 | | subparagraph (G), the cumulative amount of renewable | 13 | | energy credits projected to be delivered from all new | 14 | | wind projects in a given delivery year exceeds the | 15 | | cumulative amount of renewable energy credits | 16 | | projected to be delivered from all new photovoltaic | 17 | | projects in that delivery year by 200,000 or more | 18 | | renewable energy credits, then the Agency shall within | 19 | | 60 days adjust the procurement programs in the | 20 | | long-term renewable resources procurement plan to | 21 | | ensure that the projected cumulative amount of | 22 | | renewable energy credits to be delivered from all new | 23 | | wind projects does not exceed the projected cumulative | 24 | | amount of renewable energy credits to be delivered | 25 | | from all new photovoltaic projects by 200,000 or more | 26 | | renewable energy credits, provided that nothing in |
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| 1 | | this Section shall preclude the projected cumulative | 2 | | amount of renewable energy credits to be delivered | 3 | | from all new photovoltaic projects from exceeding the | 4 | | projected cumulative amount of renewable energy | 5 | | credits to be delivered from all new wind projects in | 6 | | each delivery year and provided further that nothing | 7 | | in this item (iv) shall require the curtailment of an | 8 | | executed contract. The Agency shall update, on a | 9 | | quarterly basis, its projection of the renewable | 10 | | energy credits to be delivered from all projects in | 11 | | each delivery year. Notwithstanding anything to the | 12 | | contrary, the Agency may adjust the timing of | 13 | | procurement events conducted under this subparagraph | 14 | | (G). The long-term renewable resources procurement | 15 | | plan shall set forth the process by which the | 16 | | adjustments may be made. | 17 | | (v) All procurements under this subparagraph (G) | 18 | | shall comply with the geographic requirements in | 19 | | subparagraph (I) of this paragraph (1) and shall | 20 | | follow the procurement processes and procedures | 21 | | described in this Section and Section 16-111.5 of the | 22 | | Public Utilities Act to the extent practicable, and | 23 | | these processes and procedures may be expedited to | 24 | | accommodate the schedule established by this | 25 | | subparagraph (G). | 26 | | (H) The procurement of renewable energy resources for |
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| 1 | | a given delivery year shall be reduced as described in | 2 | | this subparagraph (H) if an alternative retail electric | 3 | | supplier meets the requirements described in this | 4 | | subparagraph (H). | 5 | | (i) Within 45 days after June 1, 2017 (the | 6 | | effective date of Public Act 99-906), an alternative | 7 | | retail electric supplier or its successor shall submit | 8 | | an informational filing to the Illinois Commerce | 9 | | Commission certifying that, as of December 31, 2015, | 10 | | the alternative retail electric supplier owned one or | 11 | | more electric generating facilities that generates | 12 | | renewable energy resources as defined in Section 1-10 | 13 | | of this Act, provided that such facilities are not | 14 | | powered by wind or photovoltaics, and the facilities | 15 | | generate one renewable energy credit for each | 16 | | megawatthour of energy produced from the 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 |
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| 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% |
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| 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 |
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| 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 if the | 17 | | generator demonstrates and the Agency determines that the | 18 | | operation of such facility or facilities will help promote | 19 | | the State's interest in the health, safety, and welfare of | 20 | | its residents based on the public interest criteria | 21 | | described above. To ensure that the public interest | 22 | | criteria are applied to the procurement and given full | 23 | | effect, the Agency's long-term procurement plan shall | 24 | | describe in detail how each public interest factor shall | 25 | | be considered and weighted for facilities located in | 26 | | states adjacent to Illinois. |
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| 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. | 7 | | (K) The long-term renewable resources procurement plan | 8 | | developed by the Agency in accordance with subparagraph | 9 | | (A) of this paragraph (1) shall include an Adjustable | 10 | | Block program for the procurement of renewable energy | 11 | | credits from new photovoltaic projects that are | 12 | | distributed renewable energy generation devices or new | 13 | | photovoltaic community renewable generation projects. The | 14 | | Adjustable Block program shall be designed to provide a | 15 | | transparent schedule of prices and quantities to enable | 16 | | the photovoltaic market to scale up and for renewable | 17 | | energy credit prices to adjust at a predictable rate over | 18 | | time. The prices set by the Adjustable Block program can | 19 | | be reflected as a set value or as the product of a formula. | 20 | | The Adjustable Block program shall include for each | 21 | | category of eligible projects: a schedule of standard | 22 | | block purchase prices to be offered; a series of steps, | 23 | | with associated nameplate capacity and purchase prices | 24 | | that adjust from step to step; and automatic opening of | 25 | | the next step as soon as the nameplate capacity and | 26 | | available purchase prices for an open step are fully |
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| 1 | | committed or reserved. Only projects energized on or after | 2 | | June 1, 2017 shall be eligible for the Adjustable Block | 3 | | program. For each block group the Agency shall determine | 4 | | the number of blocks, the amount of generation capacity in | 5 | | each block, and the purchase price for each block, | 6 | | provided that the purchase price provided and the total | 7 | | amount of generation in all blocks for all block groups | 8 | | shall be sufficient to meet the goals in this subsection | 9 | | (c). The Agency may periodically review its prior | 10 | | decisions establishing the number of blocks, the amount of | 11 | | generation capacity in each block, and the purchase price | 12 | | for each block, and may propose, on an expedited basis, | 13 | | changes to these previously set values, including but not | 14 | | limited to redistributing these amounts and the available | 15 | | funds as necessary and appropriate, subject to Commission | 16 | | approval as part of the periodic plan revision process | 17 | | described in Section 16-111.5 of the Public Utilities Act. | 18 | | The Agency may define different block sizes, purchase | 19 | | prices, or other distinct terms and conditions for | 20 | | projects located in different utility service territories | 21 | | if the Agency deems it necessary to meet the goals in this | 22 | | subsection (c). | 23 | | The Adjustable Block program shall include at least | 24 | | the following block groups in at least the following | 25 | | amounts, which may be adjusted upon review by the Agency | 26 | | and approval by the Commission as described in this |
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| 1 | | subparagraph (K): | 2 | | (i) At least 25% from distributed renewable energy | 3 | | generation devices with a nameplate capacity of no | 4 | | more than 10 kilowatts. | 5 | | (ii) At least 25% from distributed renewable | 6 | | energy generation devices with a nameplate capacity of | 7 | | more than 10 kilowatts and no more than 2,000 | 8 | | kilowatts. The Agency may create sub-categories within | 9 | | this category to account for the differences between | 10 | | projects for small commercial customers, large | 11 | | commercial customers, and public or non-profit | 12 | | customers. | 13 | | (iii) At least 25% from photovoltaic community | 14 | | renewable generation projects. | 15 | | (iv) The remaining 25% shall be allocated as | 16 | | specified by the Agency in the long-term renewable | 17 | | resources procurement plan. | 18 | | The Adjustable Block program shall be designed to | 19 | | ensure that renewable energy credits are procured from | 20 | | photovoltaic distributed renewable energy generation | 21 | | devices and new photovoltaic community renewable energy | 22 | | generation projects in diverse locations and are not | 23 | | concentrated in a few geographic areas. | 24 | | (L) The procurement of photovoltaic renewable energy | 25 | | credits under items (i) through (iv) of subparagraph (K) | 26 | | of this paragraph (1) shall be subject to the following |
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| 1 | | contract and payment terms: | 2 | | (i) The Agency shall procure contracts of at least | 3 | | 15 years in length. | 4 | | (ii) For those renewable energy credits that | 5 | | qualify and are procured under item (i) of | 6 | | subparagraph (K) of this paragraph (1), the renewable | 7 | | energy credit purchase price shall be paid in full by | 8 | | the contracting utilities at the time that the | 9 | | facility producing the renewable energy credits is | 10 | | interconnected at the distribution system level of the | 11 | | utility and energized. The electric utility shall | 12 | | receive and retire all renewable energy credits | 13 | | generated by the project for the first 15 years of | 14 | | operation. | 15 | | (iii) For those renewable energy credits that | 16 | | qualify and are procured under item (ii) and (iii) of | 17 | | subparagraph (K) of this paragraph (1) and any | 18 | | additional categories of distributed generation | 19 | | included in the long-term renewable resources | 20 | | procurement plan and approved by the Commission, 20 | 21 | | percent of the renewable energy credit purchase price | 22 | | shall be paid by the contracting utilities at the time | 23 | | that the facility producing the renewable energy | 24 | | credits is interconnected at the distribution system | 25 | | level of the utility and energized. The remaining | 26 | | portion shall be paid ratably over the subsequent |
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| 1 | | 4-year period. The electric utility shall receive and | 2 | | retire all renewable energy credits generated by the | 3 | | project for the first 15 years of operation. | 4 | | (iv) Each contract shall include provisions to | 5 | | ensure the delivery of the renewable energy credits | 6 | | for the full term of the contract. | 7 | | (v) The utility shall be the counterparty to the | 8 | | contracts executed under this subparagraph (L) that | 9 | | are approved by the Commission under the process | 10 | | described in Section 16-111.5 of the Public Utilities | 11 | | Act. No contract shall be executed for an amount that | 12 | | is less than one renewable energy credit per year. | 13 | | (vi) If, at any time, approved applications for | 14 | | the Adjustable Block program exceed funds collected by | 15 | | the electric utility or would cause the Agency to | 16 | | exceed the limitation described in subparagraph (E) of | 17 | | this paragraph (1) on the amount of renewable energy | 18 | | resources that may be procured, then the Agency shall | 19 | | consider future uncommitted funds to be reserved for | 20 | | these contracts on a first-come, first-served basis, | 21 | | with the delivery of renewable energy credits required | 22 | | beginning at the time that the reserved funds become | 23 | | available. | 24 | | (vii) Nothing in this Section shall require the | 25 | | utility to advance any payment or pay any amounts that | 26 | | exceed the actual amount of revenues collected by the |
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| 1 | | utility under paragraph (6) of this subsection (c) and | 2 | | subsection (k) of Section 16-108 of the Public | 3 | | Utilities Act, and contracts executed under this | 4 | | Section shall expressly incorporate this limitation. | 5 | | (M) The Agency shall be authorized to retain one or | 6 | | more experts or expert consulting firms to develop, | 7 | | administer, implement, operate, and evaluate the | 8 | | Adjustable Block program described in subparagraph (K) of | 9 | | this paragraph (1), and the Agency shall retain the | 10 | | consultant or consultants in the same manner, to the | 11 | | extent practicable, as the Agency retains others to | 12 | | administer provisions of this Act, including, but not | 13 | | limited to, the procurement administrator. The selection | 14 | | of experts and expert consulting firms and the procurement | 15 | | process described in this subparagraph (M) are exempt from | 16 | | the requirements of Section 20-10 of the Illinois | 17 | | Procurement Code, under Section 20-10 of that Code. The | 18 | | Agency shall strive to minimize administrative expenses in | 19 | | the implementation of the Adjustable Block program. | 20 | | The Agency and its consultant or consultants shall | 21 | | monitor block activity, share program activity with | 22 | | stakeholders and conduct regularly scheduled meetings to | 23 | | discuss program activity and market conditions. If | 24 | | necessary, the Agency may make prospective administrative | 25 | | adjustments to the Adjustable Block program design, such | 26 | | as redistributing available funds or making adjustments to |
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| 1 | | purchase prices as necessary to achieve the goals of this | 2 | | subsection (c). Program modifications to any price, | 3 | | capacity block, or other program element that do not | 4 | | deviate from the Commission's approved value by more than | 5 | | 25% shall take effect immediately and are not subject to | 6 | | Commission review and approval. Program modifications to | 7 | | any price, capacity block, or other program element that | 8 | | deviate more than 25% from the Commission's approved value | 9 | | must be approved by the Commission as a long-term plan | 10 | | amendment under Section 16-111.5 of the Public Utilities | 11 | | Act. The Agency shall consider stakeholder feedback when | 12 | | making adjustments to the Adjustable Block design and | 13 | | shall notify stakeholders in advance of any planned | 14 | | changes. | 15 | | (N) The long-term renewable resources procurement plan | 16 | | required by this subsection (c) shall include a community | 17 | | renewable generation program. The Agency shall establish | 18 | | the terms, conditions, and program requirements for | 19 | | community renewable generation projects with a goal to | 20 | | expand renewable energy generating facility access to a | 21 | | 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. Any plan | 25 | | approved by the Commission shall allow subscriptions to | 26 | | community renewable generation projects to be portable and |
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| 1 | | transferable. For purposes of this subparagraph (N), | 2 | | "portable" means that subscriptions may be retained by the | 3 | | subscriber even if the subscriber relocates or changes its | 4 | | address within the same utility service territory; and | 5 | | "transferable" means that a subscriber may assign or sell | 6 | | subscriptions to another person within the same utility | 7 | | service territory. | 8 | | Electric utilities shall provide a monetary credit to | 9 | | a subscriber's subsequent bill for service for the | 10 | | proportional output of a community renewable generation | 11 | | project attributable to that subscriber as specified in | 12 | | Section 16-107.5 of the Public Utilities Act. | 13 | | The Agency shall purchase renewable energy credits | 14 | | from subscribed shares of photovoltaic community renewable | 15 | | generation projects through the Adjustable Block program | 16 | | described in subparagraph (K) of this paragraph (1) or | 17 | | through the Illinois Solar for All Program described in | 18 | | Section 1-56 of this Act. The electric utility shall | 19 | | purchase any unsubscribed energy from community renewable | 20 | | generation projects that are Qualifying Facilities ("QF") | 21 | | under the electric utility's tariff for purchasing the | 22 | | output from QFs under Public Utilities Regulatory Policies | 23 | | Act of 1978. | 24 | | The owners of and any subscribers to a community | 25 | | renewable generation project shall not be considered | 26 | | public utilities or alternative retail electricity |
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| 1 | | suppliers under the Public Utilities Act solely as a | 2 | | result of their interest in or subscription to a community | 3 | | renewable generation project and shall not be required to | 4 | | become an alternative retail electric supplier by | 5 | | participating in a community renewable generation project | 6 | | with a public utility. | 7 | | (O) For the delivery year beginning June 1, 2018, the | 8 | | long-term renewable resources procurement plan required by | 9 | | this subsection (c) shall provide for the Agency to | 10 | | procure contracts to continue offering the Illinois Solar | 11 | | for All Program described in subsection (b) of Section | 12 | | 1-56 of this Act, and the contracts approved by the | 13 | | Commission shall be executed by the utilities that are | 14 | | subject to this subsection (c). The long-term renewable | 15 | | resources procurement plan shall allocate 5% of the funds | 16 | | available under the plan for the applicable delivery year, | 17 | | or $10,000,000 per delivery year, whichever is greater, to | 18 | | fund the programs, and the plan shall determine the amount | 19 | | of funding to be apportioned to the programs identified in | 20 | | subsection (b) of Section 1-56 of this Act; provided that | 21 | | for the delivery years beginning June 1, 2017, June 1, | 22 | | 2021, and June 1, 2025, the long-term renewable resources | 23 | | procurement plan shall allocate 10% of the funds available | 24 | | under the plan for the applicable delivery year, or | 25 | | $20,000,000 per delivery year, whichever is greater, and | 26 | | $10,000,000 of such funds in such year shall be used by an |
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| 1 | | electric utility that serves more than 3,000,000 retail | 2 | | customers in the State to implement a Commission-approved | 3 | | plan under Section 16-108.12 of the Public Utilities Act. | 4 | | In making the determinations required under this | 5 | | subparagraph (O), the Commission shall consider the | 6 | | experience and performance under the programs and any | 7 | | evaluation reports. The Commission shall also provide for | 8 | | an independent evaluation of those programs on a periodic | 9 | | basis that are funded under this subparagraph (O). | 10 | | (P) The Agency shall adopt rules to procure sourcing | 11 | | agreements with electric utilities and alternative retail | 12 | | electric suppliers required to comply with subsection (c) | 13 | | of this Section and paragraph (5) of subsection (d) of | 14 | | Section 16-115 of the Public Utilities Act to procure | 15 | | electricity from an offshore wind energy generation | 16 | | facility that has been certified by the Department of | 17 | | Commerce and Economic Opportunity pursuant to Section 20 | 18 | | of the Rust Belt to Green Belt Pilot Program Act. | 19 | | To provide for the expeditious and timely | 20 | | implementation of this subparagraph (P), emergency rules | 21 | | to implement this subparagraph (P) may be adopted by the | 22 | | Agency subject to the provisions of Section 5-45 of the | 23 | | Illinois Administrative Procedure Act. | 24 | | (2) (Blank). | 25 | | (3) (Blank). | 26 | | (4) The electric utility shall retire all renewable |
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| 1 | | energy credits used to comply with the standard. | 2 | | (5) Beginning with the 2010 delivery year and ending | 3 | | June 1, 2017, an electric utility subject to this | 4 | | subsection (c) shall apply the lesser of the maximum | 5 | | alternative compliance payment rate or the most recent | 6 | | estimated alternative compliance payment rate for its | 7 | | service territory for the corresponding compliance period, | 8 | | established pursuant to subsection (d) of Section 16-115D | 9 | | of the Public Utilities Act to its retail customers that | 10 | | take service pursuant to the electric utility's hourly | 11 | | pricing tariff or tariffs. The electric utility shall | 12 | | retain all amounts collected as a result of the | 13 | | application of the alternative compliance payment rate or | 14 | | rates to such customers, and, beginning in 2011, the | 15 | | utility shall include in the information provided under | 16 | | item (1) of subsection (d) of Section 16-111.5 of the | 17 | | Public Utilities Act the amounts collected under the | 18 | | alternative compliance payment rate or rates for the prior | 19 | | year ending May 31. Notwithstanding any limitation on the | 20 | | procurement of renewable energy resources imposed by item | 21 | | (2) of this subsection (c), the Agency shall increase its | 22 | | spending on the purchase of renewable energy resources to | 23 | | be procured by the electric utility for the next plan year | 24 | | by an amount equal to the amounts collected by the utility | 25 | | under the alternative compliance payment rate or rates in | 26 | | the prior year ending May 31. |
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| 1 | | (6) The electric utility shall be entitled to recover | 2 | | all of its costs associated with the procurement of | 3 | | renewable energy credits under plans approved under this | 4 | | Section and Section 16-111.5 of the Public Utilities Act. | 5 | | These costs shall include associated reasonable expenses | 6 | | for implementing the procurement programs, including, but | 7 | | not limited to, the costs of administering and evaluating | 8 | | the Adjustable Block program, through an automatic | 9 | | adjustment clause tariff in accordance with subsection (k) | 10 | | of Section 16-108 of the Public Utilities Act. | 11 | | (7) Renewable energy credits procured from new | 12 | | photovoltaic projects or new distributed renewable energy | 13 | | generation devices under this Section after June 1, 2017 | 14 | | (the effective date of Public Act 99-906) must be procured | 15 | | from devices installed by a qualified person in compliance | 16 | | with the requirements of Section 16-128A of the Public | 17 | | Utilities Act and any rules or regulations adopted | 18 | | thereunder. | 19 | | In meeting the renewable energy requirements of this | 20 | | subsection (c), to the extent feasible and consistent with | 21 | | State and federal law, the renewable energy credit | 22 | | procurements, Adjustable Block solar program, and | 23 | | community renewable generation program shall provide | 24 | | employment opportunities for all segments of the | 25 | | population and workforce, including minority-owned and | 26 | | female-owned business enterprises, and shall not, |
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| 1 | | consistent with State and federal law, discriminate based | 2 | | on race or socioeconomic status. | 3 | | (d) Clean coal portfolio standard. | 4 | | (1) The procurement plans shall include electricity | 5 | | generated using clean coal. Each utility shall enter into | 6 | | one or more sourcing agreements with the initial clean | 7 | | coal facility, as provided in paragraph (3) of this | 8 | | subsection (d), covering electricity generated by the | 9 | | initial clean coal facility representing at least 5% of | 10 | | each utility's total supply to serve the load of eligible | 11 | | retail customers in 2015 and each year thereafter, as | 12 | | described in paragraph (3) of this subsection (d), subject | 13 | | to the limits specified in paragraph (2) of this | 14 | | subsection (d). It is the goal of the State that by January | 15 | | 1, 2025, 25% of the electricity used in the State shall be | 16 | | generated by cost-effective clean coal facilities. For | 17 | | purposes of this subsection (d), "cost-effective" means | 18 | | that the expenditures pursuant to such sourcing agreements | 19 | | do not cause the limit stated in paragraph (2) of this | 20 | | subsection (d) to be exceeded and do not exceed cost-based | 21 | | benchmarks, which shall be developed to assess all | 22 | | expenditures pursuant to such sourcing agreements covering | 23 | | electricity generated by clean coal facilities, other than | 24 | | the initial clean coal facility, by the procurement | 25 | | administrator, in consultation with the Commission staff, | 26 | | Agency staff, and the procurement monitor and shall be |
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| 1 | | subject to Commission review and approval. | 2 | | A utility party to a sourcing agreement shall | 3 | | immediately retire any emission credits that it receives | 4 | | in connection with the electricity covered by such | 5 | | agreement. | 6 | | Utilities shall maintain adequate records documenting | 7 | | the purchases under the sourcing agreement to comply with | 8 | | this subsection (d) and shall file an accounting with the | 9 | | load forecast that must be filed with the Agency by July 15 | 10 | | of each year, in accordance with subsection (d) of Section | 11 | | 16-111.5 of the Public Utilities Act. | 12 | | A utility shall be deemed to have complied with the | 13 | | clean coal portfolio standard specified in this subsection | 14 | | (d) if the utility enters into a sourcing agreement as | 15 | | required by this subsection (d). | 16 | | (2) For purposes of this subsection (d), the required | 17 | | execution of sourcing agreements with the initial clean | 18 | | coal facility for a particular year shall be measured as a | 19 | | percentage of the actual amount of electricity | 20 | | (megawatt-hours) supplied by the electric utility to | 21 | | eligible retail customers in the planning year ending | 22 | | immediately prior to the agreement's execution. For | 23 | | purposes of this subsection (d), the amount paid per | 24 | | kilowatthour means the total amount paid for electric | 25 | | service expressed on a per kilowatthour basis. For | 26 | | purposes of this subsection (d), the total amount paid for |
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| 1 | | electric service includes without limitation amounts paid | 2 | | for supply, transmission, distribution, surcharges and | 3 | | add-on taxes. | 4 | | Notwithstanding the requirements of this subsection | 5 | | (d), the total amount paid under sourcing agreements with | 6 | | clean coal facilities pursuant to the procurement plan for | 7 | | any given year shall be reduced by an amount necessary to | 8 | | limit the annual estimated average net increase due to the | 9 | | costs of these resources included in the amounts paid by | 10 | | eligible retail customers in connection with electric | 11 | | service to: | 12 | | (A) in 2010, no more than 0.5% of the amount paid | 13 | | per kilowatthour by those customers during the year | 14 | | ending May 31, 2009; | 15 | | (B) in 2011, the greater of an additional 0.5% of | 16 | | the amount paid per kilowatthour by those customers | 17 | | during the year ending May 31, 2010 or 1% of the amount | 18 | | paid per kilowatthour by those customers during the | 19 | | year ending May 31, 2009; | 20 | | (C) in 2012, the greater of an additional 0.5% of | 21 | | the amount paid per kilowatthour by those customers | 22 | | during the year ending May 31, 2011 or 1.5% of the | 23 | | amount paid per kilowatthour by those customers during | 24 | | the year ending May 31, 2009; | 25 | | (D) in 2013, the greater of an additional 0.5% of | 26 | | the amount paid per kilowatthour by those customers |
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| 1 | | during the year ending May 31, 2012 or 2% of the amount | 2 | | paid per kilowatthour by those customers during the | 3 | | year ending May 31, 2009; and | 4 | | (E) thereafter, the total amount paid under | 5 | | sourcing agreements with clean coal facilities | 6 | | pursuant to the procurement plan for any single year | 7 | | shall be reduced by an amount necessary to limit the | 8 | | estimated average net increase due to the cost of | 9 | | these resources included in the amounts paid by | 10 | | eligible retail customers in connection with electric | 11 | | service to no more than the greater of (i) 2.015% of | 12 | | the amount paid per kilowatthour by those customers | 13 | | during the year ending May 31, 2009 or (ii) the | 14 | | incremental amount per kilowatthour paid for these | 15 | | resources in 2013. These requirements may be altered | 16 | | only as provided by statute. | 17 | | No later than June 30, 2015, the Commission shall | 18 | | review the limitation on the total amount paid under | 19 | | sourcing agreements, if any, with clean coal facilities | 20 | | pursuant to this subsection (d) and report to the General | 21 | | Assembly its findings as to whether that limitation unduly | 22 | | constrains the amount of electricity generated by | 23 | | cost-effective clean coal facilities that is covered by | 24 | | sourcing agreements. | 25 | | (3) Initial clean coal facility. In order to promote | 26 | | development of clean coal facilities in Illinois, each |
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| 1 | | electric utility subject to this Section shall execute a | 2 | | sourcing agreement to source electricity from a proposed | 3 | | clean coal facility in Illinois (the "initial clean coal | 4 | | facility") that will have a nameplate capacity of at least | 5 | | 500 MW when commercial operation commences, that has a | 6 | | final Clean Air Act permit on June 1, 2009 (the effective | 7 | | date of Public Act 95-1027), and that will meet the | 8 | | definition of clean coal facility in Section 1-10 of this | 9 | | Act when commercial operation commences. The sourcing | 10 | | agreements with this initial clean coal facility shall be | 11 | | subject to both approval of the initial clean coal | 12 | | facility by the General Assembly and satisfaction of the | 13 | | requirements of paragraph (4) of this subsection (d) and | 14 | | shall be executed within 90 days after any such approval | 15 | | by the General Assembly. The Agency and the Commission | 16 | | shall have authority to inspect all books and records | 17 | | associated with the initial clean coal facility during the | 18 | | term of such a sourcing agreement. A utility's sourcing | 19 | | agreement for electricity produced by the initial clean | 20 | | coal facility shall include: | 21 | | (A) a formula contractual price (the "contract | 22 | | price") approved pursuant to paragraph (4) of this | 23 | | subsection (d), which shall: | 24 | | (i) be determined using a cost of service | 25 | | methodology employing either a level or deferred | 26 | | capital recovery component, based on a capital |
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| 1 | | structure consisting of 45% equity and 55% debt, | 2 | | and a return on equity as may be approved by the | 3 | | Federal Energy Regulatory Commission, which in any | 4 | | case may not exceed the lower of 11.5% or the rate | 5 | | of return approved by the General Assembly | 6 | | pursuant to paragraph (4) of this subsection (d); | 7 | | and | 8 | | (ii) provide that all miscellaneous net | 9 | | revenue, including but not limited to net revenue | 10 | | from the sale of emission allowances, if any, | 11 | | substitute natural gas, if any, grants or other | 12 | | support provided by the State of Illinois or the | 13 | | United States Government, firm transmission | 14 | | rights, if any, by-products produced by the | 15 | | facility, energy or capacity derived from the | 16 | | facility and not covered by a sourcing agreement | 17 | | pursuant to paragraph (3) of this subsection (d) | 18 | | or item (5) of subsection (d) of Section 16-115 of | 19 | | the Public Utilities Act, whether generated from | 20 | | the synthesis gas derived from coal, from SNG, or | 21 | | from natural gas, shall be credited against the | 22 | | revenue requirement for this initial clean coal | 23 | | facility; | 24 | | (B) power purchase provisions, which shall: | 25 | | (i) provide that the utility party to such | 26 | | sourcing agreement shall pay the contract price |
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| 1 | | for electricity delivered under such sourcing | 2 | | agreement; | 3 | | (ii) require delivery of electricity to the | 4 | | regional transmission organization market of the | 5 | | utility that is party to such sourcing agreement; | 6 | | (iii) require the utility party to such | 7 | | sourcing agreement to buy from the initial clean | 8 | | coal facility in each hour an amount of energy | 9 | | equal to all clean coal energy made available from | 10 | | the initial clean coal facility during such hour | 11 | | times a fraction, the numerator of which is such | 12 | | utility's retail market sales of electricity | 13 | | (expressed in kilowatthours sold) in the State | 14 | | during the prior calendar month and the | 15 | | denominator of which is the total retail market | 16 | | sales of electricity (expressed in kilowatthours | 17 | | sold) in the State by utilities during such prior | 18 | | month and the sales of electricity (expressed in | 19 | | kilowatthours sold) in the State by alternative | 20 | | retail electric suppliers during such prior month | 21 | | that are subject to the requirements of this | 22 | | subsection (d) and paragraph (5) of subsection (d) | 23 | | of Section 16-115 of the Public Utilities Act, | 24 | | provided that the amount purchased by the utility | 25 | | in any year will be limited by paragraph (2) of | 26 | | this subsection (d); and |
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| 1 | | (iv) be considered pre-existing contracts in | 2 | | such utility's procurement plans for eligible | 3 | | retail customers; | 4 | | (C) contract for differences provisions, which | 5 | | shall: | 6 | | (i) require the utility party to such sourcing | 7 | | agreement to contract with the initial clean coal | 8 | | facility in each hour with respect to an amount of | 9 | | energy equal to all clean coal energy made | 10 | | available from the initial clean coal facility | 11 | | during such hour times a fraction, the numerator | 12 | | of which is such utility's retail market sales of | 13 | | electricity (expressed in kilowatthours sold) in | 14 | | the utility's service territory in the State | 15 | | during the prior calendar month and the | 16 | | denominator of which is the total retail market | 17 | | sales of electricity (expressed in kilowatthours | 18 | | sold) in the State by utilities during such prior | 19 | | month and the sales of electricity (expressed in | 20 | | kilowatthours sold) in the State by alternative | 21 | | retail electric suppliers during such prior month | 22 | | that are subject to the requirements of this | 23 | | subsection (d) and paragraph (5) of subsection (d) | 24 | | of Section 16-115 of the Public Utilities Act, | 25 | | provided that the amount paid by the utility in | 26 | | any year will be limited by paragraph (2) of this |
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| 1 | | subsection (d); | 2 | | (ii) provide that the utility's payment | 3 | | obligation in respect of the quantity of | 4 | | electricity determined pursuant to the preceding | 5 | | clause (i) shall be limited to an amount equal to | 6 | | (1) the difference between the contract price | 7 | | determined pursuant to subparagraph (A) of | 8 | | paragraph (3) of this subsection (d) and the | 9 | | day-ahead price for electricity delivered to the | 10 | | regional transmission organization market of the | 11 | | utility that is party to such sourcing agreement | 12 | | (or any successor delivery point at which such | 13 | | utility's supply obligations are financially | 14 | | settled on an hourly basis) (the "reference | 15 | | price") on the day preceding the day on which the | 16 | | electricity is delivered to the initial clean coal | 17 | | facility busbar, multiplied by (2) the quantity of | 18 | | electricity determined pursuant to the preceding | 19 | | clause (i); and | 20 | | (iii) not require the utility to take physical | 21 | | delivery of the electricity produced by the | 22 | | facility; | 23 | | (D) general provisions, which shall: | 24 | | (i) specify a term of no more than 30 years, | 25 | | commencing on the commercial operation date of the | 26 | | facility; |
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| 1 | | (ii) provide that utilities shall maintain | 2 | | adequate records documenting purchases under the | 3 | | sourcing agreements entered into to comply with | 4 | | this subsection (d) and shall file an accounting | 5 | | with the load forecast that must be filed with the | 6 | | Agency by July 15 of each year, in accordance with | 7 | | subsection (d) of Section 16-111.5 of the Public | 8 | | Utilities Act; | 9 | | (iii) provide that all costs associated with | 10 | | the initial clean coal facility will be | 11 | | periodically reported to the Federal Energy | 12 | | Regulatory Commission and to purchasers in | 13 | | accordance with applicable laws governing | 14 | | cost-based wholesale power contracts; | 15 | | (iv) permit the Illinois Power Agency to | 16 | | assume ownership of the initial clean coal | 17 | | facility, without monetary consideration and | 18 | | otherwise on reasonable terms acceptable to the | 19 | | Agency, if the Agency so requests no less than 3 | 20 | | years prior to the end of the stated contract | 21 | | term; | 22 | | (v) require the owner of the initial clean | 23 | | coal facility to provide documentation to the | 24 | | Commission each year, starting in the facility's | 25 | | first year of commercial operation, accurately | 26 | | reporting the quantity of carbon emissions from |
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| 1 | | the facility that have been captured and | 2 | | sequestered and report any quantities of carbon | 3 | | released from the site or sites at which carbon | 4 | | emissions were sequestered in prior years, based | 5 | | on continuous monitoring of such sites. If, in any | 6 | | year after the first year of commercial operation, | 7 | | the owner of the facility fails to demonstrate | 8 | | that the initial clean coal facility captured and | 9 | | sequestered at least 50% of the total carbon | 10 | | emissions that the facility would otherwise emit | 11 | | or that sequestration of emissions from prior | 12 | | years has failed, resulting in the release of | 13 | | carbon dioxide into the atmosphere, the owner of | 14 | | the facility must offset excess emissions. Any | 15 | | such carbon offsets must be permanent, additional, | 16 | | verifiable, real, located within the State of | 17 | | Illinois, and legally and practicably enforceable. | 18 | | The cost of such offsets for the facility that are | 19 | | not recoverable shall not exceed $15 million in | 20 | | any given year. No costs of any such purchases of | 21 | | carbon offsets may be recovered from a utility or | 22 | | its customers. All carbon offsets purchased for | 23 | | this purpose and any carbon emission credits | 24 | | associated with sequestration of carbon from the | 25 | | facility must be permanently retired. The initial | 26 | | clean coal facility shall not forfeit its |
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| 1 | | designation as a clean coal facility if the | 2 | | facility fails to fully comply with the applicable | 3 | | carbon sequestration requirements in any given | 4 | | year, provided the requisite offsets are | 5 | | purchased. However, the Attorney General, on | 6 | | behalf of the People of the State of Illinois, may | 7 | | specifically enforce the facility's sequestration | 8 | | requirement and the other terms of this contract | 9 | | provision. Compliance with the sequestration | 10 | | requirements and offset purchase requirements | 11 | | specified in paragraph (3) of this subsection (d) | 12 | | shall be reviewed annually by an independent | 13 | | expert retained by the owner of the initial clean | 14 | | coal facility, with the advance written approval | 15 | | of the Attorney General. The Commission may, in | 16 | | the course of the review specified in item (vii), | 17 | | reduce the allowable return on equity for the | 18 | | facility if the facility willfully fails to comply | 19 | | with the carbon capture and sequestration | 20 | | requirements set forth in this item (v); | 21 | | (vi) include limits on, and accordingly | 22 | | provide for modification of, the amount the | 23 | | utility is required to source under the sourcing | 24 | | agreement consistent with paragraph (2) of this | 25 | | subsection (d); | 26 | | (vii) require Commission review: (1) to |
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| 1 | | determine the justness, reasonableness, and | 2 | | prudence of the inputs to the formula referenced | 3 | | in subparagraphs (A)(i) through (A)(iii) of | 4 | | paragraph (3) of this subsection (d), prior to an | 5 | | adjustment in those inputs including, without | 6 | | limitation, the capital structure and return on | 7 | | equity, fuel costs, and other operations and | 8 | | maintenance costs and (2) to approve the costs to | 9 | | be passed through to customers under the sourcing | 10 | | agreement by which the utility satisfies its | 11 | | statutory obligations. Commission review shall | 12 | | occur no less than every 3 years, regardless of | 13 | | whether any adjustments have been proposed, and | 14 | | shall be completed within 9 months; | 15 | | (viii) limit the utility's obligation to such | 16 | | amount as the utility is allowed to recover | 17 | | through tariffs filed with the Commission, | 18 | | provided that neither the clean coal facility nor | 19 | | the utility waives any right to assert federal | 20 | | pre-emption or any other argument in response to a | 21 | | purported disallowance of recovery costs; | 22 | | (ix) limit the utility's or alternative retail | 23 | | electric supplier's obligation to incur any | 24 | | liability until such time as the facility is in | 25 | | commercial operation and generating power and | 26 | | energy and such power and energy is being |
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| 1 | | delivered to the facility busbar; | 2 | | (x) provide that the owner or owners of the | 3 | | initial clean coal facility, which is the | 4 | | counterparty to such sourcing agreement, shall | 5 | | have the right from time to time to elect whether | 6 | | the obligations of the utility party thereto shall | 7 | | be governed by the power purchase provisions or | 8 | | the contract for differences provisions; | 9 | | (xi) append documentation showing that the | 10 | | formula rate and contract, insofar as they relate | 11 | | to the power purchase provisions, have been | 12 | | approved by the Federal Energy Regulatory | 13 | | Commission pursuant to Section 205 of the Federal | 14 | | Power Act; | 15 | | (xii) provide that any changes to the terms of | 16 | | the contract, insofar as such changes relate to | 17 | | the power purchase provisions, are subject to | 18 | | review under the public interest standard applied | 19 | | by the Federal Energy Regulatory Commission | 20 | | pursuant to Sections 205 and 206 of the Federal | 21 | | Power Act; and | 22 | | (xiii) conform with customary lender | 23 | | requirements in power purchase agreements used as | 24 | | the basis for financing non-utility generators. | 25 | | (4) Effective date of sourcing agreements with the | 26 | | initial clean coal facility. Any proposed sourcing |
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| 1 | | agreement with the initial clean coal facility shall not | 2 | | become effective unless the following reports are prepared | 3 | | and submitted and authorizations and approvals obtained: | 4 | | (i) Facility cost report. The owner of the initial | 5 | | clean coal facility shall submit to the Commission, | 6 | | the Agency, and the General Assembly a front-end | 7 | | engineering and design study, a facility cost report, | 8 | | method of financing (including but not limited to | 9 | | structure and associated costs), and an operating and | 10 | | maintenance cost quote for the facility (collectively | 11 | | "facility cost report"), which shall be prepared in | 12 | | accordance with the requirements of this paragraph (4) | 13 | | of subsection (d) of this Section, and shall provide | 14 | | the Commission and the Agency access to the work | 15 | | papers, relied upon documents, and any other backup | 16 | | documentation related to the facility cost report. | 17 | | (ii) Commission report. Within 6 months following | 18 | | receipt of the facility cost report, the Commission, | 19 | | in consultation with the Agency, shall submit a report | 20 | | to the General Assembly setting forth its analysis of | 21 | | the facility cost report. Such report shall include, | 22 | | but not be limited to, a comparison of the costs | 23 | | associated with electricity generated by the initial | 24 | | clean coal facility to the costs associated with | 25 | | electricity generated by other types of generation | 26 | | facilities, an analysis of the rate impacts on |
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| 1 | | residential and small business customers over the life | 2 | | of the sourcing agreements, and an analysis of the | 3 | | likelihood that the initial clean coal facility will | 4 | | commence commercial operation by and be delivering | 5 | | power to the facility's busbar by 2016. To assist in | 6 | | the preparation of its report, the Commission, in | 7 | | consultation with the Agency, may hire one or more | 8 | | experts or consultants, the costs of which shall be | 9 | | paid for by the owner of the initial clean coal | 10 | | facility. The Commission and Agency may begin the | 11 | | process of selecting such experts or consultants prior | 12 | | to receipt of the facility cost report. | 13 | | (iii) General Assembly approval. The proposed | 14 | | sourcing agreements shall not take effect unless, | 15 | | based on the facility cost report and the Commission's | 16 | | report, the General Assembly enacts authorizing | 17 | | legislation approving (A) the projected price, stated | 18 | | in cents per kilowatthour, to be charged for | 19 | | electricity generated by the initial clean coal | 20 | | facility, (B) the projected impact on residential and | 21 | | small business customers' bills over the life of the | 22 | | sourcing agreements, and (C) the maximum allowable | 23 | | return on equity for the project; and | 24 | | (iv) Commission review. If the General Assembly | 25 | | enacts authorizing legislation pursuant to | 26 | | subparagraph (iii) approving a sourcing agreement, the |
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| 1 | | Commission shall, within 90 days of such enactment, | 2 | | complete a review of such sourcing agreement. During | 3 | | such time period, the Commission shall implement any | 4 | | directive of the General Assembly, resolve any | 5 | | disputes between the parties to the sourcing agreement | 6 | | concerning the terms of such agreement, approve the | 7 | | form of such agreement, and issue an order finding | 8 | | that the sourcing agreement is prudent and reasonable. | 9 | | The facility cost report shall be prepared as follows: | 10 | | (A) The facility cost report shall be prepared by | 11 | | duly licensed engineering and construction firms | 12 | | detailing the estimated capital costs payable to one | 13 | | or more contractors or suppliers for the engineering, | 14 | | procurement and construction of the components | 15 | | comprising the initial clean coal facility and the | 16 | | estimated costs of operation and maintenance of the | 17 | | facility. The facility cost report shall include: | 18 | | (i) an estimate of the capital cost of the | 19 | | core plant based on one or more front end | 20 | | engineering and design studies for the | 21 | | gasification island and related facilities. The | 22 | | core plant shall include all civil, structural, | 23 | | mechanical, electrical, control, and safety | 24 | | systems. | 25 | | (ii) an estimate of the capital cost of the | 26 | | balance of the plant, including any capital costs |
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| 1 | | associated with sequestration of carbon dioxide | 2 | | emissions and all interconnects and interfaces | 3 | | required to operate the facility, such as | 4 | | transmission of electricity, construction or | 5 | | backfeed power supply, pipelines to transport | 6 | | substitute natural gas or carbon dioxide, potable | 7 | | water supply, natural gas supply, water supply, | 8 | | water discharge, landfill, access roads, and coal | 9 | | delivery. | 10 | | The quoted construction costs shall be expressed | 11 | | in nominal dollars as of the date that the quote is | 12 | | prepared and shall include capitalized financing costs | 13 | | during construction,
taxes, insurance, and other | 14 | | owner's costs, and an assumed escalation in materials | 15 | | and labor beyond the date as of which the construction | 16 | | cost quote is expressed. | 17 | | (B) The front end engineering and design study for | 18 | | the gasification island and the cost study for the | 19 | | balance of plant shall include sufficient design work | 20 | | to permit quantification of major categories of | 21 | | materials, commodities and labor hours, and receipt of | 22 | | quotes from vendors of major equipment required to | 23 | | construct and operate the clean coal facility. | 24 | | (C) The facility cost report shall also include an | 25 | | operating and maintenance cost quote that will provide | 26 | | the estimated cost of delivered fuel, personnel, |
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| 1 | | maintenance contracts, chemicals, catalysts, | 2 | | consumables, spares, and other fixed and variable | 3 | | operations and maintenance costs. The delivered fuel | 4 | | cost estimate will be provided by a recognized third | 5 | | party expert or experts in the fuel and transportation | 6 | | industries. The balance of the operating and | 7 | | maintenance cost quote, excluding delivered fuel | 8 | | costs, will be developed based on the inputs provided | 9 | | by duly licensed engineering and construction firms | 10 | | performing the construction cost quote, potential | 11 | | vendors under long-term service agreements and plant | 12 | | operating agreements, or recognized third party plant | 13 | | operator or operators. | 14 | | The operating and maintenance cost quote | 15 | | (including the cost of the front end engineering and | 16 | | design study) shall be expressed in nominal dollars as | 17 | | of the date that the quote is prepared and shall | 18 | | include taxes, insurance, and other owner's costs, and | 19 | | an assumed escalation in materials and labor beyond | 20 | | the date as of which the operating and maintenance | 21 | | cost quote is expressed. | 22 | | (D) The facility cost report shall also include an | 23 | | analysis of the initial clean coal facility's ability | 24 | | to deliver power and energy into the applicable | 25 | | regional transmission organization markets and an | 26 | | analysis of the expected capacity factor for the |
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| 1 | | initial clean coal facility. | 2 | | (E) Amounts paid to third parties unrelated to the | 3 | | owner or owners of the initial clean coal facility to | 4 | | prepare the core plant construction cost quote, | 5 | | including the front end engineering and design study, | 6 | | and the operating and maintenance cost quote will be | 7 | | reimbursed through Coal Development Bonds. | 8 | | (5) Re-powering and retrofitting coal-fired power | 9 | | plants previously owned by Illinois utilities to qualify | 10 | | as clean coal facilities. During the 2009 procurement | 11 | | planning process and thereafter, the Agency and the | 12 | | Commission shall consider sourcing agreements covering | 13 | | electricity generated by power plants that were previously | 14 | | owned by Illinois utilities and that have been or will be | 15 | | converted into clean coal facilities, as defined by | 16 | | Section 1-10 of this Act. Pursuant to such procurement | 17 | | planning process, the owners of such facilities may | 18 | | propose to the Agency sourcing agreements with utilities | 19 | | and alternative retail electric suppliers required to | 20 | | comply with subsection (d) of this Section and item (5) of | 21 | | subsection (d) of Section 16-115 of the Public Utilities | 22 | | Act, covering electricity generated by such facilities. In | 23 | | the case of sourcing agreements that are power purchase | 24 | | agreements, the contract price for electricity sales shall | 25 | | be established on a cost of service basis. In the case of | 26 | | sourcing agreements that are contracts for differences, |
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| 1 | | the contract price from which the reference price is | 2 | | subtracted shall be established on a cost of service | 3 | | basis. The Agency and the Commission may approve any such | 4 | | utility sourcing agreements that do not exceed cost-based | 5 | | benchmarks developed by the procurement administrator, in | 6 | | consultation with the Commission staff, Agency staff and | 7 | | the procurement monitor, subject to Commission review and | 8 | | approval. The Commission shall have authority to inspect | 9 | | all books and records associated with these clean coal | 10 | | facilities during the term of any such contract. | 11 | | (6) Costs incurred under this subsection (d) or | 12 | | pursuant to a contract entered into under this subsection | 13 | | (d) shall be deemed prudently incurred and reasonable in | 14 | | amount and the electric utility shall be entitled to full | 15 | | cost recovery pursuant to the tariffs filed with the | 16 | | Commission. | 17 | | (d-5) Zero emission standard. | 18 | | (1) Beginning with the delivery year commencing on | 19 | | June 1, 2017, the Agency shall, for electric utilities | 20 | | that serve at least 100,000 retail customers in this | 21 | | State, procure contracts with zero emission facilities | 22 | | that are reasonably capable of generating cost-effective | 23 | | zero emission credits in an amount approximately equal to | 24 | | 16% of the actual amount of electricity delivered by each | 25 | | electric utility to retail customers in the State during | 26 | | calendar year 2014. For an electric utility serving fewer |
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| 1 | | than 100,000 retail customers in this State that | 2 | | requested, under Section 16-111.5 of the Public Utilities | 3 | | Act, that the Agency procure power and energy for all or a | 4 | | portion of the utility's Illinois load for the delivery | 5 | | year commencing June 1, 2016, the Agency shall procure | 6 | | contracts with zero emission facilities that are | 7 | | reasonably capable of generating cost-effective zero | 8 | | emission credits in an amount approximately equal to 16% | 9 | | of the portion of power and energy to be procured by the | 10 | | Agency for the utility. The duration of the contracts | 11 | | procured under this subsection (d-5) shall be for a term | 12 | | of 10 years ending May 31, 2027. The quantity of zero | 13 | | emission credits to be procured under the contracts shall | 14 | | be all of the zero emission credits generated by the zero | 15 | | emission facility in each delivery year; however, if the | 16 | | zero emission facility is owned by more than one entity, | 17 | | then the quantity of zero emission credits to be procured | 18 | | under the contracts shall be the amount of zero emission | 19 | | credits that are generated from the portion of the zero | 20 | | emission facility that is owned by the winning supplier. | 21 | | The 16% value identified in this paragraph (1) is the | 22 | | average of the percentage targets in subparagraph (B) of | 23 | | paragraph (1) of subsection (c) of this Section for the 5 | 24 | | delivery years beginning June 1, 2017. | 25 | | The procurement process shall be subject to the | 26 | | following provisions: |
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| 1 | | (A) Those zero emission facilities that intend to | 2 | | participate in the procurement shall submit to the | 3 | | Agency the following eligibility information for each | 4 | | zero emission facility on or before the date | 5 | | established by the Agency: | 6 | | (i) the in-service date and remaining useful | 7 | | life of the zero emission facility; | 8 | | (ii) the amount of power generated annually | 9 | | for each of the years 2005 through 2015, and the | 10 | | projected zero emission credits to be generated | 11 | | over the remaining useful life of the zero | 12 | | emission facility, which shall be used to | 13 | | determine the capability of each facility; | 14 | | (iii) the annual zero emission facility cost | 15 | | projections, expressed on a per megawatthour | 16 | | basis, over the next 6 delivery years, which shall | 17 | | include the following: operation and maintenance | 18 | | expenses; fully allocated overhead costs, which | 19 | | shall be allocated using the methodology developed | 20 | | by the Institute for Nuclear Power Operations; | 21 | | fuel expenditures; non-fuel capital expenditures; | 22 | | spent fuel expenditures; a return on working | 23 | | capital; the cost of operational and market risks | 24 | | that could be avoided by ceasing operation; and | 25 | | any other costs necessary for continued | 26 | | operations, provided that "necessary" means, for |
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| 1 | | purposes of this item (iii), that the costs could | 2 | | reasonably be avoided only by ceasing operations | 3 | | of the zero emission facility; and | 4 | | (iv) a commitment to continue operating, for | 5 | | the duration of the contract or contracts executed | 6 | | under the procurement held under this subsection | 7 | | (d-5), the zero emission facility that produces | 8 | | the zero emission credits to be procured in the | 9 | | procurement. | 10 | | The information described in item (iii) of this | 11 | | subparagraph (A) may be submitted on a confidential | 12 | | basis and shall be treated and maintained by the | 13 | | Agency, the procurement administrator, and the | 14 | | Commission as confidential and proprietary and exempt | 15 | | from disclosure under subparagraphs (a) and (g) of | 16 | | paragraph (1) of Section 7 of the Freedom of | 17 | | Information Act. The Office of Attorney General shall | 18 | | have access to, and maintain the confidentiality of, | 19 | | such information pursuant to Section 6.5 of the | 20 | | Attorney General Act. | 21 | | (B) The price for each zero emission credit | 22 | | procured under this subsection (d-5) for each delivery | 23 | | year shall be in an amount that equals the Social Cost | 24 | | of Carbon, expressed on a price per megawatthour | 25 | | basis. However, to ensure that the procurement remains | 26 | | affordable to retail customers in this State if |
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| 1 | | electricity prices increase, the price in an | 2 | | applicable delivery year shall be reduced below the | 3 | | Social Cost of Carbon by the amount ("Price | 4 | | Adjustment") by which the market price index for the | 5 | | applicable delivery year exceeds the baseline market | 6 | | price index for the consecutive 12-month period ending | 7 | | May 31, 2016. If the Price Adjustment is greater than | 8 | | or equal to the Social Cost of Carbon in an applicable | 9 | | delivery year, then no payments shall be due in that | 10 | | delivery year. The components of this calculation are | 11 | | defined as follows: | 12 | | (i) Social Cost of Carbon: The Social Cost of | 13 | | Carbon is $16.50 per megawatthour, which is based | 14 | | on the U.S. Interagency Working Group on Social | 15 | | Cost of Carbon's price in the August 2016 | 16 | | Technical Update using a 3% discount rate, | 17 | | adjusted for inflation for each year of the | 18 | | program. Beginning with the delivery year | 19 | | commencing June 1, 2023, the price per | 20 | | megawatthour shall increase by $1 per | 21 | | megawatthour, and continue to increase by an | 22 | | additional $1 per megawatthour each delivery year | 23 | | thereafter. | 24 | | (ii) Baseline market price index: The baseline | 25 | | market price index for the consecutive 12-month | 26 | | period ending May 31, 2016 is $31.40 per |
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| 1 | | megawatthour, which is based on the sum of (aa) | 2 | | the average day-ahead energy price across all | 3 | | hours of such 12-month period at the PJM | 4 | | Interconnection LLC Northern Illinois Hub, (bb) | 5 | | 50% multiplied by the Base Residual Auction, or | 6 | | its successor, capacity price for the rest of the | 7 | | RTO zone group determined by PJM Interconnection | 8 | | LLC, divided by 24 hours per day, and (cc) 50% | 9 | | multiplied by the Planning Resource Auction, or | 10 | | its successor, capacity price for Zone 4 | 11 | | determined by the Midcontinent Independent System | 12 | | Operator, Inc., divided by 24 hours per day. | 13 | | (iii) Market price index: The market price | 14 | | index for a delivery year shall be the sum of | 15 | | projected energy prices and projected capacity | 16 | | prices determined as follows: | 17 | | (aa) Projected energy prices: the | 18 | | projected energy prices for the applicable | 19 | | delivery year shall be calculated once for the | 20 | | year using the forward market price for the | 21 | | PJM Interconnection, LLC Northern Illinois | 22 | | Hub. The forward market price shall be | 23 | | calculated as follows: the energy forward | 24 | | prices for each month of the applicable | 25 | | delivery year averaged for each trade date | 26 | | during the calendar year immediately preceding |
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| 1 | | that delivery year to produce a single energy | 2 | | forward price for the delivery year. The | 3 | | forward market price calculation shall use | 4 | | data published by the Intercontinental | 5 | | Exchange, or its successor. | 6 | | (bb) Projected capacity prices: | 7 | | (I) For the delivery years commencing | 8 | | June 1, 2017, June 1, 2018, and June 1, | 9 | | 2019, the projected capacity price shall | 10 | | be equal to the sum of (1) 50% multiplied | 11 | | by the Base Residual Auction, or its | 12 | | successor, price for the rest of the RTO | 13 | | zone group as determined by PJM | 14 | | Interconnection LLC, divided by 24 hours | 15 | | per day and, (2) 50% multiplied by the | 16 | | resource auction price determined in the | 17 | | resource auction administered by the | 18 | | Midcontinent Independent System Operator, | 19 | | Inc., in which the largest percentage of | 20 | | load cleared for Local Resource Zone 4, | 21 | | divided by 24 hours per day, and where | 22 | | such price is determined by the | 23 | | Midcontinent Independent System Operator, | 24 | | Inc. | 25 | | (II) For the delivery year commencing | 26 | | June 1, 2020, and each year thereafter, |
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| 1 | | the projected capacity price shall be | 2 | | equal to the sum of (1) 50% multiplied by | 3 | | the Base Residual Auction, or its | 4 | | successor, price for the ComEd zone as | 5 | | determined by PJM Interconnection LLC, | 6 | | divided by 24 hours per day, and (2) 50% | 7 | | multiplied by the resource auction price | 8 | | determined in the resource auction | 9 | | administered by the Midcontinent | 10 | | Independent System Operator, Inc., in | 11 | | which the largest percentage of load | 12 | | cleared for Local Resource Zone 4, divided | 13 | | by 24 hours per day, and where such price | 14 | | is determined by the Midcontinent | 15 | | Independent System Operator, Inc. | 16 | | For purposes of this subsection (d-5): | 17 | | "Rest of the RTO" and "ComEd Zone" shall have | 18 | | the meaning ascribed to them by PJM | 19 | | Interconnection, LLC. | 20 | | "RTO" means regional transmission | 21 | | organization. | 22 | | (C) No later than 45 days after June 1, 2017 (the | 23 | | effective date of Public Act 99-906), the Agency shall | 24 | | publish its proposed zero emission standard | 25 | | procurement plan. The plan shall be consistent with | 26 | | the provisions of this paragraph (1) and shall provide |
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| 1 | | that winning bids shall be selected based on public | 2 | | interest criteria that include, but are not limited | 3 | | to, minimizing carbon dioxide emissions that result | 4 | | from electricity consumed in Illinois and minimizing | 5 | | sulfur dioxide, nitrogen oxide, and particulate matter | 6 | | emissions that adversely affect the citizens of this | 7 | | State. In particular, the selection of winning bids | 8 | | shall take into account the incremental environmental | 9 | | benefits resulting from the procurement, such as any | 10 | | existing environmental benefits that are preserved by | 11 | | the procurements held under Public Act 99-906 and | 12 | | would cease to exist if the procurements were not | 13 | | held, including the preservation of zero emission | 14 | | facilities. The plan shall also describe in detail how | 15 | | each public interest factor shall be considered and | 16 | | weighted in the bid selection process to ensure that | 17 | | the public interest criteria are applied to the | 18 | | procurement and given full effect. | 19 | | For purposes of developing the plan, the Agency | 20 | | shall consider any reports issued by a State agency, | 21 | | board, or commission under House Resolution 1146 of | 22 | | the 98th General Assembly and paragraph (4) of | 23 | | subsection (d) of this Section, as well as publicly | 24 | | available analyses and studies performed by or for | 25 | | regional transmission organizations that serve the | 26 | | State and their independent market monitors. |
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| 1 | | Upon publishing of the zero emission standard | 2 | | procurement plan, copies of the plan shall be posted | 3 | | and made publicly available on the Agency's website. | 4 | | All interested parties shall have 10 days following | 5 | | the date of posting to provide comment to the Agency on | 6 | | the plan. All comments shall be posted to the Agency's | 7 | | website. Following the end of the comment period, but | 8 | | no more than 60 days later than June 1, 2017 (the | 9 | | effective date of Public Act 99-906), the Agency shall | 10 | | revise the plan as necessary based on the comments | 11 | | received and file its zero emission standard | 12 | | procurement plan with the Commission. | 13 | | If the Commission determines that the plan will | 14 | | result in the procurement of cost-effective zero | 15 | | emission credits, then the Commission shall, after | 16 | | notice and hearing, but no later than 45 days after the | 17 | | Agency filed the plan, approve the plan or approve | 18 | | with modification. For purposes of this subsection | 19 | | (d-5), "cost effective" means the projected costs of | 20 | | procuring zero emission credits from zero emission | 21 | | facilities do not cause the limit stated in paragraph | 22 | | (2) of this subsection to be exceeded. | 23 | | (C-5) As part of the Commission's review and | 24 | | acceptance or rejection of the procurement results, | 25 | | the Commission shall, in its public notice of | 26 | | successful bidders: |
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| 1 | | (i) identify how the winning bids satisfy the | 2 | | public interest criteria described in subparagraph | 3 | | (C) of this paragraph (1) of minimizing carbon | 4 | | dioxide emissions that result from electricity | 5 | | consumed in Illinois and minimizing sulfur | 6 | | dioxide, nitrogen oxide, and particulate matter | 7 | | emissions that adversely affect the citizens of | 8 | | this State; | 9 | | (ii) specifically address how the selection of | 10 | | winning bids takes into account the incremental | 11 | | environmental benefits resulting from the | 12 | | procurement, including any existing environmental | 13 | | benefits that are preserved by the procurements | 14 | | held under Public Act 99-906 and would have ceased | 15 | | to exist if the procurements had not been held, | 16 | | such as the preservation of zero emission | 17 | | facilities; | 18 | | (iii) quantify the environmental benefit of | 19 | | preserving the resources identified in item (ii) | 20 | | of this subparagraph (C-5), including the | 21 | | following: | 22 | | (aa) the value of avoided greenhouse gas | 23 | | emissions measured as the product of the zero | 24 | | emission facilities' output over the contract | 25 | | term multiplied by the U.S. Environmental | 26 | | Protection Agency eGrid subregion carbon |
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| 1 | | dioxide emission rate and the U.S. Interagency | 2 | | Working Group on Social Cost of Carbon's price | 3 | | in the August 2016 Technical Update using a 3% | 4 | | discount rate, adjusted for inflation for each | 5 | | delivery year; and | 6 | | (bb) the costs of replacement with other | 7 | | zero carbon dioxide resources, including wind | 8 | | and photovoltaic, based upon the simple | 9 | | average of the following: | 10 | | (I) the price, or if there is more | 11 | | than one price, the average of the prices, | 12 | | paid for renewable energy credits from new | 13 | | utility-scale wind projects in the | 14 | | procurement events specified in item (i) | 15 | | of subparagraph (G) of paragraph (1) of | 16 | | subsection (c) of this Section; and | 17 | | (II) the price, or if there is more | 18 | | than one price, the average of the prices, | 19 | | paid for renewable energy credits from new | 20 | | utility-scale solar projects and | 21 | | brownfield site photovoltaic projects in | 22 | | the procurement events specified in item | 23 | | (ii) of subparagraph (G) of paragraph (1) | 24 | | of subsection (c) of this Section and, | 25 | | after January 1, 2015, renewable energy | 26 | | credits from photovoltaic distributed |
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| 1 | | generation projects in procurement events | 2 | | held under subsection (c) of this Section. | 3 | | Each utility shall enter into binding contractual | 4 | | arrangements with the winning suppliers. | 5 | | The procurement described in this subsection | 6 | | (d-5), including, but not limited to, the execution of | 7 | | all contracts procured, shall be completed no later | 8 | | than May 10, 2017. Based on the effective date of | 9 | | Public Act 99-906, the Agency and Commission may, as | 10 | | appropriate, modify the various dates and timelines | 11 | | under this subparagraph and subparagraphs (C) and (D) | 12 | | of this paragraph (1). The procurement and plan | 13 | | approval processes required by this subsection (d-5) | 14 | | shall be conducted in conjunction with the procurement | 15 | | and plan approval processes required by subsection (c) | 16 | | of this Section and Section 16-111.5 of the Public | 17 | | Utilities Act, to the extent practicable. | 18 | | Notwithstanding whether a procurement event is | 19 | | conducted under Section 16-111.5 of the Public | 20 | | Utilities Act, the Agency shall immediately initiate a | 21 | | procurement process on June 1, 2017 (the effective | 22 | | date of Public Act 99-906). | 23 | | (D) Following the procurement event described in | 24 | | this paragraph (1) and consistent with subparagraph | 25 | | (B) of this paragraph (1), the Agency shall calculate | 26 | | the payments to be made under each contract for the |
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| 1 | | next delivery year based on the market price index for | 2 | | that delivery year. The Agency shall publish the | 3 | | payment calculations no later than May 25, 2017 and | 4 | | every May 25 thereafter. | 5 | | (E) Notwithstanding the requirements of this | 6 | | subsection (d-5), the contracts executed under this | 7 | | subsection (d-5) shall provide that the zero emission | 8 | | facility may, as applicable, suspend or terminate | 9 | | performance under the contracts in the following | 10 | | instances: | 11 | | (i) A zero emission facility shall be excused | 12 | | from its performance under the contract for any | 13 | | cause beyond the control of the resource, | 14 | | including, but not restricted to, acts of God, | 15 | | flood, drought, earthquake, storm, fire, | 16 | | lightning, epidemic, war, riot, civil disturbance | 17 | | or disobedience, labor dispute, labor or material | 18 | | shortage, sabotage, acts of public enemy, | 19 | | explosions, orders, regulations or restrictions | 20 | | imposed by governmental, military, or lawfully | 21 | | established civilian authorities, which, in any of | 22 | | the foregoing cases, by exercise of commercially | 23 | | reasonable efforts the zero emission facility | 24 | | could not reasonably have been expected to avoid, | 25 | | and which, by the exercise of commercially | 26 | | reasonable efforts, it has been unable to |
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| 1 | | overcome. In such event, the zero emission | 2 | | facility shall be excused from performance for the | 3 | | duration of the event, including, but not limited | 4 | | to, delivery of zero emission credits, and no | 5 | | payment shall be due to the zero emission facility | 6 | | during the duration of the event. | 7 | | (ii) A zero emission facility shall be | 8 | | permitted to terminate the contract if legislation | 9 | | is enacted into law by the General Assembly that | 10 | | imposes or authorizes a new tax, special | 11 | | assessment, or fee on the generation of | 12 | | electricity, the ownership or leasehold of a | 13 | | generating unit, or the privilege or occupation of | 14 | | such generation, ownership, or leasehold of | 15 | | generation units by a zero emission facility. | 16 | | However, the provisions of this item (ii) do not | 17 | | apply to any generally applicable tax, special | 18 | | assessment or fee, or requirements imposed by | 19 | | federal law. | 20 | | (iii) A zero emission facility shall be | 21 | | permitted to terminate the contract in the event | 22 | | that the resource requires capital expenditures in | 23 | | excess of $40,000,000 that were neither known nor | 24 | | reasonably foreseeable at the time it executed the | 25 | | contract and that a prudent owner or operator of | 26 | | such resource would not undertake. |
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| 1 | | (iv) A zero emission facility shall be | 2 | | permitted to terminate the contract in the event | 3 | | the Nuclear Regulatory Commission terminates the | 4 | | resource's license. | 5 | | (F) If the zero emission facility elects to | 6 | | terminate a contract under subparagraph (E) of this | 7 | | paragraph (1), then the Commission shall reopen the | 8 | | docket in which the Commission approved the zero | 9 | | emission standard procurement plan under subparagraph | 10 | | (C) of this paragraph (1) and, after notice and | 11 | | hearing, enter an order acknowledging the contract | 12 | | termination election if such termination is consistent | 13 | | with the provisions of this subsection (d-5). | 14 | | (2) For purposes of this subsection (d-5), the amount | 15 | | paid per kilowatthour means the total amount paid for | 16 | | electric service expressed on a per kilowatthour basis. | 17 | | For purposes of this subsection (d-5), the total amount | 18 | | paid for electric service includes, without limitation, | 19 | | amounts paid for supply, transmission, distribution, | 20 | | surcharges, and add-on taxes. | 21 | | Notwithstanding the requirements of this subsection | 22 | | (d-5), the contracts executed under this subsection (d-5) | 23 | | shall provide that the total of zero emission credits | 24 | | procured under a procurement plan shall be subject to the | 25 | | limitations of this paragraph (2). For each delivery year, | 26 | | the contractual volume receiving payments in such year |
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| 1 | | shall be reduced for all retail customers based on the | 2 | | amount necessary to limit the net increase that delivery | 3 | | year to the costs of those credits included in the amounts | 4 | | paid by eligible retail customers in connection with | 5 | | electric service to no more than 1.65% of the amount paid | 6 | | per kilowatthour by eligible retail customers during the | 7 | | year ending May 31, 2009. The result of this computation | 8 | | shall apply to and reduce the procurement for all retail | 9 | | customers, and all those customers shall pay the same | 10 | | single, uniform cents per kilowatthour charge under | 11 | | subsection (k) of Section 16-108 of the Public Utilities | 12 | | Act. To arrive at a maximum dollar amount of zero emission | 13 | | credits to be paid for the particular delivery year, the | 14 | | resulting per kilowatthour amount shall be applied to the | 15 | | actual amount of kilowatthours of electricity delivered by | 16 | | the electric utility in the delivery year immediately | 17 | | prior to the procurement, to all retail customers in its | 18 | | service territory. Unpaid contractual volume for any | 19 | | delivery year shall be paid in any subsequent delivery | 20 | | year in which such payments can be made without exceeding | 21 | | the amount specified in this paragraph (2). The | 22 | | calculations required by this paragraph (2) shall be made | 23 | | only once for each procurement plan year. Once the | 24 | | determination as to the amount of zero emission credits to | 25 | | be paid is made based on the calculations set forth in this | 26 | | paragraph (2), no subsequent rate impact determinations |
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| 1 | | shall be made and no adjustments to those contract amounts | 2 | | shall be allowed. All costs incurred under those contracts | 3 | | and in implementing this subsection (d-5) shall be | 4 | | recovered by the electric utility as provided in this | 5 | | Section. | 6 | | No later than June 30, 2019, the Commission shall | 7 | | review the limitation on the amount of zero emission | 8 | | credits procured under this subsection (d-5) and report to | 9 | | the General Assembly its findings as to whether that | 10 | | limitation unduly constrains the procurement of | 11 | | cost-effective zero emission credits. | 12 | | (3) Six years after the execution of a contract under | 13 | | this subsection (d-5), the Agency shall determine whether | 14 | | the actual zero emission credit payments received by the | 15 | | supplier over the 6-year period exceed the Average ZEC | 16 | | Payment. In addition, at the end of the term of a contract | 17 | | executed under this subsection (d-5), or at the time, if | 18 | | any, a zero emission facility's contract is terminated | 19 | | under subparagraph (E) of paragraph (1) of this subsection | 20 | | (d-5), then the Agency shall determine whether the actual | 21 | | zero emission credit payments received by the supplier | 22 | | over the term of the contract exceed the Average ZEC | 23 | | Payment, after taking into account any amounts previously | 24 | | credited back to the utility under this paragraph (3). If | 25 | | the Agency determines that the actual zero emission credit | 26 | | payments received by the supplier over the relevant period |
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| 1 | | exceed the Average ZEC Payment, then the supplier shall | 2 | | credit the difference back to the utility. The amount of | 3 | | the credit shall be remitted to the applicable electric | 4 | | utility no later than 120 days after the Agency's | 5 | | determination, which the utility shall reflect as a credit | 6 | | on its retail customer bills as soon as practicable; | 7 | | however, the credit remitted to the utility shall not | 8 | | exceed the total amount of payments received by the | 9 | | facility under its contract. | 10 | | For purposes of this Section, the Average ZEC Payment | 11 | | shall be calculated by multiplying the quantity of zero | 12 | | emission credits delivered under the contract times the | 13 | | average contract price. The average contract price shall | 14 | | be determined by subtracting the amount calculated under | 15 | | subparagraph (B) of this paragraph (3) from the amount | 16 | | calculated under subparagraph (A) of this paragraph (3), | 17 | | as follows: | 18 | | (A) The average of the Social Cost of Carbon, as | 19 | | defined in subparagraph (B) of paragraph (1) of this | 20 | | subsection (d-5), during the term of the contract. | 21 | | (B) The average of the market price indices, as | 22 | | defined in subparagraph (B) of paragraph (1) of this | 23 | | subsection (d-5), during the term of the contract, | 24 | | minus the baseline market price index, as defined in | 25 | | subparagraph (B) of paragraph (1) of this subsection | 26 | | (d-5). |
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| 1 | | If the subtraction yields a negative number, then the | 2 | | Average ZEC Payment shall be zero. | 3 | | (4) Cost-effective zero emission credits procured from | 4 | | zero emission facilities shall satisfy the applicable | 5 | | definitions set forth in Section 1-10 of this Act. | 6 | | (5) The electric utility shall retire all zero | 7 | | emission credits used to comply with the requirements of | 8 | | this subsection (d-5). | 9 | | (6) Electric utilities shall be entitled to recover | 10 | | all of the costs associated with the procurement of zero | 11 | | emission credits through an automatic adjustment clause | 12 | | tariff in accordance with subsection (k) and (m) of | 13 | | Section 16-108 of the Public Utilities Act, and the | 14 | | contracts executed under this subsection (d-5) shall | 15 | | provide that the utilities' payment obligations under such | 16 | | contracts shall be reduced if an adjustment is required | 17 | | under subsection (m) of Section 16-108 of the Public | 18 | | Utilities Act. | 19 | | (7) This subsection (d-5) shall become inoperative on | 20 | | January 1, 2028. | 21 | | (e) The draft procurement plans are subject to public | 22 | | comment, as required by Section 16-111.5 of the Public | 23 | | Utilities Act. | 24 | | (f) The Agency shall submit the final procurement plan to | 25 | | the Commission. The Agency shall revise a procurement plan if | 26 | | the Commission determines that it does not meet the standards |
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| 1 | | set forth in Section 16-111.5 of the Public Utilities Act. | 2 | | (g) The Agency shall assess fees to each affected utility | 3 | | to recover the costs incurred in preparation of the annual | 4 | | procurement plan for the utility. | 5 | | (h) The Agency shall assess fees to each bidder to recover | 6 | | the costs incurred in connection with a competitive | 7 | | procurement process.
| 8 | | (i) A renewable energy credit, carbon emission credit, or | 9 | | zero emission credit can only be used once to comply with a | 10 | | single portfolio or other standard as set forth in subsection | 11 | | (c), subsection (d), or subsection (d-5) of this Section, | 12 | | respectively. A renewable energy credit, carbon emission | 13 | | credit, or zero emission credit cannot be used to satisfy the | 14 | | requirements of more than one standard. If more than one type | 15 | | of credit is issued for the same megawatt hour of energy, only | 16 | | one credit can be used to satisfy the requirements of a single | 17 | | standard. After such use, the credit must be retired together | 18 | | with any other credits issued for the same megawatt hour of | 19 | | energy. | 20 | | (Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19; | 21 | | 101-113, eff. 1-1-20 .) | 22 | | Section 90. The State Finance Act is amended by adding | 23 | | Section 5.935 as follows: | 24 | | (30 ILCS 105/5.935 new) |
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| 1 | | Sec. 5.935. The Rust Belt to Green Belt Fund. | 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.".
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