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Public Act 102-0662 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Article 5. Energy Transition | ||||
Section 5-1. Short title. This Article may be cited as the | ||||
Energy Transition Act. As used in this Article, "this Act" | ||||
refers to this Article. | ||||
Section 5-5. Definitions. As used in this Act: | ||||
"Apprentice" means a participant in an apprenticeship | ||||
program approved by and registered with the United States | ||||
Department of Labor's Bureau of Apprenticeship and Training. | ||||
"Apprenticeship program" means an apprenticeship and | ||||
training program approved by and registered with the United | ||||
States Department of Labor's Bureau of Apprenticeship and | ||||
Training. | ||||
"Black, indigenous, and people of color" or "BIPOC" means | ||||
people who are members of the groups described in | ||||
subparagraphs (a) through (e) of paragraph (A) of subsection | ||||
(1) of Section 2 of the Business Enterprise for Minorities, | ||||
Women, and Persons with Disabilities Act. | ||||
"Community-based organizations" means an organization | ||||
that: (1) provides employment, skill development, or related |
services to members of the community; (2) includes community | ||
colleges, nonprofits, and local governments; (3) has at least | ||
one main operating office in the community or region it | ||
serves; and (4) demonstrates relationships with local | ||
residents and other organizations serving the community. | ||
"Department" means the Department of Commerce and Economic | ||
Opportunity, unless the text solely specifies a particular | ||
Department. | ||
"Director" means the Director of Commerce and Economic | ||
Opportunity. | ||
"Equity eligible contractor" or "eligible contractor" | ||
means: | ||
(1) a business that is majority-owned by equity | ||
investment eligible individuals or persons who are or have | ||
been participants in the Clean Jobs Workforce Network | ||
Program, Clean Energy Contractor Incubator Program, | ||
Returning Residents Clean Jobs Training Program, Illinois | ||
Climate Works Preapprenticeship Program, or Clean Energy | ||
Primes Contractor Accelerator Program; | ||
(2) a nonprofit or cooperative that is | ||
majority-governed by equity investment eligible | ||
individuals or persons who are or have been participants | ||
in the Clean Jobs Workforce Network Program, Clean Energy | ||
Contractor Incubator Program, Returning Residents Clean | ||
Jobs Training Program, Illinois Climate Works | ||
Preapprenticeship Program, or Clean Energy Primes |
Contractor Accelerator Program; or | ||
(3) an equity investment eligible person or an | ||
individual who is or has been a participant in the Clean | ||
Jobs Workforce Network Program, Clean Energy Contractor | ||
Incubator Program, Returning Residents Clean Jobs Training | ||
Program, Illinois Climate Works Preapprenticeship Program, | ||
or Clean Energy Primes Contractor Accelerator Program and | ||
who is offering personal services as an independent | ||
contractor. | ||
"Equity focused populations" means (i) low-income persons; | ||
(ii) persons residing in equity investment eligible | ||
communities; (iii) persons who identify as black, indigenous, | ||
and people of color; (iv) formerly convicted persons; (v) | ||
persons who are or were in the child welfare system; (vi) | ||
energy workers; (vii) dependents of displaced energy workers; | ||
(viii) women; (ix) LGBTQ+, transgender, or gender | ||
nonconforming persons; (x) persons with disabilities; and (xi) | ||
members of any of these groups who are also youth. | ||
"Equity investment eligible community" and "eligible | ||
community" are synonymous and mean the geographic areas | ||
throughout Illinois which would most benefit from equitable | ||
investments by the State designed to combat discrimination and | ||
foster sustainable economic growth. Specifically, the eligible | ||
community means the following areas: | ||
(1) R3 Areas as established pursuant to Section 10-40 | ||
of the Cannabis Regulation and Tax Act, where residents |
have historically been excluded from economic | ||
opportunities, including opportunities in the energy | ||
sector; and | ||
(2) Environmental justice communities, as defined by | ||
the Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, but excluding racial and ethnic indicators, | ||
where residents have historically been subject to | ||
disproportionate burdens of pollution, including pollution | ||
from the energy sector. | ||
"Equity investment eligible person" and "eligible person" | ||
are synonymous and mean the persons who would most benefit | ||
from equitable investments by the State designed to combat | ||
discrimination and foster sustainable economic growth. | ||
Specifically, eligible persons means the following people: | ||
(1) persons whose primary residence is in an equity | ||
investment eligible community; | ||
(2) persons who are graduates of or currently enrolled | ||
in the foster care system; or | ||
(3) persons who were formerly incarcerated. | ||
"Climate Works Hub" means a nonprofit organization | ||
selected by the Department to act as a workforce intermediary | ||
and to participate in the Illinois Climate Works | ||
Preapprenticeship Program. To qualify as a Climate Works Hub, | ||
the organization must demonstrate the following: | ||
(1) the ability to effectively serve diverse and | ||
underrepresented populations, including by providing |
employment services to such populations; | ||
(2) experience with the construction and building | ||
trades; | ||
(3) the ability to recruit, prescreen, and provide | ||
preapprenticeship training to prepare workers for | ||
employment in the construction and building trades; and | ||
(4) a plan to provide the following: | ||
(A) preparatory classes; | ||
(B) workplace readiness skills, such as resume | ||
preparation and interviewing techniques; | ||
(C) strategies for overcoming barriers to entry | ||
and completion of an apprenticeship program; and | ||
(D) any prerequisites for acceptance into an | ||
apprenticeship program. | ||
Section 5-10. Findings. The General Assembly finds that | ||
the clean energy sector is a growing area of the economy in the | ||
State of Illinois. The General Assembly further finds that | ||
State investment in the clean energy economy in Illinois can | ||
be a vehicle for expanding equitable access to public health, | ||
safety, a cleaner environment, quality jobs, and economic | ||
opportunity. | ||
It is in the public policy interest of the State to ensure | ||
that Illinois residents from communities disproportionately | ||
impacted by climate change, communities facing coal plant or | ||
coal mine closures, and economically disadvantaged communities |
and individuals experiencing barriers to employment have | ||
access to State programs and good jobs and career | ||
opportunities in growing sectors of the State economy. To | ||
promote those interests in the growing clean energy sector, | ||
the General Assembly hereby creates this Act to increase | ||
access to and opportunities for education, training, and | ||
support services these individuals need to succeed in the | ||
labor market generally and the clean energy sector | ||
specifically. The General Assembly further finds that the | ||
programs included in this Act are essential to equitable, | ||
statewide access to quality training, jobs, and economic | ||
opportunities across the clean energy sector. | ||
Section 5-15. Regional Administrators. | ||
(a) Subject to appropriation, the Department shall select | ||
3 unique Regional Administrators: one Regional Administrator | ||
for coordination of the work in the Northern Illinois Program | ||
Delivery Area, one Regional Administrator for coordination of | ||
the work in the Central Illinois Program Delivery Area, and | ||
one Regional Administrator for coordination of the work in the | ||
Southern Illinois Program Delivery Area. | ||
(b) The Regional Administrators shall have strong | ||
capabilities, experience, and knowledge related to program | ||
development and fiscal management; cultural and language | ||
competency needed to be effective in their respective | ||
communities to be served; expertise in working in and with |
BIPOC and environmental justice communities; knowledge and | ||
experience in working with employer or sectoral partnerships, | ||
if applicable, in clean energy or related sectors; and | ||
awareness of industry trends and activities, workforce | ||
development best practices, regional workforce development | ||
needs, regional and industry employers, and community | ||
development. The Regional Administrators shall demonstrate a | ||
track record of strong partnerships with community-based | ||
organizations and labor organizations. | ||
(c) The Regional Administrators shall work together to | ||
administer the implementation of the Clean Jobs Workforce | ||
Network Program, the Illinois Climate Works Preapprenticeship | ||
Program, the Clean Energy Contractor Incubator Program, and | ||
the Returning Resident Clean Jobs Training Program. | ||
Section 5-20. Clean Jobs Workforce Network Program. | ||
(a) As used in this Section, "Program" means the Clean | ||
Jobs Workforce Network Program. | ||
(b) Subject to appropriation, the Department shall develop | ||
and, through Regional Administrators, administer the Clean | ||
Jobs Workforce Network Program to create a network of 13 | ||
Program delivery Hub Sites with program elements delivered by | ||
community-based organizations and their subcontractors | ||
geographically distributed across the State including at least | ||
one Hub Site located in or near each of the following areas: | ||
Chicago (South Side), Chicago (Southwest and West Sides), |
Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign, | ||
Danville, Decatur, Carbondale, East St. Louis, and Alton. | ||
(c) In admitting program participants, for each workforce | ||
Hub Site, the Regional Administrators shall: | ||
(1) in each Hub Site where the applicant pool allows: | ||
(A) dedicate at least one-third of program | ||
placements to applicants who reside in a geographic | ||
area that is impacted by economic and environmental | ||
challenges, defined as an area that is both (i) an R3 | ||
Area, as defined pursuant to Section 10-40 of the | ||
Cannabis Regulation and Tax Act, and (ii) an | ||
environmental justice community, as defined by the | ||
Illinois Power Agency, excluding any racial or ethnic | ||
indicators used by the agency unless and until the | ||
constitutional basis for their inclusion in | ||
determining program admissions is established. Among | ||
applicants that satisfy these criteria, preference | ||
shall be given to applicants who face barriers to | ||
employment, such as low educational attainment, prior | ||
involvement with the criminal legal system, and | ||
language barriers; and applicants that are graduates | ||
of or currently enrolled in the foster care system; | ||
and | ||
(B) dedicate at least two-thirds of program | ||
placements to applicants that satisfy the criteria in | ||
paragraph (1) or who reside in a geographic area that |
is impacted by economic or environmental challenges, | ||
defined as an area that is either (i) an R3 Area, as | ||
defined pursuant to Section 10-40 of the Cannabis | ||
Regulation and Tax Act, or (ii) an environmental | ||
justice community, as defined by the Illinois Power | ||
Agency, excluding any racial or ethnic indicators used | ||
by the agency unless and until the constitutional | ||
basis for their inclusion in determining program | ||
admissions is established. Among applicants that | ||
satisfy these criteria, preference shall be given to | ||
applicants who face barriers to employment, such as | ||
low educational attainment, prior involvement with the | ||
criminal legal system, and language barriers; and | ||
applicants that are graduates of or currently enrolled | ||
in the foster care system; and
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(2) prioritize the remaining program placements for: | ||
applicants who are displaced energy workers as defined in | ||
the Energy Community Reinvestment Act; persons who face | ||
barriers to employment, including low educational | ||
attainment, prior involvement with the criminal legal | ||
system, and language barriers; and applicants who are | ||
graduates of or currently enrolled in the foster care | ||
system, regardless of the applicant's area of residence. | ||
The Department and Regional Administrators shall protect | ||
the confidentiality of any personal information provided by | ||
program applicants regarding the applicant's status as a |
formerly incarcerated person or foster care recipient; | ||
however, the Department or Regional Administrators may publish | ||
aggregated data on the number of participants that were | ||
formerly incarcerated or foster care recipients so long as | ||
that publication protects the identities of those persons. | ||
Any person who applies to the program may elect not to | ||
share with the Department or Regional Administrators whether | ||
he or she is a graduate or currently enrolled in the foster | ||
care system or was formerly convicted. | ||
(d) Program elements for each Hub Site shall be provided | ||
by a community-based organization. The Department shall | ||
initially select a community-based organization in each Hub | ||
Site and shall subsequently select a community-based | ||
organization in each Hub Site every 3 years. Community-based | ||
organizations delivering program elements outlined in | ||
subsection (e) may provide all elements required or may | ||
subcontract to other entities for provision of portions of | ||
program elements, including, but not limited to, | ||
administrative soft and hard skills for program participants, | ||
delivery of specific training in the core curriculum, or | ||
provision of other support functions for program delivery | ||
compliance. | ||
(e) The Clean Jobs Workforce Hubs Network shall: | ||
(1) coordinate with Energy Transition Navigators: (i) | ||
to increase participation in the Clean Jobs Workforce | ||
Network Program and clean energy and related sector |
workforce and training opportunities; (ii) coordinate | ||
recruitment, communications, and ongoing engagement with | ||
potential employers, including, but not limited to, | ||
activities such as job matchmaking initiatives, hosting | ||
events such as job fairs, and collaborating with other Hub | ||
Sites to identify and implement best practices for | ||
employer engagement; and (iii) leverage community-based | ||
organizations, educational institutions, and | ||
community-based and labor-based training providers to | ||
ensure program-eligible individuals across the State have | ||
dedicated and sustained support to enter and complete the | ||
career pipeline for clean energy and related sector jobs; | ||
(2) develop formal partnerships, including formal | ||
sector partnerships between community-based organizations | ||
and entities that provide clean energy jobs, including | ||
businesses, nonprofit organizations, and worker-owned | ||
cooperatives, to ensure that Program participants have | ||
priority access to employment training and hiring | ||
opportunities; and | ||
(3) implement the Clean Jobs Curriculum to provide, | ||
including, but not limited to, training, certification | ||
preparation, job readiness, and skill development, | ||
including soft skills, math skills, technical skills, | ||
certification test preparation, and other development | ||
needed, to Program participants. | ||
(f) Funding for the Program is subject to appropriation |
from the Energy Transition Assistance Fund. | ||
(g) The Department shall require submission of quarterly | ||
reports, including program performance metrics by each Hub | ||
Site to the Regional Administrator of their Program Delivery | ||
Area. Program performance metrics include, but are not limited | ||
to: | ||
(1) demographic data, including racial, gender, | ||
residency in eligible communities, and geographic | ||
distribution data, on Program trainees entering and | ||
graduating the Program; | ||
(2) demographic data, including racial, gender, | ||
residency in eligible communities, and geographic | ||
distribution data, on Program trainees who are placed in | ||
employment, including the percentages of trainees by race, | ||
gender, and geographic categories in each individual job | ||
type or category and whether employment is union, | ||
nonunion, or nonunion via temporary agency; | ||
(3) trainee job acquisition and retention statistics, | ||
including the duration of employment (start and end dates | ||
of hires) by race, gender, and geography; | ||
(4) hourly wages, including hourly overtime pay rate, | ||
and benefits of trainees placed into employment by race, | ||
gender, and geography; | ||
(5) percentage of jobs by race, gender, and geography | ||
held by Program trainees or graduates that are full-time | ||
equivalent positions, meaning that the position held is |
full-time, direct, and permanent based on 2,080 hours | ||
worked per year (paid directly by the employer, whose | ||
activities, schedule, and manner of work the employer | ||
controls, and receives pay and benefits in the same manner | ||
as permanent employees); and | ||
(6) qualitative data consisting of open-ended | ||
reporting on pertinent issues, including, but not limited | ||
to, qualitative descriptions accompanying metrics or | ||
identifying key successes and challenges. | ||
(h) Within 3 years after the effective date of this Act, | ||
the Department shall select an independent evaluator to review | ||
and prepare a report on the performance of the Program and | ||
Regional Administrators. | ||
Section 5-25. Clean Jobs Curriculum. | ||
(a) As used in this Section, "clean energy jobs", subject | ||
to administrative rules, means jobs in the solar energy, wind | ||
energy, energy efficiency, energy storage, solar thermal, | ||
green hydrogen, geothermal, electric vehicle industries, other | ||
renewable energy industries, industries achieving emission | ||
reductions, and other related sectors including related | ||
industries that manufacture, develop, build, maintain, or | ||
provide ancillary services to renewable energy resources or | ||
energy efficiency products or services, including the | ||
manufacture and installation of healthier building materials | ||
that contain fewer hazardous chemicals. "Clean energy jobs" |
includes administrative, sales, other support functions within | ||
these industries and other related sector industries. | ||
(b) The Department shall convene a comprehensive | ||
stakeholder process that includes representatives from the | ||
State Board of Education, the Illinois Community College | ||
Board, the Department of Labor, community-based organizations, | ||
workforce development providers, labor unions, building | ||
trades, educational institutions, residents of BIPOC and | ||
low-income communities, residents of environmental justice | ||
communities, clean energy businesses, nonprofit organizations, | ||
worker-owned cooperatives, other groups that provide clean | ||
energy jobs opportunities, groups that provide construction | ||
and building trades job opportunities, and other participants | ||
to identify the career pathways and training curriculum needed | ||
for participants to be skilled, work ready, and able to enter | ||
clean energy jobs. The curriculum shall: | ||
(1) identify the core training curricular competency | ||
areas needed to prepare workers to enter clean energy and | ||
related sector jobs; | ||
(2) identify a set of required core cross-training | ||
competencies provided in each training area for clean | ||
energy jobs with the goal of enabling any trainee to | ||
receive a standard set of skills common to multiple | ||
training areas that would provide a foundation for | ||
pursuing a career composed of multiple clean energy job | ||
types; |
(3) include approaches to integrate broad occupational | ||
training to provide career entry into the general | ||
construction and building trades sector and any remedial | ||
education and work readiness support necessary to achieve | ||
educational and professional eligibility thresholds; and | ||
(4) identify on-the-job training formats, where | ||
relevant, and identify suggested trainer certification | ||
standards, where relevant. | ||
(c) The Department shall publish a report that includes | ||
the findings, recommendations, and core curriculum identified | ||
by the stakeholder group and shall post a copy of the report on | ||
its public website. The Department shall convene the process | ||
described to update and modify the recommended curriculum | ||
every 3 years to ensure the curriculum contents are current to | ||
the evolving clean energy industries, practices, and | ||
technologies. | ||
(d) Organizations that receive funding to provide training | ||
under the Clean Jobs Workforce Network Program, including, but | ||
not limited to, community-based and labor-based training | ||
providers, and educational institutions must use the core | ||
curriculum that is developed under this Section. | ||
Section 5-30. Energy Transition Barrier Reduction Program. | ||
(a) As used in this Section, "Program" means the Energy | ||
Transition Barrier Reduction Program. | ||
(b) Subject to appropriation, the Department shall create |
and administer an Energy Transition Barrier Reduction Program. | ||
The Program shall be used to provide supportive services for | ||
individuals impacted by the energy transition. Services | ||
allowed are intended to help eligible individuals overcome | ||
financial and other barriers to participation in the Clean | ||
Jobs Workforce Network Program and the Illinois Climate Works | ||
Preapprenticeship Program. | ||
(c) The Program shall be available to individuals eligible | ||
for participation in the Clean Jobs Workforce Network Program | ||
or Illinois Climate Works Preapprenticeship Program. | ||
(d) The Department shall determine appropriate allowable | ||
program costs, elements, and financial supports to reduce | ||
barriers to successful participation in the Clean Jobs | ||
Workforce Program and the Illinois Climate Works | ||
Preapprenticeship Program for individuals eligible for these | ||
programs. | ||
(e) Community-based organizations and other nonprofits | ||
selected by the Department shall provide supportive services | ||
described in this Section to eligible individuals | ||
participating in the Clean Jobs Workforce Network Program and | ||
Illinois Climate Works Preapprenticeship Program. | ||
(f) The community-based organizations that provide support | ||
services under this Section shall coordinate with the Energy | ||
Transition Navigators to ensure eligible individuals have | ||
access to these services. | ||
(g) Funding for the Program is subject to appropriation |
from the Energy Transition Assistance Fund. | ||
Section 5-35. Energy Transition Navigators. | ||
(a) As used in this Section: | ||
"Community-based provider" means a not-for-profit | ||
organization that has a history of serving low-wage or | ||
low-skilled workers or individuals from economically | ||
disadvantaged communities. | ||
"Economically disadvantaged community" means areas of one | ||
or more census tracts where the average household income does | ||
not exceed 80% of the area median income. | ||
(b) In order to engage eligible individuals to participate | ||
in the Clean Jobs Workforce Network Program, the Illinois | ||
Climate Works Preapprenticeship Program, Returning Residents | ||
Clean Jobs Program, Clean Energy Contractor Incubator Program, | ||
and Clean Energy Primes Contractor Accelerator Program and | ||
utilize the services offered under the Energy Transition | ||
Barrier Reduction Program, the Department shall, subject to | ||
appropriation, contract with community-based providers to | ||
serve as Energy Transition Navigators. Energy Transition | ||
Navigators shall provide education, outreach, and recruitment | ||
services to equity focused populations, prioritizing | ||
individuals eligible for the Clean Jobs Workforce Network | ||
Program or Illinois Climate Works Preapprenticeship Program, | ||
to make sure they are aware of and engaged in the statewide and | ||
local workforce development systems. Additional strategies may |
include, but are not limited to, recruitment activities and | ||
events. | ||
(c) For members of equity focused populations, | ||
prioritizing individuals eligible for the Clean Jobs Workforce | ||
Network Program or Illinois Climate Works Preapprenticeship | ||
Program, who may be interested in entrepreneurial pursuits, | ||
Energy Transition Navigators may connect these individuals | ||
with their area Small Business Development Center, Procurement | ||
Technical Assistance Centers, or economic development | ||
organization to engage in services, including, but not limited | ||
to, business consulting, business planning, regulatory | ||
compliance, marketing, training, accessing capital, government | ||
bid, and certification assistance. | ||
(d) Energy Transition Navigators shall engage equity | ||
focused populations, prioritizing individuals eligible for the | ||
Clean Jobs Workforce Network Program or Illinois Climate Works | ||
Preapprenticeship Program, organizations working with these | ||
populations, local workforce innovation boards, and other | ||
relevant stakeholders to coordinate outreach initiatives to | ||
promote information regarding programs and services offered | ||
under the Clean Jobs Workforce Network Program, the Illinois | ||
Climate Works Preapprenticeship Program, and the Energy | ||
Transition Barrier Reduction Program. Energy Transition | ||
Navigators shall provide support where reasonable to | ||
individuals and entities applying for these services and | ||
programs. |
(e) Community education, outreach, and recruitment | ||
regarding the Clean Jobs Workforce Network Program, the | ||
Illinois Climate Works Preapprenticeship Program, and Energy | ||
Transition Barrier Reduction Program shall be targeted to the | ||
equity focused populations, prioritizing individuals eligible | ||
for the Clean Jobs Workforce Network Program or Illinois | ||
Climate Works Preapprenticeship Program. | ||
(f) Community-based providers shall partner with | ||
educational institutions or organizations working with equity | ||
focused populations, local employers, labor unions, and others | ||
to identify members of equity focused populations in eligible | ||
communities who are unable to advance in their careers due to | ||
inadequate skills. Community-based providers shall provide | ||
information and consultation to equity focused populations, | ||
prioritizing individuals eligible for the Clean Jobs Workforce | ||
Network Program or Illinois Climate Works Preapprenticeship | ||
Program, on various educational opportunities and supportive | ||
services available to them. | ||
(g) Community-based providers shall establish partnerships | ||
with employers, educational institutions, local economic | ||
development organizations, environmental justice | ||
organizations, trades groups, labor unions, and entities that | ||
provide jobs, including businesses and other nonprofit | ||
organizations, to target the skill needs of local industry. | ||
The community-based provider shall work with local workforce | ||
innovation boards and other relevant partners to develop skill |
curriculum and career pathway support for disadvantaged | ||
individuals in equity focused populations, prioritizing | ||
individuals eligible for the Clean Jobs Workforce Network | ||
Program or Illinois Climate Works Preapprenticeship Program, | ||
that meets local employers' needs and establishes job | ||
placement opportunities after training. | ||
(h) Funding for the Program is subject to appropriation | ||
from the Energy Transition Assistance Fund. Priority in | ||
awarding grants under this Section will be given to | ||
organizations that also have experience serving populations | ||
impacted by climate change. | ||
(i) Each community-based organization that receives | ||
funding from the Department as an Energy Transition Navigator | ||
shall provide an annual report to the Department by April 1 of | ||
each calendar year. The annual report shall include the | ||
following information: | ||
(1) a description of the community-based | ||
organization's recruitment, screening, and training | ||
efforts; | ||
(2) the number of individuals who apply to, | ||
participate in, and complete programs offered through the | ||
Energy Transition Workforce Program, broken down by race, | ||
gender, age, and location; and | ||
(3) any other information deemed necessary by the | ||
Department. |
Section 5-40. Illinois Climate Works Preapprenticeship | ||
Program. | ||
(a) Subject to appropriation, the Department shall | ||
develop, and through Regional Administrators administer, the | ||
Illinois Climate Works Preapprenticeship Program. The goal of | ||
the Illinois Climate Works Preapprenticeship Program is to | ||
create a network of hubs throughout the State that will | ||
recruit, prescreen, and provide preapprenticeship skills | ||
training, for which participants may attend free of charge and | ||
receive a stipend, to create a qualified, diverse pipeline of | ||
workers who are prepared for careers in the construction and | ||
building trades and clean energy jobs opportunities therein. | ||
Upon completion of the Illinois Climate Works | ||
Preapprenticeship Program, the candidates will be connected to | ||
and prepared to successfully complete an apprenticeship | ||
program. | ||
(b) Each Climate Works Hub that receives funding from the | ||
Energy Transition Assistance Fund shall provide an annual | ||
report to the Illinois Works Review Panel by April 1 of each | ||
calendar year. The annual report shall include the following | ||
information: | ||
(1) a description of the Climate Works Hub's | ||
recruitment, screening, and training efforts, including a | ||
description of training related to construction and | ||
building trades opportunities in clean energy jobs; | ||
(2) the number of individuals who apply to, |
participate in, and complete the Climate Works Hub's | ||
program, broken down by race, gender, age, and veteran | ||
status; | ||
(3) the number of the individuals referenced in | ||
paragraph (2) of this subsection who are initially | ||
accepted and placed into apprenticeship programs in the | ||
construction and building trades; and | ||
(4) the number of individuals referenced in paragraph | ||
(2) of this subsection who remain in apprenticeship | ||
programs in the construction and building trades or have | ||
become journeymen one calendar year after their placement, | ||
as referenced in paragraph (3) of this subsection. | ||
(c) Subject to appropriation, the Department shall provide | ||
funding to 3 Climate Works Hubs throughout the State, | ||
including one to the Illinois Department of Transportation | ||
Region 1, one to the Illinois Department of Transportation | ||
Regions 2 and 3, and one to the Illinois Department of | ||
Transportation Regions 4 and 5. The Department shall initially | ||
select a community-based provider in each region and shall | ||
subsequently select a community-based provider in each region | ||
every 3 years. | ||
(d) The Climate Works Hubs shall recruit, prescreen, and | ||
provide preapprenticeship training to equity investment | ||
eligible persons. This training shall include information | ||
related to opportunities and certifications relevant to clean | ||
energy jobs in the construction and building trades. |
(e) Funding for the Program is subject to appropriation | ||
from the Energy Transition Assistance Fund. | ||
(f) The Department shall adopt any rules deemed necessary | ||
to implement this Section. | ||
Section 5-45. Clean Energy Contractor Incubator Program.
| ||
(a) As used in this Section, "community-based | ||
organization" means a nonprofit organization, including an | ||
accredited public college or university that: | ||
(1) has a history of providing business-related | ||
assistance and knowledge to help entrepreneurs start, run, | ||
and grow their businesses; | ||
(2) has knowledge of construction and clean energy | ||
trades; | ||
(3) demonstrates relationships with local residents | ||
and other organizations serving the community; and | ||
(4) demonstrates the ability to effectively serve | ||
diverse and underrepresented populations. | ||
(b) Subject to appropriation, the Department shall | ||
develop, and through the Regional Administrators, administer | ||
the Clean Energy Contractor Incubator Program ("Program") to | ||
create a network of 13 Program delivery Hub Sites with program | ||
elements delivered by community-based organizations and their | ||
subcontractors geographically distributed across the State, | ||
including at least one Hub Site located in or near each of the | ||
following areas: Chicago (South Side), Chicago (Southwest and |
West Sides), Waukegan, Rockford, Aurora, Joliet, Peoria, | ||
Champaign, Danville, Decatur, Carbondale, East St. Louis, and | ||
Alton.
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(c) In admitting program participants, for each Contractor | ||
Incubator Hub Site the Regional Administrators shall:
| ||
(1) in each Hub Site where the applicant pool allows: | ||
(A) dedicate at least one-third of program | ||
placements to the owners of clean energy contractor | ||
businesses and nonprofits who reside in a geographic | ||
area that is impacted by economic and environmental | ||
challenges, defined as an area that is both (i) an R3 | ||
Area, as defined pursuant to Section 10-40 of the | ||
Cannabis Regulation and Tax Act, and (ii) an | ||
environmental justice community, as defined by the | ||
Illinois Power Agency, excluding any racial or ethnic | ||
indicators used by the agency unless and until the | ||
constitutional basis for their inclusion in | ||
determining program admissions is established. Among | ||
applicants that satisfy these criteria, preference | ||
shall be given to applicants who face barriers to | ||
employment, such as low educational attainment, prior | ||
involvement with the criminal legal system, and | ||
language barriers; and applicants that are graduates | ||
of or currently enrolled in the foster care system; | ||
and | ||
(B) dedicate at least two-thirds of program |
placements to the owners of clean energy contractor | ||
businesses and nonprofits that satisfy the criteria in | ||
paragraph (1) or who reside in eligible communities. | ||
Among applicants who live in eligible communities, | ||
preference shall be given to applicants who face | ||
barriers to employment, such as low educational | ||
attainment, prior involvement with the criminal legal | ||
system, and language barriers; and applicants that are | ||
graduates of or currently enrolled in the foster care | ||
system; and
| ||
(2) prioritize the remaining program placements for: | ||
applicants who are displaced energy workers as defined in | ||
the Energy Community Reinvestment Act; persons who face | ||
barriers to employment, including low educational | ||
attainment, prior involvement with the criminal legal | ||
system, and language barriers; and applicants who are | ||
graduates of or currently enrolled in the foster care | ||
system, regardless of the applicants' area of residence. | ||
Consideration shall also be given to any current or past | ||
participant in the Clean Jobs Workforce Network Program, | ||
Illinois Climate Works Preapprenticeship Program, or Returning | ||
Residents Clean Energy Jobs Training Program. | ||
The Department and Regional Administrators shall protect | ||
the confidentiality of any personal information provided by | ||
program applicants regarding the applicant's status as a | ||
formerly incarcerated person or foster care recipient; |
however, the Department or Regional Administrators may publish | ||
aggregated data on the number of participants that were | ||
formerly incarcerated or foster care recipients so long as | ||
that publication protects the identities of those persons.
| ||
Any person who applies to the program may elect not to | ||
share with the Department or Regional Administrators whether | ||
he or she is a graduate or currently enrolled in the foster | ||
care system or was formerly convicted.
| ||
(d) Program elements at each Hub Site shall be provided by | ||
a local community-based organization. The Department shall | ||
initially select a community-based organization in each Hub | ||
Site and shall subsequently select a community-based | ||
organization in each Hub Site every 3 years. Community-based | ||
organizations delivering program elements outlined in | ||
subsection (e) may provide all elements required or may | ||
subcontract to other entities for provision of portions of | ||
program elements, including, but not limited to, | ||
administrative soft and hard skills for program participants, | ||
delivery of specific training in the core curriculum, or | ||
provision of other support functions for program delivery | ||
compliance.
| ||
(e) The Clean Energy Contractor Incubator Program shall:
| ||
(1) provide access to low-cost capital for small clean | ||
energy businesses and contractors;
| ||
(2) provide support for obtaining financial assurance, | ||
including, but not limited to: bonding; back office |
services; insurance, permits, training and certifications; | ||
business planning; and low-interest loans;
| ||
(3) train, mentor, and provide other support needed to | ||
allow participant contractors to: (i) build their | ||
businesses and connect to specific projects, (ii) register | ||
as approved vendors, (iii) engage in approved vendor | ||
subcontracting and qualified installer opportunities, (iv) | ||
develop partnering and networking skills, (v) compete for | ||
capital and other resources, and (vi) execute clean | ||
energy-related project installations and subcontracts;
| ||
(4) ensure that participant contractors, community | ||
partners, and potential contractor clients are aware of | ||
and engaged in the Program;
| ||
(5) connect participant contractors with the | ||
Department of Labor for resources, training, and technical | ||
support on prevailing wage compliance; | ||
(6) provide recruitment and ongoing engagement with | ||
entities that hire contractors and subcontractors, | ||
programs providing renewable energy resource-related | ||
projects, incentive programs, and approved vendor and | ||
qualified installer opportunities, including, but not | ||
limited to, activities such as matchmaking, events, and | ||
collaborating with other Hub Sites.
| ||
(f) Funding for the Program and independent evaluations as | ||
described in subsection (h) are subject to appropriation from | ||
the Energy Transition Assistance Fund.
|
(g) The Department shall require submission of quarterly | ||
reports including program performance metrics by each Hub Site | ||
to the Regional Administrator of their Program Delivery Area. | ||
Program performance metrics include, but are not limited to:
| ||
(1) demographic data including: race, gender, | ||
geographic location, R3 residency, Environmental Justice | ||
Community residency, foster care system participation, and | ||
justice-involvement for the owners of contractors | ||
applying, accepted into, and graduating from the Program;
| ||
(2) the number of projects completed by participant | ||
contractors, alone or in partnership, by race, gender, | ||
geographic location, R3 residency, Environmental Justice | ||
Community residency, foster care system participation, and | ||
justice-involvement for the owners of contractors;
| ||
(3) the number of partnerships with participant | ||
contractors that are expected to result in contracts for | ||
work by the participant contractor, by race, gender, | ||
geographic location, R3 residency, Environmental Justice | ||
Community residency, foster care system participation, and | ||
justice-involvement for the owners of contractors;
| ||
(4) changes in participant contractors' business | ||
revenue, by race, gender, geographic location, R3 | ||
residency, Environmental Justice Community residency, | ||
foster care system participation, and justice-involvement | ||
for the owners of contractors;
| ||
(5) the number of new hires by participant |
contractors, by race, gender, geographic location, R3 | ||
residency, Environmental Justice Community residency, | ||
foster care system participation, and justice-involvement;
| ||
(6) demographic data, including race, gender, | ||
geographic location, R3 residency, Environmental Justice | ||
Community residency, foster care system participation, and | ||
justice-involvement, and average wage data, for new hires | ||
by participant contractors;
| ||
(7) certifications held by participant contractors, | ||
and number of participants holding each certification, | ||
including, but not limited to, registration under the | ||
Business Enterprise for Minorities, Women, and Persons | ||
with Disabilities Act program and other programs intended | ||
to certify BIPOC entities;
| ||
(8) the number of Program sessions attended by | ||
participant contractors, aggregated by race; and
| ||
(9) indicators relevant for assessing the general | ||
financial health of participant contractors.
| ||
(h) Within 3 years after the effective date of this Act, | ||
the Department shall select an independent evaluator to review | ||
and prepare a report on the performance of the Program and | ||
Regional Administrators. The report shall be posted publicly.
| ||
Section 5-50. Returning Residents Clean Jobs Training | ||
Program.
| ||
(a) Subject to appropriation, the Department shall develop |
and, in coordination with the Department of Corrections, | ||
administer the Returning Residents Clean Jobs Training | ||
Program.
| ||
(b) As used in this Section:
| ||
"Commitment" means a judicially determined placement in | ||
the custody of the Department of Corrections on the basis of a | ||
conviction.
| ||
"Committed person" means a person committed to the | ||
Department of Corrections.
| ||
"Community-based organization" means an organization that: | ||
(1) provides employment, skill development, or related | ||
services to members of the community; | ||
(2) includes community colleges, nonprofits, and local | ||
governments; and | ||
(3) has a history of serving committed persons or | ||
justice-involved persons.
| ||
"Correctional institution or facility" means a Department | ||
of Corrections building or part of a Department of Corrections | ||
building where committed persons are detained in a secure | ||
manner.
| ||
"Department" means the Department of Commerce and Economic | ||
Opportunity.
| ||
"Discharge" means the end of a sentence or the final | ||
termination of a detainee's physical commitment to and | ||
confinement in the Department of Corrections.
| ||
"Program" means the Returning Residents Clean Jobs |
Training Program. | ||
"Program Administrator" means, for each Program Delivery | ||
Area, the administrator selected by the Department pursuant to | ||
paragraph (1) of subsection (g) of this Section.
| ||
"Returning resident" means any United States resident who | ||
is: (i) 17 years of age or older; (ii) in the physical custody | ||
of the Department of Corrections; and (iii) scheduled to be | ||
re-entering society within 36 months.
| ||
(c) Returning Residents Clean Jobs Training Program.
| ||
(1) Connected services. The Program shall prepare | ||
graduates to work in the clean energy and related sector | ||
jobs as defined in Section 5-25.
| ||
(2) Recruitment of participants. The Program | ||
Administrators shall, in coordination with the Department | ||
of Commerce and Economic Opportunity, educate committed | ||
persons in both men's and women's correctional | ||
institutions and facilities on the benefits of the Program | ||
and how to enroll in the Program.
| ||
(3) Connection to employers. The Program | ||
Administrators shall, with assistance from the Regional | ||
Administrators, connect Program graduates with potential | ||
employers in the clean energy jobs industries.
| ||
(4) Graduation. Participants who successfully complete | ||
all assignments in the Program shall receive a Program | ||
graduation certificate and any certifications or | ||
credentials earned in the process.
|
(5) Eligibility. A committed person in a correctional | ||
institution or facility is eligible if the committed | ||
person:
| ||
(i) is within 36 months of expected release;
| ||
(ii) consented in writing to participation in the | ||
Program; | ||
(iii) meets all Program and testing requirements;
| ||
(iv) is willing to follow all Program | ||
requirements;
and | ||
(v) does not pose a safety and security risk for | ||
the facility or any person.
| ||
The Department of Corrections shall have sole discretion | ||
to determine whether a committed person's participation in the | ||
Program poses a safety and security risk for the facility or | ||
any person. The Department of Corrections shall determine | ||
whether a committed person is eligible to participate in the | ||
Program.
| ||
(d) Program entry and testing requirements. To enter the | ||
Returning Residents Clean Jobs Training Program, committed | ||
persons must complete a simple application, undergo an | ||
interview and coaching session, and must score a minimum of a | ||
6.0 or above on the Test for Adult Basic Education or the | ||
Illinois Community College Board approved assessment for | ||
determining basic skills deficiency. The Returning Residents | ||
Clean Jobs Training Program shall include a one-week | ||
pre-program orientation that ensures the candidates understand |
and are interested in continuing the Program. Candidates that | ||
successfully complete the orientation may continue to the full | ||
Program.
| ||
(d-5) Training. Once approved for the new program, | ||
candidates must receive essential employability skills | ||
training as part of vocational or occupational training. | ||
Training must lead to certifications or credentials that | ||
prepare candidates for employment. | ||
(e) Removal from the Program. The Department of | ||
Corrections may remove a committed person enrolled in the | ||
Program for violation of institutional rules; failure to | ||
participate or meet expectations of the Program; failure of a | ||
drug test; disruptive behavior; or for reasons of safety, | ||
security, and order of the facility.
| ||
(f) Drug testing. A clean drug test is required to | ||
complete the Returning Residents Clean Jobs Training Program. | ||
A drug test shall be administered at least once prior to | ||
graduation. The Department of Corrections shall be responsible | ||
for the drug testing of applicants.
| ||
(g) Curriculum.
| ||
(1) The Department of Commerce and Economic | ||
Opportunity shall design a curriculum for the Program that | ||
is as similar as practical to the Clean Jobs Curriculum | ||
and meets in-facility requirements. The curriculum shall | ||
focus on preparing graduates for employment in the clean | ||
energy and related sector jobs as defined in Section 5-25. |
The Program shall include structured hands-on activities | ||
in correctional institutions or facilities, including | ||
classroom spaces and outdoor spaces, to instruct | ||
participants in the core curriculum established in this | ||
Act. The Department and the Department of Corrections | ||
shall work together to ensure all curriculum elements may | ||
be available within Department of Corrections facilities.
| ||
(2) The Program Administrators shall collaborate to | ||
create and publish a guidebook that allows for the | ||
implementation of the curriculum and provides information | ||
on all necessary and useful resources for Program | ||
participants and graduates.
| ||
(h) Program administration.
| ||
(1) The Department of Commerce and Economic | ||
Opportunity shall select a Program Administrator for each | ||
Program Delivery Area to administer and coordinate the | ||
Program. The Program Administrators shall have strong | ||
capabilities, experience, and knowledge related to program | ||
development and economic management; cultural and language | ||
competency needed to be effective in the communities to be | ||
served; committed persons or justice-involved persons; | ||
knowledge and experience in working with providers of | ||
clean energy jobs; and awareness of clean energy and | ||
related sector trends and activities, workforce | ||
development best practices, regional workforce development | ||
needs, and community development. |
The Program Administrator must pass a background check | ||
administered by the Department of Corrections and be | ||
approved by the Department of Corrections to work within a | ||
secure facility prior to being hired by the Department of | ||
Commerce and Economic Opportunity for a Program delivery | ||
area.
| ||
(2) The Program Administrators shall:
| ||
(i) coordinate with Regional Administrators and | ||
the Clean Jobs Workforce Network Program to ensure | ||
that execution, performance, partnerships, marketing, | ||
and Program access across the State consistent with | ||
respecting regional differences;
| ||
(ii) work with community-based organizations | ||
approved to provide industry-recognized credentials or | ||
education institutions to deliver the Program;
| ||
(iii) collaborate to create and publish an | ||
employer "Hiring Returning Residents" handbook that | ||
includes benefits and expectations of hiring returning | ||
residents, guidance on how to recruit, hire, and | ||
retain returning residents, guidance on how to access | ||
State and federal tax credits and incentives and State | ||
and federal resources, guidance on how to update | ||
company policies to support hiring and supporting | ||
returning residents, and an understanding of the harm | ||
in one-size-fits-all policies toward returning | ||
residents. The handbook shall be updated every 5 years |
or more frequently if needed to ensure that its | ||
contents are accurate. The handbook shall be made | ||
available on the Department's website;
| ||
(iv) work with potential employers to promote | ||
company policies to support hiring and supporting | ||
returning residents via employee/employer liability, | ||
coverage, insurance, bonding, training, hiring | ||
practices, and retention support;
| ||
(v) provide services such as job coaching and | ||
financial coaching to Program graduates to support | ||
employment longevity;
and | ||
(vi) identify clean energy job opportunities and | ||
assist participants in achieving employment. The | ||
Program shall include at least one job fair; include | ||
job placement discussions with clean energy employers; | ||
establish a partnership with Illinois solar energy | ||
businesses and trade associations to identify solar | ||
employers that support and hire returning residents; | ||
and involve the Department of Commerce and Economic | ||
Opportunity, Regional Administrators, and the Advisory | ||
Council in finding employment for participants and | ||
graduates in the clean energy and related sector | ||
industries. | ||
(3) The Department shall select community-based | ||
organizations to provide Program elements at each | ||
facility. Community-based organizations shall be |
competitively selected by the Department of Commerce and | ||
Economic Opportunity. Community-based organizations | ||
delivering the Program elements outlined may provide all | ||
elements required or may subcontract to other entities for | ||
the provision of portions of Program elements. All | ||
contractors who have regular interactions with committed | ||
persons, regularly access a Department of Corrections | ||
facility, or regularly access a committed person's | ||
personal identifying information or other data elements | ||
must pass a Department of Corrections background check | ||
prior to being approved to administer the Program elements | ||
at a facility.
| ||
(4) The Department of Corrections shall aim to include | ||
training in conjunction with other pre-release procedures | ||
and movements. Delays in a workshop being provided shall | ||
not cause delays in discharge.
| ||
(5) The Program Administrators may establish shortened | ||
Returning Resident Clean Jobs Training Programs to prepare | ||
and place graduates in the Clean Jobs Workforce Network | ||
Program or the Illinois Climate Works Preapprenticeship | ||
Program following the graduate's release from commitment. | ||
Graduates of these programs shall receive training that | ||
leads to certification or credentials designed to lead to | ||
employment and shall be prioritized for placement in a | ||
Clean Jobs Workforce Hubs training program or the Illinois | ||
Climate Works Preapprenticeship Program.
|
(6) The Director of Corrections shall:
| ||
(i) Ensure that the wardens or superintendents of | ||
all correctional institutions and facilities visibly | ||
post information on the Program in an accessible | ||
manner for committed individuals.
| ||
(ii) Identify the institutions and facilities | ||
within the Department of Corrections that will offer | ||
the Program. The determination of which facility will | ||
offer the Program shall be based on available | ||
programming space, staffing, population, facility | ||
mission, security concerns, and any other relevant | ||
factor in determining suitable locations for the | ||
Program.
| ||
(i) Performance metrics.
| ||
(1) The Program Administrators shall collect data to | ||
evaluate and ensure Program and participant success, | ||
including:
| ||
(i) the number of returning residents who enrolled | ||
in the Program;
| ||
(ii) the number of returning residents who | ||
completed the Program;
| ||
(iii) the total number of individuals discharged;
| ||
(iv) the demographics of each entering and | ||
graduating class;
| ||
(v) the percentage of graduates employed at 6 and | ||
12 months after release;
|
(vi) the recidivism rate of Program participants | ||
at 3 and 5 years after release;
| ||
(vii) the candidates interviewed and hiring | ||
status;
| ||
(viii) the graduate employment status, such as | ||
hire date, pay rates, whether full-time, part-time, or | ||
seasonal, and separation date; and
| ||
(ix) continuing education and certifications | ||
gained by Program graduates.
| ||
(2) The Department of Commerce and Economic | ||
Opportunity shall publish an annual report containing | ||
these performance metrics. Data may be disaggregated by | ||
institution, discharge, or residence address of resident, | ||
and other factors.
| ||
(j) Funding. Funding for the Program is subject to | ||
appropriation from the Energy Transition Assistance Fund. | ||
Funding may be made available from other lawful sources, | ||
including donations, grants, and federal incentives. | ||
(k) Access. The Program instructors and staff must pass a | ||
background check administered by the Department of Corrections | ||
prior to entering a Department of Corrections institution or | ||
facility. The Warden or Superintendent shall have the | ||
authority to deny a Program instructor or staff member entry | ||
into an institution or facility for safety and security | ||
concerns or failure to follow all facility procedures or | ||
protocols. A Program instructor or staff member administering |
the Program may be terminated or have his or her contract | ||
canceled if the Program instructor or staff member is denied | ||
entry into an institution or facility for safety and security | ||
concerns. | ||
Section 5-55. Clean Energy Primes Contractor Accelerator | ||
Program.
| ||
(a) As used in this Section:
| ||
"Approved vendor" means the definition of that term used | ||
and as may be updated by the Illinois Power Agency.
| ||
"Minority business" means a minority-owned business as | ||
defined in Section 2 of the Business Enterprise for | ||
Minorities, Women, and Persons with Disabilities Act.
| ||
"Minority Business Enterprise certification" means the | ||
certification or recognition certification affidavit from the | ||
State of Illinois Department of Central Management Services | ||
Business Enterprise Program or a program with equivalent | ||
requirements.
| ||
"Program" means the Clean Energy Primes Contractor | ||
Accelerator Program. | ||
"Returning resident" has the meaning given to that term in | ||
Section 5-50 of this Act.
| ||
(b) Subject to appropriation, the Department shall | ||
develop, and through a Primes Program Administrator and | ||
Regional Primes Program Leads described in this Section, | ||
administer the Clean Energy Primes Contractor Accelerator |
Program. The Program shall be administered in 3 program | ||
delivery areas: the Northern Illinois Program Delivery Area | ||
covering Northern Illinois, the Central Illinois Program | ||
Delivery Area covering Central Illinois, and the Southern | ||
Illinois Program Delivery Area covering Southern Illinois. | ||
Prior to developing the Program, the Department shall solicit | ||
public comments, with a 30-day comment period, to gather input | ||
on Program implementation and associated community outreach | ||
options.
| ||
(c) The Program shall be available to selected contractors | ||
who best meet the following criteria:
| ||
(1) 2 or more years of experience in a clean energy or | ||
a related contracting field;
| ||
(2) at least $5,000 in annual business;
and | ||
(3) a substantial and demonstrated commitment of | ||
investing in and partnering with individuals and | ||
institutions in equity investment eligible communities.
| ||
(c-5) The Department shall develop scoring criteria to | ||
select contractors for the Program, which shall consider:
| ||
(1) projected hiring and industry job creation, | ||
including wage and benefit expectations;
| ||
(2) a clear vision of strategic business growth and | ||
how increased capitalization would benefit the business;
| ||
(3) past project work quality and demonstration of | ||
technical knowledge;
| ||
(4) capacity the applicant is anticipated to bring to |
project development;
| ||
(5) willingness to assume risk;
| ||
(6) anticipated revenues from future projects;
| ||
(7) history of commitment to advancing equity as | ||
demonstrated by, among other things, employment of or | ||
ownership by equity investment eligible persons and a | ||
history of partnership with equity focused community | ||
organizations or government programs; and
| ||
(8) business models that build wealth in the larger | ||
underserved community.
| ||
Applicants for Program participation shall be allowed to | ||
reapply for a future cohort if they are not selected, and the | ||
Primes Program Administrator shall inform each applicant of | ||
this option.
| ||
(d) The Department, in consultation with the Primes | ||
Program Administrator and Regional Primes Program Leads, shall | ||
select a new cohort of participant contractors from each | ||
Program Delivery Area every 18 months. Each regional cohort | ||
shall include between 3 and 5 participants. The Program shall | ||
cap contractors in the energy efficiency sector at 50% of | ||
available cohort spots and 50% of available grants and loans, | ||
if possible.
| ||
(e) The Department shall hire a Primes Program | ||
Administrator with experience in leading a large | ||
contractor-based business in Illinois; coaching and mentoring; | ||
the Illinois clean energy industry; and working with equity |
investment eligible community members, organizations, and | ||
businesses.
| ||
(f) The Department shall select 3 Regional Primes Program | ||
Leads who shall report directly to the Primes Program | ||
Administrator. The Regional Primes Program Leads shall be | ||
located within their Program Delivery Area and have experience | ||
in leading a large contractor-based business in Illinois; | ||
coaching and mentoring; the Illinois clean energy industry; | ||
developing relationships with companies in the Program | ||
Delivery Area; and working with equity investment eligible | ||
community members, organizations, and businesses.
| ||
(g) The Department may determine how Program elements will | ||
be delivered or may contract with organizations with | ||
experience delivering the Program elements described in | ||
subsection (h) of this Section.
| ||
(h) The Clean Energy Primes Contractor Accelerator Program | ||
shall provide participants with:
| ||
(1) a 5-year, 6-month progressive course of one-on-one | ||
coaching to assist each participant in developing an | ||
achievable 5-year business plan, including review of | ||
monthly metrics, and advice on achieving participant's | ||
goals;
| ||
(2) operational support grants not to exceed | ||
$1,000,000 annually to support the growth of participant | ||
contractors with access to capital for upfront project | ||
costs and pre-development funding, among others. The |
amount of the grant shall be based on anticipated project | ||
size and scope;
| ||
(3) business coaching based on the participant's | ||
needs;
| ||
(4) a mentorship of approximately 2 years provided by | ||
a qualified company in the participant's field;
| ||
(5) access to Clean Energy Contractor Incubator | ||
Program services;
| ||
(6) assistance with applying for Minority Business | ||
Enterprise certification and other relevant certifications | ||
and approved vendor status for programs offered by | ||
utilities or other entities;
| ||
(7) assistance with preparing bids and Request for | ||
Proposal applications;
| ||
(8) opportunities to be listed in any relevant | ||
directories and databases organized by the Department of | ||
Central Management Services;
| ||
(9) opportunities to connect with participants in | ||
other Department programs;
| ||
(10) assistance connecting with and initiating | ||
participation in the Illinois Power Agency's Adjustable | ||
Block program, the Illinois Solar for All Program, and | ||
utility programs; and
| ||
(11) financial development assistance programs such as | ||
zero-interest and low-interest loans with the Climate Bank | ||
as established by Article 850 of the Illinois Finance |
Authority Act or a comparable financing mechanism. The | ||
Illinois Finance Authority shall retain authority to | ||
determine loan repayment terms and conditions.
| ||
(i) The Primes Program Administrator shall:
| ||
(1) collect and report performance metrics as | ||
described in this Section;
| ||
(2) review and assess:
| ||
(i) participant work plans and annual goals; and
| ||
(ii) the mentorship program, including approved | ||
mentor companies and their stipend awards;
and | ||
(3) work with the Regional Primes Program Leads to | ||
publicize the Program; design and implement a mentorship | ||
program; and ensure participants are quickly on-boarded.
| ||
(j) The Regional Primes Program Leads shall:
| ||
(1) publicize the Program; the budget shall include | ||
funds to pay community-based organizations with a track | ||
record of working with equity investment eligible | ||
communities to complete this work;
| ||
(2) recruit qualified Program applicants;
| ||
(3) assist Program applicants with the application | ||
process;
| ||
(4) introduce participants to the Program offerings;
| ||
(5) conduct entry and annual assessments with | ||
participants to identify training, coaching, and other | ||
Program service needs;
| ||
(6) assist participants in developing goals on entry |
and annually, and assessing progress toward meeting the | ||
goals;
| ||
(7) establish a metric reporting system with each | ||
participant and track the metrics for progress against the | ||
contractor's work plan and Program goals;
| ||
(8) assist participants in receiving their Minority | ||
Business Enterprise certification and any other relevant | ||
certifications and approved vendor statuses; | ||
(9) match participants with Clean Energy Contractor | ||
Incubator Program offerings and individualized expert | ||
coaching, including training on working with returning | ||
residents and companies that employ them;
| ||
(10) pair participants with a mentor company;
| ||
(11) facilitate connections between participants and | ||
potential subcontractors and employees;
| ||
(12) dispense a participant's awarded operational | ||
grant funding;
| ||
(13) connect participants to zero-interest and | ||
low-interest loans from the Climate Bank as established by | ||
Article 850 of the Illinois Finance Authority Act or a | ||
comparable financing mechanism;
| ||
(14) encourage participants to apply for appropriate | ||
State and private business opportunities;
| ||
(15) review a participant's progress and make a | ||
recommendation to the Department about whether the | ||
participant should continue in the Program, be considered |
a Program graduate, and whether adjustments should be made | ||
to a participant's grant funding, loans, and related | ||
services;
| ||
(16) solicit information from participants, which | ||
participants shall be required to provide, necessary to | ||
understand the participant's business, including financial | ||
and income information, certifications that the | ||
participant is seeking to obtain, and ownership, employee, | ||
and subcontractor data, including compensation, length of | ||
service, and demographics; and
| ||
(17) other duties as required.
| ||
(k) Performance metrics. The Primes Program Administrator | ||
and Regional Primes Program Leads shall collaborate to collect | ||
and report the following metrics quarterly to the Department | ||
and Advisory Council:
| ||
(1) demographic information on cohort recruiting and | ||
formation, including racial, gender, geographic | ||
distribution data, and data on the number and percentage | ||
of R3 residents, environmental justice community | ||
residents, foster care alumni, and formerly convicted | ||
persons who are cohort applicants and admitted | ||
participants; | ||
(2) participant contractor engagement in other | ||
Illinois clean energy programs such as the Adjustable | ||
Block program, Illinois Solar for All Program, and the | ||
utility-run energy efficiency and electric vehicle |
programs; | ||
(3) retention of participants in each cohort;
| ||
(4) total projects bid, started, and completed by | ||
participants, including information about revenue, hiring, | ||
and subcontractor relationships with projects; | ||
(5) certifications issued;
| ||
(6) employment data for contractor hires and industry | ||
jobs created, including demographic, salary, length of | ||
service, and geographic data;
| ||
(7) grants and loans distributed; and
| ||
(8) participant satisfaction with the Program.
| ||
The metrics in paragraphs (2), (4), and (6) shall be | ||
collected from Program participants and graduates for 10 years | ||
from their entrance into the Program to help the Department | ||
and Program Administrators understand the Program's long-term | ||
effect.
| ||
Data should be anonymized where needed to protect | ||
participant privacy. | ||
The Department shall make such reports publicly available | ||
on its website. | ||
(l) Mentorship Program.
| ||
(1) The Regional Primes Program Leads shall recruit, | ||
and the Primes Program Administrator shall select, with | ||
approval from the Department, private companies with the | ||
following qualifications to mentor participants and assist | ||
them in succeeding in the clean energy industry:
|
(i) excellent standing with state clean energy | ||
programs;
| ||
(ii) 4 or more years of experience in their field; | ||
and
| ||
(iii) a proven track record of success in their | ||
field.
| ||
(2) Mentor companies may receive a stipend, determined | ||
by the Department, for their participation. Mentor | ||
companies may identify what level of stipend they require.
| ||
(3) The Primes Program Administrator shall develop | ||
guidelines for mentor company-mentee profit sharing or | ||
purchased services agreements.
| ||
(4) The Regional Primes Program Leads shall:
| ||
(i) collaborate with mentor companies and | ||
participants to create a plan for ongoing contact such | ||
as on-the-job training, site walkthroughs, business | ||
process and structure walkthroughs, quality assurance | ||
and quality control reviews, and other relevant | ||
activities;
| ||
(ii) recommend the mentor company-mentee pairings | ||
and associated mentor company stipends for approval; | ||
(iii) conduct an annual review of each mentor | ||
company-mentee pairing and recommend whether the | ||
pairing continues for a second year and the level of | ||
stipend that is appropriate. The review shall also | ||
ensure that any profit sharing and purchased services |
agreements adhere to the guidelines established by the | ||
Primes Program Administrator.
| ||
(5) Contractors may request reassignment to a new | ||
mentor company.
| ||
(m) Disparity study. The Program Administrator shall | ||
cooperate with the Illinois Power Agency in the conduct of a | ||
disparity study, as described in subsection (c-15) of Section | ||
1-75 of the Illinois Power Agency Act, and in the effectuation | ||
of appropriate remedies necessary to address any | ||
discrimination that such study may find. Potential remedies | ||
shall include, but not be limited to, race-conscious remedies | ||
to rapidly eliminate discrimination faced by minority | ||
businesses and works in the industry this Program serves, | ||
consistent with the law. Remedies shall be developed through | ||
consultation with individuals, companies, and organizations | ||
that have expertise on discrimination faced in the market and | ||
potential legally permissible remedies for addressing it. | ||
Notwithstanding any other requirement of this Section, the | ||
Program Administrator shall modify program participation | ||
criteria or goals as soon as the report has been published, in | ||
such a way as is consistent with state and federal law, to | ||
rapidly eliminate discrimination on minority businesses and | ||
workers in the industry this Program serves by setting | ||
standards for Program participation. This study will be paid | ||
for with funds from the Energy Transition Assistance Fund or | ||
any other lawful source.
|
(n) Program budget.
| ||
(1) The Department may allocate up to $3,000,000 | ||
annually to
the Primes Program Administrator for each of | ||
the 3 regional budgets from the Energy Transition | ||
Assistance Fund.
| ||
(2) The Primes Program Administrator shall work with | ||
the Illinois Finance Authority and the Climate Bank as | ||
established by Article 850 of the Illinois Finance | ||
Authority Act or comparable financing institution so that | ||
loan loss reserves may be sufficient to underwrite | ||
$7,000,000 in low-interest loans in each of the 3 Program | ||
delivery areas.
| ||
(3) Any grant and loan funding shall be made available | ||
to participants in a timely fashion.
| ||
Section 5-60. Jobs and Environmental Justice Grant | ||
Program.
| ||
(a) In order to provide upfront capital to support the | ||
development of projects, businesses, community organizations, | ||
and jobs creating opportunity for historically disadvantaged | ||
populations, and to provide seed capital to support community | ||
ownership of renewable energy projects, the Department of | ||
Commerce and Economic Opportunity shall create and administer | ||
a Jobs and Environmental Justice Grant Program. The grant | ||
program shall be designed to help remove barriers to project, | ||
community, and business development caused by a lack of |
capital.
| ||
(b) The grant program shall provide grant awards of up to | ||
$1,000,000 per application to support the development of | ||
renewable energy resources as defined in Section 1-10 of the | ||
Illinois Power Agency Act, and energy efficiency measures as | ||
defined in Section 8-103B of the Public Utilities Act. The | ||
amount of a grant award shall be based on a project's size and | ||
scope. Grants shall be provided upfront, in advance of other | ||
incentives, to provide businesses, organizations, and | ||
community groups with capital needed to plan, develop, and | ||
execute a project. Grants shall be designed to coordinate with | ||
and supplement existing incentive programs, such as the | ||
Adjustable Block program, the Illinois Solar for All Program, | ||
the community renewable generation projects, and renewable | ||
energy procurements as described in the Illinois Power Agency | ||
Act, as well as utility energy efficiency measures as | ||
described in Section 8-103B of the Public Utilities Act.
| ||
(c) The Jobs and Environmental Justice Grant Program shall | ||
include 2 subprograms: | ||
(1) the Equitable Energy Future Grant Program; and | ||
(2) the Community Solar Energy Sovereignty Grant | ||
Program. | ||
(d) The Equitable Energy Future Grant Program is designed | ||
to provide seed funding and pre-development funding | ||
opportunities for equity eligible contractors.
| ||
(1) The Equitable Energy Future Grant shall be awarded |
to businesses and nonprofit organizations for costs | ||
related to the following activities and project needs:
| ||
(i) planning and project development, including | ||
costs for professional services such as architecture, | ||
design, engineering, auditing, consulting, and | ||
developer services;
| ||
(ii) project application, deposit, and approval;
| ||
(iii) purchasing and leasing of land;
| ||
(iv) permitting and zoning;
| ||
(v) interconnection application costs and fees, | ||
studies, and expenses;
| ||
(vi) equipment and supplies;
| ||
(vii) community outreach, marketing, and | ||
engagement; and | ||
(viii) staff and operations expenses.
| ||
(2) Grants shall be awarded to projects that most | ||
effectively provide opportunities for equity eligible | ||
contractors and equity investment eligible communities, | ||
and should consider the following criteria:
| ||
(i) projects that provide community benefits, | ||
which are projects that have one or more of the | ||
following characteristics: (A) greater than 50% of the | ||
project's energy provided or saved benefits low-income | ||
residents, or (B) the project benefits not-for-profit | ||
organizations providing services to low-income | ||
households, affordable housing owners, or |
community-based limited liability companies providing | ||
services to low-income households;
| ||
(ii) projects that are located in equity | ||
investment eligible communities;
| ||
(iii) projects that provide on-the-job training;
| ||
(iv) projects that contract with contractors who | ||
are participating or have participated in the Clean | ||
Energy Contractor Incubator Program, Clean Energy | ||
Primes Contractor Accelerator Program, or similar | ||
programs; and
| ||
(v) projects employ a minimum of 51% of its | ||
workforce from participants and graduates of the Clean | ||
Jobs Workforce Network Program, Illinois Climate Works | ||
Preapprenticeship Program, and Returning Residents | ||
Clean Jobs Training Program.
| ||
(3) Grants shall be awarded to applicants that meet | ||
the following criteria:
| ||
(i) are equity eligible contractors per the equity | ||
accountability systems described in subsection (c-10) | ||
of Section 1-75 of the Illinois Power Agency Act, or | ||
meet the equity building criteria in paragraph (9.5) | ||
of subsection (g) of Section 8-103B of the Public | ||
Utilities Act; and
| ||
(ii) provide demonstrable proof of a historical or | ||
future, and persisting, long-term partnership with the | ||
community in which the project will be located.
|
(e) The Community Solar Energy Sovereignty Grant Program | ||
shall be designed to support the pre-development and | ||
development of community solar projects that promote community | ||
ownership and energy sovereignty.
| ||
(1) Grants shall be awarded to applicants that best | ||
demonstrate the ability and intent to create community | ||
ownership and other local community benefits, including | ||
local community wealth building via community renewable | ||
generation projects. Grants shall be prioritized to | ||
applicants for whom:
| ||
(i) the proposed project is located in and | ||
supporting an equity investment eligible community or | ||
communities;
and | ||
(ii) the proposed project provides additional | ||
benefits for participating low-income households.
| ||
(2) Grant funds shall be awarded to support project | ||
pre-development work and may also be awarded to support | ||
the development of programs and entities to assist in the | ||
long-term governance, management, and maintenance of | ||
community solar projects, such as community solar | ||
cooperatives. For example, funds may be awarded for:
| ||
(i) early stage project planning;
| ||
(ii) project team organization;
| ||
(iii) site identification;
| ||
(iv) organizing a project business model and | ||
securing financing;
|
(v) procurement and contracting; | ||
(vi) customer outreach and enrollment; | ||
(vii) preliminary site assessments; | ||
(viii) development of cooperative or community | ||
ownership model; and
| ||
(ix) development of project models that allocate | ||
benefits to equity investment eligible communities.
| ||
(3) Grant recipients shall submit reports to the | ||
Department at the end of the grant term on the activities | ||
pursued under their grant and any lessons learned for | ||
publication on the Department's website so that other | ||
energy sovereignty projects may learn from their | ||
experience.
| ||
(4) Eligible applicants shall include community-based | ||
organizations, as defined in the Illinois Power Agency's | ||
long-term renewable resources procurement plan, or | ||
technical service providers working in direct partnership | ||
with community-based organizations.
| ||
(5) The amount of a grant shall be based on a projects' | ||
size and scope. Grants shall allow for a significant | ||
portion, or the entirety, of the grant value to be made | ||
upfront, in advance of other incentives, to ensure | ||
businesses and organizations have the capital needed to | ||
plan, develop, and execute a project.
| ||
(f) The application process for both subprograms shall not | ||
be burdensome on applicants, nor require extensive technical |
knowledge, and shall be able to be completed on less than 4 | ||
standard letter-sized pages.
| ||
(g) These grant subprograms may be coordinated with | ||
low-interest and no-interest financing opportunities offered | ||
through the Clean Energy Jobs and Justice Fund.
| ||
(h) The grant subprograms may have a budget of up to | ||
$34,000,000 per year. No more than 25% of the allocated budget | ||
shall go to the Community Solar Energy Sovereignty Grant | ||
Program.
| ||
Section 5-65. Energy Workforce Advisory Council. | ||
(a) The Energy Workforce Advisory Council is hereby | ||
created within the Department. | ||
(b) The Council shall consist of the following voting | ||
members appointed by the Governor with the advice and consent | ||
of the Senate, chosen to ensure diverse geographic | ||
representation: | ||
(1) two members representing trade associations | ||
representing companies active in the clean energy | ||
industries; | ||
(2) two members representing a labor union; | ||
(3) one member who has participated in the workforce | ||
development programs created under this Act; | ||
(4) two members representing higher education; | ||
(5) two members representing economic development | ||
organizations; |
(6) two members representing local workforce | ||
innovation boards; | ||
(7) two residents of environmental justice | ||
communities; | ||
(8) three members from community-based organizations | ||
in environmental justice communities and community-based | ||
organizations serving low-income persons and families; | ||
(9) two members who are policy or implementation | ||
experts on small business development, contractor | ||
incubation, or small business lending and financing needs; | ||
(10) two members who are policy or implementation | ||
experts on workforce development for populations and | ||
individuals such as low-income persons and families, | ||
environmental justice communities, BIPOC communities, | ||
formerly convicted persons, persons who are or were in the | ||
child welfare system, energy workers, gender nonconforming | ||
and transgender individuals, and youth; and | ||
(11) two representatives of clean energy businesses, | ||
nonprofit organizations, or other groups that provide | ||
clean energy. | ||
The President of the Senate, the Minority Leader of the | ||
Senate, the Speaker of the House of Representatives, and the | ||
Minority Leader of the House of Representatives shall each | ||
appoint 2 nonvoting members of the Council. | ||
(c) The Council shall: | ||
(1) coordinate and inform on worker and contractor |
support priorities beyond current federal, State, local, | ||
and private programs and resources; | ||
(2) advise and produce recommendations for further | ||
federal, State, and local programs and activities; | ||
(3) fulfill other duties determined by the Council to | ||
further the success of the Workforce Hubs, Incubators, and | ||
Returning Residents Programs; | ||
(4) review program performance metrics; | ||
(5) provide recommendations to the Department on the | ||
administration of the following programs: | ||
(i) the Clean Jobs Workforce Network Program; | ||
(ii) the Illinois Climate Works Preapprenticeship | ||
Program; | ||
(iii) the Clean Energy Contractor Incubator | ||
Program; | ||
(iv) the Returning Residents Clean Jobs Training | ||
Program; and | ||
(v) the Clean Energy Primes Contractor Accelerator | ||
Program; | ||
(6) recommend outreach opportunities to ensure that | ||
program contracting, training, and other opportunities are | ||
widely publicized; | ||
(7) participate in independent program evaluations; | ||
and | ||
(8) assist the Department by providing insight into | ||
how relevant State, local, and federal programs are viewed |
by residents, businesses, and institutions within their | ||
respective communities. | ||
(d) The Council shall conduct its first meeting within 30 | ||
days after all members have been appointed. The Council shall | ||
meet quarterly after its first meeting. Additional hearings | ||
and public meetings are permitted at the discretion of the | ||
members. The Council may meet in person or through video or | ||
audio conference. Meeting times may be varied to accommodate | ||
Council member schedules. | ||
(e) Members shall serve without compensation and shall be | ||
reimbursed for reasonable expenses incurred in the performance | ||
of their duties from funds appropriated for that purpose. | ||
Section 5-90. Repealer. This Act is repealed 24 years | ||
after the effective date of this Act. | ||
Section 5-95. The Illinois Finance Authority Act is | ||
amended by changing Sections 801-1, 801-5, 801-10, and 801-40 | ||
and adding Article 850 as follows:
| ||
(20 ILCS 3501/801-1)
| ||
Sec. 801-1. Short Title. Articles 801 through 850 845 of | ||
this Act may
be cited as the Illinois Finance Authority Act. | ||
References to "this Act" in
Articles 801 through 850 845 are | ||
references to the Illinois Finance Authority Act.
| ||
(Source: P.A. 95-331, eff. 8-21-07.)
|
(20 ILCS 3501/801-5)
| ||
Sec. 801-5. Findings and declaration of policy. The | ||
General Assembly
hereby finds, determines and declares:
| ||
(a) that there are a number of existing State authorities | ||
authorized to
issue
bonds to alleviate the conditions and | ||
promote the objectives set forth below;
and to provide a | ||
stronger, better coordinated development effort, it is
| ||
determined to be in the interest of promoting the health, | ||
safety, morals and
general welfare of all the people of the | ||
State to consolidate certain of such
existing authorities into | ||
one finance authority;
| ||
(b) that involuntary unemployment affects the health, | ||
safety, morals and
general welfare of the people of the State | ||
of Illinois;
| ||
(c) that the economic burdens resulting from involuntary | ||
unemployment fall
in
part upon the State in the form of public | ||
assistance and reduced tax revenues,
and in the event the | ||
unemployed worker and his family migrate elsewhere to find
| ||
work, may also fall upon the municipalities and other taxing | ||
districts within
the areas of unemployment in the form of | ||
reduced tax revenues, thereby
endangering their financial | ||
ability to support necessary governmental services
for their | ||
remaining inhabitants;
| ||
(d) that a vigorous growing economy is the basic source of | ||
job
opportunities;
|
(e) that protection against involuntary unemployment, its | ||
economic burdens
and the spread of economic stagnation can | ||
best be provided by promoting,
attracting,
stimulating and | ||
revitalizing industry, manufacturing and commerce in the | ||
State;
| ||
(f) that the State has a responsibility to help create a | ||
favorable climate
for new and improved job opportunities for | ||
its citizens by encouraging the
development of commercial | ||
businesses and industrial and manufacturing plants
within the | ||
State;
| ||
(g) that increased availability of funds for construction | ||
of new facilities
and the expansion and improvement of | ||
existing facilities for industrial,
commercial
and | ||
manufacturing facilities will provide for new and continued | ||
employment in
the construction industry and alleviate the | ||
burden of unemployment;
| ||
(h) that in the absence of direct governmental subsidies | ||
the unaided
operations of private enterprise do not provide | ||
sufficient resources for
residential
construction, | ||
rehabilitation, rental or purchase, and that support from | ||
housing
related commercial facilities is one means of | ||
stimulating residential
construction, rehabilitation, rental | ||
and purchase;
| ||
(i) that it is in the public interest and the policy of | ||
this State to foster
and promote by all reasonable means the | ||
provision of adequate capital markets
and facilities for |
borrowing money by units of local government, and for the
| ||
financing of their respective public improvements and other | ||
governmental
purposes within the State from proceeds of bonds | ||
or notes issued by those
governmental units; and to assist | ||
local governmental units in fulfilling their
needs for those | ||
purposes by use of creation of indebtedness;
| ||
(j) that it is in the public interest and the policy of | ||
this State to the
extent possible, to reduce the costs of | ||
indebtedness to taxpayers and residents
of this State and to | ||
encourage continued investor interest in the purchase of
bonds | ||
or notes of governmental units as sound and preferred | ||
securities for
investment; and to encourage governmental units | ||
to continue their independent
undertakings of public | ||
improvements and other governmental purposes and the
financing | ||
thereof, and to assist them in those activities by making | ||
funds
available at reduced interest costs for orderly | ||
financing of those purposes,
especially during periods of | ||
restricted credit or money supply, and
particularly for those | ||
governmental units not otherwise able to borrow for
those | ||
purposes;
| ||
(k) that in this State the following conditions exist: (i) | ||
an inadequate
supply of funds at interest rates sufficiently | ||
low to enable persons engaged in
agriculture in this State to | ||
pursue agricultural operations at present levels;
(ii) that | ||
such inability to pursue agricultural operations lessens the | ||
supply
of agricultural commodities available to fulfill the |
needs of the citizens of
this
State; (iii) that such inability | ||
to continue operations decreases available
employment in the | ||
agricultural sector of the State and results in unemployment
| ||
and its attendant problems; (iv) that such conditions prevent | ||
the acquisition
of an adequate capital stock of farm equipment | ||
and machinery, much of which is
manufactured in this State, | ||
therefore impairing the productivity of
agricultural
land and, | ||
further, causing unemployment or lack of appropriate increase | ||
in
employment in such manufacturing; (v) that such conditions | ||
are conducive to
consolidation of acreage of agricultural land | ||
with fewer individuals living and
farming on the traditional | ||
family farm; (vi) that these conditions result in a
loss in | ||
population, unemployment and movement of persons from rural to | ||
urban
areas accompanied by added costs to communities for | ||
creation of new public
facilities and services; (vii) that | ||
there have been recurrent shortages of
funds for agricultural | ||
purposes from private market sources at reasonable rates
of
| ||
interest; (viii) that these shortages have made the sale and | ||
purchase of
agricultural land to family farmers a virtual | ||
impossibility in many parts of
the State; (ix) that the | ||
ordinary operations of private enterprise have not in
the
past | ||
corrected these conditions; and (x) that a stable supply of | ||
adequate funds
for agricultural financing is required to | ||
encourage family farmers in an
orderly
and sustained manner | ||
and to reduce the problems described above;
| ||
(l) that for the benefit of the people of the State of |
Illinois, the conduct
and increase of their commerce, the | ||
protection and enhancement of their
welfare,
the development | ||
of continued prosperity and the improvement of their health | ||
and
living conditions it is essential that all the people of | ||
the State be given the
fullest opportunity to learn and to | ||
develop their intellectual and mental
capacities and skills; | ||
that to achieve these ends it is of the utmost
importance
that | ||
private institutions of higher education within the State be | ||
provided with
appropriate additional means to assist the | ||
people of the State in achieving the
required levels of | ||
learning and development of their intellectual and mental
| ||
capacities and skills and that cultural institutions within | ||
the State be
provided with appropriate additional means to | ||
expand the services and resources
which they offer for the | ||
cultural, intellectual, scientific, educational and
artistic | ||
enrichment of the people of the State;
| ||
(m) that in order to foster civic and neighborhood pride, | ||
citizens require
access to facilities such as educational | ||
institutions, recreation, parks and
open spaces, entertainment | ||
and sports, a reliable transportation network,
cultural | ||
facilities and theaters and other facilities as authorized by | ||
this
Act, and that it is in the best interests of the State to | ||
lower the costs of
all such facilities by providing financing | ||
through the State;
| ||
(n) that to preserve and protect the health of the | ||
citizens of the State,
and
lower the costs of health care, that |
financing for health facilities should be
provided through the | ||
State; and
it is hereby declared to be the policy of the State, | ||
in the interest of
promoting the health, safety, morals and | ||
general welfare of all the people of
the State, to address the | ||
conditions noted above, to increase job opportunities
and to | ||
retain existing jobs in the State, by making available through | ||
the
Illinois Finance Authority, hereinafter created, funds for | ||
the development,
improvement and creation of industrial, | ||
housing, local government, educational,
health, public purpose | ||
and other projects; to issue its bonds and notes to make
funds | ||
at reduced rates and on more favorable terms for borrowing by | ||
local
governmental units through the purchase of the bonds or | ||
notes of the
governmental units; and to make or acquire loans | ||
for the acquisition and
development of agricultural | ||
facilities; to provide financing for private
institutions of | ||
higher education, cultural institutions, health facilities and
| ||
other facilities and projects as authorized by this Act; and | ||
to grant broad
powers to the Illinois Finance Authority to | ||
accomplish and to carry out these
policies of the State which | ||
are in the public interest of the State and of its
taxpayers | ||
and residents;
| ||
(o) that providing financing alternatives for projects | ||
that are located outside the State that are owned, operated, | ||
leased, managed by, or otherwise affiliated with, institutions | ||
located within the State would promote the economy of the | ||
State for the benefit of the health, welfare, safety, trade, |
commerce, industry, and economy of the people of the State by | ||
creating employment opportunities in the State and lowering | ||
the cost of accessing healthcare, private education, or | ||
cultural institutions in the State by reducing the cost of | ||
financing or operating those projects; and
| ||
(p) that the realization of the objectives of the | ||
Authority identified in this Act including, without | ||
limitation, those designed (1) to assist and enable veterans, | ||
minorities, women and disabled individuals to own and operate | ||
small businesses; (2) to assist in the delivery of | ||
agricultural assistance; and (3) to aid, assist, and encourage | ||
economic growth and development within this State, will be | ||
enhanced by empowering the Authority to purchase loan | ||
participations from participating lenders ; . | ||
(q) that climate change threatens the health, welfare, and | ||
prosperity of all the residents of the State; | ||
(r) combating climate change is necessary to preserve and | ||
enhance the health, welfare, and prosperity of all the | ||
residents of the State; | ||
(s) that the promotion of the development and | ||
implementation of clean energy is necessary to combat climate | ||
change and is hereby declared to be the policy of the State; | ||
and | ||
(t) that designating the Authority as the "Climate Bank" | ||
to aid in all respects with providing financial assistance, | ||
programs, and products to finance and otherwise develop and |
implement equitable clean energy opportunities in the State to | ||
mitigate or adapt to the negative consequences of climate | ||
change in an equitable manner will further the clean energy | ||
policy of the State. | ||
(Source: P.A. 100-919, eff. 8-17-18.)
| ||
(20 ILCS 3501/801-10)
| ||
Sec. 801-10. Definitions. The following terms, whenever | ||
used or referred
to
in this Act, shall have the following | ||
meanings, except in such instances where
the context may | ||
clearly indicate otherwise:
| ||
(a) The term "Authority" means the Illinois Finance | ||
Authority created by
this Act.
| ||
(b) The term "project" means an industrial project, clean | ||
energy project, conservation project, housing project, public
| ||
purpose project, higher education project, health facility | ||
project, cultural
institution project, municipal bond program | ||
project, PACE Project, agricultural facility or agribusiness, | ||
and "project" may
include any combination of one or more of the | ||
foregoing undertaken jointly by
any person with one or more | ||
other persons.
| ||
(c) The term "public purpose project" means (i) any | ||
project or facility,
including
without limitation land, | ||
buildings, structures, machinery, equipment and all
other real | ||
and personal property, which is authorized or required by law | ||
to be
acquired, constructed, improved, rehabilitated, |
reconstructed, replaced or
maintained by any unit of | ||
government or any other lawful public purpose, including | ||
provision of working capital, which
is authorized or required | ||
by law to be undertaken by any unit of government or (ii) costs | ||
incurred and other expenditures, including expenditures for | ||
management, investment, or working capital costs, incurred in | ||
connection with the reform, consolidation, or implementation | ||
of the transition process as described in Articles 22B and 22C | ||
of the Illinois Pension Code.
| ||
(d) The term "industrial project" means the acquisition, | ||
construction,
refurbishment, creation, development or | ||
redevelopment of any facility,
equipment, machinery, real | ||
property or personal property for use by any
instrumentality | ||
of the State or its political subdivisions, for use by any
| ||
person or institution, public or private, for profit or not | ||
for profit, or for
use in any trade or business, including, but | ||
not limited to, any industrial,
manufacturing , clean energy, | ||
or commercial enterprise that is located within or outside the | ||
State, provided that, with respect to a project involving | ||
property located outside the State, the property must be | ||
owned, operated, leased or managed by an entity located within | ||
the State or an entity affiliated with an entity located | ||
within the State, and which is (1) a capital project or clean | ||
energy project ,
including, but not limited to: (i) land and | ||
any rights therein, one or more
buildings, structures or other | ||
improvements, machinery and equipment, whether
now existing or |
hereafter acquired, and whether or not located on the same | ||
site
or sites; (ii) all appurtenances and facilities | ||
incidental to the foregoing,
including, but not limited to, | ||
utilities, access roads, railroad sidings, track,
docking and | ||
similar facilities, parking facilities, dockage, wharfage, | ||
railroad
roadbed, track, trestle, depot, terminal, switching | ||
and signaling or related
equipment, site preparation and | ||
landscaping; and (iii) all non-capital costs
and expenses | ||
relating thereto or (2) any addition to, renovation,
| ||
rehabilitation or
improvement of a capital project or a clean | ||
energy project, or (3) any activity or undertaking within or | ||
outside the State, provided that, with respect to a project | ||
involving property located outside the State, the property | ||
must be owned, operated, leased or managed by an entity | ||
located within the State or an entity affiliated with an | ||
entity located within the State, which the
Authority | ||
determines will aid, assist or encourage economic growth, | ||
development
or redevelopment within the State or any area | ||
thereof, will promote the
expansion, retention or | ||
diversification of employment opportunities within the
State | ||
or any area thereof or will aid in stabilizing or developing | ||
any industry
or economic sector of the State economy. The term | ||
"industrial project" also
means the production of motion | ||
pictures.
| ||
(e) The term "bond" or "bonds" shall include bonds, notes | ||
(including bond,
grant or revenue anticipation notes), |
certificates and/or other evidences of
indebtedness | ||
representing an obligation to pay money, including refunding
| ||
bonds.
| ||
(f) The terms "lease agreement" and "loan agreement" shall | ||
mean: (i) an
agreement whereby a project acquired by the | ||
Authority by purchase, gift or
lease
is leased to any person, | ||
corporation or unit of local government which will use
or | ||
cause the project to be used as a project as heretofore defined | ||
upon terms
providing for lease rental payments at least | ||
sufficient to pay when due all
principal of, interest and | ||
premium, if any, on any bonds of the Authority
issued
with | ||
respect to such project, providing for the maintenance, | ||
insuring and
operation of the project on terms satisfactory to | ||
the Authority, providing for
disposition of the project upon | ||
termination of the lease term, including
purchase options or | ||
abandonment of the premises, and such other terms as may be
| ||
deemed desirable by the Authority, or (ii) any agreement | ||
pursuant to which the
Authority agrees to loan the proceeds of | ||
its bonds issued with respect to a
project or other funds of | ||
the Authority to any person which will use or cause
the project | ||
to be used as a project as heretofore defined upon terms | ||
providing
for loan repayment installments at least sufficient | ||
to pay when due all
principal of, interest and premium, if any, | ||
on any bonds of the Authority, if
any, issued with respect to | ||
the project, and providing for maintenance,
insurance and | ||
other matters as may be deemed desirable by the Authority.
|
(g) The term "financial aid" means the expenditure of | ||
Authority funds or
funds provided by the Authority through the | ||
issuance of its bonds, notes or
other
evidences of | ||
indebtedness or from other sources for the development,
| ||
construction, acquisition or improvement of a project.
| ||
(h) The term "person" means an individual, corporation, | ||
unit of government,
business trust, estate, trust, partnership | ||
or association, 2 or more persons
having a joint or common | ||
interest, or any other legal entity.
| ||
(i) The term "unit of government" means the federal | ||
government, the State or
unit of local government, a school | ||
district, or any agency or instrumentality,
office, officer, | ||
department, division, bureau, commission, college or
| ||
university thereof.
| ||
(j) The term "health facility" means: (a) any public or | ||
private institution,
place, building, or agency required to be | ||
licensed under the Hospital Licensing
Act; (b) any public or | ||
private institution, place, building, or agency required
to be | ||
licensed under the Nursing Home Care Act, the Specialized | ||
Mental Health Rehabilitation Act of 2013, the ID/DD Community | ||
Care Act, or the MC/DD Act; (c)
any public or licensed private | ||
hospital as defined in the Mental Health and
Developmental | ||
Disabilities Code; (d) any such facility exempted from such
| ||
licensure when the Director of Public Health attests that such | ||
exempted
facility
meets the statutory definition of a facility | ||
subject to licensure; (e) any
other
public or private health |
service institution, place, building, or agency which
the | ||
Director of Public Health attests is subject to certification | ||
by the
Secretary, U.S. Department of Health and Human Services | ||
under the Social
Security Act, as now or hereafter amended, or | ||
which the Director of Public
Health attests is subject to | ||
standard-setting by a recognized public or
voluntary | ||
accrediting or standard-setting agency; (f) any public or | ||
private
institution, place, building or agency engaged in | ||
providing one or more
supporting services to a health | ||
facility; (g) any public or private
institution,
place, | ||
building or agency engaged in providing training in the | ||
healing arts,
including, but not limited to, schools of | ||
medicine, dentistry, osteopathy,
optometry, podiatry, pharmacy | ||
or nursing, schools for the training of x-ray,
laboratory or | ||
other health care technicians and schools for the training of
| ||
para-professionals in the health care field; (h) any public or | ||
private
congregate, life or extended care or elderly housing | ||
facility or any public or
private home for the aged or infirm, | ||
including, without limitation, any
Facility as defined in the | ||
Life Care Facilities Act; (i) any public or private
mental, | ||
emotional or physical rehabilitation facility or any public or | ||
private
educational, counseling, or rehabilitation facility or | ||
home, for those persons
with a developmental disability, those | ||
who are physically ill or disabled, the
emotionally disturbed, | ||
those persons with a mental illness or persons with
learning | ||
or similar disabilities or problems; (j) any public or private
|
alcohol, drug or substance abuse diagnosis, counseling | ||
treatment or
rehabilitation
facility, (k) any public or | ||
private institution, place, building or agency
licensed by the | ||
Department of Children and Family Services or which is not so
| ||
licensed but which the Director of Children and Family | ||
Services attests
provides child care, child welfare or other | ||
services of the type provided by
facilities
subject to such | ||
licensure; (l) any public or private adoption agency or
| ||
facility; and (m) any public or private blood bank or blood | ||
center. "Health
facility" also means a public or private | ||
structure or structures suitable
primarily for use as a | ||
laboratory, laundry, nurses or interns residence or
other | ||
housing or hotel facility used in whole or in part for staff, | ||
employees
or
students and their families, patients or | ||
relatives of patients admitted for
treatment or care in a | ||
health facility, or persons conducting business with a
health | ||
facility, physician's facility, surgicenter, administration | ||
building,
research facility, maintenance, storage or utility | ||
facility and all structures
or facilities related to any of | ||
the foregoing or required or useful for the
operation of a | ||
health facility, including parking or other facilities or | ||
other
supporting service structures required or useful for the | ||
orderly conduct of
such health facility. "Health facility" | ||
also means, with respect to a project located outside the | ||
State, any public or private institution, place, building, or | ||
agency which provides services similar to those described |
above, provided that such project is owned, operated, leased | ||
or managed by a participating health institution located | ||
within the State, or a participating health institution | ||
affiliated with an entity located within the State.
| ||
(k) The term "participating health institution" means (i) | ||
a private corporation
or association or (ii) a public entity | ||
of this State, in either case authorized by the laws of this
| ||
State or the applicable state to provide or operate a health | ||
facility as defined in this Act and which,
pursuant to the | ||
provisions of this Act, undertakes the financing, construction
| ||
or acquisition of a project or undertakes the refunding or | ||
refinancing of
obligations, loans, indebtedness or advances as | ||
provided in this Act.
| ||
(l) The term "health facility project", means a specific | ||
health facility
work
or improvement to be financed or | ||
refinanced (including without limitation
through reimbursement | ||
of prior expenditures), acquired, constructed, enlarged,
| ||
remodeled, renovated, improved, furnished, or equipped, with | ||
funds provided in
whole or in part hereunder, any accounts | ||
receivable, working capital, liability
or insurance cost or | ||
operating expense financing or refinancing program of a
health | ||
facility with or involving funds provided in whole or in part | ||
hereunder,
or any combination thereof.
| ||
(m) The term "bond resolution" means the resolution or | ||
resolutions
authorizing the issuance of, or providing terms | ||
and conditions related to,
bonds issued
under this Act and |
includes, where appropriate, any trust agreement, trust
| ||
indenture, indenture of mortgage or deed of trust providing | ||
terms and
conditions for such bonds.
| ||
(n) The term "property" means any real, personal or mixed | ||
property, whether
tangible or intangible, or any interest | ||
therein, including, without limitation,
any real estate, | ||
leasehold interests, appurtenances, buildings, easements,
| ||
equipment, furnishings, furniture, improvements, machinery, | ||
rights of way,
structures, accounts, contract rights or any | ||
interest therein.
| ||
(o) The term "revenues" means, with respect to any | ||
project, the rents, fees,
charges, interest, principal | ||
repayments, collections and other income or profit
derived | ||
therefrom.
| ||
(p) The term "higher education project" means, in the case | ||
of a private
institution of higher education, an educational | ||
facility to be acquired,
constructed, enlarged, remodeled, | ||
renovated, improved, furnished, or equipped,
or any | ||
combination thereof.
| ||
(q) The term "cultural institution project" means, in the | ||
case of a cultural
institution, a cultural facility to be | ||
acquired, constructed, enlarged,
remodeled, renovated, | ||
improved, furnished, or equipped, or any combination
thereof.
| ||
(r) The term "educational facility" means any property | ||
located within the
State, or any property located outside the | ||
State, provided that, if the property is located outside the |
State, it must be owned, operated, leased or managed by an | ||
entity located within the State or an entity affiliated with | ||
an entity located within the State, in each case
constructed | ||
or acquired before or after the effective date of this Act, | ||
which
is
or will be, in whole or in part, suitable for the | ||
instruction, feeding,
recreation or housing of students, the | ||
conducting of research or other work of
a
private institution | ||
of higher education, the use by a private institution of
| ||
higher education in connection with any educational, research | ||
or related or
incidental activities then being or to be | ||
conducted by it, or any combination
of the foregoing, | ||
including, without limitation, any such property suitable for
| ||
use as or in connection with any one or more of the following: | ||
an academic
facility, administrative facility, agricultural | ||
facility, assembly hall,
athletic facility, auditorium, | ||
boating facility, campus, communication
facility,
computer | ||
facility, continuing education facility, classroom, dining | ||
hall,
dormitory, exhibition hall, fire fighting facility, fire | ||
prevention facility,
food service and preparation facility, | ||
gymnasium, greenhouse, health care
facility, hospital, | ||
housing, instructional facility, laboratory, library,
| ||
maintenance facility, medical facility, museum, offices, | ||
parking area,
physical education facility, recreational | ||
facility, research facility, stadium,
storage facility, | ||
student union, study facility, theatre or utility.
| ||
(s) The term "cultural facility" means any property |
located within the State, or any property located outside the | ||
State, provided that, if the property is located outside the | ||
State, it must be owned, operated, leased or managed by an | ||
entity located within the State or an entity affiliated with | ||
an entity located within the State, in each case
constructed | ||
or acquired before or after the effective date of this Act, | ||
which
is or will be, in whole or in part, suitable for the | ||
particular purposes or
needs
of a cultural institution, | ||
including, without limitation, any such property
suitable for | ||
use as or in connection with any one or more of the following: | ||
an
administrative facility, aquarium, assembly hall, | ||
auditorium, botanical garden,
exhibition hall, gallery, | ||
greenhouse, library, museum, scientific laboratory,
theater or | ||
zoological facility, and shall also include, without | ||
limitation,
books, works of art or music, animal, plant or | ||
aquatic life or other items for
display, exhibition or | ||
performance. The term "cultural facility" includes
buildings | ||
on the National Register of Historic Places which are owned or
| ||
operated by nonprofit entities.
| ||
(t) "Private institution of higher education" means a | ||
not-for-profit
educational institution which is not owned by | ||
the State or any political
subdivision, agency, | ||
instrumentality, district or municipality thereof, which
is
| ||
authorized by law to provide a program of education beyond the | ||
high school
level
and which:
| ||
(1) Admits as regular students only individuals having |
a
certificate of graduation from a high school, or the | ||
recognized equivalent of
such a certificate;
| ||
(2) Provides an educational program for which it | ||
awards a
bachelor's degree, or provides an educational | ||
program, admission into which is
conditioned upon the | ||
prior attainment of a bachelor's degree or its equivalent,
| ||
for which it awards a postgraduate degree, or provides not | ||
less than a 2-year
program which is acceptable for full | ||
credit toward such a degree, or offers a
2-year program in | ||
engineering, mathematics, or the physical or biological
| ||
sciences
which is designed to prepare the student to work | ||
as a technician and at a
semiprofessional level in | ||
engineering, scientific, or other technological
fields
| ||
which require the understanding and application of basic | ||
engineering,
scientific, or mathematical principles or | ||
knowledge;
| ||
(3) Is accredited by a nationally recognized | ||
accrediting agency or
association or, if not so | ||
accredited, is an institution whose credits are
accepted, | ||
on transfer, by not less than 3 institutions which are so | ||
accredited,
for credit on the same basis as if transferred | ||
from an institution so
accredited, and holds an unrevoked | ||
certificate of approval under the Private
College Act from | ||
the Board of Higher Education, or is qualified as a
| ||
"degree granting institution" under the Academic Degree | ||
Act; and
|
(4) Does not discriminate in the admission of students | ||
on the basis
of race or color.
"Private institution of | ||
higher education" also includes any "academic
| ||
institution".
| ||
(u) The term "academic institution" means any | ||
not-for-profit institution
which
is not owned by the State or | ||
any political subdivision, agency,
instrumentality,
district | ||
or municipality thereof, which institution engages in, or | ||
facilitates
academic, scientific, educational or professional | ||
research or learning in a
field or fields of study taught at a | ||
private institution of higher education.
Academic institutions | ||
include, without limitation, libraries, archives,
academic, | ||
scientific, educational or professional societies, | ||
institutions,
associations or foundations having such | ||
purposes.
| ||
(v) The term "cultural institution" means any | ||
not-for-profit institution
which
is not owned by the State or | ||
any political subdivision, agency,
instrumentality,
district | ||
or municipality thereof, which institution engages in the | ||
cultural,
intellectual, scientific, educational or artistic | ||
enrichment of the people of
the State. Cultural institutions | ||
include, without limitation, aquaria,
botanical societies, | ||
historical societies, libraries, museums, performing arts
| ||
associations or societies, scientific societies and zoological | ||
societies.
| ||
(w) The term "affiliate" means, with respect to financing |
of an agricultural
facility or an agribusiness, any lender, | ||
any person, firm or corporation
controlled by, or under common | ||
control with, such lender, and any person, firm
or corporation | ||
controlling such lender.
| ||
(x) The term "agricultural facility" means land, any | ||
building or other
improvement thereon or thereto, and any | ||
personal properties deemed necessary or
suitable for use, | ||
whether or not now in existence, in farming, ranching, the
| ||
production of agricultural commodities (including, without | ||
limitation, the
products of aquaculture, hydroponics and | ||
silviculture) or the treating,
processing or storing of such | ||
agricultural commodities when such activities are
customarily | ||
engaged in by farmers as a part of farming and which land, | ||
building, improvement or personal property is located within | ||
the State, or is located outside the State, provided that, if | ||
such property is located outside the State, it must be owned, | ||
operated, leased, or managed by an entity located within the | ||
State or an entity affiliated with an entity located within | ||
the State.
| ||
(y) The term "lender" with respect to financing of an | ||
agricultural facility
or an agribusiness, means any federal or | ||
State chartered bank, Federal Land
Bank,
Production Credit | ||
Association, Bank for Cooperatives, federal or State
chartered | ||
savings and loan association or building and loan association, | ||
Small
Business
Investment Company or any other institution | ||
qualified within this State to
originate and service loans, |
including, but without limitation to, insurance
companies, | ||
credit unions and mortgage loan companies. "Lender" also means | ||
a
wholly owned subsidiary of a manufacturer, seller or | ||
distributor of goods or
services that makes loans to | ||
businesses or individuals, commonly known as a
"captive | ||
finance company".
| ||
(z) The term "agribusiness" means any sole proprietorship, | ||
limited
partnership, co-partnership, joint venture, | ||
corporation or cooperative which
operates or will operate a | ||
facility located within the State or outside the State, | ||
provided that, if any facility is located outside the State, | ||
it must be owned, operated, leased, or managed by an entity | ||
located within the State or an entity affiliated with an | ||
entity located within the State, that
is related to the
| ||
processing of agricultural commodities (including, without | ||
limitation, the
products of aquaculture, hydroponics and | ||
silviculture) or the manufacturing,
production or construction | ||
of agricultural buildings, structures, equipment,
implements, | ||
and supplies, or any other facilities or processes used in
| ||
agricultural production. Agribusiness includes but is not | ||
limited to the
following:
| ||
(1) grain handling and processing, including grain | ||
storage,
drying, treatment, conditioning, mailing and | ||
packaging;
| ||
(2) seed and feed grain development and processing;
| ||
(3) fruit and vegetable processing, including |
preparation, canning
and packaging;
| ||
(4) processing of livestock and livestock products, | ||
dairy products,
poultry and poultry products, fish or | ||
apiarian products, including slaughter,
shearing, | ||
collecting, preparation, canning and packaging;
| ||
(5) fertilizer and agricultural chemical | ||
manufacturing,
processing, application and supplying;
| ||
(6) farm machinery, equipment and implement | ||
manufacturing and
supplying;
| ||
(7) manufacturing and supplying of agricultural | ||
commodity
processing machinery and equipment, including | ||
machinery and equipment used in
slaughter, treatment, | ||
handling, collecting, preparation, canning or packaging
of | ||
agricultural commodities;
| ||
(8) farm building and farm structure manufacturing, | ||
construction
and supplying;
| ||
(9) construction, manufacturing, implementation, | ||
supplying or
servicing of irrigation, drainage and soil | ||
and water conservation devices or
equipment;
| ||
(10) fuel processing and development facilities that | ||
produce fuel
from agricultural commodities or byproducts;
| ||
(11) facilities and equipment for processing and | ||
packaging
agricultural commodities specifically for | ||
export;
| ||
(12) facilities and equipment for forestry product | ||
processing and
supplying, including sawmilling operations, |
wood chip operations, timber
harvesting operations, and | ||
manufacturing of prefabricated buildings, paper,
furniture | ||
or other goods from forestry products;
| ||
(13) facilities and equipment for research and | ||
development of
products, processes and equipment for the | ||
production, processing, preparation
or packaging of | ||
agricultural commodities and byproducts.
| ||
(aa) The term "asset" with respect to financing of any | ||
agricultural facility
or
any agribusiness, means, but is not | ||
limited to the following: cash crops or
feed on hand; | ||
livestock held for sale; breeding stock; marketable bonds and
| ||
securities; securities not readily marketable; accounts | ||
receivable; notes
receivable; cash invested in growing crops; | ||
net cash value of life insurance;
machinery and equipment; | ||
cars and trucks; farm and other real estate including
life | ||
estates and personal residence; value of beneficial interests | ||
in trusts;
government payments or grants; and any other | ||
assets.
| ||
(bb) The term "liability" with respect to financing of any | ||
agricultural
facility or any agribusiness shall include, but | ||
not be limited to the
following:
accounts payable; notes or | ||
other indebtedness owed to any source; taxes; rent;
amounts | ||
owed on real estate contracts or real estate mortgages; | ||
judgments;
accrued interest payable; and any other liability.
| ||
(cc) The term "Predecessor Authorities" means those | ||
authorities as described
in Section 845-75.
|
(dd) The term "housing project" means a specific work or | ||
improvement located within the State or outside the State and
| ||
undertaken
to provide residential dwelling accommodations, | ||
including the acquisition,
construction or rehabilitation of | ||
lands, buildings and community facilities and
in connection | ||
therewith to provide nonhousing facilities which are part of | ||
the
housing project, including land, buildings, improvements, | ||
equipment and all
ancillary facilities for use for offices, | ||
stores, retirement homes, hotels,
financial institutions, | ||
service, health care, education, recreation or research
| ||
establishments, or any other commercial purpose which are or | ||
are to be related
to a housing development, provided that any | ||
work or improvement located outside the State is owned, | ||
operated, leased or managed by an entity located within the | ||
State, or any entity affiliated with an entity located within | ||
the State. | ||
(ee) The term "conservation project" means any project | ||
including the acquisition, construction, rehabilitation, | ||
maintenance, operation, or upgrade that is intended to create | ||
or expand open space or to reduce energy usage through | ||
efficiency measures. For the purpose of this definition, "open | ||
space" has the definition set forth under Section 10 of the | ||
Illinois Open Land Trust Act.
| ||
(ff) The term "significant presence" means the existence | ||
within the State of the national or regional headquarters of | ||
an entity or group or such other facility of an entity or group |
of entities where a significant amount of the business | ||
functions are performed for such entity or group of entities. | ||
(gg) The term "municipal bond issuer" means the State or | ||
any other state or commonwealth of the United States, or any | ||
unit of local government, school district, agency or | ||
instrumentality, office, department, division, bureau, | ||
commission, college or university thereof located in the State | ||
or any other state or commonwealth of the United States. | ||
(hh) The term "municipal bond program project" means a | ||
program for the funding of the purchase of bonds, notes or | ||
other obligations issued by or on behalf of a municipal bond | ||
issuer. | ||
(ii) The term "participating lender" means any trust | ||
company, bank, savings bank, credit union, merchant bank, | ||
investment bank, broker, investment trust, pension fund, | ||
building and loan association, savings and loan association, | ||
insurance company, venture capital company, or other | ||
institution approved by the Authority which provides a portion | ||
of the financing for a project. | ||
(jj) The term "loan participation" means any loan in which | ||
the Authority co-operates with a participating lender to | ||
provide all or a portion of the financing for a project. | ||
(kk) The term "PACE Project" means an energy project as | ||
defined in Section 5 of the Property Assessed Clean Energy | ||
Act. | ||
(ll) The term "clean energy" means energy generation that |
is substantially free (90% or more) of carbon dioxide | ||
emissions by design or operations, or that otherwise | ||
contributes to the reduction in emissions of environmentally | ||
hazardous materials or reduces the volume of environmentally | ||
dangerous materials. | ||
(mm) The term "clean energy project" means the | ||
acquisition, construction, refurbishment, creation, | ||
development or redevelopment of any facility, equipment, | ||
machinery, real property, or personal property for use by the | ||
State or any unit of local government, school district, agency | ||
or instrumentality, office, department, division, bureau, | ||
commission, college, or university of the State, for use by | ||
any person or institution, public or private, for profit or | ||
not for profit, or for use in any trade or business, which the | ||
Authority determines will aid, assist, or encourage the | ||
development or implementation of clean energy in the State, or | ||
as otherwise contemplated by Article 850. | ||
(nn) The term "Climate Bank" means the Authority in the | ||
exercise of those powers conferred on it by this Act related to | ||
clean energy or clean water, drinking water, or wastewater | ||
treatment. | ||
(oo) "equity investment eligible community" and "eligible | ||
community" mean the geographic areas throughout Illinois that | ||
would most benefit from equitable investments by the State | ||
designed to combat discrimination. Specifically, the eligible | ||
communities shall be defined as the following areas: |
(1) R3 Areas as established pursuant to Section 10-40 | ||
of the Cannabis Regulation and Tax Act, where residents | ||
have historically been excluded from economic | ||
opportunities, including opportunities in the energy | ||
sector; and | ||
(2) Environmental justice communities, as defined by | ||
the Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, where residents have historically been subject | ||
to disproportionate burdens of pollution, including | ||
pollution from the energy sector. | ||
(pp) "Equity investment eligible person" and "eligible | ||
person" mean the persons who would most benefit from equitable | ||
investments by the State designed to combat discrimination. | ||
Specifically, eligible persons means the following people: | ||
(1) persons whose primary residence is in an equity | ||
investment eligible community; | ||
(2) persons who are graduates of or currently enrolled | ||
in the foster care system; or | ||
(3) persons who were formerly incarcerated. | ||
(qq) "Environmental justice community" means the | ||
definition of that term based on existing methodologies and | ||
findings used and as may be updated by the Illinois Power | ||
Agency and its program administrator in the Illinois Solar for | ||
All Program. | ||
(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
|
(20 ILCS 3501/801-40)
| ||
Sec. 801-40. In addition to the powers otherwise | ||
authorized by law and in
addition to the foregoing general | ||
corporate powers, the Authority shall also
have the following | ||
additional specific powers to be exercised in furtherance of
| ||
the purposes of this Act.
| ||
(a) The Authority shall have power (i) to accept grants, | ||
loans or
appropriations from the federal government or the | ||
State, or any agency or
instrumentality thereof, or, in the | ||
case of clean energy projects, any not-for-profit | ||
philanthropic or other charitable organization, public or | ||
private, to be used for the operating expenses of the
| ||
Authority,
or for any purposes of the Authority, including the | ||
making of direct loans of
such funds with respect to projects, | ||
and (ii) to enter into any agreement with
the federal | ||
government or the State, or any agency or instrumentality | ||
thereof,
in relationship to such grants, loans or | ||
appropriations.
| ||
(b) The Authority shall have power to procure and enter | ||
into contracts for
any
type of insurance and indemnity | ||
agreements covering loss or damage to property
from any cause, | ||
including loss of use and occupancy, or covering any other
| ||
insurable risk.
| ||
(c) The Authority shall have the continuing power to issue | ||
bonds for its
corporate purposes. Bonds may be issued by the | ||
Authority in one or more series
and may provide for the payment |
of any interest deemed necessary on such bonds,
of the costs of | ||
issuance of such bonds, of any premium on any insurance, or of
| ||
the cost of any guarantees, letters of credit or other similar | ||
documents, may
provide for the funding of the reserves deemed | ||
necessary in connection with
such bonds, and may provide for | ||
the refunding or advance refunding of any bonds
or
for | ||
accounts deemed necessary in connection with any purpose of | ||
the Authority.
The bonds may bear interest payable at any time | ||
or times and at any rate or
rates, notwithstanding any other | ||
provision of law to the contrary, and such
rate or rates may be | ||
established by an index or formula which may be
implemented or
| ||
established by persons appointed or retained therefor by the | ||
Authority, or may
bear no interest or may bear interest | ||
payable at maturity or upon redemption
prior to maturity, may | ||
bear such date or dates, may be payable at such time or
times | ||
and at such place or places, may mature at any time or times | ||
not later
than 40 years from the date of issuance, may be sold | ||
at public or private sale
at such time or times and at such | ||
price or prices, may be secured by such
pledges, reserves, | ||
guarantees, letters of credit, insurance contracts or other
| ||
similar credit support or liquidity instruments, may be | ||
executed in such
manner, may be subject to redemption prior to | ||
maturity, may provide for the
registration of the bonds, and | ||
may be subject to such other terms and
conditions all as may
be | ||
provided by the resolution or indenture authorizing the | ||
issuance of such
bonds. The holder or holders of any bonds |
issued by the Authority may bring
suits at law or proceedings | ||
in equity to compel the performance and observance
by any | ||
person or by the Authority or any of its agents or employees of | ||
any
contract or covenant made with the holders of such bonds | ||
and to compel such
person or the Authority and any of its | ||
agents or employees to perform any
duties
required to be | ||
performed for the benefit of the holders of any such bonds by
| ||
the provision of the resolution authorizing their issuance, | ||
and to enjoin such
person or the Authority and any of its | ||
agents or employees from taking any
action in conflict with | ||
any such contract or covenant.
Notwithstanding the form and | ||
tenor of any such bonds and in the absence of any
express | ||
recital on the face thereof that it is non-negotiable, all | ||
such bonds
shall be negotiable instruments. Pending the | ||
preparation and execution of any
such bonds, temporary bonds | ||
may be issued as provided by the resolution.
The bonds shall be | ||
sold by the Authority in such manner as it shall determine.
The | ||
bonds may be secured as provided in the authorizing resolution | ||
by the
receipts, revenues, income and other available funds of | ||
the Authority and by
any amounts derived by the Authority from | ||
the loan agreement or lease agreement
with respect to the | ||
project or projects; and bonds may be issued as general
| ||
obligations of the Authority payable from such revenues, funds | ||
and obligations
of the Authority as the bond resolution shall | ||
provide, or may be issued as
limited obligations with a claim | ||
for payment solely from such revenues, funds
and obligations |
as the bond resolution shall provide. The Authority may grant | ||
a
specific pledge or assignment of and lien on or security | ||
interest in such
rights, revenues, income, or amounts and may | ||
grant a specific pledge or
assignment of and lien on or | ||
security interest in any reserves, funds or
accounts | ||
established in the resolution authorizing the issuance of | ||
bonds. Any
such pledge, assignment, lien or security interest | ||
for the benefit of the
holders of the Authority's bonds shall | ||
be valid and binding from the time the
bonds are issued without | ||
any physical delivery or further act, and shall be
valid and | ||
binding as against and prior to the claims of all other parties
| ||
having claims against the Authority or any other person | ||
irrespective of whether
the
other parties have notice of the | ||
pledge, assignment, lien or security interest.
As evidence of | ||
such pledge, assignment, lien and security interest, the
| ||
Authority may execute and deliver a mortgage, trust agreement, | ||
indenture or
security agreement or an assignment thereof.
A | ||
remedy for any breach or default of the terms of any such | ||
agreement by the
Authority may be by mandamus proceedings in | ||
any court of competent jurisdiction
to compel the performance | ||
and compliance therewith, but the agreement may
prescribe by | ||
whom or on whose behalf such action may be instituted.
It is | ||
expressly understood that the Authority may, but need not, | ||
acquire title
to any project with respect to which it | ||
exercises its authority.
| ||
(d) With respect to the powers granted by this Act, the |
Authority may adopt
rules and regulations prescribing the | ||
procedures by which persons may apply for
assistance under | ||
this Act. Nothing herein shall be deemed to preclude the
| ||
Authority, prior to the filing of any formal application, from | ||
conducting
preliminary discussions and investigations with | ||
respect to the subject matter
of any prospective application.
| ||
(e) The Authority shall have power to acquire by purchase, | ||
lease, gift or
otherwise any property or rights therein from | ||
any person useful for its
purposes, whether improved for the | ||
purposes of any prospective project, or
unimproved. The | ||
Authority may also accept any donation of funds for its
| ||
purposes from any such source. The Authority shall have no | ||
independent power of
condemnation but may acquire any property | ||
or rights therein obtained upon
condemnation by any other | ||
authority, governmental entity or unit of local
government | ||
with such power.
| ||
(f) The Authority shall have power to develop, construct | ||
and improve either
under its own direction, or through | ||
collaboration with any approved applicant,
or to acquire | ||
through purchase or otherwise, any project, using for such
| ||
purpose the proceeds derived from the sale of its bonds or from | ||
governmental
loans or
grants, and to hold title in the name of | ||
the Authority to such projects.
| ||
(g) The Authority shall have power to lease pursuant to a | ||
lease agreement
any
project so developed and constructed or | ||
acquired to the approved tenant on such
terms and conditions |
as may be appropriate to further the purposes of this Act
and | ||
to maintain the credit of the Authority. Any such lease may | ||
provide for
either the Authority or the approved tenant to | ||
assume initially, in whole or in
part, the costs of | ||
maintenance, repair and improvements during the leasehold
| ||
period. In no case, however, shall the total rentals from any | ||
project during
any initial leasehold period or the total loan | ||
repayments to be made pursuant
to any loan agreement, be less | ||
than an amount necessary to return over such
lease
or loan | ||
period (1) all costs incurred in connection with the | ||
development,
construction, acquisition or improvement of the | ||
project and for repair,
maintenance and improvements thereto | ||
during the period of the lease or loan;
provided, however, | ||
that the rentals or loan repayments need not include costs
met | ||
through the use of funds other than those obtained by the | ||
Authority through
the issuance of its bonds or governmental | ||
loans; (2) a reasonable percentage
additive to be agreed upon | ||
by the Authority and the borrower or tenant to cover
a properly | ||
allocable portion of the Authority's general expenses, | ||
including,
but not limited to, administrative expenses, | ||
salaries and general insurance,
and
(3) an amount sufficient | ||
to pay when due all principal of, interest and
premium, if
any | ||
on, any bonds issued by the Authority with respect to the | ||
project. The
portion of total rentals payable under clause (3) | ||
of this subsection (g) shall
be deposited in such special | ||
accounts, including all sinking funds, acquisition
or |
construction funds, debt service and other funds as provided | ||
by any
resolution, mortgage or trust agreement of the | ||
Authority pursuant to which any
bond is issued.
| ||
(h) The Authority has the power, upon the termination of | ||
any leasehold
period
of any project, to sell or lease for a | ||
further term or terms such project on
such terms and | ||
conditions as the Authority shall deem reasonable and | ||
consistent
with the purposes of the Act. The net proceeds from | ||
all such sales and the
revenues or income from such leases | ||
shall be used to satisfy any indebtedness
of
the Authority | ||
with respect to such project and any balance may be used to pay
| ||
any expenses of the Authority or be used for the further | ||
development,
construction, acquisition or improvement of | ||
projects.
In the event any project is vacated by a tenant prior | ||
to the termination of the
initial leasehold period, the | ||
Authority shall sell or lease the facilities of
the project on | ||
the most advantageous terms available. The net proceeds of any
| ||
such disposition shall be treated in the same manner as the | ||
proceeds from sales
or the revenues or income from leases | ||
subsequent to the termination of any
initial leasehold period.
| ||
(i) The Authority shall have the power to make loans, or to | ||
purchase loan participations in loans made, to persons to | ||
finance a
project, to enter into loan agreements or agreements | ||
with participating lenders with respect thereto, and to accept
| ||
guarantees from persons of its loans or the resultant | ||
evidences of obligations
of the Authority.
|
(j) The Authority may fix, determine, charge and collect | ||
any premiums, fees,
charges, costs and expenses, including, | ||
without limitation, any application
fees, commitment fees, | ||
program fees, financing charges or publication fees from
any | ||
person in connection with its activities under this Act.
| ||
(k) In addition to the funds established as provided | ||
herein, the Authority
shall have the power to create and | ||
establish such reserve funds and accounts as
may be necessary | ||
or desirable to accomplish its purposes under this Act and to
| ||
deposit its available monies into the funds and accounts.
| ||
(l) At the request of the governing body of any unit of | ||
local government,
the
Authority is authorized to market such | ||
local government's revenue bond
offerings by preparing bond | ||
issues for sale, advertising for sealed bids,
receiving bids
| ||
at its offices, making the award to the bidder that offers the | ||
most favorable
terms or arranging for negotiated placements or | ||
underwritings of such
securities. The Authority may, at its | ||
discretion, offer for concurrent sale the
revenue bonds of | ||
several local governments. Sales by the Authority of revenue
| ||
bonds under this Section shall in no way imply State guarantee | ||
of such debt
issue. The Authority may require such financial | ||
information from participating
local governments as it deems | ||
necessary in order to carry out the purposes of
this | ||
subsection (1).
| ||
(m) The Authority may make grants to any county to which | ||
Division 5-37 of
the
Counties Code is applicable to assist in |
the financing of capital development,
construction and | ||
renovation of new or existing facilities for hospitals and
| ||
health care facilities under that Act. Such grants may only be | ||
made from funds
appropriated for such purposes from the Build | ||
Illinois Bond Fund.
| ||
(n) The Authority may establish an urban development | ||
action grant program
for
the purpose of assisting | ||
municipalities in Illinois which are experiencing
severe | ||
economic distress to help stimulate economic development | ||
activities
needed to aid in economic recovery. The Authority | ||
shall determine the types of
activities and projects for which | ||
the urban development action grants may be
used, provided that | ||
such projects and activities are broadly defined to include
| ||
all reasonable projects and activities the primary objectives | ||
of which are the
development of viable urban communities, | ||
including decent housing and a
suitable living environment, | ||
and expansion of economic opportunity, principally
for
persons | ||
of low and moderate incomes. The Authority shall enter into | ||
grant
agreements from monies appropriated for such purposes | ||
from the Build Illinois
Bond Fund. The Authority shall monitor | ||
the
use of the grants, and shall provide for audits of the | ||
funds as well as
recovery by the Authority of any funds | ||
determined to have been spent in
violation of this
subsection | ||
(n) or any rule or regulation promulgated hereunder. The | ||
Authority
shall provide technical assistance with regard to | ||
the effective use of the
urban development action grants. The |
Authority shall file an annual report to
the
General Assembly | ||
concerning the progress of the grant program.
| ||
(o) The Authority may establish a Housing Partnership | ||
Program whereby the
Authority provides zero-interest loans to | ||
municipalities for the purpose of
assisting in the financing | ||
of projects for the rehabilitation of affordable
multi-family | ||
housing for low and moderate income residents. The Authority | ||
may
provide such loans only upon a municipality's providing | ||
evidence that it has
obtained private funding for the | ||
rehabilitation project. The Authority shall
provide 3 State | ||
dollars for every 7 dollars obtained by the municipality from
| ||
sources other than the State of Illinois. The loans shall be | ||
made from monies
appropriated for such purpose from the Build | ||
Illinois Bond Fund. The total amount of loans available under | ||
the Housing
Partnership Program shall not exceed $30,000,000. | ||
State loan monies under this
subsection shall be used only for | ||
the acquisition and rehabilitation of
existing
buildings | ||
containing 4 or more dwelling units. The terms of any loan made | ||
by
the municipality under this subsection shall require | ||
repayment of the loan to
the municipality upon any sale or | ||
other transfer of the project. In addition, the Authority may | ||
use any moneys appropriated for such purpose from the Build | ||
Illinois Bond Fund, including funds loaned under this | ||
subsection and repaid as principal or interest, and investment | ||
income on such funds, to make the loans authorized by | ||
subsection (z), without regard to any restrictions or |
limitations provided in this subsection.
| ||
(p) The Authority may award grants to universities and | ||
research
institutions,
research consortiums and other | ||
not-for-profit entities for the purposes of:
remodeling or | ||
otherwise physically altering existing laboratory or research
| ||
facilities, expansion or physical additions to existing | ||
laboratory or research
facilities, construction of new | ||
laboratory or research facilities or
acquisition of modern | ||
equipment to support laboratory or research operations
| ||
provided that
such grants (i) be used solely in support of | ||
project and equipment acquisitions
which enhance technology | ||
transfer, and (ii) not constitute more than 60 percent
of the | ||
total project or acquisition cost.
| ||
(q) Grants may be awarded by the Authority to units of | ||
local government for
the
purpose of developing the appropriate | ||
infrastructure or defraying other costs
to
the local | ||
government in support of laboratory or research facilities | ||
provided
that such grants may not exceed 40% of the cost to the | ||
unit of local
government.
| ||
(r) In addition to the powers granted to the Authority | ||
under subsection (i), and in all cases supplemental to it, the | ||
Authority may establish a direct loan program to make loans | ||
to, or may purchase participations in loans made by | ||
participating lenders to,
individuals, partnerships, | ||
corporations, or other business entities for the purpose of | ||
financing an industrial
project, as defined in
Section 801-10 |
of this Act. For the purposes of such program
and not by way of | ||
limitation on any other program of the Authority, including, | ||
without limitation, programs established under subsection (i), | ||
the
Authority shall have the power to issue bonds, notes, or | ||
other evidences of
indebtedness including commercial paper for | ||
purposes of providing a fund of
capital from which it may make | ||
such loans. The Authority shall have the power
to use any | ||
appropriations from the State made especially for the | ||
Authority's direct loan program, or moneys at any time held by | ||
the Authority under this Act outside the State treasury in the | ||
custody of either the Treasurer of the Authority or a trustee | ||
or depository appointed by the Authority,
for additional | ||
capital to make such loans or purchase such loan | ||
participations, or for the
purposes of reserve funds or | ||
pledged funds which secure the Authority's
obligations of | ||
repayment of any bond, note or other form of indebtedness
| ||
established for the purpose of providing capital for which it | ||
intends to make
such loans or purchase such loan | ||
participations. For the purpose of obtaining such
capital, the | ||
Authority may also enter into agreements with financial
| ||
institutions, participating lenders, and other persons for the | ||
purpose of administering a loan participation program, selling | ||
loans or developing
a secondary market for such loans or loan | ||
participations.
Loans made under the direct loan program | ||
specifically established under this subsection (r), including | ||
loans under such program made by participating lenders in |
which the Authority purchases a participation, may be in an | ||
amount not to exceed $600,000
and shall be made for a portion | ||
of an industrial project which does
not exceed 50% of the total | ||
project. No loan may be made by the Authority
unless
approved | ||
by the affirmative vote of at least 8 members of the board. The
| ||
Authority shall establish procedures and publish rules which | ||
shall provide for
the submission, review, and analysis of each | ||
direct loan and loan participation application and which
shall | ||
preserve the ability of each board member and the Executive | ||
Director, as applicable, to reach an individual business
| ||
judgment regarding the propriety of each direct loan or loan | ||
participation. The collective
discretion of the board to | ||
approve or disapprove each loan shall be
unencumbered.
The | ||
Authority may establish and collect such fees and charges, | ||
determine and
enforce such terms and conditions, and charge | ||
such interest rates as it
determines to be necessary and | ||
appropriate to the successful administration of
the direct | ||
loan program, including purchasing loan participations. The | ||
Authority may require such interests in collateral
and such | ||
guarantees as it determines are necessary to protect the | ||
Authority's
interest in the repayment of the principal and | ||
interest of each loan and loan participation made under
the | ||
direct loan program. The restrictions established under this | ||
subsection (r) shall not be applicable to any loan or loan | ||
participation made under subsection (i) or to any loan or loan | ||
participation made under any other Section of this Act.
|
(s) The Authority may guarantee private loans to third | ||
parties up to a
specified dollar amount in order to promote | ||
economic development in this State.
| ||
(t) The Authority may adopt rules and regulations as may | ||
be necessary or
advisable to implement the powers conferred by | ||
this Act.
| ||
(u) The Authority shall have the power to issue bonds, | ||
notes or other
evidences
of indebtedness, which may be used to | ||
make loans to units of local government
which are authorized | ||
to enter into loan agreements and other documents and to
issue | ||
bonds, notes and other evidences of indebtedness for the | ||
purpose of
financing the protection of storm sewer outfalls, | ||
the construction of adequate
storm sewer outfalls, and the | ||
provision for flood protection of sanitary sewage
treatment | ||
plans, in counties that have established a stormwater | ||
management
planning committee in accordance with
Section | ||
5-1062 of the Counties Code. Any
such loan shall be made by the | ||
Authority pursuant to the provisions of
Section
820-5 to | ||
820-60 of this Act. The unit of local government shall pay back | ||
to the
Authority the principal amount of the loan, plus annual | ||
interest as determined
by the Authority. The Authority shall | ||
have the power, subject to appropriations
by the General | ||
Assembly, to subsidize or buy down a portion of the interest on
| ||
such loans, up to 4% per annum.
| ||
(v) The Authority may accept security interests as | ||
provided in
Sections 11-3
and 11-3.3 of the Illinois Public |
Aid Code.
| ||
(w) Moral Obligation. In the event that the Authority | ||
determines that monies
of the Authority will not be sufficient | ||
for the payment of the principal of and
interest on its bonds | ||
during the next State fiscal year, the Chairperson, as
soon as | ||
practicable, shall certify to the Governor the amount required | ||
by the
Authority to enable it to pay such principal of and | ||
interest on the bonds. The
Governor shall submit the amount so | ||
certified to the General Assembly as soon
as
practicable, but | ||
no later than the end of the current State fiscal year. This
| ||
subsection shall apply only to any bonds or notes as to which | ||
the Authority
shall have determined, in the resolution | ||
authorizing the issuance of the bonds
or notes, that this | ||
subsection shall apply. Whenever the Authority makes such a
| ||
determination, that fact shall be plainly stated on the face | ||
of the bonds or
notes and that fact shall also be reported to | ||
the Governor. In the event of a
withdrawal of moneys from a | ||
reserve fund established with respect to any issue
or issues | ||
of bonds of the Authority to pay principal or interest on those
| ||
bonds,
the Chairperson of the Authority, as soon as | ||
practicable, shall certify to the
Governor the amount required | ||
to restore the reserve fund to the level required
in the | ||
resolution or indenture securing those bonds. The Governor | ||
shall submit
the amount so certified to the General Assembly | ||
as soon as practicable, but no
later than the end of the | ||
current State fiscal year. The Authority shall obtain
written |
approval from the Governor for any bonds and notes to be issued | ||
under
this Section.
In addition to any other bonds authorized | ||
to be issued under
Sections 825-60, 825-65(e), 830-25 and | ||
845-5, the principal amount of Authority
bonds outstanding
| ||
issued under this
Section 801-40(w) or under 20 ILCS 3850/1-80 | ||
or 30 ILCS 360/2-6(c), which have
been
assumed by the | ||
Authority, shall not exceed $150,000,000. This subsection (w) | ||
shall in no way be applied to any bonds issued by the Authority | ||
on behalf of the Illinois Power Agency under Section 825-90 of | ||
this Act.
| ||
(x) The Authority may enter into agreements or contracts | ||
with any person necessary or appropriate to place the payment | ||
obligations of the Authority under any of its bonds in whole or | ||
in part on any interest rate basis, cash flow basis, or other | ||
basis desired by the Authority, including without limitation | ||
agreements or contracts commonly known as "interest rate swap | ||
agreements", "forward payment conversion agreements", and | ||
"futures", or agreements or contracts to exchange cash flows | ||
or a series of payments, or agreements or contracts, including | ||
without limitation agreements or contracts commonly known as | ||
"options", "puts", or "calls", to hedge payment, rate spread, | ||
or similar exposure; provided that any such agreement or | ||
contract shall not constitute an obligation for borrowed money | ||
and shall not be taken into account under Section 845-5 of this | ||
Act or any other debt limit of the Authority or the State of | ||
Illinois.
|
(y) The Authority shall publish summaries of projects and | ||
actions approved by the members of the Authority on its | ||
website. These summaries shall include, but not be limited to, | ||
information regarding the: | ||
(1) project; | ||
(2) Board's action or actions; | ||
(3) purpose of the project; | ||
(4) Authority's program and contribution; | ||
(5) volume cap; | ||
(6) jobs retained; | ||
(7) projected new jobs; | ||
(8) construction jobs created; | ||
(9) estimated sources and uses of funds; | ||
(10) financing summary; | ||
(11) project summary; | ||
(12) business summary; | ||
(13) ownership or economic disclosure statement; | ||
(14) professional and financial information; | ||
(15) service area; and | ||
(16) legislative district. | ||
The disclosure of information pursuant to this subsection | ||
shall comply with the Freedom of Information Act. | ||
(z) Consistent with the findings and declaration of policy | ||
set forth in item (j) of Section 801-5 of this Act, the | ||
Authority shall have the power to make loans to the Police | ||
Officers' Pension Investment Fund authorized by Section |
22B-120 of the Illinois Pension Code and to make loans to the | ||
Firefighters' Pension Investment Fund authorized by Section | ||
22C-120 of the Illinois Pension Code. Notwithstanding anything | ||
in this Act to the contrary, loans authorized by Section | ||
22B-120 and Section 22C-120 of the Illinois Pension Code may | ||
be made from any of the Authority's funds, including, but not | ||
limited to, funds in its Illinois Housing Partnership Program | ||
Fund, its Industrial Project Insurance Fund, or its Illinois | ||
Venture Investment Fund. | ||
(Source: P.A. 100-919, eff. 8-17-18; 101-610, eff. 1-1-20.)
| ||
(20 ILCS 3501/Art. 850 heading new) | ||
ARTICLE 850 | ||
GENERAL PROVISIONS | ||
(20 ILCS 3501/850-5 new) | ||
Sec. 850-5. Climate Bank. The General Assembly designates | ||
the Authority as the Climate Bank to aid in all respects with | ||
providing financial assistance, programs, and products to | ||
finance and otherwise develop and facilitate opportunities to | ||
develop clean energy and provide clean water, drinking water, | ||
and wastewater treatment in the State. Nothing in this Section | ||
shall be deemed to supersede powers and regulatory duties | ||
conferred to other State agencies or governmental units. | ||
(20 ILCS 3501/850-10 new) |
Sec. 850-10. Powers and duties. | ||
(a) The Authority shall have the powers enumerated in this | ||
Act to assist in the development and implementation of clean | ||
energy in the State. The powers enumerated in this Article | ||
shall be in addition to all other powers of the Authority | ||
conferred in this Act, including those related to clean energy | ||
and the provision of clean water, drinking water, and | ||
wastewater treatment. The powers of the Authority to issue | ||
bonds, notes, and other obligations to finance loans | ||
administered by the Illinois Environmental Protection Agency | ||
under the Public Water Supply Loan Program or the Water | ||
Pollution Control Loan Program or other similar programs shall | ||
not be limited or otherwise affected by this amendatory Act of | ||
the 102nd General Assembly. | ||
(b) In its role as the Climate Bank of the State, the | ||
Authority shall have the power to: (i) administer programs and | ||
funds appropriated by the General Assembly for clean energy | ||
projects in eligible communities and environmental justice | ||
communities or owned by eligible persons, (ii) support | ||
investment in the clean energy and clean water, drinking | ||
water, and wastewater treatment, (iii) support and otherwise | ||
promote investment in clean energy projects to foster the | ||
growth, development, and commercialization of clean energy | ||
projects and related enterprises, and (iv) stimulate demand | ||
for clean energy and the development of clean energy projects. | ||
(c) In addition to, and not in limitation of, any other |
power of the Authority set forth in this Section or any other | ||
provisions of the general statutes, the Authority shall have | ||
and may exercise the following powers in furtherance of or in | ||
carrying out its clean energy powers and purposes: | ||
(1) To enter into joint ventures and invest in and | ||
participate with any person, including, without | ||
limitation, government entities and private corporations, | ||
engaged primarily in the development of clean energy | ||
projects, provided that members of the Authority or | ||
officers may serve as directors, members, or officers of | ||
any such business entity, and such service shall be deemed | ||
to be in the discharge of the duties or within the scope of | ||
the employment of any such member or officer, or Authority | ||
or officers, as the case may be, so long as such member or | ||
officer does not receive any compensation or direct or | ||
indirect financial benefit as a result of serving in such | ||
role. | ||
(2) To utilize funding sources, including, but not | ||
limited to: | ||
(A) funds repurposed from existing programs | ||
providing financing support for clean energy projects, | ||
provided any transfer of funds from such existing | ||
programs shall be subject to approval by the General | ||
Assembly and shall be used for expenses of financing, | ||
grants, and loans; | ||
(B) any federal funds that can be used for clean |
energy purposes; | ||
(C) charitable gifts, grants, and contributions as | ||
well as loans from individuals, corporations, | ||
university endowment funds, and philanthropic | ||
foundations for clean energy projects or for the | ||
provision of clean water, drinking water, and | ||
wastewater treatment; and | ||
(D) earnings and interest derived from financing | ||
support activities for clean energy projects financed | ||
by the Authority. | ||
(3) To enter into contracts with private sources to | ||
raise capital. | ||
(d) The Authority may finance working capital, refinance | ||
outstanding indebtedness of any person, and otherwise assist | ||
in the investment of equity from any source, public or | ||
private, in connection with clean energy projects or any other | ||
projects authorized by this Act. | ||
(e) The Authority may assess reasonable fees on its | ||
financing activities to cover its reasonable costs and | ||
expenses, as determined by the Authority. | ||
(f) The Authority shall make information regarding the | ||
rates, terms and conditions for all of its financing support | ||
transactions available to the public for inspection, including | ||
formal annual reviews by both a private auditor and the | ||
Comptroller, and providing details to the public on the | ||
Internet, provided public disclosure shall be restricted for |
patentable ideas, trade secrets, and proprietary or | ||
confidential commercial or financial information, disclosure | ||
of which may cause commercial harm to a nongovernmental | ||
recipient of such financing support and for other information | ||
exempt from public records disclosure pursuant to Section | ||
1-210. | ||
(20 ILCS 3501/850-15 new) | ||
Sec. 850-15. Purposes; Climate Bank. In its role as the | ||
Climate Bank for the State, the Authority shall consider the | ||
following purposes: | ||
(1) the distribution of the benefits of clean energy | ||
in an equitable manner, including by evaluating benefits | ||
to eligible communities and equity investment eligible | ||
persons; | ||
(2) making clean energy accessible to all, especially | ||
eligible persons, through financing opportunities and | ||
grants for minority-owned businesses, as defined in the | ||
Business Enterprise for Minorities, Women, and Persons | ||
with Disabilities Act, and for low-income communities, | ||
eligible communities, environmental justice communities, | ||
and the businesses that serve these communities; and | ||
(3) accelerating the investment of private capital | ||
into clean energy projects in a manner reflective of the | ||
geographic, racial, ethnic, gender, and income-level | ||
diversity of the State. |
Article 10. Energy Community Reinvestment Act | ||
Section 10-1. Short title. This Article may be cited as | ||
the
Energy Community Reinvestment Act. References in this | ||
Article
to "this Act" mean this Article.
| ||
Section 10-5. Findings. The General Assembly finds that, | ||
as
part of putting Illinois on a path to 100% renewable energy,
| ||
the State of Illinois should ensure a just transition to that
| ||
goal, providing support for the transition of Illinois'
| ||
communities and workers impacted by closures or reduced use of
| ||
fossil fuel power plants, nuclear power plants, or coal mines
| ||
by allocating new economic development resources for business
| ||
tax incentives, workforce training, site clean-up and reuse,
| ||
and local tax revenue replacement.
| ||
The General Assembly finds and declares that the health,
| ||
safety, and welfare of the people of this State are dependent
| ||
upon a healthy economy and vibrant communities; that the
| ||
closure of fossil fuel power plants, nuclear power plants, and
| ||
coal mines across this State have a significant impact on | ||
their
surrounding communities; that the expansion of renewable
| ||
energy creates job growth and contributes to the health,
| ||
safety, and welfare of the people of this State; that the
| ||
continual encouragement, development, growth, and expansion of
| ||
renewable energy within this State requires a cooperative and
|
continuous partnership between government and the renewable
| ||
energy sector; and that there are certain areas in this State
| ||
that have lost, or will lose, jobs due to the closure of fossil
| ||
fuel power plants, nuclear power plants, and coal mines and
| ||
need the particular attention of government, labor, and the
| ||
residents of Illinois to help attract new investment into
| ||
these areas and directly aid the local community and its
| ||
residents.
| ||
Therefore, it is declared to be the purpose of this Act to
| ||
explore ways of stimulating the growth of new private
| ||
investment, including renewable energy investment, in this
| ||
State and to foster job growth in areas impacted by the closure
| ||
of coal energy plants, coal mines, and nuclear energy plants.
| ||
Section 10-10. Definitions.
As used in this Act, unless | ||
the
context otherwise requires:
| ||
"Agencies" or "State agencies" has the same meaning as
| ||
"State agencies" under Section 1-7 of the Illinois State
| ||
Auditing Act.
| ||
"Commission" means the Energy Transition Workforce
| ||
Commission created in Section 10-15.
| ||
"Department" means the Department of Commerce and Economic
| ||
Opportunity.
| ||
"Displaced energy worker" means an energy worker who has
| ||
lost employment, or is anticipated by the Department to lose
| ||
employment within the next 5 years, due to the reduced
|
operation or closure of a fossil fuel power plant, nuclear
| ||
power plant, or coal mine.
| ||
"Energy worker" means a person who has been employed
| ||
full-time for a period of one year or longer, and within the
| ||
previous 5 years, at a fossil fuel power plant, a nuclear power
| ||
plant, or a coal mine located within the State of Illinois,
| ||
whether or not they are employed by the owner of the power
| ||
plant or mine. Energy workers are considered to be full-time
| ||
if they work at least 35 hours per week for 45 weeks a year or
| ||
the 1,820 work-hour equivalent with vacations, paid holidays,
| ||
and sick time, but not overtime, included in this computation.
| ||
Classification of an individual as an energy worker continues
| ||
for 5 years from the latest date of employment or the effective
| ||
date of this Act, whichever is later.
| ||
"Environmental justice communities" shall have the meaning
| ||
set forth in Section 1-56 of the Illinois Power Agency Act and
| ||
the most recent Commission-approved long-term renewable
| ||
resources procurement plan of the Illinois Power Agency.
| ||
"Investor-owned electric generating plant" means an | ||
electric generating unit or fossil fuel-fired unit that has a | ||
nameplate capacity or serves a generator that has a nameplate | ||
capacity greater than 25Mwe and that produces electricity, | ||
including, but not limited to, coal-fired, coal-derived, | ||
oil-fired, natural gas-fired, and cogeneration units.
| ||
"Local labor market area" means an economically integrated
| ||
area within which individuals reside and find employment
|
within a reasonable distance of their places of residence or
| ||
can readily change jobs without changing their places of
| ||
residence.
| ||
"Low-income" means persons and families whose income does
| ||
not exceed 80% of area median income, adjusted for family size
| ||
and revised every 2 years.
| ||
"Renewable energy enterprise" means a company that is
| ||
engaged in the production, manufacturing, distribution, or
| ||
development of renewable energy resources and associated
| ||
technologies.
| ||
"Renewable energy project" means a project conducted by a
| ||
renewable energy enterprise for the purpose of generating
| ||
renewable energy resources or energy storage.
| ||
"Renewable energy resources" has the meaning set forth in
| ||
Section 1-10 of the Illinois Power Agency Act.
| ||
"Rule" has the meaning set forth in Section 1-70 of the
| ||
Illinois Administrative Procedure Act. | ||
Section 10-15. Energy Transition Workforce Commission.
| ||
(a) The Energy Transition Workforce Commission is hereby
| ||
created within the Department of Commerce and Economic
| ||
Opportunity.
| ||
(b) The Commission shall consist of the following members:
| ||
(1) the Director of Commerce and Economic Opportunity;
| ||
(2) the Director of Labor, or his or her designee, who
| ||
shall serve as chairperson; |
(3) 5 members appointed by the Governor, with the
| ||
advice and consent of the Senate, of which at least one
| ||
shall be a representative of a local labor organization,
| ||
at least one shall be a resident of an environmental
| ||
justice community, at least one shall be a representative
| ||
of a national labor organization, and at least one shall
| ||
be a representative of the administrator of workforce
| ||
training programs created by this Act. Designees shall be | ||
appointed within 60 days after a vacancy; and | ||
(4) the 3 Regional Administrators selected under | ||
Section 5-15 of the Energy Transition Act. | ||
(c) Members of the Commission shall serve without
| ||
compensation, but may be reimbursed for necessary expenses
| ||
incurred in the performance of their duties from funds
| ||
appropriated for that purpose. The Department of Commerce and
| ||
Economic Opportunity shall provide administrative support to
| ||
the Commission.
| ||
(d) Within 240 days after the effective date of this Act, | ||
and in consultation with the Department of Revenue and the | ||
Environmental Protection Agency,
the Commission shall produce | ||
an Energy Transition Workforce
Report regarding the | ||
anticipated impact of the energy
transition and a | ||
comprehensive set of recommendations to
address changes to the | ||
Illinois workforce during the period of
2020 through 2050, or | ||
a later year. The report shall contain
the following elements, | ||
designed to be used for the programs
created in this Act:
|
(1) Information related to the impact on current
| ||
workers, including:
| ||
(A) a comprehensive accounting of all employees
| ||
who currently work in fossil fuel energy generation,
| ||
nuclear energy generation, and coal mining in the
| ||
State; upon receipt of the employee's written | ||
authorization for the employer's release of such | ||
information to the Commission, this shall include | ||
information on their
location, employer, salary | ||
ranges, full-time or
part-time status, nature of their | ||
work, educational
attainment, union status, and other | ||
factors the
Commission finds relevant; | ||
(B) the anticipated schedule of closures of fossil
| ||
fuel power plants, nuclear power plants, and coal
| ||
mines across the State; when information is
| ||
unavailable to provide exact data, the report shall
| ||
include approximations based upon the best available
| ||
information;
and | ||
(C) an estimate of worker impacts due to scheduled
| ||
closures, including layoffs, early retirements, salary
| ||
changes, and other factors the Commission finds
| ||
relevant.
| ||
(2) Information regarding impact on communities and
| ||
local governments, including:
| ||
(A) changes in the revenue for units of local
| ||
government in areas that currently or recently have
|
had a closure or reduction in operation of a fossil
| ||
fuel power plant, nuclear power plant, coal mine, or
| ||
related industry;
| ||
(B) environmental impacts in areas that currently
| ||
or recently have had fossil fuel power plants, coal
| ||
mines, nuclear power plants, or related industry; and
| ||
(C) economic impacts of the energy transition,
| ||
including, but not limited to, the supply chain
| ||
impacts of the energy transition shift toward new
| ||
energy sources across the State.
| ||
(3) Information on emerging industries and State
| ||
economic development opportunities in regions that have
| ||
historically been the site of fossil fuel power plants,
| ||
nuclear power plants, or coal mining.
| ||
(e) The Department shall periodically review its findings
| ||
in the developed reports and make modifications to the report
| ||
and programs based on new findings. The Department shall
| ||
conduct a comprehensive reevaluation of the report, and
| ||
publish a modified version, on each
of the following years | ||
following initial publication: 2023;
2027; 2030; 2035; 2040; | ||
and any year thereafter which the
Department determines is | ||
necessary or prudent.
| ||
Section 10-20. Energy Transition Community Grants.
| ||
(a) Subject to appropriation, the Department shall | ||
establish an Energy Transition Community Grant Program to |
award grants to promote economic development in eligible | ||
communities.
| ||
(b) Funds shall be made available from the Energy | ||
Transition Assistance Fund to the Department to provide these | ||
grants.
| ||
(c) Communities eligible to receive these grants must meet | ||
one or more of the following:
| ||
(1) the area contains a fossil fuel or nuclear power | ||
plant that was retired from service or has significantly | ||
reduced service within 6 years before the application for | ||
designation or will be retired or have service | ||
significantly reduced within 6 years following the | ||
application for designation;
| ||
(2) the area contains a coal mine that was closed or | ||
had operations significantly reduced within 6 years before | ||
the application for designation or is anticipated to be | ||
closed or have operations significantly reduced within 6 | ||
years following the application for designation; or
| ||
(3) the area contains a nuclear power plant that was | ||
decommissioned, but continued storing nuclear waste before | ||
the effective date of this Act.
| ||
(d) Local units of governments in eligible areas may join | ||
with any other local unit of government, economic development | ||
organization, local educational institutions, community-based | ||
groups, or with any number or combination thereof to apply for | ||
the Energy Transition Community Grant.
|
(e) To receive grant funds, an eligible community must | ||
submit an application to the Department, using a form | ||
developed by the Department.
| ||
(f) For grants awarded to counties or other entities that | ||
are not the city that hosts or has hosted the investor-owned | ||
electric generating plant, a resolution of support for the | ||
project from the city or cities that hosts or has hosted the | ||
investor-owned electric generating plant is required to be | ||
submitted with the application.
| ||
(g) Grants must be used to plan for or address the economic | ||
and social impact on the community or region of plant | ||
retirement or transition.
| ||
(h) Project applications shall include community input and | ||
consultation with a diverse set of stakeholders, including, | ||
but not limited to: Regional Planning Councils, where | ||
applicable; economic development organizations; low-income or | ||
environmental justice communities; educational institutions; | ||
elected and appointed officials; organizations representing | ||
workers; and other relevant organizations.
| ||
(i) Grant costs are authorized to procure third-party | ||
vendors for grant writing and implementation costs, including | ||
for guidance and opportunities to apply for additional | ||
federal, State, local, and private funding resources. If the | ||
application is approved for pre-award, one-time reimbursable | ||
costs to apply for the Energy Transition Community Grant are | ||
authorized up to 3% of the award. |
(j) Units of local government that are taxing authorities | ||
for a nuclear plant that was decommissioned before January 1, | ||
2021 shall receive grants in proportional shares of $15 per | ||
kilogram of spent nuclear fuel stored at such a facility, less | ||
any payments made to such communities from the federal | ||
government based on the amount of waste stored at a | ||
decommissioned nuclear plant and any property tax payments. | ||
Section 10-25. Displaced Energy Workers Bill of Rights.
| ||
(a) The Department, in collaboration with the Department | ||
of Employment Security, shall have the authority to
implement | ||
the Displaced Energy Workers Bill of Rights, and
shall be | ||
responsible for the implementation of the Displaced
Energy | ||
Workers Bill of Rights programs and rights created
under this | ||
Section. For purposes of this Section, "closure" means the | ||
permanent shutdown of an electric generating unit or coal | ||
mine. The Department shall provide the following benefits to | ||
displaced energy workers listed in paragraphs (1) through (4) | ||
of this subsection:
| ||
(1) Advance notice of power plant or coal mine
| ||
closure.
| ||
(A) The Department shall notify all energy workers
| ||
of the upcoming closure of any qualifying facility as
| ||
far in advance of the scheduled closing date as it can.
| ||
The Department shall engage the employer and
energy | ||
workers no later than within 30 days of a closure or
|
deactivation notice being filed by the plant owner to | ||
the
Regional Transmission Organization of | ||
jurisdiction, within
30 days of the announced closure | ||
of a coal mine, within
30 days of a WARN notice being | ||
filed with the Department, or within 30 days of an | ||
announcement or requirement of cessation of operations | ||
of a plant or mine from another authoritative source, | ||
whichever is first.
| ||
(B) In providing the advance notice described in
| ||
this paragraph (1), the Department shall take
| ||
reasonable steps to ensure that all displaced energy
| ||
workers are educated on the various programs available
| ||
through the Department to assist with the energy
| ||
transition.
| ||
(2) Education on programs. The Department shall take | ||
reasonable steps to ensure that all displaced energy | ||
workers are
educated on the various programs available | ||
through the
Department to assist with the energy | ||
transition,
including, but not limited to, the Illinois | ||
Dislocated
Worker and Rapid Response programs. The | ||
Department will
develop an outreach strategy, workforce | ||
toolkit and quick
action plan to deploy when closures are | ||
announced. This
strategy will include identifying any | ||
additional resources
that may be needed to aid worker | ||
transitions that would
require contracting services.
| ||
(3) The Department shall provide information and
|
consultation to displaced energy workers on various
| ||
employment and educational opportunities available to
| ||
them, supportive services, and advise workers on which
| ||
opportunities meet their skills, needs, and preferences.
| ||
(A) Available services will include reemployment
| ||
services, training services, work-based learning
| ||
services, and financial and retirement planning
| ||
support.
| ||
(B) The Department will provide skills matching as
| ||
part of career counseling services to enable
| ||
assessment of the displaced energy worker's skills and
| ||
map those skills to emerging occupations in the region
| ||
or nationally, or both, depending on the displaced
| ||
worker's preferences.
| ||
(C) For energy workers who may be interested in
| ||
entrepreneurial pursuits, the Department will connect
| ||
these individuals with their area Small Business
| ||
Development Center, procurement technical assistance
| ||
centers, and economic development organization to
| ||
engage in services, including, but not limited to,
| ||
business consulting, business planning, regulatory
| ||
compliance, marketing, training, accessing capital,
| ||
and government bid certification assistance.
| ||
(4) Financial planning services. Displaced energy
| ||
workers shall be entitled to services as described in the
| ||
energy worker programs in this subsection, including
|
financial planning services.
| ||
(b) Plant owners and the owners of coal mines
located in | ||
Illinois shall be required to comply with the
requirements set | ||
out in this subsection (b). The owners shall
be required to | ||
take the following actions:
| ||
(1) Provide written notice of deactivation or closure
| ||
filing with the Regional Transmission Organization of
| ||
jurisdiction to the Department within 48 hours, if
| ||
applicable.
| ||
(2) Provide employment information for energy workers;
| ||
90 days prior to the closure of an electric generating | ||
unit or
mine, the owners of the power plant or mine shall | ||
provide
energy workers information on whether there are | ||
employment
opportunities provided by their employer.
| ||
(3) Annually report to the Department on announced
| ||
closures of qualifying facilities. The report must include
| ||
information on expected closure date, number of employees,
| ||
planning processes, services offered for employees (such
| ||
as training opportunities) leading up to the closure, | ||
efforts made to retain employees through other employment
| ||
opportunities within the company, and any other
| ||
information that the Department requires in order to
| ||
implement this Section.
| ||
(4) Ninety days prior to closure date, provide a final | ||
closure
report to the Department that includes expected | ||
closure
date, number of employees and salaries, transition |
support
the company is providing to employee and | ||
timelines,
including assistance for training | ||
opportunities,
transportation support or child care | ||
resources to attend
training, career counseling, resume | ||
support, and others.
The closure report will be made | ||
available to the chief
elected official of each municipal | ||
and county government
within which the employment loss, | ||
relocation, or mass
layoff occurs. It shall not be made | ||
publicly available.
| ||
(5) Ninety days prior to closure date, provide
job | ||
descriptions for each employee at the plant or mine to
the | ||
Department and the entity providing career and
training | ||
counseling.
| ||
(6) Ninety days prior to closure date, make
available | ||
to the Department and the entity providing
career and | ||
training counseling any industry-related
certifications | ||
and on-the-job training the employee earned
to allow union | ||
training programs, community colleges, or
other | ||
certification programs to award credit for life
| ||
experiences in order to reduce the amount of time to
| ||
complete training, certificates, or degrees for the
| ||
dislocated employee.
| ||
Section 10-30. Displaced Energy Worker Dependent | ||
Transition Scholarship.
| ||
(a) Subject to appropriation, the benefits of this Section
|
shall be administered by and paid for out of funds made
| ||
available to the Illinois Student Assistance Commission.
| ||
(b) Any natural child, legally adopted child, or
stepchild | ||
of an eligible displaced energy worker who
possesses all | ||
necessary entrance requirements shall, upon
application and | ||
proper proof, be awarded a transition
scholarship consisting | ||
of the equivalent of one calendar year
of full-time | ||
enrollment, including summer terms, to the
State-supported | ||
Illinois institution of higher learning of his
or her choice.
| ||
(c) As used in this Section, "eligible displaced energy
| ||
worker" means an energy worker who has lost employment due to
| ||
the reduced operation or closure of a fossil fuel power plant
| ||
or coal mine.
| ||
(d) Full-time enrollment means 12 or more semester hours
| ||
of courses per semester, or 12 or more quarter hours of courses
| ||
per quarter, or the equivalent thereof per term. Scholarships
| ||
utilized by dependents enrolled in less than full-time study
| ||
shall be computed in the proportion which the number of hours
| ||
so carried bears to full-time enrollment.
| ||
(e) Scholarships awarded under this Section may be used by
| ||
a child without regard to his or her age. The holder of a
| ||
Scholarship awarded under this Section shall be subject to all
| ||
examinations and academic standards, including the maintenance
| ||
of minimum grade levels, that are applicable generally to
| ||
other enrolled students at the Illinois institution of higher
| ||
learning where the scholarship is being used.
|
(f) An applicant is eligible for a scholarship under this
| ||
Section when the Commission finds the applicant:
| ||
(1) is the natural child, legally adopted child, or
| ||
stepchild of an eligible displaced energy worker; and
| ||
(2) in the absence of transition scholarship
| ||
assistance, will be deterred by financial considerations
| ||
from completing an educational program at the
| ||
State-supported Illinois institution of higher learning of
| ||
his or her choice.
| ||
(g) Funds may be made available from the Energy
Transition | ||
Assistance Fund to the Commission to provide these
grants.
| ||
(h) The scholarship shall only cover tuition and fees at | ||
the rates offered to students residing within the State or in | ||
the district, but shall not exceed the cost
equivalent of one | ||
calendar year of full-time enrollment,
including summer terms, | ||
at the University of Illinois. The
Commission shall determine | ||
the grant amount for each student.
| ||
Section 10-40. Energy Community Reinvestment Report.
| ||
Beginning 365 days after the effective date of this Act, and at | ||
least once each calendar year thereafter, the Department shall | ||
create or commission the creation of a report on the energy | ||
worker and transition programs created in this Act and publish | ||
the report on its website. The report shall, at a minimum, | ||
contain information on program metrics, the demographics of | ||
participants, program impact, and recommendations for future |
modifications to the services provided by the Department under | ||
these programs.
| ||
Section 10-70. Administrative review. All final | ||
administrative decisions, including, but not limited to,
| ||
funding allocation and rules issued by the Department under
| ||
this Act are subject to judicial review under the
| ||
Administrative Review Law. No action may be commenced under
| ||
this Section prior to 60 days after the complainant has given
| ||
notice in writing of the action to the Department.
| ||
Section 10-90. Repealer. This Act is repealed 24 years | ||
after the effective date of this Act. | ||
Article 15. Community Energy, Climate, and Jobs Planning Act | ||
Section 15-1. Short title. This Article may be cited as | ||
the Community Energy, Climate, and Jobs Planning Act. | ||
References in this Article to "this Act" mean this Article. | ||
Section 15-5. Findings. The General Assembly makes the | ||
following findings: | ||
(1) The health, welfare, and prosperity of Illinois | ||
residents require that Illinois take all steps possible to | ||
combat climate change, address harmful environmental | ||
impacts deriving from the generation of electricity, |
maximize quality job creation in the emerging clean energy | ||
economy, ensure affordable utility service, equitable and | ||
affordable access to transportation, and clean, safe, and | ||
affordable housing. | ||
(2) The achievement of these goals will depend on | ||
strong community engagement to ensure that programs and | ||
policy solutions meet the needs of disparate communities. | ||
(3) Ensuring that these goals are met without adverse | ||
impacts on utility bill affordability, housing | ||
affordability, and other essential services will depend on | ||
the coordination of policies and programs within local | ||
communities. | ||
Section 15-10. Definitions. As used in this Act: | ||
"Alternative energy improvement" means the installation or | ||
upgrade of electrical wiring, outlets, or charging stations to | ||
charge a motor vehicle that is fully or partially powered by | ||
electricity; photovoltaic, energy storage, or thermal | ||
resource; or any combination thereof. | ||
"Disadvantaged worker" means an individual who is defined | ||
as: (1) being homeless; (2) being a custodial single parent; | ||
(3) being a recipient of public assistance; (4) lacking a high | ||
school diploma or high school equivalency; (5) having a | ||
criminal record or other involvement in the criminal justice | ||
system; (6) suffering from chronic unemployment; (7) being | ||
previously in the child welfare system; or (8) being a |
veteran. | ||
"Energy efficiency improvement" means equipment, devices, | ||
or materials intended to decrease energy consumption or | ||
promote a more efficient use of electricity, natural gas, | ||
propane, or other forms of energy on property, including, but | ||
not limited to: | ||
(1) insulation in walls, roofs, floors, foundations, | ||
or heating and cooling distribution systems; | ||
(2) storm windows and doors, multi-glazed windows and | ||
doors, heat-absorbing or heat-reflective glazed and coated | ||
window and door systems, and additional glazing, | ||
reductions in glass area, and other window and door system | ||
modifications that reduce energy consumption; | ||
(3) automated energy control systems; | ||
(4) high efficiency heating, ventilating, or | ||
air-conditioning and distribution system modifications or | ||
replacements; | ||
(5) caulking, weather-stripping, and air sealing; | ||
(6) replacement or modification of lighting fixtures | ||
to reduce the energy use of the lighting system; | ||
(7) energy controls or recovery systems; | ||
(8) day lighting systems; | ||
(9) any energy efficiency project, as defined in | ||
Section 825-65 of the Illinois Finance Authority Act; and | ||
(10) any other installation or modification of | ||
equipment, devices, or materials approved as a utility |
cost-saving measure by the governing body. | ||
"Energy project" means the installation or modification of | ||
an alternative energy improvement, energy efficiency | ||
improvement, or water use improvement, or the acquisition, | ||
installation, or improvement of a renewable energy system that | ||
is affixed to a stabilized existing property, including new | ||
construction. | ||
"Environmental justice communities" means the proposed | ||
definition of that term based on existing methodologies and | ||
findings used by the Illinois Power Agency and its | ||
Administrator in its Illinois Solar for All Program. | ||
"Equity investment eligible community" or "eligible | ||
community" are synonymous and mean the geographic areas | ||
throughout Illinois which would most benefit from equitable | ||
investments by the State designed to combat discrimination and | ||
foster sustainable economic growth. Specifically, eligible | ||
communities shall be defined as the following areas: | ||
(1) R3 Areas as established pursuant to Section 10-40 | ||
of the Cannabis Regulation and Tax Act, where residents | ||
have historically been excluded from economic | ||
opportunities, including opportunities in the energy | ||
sector; and | ||
(2) Environmental justice communities, as defined by | ||
the Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, where residents have historically been subject | ||
to disproportionate burdens of pollution, including |
pollution from the energy sector. | ||
"Equity investment eligible person" or "eligible person" | ||
are synonymous and mean the persons who would most benefit | ||
from equitable investments by the State designed to combat | ||
discrimination and foster sustainable economic growth. | ||
Specifically, "eligible person" means the following people: | ||
(1) a person whose primary residence is in an equity | ||
investment eligible community; | ||
(2) a person who is a graduate of or currently | ||
enrolled in the foster care system; or | ||
(3) a person who was formerly incarcerated. | ||
"Governing body" means the county board or board of county | ||
commissioners of a county, the city council of a municipality, | ||
or the board of trustees of a village. | ||
"Local Employment Plan" means a bidding option that public | ||
agencies may include in requests for proposals to incentivize | ||
bidders to voluntarily plan to retain and create high-skilled | ||
local manufacturing jobs; invest in preapprenticeship, | ||
apprenticeship, and training opportunities; and develop | ||
family-sustaining career pathways into clean energy industries | ||
for disadvantaged workers in a specified local area. The Local | ||
Employment Plan only applies to work that is not financed with | ||
federal money. | ||
"Local unit of government" means a county, municipality, | ||
or village. | ||
"Natural climate solutions" means conservation, |
restoration, or improved land management actions that increase | ||
carbon storage or avoid greenhouse gas emissions on natural | ||
and working lands. | ||
"Nature-based approaches for climate adaptation" means | ||
actions that preserve, enhance, or expand functions provided | ||
by nature that increase capacity to manage adverse conditions | ||
created or exacerbated by climate change. "Nature-based | ||
approaches for climate adaptation" includes, but is not | ||
limited to, the restoration of native ecosystems, especially | ||
floodplains; installation of bioswales, rain gardens, and | ||
other green stormwater infrastructure; and practices that | ||
increase soil health and reduce urban heat island effects. | ||
"Public agency" means the State of Illinois or any of its | ||
government bodies and subdivisions, including the various | ||
counties, townships, municipalities, school districts, | ||
educational service regions, special road districts, public | ||
water supply districts, drainage districts, levee districts, | ||
sewer districts, housing authorities, and transit agencies. | ||
"Renewable energy resource" includes energy and its | ||
associated renewable energy credit or renewable energy credits | ||
from wind energy, solar thermal energy, geothermal energy, | ||
photovoltaic cells and panels, biodiesel, anaerobic digestion, | ||
and hydropower that does not involve new construction or | ||
significant expansion of hydropower dams. For purposes of this | ||
Act, landfill gas produced in the State is considered a | ||
renewable energy resource. "Renewable energy resource" does |
not include the incineration or burning of any solid material. | ||
"Renewable energy system" means a fixture, product, | ||
device, or interacting group of fixtures, products, or devices | ||
on the customer's side of the meter that use one or more | ||
renewable energy resources to generate electricity, and | ||
specifically includes any renewable energy project, as defined | ||
in Section 825-65 of the Illinois Finance Authority Act. | ||
"U.S. Employment Plan" means a bidding option that public | ||
agencies may include in requests for proposals to incentivize | ||
bidders to voluntarily plan to retain and create high-skilled | ||
U.S. manufacturing jobs; invest in preapprenticeship, | ||
apprenticeship, and training opportunities; and develop | ||
family-sustaining career pathways into clean energy industries | ||
for disadvantaged workers throughout the U.S. The U.S. | ||
Employment Plan only applies to work financed with federal | ||
Money. | ||
"Water use improvement" means any fixture, product, | ||
system, device, or interacting group thereof for or serving | ||
any property that has the effect of conserving water resources | ||
through improved water management, efficiency, or thermal | ||
resource. | ||
Section 15-15. Community Energy, Climate, and Jobs Plans; | ||
creation. | ||
(a) Pursuant to the procedures in Section 15-20, a local | ||
unit of government may establish Community Energy, Climate, |
and Jobs Plans and identify boundaries and areas covered by | ||
the Plans. | ||
(b) Community Energy, Climate, and Jobs Plans are intended | ||
to aid local governments in developing a comprehensive | ||
approach to combining different energy, climate, and jobs | ||
programs and funding resources to achieve complementary | ||
impact. An effective planning process may: | ||
(1) help communities discover ways that their local | ||
government, businesses, and residents can control their | ||
energy use and lower their bills; | ||
(2) ensure a cost-effective transition away from | ||
fossil fuels in the transportation sector; | ||
(3) expand access to workforce development and job | ||
training opportunities for disadvantaged workers in the | ||
emerging clean energy economy; | ||
(4) incentivize the creation and retention of quality | ||
Illinois jobs (when federal funds are not involved) in the | ||
emerging clean energy economy; | ||
(5) incentivize the creation and retention of quality | ||
U.S. jobs in the emerging clean energy economy; | ||
(6) promote economic development through improvements | ||
in community infrastructure, transit, and support for | ||
local business; | ||
(7) improve the health of Illinois communities, | ||
especially eligible communities, by reducing emissions, | ||
addressing existing brownfield areas, and promoting the |
integration of distributed energy resources; | ||
(8) enable greater customer engagement, empowerment, | ||
and options for energy services, and ultimately reduce | ||
utility bills for Illinoisans; | ||
(9) bring the benefits of grid modernization and the | ||
deployment of distributed energy resources to economically | ||
disadvantaged communities and eligible communities | ||
throughout Illinois; | ||
(10) support existing Illinois policy goals promoting | ||
energy efficiency, demand response, and investments in | ||
renewable energy resources; | ||
(11) enable communities to better respond to extreme | ||
heat and cold emergencies; | ||
(12) explore opportunities to expand and improve | ||
recreational amenities, wildlife habitat, flood | ||
mitigation, agricultural production, tourism, and similar | ||
co-benefits by deploying natural climate solutions and | ||
nature-based approaches for climate adaptation; and | ||
(13) ensure eligible persons, minorities, women, | ||
people with disabilities, and veterans meaningfully | ||
participate in the transition to a clean energy economy. | ||
(c) A Community Energy, Climate, and Jobs Plan may include | ||
discussion of: | ||
(1) the demographics of the community, including | ||
information on the mix of residential and commercial areas | ||
and populations, ages, languages, education, and workforce |
training, including an examination of the average utility | ||
bills paid within the community by class and zip code, the | ||
percentage and locations of individuals requiring energy | ||
assistance, and participation of community members in | ||
other assistance programs; | ||
(2) an examination of the community's energy use, for | ||
electricity, natural gas, transportation, and other fuels; | ||
(3) the geography of the community, including the | ||
amount of green space, brownfield sites, farmland, | ||
waterways, flood zones, heat islands, areas for potential | ||
development, location of critical infrastructure such as | ||
emergency response facilities, health care and education | ||
facilities, and public transportation routes; | ||
(4) information on economic development opportunities, | ||
commercial usage, and employment opportunities; | ||
(5) the current status of zero emission vehicles | ||
operated by or on behalf of public agencies within the | ||
community; and | ||
(6) other topics deemed applicable by the community. | ||
(d) A Community Energy, Climate, and Jobs Plan may address | ||
the following areas: | ||
(1) distributed energy resources, including energy | ||
efficiency, demand response, dynamic pricing, energy | ||
storage, and solar (thermal, rooftop, and community); | ||
(2) building codes, both commercial and residential; | ||
(3) alternative transportation funding; |
(4) transit options, including individual car | ||
ownership, ridesharing, buses, trains, bicycles, and | ||
pedestrian walkways; | ||
(5) community assets related to extreme heat and cold | ||
emergencies, such as cooling and warming centers; | ||
(6) public agency procurements of zero emission, | ||
electric vehicles; and | ||
(7) networks of natural resources and infrastructure. | ||
(e) A Community Energy, Climate, and Jobs Plan may | ||
conclude with proposals to: | ||
(1) increase the use of electricity as a | ||
transportation fuel at multi-unit dwellings; | ||
(2) maximize the system-wide benefits of | ||
transportation electrification; | ||
(3) direct public agencies to implement tools, such as | ||
the U.S. Employment Plan or a Local Employment Plan, to | ||
incentivize manufacturers in clean energy industries to | ||
create and retain quality jobs and invest in training, | ||
workforce development, and apprenticeship programs in | ||
connection to a major contract; | ||
(4) test innovative load management programs or rate | ||
structures associated with the use of electric vehicles by | ||
residential customers to achieve customer fuel cost | ||
savings relative to gasoline or diesel fuels and to | ||
optimize grid efficiency; | ||
(5) increase the integration of distributed energy |
resources in the community; | ||
(6) significantly expand the percentage of net-zero | ||
housing and net-zero buildings in the community; | ||
(7) improve utility bill affordability; | ||
(8) increase mass transit ridership; | ||
(9) decrease vehicle miles traveled; | ||
(10) reduce local emissions of greenhouse gases, NO x , | ||
SO x , particulate matter, and other air pollutants; | ||
(11) improve community assets that help residents | ||
respond to extreme heat and cold emergencies; and | ||
(12) expand opportunities for eligible persons, | ||
minorities, women, people with disabilities, and veterans | ||
to meaningfully participate in the transition to a clean | ||
energy economy. | ||
(f) A Community Energy, Climate, and Jobs Plan may be | ||
administered by one or more program administrators or the | ||
local unit of government. | ||
Section 15-20. Community Energy, Climate, and Jobs | ||
Planning process. | ||
(a) An effective planning process shall engage a diverse | ||
set of stakeholders in local communities, including: | ||
environmental justice organizations; economic development | ||
organizations; faith-based nonprofit organizations; | ||
educational institutions; interested residents; health care | ||
institutions; tenant organizations; housing institutions, |
developers, and owners; elected and appointed officials; and | ||
representatives reflective of each local community. | ||
(b) An effective planning process shall engage individual | ||
members of the community to the extent possible to ensure that | ||
the Plans receive input from as diverse a set of perspectives | ||
as possible. | ||
(c) Plan materials and meetings related to the Plan shall | ||
be translated into languages that reflect the makeup of the | ||
local community. | ||
(d) The planning process shall be conducted in an ethical, | ||
transparent fashion, and continually review its policies and | ||
practices to determine how best to meet its objectives. | ||
(e) The Community, Energy, and Climate Plans shall take | ||
into account other applicable or relevant economic development | ||
plans, such as a Comprehensive Economic Development Strategy, | ||
developed by a local unit of government, economic development | ||
organization, or Regional Planning Council. | ||
Section 15-25. Joint Community Energy, Climate, and Jobs | ||
Plans. A local unit of government may join with any other local | ||
unit of government, or with any public or private person, or | ||
with any number or combination thereof, under the | ||
Intergovernmental Cooperation Act, by contract or otherwise as | ||
may be permitted by law, for the implementation of a Community | ||
Energy, Climate, and Jobs Plan, in whole or in part. |
Section 15-90. Repealer. This Act is repealed 24 years | ||
after the effective date of this Act. | ||
Article 20. Illinois Clean Energy | ||
Jobs and Justice Fund Act | ||
Section 20-1. Short title. This Article may be cited as | ||
the Clean Energy Jobs and Justice Fund Act. References in this | ||
Article to "this Act" mean this Article. | ||
Section 20-5. Purpose. The purpose of this Act is to | ||
promote the health, welfare, and prosperity of all the | ||
residents of this State by ensuring access to financial | ||
products that allow Illinois residents and businesses to | ||
invest in clean energy. Furthermore, the Clean Energy Jobs and | ||
Justice Fund, is designed to fill the following purposes: | ||
(1) ensure that the benefits of the clean energy | ||
economy are equitably distributed; | ||
(2) make clean energy accessible to all through the | ||
provision of innovative financing opportunities and grants | ||
for Minority Business Enterprises (MBE) and other | ||
contractors of color, and for low-income, environmental | ||
justice, and BIPOC communities and the businesses that | ||
serve these communities; | ||
(3) prioritize the provision of public and private | ||
capital for clean energy investment to MBEs and other |
contractors of color, and to businesses serving | ||
low-income, environmental justice, and BIPOC communities; | ||
(4) accelerate the flow of private capital into clean | ||
energy markets; | ||
(5) assist low-income, environmental justice, and | ||
BIPOC community utility customers in paying for solar and | ||
energy efficiency upgrades through energy cost savings; | ||
(6) increase access to no-cost and low-cost loans for | ||
MBE and other contractors of color; | ||
(7) develop financing products designed to compensate | ||
for historical and structural barriers preventing | ||
low-income, environmental justice, and BIPOC communities | ||
from accessing traditional financing; | ||
(8) leverage private investment in clean energy | ||
projects and in projects developed by MBEs and other | ||
contractors of color; and | ||
(9) pursue financial self-sustainability through | ||
innovative financing products. | ||
Section 20-10. Definitions. As used in this Act: | ||
"Black, indigenous, and people of color" or "BIPOC" means | ||
people who are members of the groups described in | ||
subparagraphs (a) through (e) of paragraph (A) of subsection | ||
(1) of Section 2 of the Business Enterprise for Minorities, | ||
Women, and Persons with Disabilities Act. | ||
"Board" means the Board of Directors of the Clean Energy |
Jobs and Justice Fund. | ||
"Contractor of color" means a business entity that is at | ||
least 51% owned by one or more BIPOC persons, or in the case of | ||
a corporation, at least 51% of the corporation's stock is | ||
owned by one or more BIPOC persons, and the management and | ||
daily business operations of which are controlled by one or | ||
more of the BIPOC persons who own it. A contractor of color may | ||
also be a nonprofit entity with a board of directors composed | ||
of at least 51% BIPOC persons or a nonprofit entity certified | ||
by the State of Illinois to be minority-led. | ||
"Environmental justice communities" means the definition | ||
of that term based on existing methodologies and findings used | ||
by the Illinois Power Agency and its Administrator of the | ||
Illinois Solar for All Program. | ||
"Fund" means the Clean Energy Jobs and Justice Fund. | ||
"Low-income" means households whose income does not exceed | ||
80% of Area Median Income (AMI), adjusted for family size and | ||
revised every 5 years. | ||
"Low-income community" means a census tract where at least | ||
half of households are low-income. | ||
"Minority-owned business enterprise" or "MBE" means a | ||
business certified as such by an authorized unit of government | ||
or other authorized entity in Illinois. | ||
"Municipality" means a city, village, or incorporated | ||
town. | ||
"Person" means any natural person, firm, partnership, |
corporation, either domestic or foreign, company, association, | ||
limited liability company, joint stock company, or association | ||
and includes any trustee, receiver, assignee, or personal | ||
representative thereof. | ||
Section 20-15. Clean Energy Jobs and Justice Fund. | ||
(a) Not later than 30 days after the effective date of this | ||
Act, there shall be incorporated a nonprofit corporation to be | ||
known as the "Clean Energy Jobs and Justice Fund". | ||
(b) The Fund shall not be an agency or instrumentality of | ||
the State Government. | ||
(c) The full faith and credit of the State of Illinois | ||
shall not extend to the Fund. | ||
(d) The Fund shall: | ||
(1) Be an organization described in subsection (c) of | ||
Section 501 of the Internal Revenue Code of 1986 and | ||
exempt from taxation under subsection (a) of Section 501 | ||
of that Code; | ||
(2) Ensure that no part of the income or assets of the | ||
Fund shall inure to the benefit of any director, officer, | ||
or employee, except as reasonable compensation for | ||
services or reimbursement for expenses; and | ||
(3) Not contribute to or otherwise support any | ||
political party or candidate for elective office. | ||
Section 20-20. Board of Directors. |
(a) The Fund shall be managed by, and its powers, | ||
functions, and duties shall be exercised through, a Board to | ||
be composed of 11 members. The initial members of the Board | ||
shall be appointed by the Governor with the advice and consent | ||
of the Senate within 60 days after the effective date of this | ||
Act. Members of the Board shall be broadly representative of | ||
the communities that the Fund is designed to serve. Of such | ||
members: | ||
(1) at least one member shall be selected from each of | ||
the following geographic regions in the State: northeast, | ||
northwest, central, and southern; | ||
(2) at least 2 members shall have experience in | ||
providing energy-related services to low-income, | ||
environmental justice, or BIPOC communities; | ||
(3) at least one member shall own or be employed by an | ||
MBE or BIPOC-owned business focused on the deployment of | ||
clean energy; | ||
(4) at least one member shall be a policy or | ||
implementation expert in serving low-income, environmental | ||
justice or BIPOC communities or individuals, including | ||
environmental justice communities, BIPOC communities, | ||
formerly convicted persons, persons who are or were in the | ||
child welfare system, displaced energy workers, gender | ||
nonconforming and transgender individuals, or youth; and | ||
(5) at least one member shall be from a | ||
community-based organization with a specific mission to |
support racially and socioeconomically diverse | ||
environmental justice communities. | ||
(a-5) The terms of the initial members of the Board shall | ||
be as follows: | ||
(1) 5 members appointed and confirmed shall have | ||
initial 5-year terms; | ||
(2) 3 members appointed and confirmed shall have | ||
initial 4-year terms; and | ||
(3) 3 members appointed and confirmed shall have | ||
initial 3-year terms. | ||
(b) Subsequent composition and terms. | ||
(1) Except for the selection of the initial members of | ||
the Board for their initial terms under paragraph (1) of | ||
subsection (a) of this Section, the members of the Board | ||
shall be elected by the members of the Board. | ||
(2) A member of the Board shall be disqualified from | ||
voting for any position on the Board for which such member | ||
is a candidate. | ||
(3) All members elected pursuant to paragraph (2) of | ||
subsection (a) of this Section shall have a term of 5 | ||
years. | ||
(c) The members of the Board shall be broadly | ||
representative of the communities that the Fund is designed to | ||
serve and shall collectively have expertise in environmental | ||
justice, energy efficiency, distributed renewable energy, | ||
workforce development, finance and investments, clean |
transportation, and climate resilience. Of such members: | ||
(1) not fewer than 2 shall be selected from each of the | ||
following geographic regions in the State: northeast, | ||
northwest, central, and southern; | ||
(2) not fewer than 2 shall be from an MBE or | ||
BIPOC-owned business focused on the deployment of clean | ||
energy; | ||
(3) not fewer than 2 shall be from a community-based | ||
organization with a specific mission to support racially | ||
and socioeconomically diverse environmental justice | ||
communities; and | ||
(4) not fewer than 2 shall be from an organization | ||
specializing in providing energy-related services to | ||
low-income, environmental justice, or BIPOC communities. | ||
(5) Members of the Board can fulfill multiple | ||
criteria, such as representing the southern region and an | ||
MBE or BIPOC-owned business focused on the deployment of | ||
clean energy. | ||
(d) No officer or employee of the State or any other level | ||
of government may be appointed or elected as a member of the | ||
Board. | ||
(e) Seven members of the Board shall constitute a quorum. | ||
(f) The Board shall adopt, and may amend, such bylaws as | ||
are necessary for the proper management and functioning of the | ||
Fund. Such bylaws shall include designation of officers of the | ||
Fund and the duties of such officers. |
(g) No person who is an employee in any managerial or | ||
supervisory capacity, director, officer or agent or who is a | ||
member of the immediate family of any such employee, director, | ||
officer, or agent of any public utility is eligible to be a | ||
director. No director may hold any elective position, be a | ||
candidate for any elective position, be a State public | ||
official, be employed by the Illinois Commerce Commission, or | ||
be employed in a governmental position exempt from the | ||
Illinois Personnel Code. | ||
(h) No director, nor member of his or her immediate family | ||
shall, either directly or indirectly, be employed for | ||
compensation as a staff member or consultant of the Fund. | ||
(i) The Board shall hold regular meetings at least once | ||
every 3 months on such dates and at such places as it may | ||
determine. Meetings may be held by teleconference or | ||
videoconference. Special meetings may be called by the | ||
president or by a majority of the directors upon at least 7 | ||
days' advance written notice. The act of the majority of the | ||
directors, present at a meeting at which a quorum is present, | ||
shall be the act of the Board of Directors unless the act of a | ||
greater number is required by this Act or bylaws. A summary of | ||
the minutes of every Board meeting shall be made available to | ||
each public library in the State upon request and to | ||
individuals upon request. Board of Directors meeting minutes | ||
shall be posted on the Fund's website within 14 days after | ||
Board approval of the minutes. |
(j) A director may not receive any compensation for his or | ||
her services but shall be reimbursed for necessary expenses, | ||
including travel expenses incurred in the discharge of duties. | ||
The Board shall establish standard allowances for mileage, | ||
room and meals and the purposes for which such allowances may | ||
be made and shall determine the reasonableness and necessity | ||
for such reimbursements. | ||
(k) In the event of a vacancy on the Board, the Board of | ||
Directors shall appoint a temporary member, consistent with | ||
the requirements of the Board composition, to serve the | ||
remainder of the term for the vacant seat. | ||
(l) The Board shall adopt rules for its own management and | ||
government, including bylaws and a conflict of interest | ||
policy. | ||
(m) The Board of Directors of the Fund shall adopt written | ||
procedures for: | ||
(1) adopting an annual budget and plan of operations, | ||
including a requirement of Board approval before the | ||
budget or plan may take effect; | ||
(2) hiring, dismissing, promoting, and compensating | ||
employees of the Fund, including an affirmative action | ||
policy and a requirement of Board approval before a | ||
position may be created or a vacancy filled; | ||
(3) acquiring real and personal property and personal | ||
services, including a requirement of Board approval for | ||
any non-budgeted expenditure in excess of $5,000; |
(4) contracting for financial, legal, bond | ||
underwriting and other professional services, including | ||
requirements that the Fund (i) solicit proposals at least | ||
once every 3 years for each such service that it uses, and | ||
(ii) ensure equitable contracting with diverse suppliers; | ||
(5) issuing and retiring bonds, bond anticipation | ||
notes, and other obligations of the Fund; and | ||
(6) awarding loans, grants and other financial | ||
assistance, including (i) eligibility criteria, the | ||
application process and the role played by the Fund's | ||
staff and Board of Directors, and (ii) ensuring racial | ||
equity in the awarding of loans, grants, and other | ||
financial assistance. | ||
(n) The Board shall develop a robust set of metrics to | ||
measure the degree to which the program is meeting the | ||
purposes set forth in Section 20-5 of this Act, and especially | ||
measuring adherence to the racial equity purposes set forth | ||
there, and a reporting format and schedule to be adhered to by | ||
the Fund officers and staff. These metrics and reports shall | ||
be posted quarterly on the Fund's website. | ||
(o) The Board of Directors has the responsibility to make | ||
program adjustments necessary to ensure that the Clean Energy | ||
Jobs and Justice Fund is meeting the purposes set forth in this | ||
Act. Fund officers and staff and the Board of Directors are | ||
responsible for ensuring capital providers and Fund officers | ||
and staff, partners, and financial institutions are held to |
state and federal standards for ethics and predatory lending | ||
practices and shall immediately remove any offending products | ||
and sponsoring organizations from Fund participation. | ||
(p) The Board shall issue annually a report reviewing the | ||
activities of the Fund in detail and shall provide a copy of | ||
such report to the joint standing committees of the General | ||
Assembly having cognizance of matters relating to energy and | ||
commerce. The report shall be published on the Fund's website | ||
within 3 days after its submission to the General Assembly.
| ||
Section 20-25. Powers and duties. | ||
(a) The Fund shall endeavor to perform the following | ||
actions, but is not limited to these specified actions: | ||
(1) Develop programs to finance and otherwise support | ||
clean energy investment and projects as determined by the | ||
Fund in keeping with the purposes of this Act. | ||
(2) Support financing or other expenditures that | ||
promote investment in clean energy sources in order to (i) | ||
foster the development and commercialization of clean | ||
energy projects, including projects serving low-income, | ||
environmental justice, and BIPOC communities, and (ii) | ||
support project development by MBE and other contractors | ||
of color. | ||
(3) Prioritize the provision of public and private | ||
capital for clean energy investment to MBEs and other | ||
contractors of color, and to clean energy investment in |
low-income, environmental justice, and BIPOC communities. | ||
(4) Provide access to grants, no-cost, and low-cost | ||
loans to MBEs and other contractors of color, including | ||
those participating in the Clean Energy Primes Contractor | ||
Accelerator Program. | ||
(5) Provide financial assistance in the form of | ||
grants, loans, loan guarantees or debt and equity | ||
investments, as approved in accordance with written | ||
procedures. | ||
(6) Assume or take title to any real property, convey | ||
or dispose of its assets and pledge its revenues to secure | ||
any borrowing, convey or dispose of its assets and pledge | ||
its revenues to secure any borrowing, for the purpose of | ||
developing, acquiring, constructing, refinancing, | ||
rehabilitating or improving its assets or supporting its | ||
programs, provided each such borrowing or mortgage, unless | ||
otherwise provided by the Board or the Fund, shall be a | ||
special obligation of the Fund, which obligation may be in | ||
the form of bonds, bond anticipation notes, or other | ||
obligations that evidence an indebtedness to the extent | ||
permitted under this Act to fund, refinance and refund the | ||
same and provide for the rights of holders thereof, and to | ||
secure the same by pledge of revenues, notes and mortgages | ||
of others, and which shall be payable solely from the | ||
assets, revenues and other resources of the Fund and such | ||
bonds may be secured by a special capital reserve fund |
contributed to by the State. | ||
(7) Contract with community-based organizations to | ||
design and implement program marketing, communications, | ||
and outreach to potential users of the Fund's products, | ||
particularly potential users in low-income, environmental | ||
justice, and BIPOC communities. These contracts shall | ||
include funding to ensure that the contracted | ||
community-based organizations provide materials and | ||
outreach support, including payments for time and | ||
expenses, to other community organizations, professional | ||
organizations, and subcontractors that have an interest in | ||
the Fund's financial products. | ||
(8) Collect the following data and perform monthly and | ||
quarterly reporting to the Board in accordance with the | ||
reporting format and schedule developed by the Board of | ||
Directors: | ||
(A) baseline data on capital sources or providers, | ||
loan recipients, projects funded, loan terms, and | ||
other relevant financial data; | ||
(B) diversity and equity data, including race, | ||
gender, socioeconomic, and geographic region; and | ||
(C) program administration and servicing data.
| ||
These reports shall be published to the Fund's website | ||
monthly and quarterly. Reports published to the | ||
website may be anonymized to protect the data of | ||
individual program participants. |
(9) Have the purposes as provided by resolution of the | ||
Fund's Board of Directors, which purposes shall be | ||
consistent with this Section and Section 20-5 of this Act. | ||
No further action is required for the establishment of the | ||
Fund, except the adoption of a resolution for the Fund. | ||
(b) In addition to, and not in limitation of, any other | ||
power of the Fund set forth in this Section or any other | ||
provision of the general statutes, the Fund shall have and may | ||
exercise the following powers in furtherance of or in carrying | ||
out its purposes: | ||
(1) have perpetual succession as a body corporate and | ||
to adopt bylaws, policies, and procedures for the | ||
regulation of its affairs and the conduct of its business; | ||
(2) make and enter into all contracts and agreements | ||
that are necessary or incidental to the conduct of its | ||
business; | ||
(3) invest in, acquire, lease, purchase, own, manage, | ||
hold, sell, and dispose of real or personal property or | ||
any interest therein; | ||
(4) borrow money or guarantee a return to investors or | ||
lenders; | ||
(5) hold patents, copyrights, trademarks, marketing | ||
rights, licenses, or other rights in intellectual | ||
property; | ||
(6) employ such assistants, agents, and employees as | ||
may be necessary or desirable; establish all necessary or |
appropriate personnel practices and policies, including | ||
those relating to hiring, promotion, compensation and | ||
retirement, and engage consultants, attorneys, financial | ||
advisers, appraisers, and other professional advisers as | ||
may be necessary or desirable; | ||
(7) invest any funds not needed for immediate use or | ||
disbursement pursuant to investment policies adopted by | ||
the Fund's Board of Directors; | ||
(8) procure insurance against any loss or liability | ||
with respect to its property or business of such types, in | ||
such amounts and from such insurers as it deems desirable; | ||
(9) enter into joint ventures and invest in, and | ||
participate with any person, including, without | ||
limitation, government entities and private corporations, | ||
in the formation, ownership, management and operation of | ||
business entities, including stock and nonstock | ||
corporations, limited liability companies and general or | ||
limited partnerships, formed to advance the purposes of | ||
the Fund, provided members of the Board of Directors or | ||
officers or employees of the Fund may serve as directors, | ||
members or officers of any such business entity, and such | ||
service shall be deemed to be in the discharge of the | ||
duties or within the scope of the employment of any such | ||
director, officer or employee, as the case may be, so long | ||
as such director, officer or employee does not receive any | ||
compensation or financial benefit as a result of serving |
in such role; and | ||
(10) all other acts necessary or convenient to carry | ||
out the purposes of this Act. | ||
(c) Before making any loan, loan guarantee, or such other | ||
form of financing support or risk management for a clean | ||
energy project, the Fund shall develop standards to govern the | ||
administration of the Fund through rules, policies, and | ||
procedures that specify borrower eligibility, terms, and | ||
conditions of support, and other relevant criteria, standards, | ||
or procedures. | ||
(d) Funding sources specifically authorized include, but | ||
are not limited to: | ||
(1) funds repurposed from existing programs providing | ||
financing support for clean energy projects, provided any | ||
transfer of funds from such existing programs shall be | ||
subject to approval by the General Assembly and shall be | ||
used for expenses of financing, grants, and loans; | ||
(2) any federal funds that can be used for the | ||
purposes specified in this Act; | ||
(3) charitable gifts, grants, contributions, as well | ||
as loans from individuals, corporations, university | ||
endowment funds, and philanthropic foundations; and | ||
(4) earnings and interest derived from financing | ||
support activities for clean energy projects backed by the | ||
Fund. | ||
(e) The Fund may enter into agreements with private |
sources to raise capital. | ||
(f) The Fund may assess reasonable fees on its financing | ||
activities to cover its reasonable costs and expenses, as | ||
determined by the Board. | ||
(g) The Fund shall make information regarding the rates, | ||
terms and conditions for all of its financing support | ||
transactions available to the public for inspection, including | ||
formal annual reviews by both a private auditor conducted | ||
pursuant this Section and the Comptroller, and provide details | ||
to the public on the Internet, provided public disclosure | ||
shall be restricted for patentable ideas, trade secrets, | ||
proprietary or confidential commercial or financial | ||
information, disclosure of which may cause commercial harm to | ||
a nongovernmental recipient of such financing support and for | ||
other information exempt from public records disclosure. | ||
(h) The powers enumerated in this Section shall be | ||
interpreted broadly to effectuate the purposes established in | ||
this Section and shall not be construed as a limitation of | ||
powers. | ||
Section 20-30. Primary responsibilities in early program | ||
development. | ||
(a) Consistent with the goals of this Act, the Fund has the | ||
authority to pursue a broad range of financial products and | ||
services. In early development of products and services | ||
offered, the Fund should consider the following programs as |
its initial set of investment initiatives: | ||
(1) a solar lease, power-purchase agreement, or | ||
loan-to-own product specifically designed to complement | ||
and grow the Illinois Solar for All Program; | ||
(2) direct capitalization of contractors of color | ||
participating in or graduating from the workforce and | ||
business development programs established in the Energy | ||
Transition Act; | ||
(3) providing direct capitalization of community-based | ||
projects in environmental justice communities through | ||
upfront grants. Project applications should provide a | ||
community benefit, align with environmental justice | ||
communities, be in support of this Act's contractor and | ||
workforce development goals, and support upfront planning, | ||
development, and start up costs that often are not covered | ||
prior to applying for program incentives and other loan | ||
products; | ||
(4) providing loan loss reserve products to secure | ||
stable and low-interest financing for individual projects | ||
and portfolios consistent with the goals of this Act that | ||
would be otherwise unable to receive financing; and | ||
(5) offering financing and administrative services for | ||
municipal utilities and rural electric cooperatives to | ||
create their own version of the on-bill Equitable Energy | ||
Upgrade Program such as the Pay As You Save program | ||
developed by the Energy Efficiency Institute. |
Section 20-35. Executive director and fund management. | ||
(a) The executive director hired by the Board shall have | ||
the same qualifications as a director pursuant to subsections | ||
(d), (g), and (h) of Section 20-20 of this Act. The executive | ||
director may not be a candidate for the Board of Directors | ||
while serving as executive director. The executive director | ||
must have 5 or more years of experience in equitable and | ||
inclusive financing serving racially and socioeconomically | ||
diverse communities. | ||
(b) To hire the executive director, the Board shall adhere | ||
to any applicable State or federal law prohibiting | ||
discrimination in employment. | ||
(c) The Board shall require all applicants for the | ||
position of executive director of the Fund to file a financial | ||
statement consistent with requirements established by the | ||
Board. The Board shall require the executive director to file | ||
a current statement annually. | ||
(d) The Fund shall be administered by the executive | ||
director and the staff and overseen by the Board of Directors. | ||
Fund officers and staff shall receive training in how to best | ||
provide services and support to low-income, environmental | ||
justice, and BIPOC communities and on supporting borrowers | ||
with loan applications, loan underwriting, and loan services. | ||
Section 20-40. Dissolution. The Fund may dissolve or be |
dissolved under the General Not for Profit Corporation Act. | ||
Section 20-90. Repealer. This Act is repealed 24 years | ||
after the effective date of this Act. | ||
Article 90. | ||
Section 90-1. Legislative findings. The General Assembly | ||
finds and declares: | ||
(1) The overall objectives of regulation of the | ||
electric utility industry in this State, as expressed by | ||
the General Assembly in the Illinois Power Agency Act and | ||
the Public Utilities Act, include the provision of | ||
adequate, efficient, reliable, environmentally safe, and | ||
least-cost utility services at prices that accurately | ||
reflect the long-term cost of such services and that are | ||
equitable to all citizens. | ||
(2) For many years, a significant portion of the | ||
electricity consumed by consumers and businesses in this | ||
State, particularly in the downstate region, has been | ||
produced by large coal-fueled electric generating stations | ||
located in the downstate region. However, in recent years, | ||
the prices for electric generating capacity and energy | ||
available to coal-fueled electric generating stations | ||
located in the downstate region of this State have been | ||
insufficient to enable many electric generating facilities |
located within the downstate region to remain in | ||
operation, and have placed other electric generating | ||
stations at risk of closure. Changes in environmental | ||
regulations and, significantly, increasing concerns about | ||
the effects of carbon emissions on the climate, have also | ||
contributed to the retirement of coal-fueled generating | ||
stations in the downstate region. As a result, the vast | ||
majority of the coal-fueled generation located in | ||
Illinois, and particularly in the downstate region, has | ||
recently been retired or will be retired by no later than | ||
the end of 2027. | ||
(3) Reliable electric service at all times is | ||
essential to the functioning of a modern economy and of | ||
society in general. The health, welfare, and prosperity of | ||
Illinois citizens, including the attractiveness of the | ||
State of Illinois to business and industry, requires the | ||
availability of sufficient electric generating capacity, | ||
including energy storage capacity, to meet the demands of | ||
consumers and businesses in this State at all times. | ||
However, to a significant extent, electricity, when | ||
generated, cannot be stored for future use in any | ||
significant amount relative to the total amount of | ||
electricity that existing generating facilities can | ||
produce. Rather, for the most part, electricity must be | ||
produced instantaneously at the time and in the amount | ||
that it is demanded by residential and business consumers. |
The development of energy storage facilities provides some | ||
opportunity to store some amounts of electricity for use | ||
at later times; but energy storage facilities with | ||
sufficient capacity to deliver electricity to meet the | ||
demands of consumers in this State, 24 hours per day, 7 | ||
days per week on every day of the year, have not yet been | ||
built. | ||
(4) Both the Midcontinent Independent System Operator, | ||
Inc., which is the independent transmission system | ||
operator for downstate Illinois, and its Independent | ||
Market Monitor, have expressed concerns about the | ||
sufficiency of electric generating resources in downstate | ||
Illinois over the next several years, due primarily to the | ||
announced and anticipated retirements of coal-fueled | ||
electric generating facilities and concerns about how | ||
quickly and extensively new wind and solar generating | ||
facilities will be placed into service. Concerns have also | ||
been expressed, based on the intermittent nature of wind | ||
and solar generating facilities, as to whether the grid | ||
can operate reliably without sufficient dispatchable | ||
generation resources or significant additions of energy | ||
storage facilities to balance the output of renewable | ||
generating facilities. The General Assembly believes that | ||
the State cannot afford to find itself in a situation of | ||
insufficient electric generating resources to meet the | ||
needs of Illinois residential and business consumers 24 |
hours a day, 7 days a week. Thus, consistent with the | ||
overall objectives of the regulation of the electric | ||
utility industry in this State and the interests of the | ||
State in protecting the health and welfare of its | ||
residents, regulation should ensure that sufficient | ||
generating resources, including energy storage resources, | ||
are available to enable the electric utility grid to meet | ||
the demands of Illinois electricity consumers at all | ||
times. | ||
(5) Through previous enactments beginning in 2007, the | ||
General Assembly has provided financial incentives for the | ||
construction and operation of wind, solar, and other types | ||
of renewable energy facilities to serve load in Illinois. | ||
In such enactments, the General Assembly has recognized | ||
that providing opportunities to enter into long-term | ||
contracts for the purchase of renewable energy credits | ||
from renewable energy facilities creates incentives, and | ||
in fact is necessary, for the construction and operation | ||
of such resources. Developers typically cannot, | ||
financially, develop new, large-scale renewable energy | ||
generating resources without having secured long-term | ||
contracts for the renewable energy credits that the new | ||
facilities will produce. | ||
(6) The permitting and siting of new wind and solar | ||
generating facilities in Illinois are subject to local | ||
governmental control, and in many areas of this State, |
there has been strong opposition to the siting and | ||
construction of new utility-scale wind and solar | ||
generating facilities, which in turn has resulted in the | ||
denial of, or withdrawal of requests for, necessary | ||
approvals for some projects and the enactment of local | ||
zoning ordinances imposing requirements and restrictions | ||
that increase the costs and reduce the economic | ||
attractiveness of such projects. This has resulted in | ||
delay or cancellation of a number of renewable energy | ||
projects. This experience demonstrates the advantages of | ||
targeting the installation of new utility-scale renewable | ||
energy facilities at sites that are already suitable for | ||
installation of such facilities and can be readily | ||
permitted. | ||
(7) In light of the intermittent nature of many types | ||
of renewable energy facilities, such as wind and solar | ||
generation, the installation and operation of electricity | ||
storage facilities in conjunction with the installation | ||
and operation of renewable generation facilities can | ||
enhance the value of renewable energy resources to the | ||
electric grid. | ||
(8) The sites of many of the large coal-fueled | ||
electric generating stations located in the downstate | ||
region of this State that have recently been retired or | ||
announced for retirement, or are at risk of retirement, | ||
have existing infrastructure and other characteristics |
which make them suitable potential sites for development | ||
of new renewable energy generating facilities and | ||
electricity storage facilities. This infrastructure and | ||
other characteristics include large amounts of available | ||
land situated at a suitable distance from populated areas, | ||
suitable levels of exposure to sunlight, and high voltage | ||
interconnections to nearby bulk electric system | ||
transmission grid facilities at strategic locations. | ||
Development of these generating plant sites for | ||
large-scale renewable energy generating facilities, | ||
particularly photovoltaic facilities which require large | ||
amounts of space, and electricity storage facilities, can | ||
help advance this State's objective of increasing the | ||
portion of the State's total electricity usage that is | ||
supplied by zero emission resources, and reducing the | ||
proportion of the electricity produced in this State that | ||
is produced by carbon-emitting resources, while supporting | ||
the reliability of electric service in the downstate | ||
region. Accordingly, the General Assembly finds that it is | ||
in the public interest to encourage the redevelopment of | ||
the sites of retired and still-operating coal-fueled | ||
electric generating stations as locations for renewable | ||
energy generating facilities and electricity storage | ||
facilities. | ||
(9) Many, if not all, of the coal-fueled electric | ||
generating plants in this State that have recently been |
retired or announced for retirement, or are at near-term | ||
risk of retirement, were at one time owned, at whole or in | ||
part, by a public utility as defined in Section 3-105 of | ||
the Public Utilities Act and were thereby devoted to | ||
public service and the public use in Illinois, with their | ||
costs paid for by rates paid by public utility ratepayers | ||
in Illinois. The General Assembly finds that it is | ||
appropriate to provide incentives to the owners of the | ||
sites of coal-fueled electric generating facilities in | ||
this State that were once owned by public utilities, to | ||
repurpose those sites in a manner that continues to | ||
benefit the public by providing for the generation of | ||
carbon-free, non-emitting electricity and reliable bulk | ||
electric service. | ||
(10) The General Assembly finds it is appropriate for | ||
the State of Illinois to establish a program to provide | ||
incentives for the installation and operation of new | ||
renewable energy facilities, along with energy storage | ||
facilities, at the sites of retired and at-risk | ||
coal-fueled electric generating facilities in this State, | ||
to help expedite the transition of this State's electric | ||
generation fleet to lower-emitting resources while | ||
ensuring the availability of sufficient electric energy | ||
resources to meet the demands of residential and business | ||
electricity consumers in this State. | ||
(11) In light of the foregoing findings, the purpose |
of the program established in subsection (c-5) of Section | ||
1-75 of the Illinois Power Agency Act is to incentivize | ||
and support conversion and development of unused (or to be | ||
unused) sites of recently retired and soon to-be-retired | ||
coal-fueled power plants in this State to productive new | ||
uses as sites for the generation and provision of | ||
electricity from renewable energy facilities and energy | ||
storage facilities, thereby contributing to the State's | ||
efforts to reduce carbon emissions from facilities in this | ||
State and increase the production of the State's | ||
electricity needs from clean energy resources. The | ||
provisions of this Act also will support the reliability | ||
of the bulk power grid in this State by incentivizing and | ||
supporting installation of new generating facilities and | ||
energy storage facilities at locations on the grid where | ||
synchronous generation was formerly located. | ||
Section 90-3. The Illinois Administrative Procedure Act is | ||
amended by adding 5-45.9 as follows: | ||
(5 ILCS 100/5-45.9 new) | ||
Sec. 5-45.9. Emergency rulemaking; Multi-Year Integrated | ||
Grid Plans. To provide for the expeditious and timely | ||
implementation of Section 16-105.17 of the Public Utilities | ||
Act, emergency rules implementing Section 16-105.17 of the | ||
Public Utilities Act may be adopted in accordance with Section |
5-45 by the Illinois Commerce Commission. The adoption of | ||
emergency rules authorized by Section 5-45 and this Section is | ||
deemed to be necessary for the public interest, safety, and | ||
welfare. | ||
This Section is repealed one year after the effective date | ||
of this amendatory Act of the 102nd General Assembly. | ||
Section 90-5. The Illinois Governmental Ethics Act is | ||
amended by adding Section 1-121 and by changing Sections | ||
4A-102 and 4A-103 as follows: | ||
(5 ILCS 420/1-121 new) | ||
Sec. 1-121. Public utility. "Public utility" has the | ||
meaning provided in Section 3-105 of the Public Utilities Act. | ||
(5 ILCS 420/4A-102) (from Ch. 127, par. 604A-102)
| ||
Sec. 4A-102. The statement of economic interests required | ||
by this Article
shall include the economic interests of the | ||
person making the statement as
provided in this Section. The | ||
interest (if constructively controlled by the
person making | ||
the statement) of a spouse or any other party, shall be
| ||
considered to be the same as the interest of the person making | ||
the
statement. Campaign receipts shall not be included in this | ||
statement.
| ||
(a) The following interests shall be listed by all | ||
persons required to
file:
|
(1) The name, address and type of practice of any | ||
professional
organization or individual professional | ||
practice in which the person making
the statement was | ||
an officer, director, associate, partner or | ||
proprietor,
or served in any advisory capacity, from | ||
which income in excess of $1200
was derived during the | ||
preceding calendar year;
| ||
(2) The nature of professional services (other | ||
than services rendered to
the unit or units of | ||
government in relation to which the person is required
| ||
to file)
and the nature of the entity to which they | ||
were rendered if fees exceeding
$5,000 were received | ||
during the preceding calendar year from the entity for
| ||
professional services rendered by the person making | ||
the statement.
| ||
(3) The identity (including the address or legal | ||
description of real
estate) of any capital asset from | ||
which a capital gain of $5,000 or more
was realized in | ||
the preceding calendar year.
| ||
(4) The name of any unit of government which has | ||
employed the person
making the statement during the | ||
preceding calendar year other than the unit
or units | ||
of government in relation to which the person is | ||
required to file.
| ||
(5) The name of any entity from which a gift or | ||
gifts, or honorarium or
honoraria, valued singly or in |
the aggregate in excess of $500, was
received during | ||
the preceding calendar year.
| ||
(b) The following interests shall also be listed by | ||
persons listed in
items (a) through (f), item (l), item | ||
(n), and item (p) of Section 4A-101:
| ||
(1) The name and instrument of ownership in any | ||
entity doing business in
the State of Illinois, in | ||
which an ownership interest held by the person at
the | ||
date of filing is in excess of $5,000 fair market value | ||
or from which
dividends of in excess of $1,200 were | ||
derived during the preceding calendar
year. (In the | ||
case of real estate, location thereof shall be listed | ||
by
street address, or if none, then by legal | ||
description). No time or demand
deposit in a financial | ||
institution, nor any debt instrument need be listed;
| ||
(2) Except for professional service entities, the | ||
name of any entity and
any position held therein from | ||
which income of in excess of $1,200 was
derived during | ||
the preceding calendar year, if the entity does | ||
business in
the State of Illinois. No time or demand | ||
deposit in a financial
institution, nor any debt | ||
instrument need be listed.
| ||
(3) The identity of any compensated lobbyist with | ||
whom the person making
the statement maintains a close | ||
economic association, including the name of
the | ||
lobbyist and specifying the legislative matter or |
matters which are the
object of the lobbying activity, | ||
and describing the general type of
economic activity | ||
of the client or principal on whose behalf that person | ||
is
lobbying.
| ||
(c) The following interests shall also be listed by | ||
persons listed in
items (a) through (c) and item (e) of | ||
Section 4A-101.5:
| ||
(1) The name and instrument of ownership in any | ||
entity doing business
with a unit of local government | ||
in relation to which the person is
required to file if | ||
the ownership interest of the person filing is greater
| ||
than $5,000 fair market value as of the date of filing | ||
or if dividends in
excess of $1,200 were received from | ||
the entity during the preceding
calendar year. (In the | ||
case of real estate, location thereof shall be
listed | ||
by street address, or if none, then by legal | ||
description). No time
or demand deposit in a financial | ||
institution, nor any debt instrument need
be listed.
| ||
(2) Except for professional service entities, the | ||
name of any entity and
any position held therein from | ||
which income in excess of $1,200 was derived
during | ||
the preceding calendar year if the entity does | ||
business with a
unit of local government in relation | ||
to which the person is required to
file. No time or | ||
demand deposit in a financial institution, nor any | ||
debt
instrument need be listed.
|
(3) The name of any entity and the nature of the | ||
governmental action
requested by any entity which has | ||
applied to a unit of local
government
in relation to | ||
which the person must file for any license, franchise | ||
or
permit for annexation, zoning or rezoning of real | ||
estate during the
preceding calendar year if the | ||
ownership interest of the person filing is
in excess | ||
of $5,000 fair market value at the time of filing or if | ||
income or
dividends in excess of $1,200 were received | ||
by the person filing from the
entity during the | ||
preceding calendar year.
| ||
(d) The following interest shall also be listed by | ||
persons listed in items (a) through (f) of Section 4A-101: | ||
the name of any spouse or immediate family member living | ||
with such person employed by a public utility in this | ||
State and the name of the public utility that employs such | ||
person. | ||
For the purposes of this Section, the unit of local | ||
government in relation to which a person is required to file | ||
under item (e) of Section 4A-101.5 shall be the unit of local | ||
government that contributes to the pension fund of which such | ||
person is a member of the board. | ||
(Source: P.A. 101-221, eff. 8-9-19.)
| ||
(5 ILCS 420/4A-103) (from Ch. 127, par. 604A-103)
| ||
Sec. 4A-103.
The statement of economic interests required |
by this Article to be filed
with the Secretary of State or | ||
county clerk shall be filled in by
typewriting or hand | ||
printing, shall be verified, dated, and signed by the
person | ||
making the statement and shall contain substantially the | ||
following:
| ||
STATEMENT OF ECONOMIC INTERESTS | ||
INSTRUCTIONS: | ||
You may find the following documents helpful to you in | ||
completing this form: | ||
(1) federal income tax returns, including any related | ||
schedules, attachments, and forms; and | ||
(2) investment and brokerage statements. | ||
To complete this form, you do not need to disclose | ||
specific amounts or values or report interests relating either | ||
to political committees registered with the Illinois State | ||
Board of Elections or to political committees, principal | ||
campaign committees, or authorized committees registered with | ||
the Federal Election Commission. | ||
The information you disclose will be available to the | ||
public. | ||
You must answer all 6 questions. Certain questions will | ||
ask you to report any applicable assets or debts held in, or | ||
payable to, your name; held jointly by, or payable to, you with | ||
your spouse; or held jointly by, or payable to, you with your |
minor child. If you have any concerns about whether an | ||
interest should be reported, please consult your department's | ||
ethics officer, if applicable. | ||
Please ensure that the information you provide is complete | ||
and accurate. If you need more space than the form allows, | ||
please attach additional pages for your response. If you are | ||
subject to the State Officials and Employees Ethics Act, your | ||
ethics officer must review your statement of economic | ||
interests before you file it. Failure to complete the | ||
statement in good faith and within the prescribed deadline may | ||
subject you to fines, imprisonment, or both. | ||
BASIC INFORMATION: | ||
Name: ........................................................ | ||
Job title: ................................................... | ||
Office, department, or agency that requires you to file this | ||
form: ........................................................ | ||
Other offices, departments, or agencies that require you to | ||
file a Statement of Economic Interests form: ................ | ||
Full mailing address: ........................................ | ||
Preferred e-mail address (optional): ......................... | ||
QUESTIONS: | ||
1. If you have any single asset that was worth more than | ||
$10,000 as of the end of the preceding calendar year and is | ||
held in, or payable to, your name, held jointly by, or payable |
to, you with your spouse, or held jointly by, or payable to, | ||||||||||||
you with your minor child,
list such assets below. In the case | ||||||||||||
of investment real estate, list the city and state where the | ||||||||||||
investment real estate is located. If you do not have any such | ||||||||||||
assets, list "none" below. | ||||||||||||
............................................................. | ||||||||||||
............................................................. | ||||||||||||
............................................................. | ||||||||||||
............................................................. | ||||||||||||
............................................................. | ||||||||||||
2. Excluding the position for which you are required to | ||||||||||||
file this form, list the source of any income in excess of | ||||||||||||
$7,500 required to be reported during the preceding calendar | ||||||||||||
year. If you sold an asset that produced more than $7,500 in | ||||||||||||
capital gains in the preceding calendar year, list the name of | ||||||||||||
the asset and the transaction date on which the sale or | ||||||||||||
transfer took place. If you had no such sources of income or | ||||||||||||
assets, list "none" below. | ||||||||||||
| ||||||||||||
3. Excluding debts incurred on terms available to the | ||||||||||||
general public, such as mortgages, student loans, and credit |
card debts, if you owed any single debt in the preceding | ||
calendar year exceeding $10,000, list the creditor of the debt | ||
below. If you had no such debts, list "none" below. | ||
List the creditor for all applicable debts owed by you, | ||
owed jointly by you with your spouse, or owed jointly by you | ||
with your minor child. In addition to the types of debts listed | ||
above, you do not need to report any debts to or from financial | ||
institutions or government agencies, such as debts secured by | ||
automobiles, household furniture or appliances, as long as the | ||
debt was made on terms available to the general public, debts | ||
to members of your family, or debts to or from a political | ||
committee registered with the Illinois State Board of | ||
Elections or any political committee, principal campaign | ||
committee, or authorized committee registered with the Federal | ||
Election Commission. | ||
............................................................. | ||
............................................................. | ||
............................................................. | ||
............................................................. | ||
4. List the name of each unit of government of which you or | ||
your spouse were an employee, contractor, or office holder | ||
during the preceding calendar year other than the unit or | ||
units of government in relation to which the person is | ||
required to file and the title of the position or nature of the | ||
contractual services. | ||
|
| ||||||||||
5. If you maintain an economic relationship with a | ||||||||||
lobbyist or if a member of your family is known to you to be a | ||||||||||
lobbyist registered with any unit of government in the State | ||||||||||
of Illinois, list the name of the lobbyist below and identify | ||||||||||
the nature of your relationship with the lobbyist. If you do | ||||||||||
not have an economic relationship with a lobbyist or a family | ||||||||||
member known to you to be a lobbyist registered with any unit | ||||||||||
of government in the State of Illinois, list "none" below. | ||||||||||
| ||||||||||
6. List the name of each person, organization, or entity | ||||||||||
that was the source of a gift or gifts, or honorarium or | ||||||||||
honoraria, valued singly or in the aggregate in excess of $500 | ||||||||||
received during the preceding calendar year and the type of | ||||||||||
gift or gifts, or honorarium or honoraria, excluding any gift | ||||||||||
or gifts from a member of your family that was not known to be | ||||||||||
a lobbyist registered with any unit of government in the State | ||||||||||
of Illinois. If you had no such gifts, list "none" below. | ||||||||||
............................................................. |
............................................................. | ||||||||||
............................................................. | ||||||||||
7. List the name of any spouse or immediate family member | ||||||||||
living with the person making this statement employed by a | ||||||||||
public utility in this State and the name of the public utility | ||||||||||
that employs the relative. | ||||||||||
| ||||||||||
VERIFICATION: | ||||||||||
"I declare that this statement of economic interests | ||||||||||
(including any attachments) has been examined by me and to the | ||||||||||
best of my knowledge and belief is a true, correct and complete | ||||||||||
statement of my economic interests as required by the Illinois | ||||||||||
Governmental Ethics Act. I understand that the penalty for | ||||||||||
willfully filing a false or incomplete statement is a fine not | ||||||||||
to exceed $2,500 or imprisonment in a penal institution other | ||||||||||
than the penitentiary not to exceed one year, or both fine and | ||||||||||
imprisonment." | ||||||||||
Printed Name of Filer: ....................................... | ||||||||||
Date: ........................................................ | ||||||||||
Signature: ................................................... | ||||||||||
If this statement of economic interests requires ethics |
officer review prior to filing, the applicable ethics officer | ||
must complete the following: | ||
CERTIFICATION OF ETHICS OFFICER REVIEW: | ||
"In accordance with law, as Ethics Officer, I reviewed | ||
this statement of economic interests prior to its filing." | ||
Printed Name of Ethics Officer: .............................. | ||
Date: ........................................................ | ||
Signature: ................................................... | ||
Preferred e-mail address (optional): ......................... | ||
STATEMENT OF ECONOMIC INTEREST
| ||
(TYPE OR HAND PRINT)
| ||
| ||
(name)
| ||
| ||
(each office or position of employment for which this
| ||
statement is filed)
| ||
| ||
(full mailing address)
| ||
GENERAL DIRECTIONS:
| ||
The interest (if constructively controlled by the person | ||
making the
statement) of a spouse or any other party, shall be | ||
considered to be the
same as the interest of the person making | ||
the statement.
| ||
Campaign receipts shall not be included in this statement.
|
If additional space is needed, please attach supplemental | ||||||||||||||
listing.
| ||||||||||||||
1. List the name and instrument of ownership in any entity | ||||||||||||||
doing
business in the State of Illinois, in which the | ||||||||||||||
ownership interest held by
the person at the date of filing is | ||||||||||||||
in excess of $5,000 fair market value
or from which dividends | ||||||||||||||
in excess of $1,200 were derived during the
preceding calendar | ||||||||||||||
year. (In the case of real estate, location thereof
shall be | ||||||||||||||
listed by street address, or if none, then by legal | ||||||||||||||
description.)
No time or demand deposit in a financial | ||||||||||||||
institution, nor any debt
instrument need be listed.
| ||||||||||||||
| ||||||||||||||
2. List the name, address and type of practice of any | ||||||||||||||
professional
organization in which the person making the | ||||||||||||||
statement was an officer,
director, associate, partner or | ||||||||||||||
proprietor or served in any advisory
capacity, from which | ||||||||||||||
income in excess of $1,200 was derived during the
preceding | ||||||||||||||
calendar year.
| ||||||||||||||
|
3. List the nature of professional services rendered | |||||||||||
(other than to the
State of Illinois) to each entity from which | |||||||||||
income exceeding $5,000 was
received for professional services | |||||||||||
rendered during the preceding calendar
year by the person | |||||||||||
making the statement.
| |||||||||||
| |||||||||||
| |||||||||||
4. List the identity (including the address or legal | |||||||||||
description of real
estate) of any capital asset from which a | |||||||||||
capital gain of $5,000 or more
was realized during the | |||||||||||
preceding calendar year.
| |||||||||||
| |||||||||||
| |||||||||||
5. List the identity of any compensated lobbyist with whom | |||||||||||
the person
making the statement maintains a close economic | |||||||||||
association, including the
name of the lobbyist and specifying | |||||||||||
the legislative matter or matters which
are the object of the | |||||||||||
lobbying activity, and describing the general type of
economic | |||||||||||
activity of the client or principal on whose behalf that | |||||||||||
person is
lobbying.
| |||||||||||
| |||||||||||
6. List the name of any entity doing business in the State | |||||||||||
of Illinois
from which income in excess of $1,200 was derived | |||||||||||
during the preceding
calendar year other than for professional |
services and the title or
description of any position held in | ||||||||||
that entity. (In the case of real
estate, location thereof | ||||||||||
shall be listed by street address, or if none,
then by legal | ||||||||||
description). No time or demand deposit in a financial
| ||||||||||
institution nor any debt instrument need be listed.
| ||||||||||
| ||||||||||
7. List the name of any unit of government which employed | ||||||||||
the person
making the statement during the preceding calendar | ||||||||||
year other than the unit
or units
of government in relation to | ||||||||||
which the person is required to file.
| ||||||||||
| ||||||||||
| ||||||||||
8. List the name of any entity from which a gift or gifts, | ||||||||||
or honorarium
or honoraria, valued singly or in the aggregate | ||||||||||
in excess of $500, was
received during the preceding calendar | ||||||||||
year.
| ||||||||||
| ||||||||||
VERIFICATION:
| ||||||||||
"I declare that this statement of economic interests | ||||||||||
(including any
accompanying schedules and statements) has been | ||||||||||
examined by me and to the
best of my knowledge and belief is a | ||||||||||
true, correct and complete statement
of my economic interests | ||||||||||
as required by the Illinois Governmental Ethics
Act. I |
understand that the penalty for willfully filing a false or
| ||
incomplete statement shall be a fine not to exceed $1,000 or | ||
imprisonment
in a penal institution other than the | ||
penitentiary not to exceed one year,
or both fine and | ||
imprisonment."
| ||
................ ..........................................
| ||
(date of filing) (signature of person making the statement)
| ||
(Source: P.A. 95-173, eff. 1-1-08.)
| ||
Section 90-10. The State Officials and Employees Ethics | ||
Act is amended by changing Section 5-50 as follows: | ||
(5 ILCS 430/5-50)
| ||
Sec. 5-50. Ex parte communications; special government | ||
agents.
| ||
(a) This Section applies to ex
parte communications made | ||
to any agency listed in subsection (e).
| ||
(b) "Ex parte communication" means any written or oral | ||
communication by any
person
that imparts or requests material
| ||
information
or makes a material argument regarding
potential | ||
action concerning regulatory, quasi-adjudicatory, investment, | ||
or
licensing
matters pending before or under consideration by | ||
the agency.
"Ex parte
communication" does not include the | ||
following: (i) statements by
a person publicly made in a | ||
public forum; (ii) statements regarding
matters of procedure | ||
and practice, such as format, the
number of copies required, |
the manner of filing, and the status
of a matter; and (iii) | ||
statements made by a
State employee of the agency to the agency | ||
head or other employees of that
agency.
| ||
(b-5) An ex parte communication received by an agency,
| ||
agency head, or other agency employee from an interested party | ||
or
his or her official representative or attorney shall | ||
promptly be
memorialized and made a part of the record.
| ||
(c) An ex parte communication received by any agency, | ||
agency head, or
other agency
employee, other than an ex parte | ||
communication described in subsection (b-5),
shall immediately | ||
be reported to that agency's ethics officer by the recipient
| ||
of the communication and by any other employee of that agency | ||
who responds to
the communication. The ethics officer shall | ||
require that the ex parte
communication
be promptly made a | ||
part of the record. The ethics officer shall promptly
file the | ||
ex parte communication with the
Executive Ethics Commission, | ||
including all written
communications, all written responses to | ||
the communications, and a memorandum
prepared by the ethics | ||
officer stating the nature and substance of all oral
| ||
communications, the identity and job title of the person to | ||
whom each
communication was made,
all responses made, the | ||
identity and job title of the person making each
response,
the | ||
identity of each person from whom the written or oral ex parte
| ||
communication was received, the individual or entity | ||
represented by that
person, any action the person requested or | ||
recommended, and any other pertinent
information.
The |
disclosure shall also contain the date of any
ex parte | ||
communication.
| ||
(d) "Interested party" means a person or entity whose | ||
rights,
privileges, or interests are the subject of or are | ||
directly affected by
a regulatory, quasi-adjudicatory, | ||
investment, or licensing matter.
For purposes of an ex parte | ||
communication received by either the Illinois Commerce | ||
Commission or the Illinois Power Agency, "interested party" | ||
also includes: (1) an organization comprised of 2 or more | ||
businesses, persons, nonprofit entities, or any combination | ||
thereof, that are working in concert to advance public policy | ||
advocated by the organization, or (2) any party selling | ||
renewable energy resources procured by the Illinois Power | ||
Agency pursuant to Section 16-111.5 of the Public Utilities | ||
Act and Section 1-75 of the Illinois Power Agency Act.
| ||
(e) This Section applies to the following agencies:
| ||
Executive Ethics Commission
| ||
Illinois Commerce Commission
| ||
Illinois Power Agency | ||
Educational Labor Relations Board
| ||
State Board of Elections
| ||
Illinois Gaming Board
| ||
Health Facilities and Services Review Board
| ||
Illinois Workers' Compensation Commission
| ||
Illinois Labor Relations Board
| ||
Illinois Liquor Control Commission
|
Pollution Control Board
| ||
Property Tax Appeal Board
| ||
Illinois Racing Board
| ||
Illinois Purchased Care Review Board
| ||
Department of State Police Merit Board
| ||
Motor Vehicle Review Board
| ||
Prisoner Review Board
| ||
Civil Service Commission
| ||
Personnel Review Board for the Treasurer
| ||
Merit Commission for the Secretary of State
| ||
Merit Commission for the Office of the Comptroller
| ||
Court of Claims
| ||
Board of Review of the Department of Employment Security
| ||
Department of Insurance
| ||
Department of Professional Regulation and licensing boards
| ||
under the Department
| ||
Department of Public Health and licensing boards under the
| ||
Department
| ||
Office of Banks and Real Estate and licensing boards under
| ||
the Office
| ||
State Employees Retirement System Board of Trustees
| ||
Judges Retirement System Board of Trustees
| ||
General Assembly Retirement System Board of Trustees
| ||
Illinois Board of Investment
| ||
State Universities Retirement System Board of Trustees
| ||
Teachers Retirement System Officers Board of Trustees
|
(f) Any person who fails to (i) report an ex parte | ||
communication to an
ethics officer, (ii) make information part | ||
of the record, or (iii) make a
filing
with the Executive Ethics | ||
Commission as required by this Section or as required
by
| ||
Section 5-165 of the Illinois Administrative Procedure Act | ||
violates this Act.
| ||
(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.) | ||
Section 90-15. The Department of Commerce and Economic | ||
Opportunity Law of the
Civil Administrative Code of Illinois | ||
is amended by adding Section 605-1075 as follows: | ||
(20 ILCS 605/605-1075 new) | ||
Sec. 605-1075. Energy Transition Assistance Fund. | ||
(a) The General Assembly hereby declares that management
| ||
of several economic development programs requires a
| ||
consolidated funding source to improve resource efficiency.
| ||
The General Assembly specifically recognizes that properly
| ||
serving communities and workers impacted by the energy
| ||
transition requires that the Department of Commerce and
| ||
Economic Opportunity have access to the resources required for
| ||
the execution of the programs for workforce and contractor | ||
development, just transition investments and community | ||
support, and the implementation and administration of energy | ||
and justice efforts by the State. | ||
(b) The Department shall be responsible for the
|
administration of the Energy Transition Assistance Fund and | ||
shall allocate funding on the
basis of priorities established | ||
in this Section. Each year,
the Department shall determine the | ||
available amount of
resources in the Fund that can be | ||
allocated to the programs
identified in this Section, and | ||
allocate the funding
accordingly. The Department shall, to the | ||
extent practical,
consider both the short-term and long-term | ||
costs of the
programs and allocate funding so that the
| ||
Department is able to cover both the short-term and long-term
| ||
costs of these programs using projected revenue. | ||
The available funding for each year shall be allocated
| ||
from the Fund in the following order of priority: | ||
(1) for costs related to the Clean Jobs Workforce | ||
Network Program, up to $21,000,000 annually prior to June | ||
1, 2023 and $24,333,333 annually thereafter; | ||
(2) for costs related to the Clean Energy Contractor | ||
Incubator Program, up to $21,000,000 annually; | ||
(3) for costs related to the Clean Energy Primes | ||
Contractor Accelerator Program, up to $9,000,000 annually; | ||
(4) for costs related to the Barrier Reduction | ||
Program, up to $21,000,000 annually; | ||
(5) for costs related to the Jobs and Environmental | ||
Justice Grant Program, up to $34,000,000 annually; | ||
(6) for costs related to the Returning Residents Clean | ||
Jobs Training Program, up to $6,000,000 annually; | ||
(7) for costs related to Energy Transition Navigators, |
up to $6,000,000 annually; | ||
(8) for costs related to the Illinois Climate Works | ||
Preapprenticeship Program, up to $10,000,000 annually; | ||
(9) for costs related to Energy Transition Community | ||
Support Grants, up to $40,000,000 annually; | ||
(10) for costs related to the Displaced Energy Worker | ||
Dependent Scholarship, upon request by the Illinois | ||
Student Assistance Commission, up to $1,100,000 annually; | ||
(11) up to $10,000,000 annually shall be transferred | ||
to the Public Utilities Fund for use by the Illinois | ||
Commerce Commission for costs of administering the changes | ||
made to the Public Utilities Act by this amendatory Act of | ||
the 102nd General Assembly; | ||
(12) up to $4,000,000 annually shall be transferred to | ||
the Illinois Power Agency Operations Fund for use by the | ||
Illinois Power Agency; and | ||
(13) for costs related to the Clean Energy Jobs and | ||
Justice Fund, up to $1,000,000 annually. | ||
The Department is authorized to utilize up to 10% of the | ||
Energy Transition Assistance Fund for administrative and | ||
operational expenses to implement the requirements of this | ||
Act. | ||
(c) Within 30 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, each electric | ||
utility serving more than 500,000 customers in the State shall | ||
report to the Department its total kilowatt-hours of energy |
delivered during the 12 months ending on the immediately | ||
preceding May 31. By October 31, 2021 and each October 31 | ||
thereafter, each electric utility serving more than 500,000 | ||
customers in the State shall report to the Department its | ||
total kilowatt-hours of energy delivered during the 12 months | ||
ending on the immediately preceding May 31. | ||
(d) The Department shall, within 60 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly: | ||
(1) determine the amount necessary, but not more than | ||
$180,000,000, to meet the funding needs of the programs | ||
reliant upon the Energy Transition Assistance Fund as a | ||
revenue source for the period between the effective date | ||
of this amendatory Act of the 102nd General Assembly and | ||
December 31, 2021; | ||
(2) determine, based on the kilowatt-hour deliveries | ||
for the 12 months ending May 31, 2021 reported by the | ||
electric utilities under subsection (c), the total energy | ||
transition assistance charge to be allocated to each | ||
electric utility for the period between the effective date | ||
of this amendatory Act of the 102nd General Assembly and | ||
December 31, 2021; and | ||
(3) report the total energy transition assistance | ||
charge applicable until December 31, 2021 to each electric | ||
utility serving more than 500,000 customers in the State | ||
and the Illinois Commerce Commission for purposes of |
filing the tariff pursuant to Section 16-108.30 of the | ||
Public Utilities Act. | ||
(e) The Department shall by November 30, 2021, and each | ||
November 30 thereafter: | ||
(1) determine the amount necessary, but not more than | ||
$180,000,000, to meet the funding needs of the programs | ||
reliant upon the Energy Transition Assistance Fund as a | ||
revenue source for the immediately following calendar | ||
year; | ||
(2) determine, based on the kilowatt-hour deliveries | ||
for the 12 months ending on the immediately preceding May | ||
31 reported to it by the electric utilities under | ||
subsection (c), the total energy transition assistance | ||
charge to be allocated to each electric utility for the | ||
immediately following calendar year; and | ||
(3) report the energy transition assistance charge | ||
applicable for the immediately following calendar year to | ||
each electric utility serving more than 500,000 customers | ||
in the State and the Illinois Commerce Commission for | ||
purposes of filing the tariff pursuant to Section | ||
16-108.30 of the Public Utilities Act. | ||
(f) The energy transition assistance charge may not exceed | ||
$180,000,000 annually. If, at the end of the calendar year, | ||
any surplus remains in the Energy Transition Assistance Fund, | ||
the Department may allocate the surplus from the fund in the | ||
following order of priority: |
(1) for costs related to the development of the | ||
Stretch Energy Codes and other standards at the Capital | ||
Development Board, up to $500,000 annually, at the request | ||
of the Board; | ||
(2) up to $7,000,000 annually shall be transferred to | ||
the Energy Efficiency Trust Fund and Clean Air Act Permit | ||
Fund for use by the Environmental Protection Agency for | ||
costs related to energy efficiency and weatherization, and | ||
costs of implementation, administration, and enforcement | ||
of the Clean Air Act; and | ||
(3) for costs related to State fleet electrification | ||
at the Department of Central Management Services, up to | ||
$10,000,000 annually, at the request of the Department. | ||
Section 90-20. The Electric Vehicle Act is amended by | ||
changing Section 15 and by adding Sections 40, 45, 50, 55, and | ||
60 as follows: | ||
(20 ILCS 627/15)
| ||
Sec. 15. Electric Vehicle Coordinator. The Governor , with | ||
the advice and consent of the Senate, shall appoint a person | ||
within the Illinois Environmental Protection Agency Department | ||
of Commerce and Economic Opportunity to serve as the Electric | ||
Vehicle Coordinator for the State of Illinois. This person may | ||
be an existing employee with other duties. The Coordinator | ||
shall act as a point person for electric vehicle-related and |
electric vehicle charging-related electric vehicle related | ||
policies and activities in Illinois , including, but not | ||
limited to, the issuance of electric vehicle rebates for | ||
consumers and electric vehicle charging rebates for | ||
organizations and companies .
| ||
(Source: P.A. 97-89, eff. 7-11-11.) | ||
(20 ILCS 627/40 new) | ||
Sec. 40. Rulemaking; resources. The Agency shall adopt | ||
rules as necessary and dedicate sufficient resources to | ||
implement Sections 45 and 55. | ||
(20 ILCS 627/45 new) | ||
Sec. 45. Beneficial electrification. | ||
(a) It is the intent of the General Assembly to decrease
| ||
reliance on fossil fuels, reduce pollution from the
| ||
transportation sector, increase access to electrification for
| ||
all consumers, and ensure that electric vehicle adoption and
| ||
increased electricity usage and demand do not place
| ||
significant additional burdens on the electric system and
| ||
create benefits for Illinois residents. | ||
(1) Illinois should increase the adoption of electric | ||
vehicles in the State to 1,000,000 by 2030. | ||
(2) Illinois should strive to be the best state in the | ||
nation in which to drive and manufacture electric | ||
vehicles. |
(3) Widespread adoption of electric vehicles is | ||
necessary to electrify the transportation sector, | ||
diversify the transportation fuel mix, drive economic | ||
development, and protect air quality. | ||
(4) Accelerating the adoption of electric vehicles | ||
will drive the decarbonization of Illinois' transportation | ||
sector. | ||
(5) Expanded infrastructure investment will help | ||
Illinois more rapidly decarbonize the transportation | ||
sector. | ||
(6) Statewide adoption of electric vehicles requires | ||
increasing access to electrification for all consumers. | ||
(7) Widespread adoption of electric vehicles requires | ||
increasing public access to charging equipment throughout | ||
Illinois, especially in low-income and environmental | ||
justice communities, where levels of air pollution burden | ||
tend to be higher. | ||
(8) Widespread adoption of electric vehicles and | ||
charging equipment has the potential to provide customers | ||
with fuel cost savings and electric utility customers with | ||
cost-saving benefits. | ||
(9) Widespread adoption of electric vehicles can | ||
improve an electric utility's electric system efficiency | ||
and operational flexibility, including the ability of the | ||
electric utility to integrate renewable energy resources | ||
and make use of off-peak generation resources that support |
the operation of charging equipment. | ||
(10) Widespread adoption of electric vehicles should | ||
stimulate innovation, competition, and increased choices | ||
in charging equipment and networks and should also attract | ||
private capital investments and create high-quality jobs | ||
in Illinois. | ||
(b) As used in this Section: | ||
"Agency" means the Environmental Protection Agency. | ||
"Beneficial electrification programs" means programs that
| ||
lower carbon dioxide emissions, replace fossil fuel use,
| ||
create cost savings, improve electric grid operations, reduce
| ||
increases to peak demand, improve electric usage load shape,
| ||
and align electric usage with times of renewable generation.
| ||
All beneficial electrification programs shall provide for
| ||
incentives such that customers are induced to use electricity
| ||
at times of low overall system usage or at times when
| ||
generation from renewable energy sources is high. "Beneficial
| ||
electrification programs" include a portfolio of the
| ||
following: | ||
(1) time-of-use electric rates; | ||
(2) hourly pricing electric rates; | ||
(3) optimized charging programs or programs that
| ||
encourage charging at times beneficial to the electric
| ||
grid; | ||
(4) optional demand-response programs specifically | ||
related to
electrification efforts; |
(5) incentives for electrification and associated
| ||
infrastructure tied to using electricity at off-peak | ||
times; | ||
(6) incentives for electrification and associated
| ||
infrastructure targeted to medium-duty and heavy-duty
| ||
vehicles used by transit agencies; | ||
(7) incentives for electrification and associated
| ||
infrastructure targeted to school buses; | ||
(8) incentives for electrification and associated
| ||
infrastructure for medium-duty and heavy-duty government
| ||
and private fleet vehicles; | ||
(9) low-income programs that provide access to
| ||
electric vehicles for communities where car ownership or
| ||
new car ownership is not common; | ||
(10) incentives for electrification in eligible | ||
communities; | ||
(11) incentives or programs to enable quicker adoption
| ||
of electric vehicles by developing public charging | ||
stations in dense areas, workplaces, and low-income | ||
communities; | ||
(12) incentives or programs to develop electric
| ||
vehicle infrastructure that minimizes range anxiety, | ||
filling the gaps in deployment,
particularly in rural | ||
areas and along highway corridors; | ||
(13) incentives to encourage the
development of | ||
electrification and
renewable energy generation in close |
proximity in order to reduce grid congestion; | ||
(14) offer support to low-income communities who are | ||
experiencing financial and accessibility barriers such | ||
that electric vehicle ownership is not an option;
and | ||
(15) other such programs as defined by the Commission. | ||
"Black, indigenous, and people of color" or "BIPOC" means | ||
people who are members of the groups described in | ||
subparagraphs (a) through (e) of paragraph (A) of subsection | ||
(1) of Section 2 of the Business Enterprise for Minorities, | ||
Women, and Persons with Disabilities Act. | ||
"Commission" means the Illinois Commerce Commission. | ||
"Coordinator" means the Electric Vehicle Coordinator. | ||
"Electric vehicle" means a vehicle that is exclusively | ||
powered by and refueled by electricity, must be plugged in to | ||
charge, and is licensed to drive on public roadways. "Electric | ||
vehicle" does not include electric motorcycles or hybrid | ||
electric vehicles and extended-range electric vehicles that | ||
are also equipped with conventional fueled propulsion or | ||
auxiliary engines. | ||
"Electric vehicle charging station" means a station that | ||
delivers electricity from a source outside an electric vehicle | ||
into one or more electric vehicles. | ||
"Environmental justice communities" means the definition
| ||
of that term based on existing methodologies and findings,
| ||
used and as may be updated by the Illinois Power Agency and its
| ||
program administrator in the Illinois Solar for All Program. |
"Equity investment eligible community" or "eligible | ||
community" means the geographic areas throughout Illinois | ||
which would most benefit from equitable investments by the | ||
State designed to combat discrimination and foster sustainable | ||
economic growth. Specifically, "eligible community" means the | ||
following areas: | ||
(1) areas where residents have been historically | ||
excluded from economic opportunities, including | ||
opportunities in the energy sector, as defined pursuant to | ||
Section 10-40 of the Cannabis Regulation and Tax Act; and | ||
(2) areas where residents have been historically | ||
subject to disproportionate burdens of pollution, | ||
including pollution from the energy sector, as established | ||
by environmental justice communities as defined by the | ||
Illinois Power Agency pursuant to Illinois Power Agency | ||
Act, excluding any racial or ethnic indicators. | ||
"Equity investment eligible person" or "eligible person" | ||
means the persons who would most benefit from equitable | ||
investments by the State designed to combat discrimination and | ||
foster sustainable economic growth. Specifically, "eligible | ||
person" means the following people: | ||
(1) persons whose primary residence is in an equity | ||
investment eligible community; | ||
(2) persons who are graduates of or currently enrolled | ||
in the foster care system; or | ||
(3) persons who were formerly incarcerated. |
"Low-income" means persons and families whose income does
| ||
not exceed 80% of the state median income for the current State | ||
fiscal year as established by the U.S. Department of Health | ||
and Human Services. | ||
"Make-ready infrastructure" means the electrical and | ||
construction work necessary between the distribution circuit | ||
to the connection point of charging equipment. | ||
"Optimized charging programs" mean programs whereby owners
| ||
of electric vehicles can set their vehicles to be charged
| ||
based on the electric system's current demand, retail or | ||
wholesale market rates, incentives, the carbon or other
| ||
pollution intensity of the electric generation mix, the
| ||
provision of grid services, efficient use of the electric
| ||
grid, or the availability of clean energy generation.
| ||
Optimized charging programs may be operated by utilities as
| ||
well as third parties. | ||
(c) The Commission shall initiate a workshop process no | ||
later than November 30, 2021 for the purpose of soliciting | ||
input on the design of beneficial electrification programs | ||
that the
utility shall offer. The workshop shall be | ||
coordinated by the Staff of the Commission, or a facilitator | ||
retained by Staff, and shall be organized and facilitated in a | ||
manner that encourages representation from diverse | ||
stakeholders, including stakeholders representing | ||
environmental justice and low-income communities, and ensures | ||
equitable opportunities for participation, without requiring |
formal intervention or representation by an attorney. | ||
The stakeholder workshop process shall take into | ||
consideration the benefits of electric vehicle
adoption and | ||
barriers to adoption, including: | ||
(1) the benefit of lower bills for customers who do
| ||
not charge electric vehicles; | ||
(2) benefits to the
distribution system from electric | ||
vehicle usage; | ||
(3) the avoidance and reduction in capacity costs from
| ||
optimized charging and off-peak charging; | ||
(4) energy price and cost reductions; | ||
(5) environmental benefits, including greenhouse gas
| ||
emission and other pollution reductions; | ||
(6) current barriers to mass-market adoption,
| ||
including cost of ownership and availability of charging
| ||
stations; | ||
(7) current barriers to increasing access among | ||
populations that have limited access to electric vehicle | ||
ownership, communities significantly impacted by | ||
transportation-related pollution, and market segments that | ||
create disproportionate pollution impacts; | ||
(8) benefits of and incentives for medium-duty and
| ||
heavy-duty fleet vehicle electrification; | ||
(9) opportunities for eligible communities to benefit | ||
from electrification; | ||
(10) geographic areas and market segments that should |
be prioritized for electrification infrastructure | ||
investment. | ||
The workshops shall consider barriers, incentives,
| ||
enabling rate structures, and other opportunities for the
bill | ||
reduction and environmental benefits described in
this | ||
subsection. | ||
The workshop process shall conclude no later than February | ||
28, 2022. Following the workshop, the Staff of the Commission, | ||
or the facilitator retained by the Staff, shall prepare and | ||
submit a report, no later than March 31, 2022, to the | ||
Commission that includes, but is not limited to, | ||
recommendations for transportation electrification investment | ||
or incentives in the following areas: | ||
(i) publicly accessible Level 2 and fast-charging | ||
stations, with a focus on bringing access to | ||
transportation electrification in densely populated areas | ||
and workplaces within eligible communities; | ||
(ii) medium-duty and heavy-duty charging | ||
infrastructure used by government and private fleet | ||
vehicles that serve or travel through environmental | ||
justice or eligible communities; | ||
(iii) medium-duty and heavy-duty charging | ||
infrastructure used in school bus operations, whether | ||
private or public, that primarily serve governmental or | ||
educational institutions, and also serve or travel through | ||
environmental justice or eligible communities; |
(iv) public transit medium-duty and heavy-duty | ||
charging infrastructure, developed in consultation with | ||
public transportation agencies; and | ||
(v) publicly accessible Level 2 and fast-charging | ||
stations targeted to fill gaps in deployment, particularly | ||
in rural areas and along State highway corridors. | ||
The report must also identify the participants in the | ||
process, program designs proposed during the process, | ||
estimates of the costs and benefits of proposed programs, any | ||
material issues that remained unresolved at the conclusions of | ||
such process, and any recommendations for workshop process | ||
improvements. The report shall be used by the Commission to | ||
inform and evaluate the cost effectiveness and achievement of | ||
goals within the submitted Beneficial Electrification Plans. | ||
(d) No later than July 1, 2022, electric utilities serving
| ||
greater than 500,000 customers in the State shall file a
| ||
Beneficial Electrification Plan with the Illinois Commerce
| ||
Commission for programs that start no later than January 1,
| ||
2023. The plan shall take into consideration recommendations | ||
from the workshop report described in this Section. Within 45 | ||
days after the filing of the Beneficial Electrification Plan, | ||
the Commission shall, with reasonable notice, open an | ||
investigation to consider whether the plan meets the | ||
objectives and contains the information required by this | ||
Section. The Commission shall determine if the proposed plan | ||
is cost-beneficial and in the public interest. When |
considering if the plan is in the public interest and | ||
determining appropriate levels of cost recovery for | ||
investments and expenditures related to programs proposed by | ||
an electric utility, the Commission shall consider whether the | ||
investments and other expenditures are designed and reasonably | ||
expected to: | ||
(1) maximize total energy cost savings and rate | ||
reductions so that nonparticipants can benefit; | ||
(2) address environmental justice interests by | ||
ensuring there are significant opportunities for residents | ||
and businesses in eligible communities to directly | ||
participate in and benefit from beneficial electrification | ||
programs; | ||
(3) support at least a 40% investment of make-ready | ||
infrastructure incentives to facilitate the rapid | ||
deployment of charging equipment in or serving | ||
environmental justice, low-income, and eligible | ||
communities; however, nothing in this subsection is | ||
intended to require a specific amount of spending in a | ||
particular geographic area; | ||
(4) support at least a 5% investment target in | ||
electrifying medium-duty and heavy-duty school bus and | ||
diesel public transportation vehicles located in or | ||
serving environmental justice, low-income, and eligible | ||
communities in order to provide those communities and | ||
businesses with greater economic investment, |
transportation opportunities, and a cleaner environment so | ||
they can directly benefit from transportation | ||
electrification efforts; however, nothing in this | ||
subsection is intended to require a specific amount of | ||
spending in a particular geographic area; | ||
(5) stimulate innovation, competition, private | ||
investment, and increased consumer choices in electric | ||
vehicle charging equipment and networks; | ||
(6) contribute to the reduction of carbon emissions | ||
and meeting air quality standards, including improving air | ||
quality in eligible communities who disproportionately | ||
suffer from emissions from the medium-duty and heavy-duty | ||
transportation sector; | ||
(7) support the efficient and cost-effective use of | ||
the electric grid in a manner that supports electric | ||
vehicle charging operations; and | ||
(8) provide resources to support private investment in | ||
charging equipment for uses in public and private charging | ||
applications, including residential, multi-family, fleet, | ||
transit, community, and corridor applications. | ||
The plan shall be determined to be cost-beneficial if the | ||
total cost of beneficial electrification expenditures is less | ||
than the net present value of increased electricity costs | ||
(defined as marginal avoided energy, avoided capacity, and | ||
avoided transmission and
distribution system costs) avoided by | ||
programs under the plan, the net present value of reductions |
in other customer energy costs, net revenue from all electric | ||
charging in the service territory, and the societal value of | ||
reduced carbon emissions and surface-level pollutants, | ||
particularly in environmental justice communities. The | ||
calculation of costs and benefits should be based on net | ||
impacts, including the impact on customer rates. | ||
The Commission shall approve, approve with modifications, | ||
or reject the plan within 270 days from the date of filing. The | ||
Commission may approve the plan if it finds that the plan will | ||
achieve the goals described in this Section and contains the | ||
information described in this Section. Proceedings under this | ||
Section shall proceed according to the rules provided by | ||
Article IX of the Public Utilities Act. Information contained | ||
in the approved plan shall be considered part of the record in | ||
any Commission proceeding under Section 16-107.6 of the Public | ||
Utilities Act, provided that a final order has not been | ||
entered prior to the initial filing date. The Beneficial | ||
Electrification Plan shall specifically
address, at a minimum, | ||
the following: | ||
(i) make-ready investments to facilitate the rapid | ||
deployment of charging equipment throughout the State, | ||
facilitate the electrification of public transit and other | ||
vehicle fleets in the light-duty, medium-duty, and | ||
heavy-duty sectors, and align with Agency-issued rebates | ||
for charging equipment; | ||
(ii) the development and implementation of beneficial |
electrification programs, including time-of-use
rates and | ||
their benefit for electric vehicle users and for
all | ||
customers, optimized charging programs to
achieve savings | ||
identified, and new contracts and
compensation for | ||
services in those programs, through
signals that allow | ||
electric vehicle charging to respond to
local system | ||
conditions, manage critical peak periods,
serve as a | ||
demand response or peak resource, and maximize
renewable | ||
energy use and integration into the grid; | ||
(iii) optional commercial tariffs utilizing | ||
alternatives to traditional demand-based rate structures | ||
to facilitate charging for light duty, heavy duty, and | ||
fleet electric vehicles; | ||
(iv) financial and other challenges to electric | ||
vehicle
usage in low-income communities, and strategies | ||
for overcoming those challenges, particularly in | ||
communities
and for people for whom car ownership is not | ||
an option; | ||
(v) methods of minimizing ratepayer impacts and | ||
exempting or minimizing, to the extent possible, | ||
low-income ratepayers from the costs associated with | ||
facilitating the expansion of electric vehicle charging; | ||
(vi) plans to increase access to Level 3 Public
| ||
Electric Vehicle Charging Infrastructure to serve vehicles | ||
that need quicker charging times and vehicles of persons | ||
who have no
other access to charging infrastructure, |
regardless of
whether those projects participate in | ||
optimized charging
programs; | ||
(vii) whether to establish charging standards for type | ||
of plugs eligible for investment or incentive programs, | ||
and if so, what standards; | ||
(viii) opportunities for coordination and cohesion | ||
with
electric vehicle and electric vehicle charging | ||
equipment
incentives established by any agency, | ||
department, board,
or commission of the State, any other | ||
unit of
government in the State, any national programs, or | ||
any
unit of the federal government; | ||
(ix) ideas for the development of online tools,
| ||
applications, and data sharing that provide essential
| ||
information to those charging electric vehicles, and
| ||
enable an automated charging response to price signals,
| ||
emission signals, real-time renewable generation
| ||
production, and other Commission-approved or
| ||
customer-desired indicators of beneficial charging times;
| ||
and | ||
(x) customer education, outreach, and incentive | ||
programs that increase awareness of the programs and the | ||
benefits of transportation electrification, including | ||
direct outreach to eligible communities; | ||
(e) Proceedings under this Section shall proceed according | ||
to the rules provided by Article IX of the Public Utilities | ||
Act. Information contained in the approved plan shall be |
considered part of the record in any Commission proceeding | ||
under Section 16-107.6 of the Public Utilities Act, provided | ||
that a final order has not been entered prior to the initial | ||
filing date. | ||
(f) The utility shall file an update to the plan on July 1, | ||
2024 and every 3 years thereafter. This update shall describe | ||
transportation investments made during the prior plan period, | ||
investments planned for the following 24 months, and updates | ||
to the information required by this Section. Beginning with | ||
the first update, the utility shall develop the plan in | ||
conjunction with the distribution system planning process | ||
described in Section 16-105.17, including incorporation of | ||
stakeholder feedback from that process. | ||
(g) Within 35 days after the utility files its report, the | ||
Commission shall, upon its own initiative, open an | ||
investigation regarding the utility's plan update to | ||
investigate whether the objectives described in this Section | ||
are being achieved. The Commission shall determine whether | ||
investment targets should be increased based on achievement of | ||
spending goals outlined in the Beneficial Electrification Plan | ||
and consistency with outcomes directed in the plan stakeholder | ||
workshop report. If the Commission finds, after notice and | ||
hearing, that the utility's plan is materially deficient, the | ||
Commission shall issue an order requiring the utility to | ||
devise a corrective action plan, subject to Commission | ||
approval, to bring the plan into compliance with the goals of |
this Section. The Commission's order shall be entered within | ||
270 days after the utility files its annual report.
The | ||
contents of a plan filed under this Section shall be available | ||
for evidence in Commission proceedings. However, omission from | ||
an approved plan shall not render any future utility | ||
expenditure to be considered unreasonable or imprudent. The | ||
Commission may, upon sufficient evidence, allow expenditures | ||
that were not part of any particular distribution plan.
The | ||
Commission shall consider revenues from electric vehicles in | ||
the utility's service territory in evaluating the retail rate | ||
impact. The retail rate impact from the development of | ||
electric vehicle infrastructure shall not exceed 1% per year | ||
of the total annual revenue requirements of the utility. | ||
(h) In meeting the requirements of this Section, the | ||
utility shall demonstrate efforts to increase the use of | ||
contractors and electric vehicle charging station installers | ||
that meet multiple workforce equity actions, including, but | ||
not limited to: | ||
(1) the business is headquartered in or the person | ||
resides in an eligible community; | ||
(2) the business is majority owned by eligible person | ||
or the contractor is an eligible person; | ||
(3) the business or person is certified by another | ||
municipal, State, federal, or other certification for | ||
disadvantaged businesses; | ||
(4) the business or person meets the eligibility |
criteria for a certification program such as: | ||
(A) certified under Section 2 of the Business | ||
Enterprise for Minorities, Women, and Persons with | ||
Disabilities Act; | ||
(B) certified by another municipal, State, | ||
federal, or other certification for disadvantaged | ||
businesses; | ||
(C) submits an affidavit showing that the
vendor | ||
meets the eligibility criteria for a
certification | ||
program such as those in items (A) and
(B); or | ||
(D) if the vendor is a nonprofit, meets any of the | ||
criteria in those in item (A), (B), or (C) with the | ||
exception that the nonprofit is not required to meet | ||
any criteria related to being a for-profit entity, or | ||
is controlled by a board of directors that consists of | ||
51% or greater individuals who are equity investment | ||
eligible persons; or | ||
(E) ensuring that program implementation | ||
contractors and electric vehicle charging station | ||
installers pay employees working on electric vehicle | ||
charging installations at or above the prevailing wage | ||
rate as published by the Department of Labor. | ||
Utilities shall establish reporting procedures for vendors | ||
that ensure compliance with this subsection, but are | ||
structured to avoid, wherever possible, placing an undue | ||
administrative burden on vendors. |
(i) Program data collection. | ||
(1) In order to ensure that the benefits provided to | ||
Illinois residents and business by the clean energy | ||
economy are equitably distributed across the State, it is | ||
necessary to accurately measure the applicants and | ||
recipients of this Program. The purpose of this paragraph | ||
is to require the implementing utilities to collect all | ||
data from Program applicants and beneficiaries to track | ||
and improve equitable distribution of benefits across | ||
Illinois communities. The further purpose is to measure | ||
any potential impact of racial discrimination on the | ||
distribution of benefits and provide the utilities the | ||
information necessary to correct any discrimination | ||
through methods consistent with State and federal law. | ||
(2) The implementing utilities shall collect | ||
demographic and geographic data for each applicant and | ||
each person or business awarded benefits or contracts | ||
under this Program. | ||
(3) The implementing utilities shall collect the | ||
following information from applicants and Program or | ||
procurement beneficiaries where applicable: | ||
(A) demographic information, including racial or | ||
ethnic identity for real persons employed, contracted, | ||
or subcontracted through the program; | ||
(B) demographic information, including racial or | ||
ethnic identity of business owners; |
(C) geographic location of the residency of real | ||
persons or geographic location of the headquarters for | ||
businesses; and | ||
(D) any other information necessary for the | ||
purpose of achieving the purpose of this paragraph. | ||
(4) The utility shall publish, at least annually, | ||
aggregated information on the demographics of program and | ||
procurement applicants and beneficiaries. The utilities | ||
shall protect personal and confidential business | ||
information as necessary. | ||
(5) The utilities shall conduct a regular review | ||
process to confirm the accuracy of reported data. | ||
(6) On a quarterly basis, utilities shall collect data | ||
necessary to ensure compliance with this Section and shall | ||
communicate progress toward compliance to program | ||
implementation contractors and electric vehicle charging | ||
station installation vendors. | ||
(7) Utilities filing Beneficial Electrification Plans | ||
under this Section shall report annually to the Illinois | ||
Commerce Commission and the General Assembly on how | ||
hiring, contracting, job training, and other practices | ||
related to its Beneficial electrification programs enhance | ||
the diversity of vendors working on such programs. These | ||
reports must include data on vendor and employee | ||
diversity. | ||
(j) The provisions of this Section are severable under |
Section 1.31 of the Statute on Statutes. | ||
(20 ILCS 627/55 new) | ||
Sec. 55. Charging rebate program. | ||
(a) In order to substantially offset the installation | ||
costs of electric vehicle charging infrastructure, beginning | ||
July 1, 2022, and continuing as long as funds are available, | ||
the Agency shall issue rebates, consistent with the | ||
Commission-approved Beneficial Electrification Plans in | ||
accordance with Section 45, to public and private | ||
organizations and companies to install and maintain Level 2 or | ||
Level 3 charging stations. | ||
(b) The Agency shall award rebates or grants that fund up | ||
to 80% of the cost of the installation of charging stations. | ||
The Agency shall award additional incentives per port for | ||
every charging station installed in an eligible community and | ||
every charging station located to support eligible persons. In | ||
order to be eligible to receive a rebate or grant, the | ||
organization or company must submit an application to the | ||
Agency and commit to paying the prevailing wage for the | ||
installation project. The Agency shall by rule provide | ||
application and other programmatic details and requirements, | ||
including additional incentives for eligible communities. The | ||
Agency may determine per port or project caps based on a review | ||
of best practices and stakeholder engagement. The Agency shall | ||
accept applications on a rolling basis and shall award rebates |
or grants within 60 days of each application. The Agency may | ||
not award rebates or grants to an organization or company that | ||
does not pay the prevailing wage for the installation of a | ||
charging station for which it seeks a rebate or grant. | ||
(20 ILCS 627/60 new) | ||
Sec. 60. Study on loss infrastructure funds and | ||
replacement options. The Illinois Department of Transportation | ||
shall conduct a study to be delivered to the members of the | ||
Illinois General Assembly and made available to the public no | ||
later than September 30, 2022. The study shall consider how | ||
the proliferation of electric vehicles will adversely affect | ||
resources needed for transportation infrastructure and take | ||
into consideration any relevant federal actions. The study | ||
shall identify the potential revenue loss and offer multiple | ||
options for replacing those lost revenues. The Illinois | ||
Department of Transportation shall collaborate with | ||
organizations representing businesses involved in designing | ||
and building transportation infrastructure, organized labor, | ||
the general business community, and users of the system. In | ||
addition, the Illinois Department of Transportation may | ||
collaborate with other state agencies, including but not | ||
limited to the Illinois Secretary of State and the Illinois | ||
Department of Revenue. | ||
This Section is repealed on January 1, 2024. |
Section 90-23. The Illinois Enterprise Zone Act is amended | ||
by changing Section 5.5 as follows:
| ||
(20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
| ||
Sec. 5.5. High Impact Business.
| ||
(a) In order to respond to unique opportunities to assist | ||
in the
encouragement, development, growth , and expansion of | ||
the private sector through
large scale investment and | ||
development projects, the Department is authorized
to receive | ||
and approve applications for the designation of "High Impact
| ||
Businesses" in Illinois subject to the following conditions:
| ||
(1) such applications may be submitted at any time | ||
during the year;
| ||
(2) such business is not located, at the time of | ||
designation, in
an enterprise zone designated pursuant to | ||
this Act;
| ||
(3) the business intends to do one or more of the | ||
following:
| ||
(A) the business intends to make a minimum | ||
investment of
$12,000,000 which will be placed in | ||
service in qualified property and
intends to create | ||
500 full-time equivalent jobs at a designated location
| ||
in Illinois or intends to make a minimum investment of | ||
$30,000,000 which
will be placed in service in | ||
qualified property and intends to retain 1,500
| ||
full-time retained jobs at a designated location in |
Illinois.
The business must certify in writing that | ||
the investments would not be
placed in service in | ||
qualified property and the job creation or job
| ||
retention would not occur without the tax credits and | ||
exemptions set forth
in subsection (b) of this | ||
Section. The terms "placed in service" and
"qualified | ||
property" have the same meanings as described in | ||
subsection (h)
of Section 201 of the Illinois Income | ||
Tax Act; or
| ||
(B) the business intends to establish a new | ||
electric generating
facility at a designated location | ||
in Illinois. "New electric generating
facility", for | ||
purposes of this Section, means a newly-constructed
| ||
electric
generation plant
or a newly-constructed | ||
generation capacity expansion at an existing electric
| ||
generation
plant, including the transmission lines and | ||
associated
equipment that transfers electricity from | ||
points of supply to points of
delivery, and for which | ||
such new foundation construction commenced not sooner
| ||
than July 1,
2001. Such facility shall be designed to | ||
provide baseload electric
generation and shall operate | ||
on a continuous basis throughout the year;
and (i) | ||
shall have an aggregate rated generating capacity of | ||
at least 1,000
megawatts for all new units at one site | ||
if it uses natural gas as its primary
fuel and | ||
foundation construction of the facility is commenced |
on
or before December 31, 2004, or shall have an | ||
aggregate rated generating
capacity of at least 400 | ||
megawatts for all new units at one site if it uses
coal | ||
or gases derived from coal
as its primary fuel and
| ||
shall support the creation of at least 150 new | ||
Illinois coal mining jobs, or
(ii) shall be funded | ||
through a federal Department of Energy grant before | ||
December 31, 2010 and shall support the creation of | ||
Illinois
coal-mining
jobs, or (iii) shall use coal | ||
gasification or integrated gasification-combined cycle | ||
units
that generate
electricity or chemicals, or both, | ||
and shall support the creation of Illinois
coal-mining
| ||
jobs.
The
business must certify in writing that the | ||
investments necessary to establish
a new electric | ||
generating facility would not be placed in service and | ||
the
job creation in the case of a coal-fueled plant
| ||
would not occur without the tax credits and exemptions | ||
set forth in
subsection (b-5) of this Section. The | ||
term "placed in service" has
the same meaning as | ||
described in subsection
(h) of Section 201 of the | ||
Illinois Income Tax Act; or
| ||
(B-5) the business intends to establish a new | ||
gasification
facility at a designated location in | ||
Illinois. As used in this Section, "new gasification | ||
facility" means a newly constructed coal gasification | ||
facility that generates chemical feedstocks or |
transportation fuels derived from coal (which may | ||
include, but are not limited to, methane, methanol, | ||
and nitrogen fertilizer), that supports the creation | ||
or retention of Illinois coal-mining jobs, and that | ||
qualifies for financial assistance from the Department | ||
before December 31, 2010. A new gasification facility | ||
does not include a pilot project located within | ||
Jefferson County or within a county adjacent to | ||
Jefferson County for synthetic natural gas from coal; | ||
or | ||
(C) the business intends to establish
production | ||
operations at a new coal mine, re-establish production | ||
operations at
a closed coal mine, or expand production | ||
at an existing coal mine
at a designated location in | ||
Illinois not sooner than July 1, 2001;
provided that | ||
the
production operations result in the creation of | ||
150 new Illinois coal mining
jobs as described in | ||
subdivision (a)(3)(B) of this Section, and further
| ||
provided that the coal extracted from such mine is | ||
utilized as the predominant
source for a new electric | ||
generating facility.
The business must certify in | ||
writing that the
investments necessary to establish a | ||
new, expanded, or reopened coal mine would
not
be | ||
placed in service and the job creation would not
occur | ||
without the tax credits and exemptions set forth in | ||
subsection (b-5) of
this Section. The term "placed in |
service" has
the same meaning as described in | ||
subsection (h) of Section 201 of the
Illinois Income | ||
Tax Act; or
| ||
(D) the business intends to construct new | ||
transmission facilities or
upgrade existing | ||
transmission facilities at designated locations in | ||
Illinois,
for which construction commenced not sooner | ||
than July 1, 2001. For the
purposes of this Section, | ||
"transmission facilities" means transmission lines
| ||
with a voltage rating of 115 kilovolts or above, | ||
including associated
equipment, that transfer | ||
electricity from points of supply to points of
| ||
delivery and that transmit a majority of the | ||
electricity generated by a new
electric generating | ||
facility designated as a High Impact Business in | ||
accordance
with this Section. The business must | ||
certify in writing that the investments
necessary to | ||
construct new transmission facilities or upgrade | ||
existing
transmission facilities would not be placed | ||
in service
without the tax credits and exemptions set | ||
forth in subsection (b-5) of this
Section. The term | ||
"placed in service" has the
same meaning as described | ||
in subsection (h) of Section 201 of the Illinois
| ||
Income Tax Act; or
| ||
(E) the business intends to establish a new wind | ||
power facility at a designated location in Illinois. |
For purposes of this Section, "new wind power | ||
facility" means a newly constructed electric | ||
generation facility, or a newly constructed expansion | ||
of an existing electric generation facility, placed in | ||
service on or after July 1, 2009, that generates | ||
electricity using wind energy devices, and such | ||
facility shall be deemed to include all associated | ||
transmission lines, substations, and other equipment | ||
related to the generation of electricity from wind | ||
energy devices. For purposes of this Section, "wind | ||
energy device" means any device, with a nameplate | ||
capacity of at least 0.5 megawatts, that is used in the | ||
process of converting kinetic energy from the wind to | ||
generate electricity; or | ||
(E-5) the business intends to establish a new | ||
utility-scale solar facility at a designated location | ||
in Illinois. For purposes of this Section, "new | ||
utility-scale solar power facility" means a newly | ||
constructed electric generation facility, or a newly | ||
constructed expansion of an existing electric | ||
generation facility, placed in service on or after | ||
July 1, 2021, that (i) generates electricity using | ||
photovoltaic cells and (ii) has a nameplate capacity | ||
that is greater than 5,000 kilowatts, and such | ||
facility shall be deemed to include all associated | ||
transmission lines, substations, energy storage |
facilities, and other equipment related to the | ||
generation and storage of electricity from | ||
photovoltaic cells; or | ||
(F) the business commits to (i) make a minimum | ||
investment of $500,000,000, which will be placed in | ||
service in a qualified property, (ii) create 125 | ||
full-time equivalent jobs at a designated location in | ||
Illinois, (iii) establish a fertilizer plant at a | ||
designated location in Illinois that complies with the | ||
set-back standards as described in Table 1: Initial | ||
Isolation and Protective Action Distances in the 2012 | ||
Emergency Response Guidebook published by the United | ||
States Department of Transportation, (iv) pay a | ||
prevailing wage for employees at that location who are | ||
engaged in construction activities, and (v) secure an | ||
appropriate level of general liability insurance to | ||
protect against catastrophic failure of the fertilizer | ||
plant or any of its constituent systems; in addition, | ||
the business must agree to enter into a construction | ||
project labor agreement including provisions | ||
establishing wages, benefits, and other compensation | ||
for employees performing work under the project labor | ||
agreement at that location; for the purposes of this | ||
Section, "fertilizer plant" means a newly constructed | ||
or upgraded plant utilizing gas used in the production | ||
of anhydrous ammonia and downstream nitrogen |
fertilizer products for resale; for the purposes of | ||
this Section, "prevailing wage" means the hourly cash | ||
wages plus fringe benefits for training and
| ||
apprenticeship programs approved by the U.S. | ||
Department of Labor, Bureau of
Apprenticeship and | ||
Training, health and welfare, insurance, vacations and
| ||
pensions paid generally, in the
locality in which the | ||
work is being performed, to employees engaged in
work | ||
of a similar character on public works; this paragraph | ||
(F) applies only to businesses that submit an | ||
application to the Department within 60 days after | ||
July 25, 2013 ( the effective date of Public Act | ||
98-109) this amendatory Act of the 98th General | ||
Assembly ; and | ||
(4) no later than 90 days after an application is | ||
submitted, the
Department shall notify the applicant of | ||
the Department's determination of
the qualification of the | ||
proposed High Impact Business under this Section.
| ||
(b) Businesses designated as High Impact Businesses | ||
pursuant to
subdivision (a)(3)(A) of this Section shall | ||
qualify for the credits and
exemptions described in the
| ||
following Acts: Section 9-222 and Section 9-222.1A of the | ||
Public Utilities
Act,
subsection (h)
of Section 201 of the | ||
Illinois Income Tax Act,
and Section 1d of
the
Retailers' | ||
Occupation Tax Act; provided that these credits and
exemptions
| ||
described in these Acts shall not be authorized until the |
minimum
investments set forth in subdivision (a)(3)(A) of this
| ||
Section have been placed in
service in qualified properties | ||
and, in the case of the exemptions
described in the Public | ||
Utilities Act and Section 1d of the Retailers'
Occupation Tax | ||
Act, the minimum full-time equivalent jobs or full-time | ||
retained jobs set
forth in subdivision (a)(3)(A) of this | ||
Section have been
created or retained.
Businesses designated | ||
as High Impact Businesses under
this Section shall also
| ||
qualify for the exemption described in Section 5l of the | ||
Retailers' Occupation
Tax Act. The credit provided in | ||
subsection (h) of Section 201 of the Illinois
Income Tax Act | ||
shall be applicable to investments in qualified property as | ||
set
forth in subdivision (a)(3)(A) of this Section.
| ||
(b-5) Businesses designated as High Impact Businesses | ||
pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||
and (a)(3)(D) of this Section shall qualify
for the credits | ||
and exemptions described in the following Acts: Section 51 of
| ||
the Retailers' Occupation Tax Act, Section 9-222 and Section | ||
9-222.1A of the
Public Utilities Act, and subsection (h) of | ||
Section 201 of the Illinois Income
Tax Act; however, the | ||
credits and exemptions authorized under Section 9-222 and
| ||
Section 9-222.1A of the Public Utilities Act, and subsection | ||
(h) of Section 201
of the Illinois Income Tax Act shall not be | ||
authorized until the new electric
generating facility, the new | ||
gasification facility, the new transmission facility, or the | ||
new, expanded, or
reopened coal mine is operational,
except |
that a new electric generating facility whose primary fuel | ||
source is
natural gas is eligible only for the exemption under | ||
Section 5l of the
Retailers' Occupation Tax Act.
| ||
(b-6) Businesses designated as High Impact Businesses | ||
pursuant to subdivision (a)(3)(E) of this Section shall | ||
qualify for the exemptions described in Section 5l of the | ||
Retailers' Occupation Tax Act; any business so designated as a | ||
High Impact Business being, for purposes of this Section, a | ||
"Wind Energy Business". | ||
(b-7) Beginning on January 1, 2021, businesses designated | ||
as High Impact Businesses by the Department shall qualify for | ||
the High Impact Business construction jobs credit under | ||
subsection (h-5) of Section 201 of the Illinois Income Tax Act | ||
if the business meets the criteria set forth in subsection (i) | ||
of this Section. The total aggregate amount of credits awarded | ||
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9 | ||
this amendatory Act of the 101st General Assembly ) shall not | ||
exceed $20,000,000 in any State fiscal year. | ||
(c) High Impact Businesses located in federally designated | ||
foreign trade
zones or sub-zones are also eligible for | ||
additional credits, exemptions and
deductions as described in | ||
the following Acts: Section 9-221 and Section
9-222.1 of the | ||
Public
Utilities Act; and subsection (g) of Section 201, and | ||
Section 203
of the Illinois Income Tax Act.
| ||
(d) Except for businesses contemplated under subdivision | ||
(a)(3)(E) of this Section, existing Illinois businesses which |
apply for designation as a
High Impact Business must provide | ||
the Department with the prospective plan
for which 1,500 | ||
full-time retained jobs would be eliminated in the event that | ||
the
business is not designated.
| ||
(e) Except for new wind power facilities contemplated | ||
under subdivision (a)(3)(E) of this Section, new proposed | ||
facilities which apply for designation as High Impact
Business | ||
must provide the Department with proof of alternative | ||
non-Illinois
sites which would receive the proposed investment | ||
and job creation in the
event that the business is not | ||
designated as a High Impact Business.
| ||
(f) Except for businesses contemplated under subdivision | ||
(a)(3)(E) of this Section, in the event that a business is | ||
designated a High Impact Business
and it is later determined | ||
after reasonable notice and an opportunity for a
hearing as | ||
provided under the Illinois Administrative Procedure Act, that
| ||
the business would have placed in service in qualified | ||
property the
investments and created or retained the requisite | ||
number of jobs without
the benefits of the High Impact | ||
Business designation, the Department shall
be required to | ||
immediately revoke the designation and notify the Director
of | ||
the Department of Revenue who shall begin proceedings to | ||
recover all
wrongfully exempted State taxes with interest. The | ||
business shall also be
ineligible for all State funded | ||
Department programs for a period of 10 years.
| ||
(g) The Department shall revoke a High Impact Business |
designation if
the participating business fails to comply with | ||
the terms and conditions of
the designation. However, the | ||
penalties for new wind power facilities or Wind Energy | ||
Businesses for failure to comply with any of the terms or | ||
conditions of the Illinois Prevailing Wage Act shall be only | ||
those penalties identified in the Illinois Prevailing Wage | ||
Act, and the Department shall not revoke a High Impact | ||
Business designation as a result of the failure to comply with | ||
any of the terms or conditions of the Illinois Prevailing Wage | ||
Act in relation to a new wind power facility or a Wind Energy | ||
Business.
| ||
(h) Prior to designating a business, the Department shall | ||
provide the
members of the General Assembly and Commission on | ||
Government Forecasting and Accountability
with a report | ||
setting forth the terms and conditions of the designation and
| ||
guarantees that have been received by the Department in | ||
relation to the
proposed business being designated.
| ||
(i) High Impact Business construction jobs credit. | ||
Beginning on January 1, 2021, a High Impact Business may | ||
receive a tax credit against the tax imposed under subsections | ||
(a) and (b) of Section 201 of the Illinois Income Tax Act in an | ||
amount equal to 50% of the amount of the incremental income tax | ||
attributable to High Impact Business construction jobs credit | ||
employees employed in the course of completing a High Impact | ||
Business construction jobs project. However, the High Impact | ||
Business construction jobs credit may equal 75% of the amount |
of the incremental income tax attributable to High Impact | ||
Business construction jobs credit employees if the High Impact | ||
Business construction jobs credit project is located in an | ||
underserved area. | ||
The Department shall certify to the Department of Revenue: | ||
(1) the identity of taxpayers that are eligible for the High | ||
Impact Business construction jobs credit; and (2) the amount | ||
of High Impact Business construction jobs credits that are | ||
claimed pursuant to subsection (h-5) of Section 201 of the | ||
Illinois Income Tax Act in each taxable year. Any business | ||
entity that receives a High Impact Business construction jobs | ||
credit shall maintain a certified payroll pursuant to | ||
subsection (j) of this Section. | ||
As used in this subsection (i): | ||
"High Impact Business construction jobs credit" means an | ||
amount equal to 50% (or 75% if the High Impact Business | ||
construction project is located in an underserved area) of the | ||
incremental income tax attributable to High Impact Business | ||
construction job employees. The total aggregate amount of | ||
credits awarded under the Blue Collar Jobs Act (Article 20 of | ||
Public Act 101-9 this amendatory Act of the 101st General | ||
Assembly ) shall not exceed $20,000,000 in any State fiscal | ||
year | ||
"High Impact Business construction job employee" means a | ||
laborer or worker who is employed by an Illinois contractor or | ||
subcontractor in the actual construction work on the site of a |
High Impact Business construction job project. | ||
"High Impact Business construction jobs project" means | ||
building a structure or building or making improvements of any | ||
kind to real property, undertaken and commissioned by a | ||
business that was designated as a High Impact Business by the | ||
Department. The term "High Impact Business construction jobs | ||
project" does not include the routine operation, routine | ||
repair, or routine maintenance of existing structures, | ||
buildings, or real property. | ||
"Incremental income tax" means the total amount withheld | ||
during the taxable year from the compensation of High Impact | ||
Business construction job employees. | ||
"Underserved area" means a geographic area that meets one | ||
or more of the following conditions: | ||
(1) the area has a poverty rate of at least 20% | ||
according to the latest federal decennial census; | ||
(2) 75% or more of the children in the area | ||
participate in the federal free lunch program according to | ||
reported statistics from the State Board of Education; | ||
(3) at least 20% of the households in the area receive | ||
assistance under the Supplemental Nutrition Assistance | ||
Program (SNAP); or | ||
(4) the area has an average unemployment rate, as | ||
determined by the Illinois Department of Employment | ||
Security, that is more than 120% of the national | ||
unemployment average, as determined by the U.S. Department |
of Labor, for a period of at least 2 consecutive calendar | ||
years preceding the date of the application. | ||
(j) Each contractor and subcontractor who is engaged in | ||
and executing a High Impact Business Construction jobs | ||
project, as defined under subsection (i) of this Section, for | ||
a business that is entitled to a credit pursuant to subsection | ||
(i) of this Section shall: | ||
(1) make and keep, for a period of 5 years from the | ||
date of the last payment made on or after June 5, 2021 ( the | ||
effective date of Public Act 101-9) this amendatory Act of | ||
the 101st General Assembly on a contract or subcontract | ||
for a High Impact Business Construction Jobs Project, | ||
records for all laborers and other workers employed by the | ||
contractor or subcontractor on the project; the records | ||
shall include: | ||
(A) the worker's name; | ||
(B) the worker's address; | ||
(C) the worker's telephone number, if available; | ||
(D) the worker's social security number; | ||
(E) the worker's classification or | ||
classifications; | ||
(F) the worker's gross and net wages paid in each | ||
pay period; | ||
(G) the worker's number of hours worked each day; | ||
(H) the worker's starting and ending times of work | ||
each day; |
(I) the worker's hourly wage rate; and | ||
(J) the worker's hourly overtime wage rate; | ||
(2) no later than the 15th day of each calendar month, | ||
provide a certified payroll for the immediately preceding | ||
month to the taxpayer in charge of the High Impact | ||
Business construction jobs project; within 5 business days | ||
after receiving the certified payroll, the taxpayer shall | ||
file the certified payroll with the Department of Labor | ||
and the Department of Commerce and Economic Opportunity; a | ||
certified payroll must be filed for only those calendar | ||
months during which construction on a High Impact Business | ||
construction jobs project has occurred; the certified | ||
payroll shall consist of a complete copy of the records | ||
identified in paragraph (1) of this subsection (j), but | ||
may exclude the starting and ending times of work each | ||
day; the certified payroll shall be accompanied by a | ||
statement signed by the contractor or subcontractor or an | ||
officer, employee, or agent of the contractor or | ||
subcontractor which avers that: | ||
(A) he or she has examined the certified payroll | ||
records required to be submitted by the Act and such | ||
records are true and accurate; and | ||
(B) the contractor or subcontractor is aware that | ||
filing a certified payroll that he or she knows to be | ||
false is a Class A misdemeanor. | ||
A general contractor is not prohibited from relying on a |
certified payroll of a lower-tier subcontractor, provided the | ||
general contractor does not knowingly rely upon a | ||
subcontractor's false certification. | ||
Any contractor or subcontractor subject to this | ||
subsection, and any officer, employee, or agent of such | ||
contractor or subcontractor whose duty as an officer, | ||
employee, or agent it is to file a certified payroll under this | ||
subsection, who willfully fails to file such a certified | ||
payroll on or before the date such certified payroll is | ||
required by this paragraph to be filed and any person who | ||
willfully files a false certified payroll that is false as to | ||
any material fact is in violation of this Act and guilty of a | ||
Class A misdemeanor. | ||
The taxpayer in charge of the project shall keep the | ||
records submitted in accordance with this subsection on or | ||
after June 5, 2021 ( the effective date of Public Act 101-9) | ||
this amendatory Act of the 101st General Assembly for a period | ||
of 5 years from the date of the last payment for work on a | ||
contract or subcontract for the High Impact Business | ||
construction jobs project. | ||
The records submitted in accordance with this subsection | ||
shall be considered public records, except an employee's | ||
address, telephone number, and social security number, and | ||
made available in accordance with the Freedom of Information | ||
Act. The Department of Labor shall accept any reasonable | ||
submissions by the contractor that meet the requirements of |
this subsection (j) and shall share the information with the | ||
Department in order to comply with the awarding of a High | ||
Impact Business construction jobs credit. A contractor, | ||
subcontractor, or public body may retain records required | ||
under this Section in paper or electronic format. | ||
(k) Upon 7 business days' notice, each contractor and | ||
subcontractor shall make available for inspection and copying | ||
at a location within this State during reasonable hours, the | ||
records identified in this subsection (j) to the taxpayer in | ||
charge of the High Impact Business construction jobs project, | ||
its officers and agents, the Director of the Department of | ||
Labor and his or her deputies and agents, and to federal, | ||
State, or local law enforcement agencies and prosecutors. | ||
(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
| ||
Section 90-24. The Department of Labor Law of the
Civil | ||
Administrative Code of Illinois is amended by changing Section | ||
1505-215 and by adding Section 1505-220 as follows: | ||
(20 ILCS 1505/1505-215) | ||
Sec. 1505-215. Bureau on Apprenticeship Programs and Clean | ||
Energy Jobs ; Advisory Board . | ||
(a) For purposes of this Section, "clean energy sector" | ||
means solar energy, wind energy, energy efficiency, solar | ||
thermal, green hydrogen, geothermal, and electric vehicle | ||
industries and other renewable energy industries, industries |
achieving emission reductions, and related industries that | ||
manufacture, develop, build, maintain, or provide ancillary | ||
services to renewable energy resources or energy efficiency | ||
products or services, including the manufacture and | ||
installation of healthier building materials that contain | ||
fewer hazardous chemicals. | ||
(b) There is created within the Department of Labor a | ||
Bureau on Apprenticeship Programs and Clean Energy Jobs . This | ||
Bureau shall work to increase minority participation in active | ||
apprentice programs in Illinois that are approved by the | ||
United States Department of Labor and in clean energy jobs in | ||
Illinois . The Bureau shall identify barriers to minorities | ||
gaining access to construction careers and careers in the | ||
clean energy sector and make recommendations to the Governor | ||
and the General Assembly for policies to remove those | ||
barriers. The Department may hire staff to perform outreach in | ||
promoting diversity in active apprenticeship programs approved | ||
by the United States Department of Labor. | ||
(c) The Bureau shall annually compile racial and gender | ||
workforce diversity information from contractors receiving | ||
State or other public funds and by labor unions with members | ||
working on projects receiving State or other public funds.
| ||
(d) The Bureau shall compile racial and gender workforce | ||
diversity information from certified transcripts of payroll | ||
reports filed in the preceding year pursuant to the Prevailing | ||
Wage Act for all clean energy sector construction projects. |
The Bureau shall work with the Department of Commerce and | ||
Economic Opportunity, the Illinois Power Agency, the Illinois | ||
Commerce Commission, and other agencies, as necessary, to | ||
receive and share data and reporting on racial and gender | ||
workforce diversity, demographic data, and any other data | ||
necessary to achieve the goals of this Section. | ||
(e) By April 15, 2022 and every April 15 thereafter, the | ||
Bureau shall publish and make available on the Department's | ||
website a report summarizing the racial and gender diversity | ||
of the workforce on all clean energy sector projects by | ||
county. The report shall use a consistent structure for | ||
information requests and presentation, with an easy-to-use | ||
table of contents, to enable comparable year-over-year | ||
solicitation and benchmarking of data. The development of the | ||
report structure shall be open to a public review and comment | ||
period. That report shall compare the race, ethnicity, and | ||
gender of the workers on covered clean energy sector projects | ||
to the general population of the county in which the project is | ||
located. The report shall also disaggregate such data to | ||
compare the race, ethnicity, and gender of workers employed by | ||
union and nonunion contractors and compare the race, | ||
ethnicity, and gender of workers who reside in Illinois and | ||
those who reside outside of Illinois. The report shall also | ||
include the race, ethnicity, and gender of the workers by | ||
prevailing wage classification. | ||
(f) The Bureau shall present its annual report to the |
Energy Workforce Advisory Council in order to inform its | ||
program evaluations, recommendations, and objectives pursuant | ||
to Section 5-65 of the Energy Transition Act. The Bureau shall | ||
also present its annual report to the Illinois Power Agency in | ||
order to inform its ongoing equity and compliance efforts in | ||
the clean energy sector. | ||
The Bureau and all entities subject to the requirements of | ||
subsection (d) shall hold an annual workshop open to the | ||
public in 2022 and every year thereafter on the state of racial | ||
and gender workforce diversity in the clean energy sector in | ||
order to collaboratively seek solutions to structural | ||
impediments to achieving diversity, equity, and inclusion | ||
goals, including testimony from each participating entity, | ||
subject matter experts, and advocates. | ||
(g) The Bureau shall publish each annual report prepared | ||
and filed pursuant to subsection (d) on the Department of | ||
Labor's website for at least 5 years. | ||
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20; | ||
revised 10-22-20.) | ||
(20 ILCS 1505/1505-220 new) | ||
Sec. 1505-220. Small Clean Energy Contractor Prevailing | ||
Wage Act Assistance. The General Assembly finds that small | ||
clean energy businesses, especially those in or serving | ||
underserved or historically disinvested communities, need | ||
assistance and resources to help them comply with the |
Prevailing Wage Act. Therefore, the Department of Labor shall | ||
develop and administer a statewide program to assist small | ||
clean energy contractors in administering and complying with | ||
the Prevailing Wage Act requirements. This Program shall | ||
provide training and ongoing technical assistance pertaining | ||
to compliance with the Prevailing Wage Act, including | ||
certified payroll reporting requirements. Ongoing assistance | ||
shall include, but is not limited to, answering contractor | ||
questions, recommending tools and process improvements, | ||
establishing an account with and utilizing the Certified | ||
Transcript of Payroll Portal, building administrative | ||
expertise within individual businesses, and any other | ||
assistance businesses identify as needed based on verbal or | ||
other input. All Program training, technical assistance, | ||
materials, services, and systems shall be structured to | ||
accommodate and address real-world circumstances encountered | ||
by small clean energy contractors; shall be developed, | ||
refined, and adjusted as necessary in consultation with such | ||
contractors; and shall be administered to serve businesses | ||
that operate in languages other than English and do so at a | ||
level of service equivalent to that offered to businesses that | ||
operate in English. The Department may enter into agreements | ||
with entities with experience in supporting small businesses | ||
in underserved or historically disinvested communities to | ||
implement portions or all of the program, ensuring such | ||
capacity is developed in northern, central, and southern |
Illinois regions. The Department shall communicate and market | ||
program services to small clean energy contractors statewide, | ||
and may do so in coordination with the Department of Commerce | ||
and Economic Opportunity. | ||
Section 90-25. The Energy
Efficient Building Act is | ||
amended by changing Sections 10, 15, 20, 30, 40, and 45 and by | ||
adding Section 55 as follows: | ||
(20 ILCS 3125/10) | ||
Sec. 10. Definitions.
| ||
"Board" means the Capital Development Board.
| ||
"Building" includes both residential buildings and | ||
commercial buildings.
| ||
"Code" means the latest published edition of the | ||
International Code Council's International Energy Conservation | ||
Code as adopted by the Board, including any published | ||
supplements adopted by the Board and any amendments and | ||
adaptations to the Code that are made by the
Board.
| ||
"Commercial building" means any building except a building | ||
that is a residential building, as defined in this Section. | ||
"Department" means the Department of Commerce and Economic | ||
Opportunity. | ||
"Municipality" means any city, village, or incorporated | ||
town.
| ||
"Residential building" means (i) a detached one-family or |
2-family dwelling or (ii) any building that is 3 stories or | ||
less in height above grade that contains multiple dwelling | ||
units, in which the occupants reside on a primarily permanent | ||
basis, such as a townhouse, a row house, an apartment house, a | ||
convent, a monastery, a rectory, a fraternity or sorority | ||
house, a dormitory, and a rooming house; provided, however, | ||
that when applied to a building located within the boundaries | ||
of a municipality having a population of 1,000,000 or more, | ||
the term "residential building" means a building containing | ||
one or more dwelling units, not exceeding 4 stories above | ||
grade, where occupants are primarily permanent. | ||
"Site energy index" means a scalar published by the | ||
Pacific Northwest National Laboratories representing the ratio | ||
of the site energy performance of an evaluated code compared | ||
to the site energy performance of the 2006 International | ||
Energy Conservation Code. A "site energy index" includes only | ||
conservation measures and excludes net energy credit for any | ||
on-site or off-site energy production.
| ||
(Source: P.A. 101-144, eff. 7-26-19 .) | ||
(20 ILCS 3125/15)
| ||
Sec. 15. Energy Efficient Building Code. The Board, in | ||
consultation with the Department, shall adopt the Code as | ||
minimum
requirements for commercial buildings, applying to the | ||
construction of, renovations to, and additions to all | ||
commercial buildings in the State. The Board, in consultation |
with the Department, shall also adopt the Code as the minimum | ||
and maximum requirements for residential buildings, applying | ||
to the construction of , renovations to, and additions to all | ||
residential buildings in the State, except as provided for in | ||
Section 45 of this Act. The Board may
appropriately adapt the | ||
International Energy Conservation Code to apply to the
| ||
particular economy, population distribution, geography, and | ||
climate of the
State and construction therein, consistent with | ||
the public policy
objectives of this Act.
| ||
(Source: P.A. 96-778, eff. 8-28-09.) | ||
(20 ILCS 3125/20)
| ||
Sec. 20. Applicability.
| ||
(a) The Board shall review and adopt the Code within one | ||
year after its publication. The Code shall take effect within | ||
6 months after it is adopted by the Board, except that, | ||
beginning January 1, 2012, the Code adopted in 2012 shall take | ||
effect on January 1, 2013. Except as otherwise provided in | ||
this Act, the Code shall apply
to (i) any new building or | ||
structure in this State for which a building permit
| ||
application is received by a municipality or county and (ii) | ||
beginning on the effective date of this amendatory Act of the | ||
100th General Assembly, each State facility specified in | ||
Section 4.01 of the Capital Development Board Act.
In the case | ||
of any addition, alteration, renovation, or repair to an | ||
existing residential or commercial structure, the Code adopted |
under this Act applies only to the portions of that structure | ||
that are being added, altered, renovated, or repaired. The | ||
changes made to this Section by this amendatory Act of the 97th | ||
General Assembly shall in no way invalidate or otherwise | ||
affect contracts entered into on or before the effective date | ||
of this amendatory Act of the 97th General Assembly.
| ||
(b) The following buildings shall be exempt from
the Code:
| ||
(1) Buildings otherwise exempt from the provisions of | ||
a locally adopted
building code and buildings that do not | ||
contain a conditioned space.
| ||
(2) Buildings that do not use either electricity or | ||
fossil fuel for
comfort
conditioning. For purposes of | ||
determining whether this exemption applies, a
building | ||
will be presumed to be heated by electricity, even in the | ||
absence of
equipment used for electric comfort heating, | ||
whenever the building is provided
with electrical service | ||
in excess of 100 amps, unless the code enforcement
| ||
official determines that this electrical service is | ||
necessary for purposes
other than providing electric | ||
comfort heating.
| ||
(3) Historic buildings. This exemption shall apply to | ||
those buildings
that
are listed on the National Register | ||
of Historic Places or the Illinois
Register of Historic | ||
Places, and to those buildings that have been designated
| ||
as historically significant by a local governing body that | ||
is authorized to
make such designations.
|
(4) (Blank). | ||
(5) Other buildings specified as exempt by the | ||
International Energy Conservation Code.
| ||
(c) Additions, alterations, renovations, or repairs to an | ||
existing building, building system, or portion thereof shall | ||
conform to the provisions of the Code as they relate to new | ||
construction without requiring the unaltered portion of the | ||
existing building or building system to comply with the Code. | ||
The following need not comply with the Code, provided that the | ||
energy use of the building is not increased: (i) storm windows | ||
installed over existing fenestration, (ii) glass-only | ||
replacements in an existing sash and frame, (iii) existing | ||
ceiling, wall, or floor cavities exposed during construction, | ||
provided that these cavities are filled with insulation, and | ||
(iv) construction where the existing roof, wall, or floor is | ||
not exposed. | ||
(d) A unit of local government that does not regulate | ||
energy efficient building standards is not required to adopt, | ||
enforce, or administer the Code; however, any energy efficient | ||
building standards adopted by a unit of local government must | ||
comply with this Act. If a unit of local government does not | ||
regulate energy efficient building standards, any | ||
construction, renovation, or addition to buildings or | ||
structures is subject to the provisions contained in this Act. | ||
(Source: P.A. 100-729, eff. 8-3-18.) |
(20 ILCS 3125/30)
| ||
Sec. 30. Enforcement. The
Board, in consultation with the | ||
Department, shall
determine
procedures for compliance with the | ||
Code. These procedures
may include but need not be
limited to | ||
certification by a national, State, or local accredited energy
| ||
conservation program or inspections from private | ||
Code-certified inspectors
using the Code.
For purposes of the | ||
Illinois Stretch Energy Code under Section 55, the Board shall | ||
allow and encourage, as an alternative compliance mechanism, | ||
project certification by a nationally recognized nonprofit | ||
certification organization specializing in high-performance | ||
passive buildings and offering climate-specific building | ||
energy standards that require equal or better energy | ||
performance than the Illinois Stretch Energy Code.
| ||
(Source: P.A. 93-936, eff. 8-13-04.) | ||
(20 ILCS 3125/40)
| ||
Sec. 40. Input from interested parties. When
developing | ||
Code adaptations, rules, and procedures for
compliance with | ||
the Code, the Capital Development Board
shall seek input from | ||
representatives from the building
trades, design | ||
professionals, construction professionals,
code | ||
administrators, and other interested entities affected.
Any | ||
board or group that the Capital Development Board seeks input | ||
from must include the following: | ||
(i) a representative from a group that represents |
environmental justice; | ||
(ii) a representative of a nonprofit or professional | ||
association advocating for the
environment; | ||
(iii) an energy-efficiency advocate with technical | ||
expertise in single-family residential buildings; | ||
(iv) an energy-efficiency advocate with technical | ||
expertise in commercial buildings; and | ||
(v) an energy-efficiency advocate with technical expertise | ||
in multifamily buildings, such as an affordable housing | ||
developer.
| ||
(Source: P.A. 99-639, eff. 7-28-16.) | ||
(20 ILCS 3125/45)
| ||
Sec. 45. Home rule. | ||
(a)
(Blank). No unit of local government, including any | ||
home rule unit, may regulate energy efficient building | ||
standards for commercial buildings in a manner that is less | ||
stringent than the provisions contained in this Act.
| ||
(b) No unit of local government, including any home rule | ||
unit, may regulate energy efficient building standards for | ||
residential buildings in a manner that is either less or more | ||
stringent than the standards established pursuant to this Act; | ||
provided, however, that the following entities may regulate | ||
energy efficient building standards for residential or | ||
commercial buildings in a manner that is more stringent than | ||
the provisions contained in this Act: (i) a unit of local |
government, including a home rule unit, that has, on or before | ||
May 15, 2009, adopted or incorporated by reference energy | ||
efficient building standards for residential or commercial | ||
buildings that are equivalent to or more stringent than the | ||
2006 International Energy Conservation Code, (ii) a unit of | ||
local government, including a home rule unit, that has, on or | ||
before May 15, 2009, provided to the Capital Development | ||
Board, as required by Section 10.18 of the Capital Development | ||
Board Act, an identification of an energy efficient building | ||
code or amendment that is equivalent to or more stringent than | ||
the 2006 International Energy Conservation Code, (ii-5) a | ||
municipality that has adopted the Illinois Stretch Energy | ||
Code, and (iii) a municipality with a population of 1,000,000 | ||
or more. | ||
(c) No unit of local government, including any home rule | ||
unit or unit of local government that is subject to State | ||
regulation under the Code as provided in Section 15 of this | ||
Act, may hereafter enact any annexation ordinance or | ||
resolution, or require or enter into any annexation agreement, | ||
that imposes energy efficient building standards for | ||
residential or commercial buildings that are either less or | ||
more stringent than the energy efficiency standards in effect, | ||
at the time of construction, throughout the unit of local | ||
government , except for the Illinois Stretch Energy Code . | ||
(d) This Section is a denial
and limitation
of home rule | ||
powers and functions under subsection (i) of Section 6
of |
Article VII of the Illinois Constitution on the concurrent | ||
exercise by home rule units of powers and functions exercised | ||
by the State.
Nothing in this Section, however, prevents a | ||
unit of local government from adopting an energy efficiency | ||
code or standards for commercial buildings that are more | ||
stringent than the Code under this Act.
| ||
(e) A unit of local government requiring the Illinois | ||
Stretch Energy Code must do so with the adoption of the Code by | ||
its governing body. | ||
(Source: P.A. 99-639, eff. 7-28-16.) | ||
(20 ILCS 3125/55 new) | ||
Sec. 55. Illinois Stretch Energy Code. | ||
(a) The Board, in consultation with the Department, shall | ||
create and adopt the Illinois Stretch Energy Code, to allow | ||
municipalities and projects authorized or funded by the Board | ||
to achieve more energy efficiency in buildings than the | ||
Illinois Energy Conservation Code through a consistent pathway | ||
across the State. The Illinois Stretch Energy Code shall be | ||
available for adoption by any municipality and shall set
| ||
minimum energy efficiency requirements, taking the place of | ||
the Illinois Energy Conservation Code within any municipality | ||
that adopts the Illinois Stretch Energy Code. | ||
(b) The Illinois Stretch Energy Code shall have separate | ||
components for commercial and residential buildings, which may | ||
be adopted by the municipality jointly or separately. |
(c) The Illinois Stretch Energy Code shall apply to all | ||
projects to which an energy conservation code is applicable | ||
that are authorized or funded in any part by the Board after | ||
January 1, 2024. | ||
(d) Development of the Illinois Stretch Energy Code shall | ||
be completed and available for adoption by municipalities by | ||
December 31, 2023. | ||
(e) Consistent with the requirements under paragraph (2.5) | ||
of subsection (g) of Section 8-103B of the Public Utilities | ||
Act and under paragraph (2) of subsection (j) of Section 8-104 | ||
of the Public Utilities Act, municipalities may adopt the | ||
Illinois Stretch Energy Code and may use utility programs to | ||
support compliance with the Illinois Stretch Energy Code. The | ||
amount of savings from such utility efforts that may be | ||
counted toward achievement of their annual savings goals shall | ||
be based on reasonable estimates of the increase in savings | ||
resulting from the utility efforts, relative to reasonable | ||
approximations of what would have occurred absent the utility | ||
involvement. | ||
(f) The Illinois Stretch Energy Code's residential | ||
components shall: | ||
(1) apply to residential buildings as defined under | ||
Section 10; | ||
(2) set performance targets using a site energy index | ||
with reductions relative to the 2006 International Energy | ||
Conservation Code; and |
(3) include stretch energy codes with site energy | ||
index standards and adoption dates as follows: by no later | ||
than December 31, 2023, the Board shall create and adopt a | ||
stretch energy code with a site energy index no greater | ||
than 0.50 of the 2006 International Energy Conservation | ||
Code; by no later than December 31, 2025, the Board shall | ||
create and adopt a stretch energy code with a site energy | ||
index no greater than 0.40 of the 2006 International | ||
Energy Conservation Code, unless the Board identifies | ||
unanticipated burdens associated with the stretch energy | ||
code adopted in 2023, in which case the Board may adopt a | ||
stretch energy code with a site energy index no greater | ||
than 0.42 of the 2006 International Energy Conservation | ||
Code, provided that the more relaxed standard has a site | ||
energy index that is at least 0.05 more restrictive than | ||
the 2024 International Energy Conservation Code; by no | ||
later than December 31, 2028, the Board shall create and | ||
adopt a stretch energy code with a site energy index no | ||
greater than 0.33 of the 2006 International Energy | ||
Conservation Code, unless the Board identifies | ||
unanticipated burdens associated with the stretch energy | ||
code adopted in 2025, in which case the Board may adopt a | ||
stretch energy code with a site energy index no greater | ||
than 0.35 of the 2006 International Energy Conservation | ||
Code, but only if that more relaxed standard has a site | ||
energy index that is at least 0.05 more restrictive than |
the 2027 International Energy Conservation Code; and by no | ||
later than December 31, 2031, the Board shall create and | ||
adopt a stretch energy code with a site energy index no | ||
greater than 0.25 of the 2006 International Energy | ||
Conservation Code. | ||
(g) The Illinois Stretch Energy Code's commercial | ||
components shall: | ||
(1) apply to commercial buildings as defined under | ||
Section 10; | ||
(2) set performance targets using a site energy index | ||
with reductions relative to the 2006 International Energy | ||
Conservation Code; and | ||
(3) include stretch energy codes with site energy | ||
index standards and adoption dates as follows: by no later | ||
than December 31, 2023, the Board shall create and adopt a | ||
stretch energy code with a site energy index no greater | ||
than 0.60 of the 2006 International Energy Conservation | ||
Code; by no later than December 31, 2025, the Board shall | ||
create and adopt a stretch energy code with a site energy | ||
index no greater than 0.50 of the 2006 International | ||
Energy Conservation Code; by no later than December 31, | ||
2028, the Board shall create and adopt a stretch energy | ||
code with a site energy index no greater than 0.44 of the | ||
2006 International Energy Conservation Code; and by no | ||
later than December 31, 2031, the Board shall create and | ||
adopt a stretch energy code with a site energy index no |
greater than 0.39 of the 2006 International Energy | ||
Conservation Code. | ||
(h) The process for the creation of the Illinois Stretch | ||
Energy Code includes: | ||
(1) within 60 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, the Capital | ||
Development Board shall meet with the Illinois Energy Code | ||
Advisory Council to advise and provide technical | ||
assistance and recommendations to the Capital Development | ||
Board for the Illinois Stretch Energy Code, which shall: | ||
(A) advise the Capital Development Board on | ||
creation of interim performance targets, code | ||
requirements, and an implementation plan for the | ||
Illinois Stretch Energy Code; | ||
(B) recommend amendments to proposed rules issued | ||
by the Capital Development Board; | ||
(C) recommend complementary programs or policies; | ||
(D) complete recommendations and development for | ||
the Illinois Stretch Energy Code elements and | ||
requirements by July 31, 2023; | ||
(2) As part of its deliberations, the Illinois Energy | ||
Code Advisory Council shall actively solicit input from | ||
other energy code stakeholders and interested parties. | ||
Section 90-30. The Illinois Power Agency Act is amended by | ||
changing Sections 1-5, 1-10, 1-20, 1-35, 1-56, 1-70, 1-75, |
1-92, and 1-125 and by adding Section 1-128 as follows: | ||
(20 ILCS 3855/1-5) | ||
Sec. 1-5. Legislative declarations and findings. The | ||
General Assembly finds and declares: | ||
(1) The health, welfare, and prosperity of all | ||
Illinois residents citizens require the provision of | ||
adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability. | ||
(1.5) To provide the highest quality of life for the | ||
residents of Illinois and to provide for a clean and | ||
healthy environment, it is the policy of this State to | ||
rapidly transition to 100% clean energy by 2050. | ||
(2) (Blank). | ||
(3) (Blank). | ||
(4) It is necessary to improve the process of | ||
procuring electricity to serve Illinois residents, to | ||
promote investment in energy efficiency and | ||
demand-response measures, and to maintain and support | ||
development of clean coal technologies, generation | ||
resources that operate at all hours of the day and under | ||
all weather conditions, zero emission facilities, and | ||
renewable resources. | ||
(5) Procuring a diverse electricity supply portfolio |
will ensure the lowest total cost over time for adequate, | ||
reliable, efficient, and environmentally sustainable | ||
electric service. | ||
(6) Including renewable resources and zero emission | ||
credits from zero emission facilities in that portfolio | ||
will reduce long-term direct and indirect costs to | ||
consumers by decreasing environmental impacts and by | ||
avoiding or delaying the need for new generation, | ||
transmission, and distribution infrastructure. Developing | ||
new renewable energy resources in Illinois, including | ||
brownfield solar projects and community solar projects, | ||
will help to diversify Illinois electricity supply, avoid | ||
and reduce pollution, reduce peak demand, and enhance | ||
public health and well-being of Illinois residents. | ||
(7) Developing community solar projects in Illinois | ||
will help to expand access to renewable energy resources | ||
to more Illinois residents. | ||
(8) Developing brownfield solar projects in Illinois | ||
will help return blighted or contaminated land to | ||
productive use while enhancing public health and the | ||
well-being of Illinois residents , including those in | ||
environmental justice communities . | ||
(9) Energy efficiency, demand-response measures, zero | ||
emission energy, and renewable energy are resources | ||
currently underused in Illinois. These resources should be | ||
used, when cost effective, to reduce costs to consumers, |
improve reliability, and improve environmental quality and | ||
public health. | ||
(10) The State should encourage the use of advanced | ||
clean coal technologies that capture and sequester carbon | ||
dioxide emissions to advance environmental protection | ||
goals and to demonstrate the viability of coal and | ||
coal-derived fuels in a carbon-constrained economy. | ||
(10.5) The State should encourage the development of | ||
interregional high voltage direct current (HVDC) | ||
transmission lines that benefit Illinois. All ratepayers | ||
in the State served by the regional transmission | ||
organization where the HVDC converter station is | ||
interconnected benefit from the long-term price stability | ||
and market access provided by interregional HVDC | ||
transmission facilities. The benefits to Illinois include: | ||
reduction in wholesale power prices; access to lower-cost | ||
markets; enabling the integration of additional renewable | ||
generating units within the State through near | ||
instantaneous dispatchability and the provision of | ||
ancillary services; creating good-paying union jobs in | ||
Illinois; and, enhancing grid reliability and climate | ||
resilience via HVDC facilities that are installed | ||
underground. | ||
(10.6) The health, welfare, and safety of the people | ||
of the State are advanced by developing new HVDC | ||
transmission lines predominantly along transportation |
rights-of-way, with an HVDC converter station that is | ||
located in the service territory of a public utility as | ||
defined in Section 3-105 of the Public Utilities Act | ||
serving more than 3,000,000 retail customers, and with a | ||
project labor agreement as defined in Section 1-10 of this | ||
Act. | ||
(11) The General Assembly enacted Public Act 96-0795 | ||
to reform the State's purchasing processes, recognizing | ||
that government procurement is susceptible to abuse if | ||
structural and procedural safeguards are not in place to | ||
ensure independence, insulation, oversight, and | ||
transparency. | ||
(12) The principles that underlie the procurement | ||
reform legislation apply also in the context of power | ||
purchasing. | ||
(13) To ensure that the benefits of installing | ||
renewable resources are available to all Illinois | ||
residents and located across the State, subject to | ||
appropriation, it is necessary for the Agency to provide | ||
public information and educational resources on how | ||
residents can benefit from the expansion of renewable | ||
energy in Illinois and participate in the Illinois Solar | ||
for All Program established in Section 1-56, the | ||
Adjustable Block program established in Section 1-75, the | ||
job training programs established by paragraph (1) of | ||
subsection (a) of Section 16-108.12 of the Public |
Utilities Act, and the programs and resources established | ||
by the Energy Transition Act. | ||
The General Assembly therefore finds that it is necessary | ||
to create the Illinois Power Agency and that the goals and | ||
objectives of that Agency are to accomplish each of the | ||
following: | ||
(A) Develop electricity procurement plans to ensure | ||
adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability, for electric utilities that on December | ||
31, 2005 provided electric service to at least 100,000 | ||
customers in Illinois and for small multi-jurisdictional | ||
electric utilities that (i) on December 31, 2005 served | ||
less than 100,000 customers in Illinois and (ii) request a | ||
procurement plan for their Illinois jurisdictional load. | ||
The procurement plan shall be updated on an annual basis | ||
and shall include renewable energy resources and, | ||
beginning with the delivery year commencing June 1, 2017, | ||
zero emission credits from zero emission facilities | ||
sufficient to achieve the standards specified in this Act. | ||
(B) Conduct the competitive procurement processes | ||
identified in this Act. | ||
(C) Develop electric generation and co-generation | ||
facilities that use indigenous coal or renewable | ||
resources, or both, financed with bonds issued by the |
Illinois Finance Authority. | ||
(D) Supply electricity from the Agency's facilities at | ||
cost to one or more of the following: municipal electric | ||
systems, governmental aggregators, or rural electric | ||
cooperatives in Illinois.
| ||
(E) Ensure that the process of power procurement is | ||
conducted in an ethical and transparent fashion, immune | ||
from improper influence. | ||
(F) Continue to review its policies and practices to | ||
determine how best to meet its mission of providing the | ||
lowest cost power to the greatest number of people, at any | ||
given point in time, in accordance with applicable law. | ||
(G) Operate in a structurally insulated, independent, | ||
and transparent fashion so that nothing impedes the | ||
Agency's mission to secure power at the best prices the | ||
market will bear, provided that the Agency meets all | ||
applicable legal requirements. | ||
(H) Implement renewable energy procurement and | ||
training programs throughout the State to diversify | ||
Illinois electricity supply, improve reliability, avoid | ||
and reduce pollution, reduce peak demand, and enhance | ||
public health and well-being of Illinois residents, | ||
including low-income residents. | ||
(Source: P.A. 99-906, eff. 6-1-17 .)
| ||
(20 ILCS 3855/1-10)
|
Sec. 1-10. Definitions. | ||
"Agency" means the Illinois Power Agency. | ||
"Agency loan agreement" means any agreement pursuant to | ||
which the Illinois Finance Authority agrees to loan the | ||
proceeds of revenue bonds issued with respect to a project to | ||
the Agency upon terms providing for loan repayment | ||
installments at least sufficient to pay when due all principal | ||
of, interest and premium, if any, on those revenue bonds, and | ||
providing for maintenance, insurance, and other matters in | ||
respect of the project. | ||
"Authority" means the Illinois Finance Authority. | ||
"Brownfield site photovoltaic project" means photovoltaics | ||
that are either : | ||
(1) interconnected to an electric utility as defined | ||
in this Section, a municipal utility as defined in this | ||
Section, a public utility as defined in Section 3-105 of | ||
the Public Utilities Act, or an electric cooperative , as | ||
defined in Section 3-119 of the Public Utilities Act ; and | ||
(2) located at a site that is regulated by any of the | ||
following entities under the following programs: | ||
(A) the United States Environmental Protection | ||
Agency under the federal Comprehensive Environmental | ||
Response, Compensation, and Liability Act of 1980, as | ||
amended; | ||
(B) the United States Environmental Protection | ||
Agency under the Corrective Action Program of the |
federal Resource Conservation and Recovery Act, as | ||
amended; | ||
(C) the Illinois Environmental Protection Agency | ||
under the Illinois Site Remediation Program; or | ||
(D) the Illinois Environmental Protection Agency | ||
under the Illinois Solid Waste Program ; or . | ||
(2) located at the site of a coal mine that has
| ||
permanently ceased coal production, permanently halted any | ||
re-mining operations, and is no longer accepting any coal | ||
combustion residues; has both completed all clean-up and | ||
remediation obligations under
the federal Surface Mining | ||
and Reclamation Act of 1977 and all applicable Illinois | ||
rules and any other clean-up, remediation, or ongoing | ||
monitoring to safeguard the health and well-being of the | ||
people of the State of Illinois, as well as demonstrated | ||
compliance with all applicable federal and State | ||
environmental rules and regulations, including, but not | ||
limited, to 35 Ill. Adm. Code Part 845 and any rules for | ||
historic fill of coal combustion residuals, including any | ||
rules finalized in Subdocket A of Illinois Pollution | ||
Control Board docket R2020-019. | ||
"Clean coal facility" means an electric generating | ||
facility that uses primarily coal as a feedstock and that | ||
captures and sequesters carbon dioxide emissions at the | ||
following levels: at least 50% of the total carbon dioxide | ||
emissions that the facility would otherwise emit if, at the |
time construction commences, the facility is scheduled to | ||
commence operation before 2016, at least 70% of the total | ||
carbon dioxide emissions that the facility would otherwise | ||
emit if, at the time construction commences, the facility is | ||
scheduled to commence operation during 2016 or 2017, and at | ||
least 90% of the total carbon dioxide emissions that the | ||
facility would otherwise emit if, at the time construction | ||
commences, the facility is scheduled to commence operation | ||
after 2017. The power block of the clean coal facility shall | ||
not exceed allowable emission rates for sulfur dioxide, | ||
nitrogen oxides, carbon monoxide, particulates and mercury for | ||
a natural gas-fired combined-cycle facility the same size as | ||
and in the same location as the clean coal facility at the time | ||
the clean coal facility obtains an approved air permit. All | ||
coal used by a clean coal facility shall have high volatile | ||
bituminous rank and greater than 1.7 pounds of sulfur per | ||
million btu content, unless the clean coal facility does not | ||
use gasification technology and was operating as a | ||
conventional coal-fired electric generating facility on June | ||
1, 2009 (the effective date of Public Act 95-1027). | ||
"Clean coal SNG brownfield facility" means a facility that | ||
(1) has commenced construction by July 1, 2015 on an urban | ||
brownfield site in a municipality with at least 1,000,000 | ||
residents; (2) uses a gasification process to produce | ||
substitute natural gas; (3) uses coal as at least 50% of the | ||
total feedstock over the term of any sourcing agreement with a |
utility and the remainder of the feedstock may be either | ||
petroleum coke or coal, with all such coal having a high | ||
bituminous rank and greater than 1.7 pounds of sulfur per | ||
million Btu content unless the facility reasonably determines
| ||
that it is necessary to use additional petroleum coke to
| ||
deliver additional consumer savings, in which case the
| ||
facility shall use coal for at least 35% of the total
feedstock | ||
over the term of any sourcing agreement; and (4) captures and | ||
sequesters at least 85% of the total carbon dioxide emissions | ||
that the facility would otherwise emit. | ||
"Clean coal SNG facility" means a facility that uses a | ||
gasification process to produce substitute natural gas, that | ||
sequesters at least 90% of the total carbon dioxide emissions | ||
that the facility would otherwise emit, that uses at least 90% | ||
coal as a feedstock, with all such coal having a high | ||
bituminous rank and greater than 1.7 pounds of sulfur per | ||
million btu content, and that has a valid and effective permit | ||
to construct emission sources and air pollution control | ||
equipment and approval with respect to the federal regulations | ||
for Prevention of Significant Deterioration of Air Quality | ||
(PSD) for the plant pursuant to the federal Clean Air Act; | ||
provided, however, a clean coal SNG brownfield facility shall | ||
not be a clean coal SNG facility. | ||
"Clean energy" means energy generation that is 90% or | ||
greater free of carbon dioxide emissions. | ||
"Commission" means the Illinois Commerce Commission. |
"Community renewable generation project" means an electric | ||
generating facility that: | ||
(1) is powered by wind, solar thermal energy, | ||
photovoltaic cells or panels, biodiesel, crops and | ||
untreated and unadulterated organic waste biomass, tree | ||
waste, and hydropower that does not involve new | ||
construction or significant expansion of hydropower dams; | ||
(2) is interconnected at the distribution system level | ||
of an electric utility as defined in this Section, a | ||
municipal utility as defined in this Section that owns or | ||
operates electric distribution facilities, a public | ||
utility as defined in Section 3-105 of the Public | ||
Utilities Act, or an electric cooperative, as defined in | ||
Section 3-119 of the Public Utilities Act; | ||
(3) credits the value of electricity generated by the | ||
facility to the subscribers of the facility; and | ||
(4) is limited in nameplate capacity to less than or | ||
equal to 5,000 2,000 kilowatts. | ||
"Costs incurred in connection with the development and | ||
construction of a facility" means: | ||
(1) the cost of acquisition of all real property, | ||
fixtures, and improvements in connection therewith and | ||
equipment, personal property, and other property, rights, | ||
and easements acquired that are deemed necessary for the | ||
operation and maintenance of the facility; | ||
(2) financing costs with respect to bonds, notes, and |
other evidences of indebtedness of the Agency; | ||
(3) all origination, commitment, utilization, | ||
facility, placement, underwriting, syndication, credit | ||
enhancement, and rating agency fees; | ||
(4) engineering, design, procurement, consulting, | ||
legal, accounting, title insurance, survey, appraisal, | ||
escrow, trustee, collateral agency, interest rate hedging, | ||
interest rate swap, capitalized interest, contingency, as | ||
required by lenders, and other financing costs, and other | ||
expenses for professional services; and | ||
(5) the costs of plans, specifications, site study and | ||
investigation, installation, surveys, other Agency costs | ||
and estimates of costs, and other expenses necessary or | ||
incidental to determining the feasibility of any project, | ||
together with such other expenses as may be necessary or | ||
incidental to the financing, insuring, acquisition, and | ||
construction of a specific project and starting up, | ||
commissioning, and placing that project in operation. | ||
"Delivery services" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"Delivery year" means the consecutive 12-month period | ||
beginning June 1 of a given year and ending May 31 of the | ||
following year. | ||
"Department" means the Department of Commerce and Economic | ||
Opportunity. | ||
"Director" means the Director of the Illinois Power |
Agency. | ||
"Demand-response" means measures that decrease peak | ||
electricity demand or shift demand from peak to off-peak | ||
periods. | ||
"Distributed renewable energy generation device" means a | ||
device that is: | ||
(1) powered by wind, solar thermal energy, | ||
photovoltaic cells or panels, biodiesel, crops and | ||
untreated and unadulterated organic waste biomass, tree | ||
waste, and hydropower that does not involve new | ||
construction or significant expansion of hydropower dams , | ||
waste heat to power systems, or qualified combined heat | ||
and power systems ; | ||
(2) interconnected at the distribution system level of | ||
either an electric utility as defined in this Section, a | ||
municipal utility as defined in this Section that owns or | ||
operates electric distribution facilities, or a rural | ||
electric cooperative as defined in Section 3-119 of the | ||
Public Utilities Act; | ||
(3) located on the customer side of the customer's | ||
electric meter and is primarily used to offset that | ||
customer's electricity load; and | ||
(4) (blank). limited in nameplate capacity to less | ||
than or equal to 2,000 kilowatts. | ||
"Energy efficiency" means measures that reduce the amount | ||
of electricity or natural gas consumed in order to achieve a |
given end use. "Energy efficiency" includes voltage | ||
optimization measures that optimize the voltage at points on | ||
the electric distribution voltage system and thereby reduce | ||
electricity consumption by electric customers' end use | ||
devices. "Energy efficiency" also includes measures that | ||
reduce the total Btus of electricity, natural gas, and other | ||
fuels needed to meet the end use or uses. | ||
"Electric utility" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"Equity investment eligible community" or "eligible | ||
community" are synonymous and mean the geographic areas | ||
throughout Illinois which would most benefit from equitable | ||
investments by the State designed to combat discrimination. | ||
Specifically, the eligible communities shall be defined as the | ||
following areas: | ||
(1) R3 Areas as established pursuant to Section 10-40 | ||
of the Cannabis Regulation and Tax Act, where residents | ||
have historically been excluded from economic | ||
opportunities, including opportunities in the energy | ||
sector; and | ||
(2) Environmental justice communities, as defined by | ||
the Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, where residents have historically been subject | ||
to disproportionate burdens of pollution, including | ||
pollution from the energy sector. | ||
"Equity eligible persons" or "eligible persons" means |
persons who would most benefit from equitable investments by | ||
the State designed to combat discrimination, specifically: | ||
(1) persons who graduate from or are current or former | ||
participants in the Clean Jobs Workforce Network Program, | ||
the Clean Energy Contractor Incubator Program, the | ||
Illinois Climate Works Preapprenticeship Program, | ||
Returning Residents Clean Jobs Training Program, or the | ||
Clean Energy Primes Contractor Accelerator Program, and | ||
the solar training pipeline and multi-cultural jobs | ||
program created in paragraphs (a)(1) and (a)(3) of Section | ||
16-108.21 of the Public Utilities Act; | ||
(2) persons who are graduates of or currently enrolled | ||
in the foster care system; | ||
(3) persons who were formerly incarcerated; | ||
(4) persons whose primary residence is in an equity | ||
investment eligible community. | ||
"Equity eligible contractor" means a business that is | ||
majority-owned by eligible persons, or a nonprofit or | ||
cooperative that is majority-governed by eligible persons, or | ||
is a natural person that is an eligible person offering | ||
personal services as an independent contractor. | ||
"Facility" means an electric generating unit or a | ||
co-generating unit that produces electricity along with | ||
related equipment necessary to connect the facility to an | ||
electric transmission or distribution system. | ||
"General Contractor" means the entity or organization with |
main responsibility for the building of a construction project | ||
and who is the party signing the prime construction contract | ||
for the project. | ||
"Governmental aggregator" means one or more units of local | ||
government that individually or collectively procure | ||
electricity to serve residential retail electrical loads | ||
located within its or their jurisdiction. | ||
"High voltage direct current converter station" means the | ||
collection of equipment that converts direct current energy | ||
from a high voltage direct current transmission line into | ||
alternating current using Voltage Source Conversion technology | ||
and that is interconnected with transmission or distribution | ||
assets located in Illinois. | ||
"High voltage direct current renewable energy credit" | ||
means a renewable energy credit associated with a renewable | ||
energy resource where the renewable energy resource has | ||
entered into a contract to transmit the energy associated with | ||
such renewable energy credit over high voltage direct current | ||
transmission facilities. | ||
"High voltage direct current transmission facilities" | ||
means the collection of installed equipment that converts | ||
alternating current energy in one location to direct current | ||
and transmits that direct current energy to a high voltage | ||
direct current converter station using Voltage Source | ||
Conversion technology. "High voltage direct current | ||
transmission facilities" includes the high voltage direct |
current converter station itself and associated high voltage | ||
direct current transmission lines. Notwithstanding the | ||
preceding, after the effective date of this amendatory Act of | ||
the 102nd General Assembly, an otherwise qualifying collection | ||
of equipment does not qualify as high voltage direct current | ||
transmission facilities unless its developer entered into a | ||
project labor agreement, is capable of transmitting | ||
electricity at 525kv with an Illinois converter station | ||
located and interconnected in the region of the PJM | ||
Interconnection, LLC, and the system does not operate as a | ||
public utility, as that term is defined in Section 3-105 of the | ||
Public Utilities Act. | ||
"Index price" means the real-time energy settlement price | ||
at the applicable Illinois trading hub, such as PJM-NIHUB or | ||
MISO-IL, for a given settlement period. | ||
"Indexed renewable energy credit" means a tradable credit | ||
that represents the environmental attributes of one megawatt | ||
hour of energy produced from a renewable energy resource, the | ||
price of which shall be calculated by subtracting the strike | ||
price offered by a new utility-scale wind project or a new | ||
utility-scale photovoltaic project from the index price in a | ||
given settlement period. | ||
"Indexed renewable energy credit counterparty" has the | ||
same meaning as "public utility" as defined in Section 3-105 | ||
of the Public Utilities Act. | ||
"Local government" means a unit of local government as |
defined in Section 1 of Article VII of the Illinois | ||
Constitution. | ||
"Municipality" means a city, village, or incorporated | ||
town. | ||
"Municipal utility" means a public utility owned and | ||
operated by any subdivision or municipal corporation of this | ||
State. | ||
"Nameplate capacity" means the aggregate inverter | ||
nameplate capacity in kilowatts AC. | ||
"Person" means any natural person, firm, partnership, | ||
corporation, either domestic or foreign, company, association, | ||
limited liability company, joint stock company, or association | ||
and includes any trustee, receiver, assignee, or personal | ||
representative thereof. | ||
"Project" means the planning, bidding, and construction of | ||
a facility. | ||
"Project labor agreement" means a pre-hire collective | ||
bargaining agreement that covers all terms and conditions of | ||
employment on a specific construction project and must include | ||
the following: | ||
(1) provisions establishing the minimum hourly wage | ||
for each class of labor organization employee; | ||
(2) provisions establishing the benefits and other | ||
compensation for each class of labor organization | ||
employee; | ||
(3) provisions establishing that no strike or disputes |
will be engaged in by the labor organization employees; | ||
(4) provisions establishing that no lockout or | ||
disputes will be engaged in by the general contractor | ||
building the project; and | ||
(5) provisions for minorities and women, as defined | ||
under the Business Enterprise for Minorities, Women, and | ||
Persons with Disabilities Act, setting forth goals for | ||
apprenticeship hours to be performed by minorities and | ||
women and setting forth goals for total hours to be | ||
performed by underrepresented minorities and women. | ||
A labor organization and the general contractor building | ||
the project shall have the authority to include other terms | ||
and conditions as they deem necessary. | ||
"Public utility" has the same definition as found in | ||
Section 3-105 of the Public Utilities Act. | ||
"Qualified combined heat and power systems" means systems | ||
that, either simultaneously or sequentially, produce | ||
electricity and useful thermal energy from a single fuel | ||
source. Such systems are eligible for "renewable energy | ||
credits" in an amount equal to its total energy output where a | ||
renewable fuel is consumed or in an amount equal to the net | ||
reduction in nonrenewable fuel consumed on a total energy | ||
output basis. | ||
"Real property" means any interest in land together with | ||
all structures, fixtures, and improvements thereon, including | ||
lands under water and riparian rights, any easements, |
covenants, licenses, leases, rights-of-way, uses, and other | ||
interests, together with any liens, judgments, mortgages, or | ||
other claims or security interests related to real property. | ||
"Renewable energy credit" means a tradable credit that | ||
represents the environmental attributes of one megawatt hour | ||
of energy produced from a renewable energy resource. | ||
"Renewable energy resources" includes energy and its | ||
associated renewable energy credit or renewable energy credits | ||
from wind, solar thermal energy, photovoltaic cells and | ||
panels, biodiesel, anaerobic digestion, crops and untreated | ||
and unadulterated organic waste biomass, tree waste, and | ||
hydropower that does not involve new construction or | ||
significant expansion of hydropower dams , waste heat to power | ||
systems, or qualified combined heat and power systems . For | ||
purposes of this Act, landfill gas produced in the State is | ||
considered a renewable energy resource. "Renewable energy | ||
resources" does not include the incineration or burning of | ||
tires, garbage, general household, institutional, and | ||
commercial waste, industrial lunchroom or office waste, | ||
landscape waste other than tree waste , railroad crossties, | ||
utility poles, or construction or demolition debris, other | ||
than untreated and unadulterated waste wood. "Renewable energy | ||
resources" also includes high voltage direct current renewable | ||
energy credits and the associated energy converted to | ||
alternating current by a high voltage direct current converter | ||
station to the extent that: (1) the generator of such |
renewable energy resource contracted with a third party to | ||
transmit the energy over the high voltage direct current | ||
transmission facilities, and (2) the third-party contracting | ||
for delivery of renewable energy resources over the high | ||
voltage direct current transmission facilities have ownership | ||
rights over the unretired associated high voltage direct | ||
current renewable energy credit. | ||
"Retail customer" has the same definition as found in | ||
Section 16-102 of the Public Utilities Act. | ||
"Revenue bond" means any bond, note, or other evidence of | ||
indebtedness issued by the Authority, the principal and | ||
interest of which is payable solely from revenues or income | ||
derived from any project or activity of the Agency. | ||
"Sequester" means permanent storage of carbon dioxide by | ||
injecting it into a saline aquifer, a depleted gas reservoir, | ||
or an oil reservoir, directly or through an enhanced oil | ||
recovery process that may involve intermediate storage, | ||
regardless of whether these activities are conducted by a | ||
clean coal facility, a clean coal SNG facility, a clean coal | ||
SNG brownfield facility, or a party with which a clean coal | ||
facility, clean coal SNG facility, or clean coal SNG | ||
brownfield facility has contracted for such purposes. | ||
"Service area" has the same definition as found in Section | ||
16-102 of the Public Utilities Act. | ||
"Settlement period" means the period of time utilized by | ||
MISO and PJM and their successor organizations as the basis |
for settlement calculations in the real-time energy market. | ||
"Sourcing agreement" means (i) in the case of an electric | ||
utility, an agreement between the owner of a clean coal | ||
facility and such electric utility, which agreement shall have | ||
terms and conditions meeting the requirements of paragraph (3) | ||
of subsection (d) of Section 1-75, (ii) in the case of an | ||
alternative retail electric supplier, an agreement between the | ||
owner of a clean coal facility and such alternative retail | ||
electric supplier, which agreement shall have terms and | ||
conditions meeting the requirements of Section 16-115(d)(5) of | ||
the Public Utilities Act, and (iii) in case of a gas utility, | ||
an agreement between the owner of a clean coal SNG brownfield | ||
facility and the gas utility, which agreement shall have the | ||
terms and conditions meeting the requirements of subsection | ||
(h-1) of Section 9-220 of the Public Utilities Act. | ||
"Strike price" means a contract price for energy and | ||
renewable energy credits from a new utility-scale wind project | ||
or a new utility-scale photovoltaic project. | ||
"Subscriber" means a person who (i) takes delivery service | ||
from an electric utility, and (ii) has a subscription of no | ||
less than 200 watts to a community renewable generation | ||
project that is located in the electric utility's service | ||
area. No subscriber's subscriptions may total more than 40% of | ||
the nameplate capacity of an individual community renewable | ||
generation project. Entities that are affiliated by virtue of | ||
a common parent shall not represent multiple subscriptions |
that total more than 40% of the nameplate capacity of an | ||
individual community renewable generation project. | ||
"Subscription" means an interest in a community renewable | ||
generation project expressed in kilowatts, which is sized | ||
primarily to offset part or all of the subscriber's | ||
electricity usage. | ||
"Substitute natural gas" or "SNG" means a gas manufactured | ||
by gasification of hydrocarbon feedstock, which is | ||
substantially interchangeable in use and distribution with | ||
conventional natural gas.
| ||
"Total resource cost test" or "TRC test" means a standard | ||
that is met if, for an investment in energy efficiency or | ||
demand-response measures, the benefit-cost ratio is greater | ||
than one. The benefit-cost ratio is the ratio of the net | ||
present value of the total benefits of the program to the net | ||
present value of the total costs as calculated over the | ||
lifetime of the measures. A total resource cost test compares | ||
the sum of avoided electric utility costs, representing the | ||
benefits that accrue to the system and the participant in the | ||
delivery of those efficiency measures and including avoided | ||
costs associated with reduced use of natural gas or other | ||
fuels, avoided costs associated with reduced water | ||
consumption, and avoided costs associated with reduced | ||
operation and maintenance costs, as well as other quantifiable | ||
societal benefits, to the sum of all incremental costs of | ||
end-use measures that are implemented due to the program |
(including both utility and participant contributions), plus | ||
costs to administer, deliver, and evaluate each demand-side | ||
program, to quantify the net savings obtained by substituting | ||
the demand-side program for supply resources. In calculating | ||
avoided costs of power and energy that an electric utility | ||
would otherwise have had to acquire, reasonable estimates | ||
shall be included of financial costs likely to be imposed by | ||
future regulations and legislation on emissions of greenhouse | ||
gases. In discounting future societal costs and benefits for | ||
the purpose of calculating net present values, a societal | ||
discount rate based on actual, long-term Treasury bond yields | ||
should be used. Notwithstanding anything to the contrary, the | ||
TRC test shall not include or take into account a calculation | ||
of market price suppression effects or demand reduction | ||
induced price effects. | ||
"Utility-scale solar project" means an electric generating | ||
facility that: | ||
(1) generates electricity using photovoltaic cells; | ||
and | ||
(2) has a nameplate capacity that is greater than | ||
5,000 2,000 kilowatts. | ||
"Utility-scale wind project" means an electric generating | ||
facility that: | ||
(1) generates electricity using wind; and | ||
(2) has a nameplate capacity that is greater than | ||
5,000 2,000 kilowatts. |
"Waste Heat to Power Systems" means systems that capture | ||
and generate electricity from energy that would otherwise be | ||
lost to the atmosphere without the use of additional fuel. | ||
"Zero emission credit" means a tradable credit that | ||
represents the environmental attributes of one megawatt hour | ||
of energy produced from a zero emission facility. | ||
"Zero emission facility" means a facility that: (1) is | ||
fueled by nuclear power; and (2) is interconnected with PJM | ||
Interconnection, LLC or the Midcontinent Independent System | ||
Operator, Inc., or their successors. | ||
(Source: P.A. 98-90, eff. 7-15-13; 99-906, eff. 6-1-17 .)
| ||
(20 ILCS 3855/1-20) | ||
Sec. 1-20. General powers and duties of the Agency. | ||
(a) The Agency is authorized to do each of the following: | ||
(1) Develop electricity procurement plans to ensure | ||
adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability, for electric utilities that on December | ||
31, 2005 provided electric service to at least 100,000 | ||
customers in Illinois and for small multi-jurisdictional | ||
electric utilities that (A) on December 31, 2005 served | ||
less than 100,000 customers in Illinois and (B) request a | ||
procurement plan for their Illinois jurisdictional load. | ||
Except as provided in paragraph (1.5) of this subsection |
(a), the electricity procurement plans shall be updated on | ||
an annual basis and shall include electricity generated | ||
from renewable resources sufficient to achieve the | ||
standards specified in this Act. Beginning with the | ||
delivery year commencing June 1, 2017, develop procurement | ||
plans to include zero emission credits generated from zero | ||
emission facilities sufficient to achieve the standards | ||
specified in this Act. Beginning with the delivery year | ||
commencing on June 1, 2022, the Agency is authorized to | ||
develop carbon mitigation credit procurement plans to | ||
include carbon mitigation credits generated from | ||
carbon-free energy resources sufficient to achieve the | ||
standards specified in this Act. | ||
(1.5) Develop a long-term renewable resources | ||
procurement plan in accordance with subsection (c) of | ||
Section 1-75 of this Act for renewable energy credits in | ||
amounts sufficient to achieve the standards specified in | ||
this Act for delivery years commencing June 1, 2017 and | ||
for the programs and renewable energy credits specified in | ||
Section 1-56 of this Act. Electricity procurement plans | ||
for delivery years commencing after May 31, 2017, shall | ||
not include procurement of renewable energy resources. | ||
(2) Conduct competitive procurement processes to | ||
procure the supply resources identified in the electricity | ||
procurement plan, pursuant to Section 16-111.5 of the | ||
Public Utilities Act, and, for the delivery year |
commencing June 1, 2017, conduct procurement processes to | ||
procure zero emission credits from zero emission | ||
facilities, under subsection (d-5) of Section 1-75 of this | ||
Act. For the delivery year commencing June 1, 2022, the | ||
Agency is authorized to conduct procurement processes to | ||
procure carbon mitigation credits from carbon-free energy | ||
resources, under subsection (d-10) of Section 1-75 of this | ||
Act. | ||
(2.5) Beginning with the procurement for the 2017 | ||
delivery year, conduct competitive procurement processes | ||
and implement programs to procure renewable energy credits | ||
identified in the long-term renewable resources | ||
procurement plan developed and approved under subsection | ||
(c) of Section 1-75 of this Act and Section 16-111.5 of the | ||
Public Utilities Act. | ||
(2.10) Oversee the procurement by electric utilities | ||
that served more than 300,000 customers in this State as | ||
of January 1, 2019 of renewable energy credits from new | ||
renewable energy facilities to be installed, along with | ||
energy storage facilities, at or adjacent to the sites of | ||
electric generating facilities that burned coal as their | ||
primary fuel source as of January 1, 2016 in accordance | ||
with subsection (c-5) of Section 1-75 of this Act. | ||
(3) Develop electric generation and co-generation | ||
facilities that use indigenous coal or renewable | ||
resources, or both, financed with bonds issued by the |
Illinois Finance Authority. | ||
(4) Supply electricity from the Agency's facilities at | ||
cost to one or more of the following: municipal electric | ||
systems, governmental aggregators, or rural electric | ||
cooperatives in Illinois. | ||
(b) Except as otherwise limited by this Act, the Agency | ||
has all of the powers necessary or convenient to carry out the | ||
purposes and provisions of this Act, including without | ||
limitation, each of the following: | ||
(1) To have a corporate seal, and to alter that seal at | ||
pleasure, and to use it by causing it or a facsimile to be | ||
affixed or impressed or reproduced in any other manner. | ||
(2) To use the services of the Illinois Finance | ||
Authority necessary to carry out the Agency's purposes. | ||
(3) To negotiate and enter into loan agreements and | ||
other agreements with the Illinois Finance Authority. | ||
(4) To obtain and employ personnel and hire | ||
consultants that are necessary to fulfill the Agency's | ||
purposes, and to make expenditures for that purpose within | ||
the appropriations for that purpose. | ||
(5) To purchase, receive, take by grant, gift, devise, | ||
bequest, or otherwise, lease, or otherwise acquire, own, | ||
hold, improve, employ, use, and otherwise deal in and | ||
with, real or personal property whether tangible or | ||
intangible, or any interest therein, within the State. | ||
(6) To acquire real or personal property, whether |
tangible or intangible, including without limitation | ||
property rights, interests in property, franchises, | ||
obligations, contracts, and debt and equity securities, | ||
and to do so by the exercise of the power of eminent domain | ||
in accordance with Section 1-21; except that any real | ||
property acquired by the exercise of the power of eminent | ||
domain must be located within the State. | ||
(7) To sell, convey, lease, exchange, transfer, | ||
abandon, or otherwise dispose of, or mortgage, pledge, or | ||
create a security interest in, any of its assets, | ||
properties, or any interest therein, wherever situated. | ||
(8) To purchase, take, receive, subscribe for, or | ||
otherwise acquire, hold, make a tender offer for, vote, | ||
employ, sell, lend, lease, exchange, transfer, or | ||
otherwise dispose of, mortgage, pledge, or grant a | ||
security interest in, use, and otherwise deal in and with, | ||
bonds and other obligations, shares, or other securities | ||
(or interests therein) issued by others, whether engaged | ||
in a similar or different business or activity. | ||
(9) To make and execute agreements, contracts, and | ||
other instruments necessary or convenient in the exercise | ||
of the powers and functions of the Agency under this Act, | ||
including contracts with any person, including personal | ||
service contracts, or with any local government, State | ||
agency, or other entity; and all State agencies and all | ||
local governments are authorized to enter into and do all |
things necessary to perform any such agreement, contract, | ||
or other instrument with the Agency. No such agreement, | ||
contract, or other instrument shall exceed 40 years. | ||
(10) To lend money, invest and reinvest its funds in | ||
accordance with the Public Funds Investment Act, and take | ||
and hold real and personal property as security for the | ||
payment of funds loaned or invested. | ||
(11) To borrow money at such rate or rates of interest | ||
as the Agency may determine, issue its notes, bonds, or | ||
other obligations to evidence that indebtedness, and | ||
secure any of its obligations by mortgage or pledge of its | ||
real or personal property, machinery, equipment, | ||
structures, fixtures, inventories, revenues, grants, and | ||
other funds as provided or any interest therein, wherever | ||
situated. | ||
(12) To enter into agreements with the Illinois | ||
Finance Authority to issue bonds whether or not the income | ||
therefrom is exempt from federal taxation. | ||
(13) To procure insurance against any loss in | ||
connection with its properties or operations in such | ||
amount or amounts and from such insurers, including the | ||
federal government, as it may deem necessary or desirable, | ||
and to pay any premiums therefor. | ||
(14) To negotiate and enter into agreements with | ||
trustees or receivers appointed by United States | ||
bankruptcy courts or federal district courts or in other |
proceedings involving adjustment of debts and authorize | ||
proceedings involving adjustment of debts and authorize | ||
legal counsel for the Agency to appear in any such | ||
proceedings. | ||
(15) To file a petition under Chapter 9 of Title 11 of | ||
the United States Bankruptcy Code or take other similar | ||
action for the adjustment of its debts. | ||
(16) To enter into management agreements for the | ||
operation of any of the property or facilities owned by | ||
the Agency. | ||
(17) To enter into an agreement to transfer and to | ||
transfer any land, facilities, fixtures, or equipment of | ||
the Agency to one or more municipal electric systems, | ||
governmental aggregators, or rural electric agencies or | ||
cooperatives, for such consideration and upon such terms | ||
as the Agency may determine to be in the best interest of | ||
the residents citizens of Illinois. | ||
(18) To enter upon any lands and within any building | ||
whenever in its judgment it may be necessary for the | ||
purpose of making surveys and examinations to accomplish | ||
any purpose authorized by this Act. | ||
(19) To maintain an office or offices at such place or | ||
places in the State as it may determine. | ||
(20) To request information, and to make any inquiry, | ||
investigation, survey, or study that the Agency may deem | ||
necessary to enable it effectively to carry out the |
provisions of this Act. | ||
(21) To accept and expend appropriations. | ||
(22) To engage in any activity or operation that is | ||
incidental to and in furtherance of efficient operation to | ||
accomplish the Agency's purposes, including hiring | ||
employees that the Director deems essential for the | ||
operations of the Agency. | ||
(23) To adopt, revise, amend, and repeal rules with | ||
respect to its operations, properties, and facilities as | ||
may be necessary or convenient to carry out the purposes | ||
of this Act, subject to the provisions of the Illinois | ||
Administrative Procedure Act and Sections 1-22 and 1-35 of | ||
this Act. | ||
(24) To establish and collect charges and fees as | ||
described in this Act.
| ||
(25) To conduct competitive gasification feedstock | ||
procurement processes to procure the feedstocks for the | ||
clean coal SNG brownfield facility in accordance with the | ||
requirements of Section 1-78 of this Act. | ||
(26) To review, revise, and approve sourcing | ||
agreements and mediate and resolve disputes between gas | ||
utilities and the clean coal SNG brownfield facility | ||
pursuant to subsection (h-1) of Section 9-220 of the | ||
Public Utilities Act. | ||
(27) To request, review and accept proposals, execute | ||
contracts, purchase renewable energy credits and otherwise |
dedicate funds from the Illinois Power Agency Renewable | ||
Energy Resources Fund to create and carry out the | ||
objectives of the Illinois Solar for All Program program | ||
in accordance with Section 1-56 of this Act. | ||
(28) To ensure Illinois residents and business benefit | ||
from programs administered by the Agency and are properly | ||
protected from any deceptive or misleading marketing | ||
practices by participants in the Agency's programs and | ||
procurements. | ||
(c) In conducting the procurement of electricity or other | ||
products, beginning January 1, 2022, the Agency shall not | ||
procure any products or services from persons or organizations | ||
that are in violation of the Displaced Energy Workers Bill of | ||
Rights, as provided under the Energy Community Reinvestment | ||
Act at the time of the procurement event or fail to comply the | ||
labor standards established in subparagraph (Q) of paragraph | ||
(1) of subsection (c) of Section 1-75. | ||
(Source: P.A. 99-906, eff. 6-1-17 .) | ||
(20 ILCS 3855/1-35)
| ||
Sec. 1-35. Agency rules. The Agency shall adopt rules as | ||
may be necessary and appropriate for the operation of the | ||
Agency. In addition to other rules relevant to the operation | ||
of the Agency, the Agency shall adopt rules that accomplish | ||
each of the following: | ||
(1) Establish procedures for monitoring the |
administration of any contract administered directly or | ||
indirectly by the Agency; except that the procedures shall | ||
not extend to executed contracts between electric | ||
utilities and their suppliers. | ||
(2) If deemed necessary by the Agency, establish | ||
Establish procedures for the recovery of costs incurred in | ||
connection with the development and construction of a | ||
facility should the Agency cancel a project, provided that | ||
no such costs shall be passed on to public utilities or | ||
their customers or paid from the Illinois Power Agency | ||
Operations Fund. | ||
(3) Implement accounting rules and a system of | ||
accounts, in accordance with State law, permitting all | ||
reporting (i) required by the State, (ii) required under | ||
this Act, (iii) required by the Authority, or (iv) | ||
required under the Public Utilities Act. | ||
The Agency shall not adopt any rules that infringe upon | ||
the authority granted to the Commission.
| ||
(Source: P.A. 95-481, eff. 8-28-07.) | ||
(20 ILCS 3855/1-56) | ||
Sec. 1-56. Illinois Power Agency Renewable Energy | ||
Resources Fund; Illinois Solar for All Program. | ||
(a) The Illinois Power Agency Renewable Energy Resources | ||
Fund is created as a special fund in the State treasury. | ||
(b) The Illinois Power Agency Renewable Energy Resources |
Fund shall be administered by the Agency as described in this | ||
subsection (b), provided that the changes to this subsection | ||
(b) made by this amendatory Act of the 99th General Assembly | ||
shall not interfere with existing contracts under this | ||
Section. | ||
(1) The Illinois Power Agency Renewable Energy | ||
Resources Fund shall be used to purchase renewable energy | ||
credits according to any approved procurement plan | ||
developed by the Agency prior to June 1, 2017. | ||
(2) The Illinois Power Agency Renewable Energy | ||
Resources Fund shall also be used to create the Illinois | ||
Solar for All Program, which provides shall include | ||
incentives for low-income distributed generation and | ||
community solar projects, and other associated approved | ||
expenditures. The objectives of the Illinois Solar for All | ||
Program are to bring photovoltaics to low-income | ||
communities in this State in a manner that maximizes the | ||
development of new photovoltaic generating facilities, to | ||
create a long-term, low-income solar marketplace | ||
throughout this State, to integrate, through interaction | ||
with stakeholders, with existing energy efficiency | ||
initiatives, and to minimize administrative costs. The | ||
Illinois Solar for All Program shall be implemented in a | ||
manner that seeks to minimize administrative costs, and | ||
maximize efficiencies and synergies available through | ||
coordination with similar initiatives, including the |
Adjustable Block program described in subparagraphs (K) | ||
through (M) of paragraph (1) of subsection (c) of Section | ||
1-75, energy efficiency programs, job training programs, | ||
and community action agencies. The Agency shall strive to | ||
ensure that renewable energy credits procured through the | ||
Illinois Solar for All Program and each of its subprograms | ||
are purchased from projects across the breadth of | ||
low-income and environmental justice communities in | ||
Illinois, including both urban and rural communities, are | ||
not concentrated in a few communities, and do not exclude | ||
particular low-income or environmental justice | ||
communities. The Agency shall include a description of its | ||
proposed approach to the design, administration, | ||
implementation and evaluation of the Illinois Solar for | ||
All Program, as part of the long-term renewable resources | ||
procurement plan authorized by subsection (c) of Section | ||
1-75 of this Act, and the program shall be designed to grow | ||
the low-income solar market. The Agency or utility, as | ||
applicable, shall purchase renewable energy credits from | ||
the (i) photovoltaic distributed renewable energy | ||
generation projects and (ii) community solar projects that | ||
are procured under procurement processes authorized by the | ||
long-term renewable resources procurement plans approved | ||
by the Commission. | ||
The Illinois Solar for All Program shall include the | ||
program offerings described in subparagraphs (A) through |
(E) (D) of this paragraph (2), which the Agency shall | ||
implement through contracts with third-party providers | ||
and, subject to appropriation, pay the approximate amounts | ||
identified using monies available in the Illinois Power | ||
Agency Renewable Energy Resources Fund. Each contract that | ||
provides for the installation of solar facilities shall | ||
provide that the solar facilities will produce energy and | ||
economic benefits, at a level determined by the Agency to | ||
be reasonable, for the participating low income customers. | ||
The monies available in the Illinois Power Agency | ||
Renewable Energy Resources Fund and not otherwise | ||
committed to contracts executed under subsection (i) of | ||
this Section , as well as, in the case of the programs | ||
described under subparagraphs (A) through (E) of this | ||
paragraph (2), funding authorized pursuant to subparagraph | ||
(O) of paragraph (1) of subsection (c) of Section 1-75 of | ||
this Act, shall initially be allocated among the programs | ||
described in this paragraph (2), as follows: 35% 22.5% of | ||
these funds shall be allocated to programs described in | ||
subparagraphs subparagraph (A) and (E) of this paragraph | ||
(2), 40% 37.5% of these funds shall be allocated to | ||
programs described in subparagraph (B) of this paragraph | ||
(2), and 25% 15% of these funds shall be allocated to | ||
programs described in subparagraph (C) of this paragraph | ||
(2) , and 25% of these funds, but in no event more than | ||
$50,000,000, shall be allocated to programs described in |
subparagraph (D) of this paragraph (2) . The allocation of | ||
funds among subparagraphs (A), (B), or (C) , and (E) of | ||
this paragraph (2) may be changed if the Agency , after | ||
receiving input through a stakeholder process, or | ||
administrator, through delegated authority, determines | ||
incentives in subparagraphs (A), (B), or (C) , or (E) of | ||
this paragraph (2) have not been adequately subscribed to | ||
fully utilize available Illinois Solar for All Program | ||
funds the Illinois Power Agency Renewable Energy Resources | ||
Fund . The determination shall include input through a | ||
stakeholder process. The program offerings described in | ||
subparagraphs (A) through (D) of this paragraph (2) shall | ||
also be implemented through contracts funded from such | ||
additional amounts as are allocated to one or more of the | ||
programs in the long-term renewable resources procurement | ||
plans as specified in subsection (c) of Section 1-75 of | ||
this Act and subparagraph (O) of paragraph (1) of such | ||
subsection (c). | ||
Contracts that will be paid with funds in the Illinois | ||
Power Agency Renewable Energy Resources Fund shall be | ||
executed by the Agency. Contracts that will be paid with | ||
funds collected by an electric utility shall be executed | ||
by the electric utility. | ||
Contracts under the Illinois Solar for All Program | ||
shall include an approach, as set forth in the long-term | ||
renewable resources procurement plans, to ensure the |
wholesale market value of the energy is credited to | ||
participating low-income customers or organizations and to | ||
ensure tangible economic benefits flow directly to program | ||
participants, except in the case of low-income | ||
multi-family housing where the low-income customer does | ||
not directly pay for energy. Priority shall be given to | ||
projects that demonstrate meaningful involvement of | ||
low-income community members in designing the initial | ||
proposals. Acceptable proposals to implement projects must | ||
demonstrate the applicant's ability to conduct initial | ||
community outreach, education, and recruitment of | ||
low-income participants in the community. Projects must | ||
include job training opportunities if available, with the | ||
specific level of trainee usage to be determined through | ||
the Agency's long-term renewable resources procurement | ||
plan, and the Illinois Solar for All Program Administrator | ||
shall endeavor to coordinate with the job training | ||
programs described in paragraph (1) of subsection (a) of | ||
Section 16-108.12 of the Public Utilities Act and in the | ||
Energy Transition Act . | ||
The Agency shall make every effort to ensure that | ||
small and emerging businesses, particularly those located | ||
in low-income and environmental justice communities, are | ||
able to participate in the Illinois Solar for All Program. | ||
These efforts may include, but shall not be limited to, | ||
proactive support from the program administrator, |
different or preferred access to subprograms and | ||
administrator-identified customers or grassroots | ||
education provider-identified customers, and different | ||
incentive levels. The Agency shall report on progress and | ||
barriers to participation of small and emerging businesses | ||
in the Illinois Solar for All Program at least once a year. | ||
The report shall be made available on the Agency's website | ||
and, in years when the Agency is updating its long-term | ||
renewable resources procurement plan, included in that | ||
Plan. | ||
(A) Low-income single-family and small multifamily | ||
solar distributed generation incentive. This program | ||
will provide incentives to low-income customers, | ||
either directly or through solar providers, to | ||
increase the participation of low-income households in | ||
photovoltaic on-site distributed generation at | ||
residential buildings containing one to 4 units . | ||
Companies participating in this program that install | ||
solar panels shall commit to hiring job trainees for a | ||
portion of their low-income installations, and an | ||
administrator shall facilitate partnering the | ||
companies that install solar panels with entities that | ||
provide solar panel installation job training. It is a | ||
goal of this program that a minimum of 25% of the | ||
incentives for this program be allocated to projects | ||
located within environmental justice communities. |
Contracts entered into under this paragraph may be | ||
entered into with an entity that will develop and | ||
administer the program and shall also include | ||
contracts for renewable energy credits from the | ||
photovoltaic distributed generation that is the | ||
subject of the program, as set forth in the long-term | ||
renewable resources procurement plan. Additionally: | ||
(i) The Agency shall reserve a portion of this | ||
program for projects that promote energy | ||
sovereignty through ownership of projects by | ||
low-income households, not-for-profit | ||
organizations providing services to low-income | ||
households, affordable housing owners, community | ||
cooperatives, or community-based limited liability | ||
companies providing services to low-income | ||
households. Projects that feature energy ownership | ||
should ensure that local people have control of | ||
the project and reap benefits from the project | ||
over and above energy bill savings. The Agency may | ||
consider the inclusion of projects that promote | ||
ownership over time or that involve partial | ||
project ownership by communities, as promoting | ||
energy sovereignty. Incentives for projects that | ||
promote energy sovereignty may be higher than | ||
incentives for equivalent projects that do not | ||
promote energy sovereignty under this same |
program. | ||
(ii) Through its long-term renewable resources | ||
procurement plan, the Agency shall consider | ||
additional program and contract requirements to | ||
ensure faithful compliance by applicants | ||
benefiting from preferences for projects | ||
designated to promote energy sovereignty. The | ||
Agency shall make every effort to enable solar | ||
providers already participating in the Adjustable | ||
Block-Program under subparagraph (K) of paragraph | ||
(1) of subsection (c) of Section 1-75 of this Act, | ||
and particularly solar providers developing | ||
projects under item (i) of subparagraph (K) of | ||
paragraph (1) of subsection (c) of Section 1-75 of | ||
this Act to easily participate in the Low-Income | ||
Distributed Generation Incentive program described | ||
under this subparagraph (A), and vice versa. This | ||
effort may include, but shall not be limited to, | ||
utilizing similar or the same application systems | ||
and processes, similar or the same forms and | ||
formats of communication, and providing active | ||
outreach to companies participating in one program | ||
but not the other. The Agency shall report on | ||
efforts made to encourage this cross-participation | ||
in its long-term renewable resources procurement | ||
plan. |
(B) Low-Income Community Solar Project Initiative. | ||
Incentives shall be offered to low-income customers, | ||
either directly or through developers, to increase the | ||
participation of low-income subscribers of community | ||
solar projects. The developer of each project shall | ||
identify its partnership with community stakeholders | ||
regarding the location, development, and participation | ||
in the project, provided that nothing shall preclude a | ||
project from including an anchor tenant that does not | ||
qualify as low-income. Companies participating in this | ||
program that develop or install solar projects shall | ||
commit to hiring job trainees for a portion of their | ||
low-income installations, and an administrator shall | ||
facilitate partnering the companies that install solar | ||
projects with entities that provide solar installation | ||
and related job training. Incentives should also be | ||
offered to community solar projects that are 100% | ||
low-income subscriber owned, which includes low-income | ||
households, not-for-profit organizations, and | ||
affordable housing owners. It is a goal of this | ||
program that a minimum of 25% of the incentives for | ||
this program be allocated to community photovoltaic | ||
projects in environmental justice communities. The | ||
Agency shall reserve a portion of this program for | ||
projects that promote energy sovereignty through | ||
ownership of projects by low-income households, |
not-for-profit organizations providing services to | ||
low-income households, affordable housing owners, or | ||
community-based limited liability companies providing | ||
services to low-income households. Projects that | ||
feature energy ownership should ensure that local | ||
people have control of the project and reap benefits | ||
from the project over and above energy bill savings. | ||
The Agency may consider the inclusion of projects that | ||
promote ownership over time or that involve partial | ||
project ownership by communities, as promoting energy | ||
sovereignty. Incentives for projects that promote | ||
energy sovereignty may be higher than incentives for | ||
equivalent projects that do not promote energy | ||
sovereignty under this same program. Contracts entered | ||
into under this paragraph may be entered into with | ||
developers and shall also include contracts for | ||
renewable energy credits related to the program. | ||
(C) Incentives for non-profits and public | ||
facilities. Under this program funds shall be used to | ||
support on-site photovoltaic distributed renewable | ||
energy generation devices to serve the load associated | ||
with not-for-profit customers and to support | ||
photovoltaic distributed renewable energy generation | ||
that uses photovoltaic technology to serve the load | ||
associated with public sector customers taking service | ||
at public buildings. Companies participating in this |
program that develop or install solar projects shall | ||
commit to hiring job trainees for a portion of their | ||
low-income installations, and an administrator shall | ||
facilitate partnering the companies that install solar | ||
projects with entities that provide solar installation | ||
and related job training. Through its long-term | ||
renewable resources procurement plan, the Agency shall | ||
consider additional program and contract requirements | ||
to ensure faithful compliance by applicants benefiting | ||
from preferences for projects designated to promote | ||
energy sovereignty. It is a goal of this program that | ||
at least 25% of the incentives for this program be | ||
allocated to projects located in environmental justice | ||
communities. Contracts entered into under this | ||
paragraph may be entered into with an entity that will | ||
develop and administer the program or with developers | ||
and shall also include contracts for renewable energy | ||
credits related to the program. | ||
(D) (Blank). Low-Income Community Solar Pilot | ||
Projects. Under this program, persons, including, but | ||
not limited to, electric utilities, shall propose | ||
pilot community solar projects. Community solar | ||
projects proposed under this subparagraph (D) may | ||
exceed 2,000 kilowatts in nameplate capacity, but the | ||
amount paid per project under this program may not | ||
exceed $20,000,000. Pilot projects must result in |
economic benefits for the members of the community in | ||
which the project will be located. The proposed pilot | ||
project must include a partnership with at least one | ||
community-based organization. Approved pilot projects | ||
shall be competitively bid by the Agency, subject to | ||
fair and equitable guidelines developed by the Agency. | ||
Funding available under this subparagraph (D) may not | ||
be distributed solely to a utility, and at least some | ||
funds under this subparagraph (D) must include a | ||
project partnership that includes community ownership | ||
by the project subscribers. Contracts entered into | ||
under this paragraph may be entered into with an | ||
entity that will develop and administer the program or | ||
with developers and shall also include contracts for | ||
renewable energy credits related to the program. A | ||
project proposed by a utility that is implemented | ||
under this subparagraph (D) shall not be included in | ||
the utility's ratebase. | ||
(E) Low-income large multifamily solar incentive.
| ||
This program shall provide incentives to low-income
| ||
customers, either directly or through solar providers,
| ||
to increase the participation of low-income households
| ||
in photovoltaic on-site distributed generation at
| ||
residential buildings with 5 or more units. Companies
| ||
participating in this program that develop or install
| ||
solar projects shall commit to hiring job trainees for
|
a portion of their low-income installations, and an
| ||
administrator shall facilitate partnering the
| ||
companies that install solar projects with entities
| ||
that provide solar installation and related job
| ||
training. It is a goal of this program that a minimum
| ||
of 25% of the incentives for this program be allocated
| ||
to projects located within environmental justice
| ||
communities. The Agency shall reserve a portion of
| ||
this program for projects that promote energy
| ||
sovereignty through ownership of projects by
| ||
low-income households, not-for-profit organizations
| ||
providing services to low-income households,
| ||
affordable housing owners, or community-based limited
| ||
liability companies providing services to low-income
| ||
households. Projects that feature energy ownership | ||
should ensure that local people have control of the | ||
project and reap benefits from the project over and | ||
above energy bill savings. The Agency may consider the | ||
inclusion of projects that promote ownership over time | ||
or that involve partial project ownership by | ||
communities, as promoting energy sovereignty. | ||
Incentives for projects that promote energy
| ||
sovereignty may be higher than incentives for
| ||
equivalent projects that do not promote energy
| ||
sovereignty under this same program. | ||
The requirement that a qualified person, as defined in |
paragraph (1) of subsection (i) of this Section, install | ||
photovoltaic devices does not apply to the Illinois Solar | ||
for All Program described in this subsection (b). | ||
In addition to the programs outlined in paragraphs (A) | ||
through (E), the Agency and other parties may propose | ||
additional programs through the Long-Term Renewable | ||
Resources Procurement Plan developed and approved under | ||
paragraph (5) of subsection (b) of Section 16-111.5 of the | ||
Public Utilities Act. Additional programs may target | ||
market segments not specified above and may also include | ||
incentives targeted to increase the uptake of | ||
nonphotovoltaic technologies by low-income customers, | ||
including energy storage paired with photovoltaics, if the | ||
Commission determines that the Illinois Solar for All | ||
Program would provide greater benefits to the public | ||
health and well-being of low-income residents through also | ||
supporting that additional program versus supporting | ||
programs already authorized. | ||
(3) Costs associated with the Illinois Solar for All | ||
Program and its components described in paragraph (2) of | ||
this subsection (b), including, but not limited to, costs | ||
associated with procuring experts, consultants, and the | ||
program administrator referenced in this subsection (b) | ||
and related incremental costs, costs related to income | ||
verification and facilitating customer participation in | ||
the program, and costs related to the evaluation of the |
Illinois Solar for All Program, may be paid for using | ||
monies in the Illinois Power Agency Renewable Energy | ||
Resources Fund, and funds allocated pursuant to | ||
subparagraph (O) of paragraph (1) of subsection (c) of | ||
Section 1-75, but the Agency or program administrator | ||
shall strive to minimize costs in the implementation of | ||
the program. The Agency or contracting electric utility | ||
shall purchase renewable energy credits from generation | ||
that is the subject of a contract under subparagraphs (A) | ||
through (E) (D) of this paragraph (2) of this subsection | ||
(b), and may pay for such renewable energy credits through | ||
an upfront payment per installed kilowatt of nameplate | ||
capacity paid once the device is interconnected at the | ||
distribution system level of the interconnecting utility | ||
and verified as is energized. Payments for renewable | ||
energy credits The payment shall be in exchange for an | ||
assignment of all renewable energy credits generated by | ||
the system during the first 15 years of operation and | ||
shall be structured to overcome barriers to participation | ||
in the solar market by the low-income community. The | ||
incentives provided for in this Section may be implemented | ||
through the pricing of renewable energy credits where the | ||
prices paid for the credits are higher than the prices | ||
from programs offered under subsection (c) of Section 1-75 | ||
of this Act to account for the additional capital | ||
necessary to successfully access targeted market segments |
incentives. The Agency shall ensure collaboration with | ||
community agencies, and allocate up to 5% of the funds | ||
available under the Illinois Solar for All Program to | ||
community-based groups to assist in grassroots education | ||
efforts related to the Illinois Solar for All Program . The | ||
Agency or contracting electric utility shall retire any | ||
renewable energy credits purchased under from this program | ||
and the credits shall count towards the obligation under | ||
subsection (c) of Section 1-75 of this Act for the | ||
electric utility to which the project is interconnected , | ||
if applicable. | ||
The Agency shall direct that up to 5% of the funds | ||
available under the Illinois Solar for All Program to | ||
community-based groups and other qualifying organizations | ||
to assist in community-driven education efforts related to | ||
the Illinois Solar for All Program, including general | ||
energy education, job training program outreach efforts, | ||
and other activities deemed to be qualified by the Agency. | ||
Grassroots education funding shall not be used to support | ||
the marketing by solar project development firms and | ||
organizations, unless such education provides equal | ||
opportunities for all applicable firms and organizations . | ||
(4) The Agency shall, consistent with the requirements | ||
of this subsection (b), propose the Illinois Solar for All | ||
Program terms, conditions, and requirements, including the | ||
prices to be paid for renewable energy credits, and which |
prices may be determined through a formula, through the | ||
development, review, and approval of the Agency's | ||
long-term renewable resources procurement plan described | ||
in subsection (c) of Section 1-75 of this Act and Section | ||
16-111.5 of the Public Utilities Act. In the course of the | ||
Commission proceeding initiated to review and approve the | ||
plan, including the Illinois Solar for All Program | ||
proposed by the Agency, a party may propose an additional | ||
low-income solar or solar incentive program, or | ||
modifications to the programs proposed by the Agency, and | ||
the Commission may approve an additional program, or | ||
modifications to the Agency's proposed program, if the | ||
additional or modified program more effectively maximizes | ||
the benefits to low-income customers after taking into | ||
account all relevant factors, including, but not limited | ||
to, the extent to which a competitive market for | ||
low-income solar has developed. Following the Commission's | ||
approval of the Illinois Solar for All Program, the Agency | ||
or a party may propose adjustments to the program terms, | ||
conditions, and requirements, including the price offered | ||
to new systems, to ensure the long-term viability and | ||
success of the program. The Commission shall review and | ||
approve any modifications to the program through the plan | ||
revision process described in Section 16-111.5 of the | ||
Public Utilities Act. | ||
(5) The Agency shall issue a request for |
qualifications for a third-party program administrator or | ||
administrators to administer all or a portion of the | ||
Illinois Solar for All Program. The third-party program | ||
administrator shall be chosen through a competitive bid | ||
process based on selection criteria and requirements | ||
developed by the Agency, including, but not limited to, | ||
experience in administering low-income energy programs and | ||
overseeing statewide clean energy or energy efficiency | ||
services. If the Agency retains a program administrator or | ||
administrators to implement all or a portion of the | ||
Illinois Solar for All Program, each administrator shall | ||
periodically submit reports to the Agency and Commission | ||
for each program that it administers, at appropriate | ||
intervals to be identified by the Agency in its long-term | ||
renewable resources procurement plan, provided that the | ||
reporting interval is at least quarterly. The third-party | ||
program administrator may be, but need not be, the same | ||
administrator as for the Adjustable Block program | ||
described in subparagraphs (K) through (M) of paragraph | ||
(1) of subsection (c) of Section 1-75. The Agency, through | ||
its long-term renewable resources procurement plan | ||
approval process, shall also determine if individual | ||
subprograms of the Illinois Solar for All Program are | ||
better served by a different or separate Program | ||
Administrator. | ||
The third-party administrator's responsibilities |
shall also include facilitating placement for graduates of | ||
Illinois-based renewable energy-specific job training | ||
programs, including the Clean Jobs Workforce Network | ||
Program and the Illinois Climate Works Preapprenticeship | ||
Program administered by the Department of Commerce and | ||
Economic Opportunity and programs administered under | ||
Section 16-108.12 of the Public Utilities Act. To increase | ||
the uptake of trainees by participating firms, the | ||
administrator shall also develop a web-based clearinghouse | ||
for information available to both job training program | ||
graduates and firms participating, directly or indirectly, | ||
in Illinois solar incentive programs. The program | ||
administrator shall also coordinate its activities with | ||
entities implementing electric and natural gas | ||
income-qualified energy efficiency programs, including | ||
customer referrals to and from such programs, and connect | ||
prospective low-income solar customers with any existing | ||
deferred maintenance programs where applicable. | ||
(6) The long-term renewable resources procurement plan | ||
shall also provide for an independent evaluation of the | ||
Illinois Solar for All Program. At least every 2 years, | ||
the Agency shall select an independent evaluator to review | ||
and report on the Illinois Solar for All Program and the | ||
performance of the third-party program administrator of | ||
the Illinois Solar for All Program. The evaluation shall | ||
be based on objective criteria developed through a public |
stakeholder process. The process shall include feedback | ||
and participation from Illinois Solar for All Program | ||
stakeholders, including participants and organizations in | ||
environmental justice and historically underserved | ||
communities. The report shall include a summary of the | ||
evaluation of the Illinois Solar for All Program based on | ||
the stakeholder developed objective criteria. The report | ||
shall include the number of projects installed; the total | ||
installed capacity in kilowatts; the average cost per | ||
kilowatt of installed capacity to the extent reasonably | ||
obtainable by the Agency; the number of jobs or job | ||
opportunities created; economic, social, and environmental | ||
benefits created; and the total administrative costs | ||
expended by the Agency and program administrator to | ||
implement and evaluate the program. The report shall be | ||
delivered to the Commission and posted on the Agency's | ||
website, and shall be used, as needed, to revise the | ||
Illinois Solar for All Program. The Commission shall also | ||
consider the results of the evaluation as part of its | ||
review of the long-term renewable resources procurement | ||
plan under subsection (c) of Section 1-75 of this Act. | ||
(7) If additional funding for the programs described | ||
in this subsection (b) is available under subsection (k) | ||
of Section 16-108 of the Public Utilities Act, then the | ||
Agency shall submit a procurement plan to the Commission | ||
no later than September 1, 2018, that proposes how the |
Agency will procure programs on behalf of the applicable | ||
utility. After notice and hearing, the Commission shall | ||
approve, or approve with modification, the plan no later | ||
than November 1, 2018. | ||
(8) As part of the development and update of the
| ||
long-term renewable resources procurement plan authorized
| ||
by subsection (c) of Section 1-75 of this Act, the Agency
| ||
shall plan for: (A) actions to refer customers from the
| ||
Illinois Solar for All Program to electric and natural gas
| ||
income-qualified energy efficiency programs, and vice
| ||
versa, with the goal of increasing participation in both
| ||
of these programs; (B) effective procedures for data
| ||
sharing, as needed, to effectuate referrals between the
| ||
Illinois Solar for All Program and both electric and
| ||
natural gas income-qualified energy efficiency programs,
| ||
including sharing customer information directly with the
| ||
utilities, as needed and appropriate; and (C) efforts to
| ||
identify any existing deferred maintenance programs for
| ||
which prospective Solar for All Program customers may be | ||
eligible
and connect prospective customers for whom | ||
deferred
maintenance is or may be a barrier to solar | ||
installation
to those programs. | ||
As used in this subsection (b), "low-income households" | ||
means persons and families whose income does not exceed 80% of | ||
area median income, adjusted for family size and revised every | ||
5 years. |
For the purposes of this subsection (b), the Agency shall | ||
define "environmental justice community" based on the | ||
methodologies and findings established by the Agency and the | ||
Administrator for the Illinois Solar for All Program in its | ||
initial long-term renewable resources procurement plan and as | ||
updated by the Agency and the Administrator for the Illinois | ||
Solar for All Program as part of the long-term renewable | ||
resources procurement plan update development, to ensure, to | ||
the extent practicable, compatibility with other agencies' | ||
definitions and may, for guidance, look to the definitions | ||
used by federal, state, or local governments . | ||
(b-5) After the receipt of all payments required by | ||
Section 16-115D of the Public Utilities Act, no additional | ||
funds shall be deposited into the Illinois Power Agency | ||
Renewable Energy Resources Fund unless directed by order of | ||
the Commission. | ||
(b-10) After the receipt of all payments required by | ||
Section 16-115D of the Public Utilities Act and payment in | ||
full of all contracts executed by the Agency under subsections | ||
(b) and (i) of this Section, if the balance of the Illinois | ||
Power Agency Renewable Energy Resources Fund is under $5,000, | ||
then the Fund shall be inoperative and any remaining funds and | ||
any funds submitted to the Fund after that date, shall be | ||
transferred to the Supplemental Low-Income Energy Assistance | ||
Fund for use in the Low-Income Home Energy Assistance Program, | ||
as authorized by the Energy Assistance Act. |
(c) (Blank). | ||
(d) (Blank). | ||
(e) All renewable energy credits procured using monies | ||
from the Illinois Power Agency Renewable Energy Resources Fund | ||
shall be permanently retired. | ||
(f) The selection of one or more third-party program | ||
managers or administrators, the selection of the independent | ||
evaluator, and the procurement processes described in this | ||
Section are exempt from the requirements of the Illinois | ||
Procurement Code, under Section 20-10 of that Code. | ||
(g) All disbursements from the Illinois Power Agency | ||
Renewable Energy Resources Fund shall be made only upon | ||
warrants of the Comptroller drawn upon the Treasurer as | ||
custodian of the Fund upon vouchers signed by the Director or | ||
by the person or persons designated by the Director for that | ||
purpose. The Comptroller is authorized to draw the warrant | ||
upon vouchers so signed. The Treasurer shall accept all | ||
warrants so signed and shall be released from liability for | ||
all payments made on those warrants. | ||
(h) The Illinois Power Agency Renewable Energy Resources | ||
Fund shall not be subject to sweeps, administrative charges, | ||
or chargebacks, including, but not limited to, those | ||
authorized under Section 8h of the State Finance Act, that | ||
would in any way result in the transfer of any funds from this | ||
Fund to any other fund of this State or in having any such | ||
funds utilized for any purpose other than the express purposes |
set forth in this Section.
| ||
(h-5) The Agency may assess fees to each bidder to recover | ||
the costs incurred in connection with a procurement process | ||
held under this Section. Fees collected from bidders shall be | ||
deposited into the Renewable Energy Resources Fund. | ||
(i) Supplemental procurement process. | ||
(1) Within 90 days after the effective date of this | ||
amendatory Act of the 98th General Assembly, the Agency | ||
shall develop a one-time supplemental procurement plan | ||
limited to the procurement of renewable energy credits, if | ||
available, from new or existing photovoltaics, including, | ||
but not limited to, distributed photovoltaic generation. | ||
Nothing in this subsection (i) requires procurement of | ||
wind generation through the supplemental procurement. | ||
Renewable energy credits procured from new | ||
photovoltaics, including, but not limited to, distributed | ||
photovoltaic generation, under this subsection (i) must be | ||
procured from devices installed by a qualified person. In | ||
its supplemental procurement plan, the Agency shall | ||
establish contractually enforceable mechanisms for | ||
ensuring that the installation of new photovoltaics is | ||
performed by a qualified person. | ||
For the purposes of this paragraph (1), "qualified | ||
person" means a person who performs installations of | ||
photovoltaics, including, but not limited to, distributed | ||
photovoltaic generation, and who: (A) has completed an |
apprenticeship as a journeyman electrician from a United | ||
States Department of Labor registered electrical | ||
apprenticeship and training program and received a | ||
certification of satisfactory completion; or (B) does not | ||
currently meet the criteria under clause (A) of this | ||
paragraph (1), but is enrolled in a United States | ||
Department of Labor registered electrical apprenticeship | ||
program, provided that the person is directly supervised | ||
by a person who meets the criteria under clause (A) of this | ||
paragraph (1); or (C) has obtained one of the following | ||
credentials in addition to attesting to satisfactory | ||
completion of at least 5 years or 8,000 hours of | ||
documented hands-on electrical experience: (i) a North | ||
American Board of Certified Energy Practitioners (NABCEP) | ||
Installer Certificate for Solar PV; (ii) an Underwriters | ||
Laboratories (UL) PV Systems Installer Certificate; (iii) | ||
an Electronics Technicians Association, International | ||
(ETAI) Level 3 PV Installer Certificate; or (iv) an | ||
Associate in Applied Science degree from an Illinois | ||
Community College Board approved community college program | ||
in renewable energy or a distributed generation | ||
technology. | ||
For the purposes of this paragraph (1), "directly | ||
supervised" means that there is a qualified person who | ||
meets the qualifications under clause (A) of this | ||
paragraph (1) and who is available for supervision and |
consultation regarding the work performed by persons under | ||
clause (B) of this paragraph (1), including a final | ||
inspection of the installation work that has been directly | ||
supervised to ensure safety and conformity with applicable | ||
codes. | ||
For the purposes of this paragraph (1), "install" | ||
means the major activities and actions required to | ||
connect, in accordance with applicable building and | ||
electrical codes, the conductors, connectors, and all | ||
associated fittings, devices, power outlets, or | ||
apparatuses mounted at the premises that are directly | ||
involved in delivering energy to the premises' electrical | ||
wiring from the photovoltaics, including, but not limited | ||
to, to distributed photovoltaic generation. | ||
The renewable energy credits procured pursuant to the | ||
supplemental procurement plan shall be procured using up | ||
to $30,000,000 from the Illinois Power Agency Renewable | ||
Energy Resources Fund. The Agency shall not plan to use | ||
funds from the Illinois Power Agency Renewable Energy | ||
Resources Fund in excess of the monies on deposit in such | ||
fund or projected to be deposited into such fund. The | ||
supplemental procurement plan shall ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable renewable energy resources (including credits) | ||
at the lowest total cost over time, taking into account | ||
any benefits of price stability. |
To the extent available, 50% of the renewable energy | ||
credits procured from distributed renewable energy | ||
generation shall come from devices of less than 25 | ||
kilowatts in nameplate capacity. Procurement of renewable | ||
energy credits from distributed renewable energy | ||
generation devices shall be done through multi-year | ||
contracts of no less than 5 years. The Agency shall create | ||
credit requirements for counterparties. In order to | ||
minimize the administrative burden on contracting | ||
entities, the Agency shall solicit the use of third | ||
parties to aggregate distributed renewable energy. These | ||
third parties shall enter into and administer contracts | ||
with individual distributed renewable energy generation | ||
device owners. An individual distributed renewable energy | ||
generation device owner shall
have the ability to measure | ||
the output of his or her distributed renewable energy | ||
generation device. | ||
In developing the supplemental procurement plan, the | ||
Agency shall hold at least one workshop open to the public | ||
within 90 days after the effective date of this amendatory | ||
Act of the 98th General Assembly and shall consider any | ||
comments made by stakeholders or the public. Upon | ||
development of the supplemental procurement plan within | ||
this 90-day period, copies of the supplemental procurement | ||
plan shall be posted and made publicly available on the | ||
Agency's and Commission's websites. All interested parties |
shall have 14 days following the date of posting to | ||
provide comment to the Agency on the supplemental | ||
procurement plan. All comments submitted to the Agency | ||
shall be specific, supported by data or other detailed | ||
analyses, and, if objecting to all or a portion of the | ||
supplemental procurement plan, accompanied by specific | ||
alternative wording or proposals. All comments shall be | ||
posted on the Agency's and Commission's websites. Within | ||
14 days following the end of the 14-day review period, the | ||
Agency shall revise the supplemental procurement plan as | ||
necessary based on the comments received and file its | ||
revised supplemental procurement plan with the Commission | ||
for approval. | ||
(2) Within 5 days after the filing of the supplemental | ||
procurement plan at the Commission, any person objecting | ||
to the supplemental procurement plan shall file an | ||
objection with the Commission. Within 10 days after the | ||
filing, the Commission shall determine whether a hearing | ||
is necessary. The Commission shall enter its order | ||
confirming or modifying the supplemental procurement plan | ||
within 90 days after the filing of the supplemental | ||
procurement plan by the Agency. | ||
(3) The Commission shall approve the supplemental | ||
procurement plan of renewable energy credits to be | ||
procured from new or existing photovoltaics, including, | ||
but not limited to, distributed photovoltaic generation, |
if the Commission determines that it will ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable electric service in the form of renewable | ||
energy credits at the lowest total cost over time, taking | ||
into account any benefits of price stability. | ||
(4) The supplemental procurement process under this | ||
subsection (i) shall include each of the following | ||
components: | ||
(A) Procurement administrator. The Agency may | ||
retain a procurement administrator in the manner set | ||
forth in item (2) of subsection (a) of Section 1-75 of | ||
this Act to conduct the supplemental procurement or | ||
may elect to use the same procurement administrator | ||
administering the Agency's annual procurement under | ||
Section 1-75. | ||
(B) Procurement monitor. The procurement monitor | ||
retained by the Commission pursuant to Section | ||
16-111.5 of the Public Utilities Act shall: | ||
(i) monitor interactions among the procurement | ||
administrator and bidders and suppliers; | ||
(ii) monitor and report to the Commission on | ||
the progress of the supplemental procurement | ||
process; | ||
(iii) provide an independent confidential | ||
report to the Commission regarding the results of | ||
the procurement events; |
(iv) assess compliance with the procurement | ||
plan approved by the Commission for the | ||
supplemental procurement process; | ||
(v) preserve the confidentiality of supplier | ||
and bidding information in a manner consistent | ||
with all applicable laws, rules, regulations, and | ||
tariffs; | ||
(vi) provide expert advice to the Commission | ||
and consult with the procurement administrator | ||
regarding issues related to procurement process | ||
design, rules, protocols, and policy-related | ||
matters; | ||
(vii) consult with the procurement | ||
administrator regarding the development and use of | ||
benchmark criteria, standard form contracts, | ||
credit policies, and bid documents; and | ||
(viii) perform, with respect to the | ||
supplemental procurement process, any other | ||
procurement monitor duties specifically delineated | ||
within subsection (i) of this Section. | ||
(C) Solicitation, pre-qualification, and | ||
registration of bidders. The procurement administrator | ||
shall disseminate information to potential bidders to | ||
promote a procurement event, notify potential bidders | ||
that the procurement administrator may enter into a | ||
post-bid price negotiation with bidders that meet the |
applicable benchmarks, provide supply requirements, | ||
and otherwise explain the competitive procurement | ||
process. In addition to such other publication as the | ||
procurement administrator determines is appropriate, | ||
this information shall be posted on the Agency's and | ||
the Commission's websites. The procurement | ||
administrator shall also administer the | ||
prequalification process, including evaluation of | ||
credit worthiness, compliance with procurement rules, | ||
and agreement to the standard form contract developed | ||
pursuant to item (D) of this paragraph (4). The | ||
procurement administrator shall then identify and | ||
register bidders to participate in the procurement | ||
event. | ||
(D) Standard contract forms and credit terms and | ||
instruments. The procurement administrator, in | ||
consultation with the Agency, the Commission, and | ||
other interested parties and subject to Commission | ||
oversight, shall develop and provide standard contract | ||
forms for the supplier contracts that meet generally | ||
accepted industry practices as well as include any | ||
applicable State of Illinois terms and conditions that | ||
are required for contracts entered into by an agency | ||
of the State of Illinois. Standard credit terms and | ||
instruments that meet generally accepted industry | ||
practices shall be similarly developed. Contracts for |
new photovoltaics shall include a provision attesting | ||
that the supplier will use a qualified person for the | ||
installation of the device pursuant to paragraph (1) | ||
of subsection (i) of this Section. The procurement | ||
administrator shall make available to the Commission | ||
all written comments it receives on the contract | ||
forms,
credit terms, or instruments. If the | ||
procurement administrator cannot reach agreement with | ||
the parties as to the contract terms and conditions, | ||
the procurement administrator must notify the | ||
Commission of any disputed terms and the Commission | ||
shall resolve the dispute. The terms of the contracts | ||
shall not be subject to negotiation by winning | ||
bidders, and the bidders must agree to the terms of the | ||
contract in advance so that winning bids are selected | ||
solely on the basis of price. | ||
(E) Requests for proposals; competitive | ||
procurement process. The procurement administrator | ||
shall design and issue requests for proposals to | ||
supply renewable energy credits in accordance with the | ||
supplemental procurement plan, as approved by the | ||
Commission. The requests for proposals shall set forth | ||
a procedure for sealed, binding commitment bidding | ||
with pay-as-bid settlement, and provision for | ||
selection of bids on the basis of price, provided, | ||
however, that no bid shall be accepted if it exceeds |
the benchmark developed pursuant to item (F) of this | ||
paragraph (4). | ||
(F) Benchmarks. Benchmarks for each product to be | ||
procured shall be developed by the procurement | ||
administrator in consultation with Commission staff, | ||
the Agency, and the procurement monitor for use in | ||
this supplemental procurement. | ||
(G) A plan for implementing contingencies in the | ||
event of supplier default, Commission rejection of | ||
results, or any other cause. | ||
(5) Within 2 business days after opening the sealed | ||
bids, the procurement administrator shall submit a | ||
confidential report to the Commission. The report shall | ||
contain the results of the bidding for each of the | ||
products along with the procurement administrator's | ||
recommendation for the acceptance and rejection of bids | ||
based on the price benchmark criteria and other factors | ||
observed in the process. The procurement monitor also | ||
shall submit a confidential report to the Commission | ||
within 2 business days after opening the sealed bids. The | ||
report shall contain the procurement monitor's assessment | ||
of bidder behavior in the process as well as an assessment | ||
of the procurement administrator's compliance with the | ||
procurement process and rules. The Commission shall review | ||
the confidential reports submitted by the procurement | ||
administrator and procurement monitor and shall accept or |
reject the recommendations of the procurement | ||
administrator within 2 business days after receipt of the | ||
reports. | ||
(6) Within 3 business days after the Commission | ||
decision approving the results of a procurement event, the | ||
Agency shall enter into binding contractual arrangements | ||
with the winning suppliers using the standard form | ||
contracts. | ||
(7) The names of the successful bidders and the | ||
average of the winning bid prices for each contract type | ||
and for each contract term shall be made available to the | ||
public within 2 days after the supplemental procurement | ||
event. The Commission, the procurement monitor, the | ||
procurement administrator, the Agency, and all | ||
participants in the procurement process shall maintain the | ||
confidentiality of all other supplier and bidding | ||
information in a manner consistent with all applicable | ||
laws, rules, regulations, and tariffs. Confidential | ||
information, including the confidential reports submitted | ||
by the procurement administrator and procurement monitor | ||
pursuant to this Section, shall not be made publicly | ||
available and shall not be discoverable by any party in | ||
any proceeding, absent a compelling demonstration of need, | ||
nor shall those reports be admissible in any proceeding | ||
other than one for law enforcement purposes. | ||
(8) The supplemental procurement provided in this |
subsection (i) shall not be subject to the requirements | ||
and limitations of subsections (c) and (d) of this | ||
Section. | ||
(9) Expenses incurred in connection with the | ||
procurement process held pursuant to this Section, | ||
including, but not limited to, the cost of developing the | ||
supplemental procurement plan, the procurement | ||
administrator, procurement monitor, and the cost of the | ||
retirement of renewable energy credits purchased pursuant | ||
to the supplemental procurement shall be paid for from the | ||
Illinois Power Agency Renewable Energy Resources Fund. The | ||
Agency shall enter into an interagency agreement with the | ||
Commission to reimburse the Commission for its costs | ||
associated with the procurement monitor for the | ||
supplemental procurement process. | ||
(Source: P.A. 98-672, eff. 6-30-14; 99-906, eff. 6-1-17 .) | ||
(20 ILCS 3855/1-70)
| ||
Sec. 1-70. Agency officials. | ||
(a) The Agency shall have a Director who meets the | ||
qualifications specified in Section 5-222 of the Civil | ||
Administrative Code of Illinois. | ||
(b) Within the Illinois Power Agency, the Agency shall | ||
establish a Planning and Procurement Bureau and may establish | ||
a Resource Development Bureau. Each Bureau shall report to the | ||
Director. |
(c) The Chief of the Planning and Procurement Bureau shall | ||
be appointed by the Director, at the Director's sole | ||
discretion, and (i) shall have at least 5 years of direct | ||
experience in electricity supply planning and procurement and | ||
(ii) shall also hold an advanced degree in risk management, | ||
law, business, or a related field. | ||
(d) The Chief of the Resource Development Bureau may be | ||
appointed by the Director and (i) shall have at least 5 years | ||
of direct experience in electric generating project | ||
development and (ii) shall also hold an advanced degree in | ||
economics, engineering, law, business, or a related field. | ||
(e) For terms ending before December 31, 2019, the | ||
Director shall receive an annual salary of $100,000 or as set | ||
by the Executive Ethics Commission based on a review of | ||
comparable State agency director salaries, whichever is | ||
higher. No annual salary for the Director or a Bureau Chief | ||
shall exceed the amount of salary set by law for the Governor | ||
that is in effect on July 1 of that fiscal year. Compensation | ||
Review Board, whichever is higher. For terms ending before | ||
December 31, 2019, the Bureau Chiefs shall each receive an | ||
annual salary of $85,000 or as set by the Compensation Review | ||
Board, whichever is higher. For terms beginning after the | ||
effective date of this amendatory Act of the 100th General | ||
Assembly, the annual salaries for the Director and the Bureau | ||
Chiefs shall be an amount equal to 15% more than the respective | ||
position's annual salary as of December 31, 2018. The |
calculation of the 2018 salary base for this adjustment shall | ||
not include any cost of living adjustments, as authorized by | ||
Senate Joint Resolution 192 of the 86th General Assembly, for | ||
the period beginning July 1, 2009 to June 30, 2019. Beginning | ||
July 1, 2019 and each July 1 thereafter, the Director and the | ||
Bureau Chiefs shall receive an increase in salary based on a | ||
cost of living adjustment as authorized by Senate Joint | ||
Resolution 192 of the 86th General Assembly. | ||
(f) The Director and Bureau Chiefs shall not, for 2 years | ||
prior to appointment or for 2 years after he or she leaves his | ||
or her position, be employed by an electric utility, | ||
independent power producer, power marketer, or alternative | ||
retail electric supplier regulated by the Commission or the | ||
Federal Energy Regulatory Commission. | ||
(g) The Director and Bureau Chiefs are prohibited from: | ||
(i) owning, directly or indirectly, 5% or more of the voting | ||
capital stock of an electric utility, independent power | ||
producer, power marketer, or alternative retail electric | ||
supplier; (ii) being in any chain of successive ownership of | ||
5% or more of the voting capital stock of any electric utility, | ||
independent power producer, power marketer, or alternative | ||
retail electric supplier; (iii) receiving any form of | ||
compensation, fee, payment, or other consideration from an | ||
electric utility, independent power producer, power marketer, | ||
or alternative retail electric supplier, including legal fees, | ||
consulting fees, bonuses, or other sums. These limitations do |
not apply to any compensation received pursuant to a defined | ||
benefit plan or other form of deferred compensation, provided | ||
that the individual has otherwise severed all ties to the | ||
utility, power producer, power marketer, or alternative retail | ||
electric supplier.
| ||
(Source: P.A. 99-536, eff. 7-8-16; 100-1179, eff. 1-18-19.) | ||
(20 ILCS 3855/1-75) | ||
Sec. 1-75. Planning and Procurement Bureau. The Planning | ||
and Procurement Bureau has the following duties and | ||
responsibilities: | ||
(a) The Planning and Procurement Bureau shall each year, | ||
beginning in 2008, develop procurement plans and conduct | ||
competitive procurement processes in accordance with the | ||
requirements of Section 16-111.5 of the Public Utilities Act | ||
for the eligible retail customers of electric utilities that | ||
on December 31, 2005 provided electric service to at least | ||
100,000 customers in Illinois. Beginning with the delivery | ||
year commencing on June 1, 2017, the Planning and Procurement | ||
Bureau shall develop plans and processes for the procurement | ||
of zero emission credits from zero emission facilities in | ||
accordance with the requirements of subsection (d-5) of this | ||
Section. Beginning on the effective date of this amendatory | ||
Act of the 102nd General Assembly, the Planning and | ||
Procurement Bureau shall develop plans and processes for the | ||
procurement of carbon mitigation credits from carbon-free |
energy resources in accordance with the requirements of | ||
subsection (d-10) of this Section. The Planning and | ||
Procurement Bureau shall also develop procurement plans and | ||
conduct competitive procurement processes in accordance with | ||
the requirements of Section 16-111.5 of the Public Utilities | ||
Act for the eligible retail customers of small | ||
multi-jurisdictional electric utilities that (i) on December | ||
31, 2005 served less than 100,000 customers in Illinois and | ||
(ii) request a procurement plan for their Illinois | ||
jurisdictional load. This Section shall not apply to a small | ||
multi-jurisdictional utility until such time as a small | ||
multi-jurisdictional utility requests the Agency to prepare a | ||
procurement plan for their Illinois jurisdictional load. For | ||
the purposes of this Section, the term "eligible retail | ||
customers" has the same definition as found in Section | ||
16-111.5(a) of the Public Utilities Act. | ||
Beginning with the plan or plans to be implemented in the | ||
2017 delivery year, the Agency shall no longer include the | ||
procurement of renewable energy resources in the annual | ||
procurement plans required by this subsection (a), except as | ||
provided in subsection (q) of Section 16-111.5 of the Public | ||
Utilities Act, and shall instead develop a long-term renewable | ||
resources procurement plan in accordance with subsection (c) | ||
of this Section and Section 16-111.5 of the Public Utilities | ||
Act. | ||
In accordance with subsection (c-5) of this Section, the |
Planning and Procurement Bureau shall oversee the procurement | ||
by electric utilities that served more than 300,000 retail | ||
customers in this State as of January 1, 2019 of renewable | ||
energy credits from new utility-scale solar projects to be | ||
installed, along with energy storage facilities, at or | ||
adjacent to the sites of electric generating facilities that, | ||
as of January 1, 2016, burned coal as their primary fuel | ||
source. | ||
(1) The Agency shall each year, beginning in 2008, as | ||
needed, issue a request for qualifications for experts or | ||
expert consulting firms to develop the procurement plans | ||
in accordance with Section 16-111.5 of the Public | ||
Utilities Act. In order to qualify an expert or expert | ||
consulting firm must have: | ||
(A) direct previous experience assembling | ||
large-scale power supply plans or portfolios for | ||
end-use customers; | ||
(B) an advanced degree in economics, mathematics, | ||
engineering, risk management, or a related area of | ||
study; | ||
(C) 10 years of experience in the electricity | ||
sector, including managing supply risk; | ||
(D) expertise in wholesale electricity market | ||
rules, including those established by the Federal | ||
Energy Regulatory Commission and regional transmission | ||
organizations; |
(E) expertise in credit protocols and familiarity | ||
with contract protocols; | ||
(F) adequate resources to perform and fulfill the | ||
required functions and responsibilities; and | ||
(G) the absence of a conflict of interest and | ||
inappropriate bias for or against potential bidders or | ||
the affected electric utilities. | ||
(2) The Agency shall each year, as needed, issue a | ||
request for qualifications for a procurement administrator | ||
to conduct the competitive procurement processes in | ||
accordance with Section 16-111.5 of the Public Utilities | ||
Act. In order to qualify an expert or expert consulting | ||
firm must have: | ||
(A) direct previous experience administering a | ||
large-scale competitive procurement process; | ||
(B) an advanced degree in economics, mathematics, | ||
engineering, or a related area of study; | ||
(C) 10 years of experience in the electricity | ||
sector, including risk management experience; | ||
(D) expertise in wholesale electricity market | ||
rules, including those established by the Federal | ||
Energy Regulatory Commission and regional transmission | ||
organizations; | ||
(E) expertise in credit and contract protocols; | ||
(F) adequate resources to perform and fulfill the | ||
required functions and responsibilities; and |
(G) the absence of a conflict of interest and | ||
inappropriate bias for or against potential bidders or | ||
the affected electric utilities. | ||
(3) The Agency shall provide affected utilities and | ||
other interested parties with the lists of qualified | ||
experts or expert consulting firms identified through the | ||
request for qualifications processes that are under | ||
consideration to develop the procurement plans and to | ||
serve as the procurement administrator. The Agency shall | ||
also provide each qualified expert's or expert consulting | ||
firm's response to the request for qualifications. All | ||
information provided under this subparagraph shall also be | ||
provided to the Commission. The Agency may provide by rule | ||
for fees associated with supplying the information to | ||
utilities and other interested parties. These parties | ||
shall, within 5 business days, notify the Agency in | ||
writing if they object to any experts or expert consulting | ||
firms on the lists. Objections shall be based on: | ||
(A) failure to satisfy qualification criteria; | ||
(B) identification of a conflict of interest; or | ||
(C) evidence of inappropriate bias for or against | ||
potential bidders or the affected utilities. | ||
The Agency shall remove experts or expert consulting | ||
firms from the lists within 10 days if there is a | ||
reasonable basis for an objection and provide the updated | ||
lists to the affected utilities and other interested |
parties. If the Agency fails to remove an expert or expert | ||
consulting firm from a list, an objecting party may seek | ||
review by the Commission within 5 days thereafter by | ||
filing a petition, and the Commission shall render a | ||
ruling on the petition within 10 days. There is no right of | ||
appeal of the Commission's ruling. | ||
(4) The Agency shall issue requests for proposals to | ||
the qualified experts or expert consulting firms to | ||
develop a procurement plan for the affected utilities and | ||
to serve as procurement administrator. | ||
(5) The Agency shall select an expert or expert | ||
consulting firm to develop procurement plans based on the | ||
proposals submitted and shall award contracts of up to 5 | ||
years to those selected. | ||
(6) The Agency shall select an expert or expert | ||
consulting firm, with approval of the Commission, to serve | ||
as procurement administrator based on the proposals | ||
submitted. If the Commission rejects, within 5 days, the | ||
Agency's selection, the Agency shall submit another | ||
recommendation within 3 days based on the proposals | ||
submitted. The Agency shall award a 5-year contract to the | ||
expert or expert consulting firm so selected with | ||
Commission approval. | ||
(b) The experts or expert consulting firms retained by the | ||
Agency shall, as appropriate, prepare procurement plans, and | ||
conduct a competitive procurement process as prescribed in |
Section 16-111.5 of the Public Utilities Act, to ensure | ||
adequate, reliable, affordable, efficient, and environmentally | ||
sustainable electric service at the lowest total cost over | ||
time, taking into account any benefits of price stability, for | ||
eligible retail customers of electric utilities that on | ||
December 31, 2005 provided electric service to at least | ||
100,000 customers in the State of Illinois, and for eligible | ||
Illinois retail customers of small multi-jurisdictional | ||
electric utilities that (i) on December 31, 2005 served less | ||
than 100,000 customers in Illinois and (ii) request a | ||
procurement plan for their Illinois jurisdictional load. | ||
(c) Renewable portfolio standard. | ||
(1)(A) The Agency shall develop a long-term renewable | ||
resources procurement plan that shall include procurement | ||
programs and competitive procurement events necessary to | ||
meet the goals set forth in this subsection (c). The | ||
initial long-term renewable resources procurement plan | ||
shall be released for comment no later than 160 days after | ||
June 1, 2017 (the effective date of Public Act 99-906). | ||
The Agency shall review, and may revise on an expedited | ||
basis, the long-term renewable resources procurement plan | ||
at least every 2 years, which shall be conducted in | ||
conjunction with the procurement plan under Section | ||
16-111.5 of the Public Utilities Act to the extent | ||
practicable to minimize administrative expense. No later | ||
than 120 days after the effective date of this amendatory |
Act of the 102nd General Assembly, the Agency shall | ||
release for comment a revision to the long-term renewable | ||
resources procurement plan, updating elements of the most | ||
recently approved plan as needed to comply with this | ||
amendatory Act of the 102nd General Assembly, and any | ||
long-term renewable resources procurement plan update | ||
published by the Agency but not yet approved by the | ||
Illinois Commerce Commission shall be withdrawn. The | ||
long-term renewable resources procurement plans shall be | ||
subject to review and approval by the Commission under | ||
Section 16-111.5 of the Public Utilities Act. | ||
(B) Subject to subparagraph (F) of this paragraph (1), | ||
the long-term renewable resources procurement plan shall | ||
attempt to meet include the goals for procurement of | ||
renewable energy credits at levels of to meet at least the | ||
following overall percentages: 13% by the 2017 delivery | ||
year; increasing by at least 1.5% each delivery year | ||
thereafter to at least 25% by the 2025 delivery year; | ||
increasing by at least 3% each delivery year thereafter to | ||
at least 40% by the 2030 delivery year, and continuing at | ||
no less than 40% 25% for each delivery year thereafter. | ||
The Agency shall attempt to procure 50% by delivery year | ||
2040. The Agency shall determine the annual increase | ||
between delivery year 2030 and delivery year 2040, if any, | ||
taking into account energy demand, other energy resources, | ||
and other public policy goals. In the event of a conflict |
between these goals and the new wind and new photovoltaic | ||
procurement requirements described in items (i) through | ||
(iii) of subparagraph (C) of this paragraph (1), the | ||
long-term plan shall prioritize compliance with the new | ||
wind and new photovoltaic procurement requirements | ||
described in items (i) through (iii) of subparagraph (C) | ||
of this paragraph (1) over the annual percentage targets | ||
described in this subparagraph (B). The Agency shall not | ||
comply with the annual percentage targets described in | ||
this subparagraph (B) by procuring renewable energy | ||
credits that are unlikely to lead to the development of | ||
new renewable resources. | ||
For the delivery year beginning June 1, 2017, the | ||
procurement plan shall attempt to include , subject to the | ||
prioritization outlined in this subparagraph (B), | ||
cost-effective renewable energy resources equal to at | ||
least 13% of each utility's load for eligible retail | ||
customers and 13% of the applicable portion of each | ||
utility's load for retail customers who are not eligible | ||
retail customers, which applicable portion shall equal 50% | ||
of the utility's load for retail customers who are not | ||
eligible retail customers on February 28, 2017. | ||
For the delivery year beginning June 1, 2018, the | ||
procurement plan shall attempt to include , subject to the | ||
prioritization outlined in this subparagraph (B), | ||
cost-effective renewable energy resources equal to at |
least 14.5% of each utility's load for eligible retail | ||
customers and 14.5% of the applicable portion of each | ||
utility's load for retail customers who are not eligible | ||
retail customers, which applicable portion shall equal 75% | ||
of the utility's load for retail customers who are not | ||
eligible retail customers on February 28, 2017. | ||
For the delivery year beginning June 1, 2019, and for | ||
each year thereafter, the procurement plans shall attempt | ||
to include , subject to the prioritization outlined in this | ||
subparagraph (B), cost-effective renewable energy | ||
resources equal to a minimum percentage of each utility's | ||
load for all retail customers as follows: 16% by June 1, | ||
2019; increasing by 1.5% each year thereafter to 25% by | ||
June 1, 2025; and 25% by June 1, 2026 ; increasing by at | ||
least 3% each delivery year thereafter to at least 40% by | ||
the 2030 delivery year, and continuing at no less than 40% | ||
for each delivery year thereafter. The Agency shall | ||
attempt to procure 50% by delivery year 2040. The Agency | ||
shall determine the annual increase between delivery year | ||
2030 and delivery year 2040, if any, taking into account | ||
energy demand, other energy resources, and other public | ||
policy goals. | ||
For each delivery year, the Agency shall first | ||
recognize each utility's obligations for that delivery | ||
year under existing contracts. Any renewable energy | ||
credits under existing contracts, including renewable |
energy credits as part of renewable energy resources, | ||
shall be used to meet the goals set forth in this | ||
subsection (c) for the delivery year. | ||
(C) Of the renewable energy credits procured under | ||
this subsection (c), at least 75% shall come from wind and | ||
photovoltaic projects. The long-term renewable resources | ||
procurement plan described in subparagraph (A) of this | ||
paragraph (1) shall include the procurement of renewable | ||
energy credits from new projects in amounts equal to at | ||
least the following: | ||
(i) 10,000,000 renewable energy credits delivered | ||
annually by the end of the 2021 delivery year, and | ||
increasing ratably to reach 45,000,000 renewable | ||
energy credits delivered annually from new wind and | ||
solar projects by the end of delivery year 2030 such | ||
that the goals in subparagraph (B) of this paragraph | ||
(1) are met entirely by procurements of renewable | ||
energy credits from new wind and photovoltaic | ||
projects. Of By the end of the 2020 delivery year: At | ||
least 2,000,000 renewable energy credits for each | ||
delivery year shall come from new wind projects; and | ||
At least 2,000,000 renewable energy credits for each | ||
delivery year shall come from new photovoltaic | ||
projects; of that amount, to the extent possible, the | ||
Agency shall procure 45% from wind projects and 55% | ||
from photovoltaic projects. Of the amount to be |
procured from photovoltaic projects, the Agency shall | ||
procure : at least 50% from solar photovoltaic projects | ||
using the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
generation devices or community renewable generation | ||
projects; at least 47% 40% from utility-scale solar | ||
projects; at least 3% 2% from brownfield site | ||
photovoltaic projects that are not community renewable | ||
generation projects ; and the remainder shall be | ||
determined through the long-term planning process | ||
described in subparagraph (A) of this paragraph (1) . | ||
In developing the long-term renewable resources | ||
procurement plan, the Agency shall consider other | ||
approaches, in addition to competitive procurements, | ||
that can be used to procure renewable energy credits | ||
from brownfield site photovoltaic projects and thereby | ||
help return blighted or contaminated land to | ||
productive use while enhancing public health and the | ||
well-being of Illinois residents, including those in | ||
environmental justice communities, as defined using | ||
existing methodologies and findings used by the Agency | ||
and its Administrator in its Illinois Solar for All | ||
Program. | ||
(ii) In any given delivery year, if forecasted | ||
expenses are less than the maximum budget available | ||
under subparagraph (E) of this paragraph (1), the |
Agency shall continue to procure new renewable energy | ||
credits until that budget is exhausted in the manner | ||
outlined in item (i) of this subparagraph (C). By the | ||
end of the 2025 delivery year: | ||
At least 3,000,000 renewable energy credits | ||
for each delivery year shall come from new wind | ||
projects; and | ||
At least 3,000,000 renewable energy credits | ||
for each delivery year shall come from new | ||
photovoltaic projects; of that amount, to the | ||
extent possible, the Agency shall procure: at | ||
least 50% from solar photovoltaic projects using | ||
the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
devices or community renewable generation | ||
projects; at least 40% from utility-scale solar | ||
projects; at least 2% from brownfield site | ||
photovoltaic projects that are not community | ||
renewable generation projects; and the remainder | ||
shall be determined through the long-term planning | ||
process described in subparagraph (A) of this | ||
paragraph (1). | ||
(iii) By the end of the 2030 delivery year: | ||
At least 4,000,000 renewable energy credits | ||
for each delivery year shall come from new wind | ||
projects; and |
At least 4,000,000 renewable energy credits | ||
for each delivery year shall come from new | ||
photovoltaic projects; of that amount, to the | ||
extent possible, the Agency shall procure: at | ||
least 50% from solar photovoltaic projects using | ||
the program outlined in subparagraph (K) of this | ||
paragraph (1) from distributed renewable energy | ||
devices or community renewable generation | ||
projects; at least 40% from utility-scale solar | ||
projects; at least 2% from brownfield site | ||
photovoltaic projects that are not community | ||
renewable generation projects; and the remainder | ||
shall be determined through the long-term planning | ||
process described in subparagraph (A) of this | ||
paragraph (1). | ||
(iii) For purposes of this Section: | ||
"New wind projects" means wind renewable energy | ||
facilities that are energized after June 1, 2017 for | ||
the delivery year commencing June 1, 2017 or within 3 | ||
years after the date the Commission approves contracts | ||
for subsequent delivery years . | ||
"New photovoltaic projects" means photovoltaic | ||
renewable energy facilities that are energized after | ||
June 1, 2017. Photovoltaic projects developed under | ||
Section 1-56 of this Act shall not apply towards the | ||
new photovoltaic project requirements in this |
subparagraph (C). | ||
For purposes of calculating whether the Agency has | ||
procured enough new wind and solar renewable energy | ||
credits required by this subparagraph (C), renewable | ||
energy facilities that have a multi-year renewable | ||
energy credit delivery contract with the utility | ||
through at least delivery year 2030 shall be | ||
considered new, however no renewable energy credits | ||
from contracts entered into before June 1, 2021 shall | ||
be used to calculate whether the Agency has procured | ||
the correct proportion of new wind and new solar | ||
contracts described in this subparagraph (C) for | ||
delivery year 2021 and thereafter. | ||
(D) Renewable energy credits shall be cost effective. | ||
For purposes of this subsection (c), "cost effective" | ||
means that the costs of procuring renewable energy | ||
resources do not cause the limit stated in subparagraph | ||
(E) of this paragraph (1) to be exceeded and, for | ||
renewable energy credits procured through a competitive | ||
procurement event, do not exceed benchmarks based on | ||
market prices for like products in the region. For | ||
purposes of this subsection (c), "like products" means | ||
contracts for renewable energy credits from the same or | ||
substantially similar technology, same or substantially | ||
similar vintage (new or existing), the same or | ||
substantially similar quantity, and the same or |
substantially similar contract length and structure. | ||
Benchmarks shall reflect development, financing, or | ||
related costs resulting from requirements imposed through | ||
other provisions of State law, including, but not limited | ||
to, requirements in subparagraphs (P) and (Q) of this | ||
paragraph (1) and the Renewable Energy Facilities | ||
Agricultural Impact Mitigation Act. Confidential | ||
benchmarks Benchmarks shall be developed by the | ||
procurement administrator, in consultation with the | ||
Commission staff, Agency staff, and the procurement | ||
monitor and shall be subject to Commission review and | ||
approval. If price benchmarks for like products in the | ||
region are not available, the procurement administrator | ||
shall establish price benchmarks based on publicly | ||
available data on regional technology costs and expected | ||
current and future regional energy prices. The benchmarks | ||
in this Section shall not be used to curtail or otherwise | ||
reduce contractual obligations entered into by or through | ||
the Agency prior to June 1, 2017 (the effective date of | ||
Public Act 99-906). | ||
(E) For purposes of this subsection (c), the required | ||
procurement of cost-effective renewable energy resources | ||
for a particular year commencing prior to June 1, 2017 | ||
shall be measured as a percentage of the actual amount of | ||
electricity (megawatt-hours) supplied by the electric | ||
utility to eligible retail customers in the delivery year |
ending immediately prior to the procurement, and, for | ||
delivery years commencing on and after June 1, 2017, the | ||
required procurement of cost-effective renewable energy | ||
resources for a particular year shall be measured as a | ||
percentage of the actual amount of electricity | ||
(megawatt-hours) delivered by the electric utility in the | ||
delivery year ending immediately prior to the procurement, | ||
to all retail customers in its service territory. For | ||
purposes of this subsection (c), the amount paid per | ||
kilowatthour means the total amount paid for electric | ||
service expressed on a per kilowatthour basis. For | ||
purposes of this subsection (c), the total amount paid for | ||
electric service includes without limitation amounts paid | ||
for supply, transmission, capacity, distribution, | ||
surcharges, and add-on taxes. | ||
Notwithstanding the requirements of this subsection | ||
(c), the total of renewable energy resources procured | ||
under the procurement plan for any single year shall be | ||
subject to the limitations of this subparagraph (E). Such | ||
procurement shall be reduced for all retail customers | ||
based on the amount necessary to limit the annual | ||
estimated average net increase due to the costs of these | ||
resources included in the amounts paid by eligible retail | ||
customers in connection with electric service to no more | ||
than 4.25% the greater of 2.015% of the amount paid per | ||
kilowatthour by those customers during the year ending May |
31, 2009 2007 or the incremental amount per kilowatthour | ||
paid for these resources in 2011 . To arrive at a maximum | ||
dollar amount of renewable energy resources to be procured | ||
for the particular delivery year, the resulting per | ||
kilowatthour amount shall be applied to the actual amount | ||
of kilowatthours of electricity delivered, or applicable | ||
portion of such amount as specified in paragraph (1) of | ||
this subsection (c), as applicable, by the electric | ||
utility in the delivery year immediately prior to the | ||
procurement to all retail customers in its service | ||
territory. The calculations required by this subparagraph | ||
(E) shall be made only once for each delivery year at the | ||
time that the renewable energy resources are procured. | ||
Once the determination as to the amount of renewable | ||
energy resources to procure is made based on the | ||
calculations set forth in this subparagraph (E) and the | ||
contracts procuring those amounts are executed, no | ||
subsequent rate impact determinations shall be made and no | ||
adjustments to those contract amounts shall be allowed. | ||
All costs incurred under such contracts shall be fully | ||
recoverable by the electric utility as provided in this | ||
Section. | ||
(F) If the limitation on the amount of renewable | ||
energy resources procured in subparagraph (E) of this | ||
paragraph (1) prevents the Agency from meeting all of the | ||
goals in this subsection (c), the Agency's long-term plan |
shall prioritize compliance with the requirements of this | ||
subsection (c) regarding renewable energy credits in the | ||
following order: | ||
(i) renewable energy credits under existing | ||
contractual obligations as of June 1, 2021 ; | ||
(i-5) funding for the Illinois Solar for All | ||
Program, as described in subparagraph (O) of this | ||
paragraph (1); | ||
(ii) renewable energy credits necessary to comply | ||
with the new wind and new photovoltaic procurement | ||
requirements described in items (i) through (iii) of | ||
subparagraph (C) of this paragraph (1); and | ||
(iii) renewable energy credits necessary to meet | ||
the remaining requirements of this subsection (c). | ||
(G) The following provisions shall apply to the | ||
Agency's procurement of renewable energy credits under | ||
this subsection (c): | ||
(i) Notwithstanding whether a long-term renewable | ||
resources procurement plan has been approved, the | ||
Agency shall conduct an initial forward procurement | ||
for renewable energy credits from new utility-scale | ||
wind projects within 160 days after June 1, 2017 (the | ||
effective date of Public Act 99-906). For the purposes | ||
of this initial forward procurement, the Agency shall | ||
solicit 15-year contracts for delivery of 1,000,000 | ||
renewable energy credits delivered annually from new |
utility-scale wind projects to begin delivery on June | ||
1, 2019, if available, but not later than June 1, 2021, | ||
unless the project has delays in the establishment of | ||
an operating interconnection with the applicable | ||
transmission or distribution system as a result of the | ||
actions or inactions of the transmission or | ||
distribution provider, or other causes for force | ||
majeure as outlined in the procurement contract, in | ||
which case, not later than June 1, 2022. Payments to | ||
suppliers of renewable energy credits shall commence | ||
upon delivery. Renewable energy credits procured under | ||
this initial procurement shall be included in the | ||
Agency's long-term plan and shall apply to all | ||
renewable energy goals in this subsection (c). | ||
(ii) Notwithstanding whether a long-term renewable | ||
resources procurement plan has been approved, the | ||
Agency shall conduct an initial forward procurement | ||
for renewable energy credits from new utility-scale | ||
solar projects and brownfield site photovoltaic | ||
projects within one year after June 1, 2017 (the | ||
effective date of Public Act 99-906). For the purposes | ||
of this initial forward procurement, the Agency shall | ||
solicit 15-year contracts for delivery of 1,000,000 | ||
renewable energy credits delivered annually from new | ||
utility-scale solar projects and brownfield site | ||
photovoltaic projects to begin delivery on June 1, |
2019, if available, but not later than June 1, 2021, | ||
unless the project has delays in the establishment of | ||
an operating interconnection with the applicable | ||
transmission or distribution system as a result of the | ||
actions or inactions of the transmission or | ||
distribution provider, or other causes for force | ||
majeure as outlined in the procurement contract, in | ||
which case, not later than June 1, 2022. The Agency may | ||
structure this initial procurement in one or more | ||
discrete procurement events. Payments to suppliers of | ||
renewable energy credits shall commence upon delivery. | ||
Renewable energy credits procured under this initial | ||
procurement shall be included in the Agency's | ||
long-term plan and shall apply to all renewable energy | ||
goals in this subsection (c). | ||
(iii) Notwithstanding whether the Commission has | ||
approved the periodic long-term renewable resources | ||
procurement plan revision described in Section | ||
16-111.5 of the Public Utilities Act, the Agency shall | ||
conduct at least one subsequent forward procurement | ||
for renewable energy credits from new utility-scale | ||
wind projects, new utility-scale solar projects, and | ||
new brownfield site photovoltaic projects within 240 | ||
days after the effective date of this amendatory Act | ||
of the 102nd General Assembly in quantities necessary | ||
to meet the requirements of subparagraph (C) of this |
paragraph (1) through the delivery year beginning June | ||
1, 2021. Subsequent forward procurements for | ||
utility-scale wind projects shall solicit at least | ||
1,000,000 renewable energy credits delivered annually | ||
per procurement event and shall be planned, scheduled, | ||
and designed such that the cumulative amount of | ||
renewable energy credits delivered from all new wind | ||
projects in each delivery year shall not exceed the | ||
Agency's projection of the cumulative amount of | ||
renewable energy credits that will be delivered from | ||
all new photovoltaic projects, including utility-scale | ||
and distributed photovoltaic devices, in the same | ||
delivery year at the time scheduled for wind contract | ||
delivery. | ||
(iv) Notwithstanding whether the Commission has | ||
approved the periodic long-term renewable resources | ||
procurement plan revision described in Section | ||
16-111.5 of the Public Utilities Act, the Agency shall | ||
open capacity for each category in the Adjustable | ||
Block program within 90 days after the effective date | ||
of this amendatory Act of the 102nd General Assembly | ||
manner: | ||
(1) The Agency shall open the first block of | ||
annual capacity for the category described in item | ||
(i) of subparagraph (K) of this paragraph (1). The | ||
first block of annual capacity for item (i) shall |
be for at least 75 megawatts of total nameplate | ||
capacity. The price of the renewable energy credit | ||
for this block of capacity shall be 4% less than | ||
the price of the last open block in this category. | ||
Projects on a waitlist shall be awarded contracts | ||
first in the order in which they appear on the | ||
waitlist. Notwithstanding anything to the | ||
contrary, for those renewable energy credits that | ||
qualify and are procured under this subitem (1) of | ||
this item (iv), the renewable energy credit | ||
delivery contract value shall be paid in full, | ||
based on the estimated generation during the first | ||
15 years of operation, by the contracting | ||
utilities at the time that the facility producing | ||
the renewable energy credits is interconnected at | ||
the distribution system level of the utility and | ||
verified as energized and in compliance by the | ||
Program Administrator. The electric utility shall | ||
receive and retire all renewable energy credits | ||
generated by the project for the first 15 years of | ||
operation. Renewable energy credits generated by | ||
the project thereafter shall not be transferred | ||
under the renewable energy credit delivery | ||
contract with the counterparty electric utility. | ||
(2) The Agency shall open the first block of | ||
annual capacity for the category described in item |
(ii) of subparagraph (K) of this paragraph (1). | ||
The first block of annual capacity for item (ii) | ||
shall be for at least 75 megawatts of total | ||
nameplate capacity. | ||
(A) The price of the renewable energy | ||
credit for any project on a waitlist for this | ||
category before the opening of this block | ||
shall be 4% less than the price of the last | ||
open block in this category. Projects on the | ||
waitlist shall be awarded contracts first in | ||
the order in which they appear on the | ||
waitlist. Any projects that are less than or | ||
equal to 25 kilowatts in size on the waitlist | ||
for this capacity shall be moved to the | ||
waitlist for paragraph (1) of this item (iv). | ||
Notwithstanding anything to the contrary, | ||
projects that were on the waitlist prior to | ||
opening of this block shall not be required to | ||
be in compliance with the requirements of | ||
subparagraph (Q) of this paragraph (1) of this | ||
subsection (c). Notwithstanding anything to | ||
the contrary, for those renewable energy | ||
credits procured from projects that were on | ||
the waitlist for this category before the | ||
opening of this block 20% of the renewable | ||
energy credit delivery contract value, based |
on the estimated generation during the first | ||
15 years of operation, shall be paid by the | ||
contracting utilities at the time that the | ||
facility producing the renewable energy | ||
credits is interconnected at the distribution | ||
system level of the utility and verified as | ||
energized by the Program Administrator. The | ||
remaining portion shall be paid ratably over | ||
the subsequent 4-year period. The electric | ||
utility shall receive and retire all renewable | ||
energy credits generated by the project during | ||
the first 15 years of operation. Renewable | ||
energy credits generated by the project | ||
thereafter shall not be transferred under the | ||
renewable energy credit delivery contract with | ||
the counterparty electric utility. | ||
(B) The price of renewable energy credits | ||
for any project not on the waitlist for this | ||
category before the opening of the block shall | ||
be determined and published by the Agency. | ||
Projects not on a waitlist as of the opening | ||
of this block shall be subject to the | ||
requirements of subparagraph (Q) of this | ||
paragraph (1), as applicable. Projects not on | ||
a waitlist as of the opening of this block | ||
shall be subject to the contract provisions |
outlined in item (iii) of subparagraph (L) of | ||
this paragraph (1). The Agency shall strive to | ||
publish updated prices and an updated | ||
renewable energy credit delivery contract as | ||
quickly as possible. | ||
(3) For opening the first 2 blocks of annual | ||
capacity for projects participating in item (iii) | ||
of subparagraph (K) of paragraph (1) of subsection | ||
(c), projects shall be selected exclusively from | ||
those projects on the ordinal waitlists of | ||
community renewable generation projects | ||
established by the Agency based on the status of | ||
those ordinal waitlists as of December 31, 2020, | ||
and only those projects previously determined to | ||
be eligible for the Agency's April 2019 community | ||
solar project selection process. | ||
The first 2 blocks of annual capacity for item | ||
(iii) shall be for 250 megawatts of total | ||
nameplate capacity, with both blocks opening | ||
simultaneously under the schedule outlined in the | ||
paragraphs below. Projects shall be selected as | ||
follows: | ||
(A) The geographic balance of selected | ||
projects shall follow the Group classification | ||
found in the Agency's Revised Long-Term | ||
Renewable Resources Procurement Plan, with 70% |
of capacity allocated to projects on the Group | ||
B waitlist and 30% of capacity allocated to | ||
projects on the Group A waitlist. | ||
(B) Contract awards for waitlisted | ||
projects shall be allocated proportionate to | ||
the total nameplate capacity amount across | ||
both ordinal waitlists associated with that | ||
applicant firm or its affiliates, subject to | ||
the following conditions. | ||
(i) Each applicant firm having a | ||
waitlisted project eligible for selection | ||
shall receive no less than 500 kilowatts | ||
in awarded capacity across all groups, and | ||
no approved vendor may receive more than | ||
20% of each Group's waitlist allocation. | ||
(ii) Each applicant firm, upon | ||
receiving an award of program capacity | ||
proportionate to its waitlisted capacity, | ||
may then determine which waitlisted | ||
projects it chooses to be selected for a | ||
contract award up to that capacity amount. | ||
(iii) Assuming all other program | ||
requirements are met, applicant firms may | ||
adjust the nameplate capacity of applicant | ||
projects without losing waitlist | ||
eligibility, so long as no project is |
greater than 2,000 kilowatts in size. | ||
(iv) Assuming all other program | ||
requirements are met, applicant firms may | ||
adjust the expected production associated | ||
with applicant projects, subject to | ||
verification by the Program Administrator. | ||
(C) After a review of affiliate | ||
information and the current ordinal waitlists, | ||
the Agency shall announce the nameplate | ||
capacity award amounts associated with | ||
applicant firms no later than 90 days after | ||
the effective date of this amendatory Act of | ||
the 102nd General Assembly. | ||
(D) Applicant firms shall submit their | ||
portfolio of projects used to satisfy those | ||
contract awards no less than 90 days after the | ||
Agency's announcement. The total nameplate | ||
capacity of all projects used to satisfy that | ||
portfolio shall be no greater than the | ||
Agency's nameplate capacity award amount | ||
associated with that applicant firm. An | ||
applicant firm may decline, in whole or in | ||
part, its nameplate capacity award without | ||
penalty, with such unmet capacity rolled over | ||
to the next block opening for project | ||
selection under item (iii) of subparagraph (K) |
of this subsection (c). Any projects not | ||
included in an applicant firm's portfolio may | ||
reapply without prejudice upon the next block | ||
reopening for project selection under item | ||
(iii) of subparagraph (K) of this subsection | ||
(c). | ||
(E) The renewable energy credit delivery | ||
contract shall be subject to the contract and | ||
payment terms outlined in item (iv) of | ||
subparagraph (L) of this subsection (c). | ||
Contract instruments used for this | ||
subparagraph shall contain the following | ||
terms: | ||
(i) Renewable energy credit prices | ||
shall be fixed, without further adjustment | ||
under any other provision of this Act or | ||
for any other reason, at 10% lower than | ||
prices applicable to the last open block | ||
for this category, inclusive of any adders | ||
available for achieving a minimum of 50% | ||
of subscribers to the project's nameplate | ||
capacity being residential or small | ||
commercial customers with subscriptions of | ||
below 25 kilowatts in size; | ||
(ii) A requirement that a minimum of | ||
50% of subscribers to the project's |
nameplate capacity be residential or small | ||
commercial customers with subscriptions of | ||
below 25 kilowatts in size; | ||
(iii) Permission for the ability of a | ||
contract holder to substitute projects | ||
with other waitlisted projects without | ||
penalty should a project receive a | ||
non-binding estimate of costs to construct | ||
the interconnection facilities and any | ||
required distribution upgrades associated | ||
with that project of greater than 30 cents | ||
per watt AC of that project's nameplate | ||
capacity. In developing the applicable | ||
contract instrument, the Agency may | ||
consider whether other circumstances | ||
outside of the control of the applicant | ||
firm should also warrant project | ||
substitution rights. | ||
The Agency shall publish a finalized | ||
updated renewable energy credit delivery | ||
contract developed consistent with these terms | ||
and conditions no less than 30 days before | ||
applicant firms must submit their portfolio of | ||
projects pursuant to item (D). | ||
(F) To be eligible for an award, the | ||
applicant firm shall certify that not less |
than prevailing wage, as determined pursuant | ||
to the Illinois Prevailing Wage Act, was or | ||
will be paid to employees who are engaged in | ||
construction activities associated with a | ||
selected project. | ||
(4) The Agency shall open the first block of | ||
annual capacity for the category described in item | ||
(iv) of subparagraph (K) of this paragraph (1). | ||
The first block of annual capacity for item (iv) | ||
shall be for at least 50 megawatts of total | ||
nameplate capacity. Renewable energy credit prices | ||
shall be fixed, without further adjustment under | ||
any other provision of this Act or for any other | ||
reason, at the price in the last open block in the | ||
category described in item (ii) of subparagraph | ||
(K) of this paragraph (1). Pricing for future | ||
blocks of annual capacity for this category may be | ||
adjusted in the Agency's second revision to its | ||
Long-Term Renewable Resources Procurement Plan. | ||
Projects in this category shall be subject to the | ||
contract terms outlined in item (iv) of | ||
subparagraph (L) of this paragraph (1). | ||
(5) The Agency shall open the equivalent of 2 | ||
years of annual capacity for the category | ||
described in item (v) of subparagraph (K) of this | ||
paragraph (1). The first block of annual capacity |
for item (v) shall be for at least 10 megawatts of | ||
total nameplate capacity. Notwithstanding the | ||
provisions of item (v) of subparagraph (K) of this | ||
paragraph (1), for the purpose of this initial | ||
block, the agency shall accept new project | ||
applications intended to increase the diversity of | ||
areas hosting community solar projects, the | ||
business models of projects, and the size of | ||
projects, as described by the Agency in its | ||
long-term renewable resources procurement plan | ||
that is approved as of the effective date of this | ||
amendatory Act of the 102nd General Assembly. | ||
Projects in this category shall be subject to the | ||
contract terms outlined in item (iii) of | ||
subsection (L) of this paragraph (1). | ||
(6) The Agency shall open the first blocks of | ||
annual capacity for the category described in item | ||
(vi) of subparagraph (K) of this paragraph (1), | ||
with allocations of capacity within the block | ||
generally matching the historical share of block | ||
capacity allocated between the category described | ||
in items (i) and (ii) of subparagraph (K) of this | ||
paragraph (1). The first two blocks of annual | ||
capacity for item (vi) shall be for at least 75 | ||
megawatts of total nameplate capacity. The price | ||
of renewable energy credits for the blocks of |
capacity shall be 4% less than the price of the | ||
last open blocks in the categories described in | ||
items (i) and (ii) of subparagraph (K) of this | ||
paragraph (1). Pricing for future blocks of annual | ||
capacity for this category may be adjusted in the | ||
Agency's second revision to its Long-Term | ||
Renewable Resources Procurement Plan. Projects in | ||
this category shall be subject to the applicable | ||
contract terms outlined in items (ii) and (iii) of | ||
subparagraph (L) of this paragraph (1). If, at any | ||
time after the time set for delivery of renewable | ||
energy credits pursuant to the initial | ||
procurements in items (i) and (ii) of this | ||
subparagraph (G), the cumulative amount of | ||
renewable energy credits projected to be delivered | ||
from all new wind projects in a given delivery | ||
year exceeds the cumulative amount of renewable | ||
energy credits projected to be delivered from all | ||
new photovoltaic projects in that delivery year by | ||
200,000 or more renewable energy credits, then the | ||
Agency shall within 60 days adjust the procurement | ||
programs in the long-term renewable resources | ||
procurement plan to ensure that the projected | ||
cumulative amount of renewable energy credits to | ||
be delivered from all new wind projects does not | ||
exceed the projected cumulative amount of |
renewable energy credits to be delivered from all | ||
new photovoltaic projects by 200,000 or more | ||
renewable energy credits, provided that nothing in | ||
this Section shall preclude the projected | ||
cumulative amount of renewable energy credits to | ||
be delivered from all new photovoltaic projects | ||
from exceeding the projected cumulative amount of | ||
renewable energy credits to be delivered from all | ||
new wind projects in each delivery year and | ||
provided further that nothing in this item (iv) | ||
shall require the curtailment of an executed | ||
contract. The Agency shall update, on a quarterly | ||
basis, its projection of the renewable energy | ||
credits to be delivered from all projects in each | ||
delivery year. Notwithstanding anything to the | ||
contrary, the Agency may adjust the timing of | ||
procurement events conducted under this | ||
subparagraph (G). The long-term renewable | ||
resources procurement plan shall set forth the | ||
process by which the adjustments may be made. | ||
(v) Upon the effective date of this amendatory Act | ||
of the 102nd General Assembly, for all competitive | ||
procurements and any procurements of renewable energy | ||
credit from new utility-scale wind and new | ||
utility-scale photovoltaic projects, the Agency shall | ||
procure indexed renewable energy credits and direct |
respondents to offer a strike price. | ||
(1) The purchase price of the indexed | ||
renewable energy credit payment shall be | ||
calculated for each settlement period. That | ||
payment, for any settlement period, shall be equal | ||
to the difference resulting from subtracting the | ||
strike price from the index price for that | ||
settlement period. If this difference results in a | ||
negative number, the indexed REC counterparty | ||
shall owe the seller the absolute value multiplied | ||
by the quantity of energy produced in the relevant | ||
settlement period. If this difference results in a | ||
positive number, the seller shall owe the indexed | ||
REC counterparty this amount multiplied by the | ||
quantity of energy produced in the relevant | ||
settlement period. | ||
(2) Parties shall cash settle every month, | ||
summing up all settlements (both positive and | ||
negative, if applicable) for the prior month. | ||
(3) To ensure funding in the annual budget | ||
established under subparagraph (E) for indexed | ||
renewable energy credit procurements for each year | ||
of the term of such contracts, which must have a | ||
minimum tenure of 20 calendar years, the | ||
procurement administrator, Agency, Commission | ||
staff, and procurement monitor shall quantify the |
annual cost of the contract by utilizing an | ||
industry-standard, third-party forward price curve | ||
for energy at the appropriate hub or load zone, | ||
including the estimated magnitude and timing of | ||
the price effects related to federal carbon | ||
controls. Each forward price curve shall contain a | ||
specific value of the forecasted market price of | ||
electricity for each annual delivery year of the | ||
contract. For procurement planning purposes, the | ||
impact on the annual budget for the cost of | ||
indexed renewable energy credits for each delivery | ||
year shall be determined as the expected annual | ||
contract expenditure for that year, equaling the | ||
difference between (i) the sum across all relevant | ||
contracts of the applicable strike price | ||
multiplied by contract quantity and (ii) the sum | ||
across all relevant contracts of the forward price | ||
curve for the applicable load zone for that year | ||
multiplied by contract quantity. The contracting | ||
utility shall not assume an obligation in excess | ||
of the estimated annual cost of the contracts for | ||
indexed renewable energy credits. Forward curves | ||
shall be revised on an annual basis as updated | ||
forward price curves are released and filed with | ||
the Commission in the proceeding approving the | ||
Agency's most recent long-term renewable resources |
procurement plan. If the expected contract spend | ||
is higher or lower than the total quantity of | ||
contracts multiplied by the forward price curve | ||
value for that year, the forward price curve shall | ||
be updated by the procurement administrator, in | ||
consultation with the Agency, Commission staff, | ||
and procurement monitors, using then-currently | ||
available price forecast data and additional | ||
budget dollars shall be obligated or reobligated | ||
as appropriate. | ||
(4) To ensure that indexed renewable energy | ||
credit prices remain predictable and affordable, | ||
the Agency may consider the institution of a price | ||
collar on REC prices paid under indexed renewable | ||
energy credit procurements establishing floor and | ||
ceiling REC prices applicable to indexed REC | ||
contract prices. Any price collars applicable to | ||
indexed REC procurements shall be proposed by the | ||
Agency through its long-term renewable resources | ||
procurement plan. | ||
(vi) (v) All procurements under this subparagraph | ||
(G) shall comply with the geographic requirements in | ||
subparagraph (I) of this paragraph (1) and shall | ||
follow the procurement processes and procedures | ||
described in this Section and Section 16-111.5 of the | ||
Public Utilities Act to the extent practicable, and |
these processes and procedures may be expedited to | ||
accommodate the schedule established by this | ||
subparagraph (G). | ||
(H) The procurement of renewable energy resources for | ||
a given delivery year shall be reduced as described in | ||
this subparagraph (H) if an alternative retail electric | ||
supplier meets the requirements described in this | ||
subparagraph (H). | ||
(i) Within 45 days after June 1, 2017 (the | ||
effective date of Public Act 99-906), an alternative | ||
retail electric supplier or its successor shall submit | ||
an informational filing to the Illinois Commerce | ||
Commission certifying that, as of December 31, 2015, | ||
the alternative retail electric supplier owned one or | ||
more electric generating facilities that generates | ||
renewable energy resources as defined in Section 1-10 | ||
of this Act, provided that such facilities are not | ||
powered by wind or photovoltaics, and the facilities | ||
generate one renewable energy credit for each | ||
megawatthour of energy produced from the facility. | ||
The informational filing shall identify each | ||
facility that was eligible to satisfy the alternative | ||
retail electric supplier's obligations under Section | ||
16-115D of the Public Utilities Act as described in | ||
this item (i). | ||
(ii) For a given delivery year, the alternative |
retail electric supplier may elect to supply its | ||
retail customers with renewable energy credits from | ||
the facility or facilities described in item (i) of | ||
this subparagraph (H) that continue to be owned by the | ||
alternative retail electric supplier. | ||
(iii) The alternative retail electric supplier | ||
shall notify the Agency and the applicable utility, no | ||
later than February 28 of the year preceding the | ||
applicable delivery year or 15 days after June 1, 2017 | ||
(the effective date of Public Act 99-906), whichever | ||
is later, of its election under item (ii) of this | ||
subparagraph (H) to supply renewable energy credits to | ||
retail customers of the utility. Such election shall | ||
identify the amount of renewable energy credits to be | ||
supplied by the alternative retail electric supplier | ||
to the utility's retail customers and the source of | ||
the renewable energy credits identified in the | ||
informational filing as described in item (i) of this | ||
subparagraph (H), subject to the following | ||
limitations: | ||
For the delivery year beginning June 1, 2018, | ||
the maximum amount of renewable energy credits to | ||
be supplied by an alternative retail electric | ||
supplier under this subparagraph (H) shall be 68% | ||
multiplied by 25% multiplied by 14.5% multiplied | ||
by the amount of metered electricity |
(megawatt-hours) delivered by the alternative | ||
retail electric supplier to Illinois retail | ||
customers during the delivery year ending May 31, | ||
2016. | ||
For delivery years beginning June 1, 2019 and | ||
each year thereafter, the maximum amount of | ||
renewable energy credits to be supplied by an | ||
alternative retail electric supplier under this | ||
subparagraph (H) shall be 68% multiplied by 50% | ||
multiplied by 16% multiplied by the amount of | ||
metered electricity (megawatt-hours) delivered by | ||
the alternative retail electric supplier to | ||
Illinois retail customers during the delivery year | ||
ending May 31, 2016, provided that the 16% value | ||
shall increase by 1.5% each delivery year | ||
thereafter to 25% by the delivery year beginning | ||
June 1, 2025, and thereafter the 25% value shall | ||
apply to each delivery year. | ||
For each delivery year, the total amount of | ||
renewable energy credits supplied by all alternative | ||
retail electric suppliers under this subparagraph (H) | ||
shall not exceed 9% of the Illinois target renewable | ||
energy credit quantity. The Illinois target renewable | ||
energy credit quantity for the delivery year beginning | ||
June 1, 2018 is 14.5% multiplied by the total amount of | ||
metered electricity (megawatt-hours) delivered in the |
delivery year immediately preceding that delivery | ||
year, provided that the 14.5% shall increase by 1.5% | ||
each delivery year thereafter to 25% by the delivery | ||
year beginning June 1, 2025, and thereafter the 25% | ||
value shall apply to each delivery year. | ||
If the requirements set forth in items (i) through | ||
(iii) of this subparagraph (H) are met, the charges | ||
that would otherwise be applicable to the retail | ||
customers of the alternative retail electric supplier | ||
under paragraph (6) of this subsection (c) for the | ||
applicable delivery year shall be reduced by the ratio | ||
of the quantity of renewable energy credits supplied | ||
by the alternative retail electric supplier compared | ||
to that supplier's target renewable energy credit | ||
quantity. The supplier's target renewable energy | ||
credit quantity for the delivery year beginning June | ||
1, 2018 is 14.5% multiplied by the total amount of | ||
metered electricity (megawatt-hours) delivered by the | ||
alternative retail supplier in that delivery year, | ||
provided that the 14.5% shall increase by 1.5% each | ||
delivery year thereafter to 25% by the delivery year | ||
beginning June 1, 2025, and thereafter the 25% value | ||
shall apply to each delivery year. | ||
On or before April 1 of each year, the Agency shall | ||
annually publish a report on its website that | ||
identifies the aggregate amount of renewable energy |
credits supplied by alternative retail electric | ||
suppliers under this subparagraph (H). | ||
(I) The Agency shall design its long-term renewable | ||
energy procurement plan to maximize the State's interest | ||
in the health, safety, and welfare of its residents, | ||
including but not limited to minimizing sulfur dioxide, | ||
nitrogen oxide, particulate matter and other pollution | ||
that adversely affects public health in this State, | ||
increasing fuel and resource diversity in this State, | ||
enhancing the reliability and resiliency of the | ||
electricity distribution system in this State, meeting | ||
goals to limit carbon dioxide emissions under federal or | ||
State law, and contributing to a cleaner and healthier | ||
environment for the citizens of this State. In order to | ||
further these legislative purposes, renewable energy | ||
credits shall be eligible to be counted toward the | ||
renewable energy requirements of this subsection (c) if | ||
they are generated from facilities located in this State. | ||
The Agency may qualify renewable energy credits from | ||
facilities located in states adjacent to Illinois or | ||
renewable energy credits associated with the electricity | ||
generated by a utility-scale wind energy facility or | ||
utility-scale photovoltaic facility and transmitted by a | ||
qualifying direct current project described in subsection | ||
(b-5) of Section 8-406 of the Public Utilities Act to a | ||
delivery point on the electric transmission grid located |
in this State or a state adjacent to Illinois, if the | ||
generator demonstrates and the Agency determines that the | ||
operation of such facility or facilities will help promote | ||
the State's interest in the health, safety, and welfare of | ||
its residents based on the public interest criteria | ||
described above. For the purposes of this Section, | ||
renewable resources that are delivered via a high voltage | ||
direct current converter station located in Illinois shall | ||
be deemed generated in Illinois at the time and location | ||
the energy is converted to alternating current by the high | ||
voltage direct current converter station if the high | ||
voltage direct current transmission line: (i) after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly, was constructed with a project labor agreement; | ||
(ii) is capable of transmitting electricity at 525kv; | ||
(iii) has an Illinois converter station located and | ||
interconnected in the region of the PJM Interconnection, | ||
LLC; (iv) does not operate as a public utility; and (v) if | ||
the high voltage direct current transmission line was | ||
energized after June 1, 2023. To ensure that the public | ||
interest criteria are applied to the procurement and given | ||
full effect, the Agency's long-term procurement plan shall | ||
describe in detail how each public interest factor shall | ||
be considered and weighted for facilities located in | ||
states adjacent to Illinois. | ||
(J) In order to promote the competitive development of |
renewable energy resources in furtherance of the State's | ||
interest in the health, safety, and welfare of its | ||
residents, renewable energy credits shall not be eligible | ||
to be counted toward the renewable energy requirements of | ||
this subsection (c) if they are sourced from a generating | ||
unit whose costs were being recovered through rates | ||
regulated by this State or any other state or states on or | ||
after January 1, 2017. Each contract executed to purchase | ||
renewable energy credits under this subsection (c) shall | ||
provide for the contract's termination if the costs of the | ||
generating unit supplying the renewable energy credits | ||
subsequently begin to be recovered through rates regulated | ||
by this State or any other state or states; and each | ||
contract shall further provide that, in that event, the | ||
supplier of the credits must return 110% of all payments | ||
received under the contract. Amounts returned under the | ||
requirements of this subparagraph (J) shall be retained by | ||
the utility and all of these amounts shall be used for the | ||
procurement of additional renewable energy credits from | ||
new wind or new photovoltaic resources as defined in this | ||
subsection (c). The long-term plan shall provide that | ||
these renewable energy credits shall be procured in the | ||
next procurement event. | ||
Notwithstanding the limitations of this subparagraph | ||
(J), renewable energy credits sourced from generating | ||
units that are constructed, purchased, owned, or leased by |
an electric utility as part of an approved project, | ||
program, or pilot under Section 1-56 of this Act shall be | ||
eligible to be counted toward the renewable energy | ||
requirements of this subsection (c), regardless of how the | ||
costs of these units are recovered. As long as a | ||
generating unit or an identifiable portion of a generating | ||
unit has not had and does not have its costs recovered | ||
through rates regulated by this State or any other state, | ||
HVDC renewable energy credits associated with that | ||
generating unit or identifiable portion thereof shall be | ||
eligible to be counted toward the renewable energy | ||
requirements of this subsection (c). | ||
(K) The long-term renewable resources procurement plan | ||
developed by the Agency in accordance with subparagraph | ||
(A) of this paragraph (1) shall include an Adjustable | ||
Block program for the procurement of renewable energy | ||
credits from new photovoltaic projects that are | ||
distributed renewable energy generation devices or new | ||
photovoltaic community renewable generation projects. The | ||
Adjustable Block program shall be generally designed to | ||
provide for the steady, predictable, and sustainable | ||
growth of new solar photovoltaic development in Illinois. | ||
To this end, the Adjustable Block program shall provide a | ||
transparent annual schedule of prices and quantities to | ||
enable the photovoltaic market to scale up and for | ||
renewable energy credit prices to adjust at a predictable |
rate over time. The prices set by the Adjustable Block | ||
program can be reflected as a set value or as the product | ||
of a formula. | ||
The Adjustable Block program shall include for each | ||
category of eligible projects for each delivery year: a | ||
single block of nameplate capacity, a price for renewable | ||
energy credits within that block, and the terms and | ||
conditions for securing a spot on a waitlist once the | ||
block is : a schedule of standard block purchase prices to | ||
be offered; a series of steps, with associated nameplate | ||
capacity and purchase prices that adjust from step to | ||
step; and automatic opening of the next step as soon as the | ||
nameplate capacity and available purchase prices for an | ||
open step are fully committed or reserved. Except as | ||
outlined below, the waitlist of projects in a given year | ||
will carry over to apply to the subsequent year when | ||
another block is opened. Only projects energized on or | ||
after June 1, 2017 shall be eligible for the Adjustable | ||
Block program. For each category for each delivery year | ||
block group the Agency shall determine the number of | ||
blocks, the amount of generation capacity in each block, | ||
and the purchase price for each block, provided that the | ||
purchase price provided and the total amount of generation | ||
in all blocks for all categories block groups shall be | ||
sufficient to meet the goals in this subsection (c). The | ||
Agency shall strive to issue a single block sized to |
provide for stability and market growth. The Agency shall | ||
establish program eligibility requirements that ensure | ||
that projects that enter the program are sufficiently | ||
mature to indicate a demonstrable path to completion. The | ||
Agency may periodically review its prior decisions | ||
establishing the number of blocks, the amount of | ||
generation capacity in each block, and the purchase price | ||
for each block, and may propose, on an expedited basis, | ||
changes to these previously set values, including but not | ||
limited to redistributing these amounts and the available | ||
funds as necessary and appropriate, subject to Commission | ||
approval as part of the periodic plan revision process | ||
described in Section 16-111.5 of the Public Utilities Act. | ||
The Agency may define different block sizes, purchase | ||
prices, or other distinct terms and conditions for | ||
projects located in different utility service territories | ||
if the Agency deems it necessary to meet the goals in this | ||
subsection (c). | ||
The Adjustable Block program shall include at least | ||
the following categories block groups in at least the | ||
following amounts , which may be adjusted upon review by | ||
the Agency and approval by the Commission as described in | ||
this subparagraph (K) : | ||
(i) At least 20% 25% from distributed renewable | ||
energy generation devices with a nameplate capacity of | ||
no more than 25 10 kilowatts. |
(ii) At least 20% 25% from distributed renewable | ||
energy generation devices with a nameplate capacity of | ||
more than 25 10 kilowatts and no more than 5,000 2,000 | ||
kilowatts. The Agency may create sub-categories within | ||
this category to account for the differences between | ||
projects for small commercial customers, large | ||
commercial customers, and public or non-profit | ||
customers. | ||
(iii) At least 30% 25% from photovoltaic community | ||
renewable generation projects. Capacity for this | ||
category for the first 2 delivery years after the | ||
effective date of this amendatory Act of the 102nd | ||
General Assembly shall be allocated to waitlist | ||
projects as provided in paragraph (3) of item (iv) of | ||
subparagraph (G). Starting in the third delivery year | ||
after the effective date of this amendatory Act of the | ||
102nd General Assembly or earlier if the Agency | ||
determines there is additional capacity needed for to | ||
meet previous delivery year requirements, the | ||
following shall apply: | ||
(1) the Agency shall select projects on a | ||
first-come, first-serve basis, however the Agency | ||
may suggest additional methods to prioritize | ||
projects that are submitted at the same time; | ||
(2) projects shall have subscriptions of 25 kW | ||
or less for at least 50% of the facility's |
nameplate capacity and the Agency shall price the | ||
renewable energy credits with that as a factor; | ||
(3) projects shall not be colocated with one | ||
or more other community renewable generation | ||
projects, as defined in the Agency's first revised | ||
long-term renewable resources procurement plan | ||
approved by the Commission on February 18, 2020, | ||
such that the aggregate nameplate capacity exceeds | ||
5,000 kilowatts; and | ||
(4) projects greater than 2 MW may not apply | ||
until after the approval of the Agency's revised | ||
Long-Term Renewable Resources Procurement Plan | ||
after the effective date of this amendatory Act of | ||
the 102nd General Assembly. | ||
(iv) At least 15% from distributed renewable | ||
generation devices or photovoltaic community renewable | ||
generation projects installed at public schools. The | ||
Agency may create subcategories within this category | ||
to account for the differences between project size or | ||
location. Projects located within environmental | ||
justice communities or within Organizational Units | ||
that fall within Tier 1 or Tier 2 shall be given | ||
priority. Each of the Agency's periodic updates to its | ||
long-term renewable resources procurement plan to | ||
incorporate the procurement described in this | ||
subparagraph (iv) shall also include the proposed |
quantities or blocks, pricing, and contract terms | ||
applicable to the procurement as indicated herein. In | ||
each such update and procurement, the Agency shall set | ||
the renewable energy credit price and establish | ||
payment terms for the renewable energy credits | ||
procured pursuant to this subparagraph (iv) that make | ||
it feasible and affordable for public schools to | ||
install photovoltaic distributed renewable energy | ||
devices on their premises, including, but not limited | ||
to, those public schools subject to the prioritization | ||
provisions of this subparagraph. For the purposes of | ||
this item (iv): | ||
"Environmental Justice Community" shall have the | ||
same meaning set forth in the Agency's long-term | ||
renewable resources procurement plan; | ||
"Organization Unit", "Tier 1" and "Tier 2" shall | ||
have the meanings set for in Section 18-8.15 of the | ||
School Code; | ||
"Public schools" shall have the meaning set forth | ||
in Section 1-3 of the School Code. | ||
(v) At least 5% from community-driven community | ||
solar projects intended to provide more direct and | ||
tangible connection and benefits to the communities | ||
which they serve or in which they operate and, | ||
additionally, to increase the variety of community | ||
solar locations, models, and options in Illinois. As |
part of its long-term renewable resources procurement | ||
plan, the Agency shall develop selection criteria for | ||
projects participating in this category. Nothing in | ||
this Section shall preclude the Agency from creating a | ||
selection process that maximizes community ownership | ||
and community benefits in selecting projects to | ||
receive renewable energy credits. Selection criteria | ||
shall include: | ||
(1) community ownership or community | ||
wealth-building; | ||
(2) additional direct and indirect community | ||
benefit, beyond project participation as a | ||
subscriber, including, but not limited to, | ||
economic, environmental, social, cultural, and | ||
physical benefits; | ||
(3) meaningful involvement in project | ||
organization and development by community members | ||
or nonprofit organizations or public entities | ||
located in or serving the community; | ||
(4) engagement in project operations and | ||
management by nonprofit organizations, public | ||
entities, or community members; and | ||
(5) whether a project is developed in response | ||
to a site-specific RFP developed by community | ||
members or a nonprofit organization or public | ||
entity located in or serving the community. |
Selection criteria may also prioritize projects | ||
that: | ||
(1) are developed in collaboration with or to | ||
provide complementary opportunities for the Clean | ||
Jobs Workforce Network Program, the Illinois | ||
Climate Works Preapprenticeship Program, the | ||
Returning Residents Clean Jobs Training Program, | ||
the Clean Energy Contractor Incubator Program, or | ||
the Clean Energy Primes Contractor Accelerator | ||
Program; | ||
(2) increase the diversity of locations of | ||
community solar projects in Illinois, including by | ||
locating in urban areas and population centers; | ||
(3) are located in Equity Investment Eligible | ||
Communities; | ||
(4) are not greenfield projects; | ||
(5) serve only local subscribers; | ||
(6) have a nameplate capacity that does not | ||
exceed 500 kW; | ||
(7) are developed by an equity eligible | ||
contractor; or | ||
(8) otherwise meaningfully advance the goals | ||
of providing more direct and tangible connection | ||
and benefits to the communities which they serve | ||
or in which they operate and increasing the | ||
variety of community solar locations, models, and |
options in Illinois. | ||
For the purposes of this item (v): | ||
"Community" means a social unit in which people | ||
come together regularly to effect change; a social | ||
unit in which participants are marked by a cooperative | ||
spirit, a common purpose, or shared interests or | ||
characteristics; or a space understood by its | ||
residents to be delineated through geographic | ||
boundaries or landmarks. | ||
"Community benefit" means a range of services and | ||
activities that provide affirmative, economic, | ||
environmental, social, cultural, or physical value to | ||
a community; or a mechanism that enables economic | ||
development, high-quality employment, and education | ||
opportunities for local workers and residents, or | ||
formal monitoring and oversight structures such that | ||
community members may ensure that those services and | ||
activities respond to local knowledge and needs. | ||
"Community ownership" means an arrangement in | ||
which an electric generating facility is, or over time | ||
will be, in significant part, owned collectively by | ||
members of the community to which an electric | ||
generating facility provides benefits; members of that | ||
community participate in decisions regarding the | ||
governance, operation, maintenance, and upgrades of | ||
and to that facility; and members of that community |
benefit from regular use of that facility. | ||
Terms and guidance within these criteria that are | ||
not defined in this item (v) shall be defined by the | ||
Agency, with stakeholder input, during the development | ||
of the Agency's long-term renewable resources | ||
procurement plan. The Agency shall develop regular | ||
opportunities for projects to submit applications for | ||
projects under this category, and develop selection | ||
criteria that gives preference to projects that better | ||
meet individual criteria as well as projects that | ||
address a higher number of criteria. | ||
(vi) At least 10% from distributed renewable | ||
energy generation devices, which includes distributed | ||
renewable energy devices with a nameplate capacity | ||
under 5,000 kilowatts or photovoltaic community | ||
renewable generation projects, from applicants that | ||
are equity eligible contractors. The Agency may create | ||
subcategories within this category to account for the | ||
differences between project size and type. The Agency | ||
shall propose to increase the percentage in this item | ||
(vi) over time to 40% based on factors, including, but | ||
not limited to, the number of equity eligible | ||
contractors and capacity used in this item (vi) in | ||
previous delivery years. | ||
The Agency shall propose a payment structure for | ||
contracts executed pursuant to this paragraph under |
which, upon a demonstration of qualification or need, | ||
applicant firms are advanced capital disbursed after | ||
contract execution but before the contracted project's | ||
energization. The amount or percentage of capital | ||
advanced prior to project energization shall be | ||
sufficient to both cover any increase in development | ||
costs resulting from prevailing wage requirements or | ||
project-labor agreements, and designed to overcome | ||
barriers in access to capital faced by equity eligible | ||
contractors. The amount or percentage of advanced | ||
capital may vary by subcategory within this category | ||
and by an applicant's demonstration of need, with such | ||
levels to be established through the Long-Term | ||
Renewable Resources Procurement Plan authorized under | ||
subparagraph (A) of paragraph (1) of subsection (c) of | ||
this Section. | ||
Contracts developed featuring capital advanced | ||
prior to a project's energization shall feature | ||
provisions to ensure both the successful development | ||
of applicant projects and the delivery of the | ||
renewable energy credits for the full term of the | ||
contract, including ongoing collateral requirements | ||
and other provisions deemed necessary by the Agency, | ||
and may include energization timelines longer than for | ||
comparable project types. The percentage or amount of | ||
capital advanced prior to project energization shall |
not operate to increase the overall contract value, | ||
however contracts executed under this subparagraph may | ||
feature renewable energy credit prices higher than | ||
those offered to similar projects participating in | ||
other categories. Capital advanced prior to | ||
energization shall serve to reduce the ratable | ||
payments made after energization under items (ii) and | ||
(iii) of subparagraph (L) or payments made for each | ||
renewable energy credit delivery under item (iv) of | ||
subparagraph (L). | ||
(vii) (iv) The remaining capacity 25% shall be | ||
allocated as specified by the Agency in order to | ||
respond to market demand the long-term renewable | ||
resources procurement plan . The Agency shall allocate | ||
any discretionary capacity prior to the beginning of | ||
each delivery year. | ||
To the extent there is uncontracted capacity from any | ||
block in any of categories (i) through (vi) at the end of a | ||
delivery year, the Agency shall redistribute that capacity | ||
to one or more other categories giving priority to | ||
categories with projects on a waitlist. The redistributed | ||
capacity shall be added to the annual capacity in the | ||
subsequent delivery year, and the price for renewable | ||
energy credits shall be the price for the new delivery | ||
year. Redistributed capacity shall not be considered | ||
redistributed when determining whether the goals in this |
subsection (K) have been met. | ||
Notwithstanding anything to the contrary, as the | ||
Agency increases the capacity in item (vi) to 40% over | ||
time, the Agency may reduce the capacity of items (i) | ||
through (v) proportionate to the capacity of the | ||
categories of projects in item (vi), to achieve a balance | ||
of project types. | ||
The Adjustable Block program shall be designed to | ||
ensure that renewable energy credits are procured from | ||
photovoltaic distributed renewable energy generation | ||
devices and new photovoltaic community renewable energy | ||
generation projects in diverse locations and are not | ||
concentrated in a few regional geographic areas. | ||
(L) Notwithstanding provisions for advancing capital | ||
prior to project energization found in item (vi) of | ||
subparagraph (K), the The procurement of photovoltaic | ||
renewable energy credits under items (i) through (vi) (iv) | ||
of subparagraph (K) of this paragraph (1) shall otherwise | ||
be subject to the following contract and payment terms: | ||
(i) (Blank). The Agency shall procure contracts of at | ||
least 15 years in length. | ||
(ii) For those renewable energy credits that | ||
qualify and are procured under item (i) of | ||
subparagraph (K) of this paragraph (1), and any | ||
similar category projects that are procured under item | ||
(vi) of subparagraph (K) of this paragraph (1) that |
qualify and are procured under item (vi), the contract | ||
length shall be 15 years. The renewable energy credit | ||
delivery contract value purchase price shall be paid | ||
in full , based on the estimated generation during the | ||
first 15 years of operation, by the contracting | ||
utilities at the time that the facility producing the | ||
renewable energy credits is interconnected at the | ||
distribution system level of the utility and verified | ||
as energized and compliant by the Program | ||
Administrator energized . The electric utility shall | ||
receive and retire all renewable energy credits | ||
generated by the project for the first 15 years of | ||
operation. Renewable energy credits generated by the | ||
project thereafter shall not be transferred under the | ||
renewable energy credit delivery contract with the | ||
counterparty electric utility. | ||
(iii) For those renewable energy credits that | ||
qualify and are procured under item (ii) and (v) (iii) | ||
of subparagraph (K) of this paragraph (1) and any like | ||
projects similar category that qualify and are | ||
procured under item (vi), the contract length shall be | ||
15 years. 15% any additional categories of distributed | ||
generation included in the long-term renewable | ||
resources procurement plan and approved by the | ||
Commission, 20 percent of the renewable energy credit | ||
delivery contract value, based on the estimated |
generation during the first 15 years of operation, | ||
purchase price shall be paid by the contracting | ||
utilities at the time that the facility producing the | ||
renewable energy credits is interconnected at the | ||
distribution system level of the utility and verified | ||
as energized and compliant by the Program | ||
Administrator . The remaining portion shall be paid | ||
ratably over the subsequent 6-year 4-year period. The | ||
electric utility shall receive and retire all | ||
renewable energy credits generated by the project for | ||
the first 15 years of operation. Renewable energy | ||
credits generated by the project thereafter shall not | ||
be transferred under the renewable energy credit | ||
delivery contract with the counterparty electric | ||
utility. | ||
(iv) For those renewable energy credits that | ||
qualify and are procured under items (iii) and (iv) of | ||
subparagraph (K) of this paragraph (1), and any like | ||
projects that qualify and are procured under item | ||
(vi), the renewable energy credit delivery contract | ||
length shall be 20 years and shall be paid over the | ||
delivery term, not to exceed during each delivery year | ||
the contract price multiplied by the estimated annual | ||
renewable energy credit generation amount. If | ||
generation of renewable energy credits during a | ||
delivery year exceeds the estimated annual generation |
amount, the excess renewable energy credits shall be | ||
carried forward to future delivery years and shall not | ||
expire during the delivery term. If generation of | ||
renewable energy credits during a delivery year, | ||
including carried forward excess renewable energy | ||
credits, if any, is less than the estimated annual | ||
generation amount, payments during such delivery year | ||
will not exceed the quantity generated plus the | ||
quantity carried forward multiplied by the contract | ||
price. The electric utility shall receive all | ||
renewable energy credits generated by the project | ||
during the first 20 years of operation and retire all | ||
renewable energy credits paid for under this item (iv) | ||
and return at the end of the delivery term all | ||
renewable energy credits that were not paid for. | ||
Renewable energy credits generated by the project | ||
thereafter shall not be transferred under the | ||
renewable energy credit delivery contract with the | ||
counterparty electric utility. Notwithstanding the | ||
preceding, for those projects participating under item | ||
(iii) of subparagraph (K), the contract price for a | ||
delivery year shall be based on subscription levels as | ||
measured on the higher of the first business day of the | ||
delivery year or the first business day 6 months after | ||
the first business day of the delivery year. | ||
Subscription of 90% of nameplate capacity or greater |
shall be deemed to be fully subscribed for the | ||
purposes of this item (iv). For projects receiving a | ||
20-year delivery contract, REC prices shall be | ||
adjusted downward for consistency with the incentive | ||
levels previously determined to be necessary to | ||
support projects under 15-year delivery contracts, | ||
taking into consideration any additional new | ||
requirements placed on the projects, including, but | ||
not limited to, labor standards. | ||
(v) (iv) Each contract shall include provisions to | ||
ensure the delivery of the estimated quantity of | ||
renewable energy credits and ongoing collateral | ||
requirements and other provisions deemed appropriate | ||
by the Agency for the full term of the contract . | ||
(vi) (v) The utility shall be the counterparty to | ||
the contracts executed under this subparagraph (L) | ||
that are approved by the Commission under the process | ||
described in Section 16-111.5 of the Public Utilities | ||
Act. No contract shall be executed for an amount that | ||
is less than one renewable energy credit per year. | ||
(vii) (vi) If, at any time, approved applications | ||
for the Adjustable Block program exceed funds | ||
collected by the electric utility or would cause the | ||
Agency to exceed the limitation described in | ||
subparagraph (E) of this paragraph (1) on the amount | ||
of renewable energy resources that may be procured, |
then the Agency may shall consider future uncommitted | ||
funds to be reserved for these contracts on a | ||
first-come, first-served basis , with the delivery of | ||
renewable energy credits required beginning at the | ||
time that the reserved funds become available . | ||
(viii) (vii) Nothing in this Section shall require | ||
the utility to advance any payment or pay any amounts | ||
that exceed the actual amount of revenues anticipated | ||
to be collected by the utility under paragraph (6) of | ||
this subsection (c) and subsection (k) of Section | ||
16-108 of the Public Utilities Act inclusive of | ||
eligible funds collected in prior years and | ||
alternative compliance payments for use by the | ||
utility , and contracts executed under this Section | ||
shall expressly incorporate this limitation. | ||
(ix) Notwithstanding other requirements of this | ||
subparagraph (L), no modification shall be required to | ||
Adjustable Block program contracts if they were | ||
already executed prior to the establishment, approval, | ||
and implementation of new contract forms as a result | ||
of this amendatory Act of the 102nd General Assembly. | ||
(x) Contracts may be assignable, but only to | ||
entities first deemed by the Agency to have met | ||
program terms and requirements applicable to direct | ||
program participation. In developing contracts for the | ||
delivery of renewable energy credits, the Agency shall |
be permitted to establish fees applicable to each | ||
contract assignment. | ||
(M) The Agency shall be authorized to retain one or | ||
more experts or expert consulting firms to develop, | ||
administer, implement, operate, and evaluate the | ||
Adjustable Block program described in subparagraph (K) of | ||
this paragraph (1), and the Agency shall retain the | ||
consultant or consultants in the same manner, to the | ||
extent practicable, as the Agency retains others to | ||
administer provisions of this Act, including, but not | ||
limited to, the procurement administrator. The selection | ||
of experts and expert consulting firms and the procurement | ||
process described in this subparagraph (M) are exempt from | ||
the requirements of Section 20-10 of the Illinois | ||
Procurement Code, under Section 20-10 of that Code. The | ||
Agency shall strive to minimize administrative expenses in | ||
the implementation of the Adjustable Block program. | ||
The Program Administrator may charge application fees | ||
to participating firms to cover the cost of program | ||
administration. Any application fee amounts shall | ||
initially be determined through the long-term renewable | ||
resources procurement plan, and modifications to any | ||
application fee that deviate more than 25% from the | ||
Commission's approved value must be approved by the | ||
Commission as a long-term plan revision under Section | ||
16-111.5 of the Public Utilities Act. The Agency shall |
consider stakeholder feedback when making adjustments to | ||
application fees and shall notify stakeholders in advance | ||
of any planned changes. | ||
In addition to covering the costs of program | ||
administration, the Agency, in conjunction with its | ||
Program Administrator, may also use the proceeds of such | ||
fees charged to participating firms to support public | ||
education and ongoing regional and national coordination | ||
with nonprofit organizations, public bodies, and others | ||
engaged in the implementation of renewable energy | ||
incentive programs or similar initiatives. This work may | ||
include developing papers and reports, hosting regional | ||
and national conferences, and other work deemed necessary | ||
by the Agency to position the State of Illinois as a | ||
national leader in renewable energy incentive program | ||
development and administration. | ||
The Agency and its consultant or consultants shall | ||
monitor block activity, share program activity with | ||
stakeholders and conduct quarterly regularly scheduled | ||
meetings to discuss program activity and market | ||
conditions. If necessary, the Agency may make prospective | ||
administrative adjustments to the Adjustable Block program | ||
design, such as redistributing available funds or making | ||
adjustments to purchase prices as necessary to achieve the | ||
goals of this subsection (c). Program modifications to any | ||
block price , capacity block, or other program element that |
do not deviate from the Commission's approved value by | ||
more than 10% 25% shall take effect immediately and are | ||
not subject to Commission review and approval. Program | ||
modifications to any block price , capacity block, or other | ||
program element that deviate more than 10% 25% from the | ||
Commission's approved value must be approved by the | ||
Commission as a long-term plan amendment under Section | ||
16-111.5 of the Public Utilities Act. The Agency shall | ||
consider stakeholder feedback when making adjustments to | ||
the Adjustable Block design and shall notify stakeholders | ||
in advance of any planned changes. | ||
The Agency and its program administrators for both the | ||
Adjustable Block program and the Illinois Solar for All | ||
Program, consistent with the requirements of this | ||
subsection (c) and subsection (b) of Section 1-56 of this | ||
Act, shall propose the Adjustable Block program terms, | ||
conditions, and requirements, including the prices to be | ||
paid for renewable energy credits, where applicable, and | ||
requirements applicable to participating entities and | ||
project applications, through the development, review, and | ||
approval of the Agency's long-term renewable resources | ||
procurement plan described in this subsection (c) and | ||
paragraph (5) of subsection (b) of Section 16-111.5 of the | ||
Public Utilities Act. Terms, conditions, and requirements | ||
for program participation shall include the following: | ||
(i) The Agency shall establish a registration |
process for entities seeking to qualify for | ||
program-administered incentive funding and establish | ||
baseline qualifications for vendor approval. The | ||
Agency must maintain a list of approved entities on | ||
each program's website, and may revoke a vendor's | ||
ability to receive program-administered incentive | ||
funding status upon a determination that the vendor | ||
failed to comply with contract terms, the law, or | ||
other program requirements. | ||
(ii) The Agency shall establish program | ||
requirements and minimum contract terms to ensure | ||
projects are properly installed and produce their | ||
expected amounts of energy. Program requirements may | ||
include on-site inspections and photo documentation of | ||
projects under construction. The Agency may require | ||
repairs, alterations, or additions to remedy any | ||
material deficiencies discovered. Vendors who have a | ||
disproportionately high number of deficient systems | ||
may lose their eligibility to continue to receive | ||
State-administered incentive funding through Agency | ||
programs and procurements. | ||
(iii) To discourage deceptive marketing or other | ||
bad faith business practices, the Agency may require | ||
direct program participants, including agents | ||
operating on their behalf, to provide standardized | ||
disclosures to a customer prior to that customer's |
execution of a contract for the development of a | ||
distributed generation system or a subscription to a | ||
community solar project. | ||
(iv) The Agency shall establish one or multiple | ||
Consumer Complaints Centers to accept complaints | ||
regarding businesses that participate in, or otherwise | ||
benefit from, State-administered incentive funding | ||
through Agency-administered programs. The Agency shall | ||
maintain a public database of complaints with any | ||
confidential or particularly sensitive information | ||
redacted from public entries. | ||
(v) Through a filing in the proceeding for the | ||
approval of its long-term renewable energy resources | ||
procurement plan, the Agency shall provide an annual | ||
written report to the Illinois Commerce Commission | ||
documenting the frequency and nature of complaints and | ||
any enforcement actions taken in response to those | ||
complaints. | ||
(vi) The Agency shall schedule regular meetings | ||
with representatives of the Office of the Attorney | ||
General, the Illinois Commerce Commission, consumer | ||
protection groups, and other interested stakeholders | ||
to share relevant information about consumer | ||
protection, project compliance, and complaints | ||
received. | ||
(vii) To the extent that complaints received |
implicate the jurisdiction of the Office of the | ||
Attorney General, the Illinois Commerce Commission, or | ||
local, State, or federal law enforcement, the Agency | ||
shall also refer complaints to those entities as | ||
appropriate. | ||
(N) The long-term renewable resources procurement plan | ||
required by this subsection (c) shall include a community | ||
renewable generation program. The Agency shall establish | ||
the terms, conditions, and program requirements for | ||
photovoltaic community renewable generation projects with | ||
a goal to expand renewable energy generating facility | ||
access to a broader group of energy consumers, to ensure | ||
robust participation opportunities for residential and | ||
small commercial customers and those who cannot install | ||
renewable energy on their own properties. Subject to | ||
reasonable limitations, any Any plan approved by the | ||
Commission shall allow subscriptions to community | ||
renewable generation projects to be portable and | ||
transferable. For purposes of this subparagraph (N), | ||
"portable" means that subscriptions may be retained by the | ||
subscriber even if the subscriber relocates or changes its | ||
address within the same utility service territory; and | ||
"transferable" means that a subscriber may assign or sell | ||
subscriptions to another person within the same utility | ||
service territory. | ||
Through the development of its long-term renewable |
resources procurement plan, the Agency may consider | ||
whether community renewable generation projects utilizing | ||
technologies other than photovoltaics should be supported | ||
through State-administered incentive funding, and may | ||
issue requests for information to gauge market demand. | ||
Electric utilities shall provide a monetary credit to | ||
a subscriber's subsequent bill for service for the | ||
proportional output of a community renewable generation | ||
project attributable to that subscriber as specified in | ||
Section 16-107.5 of the Public Utilities Act. | ||
The Agency shall purchase renewable energy credits | ||
from subscribed shares of photovoltaic community renewable | ||
generation projects through the Adjustable Block program | ||
described in subparagraph (K) of this paragraph (1) or | ||
through the Illinois Solar for All Program described in | ||
Section 1-56 of this Act. The electric utility shall | ||
purchase any unsubscribed energy from community renewable | ||
generation projects that are Qualifying Facilities ("QF") | ||
under the electric utility's tariff for purchasing the | ||
output from QFs under Public Utilities Regulatory Policies | ||
Act of 1978. | ||
The owners of and any subscribers to a community | ||
renewable generation project shall not be considered | ||
public utilities or alternative retail electricity | ||
suppliers under the Public Utilities Act solely as a | ||
result of their interest in or subscription to a community |
renewable generation project and shall not be required to | ||
become an alternative retail electric supplier by | ||
participating in a community renewable generation project | ||
with a public utility. | ||
(O) For the delivery year beginning June 1, 2018, the | ||
long-term renewable resources procurement plan required by | ||
this subsection (c) shall provide for the Agency to | ||
procure contracts to continue offering the Illinois Solar | ||
for All Program described in subsection (b) of Section | ||
1-56 of this Act, and the contracts approved by the | ||
Commission shall be executed by the utilities that are | ||
subject to this subsection (c). The long-term renewable | ||
resources procurement plan shall allocate up to | ||
$50,000,000 5% of the funds available under the plan for | ||
the applicable delivery year, or $10,000,000 per delivery | ||
year , whichever is greater, to fund the programs, and the | ||
plan shall determine the amount of funding to be | ||
apportioned to the programs identified in subsection (b) | ||
of Section 1-56 of this Act; provided that for the | ||
delivery years beginning June 1, 2021, June 1, 2022, and | ||
June 1, 2023, the long-term renewable resources | ||
procurement plan may average the annual budgets over a | ||
3-year period to account for program ramp-up. For for the | ||
delivery years beginning June 1, 2017, June 1, 2021, and | ||
June 1, 2024 2025 , June 1, 2027, and June 1, 2030 and | ||
additional the long-term renewable resources procurement |
plan shall allocate 10% of the funds available under the | ||
plan for the applicable delivery year, or $20,000,000 per | ||
delivery year, whichever is greater, and $10,000,000 of | ||
such funds in such year shall be provided to the | ||
Department of Commerce and Economic Opportunity to | ||
implement the workforce development programs and reporting | ||
as outlined in used by an electric utility that serves | ||
more than 3,000,000 retail customers in the State to | ||
implement a Commission-approved plan under Section | ||
16-108.12 of the Public Utilities Act. In making the | ||
determinations required under this subparagraph (O), the | ||
Commission shall consider the experience and performance | ||
under the programs and any evaluation reports. The | ||
Commission shall also provide for an independent | ||
evaluation of those programs on a periodic basis that are | ||
funded under this subparagraph (O). | ||
(P) All programs and procurements under this | ||
subsection (c) shall be designed to encourage | ||
participating projects to use a diverse and equitable | ||
workforce and a diverse set of contractors, including | ||
minority-owned businesses, disadvantaged businesses, | ||
trade unions, graduates of any workforce training programs | ||
administered under this Act, and small businesses. | ||
The Agency shall develop a method to optimize | ||
procurement of renewable energy credits from proposed | ||
utility-scale projects that are located in communities |
eligible to receive Energy Transition Community Grants | ||
pursuant to Section 10-20 of the Energy Community | ||
Reinvestment Act. If this requirement conflicts with other | ||
provisions of law or the Agency determines that full | ||
compliance with the requirements of this subparagraph (P) | ||
would be unreasonably costly or administratively | ||
impractical, the Agency is to propose alternative | ||
approaches to achieve development of renewable energy | ||
resources in communities eligible to receive Energy | ||
Transition Community Grants pursuant to Section 10-20 of | ||
the Energy Community Reinvestment Act or seek an exemption | ||
from this requirement from the Commission. | ||
(Q) Each facility listed in subitems (i) through | ||
(viii) of item (1) of this subparagraph (Q) for which a | ||
renewable energy credit delivery contract is signed after | ||
the effective date of this amendatory Act of the 102nd | ||
General Assembly is subject to the following requirements | ||
through the Agency's long-term renewable resources | ||
procurement plan: | ||
(1) Each facility shall be subject to the | ||
prevailing wage requirements included in the | ||
Prevailing Wage Act. The Agency shall require | ||
verification that all construction performed on the | ||
facility by the renewable energy credit delivery | ||
contract holder, its contractors, or its | ||
subcontractors relating to construction of the |
facility is performed by construction employees | ||
receiving an amount for that work equal to or greater | ||
than the general prevailing rate, as that term is | ||
defined in Section 3 of the Prevailing Wage Act. For | ||
purposes of this item (1), "house of worship" means | ||
property that is both (1) used exclusively by a | ||
religious society or body of persons as a place for | ||
religious exercise or religious worship and (2) | ||
recognized as exempt from taxation pursuant to Section | ||
15-40 of the Property Tax Code. This item (1) shall | ||
apply to any the following: | ||
(i) all new utility-scale wind projects; | ||
(ii) all new utility-scale photovoltaic | ||
projects; | ||
(iii) all new brownfield photovoltaic | ||
projects; | ||
(iv) all new photovoltaic community renewable | ||
energy facilities that qualify for item (iii) of | ||
subparagraph (K) of this paragraph (1); | ||
(v) all new community driven community | ||
photovoltaic projects that qualify for item (v) of | ||
subparagraph (K) of this paragraph (1); | ||
(vi) all new photovoltaic distributed | ||
renewable energy generation devices on schools | ||
that qualify for item (iv) of subparagraph (K) of | ||
this paragraph (1); |
(vii) all new photovoltaic distributed | ||
renewable energy generation devices that (1) | ||
qualify for item (i) of subparagraph (K) of this | ||
paragraph (1); (2) are not projects that serve | ||
single-family or multi-family residential | ||
buildings; and (3) are not houses of worship where | ||
the aggregate capacity including collocated | ||
projects would not exceed 100 kilowatts; | ||
(viii) all new photovoltaic distributed | ||
renewable energy generation devices that (1) | ||
qualify for item (ii) of subparagraph (K) of this | ||
paragraph (1); (2) are not projects that serve | ||
single-family or multi-family residential | ||
buildings; and (3) are not houses of worship where | ||
the aggregate capacity including collocated | ||
projects would not exceed 100 kilowatts. | ||
(2) Renewable energy credits procured from new | ||
utility-scale wind projects, new utility-scale solar | ||
projects, and new brownfield solar projects pursuant | ||
to Agency procurement events occurring after the | ||
effective date of this amendatory Act of the 102nd | ||
General Assembly must be from facilities built by | ||
general contractors that must enter into a project | ||
labor agreement, as defined by this Act, prior to | ||
construction. The project labor agreement shall be | ||
filed with the Director in accordance with procedures |
established by the Agency through its long-term | ||
renewable resources procurement plan. Any information | ||
submitted to the Agency in this item (2) shall be | ||
considered commercially sensitive information. At a | ||
minimum, the project labor agreement must provide the | ||
names, addresses, and occupations of the owner of the | ||
plant and the individuals representing the labor | ||
organization employees participating in the project | ||
labor agreement consistent with the Project Labor | ||
Agreements Act. The agreement must also specify the | ||
terms and conditions as defined by this Act. | ||
(3) It is the intent of this Section to ensure that | ||
economic development occurs across Illinois | ||
communities, that emerging businesses may grow, and | ||
that there is improved access to the clean energy | ||
economy by persons who have greater economic burdens | ||
to success. The Agency shall take into consideration | ||
the unique cost of compliance of this subparagraph (Q) | ||
that might be borne by equity eligible contractors, | ||
shall include such costs when determining the price of | ||
renewable energy credits in the Adjustable Block | ||
program, and shall take such costs into consideration | ||
in a nondiscriminatory manner when comparing bids for | ||
competitive procurements. The Agency shall consider | ||
costs associated with compliance whether in the | ||
development, financing, or construction of projects. |
The Agency shall periodically review the assumptions | ||
in these costs and may adjust prices, in compliance | ||
with subparagraph (M) of this paragraph (1). | ||
(R) In its long-term renewable resources procurement | ||
plan, the Agency shall establish a self-direct renewable | ||
portfolio standard compliance program for eligible | ||
self-direct customers that purchase renewable energy | ||
credits from utility-scale wind and solar projects through | ||
long-term agreements for purchase of renewable energy | ||
credits as described in this Section. Such long-term | ||
agreements may include the purchase of energy or other | ||
products on a physical or financial basis and may involve | ||
an alternative retail electric supplier as defined in | ||
Section 16-102 of the Public Utilities Act. This program | ||
shall take effect in the delivery year commencing June 1, | ||
2023. | ||
(1) For the purposes of this subparagraph: | ||
"Eligible self-direct customer" means any retail | ||
customers of an electric utility that serves 3,000,000 | ||
or more retail customers in the State and whose total | ||
highest 30-minute demand was more than 10,000 | ||
kilowatts, or any retail customers of an electric | ||
utility that serves less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in | ||
the State and whose total highest 15-minute demand was | ||
more than 10,000 kilowatts. |
"Retail customer" has the meaning set forth in | ||
Section 16-102 of the Public Utilities Act and | ||
multiple retail customer accounts under the same | ||
corporate parent may aggregate their account demands | ||
to meet the 10,000 kilowatt threshold. The criteria | ||
for determining whether this subparagraph is | ||
applicable to a retail customer shall be based on the | ||
12 consecutive billing periods prior to the start of | ||
the year in which the application is filed. | ||
(2) For renewable energy credits to count toward | ||
the self-direct renewable portfolio standard | ||
compliance program, they must: | ||
(i) qualify as renewable energy credits as | ||
defined in Section 1-10 of this Act; | ||
(ii) be sourced from one or more renewable | ||
energy generating facilities that comply with the | ||
geographic requirements as set forth in | ||
subparagraph (I) of paragraph (1) of subsection | ||
(c) as interpreted through the Agency's long-term | ||
renewable resources procurement plan, or, where | ||
applicable, the geographic requirements that | ||
governed utility-scale renewable energy credits at | ||
the time the eligible self-direct customer entered | ||
into the applicable renewable energy credit | ||
purchase agreement; | ||
(iii) be procured through long-term contracts |
with term lengths of at least 10 years either | ||
directly with the renewable energy generating | ||
facility or through a bundled power purchase | ||
agreement, a virtual power purchase agreement, an | ||
agreement between the renewable generating | ||
facility, an alternative retail electric supplier, | ||
and the customer, or such other structure as is | ||
permissible under this subparagraph (R); | ||
(iv) be equivalent in volume to at least 40% | ||
of the eligible self-direct customer's usage, | ||
determined annually by the eligible self-direct | ||
customer's usage during the previous delivery | ||
year, measured to the nearest megawatt-hour; | ||
(v) be retired by or on behalf of the large | ||
energy customer; | ||
(vi) be sourced from new utility-scale wind | ||
projects or new utility-scale solar projects; and | ||
(vii) if the contracts for renewable energy | ||
credits are entered into after the effective date | ||
of this amendatory Act of the 102nd General | ||
Assembly, the new utility-scale wind projects or | ||
new utility-scale solar projects must comply with | ||
the requirements established in subparagraphs (P) | ||
and (Q) of paragraph (1) of this subsection (c) | ||
and subsection (c-10). | ||
(3) The self-direct renewable portfolio standard |
compliance program shall be designed to allow eligible | ||
self-direct customers to procure new renewable energy | ||
credits from new utility-scale wind projects or new | ||
utility-scale photovoltaic projects. The Agency shall | ||
annually determine the amount of utility-scale | ||
renewable energy credits it will include each year | ||
from the self-direct renewable portfolio standard | ||
compliance program, subject to receiving qualifying | ||
applications. In making this determination, the Agency | ||
shall evaluate publicly available analyses and studies | ||
of the potential market size for utility-scale | ||
renewable energy long-term purchase agreements by | ||
commercial and industrial energy customers and make | ||
that report publicly available. If demand for | ||
participation in the self-direct renewable portfolio | ||
standard compliance program exceeds availability, the | ||
Agency shall ensure participation is evenly split | ||
between commercial and industrial users to the extent | ||
there is sufficient demand from both customer classes. | ||
Each renewable energy credit procured pursuant to this | ||
subparagraph (R) by a self-direct customer shall | ||
reduce the total volume of renewable energy credits | ||
the Agency is otherwise required to procure from new | ||
utility-scale projects pursuant to subparagraph (C) of | ||
paragraph (1) of this subsection (c) on behalf of | ||
contracting utilities where the eligible self-direct |
customer is located. The self-direct customer shall | ||
file an annual compliance report with the Agency | ||
pursuant to terms established by the Agency through | ||
its long-term renewable resources procurement plan to | ||
be eligible for participation in this program. | ||
Customers must provide the Agency with their most | ||
recent electricity billing statements or other | ||
information deemed necessary by the Agency to | ||
demonstrate they are an eligible self-direct customer. | ||
(4) The Commission shall approve a reduction in | ||
the volumetric charges collected pursuant to Section | ||
16-108 of the Public Utilities Act for approved | ||
eligible self-direct customers equivalent to the | ||
anticipated cost of renewable energy credit deliveries | ||
under contracts for new utility-scale wind and new | ||
utility-scale solar entered for each delivery year | ||
after the large energy customer begins retiring | ||
eligible new utility scale renewable energy credits | ||
for self-compliance. The self-direct credit amount | ||
shall be determined annually and is equal to the | ||
estimated portion of the cost authorized by | ||
subparagraph (E) of paragraph (1) of this subsection | ||
(c) that supported the annual procurement of | ||
utility-scale renewable energy credits in the prior | ||
delivery year using a methodology described in the | ||
long-term renewable resources procurement plan, |
expressed on a per kilowatthour basis, and does not | ||
include (i) costs associated with any contracts | ||
entered into before the delivery year in which the | ||
customer files the initial compliance report to be | ||
eligible for participation in the self-direct program, | ||
and (ii) costs associated with procuring renewable | ||
energy credits through existing and future contracts | ||
through the Adjustable Block Program, subsection (c-5) | ||
of this Section 1-75, and the Solar for All Program. | ||
The Agency shall assist the Commission in determining | ||
the current and future costs. The Agency must | ||
determine the self-direct credit amount for new and | ||
existing eligible self-direct customers and submit | ||
this to the Commission in an annual compliance filing. | ||
The Commission must approve the self-direct credit | ||
amount by June 1, 2023 and June 1 of each delivery year | ||
thereafter. | ||
(5) Customers described in this subparagraph (R) | ||
shall apply, on a form developed by the Agency, to the | ||
Agency to be designated as a self-direct eligible | ||
customer. Once the Agency determines that a | ||
self-direct customer is eligible for participation in | ||
the program, the self-direct customer will remain | ||
eligible until the end of the term of the contract. | ||
Thereafter, application may be made not less than 12 | ||
months before the filing date of the long-term |
renewable resources procurement plan described in this | ||
Act. At a minimum, such application shall contain the | ||
following: | ||
(i) the customer's certification that, at the | ||
time of the customer's application, the customer | ||
qualifies to be a self-direct eligible customer, | ||
including documents demonstrating that | ||
qualification; | ||
(ii) the customer's certification that the | ||
customer has entered into or will enter into by | ||
the beginning of the applicable procurement year, | ||
one or more bilateral contracts for new wind | ||
projects or new photovoltaic projects, including | ||
supporting documentation; | ||
(iii) certification that the contract or | ||
contracts for new renewable energy resources are | ||
long-term contracts with term lengths of at least | ||
10 years, including supporting documentation; | ||
(iv) certification of the quantities of | ||
renewable energy credits that the customer will | ||
purchase each year under such contract or | ||
contracts, including supporting documentation; | ||
(v) proof that the contract is sufficient to | ||
produce renewable energy credits to be equivalent | ||
in volume to at least 40% of the large energy | ||
customer's usage from the previous delivery year, |
measured to the nearest megawatt-hour; and | ||
(vi) certification that the customer intends | ||
to maintain the contract for the duration of the | ||
length of the contract. | ||
(6) If a customer receives the self-direct credit | ||
but fails to properly procure and retire renewable | ||
energy credits as required under this subparagraph | ||
(R), the Commission, on petition from the Agency and | ||
after notice and hearing, may direct such customer's | ||
utility to recover the cost of the wrongfully received | ||
self-direct credits plus interest through an adder to | ||
charges assessed pursuant to Section 16-108 of the | ||
Public Utilities Act. Self-direct customers who | ||
knowingly fail to properly procure and retire | ||
renewable energy credits and do not notify the Agency | ||
are ineligible for continued participation in the | ||
self-direct renewable portfolio standard compliance | ||
program. | ||
(2) (Blank). | ||
(3) (Blank). | ||
(4) The electric utility shall retire all renewable | ||
energy credits used to comply with the standard. | ||
(5) Beginning with the 2010 delivery year and ending | ||
June 1, 2017, an electric utility subject to this | ||
subsection (c) shall apply the lesser of the maximum | ||
alternative compliance payment rate or the most recent |
estimated alternative compliance payment rate for its | ||
service territory for the corresponding compliance period, | ||
established pursuant to subsection (d) of Section 16-115D | ||
of the Public Utilities Act to its retail customers that | ||
take service pursuant to the electric utility's hourly | ||
pricing tariff or tariffs. The electric utility shall | ||
retain all amounts collected as a result of the | ||
application of the alternative compliance payment rate or | ||
rates to such customers, and, beginning in 2011, the | ||
utility shall include in the information provided under | ||
item (1) of subsection (d) of Section 16-111.5 of the | ||
Public Utilities Act the amounts collected under the | ||
alternative compliance payment rate or rates for the prior | ||
year ending May 31. Notwithstanding any limitation on the | ||
procurement of renewable energy resources imposed by item | ||
(2) of this subsection (c), the Agency shall increase its | ||
spending on the purchase of renewable energy resources to | ||
be procured by the electric utility for the next plan year | ||
by an amount equal to the amounts collected by the utility | ||
under the alternative compliance payment rate or rates in | ||
the prior year ending May 31. | ||
(6) The electric utility shall be entitled to recover | ||
all of its costs associated with the procurement of | ||
renewable energy credits under plans approved under this | ||
Section and Section 16-111.5 of the Public Utilities Act. | ||
These costs shall include associated reasonable expenses |
for implementing the procurement programs, including, but | ||
not limited to, the costs of administering and evaluating | ||
the Adjustable Block program, through an automatic | ||
adjustment clause tariff in accordance with subsection (k) | ||
of Section 16-108 of the Public Utilities Act. | ||
(7) Renewable energy credits procured from new | ||
photovoltaic projects or new distributed renewable energy | ||
generation devices under this Section after June 1, 2017 | ||
(the effective date of Public Act 99-906) must be procured | ||
from devices installed by a qualified person in compliance | ||
with the requirements of Section 16-128A of the Public | ||
Utilities Act and any rules or regulations adopted | ||
thereunder. | ||
In meeting the renewable energy requirements of this | ||
subsection (c), to the extent feasible and consistent with | ||
State and federal law, the renewable energy credit | ||
procurements, Adjustable Block solar program, and | ||
community renewable generation program shall provide | ||
employment opportunities for all segments of the | ||
population and workforce, including minority-owned and | ||
female-owned business enterprises, and shall not, | ||
consistent with State and federal law, discriminate based | ||
on race or socioeconomic status. | ||
(c-5) Procurement of renewable energy credits from new | ||
renewable energy facilities installed at or adjacent to the | ||
sites of electric generating facilities that burn or burned |
coal as their primary fuel source. | ||
(1) In addition to the procurement of renewable energy | ||
credits pursuant to long-term renewable resources | ||
procurement plans in accordance with subsection (c) of | ||
this Section and Section 16-111.5 of the Public Utilities | ||
Act, the Agency shall conduct procurement events in | ||
accordance with this subsection (c-5) for the procurement | ||
by electric utilities that served more than 300,000 retail | ||
customers in this State as of January 1, 2019 of renewable | ||
energy credits from new renewable energy facilities to be | ||
installed at or adjacent to the sites of electric | ||
generating facilities that, as of January 1, 2016, burned | ||
coal as their primary fuel source and meet the other | ||
criteria specified in this subsection (c-5). For purposes | ||
of this subsection (c-5), "new renewable energy facility" | ||
means a new utility-scale solar project as defined in this | ||
Section 1-75. The renewable energy credits procured | ||
pursuant to this subsection (c-5) may be included or | ||
counted for purposes of compliance with the amounts of | ||
renewable energy credits required to be procured pursuant | ||
to subsection (c) of this Section to the extent that there | ||
are otherwise shortfalls in compliance with such | ||
requirements. The procurement of renewable energy credits | ||
by electric utilities pursuant to this subsection (c-5) | ||
shall be funded solely by revenues collected from the Coal | ||
to Solar and Energy Storage Initiative Charge provided for |
in this subsection (c-5) and subsection (i-5) of Section | ||
16-108 of the Public Utilities Act, shall not be funded by | ||
revenues collected through any of the other funding | ||
mechanisms provided for in subsection (c) of this Section, | ||
and shall not be subject to the limitation imposed by | ||
subsection (c) on charges to retail customers for costs to | ||
procure renewable energy resources pursuant to subsection | ||
(c), and shall not be subject to any other requirements or | ||
limitations of subsection (c). | ||
(2) The Agency shall conduct 2 procurement events to | ||
select owners of electric generating facilities meeting | ||
the eligibility criteria specified in this subsection | ||
(c-5) to enter into long-term contracts to sell renewable | ||
energy credits to electric utilities serving more than | ||
300,000 retail customers in this State as of January 1, | ||
2019. The first procurement event shall be conducted no | ||
later than March 31, 2022, unless the Agency elects to | ||
delay it, until no later than May 1, 2022, due to its | ||
overall volume of work, and shall be to select owners of | ||
electric generating facilities located in this State and | ||
south of federal Interstate Highway 80 that meet the | ||
eligibility criteria specified in this subsection (c-5). | ||
The second procurement event shall be conducted no sooner | ||
than September 30, 2022 and no later than October 31, 2022 | ||
and shall be to select owners of electric generating | ||
facilities located anywhere in this State that meet the |
eligibility criteria specified in this subsection (c-5). | ||
The Agency shall establish and announce a time period, | ||
which shall begin no later than 30 days prior to the | ||
scheduled date for the procurement event, during which | ||
applicants may submit applications to be selected as | ||
suppliers of renewable energy credits pursuant to this | ||
subsection (c-5). The eligibility criteria for selection | ||
as a supplier of renewable energy credits pursuant to this | ||
subsection (c-5) shall be as follows: | ||
(A) The applicant owns an electric generating | ||
facility located in this State that: (i) as of
January | ||
1, 2016, burned coal as its primary fuel to
generate | ||
electricity; and (ii) has, or had prior to
retirement, | ||
an electric generating capacity of at
least 150 | ||
megawatts. The electric generating facility can be | ||
either: (i) retired as of the date of the procurement | ||
event; or (ii) still operating as of the date of the | ||
procurement event. | ||
(B) The applicant is not (i) an electric | ||
cooperative as defined in Section 3-119 of the Public | ||
Utilities Act, or (ii) an entity described in | ||
subsection (b)(1) of Section 3-105 of the Public | ||
Utilities Act, or an association or consortium of or | ||
an entity owned by entities described in (i) or (ii); | ||
and the coal-fueled electric generating facility was | ||
at one time owned, in whole or in part, by a public |
utility as defined in Section 3-105 of the Public | ||
Utilities Act. | ||
(C) If participating in the first procurement | ||
event, the applicant proposes and commits to construct | ||
and operate, at the site, and if necessary for | ||
sufficient space on property adjacent to the existing | ||
property, at which the electric generating facility | ||
identified in paragraph (A) is located: (i) a new | ||
renewable energy facility of at least 20 megawatts but | ||
no more than 100 megawatts of electric generating | ||
capacity, and (ii) an energy storage facility having a | ||
storage capacity equal to at least 2 megawatts and at | ||
most 10 megawatts. If participating in the second | ||
procurement event, the applicant proposes and commits | ||
to construct and operate, at the site, and if | ||
necessary for sufficient space on property adjacent to | ||
the existing property, at which the electric | ||
generating facility identified in paragraph (A) is | ||
located: (i) a new renewable energy facility of at | ||
least 5 megawatts but no more than 20 megawatts of | ||
electric generating capacity, and (ii) an energy | ||
storage facility having a storage capacity equal to at | ||
least 0.5 megawatts and at most one megawatt. | ||
(D) The applicant agrees that the new renewable | ||
energy facility and the energy storage facility will | ||
be constructed or installed by a qualified entity or |
entities in compliance with the requirements of | ||
subsection (g) of Section 16-128A of the Public | ||
Utilities Act and any rules adopted thereunder. | ||
(E) The applicant agrees that personnel operating | ||
the new renewable energy facility and the energy | ||
storage facility will have the requisite skills, | ||
knowledge, training, experience, and competence, which | ||
may be demonstrated by completion or current | ||
participation and ultimate completion by employees of | ||
an accredited or otherwise recognized apprenticeship | ||
program for the employee's particular craft, trade, or | ||
skill, including through training and education | ||
courses and opportunities offered by the owner to | ||
employees of the coal-fueled electric generating | ||
facility or by previous employment experience | ||
performing the employee's particular work skill or | ||
function. | ||
(F) The applicant commits that not less than the | ||
prevailing wage, as determined pursuant to the | ||
Prevailing Wage Act, will be paid to the applicant's | ||
employees engaged in construction activities | ||
associated with the new renewable energy facility and | ||
the new energy storage facility and to the employees | ||
of applicant's contractors engaged in construction | ||
activities associated with the new renewable energy | ||
facility and the new energy storage facility, and |
that, on or before the commercial operation date of | ||
the new renewable energy facility, the applicant shall | ||
file a report with the Agency certifying that the | ||
requirements of this subparagraph (F) have been met. | ||
(G) The applicant commits that if selected, it | ||
will negotiate a project labor agreement for the | ||
construction of the new renewable energy facility and | ||
associated energy storage facility that includes | ||
provisions requiring the parties to the agreement to | ||
work together to establish diversity threshold | ||
requirements and to ensure best efforts to meet | ||
diversity targets, improve diversity at the applicable | ||
job site, create diverse apprenticeship opportunities, | ||
and create opportunities to employ former coal-fired | ||
power plant workers. | ||
(H) The applicant commits to enter into a contract | ||
or contracts for the applicable duration to provide | ||
specified numbers of renewable energy credits each | ||
year from the new renewable energy facility to | ||
electric utilities that served more than 300,000 | ||
retail customers in this State as of January 1, 2019, | ||
at a price of $30 per renewable energy credit. The | ||
price per renewable energy credit shall be fixed at | ||
$30 for the applicable duration and the renewable | ||
energy credits shall not be indexed renewable energy | ||
credits as provided for in item (v) of subparagraph |
(G) of paragraph (1) of subsection (c) of Section 1-75 | ||
of this Act. The applicable duration of each contract | ||
shall be 20 years, unless the applicant is physically | ||
interconnected to the PJM Interconnection, LLC | ||
transmission grid and had a generating capacity of at | ||
least 1,200 megawatts as of January 1, 2021, in which | ||
case the applicable duration of the contract shall be | ||
15 years. | ||
(I) The applicant's application is certified by an | ||
officer of the applicant and by an officer of the | ||
applicant's ultimate parent company, if any. | ||
(3) An applicant may submit applications to contract | ||
to supply renewable energy credits from more than one new | ||
renewable energy facility to be constructed at or adjacent | ||
to one or more qualifying electric generating facilities | ||
owned by the applicant. The Agency may select new | ||
renewable energy facilities to be located at or adjacent | ||
to the sites of more than one qualifying electric | ||
generation facility owned by an applicant to contract with | ||
electric utilities to supply renewable energy credits from | ||
such facilities. | ||
(4) The Agency shall assess fees to each applicant to | ||
recover the Agency's costs incurred in receiving and | ||
evaluating applications, conducting the procurement event, | ||
developing contracts for sale, delivery and purchase of | ||
renewable energy credits, and monitoring the |
administration of such contracts, as provided for in this | ||
subsection (c-5), including fees paid to a procurement | ||
administrator retained by the Agency for one or more of | ||
these purposes. | ||
(5) The Agency shall select the applicants and the new | ||
renewable energy facilities to contract with electric | ||
utilities to supply renewable energy credits in accordance | ||
with this subsection (c-5). In the first procurement | ||
event, the Agency shall select applicants and new | ||
renewable energy facilities to supply renewable energy | ||
credits, at a price of $30 per renewable energy credit, | ||
aggregating to no less than 400,000 renewable energy | ||
credits per year for the applicable duration, assuming | ||
sufficient qualifying applications to supply, in the | ||
aggregate, at least that amount of renewable energy | ||
credits per year; and not more than 580,000 renewable | ||
energy credits per year for the applicable duration. In | ||
the second procurement event, the Agency shall select | ||
applicants and new renewable energy facilities to supply | ||
renewable energy credits, at a price of $30 per renewable | ||
energy credit, aggregating to no more than 625,000 | ||
renewable energy credits per year less the amount of | ||
renewable energy credits each year contracted for as a | ||
result of the first procurement event, for the applicable | ||
durations. The number of renewable energy credits to be | ||
procured as specified in this paragraph (5) shall not be |
reduced based on renewable energy credits procured in the | ||
self-direct renewable energy credit compliance program | ||
established pursuant to subparagraph (R) of paragraph (1) | ||
of subsection (c) of Section 1-75. | ||
(6) The obligation to purchase renewable energy | ||
credits from the applicants and their new renewable energy | ||
facilities selected by the Agency shall be allocated to | ||
the electric utilities based on their respective | ||
percentages of kilowatthours delivered to delivery | ||
services customers to the aggregate kilowatthour | ||
deliveries by the electric utilities to delivery services | ||
customers for the year ended December 31, 2021. In order | ||
to achieve these allocation percentages between or among | ||
the electric utilities, the Agency shall require each | ||
applicant that is selected in the procurement event to | ||
enter into a contract with each electric utility for the | ||
sale and purchase of renewable energy credits from each | ||
new renewable energy facility to be constructed and | ||
operated by the applicant, with the sale and purchase | ||
obligations under the contracts to aggregate to the total | ||
number of renewable energy credits per year to be supplied | ||
by the applicant from the new renewable energy facility. | ||
(7) The Agency shall submit its proposed selection of | ||
applicants, new renewable energy facilities to be | ||
constructed, and renewable energy credit amounts for each | ||
procurement event to the Commission for approval. The |
Commission shall, within 2 business days after receipt of | ||
the Agency's proposed selections, approve the proposed | ||
selections if it determines that the applicants and the | ||
new renewable energy facilities to be constructed meet the | ||
selection criteria set forth in this subsection (c-5) and | ||
that the Agency seeks approval for contracts of applicable | ||
durations aggregating to no more than the maximum amount | ||
of renewable energy credits per year authorized by this | ||
subsection (c-5) for the procurement event, at a price of | ||
$30 per renewable energy credit. | ||
(8) The Agency, in conjunction with its procurement | ||
administrator if one is retained, the electric utilities, | ||
and potential applicants for contracts to produce and | ||
supply renewable energy credits pursuant to this | ||
subsection (c-5), shall develop a standard form contract | ||
for the sale, delivery and purchase of renewable energy | ||
credits pursuant to this subsection (c-5). Each contract | ||
resulting from the first procurement event shall allow for | ||
a commercial operation date for the new renewable energy | ||
facility of either June 1, 2023 or June 1, 2024, with such | ||
dates subject to adjustment as provided in this paragraph. | ||
Each contract resulting from the second procurement event | ||
shall provide for a commercial operation date on June 1 | ||
next occurring up to 48 months after execution of the | ||
contract. Each contract shall provide that the owner shall | ||
receive payments for renewable energy credits for the |
applicable durations beginning with the commercial | ||
operation date of the new renewable energy facility. The | ||
form contract shall provide for adjustments to the | ||
commercial operation and payment start dates as needed due | ||
to any delays in completing the procurement and | ||
contracting processes, in finalizing interconnection | ||
agreements and installing interconnection facilities, and | ||
in obtaining other necessary governmental permits and | ||
approvals. The form contract shall be, to the maximum | ||
extent possible, consistent with standard electric | ||
industry contracts for sale, delivery, and purchase of | ||
renewable energy credits while taking into account the | ||
specific requirements of this subsection (c-5). The form | ||
contract shall provide for over-delivery and | ||
under-delivery of renewable energy credits within | ||
reasonable ranges during each 12-month period and penalty, | ||
default, and enforcement provisions for failure of the | ||
selling party to deliver renewable energy credits as | ||
specified in the contract and to comply with the | ||
requirements of this subsection (c-5). The standard form | ||
contract shall specify that all renewable energy credits | ||
delivered to the electric utility pursuant to the contract | ||
shall be retired. The Agency shall make the proposed | ||
contracts available for a reasonable period for comment by | ||
potential applicants, and shall publish the final form | ||
contract at least 30 days before the date of the first |
procurement event. | ||
(9) Coal to Solar and Energy Storage Initiative | ||
Charge. | ||
(A) By no later than July 1, 2022, each electric | ||
utility that served more than 300,000 retail customers | ||
in this State as of January 1, 2019 shall file a tariff | ||
with the Commission for the billing and collection of | ||
a Coal to Solar and Energy Storage Initiative Charge | ||
in accordance with subsection (i-5) of Section 16-108 | ||
of the Public Utilities Act, with such tariff to be | ||
effective, following review and approval or | ||
modification by the Commission, beginning January 1, | ||
2023. The tariff shall provide for the calculation and | ||
setting of the electric utility's Coal to Solar and | ||
Energy Storage Initiative Charge to collect revenues | ||
estimated to be sufficient, in the aggregate, (i) to | ||
enable the electric utility to pay for the renewable | ||
energy credits it has contracted to purchase in the | ||
delivery year beginning June 1, 2023 and each delivery | ||
year thereafter from new renewable energy facilities | ||
located at the sites of qualifying electric generating | ||
facilities, and (ii) to fund the grant payments to be | ||
made in each delivery year by the Department of | ||
Commerce and Economic Opportunity, or any successor | ||
department or agency, which shall be referred to in | ||
this subsection (c-5) as the Department, pursuant to |
paragraph (10) of this subsection (c-5). The electric | ||
utility's tariff shall provide for the billing and | ||
collection of the Coal to Solar and Energy Storage | ||
Initiative Charge on each kilowatthour of electricity | ||
delivered to its delivery services customers within | ||
its service territory and shall provide for an annual | ||
reconciliation of revenues collected with actual | ||
costs, in accordance with subsection (i-5) of Section | ||
16-108 of the Public Utilities Act. | ||
(B) Each electric utility shall remit on a monthly | ||
basis to the State Treasurer, for deposit in the Coal | ||
to Solar and Energy Storage Initiative Fund provided | ||
for in this subsection (c-5), the electric utility's | ||
collections of the Coal to Solar and Energy Storage | ||
Initiative Charge in the amount estimated to be needed | ||
by the Department for grant payments pursuant to grant | ||
contracts entered into by the Department pursuant to | ||
paragraph (10) of this subsection (c-5). | ||
(10) Coal to Solar and Energy Storage Initiative Fund. | ||
(A) The Coal to Solar and Energy Storage | ||
Initiative Fund is established as a special fund in | ||
the State treasury. The Coal to Solar and Energy | ||
Storage Initiative Fund is authorized to receive, by | ||
statutory deposit, that portion specified in item (B) | ||
of paragraph (9) of this subsection (c-5) of moneys | ||
collected by electric utilities through imposition of |
the Coal to Solar and Energy Storage Initiative Charge | ||
required by this subsection (c-5). The Coal to Solar | ||
and Energy Storage Initiative Fund shall be | ||
administered by the Department to provide grants to | ||
support the installation and operation of energy | ||
storage facilities at the sites of qualifying electric | ||
generating facilities meeting the criteria specified | ||
in this paragraph (10). | ||
(B) The Coal to Solar and Energy Storage | ||
Initiative Fund shall not be subject to sweeps, | ||
administrative charges, or chargebacks, including, but | ||
not limited to, those authorized under Section 8h of | ||
the State Finance Act, that would in any way result in | ||
the transfer of those funds from the Coal to Solar and | ||
Energy Storage Initiative Fund to any other fund of | ||
this State or in having any such funds utilized for any | ||
purpose other than the express purposes set forth in | ||
this paragraph (10). | ||
(C) The Department shall utilize up to | ||
$280,500,000 in the Coal to Solar and Energy Storage | ||
Initiative Fund for grants, assuming sufficient | ||
qualifying applicants, to support installation of | ||
energy storage facilities at the sites of up to 3 | ||
qualifying electric generating facilities located in | ||
the Midcontinent Independent System Operator, Inc., | ||
region in Illinois and the sites of up to 2 qualifying |
electric generating facilities located in the PJM | ||
Interconnection, LLC region in Illinois that meet the | ||
criteria set forth in this subparagraph (C). The | ||
criteria for receipt of a grant pursuant to this | ||
subparagraph (C) are as follows: | ||
(1) the electric generating facility at the | ||
site has, or had prior to retirement, an electric | ||
generating capacity of at least 150 megawatts; | ||
(2) the electric generating facility burns (or | ||
burned prior to retirement) coal as its primary | ||
source of fuel; | ||
(3) if the electric generating facility is | ||
retired, it was retired subsequent to January 1, | ||
2016; | ||
(4) the owner of the electric generating | ||
facility has not been selected by the Agency | ||
pursuant to this subsection (c-5) of this Section | ||
to enter into a contract to sell renewable energy | ||
credits to one or more electric utilities from a | ||
new renewable energy facility located or to be | ||
located at or adjacent to the site at which the | ||
electric generating facility is located; | ||
(5) the electric generating facility located | ||
at the site was at one time owned, in whole or in | ||
part, by a public utility as defined in Section | ||
3-105 of the Public Utilities Act; |
(6) the electric generating facility at the | ||
site is not owned by (i) an electric cooperative | ||
as defined in Section 3-119 of the Public | ||
Utilities Act, or (ii) an entity described in | ||
subsection (b)(1) of Section 3-105 of the Public | ||
Utilities Act, or an association or consortium of | ||
or an entity owned by entities described in items | ||
(i) or (ii); | ||
(7) the proposed energy storage facility at | ||
the site will have energy storage capacity of at | ||
least 37 megawatts; | ||
(8) the owner commits to place the energy | ||
storage facility into commercial operation on | ||
either June 1, 2023, June 1, 2024, or June 1, 2025, | ||
with such date subject to adjustment as needed due | ||
to any delays in completing the grant contracting | ||
process, in finalizing interconnection agreements | ||
and in installing interconnection facilities, and | ||
in obtaining necessary governmental permits and | ||
approvals; | ||
(9) the owner agrees that the new energy | ||
storage facility will be constructed or installed | ||
by a qualified entity or entities consistent with | ||
the requirements of subsection (g) of Section | ||
16-128A of the Public Utilities Act and any rules | ||
adopted under that Section; |
(10) the owner agrees that personnel operating | ||
the energy storage facility will have the | ||
requisite skills, knowledge, training, experience, | ||
and competence, which may be demonstrated by | ||
completion or current participation and ultimate | ||
completion by employees of an accredited or | ||
otherwise recognized apprenticeship program for | ||
the employee's particular craft, trade, or skill, | ||
including through training and education courses | ||
and opportunities offered by the owner to | ||
employees of the coal-fueled electric generating | ||
facility or by previous employment experience | ||
performing the employee's particular work skill or | ||
function; | ||
(11) the owner commits that not less than the | ||
prevailing wage, as determined pursuant to the | ||
Prevailing Wage Act, will be paid to the owner's | ||
employees engaged in construction activities | ||
associated with the new energy storage facility | ||
and to the employees of the owner's contractors | ||
engaged in construction activities associated with | ||
the new energy storage facility, and that, on or | ||
before the commercial operation date of the new | ||
energy storage facility, the owner shall file a | ||
report with the Department certifying that the | ||
requirements of this subparagraph (11) have been |
met; and | ||
(12) the owner commits that if selected to | ||
receive a grant, it will negotiate a project labor | ||
agreement for the construction of the new energy | ||
storage facility that includes provisions | ||
requiring the parties to the agreement to work | ||
together to establish diversity threshold | ||
requirements and to ensure best efforts to meet | ||
diversity targets, improve diversity at the | ||
applicable job site, create diverse apprenticeship | ||
opportunities, and create opportunities to employ | ||
former coal-fired power plant workers. | ||
The Department shall accept applications for this | ||
grant program until March 31, 2022 and shall announce | ||
the award of grants no later than June 1, 2022. The | ||
Department shall make the grant payments to a | ||
recipient in equal annual amounts for 10 years | ||
following the date the energy storage facility is | ||
placed into commercial operation. The annual grant | ||
payments to a qualifying energy storage facility shall | ||
be $110,000 per megawatt of energy storage capacity, | ||
with total annual grant payments pursuant to this | ||
subparagraph (C) for qualifying energy storage | ||
facilities not to exceed $28,050,000 in any year. | ||
(D) Grants of funding for energy storage | ||
facilities pursuant to subparagraph (C) of this |
paragraph (10), from the Coal to Solar and Energy | ||
Storage Initiative Fund, shall be memorialized in | ||
grant contracts between the Department and the | ||
recipient. The grant contracts shall specify the date | ||
or dates in each year on which the annual grant | ||
payments shall be paid. | ||
(E) All disbursements from the Coal to Solar and | ||
Energy Storage Initiative Fund shall be made only upon | ||
warrants of the Comptroller drawn upon the Treasurer | ||
as custodian of the Fund upon vouchers signed by the | ||
Director of the Department or by the person or persons | ||
designated by the Director of the Department for that | ||
purpose. The Comptroller is authorized to draw the | ||
warrants upon vouchers so signed. The Treasurer shall | ||
accept all written warrants so signed and shall be | ||
released from liability for all payments made on those | ||
warrants. | ||
(11) Diversity, equity, and inclusion plans. | ||
(A) Each applicant selected in a procurement event | ||
to contract to supply renewable energy credits in | ||
accordance with this subsection (c-5) and each owner | ||
selected by the Department to receive a grant or | ||
grants to support the construction and operation of a | ||
new energy storage facility or facilities in | ||
accordance with this subsection (c-5) shall, within 60 | ||
days following the Commission's approval of the |
applicant to contract to supply renewable energy | ||
credits or within 60 days following execution of a | ||
grant contract with the Department, as applicable, | ||
submit to the Commission a diversity, equity, and | ||
inclusion plan setting forth the applicant's or | ||
owner's numeric goals for the diversity composition of | ||
its supplier entities for the new renewable energy | ||
facility or new energy storage facility, as | ||
applicable, which shall be referred to for purposes of | ||
this paragraph (11) as the project, and the | ||
applicant's or owner's action plan and schedule for | ||
achieving those goals. | ||
(B) For purposes of this paragraph (11), diversity | ||
composition shall be based on the percentage, which | ||
shall be a minimum of 25%, of eligible expenditures | ||
for contract awards for materials and services (which | ||
shall be defined in the plan) to business enterprises | ||
owned by minority persons, women, or persons with | ||
disabilities as defined in Section 2 of the Business | ||
Enterprise for Minorities, Women, and Persons with | ||
Disabilities Act, to LGBTQ business enterprises, to | ||
veteran-owned business enterprises, and to business | ||
enterprises located in environmental justice | ||
communities. The diversity composition goals of the | ||
plan may include eligible expenditures in areas for | ||
vendor or supplier opportunities in addition to |
development and construction of the project, and may | ||
exclude from eligible expenditures materials and | ||
services with limited market availability, limited | ||
production and availability from suppliers in the | ||
United States, such as solar panels and storage | ||
batteries, and material and services that are subject | ||
to critical energy infrastructure or cybersecurity | ||
requirements or restrictions. The plan may provide | ||
that the diversity composition goals may be met | ||
through Tier 1 Direct or Tier 2 subcontracting | ||
expenditures or a combination thereof for the project. | ||
(C) The plan shall provide for, but not be limited | ||
to: (i) internal initiatives, including multi-tier | ||
initiatives, by the applicant or owner, or by its | ||
engineering, procurement and construction contractor | ||
if one is used for the project, which for purposes of | ||
this paragraph (11) shall be referred to as the EPC | ||
contractor, to enable diverse businesses to be | ||
considered fairly for selection to provide materials | ||
and services; (ii) requirements for the applicant or | ||
owner or its EPC contractor to proactively solicit and | ||
utilize diverse businesses to provide materials and | ||
services; and (iii) requirements for the applicant or | ||
owner or its EPC contractor to hire a diverse | ||
workforce for the project. The plan shall include a | ||
description of the applicant's or owner's diversity |
recruiting efforts both for the project and for other | ||
areas of the applicant's or owner's business | ||
operations. The plan shall provide for the imposition | ||
of financial penalties on the applicant's or owner's | ||
EPC contractor for failure to exercise best efforts to | ||
comply with and execute the EPC contractor's diversity | ||
obligations under the plan. The plan may provide for | ||
the applicant or owner to set aside a portion of the | ||
work on the project to serve as an incubation program | ||
for qualified businesses, as specified in the plan, | ||
owned by minority persons, women, persons with | ||
disabilities, LGBTQ persons, and veterans, and | ||
businesses located in environmental justice | ||
communities, seeking to enter the renewable energy | ||
industry. | ||
(D) The applicant or owner may submit a revised or | ||
updated plan to the Commission from time to time as | ||
circumstances warrant. The applicant or owner shall | ||
file annual reports with the Commission detailing the | ||
applicant's or owner's progress in implementing its | ||
plan and achieving its goals and any modifications the | ||
applicant or owner has made to its plan to better | ||
achieve its diversity, equity and inclusion goals. The | ||
applicant or owner shall file a final report on the | ||
fifth June 1 following the commercial operation date | ||
of the new renewable energy resource or new energy |
storage facility, but the applicant or owner shall | ||
thereafter continue to be subject to applicable | ||
reporting requirements of Section 5-117 of the Public | ||
Utilities Act. | ||
(c-10) Equity accountability system. It is the purpose of | ||
this subsection (c-10) to create an equity accountability | ||
system, which includes the minimum equity standards for all | ||
renewable energy procurements, the equity category of the | ||
Adjustable Block Program, and the equity prioritization for | ||
noncompetitive procurements, that is successful in advancing | ||
priority access to the clean energy economy for businesses and | ||
workers from communities that have been excluded from economic | ||
opportunities in the energy sector, have been subject to | ||
disproportionate levels of pollution, and have | ||
disproportionately experienced negative public health | ||
outcomes. Further, it is the purpose of this subsection to | ||
ensure that this equity accountability system is successful in | ||
advancing equity across Illinois by providing access to the | ||
clean energy economy for businesses and workers from | ||
communities that have been historically excluded from economic | ||
opportunities in the energy sector, have been subject to | ||
disproportionate levels of pollution, and have | ||
disproportionately experienced negative public health | ||
outcomes. | ||
(1) Minimum equity standards. The Agency shall create | ||
programs with the purpose of increasing access to and |
development of equity eligible contractors, who are prime | ||
contractors and subcontractors, across all of the programs | ||
it manages. All applications for renewable energy credit | ||
procurements shall comply with specific minimum equity | ||
commitments. Starting in the delivery year immediately | ||
following the next long-term renewable resources | ||
procurement plan, at least 10% of the project workforce | ||
for each entity participating in a procurement program | ||
outlined in this subsection (c-10) must be done by equity | ||
eligible persons or equity eligible contractors. The | ||
Agency shall increase the minimum percentage each delivery | ||
year thereafter by increments that ensure a statewide | ||
average of 30% of the project workforce for each entity | ||
participating in a procurement program is done by equity | ||
eligible persons or equity eligible contractors by 2030. | ||
The Agency shall propose a schedule of percentage | ||
increases to the minimum equity standards in its draft | ||
revised renewable energy resources procurement plan | ||
submitted to the Commission for approval pursuant to | ||
paragraph (5) of subsection (b) of Section 16-111.5 of the | ||
Public Utilities Act. In determining these annual | ||
increases, the Agency shall have the discretion to | ||
establish different minimum equity standards for different | ||
types of procurements and different regions of the State | ||
if the Agency finds that doing so will further the | ||
purposes of this subsection (c-10). The proposed schedule |
of annual increases shall be revisited and updated on an | ||
annual basis. Revisions shall be developed with | ||
stakeholder input, including from equity eligible persons, | ||
equity eligible contractors, clean energy industry | ||
representatives, and community-based organizations that | ||
work with such persons and contractors. | ||
(A) At the start of each delivery year, the Agency | ||
shall require a compliance plan from each entity | ||
participating in a procurement program of subsection | ||
(c) of this Section that demonstrates how they will | ||
achieve compliance with the minimum equity standard | ||
percentage for work completed in that delivery year. | ||
If an entity applies for its approved vendor or | ||
designee status between delivery years, the Agency | ||
shall require a compliance plan at the time of | ||
application. | ||
(B) Halfway through each delivery year, the Agency | ||
shall require each entity participating in a | ||
procurement program to confirm that it will achieve | ||
compliance in that delivery year, when applicable. The | ||
Agency may offer corrective action plans to entities | ||
that are not on track to achieve compliance. | ||
(C) At the end of each delivery year, each entity | ||
participating and completing work in that delivery | ||
year in a procurement program of subsection (c) shall | ||
submit a report to the Agency that demonstrates how it |
achieved compliance with the minimum equity standards | ||
percentage for that delivery year. | ||
(D) The Agency shall prohibit participation in | ||
procurement programs by an approved vendor or | ||
designee, as applicable, or entities with which an | ||
approved vendor or designee, as applicable, shares a | ||
common parent company if an approved vendor or | ||
designee, as applicable, failed to meet the minimum | ||
equity standards for the prior delivery year. Waivers | ||
approved for lack of equity eligible persons or equity | ||
eligible contractors in a geographic area of a project | ||
shall not count against the approved vendor or | ||
designee. The Agency shall offer a corrective action | ||
plan for any such entities to assist them in obtaining | ||
compliance and shall allow continued access to | ||
procurement programs upon an approved vendor or | ||
designee demonstrating compliance. | ||
(E) The Agency shall pursue efficiencies achieved | ||
by combining with other approved vendor or designee | ||
reporting. | ||
(2) Equity accountability system within the Adjustable | ||
Block program. The equity category described in item (vi) | ||
of subparagraph (K) of subsection (c) is only available to | ||
applicants that are equity eligible contractors. | ||
(3) Equity accountability system within competitive | ||
procurements. Through its long-term renewable resources |
procurement plan, the Agency shall develop requirements | ||
for ensuring that competitive procurement processes, | ||
including utility-scale solar, utility-scale wind, and | ||
brownfield site photovoltaic projects, advance the equity | ||
goals of this subsection (c-10). Subject to Commission | ||
approval, the
Agency shall develop bid application | ||
requirements and a
bid evaluation methodology for ensuring | ||
that utilization
of equity eligible contractors, whether | ||
as bidders or as
participants on project development, is | ||
optimized,
including requiring that winning or successful | ||
applicants
for utility-scale projects are or will partner | ||
with equity
eligible contractors and giving preference to | ||
bids through which a higher portion of contract value | ||
flows to equity eligible contractors. To the extent | ||
practicable, entities participating in competitive | ||
procurements shall also be required to meet all the equity | ||
accountability requirements for approved vendors and their | ||
designees under this subsection (c-10). In developing | ||
these requirements, the Agency shall also consider whether | ||
equity goals can be further advanced through additional | ||
measures. | ||
(4) In the first revision to the long-term renewable | ||
energy resources procurement plan and each revision | ||
thereafter, the Agency shall include the following: | ||
(A) The current status and number of equity | ||
eligible contractors listed in the Energy Workforce |
Equity Database designed in subsection (c-25), | ||
including the number of equity eligible contractors | ||
with current certifications as issued by the Agency. | ||
(B) A mechanism for measuring, tracking, and | ||
reporting project workforce at the approved vendor or | ||
designee level, as applicable, which shall include a | ||
measurement methodology and records to be made | ||
available for audit by the Agency or the Program | ||
Administrator. | ||
(C) A program for approved vendors, designees, | ||
eligible persons, and equity eligible contractors to | ||
receive trainings, guidance, and other support from | ||
the Agency or its designee regarding the equity | ||
category outlined in item (vi) of subparagraph (K) of | ||
paragraph (1) of subsection (c) and in meeting the | ||
minimum equity standards of this subsection (c-10). | ||
(D) A process for certifying equity eligible | ||
contractors and equity eligible persons. The | ||
certification process shall coordinate with the Energy | ||
Workforce Equity Database set forth in subsection | ||
(c-25). | ||
(E) An application for waiver of the minimum | ||
equity standards of this subsection, which the Agency | ||
shall have the discretion to grant in rare | ||
circumstances. The Agency may grant such a waiver | ||
where the applicant provides evidence of significant |
efforts toward meeting the minimum equity commitment, | ||
including: use of the Energy Workforce Equity | ||
Database; efforts to hire or contract with entities | ||
that hire eligible persons; and efforts to establish | ||
contracting relationships with eligible contractors. | ||
The Agency shall support applicants in understanding | ||
the Energy Workforce Equity Database and other | ||
resources for pursuing compliance of the minimum | ||
equity standards. Waivers shall be project-specific, | ||
unless the Agency deems it necessary to grant a waiver | ||
across a portfolio of projects, and in effect for no | ||
longer than one year. Any waiver extension or | ||
subsequent waiver request from an applicant shall be | ||
subject to the requirements of this Section and shall | ||
specify efforts made to reach compliance. When | ||
considering whether to grant a waiver, and to what | ||
extent, the Agency shall consider the degree to which | ||
similarly situated applicants have been able to meet | ||
these minimum equity commitments. For repeated waiver | ||
requests for specific lack of eligible persons or | ||
eligible contractors available, the Agency shall make | ||
recommendations to target recruitment to add such | ||
eligible persons or eligible contractors to the | ||
database. | ||
(5) The Agency shall collect information about work on | ||
projects or portfolios of projects subject to these |
minimum equity standards to ensure compliance with this | ||
subsection (c-10). Reporting in furtherance of this | ||
requirement may be combined with other annual reporting | ||
requirements. Such reporting shall include proof of | ||
certification of each equity eligible contractor or equity | ||
eligible person during the applicable time period. | ||
(6) The Agency shall keep confidential all information | ||
and communication that provides private or personal | ||
information. | ||
(7) Modifications to the equity accountability system. | ||
As part of the update of the long-term renewable resources | ||
procurement plan to be initiated in 2023, or sooner if the | ||
Agency deems necessary, the Agency shall determine the | ||
extent to which the equity accountability system described | ||
in this subsection (c-10) has advanced the goals of this | ||
amendatory Act of the 102nd General Assembly, including | ||
through the inclusion of equity eligible persons and | ||
equity eligible contractors in renewable energy credit | ||
projects. If the Agency finds that the equity | ||
accountability system has failed to meet those goals to | ||
its fullest potential, the Agency may revise the following | ||
criteria for future Agency procurements: (A) the | ||
percentage of project workforce, or other appropriate | ||
workforce measure, certified as equity eligible persons or | ||
equity eligible contractors; (B) definitions for equity | ||
investment eligible persons and equity investment eligible |
community; and (C) such other modifications necessary to | ||
advance the goals of this amendatory Act of the 102nd | ||
General Assembly effectively. Such revised criteria may | ||
also establish distinct equity accountability systems for | ||
different types of procurements or different regions of | ||
the State if the Agency finds that doing so will further | ||
the purposes of such programs. Revisions shall be | ||
developed with stakeholder input, including from equity | ||
eligible persons, equity eligible contractors, and | ||
community-based organizations that work with such persons | ||
and contractors. | ||
(c-15) Racial discrimination elimination powers and | ||
process. | ||
(1) Purpose. It is the purpose of this subsection to | ||
empower the Agency and other State actors to remedy racial | ||
discrimination in Illinois' clean energy economy as | ||
effectively and expediently as possible, including through | ||
the use of race-conscious remedies, such as race-conscious | ||
contracting and hiring goals, as consistent with State and | ||
federal law. | ||
(2) Racial disparity and discrimination review | ||
process. | ||
(A) Within one year after awarding contracts using | ||
the equity actions processes established in this | ||
Section, the Agency shall publish a report evaluating | ||
the effectiveness of the equity actions point criteria |
of this Section in increasing participation of equity | ||
eligible persons and equity eligible contractors. The | ||
report shall disaggregate participating workers and | ||
contractors by race and ethnicity. The report shall be | ||
forwarded to the Governor, the General Assembly, and | ||
the Illinois Commerce Commission and be made available | ||
to the public. | ||
(B) As soon as is practicable thereafter, the | ||
Agency, in consultation with the Department of | ||
Commerce and Economic Opportunity, Department of | ||
Labor, and other agencies that may be relevant, shall | ||
commission and publish a disparity and availability | ||
study that measures the presence and impact of | ||
discrimination on minority businesses and workers in | ||
Illinois' clean energy economy. The Agency may hire | ||
consultants and experts to conduct the disparity and | ||
availability study, with the retention of those | ||
consultants and experts exempt from the requirements | ||
of Section 20-10 of the Illinois Procurement Code. The | ||
Illinois Power Agency shall forward a copy of its | ||
findings and recommendations to the Governor, the | ||
General Assembly, and the Illinois Commerce | ||
Commission. If the disparity and availability study | ||
establishes a strong basis in evidence that there is | ||
discrimination in Illinois' clean energy economy, the | ||
Agency, Department of Commerce and Economic |
Opportunity, Department of Labor, Department of | ||
Corrections, and other appropriate agencies shall take | ||
appropriate remedial actions, including race-conscious | ||
remedial actions as consistent with State and federal | ||
law, to effectively remedy this discrimination. Such | ||
remedies may include modification of the equity | ||
accountability system as described in subsection | ||
(c-10). | ||
(c-20) Program data collection. | ||
(1) Purpose. Data collection, data analysis, and | ||
reporting are critical to ensure that the benefits of the | ||
clean energy economy provided to Illinois residents and | ||
businesses are equitably distributed across the State. The | ||
Agency shall collect data from program applicants in order | ||
to track and improve equitable distribution of benefits | ||
across Illinois communities for all procurements the | ||
Agency conducts. The Agency shall use this data to, among | ||
other things, measure any potential impact of racial | ||
discrimination on the distribution of benefits and provide | ||
information necessary to correct any discrimination | ||
through methods consistent with State and federal law. | ||
(2) Agency collection of program data. The Agency | ||
shall collect demographic and geographic data for each | ||
entity awarded contracts under any Agency-administered | ||
program. | ||
(3) Required information to be collected. The Agency |
shall collect the following information from applicants | ||
and program participants where applicable: | ||
(A) demographic information, including racial or | ||
ethnic identity for real persons employed, contracted, | ||
or subcontracted through the program and owners of | ||
businesses or entities that apply to receive renewable | ||
energy credits from the Agency; | ||
(B) geographic location of the residency of real | ||
persons employed, contracted, or subcontracted through | ||
the program and geographic location of the | ||
headquarters of the business or entity that applies to | ||
receive renewable energy credits from the Agency; and | ||
(C) any other information the Agency determines is | ||
necessary for the purpose of achieving the purpose of | ||
this subsection. | ||
(4) Publication of collected information. The Agency | ||
shall publish, at least annually, information on the | ||
demographics of program participants on an aggregate | ||
basis. | ||
(5) Nothing in this subsection shall be interpreted to | ||
limit the authority of the Agency, or other agency or | ||
department of the State, to require or collect demographic | ||
information from applicants of other State programs. | ||
(c-25) Energy Workforce Equity Database. | ||
(1) The Agency, in consultation with the Department of | ||
Commerce and Economic Opportunity, shall create an Energy |
Workforce Equity Database, and may contract with a third | ||
party to do so ("database program administrator"). If the | ||
Department decides to contract with a third party, that | ||
third party shall be exempt from the requirements of | ||
Section 20-10 of the Illinois Procurement Code. The Energy | ||
Workforce Equity Database shall be a searchable database | ||
of suppliers, vendors, and subcontractors for clean energy | ||
industries that is: | ||
(A) publicly accessible; | ||
(B) easy for people to find and use; | ||
(C) organized by company specialty or field; | ||
(D) region-specific; and | ||
(E) populated with information including, but not | ||
limited to, contacts for suppliers, vendors, or | ||
subcontractors who are minority and women-owned | ||
business enterprise certified or who participate or | ||
have participated in any of the programs described in | ||
this Act. | ||
(2) The Agency shall create an easily accessible, | ||
public facing online tool using the database information | ||
that includes, at a minimum, the following: | ||
(A) a map of environmental justice and equity | ||
investment eligible communities; | ||
(B) job postings and recruiting opportunities; | ||
(C) a means by which recruiting clean energy | ||
companies can find and interact with current or former |
participants of clean energy workforce training | ||
programs; | ||
(D) information on workforce training service | ||
providers and training opportunities available to | ||
prospective workers; | ||
(E) renewable energy company diversity reporting; | ||
(F) a list of equity eligible contractors with | ||
their contact information, types of work performed, | ||
and locations worked in; | ||
(G) reporting on outcomes of the programs | ||
described in the workforce programs of the Energy | ||
Transition Act, including information such as, but not | ||
limited to, retention rate, graduation rate, and | ||
placement rates of trainees; and | ||
(H) information about the Jobs and Environmental | ||
Justice Grant Program, the Clean Energy Jobs and | ||
Justice Fund, and other sources of capital. | ||
(3) The Agency shall ensure the database is regularly | ||
updated to ensure information is current and shall | ||
coordinate with the Department of Commerce and Economic | ||
Opportunity to ensure that it includes information on | ||
individuals and entities that are or have participated in | ||
the Clean Jobs Workforce Network Program, Clean Energy | ||
Contractor Incubator Program, Returning Residents Clean | ||
Jobs Training Program, or Clean Energy Primes Contractor | ||
Accelerator Program. |
(c-30) Enforcement of minimum equity standards. All | ||
entities seeking renewable energy credits must submit an | ||
annual report to demonstrate compliance with each of the | ||
equity commitments required under subsection (c-10). If the | ||
Agency concludes the entity has not met or maintained its | ||
minimum equity standards required under the applicable | ||
subparagraphs under subsection (c-10), the Agency shall deny | ||
the entity's ability to participate in procurement programs in | ||
subsection (c), including by withholding approved vendor or | ||
designee status. The Agency may require the entity to enter | ||
into a corrective action plan. An entity that is not | ||
recertified for failing to meet required equity actions in | ||
subparagraph (c-10) may reapply once they have a corrective | ||
action plan and achieve compliance with the minimum equity | ||
standards. | ||
(d) Clean coal portfolio standard. | ||
(1) The procurement plans shall include electricity | ||
generated using clean coal. Each utility shall enter into | ||
one or more sourcing agreements with the initial clean | ||
coal facility, as provided in paragraph (3) of this | ||
subsection (d), covering electricity generated by the | ||
initial clean coal facility representing at least 5% of | ||
each utility's total supply to serve the load of eligible | ||
retail customers in 2015 and each year thereafter, as | ||
described in paragraph (3) of this subsection (d), subject | ||
to the limits specified in paragraph (2) of this |
subsection (d). It is the goal of the State that by January | ||
1, 2025, 25% of the electricity used in the State shall be | ||
generated by cost-effective clean coal facilities. For | ||
purposes of this subsection (d), "cost-effective" means | ||
that the expenditures pursuant to such sourcing agreements | ||
do not cause the limit stated in paragraph (2) of this | ||
subsection (d) to be exceeded and do not exceed cost-based | ||
benchmarks, which shall be developed to assess all | ||
expenditures pursuant to such sourcing agreements covering | ||
electricity generated by clean coal facilities, other than | ||
the initial clean coal facility, by the procurement | ||
administrator, in consultation with the Commission staff, | ||
Agency staff, and the procurement monitor and shall be | ||
subject to Commission review and approval. | ||
A utility party to a sourcing agreement shall | ||
immediately retire any emission credits that it receives | ||
in connection with the electricity covered by such | ||
agreement. | ||
Utilities shall maintain adequate records documenting | ||
the purchases under the sourcing agreement to comply with | ||
this subsection (d) and shall file an accounting with the | ||
load forecast that must be filed with the Agency by July 15 | ||
of each year, in accordance with subsection (d) of Section | ||
16-111.5 of the Public Utilities Act. | ||
A utility shall be deemed to have complied with the | ||
clean coal portfolio standard specified in this subsection |
(d) if the utility enters into a sourcing agreement as | ||
required by this subsection (d). | ||
(2) For purposes of this subsection (d), the required | ||
execution of sourcing agreements with the initial clean | ||
coal facility for a particular year shall be measured as a | ||
percentage of the actual amount of electricity | ||
(megawatt-hours) supplied by the electric utility to | ||
eligible retail customers in the planning year ending | ||
immediately prior to the agreement's execution. For | ||
purposes of this subsection (d), the amount paid per | ||
kilowatthour means the total amount paid for electric | ||
service expressed on a per kilowatthour basis. For | ||
purposes of this subsection (d), the total amount paid for | ||
electric service includes without limitation amounts paid | ||
for supply, transmission, distribution, surcharges and | ||
add-on taxes. | ||
Notwithstanding the requirements of this subsection | ||
(d), the total amount paid under sourcing agreements with | ||
clean coal facilities pursuant to the procurement plan for | ||
any given year shall be reduced by an amount necessary to | ||
limit the annual estimated average net increase due to the | ||
costs of these resources included in the amounts paid by | ||
eligible retail customers in connection with electric | ||
service to: | ||
(A) in 2010, no more than 0.5% of the amount paid | ||
per kilowatthour by those customers during the year |
ending May 31, 2009; | ||
(B) in 2011, the greater of an additional 0.5% of | ||
the amount paid per kilowatthour by those customers | ||
during the year ending May 31, 2010 or 1% of the amount | ||
paid per kilowatthour by those customers during the | ||
year ending May 31, 2009; | ||
(C) in 2012, the greater of an additional 0.5% of | ||
the amount paid per kilowatthour by those customers | ||
during the year ending May 31, 2011 or 1.5% of the | ||
amount paid per kilowatthour by those customers during | ||
the year ending May 31, 2009; | ||
(D) in 2013, the greater of an additional 0.5% of | ||
the amount paid per kilowatthour by those customers | ||
during the year ending May 31, 2012 or 2% of the amount | ||
paid per kilowatthour by those customers during the | ||
year ending May 31, 2009; and | ||
(E) thereafter, the total amount paid under | ||
sourcing agreements with clean coal facilities | ||
pursuant to the procurement plan for any single year | ||
shall be reduced by an amount necessary to limit the | ||
estimated average net increase due to the cost of | ||
these resources included in the amounts paid by | ||
eligible retail customers in connection with electric | ||
service to no more than the greater of (i) 2.015% of | ||
the amount paid per kilowatthour by those customers | ||
during the year ending May 31, 2009 or (ii) the |
incremental amount per kilowatthour paid for these | ||
resources in 2013. These requirements may be altered | ||
only as provided by statute. | ||
No later than June 30, 2015, the Commission shall | ||
review the limitation on the total amount paid under | ||
sourcing agreements, if any, with clean coal facilities | ||
pursuant to this subsection (d) and report to the General | ||
Assembly its findings as to whether that limitation unduly | ||
constrains the amount of electricity generated by | ||
cost-effective clean coal facilities that is covered by | ||
sourcing agreements. | ||
(3) Initial clean coal facility. In order to promote | ||
development of clean coal facilities in Illinois, each | ||
electric utility subject to this Section shall execute a | ||
sourcing agreement to source electricity from a proposed | ||
clean coal facility in Illinois (the "initial clean coal | ||
facility") that will have a nameplate capacity of at least | ||
500 MW when commercial operation commences, that has a | ||
final Clean Air Act permit on June 1, 2009 (the effective | ||
date of Public Act 95-1027), and that will meet the | ||
definition of clean coal facility in Section 1-10 of this | ||
Act when commercial operation commences. The sourcing | ||
agreements with this initial clean coal facility shall be | ||
subject to both approval of the initial clean coal | ||
facility by the General Assembly and satisfaction of the | ||
requirements of paragraph (4) of this subsection (d) and |
shall be executed within 90 days after any such approval | ||
by the General Assembly. The Agency and the Commission | ||
shall have authority to inspect all books and records | ||
associated with the initial clean coal facility during the | ||
term of such a sourcing agreement. A utility's sourcing | ||
agreement for electricity produced by the initial clean | ||
coal facility shall include: | ||
(A) a formula contractual price (the "contract | ||
price") approved pursuant to paragraph (4) of this | ||
subsection (d), which shall: | ||
(i) be determined using a cost of service | ||
methodology employing either a level or deferred | ||
capital recovery component, based on a capital | ||
structure consisting of 45% equity and 55% debt, | ||
and a return on equity as may be approved by the | ||
Federal Energy Regulatory Commission, which in any | ||
case may not exceed the lower of 11.5% or the rate | ||
of return approved by the General Assembly | ||
pursuant to paragraph (4) of this subsection (d); | ||
and | ||
(ii) provide that all miscellaneous net | ||
revenue, including but not limited to net revenue | ||
from the sale of emission allowances, if any, | ||
substitute natural gas, if any, grants or other | ||
support provided by the State of Illinois or the | ||
United States Government, firm transmission |
rights, if any, by-products produced by the | ||
facility, energy or capacity derived from the | ||
facility and not covered by a sourcing agreement | ||
pursuant to paragraph (3) of this subsection (d) | ||
or item (5) of subsection (d) of Section 16-115 of | ||
the Public Utilities Act, whether generated from | ||
the synthesis gas derived from coal, from SNG, or | ||
from natural gas, shall be credited against the | ||
revenue requirement for this initial clean coal | ||
facility; | ||
(B) power purchase provisions, which shall: | ||
(i) provide that the utility party to such | ||
sourcing agreement shall pay the contract price | ||
for electricity delivered under such sourcing | ||
agreement; | ||
(ii) require delivery of electricity to the | ||
regional transmission organization market of the | ||
utility that is party to such sourcing agreement; | ||
(iii) require the utility party to such | ||
sourcing agreement to buy from the initial clean | ||
coal facility in each hour an amount of energy | ||
equal to all clean coal energy made available from | ||
the initial clean coal facility during such hour | ||
times a fraction, the numerator of which is such | ||
utility's retail market sales of electricity | ||
(expressed in kilowatthours sold) in the State |
during the prior calendar month and the | ||
denominator of which is the total retail market | ||
sales of electricity (expressed in kilowatthours | ||
sold) in the State by utilities during such prior | ||
month and the sales of electricity (expressed in | ||
kilowatthours sold) in the State by alternative | ||
retail electric suppliers during such prior month | ||
that are subject to the requirements of this | ||
subsection (d) and paragraph (5) of subsection (d) | ||
of Section 16-115 of the Public Utilities Act, | ||
provided that the amount purchased by the utility | ||
in any year will be limited by paragraph (2) of | ||
this subsection (d); and | ||
(iv) be considered pre-existing contracts in | ||
such utility's procurement plans for eligible | ||
retail customers; | ||
(C) contract for differences provisions, which | ||
shall: | ||
(i) require the utility party to such sourcing | ||
agreement to contract with the initial clean coal | ||
facility in each hour with respect to an amount of | ||
energy equal to all clean coal energy made | ||
available from the initial clean coal facility | ||
during such hour times a fraction, the numerator | ||
of which is such utility's retail market sales of | ||
electricity (expressed in kilowatthours sold) in |
the utility's service territory in the State | ||
during the prior calendar month and the | ||
denominator of which is the total retail market | ||
sales of electricity (expressed in kilowatthours | ||
sold) in the State by utilities during such prior | ||
month and the sales of electricity (expressed in | ||
kilowatthours sold) in the State by alternative | ||
retail electric suppliers during such prior month | ||
that are subject to the requirements of this | ||
subsection (d) and paragraph (5) of subsection (d) | ||
of Section 16-115 of the Public Utilities Act, | ||
provided that the amount paid by the utility in | ||
any year will be limited by paragraph (2) of this | ||
subsection (d); | ||
(ii) provide that the utility's payment | ||
obligation in respect of the quantity of | ||
electricity determined pursuant to the preceding | ||
clause (i) shall be limited to an amount equal to | ||
(1) the difference between the contract price | ||
determined pursuant to subparagraph (A) of | ||
paragraph (3) of this subsection (d) and the | ||
day-ahead price for electricity delivered to the | ||
regional transmission organization market of the | ||
utility that is party to such sourcing agreement | ||
(or any successor delivery point at which such | ||
utility's supply obligations are financially |
settled on an hourly basis) (the "reference | ||
price") on the day preceding the day on which the | ||
electricity is delivered to the initial clean coal | ||
facility busbar, multiplied by (2) the quantity of | ||
electricity determined pursuant to the preceding | ||
clause (i); and | ||
(iii) not require the utility to take physical | ||
delivery of the electricity produced by the | ||
facility; | ||
(D) general provisions, which shall: | ||
(i) specify a term of no more than 30 years, | ||
commencing on the commercial operation date of the | ||
facility; | ||
(ii) provide that utilities shall maintain | ||
adequate records documenting purchases under the | ||
sourcing agreements entered into to comply with | ||
this subsection (d) and shall file an accounting | ||
with the load forecast that must be filed with the | ||
Agency by July 15 of each year, in accordance with | ||
subsection (d) of Section 16-111.5 of the Public | ||
Utilities Act; | ||
(iii) provide that all costs associated with | ||
the initial clean coal facility will be | ||
periodically reported to the Federal Energy | ||
Regulatory Commission and to purchasers in | ||
accordance with applicable laws governing |
cost-based wholesale power contracts; | ||
(iv) permit the Illinois Power Agency to | ||
assume ownership of the initial clean coal | ||
facility, without monetary consideration and | ||
otherwise on reasonable terms acceptable to the | ||
Agency, if the Agency so requests no less than 3 | ||
years prior to the end of the stated contract | ||
term; | ||
(v) require the owner of the initial clean | ||
coal facility to provide documentation to the | ||
Commission each year, starting in the facility's | ||
first year of commercial operation, accurately | ||
reporting the quantity of carbon emissions from | ||
the facility that have been captured and | ||
sequestered and report any quantities of carbon | ||
released from the site or sites at which carbon | ||
emissions were sequestered in prior years, based | ||
on continuous monitoring of such sites. If, in any | ||
year after the first year of commercial operation, | ||
the owner of the facility fails to demonstrate | ||
that the initial clean coal facility captured and | ||
sequestered at least 50% of the total carbon | ||
emissions that the facility would otherwise emit | ||
or that sequestration of emissions from prior | ||
years has failed, resulting in the release of | ||
carbon dioxide into the atmosphere, the owner of |
the facility must offset excess emissions. Any | ||
such carbon offsets must be permanent, additional, | ||
verifiable, real, located within the State of | ||
Illinois, and legally and practicably enforceable. | ||
The cost of such offsets for the facility that are | ||
not recoverable shall not exceed $15 million in | ||
any given year. No costs of any such purchases of | ||
carbon offsets may be recovered from a utility or | ||
its customers. All carbon offsets purchased for | ||
this purpose and any carbon emission credits | ||
associated with sequestration of carbon from the | ||
facility must be permanently retired. The initial | ||
clean coal facility shall not forfeit its | ||
designation as a clean coal facility if the | ||
facility fails to fully comply with the applicable | ||
carbon sequestration requirements in any given | ||
year, provided the requisite offsets are | ||
purchased. However, the Attorney General, on | ||
behalf of the People of the State of Illinois, may | ||
specifically enforce the facility's sequestration | ||
requirement and the other terms of this contract | ||
provision. Compliance with the sequestration | ||
requirements and offset purchase requirements | ||
specified in paragraph (3) of this subsection (d) | ||
shall be reviewed annually by an independent | ||
expert retained by the owner of the initial clean |
coal facility, with the advance written approval | ||
of the Attorney General. The Commission may, in | ||
the course of the review specified in item (vii), | ||
reduce the allowable return on equity for the | ||
facility if the facility willfully fails to comply | ||
with the carbon capture and sequestration | ||
requirements set forth in this item (v); | ||
(vi) include limits on, and accordingly | ||
provide for modification of, the amount the | ||
utility is required to source under the sourcing | ||
agreement consistent with paragraph (2) of this | ||
subsection (d); | ||
(vii) require Commission review: (1) to | ||
determine the justness, reasonableness, and | ||
prudence of the inputs to the formula referenced | ||
in subparagraphs (A)(i) through (A)(iii) of | ||
paragraph (3) of this subsection (d), prior to an | ||
adjustment in those inputs including, without | ||
limitation, the capital structure and return on | ||
equity, fuel costs, and other operations and | ||
maintenance costs and (2) to approve the costs to | ||
be passed through to customers under the sourcing | ||
agreement by which the utility satisfies its | ||
statutory obligations. Commission review shall | ||
occur no less than every 3 years, regardless of | ||
whether any adjustments have been proposed, and |
shall be completed within 9 months; | ||
(viii) limit the utility's obligation to such | ||
amount as the utility is allowed to recover | ||
through tariffs filed with the Commission, | ||
provided that neither the clean coal facility nor | ||
the utility waives any right to assert federal | ||
pre-emption or any other argument in response to a | ||
purported disallowance of recovery costs; | ||
(ix) limit the utility's or alternative retail | ||
electric supplier's obligation to incur any | ||
liability until such time as the facility is in | ||
commercial operation and generating power and | ||
energy and such power and energy is being | ||
delivered to the facility busbar; | ||
(x) provide that the owner or owners of the | ||
initial clean coal facility, which is the | ||
counterparty to such sourcing agreement, shall | ||
have the right from time to time to elect whether | ||
the obligations of the utility party thereto shall | ||
be governed by the power purchase provisions or | ||
the contract for differences provisions; | ||
(xi) append documentation showing that the | ||
formula rate and contract, insofar as they relate | ||
to the power purchase provisions, have been | ||
approved by the Federal Energy Regulatory | ||
Commission pursuant to Section 205 of the Federal |
Power Act; | ||
(xii) provide that any changes to the terms of | ||
the contract, insofar as such changes relate to | ||
the power purchase provisions, are subject to | ||
review under the public interest standard applied | ||
by the Federal Energy Regulatory Commission | ||
pursuant to Sections 205 and 206 of the Federal | ||
Power Act; and | ||
(xiii) conform with customary lender | ||
requirements in power purchase agreements used as | ||
the basis for financing non-utility generators. | ||
(4) Effective date of sourcing agreements with the | ||
initial clean coal facility. Any proposed sourcing | ||
agreement with the initial clean coal facility shall not | ||
become effective unless the following reports are prepared | ||
and submitted and authorizations and approvals obtained: | ||
(i) Facility cost report. The owner of the initial | ||
clean coal facility shall submit to the Commission, | ||
the Agency, and the General Assembly a front-end | ||
engineering and design study, a facility cost report, | ||
method of financing (including but not limited to | ||
structure and associated costs), and an operating and | ||
maintenance cost quote for the facility (collectively | ||
"facility cost report"), which shall be prepared in | ||
accordance with the requirements of this paragraph (4) | ||
of subsection (d) of this Section, and shall provide |
the Commission and the Agency access to the work | ||
papers, relied upon documents, and any other backup | ||
documentation related to the facility cost report. | ||
(ii) Commission report. Within 6 months following | ||
receipt of the facility cost report, the Commission, | ||
in consultation with the Agency, shall submit a report | ||
to the General Assembly setting forth its analysis of | ||
the facility cost report. Such report shall include, | ||
but not be limited to, a comparison of the costs | ||
associated with electricity generated by the initial | ||
clean coal facility to the costs associated with | ||
electricity generated by other types of generation | ||
facilities, an analysis of the rate impacts on | ||
residential and small business customers over the life | ||
of the sourcing agreements, and an analysis of the | ||
likelihood that the initial clean coal facility will | ||
commence commercial operation by and be delivering | ||
power to the facility's busbar by 2016. To assist in | ||
the preparation of its report, the Commission, in | ||
consultation with the Agency, may hire one or more | ||
experts or consultants, the costs of which shall be | ||
paid for by the owner of the initial clean coal | ||
facility. The Commission and Agency may begin the | ||
process of selecting such experts or consultants prior | ||
to receipt of the facility cost report. | ||
(iii) General Assembly approval. The proposed |
sourcing agreements shall not take effect unless, | ||
based on the facility cost report and the Commission's | ||
report, the General Assembly enacts authorizing | ||
legislation approving (A) the projected price, stated | ||
in cents per kilowatthour, to be charged for | ||
electricity generated by the initial clean coal | ||
facility, (B) the projected impact on residential and | ||
small business customers' bills over the life of the | ||
sourcing agreements, and (C) the maximum allowable | ||
return on equity for the project; and | ||
(iv) Commission review. If the General Assembly | ||
enacts authorizing legislation pursuant to | ||
subparagraph (iii) approving a sourcing agreement, the | ||
Commission shall, within 90 days of such enactment, | ||
complete a review of such sourcing agreement. During | ||
such time period, the Commission shall implement any | ||
directive of the General Assembly, resolve any | ||
disputes between the parties to the sourcing agreement | ||
concerning the terms of such agreement, approve the | ||
form of such agreement, and issue an order finding | ||
that the sourcing agreement is prudent and reasonable. | ||
The facility cost report shall be prepared as follows: | ||
(A) The facility cost report shall be prepared by | ||
duly licensed engineering and construction firms | ||
detailing the estimated capital costs payable to one | ||
or more contractors or suppliers for the engineering, |
procurement and construction of the components | ||
comprising the initial clean coal facility and the | ||
estimated costs of operation and maintenance of the | ||
facility. The facility cost report shall include: | ||
(i) an estimate of the capital cost of the | ||
core plant based on one or more front end | ||
engineering and design studies for the | ||
gasification island and related facilities. The | ||
core plant shall include all civil, structural, | ||
mechanical, electrical, control, and safety | ||
systems. | ||
(ii) an estimate of the capital cost of the | ||
balance of the plant, including any capital costs | ||
associated with sequestration of carbon dioxide | ||
emissions and all interconnects and interfaces | ||
required to operate the facility, such as | ||
transmission of electricity, construction or | ||
backfeed power supply, pipelines to transport | ||
substitute natural gas or carbon dioxide, potable | ||
water supply, natural gas supply, water supply, | ||
water discharge, landfill, access roads, and coal | ||
delivery. | ||
The quoted construction costs shall be expressed | ||
in nominal dollars as of the date that the quote is | ||
prepared and shall include capitalized financing costs | ||
during construction,
taxes, insurance, and other |
owner's costs, and an assumed escalation in materials | ||
and labor beyond the date as of which the construction | ||
cost quote is expressed. | ||
(B) The front end engineering and design study for | ||
the gasification island and the cost study for the | ||
balance of plant shall include sufficient design work | ||
to permit quantification of major categories of | ||
materials, commodities and labor hours, and receipt of | ||
quotes from vendors of major equipment required to | ||
construct and operate the clean coal facility. | ||
(C) The facility cost report shall also include an | ||
operating and maintenance cost quote that will provide | ||
the estimated cost of delivered fuel, personnel, | ||
maintenance contracts, chemicals, catalysts, | ||
consumables, spares, and other fixed and variable | ||
operations and maintenance costs. The delivered fuel | ||
cost estimate will be provided by a recognized third | ||
party expert or experts in the fuel and transportation | ||
industries. The balance of the operating and | ||
maintenance cost quote, excluding delivered fuel | ||
costs, will be developed based on the inputs provided | ||
by duly licensed engineering and construction firms | ||
performing the construction cost quote, potential | ||
vendors under long-term service agreements and plant | ||
operating agreements, or recognized third party plant | ||
operator or operators. |
The operating and maintenance cost quote | ||
(including the cost of the front end engineering and | ||
design study) shall be expressed in nominal dollars as | ||
of the date that the quote is prepared and shall | ||
include taxes, insurance, and other owner's costs, and | ||
an assumed escalation in materials and labor beyond | ||
the date as of which the operating and maintenance | ||
cost quote is expressed. | ||
(D) The facility cost report shall also include an | ||
analysis of the initial clean coal facility's ability | ||
to deliver power and energy into the applicable | ||
regional transmission organization markets and an | ||
analysis of the expected capacity factor for the | ||
initial clean coal facility. | ||
(E) Amounts paid to third parties unrelated to the | ||
owner or owners of the initial clean coal facility to | ||
prepare the core plant construction cost quote, | ||
including the front end engineering and design study, | ||
and the operating and maintenance cost quote will be | ||
reimbursed through Coal Development Bonds. | ||
(5) Re-powering and retrofitting coal-fired power | ||
plants previously owned by Illinois utilities to qualify | ||
as clean coal facilities. During the 2009 procurement | ||
planning process and thereafter, the Agency and the | ||
Commission shall consider sourcing agreements covering | ||
electricity generated by power plants that were previously |
owned by Illinois utilities and that have been or will be | ||
converted into clean coal facilities, as defined by | ||
Section 1-10 of this Act. Pursuant to such procurement | ||
planning process, the owners of such facilities may | ||
propose to the Agency sourcing agreements with utilities | ||
and alternative retail electric suppliers required to | ||
comply with subsection (d) of this Section and item (5) of | ||
subsection (d) of Section 16-115 of the Public Utilities | ||
Act, covering electricity generated by such facilities. In | ||
the case of sourcing agreements that are power purchase | ||
agreements, the contract price for electricity sales shall | ||
be established on a cost of service basis. In the case of | ||
sourcing agreements that are contracts for differences, | ||
the contract price from which the reference price is | ||
subtracted shall be established on a cost of service | ||
basis. The Agency and the Commission may approve any such | ||
utility sourcing agreements that do not exceed cost-based | ||
benchmarks developed by the procurement administrator, in | ||
consultation with the Commission staff, Agency staff and | ||
the procurement monitor, subject to Commission review and | ||
approval. The Commission shall have authority to inspect | ||
all books and records associated with these clean coal | ||
facilities during the term of any such contract. | ||
(6) Costs incurred under this subsection (d) or | ||
pursuant to a contract entered into under this subsection | ||
(d) shall be deemed prudently incurred and reasonable in |
amount and the electric utility shall be entitled to full | ||
cost recovery pursuant to the tariffs filed with the | ||
Commission. | ||
(d-5) Zero emission standard. | ||
(1) Beginning with the delivery year commencing on | ||
June 1, 2017, the Agency shall, for electric utilities | ||
that serve at least 100,000 retail customers in this | ||
State, procure contracts with zero emission facilities | ||
that are reasonably capable of generating cost-effective | ||
zero emission credits in an amount approximately equal to | ||
16% of the actual amount of electricity delivered by each | ||
electric utility to retail customers in the State during | ||
calendar year 2014. For an electric utility serving fewer | ||
than 100,000 retail customers in this State that | ||
requested, under Section 16-111.5 of the Public Utilities | ||
Act, that the Agency procure power and energy for all or a | ||
portion of the utility's Illinois load for the delivery | ||
year commencing June 1, 2016, the Agency shall procure | ||
contracts with zero emission facilities that are | ||
reasonably capable of generating cost-effective zero | ||
emission credits in an amount approximately equal to 16% | ||
of the portion of power and energy to be procured by the | ||
Agency for the utility. The duration of the contracts | ||
procured under this subsection (d-5) shall be for a term | ||
of 10 years ending May 31, 2027. The quantity of zero | ||
emission credits to be procured under the contracts shall |
be all of the zero emission credits generated by the zero | ||
emission facility in each delivery year; however, if the | ||
zero emission facility is owned by more than one entity, | ||
then the quantity of zero emission credits to be procured | ||
under the contracts shall be the amount of zero emission | ||
credits that are generated from the portion of the zero | ||
emission facility that is owned by the winning supplier. | ||
The 16% value identified in this paragraph (1) is the | ||
average of the percentage targets in subparagraph (B) of | ||
paragraph (1) of subsection (c) of this Section for the 5 | ||
delivery years beginning June 1, 2017. | ||
The procurement process shall be subject to the | ||
following provisions: | ||
(A) Those zero emission facilities that intend to | ||
participate in the procurement shall submit to the | ||
Agency the following eligibility information for each | ||
zero emission facility on or before the date | ||
established by the Agency: | ||
(i) the in-service date and remaining useful | ||
life of the zero emission facility; | ||
(ii) the amount of power generated annually | ||
for each of the years 2005 through 2015, and the | ||
projected zero emission credits to be generated | ||
over the remaining useful life of the zero | ||
emission facility, which shall be used to | ||
determine the capability of each facility; |
(iii) the annual zero emission facility cost | ||
projections, expressed on a per megawatthour | ||
basis, over the next 6 delivery years, which shall | ||
include the following: operation and maintenance | ||
expenses; fully allocated overhead costs, which | ||
shall be allocated using the methodology developed | ||
by the Institute for Nuclear Power Operations; | ||
fuel expenditures; non-fuel capital expenditures; | ||
spent fuel expenditures; a return on working | ||
capital; the cost of operational and market risks | ||
that could be avoided by ceasing operation; and | ||
any other costs necessary for continued | ||
operations, provided that "necessary" means, for | ||
purposes of this item (iii), that the costs could | ||
reasonably be avoided only by ceasing operations | ||
of the zero emission facility; and | ||
(iv) a commitment to continue operating, for | ||
the duration of the contract or contracts executed | ||
under the procurement held under this subsection | ||
(d-5), the zero emission facility that produces | ||
the zero emission credits to be procured in the | ||
procurement. | ||
The information described in item (iii) of this | ||
subparagraph (A) may be submitted on a confidential | ||
basis and shall be treated and maintained by the | ||
Agency, the procurement administrator, and the |
Commission as confidential and proprietary and exempt | ||
from disclosure under subparagraphs (a) and (g) of | ||
paragraph (1) of Section 7 of the Freedom of | ||
Information Act. The Office of Attorney General shall | ||
have access to, and maintain the confidentiality of, | ||
such information pursuant to Section 6.5 of the | ||
Attorney General Act. | ||
(B) The price for each zero emission credit | ||
procured under this subsection (d-5) for each delivery | ||
year shall be in an amount that equals the Social Cost | ||
of Carbon, expressed on a price per megawatthour | ||
basis. However, to ensure that the procurement remains | ||
affordable to retail customers in this State if | ||
electricity prices increase, the price in an | ||
applicable delivery year shall be reduced below the | ||
Social Cost of Carbon by the amount ("Price | ||
Adjustment") by which the market price index for the | ||
applicable delivery year exceeds the baseline market | ||
price index for the consecutive 12-month period ending | ||
May 31, 2016. If the Price Adjustment is greater than | ||
or equal to the Social Cost of Carbon in an applicable | ||
delivery year, then no payments shall be due in that | ||
delivery year. The components of this calculation are | ||
defined as follows: | ||
(i) Social Cost of Carbon: The Social Cost of | ||
Carbon is $16.50 per megawatthour, which is based |
on the U.S. Interagency Working Group on Social | ||
Cost of Carbon's price in the August 2016 | ||
Technical Update using a 3% discount rate, | ||
adjusted for inflation for each year of the | ||
program. Beginning with the delivery year | ||
commencing June 1, 2023, the price per | ||
megawatthour shall increase by $1 per | ||
megawatthour, and continue to increase by an | ||
additional $1 per megawatthour each delivery year | ||
thereafter. | ||
(ii) Baseline market price index: The baseline | ||
market price index for the consecutive 12-month | ||
period ending May 31, 2016 is $31.40 per | ||
megawatthour, which is based on the sum of (aa) | ||
the average day-ahead energy price across all | ||
hours of such 12-month period at the PJM | ||
Interconnection LLC Northern Illinois Hub, (bb) | ||
50% multiplied by the Base Residual Auction, or | ||
its successor, capacity price for the rest of the | ||
RTO zone group determined by PJM Interconnection | ||
LLC, divided by 24 hours per day, and (cc) 50% | ||
multiplied by the Planning Resource Auction, or | ||
its successor, capacity price for Zone 4 | ||
determined by the Midcontinent Independent System | ||
Operator, Inc., divided by 24 hours per day. | ||
(iii) Market price index: The market price |
index for a delivery year shall be the sum of | ||
projected energy prices and projected capacity | ||
prices determined as follows: | ||
(aa) Projected energy prices: the | ||
projected energy prices for the applicable | ||
delivery year shall be calculated once for the | ||
year using the forward market price for the | ||
PJM Interconnection, LLC Northern Illinois | ||
Hub. The forward market price shall be | ||
calculated as follows: the energy forward | ||
prices for each month of the applicable | ||
delivery year averaged for each trade date | ||
during the calendar year immediately preceding | ||
that delivery year to produce a single energy | ||
forward price for the delivery year. The | ||
forward market price calculation shall use | ||
data published by the Intercontinental | ||
Exchange, or its successor. | ||
(bb) Projected capacity prices: | ||
(I) For the delivery years commencing | ||
June 1, 2017, June 1, 2018, and June 1, | ||
2019, the projected capacity price shall | ||
be equal to the sum of (1) 50% multiplied | ||
by the Base Residual Auction, or its | ||
successor, price for the rest of the RTO | ||
zone group as determined by PJM |
Interconnection LLC, divided by 24 hours | ||
per day and, (2) 50% multiplied by the | ||
resource auction price determined in the | ||
resource auction administered by the | ||
Midcontinent Independent System Operator, | ||
Inc., in which the largest percentage of | ||
load cleared for Local Resource Zone 4, | ||
divided by 24 hours per day, and where | ||
such price is determined by the | ||
Midcontinent Independent System Operator, | ||
Inc. | ||
(II) For the delivery year commencing | ||
June 1, 2020, and each year thereafter, | ||
the projected capacity price shall be | ||
equal to the sum of (1) 50% multiplied by | ||
the Base Residual Auction, or its | ||
successor, price for the ComEd zone as | ||
determined by PJM Interconnection LLC, | ||
divided by 24 hours per day, and (2) 50% | ||
multiplied by the resource auction price | ||
determined in the resource auction | ||
administered by the Midcontinent | ||
Independent System Operator, Inc., in | ||
which the largest percentage of load | ||
cleared for Local Resource Zone 4, divided | ||
by 24 hours per day, and where such price |
is determined by the Midcontinent | ||
Independent System Operator, Inc. | ||
For purposes of this subsection (d-5): | ||
"Rest of the RTO" and "ComEd Zone" shall have | ||
the meaning ascribed to them by PJM | ||
Interconnection, LLC. | ||
"RTO" means regional transmission | ||
organization. | ||
(C) No later than 45 days after June 1, 2017 (the | ||
effective date of Public Act 99-906), the Agency shall | ||
publish its proposed zero emission standard | ||
procurement plan. The plan shall be consistent with | ||
the provisions of this paragraph (1) and shall provide | ||
that winning bids shall be selected based on public | ||
interest criteria that include, but are not limited | ||
to, minimizing carbon dioxide emissions that result | ||
from electricity consumed in Illinois and minimizing | ||
sulfur dioxide, nitrogen oxide, and particulate matter | ||
emissions that adversely affect the citizens of this | ||
State. In particular, the selection of winning bids | ||
shall take into account the incremental environmental | ||
benefits resulting from the procurement, such as any | ||
existing environmental benefits that are preserved by | ||
the procurements held under Public Act 99-906 and | ||
would cease to exist if the procurements were not | ||
held, including the preservation of zero emission |
facilities. The plan shall also describe in detail how | ||
each public interest factor shall be considered and | ||
weighted in the bid selection process to ensure that | ||
the public interest criteria are applied to the | ||
procurement and given full effect. | ||
For purposes of developing the plan, the Agency | ||
shall consider any reports issued by a State agency, | ||
board, or commission under House Resolution 1146 of | ||
the 98th General Assembly and paragraph (4) of | ||
subsection (d) of this Section, as well as publicly | ||
available analyses and studies performed by or for | ||
regional transmission organizations that serve the | ||
State and their independent market monitors. | ||
Upon publishing of the zero emission standard | ||
procurement plan, copies of the plan shall be posted | ||
and made publicly available on the Agency's website. | ||
All interested parties shall have 10 days following | ||
the date of posting to provide comment to the Agency on | ||
the plan. All comments shall be posted to the Agency's | ||
website. Following the end of the comment period, but | ||
no more than 60 days later than June 1, 2017 (the | ||
effective date of Public Act 99-906), the Agency shall | ||
revise the plan as necessary based on the comments | ||
received and file its zero emission standard | ||
procurement plan with the Commission. | ||
If the Commission determines that the plan will |
result in the procurement of cost-effective zero | ||
emission credits, then the Commission shall, after | ||
notice and hearing, but no later than 45 days after the | ||
Agency filed the plan, approve the plan or approve | ||
with modification. For purposes of this subsection | ||
(d-5), "cost effective" means the projected costs of | ||
procuring zero emission credits from zero emission | ||
facilities do not cause the limit stated in paragraph | ||
(2) of this subsection to be exceeded. | ||
(C-5) As part of the Commission's review and | ||
acceptance or rejection of the procurement results, | ||
the Commission shall, in its public notice of | ||
successful bidders: | ||
(i) identify how the winning bids satisfy the | ||
public interest criteria described in subparagraph | ||
(C) of this paragraph (1) of minimizing carbon | ||
dioxide emissions that result from electricity | ||
consumed in Illinois and minimizing sulfur | ||
dioxide, nitrogen oxide, and particulate matter | ||
emissions that adversely affect the citizens of | ||
this State; | ||
(ii) specifically address how the selection of | ||
winning bids takes into account the incremental | ||
environmental benefits resulting from the | ||
procurement, including any existing environmental | ||
benefits that are preserved by the procurements |
held under Public Act 99-906 and would have ceased | ||
to exist if the procurements had not been held, | ||
such as the preservation of zero emission | ||
facilities; | ||
(iii) quantify the environmental benefit of | ||
preserving the resources identified in item (ii) | ||
of this subparagraph (C-5), including the | ||
following: | ||
(aa) the value of avoided greenhouse gas | ||
emissions measured as the product of the zero | ||
emission facilities' output over the contract | ||
term multiplied by the U.S. Environmental | ||
Protection Agency eGrid subregion carbon | ||
dioxide emission rate and the U.S. Interagency | ||
Working Group on Social Cost of Carbon's price | ||
in the August 2016 Technical Update using a 3% | ||
discount rate, adjusted for inflation for each | ||
delivery year; and | ||
(bb) the costs of replacement with other | ||
zero carbon dioxide resources, including wind | ||
and photovoltaic, based upon the simple | ||
average of the following: | ||
(I) the price, or if there is more | ||
than one price, the average of the prices, | ||
paid for renewable energy credits from new | ||
utility-scale wind projects in the |
procurement events specified in item (i) | ||
of subparagraph (G) of paragraph (1) of | ||
subsection (c) of this Section; and | ||
(II) the price, or if there is more | ||
than one price, the average of the prices, | ||
paid for renewable energy credits from new | ||
utility-scale solar projects and | ||
brownfield site photovoltaic projects in | ||
the procurement events specified in item | ||
(ii) of subparagraph (G) of paragraph (1) | ||
of subsection (c) of this Section and, | ||
after January 1, 2015, renewable energy | ||
credits from photovoltaic distributed | ||
generation projects in procurement events | ||
held under subsection (c) of this Section. | ||
Each utility shall enter into binding contractual | ||
arrangements with the winning suppliers. | ||
The procurement described in this subsection | ||
(d-5), including, but not limited to, the execution of | ||
all contracts procured, shall be completed no later | ||
than May 10, 2017. Based on the effective date of | ||
Public Act 99-906, the Agency and Commission may, as | ||
appropriate, modify the various dates and timelines | ||
under this subparagraph and subparagraphs (C) and (D) | ||
of this paragraph (1). The procurement and plan | ||
approval processes required by this subsection (d-5) |
shall be conducted in conjunction with the procurement | ||
and plan approval processes required by subsection (c) | ||
of this Section and Section 16-111.5 of the Public | ||
Utilities Act, to the extent practicable. | ||
Notwithstanding whether a procurement event is | ||
conducted under Section 16-111.5 of the Public | ||
Utilities Act, the Agency shall immediately initiate a | ||
procurement process on June 1, 2017 (the effective | ||
date of Public Act 99-906). | ||
(D) Following the procurement event described in | ||
this paragraph (1) and consistent with subparagraph | ||
(B) of this paragraph (1), the Agency shall calculate | ||
the payments to be made under each contract for the | ||
next delivery year based on the market price index for | ||
that delivery year. The Agency shall publish the | ||
payment calculations no later than May 25, 2017 and | ||
every May 25 thereafter. | ||
(E) Notwithstanding the requirements of this | ||
subsection (d-5), the contracts executed under this | ||
subsection (d-5) shall provide that the zero emission | ||
facility may, as applicable, suspend or terminate | ||
performance under the contracts in the following | ||
instances: | ||
(i) A zero emission facility shall be excused | ||
from its performance under the contract for any | ||
cause beyond the control of the resource, |
including, but not restricted to, acts of God, | ||
flood, drought, earthquake, storm, fire, | ||
lightning, epidemic, war, riot, civil disturbance | ||
or disobedience, labor dispute, labor or material | ||
shortage, sabotage, acts of public enemy, | ||
explosions, orders, regulations or restrictions | ||
imposed by governmental, military, or lawfully | ||
established civilian authorities, which, in any of | ||
the foregoing cases, by exercise of commercially | ||
reasonable efforts the zero emission facility | ||
could not reasonably have been expected to avoid, | ||
and which, by the exercise of commercially | ||
reasonable efforts, it has been unable to | ||
overcome. In such event, the zero emission | ||
facility shall be excused from performance for the | ||
duration of the event, including, but not limited | ||
to, delivery of zero emission credits, and no | ||
payment shall be due to the zero emission facility | ||
during the duration of the event. | ||
(ii) A zero emission facility shall be | ||
permitted to terminate the contract if legislation | ||
is enacted into law by the General Assembly that | ||
imposes or authorizes a new tax, special | ||
assessment, or fee on the generation of | ||
electricity, the ownership or leasehold of a | ||
generating unit, or the privilege or occupation of |
such generation, ownership, or leasehold of | ||
generation units by a zero emission facility. | ||
However, the provisions of this item (ii) do not | ||
apply to any generally applicable tax, special | ||
assessment or fee, or requirements imposed by | ||
federal law. | ||
(iii) A zero emission facility shall be | ||
permitted to terminate the contract in the event | ||
that the resource requires capital expenditures in | ||
excess of $40,000,000 that were neither known nor | ||
reasonably foreseeable at the time it executed the | ||
contract and that a prudent owner or operator of | ||
such resource would not undertake. | ||
(iv) A zero emission facility shall be | ||
permitted to terminate the contract in the event | ||
the Nuclear Regulatory Commission terminates the | ||
resource's license. | ||
(F) If the zero emission facility elects to | ||
terminate a contract under subparagraph (E) of this | ||
paragraph (1), then the Commission shall reopen the | ||
docket in which the Commission approved the zero | ||
emission standard procurement plan under subparagraph | ||
(C) of this paragraph (1) and, after notice and | ||
hearing, enter an order acknowledging the contract | ||
termination election if such termination is consistent | ||
with the provisions of this subsection (d-5). |
(2) For purposes of this subsection (d-5), the amount | ||
paid per kilowatthour means the total amount paid for | ||
electric service expressed on a per kilowatthour basis. | ||
For purposes of this subsection (d-5), the total amount | ||
paid for electric service includes, without limitation, | ||
amounts paid for supply, transmission, distribution, | ||
surcharges, and add-on taxes. | ||
Notwithstanding the requirements of this subsection | ||
(d-5), the contracts executed under this subsection (d-5) | ||
shall provide that the total of zero emission credits | ||
procured under a procurement plan shall be subject to the | ||
limitations of this paragraph (2). For each delivery year, | ||
the contractual volume receiving payments in such year | ||
shall be reduced for all retail customers based on the | ||
amount necessary to limit the net increase that delivery | ||
year to the costs of those credits included in the amounts | ||
paid by eligible retail customers in connection with | ||
electric service to no more than 1.65% of the amount paid | ||
per kilowatthour by eligible retail customers during the | ||
year ending May 31, 2009. The result of this computation | ||
shall apply to and reduce the procurement for all retail | ||
customers, and all those customers shall pay the same | ||
single, uniform cents per kilowatthour charge under | ||
subsection (k) of Section 16-108 of the Public Utilities | ||
Act. To arrive at a maximum dollar amount of zero emission | ||
credits to be paid for the particular delivery year, the |
resulting per kilowatthour amount shall be applied to the | ||
actual amount of kilowatthours of electricity delivered by | ||
the electric utility in the delivery year immediately | ||
prior to the procurement, to all retail customers in its | ||
service territory. Unpaid contractual volume for any | ||
delivery year shall be paid in any subsequent delivery | ||
year in which such payments can be made without exceeding | ||
the amount specified in this paragraph (2). The | ||
calculations required by this paragraph (2) shall be made | ||
only once for each procurement plan year. Once the | ||
determination as to the amount of zero emission credits to | ||
be paid is made based on the calculations set forth in this | ||
paragraph (2), no subsequent rate impact determinations | ||
shall be made and no adjustments to those contract amounts | ||
shall be allowed. All costs incurred under those contracts | ||
and in implementing this subsection (d-5) shall be | ||
recovered by the electric utility as provided in this | ||
Section. | ||
No later than June 30, 2019, the Commission shall | ||
review the limitation on the amount of zero emission | ||
credits procured under this subsection (d-5) and report to | ||
the General Assembly its findings as to whether that | ||
limitation unduly constrains the procurement of | ||
cost-effective zero emission credits. | ||
(3) Six years after the execution of a contract under | ||
this subsection (d-5), the Agency shall determine whether |
the actual zero emission credit payments received by the | ||
supplier over the 6-year period exceed the Average ZEC | ||
Payment. In addition, at the end of the term of a contract | ||
executed under this subsection (d-5), or at the time, if | ||
any, a zero emission facility's contract is terminated | ||
under subparagraph (E) of paragraph (1) of this subsection | ||
(d-5), then the Agency shall determine whether the actual | ||
zero emission credit payments received by the supplier | ||
over the term of the contract exceed the Average ZEC | ||
Payment, after taking into account any amounts previously | ||
credited back to the utility under this paragraph (3). If | ||
the Agency determines that the actual zero emission credit | ||
payments received by the supplier over the relevant period | ||
exceed the Average ZEC Payment, then the supplier shall | ||
credit the difference back to the utility. The amount of | ||
the credit shall be remitted to the applicable electric | ||
utility no later than 120 days after the Agency's | ||
determination, which the utility shall reflect as a credit | ||
on its retail customer bills as soon as practicable; | ||
however, the credit remitted to the utility shall not | ||
exceed the total amount of payments received by the | ||
facility under its contract. | ||
For purposes of this Section, the Average ZEC Payment | ||
shall be calculated by multiplying the quantity of zero | ||
emission credits delivered under the contract times the | ||
average contract price. The average contract price shall |
be determined by subtracting the amount calculated under | ||
subparagraph (B) of this paragraph (3) from the amount | ||
calculated under subparagraph (A) of this paragraph (3), | ||
as follows: | ||
(A) The average of the Social Cost of Carbon, as | ||
defined in subparagraph (B) of paragraph (1) of this | ||
subsection (d-5), during the term of the contract. | ||
(B) The average of the market price indices, as | ||
defined in subparagraph (B) of paragraph (1) of this | ||
subsection (d-5), during the term of the contract, | ||
minus the baseline market price index, as defined in | ||
subparagraph (B) of paragraph (1) of this subsection | ||
(d-5). | ||
If the subtraction yields a negative number, then the | ||
Average ZEC Payment shall be zero. | ||
(4) Cost-effective zero emission credits procured from | ||
zero emission facilities shall satisfy the applicable | ||
definitions set forth in Section 1-10 of this Act. | ||
(5) The electric utility shall retire all zero | ||
emission credits used to comply with the requirements of | ||
this subsection (d-5). | ||
(6) Electric utilities shall be entitled to recover | ||
all of the costs associated with the procurement of zero | ||
emission credits through an automatic adjustment clause | ||
tariff in accordance with subsection (k) and (m) of | ||
Section 16-108 of the Public Utilities Act, and the |
contracts executed under this subsection (d-5) shall | ||
provide that the utilities' payment obligations under such | ||
contracts shall be reduced if an adjustment is required | ||
under subsection (m) of Section 16-108 of the Public | ||
Utilities Act. | ||
(7) This subsection (d-5) shall become inoperative on | ||
January 1, 2028. | ||
(d-10) Nuclear Plant Assistance; carbon mitigation | ||
credits. | ||
(1) The General Assembly finds: | ||
(A) The health, welfare, and prosperity of all | ||
Illinois citizens require that the State of Illinois act | ||
to avoid and not increase carbon emissions from electric | ||
generation sources while continuing to ensure affordable, | ||
stable, and reliable electricity to all citizens. | ||
(B) Absent immediate action by the State to preserve | ||
existing carbon-free energy resources, those resources may | ||
retire, and the electric generation needs of Illinois' | ||
retail customers may be met instead by facilities that | ||
emit significant amounts of carbon pollution and other | ||
harmful air pollutants at a high social and economic cost | ||
until Illinois is able to develop other forms of clean | ||
energy. | ||
(C) The General Assembly finds that nuclear power | ||
generation is necessary for the State's transition to 100% | ||
clean energy, and ensuring continued operation of nuclear |
plants advances environmental and public health interests | ||
through providing carbon-free electricity while reducing | ||
the air pollution profile of the Illinois energy | ||
generation fleet. | ||
(D) The clean energy attributes of nuclear generation | ||
facilities support the State in its efforts to achieve | ||
100% clean energy. | ||
(E) The State currently invests in various forms of | ||
clean energy, including, but not limited to, renewable | ||
energy, energy efficiency, and low-emission vehicles, | ||
among others. | ||
(F) The Environmental Protection Agency commissioned | ||
an independent audit which provided a detailed assessment | ||
of the financial condition of the Illinois nuclear fleet | ||
to evaluate its financial viability and whether the | ||
environmental benefits of such resources were at risk. The | ||
report identified the risk of losing the environmental | ||
benefits of several specific nuclear units. The report | ||
also identified that the LaSalle County Generating Station | ||
will continue to operate through 2026 and therefore is not | ||
eligible to participate in the carbon mitigation credit | ||
program. | ||
(G) Nuclear plants provide carbon-free energy, which | ||
helps to avoid many health-related negative impacts for | ||
Illinois residents. | ||
(H) The procurement of carbon mitigation credits |
representing the environmental benefits of carbon-free | ||
generation will further the State's efforts at achieving | ||
100% clean energy and decarbonizing the electricity sector | ||
in a safe, reliable, and affordable manner. Further, the | ||
procurement of carbon emission credits will enhance the | ||
health and welfare of Illinois residents through decreased | ||
reliance on more highly polluting generation. | ||
(I) The General Assembly therefore finds it necessary | ||
to establish carbon mitigation credits to ensure decreased | ||
reliance on more carbon-intensive energy resources, for | ||
transitioning to a fully decarbonized electricity sector, | ||
and to help ensure health and welfare of the State's | ||
residents. | ||
(2) As used in this subsection: | ||
"Baseline costs" means costs used to establish a customer | ||
protection cap that have been evaluated through an independent | ||
audit of a carbon-free energy resource conducted by the | ||
Environmental Protection Agency that evaluated projected | ||
annual costs for operation and maintenance expenses; fully | ||
allocated overhead costs, which shall be allocated using the | ||
methodology developed by the Institute for Nuclear Power | ||
Operations; fuel expenditures; nonfuel capital expenditures; | ||
spent fuel expenditures; a return on working capital; the cost | ||
of operational and market risks that could be avoided by | ||
ceasing operation; and any other costs necessary for continued | ||
operations, provided that "necessary" means, for purposes of |
this definition, that the costs could reasonably be avoided | ||
only by ceasing operations of the carbon-free energy resource. | ||
"Carbon mitigation credit" means a tradable credit that | ||
represents the carbon emission reduction attributes of one | ||
megawatt-hour of energy produced from a carbon-free energy | ||
resource. | ||
"Carbon-free energy resource" means a generation facility | ||
that: (1) is fueled by nuclear power; and (2) is | ||
interconnected to PJM Interconnection, LLC. | ||
(3) Procurement. | ||
(A) Beginning with the delivery year commencing on | ||
June 1, 2022, the Agency shall, for electric utilities | ||
serving at least 3,000,000 retail customers in the State, | ||
seek to procure contracts for no more than approximately | ||
54,500,000 cost-effective carbon mitigation credits from | ||
carbon-free energy resources because such credits are | ||
necessary to support current levels of carbon-free energy | ||
generation and ensure the State meets its carbon dioxide | ||
emissions reduction goals. The Agency shall not make a | ||
partial award of a contract for carbon mitigation credits | ||
covering a fractional amount of a carbon-free energy | ||
resource's projected output. | ||
(B) Each carbon-free energy resource that intends to | ||
participate in a procurement shall be required to submit | ||
to the Agency the following information for the resource | ||
on or before the date established by the Agency: |
(i) the in-service date and remaining useful life | ||
of the carbon-free energy resource; | ||
(ii) the amount of power generated annually for | ||
each of the past 10 years, which shall be used to | ||
determine the capability of each facility; | ||
(iii) a commitment to be reflected in any contract | ||
entered into pursuant to this subsection (d-10) to | ||
continue operating the carbon-free energy resource at | ||
a capacity factor of at least 88% annually on average | ||
for the duration of the contract or contracts executed | ||
under the procurement held under this subsection | ||
(d-10), except in an instance described in | ||
subparagraph (E) of paragraph (1) of subsection (d-5) | ||
of this Section or made impracticable as a result of | ||
compliance with law or regulation; | ||
(iv) financial need and the risk of loss of the | ||
environmental benefits of such resource, which shall | ||
include the following information: | ||
(I) the carbon-free energy resource's cost | ||
projections, expressed on a per megawatt-hour | ||
basis, over the next 5 delivery years, which shall | ||
include the following: operation and maintenance | ||
expenses; fully allocated overhead costs, which | ||
shall be allocated using the methodology developed | ||
by the Institute for Nuclear Power Operations; | ||
fuel expenditures; nonfuel capital expenditures; |
spent fuel expenditures; a return on working | ||
capital; the cost of operational and market risks | ||
that could be avoided by ceasing operation; and | ||
any other costs necessary for continued | ||
operations, provided that "necessary" means, for | ||
purposes of this subitem (I), that the costs could | ||
reasonably be avoided only by ceasing operations | ||
of the carbon-free energy resource; and | ||
(II) the carbon-free energy resource's revenue | ||
projections, including energy, capacity, ancillary | ||
services, any other direct State support, known or | ||
anticipated federal attribute credits, known or | ||
anticipated tax credits, and any other direct | ||
federal support. | ||
The information described in this subparagraph (B) may | ||
be submitted on a confidential basis and shall be treated | ||
and maintained by the Agency, the procurement | ||
administrator, and the Commission as confidential and | ||
proprietary and exempt from disclosure under subparagraphs | ||
(a) and (g) of paragraph (1) of Section 7 of the Freedom of | ||
Information Act. The Office of the Attorney General shall | ||
have access to, and maintain the confidentiality of, such | ||
information pursuant to Section 6.5 of the Attorney | ||
General Act. | ||
(C) The Agency shall solicit bids for the contracts | ||
described in this subsection (d-10) from carbon-free |
energy resources that have satisfied the requirements of | ||
subparagraph (B) of this paragraph (3). The contracts | ||
procured pursuant to a procurement event shall reflect, | ||
and be subject to, the following terms, requirements, and | ||
limitations: | ||
(i) Contracts are for delivery of carbon | ||
mitigation credits, and are not energy or capacity | ||
sales contracts requiring physical delivery. Pursuant | ||
to item (iii), contract payments shall fully deduct | ||
the value of any monetized federal production tax | ||
credits, credits issued pursuant to a federal clean | ||
energy standard, and other federal credits if | ||
applicable. | ||
(ii) Contracts for carbon mitigation credits shall | ||
commence with the delivery year beginning on June 1, | ||
2022 and shall be for a term of 5 delivery years | ||
concluding on May 31, 2027. | ||
(iii) The price per carbon mitigation credit to be | ||
paid under a contract for a given delivery year shall | ||
be equal to an accepted bid price less the sum of: | ||
(I) one of the following energy price indices, | ||
selected by the bidder at the time of the bid for | ||
the term of the contract: | ||
(aa) the weighted-average hourly day-ahead | ||
price for the applicable delivery year at the | ||
busbar of all resources procured pursuant to |
this subsection (d-10), weighted by actual | ||
production from the resources; or | ||
(bb) the projected energy price for the | ||
PJM Interconnection, LLC Northern Illinois Hub | ||
for the applicable delivery year determined | ||
according to subitem (aa) of item (iii) of | ||
subparagraph (B) of paragraph (1) of | ||
subsection (d-5). | ||
(II) the Base Residual Auction Capacity Price | ||
for the ComEd zone as determined by PJM | ||
Interconnection, LLC, divided by 24 hours per day, | ||
for the applicable delivery year for the first 3 | ||
delivery years, and then any subsequent delivery | ||
years unless the PJM Interconnection, LLC applies | ||
the Minimum Offer Price Rule to participating | ||
carbon-free energy resources because they supply | ||
carbon mitigation credits pursuant to this Section | ||
at which time, upon notice by the carbon-free | ||
energy resource to the Commission and subject to | ||
the Commission's confirmation, the value under | ||
this subitem shall be zero, as further described | ||
in the carbon mitigation credit procurement plan; | ||
and | ||
(III) any value of monetized federal tax | ||
credits, direct payments, or similar subsidy | ||
provided to the carbon-free energy resource from |
any unit of government that is not already | ||
reflected in energy prices. | ||
If the price-per-megawatt-hour calculation | ||
performed under item (iii) of this subparagraph (C) | ||
for a given delivery year results in a net positive | ||
value, then the electric utility counterparty to the | ||
contract shall multiply such net value by the | ||
applicable contract quantity and remit the amount to | ||
the supplier. | ||
To protect retail customers from retail rate | ||
impacts that may arise upon the initiation of carbon | ||
policy changes, if the price-per-megawatt-hour | ||
calculation performed under item (iii) of this | ||
subparagraph (C) for a given delivery year results in | ||
a net negative value, then the supplier counterparty | ||
to the contract shall multiply such net value by the | ||
applicable contract quantity and remit such amount to | ||
the electric utility counterparty. The electric | ||
utility shall reflect such amounts remitted by | ||
suppliers as a credit on its retail customer bills as | ||
soon as practicable. | ||
(iv) to ensure that retail customers in Northern | ||
Illinois do not pay more for carbon mitigation credits | ||
than the value such credits provide, and | ||
notwithstanding the provisions of this subsection | ||
(d-10), the Agency shall not accept bids for contracts |
that exceed a customer protection cap equal to the | ||
baseline costs of carbon-free energy resources. | ||
The baseline costs for the applicable year shall | ||
be the following: | ||
(I) For the delivery year beginning June 1, | ||
2022, the baseline costs shall be an amount equal | ||
to $30.30 per megawatt-hour. | ||
(II) For the delivery year beginning June 1, | ||
2023, the baseline costs shall be an amount equal | ||
to $32.50 per megawatt-hour. | ||
(III) For the delivery year beginning June 1, | ||
2024, the baseline costs shall be an amount equal | ||
to $33.43 per megawatt-hour. | ||
(IV) For the delivery year beginning June 1, | ||
2025, the baseline costs shall be an amount equal | ||
to $33.50 per megawatt-hour. | ||
(V) For the delivery year beginning June 1, | ||
2026, the baseline costs shall be an amount equal | ||
to $34.50 per megawatt-hour. | ||
An Environmental Protection Agency consultant | ||
forecast, included in a report issued April 14, 2021, | ||
projects that a carbon-free energy resource has the | ||
opportunity to earn on average approximately $30.28 | ||
per megawatt-hour, for the sale of energy and capacity | ||
during the time period between 2022 and 2027. | ||
Therefore, the sale of carbon mitigation credits |
provides the opportunity to receive an additional | ||
amount per megawatt-hour in addition to the projected | ||
prices for energy and capacity. | ||
Although actual energy and capacity prices may | ||
vary from year-to-year, the General Assembly finds | ||
that this customer protection cap will help ensure | ||
that the cost of carbon mitigation credits will be | ||
less than its value, based upon the social cost of | ||
carbon identified in the Technical Support Document | ||
issued in February 2021 by the U.S. Interagency | ||
Working Group on Social Cost of Greenhouse Gases and | ||
the PJM Interconnection, LLC carbon dioxide marginal | ||
emission rate for 2020, and that a carbon-free energy | ||
resource receiving payment for carbon mitigation | ||
credits receives no more than necessary to keep those | ||
units in operation. | ||
(D) No later than 7 days after the effective date of | ||
this amendatory Act of the 102nd General Assembly, the | ||
Agency shall publish its proposed carbon mitigation credit | ||
procurement plan. The Plan shall provide that winning bids | ||
shall be selected by taking into consideration which | ||
resources best match public interest criteria that | ||
include, but are not limited to, minimizing carbon dioxide | ||
emissions that result from electricity consumed in | ||
Illinois and minimizing sulfur dioxide, nitrogen oxide, | ||
and particulate matter emissions that adversely affect the |
citizens of this State. The selection of winning bids | ||
shall also take into account the incremental environmental | ||
benefits resulting from the procurement or procurements, | ||
such as any existing environmental benefits that are | ||
preserved by a procurement held under this subsection | ||
(d-10) and would cease to exist if the procurement were | ||
not held, including the preservation of carbon-free energy | ||
resources. For those bidders having the same public | ||
interest criteria score, the relative ranking of such | ||
bidders shall be determined by price. The Plan shall | ||
describe in detail how each public interest factor shall | ||
be considered and weighted in the bid selection process to | ||
ensure that the public interest criteria are applied to | ||
the procurement. The Plan shall, to the extent practical | ||
and permissible by federal law, ensure that successful | ||
bidders make commercially reasonable efforts to apply for | ||
federal tax credits, direct payments, or similar subsidy | ||
programs that support carbon-free generation and for which | ||
the successful bidder is eligible. Upon publishing of the | ||
carbon mitigation credit procurement plan, copies of the | ||
plan shall be posted and made publicly available on the | ||
Agency's website. All interested parties shall have 7 days | ||
following the date of posting to provide comment to the | ||
Agency on the plan. All comments shall be posted to the | ||
Agency's website. Following the end of the comment period, | ||
but no more than 19 days later than the effective date of |
this amendatory Act of the 102nd General Assembly, the | ||
Agency shall revise the plan as necessary based on the | ||
comments received and file its carbon mitigation credit | ||
procurement plan with the Commission. | ||
(E) If the Commission determines that the plan is | ||
likely to result in the procurement of cost-effective | ||
carbon mitigation credits, then the Commission shall, | ||
after notice and hearing and opportunity for comment, but | ||
no later than 42 days after the Agency filed the plan, | ||
approve the plan or approve it with modification. For | ||
purposes of this subsection (d-10), "cost-effective" means | ||
carbon mitigation credits that are procured from | ||
carbon-free energy resources at prices that are within the | ||
limits specified in this paragraph (3). As part of the | ||
Commission's review and acceptance or rejection of the | ||
procurement results, the Commission shall, in its public | ||
notice of successful bidders: | ||
(i) identify how the selected carbon-free energy | ||
resources satisfy the public interest criteria | ||
described in this paragraph (3) of minimizing carbon | ||
dioxide emissions that result from electricity | ||
consumed in Illinois and minimizing sulfur dioxide, | ||
nitrogen oxide, and particulate matter emissions that | ||
adversely affect the citizens of this State; | ||
(ii) specifically address how the selection of | ||
carbon-free energy resources takes into account the |
incremental environmental benefits resulting from the | ||
procurement, including any existing environmental | ||
benefits that are preserved by the procurements held | ||
under this amendatory Act of the 102nd General | ||
Assembly and would have ceased to exist if the | ||
procurements had not been held, such as the | ||
preservation of carbon-free energy resources; | ||
(iii) quantify the environmental benefit of | ||
preserving the carbon-free energy resources procured | ||
pursuant to this subsection (d-10), including the | ||
following: | ||
(I) an assessment value of avoided greenhouse | ||
gas emissions measured as the product of the | ||
carbon-free energy resources' output over the | ||
contract term, using generally accepted | ||
methodologies for the valuation of avoided | ||
emissions; and | ||
(II) an assessment of costs of replacement | ||
with other carbon-free energy resources and | ||
renewable energy resources, including wind and | ||
photovoltaic generation, based upon an assessment | ||
of the prices paid for renewable energy credits | ||
through programs and procurements conducted | ||
pursuant to subsection (c) of Section 1-75 of this | ||
Act, and the additional storage necessary to | ||
produce the same or similar capability of matching |
customer usage patterns. | ||
(F) The procurements described in this paragraph (3), | ||
including, but not limited to, the execution of all | ||
contracts procured, shall be completed no later than | ||
December 3, 2021. The procurement and plan approval | ||
processes required by this paragraph (3) shall be | ||
conducted in conjunction with the procurement and plan | ||
approval processes required by Section 16-111.5 of the | ||
Public Utilities Act, to the extent practicable. However, | ||
the Agency and Commission may, as appropriate, modify the | ||
various dates and timelines under this subparagraph and | ||
subparagraphs (D) and (E) of this paragraph (3) to meet | ||
the December 3, 2021 contract execution deadline. | ||
Following the completion of such procurements, and | ||
consistent with this paragraph (3), the Agency shall | ||
calculate the payments to be made under each contract in a | ||
timely fashion. | ||
(F-1) Costs incurred by the electric utility pursuant | ||
to a contract authorized by this subsection (d-10) shall | ||
be deemed prudently incurred and reasonable in amount, and | ||
the electric utility shall be entitled to full cost | ||
recovery pursuant to a tariff or tariffs filed with the | ||
Commission. | ||
(G) The counterparty electric utility shall retire all | ||
carbon mitigation credits used to comply with the | ||
requirements of this subsection (d-10). |
(H) If a carbon-free energy resource is sold to | ||
another owner, the rights, obligations, and commitments | ||
under this subsection (d-10) shall continue to the | ||
subsequent owner. | ||
(I) This subsection (d-10) shall become inoperative on | ||
January 1, 2028. | ||
(e) The draft procurement plans are subject to public | ||
comment, as required by Section 16-111.5 of the Public | ||
Utilities Act. | ||
(f) The Agency shall submit the final procurement plan to | ||
the Commission. The Agency shall revise a procurement plan if | ||
the Commission determines that it does not meet the standards | ||
set forth in Section 16-111.5 of the Public Utilities Act. | ||
(g) The Agency shall assess fees to each affected utility | ||
to recover the costs incurred in preparation of the annual | ||
procurement plan for the utility. | ||
(h) The Agency shall assess fees to each bidder to recover | ||
the costs incurred in connection with a competitive | ||
procurement process.
| ||
(i) A renewable energy credit, carbon emission credit, or | ||
zero emission credit , or carbon mitigation credit can only be | ||
used once to comply with a single portfolio or other standard | ||
as set forth in subsection (c), subsection (d), or subsection | ||
(d-5) of this Section, respectively. A renewable energy | ||
credit, carbon emission credit, or zero emission credit , or | ||
carbon mitigation credit cannot be used to satisfy the |
requirements of more than one standard. If more than one type | ||
of credit is issued for the same megawatt hour of energy, only | ||
one credit can be used to satisfy the requirements of a single | ||
standard. After such use, the credit must be retired together | ||
with any other credits issued for the same megawatt hour of | ||
energy. | ||
(Source: P.A. 100-863, eff. 8-14-18; 101-81, eff. 7-12-19; | ||
101-113, eff. 1-1-20 .) | ||
(20 ILCS 3855/1-92) | ||
Sec. 1-92. Aggregation of electrical load by | ||
municipalities, townships, and counties. | ||
(a) The corporate authorities of a municipality, township | ||
board, or county board of a county
may
adopt an ordinance under | ||
which it may aggregate in accordance with this
Section | ||
residential and small commercial retail electrical loads | ||
located, respectively, within the
municipality, the township, | ||
or the unincorporated areas of the county and, for that | ||
purpose, may solicit bids and enter into service
agreements to | ||
facilitate
for those
loads the sale and purchase of | ||
electricity and related services and equipment. | ||
The corporate authorities, township board, or county
board | ||
may also exercise such authority jointly with any other | ||
municipality, township, or county.
Two or
more
municipalities, | ||
townships, or counties, or a combination of both, may initiate | ||
a
process
jointly to authorize aggregation by a majority vote |
of each particular
municipality, township, or
county as | ||
required by this Section. | ||
If the corporate authorities, township board, or the | ||
county board seek to operate the aggregation program as an | ||
opt-out program for residential and small commercial retail | ||
customers, then prior to the adoption of an ordinance with | ||
respect to aggregation of residential and small commercial | ||
retail electric loads, the corporate authorities of a | ||
municipality, the township board, or the county board of a | ||
county shall submit a referendum to its residents to determine | ||
whether or not the aggregation program shall operate as an | ||
opt-out program for residential and small commercial retail | ||
customers. Any county board that seeks to submit such a | ||
referendum to its residents shall do so only in unincorporated | ||
areas of the county where no electric aggregation ordinance | ||
has been adopted. | ||
In addition to the notice and conduct requirements of the | ||
general election law, notice of the referendum shall state | ||
briefly the purpose of the referendum. The question of whether | ||
the corporate authorities, the township board, or the county | ||
board shall adopt an opt-out aggregation program for | ||
residential and small commercial retail customers shall be | ||
submitted to the electors of the municipality, township board, | ||
or county board at a regular election and approved by a | ||
majority of the electors voting on the question. The corporate | ||
authorities, township board, or county board must certify to |
the proper election authority, which must submit the question | ||
at an election in accordance with the Election Code. | ||
The election authority must submit the question in | ||
substantially the following form: | ||
Shall the (municipality, township, or county in which | ||
the question is being voted upon) have the authority to | ||
arrange for the supply of electricity for its residential | ||
and small commercial retail customers who have not opted | ||
out of such program? | ||
The election authority must record the votes as "Yes" or "No". | ||
If a majority of the electors voting on the question vote | ||
in the affirmative, then the corporate authorities, township | ||
board, or county board may implement an opt-out aggregation | ||
program for residential and small commercial retail customers. | ||
A referendum must pass in each particular municipality, | ||
township, or county that is engaged in the aggregation | ||
program. If the referendum fails, then the corporate | ||
authorities, township board, or county board shall operate the | ||
aggregation program as an opt-in program for residential and | ||
small commercial retail customers. | ||
An
ordinance under this Section shall specify whether the | ||
aggregation will occur
only with
the prior consent of each | ||
person owning, occupying, controlling, or using an
electric | ||
load
center proposed to be aggregated. Nothing in this | ||
Section,
however,
authorizes the aggregation of electric loads | ||
that are served or authorized to be served by an electric |
cooperative as defined by and pursuant to the Electric | ||
Supplier Act or loads served by a municipality that owns and | ||
operates its own electric distribution system. No
aggregation | ||
shall take
effect unless
approved by a majority of the members | ||
of the corporate authority, township board, or county board | ||
voting upon the ordinance.
| ||
A governmental aggregator under this Section is not a | ||
public utility or an
alternative retail electric supplier.
| ||
For purposes of this Section, "township" means the portion | ||
of a township that is an unincorporated portion of a county | ||
that is not otherwise a part of a municipality. In addition to | ||
such other limitations as are included in this Section, a | ||
township board shall only have authority to aggregate | ||
residential and small commercial customer loads in accordance | ||
with this Section if the county board of the county in which | ||
the township is located (i) is not also submitting a | ||
referendum to its residents at the same general election that | ||
the township board proposes to submit a referendum under this | ||
subsection (a), (ii) has not received authorization through | ||
passage of a referendum to operate an opt-out aggregation | ||
program for residential and small commercial retail customers | ||
under this subsection (a), and (iii) has not otherwise enacted | ||
an ordinance under this subsection (a) authorizing the | ||
operation of an opt-in aggregation program for residential and | ||
small commercial retail customers as described in this | ||
Section. |
(b) Upon the applicable requisite authority under this | ||
Section, the corporate
authorities, the township board, or the | ||
county board, with assistance from the Illinois Power Agency, | ||
shall develop a plan of operation and
governance for the
| ||
aggregation program so authorized. Before adopting a plan | ||
under this Section,
the
corporate authorities, township board, | ||
or county board shall hold at least 2 public hearings on
the | ||
plan.
Before the first hearing, the corporate authorities, | ||
township board, or county board shall
publish notice of
the | ||
hearings once a week for 2 consecutive weeks in a newspaper of | ||
general
circulation
in the jurisdiction. The notice shall | ||
summarize the plan and state the date,
time, and
location of | ||
each hearing.
Any load aggregation plan established pursuant | ||
to this Section shall: | ||
(1) provide for universal
access to all applicable | ||
residential customers and equitable treatment of | ||
applicable
residential customers; | ||
(2) describe demand management and energy efficiency | ||
services to be
provided to each class of customers;
and | ||
(3) meet any requirements established by law
| ||
concerning aggregated service offered pursuant to this | ||
Section. | ||
(c) The process for soliciting bids for electricity and | ||
other related services and awarding proposed agreements for | ||
the purchase of electricity and other related services shall | ||
be conducted in the following order: |
(1) The corporate authorities, township board, or | ||
county board may solicit bids for electricity and other | ||
related services. The bid specifications may include a | ||
provision requiring the bidder to disclose the fuel type | ||
of electricity to be procured or generated on behalf of | ||
the aggregation program customers. The corporate | ||
authorities, township board, or county board
may consider | ||
the proposed source of electricity to be procured or | ||
generated to be put into the grid on behalf of aggregation | ||
program customers in the competitive
bidding process. The | ||
Agency and Commission may collaborate to issue joint
| ||
guidance on voluntary uniform standards for bidder | ||
disclosures of the source of
electricity to be procured or | ||
generated to be put into the grid on behalf of aggregation | ||
program customers. | ||
(1.5) A township board shall request from the electric | ||
utility those residential and small commercial customers | ||
within their aggregate area either by zip code or zip | ||
codes or other means as determined by the electric | ||
utility. The electric utility shall then provide to the | ||
township board the residential and small commercial | ||
customers, including the names and addresses of | ||
residential and small commercial customers, | ||
electronically. The township board shall be responsible | ||
for authenticating the residential and small commercial | ||
customers contained in this listing and providing edits of |
the data to affirm, add, or delete the residential and | ||
small commercial customers located within its | ||
jurisdiction. The township board shall provide the edited | ||
list to the electric utility in an electronic format or | ||
other means selected by the electric utility and certify | ||
that the information is accurate. | ||
(2) Notwithstanding Section 16-122 of the Public | ||
Utilities Act and Section 2HH of the Consumer Fraud and | ||
Deceptive Business Practices Act, an electric utility that | ||
provides residential and small commercial retail electric | ||
service in the aggregate area must, upon request of the | ||
corporate authorities, township board, or the county board | ||
in the aggregate area, submit to the requesting party, in | ||
an electronic format, those account numbers, names, and | ||
addresses of residential and small commercial retail | ||
customers in the aggregate area that are reflected in the | ||
electric utility's records at the time of the request; | ||
provided, however, that any township board has first | ||
provided an accurate customer list to the electric utility | ||
as provided for herein. | ||
Any corporate authority, township board, or county board | ||
receiving customer information from an electric utility shall | ||
be subject to the limitations on the disclosure of the | ||
information described in Section 16-122 of the Public | ||
Utilities Act and Section 2HH of the Consumer Fraud and | ||
Deceptive Business Practices Act, and an electric utility |
shall not be held liable for any claims arising out of the | ||
provision of information pursuant to this item (2). | ||
(d) If the corporate authorities, township board, or | ||
county board operate under an opt-in program for residential | ||
and small commercial retail customers, then the corporate | ||
authorities, township board, or county board shall comply with | ||
all of the following: | ||
(1) Within 60 days after receiving the bids, the | ||
corporate authorities, township board, or county board | ||
shall allow residential and small commercial retail | ||
customers to commit to the terms and conditions of a bid | ||
that has been selected by the corporate authorities, | ||
township board, or county board. | ||
(2) If (A) the corporate authorities, township board, | ||
or county board award proposed agreements for the purchase | ||
of electricity and other related services and (B) an | ||
agreement is reached between the corporate authorities, | ||
township board, or county board for those services, then | ||
customers committed to the terms and conditions according | ||
to item (1) of this subsection (d) shall be committed to | ||
the agreement. | ||
(e) If the corporate authorities, township board, or | ||
county board operate as an opt-out program for residential and | ||
small commercial retail customers, then it shall be the duty | ||
of the aggregated entity to fully inform
residential and small | ||
commercial retail customers in advance that they have the |
right to opt out of the aggregation program.
The disclosure | ||
shall prominently state all charges to be made and
shall | ||
include
full disclosure of the cost to obtain service pursuant | ||
to Section 16-103 of the Public Utilities Act, how
to access | ||
it,
and the fact that it is available to them without penalty, | ||
if they are
currently receiving
service under that Section. | ||
The Illinois Power Agency shall furnish, without charge, to
| ||
any citizen a
list of all supply options available to them in a | ||
format that
allows
comparison of prices and products. | ||
(f) Any person or entity retained by a municipality or | ||
county, or jointly by more than one such unit of local | ||
government, to provide input, guidance, or advice in the | ||
selection of an electricity supplier for an aggregation | ||
program shall disclose in writing to the involved units of | ||
local government the nature of any relationship through which | ||
the person or entity may receive, either directly or | ||
indirectly, commissions or other remuneration as a result of | ||
the selection of any particular electricity supplier. The | ||
written disclosure must be made prior to formal approval by | ||
the involved units of local government of any professional | ||
services agreement with the person or entity, or no later than | ||
October 1, 2012 with respect to any such professional services | ||
agreement entered into prior to the effective date of this | ||
amendatory Act of the 97th General Assembly. The disclosure | ||
shall cover all direct and indirect relationships through | ||
which commissions or remuneration may result, including the |
pooling of commissions or remuneration among multiple persons | ||
or entities, and shall identify all involved electricity | ||
suppliers. The disclosure requirements in this subsection (f) | ||
are to be liberally construed to ensure that the nature of | ||
financial interests are fully revealed, and these disclosure | ||
requirements shall apply regardless of whether the involved | ||
person or entity is licensed under Section 16-115C of the | ||
Public Utilities Act. Any person or entity that fails to make | ||
the disclosure required under this subsection (f) is liable to | ||
the involved units of local government in an amount equal to | ||
all compensation paid to such person or entity by the units of | ||
local government for the input, guidance, or advice in the | ||
selection of an electricity supplier, plus reasonable | ||
attorneys fees and court costs incurred by the units of local | ||
government in connection with obtaining such amount. | ||
(g) The Illinois Power Agency shall provide assistance to | ||
municipalities, townships, counties, or associations working | ||
with municipalities to help complete the plan and bidding | ||
process. | ||
(h) This Section does not prohibit municipalities or | ||
counties from entering into an intergovernmental agreement to | ||
aggregate residential and small commercial retail electric | ||
loads.
| ||
(i) No later than June 1, 2023, the Illinois Power Agency | ||
shall produce a report assessing how aggregation of electrical | ||
load by municipalities, townships, and counties can be used to |
help meet the renewable energy goals outlined in this Act. | ||
This report shall contain, at a minimum, an assessment of | ||
other states' utilization of load aggregation in meeting | ||
renewable energy goals, any known or expected barriers in | ||
utilizing load aggregation for meeting renewable energy goals, | ||
and recommendations for possible changes in State law | ||
necessary for electrical load aggregation to be a driver of | ||
new renewable energy project development. This report shall be | ||
published on the Agency's website and delivered to the | ||
Governor and General Assembly. To assist with developing this | ||
report, the Agency may retain the services of its expert | ||
consulting firm used to develop its procurement plans as | ||
provided in paragraph (1) of subsection (a) of Section 1-75. | ||
(Source: P.A. 97-338, eff. 8-12-11; 97-823, eff. 7-18-12; | ||
97-1067, eff. 8-24-12; 98-404, eff. 1-1-14; 98-434, eff. | ||
1-1-14; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.) | ||
(20 ILCS 3855/1-125)
| ||
Sec. 1-125. Agency annual reports. | ||
(a) By February 15 of each year, the Agency shall report | ||
annually to the Governor and the General Assembly on the | ||
operations and transactions of the Agency. The annual report | ||
shall include, but not be limited to, each of the following: | ||
(1) The average quantity, price, and term of all | ||
contracts for electricity procured under the procurement | ||
plans for electric utilities. |
(2) (Blank). | ||
(3) The quantity, price, and rate impact of all energy | ||
efficiency and demand response measures purchased for | ||
electric utilities, and any measures included in the | ||
procurement plan pursuant to Section 16-111.5B of the | ||
Public Utilities Act. | ||
(4) The amount of power and energy produced by each | ||
Agency facility. | ||
(5) The quantity of electricity supplied by each | ||
Agency facility to municipal electric systems, | ||
governmental aggregators, or rural electric cooperatives | ||
in Illinois. | ||
(6) The revenues as allocated by the Agency to each | ||
facility. | ||
(7) The costs as allocated by the Agency to each | ||
facility. | ||
(8) The accumulated depreciation for each facility. | ||
(9) The status of any projects under development. | ||
(10) Basic financial and operating information | ||
specifically detailed for the reporting year and | ||
including, but not limited to, income and expense | ||
statements, balance sheets, and changes in financial | ||
position, all in accordance with generally accepted | ||
accounting principles, debt structure, and a summary of | ||
funds on a cash basis. | ||
(11) The average quantity, price, contract type and |
term, and rate impact of all renewable resources procured | ||
purchased under the long-term renewable resources | ||
electricity procurement plans for electric utilities.
| ||
(12) A comparison of the costs associated with the | ||
Agency's procurement of renewable energy resources to (A) | ||
the Agency's costs associated with electricity generated | ||
by other types of generation facilities and (B) the | ||
benefits associated with the Agency's procurement of | ||
renewable energy resources. | ||
(13) An analysis of the rate impacts associated with | ||
the Illinois Power Agency's procurement of renewable | ||
resources, including, but not limited to, any long-term | ||
contracts, on the eligible retail customers of electric | ||
utilities. The analysis shall include the Agency's | ||
estimate of the total dollar impact that the Agency's | ||
procurement of renewable resources has had on the annual | ||
electricity bills of the customer classes that comprise | ||
each eligible retail customer class taking service from an | ||
electric utility. | ||
(14) (Blank). An analysis of how the operation of the | ||
alternative compliance payment mechanism, any long-term | ||
contracts, or other aspects of the applicable renewable | ||
portfolio standards impacts the rates of customers of | ||
alternative retail electric suppliers. | ||
(b) In addition to reporting on the transactions and | ||
operations of the Agency, the Agency shall also endeavor to
|
report on the following items through its annual report, | ||
recognizing that full and accurate information may not be | ||
available for certain items: | ||
(1) The overall nameplate capacity amount of installed
| ||
and scheduled renewable energy generation capacity
| ||
physically located in Illinois. | ||
(2) The percentage of installed and scheduled
| ||
renewable energy generation capacity as a share of overall
| ||
electricity generation capacity physically located in | ||
Illinois. | ||
(3) The amount of megawatt hours produced by renewable
| ||
energy generation capacity physically located in Illinois
| ||
for the preceding delivery year. | ||
(4) The percentage of megawatt hours produced by
| ||
renewable energy generation capacity physically located in
| ||
Illinois as a share of overall electricity generation from
| ||
facilities physically located in Illinois for the
| ||
preceding delivery year. | ||
(5) The renewable portfolio standard expenditures made | ||
pursuant to paragraph (1) of subsection (c) of Section | ||
1-75 and the total scheduled and installed renewable | ||
generation capacity expected to result from these | ||
investments. This information shall include the total cost | ||
of REC delivery contracts of the renewable portfolio | ||
standard by project category, including, but not limited | ||
to, renewable energy credits delivery contracts entered |
into pursuant to subparagraphs (C), (G), (K), and (R) of | ||
paragraph (1) of subsection (c) Section 1-75. The Agency | ||
shall also report on the total amount of customer load | ||
featuring renewable portfolio standard compliance | ||
obligations scheduled to be met by self-direct customers | ||
pursuant to subparagraph (R) of paragraph (1) of | ||
subsection (c) of Section 1-75, as well as the minimum | ||
annual quantities of renewable energy credits scheduled to | ||
be retired by those customers and amount of installed | ||
renewable energy generating capacity used to meet the | ||
requirements of subparagraph (R) of paragraph (1) of | ||
subsection (c) of Section 1-75. | ||
The Agency may seek assistance from the Illinois Commerce
| ||
Commission in developing its annual report and may also retain
| ||
the services of its expert consulting firm used to develop its
| ||
procurement plans as outlined in paragraph (1) of subsection
| ||
(a) of Section 1-75. Confidential or commercially sensitive
| ||
business information provided by retail customers, alternative
| ||
retail electric suppliers, or other parties shall be kept
| ||
confidential by the Agency consistent with Section 1-120, but
| ||
may be publicly reported in aggregate form. | ||
(Source: P.A. 99-536, eff. 7-8-16.) | ||
(20 ILCS 3855/1-128 new) | ||
Sec. 1-128. Nonprofit Electric Generation Task Force. | ||
(a) By January 1, 2028, the Nonprofit Electric Generation |
Task Force shall be established to assess the technological, | ||
economic, and regulatory feasibility as well as legislative | ||
support mechanisms necessary to achieve the carbon emission | ||
reduction targets described in Section 9.15 of the | ||
Environmental Protection Act through the use of carbon | ||
capture, sequestration, and utilization technology. | ||
(b) The Task Force shall consist of the following members: | ||
(1) one representative of the Prairie Research | ||
Institute at the University of Illinois, appointed by the | ||
Governor with the advice and consent of the Senate; | ||
(2) one representative of an association representing | ||
municipal utilities, joint municipal electric power | ||
agencies, or municipal electric generators with an | ||
ownership interest in Prairie State Generating Company, | ||
appointed by the Governor with the advice and consent of | ||
the Senate; | ||
(3) one representative of an association of electric | ||
cooperatives with ownership interests in Prairie State | ||
Generating Company, appointed by the Governor with the | ||
advice and consent of the Senate; | ||
(4) one representative of a labor union or building | ||
trade with technical experience at a coal generation | ||
facility, appointed by the Governor with the advice and | ||
consent of the Senate; | ||
(5) the Director of Natural Resources, or his or her | ||
designee; |
(6) the Director of the Environmental Protection | ||
Agency, or his or her designee; | ||
(7) the Governor, or his or her designee; | ||
(8) one expert in power sector reliability, appointed | ||
by the Governor with the advice and consent of the Senate; | ||
(9) one expert in financing large scale power sector | ||
carbon reduction projects, appointed by the Governor with | ||
the advice and consent of the Senate; | ||
(10) one designee of the President of the Senate; | ||
(11) one designee of the Speaker of the House; | ||
(12) one designee of the Senate Minority Leader; and | ||
(13) one designee of the House Minority Leader. | ||
(c) The Task Force shall have the following duties: | ||
(1) investigating the technical and financial options | ||
to install carbon capture, sequestration, utilization, and | ||
direct air capture at the Prairie State Generation Campus; | ||
(2) assessing the existing regulatory construct and | ||
any legislative support mechanisms necessary to reduce | ||
carbon at the Prairie State Generating Company in | ||
accordance with Section 9.15 of the Environmental | ||
Protection Act; and | ||
(3) preparing and filing a report with the Governor | ||
and the General Assembly that sets forth the Task Force's | ||
findings. | ||
(d) The Task Force may hire an independent third-party | ||
auditor with relevant financial expertise to conduct a |
financial audit of the Prairie State Generating Company, | ||
including an examination of potential financial solutions to | ||
alleviate the existing indirect debt obligations facing the | ||
joint indirect Prairie State Generating Company owners in | ||
Illinois. The audit shall include a review of the existing | ||
debt structure for the Prairie State Generating Company and | ||
the individual finances of each joint direct company owner in | ||
Illinois in order to recommend an appropriate and equitable | ||
method for allocating any funds, whether from the State or | ||
federal government, or any other legal source, that may be | ||
provided to support the joint indirect owners in Illinois. Any | ||
commercially sensitive information reviewed pursuant to this | ||
audit shall be reasonably redacted from the Task Force's final | ||
report and shall not be subject to disclosure under the | ||
Freedom of Information Act. | ||
Section 90-35. The State Finance Act is amended by adding | ||
Sections 5.427, 5.935, 5.936, and 5.937 as follows:
| ||
(30 ILCS 105/5.427)
| ||
Sec. 5.427. The Electric Vehicle Rebate Alternate Fuels | ||
Fund. | ||
(Source: P.A. 89-410; 89-626, eff. 8-9-96.)
| ||
(30 ILCS 105/5.935 new) | ||
Sec. 5.935. The Coal to Solar and Energy Storage |
Initiative Fund. | ||
(30 ILCS 105/5.936 new) | ||
Sec. 5.936. The Energy Transition Assistance Fund. | ||
(30 ILCS 105/5.937 new) | ||
Sec. 5.937. The Consumer Intervenor Compensation Fund. | ||
Section 90-36. The Illinois Procurement Code is amended by | ||
changing Section 1-10 as follows:
| ||
(30 ILCS 500/1-10)
| ||
Sec. 1-10. Application.
| ||
(a) This Code applies only to procurements for which | ||
bidders, offerors, potential contractors, or contractors were | ||
first
solicited on or after July 1, 1998. This Code shall not | ||
be construed to affect
or impair any contract, or any | ||
provision of a contract, entered into based on a
solicitation | ||
prior to the implementation date of this Code as described in
| ||
Article 99, including , but not limited to , any covenant | ||
entered into with respect
to any revenue bonds or similar | ||
instruments.
All procurements for which contracts are | ||
solicited between the effective date
of Articles 50 and 99 and | ||
July 1, 1998 shall be substantially in accordance
with this | ||
Code and its intent.
| ||
(b) This Code shall apply regardless of the source of the |
funds with which
the contracts are paid, including federal | ||
assistance moneys. This
Code shall
not apply to:
| ||
(1) Contracts between the State and its political | ||
subdivisions or other
governments, or between State | ||
governmental bodies, except as specifically provided in | ||
this Code.
| ||
(2) Grants, except for the filing requirements of | ||
Section 20-80.
| ||
(3) Purchase of care, except as provided in Section | ||
5-30.6 of the Illinois Public Aid
Code and this Section.
| ||
(4) Hiring of an individual as employee and not as an | ||
independent
contractor, whether pursuant to an employment | ||
code or policy or by contract
directly with that | ||
individual.
| ||
(5) Collective bargaining contracts.
| ||
(6) Purchase of real estate, except that notice of | ||
this type of contract with a value of more than $25,000 | ||
must be published in the Procurement Bulletin within 10 | ||
calendar days after the deed is recorded in the county of | ||
jurisdiction. The notice shall identify the real estate | ||
purchased, the names of all parties to the contract, the | ||
value of the contract, and the effective date of the | ||
contract.
| ||
(7) Contracts necessary to prepare for anticipated | ||
litigation, enforcement
actions, or investigations, | ||
provided
that the chief legal counsel to the Governor |
shall give his or her prior
approval when the procuring | ||
agency is one subject to the jurisdiction of the
Governor, | ||
and provided that the chief legal counsel of any other | ||
procuring
entity
subject to this Code shall give his or | ||
her prior approval when the procuring
entity is not one | ||
subject to the jurisdiction of the Governor.
| ||
(8) (Blank).
| ||
(9) Procurement expenditures by the Illinois | ||
Conservation Foundation
when only private funds are used.
| ||
(10) (Blank). | ||
(11) Public-private agreements entered into according | ||
to the procurement requirements of Section 20 of the | ||
Public-Private Partnerships for Transportation Act and | ||
design-build agreements entered into according to the | ||
procurement requirements of Section 25 of the | ||
Public-Private Partnerships for Transportation Act. | ||
(12) Contracts for legal, financial, and other | ||
professional and artistic services entered into on or | ||
before December 31, 2018 by the Illinois Finance Authority | ||
in which the State of Illinois is not obligated. Such | ||
contracts shall be awarded through a competitive process | ||
authorized by the Board of the Illinois Finance Authority | ||
and are subject to Sections 5-30, 20-160, 50-13, 50-20, | ||
50-35, and 50-37 of this Code, as well as the final | ||
approval by the Board of the Illinois Finance Authority of | ||
the terms of the contract. |
(13) Contracts for services, commodities, and | ||
equipment to support the delivery of timely forensic | ||
science services in consultation with and subject to the | ||
approval of the Chief Procurement Officer as provided in | ||
subsection (d) of Section 5-4-3a of the Unified Code of | ||
Corrections, except for the requirements of Sections | ||
20-60, 20-65, 20-70, and 20-160 and Article 50 of this | ||
Code; however, the Chief Procurement Officer may, in | ||
writing with justification, waive any certification | ||
required under Article 50 of this Code. For any contracts | ||
for services which are currently provided by members of a | ||
collective bargaining agreement, the applicable terms of | ||
the collective bargaining agreement concerning | ||
subcontracting shall be followed. | ||
On and after January 1, 2019, this paragraph (13), | ||
except for this sentence, is inoperative. | ||
(14) Contracts for participation expenditures required | ||
by a domestic or international trade show or exhibition of | ||
an exhibitor, member, or sponsor. | ||
(15) Contracts with a railroad or utility that | ||
requires the State to reimburse the railroad or utilities | ||
for the relocation of utilities for construction or other | ||
public purpose. Contracts included within this paragraph | ||
(15) shall include, but not be limited to, those | ||
associated with: relocations, crossings, installations, | ||
and maintenance. For the purposes of this paragraph (15), |
"railroad" means any form of non-highway ground | ||
transportation that runs on rails or electromagnetic | ||
guideways and "utility" means: (1) public utilities as | ||
defined in Section 3-105 of the Public Utilities Act, (2) | ||
telecommunications carriers as defined in Section 13-202 | ||
of the Public Utilities Act, (3) electric cooperatives as | ||
defined in Section 3.4 of the Electric Supplier Act, (4) | ||
telephone or telecommunications cooperatives as defined in | ||
Section 13-212 of the Public Utilities Act, (5) rural | ||
water or waste water systems with 10,000 connections or | ||
less, (6) a holder as defined in Section 21-201 of the | ||
Public Utilities Act, and (7) municipalities owning or | ||
operating utility systems consisting of public utilities | ||
as that term is defined in Section 11-117-2 of the | ||
Illinois Municipal Code. | ||
(16) Procurement expenditures necessary for the | ||
Department of Public Health to provide the delivery of | ||
timely newborn screening services in accordance with the | ||
Newborn Metabolic Screening Act. | ||
(17) Procurement expenditures necessary for the | ||
Department of Agriculture, the Department of Financial and | ||
Professional Regulation, the Department of Human Services, | ||
and the Department of Public Health to implement the | ||
Compassionate Use of Medical Cannabis Program and Opioid | ||
Alternative Pilot Program requirements and ensure access | ||
to medical cannabis for patients with debilitating medical |
conditions in accordance with the Compassionate Use of | ||
Medical Cannabis Program Act. | ||
(18) This Code does not apply to any procurements | ||
necessary for the Department of Agriculture, the | ||
Department of Financial and Professional Regulation, the | ||
Department of Human Services, the Department of Commerce | ||
and Economic Opportunity, and the Department of Public | ||
Health to implement the Cannabis Regulation and Tax Act if | ||
the applicable agency has made a good faith determination | ||
that it is necessary and appropriate for the expenditure | ||
to fall within this exemption and if the process is | ||
conducted in a manner substantially in accordance with the | ||
requirements of Sections 20-160, 25-60, 30-22, 50-5, | ||
50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, | ||
50-36, 50-37, 50-38, and 50-50 of this Code; however, for | ||
Section 50-35, compliance applies only to contracts or | ||
subcontracts over $100,000. Notice of each contract | ||
entered into under this paragraph (18) that is related to | ||
the procurement of goods and services identified in | ||
paragraph (1) through (9) of this subsection shall be | ||
published in the Procurement Bulletin within 14 calendar | ||
days after contract execution. The Chief Procurement | ||
Officer shall prescribe the form and content of the | ||
notice. Each agency shall provide the Chief Procurement | ||
Officer, on a monthly basis, in the form and content | ||
prescribed by the Chief Procurement Officer, a report of |
contracts that are related to the procurement of goods and | ||
services identified in this subsection. At a minimum, this | ||
report shall include the name of the contractor, a | ||
description of the supply or service provided, the total | ||
amount of the contract, the term of the contract, and the | ||
exception to this Code utilized. A copy of any or all of | ||
these contracts shall be made available to the Chief | ||
Procurement Officer immediately upon request. The Chief | ||
Procurement Officer shall submit a report to the Governor | ||
and General Assembly no later than November 1 of each year | ||
that includes, at a minimum, an annual summary of the | ||
monthly information reported to the Chief Procurement | ||
Officer. This exemption becomes inoperative 5 years after | ||
June 25, 2019 ( the effective date of Public Act 101-27) | ||
this amendatory Act of the 101st General Assembly . | ||
(19) Procurement expenditures necessary for the
| ||
Illinois Commerce Commission to hire third-party
| ||
facilitators pursuant to Sections 16-105.17 and Section
| ||
16-108.18 of the Public Utilities Act or an ombudsman | ||
pursuant to Section 16-107.5 of the Public Utilities Act, | ||
a facilitator pursuant to Section 16-105.17 of the Public | ||
Utilities Act, or a grid auditor pursuant to Section | ||
16-105.10 of the Public Utilities Act. | ||
Notwithstanding any other provision of law, for contracts | ||
entered into on or after October 1, 2017 under an exemption | ||
provided in any paragraph of this subsection (b), except |
paragraph (1), (2), or (5), each State agency shall post to the | ||
appropriate procurement bulletin the name of the contractor, a | ||
description of the supply or service provided, the total | ||
amount of the contract, the term of the contract, and the | ||
exception to the Code utilized. The chief procurement officer | ||
shall submit a report to the Governor and General Assembly no | ||
later than November 1 of each year that shall include, at a | ||
minimum, an annual summary of the monthly information reported | ||
to the chief procurement officer. | ||
(c) This Code does not apply to the electric power | ||
procurement process provided for under Section 1-75 of the | ||
Illinois Power Agency Act and Section 16-111.5 of the Public | ||
Utilities Act. | ||
(d) Except for Section 20-160 and Article 50 of this Code, | ||
and as expressly required by Section 9.1 of the Illinois | ||
Lottery Law, the provisions of this Code do not apply to the | ||
procurement process provided for under Section 9.1 of the | ||
Illinois Lottery Law. | ||
(e) This Code does not apply to the process used by the | ||
Capital Development Board to retain a person or entity to | ||
assist the Capital Development Board with its duties related | ||
to the determination of costs of a clean coal SNG brownfield | ||
facility, as defined by Section 1-10 of the Illinois Power | ||
Agency Act, as required in subsection (h-3) of Section 9-220 | ||
of the Public Utilities Act, including calculating the range | ||
of capital costs, the range of operating and maintenance |
costs, or the sequestration costs or monitoring the | ||
construction of clean coal SNG brownfield facility for the | ||
full duration of construction. | ||
(f) (Blank). | ||
(g) (Blank). | ||
(h) This Code does not apply to the process to procure or | ||
contracts entered into in accordance with Sections 11-5.2 and | ||
11-5.3 of the Illinois Public Aid Code. | ||
(i) Each chief procurement officer may access records | ||
necessary to review whether a contract, purchase, or other | ||
expenditure is or is not subject to the provisions of this | ||
Code, unless such records would be subject to attorney-client | ||
privilege. | ||
(j) This Code does not apply to the process used by the | ||
Capital Development Board to retain an artist or work or works | ||
of art as required in Section 14 of the Capital Development | ||
Board Act. | ||
(k) This Code does not apply to the process to procure | ||
contracts, or contracts entered into, by the State Board of | ||
Elections or the State Electoral Board for hearing officers | ||
appointed pursuant to the Election Code. | ||
(l) This Code does not apply to the processes used by the | ||
Illinois Student Assistance Commission to procure supplies and | ||
services paid for from the private funds of the Illinois | ||
Prepaid Tuition Fund. As used in this subsection (l), "private | ||
funds" means funds derived from deposits paid into the |
Illinois Prepaid Tuition Trust Fund and the earnings thereon. | ||
(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18; | ||
100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff. | ||
6-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised | ||
9-17-19.)
| ||
Section 90-37. The Business Enterprise for Minorities, | ||
Women, and Persons with Disabilities Act is amended by | ||
changing Sections 4f and 7 as follows: | ||
(30 ILCS 575/4f) | ||
(Text of Section before amendment by P.A. 101-657, Article | ||
40, Section 40-130 ) | ||
(Section scheduled to be repealed on June 30, 2024) | ||
Sec. 4f. Award of State contracts. | ||
(1) It is hereby declared to be the public policy of the | ||
State of Illinois to promote and encourage each State agency | ||
and public institution of higher education to use businesses | ||
owned by minorities, women, and persons with disabilities in | ||
the area of goods and services, including, but not limited to, | ||
insurance services, investment management services, | ||
information technology services, accounting services, | ||
architectural and engineering services, and legal services. | ||
Furthermore, each State agency and public institution of | ||
higher education shall utilize such firms to the greatest | ||
extent feasible within the bounds of financial and fiduciary |
prudence, and take affirmative steps to remove any barriers to | ||
the full participation of such firms in the procurement and | ||
contracting opportunities afforded. | ||
(a) When a State agency or public institution of | ||
higher education, other than a community college, awards a | ||
contract for insurance services, for each State agency or | ||
public institution of higher education, it shall be the | ||
aspirational goal to use insurance brokers owned by | ||
minorities, women, and persons with disabilities as | ||
defined by this Act, for not less than 20% of the total | ||
annual premiums or fees; provided that, contracts | ||
representing at least 11% of the total annual premiums or | ||
fees shall be awarded to businesses owned by minorities; | ||
contracts representing at least 7% of the total annual | ||
premiums or fees shall be awarded to women-owned | ||
businesses; and contracts representing at least 2% of the | ||
total annual premiums or fees shall be awarded to | ||
businesses owned by persons with disabilities. | ||
(b) When a State agency or public institution of | ||
higher education, other than a community college, awards a | ||
contract for investment services, for each State agency or | ||
public institution of higher education, it shall be the | ||
aspirational goal to use emerging investment managers | ||
owned by minorities, women, and persons with disabilities | ||
as defined by this Act, for not less than 20% of the total | ||
funds under management; provided that, contracts |
representing at least 11% of the total funds under | ||
management shall be awarded to businesses owned by | ||
minorities; contracts representing at least 7% of the | ||
total funds under management shall be awarded to | ||
women-owned businesses; and contracts representing at | ||
least 2% of the total funds under management shall be | ||
awarded to businesses owned by persons with disabilities. | ||
Furthermore, it is the aspirational goal that not less | ||
than 20% of the direct asset managers of the State funds be | ||
minorities, women, and persons with disabilities. | ||
(c) When a State agency or public institution of | ||
higher education, other than a community college, awards | ||
contracts for information technology services, accounting | ||
services, architectural and engineering services, and | ||
legal services, for each State agency and public | ||
institution of higher education, it shall be the | ||
aspirational goal to use such firms owned by minorities, | ||
women, and persons with disabilities as defined by this | ||
Act and lawyers who are minorities, women, and persons | ||
with disabilities as defined by this Act, for not less | ||
than 20% of the total dollar amount of State contracts; | ||
provided that, contracts representing at least 11% of the | ||
total dollar amount of State contracts shall be awarded to | ||
businesses owned by minorities or minority lawyers; | ||
contracts representing at least 7% of the total dollar | ||
amount of State contracts shall be awarded to women-owned |
businesses or women who are lawyers; and contracts | ||
representing at least 2% of the total dollar amount of | ||
State contracts shall be awarded to businesses owned by | ||
persons with disabilities or persons with disabilities who | ||
are lawyers. | ||
(d) When a community college awards a contract for | ||
insurance services, investment services, information | ||
technology services, accounting services, architectural | ||
and engineering services, and legal services, it shall be | ||
the aspirational goal of each community college to use | ||
businesses owned by minorities, women, and persons with | ||
disabilities as defined in this Act for not less than 20% | ||
of the total amount spent on contracts for these services | ||
collectively; provided that, contracts representing at | ||
least 11% of the total amount spent on contracts for these | ||
services shall be awarded to businesses owned by | ||
minorities; contracts representing at least 7% of the | ||
total amount spent on contracts for these services shall | ||
be awarded to women-owned businesses; and contracts | ||
representing at least 2% of the total amount spent on | ||
contracts for these services shall be awarded to | ||
businesses owned by persons with disabilities. When a | ||
community college awards contracts for investment | ||
services, contracts awarded to investment managers who are | ||
not emerging investment managers as defined in this Act | ||
shall not be considered businesses owned by minorities, |
women, or persons with disabilities for the purposes of | ||
this Section. | ||
(e) When a State agency or public institution of | ||
higher education issues competitive solicitations and the | ||
award history for a service or supply category shows | ||
awards to a class of business owners that are | ||
underrepresented, the Council shall determine the reason | ||
for the disparity and shall identify potential and | ||
appropriate methods to minimize or eliminate the cause for | ||
the disparity. | ||
If any State agency or public institution of higher | ||
education contract is eligible to be paid for or | ||
reimbursed, in whole or in part, with federal-aid funds, | ||
grants, or loans, and the provisions of this paragraph (e) | ||
would result in the loss of those federal-aid funds, | ||
grants, or loans, then the contract is exempt from the | ||
provisions of this paragraph (e) in order to remain | ||
eligible for those federal-aid funds, grants, or loans. | ||
(2) As used in this Section: | ||
"Accounting services" means the measurement, | ||
processing and communication of financial information | ||
about economic entities including, but is not limited to, | ||
financial accounting, management accounting, auditing, | ||
cost containment and auditing services, taxation and | ||
accounting information systems. | ||
"Architectural and engineering services" means |
professional services of an architectural or engineering | ||
nature, or incidental services, that members of the | ||
architectural and engineering professions, and individuals | ||
in their employ, may logically or justifiably perform, | ||
including studies, investigations, surveying and mapping, | ||
tests, evaluations, consultations, comprehensive | ||
planning, program management, conceptual designs, plans | ||
and specifications, value engineering, construction phase | ||
services, soils engineering, drawing reviews, preparation | ||
of operating and maintenance manuals, and other related | ||
services. | ||
"Emerging investment manager" means an investment | ||
manager or claims consultant having assets under | ||
management below $10 billion or otherwise adjudicating | ||
claims. | ||
"Information technology services" means, but is not | ||
limited to, specialized technology-oriented solutions by | ||
combining the processes and functions of software, | ||
hardware, networks, telecommunications, web designers, | ||
cloud developing resellers, and electronics. | ||
"Insurance broker" means an insurance brokerage firm, | ||
claims administrator, or both, that procures, places all | ||
lines of insurance, or administers claims with annual | ||
premiums or fees of at least $5,000,000 but not more than | ||
$10,000,000. | ||
"Legal services" means work performed by a lawyer |
including, but not limited to, contracts in anticipation | ||
of litigation, enforcement actions, or investigations. | ||
(3) Each State agency and public institution of higher | ||
education shall adopt policies that identify its plan and | ||
implementation procedures for increasing the use of service | ||
firms owned by minorities, women, and persons with | ||
disabilities. | ||
(4) Except as provided in subsection (5), the Council | ||
shall file no later than March 1 of each year an annual report | ||
to the Governor, the Bureau on Apprenticeship Programs and | ||
Clean Energy Jobs , and the General Assembly. The report filed | ||
with the General Assembly shall be filed as required in | ||
Section 3.1 of the General Assembly Organization Act. This | ||
report shall: (i) identify the service firms used by each | ||
State agency and public institution of higher education, (ii) | ||
identify the actions it has undertaken to increase the use of | ||
service firms owned by minorities, women, and persons with | ||
disabilities, including encouraging non-minority-owned firms | ||
to use other service firms owned by minorities, women, and | ||
persons with disabilities as subcontractors when the | ||
opportunities arise, (iii) state any recommendations made by | ||
the Council to each State agency and public institution of | ||
higher education to increase participation by the use of | ||
service firms owned by minorities, women, and persons with | ||
disabilities, and (iv) include the following: | ||
(A) For insurance services: the names of the insurance |
brokers or claims consultants used, the total of risk | ||
managed by each State agency and public institution of | ||
higher education by insurance brokers, the total | ||
commissions, fees paid, or both, the lines or insurance | ||
policies placed, and the amount of premiums placed; and | ||
the percentage of the risk managed by insurance brokers, | ||
the percentage of total commission, fees paid, or both, | ||
the lines or insurance policies placed, and the amount of | ||
premiums placed with each by the insurance brokers owned | ||
by minorities, women, and persons with disabilities by | ||
each State agency and public institution of higher | ||
education. | ||
(B) For investment management services: the names of | ||
the investment managers used, the total funds under | ||
management of investment managers; the total commissions, | ||
fees paid, or both; the total and percentage of funds | ||
under management of emerging investment managers owned by | ||
minorities, women, and persons with disabilities, | ||
including the total and percentage of total commissions, | ||
fees paid, or both by each State agency and public | ||
institution of higher education. | ||
(C) The names of service firms, the percentage and | ||
total dollar amount paid for professional services by | ||
category by each State agency and public institution of | ||
higher education. | ||
(D) The names of service firms, the percentage and |
total dollar amount paid for services by category to firms | ||
owned by minorities, women, and persons with disabilities | ||
by each State agency and public institution of higher | ||
education. | ||
(E) The total number of contracts awarded for services | ||
by category and the total number of contracts awarded to | ||
firms owned by minorities, women, and persons with | ||
disabilities by each State agency and public institution | ||
of higher education. | ||
(5) For community college districts, the Business | ||
Enterprise Council shall only report the following information | ||
for each community college district: (i) the name of the | ||
community colleges in the district, (ii) the name and contact | ||
information of a person at each community college appointed to | ||
be the single point of contact for vendors owned by | ||
minorities, women, or persons with disabilities, (iii) the | ||
policy of the community college district concerning certified | ||
vendors, (iv) the certifications recognized by the community | ||
college district for determining whether a business is owned | ||
or controlled by a minority, woman, or person with a | ||
disability, (v) outreach efforts conducted by the community | ||
college district to increase the use of certified vendors, | ||
(vi) the total expenditures by the community college district | ||
in the prior fiscal year in the divisions of work specified in | ||
paragraphs (a), (b), and (c) of subsection (1) of this Section | ||
and the amount paid to certified vendors in those divisions of |
work, and (vii) the total number of contracts entered into for | ||
the divisions of work specified in paragraphs (a), (b), and | ||
(c) of subsection (1) of this Section and the total number of | ||
contracts awarded to certified vendors providing these | ||
services to the community college district. The Business | ||
Enterprise Council shall not make any utilization reports | ||
under this Act for community college districts for Fiscal Year | ||
2015 and Fiscal Year 2016, but shall make the report required | ||
by this subsection for Fiscal Year 2017 and for each fiscal | ||
year thereafter. The Business Enterprise Council shall report | ||
the information in items (i), (ii), (iii), and (iv) of this | ||
subsection beginning in September of 2016. The Business | ||
Enterprise Council may collect the data needed to make its | ||
report from the Illinois Community College Board. | ||
(6) The status of the utilization of services shall be | ||
discussed at each of the regularly scheduled Business | ||
Enterprise Council meetings. Time shall be allotted for the | ||
Council to receive, review, and discuss the progress of the | ||
use of service firms owned by minorities, women, and persons | ||
with disabilities by each State agency and public institution | ||
of higher education; and any evidence regarding past or | ||
present racial, ethnic, or gender-based discrimination which | ||
directly impacts a State agency or public institution of | ||
higher education contracting with such firms. If after | ||
reviewing such evidence the Council finds that there is or has | ||
been such discrimination against a specific group, race or |
sex, the Council shall establish sheltered markets or adjust | ||
existing sheltered markets tailored to address the Council's | ||
specific findings for the divisions of work specified in | ||
paragraphs (a), (b), and (c) of subsection (1) of this | ||
Section.
| ||
(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20; | ||
101-657, Article 5, Section 5-10, eff. 7-1-21 (See Section 25 | ||
of P.A. 102-29 for effective date of P.A. 101-657, Article 5, | ||
Section 5-10); 102-29, eff. 6-25-21.) | ||
(Text of Section after amendment by P.A. 101-657, Article | ||
40, Section 40-130 ) | ||
(Section scheduled to be repealed on June 30, 2024) | ||
Sec. 4f. Award of State contracts. | ||
(1) It is hereby declared to be the public policy of the | ||
State of Illinois to promote and encourage each State agency | ||
and public institution of higher education to use businesses | ||
owned by minorities, women, and persons with disabilities in | ||
the area of goods and services, including, but not limited to, | ||
insurance services, investment management services, | ||
information technology services, accounting services, | ||
architectural and engineering services, and legal services. | ||
Furthermore, each State agency and public institution of | ||
higher education shall utilize such firms to the greatest | ||
extent feasible within the bounds of financial and fiduciary | ||
prudence, and take affirmative steps to remove any barriers to |
the full participation of such firms in the procurement and | ||
contracting opportunities afforded. | ||
(a) When a State agency or public institution of | ||
higher education, other than a community college, awards a | ||
contract for insurance services, for each State agency or | ||
public institution of higher education, it shall be the | ||
aspirational goal to use insurance brokers owned by | ||
minorities, women, and persons with disabilities as | ||
defined by this Act, for not less than 20% of the total | ||
annual premiums or fees; provided that, contracts | ||
representing at least 11% of the total annual premiums or | ||
fees shall be awarded to businesses owned by minorities; | ||
contracts representing at least 7% of the total annual | ||
premiums or fees shall be awarded to women-owned | ||
businesses; and contracts representing at least 2% of the | ||
total annual premiums or fees shall be awarded to | ||
businesses owned by persons with disabilities. | ||
(b) When a State agency or public institution of | ||
higher education, other than a community college, awards a | ||
contract for investment services, for each State agency or | ||
public institution of higher education, it shall be the | ||
aspirational goal to use emerging investment managers | ||
owned by minorities, women, and persons with disabilities | ||
as defined by this Act, for not less than 20% of the total | ||
funds under management; provided that, contracts | ||
representing at least 11% of the total funds under |
management shall be awarded to businesses owned by | ||
minorities; contracts representing at least 7% of the | ||
total funds under management shall be awarded to | ||
women-owned businesses; and contracts representing at | ||
least 2% of the total funds under management shall be | ||
awarded to businesses owned by persons with disabilities. | ||
Furthermore, it is the aspirational goal that not less | ||
than 20% of the direct asset managers of the State funds be | ||
minorities, women, and persons with disabilities. | ||
(c) When a State agency or public institution of | ||
higher education, other than a community college, awards | ||
contracts for information technology services, accounting | ||
services, architectural and engineering services, and | ||
legal services, for each State agency and public | ||
institution of higher education, it shall be the | ||
aspirational goal to use such firms owned by minorities, | ||
women, and persons with disabilities as defined by this | ||
Act and lawyers who are minorities, women, and persons | ||
with disabilities as defined by this Act, for not less | ||
than 20% of the total dollar amount of State contracts; | ||
provided that, contracts representing at least 11% of the | ||
total dollar amount of State contracts shall be awarded to | ||
businesses owned by minorities or minority lawyers; | ||
contracts representing at least 7% of the total dollar | ||
amount of State contracts shall be awarded to women-owned | ||
businesses or women who are lawyers; and contracts |
representing at least 2% of the total dollar amount of | ||
State contracts shall be awarded to businesses owned by | ||
persons with disabilities or persons with disabilities who | ||
are lawyers. | ||
(d) When a community college awards a contract for | ||
insurance services, investment services, information | ||
technology services, accounting services, architectural | ||
and engineering services, and legal services, it shall be | ||
the aspirational goal of each community college to use | ||
businesses owned by minorities, women, and persons with | ||
disabilities as defined in this Act for not less than 20% | ||
of the total amount spent on contracts for these services | ||
collectively; provided that, contracts representing at | ||
least 11% of the total amount spent on contracts for these | ||
services shall be awarded to businesses owned by | ||
minorities; contracts representing at least 7% of the | ||
total amount spent on contracts for these services shall | ||
be awarded to women-owned businesses; and contracts | ||
representing at least 2% of the total amount spent on | ||
contracts for these services shall be awarded to | ||
businesses owned by persons with disabilities. When a | ||
community college awards contracts for investment | ||
services, contracts awarded to investment managers who are | ||
not emerging investment managers as defined in this Act | ||
shall not be considered businesses owned by minorities, | ||
women, or persons with disabilities for the purposes of |
this Section. | ||
(2) As used in this Section: | ||
"Accounting services" means the measurement, | ||
processing and communication of financial information | ||
about economic entities including, but is not limited to, | ||
financial accounting, management accounting, auditing, | ||
cost containment and auditing services, taxation and | ||
accounting information systems. | ||
"Architectural and engineering services" means | ||
professional services of an architectural or engineering | ||
nature, or incidental services, that members of the | ||
architectural and engineering professions, and individuals | ||
in their employ, may logically or justifiably perform, | ||
including studies, investigations, surveying and mapping, | ||
tests, evaluations, consultations, comprehensive | ||
planning, program management, conceptual designs, plans | ||
and specifications, value engineering, construction phase | ||
services, soils engineering, drawing reviews, preparation | ||
of operating and maintenance manuals, and other related | ||
services. | ||
"Emerging investment manager" means an investment | ||
manager or claims consultant having assets under | ||
management below $10 billion or otherwise adjudicating | ||
claims. | ||
"Information technology services" means, but is not | ||
limited to, specialized technology-oriented solutions by |
combining the processes and functions of software, | ||
hardware, networks, telecommunications, web designers, | ||
cloud developing resellers, and electronics. | ||
"Insurance broker" means an insurance brokerage firm, | ||
claims administrator, or both, that procures, places all | ||
lines of insurance, or administers claims with annual | ||
premiums or fees of at least $5,000,000 but not more than | ||
$10,000,000. | ||
"Legal services" means work performed by a lawyer | ||
including, but not limited to, contracts in anticipation | ||
of litigation, enforcement actions, or investigations. | ||
(3) Each State agency and public institution of higher | ||
education shall adopt policies that identify its plan and | ||
implementation procedures for increasing the use of service | ||
firms owned by minorities, women, and persons with | ||
disabilities. All plan and implementation procedures for | ||
increasing the use of service firms owned by minorities, | ||
women, and persons with disabilities must be submitted to and | ||
approved by the Commission on Equity and Inclusion on an | ||
annual basis. | ||
(4) Except as provided in subsection (5), the Council | ||
shall file no later than March 1 of each year an annual report | ||
to the Governor, the Bureau on Apprenticeship Programs and | ||
Clean Energy Jobs , and the General Assembly. The report filed | ||
with the General Assembly shall be filed as required in | ||
Section 3.1 of the General Assembly Organization Act. This |
report shall: (i) identify the service firms used by each | ||
State agency and public institution of higher education, (ii) | ||
identify the actions it has undertaken to increase the use of | ||
service firms owned by minorities, women, and persons with | ||
disabilities, including encouraging non-minority-owned firms | ||
to use other service firms owned by minorities, women, and | ||
persons with disabilities as subcontractors when the | ||
opportunities arise, (iii) state any recommendations made by | ||
the Council to each State agency and public institution of | ||
higher education to increase participation by the use of | ||
service firms owned by minorities, women, and persons with | ||
disabilities, and (iv) include the following: | ||
(A) For insurance services: the names of the insurance | ||
brokers or claims consultants used, the total of risk | ||
managed by each State agency and public institution of | ||
higher education by insurance brokers, the total | ||
commissions, fees paid, or both, the lines or insurance | ||
policies placed, and the amount of premiums placed; and | ||
the percentage of the risk managed by insurance brokers, | ||
the percentage of total commission, fees paid, or both, | ||
the lines or insurance policies placed, and the amount of | ||
premiums placed with each by the insurance brokers owned | ||
by minorities, women, and persons with disabilities by | ||
each State agency and public institution of higher | ||
education. | ||
(B) For investment management services: the names of |
the investment managers used, the total funds under | ||
management of investment managers; the total commissions, | ||
fees paid, or both; the total and percentage of funds | ||
under management of emerging investment managers owned by | ||
minorities, women, and persons with disabilities, | ||
including the total and percentage of total commissions, | ||
fees paid, or both by each State agency and public | ||
institution of higher education. | ||
(C) The names of service firms, the percentage and | ||
total dollar amount paid for professional services by | ||
category by each State agency and public institution of | ||
higher education. | ||
(D) The names of service firms, the percentage and | ||
total dollar amount paid for services by category to firms | ||
owned by minorities, women, and persons with disabilities | ||
by each State agency and public institution of higher | ||
education. | ||
(E) The total number of contracts awarded for services | ||
by category and the total number of contracts awarded to | ||
firms owned by minorities, women, and persons with | ||
disabilities by each State agency and public institution | ||
of higher education. | ||
(5) For community college districts, the Business | ||
Enterprise Council shall only report the following information | ||
for each community college district: (i) the name of the | ||
community colleges in the district, (ii) the name and contact |
information of a person at each community college appointed to | ||
be the single point of contact for vendors owned by | ||
minorities, women, or persons with disabilities, (iii) the | ||
policy of the community college district concerning certified | ||
vendors, (iv) the certifications recognized by the community | ||
college district for determining whether a business is owned | ||
or controlled by a minority, woman, or person with a | ||
disability, (v) outreach efforts conducted by the community | ||
college district to increase the use of certified vendors, | ||
(vi) the total expenditures by the community college district | ||
in the prior fiscal year in the divisions of work specified in | ||
paragraphs (a), (b), and (c) of subsection (1) of this Section | ||
and the amount paid to certified vendors in those divisions of | ||
work, and (vii) the total number of contracts entered into for | ||
the divisions of work specified in paragraphs (a), (b), and | ||
(c) of subsection (1) of this Section and the total number of | ||
contracts awarded to certified vendors providing these | ||
services to the community college district. The Business | ||
Enterprise Council shall not make any utilization reports | ||
under this Act for community college districts for Fiscal Year | ||
2015 and Fiscal Year 2016, but shall make the report required | ||
by this subsection for Fiscal Year 2017 and for each fiscal | ||
year thereafter. The Business Enterprise Council shall report | ||
the information in items (i), (ii), (iii), and (iv) of this | ||
subsection beginning in September of 2016. The Business | ||
Enterprise Council may collect the data needed to make its |
report from the Illinois Community College Board. | ||
(6) The status of the utilization of services shall be | ||
discussed at each of the regularly scheduled Business | ||
Enterprise Council meetings. Time shall be allotted for the | ||
Council to receive, review, and discuss the progress of the | ||
use of service firms owned by minorities, women, and persons | ||
with disabilities by each State agency and public institution | ||
of higher education; and any evidence regarding past or | ||
present racial, ethnic, or gender-based discrimination which | ||
directly impacts a State agency or public institution of | ||
higher education contracting with such firms. If after | ||
reviewing such evidence the Council finds that there is or has | ||
been such discrimination against a specific group, race or | ||
sex, the Council shall establish sheltered markets or adjust | ||
existing sheltered markets tailored to address the Council's | ||
specific findings for the divisions of work specified in | ||
paragraphs (a), (b), and (c) of subsection (1) of this | ||
Section.
| ||
(Source: P.A. 101-170, eff. 1-1-20; 101-657, Article 5, | ||
Section 5-10, eff. 7-1-21 (See Section 25 of P.A. 102-29 for | ||
effective date of P.A. 101-657, Article 5, Section 5-10); | ||
101-657, Article 40, Section 40-130, eff. 1-1-22; 102-29, eff. | ||
6-25-21.) | ||
(30 ILCS 575/7) (from Ch. 127, par. 132.607) | ||
(Text of Section before amendment by P.A. 101-657 ) |
(Section scheduled to be repealed on June 30, 2024) | ||
Sec. 7. Exemptions; waivers; publication of data. | ||
(1) Individual contract exemptions.
The Council, at the | ||
written request of the affected agency,
public institution of | ||
higher education, or recipient of a grant or loan of State | ||
funds of $250,000 or more complying with Section 45 of the | ||
State Finance Act, may permit an individual contract or | ||
contract package,
(related contracts being bid or awarded | ||
simultaneously for the same project
or improvements) be made | ||
wholly or partially exempt from State contracting
goals for | ||
businesses owned by
minorities, women, and persons with | ||
disabilities prior to the advertisement
for bids or | ||
solicitation of proposals whenever there has been a
| ||
determination, reduced to writing and based on the best | ||
information
available at the time of the determination, that | ||
there is an insufficient
number of businesses owned by | ||
minorities, women, and persons with disabilities to ensure | ||
adequate
competition and an expectation of reasonable prices | ||
on bids or proposals
solicited for the individual contract or | ||
contract package in question. Any such exemptions shall be | ||
given by
the Council to the Bureau on Apprenticeship Programs | ||
and Clean Energy Jobs . | ||
(a) Written request for contract exemption. A written | ||
request for an individual contract exemption must include, | ||
but is not limited to, the following: | ||
(i) a list of eligible businesses owned by |
minorities, women, and persons with disabilities; | ||
(ii) a clear demonstration that the number of | ||
eligible businesses identified in subparagraph (i) | ||
above is insufficient to ensure adequate competition; | ||
(iii) the difference in cost between the contract | ||
proposals being offered by businesses owned by | ||
minorities, women, and persons with disabilities and | ||
the agency or public institution of higher education's | ||
expectations of reasonable prices on bids or proposals | ||
within that class; and | ||
(iv) a list of eligible businesses owned by | ||
minorities, women, and persons with
disabilities that | ||
the contractor has used in the current and prior | ||
fiscal years. | ||
(b) Determination. The Council's determination | ||
concerning an individual contract exemption must consider, | ||
at a minimum, the following: | ||
(i) the justification for the requested exemption, | ||
including whether diligent efforts were undertaken to | ||
identify and solicit eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) the total number of exemptions granted to the | ||
affected agency, public institution of higher | ||
education, or recipient of a grant or loan of State | ||
funds of $250,000 or more complying with Section 45 of | ||
the State Finance Act that have been granted by the |
Council in the current and prior fiscal years; and | ||
(iii) the percentage of contracts awarded by the | ||
agency or public institution of higher education to | ||
eligible businesses owned by minorities, women, and | ||
persons with disabilities in the current and prior | ||
fiscal years. | ||
(2) Class exemptions. | ||
(a) Creation. The Council, at the written request of | ||
the affected agency or public institution of higher | ||
education, may permit an entire
class of
contracts be made | ||
exempt from State
contracting goals for businesses owned | ||
by minorities, women, and persons
with disabilities | ||
whenever there has been a determination, reduced to
| ||
writing and based on the best information available at the | ||
time of the
determination, that there is an insufficient | ||
number of qualified businesses owned by minorities, women, | ||
and persons with
disabilities to ensure adequate | ||
competition and an
expectation of reasonable prices on | ||
bids or proposals within that class. Any such exemption | ||
shall be given by
the Council to the Bureau on | ||
Apprenticeship Programs and Clean Energy Jobs . | ||
(a-1) Written request for class exemption. A written | ||
request for a class exemption must include, but is not | ||
limited to, the following: | ||
(i) a list of eligible businesses owned by | ||
minorities, women, and persons with disabilities; |
(ii) a clear demonstration that the number of | ||
eligible businesses identified in subparagraph (i) | ||
above is insufficient to ensure adequate competition; | ||
(iii) the difference in cost between the contract | ||
proposals being offered by eligible businesses owned | ||
by minorities, women, and persons with disabilities | ||
and the agency or public institution of higher | ||
education's expectations of reasonable prices on bids | ||
or proposals within that class; and | ||
(iv) the number of class exemptions the affected | ||
agency or public institution
of higher education | ||
requested in the current and prior fiscal years. | ||
(a-2) Determination. The Council's determination | ||
concerning class exemptions must consider, at a minimum, | ||
the following: | ||
(i) the justification for the requested exemption, | ||
including whether diligent efforts were undertaken to | ||
identify and solicit eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) the total number of class exemptions granted | ||
to the requesting agency or public institution of | ||
higher education that have been granted by the Council | ||
in the current and prior fiscal years; and | ||
(iii) the percentage of contracts awarded by the | ||
agency or public institution of higher education to | ||
eligible businesses owned by minorities, women, and |
persons with disabilities the current and prior fiscal | ||
years. | ||
(b) Limitation. Any such class exemption shall not be | ||
permitted for a
period of more than one year at a time. | ||
(3) Waivers. Where a particular contract requires a | ||
contractor to meet
a goal established pursuant to this Act, | ||
the contractor shall have the right
to request a waiver from | ||
such requirements. The Council shall grant the
waiver where | ||
the contractor demonstrates that there has been made a good
| ||
faith effort to comply with the goals for
participation by | ||
businesses owned by minorities, women, and persons with
| ||
disabilities. Any such waiver shall also be
transmitted in | ||
writing to the Bureau on Apprenticeship Programs and Clean | ||
Energy Jobs . | ||
(a) Request for waiver. A contractor's request for a | ||
waiver under this subsection (3) must include, but is not | ||
limited to, the following, if available: | ||
(i) a list of eligible businesses owned by | ||
minorities, women, and persons with disabilities that | ||
pertain to the class of contracts in the requested | ||
waiver; | ||
(ii) a clear demonstration that the number of | ||
eligible businesses identified in subparagraph (i) | ||
above is insufficient to ensure competition; | ||
(iii) the difference in cost between the contract | ||
proposals being offered by businesses owned by |
minorities, women, and persons with disabilities and | ||
the agency or the public institution of higher | ||
education's expectations of reasonable prices on bids | ||
or proposals within that class; and | ||
(iv) a list of businesses owned by minorities, | ||
women, and persons with disabilities that the | ||
contractor has used in the current and prior fiscal | ||
years. | ||
(b) Determination. The Council's determination | ||
concerning waivers must include following: | ||
(i) the justification for the requested waiver, | ||
including whether the requesting contractor made a | ||
good faith effort to identify and solicit eligible | ||
businesses owned by minorities, women, and persons | ||
with disabilities; | ||
(ii) the total number of waivers the contractor | ||
has been granted by the Council in the current and | ||
prior fiscal years; | ||
(iii) the percentage of contracts awarded by the | ||
agency or public institution of higher education to | ||
eligible businesses owned by minorities, women, and | ||
persons with disabilities in the current and prior | ||
fiscal years; and | ||
(iv) the contractor's use of businesses owned by | ||
minorities, women, and persons with disabilities in | ||
the current and prior fiscal years. |
(3.5) (Blank). | ||
(4) Conflict with other laws. In the event that any State | ||
contract, which
otherwise would be subject to the provisions | ||
of this Act, is or becomes
subject to federal laws or | ||
regulations which conflict with the provisions
of this Act or | ||
actions of the State taken pursuant hereto, the provisions
of | ||
the federal laws or regulations shall apply and the contract | ||
shall be
interpreted and enforced accordingly. | ||
(5) Each chief procurement officer, as defined in the | ||
Illinois Procurement Code, shall maintain on his or her | ||
official Internet website a database of the following: (i) | ||
waivers granted under this Section with respect to contracts | ||
under his or her jurisdiction; (ii) a State agency or public | ||
institution of higher education's written request for an | ||
exemption of an individual contract or an entire class of | ||
contracts; and (iii) the Council's written determination | ||
granting or denying a request for an exemption of an | ||
individual contract or an entire class of contracts. The | ||
database, which shall be updated periodically as necessary, | ||
shall be searchable by contractor name and by contracting | ||
State agency. | ||
(6) Each chief procurement officer, as defined by the | ||
Illinois Procurement Code, shall maintain on its website a | ||
list of all firms that have been prohibited from bidding, | ||
offering, or entering into a contract with the State of | ||
Illinois as a result of violations of this Act. |
Each public notice required by law of the award of a State | ||
contract shall include for each bid or offer submitted for | ||
that contract the following: (i) the bidder's or offeror's | ||
name, (ii) the bid amount, (iii) the name or names of the | ||
certified firms identified in the bidder's or offeror's | ||
submitted utilization plan, and (iv) the bid's amount and | ||
percentage of the contract awarded to businesses owned by | ||
minorities, women, and persons with disabilities identified in | ||
the utilization plan. | ||
(Source: P.A. 100-391, eff. 8-25-17; 101-170, eff. 1-1-20; | ||
101-601, eff. 1-1-20; 102-29, eff. 6-25-21.) | ||
(Text of Section after amendment by P.A. 101-657 ) | ||
(Section scheduled to be repealed on June 30, 2024) | ||
Sec. 7. Exemptions; waivers; publication of data. | ||
(1) Individual contract exemptions.
The Council, at the | ||
written request of the affected agency,
public institution of | ||
higher education, or recipient of a grant or loan of State | ||
funds of $250,000 or more complying with Section 45 of the | ||
State Finance Act, may permit an individual contract or | ||
contract package,
(related contracts being bid or awarded | ||
simultaneously for the same project
or improvements) be made | ||
wholly or partially exempt from State contracting
goals for | ||
businesses owned by
minorities, women, and persons with | ||
disabilities prior to the advertisement
for bids or | ||
solicitation of proposals whenever there has been a
|
determination, reduced to writing and based on the best | ||
information
available at the time of the determination, that | ||
there is an insufficient
number of businesses owned by | ||
minorities, women, and persons with disabilities to ensure | ||
adequate
competition and an expectation of reasonable prices | ||
on bids or proposals
solicited for the individual contract or | ||
contract package in question. Any such exemptions shall be | ||
given by
the Council to the Bureau on Apprenticeship Programs | ||
and Clean Energy Jobs . | ||
(a) Written request for contract exemption. A written | ||
request for an individual contract exemption must include, | ||
but is not limited to, the following: | ||
(i) a list of eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) a clear demonstration that the number of | ||
eligible businesses identified in subparagraph (i) | ||
above is insufficient to ensure adequate competition; | ||
(iii) the difference in cost between the contract | ||
proposals being offered by businesses owned by | ||
minorities, women, and persons with disabilities and | ||
the agency or public institution of higher education's | ||
expectations of reasonable prices on bids or proposals | ||
within that class; and | ||
(iv) a list of eligible businesses owned by | ||
minorities, women, and persons with
disabilities that | ||
the contractor has used in the current and prior |
fiscal years. | ||
(b) Determination. The Council's determination | ||
concerning an individual contract exemption must consider, | ||
at a minimum, the following: | ||
(i) the justification for the requested exemption, | ||
including whether diligent efforts were undertaken to | ||
identify and solicit eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) the total number of exemptions granted to the | ||
affected agency, public institution of higher | ||
education, or recipient of a grant or loan of State | ||
funds of $250,000 or more complying with Section 45 of | ||
the State Finance Act that have been granted by the | ||
Council in the current and prior fiscal years; and | ||
(iii) the percentage of contracts awarded by the | ||
agency or public institution of higher education to | ||
eligible businesses owned by minorities, women, and | ||
persons with disabilities in the current and prior | ||
fiscal years. | ||
(2) Class exemptions. | ||
(a) Creation. The Council, at the written request of | ||
the affected agency or public institution of higher | ||
education, may permit an entire
class of
contracts be made | ||
exempt from State
contracting goals for businesses owned | ||
by minorities, women, and persons
with disabilities | ||
whenever there has been a determination, reduced to
|
writing and based on the best information available at the | ||
time of the
determination, that there is an insufficient | ||
number of qualified businesses owned by minorities, women, | ||
and persons with
disabilities to ensure adequate | ||
competition and an
expectation of reasonable prices on | ||
bids or proposals within that class. Any such exemption | ||
shall be given by
the Council to the Bureau on | ||
Apprenticeship Programs and Clean Energy Jobs . | ||
(a-1) Written request for class exemption. A written | ||
request for a class exemption must include, but is not | ||
limited to, the following: | ||
(i) a list of eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) a clear demonstration that the number of | ||
eligible businesses identified in subparagraph (i) | ||
above is insufficient to ensure adequate competition; | ||
(iii) the difference in cost between the contract | ||
proposals being offered by eligible businesses owned | ||
by minorities, women, and persons with disabilities | ||
and the agency or public institution of higher | ||
education's expectations of reasonable prices on bids | ||
or proposals within that class; and | ||
(iv) the number of class exemptions the affected | ||
agency or public institution
of higher education | ||
requested in the current and prior fiscal years. | ||
(a-2) Determination. The Council's determination |
concerning class exemptions must consider, at a minimum, | ||
the following: | ||
(i) the justification for the requested exemption, | ||
including whether diligent efforts were undertaken to | ||
identify and solicit eligible businesses owned by | ||
minorities, women, and persons with disabilities; | ||
(ii) the total number of class exemptions granted | ||
to the requesting agency or public institution of | ||
higher education that have been granted by the Council | ||
in the current and prior fiscal years; and | ||
(iii) the percentage of contracts awarded by the | ||
agency or public institution of higher education to | ||
eligible businesses owned by minorities, women, and | ||
persons with disabilities the current and prior fiscal | ||
years. | ||
(b) Limitation. Any such class exemption shall not be | ||
permitted for a
period of more than one year at a time. | ||
(3) Waivers. Where a particular contract requires a | ||
contractor to meet
a goal established pursuant to this Act, | ||
the contractor shall have the right
to request a waiver from | ||
such requirements prior to the contract award. The Council | ||
shall grant the waiver when the contractor demonstrates that | ||
there has been made a good faith effort to comply with the | ||
goals for participation by businesses owned by minorities, | ||
women, and persons with disabilities. Any such waiver shall | ||
also be
transmitted in writing to the Bureau on Apprenticeship |
Programs and Clean Energy Jobs . | ||
(a) Request for waiver. A contractor's request for a | ||
waiver under this subsection (3) must include, but is not | ||
limited to, the following, if available: | ||
(i) a list of eligible businesses owned by | ||
minorities, women, and persons with disabilities that | ||
pertain to the scope of work of the contract. Eligible | ||
businesses are only eligible if the business is | ||
certified for the products or work advertised in the | ||
solicitation; | ||
(ii) (blank); | ||
(iia) a clear demonstration that the contractor | ||
selected portions of the work to be performed by | ||
eligible businesses owned by minorities, women, and | ||
persons with disabilities, solicited through all | ||
reasonable and available means eligible businesses, | ||
and negotiated in good faith with interested eligible | ||
businesses; | ||
(iib) documentation demonstrating that businesses | ||
owned by minorities, women, and persons with | ||
disabilities are not rejected as being unqualified | ||
without sound reasons based on a thorough | ||
investigation of their capabilities; | ||
(iii) documentation demonstrating that the | ||
contract proposals being offered by businesses owned | ||
by minorities, women, and persons with disabilities |
are excessive or unreasonable; and | ||
(iv) a list of businesses owned by minorities, | ||
women, and persons with disabilities that the | ||
contractor has used in the current and prior fiscal | ||
years. | ||
(b) Determination. The Council's determination | ||
concerning waivers must include following: | ||
(i) the justification for the requested waiver, | ||
including whether the requesting contractor made a | ||
good faith effort to identify and solicit eligible | ||
businesses owned by minorities, women, and persons | ||
with disabilities; | ||
(ii) the total number of waivers the contractor | ||
has been granted by the Council in the current and | ||
prior fiscal years; | ||
(iii) (blank); and | ||
(iv) the contractor's use of businesses owned by | ||
minorities, women, and persons with disabilities in | ||
the current and prior fiscal years. | ||
(3.5) (Blank). | ||
(4) Conflict with other laws. In the event that any State | ||
contract, which
otherwise would be subject to the provisions | ||
of this Act, is or becomes
subject to federal laws or | ||
regulations which conflict with the provisions
of this Act or | ||
actions of the State taken pursuant hereto, the provisions
of | ||
the federal laws or regulations shall apply and the contract |
shall be
interpreted and enforced accordingly. | ||
(5) Each chief procurement officer, as defined in the | ||
Illinois Procurement Code, shall maintain on his or her | ||
official Internet website a database of the following: (i) | ||
waivers granted under this Section with respect to contracts | ||
under his or her jurisdiction; (ii) a State agency or public | ||
institution of higher education's written request for an | ||
exemption of an individual contract or an entire class of | ||
contracts; and (iii) the Council's written determination | ||
granting or denying a request for an exemption of an | ||
individual contract or an entire class of contracts. The | ||
database, which shall be updated periodically as necessary, | ||
shall be searchable by contractor name and by contracting | ||
State agency. | ||
(6) Each chief procurement officer, as defined by the | ||
Illinois Procurement Code, shall maintain on its website a | ||
list of all firms that have been prohibited from bidding, | ||
offering, or entering into a contract with the State of | ||
Illinois as a result of violations of this Act. | ||
Each public notice required by law of the award of a State | ||
contract shall include for each bid or offer submitted for | ||
that contract the following: (i) the bidder's or offeror's | ||
name, (ii) the bid amount, (iii) the name or names of the | ||
certified firms identified in the bidder's or offeror's | ||
submitted utilization plan, and (iv) the bid's amount and | ||
percentage of the contract awarded to businesses owned by |
minorities, women, and persons with disabilities identified in | ||
the utilization plan. | ||
(Source: P.A. 101-170, eff. 1-1-20; 101-601, eff. 1-1-20; | ||
101-657, eff. 1-1-22; 102-29, eff. 6-25-21.) | ||
Section 90-39. The Property Tax Code is amended by | ||
changing Sections 1-130, 10-5, and 10-610 as follows:
| ||
(35 ILCS 200/1-130)
| ||
Sec. 1-130. Property; real property; real estate; land; | ||
tract; lot. | ||
(a) The land
itself, with all things contained therein, | ||
and also all buildings, structures
and improvements, and other | ||
permanent fixtures thereon, including all oil, gas,
coal, and | ||
other minerals in the land and the right to remove oil, gas and | ||
other
minerals, excluding coal, from the land, and all rights | ||
and privileges
belonging or pertaining thereto, except where | ||
otherwise specified by this Code.
Not included therein are | ||
low-income housing tax credits authorized by
Section
42 of the | ||
Internal Revenue Code, 26 U.S.C. 42.
| ||
(b) Notwithstanding any other provision of law, mobile | ||
homes and manufactured homes that (i) are located outside of | ||
mobile home parks and (ii) are taxed under the Mobile Home | ||
Local Services Tax Act on the effective date of this | ||
amendatory Act of the 96th General Assembly shall continue to | ||
be taxed under the Mobile Home Local Services Tax Act and shall |
not be assessed and taxed as real property until the home is | ||
sold or transferred or until the home is relocated to a | ||
different parcel of land outside of a mobile home park. If a | ||
mobile home or manufactured home described in this subsection | ||
(b) is sold, transferred, or relocated to a different parcel | ||
of land outside of a mobile home park, then the home shall be | ||
assessed and taxed as real property whether or not that mobile | ||
home or manufactured home is affixed to a permanent | ||
foundation, as defined in Section 5-5 of the Conveyance and | ||
Encumbrance of Manufactured Homes as Real Property and | ||
Severance Act, or installed on a permanent foundation, and | ||
whether or not such mobile home or manufactured home is real | ||
property as defined in Section 5-35 of the Conveyance and | ||
Encumbrance of Manufactured Homes as Real Property and | ||
Severance Act. Mobile homes and manufactured homes that are | ||
located outside of mobile home parks and assessed and taxed as | ||
real property on the effective date of this amendatory Act of | ||
the 96th General Assembly shall continue to be assessed and | ||
taxed as real property whether or not those mobile homes or | ||
manufactured homes are affixed to a permanent foundation as | ||
defined in the Conveyance and Encumbrance of Manufactured | ||
Homes as Real Property and Severance Act or installed on | ||
permanent foundations and whether or not those mobile homes or | ||
manufactured homes are real property as defined in the | ||
Conveyance and Encumbrance of Manufactured Homes as Real | ||
Property and Severance Act. If a mobile or manufactured home |
that is located outside of a mobile home park is relocated to a | ||
mobile home park, it must be considered chattel and must be | ||
taxed according to the Mobile Home Local Services Tax Act. The | ||
owner of a mobile home or manufactured home that is located | ||
outside of a mobile home park may file a request with the chief | ||
county assessment officer that the home be taxed as real | ||
property. | ||
(c) Mobile homes and manufactured homes that are located | ||
in mobile home parks must be taxed according to the Mobile Home | ||
Local Services Tax Act. | ||
(d) If the provisions of this Section conflict with the | ||
Illinois Manufactured Housing and Mobile Home Safety Act, the | ||
Mobile Home Local Services Tax Act, the Mobile Home Park Act, | ||
or any other provision of law with respect to the taxation of | ||
mobile homes or manufactured homes located outside of mobile | ||
home parks, the provisions of this Section shall control. | ||
(e) Spent fuel pools and dry cask storage systems in which | ||
nuclear fuel is stored and is pending further or final | ||
disposal from a nuclear power plant that was decommissioned | ||
before January 1, 2021 shall be considered real property and | ||
be assessable. The chief county assessment officer shall | ||
assess such property based on a national evaluation of the | ||
effective value per pound of spent nuclear fuel, calculated by | ||
examining assessments or PILOT agreements and documented | ||
pounds of spent nuclear fuel, at nuclear power plants where | ||
such property is similarly considered real property. |
(Source: P.A. 98-749, eff. 7-16-14.)
| ||
(35 ILCS 200/10-5)
| ||
Sec. 10-5. Solar energy systems; definitions. It is the | ||
policy of this
State that the use of solar energy systems | ||
should be encouraged because they
conserve nonrenewable | ||
resources, reduce pollution and promote the health and
| ||
well-being of the people of this State, and should be valued in | ||
relation to
these benefits.
| ||
(a) "Solar energy" means radiant energy received from
the | ||
sun at wave lengths suitable for heat transfer, photosynthetic | ||
use,
or photovoltaic use.
| ||
(b) "Solar collector" means
| ||
(1) An assembly, structure, or design, including | ||
passive elements,
used for gathering, concentrating, or | ||
absorbing direct and indirect
solar energy, specially | ||
designed for holding a substantial amount of
useful | ||
thermal energy and to transfer that energy to a gas, | ||
solid, or
liquid or to use that energy directly; or
| ||
(2) A mechanism that absorbs solar energy and converts | ||
it into
electricity; or
| ||
(3) A mechanism or process used for gathering solar | ||
energy through
wind or thermal gradients; or
| ||
(4) A component used to transfer thermal energy to a | ||
gas, solid, or
liquid, or to convert it into electricity.
| ||
(c) "Solar storage mechanism" means equipment or elements |
(such as
piping and transfer mechanisms, containers, heat | ||
exchangers, or controls
thereof, and gases, solids, liquids, | ||
or combinations thereof) that are
utilized for storing solar | ||
energy, gathered by a solar collector, for
subsequent use.
| ||
(d) "Solar energy system" means
| ||
(1)(A) A complete assembly, structure, or design of | ||
solar
collector, or a solar storage mechanism, which uses | ||
solar energy for
generating electricity that is primarily
| ||
consumed on the property on which the solar energy system
| ||
resides, or for heating or cooling gases, solids, liquids,
| ||
or other materials for the primary benefit of the property
| ||
on which the solar energy system resides;
| ||
(B) The design, materials, or elements of a system and | ||
its
maintenance, operation, and labor components, and the | ||
necessary
components, if any, of supplemental conventional | ||
energy systems designed
or constructed to interface with a | ||
solar energy system; and
| ||
(C) Any legal, financial, or institutional orders, | ||
certificates, or
mechanisms, including easements, leases, | ||
and agreements, required to
ensure continued access to | ||
solar energy, its source, or its use in a
solar energy | ||
system, and including monitoring and educational elements
| ||
of a demonstration project ; or .
| ||
(D) Photovoltaic electricity generation systems | ||
subject to power purchase agreements or leases for solar | ||
energy between a third-party owner, an operator, or both, |
and an end user of electricity, where such systems are | ||
located on the end user of electricity's side of the | ||
electric meter and which primarily are used to offset the | ||
electricity load of the end user behind whose electric | ||
meter the system is connected. A system primarily is used | ||
to offset the electricity load of the end user of | ||
electricity if the system is estimated to produce 110% or | ||
fewer kilowatt-hours of electricity than consumed by the | ||
end user of electricity at such meter in the last 12 full | ||
months prior to the system being placed in service. | ||
(2) "Solar energy system" does not include :
| ||
(A) Distribution equipment that is equally usable | ||
in a conventional
energy system except for those | ||
components of the equipment that are
necessary for | ||
meeting the requirements of efficient solar energy | ||
utilization;
| ||
(B) Components of a solar energy system that serve | ||
structural,
insulating, protective, shading, | ||
aesthetic, or other non-solar energy
utilization | ||
purposes, as defined in the regulations of the | ||
Department
of Commerce and Economic Opportunity; or | ||
and
| ||
(C) A commercial solar energy system, as defined
| ||
by this Code, in counties with fewer than 3,000,000
| ||
inhabitants. | ||
(3) The solar energy system shall conform to the |
standards for those
systems established by regulation of | ||
the Department of Commerce
and Economic Opportunity.
| ||
(Source: P.A. 100-781, eff. 8-10-18.)
| ||
(35 ILCS 200/10-610) | ||
Sec. 10-610. Applicability. | ||
(a) The provisions of this Division apply for assessment | ||
years 2007 through 2035 2021 . | ||
(b) The provisions of this Division do not apply to wind | ||
energy devices that are owned by any person or entity that is | ||
otherwise exempt from taxation under the Property Tax Code.
| ||
(Source: P.A. 99-825, eff. 8-16-16.) | ||
Section 90-43. The School Code is amended by changing | ||
Section 10-22.11 as follows:
| ||
(105 ILCS 5/10-22.11) (from Ch. 122, par. 10-22.11)
| ||
Sec. 10-22.11. Lease of school property.
| ||
(a) To lease school
property to another school district, | ||
municipality or body politic and
corporate for a term of not to | ||
exceed 25 years, except as otherwise
provided in this Section, | ||
and upon such terms and conditions as may be
agreed if in the | ||
opinion of the school board use of such property will
not be | ||
needed by the district during the term of such lease; | ||
provided,
the school board shall not make or renew any lease | ||
for a term longer
than 10 years, nor alter the terms of any |
lease whose unexpired term may
exceed 10 years without the | ||
vote of 2/3 of the full membership of the board.
| ||
(b) Whenever the school board considers such action | ||
advisable and in
the best interests of the school district, to | ||
lease vacant school
property for a period not exceeding 51 | ||
years to a private not for profit
school organization for use | ||
in the care of persons with a mental disability who are | ||
trainable and educable in the district or in the
education of | ||
the
gifted children in the district. Before leasing such | ||
property to a
private not for profit school organization, the | ||
school board must adopt
a resolution for the leasing of such | ||
property, fixing the period and
price therefor, and order | ||
submitted to referendum at an election to be held
in the | ||
district as provided in the general election law, the question | ||
of
whether the lease should be entered into. Thereupon, the | ||
secretary
shall certify to the proper election authorities the | ||
proposition for
submission in accordance with the general | ||
election law. If the majority
of the voters voting upon the | ||
proposition vote in favor of the leasing,
the school board may | ||
proceed with the leasing. The proposition shall be
in | ||
substantially the following form:
| ||
-------------------------------------------------------------
| ||
Shall School District No. ..... of
| ||
..... County, Illinois lease to YES
| ||
..... (here name and identify the
| ||
lessee) the following described vacant ---------------------
|
school property (here describe the
| ||
property) for a term of ..... years NO
| ||
for the sum of ..... Dollars?
| ||
-------------------------------------------------------------
| ||
This paragraph (b) shall not be construed in such a manner | ||
as to
relieve the responsibility of the Board of Education as | ||
set out in
Article 14 of the School Code.
| ||
(c) To lease school buildings and land to suitable lessees | ||
for educational
purposes or for any other purpose which serves | ||
the interests of the
community, for a term not to exceed 25 | ||
years and upon such terms and
conditions as may be agreed upon | ||
by the parties, when such buildings and land are
declared by | ||
the board to be unnecessary or unsuitable or
inconvenient for | ||
a school or the uses of the district during the term of
the | ||
lease and when, in the opinion of the board, the best interests | ||
of
the residents of the school district will be enhanced by | ||
entering into
such a lease. Such leases shall include | ||
provisions for adequate
insurance for both liability and | ||
property damage or loss, and
reasonable charges for | ||
maintenance and depreciation of such buildings and
land.
| ||
(d) Notwithstanding any other provision to the contrary, a | ||
lease for vacant school property may exceed 25 years for | ||
renewable energy resources, as defined in Section 1-10 of the | ||
Illinois Power Agency Act. | ||
(Source: P.A. 99-143, eff. 7-27-15.)
|
Section 90-50. The Public Utilities Act is amended by | ||
changing Sections 5-117, 8-103B, 8-406, 9-241, 16-107.5, | ||
16-107.6, 16-108, 16-111.5, and 16-127 and by adding Sections | ||
4-604, 4-604.5, 4-605, 8-201.7, 8-201.8, 8-201.9, 8-201.10, | ||
8-218, 8-402.2, 8-512, 9-228, 9-229, 16-105.5, 16-105.6, | ||
16-105.7, 16-105.10, 16-105.17, 16-108.18, 16-108.19, | ||
16-108.20, 16-108.21, 16-108.25, 16-108.30, 16-111.10, 16-135, | ||
and 17-900 as follows: | ||
(220 ILCS 5/4-604 new) | ||
Sec. 4-604. Electric and gas public utilities ethical | ||
conduct and transparency. | ||
(a) It is the policy of this State that, as regulated, | ||
monopoly entities providing essential services, public | ||
utilities must adhere to the highest standards of ethical | ||
conduct. It is in the public interest to ensure ethical public | ||
utility conduct of the highest standards. It is therefore | ||
necessary for the public interest, safety, and welfare of the | ||
State and of public utility customers to develop rigorous | ||
ethical standards and scrutinize and limit public utility | ||
actions, expenditures, and contracting. It is also necessary | ||
to provide increased transparency to ensure ethical public | ||
utility conduct. | ||
(b) The standards set forth in this Section and the | ||
Illinois Administrative Code rules implementing this Section | ||
shall apply, to the extent practicable, to electric and gas |
public utilities and their energy-related affiliates. | ||
(c) Public Utility Ethics and Compliance Monitor. To | ||
ensure that public utilities meet the highest level of ethical | ||
standards, including, but not limited to, those standards | ||
established in this Section, the Commission shall, within 60 | ||
days after the effective date of this amendatory Act of the | ||
102nd General Assembly, establish an Ethics and Accountability | ||
Division at the Commission and shall create a new position of | ||
Public Utility Ethics and Compliance Monitor who reports to | ||
the Executive Director of the Commission. The role of the | ||
Public Utility Ethics and Compliance Monitor shall be to | ||
oversee electric and gas public utilities' compliance with the | ||
standards established in this Section, the Illinois | ||
Administrative Code, and any other regulatory or statutory | ||
obligation regarding standards of ethical conduct. The | ||
responsibilities of the Public Utility Ethics and Compliance | ||
Monitor shall include: | ||
(1) Hiring additional staff for the Ethics and | ||
Accountability Division, as deemed necessary to fulfill | ||
the duties imposed under this Section. | ||
(2) Overseeing each public utility's Chief Compliance | ||
and Ethics Officer's monitoring, auditing, investigation, | ||
enforcement, reporting, disciplinary activities, and any | ||
other actions required of the Chief Compliance and Ethics | ||
Officer pursuant to subsection (d) of this Section. If the | ||
Public Utility Ethics and Compliance Monitor finds a |
public utility has not complied with the standards set | ||
forth in this Section, or with administrative rules | ||
implementing this Section, the Public Utility Ethics and | ||
Compliance Monitor shall detail such deficiencies in a | ||
report to the Commission and shall include a | ||
recommendation for Commission action. | ||
(3) Documenting violations of the standards in this | ||
Section or in related Sections of the Illinois | ||
Administrative Code and, in coordination with the | ||
utility's Chief Compliance and Ethics Officer, ensuring | ||
each public utility administers appropriate internal | ||
disciplinary actions and provides transparent reporting to | ||
the Commission. If there are violations of the standards | ||
in this Section or in related Sections of the Illinois | ||
Administrative Code where the public utility does not take | ||
disciplinary action or where that action is not aligned | ||
with the recommendation of the Public Utility Ethics and | ||
Compliance Monitor, the Public Utility Ethics and | ||
Compliance Monitor shall, within 30 days, report the | ||
violation, the recommended disciplinary action, and the | ||
public utility's actual disciplinary action, to the | ||
Executive Director of the Commission. Such reports shall | ||
be included in the annual ethics report required by | ||
paragraph (5) of this subsection (c) and must describe the | ||
violation and related recommendations. | ||
(4) Reviewing and keeping informed regarding internal |
controls, code of ethical conduct, practices, procedures, | ||
and conduct of each public utility. The Public Utilities | ||
Ethics and Compliance Monitor may recommend any new | ||
internal controls, policies, practices or procedures the | ||
public utility should undertake in order to ensure | ||
compliance with this Section and with relevant Sections of | ||
the Illinois Administrative Code. | ||
(5) Publishing an annual ethics audit for each | ||
electric and gas public utility describing the public | ||
utility's internal controls, policies, practices, and | ||
procedures to comply with statutes, rules, court orders, | ||
or other applicable authority. The report shall include a | ||
record of any disciplinary actions taken related to | ||
unethical conduct as well as any recommendations made by | ||
the Public Utility Ethics and Compliance Monitor and the | ||
public utility's response to each recommendation. This | ||
report must be made public and the Commission may make | ||
necessary redactions. | ||
(6) Monitoring, auditing, and subpoenaing all records | ||
necessary for the Public Utility Ethics and Compliance | ||
Monitor to meet the responsibilities imposed under this | ||
Section and related rules, including, but not limited to, | ||
contracts with third party entities, accounting records, | ||
communication with public officials or their staff, | ||
lobbying activities, expenses on lobbyists and | ||
consultants, legal expenses, and internal compliance |
policies. | ||
(d)(1) No later than 60 days after the effective date of | ||
this amendatory Act of the 102nd General Assembly, each public | ||
utility shall establish a position of Chief Ethics and | ||
Compliance Officer if such position does not already exist | ||
within the utility or at an affiliated company, provided that | ||
if the position exists at an affiliated company such | ||
individual may be designated to serve in this role for the | ||
utility. The Chief Ethics and Compliance Officer shall be | ||
responsible for ensuring that the public utility complies with | ||
the highest standards of ethical conduct, including, but not | ||
limited to, complying with the standards imposed under this | ||
Section, those adopted pursuant to a rulemaking authorized by | ||
this Section, and other applicable requirements of Illinois | ||
law and rules. | ||
(2) Each public utility's Chief Ethics and Compliance | ||
Officer shall: | ||
(A) oversee creation and implementation of a code of | ||
ethical conduct for the public utility, applicable to all | ||
directors, officers, employees, and lobbyists of the | ||
public utility, as well as to all contractors, | ||
consultants, agents, vendors, and business partners of the | ||
public utility in connection with their activities with or | ||
on behalf of the public utility; | ||
(B) oversee training for public utility directors, | ||
officers, and employees, as well as contractors, |
consultants, lobbyists and political consultants, on the | ||
public utility's code of ethical conduct, practices, and | ||
procedures to advise agents, vendors, and business | ||
partners of the public utility of the applicability of the | ||
code of ethical conduct to their activities with or on | ||
behalf of the public utility; | ||
(C) oversee the ongoing monitoring of all contractors, | ||
consultants, and vendors who are contracted for the | ||
purpose of carrying out lobbying activities to ensure | ||
their continued compliance with applicable ethical | ||
standards; | ||
(D) at least annually, oversee a review of the public | ||
utility's internal controls, code of ethical conduct, | ||
practices, and procedures to assess their continued | ||
effectiveness to ensure the highest standards of ethical | ||
conduct among the public utility's directors, officers, | ||
employees, contractors, consultants, lobbyists, vendors, | ||
agents and business partners; and | ||
(E) maintain records of all conduct determined to be | ||
in violation of Illinois law, rules, and regulations, and | ||
the utility's response to that conduct, and make such | ||
records available for inspection by the Public Utility | ||
Ethics and Compliance Monitor. | ||
(e) In addition to those standards established under this | ||
Section, those adopted pursuant to a rulemaking authorized by | ||
this Section, and other applicable requirements of Illinois |
law and rules, each public utility Chief Ethics and Compliance | ||
Officer shall oversee and ensure the development and | ||
implementation of internal controls, policies, and procedures | ||
to achieve the objectives set forth in paragraphs (1) through | ||
(3) of this subsection. Such implementation shall begin no | ||
later than 90 days after the effective date of this amendatory | ||
Act of the 102nd General Assembly. | ||
(1) The hiring of contractors, consultants and vendors | ||
for the purpose of carrying out lobbying pursuant to the | ||
Lobbyist Registration Act shall be reviewed and approved | ||
by the Chief Ethics and Compliance Officer. | ||
(2) No agreement between a public utility and a | ||
contractor, consultant, or vendor engaged for the purpose | ||
of carrying out lobbying pursuant to the Lobbyist | ||
Registration Act shall permit that contractor, consultant, | ||
or vendor to subcontract any portion of that work. | ||
(3) Public utilities shall require contractors, | ||
consultants, and vendors who are contracted for the | ||
purpose of carrying out lobbying pursuant to the Lobbyist | ||
Registration Act to provide detailed invoices and reports | ||
describing activities taken and amounts billed for such | ||
activities, including all persons involved and anything of | ||
value requested or solicited or provided to public | ||
officials or their staff, including hiring requests. No | ||
such contractor, consultant, or vendor shall be paid | ||
without having first submitted a detailed invoice or |
report. | ||
For purposes of this Section, "anything of value" | ||
includes, but is not limited to, money, gifts, | ||
entertainment, hiring referrals and recommendations to the | ||
public utility, campaign contributions, vendor referrals, | ||
and contributions to charitable organizations solicited by | ||
or on behalf of the public official. | ||
(f) Each public utility shall be required to submit an | ||
annual ethics and compliance report to the Commission no later | ||
than May 1 of each year, beginning May 1, 2022. The utility's | ||
Chief Ethics and Compliance Officer shall oversee the | ||
preparation and submission of the report and shall certify it. | ||
Each report shall describe in detail the public utility's | ||
internal controls, codes of ethical conduct, practices, and | ||
procedures. The reporting implemented during the reporting | ||
period to comply with the standards set forth in this Section, | ||
rules adopted by the Commission, and other applicable | ||
requirements of Illinois law and rules. Each report shall also | ||
identify any material changes implemented to such internal | ||
controls, code of ethical conduct, practices, and procedures | ||
during the reporting period, as well as any material changes | ||
implemented, or anticipated to be implemented, in the calendar | ||
year in which the report is filed. Each report shall, for the | ||
applicable reporting period include at least the following | ||
information: | ||
(1) a summary and description of the public utility's |
system of financial and accounting procedures, internal | ||
controls, and practices, including an explanation of how | ||
this system is reasonably designed to ensure the | ||
maintenance of fair and accurate books, records, and | ||
accounts and to provide reasonable assurances that | ||
transactions are recorded as necessary to permit | ||
preparation of financial statements in conformity with | ||
generally accepted accounting principles and Commission | ||
requirements and to maintain accountability for assets; | ||
(2) a summary and description of the public utility's | ||
process for conducting an assessment of ethics and | ||
compliance risks and a representation that an assessment | ||
was conducted in accordance with those risks and shared | ||
with the public utility's senior management and board of | ||
directors; | ||
(3) a summary of the public utility's implementation | ||
of mechanisms, including, but not limited to, training | ||
programs designed to ensure that its internal controls, | ||
code of ethical conduct, practices, and procedures are | ||
effectively communicated to all directors, officers, | ||
employees, contractors, consultants, lobbyists, vendors, | ||
agents, and business partners; | ||
(4) a summary of the public utility's efforts to | ||
ensure that its directors and senior management provide | ||
strong, explicit, and visible support and commitment to | ||
its corporate policy against violations of federal and |
State law; | ||
(5) a summary of the public utility's implementation | ||
of mechanisms designed to effectively enforce its internal | ||
controls, code of ethical conduct, practices, and | ||
procedures, including appropriately providing incentives | ||
for compliance, disciplining violators, and applying such | ||
code, controls, policies, practices, and procedures | ||
consistently and fairly regardless of the position held | ||
by, or the importance of, the director, officer, or | ||
employee; and | ||
(6) a summary of the public utility's implementation | ||
of procedures to ensure that, where misconduct is | ||
discovered, reasonable steps are taken to remedy the harm | ||
resulting from such misconduct, including disciplinary | ||
action, logging the conduct and the utility's response as | ||
required by item (E) of paragraph (2) of subsection (d) of | ||
this Section and assessing and modifying as appropriate | ||
the internal controls, code, policies, practices and | ||
procedures necessary to ensure that the compliance program | ||
is effective. | ||
For purposes of this Section, "reporting period" means | ||
the most recent 12-month calendar year period preceding | ||
the applicable May 1 annual report filing date. | ||
(g) Notwithstanding the provisions of this Section, the | ||
Commission shall initiate a management audit pursuant to | ||
Section 8-102 of this Act by the later of 18 months after the |
effective date of this amendatory Act of the 102nd General | ||
Assembly or 18 months after a conviction or a plea or agreement | ||
of each public utility that, on or after January 1, 2020, has | ||
been found guilty or entered a guilty plea regarding any | ||
felony offense or has entered into a Deferred Prosecution | ||
Agreement for a felony offense. Such audit shall address, at a | ||
minimum, the topics identified in paragraphs (1) through (6) | ||
of subsection (f). | ||
(h) Each public utility that files a report pursuant to | ||
subsection (f) must submit the specified filing fee at the | ||
time the Chief Clerk of the Commission accepts the filing. The | ||
filing fees applicable to each annual report are as follows: | ||
$15,000 for public utilities that serve fewer than 100,000 | ||
customers in the State; $75,000 for public utilities that | ||
serve at least 100,000 customers but not more than 500,000 | ||
customers in the State; $200,000 for public utilities that | ||
serve at least 500,000 customers in the State but not more than | ||
3,000,000; and $500,000 for public utilities that serve at | ||
least 3,000,000 customers in the State. | ||
(i) In the event the Public Utility Ethics and Compliance | ||
Monitor finds a public utility does not comply with any | ||
portion of this Section, or with the rules adopted under this | ||
Section, the Public Utility Ethics and Compliance Monitor | ||
shall issue a Report to the Commission detailing the public | ||
utility's deficiencies. The Commission shall have authority to | ||
open an investigation and shall order remediation and |
penalties, including fines, as appropriate. | ||
(j) Each year, each public utility in the State shall | ||
remit amounts necessary for the Commission to pay the wages, | ||
overhead, travel expenses, and other costs of the Public | ||
Utility Ethics and Compliance Monitor. The public utility | ||
shall remit payment to the Commission in an amount determined | ||
by the Commission based on that public utility's proportional | ||
share, by number of customers. | ||
(k) The costs of a public utility that arise from a | ||
criminal investigation or result from an investigation | ||
initiated by the Commission as the result of an ethics | ||
violation are not costs of service and shall not be | ||
recoverable in rates. | ||
(l) The Commission shall have the authority to adopt rules | ||
and emergency rules where applicable to implement this | ||
Section. | ||
(220 ILCS 5/4-604.5 new) | ||
Sec. 4-604.5. Restitution for misconduct. | ||
(a) It is the policy of this State that public utility | ||
ethical and criminal misconduct shall not be tolerated. The | ||
General Assembly finds it necessary to collect restitution, to | ||
be distributed as described in subsection (e), from a public | ||
utility that has been found guilty of violations of criminal | ||
law or that has entered into a Deferred Prosecution Agreement | ||
that details violations of criminal law that result in harm to |
ratepayers. | ||
(b) In light of such violations, the Illinois Commerce | ||
Commission shall, within 150 days after the effective date of | ||
this amendatory Act of the 102nd General Assembly, initiate an | ||
investigation as to whether Commonwealth Edison collected, | ||
spent, allocated, transferred, remitted, or caused in any | ||
other way to be expended ratepayer funds in connection with | ||
the conduct detailed in the Deferred Prosecution Agreement of | ||
July 16, 2020 between the United States Attorney for the | ||
Northern District of Illinois and Commonwealth Edison. The | ||
investigation shall also determine whether any ratepayer funds | ||
were used to pay the criminal penalty agreed to in the Deferred | ||
Prosecution Agreement. The investigation shall determine | ||
whether the public utility collected, spent, allocated, | ||
transferred, remitted, or caused in any other way to be | ||
expended ratepayer funds that were not lawfully recoverable | ||
through rates, and which should accordingly be refunded to | ||
ratepayers and calculate such benefits to initiate a refund to | ||
ratepayers as a result of such conduct. The investigation | ||
shall conclude no later than 330 days following initiation and | ||
shall be conducted as a contested case, as defined in Section | ||
1-30 of the Illinois Administrative Procedure Act. | ||
(c) If regulated entities are found guilty of criminal | ||
conduct, the Commission may initiate an investigation, impose | ||
penalties, order restitution and such other remedies it deems | ||
necessary, and initiate refunds to ratepayers as described in |
subsection (b). Such investigation and proceeding may commence | ||
within 150 days of a finding of guilt. Any funds collected | ||
pursuant to this subsection shall be distributed as described | ||
in subsection (e). The Commission may order any other remedies | ||
it deems necessary. | ||
(d) Pursuant to subsection (e), the investigation shall | ||
calculate a schedule for remittance to State funds and to | ||
ratepayers, over a period of no more than 4 years, to be paid | ||
by the public utility from profits, returns, or shareholder | ||
dollars. No costs related to the investigation or contested | ||
proceeding authorized by this Section, restitution, or refunds | ||
may be recoverable through rates. | ||
(e) Funds collected pursuant to this Section, for the | ||
purposes of restitution, shall be repaid by the public utility | ||
as a per therm or per-kilowatt-hour credit to the public | ||
utility's ratepayers as a separate line item on the utility | ||
bill. | ||
(f) No public utility may use ratepayer funds to pay a | ||
criminal penalty imposed by any local, State, or federal law | ||
enforcement entity or court. | ||
(g) Any penalties, restitution, refunds, or remedies | ||
provided for in this Section are in addition to and not a | ||
substitution for other remedies that may be provided for by | ||
law. | ||
(220 ILCS 5/4-605 new) |
Sec. 4-605. Reliability mitigation plan findings. The | ||
General Assembly finds that reducing carbon dioxide and | ||
copollutant emissions in a manner that does not threaten | ||
electric reliability and resource adequacy is essential to the | ||
health and safety of all Illinois citizens. Therefore, the | ||
Commission shall review reliability mitigation plans filed | ||
pursuant to Section 9.15 of the Environmental Protection Act | ||
to ensure adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service is available to | ||
ratepayers by approving reliability mitigation plans that | ||
permit the Illinois Pollution Control Board to enforce | ||
emission reductions in a manner that preserves reliability and | ||
resource adequacy in wholesale and retail electricity markets. | ||
(220 ILCS 5/5-117) | ||
Sec. 5-117. Supplier diversity goals. | ||
(a) The public policy of this State is to collaboratively | ||
work with companies that serve Illinois residents to improve | ||
their supplier diversity in a non-antagonistic manner. | ||
(b) The Commission shall require all gas, electric, and | ||
water companies with at least 100,000 customers under its | ||
authority, as well as suppliers of wind energy, solar energy,
| ||
hydroelectricity, nuclear energy, and any other supplier of
| ||
energy within this State other than wind energy and solar | ||
energy required to comply with the reporting requirements | ||
under Section 1505-215 of the Department of Labor Law of the
|
Civil Administrative Code of Illinois , to submit an annual | ||
report by April 15, 2015 and every April 15 thereafter, in a | ||
searchable Adobe PDF format, on all procurement goals and | ||
actual spending for female-owned, minority-owned, | ||
veteran-owned, and small business enterprises in the previous | ||
calendar year. These goals shall be expressed as a percentage | ||
of the total work performed by the entity submitting the | ||
report, and the actual spending for all female-owned, | ||
minority-owned, veteran-owned, and small business enterprises | ||
shall also be expressed as a percentage of the total work | ||
performed by the entity submitting the report. | ||
(c) Each participating company in its annual report shall | ||
include the following information: | ||
(1) an explanation of the plan for the next year to | ||
increase participation; | ||
(2) an explanation of the plan to increase the goals; | ||
(3) the areas of procurement each company shall be | ||
actively seeking more participation in in the next year; | ||
(4) an outline of the plan to alert and encourage | ||
potential vendors in that area to seek business from the | ||
company; | ||
(5) an explanation of the challenges faced in finding | ||
quality vendors and offer any suggestions for what the | ||
Commission could do to be helpful to identify those | ||
vendors; | ||
(6) a list of the certifications the company |
recognizes; | ||
(7) the point of contact for any potential vendor who | ||
wishes to do business with the company and explain the | ||
process for a vendor to enroll with the company as a | ||
minority-owned, women-owned, or veteran-owned company; and | ||
(8) any particular success stories to encourage other | ||
companies to emulate best practices. | ||
(d) Each annual report shall include as much | ||
State-specific data as possible. If the submitting entity does | ||
not submit State-specific data, then the company shall include | ||
any national data it does have and explain why it could not | ||
submit State-specific data and how it intends to do so in | ||
future reports, if possible. | ||
(e) Each annual report shall include the rules, | ||
regulations, and definitions used for the procurement goals in | ||
the company's annual report. | ||
(f) The Commission and all participating entities shall | ||
hold an annual workshop open to the public in 2015 and every | ||
year thereafter on the state of supplier diversity to | ||
collaboratively seek solutions to structural impediments to | ||
achieving stated goals, including testimony from each | ||
participating entity as well as subject matter experts and | ||
advocates. The Commission shall publish a database on its | ||
website of the point of contact for each participating entity | ||
for supplier diversity, along with a list of certifications | ||
each company recognizes from the information submitted in each |
annual report. The Commission shall publish each annual report | ||
on its website and shall maintain each annual report for at | ||
least 5 years.
| ||
(Source: P.A. 98-1056, eff. 8-26-14; 99-906, eff. 6-1-17; | ||
revised 7-22-19.) | ||
(220 ILCS 5/8-103B) | ||
Sec. 8-103B. Energy efficiency and demand-response | ||
measures. | ||
(a) It is the policy of the State that electric utilities | ||
are required to use cost-effective energy efficiency and | ||
demand-response measures to reduce delivery load. Requiring | ||
investment in cost-effective energy efficiency and | ||
demand-response measures will reduce direct and indirect costs | ||
to consumers by decreasing environmental impacts and by | ||
avoiding or delaying the need for new generation, | ||
transmission, and distribution infrastructure. It serves the | ||
public interest to allow electric utilities to recover costs | ||
for reasonably and prudently incurred expenditures for energy | ||
efficiency and demand-response measures. As used in this | ||
Section, "cost-effective" means that the measures satisfy the | ||
total resource cost test. The low-income measures described in | ||
subsection (c) of this Section shall not be required to meet | ||
the total resource cost test. For purposes of this Section, | ||
the terms "energy-efficiency", "demand-response", "electric | ||
utility", and "total resource cost test" have the meanings set |
forth in the Illinois Power Agency Act. "Black, indigenous, | ||
and people of color" and "BIPOC" means people who are members | ||
of the groups described in subparagraphs (a) through (e) of | ||
paragraph (A) of subsection (1) of Section 2 of the Business | ||
Enterprise for Minorities, Women, and Persons with | ||
Disabilities Act. | ||
(a-5) This Section applies to electric utilities serving | ||
more than 500,000 retail customers in the State for those | ||
multi-year plans commencing after December 31, 2017. | ||
(b) For purposes of this Section, electric utilities | ||
subject to this Section that serve more than 3,000,000 retail | ||
customers in the State shall be deemed to have achieved a | ||
cumulative persisting annual savings of 6.6% from energy | ||
efficiency measures and programs implemented during the period | ||
beginning January 1, 2012 and ending December 31, 2017, which | ||
percent is based on the deemed average weather normalized | ||
sales of electric power and energy during calendar years 2014, | ||
2015, and 2016 of 88,000,000 MWhs. For the purposes of this | ||
subsection (b) and subsection (b-5), the 88,000,000 MWhs of | ||
deemed electric power and energy sales shall be reduced by the | ||
number of MWhs equal to the sum of the annual consumption of | ||
customers that have opted out of are exempt from subsections | ||
(a) through (j) of this Section under paragraph (1) of | ||
subsection (l) of this Section, as averaged across the | ||
calendar years 2014, 2015, and 2016. After 2017, the deemed | ||
value of cumulative persisting annual savings from energy |
efficiency measures and programs implemented during the period | ||
beginning January 1, 2012 and ending December 31, 2017, shall | ||
be reduced each year, as follows, and the applicable value | ||
shall be applied to and count toward the utility's achievement | ||
of the cumulative persisting annual savings goals set forth in | ||
subsection (b-5): | ||
(1) 5.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2018; | ||
(2) 5.2% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2019; | ||
(3) 4.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2020; | ||
(4) 4.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2021; | ||
(5) 3.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2022; | ||
(6) 3.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2023; | ||
(7) 2.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2024; | ||
(8) 2.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2025; | ||
(9) 2.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2026; | ||
(10) 2.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2027; |
(11) 1.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2028; | ||
(12) 1.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2029; and | ||
(13) 1.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2030 ; . | ||
(14) 1.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2031; | ||
(15) 1.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2032; | ||
(16) 0.9% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2033; | ||
(17) 0.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2034; | ||
(18) 0.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2035; | ||
(19) 0.4% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2036; | ||
(20) 0.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2037; | ||
(21) 0.2% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2038; | ||
(22) 0.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2039; and | ||
(23) 0.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2040 and all subsequent |
years. | ||
For purposes of this Section, "cumulative persisting | ||
annual savings" means the total electric energy savings in a | ||
given year from measures installed in that year or in previous | ||
years, but no earlier than January 1, 2012, that are still | ||
operational and providing savings in that year because the | ||
measures have not yet reached the end of their useful lives. | ||
(b-5) Beginning in 2018, electric utilities subject to | ||
this Section that serve more than 3,000,000 retail customers | ||
in the State shall achieve the following cumulative persisting | ||
annual savings goals, as modified by subsection (f) of this | ||
Section and as compared to the deemed baseline of 88,000,000 | ||
MWhs of electric power and energy sales set forth in | ||
subsection (b), as reduced by the number of MWhs equal to the | ||
sum of the annual consumption of customers that have opted out | ||
of are exempt from subsections (a) through (j) of this Section | ||
under paragraph (1) of subsection (l) of this Section as | ||
averaged across the calendar years 2014, 2015, and 2016, | ||
through the implementation of energy efficiency measures | ||
during the applicable year and in prior years, but no earlier | ||
than January 1, 2012: | ||
(1) 7.8% cumulative persisting annual savings for the | ||
year ending December 31, 2018; | ||
(2) 9.1% cumulative persisting annual savings for the | ||
year ending December 31, 2019; | ||
(3) 10.4% cumulative persisting annual savings for the |
year ending December 31, 2020; | ||
(4) 11.8% cumulative persisting annual savings for the | ||
year ending December 31, 2021; | ||
(5) 13.1% cumulative persisting annual savings for the | ||
year ending December 31, 2022; | ||
(6) 14.4% cumulative persisting annual savings for the | ||
year ending December 31, 2023; | ||
(7) 15.7% cumulative persisting annual savings for the | ||
year ending December 31, 2024; | ||
(8) 17% cumulative persisting annual savings for the | ||
year ending December 31, 2025; | ||
(9) 17.9% cumulative persisting annual savings for the | ||
year ending December 31, 2026; | ||
(10) 18.8% cumulative persisting annual savings for | ||
the year ending December 31, 2027; | ||
(11) 19.7% cumulative persisting annual savings for | ||
the year ending December 31, 2028; | ||
(12) 20.6% cumulative persisting annual savings for | ||
the year ending December 31, 2029; and | ||
(13) 21.5% cumulative persisting annual savings for | ||
the year ending December 31, 2030. | ||
No later than December 31, 2021, the Illinois Commerce | ||
Commission shall establish additional cumulative persisting | ||
annual savings goals for the years 2031 through 2035. No later | ||
than December 31, 2024, the Illinois Commerce Commission shall | ||
establish additional cumulative persisting annual savings |
goals for the years 2036 through 2040. The Commission shall | ||
also establish additional cumulative persisting annual savings | ||
goals every 5 years thereafter to ensure that utilities always | ||
have goals that extend at least 11 years into the future. The | ||
cumulative persisting annual savings goals beyond the year | ||
2030 shall increase by 0.9 percentage points per year, absent | ||
a Commission decision to initiate a proceeding to consider | ||
establishing goals that increase by more or less than that | ||
amount. Such a proceeding must be conducted in accordance with | ||
the procedures described in subsection (f) of this Section. If | ||
such a proceeding is initiated, the cumulative persisting | ||
annual savings goals established by the Commission through | ||
that proceeding shall reflect the Commission's best estimate | ||
of the maximum amount of additional savings that are forecast | ||
to be cost-effectively achievable unless such best estimates | ||
would result in goals that represent less than 0.5 percentage | ||
point annual increases in total cumulative persisting annual | ||
savings. The Commission may only establish goals that | ||
represent less than 0.5 percentage point annual increases in | ||
cumulative persisting annual savings if it can demonstrate, | ||
based on clear and convincing evidence and through independent | ||
analysis, that 0.5 percentage point increases are not | ||
cost-effectively achievable. The Commission shall inform its | ||
decision based on an energy efficiency potential study that | ||
conforms to the requirements of this Section. | ||
(b-10) For purposes of this Section, electric utilities |
subject to this Section that serve less than 3,000,000 retail | ||
customers but more than 500,000 retail customers in the State | ||
shall be deemed to have achieved a cumulative persisting | ||
annual savings of 6.6% from energy efficiency measures and | ||
programs implemented during the period beginning January 1, | ||
2012 and ending December 31, 2017, which is based on the deemed | ||
average weather normalized sales of electric power and energy | ||
during calendar years 2014, 2015, and 2016 of 36,900,000 MWhs. | ||
For the purposes of this subsection (b-10) and subsection | ||
(b-15), the 36,900,000 MWhs of deemed electric power and | ||
energy sales shall be reduced by the number of MWhs equal to | ||
the sum of the annual consumption of customers that have opted | ||
out of are exempt from subsections (a) through (j) of this | ||
Section under paragraph (1) of subsection (l) of this Section, | ||
as averaged across the calendar years 2014, 2015, and 2016. | ||
After 2017, the deemed value of cumulative persisting annual | ||
savings from energy efficiency measures and programs | ||
implemented during the period beginning January 1, 2012 and | ||
ending December 31, 2017, shall be reduced each year, as | ||
follows, and the applicable value shall be applied to and | ||
count toward the utility's achievement of the cumulative | ||
persisting annual savings goals set forth in subsection | ||
(b-15): | ||
(1) 5.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2018; | ||
(2) 5.2% deemed cumulative persisting annual savings |
for the year ending December 31, 2019; | ||
(3) 4.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2020; | ||
(4) 4.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2021; | ||
(5) 3.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2022; | ||
(6) 3.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2023; | ||
(7) 2.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2024; | ||
(8) 2.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2025; | ||
(9) 2.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2026; | ||
(10) 2.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2027; | ||
(11) 1.8% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2028; | ||
(12) 1.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2029; and | ||
(13) 1.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2030 ; . | ||
(14) 1.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2031; | ||
(15) 1.1% deemed cumulative persisting annual savings |
for the year ending December 31, 2032; | ||
(16) 0.9% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2033; | ||
(17) 0.7% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2034; | ||
(18) 0.5% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2035; | ||
(19) 0.4% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2036; | ||
(20) 0.3% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2037; | ||
(21) 0.2% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2038; | ||
(22) 0.1% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2039; and | ||
(23) 0.0% deemed cumulative persisting annual savings | ||
for the year ending December 31, 2040 and all subsequent | ||
years. | ||
(b-15) Beginning in 2018, electric utilities subject to | ||
this Section that serve less than 3,000,000 retail customers | ||
but more than 500,000 retail customers in the State shall | ||
achieve the following cumulative persisting annual savings | ||
goals, as modified by subsection (b-20) and subsection (f) of | ||
this Section and as compared to the deemed baseline as reduced | ||
by the number of MWhs equal to the sum of the annual | ||
consumption of customers that have opted out of are exempt |
from subsections (a) through (j) of this Section under | ||
paragraph (1) of subsection (l) of this Section as averaged | ||
across the calendar years 2014, 2015, and 2016, through the | ||
implementation of energy efficiency measures during the | ||
applicable year and in prior years, but no earlier than | ||
January 1, 2012: | ||
(1) 7.4% cumulative persisting annual savings for the | ||
year ending December 31, 2018; | ||
(2) 8.2% cumulative persisting annual savings for the | ||
year ending December 31, 2019; | ||
(3) 9.0% cumulative persisting annual savings for the | ||
year ending December 31, 2020; | ||
(4) 9.8% cumulative persisting annual savings for the | ||
year ending December 31, 2021; | ||
(5) 10.6% cumulative persisting annual savings for the | ||
year ending December 31, 2022; | ||
(6) 11.4% cumulative persisting annual savings for the | ||
year ending December 31, 2023; | ||
(7) 12.2% cumulative persisting annual savings for the | ||
year ending December 31, 2024; | ||
(8) 13% cumulative persisting annual savings for the | ||
year ending December 31, 2025; | ||
(9) 13.6% cumulative persisting annual savings for the | ||
year ending December 31, 2026; | ||
(10) 14.2% cumulative persisting annual savings for | ||
the year ending December 31, 2027; |
(11) 14.8% cumulative persisting annual savings for | ||
the year ending December 31, 2028; | ||
(12) 15.4% cumulative persisting annual savings for | ||
the year ending December 31, 2029; and | ||
(13) 16% cumulative persisting annual savings for the | ||
year ending December 31, 2030. | ||
No later than December 31, 2021, the Illinois Commerce | ||
Commission shall establish additional cumulative persisting | ||
annual savings goals for the years 2031 through 2035. No later | ||
than December 31, 2024, the Illinois Commerce Commission shall | ||
establish additional cumulative persisting annual savings | ||
goals for the years 2036 through 2040. The Commission shall | ||
also establish additional cumulative persisting annual savings | ||
goals every 5 years thereafter to ensure that utilities always | ||
have goals that extend at least 11 years into the future. The | ||
cumulative persisting annual savings goals beyond the year | ||
2030 shall increase by 0.6 percentage points per year, absent | ||
a Commission decision to initiate a proceeding to consider | ||
establishing goals that increase by more or less than that | ||
amount. Such a proceeding must be conducted in accordance with | ||
the procedures described in subsection (f) of this Section. If | ||
such a proceeding is initiated, the cumulative persisting | ||
annual savings goals established by the Commission through | ||
that proceeding shall reflect the Commission's best estimate | ||
of the maximum amount of additional savings that are forecast | ||
to be cost-effectively achievable unless such best estimates |
would result in goals that represent less than 0.4 percentage | ||
point annual increases in total cumulative persisting annual | ||
savings. The Commission may only establish goals that | ||
represent less than 0.4 percentage point annual increases in | ||
cumulative persisting annual savings if it can demonstrate, | ||
based on clear and convincing evidence and through independent | ||
analysis, that 0.4 percentage point increases are not | ||
cost-effectively achievable. The Commission shall inform its | ||
decision based on an energy efficiency potential study that | ||
conforms to the requirements of this Section. | ||
The difference between the cumulative persisting annual | ||
savings goal for the applicable calendar year and the | ||
cumulative persisting annual savings goal for the immediately | ||
preceding calendar year is 0.8% for the period of January 1, | ||
2018 through December 31, 2025 and 0.6% for the period of | ||
January 1, 2026 through December 31, 2030. | ||
(b-20) Each electric utility subject to this Section may | ||
include cost-effective voltage optimization measures in its | ||
plans submitted under subsections (f) and (g) of this Section, | ||
and the costs incurred by a utility to implement the measures | ||
under a Commission-approved plan shall be recovered under the | ||
provisions of Article IX or Section 16-108.5 of this Act. For | ||
purposes of this Section, the measure life of voltage | ||
optimization measures shall be 15 years. The measure life | ||
period is independent of the depreciation rate of the voltage | ||
optimization assets deployed. Utilities may claim savings from |
voltage optimization on circuits for more than 15 years if | ||
they can demonstrate that they have made additional | ||
investments necessary to enable voltage optimization savings | ||
to continue beyond 15 years. Such demonstrations must be | ||
subject to the review of independent evaluation. | ||
Within 270 days after June 1, 2017 (the effective date of | ||
Public Act 99-906), an electric utility that serves less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State shall file a plan with the Commission | ||
that identifies the cost-effective voltage optimization | ||
investment the electric utility plans to undertake through | ||
December 31, 2024. The Commission, after notice and hearing, | ||
shall approve or approve with modification the plan within 120 | ||
days after the plan's filing and, in the order approving or | ||
approving with modification the plan, the Commission shall | ||
adjust the applicable cumulative persisting annual savings | ||
goals set forth in subsection (b-15) to reflect any amount of | ||
cost-effective energy savings approved by the Commission that | ||
is greater than or less than the following cumulative | ||
persisting annual savings values attributable to voltage | ||
optimization for the applicable year: | ||
(1) 0.0% of cumulative persisting annual savings for | ||
the year ending December 31, 2018; | ||
(2) 0.17% of cumulative persisting annual savings for | ||
the year ending December 31, 2019; | ||
(3) 0.17% of cumulative persisting annual savings for |
the year ending December 31, 2020; | ||
(4) 0.33% of cumulative persisting annual savings for | ||
the year ending December 31, 2021; | ||
(5) 0.5% of cumulative persisting annual savings for | ||
the year ending December 31, 2022; | ||
(6) 0.67% of cumulative persisting annual savings for | ||
the year ending December 31, 2023; | ||
(7) 0.83% of cumulative persisting annual savings for | ||
the year ending December 31, 2024; and | ||
(8) 1.0% of cumulative persisting annual savings for | ||
the year ending December 31, 2025 and all subsequent | ||
years . | ||
(b-25) In the event an electric utility jointly offers an | ||
energy efficiency measure or program with a gas utility under | ||
plans approved under this Section and Section 8-104 of this | ||
Act, the electric utility may continue offering the program, | ||
including the gas energy efficiency measures, in the event the | ||
gas utility discontinues funding the program. In that event, | ||
the energy savings value associated with such other fuels | ||
shall be converted to electric energy savings on an equivalent | ||
Btu basis for the premises. However, the electric utility | ||
shall prioritize programs for low-income residential customers | ||
to the extent practicable. An electric utility may recover the | ||
costs of offering the gas energy efficiency measures under | ||
this subsection (b-25). | ||
For those energy efficiency measures or programs that save |
both electricity and other fuels but are not jointly offered | ||
with a gas utility under plans approved under this Section and | ||
Section 8-104 or not offered with an affiliated gas utility | ||
under paragraph (6) of subsection (f) of Section 8-104 of this | ||
Act, the electric utility may count savings of fuels other | ||
than electricity toward the achievement of its annual savings | ||
goal, and the energy savings value associated with such other | ||
fuels shall be converted to electric energy savings on an | ||
equivalent Btu basis at the premises. | ||
In no event shall more than 10% of each year's applicable | ||
annual total savings requirement incremental goal as defined | ||
in paragraph (7.5) (7) of subsection (g) of this Section be met | ||
through savings of fuels other than electricity. | ||
(b-27) Beginning in 2022, an electric utility may offer | ||
and promote measures that electrify space heating, water | ||
heating, cooling, drying, cooking, industrial processes, and | ||
other building and industrial end uses that would otherwise be | ||
served by combustion of fossil fuel at the premises, provided | ||
that the electrification measures reduce total energy | ||
consumption at the premises. The electric utility may count | ||
the reduction in energy consumption at the premises toward | ||
achievement of its annual savings goals. The reduction in | ||
energy consumption at the premises shall be calculated as the | ||
difference between: (A) the reduction in Btu consumption of | ||
fossil fuels as a result of electrification, converted to | ||
kilowatt-hour equivalents by dividing by 3,412 Btu's per |
kilowatt hour; and (B) the increase in kilowatt hours of | ||
electricity consumption resulting from the displacement of | ||
fossil fuel consumption as a result of electrification. An | ||
electric utility may recover the costs of offering and | ||
promoting electrification measures under this subsection | ||
(b-27). | ||
In no event shall electrification savings counted toward | ||
each year's applicable annual total savings requirement, as | ||
defined in paragraph (7.5) of subsection (g) of this Section, | ||
be greater than: | ||
(1) 5% per year for each year from 2022 through 2025; | ||
(2) 10% per year for each year from 2026 through 2029; | ||
and | ||
(3) 15% per year for 2030 and all subsequent years. | ||
In addition, a minimum of 25% of all electrification savings | ||
counted toward a utility's applicable annual total savings | ||
requirement must be from electrification of end uses in | ||
low-income housing. The limitations on electrification savings | ||
that may be counted toward a utility's annual savings goals | ||
are separate from and in addition to the subsection (b-25) | ||
limitations governing the counting of the other fuel savings | ||
resulting from efficiency measures and programs. | ||
As part of the annual informational filing to the | ||
Commission that is required under paragraph (9) of subsection | ||
(g) of this Section, each utility shall identify the specific | ||
electrification measures offered under this subjection (b-27); |
the quantity of each electrification measure that was | ||
installed by its customers; the average total cost, average | ||
utility cost, average reduction in fossil fuel consumption, | ||
and average increase in electricity consumption associated | ||
with each electrification measure; the portion of | ||
installations of each electrification measure that were in | ||
low-income single-family housing, low-income multifamily | ||
housing, non-low-income single-family housing, non-low-income | ||
multifamily housing, commercial buildings, and industrial | ||
facilities; and the quantity of savings associated with each | ||
measure category in each customer category that are being | ||
counted toward the utility's applicable annual total savings | ||
requirement. Prior to installing an electrification measure, | ||
the utility shall provide a customer with an estimate of the | ||
impact of the new measure on the customer's average monthly | ||
electric bill and total annual energy expenses. | ||
(c) Electric utilities shall be responsible for overseeing | ||
the design, development, and filing of energy efficiency plans | ||
with the Commission and may, as part of that implementation, | ||
outsource various aspects of program development and | ||
implementation. A minimum of 10%, for electric utilities that | ||
serve more than 3,000,000 retail customers in the State, and a | ||
minimum of 7%, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, of the utility's entire portfolio | ||
funding level for a given year shall be used to procure |
cost-effective energy efficiency measures from units of local | ||
government, municipal corporations, school districts, public | ||
housing, and community college districts, provided that a | ||
minimum percentage of available funds shall be used to procure | ||
energy efficiency from public housing, which percentage shall | ||
be equal to public housing's share of public building energy | ||
consumption. | ||
The utilities shall also implement energy efficiency | ||
measures targeted at low-income households, which, for | ||
purposes of this Section, shall be defined as households at or | ||
below 80% of area median income, and expenditures to implement | ||
the measures shall be no less than $40,000,000 $25,000,000 per | ||
year for electric utilities that serve more than 3,000,000 | ||
retail customers in the State and no less than $13,000,000 | ||
$8,350,000 per year for electric utilities that serve less | ||
than 3,000,000 retail customers but more than 500,000 retail | ||
customers in the State. The ratio of spending on efficiency | ||
programs targeted at low-income multifamily buildings to | ||
spending on efficiency programs targeted at low-income | ||
single-family buildings shall be designed to achieve levels of | ||
savings from each building type that are approximately | ||
proportional to the magnitude of cost-effective lifetime | ||
savings potential in each building type. Investment in | ||
low-income whole-building weatherization programs shall | ||
constitute a minimum of 80% of a utility's total budget | ||
specifically dedicated to serving low-income customers. |
The utilities shall work to bundle low-income energy | ||
efficiency offerings with other programs that serve low-income | ||
households to maximize the benefits going to these households. | ||
The utilities shall market and implement low-income energy | ||
efficiency programs in coordination with low-income assistance | ||
programs, the Illinois Solar for All Program, and | ||
weatherization whenever practicable. The program implementer | ||
shall walk the customer through the enrollment process for any | ||
programs for which the customer is eligible. The utilities | ||
shall also pilot targeting customers with high arrearages, | ||
high energy intensity (ratio of energy usage divided by home | ||
or unit square footage), or energy assistance programs with | ||
energy efficiency offerings, and then track reduction in | ||
arrearages as a result of the targeting. This targeting and | ||
bundling of low-income energy programs shall be offered to | ||
both low-income single-family and multifamily customers | ||
(owners and residents). | ||
The utilities shall invest in health and safety measures | ||
appropriate and necessary for comprehensively weatherizing a | ||
home or multifamily building, and shall implement a health and | ||
safety fund of at least 15% of the total income-qualified | ||
weatherization budget that shall be used for the purpose of | ||
making grants for technical assistance, construction, | ||
reconstruction, improvement, or repair of buildings to | ||
facilitate their participation in the energy efficiency | ||
programs targeted at low-income single-family and multifamily |
households. These funds may also be used for the purpose of | ||
making grants for technical assistance, construction, | ||
reconstruction, improvement, or repair of the following | ||
buildings to facilitate their participation in the energy | ||
efficiency programs created by this Section: (1) buildings | ||
that are owned or operated by registered 501(c)(3) public | ||
charities; and (2) day care centers, day care homes, or group | ||
day care homes, as defined under 89 Ill. Adm. Code Part 406, | ||
407, or 408, respectively. | ||
Each electric utility shall assess opportunities to | ||
implement cost-effective energy efficiency measures and | ||
programs through a public housing authority or authorities | ||
located in its service territory. If such opportunities are | ||
identified, the utility shall propose such measures and | ||
programs to address the opportunities. Expenditures to address | ||
such opportunities shall be credited toward the minimum | ||
procurement and expenditure requirements set forth in this | ||
subsection (c). | ||
Implementation of energy efficiency measures and programs | ||
targeted at low-income households should be contracted, when | ||
it is practicable, to independent third parties that have | ||
demonstrated capabilities to serve such households, with a | ||
preference for not-for-profit entities and government agencies | ||
that have existing relationships with or experience serving | ||
low-income communities in the State. | ||
Each electric utility shall develop and implement |
reporting procedures that address and assist in determining | ||
the amount of energy savings that can be applied to the | ||
low-income procurement and expenditure requirements set forth | ||
in this subsection (c). Each electric utility shall also track | ||
the types and quantities or volumes of insulation and air | ||
sealing materials, and their associated energy saving | ||
benefits, installed in energy efficiency programs targeted at | ||
low-income single-family and multifamily households. | ||
The electric utilities shall participate in also convene a | ||
low-income energy efficiency accountability advisory committee | ||
("the committee"), which will directly inform to assist in the | ||
design , implementation, and evaluation of the low-income and | ||
public-housing energy efficiency programs. The committee shall | ||
be comprised of the electric utilities subject to the | ||
requirements of this Section, the gas utilities subject to the | ||
requirements of Section 8-104 of this Act, the utilities' | ||
low-income energy efficiency implementation contractors, | ||
nonprofit organizations, community action agencies, advocacy | ||
groups, State and local governmental agencies, public-housing | ||
organizations, and representatives of community-based | ||
organizations , especially those living in or working with | ||
environmental justice communities and BIPOC communities. The | ||
committee shall be composed of 2 geographically differentiated | ||
subcommittees: one for stakeholders in northern Illinois and | ||
one for stakeholders in central and southern Illinois. The | ||
subcommittees shall meet together at least twice per year . |
There shall be one statewide leadership committee led by | ||
and composed of community-based organizations that are | ||
representative of BIPOC and environmental justice communities | ||
and that includes equitable representation from BIPOC | ||
communities. The leadership committee shall be composed of an | ||
equal number of representatives from the 2 subcommittees. The | ||
subcommittees shall address specific programs and issues, with | ||
the leadership committee convening targeted workgroups as | ||
needed. The leadership committee may elect to work with an | ||
independent facilitator to solicit and organize feedback, | ||
recommendations and meeting participation from a wide variety | ||
of community-based stakeholders. If a facilitator is used, | ||
they shall be fair and responsive to the needs of all | ||
stakeholders involved in the committee. | ||
All committee meetings must be accessible, with rotating | ||
locations if meetings are held in-person, virtual | ||
participation options, and materials and agendas circulated in | ||
advance. | ||
There shall also be opportunities for direct input by | ||
committee members outside of committee meetings, such as via | ||
individual meetings, surveys, emails and calls, to ensure | ||
robust participation by stakeholders with limited capacity and | ||
ability to attend committee meetings. Committee meetings shall | ||
emphasize opportunities to bundle and coordinate delivery of | ||
low-income energy efficiency with other programs that serve | ||
low-income communities, such as the Illinois Solar for All |
Program and bill payment assistance programs. Meetings shall | ||
include educational opportunities for stakeholders to learn | ||
more about these additional offerings, and the committee shall | ||
assist in figuring out the best methods for coordinated | ||
delivery and implementation of offerings when serving | ||
low-income communities. The committee shall directly and | ||
equitably influence and inform utility low-income and | ||
public-housing energy efficiency programs and priorities. | ||
Participating utilities shall implement recommendations from | ||
the committee whenever possible. | ||
Participating utilities shall track and report how input | ||
from the committee has led to new approaches and changes in | ||
their energy efficiency portfolios. This reporting shall occur | ||
at committee meetings and in quarterly energy efficiency | ||
reports to the Stakeholder Advisory Group and Illinois | ||
Commerce Commission, and other relevant reporting mechanisms. | ||
Participating utilities shall also report on relevant equity | ||
data and metrics requested by the committee, such as energy | ||
burden data, geographic, racial, and other relevant | ||
demographic data on where programs are being delivered and | ||
what populations programs are serving. | ||
The Illinois Commerce Commission shall oversee and have | ||
relevant staff participate in the committee. The committee | ||
shall have a budget of 0.25% of each utility's entire | ||
efficiency portfolio funding for a given year. The budget | ||
shall be overseen by the Commission. The budget shall be used |
to provide grants for community-based organizations serving on | ||
the leadership committee, stipends for community-based | ||
organizations participating in the committee, grants for | ||
community-based organizations to do energy efficiency outreach | ||
and education, and relevant meeting needs as determined by the | ||
leadership committee. The education and outreach shall | ||
include, but is not limited to, basic energy efficiency | ||
education, information about low-income energy efficiency | ||
programs, and information on the committee's purpose, | ||
structure, and activities. | ||
(d) Notwithstanding any other provision of law to the | ||
contrary, a utility providing approved energy efficiency | ||
measures and, if applicable, demand-response measures in the | ||
State shall be permitted to recover all reasonable and | ||
prudently incurred costs of those measures from all retail | ||
customers, except as provided in subsection (l) of this | ||
Section, as follows, provided that nothing in this subsection | ||
(d) permits the double recovery of such costs from customers: | ||
(1) The utility may recover its costs through an | ||
automatic adjustment clause tariff filed with and approved | ||
by the Commission. The tariff shall be established outside | ||
the context of a general rate case. Each year the | ||
Commission shall initiate a review to reconcile any | ||
amounts collected with the actual costs and to determine | ||
the required adjustment to the annual tariff factor to | ||
match annual expenditures. To enable the financing of the |
incremental capital expenditures, including regulatory | ||
assets, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, the utility's actual year-end | ||
capital structure that includes a common equity ratio, | ||
excluding goodwill, of up to and including 50% of the | ||
total capital structure shall be deemed reasonable and | ||
used to set rates. | ||
(2) A utility may recover its costs through an energy | ||
efficiency formula rate approved by the Commission under a | ||
filing under subsections (f) and (g) of this Section, | ||
which shall specify the cost components that form the | ||
basis of the rate charged to customers with sufficient | ||
specificity to operate in a standardized manner and be | ||
updated annually with transparent information that | ||
reflects the utility's actual costs to be recovered during | ||
the applicable rate year, which is the period beginning | ||
with the first billing day of January and extending | ||
through the last billing day of the following December. | ||
The energy efficiency formula rate shall be implemented | ||
through a tariff filed with the Commission under | ||
subsections (f) and (g) of this Section that is consistent | ||
with the provisions of this paragraph (2) and that shall | ||
be applicable to all delivery services customers. The | ||
Commission shall conduct an investigation of the tariff in | ||
a manner consistent with the provisions of this paragraph |
(2), subsections (f) and (g) of this Section, and the | ||
provisions of Article IX of this Act to the extent they do | ||
not conflict with this paragraph (2). The energy | ||
efficiency formula rate approved by the Commission shall | ||
remain in effect at the discretion of the utility and | ||
shall do the following: | ||
(A) Provide for the recovery of the utility's | ||
actual costs incurred under this Section that are | ||
prudently incurred and reasonable in amount consistent | ||
with Commission practice and law. The sole fact that a | ||
cost differs from that incurred in a prior calendar | ||
year or that an investment is different from that made | ||
in a prior calendar year shall not imply the | ||
imprudence or unreasonableness of that cost or | ||
investment. | ||
(B) Reflect the utility's actual year-end capital | ||
structure for the applicable calendar year, excluding | ||
goodwill, subject to a determination of prudence and | ||
reasonableness consistent with Commission practice and | ||
law. To enable the financing of the incremental | ||
capital expenditures, including regulatory assets, for | ||
electric utilities that serve less than 3,000,000 | ||
retail customers but more than 500,000 retail | ||
customers in the State, a participating electric | ||
utility's actual year-end capital structure that | ||
includes a common equity ratio, excluding goodwill, of |
up to and including 50% of the total capital structure | ||
shall be deemed reasonable and used to set rates. | ||
(C) Include a cost of equity, which shall be | ||
calculated as the sum of the following: | ||
(i) the average for the applicable calendar | ||
year of the monthly average yields of 30-year U.S. | ||
Treasury bonds published by the Board of Governors | ||
of the Federal Reserve System in its weekly H.15 | ||
Statistical Release or successor publication; and | ||
(ii) 580 basis points. | ||
At such time as the Board of Governors of the | ||
Federal Reserve System ceases to include the monthly | ||
average yields of 30-year U.S. Treasury bonds in its | ||
weekly H.15 Statistical Release or successor | ||
publication, the monthly average yields of the U.S. | ||
Treasury bonds then having the longest duration | ||
published by the Board of Governors in its weekly H.15 | ||
Statistical Release or successor publication shall | ||
instead be used for purposes of this paragraph (2). | ||
(D) Permit and set forth protocols, subject to a | ||
determination of prudence and reasonableness | ||
consistent with Commission practice and law, for the | ||
following: | ||
(i) recovery of incentive compensation expense | ||
that is based on the achievement of operational | ||
metrics, including metrics related to budget |
controls, outage duration and frequency, safety, | ||
customer service, efficiency and productivity, and | ||
environmental compliance; however, this protocol | ||
shall not apply if such expense related to costs | ||
incurred under this Section is recovered under | ||
Article IX or Section 16-108.5 of this Act; | ||
incentive compensation expense that is based on | ||
net income or an affiliate's earnings per share | ||
shall not be recoverable under the
energy | ||
efficiency formula rate; | ||
(ii) recovery of pension and other | ||
post-employment benefits expense, provided that | ||
such costs are supported by an actuarial study; | ||
however, this protocol shall not apply if such | ||
expense related to costs incurred under this | ||
Section is recovered under Article IX or Section | ||
16-108.5 of this Act; | ||
(iii) recovery of existing regulatory assets | ||
over the periods previously authorized by the | ||
Commission; | ||
(iv) as described in subsection (e), | ||
amortization of costs incurred under this Section; | ||
and | ||
(v) projected, weather normalized billing | ||
determinants for the applicable rate year. | ||
(E) Provide for an annual reconciliation, as |
described in paragraph (3) of this subsection (d), | ||
less any deferred taxes related to the reconciliation, | ||
with interest at an annual rate of return equal to the | ||
utility's weighted average cost of capital, including | ||
a revenue conversion factor calculated to recover or | ||
refund all additional income taxes that may be payable | ||
or receivable as a result of that return, of the energy | ||
efficiency revenue requirement reflected in rates for | ||
each calendar year, beginning with the calendar year | ||
in which the utility files its energy efficiency | ||
formula rate tariff under this paragraph (2), with | ||
what the revenue requirement would have been had the | ||
actual cost information for the applicable calendar | ||
year been available at the filing date. | ||
The utility shall file, together with its tariff, the | ||
projected costs to be incurred by the utility during the | ||
rate year under the utility's multi-year plan approved | ||
under subsections (f) and (g) of this Section, including, | ||
but not limited to, the projected capital investment costs | ||
and projected regulatory asset balances with | ||
correspondingly updated depreciation and amortization | ||
reserves and expense, that shall populate the energy | ||
efficiency formula rate and set the initial rates under | ||
the formula. | ||
The Commission shall review the proposed tariff in | ||
conjunction with its review of a proposed multi-year plan, |
as specified in paragraph (5) of subsection (g) of this | ||
Section. The review shall be based on the same evidentiary | ||
standards, including, but not limited to, those concerning | ||
the prudence and reasonableness of the costs incurred by | ||
the utility, the Commission applies in a hearing to review | ||
a filing for a general increase in rates under Article IX | ||
of this Act. The initial rates shall take effect beginning | ||
with the January monthly billing period following the | ||
Commission's approval. | ||
The tariff's rate design and cost allocation across | ||
customer classes shall be consistent with the utility's | ||
automatic adjustment clause tariff in effect on June 1, | ||
2017 (the effective date of Public Act 99-906); however, | ||
the Commission may revise the tariff's rate design and | ||
cost allocation in subsequent proceedings under paragraph | ||
(3) of this subsection (d). | ||
If the energy efficiency formula rate is terminated, | ||
the then current rates shall remain in effect until such | ||
time as the energy efficiency costs are incorporated into | ||
new rates that are set under this subsection (d) or | ||
Article IX of this Act, subject to retroactive rate | ||
adjustment, with interest, to reconcile rates charged with | ||
actual costs. | ||
(3) The provisions of this paragraph (3) shall only | ||
apply to an electric utility that has elected to file an | ||
energy efficiency formula rate under paragraph (2) of this |
subsection (d). Subsequent to the Commission's issuance of | ||
an order approving the utility's energy efficiency formula | ||
rate structure and protocols, and initial rates under | ||
paragraph (2) of this subsection (d), the utility shall | ||
file, on or before June 1 of each year, with the Chief | ||
Clerk of the Commission its updated cost inputs to the | ||
energy efficiency formula rate for the applicable rate | ||
year and the corresponding new charges, as well as the | ||
information described in paragraph (9) of subsection (g) | ||
of this Section. Each such filing shall conform to the | ||
following requirements and include the following | ||
information: | ||
(A) The inputs to the energy efficiency formula | ||
rate for the applicable rate year shall be based on the | ||
projected costs to be incurred by the utility during | ||
the rate year under the utility's multi-year plan | ||
approved under subsections (f) and (g) of this | ||
Section, including, but not limited to, projected | ||
capital investment costs and projected regulatory | ||
asset balances with correspondingly updated | ||
depreciation and amortization reserves and expense. | ||
The filing shall also include a reconciliation of the | ||
energy efficiency revenue requirement that was in | ||
effect for the prior rate year (as set by the cost | ||
inputs for the prior rate year) with the actual | ||
revenue requirement for the prior rate year |
(determined using a year-end rate base) that uses | ||
amounts reflected in the applicable FERC Form 1 that | ||
reports the actual costs for the prior rate year. Any | ||
over-collection or under-collection indicated by such | ||
reconciliation shall be reflected as a credit against, | ||
or recovered as an additional charge to, respectively, | ||
with interest calculated at a rate equal to the | ||
utility's weighted average cost of capital approved by | ||
the Commission for the prior rate year, the charges | ||
for the applicable rate year. Such over-collection or | ||
under-collection shall be adjusted to remove any | ||
deferred taxes related to the reconciliation, for | ||
purposes of calculating interest at an annual rate of | ||
return equal to the utility's weighted average cost of | ||
capital approved by the Commission for the prior rate | ||
year, including a revenue conversion factor calculated | ||
to recover or refund all additional income taxes that | ||
may be payable or receivable as a result of that | ||
return. Each reconciliation shall be certified by the | ||
participating utility in the same manner that FERC | ||
Form 1 is certified. The filing shall also include the | ||
charge or credit, if any, resulting from the | ||
calculation required by subparagraph (E) of paragraph | ||
(2) of this subsection (d). | ||
Notwithstanding any other provision of law to the | ||
contrary, the intent of the reconciliation is to |
ultimately reconcile both the revenue requirement | ||
reflected in rates for each calendar year, beginning | ||
with the calendar year in which the utility files its | ||
energy efficiency formula rate tariff under paragraph | ||
(2) of this subsection (d), with what the revenue | ||
requirement determined using a year-end rate base for | ||
the applicable calendar year would have been had the | ||
actual cost information for the applicable calendar | ||
year been available at the filing date. | ||
For purposes of this Section, "FERC Form 1" means | ||
the Annual Report of Major Electric Utilities, | ||
Licensees and Others that electric utilities are | ||
required to file with the Federal Energy Regulatory | ||
Commission under the Federal Power Act, Sections 3, | ||
4(a), 304 and 209, modified as necessary to be | ||
consistent with 83 Ill. Admin. Code Part 415 as of May | ||
1, 2011. Nothing in this Section is intended to allow | ||
costs that are not otherwise recoverable to be | ||
recoverable by virtue of inclusion in FERC Form 1. | ||
(B) The new charges shall take effect beginning on | ||
the first billing day of the following January billing | ||
period and remain in effect through the last billing | ||
day of the next December billing period regardless of | ||
whether the Commission enters upon a hearing under | ||
this paragraph (3). | ||
(C) The filing shall include relevant and |
necessary data and documentation for the applicable | ||
rate year. Normalization adjustments shall not be | ||
required. | ||
Within 45 days after the utility files its annual | ||
update of cost inputs to the energy efficiency formula | ||
rate, the Commission shall with reasonable notice, | ||
initiate a proceeding concerning whether the projected | ||
costs to be incurred by the utility and recovered during | ||
the applicable rate year, and that are reflected in the | ||
inputs to the energy efficiency formula rate, are | ||
consistent with the utility's approved multi-year plan | ||
under subsections (f) and (g) of this Section and whether | ||
the costs incurred by the utility during the prior rate | ||
year were prudent and reasonable. The Commission shall | ||
also have the authority to investigate the information and | ||
data described in paragraph (9) of subsection (g) of this | ||
Section, including the proposed adjustment to the | ||
utility's return on equity component of its weighted | ||
average cost of capital. During the course of the | ||
proceeding, each objection shall be stated with | ||
particularity and evidence provided in support thereof, | ||
after which the utility shall have the opportunity to | ||
rebut the evidence. Discovery shall be allowed consistent | ||
with the Commission's Rules of Practice, which Rules of | ||
Practice shall be enforced by the Commission or the | ||
assigned administrative law judge. The Commission shall |
apply the same evidentiary standards, including, but not | ||
limited to, those concerning the prudence and | ||
reasonableness of the costs incurred by the utility, | ||
during the proceeding as it would apply in a proceeding to | ||
review a filing for a general increase in rates under | ||
Article IX of this Act. The Commission shall not, however, | ||
have the authority in a proceeding under this paragraph | ||
(3) to consider or order any changes to the structure or | ||
protocols of the energy efficiency formula rate approved | ||
under paragraph (2) of this subsection (d). In a | ||
proceeding under this paragraph (3), the Commission shall | ||
enter its order no later than the earlier of 195 days after | ||
the utility's filing of its annual update of cost inputs | ||
to the energy efficiency formula rate or December 15. The | ||
utility's proposed return on equity calculation, as | ||
described in paragraphs (7) through (9) of subsection (g) | ||
of this Section, shall be deemed the final, approved | ||
calculation on December 15 of the year in which it is filed | ||
unless the Commission enters an order on or before | ||
December 15, after notice and hearing, that modifies such | ||
calculation consistent with this Section. The Commission's | ||
determinations of the prudence and reasonableness of the | ||
costs incurred, and determination of such return on equity | ||
calculation, for the applicable calendar year shall be | ||
final upon entry of the Commission's order and shall not | ||
be subject to reopening, reexamination, or collateral |
attack in any other Commission proceeding, case, docket, | ||
order, rule, or regulation; however, nothing in this | ||
paragraph (3) shall prohibit a party from petitioning the | ||
Commission to rehear or appeal to the courts the order | ||
under the provisions of this Act. | ||
(e)
Beginning on June 1, 2017 (the effective date of | ||
Public Act 99-906), a utility subject to the requirements of | ||
this Section may elect to defer, as a regulatory asset, up to | ||
the full amount of its expenditures incurred under this | ||
Section for each annual period, including, but not limited to, | ||
any expenditures incurred above the funding level set by | ||
subsection (f) of this Section for a given year. The total | ||
expenditures deferred as a regulatory asset in a given year | ||
shall be amortized and recovered over a period that is equal to | ||
the weighted average of the energy efficiency measure lives | ||
implemented for that year that are reflected in the regulatory | ||
asset. The unamortized balance shall be recognized as of | ||
December 31 for a given year. The utility shall also earn a | ||
return on the total of the unamortized balances of all of the | ||
energy efficiency regulatory assets, less any deferred taxes | ||
related to those unamortized balances, at an annual rate equal | ||
to the utility's weighted average cost of capital that | ||
includes, based on a year-end capital structure, the utility's | ||
actual cost of debt for the applicable calendar year and a cost | ||
of equity, which shall be calculated as the sum of the (i) the | ||
average for the applicable calendar year of the monthly |
average yields of 30-year U.S. Treasury bonds published by the | ||
Board of Governors of the Federal Reserve System in its weekly | ||
H.15 Statistical Release or successor publication; and (ii) | ||
580 basis points, including a revenue conversion factor | ||
calculated to recover or refund all additional income taxes | ||
that may be payable or receivable as a result of that return. | ||
Capital investment costs shall be depreciated and recovered | ||
over their useful lives consistent with generally accepted | ||
accounting principles. The weighted average cost of capital | ||
shall be applied to the capital investment cost balance, less | ||
any accumulated depreciation and accumulated deferred income | ||
taxes, as of December 31 for a given year. | ||
When an electric utility creates a regulatory asset under | ||
the provisions of this Section, the costs are recovered over a | ||
period during which customers also receive a benefit which is | ||
in the public interest. Accordingly, it is the intent of the | ||
General Assembly that an electric utility that elects to | ||
create a regulatory asset under the provisions of this Section | ||
shall recover all of the associated costs as set forth in this | ||
Section. After the Commission has approved the prudence and | ||
reasonableness of the costs that comprise the regulatory | ||
asset, the electric utility shall be permitted to recover all | ||
such costs, and the value and recoverability through rates of | ||
the associated regulatory asset shall not be limited, altered, | ||
impaired, or reduced. | ||
(f) Beginning in 2017, each electric utility shall file an |
energy efficiency plan with the Commission to meet the energy | ||
efficiency standards for the next applicable multi-year period | ||
beginning January 1 of the year following the filing, | ||
according to the schedule set forth in paragraphs (1) through | ||
(3) of this subsection (f). If a utility does not file such a | ||
plan on or before the applicable filing deadline for the plan, | ||
it shall face a penalty of $100,000 per day until the plan is | ||
filed. | ||
(1) No later than 30 days after June 1, 2017 (the | ||
effective date of Public Act 99-906), each electric | ||
utility shall file a 4-year energy efficiency plan | ||
commencing on January 1, 2018 that is designed to achieve | ||
the cumulative persisting annual savings goals specified | ||
in paragraphs (1) through (4) of subsection (b-5) of this | ||
Section or in paragraphs (1) through (4) of subsection | ||
(b-15) of this Section, as applicable, through | ||
implementation of energy efficiency measures; however, the | ||
goals may be reduced if the utility's expenditures are | ||
limited pursuant to subsection (m) of this Section or, for | ||
a utility that serves less than 3,000,000 retail | ||
customers, if each of the following conditions are met: | ||
(A) the plan's analysis and forecasts of the utility's | ||
ability to acquire energy savings demonstrate that | ||
achievement of such goals is not cost effective; and (B) | ||
the amount of energy savings achieved by the utility as | ||
determined by the independent evaluator for the most |
recent year for which savings have been evaluated | ||
preceding the plan filing was less than the average annual | ||
amount of savings required to achieve the goals for the | ||
applicable 4-year plan period. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 4-year plan period shall not be reduced to | ||
amounts that are less than the maximum amount of | ||
cumulative persisting annual savings that is forecast to | ||
be cost-effectively achievable during the 4-year plan | ||
period. The Commission shall review any proposed goal | ||
reduction as part of its review and approval of the | ||
utility's proposed plan. | ||
(2) No later than March 1, 2021, each electric utility | ||
shall file a 4-year energy efficiency plan commencing on | ||
January 1, 2022 that is designed to achieve the cumulative | ||
persisting annual savings goals specified in paragraphs | ||
(5) through (8) of subsection (b-5) of this Section or in | ||
paragraphs (5) through (8) of subsection (b-15) of this | ||
Section, as applicable, through implementation of energy | ||
efficiency measures; however, the goals may be reduced if | ||
either (1) clear and convincing evidence demonstrates, | ||
through independent analysis, that the expenditure limits
| ||
in subsection (m) of this Section preclude full | ||
achievement of the goals or (2) the utility's expenditures | ||
are limited pursuant to subsection (m) of this Section or, |
each of the following conditions are met: (A) the plan's | ||
analysis and forecasts of the utility's ability to acquire | ||
energy savings demonstrate by clear and convincing | ||
evidence and through independent analysis that achievement | ||
of such goals is not cost effective; and (B) the amount of | ||
energy savings achieved by the utility as determined by | ||
the independent evaluator for the most recent year for | ||
which savings have been evaluated preceding the plan | ||
filing was less than the average annual amount of savings | ||
required to achieve the goals for the applicable 4-year | ||
plan period. If there is not clear and convincing evidence | ||
that achieving the savings goals specified in paragraph | ||
(b-5) or (b-15) of this Section is possible both | ||
cost-effectively and within the expenditure limits in | ||
subsection (m), such savings goals shall not be reduced. | ||
Except as provided in subsection (m) of this Section, | ||
annual increases in cumulative persisting annual savings | ||
goals during the applicable 4-year plan period shall not | ||
be reduced to amounts that are less than the maximum | ||
amount of cumulative persisting annual savings that is | ||
forecast to be cost-effectively achievable during the | ||
4-year plan period. The Commission shall review any | ||
proposed goal reduction as part of its review and approval | ||
of the utility's proposed plan. | ||
(3) No later than March 1, 2025, each electric utility | ||
shall file a 4-year 5-year energy efficiency plan |
commencing on January 1, 2026 that is designed to achieve | ||
the cumulative persisting annual savings goals specified | ||
in paragraphs (9) through (12) (13) of subsection (b-5) of | ||
this Section or in paragraphs (9) through (12) (13) of | ||
subsection (b-15) of this Section, as applicable, through | ||
implementation of energy efficiency measures; however, the | ||
goals may be reduced if either (1) clear and convincing | ||
evidence demonstrates, through independent analysis, that | ||
the expenditure limits in subsection (m) of this Section | ||
preclude full achievement of the goals or (2) the | ||
utility's expenditures are limited pursuant to subsection | ||
(m) of this Section or, each of the following conditions | ||
are met: (A) the plan's analysis and forecasts of the | ||
utility's ability to acquire energy savings demonstrate by | ||
clear and convincing evidence and through independent | ||
analysis that achievement of such goals is not cost | ||
effective; and (B) the amount of energy savings achieved | ||
by the utility as determined by the independent evaluator | ||
for the most recent year for which savings have been | ||
evaluated preceding the plan filing was less than the | ||
average annual amount of savings required to achieve the | ||
goals for the applicable 4-year 5-year plan period. If | ||
there is not clear and convincing evidence that achieving | ||
the savings goals specified in paragraphs (b-5) or (b-15) | ||
of this Section is possible both cost-effectively and | ||
within the expenditure limits in subsection (m), such |
savings goals shall not be reduced. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 4-year 5-year plan period shall not be reduced | ||
to amounts that are less than the maximum amount of | ||
cumulative persisting annual savings that is forecast to | ||
be cost-effectively achievable during the 4-year 5-year | ||
plan period. The Commission shall review any proposed goal | ||
reduction as part of its review and approval of the | ||
utility's proposed plan. | ||
(4) No later than March 1, 2029, and every 4 years | ||
thereafter, each electric utility shall file a 4-year | ||
energy efficiency plan commencing on January 1, 2030, and | ||
every 4 years thereafter, respectively, that is designed | ||
to achieve the cumulative persisting annual savings goals | ||
established by the Illinois Commerce Commission pursuant | ||
to direction of subsections (b-5) and (b-15) of this | ||
Section, as applicable, through implementation of energy | ||
efficiency measures; however, the goals may be reduced if | ||
either (1) clear and convincing evidence and independent | ||
analysis demonstrates that the expenditure limits in | ||
subsection (m) of this Section preclude full achievement | ||
of the goals or (2) each of the following conditions are | ||
met: (A) the plan's analysis and forecasts of the | ||
utility's ability to acquire energy savings demonstrate by | ||
clear and convincing evidence and through independent |
analysis that achievement of such goals is not | ||
cost-effective; and (B) the amount of energy savings | ||
achieved by the utility as determined by the independent | ||
evaluator for the most recent year for which savings have | ||
been evaluated preceding the plan filing was less than the | ||
average annual amount of savings required to achieve the | ||
goals for the applicable 4-year plan period. If there is | ||
not clear and convincing evidence that achieving the | ||
savings goals specified in paragraphs (b-5) or (b-15) of | ||
this Section is possible both cost-effectively and within | ||
the expenditure limits in subsection (m), such savings | ||
goals shall not be reduced. Except as provided in | ||
subsection (m) of this Section, annual increases in | ||
cumulative persisting annual savings goals during the | ||
applicable 4-year plan period shall not be reduced to | ||
amounts that are less than the maximum amount of | ||
cumulative persisting annual savings that is forecast to | ||
be cost-effectively achievable during the 4-year plan | ||
period. The Commission shall review any proposed goal | ||
reduction as part of its review and approval of the | ||
utility's proposed plan. | ||
Each utility's plan shall set forth the utility's | ||
proposals to meet the energy efficiency standards identified | ||
in subsection (b-5) or (b-15), as applicable and as such | ||
standards may have been modified under this subsection (f), | ||
taking into account the unique circumstances of the utility's |
service territory. For those plans commencing on January 1, | ||
2018, the Commission shall seek public comment on the | ||
utility's plan and shall issue an order approving or | ||
disapproving each plan no later than 105 days after June 1, | ||
2017 (the effective date of Public Act 99-906). For those | ||
plans commencing after December 31, 2021, the Commission shall | ||
seek public comment on the utility's plan and shall issue an | ||
order approving or disapproving each plan within 6 months | ||
after its submission. If the Commission disapproves a plan, | ||
the Commission shall, within 30 days, describe in detail the | ||
reasons for the disapproval and describe a path by which the | ||
utility may file a revised draft of the plan to address the | ||
Commission's concerns satisfactorily. If the utility does not | ||
refile with the Commission within 60 days, the utility shall | ||
be subject to penalties at a rate of $100,000 per day until the | ||
plan is filed. This process shall continue, and penalties | ||
shall accrue, until the utility has successfully filed a | ||
portfolio of energy efficiency and demand-response measures. | ||
Penalties shall be deposited into the Energy Efficiency Trust | ||
Fund. | ||
(g) In submitting proposed plans and funding levels under | ||
subsection (f) of this Section to meet the savings goals | ||
identified in subsection (b-5) or (b-15) of this Section, as | ||
applicable, the utility shall: | ||
(1) Demonstrate that its proposed energy efficiency | ||
measures will achieve the applicable requirements that are |
identified in subsection (b-5) or (b-15) of this Section, | ||
as modified by subsection (f) of this Section. | ||
(2) (Blank). Present specific proposals to implement | ||
new building and appliance standards that have been placed | ||
into effect. | ||
(2.5) Demonstrate consideration of program options for | ||
(A) advancing new building codes, appliance standards, and | ||
municipal regulations governing existing and new building | ||
efficiency improvements and (B) supporting efforts to | ||
improve compliance with new building codes, appliance | ||
standards and municipal regulations, as potentially | ||
cost-effective means of acquiring energy savings to count | ||
toward savings goals. | ||
(3) Demonstrate that its overall portfolio of | ||
measures, not including low-income programs described in | ||
subsection (c) of this Section, is cost-effective using | ||
the total resource cost test or complies with paragraphs | ||
(1) through (3) of subsection (f) of this Section and | ||
represents a diverse cross-section of opportunities for | ||
customers of all rate classes, other than those customers | ||
described in subsection (l) of this Section, to | ||
participate in the programs. Individual measures need not | ||
be cost effective. | ||
(3.5) Demonstrate that the utility's plan integrates | ||
the delivery of energy efficiency programs with natural | ||
gas efficiency programs, programs promoting distributed |
solar, programs promoting demand response and other | ||
efforts to address bill payment issues, including, but not | ||
limited to, LIHEAP and the Percentage of Income Payment | ||
Plan, to the extent such integration is practical and has | ||
the potential to enhance customer engagement, minimize | ||
market confusion, or reduce administrative costs. | ||
(4) Present a third-party energy efficiency | ||
implementation program subject to the following | ||
requirements: | ||
(A) beginning with the year commencing January 1, | ||
2019, electric utilities that serve more than | ||
3,000,000 retail customers in the State shall fund | ||
third-party energy efficiency programs in an amount | ||
that is no less than $25,000,000 per year, and | ||
electric utilities that serve less than 3,000,000 | ||
retail customers but more than 500,000 retail | ||
customers in the State shall fund third-party energy | ||
efficiency programs in an amount that is no less than | ||
$8,350,000 per year; | ||
(B) during 2018, the utility shall conduct a | ||
solicitation process for purposes of requesting | ||
proposals from third-party vendors for those | ||
third-party energy efficiency programs to be offered | ||
during one or more of the years commencing January 1, | ||
2019, January 1, 2020, and January 1, 2021; for those | ||
multi-year plans commencing on January 1, 2022 and |
January 1, 2026, the utility shall conduct a | ||
solicitation process during 2021 and 2025, | ||
respectively, for purposes of requesting proposals | ||
from third-party vendors for those third-party energy | ||
efficiency programs to be offered during one or more | ||
years of the respective multi-year plan period; for | ||
each solicitation process, the utility shall identify | ||
the sector, technology, or geographical area for which | ||
it is seeking requests for proposals; the solicitation | ||
process must be either for programs that fill gaps in | ||
the utility's program portfolio and for programs that | ||
target low-income customers, business sectors, | ||
building types, geographies, or other specific parts | ||
of its customer base with initiatives that would be | ||
more effective at reaching these customer segments | ||
than the utilities' programs filed in its energy | ||
efficiency plans; | ||
(C) the utility shall propose the bidder | ||
qualifications, performance measurement process, and | ||
contract structure, which must include a performance | ||
payment mechanism and general terms and conditions; | ||
the proposed qualifications, process, and structure | ||
shall be subject to Commission approval; and | ||
(D) the utility shall retain an independent third | ||
party to score the proposals received through the | ||
solicitation process described in this paragraph (4), |
rank them according to their cost per lifetime | ||
kilowatt-hours saved, and assemble the portfolio of | ||
third-party programs. | ||
The electric utility shall recover all costs | ||
associated with Commission-approved, third-party | ||
administered programs regardless of the success of those | ||
programs. | ||
(4.5) Implement cost-effective demand-response | ||
measures to reduce peak demand by 0.1% over the prior year | ||
for eligible retail customers, as defined in Section | ||
16-111.5 of this Act, and for customers that elect hourly | ||
service from the utility pursuant to Section 16-107 of | ||
this Act, provided those customers have not been declared | ||
competitive. This requirement continues until December 31, | ||
2026. | ||
(5) Include a proposed or revised cost-recovery tariff | ||
mechanism, as provided for under subsection (d) of this | ||
Section, to fund the proposed energy efficiency and | ||
demand-response measures and to ensure the recovery of the | ||
prudently and reasonably incurred costs of | ||
Commission-approved programs. | ||
(6) Provide for an annual independent evaluation of | ||
the performance of the cost-effectiveness of the utility's | ||
portfolio of measures, as well as a full review of the | ||
multi-year plan results of the broader net program impacts | ||
and, to the extent practical, for adjustment of the |
measures on a going-forward basis as a result of the | ||
evaluations. The resources dedicated to evaluation shall | ||
not exceed 3% of portfolio resources in any given year. | ||
(7) For electric utilities that serve more than | ||
3,000,000 retail customers in the State: | ||
(A) Through December 31, 2025, provide for an | ||
adjustment to the return on equity component of the | ||
utility's weighted average cost of capital calculated | ||
under subsection (d) of this Section: | ||
(i) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is less than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be reduced by a maximum of 200 | ||
basis points in the event that the utility | ||
achieved no more than 75% of such goal. If the | ||
utility achieved more than 75% of the applicable | ||
annual incremental goal but less than 100% of such | ||
goal, then the return on equity component shall be | ||
reduced by 8 basis points for each percent by | ||
which the utility failed to achieve the goal. | ||
(ii) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is more than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be increased by a maximum of 200 |
basis points in the event that the utility | ||
achieved at least 125% of such goal. If the | ||
utility achieved more than 100% of the applicable | ||
annual incremental goal but less than 125% of such | ||
goal, then the return on equity component shall be | ||
increased by 8 basis points for each percent by | ||
which the utility achieved above the goal. If the | ||
applicable annual incremental goal was reduced | ||
under paragraphs (1) or (2) of subsection (f) of | ||
this Section, then the following adjustments shall | ||
be made to the calculations described in this item | ||
(ii): | ||
(aa) the calculation for determining | ||
achievement that is at least 125% of the | ||
applicable annual incremental goal shall use | ||
the unreduced applicable annual incremental | ||
goal to set the value; and | ||
(bb) the calculation for determining | ||
achievement that is less than 125% but more | ||
than 100% of the applicable annual incremental | ||
goal shall use the reduced applicable annual | ||
incremental goal to set the value for 100% | ||
achievement of the goal and shall use the | ||
unreduced goal to set the value for 125% | ||
achievement. The 8 basis point value shall | ||
also be modified, as necessary, so that the |
200 basis points are evenly apportioned among | ||
each percentage point value between 100% and | ||
125% achievement. | ||
(B) For the period January 1, 2026 through | ||
December 31, 2029 and in all subsequent 4-year periods | ||
2030 , provide for an adjustment to the return on | ||
equity component of the utility's weighted average | ||
cost of capital calculated under subsection (d) of | ||
this Section: | ||
(i) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is less than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be reduced by a maximum of 200 | ||
basis points in the event that the utility | ||
achieved no more than 66% of such goal. If the | ||
utility achieved more than 66% of the applicable | ||
annual incremental goal but less than 100% of such | ||
goal, then the return on equity component shall be | ||
reduced by 6 basis points for each percent by | ||
which the utility failed to achieve the goal. | ||
(ii) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is more than the applicable | ||
annual incremental goal, then the return on equity | ||
component shall be increased by a maximum of 200 |
basis points in the event that the utility | ||
achieved at least 134% of such goal. If the | ||
utility achieved more than 100% of the applicable | ||
annual incremental goal but less than 134% of such | ||
goal, then the return on equity component shall be | ||
increased by 6 basis points for each percent by | ||
which the utility achieved above the goal. If the | ||
applicable annual incremental goal was reduced | ||
under paragraph (3) of subsection (f) of this | ||
Section, then the following adjustments shall be | ||
made to the calculations described in this item | ||
(ii): | ||
(aa) the calculation for determining | ||
achievement that is at least 134% of the | ||
applicable annual incremental goal shall use | ||
the unreduced applicable annual incremental | ||
goal to set the value; and | ||
(bb) the calculation for determining | ||
achievement that is less than 134% but more | ||
than 100% of the applicable annual incremental | ||
goal shall use the reduced applicable annual | ||
incremental goal to set the value for 100% | ||
achievement of the goal and shall use the | ||
unreduced goal to set the value for 134% | ||
achievement. The 6 basis point value shall | ||
also be modified, as necessary, so that the |
200 basis points are evenly apportioned among | ||
each percentage point value between 100% and | ||
134% achievement. | ||
(C) Notwithstanding the provisions of | ||
subparagraphs (A) and (B) of this paragraph (7), if | ||
the applicable annual incremental goal for an electric | ||
utility is ever less than 0.6% of deemed average | ||
weather normalized sales of electric power and energy | ||
during calendar years 2014, 2015, and 2016, an | ||
adjustment to the return on equity component of the | ||
utility's weighted average cost of capital calculated | ||
under subsection (d) of this Section shall be made as | ||
follows: | ||
(i) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is less than would have been | ||
achieved had the applicable annual incremental | ||
goal been achieved, then the return on equity | ||
component shall be reduced by a maximum of 200 | ||
basis points if the utility achieved no more than | ||
75% of its applicable annual total savings | ||
requirement as defined in paragraph (7.5) of this | ||
subsection. If the utility achieved more than 75% | ||
of the applicable annual total savings requirement | ||
but less than 100% of such goal, then the return on | ||
equity component shall be reduced by 8 basis |
points for each percent by which the utility | ||
failed to achieve the goal. | ||
(ii) If the independent evaluator determines | ||
that the utility achieved a cumulative persisting | ||
annual savings that is more than would have been | ||
achieved had the applicable annual incremental | ||
goal been achieved, then the return on equity | ||
component shall be increased by a maximum of 200 | ||
basis points if the utility achieved at least 125% | ||
of its applicable annual total savings | ||
requirement. If the utility achieved more than | ||
100% of the applicable annual total savings | ||
requirement but less than 125% of such goal, then | ||
the return on equity component shall be increased | ||
by 8 basis points for each percent by which the | ||
utility achieved above the applicable annual total | ||
savings requirement. If the applicable annual | ||
incremental goal was reduced under paragraph (1) | ||
or (2) of subsection (f) of this Section, then the | ||
following adjustments shall be made to the | ||
calculations described in this item (ii): | ||
(aa) the calculation for determining | ||
achievement that is at least 125% of the | ||
applicable annual total savings requirement | ||
shall use the unreduced applicable annual | ||
incremental goal to set the value; and |
(bb) the calculation for determining | ||
achievement that is less than 125% but more | ||
than 100% of the applicable annual total | ||
savings requirement shall use the reduced | ||
applicable annual incremental goal to set the | ||
value for 100% achievement of the goal and | ||
shall use the unreduced goal to set the value | ||
for 125% achievement. The 8 basis point value | ||
shall also be modified, as necessary, so that | ||
the 200 basis points are evenly apportioned | ||
among each percentage point value between 100% | ||
and 125% achievement. | ||
(7.5) For purposes of this Section, the term | ||
"applicable
annual incremental goal" means the difference | ||
between the
cumulative persisting annual savings goal for | ||
the calendar
year that is the subject of the independent | ||
evaluator's
determination and the cumulative persisting | ||
annual savings
goal for the immediately preceding calendar | ||
year, as such
goals are defined in subsections (b-5) and | ||
(b-15) of this
Section and as these goals may have been | ||
modified as
provided for under subsection (b-20) and | ||
paragraphs (1)
through (3) of subsection (f) of this | ||
Section. Under
subsections (b), (b-5), (b-10), and (b-15) | ||
of this Section,
a utility must first replace energy | ||
savings from measures
that have expired reached the end of | ||
their measure lives and would
otherwise have to be |
replaced to meet the applicable
savings goals identified | ||
in subsection (b-5) or (b-15) of this Section before any | ||
progress towards achievement of its
applicable annual | ||
incremental goal may be counted. Savings may expire | ||
because measures installed in previous years have reached | ||
the end of their lives, because measures installed in | ||
previous years are producing lower savings in the current | ||
year than in the previous year, or for other reasons | ||
identified by independent evaluators.
Notwithstanding | ||
anything else set forth in this Section,
the difference | ||
between the actual annual incremental
savings achieved in | ||
any given year, including the
replacement of energy | ||
savings from measures that have
expired, and the | ||
applicable annual incremental goal shall
not affect | ||
adjustments to the return on equity for
subsequent | ||
calendar years under this subsection (g). | ||
In this Section, "applicable annual total savings | ||
requirement" means the total amount of new annual savings | ||
that the utility must achieve in any given year to achieve | ||
the applicable annual incremental goal. This is equal to | ||
the applicable annual incremental goal plus the total new | ||
annual savings that are required to replace savings that | ||
expired in or at the end of the previous year. | ||
(8) For electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State: |
(A) Through December 31, 2025, the applicable | ||
annual incremental goal shall be compared to the | ||
annual incremental savings as determined by the | ||
independent evaluator. | ||
(i) The return on equity component shall be | ||
reduced by 8 basis points for each percent by | ||
which the utility did not achieve 84.4% of the | ||
applicable annual incremental goal. | ||
(ii) The return on equity component shall be | ||
increased by 8 basis points for each percent by | ||
which the utility exceeded 100% of the applicable | ||
annual incremental goal. | ||
(iii) The return on equity component shall not | ||
be increased or decreased if the annual | ||
incremental savings as determined by the | ||
independent evaluator is greater than 84.4% of the | ||
applicable annual incremental goal and less than | ||
100% of the applicable annual incremental goal. | ||
(iv) The return on equity component shall not | ||
be increased or decreased by an amount greater | ||
than 200 basis points pursuant to this | ||
subparagraph (A). | ||
(B) For the period of January 1, 2026 through | ||
December 31, 2029 and in all subsequent 4-year periods | ||
2030 , the applicable annual incremental goal shall be | ||
compared to the annual incremental savings as |
determined by the independent evaluator. | ||
(i) The return on equity component shall be | ||
reduced by 6 basis points for each percent by | ||
which the utility did not achieve 100% of the | ||
applicable annual incremental goal. | ||
(ii) The return on equity component shall be | ||
increased by 6 basis points for each percent by | ||
which the utility exceeded 100% of the applicable | ||
annual incremental goal. | ||
(iii) The return on equity component shall not | ||
be increased or decreased by an amount greater | ||
than 200 basis points pursuant to this | ||
subparagraph (B). | ||
(C) Notwithstanding provisions in subparagraphs | ||
(A) and (B) of paragraph (7) of this subsection, if the | ||
applicable annual incremental goal for an electric | ||
utility is ever less than 0.6% of deemed average | ||
weather normalized sales of electric power and energy | ||
during calendar years 2014, 2015 and 2016, an | ||
adjustment to the return on equity component of the | ||
utility's weighted average cost of capital calculated | ||
under subsection (d) of this Section shall be made as | ||
follows: | ||
(i) The return on equity component shall be | ||
reduced by 8 basis points for each percent by | ||
which the utility did not achieve 100% of the |
applicable annual total savings requirement. | ||
(ii) The return on equity component shall be | ||
increased by 8 basis points for each percent by | ||
which the utility exceeded 100% of the applicable | ||
annual total savings requirement. | ||
(iii) The return on equity component shall not | ||
be increased or decreased by an amount greater | ||
than 200 basis points pursuant to this | ||
subparagraph (C). | ||
(D) (C) If the applicable annual incremental goal | ||
was reduced under paragraph paragraphs (1), (2) , or | ||
(3) , or (4) of subsection (f) of this Section, then the | ||
following adjustments shall be made to the | ||
calculations described in subparagraphs (A) , and (B) , | ||
and (C) of this paragraph (8): | ||
(i) The calculation for determining | ||
achievement that is at least 125% or 134%, as | ||
applicable, of the applicable annual incremental | ||
goal or the applicable annual total savings | ||
requirement, as applicable, shall use the | ||
unreduced applicable annual incremental goal to | ||
set the value. | ||
(ii) For the period through December 31, 2025, | ||
the calculation for determining achievement that | ||
is less than 125% but more than 100% of the | ||
applicable annual incremental goal or the |
applicable annual total savings requirement, as | ||
applicable, shall use the reduced applicable | ||
annual incremental goal to set the value for 100% | ||
achievement of the goal and shall use the | ||
unreduced goal to set the value for 125% | ||
achievement. The 8 basis point value shall also be | ||
modified, as necessary, so that the 200 basis | ||
points are evenly apportioned among each | ||
percentage point value between 100% and 125% | ||
achievement. | ||
(iii) For the period of January 1, 2026 | ||
through December 31, 2029 and all subsequent | ||
4-year periods, the calculation for determining | ||
achievement that is less than 125% or 134%, as | ||
applicable, but more than 100% of the applicable | ||
annual incremental goal or the applicable annual | ||
total savings requirement, as applicable, shall | ||
use the reduced applicable annual incremental goal | ||
to set the value for 100% achievement of the goal | ||
and shall use the unreduced goal to set the value | ||
for 125% achievement. The 6 basis-point value or 8 | ||
basis-point value, as applicable, shall also be | ||
modified, as necessary, so that the 200 basis | ||
points are evenly apportioned among each | ||
percentage point value between 100% and 125% or | ||
between 100% and 134% achievement, as applicable |
2030, the calculation for determining achievement | ||
that is less than 134% but more than 100% of the | ||
applicable annual incremental goal shall use the | ||
reduced applicable annual incremental goal to set | ||
the value for 100% achievement of the goal and | ||
shall use the unreduced goal to set the value for | ||
125% achievement. The 6 basis point value shall | ||
also be modified, as necessary, so that the 200 | ||
basis points are evenly apportioned among each | ||
percentage point value between 100% and 134% | ||
achievement . | ||
(9) The utility shall submit the energy savings data | ||
to the independent evaluator no later than 30 days after | ||
the close of the plan year. The independent evaluator | ||
shall determine the cumulative persisting annual savings | ||
for a given plan year , as well as an estimate of job | ||
impacts and other macroeconomic impacts of the efficiency | ||
programs for that year, no later than 120 days after the | ||
close of the plan year. The utility shall submit an | ||
informational filing to the Commission no later than 160 | ||
days after the close of the plan year that attaches the | ||
independent evaluator's final report identifying the | ||
cumulative persisting annual savings for the year and | ||
calculates, under paragraph (7) or (8) of this subsection | ||
(g), as applicable, any resulting change to the utility's | ||
return on equity component of the weighted average cost of |
capital applicable to the next plan year beginning with | ||
the January monthly billing period and extending through | ||
the December monthly billing period. However, if the | ||
utility recovers the costs incurred under this Section | ||
under paragraphs (2) and (3) of subsection (d) of this | ||
Section, then the utility shall not be required to submit | ||
such informational filing, and shall instead submit the | ||
information that would otherwise be included in the | ||
informational filing as part of its filing under paragraph | ||
(3) of such subsection (d) that is due on or before June 1 | ||
of each year. | ||
For those utilities that must submit the informational | ||
filing, the Commission may, on its own motion or by | ||
petition, initiate an investigation of such filing, | ||
provided, however, that the utility's proposed return on | ||
equity calculation shall be deemed the final, approved | ||
calculation on December 15 of the year in which it is filed | ||
unless the Commission enters an order on or before | ||
December 15, after notice and hearing, that modifies such | ||
calculation consistent with this Section. | ||
The adjustments to the return on equity component | ||
described in paragraphs (7) and (8) of this subsection (g) | ||
shall be applied as described in such paragraphs through a | ||
separate tariff mechanism, which shall be filed by the | ||
utility under subsections (f) and (g) of this Section. | ||
(9.5) The utility must demonstrate how it will ensure |
that program implementation contractors and energy | ||
efficiency installation vendors will promote workforce | ||
equity and quality jobs. | ||
(9.6) Utilities shall collect data necessary to ensure | ||
compliance with paragraph (9.5) no less than quarterly and | ||
shall communicate progress toward compliance with | ||
paragraph (9.5) to program implementation contractors and | ||
energy efficiency installation vendors no less than | ||
quarterly. Utilities shall work with relevant vendors, | ||
providing education, training, and other resources needed | ||
to ensure compliance and, where necessary, adjusting or | ||
terminating work with vendors that cannot assist with | ||
compliance. | ||
(10) Utilities required to implement efficiency | ||
programs under subsections (b-5) and (b-10) shall report | ||
annually to the Illinois Commerce Commission and the | ||
General Assembly on how hiring, contracting, job training, | ||
and other practices related to its energy efficiency | ||
programs enhance the diversity of vendors working on such | ||
programs. These reports must include data on vendor and | ||
employee diversity, including data on the implementation | ||
of paragraphs (9.5) and (9.6). If the utility is not | ||
meeting the requirements of paragraphs (9.5) and (9.6), | ||
the utility shall submit a plan to adjust their activities | ||
so that they meet the requirements of paragraphs (9.5) and | ||
(9.6) within the following year. |
(h) No more than 4% 6% of energy efficiency and | ||
demand-response program revenue may be allocated for research, | ||
development, or pilot deployment of new equipment or measures. | ||
Electric utilities shall work with interested stakeholders to | ||
formulate a plan for how these funds should be spent, | ||
incorporate statewide approaches for these allocations, and | ||
file a 4-year plan that demonstrates that collaboration. If a | ||
utility files a request for modified annual energy savings | ||
goals with the Commission, then a utility shall forgo spending | ||
portfolio dollars on research and development proposals.
| ||
(i) When practicable, electric utilities shall incorporate | ||
advanced metering infrastructure data into the planning, | ||
implementation, and evaluation of energy efficiency measures | ||
and programs, subject to the data privacy and confidentiality | ||
protections of applicable law. | ||
(j) The independent evaluator shall follow the guidelines | ||
and use the savings set forth in Commission-approved energy | ||
efficiency policy manuals and technical reference manuals, as | ||
each may be updated from time to time. Until such time as | ||
measure life values for energy efficiency measures implemented | ||
for low-income households under subsection (c) of this Section | ||
are incorporated into such Commission-approved manuals, the | ||
low-income measures shall have the same measure life values | ||
that are established for same measures implemented in | ||
households that are not low-income households. | ||
(k) Notwithstanding any provision of law to the contrary, |
an electric utility subject to the requirements of this | ||
Section may file a tariff cancelling an automatic adjustment | ||
clause tariff in effect under this Section or Section 8-103, | ||
which shall take effect no later than one business day after | ||
the date such tariff is filed. Thereafter, the utility shall | ||
be authorized to defer and recover its expenditures incurred | ||
under this Section through a new tariff authorized under | ||
subsection (d) of this Section or in the utility's next rate | ||
case under Article IX or Section 16-108.5 of this Act, with | ||
interest at an annual rate equal to the utility's weighted | ||
average cost of capital as approved by the Commission in such | ||
case. If the utility elects to file a new tariff under | ||
subsection (d) of this Section, the utility may file the | ||
tariff within 10 days after June 1, 2017 (the effective date of | ||
Public Act 99-906), and the cost inputs to such tariff shall be | ||
based on the projected costs to be incurred by the utility | ||
during the calendar year in which the new tariff is filed and | ||
that were not recovered under the tariff that was cancelled as | ||
provided for in this subsection. Such costs shall include | ||
those incurred or to be incurred by the utility under its | ||
multi-year plan approved under subsections (f) and (g) of this | ||
Section, including, but not limited to, projected capital | ||
investment costs and projected regulatory asset balances with | ||
correspondingly updated depreciation and amortization reserves | ||
and expense. The Commission shall, after notice and hearing, | ||
approve, or approve with modification, such tariff and cost |
inputs no later than 75 days after the utility filed the | ||
tariff, provided that such approval, or approval with | ||
modification, shall be consistent with the provisions of this | ||
Section to the extent they do not conflict with this | ||
subsection (k). The tariff approved by the Commission shall | ||
take effect no later than 5 days after the Commission enters | ||
its order approving the tariff. | ||
No later than 60 days after the effective date of the | ||
tariff cancelling the utility's automatic adjustment clause | ||
tariff, the utility shall file a reconciliation that | ||
reconciles the moneys collected under its automatic adjustment | ||
clause tariff with the costs incurred during the period | ||
beginning June 1, 2016 and ending on the date that the electric | ||
utility's automatic adjustment clause tariff was cancelled. In | ||
the event the reconciliation reflects an under-collection, the | ||
utility shall recover the costs as specified in this | ||
subsection (k). If the reconciliation reflects an | ||
over-collection, the utility shall apply the amount of such | ||
over-collection as a one-time credit to retail customers' | ||
bills. | ||
(l) For the calendar years covered by a multi-year plan
| ||
commencing after December 31, 2017, subsections (a) through
| ||
(j) of this Section do not apply to eligible large private
| ||
energy customers that have chosen to opt out of multi-year
| ||
plans consistent with this subsection
(1). | ||
(1) For purposes of this subsection (l), "eligible
|
large private energy customer" means any retail
customers, | ||
except for federal, State, municipal, and other
public | ||
customers, of an electric utility that serves more
than | ||
3,000,000 retail customers, except for federal,
State, | ||
municipal and other public customers, in the State
and | ||
whose total highest 30 minute demand was more than
10,000 | ||
kilowatts, or any retail customers of an electric
utility | ||
that serves less than 3,000,000 retail customers
but more | ||
than 500,000 retail customers in the State and
whose total | ||
highest 15 minute demand was more than 10,000
kilowatts. | ||
For purposes of this subsection (l), "retail
customer" has | ||
the meaning set forth in Section 16-102 of
this Act. | ||
However, for a business entity with multiple sites located | ||
in the State, where at least one of those sites qualifies | ||
as an eligible large private energy customer, then any of | ||
that business entity's sites, properly identified on a | ||
form for notice, shall be considered eligible large | ||
private energy customers for the purposes of this | ||
subsection (l). A determination of whether this subsection | ||
is
applicable to a customer shall be made for each | ||
multi-year
plan beginning after December 31, 2017. The | ||
criteria for
determining whether this subsection (l) is | ||
applicable to a
retail customer shall be based on the 12 | ||
consecutive
billing periods prior to the start of the | ||
first year of
each such multi-year plan. | ||
(2) Within 45 days after the effective date of this |
amendatory Act of the 102nd General Assembly, the | ||
Commission shall prescribe the form for notice
required | ||
for opting out of energy efficiency programs. The
notice | ||
must be submitted to the retail electric utility 12 months
| ||
before the next energy efficiency planning cycle. However, | ||
within 120 days after the Commission's initial issuance of | ||
the form for notice, eligible large private energy | ||
customers may submit a form for notice to an electric | ||
utility. The form for notice for opting out of energy | ||
efficiency programs shall
include all of the following: | ||
(A) a statement indicating that the customer has
| ||
elected to opt out; | ||
(B) the account numbers for the customer accounts | ||
to
which the opt out shall apply; | ||
(C) the mailing address associated with the
| ||
customer accounts identified under subparagraph (B); | ||
(D) an American Society of Heating, Refrigerating,
| ||
and Air-Conditioning Engineers (ASHRAE) level 2 or
| ||
higher audit report conducted by an independent | ||
third-party expert identifying cost-effective energy
| ||
efficiency project opportunities that could be
| ||
invested in over the next 10 years. A retail customer | ||
with specialized processes may utilize a self-audit | ||
process in lieu of the ASHRAE audit; | ||
(E) a description of the customer's plans to
| ||
reallocate the funds toward internal energy efficiency
|
efforts identified in the subparagraph (D) report,
| ||
including, but not limited to: (i) strategic energy
| ||
management or other programs, including descriptions
| ||
of targeted buildings, equipment and operations; (ii)
| ||
eligible energy efficiency measures; and (iii)
| ||
expected energy savings, itemized by technology. If | ||
the subparagraph (D) audit report identifies that the | ||
customer currently utilizes the best available energy | ||
efficient technology, equipment, programs, and | ||
operations, the customer may provide a statement that | ||
more efficient technology, equipment, programs, and | ||
operations are not reasonably available as a means of | ||
satisfying this subparagraph (E); and | ||
(F) the effective date of the opt out, which will
| ||
be the next January 1 following notice of the opt out. | ||
(3) Upon receipt of a properly and timely noticed
| ||
request for opt out submitted by an eligible large private
| ||
energy customer, the retail electric utility shall grant | ||
the
request, file the request with the Commission and,
| ||
beginning January 1 of the following year, the opted out
| ||
customer shall no longer be assessed the costs of the plan
| ||
and shall be prohibited from participating in that
4-year | ||
plan cycle to give the retail utility the
certainty to | ||
design program plan proposals. | ||
(4) Upon a customer's election to opt out under
| ||
paragraphs (1) and (2) of this subsection (l) and
|
commencing on the effective date of said opt out, the
| ||
account properly identified in the customer's notice under
| ||
paragraph (2) shall not be subject to any cost recovery
| ||
and shall not be eligible to participate in, or directly
| ||
benefit from, compliance with energy efficiency cumulative
| ||
persisting savings requirements under subsections (a)
| ||
through (j). | ||
(5) A utility's cumulative persisting annual savings
| ||
targets will exclude any opted out load. | ||
(6) The request to opt out is only valid for the
| ||
requested plan cycle. An eligible large private energy
| ||
customer must also request to opt out for future energy
| ||
plan cycles, otherwise the customer will be included in
| ||
the future energy plan cycle. For the calendar years | ||
covered by a multi-year plan commencing after December 31, | ||
2017, subsections (a) through (j) of this Section do not | ||
apply to any retail customers of an electric utility that | ||
serves more than 3,000,000 retail customers in the State | ||
and whose total highest 30 minute demand was more than | ||
10,000 kilowatts, or any retail customers of an electric | ||
utility that serves less than 3,000,000 retail customers | ||
but more than 500,000 retail customers in the State and | ||
whose total highest 15 minute demand was more than 10,000 | ||
kilowatts. For purposes of this subsection (l), "retail | ||
customer" has the meaning set forth in Section 16-102 of | ||
this Act. A determination of whether this subsection is |
applicable to a customer shall be made for each multi-year | ||
plan beginning after December 31, 2017. The criteria for | ||
determining whether this subsection (l) is applicable to a | ||
retail customer shall be based on the 12 consecutive | ||
billing periods prior to the start of the first year of | ||
each such multi-year plan. | ||
(m) Notwithstanding the requirements of this Section, as | ||
part of a proceeding to approve a multi-year plan under | ||
subsections (f) and (g) of this Section if the multi-year plan | ||
has been designed to maximize savings, but does not meet the | ||
cost cap limitations of this Section , the Commission shall | ||
reduce the amount of energy efficiency measures implemented | ||
for any single year, and whose costs are recovered under | ||
subsection (d) of this Section, by an amount necessary to | ||
limit the estimated average net increase due to the cost of the | ||
measures to no more than | ||
(1) 3.5% for each of the 4 years beginning January 1, | ||
2018, | ||
(2) (blank), 3.75% for each of the 4 years beginning | ||
January 1, 2022, and | ||
(3) 4% for each of the 4 5 years beginning January 1, | ||
2022 2026 , | ||
(4) 4.25% for the 4 years beginning January 1, 2026, | ||
and | ||
(5) 4.25% plus an increase sufficient to account for | ||
the rate of inflation between January 1, 2026 and January |
1 of the first year of each subsequent 4-year plan cycle, | ||
of the average amount paid per kilowatthour by residential | ||
eligible retail customers during calendar year 2015. An | ||
electric utility may plan to spend up to 10% more in any year | ||
during an applicable multi-year plan period to | ||
cost-effectively achieve additional savings so long as the | ||
average over the applicable multi-year plan period does not | ||
exceed the percentages defined in items (1) through (5). To | ||
determine the total amount that may be spent by an electric | ||
utility in any single year, the applicable percentage of the | ||
average amount paid per kilowatthour shall be multiplied by | ||
the total amount of energy delivered by such electric utility | ||
in the calendar year 2015, adjusted to reflect the proportion | ||
of the utility's load attributable to customers that have | ||
opted out of who are exempt from subsections (a) through (j) of | ||
this Section under subsection (l) of this Section. For | ||
purposes of this subsection (m), the amount paid per | ||
kilowatthour includes,
without limitation, estimated amounts | ||
paid for supply,
transmission, distribution, surcharges, and | ||
add-on taxes. For purposes of this Section, "eligible retail | ||
customers" shall have the meaning set forth in Section | ||
16-111.5 of this Act. Once the Commission has approved a plan | ||
under subsections (f) and (g) of this Section, no subsequent | ||
rate impact determinations shall be made. | ||
(n) A utility shall take advantage of the efficiencies | ||
available through existing Illinois Home Weatherization |
Assistance Program infrastructure and services, such as | ||
enrollment, marketing, quality assurance and implementation, | ||
which can reduce the need for similar services at a lower cost | ||
than utility-only programs, subject to capacity constraints at | ||
community action agencies, for both single-family and | ||
multifamily weatherization services, to the extent Illinois | ||
Home Weatherization Assistance Program community action | ||
agencies provide multifamily services. A utility's plan shall | ||
demonstrate that in formulating annual weatherization budgets, | ||
it has sought input and coordination with community action | ||
agencies regarding agencies' capacity to expand and maximize | ||
Illinois Home Weatherization Assistance Program delivery using | ||
the ratepayer dollars collected under this Section.
| ||
(Source: P.A. 100-840, eff. 8-13-18; 101-81, eff. 7-12-19.) | ||
(220 ILCS 5/8-201.7 new) | ||
Sec. 8-201.7. Prohibition on deposits for low-income | ||
residential customers or applicants. | ||
(a) On and after the effective date of this amendatory Act | ||
of the 102nd General Assembly, no electric or gas utility | ||
shall, as a condition for standard service, require a | ||
low-income residential customer or applicant to provide a | ||
deposit as security against potential non-payment for service | ||
except when the utility has proof that the customer engaged in | ||
tampering of the electric or gas utility equipment during the | ||
previous 5 years. Within 60 days after the effective date of |
this amendatory Act of the 102nd General Assembly, such | ||
utility shall refund all deposits collected from low-income | ||
customers as security against potential nonpayment for | ||
standard service to such residential customers except when the | ||
utility has proof that the customer benefited from tampering. | ||
Proof that the customer for whom the deposit is being required | ||
engaged in tampering shall be the burden of the utility and the | ||
utility shall provide the customer the opportunity to contest | ||
the finding that the customer engaged in tampering. | ||
(b) As used in this Section: | ||
"Low-income residential customer or applicant" means: (i) | ||
a member of a household at or below 80% of the latest median | ||
household income as reported by the United States Census | ||
Bureau for the most applicable community or county; (ii) a | ||
member of a household at or below 150% of the federal poverty | ||
level; (iii) a person who is eligible for the Illinois Low | ||
Income Home Energy Assistance Program (LIHEAP) as defined in | ||
the Energy Assistance Act; (iv) a person who is eligible to | ||
participate in the Percentage of Income Payment Plan (PIPP or | ||
PIP Plan) as defined in the Energy Assistance Act; or (v) a | ||
person who is eligible to receive Lifeline service as defined | ||
in the Universal Service Telephone Service Protection Law of | ||
1985. | ||
"Tampering" means any unauthorized alteration of electric | ||
or gas utility equipment or facilities by which a benefit is | ||
achieved for which the utility is not compensated, including |
customer self-restoration of utility service. | ||
(220 ILCS 5/8-201.8 new) | ||
Sec. 8-201.8. Prohibition on late payment fees for | ||
low-income residential customers or applicants. | ||
(a) Notwithstanding any other provision of this Act, as of | ||
the effective date of this amendatory Act of the 102nd General | ||
Assembly, an electric utility shall not charge a low-income | ||
residential customer or applicant a fee, charge, or penalty | ||
for late payment of any utility bill or invoice. | ||
Notwithstanding any other provision of this Act, as of January | ||
1, 2023, a natural gas utility shall not charge a low-income | ||
residential customer or applicant a fee, charge, or penalty | ||
for late payment of any utility bill or invoice. | ||
(b) As used in this Section, "low-income residential | ||
customer or applicant" means: (i) a member of a household at or | ||
below 80% of the latest median household income as reported by | ||
the United States Census Bureau for the most applicable | ||
community or county; (ii) a member of a household at or below | ||
150% of the federal poverty level; (iii) a person who is | ||
eligible for the Illinois Low Income Home Energy Assistance | ||
Program (LIHEAP) as defined in the Energy Assistance Act; (iv) | ||
a person who is eligible to participate in the Percentage of | ||
Income Payment Plan (PIPP or PIP Plan) as defined in the Energy | ||
Assistance Act; or (v) a person who is eligible to receive | ||
Lifeline service as defined in the Universal Service Telephone |
Service Protection Law of 1985. | ||
(220 ILCS 5/8-201.9 new) | ||
Sec. 8-201.9. Prohibition on credit card convenience fees. | ||
(a) No electric or natural gas utility shall assess any | ||
convenience fee, surcharge, or other fee to any customer who | ||
elects to pay for service using a credit card that the electric | ||
or natural gas utility would not assess to the customer if the | ||
customer paid by other available methods acceptable to the | ||
utility. The Commission may consider as an operating expense, | ||
for the purpose of determining whether a rate or other charge | ||
or classification is sufficient, costs incurred by a utility | ||
to process payments described in this Section so long as those | ||
costs are determined to be prudent, just, and reasonable. | ||
(b) As used in this Section, "credit card" means an | ||
instrument or device, whether known as a credit card, bank | ||
card, charge card, debit card, automated teller machine card, | ||
secured credit card, smart card, electronic purse, prepaid | ||
card, affinity card, or by any other name, issued with or | ||
without fee by an issuer for the use of the holder to obtain | ||
credit, money, goods, services, or anything else of value. | ||
(220 ILCS 5/8-201.10 new) | ||
Sec. 8-201.10. Disconnection and credit and collections | ||
reporting. | ||
(a) The Commission shall require all gas, electric, water |
and sewer public utilities under its authority to submit an | ||
annual report by May 1, 2022 and every May 1 thereafter, | ||
reporting and making publicly available in executable, | ||
electronic spreadsheet format, by zip code, on the number of | ||
disconnections for nonpayment and reconnections that occurred | ||
in the immediately preceding calendar year, as identified in | ||
subsection (b). | ||
(b) Each such public utility shall report to the | ||
Commission by the 15th day of each month and make publicly | ||
available in executable, electronic spreadsheet format the | ||
following information, by zip code, for the immediately | ||
preceding month: | ||
(1) the number of customers, by customer class and | ||
type of utility service provided, during each month; | ||
(2) the number of customers, by customer class and | ||
type of utility service, receiving disconnection notices | ||
during each month; | ||
(3) the number of customers, by customer class and | ||
type of utility service, disconnected for nonpayment | ||
during each month; | ||
(4) the number of customers, by customer class and | ||
type of utility service, reconnected because they have | ||
paid in full or set up payment arrangements during each | ||
month; | ||
(5) the number of new deferred payment agreements, by | ||
customer class and type of utility service, each month; |
(6) the number of customers, by customer class and | ||
type of utility service, taking service at the beginning | ||
of the month under existing deferred payment arrangements; | ||
(7) the number of customers, by customer class and | ||
type of utility service, completing deferred payment | ||
arrangements during the month; | ||
(8) the number of payment agreements, by customer | ||
class and type of utility service, that failed during each | ||
month; | ||
(9) the number of customers, by customer class and | ||
type of utility service, renegotiating deferred payment | ||
arrangements during the month; | ||
(10) the number of customers, by customer class and | ||
type of utility service, assessed late payment fees or | ||
charges during the month; | ||
(11) the number of customers, by customer class and | ||
type of utility service, taking service at the beginning | ||
of the month under existing medical payment arrangements; | ||
(12) the number of customers, by utility service, | ||
completing medical payment arrangements during the month; | ||
(13) the number of customers, by utility service, | ||
enrolling in new medical payment arrangements during the | ||
month; | ||
(14) the number of customers, by utility service, | ||
renegotiating medical payment arrangements plans during | ||
the month; |
(15) the number of customers, by customer class and | ||
utility service, with required deposits with the company | ||
at the beginning of the month; | ||
(16) the number of customers, by customer class and | ||
utility service, required to submit new deposits or | ||
increased deposits during the month; | ||
(17) the number of customers, by customer class and | ||
utility service, whose required deposits were reduced in | ||
part or forgone during the month; | ||
(18) the number of customers, by customer class and | ||
utility service, whose deposits were returned in full | ||
during the month; | ||
(19) the number of customers, by customer class and | ||
utility service, with past due amounts greater than 30 | ||
days past due at the beginning of the month and taking | ||
service at the beginning of the month under existing | ||
deferred payment arrangements; | ||
(20) the dollar volume of past due accounts, by | ||
customer class and utility service, for customers with | ||
past due amounts greater than 30 days past due at the | ||
beginning of the month and taking service at the beginning | ||
of the month under existing deferred payment arrangements; | ||
(21) the number of customers, by customer class and | ||
utility service, with past due amounts greater than 30 | ||
days past due at the beginning of the month and not taking | ||
service at the beginning of the month under existing |
deferred payment arrangements; and | ||
(22) the dollar volume of past due accounts, by | ||
customer class and utility service, for customers with | ||
past due amounts greater than 30 days past due at the | ||
beginning of the month and not taking service at the | ||
beginning of the month under existing deferred payment | ||
arrangements. | ||
(c) The Commission may specify the executable, electronic | ||
spreadsheet format that utilities must adhere to when | ||
submitting the information required by this Section. | ||
Notwithstanding the requirements of this Section, the | ||
Commission may establish an online reporting system and | ||
require each public utility to report using the online | ||
reporting system instead of filing information in executable, | ||
electronic spreadsheet format. The Commission shall make each | ||
monthly report submitted by each public utility publicly | ||
available on its website within 30 days of receipt. | ||
(220 ILCS 5/8-218 new) | ||
Sec. 8-218. Utility-scale pilot projects. | ||
(a) Electric utilities serving greater than 500,000 | ||
customers but less than 3,000,000 customers may propose, plan | ||
for, construct, install, control, own, manage, or operate up | ||
to 2 pilot projects consisting of utility-scale photovoltaic | ||
energy generation facilities. Energy storage facilities that | ||
are planned for, constructed, installed, controlled, owned, |
managed, or operated may be constructed in connection with the | ||
photovoltaic electricity generation pilot projects. | ||
(b) Pilot projects shall be sited in equity investment | ||
eligible communities in or near the towns of Peoria and East | ||
St. Louis and must result in economic benefits for the members | ||
of the communities in which the project will be located. The | ||
amount paid per pilot project with or without energy storage | ||
facilities cannot exceed $20,000,000. The electric utility's | ||
costs of planning for, constructing, installing, controlling, | ||
owning, managing, or operating the photovoltaic electricity | ||
generation facilities and energy storage facilities may be | ||
recovered, on a kilowatt hour basis, via an automatic | ||
adjustment clause tariff applicable to all retail customers, | ||
with the tariff to be approved by the Commission after | ||
opportunity for review, and with an annual reconciliation | ||
component; and for purposes of cost recovery, the photovoltaic | ||
electricity production facilities may be treated as regulatory | ||
assets, using the same ratemaking treatment in paragraph (1) | ||
of subsection (h) of Section 16-107.6 of this Act, provided: | ||
(1) the Commission shall have the authority to determine the | ||
reasonableness of the costs of the facilities, and (2) any | ||
monetary value of power and energy from the facilities shall | ||
be credited against the delivery services revenue requirement. | ||
(c) Any electric utility seeking to propose, plan for, | ||
construct, install, control, own, manage, or operate a pilot | ||
project pursuant to this Section must commit to using a |
diverse and equitable workforce and a diverse set of | ||
contractors, including minority-owned businesses, | ||
disadvantaged businesses, trade unions, graduates of any | ||
workforce training programs established by this amendatory Act | ||
of the 102nd General Assembly, and small businesses. An | ||
electric utility must comply with the equity commitment | ||
requirements in subsection (c-10) of Section 1-75 of the | ||
Illinois Power Agency Act. The electric utility must certify | ||
that not less than the prevailing wage will be paid to | ||
employees engaged in construction activities associated with | ||
the pilot project. The electric utility must file a project | ||
labor agreement, as defined in the Illinois Power Agency Act, | ||
with the Commission prior to constructing, installing, | ||
controlling, or owning a pilot project authorized by this | ||
Section. | ||
(220 ILCS 5/8-402.2 new) | ||
Sec. 8-402.2. Public Schools Carbon-Free Assessment | ||
programs. | ||
(a) Within one year after the effective date of this | ||
amendatory
Act of the 102nd General Assembly, each electric | ||
utility serving over
500,000 retail customers in this State | ||
shall implement a Public
Schools Carbon-Free Assessment | ||
program. | ||
(b) Each utility's Public Schools Carbon-Free Assessment | ||
program
shall include the following requirements: |
(1) Each plan shall be designed to offer within the
| ||
utility's service territory to assist public schools, as | ||
defined
by Section 1-3 of the School Code, to increase the | ||
efficiency of
their energy usage, to reduce the carbon | ||
emissions associated
with their energy usage, and to move | ||
toward a goal of public
schools being carbon-free in their | ||
energy usage by 2030. The
program shall include a target | ||
of completing Public Schools
Carbon-Free Assessment for | ||
all public schools in the utility's
service territory by | ||
December 31, 2029. | ||
(2) The Public Schools Carbon-Free Assessment shall be | ||
a
generally standardized assessment, but may incorporate | ||
flexibility
to reflect the circumstances of individual | ||
public schools and
public school districts. | ||
(3) The Public Schools Carbon-Free Assessment shall
| ||
include, but not be limited to, comprehensive analyses of | ||
the
following subjects: | ||
(A) The top energy efficiency savings | ||
opportunities
for the public school, by energy saved; | ||
(B) The total achievable solar energy potential on | ||
or
nearby a public school's premises and able to | ||
provide power
to a school; | ||
(C) The infrastructure required to support
| ||
electrification of the facility's space heating and | ||
water
heating needs; | ||
(D) The infrastructure requirements to support
|
electrification of a school's transportation needs; | ||
and | ||
(E) The investments required to achieve a WELL
| ||
Certification or similar certification as determined
| ||
through methods developed and updated by the | ||
International
WELL Building Institute or similar or | ||
successor
organizations. | ||
(4) The Public Schools Carbon-Free Assessment also | ||
shall
include, but not be limited to, mechanical | ||
insulation evaluation
inspection and inspection of the | ||
building envelope(s). | ||
(5) With respect to those public school construction
| ||
projects for public schools within the service territory | ||
of a
utility serving over 500,000 retail customers in this | ||
State and
for which a public school district applies for a | ||
grant under
Section 5-40 of the School Construction Law on | ||
or after June 1,
2023, the district must submit a copy of | ||
the applicable Public
Schools Carbon-Free Assessment | ||
report, or, if no such Public
Schools Carbon-Free | ||
Assessment has been performed, request the
applicable | ||
utility to perform such a Public Schools Carbon-Free
| ||
Assessment and submit a copy of the Public Schools | ||
Carbon-Free
Assessment report promptly when it becomes | ||
available. The Public Schools Carbon-Free Assessment | ||
report shall include, but not limited to, an energy audit | ||
of both the building envelope and the building's |
mechanical insulation system. It shall also include an | ||
inspection of both the building envelope and the | ||
mechanical insulation system. The district must | ||
demonstrate how the construction
project is designed and | ||
managed to achieve the goals that all
public elementary | ||
and secondary school facilities in the State
are able to | ||
be powered by clean energy by 2030, and for such
| ||
facilities to achieve carbon-free energy sources for space | ||
heat,
water heat, and transportation by 2050. | ||
(6) The results of each Public Schools Carbon-Free
| ||
Assessment shall be memorialized by the utility or by a | ||
third
party acting on behalf of the utility in a usable | ||
report form and
shall be provided to the applicable public | ||
school. Each utility
shall be required to retain a copy of | ||
each Public Schools
Carbon-Free Assessment report and to | ||
provide confidential copies
of each report to the Illinois | ||
Power Agency and the Illinois
Capital Development Board | ||
within 3 months of its completion. | ||
(7) The Public Schools Carbon-Free Assessment shall be
| ||
conducted in coordination with each utility's energy | ||
efficiency
and demand-response plans under Sections 8-103, | ||
8-103A, and
8-103B of this Act, to the extent applicable. | ||
Nothing in this
Section is intended to modify or require | ||
modification of those
plans. However, the utility may | ||
request a modification of a plan
approved by the | ||
Commission, and the Commission may approve the
requested |
modification, if the modification is consistent with
the | ||
provisions of this Section and Section 8-103B of this Act. | ||
(8) If there are no other providers of assessments | ||
that are
substantively the same as those being performed | ||
by utilities
pursuant to this Section by 2024, a utility | ||
that has a Public
Schools Carbon-Free Assessment program | ||
may offer assessments to
public schools that are not | ||
served by a utility subject to this
Section at the | ||
utility's cost. | ||
(9) The Public Schools Carbon-Free Assessment shall be
| ||
offered to and performed for public schools in the | ||
utility's
service territory on a complimentary basis by | ||
each utility, with
no Assessment fee charged to the public | ||
schools for the
Assessments. Nothing in this Section is | ||
intended to prohibit the
utility from recovering through | ||
rates approved by the Commission
the utility's prudent and | ||
reasonable costs of complying with this
Section. | ||
(10) Utilities shall make efforts to prioritize the
| ||
completion of Public Schools Carbon-Free Assessments for | ||
the
following school districts by December 31, 2022: East | ||
St. Louis
School District 189, Harvey School District 152, | ||
Thornton
Township High School District 205. | ||
(220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406) | ||
Sec. 8-406. Certificate of public convenience and | ||
necessity. |
(a) No public utility not owning any city or village
| ||
franchise nor engaged in performing any public service or in | ||
furnishing any
product or commodity within this State as of | ||
July 1, 1921 and not
possessing a certificate of
public | ||
convenience and necessity from the Illinois Commerce | ||
Commission,
the State Public Utilities Commission or
the | ||
Public Utilities Commission, at the time this amendatory Act | ||
of 1985 goes
into effect, shall transact any business in this | ||
State until it shall have
obtained a certificate from the | ||
Commission that public convenience and
necessity require the | ||
transaction of such business. | ||
(b) No public utility shall begin the construction of any | ||
new plant,
equipment, property or facility which is not in | ||
substitution of any
existing plant, equipment, property or | ||
facility or any extension or
alteration thereof or in addition | ||
thereto,
unless and until it shall have obtained from the
| ||
Commission a certificate that public convenience and necessity | ||
require such
construction. Whenever after a hearing the | ||
Commission determines that any
new construction or the | ||
transaction of any business by a public utility will
promote | ||
the public convenience and is necessary thereto, it shall have | ||
the
power to issue certificates of public convenience and | ||
necessity. The
Commission shall determine that proposed | ||
construction will promote the
public convenience and necessity | ||
only if the utility demonstrates: (1) that the
proposed | ||
construction is necessary to provide adequate, reliable, and
|
efficient service to its customers and is the
least-cost means | ||
of
satisfying the service needs of its customers or that the | ||
proposed construction will promote the development of an | ||
effectively competitive electricity market that operates | ||
efficiently, is equitable to all customers, and is the least | ||
cost means of satisfying those objectives;
(2) that the | ||
utility is capable of efficiently managing and
supervising the | ||
construction process and has taken sufficient action to
ensure | ||
adequate and efficient construction and supervision thereof; | ||
and (3)
that the utility is capable of financing the proposed | ||
construction without
significant adverse financial | ||
consequences for the utility or its
customers. | ||
(b-5) As used in this subsection (b-5): | ||
"Qualifying direct current applicant" means an entity that | ||
seeks to provide direct current bulk transmission service for | ||
the purpose of transporting electric energy in interstate | ||
commerce. | ||
"Qualifying direct current project" means a high voltage | ||
direct current electric service line that crosses at least one | ||
Illinois border, the Illinois portion of which is physically | ||
located within the region of the Midcontinent Independent | ||
System Operator, Inc., or its successor organization, and runs | ||
through the counties of Pike, Scott, Greene, Macoupin, | ||
Montgomery, Christian, Shelby, Cumberland, and Clark, is | ||
capable of transmitting electricity at voltages of 345kv or | ||
above, and may also include associated interconnected |
alternating current interconnection facilities in this State | ||
that are part of the proposed project and reasonably necessary | ||
to connect the project with other portions of the grid. | ||
Notwithstanding any other provision of this Act, a | ||
qualifying direct current applicant that does not own, | ||
control, operate, or manage, within this State, any plant, | ||
equipment, or property used or to be used for the transmission | ||
of electricity at the time of its application or of the | ||
Commission's order may file an application on or before | ||
December 31, 2023 with the Commission pursuant to this Section | ||
or Section 8-406.1 for, and the Commission may grant, a | ||
certificate of public convenience and necessity to construct, | ||
operate, and maintain a qualifying direct current project. The | ||
qualifying direct current applicant may also include in the | ||
application requests for authority under Section 8-503. The | ||
Commission shall grant the application for a certificate of | ||
public convenience and necessity and requests for authority | ||
under Section 8-503 if it finds that the qualifying direct | ||
current applicant and the proposed qualifying direct current | ||
project satisfy the requirements of this subsection and | ||
otherwise satisfy the criteria of this Section or Section | ||
8-406.1 and the criteria of Section 8-503, as applicable to | ||
the application and to the extent such criteria are not | ||
superseded by the provisions of this subsection. The | ||
Commission's order on the application for the certificate of | ||
public convenience and necessity shall also include the |
Commission's findings and determinations on the request or | ||
requests for authority pursuant to Section 8-503. Prior to | ||
filing its application under either this Section or Section | ||
8-406.1, the qualifying direct current applicant shall conduct | ||
3 public meetings in accordance with subsection (h) of this | ||
Section. If the qualifying direct current applicant | ||
demonstrates in its application that the proposed qualifying | ||
direct current project is designed to deliver electricity to a | ||
point or points on the electric transmission grid in either or | ||
both the PJM Interconnection, LLC or the Midcontinent | ||
Independent System Operator, Inc., or their respective | ||
successor organizations, the proposed qualifying direct | ||
current project shall be deemed to be, and the Commission | ||
shall find it to be, for public use. If the qualifying direct | ||
current applicant further demonstrates in its application that | ||
the proposed transmission project has a capacity of 1,000 | ||
megawatts or larger and a voltage level of 345 kilovolts or | ||
greater, the proposed transmission project shall be deemed to | ||
satisfy, and the Commission shall find that it satisfies, the | ||
criteria stated in item (1) of subsection (b) of this Section | ||
or in paragraph (1) of subsection (f) of Section 8-406.1, as | ||
applicable to the application, without the taking of | ||
additional evidence on these criteria. Prior to the transfer | ||
of functional control of any transmission assets to a regional | ||
transmission organization, a qualifying direct current | ||
applicant shall request Commission approval to join a regional |
transmission organization in an application filed pursuant to | ||
this subsection (b-5) or separately pursuant to Section 7-102 | ||
of this Act. The Commission may grant permission to a | ||
qualifying direct current applicant to join a regional | ||
transmission organization if it finds that the membership, and | ||
associated transfer of functional control of transmission | ||
assets, benefits Illinois customers in light of the attendant | ||
costs and is otherwise in the public interest. Nothing in this | ||
subsection (b-5) requires a qualifying direct current | ||
applicant to join a regional transmission organization. | ||
Nothing in this subsection (b-5) requires the owner or | ||
operator of a high voltage direct current transmission line | ||
that is not a qualifying direct current project to obtain a | ||
certificate of public convenience and necessity to the extent | ||
it is not otherwise required by this Section 8-406 or any other | ||
provision of this Act. | ||
(c) After the effective date of this amendatory Act of | ||
1987, no
construction shall commence on any new nuclear
power | ||
plant to be located within this State, and no certificate of | ||
public
convenience and necessity or other authorization shall | ||
be issued therefor
by the Commission, until the Director of | ||
the Illinois Environmental
Protection Agency finds that the | ||
United States Government, through its
authorized agency, has | ||
identified and approved a demonstrable technology or
means for | ||
the disposal of high level nuclear waste, or until such
| ||
construction has been specifically approved by a statute |
enacted by the General
Assembly. | ||
As used in this Section, "high level nuclear waste" means | ||
those aqueous
wastes resulting from the operation of the first | ||
cycle of the solvent
extraction system or equivalent and the | ||
concentrated wastes of the
subsequent extraction cycles or | ||
equivalent in a facility for reprocessing
irradiated reactor | ||
fuel and shall include spent fuel assemblies prior to
fuel | ||
reprocessing. | ||
(d) In making its determination, the Commission shall | ||
attach primary
weight to the cost or cost savings to the | ||
customers of the utility. The
Commission may consider any or | ||
all factors which will or may affect such
cost or cost savings, | ||
including the public utility's engineering judgment regarding | ||
the materials used for construction. | ||
(e) The Commission may issue a temporary certificate which | ||
shall remain
in force not to exceed one year in cases of | ||
emergency, to assure maintenance
of adequate service or to | ||
serve particular customers, without notice or
hearing, pending | ||
the determination of an application for a certificate, and
may | ||
by regulation exempt from the requirements of this Section | ||
temporary
acts or operations for which the issuance of a | ||
certificate will not be
required in the public interest. | ||
A public utility shall not be required to obtain but may | ||
apply for and
obtain a certificate of public convenience and | ||
necessity pursuant to this
Section with respect to any matter | ||
as to which it has received the
authorization or order of the |
Commission under the Electric Supplier Act,
and any such | ||
authorization or order granted a public utility by the
| ||
Commission under that Act shall as between public utilities be | ||
deemed to
be, and shall have except as provided in that Act the | ||
same force and effect
as, a certificate of public convenience | ||
and necessity issued pursuant to this
Section. | ||
No electric cooperative shall be made or shall become a | ||
party to or shall
be entitled to be heard or to otherwise | ||
appear or participate in any
proceeding initiated under this | ||
Section for authorization of power plant
construction and as | ||
to matters as to which a remedy is available under The
Electric | ||
Supplier Act. | ||
(f) Such certificates may be altered or modified by the | ||
Commission, upon
its own motion or upon application by the | ||
person or corporation affected.
Unless exercised within a | ||
period of 2 years from the grant thereof
authority conferred | ||
by a certificate of convenience and necessity issued by
the | ||
Commission shall be null and void. | ||
No certificate of public convenience and necessity shall | ||
be construed as
granting a monopoly or an exclusive privilege, | ||
immunity or franchise. | ||
(g) A public utility that undertakes any of the actions | ||
described in items (1) through (3) of this subsection (g) or | ||
that has obtained approval pursuant to Section 8-406.1 of this | ||
Act shall not be required to comply with the requirements of | ||
this Section to the extent such requirements otherwise would |
apply. For purposes of this Section and Section 8-406.1 of | ||
this Act, "high voltage electric service line" means an | ||
electric line having a design voltage of 100,000 or more. For | ||
purposes of this subsection (g), a public utility may do any of | ||
the following: | ||
(1) replace or upgrade any existing high voltage | ||
electric service line and related facilities, | ||
notwithstanding its length; | ||
(2) relocate any existing high voltage electric | ||
service line and related facilities, notwithstanding its | ||
length, to accommodate construction or expansion of a | ||
roadway or other transportation infrastructure; or | ||
(3) construct a high voltage electric service line and | ||
related facilities that is constructed solely to serve a | ||
single customer's premises or to provide a generator | ||
interconnection to the public utility's transmission | ||
system and that will pass under or over the premises owned | ||
by the customer or generator to be served or under or over | ||
premises for which the customer or generator has secured | ||
the necessary right of way. | ||
(h) A public utility seeking to construct a high-voltage | ||
electric service line and related facilities (Project) must | ||
show that the utility has held a minimum of 2 pre-filing public | ||
meetings to receive public comment concerning the Project in | ||
each county where the Project is to be located, no earlier than | ||
6 months prior to filing an application for a certificate of |
public convenience and necessity from the Commission. Notice | ||
of the public meeting shall be published in a newspaper of | ||
general circulation within the affected county once a week for | ||
3 consecutive weeks, beginning no earlier than one month prior | ||
to the first public meeting. If the Project traverses 2 | ||
contiguous counties and where in one county the transmission | ||
line mileage and number of landowners over whose property the | ||
proposed route traverses is one-fifth or less of the | ||
transmission line mileage and number of such landowners of the | ||
other county, then the utility may combine the 2 pre-filing | ||
meetings in the county with the greater transmission line | ||
mileage and affected landowners. All other requirements | ||
regarding pre-filing meetings shall apply in both counties. | ||
Notice of the public meeting, including a description of the | ||
Project, must be provided in writing to the clerk of each | ||
county where the Project is to be located. A representative of | ||
the Commission shall be invited to each pre-filing public | ||
meeting. | ||
(i) For applications filed after the effective date of | ||
this amendatory Act of the 99th General Assembly, the | ||
Commission shall by registered mail notify each owner of | ||
record of land, as identified in the records of the relevant | ||
county tax assessor, included in the right-of-way over which | ||
the utility seeks in its application to construct a | ||
high-voltage electric line of the time and place scheduled for | ||
the initial hearing on the public utility's application. The |
utility shall reimburse the Commission for the cost of the | ||
postage and supplies incurred for mailing the notice. | ||
(Source: P.A. 99-399, eff. 8-18-15.) | ||
(220 ILCS 5/8-512 new) | ||
Sec. 8-512. Renewable energy access plan. | ||
(a) It is the policy of this State to promote | ||
cost-effective transmission system development that ensures | ||
reliability of the electric transmission system, lowers carbon | ||
emissions, minimizes long-term costs for consumers, and | ||
supports the electric policy goals of this State. The General | ||
Assembly finds that: | ||
(1) Transmission planning, primarily for reliability | ||
purposes, but also for economic and public policy reasons | ||
is conducted by regional transmission organizations in | ||
which transmission-owning Illinois utilities and other | ||
stakeholders are members. | ||
(2) Order No. 1000 of the Federal Energy Regulatory | ||
Commission requires regional transmission organizations to | ||
plan for transmission system needs in light of State | ||
public policies and to accept input from states during the | ||
transmission system planning processes. | ||
(3) The State of Illinois does not currently have a | ||
comprehensive power and environmental policy planning | ||
process to identify transmission infrastructure needs that
| ||
can serve as a vital input into the regional and |
interregional transmission organization planning | ||
processes conducted under Order No. 1000 and other laws | ||
and regulations. | ||
(4) This State is an electricity generation and power | ||
transmission hub, and can leverage that position to invest | ||
in infrastructure that enables new and existing Illinois
| ||
generators to meet the public policy goals of the State of | ||
Illinois and of interconnected states while | ||
cost-effectively supporting tens of thousands of jobs in | ||
the renewable energy sector in this State. | ||
(5) The nation has a need to readily access this | ||
State's low-cost, clean electric power, and this State | ||
also desires access to clean energy resources in other | ||
states to develop and support its low-carbon economy and | ||
keep electricity prices low in Illinois and interconnected | ||
States. | ||
(6) Existing transmission infrastructure may constrain | ||
the State's achievement of 100% renewable energy by 2050, | ||
the accelerated adoption of electric vehicles in a just
| ||
and equitable way, and electrification of additional | ||
sectors of the Illinois economy. | ||
(7) Transmission system congestion within this State | ||
and the regional transmission organizations serving this | ||
State limits the ability of this State's existing and new | ||
electric generation facilities that do not emit carbon | ||
dioxide, including renewable energy resources and zero |
emission facilities, to serve the public policy goals of | ||
this State and other states, which constrains investment | ||
in this State. | ||
(8) Investment in infrastructure to support existing | ||
and new electric generation facilities that do not emit | ||
carbon dioxide, including renewable energy resources and
| ||
zero emission facilities, stimulates significant economic | ||
development and job growth in this State, as well as | ||
creates environmental and public health benefits in this | ||
State. | ||
(9) Creating a forward-looking plan for this State's | ||
electric transmission infrastructure, as opposed to | ||
relying on case-by-case development and repeated marginal | ||
upgrades, will achieve a lower-cost system for Illinois' | ||
electricity customers. A forward-looking plan can also | ||
help integrate and achieve a comprehensive set of | ||
objectives and multiple state, regional, and national | ||
policy goals. | ||
(10) Alternatives to overhead electric transmission | ||
lines can achieve cost-effective resolution of system | ||
impacts and warrant investigation of the circumstances | ||
under which those alternatives should be considered and | ||
approved. The alternatives are likely to be beneficial as | ||
investment in electric transmission infrastructure moves | ||
forward. | ||
(11) Because transmission planning is conducted |
primarily by the regional transmission organizations, the | ||
Commission should be advocating for the State's interests | ||
at the regional transmission organizations to ensure that | ||
such planning facilitates the State's policies and goals, | ||
including overall consumer savings, power system | ||
reliability, economic development, environmental | ||
improvement, and carbon reduction. | ||
(b) Consistent with the findings identified in subsection | ||
(a), the Commission shall open an investigation to develop and | ||
adopt a renewable energy access plan no later than December
| ||
31, 2022. To assist and support the Commission in the | ||
development of the plan, the Commission shall retain the | ||
services of technical and policy experts with relevant fields
| ||
of expertise, solicit technical and policy analysis from the | ||
public, and provide for a 120-day open public comment period | ||
after publication of a draft report, which shall be published | ||
no later than 90 days after the comment period ends. The plan | ||
shall, at a minimum, do the following: | ||
(1) designate renewable energy access plan zones | ||
throughout this State in areas in which renewable energy | ||
resources and suitable land areas are sufficient for | ||
developing generating capacity from renewable energy | ||
technologies; | ||
(2) develop a plan to achieve transmission capacity | ||
necessary to deliver the electric output from renewable | ||
energy technologies in the renewable energy access plan |
zones to customers in Illinois and other states in a | ||
manner that is most beneficial and cost-effective to | ||
customers; | ||
(3) use this State's position as an electricity | ||
generation and power transmission hub to create new | ||
investment in this State's renewable energy resources; | ||
(4) consider programs, policies, and electric | ||
transmission projects that can be adopted within this | ||
State that promote the cost-effective delivery of power | ||
from renewable energy resources interconnected to the bulk | ||
electric system to meet the renewable portfolio standard | ||
targets under subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act; | ||
(5) consider proposals to improve regional | ||
transmission organizations' regional and interregional | ||
system planning processes, especially proposals that | ||
reduce costs and emissions, create jobs, and increase | ||
State and regional power system reliability to prevent | ||
high-cost outages that can endanger lives, and analyze of | ||
how those proposals would improve reliability and | ||
cost-effective delivery of electricity in Illinois and the | ||
region; | ||
(6) make findings and policy recommendations based on | ||
technical and policy analysis regarding locations of | ||
renewable energy access plan zones and the transmission | ||
system developments needed to cost-effectively achieve the |
public policy goals identified herein; and | ||
(7) present the Commission's conclusions and proposed | ||
recommendations based on its analysis and use the findings | ||
and policy recommendations to determine actions that the | ||
Commission should take. | ||
(c) No later than December 31, 2025, and every other year | ||
thereafter, the Commission shall open an investigation to | ||
develop and adopt an updated renewable energy access plan
| ||
that, at a minimum, evaluates the implementation and | ||
effectiveness of the renewable energy access plan, recommends | ||
improvements to the renewable energy access plan, and provides | ||
changes to transmission capacity necessary to deliver electric | ||
output from the renewable energy access plan zones. | ||
(220 ILCS 5/9-228 new) | ||
Sec. 9-228. Limits on public utility expenses. The | ||
Commission shall not consider any of the following as an | ||
expense of any public utility company, including any | ||
allocation of those costs to the public utility from an | ||
affiliate or corporate parent, for the purpose of determining | ||
any rate or charge, any amount expended for: | ||
(1) the pension or other post-employment benefits for | ||
an employee convicted of committing a criminal act in the | ||
course of his or her work with the utility; | ||
(2) any severance or post-employment costs for an | ||
employee convicted of committing a criminal act in the |
course of his or her work with the utility; or | ||
(3) criminal penalties, fines, fees, and costs related | ||
to criminal charges, criminal investigations, or deferred | ||
prosecution agreements. | ||
(220 ILCS 5/9-229)
| ||
Sec. 9-229. Consideration of attorney and expert | ||
compensation as an expense and intervenor compensation fund . | ||
(a) The Commission shall specifically assess the justness | ||
and reasonableness of any amount expended by a public utility | ||
to compensate attorneys or technical experts to prepare and | ||
litigate a general rate case filing. This issue shall be | ||
expressly addressed in the Commission's final order.
| ||
(b) The State of Illinois shall create a Consumer | ||
Intervenor Compensation Fund subject to the following: | ||
(1) Provision of compensation for Consumer Interest | ||
Representatives that intervene in Illinois Commerce | ||
Commission proceedings will increase public engagement, | ||
encourage additional transparency, expand the information | ||
available to the Commission, and improve decision-making. | ||
(2) As used in this Section, "Consumer interest | ||
representative" means: | ||
(A) a residential utility customer or group of | ||
residential utility customers represented by a | ||
not-for-profit group or organization registered with | ||
the Illinois Attorney General under the Solicitation |
of Charity Act; | ||
(B) representatives of not-for-profit groups or | ||
organizations whose membership is limited to | ||
residential utility customers; or | ||
(C) representatives of not-for-profit groups or | ||
organizations whose membership includes Illinois | ||
residents and that address the community, economic, | ||
environmental, or social welfare of Illinois | ||
residents, except government agencies or intervenors | ||
specifically authorized by Illinois law to participate | ||
in Commission proceedings on behalf of Illinois | ||
consumers. | ||
(3) A consumer interest representative is eligible to | ||
receive compensation from the consumer intervenor | ||
compensation fund if its participation included lay or | ||
expert testimony or legal briefing and argument concerning | ||
the expenses, investments, rate design, rate impact, or | ||
other matters affecting the pricing, rates, costs or other | ||
charges associated with utility service, the Commission | ||
adopts a material recommendation related to a significant | ||
issue in the docket, and participation caused a | ||
significant financial hardship to the participant; | ||
however, no consumer interest representative shall be | ||
eligible to receive an award pursuant to this Section if | ||
the consumer interest representative receives any | ||
compensation, funding, or donations, directly or |
indirectly, from parties that have a financial interest in | ||
the outcome of the proceeding. | ||
(4) Within 30 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, each utility | ||
that files a request for an increase in rates under | ||
Article IX or Article XVI shall deposit an amount equal to | ||
one half of the rate case attorney and expert expense | ||
allowed by the Commission, but not to exceed $500,000, | ||
into the fund within 35 days of the date of the | ||
Commission's final Order in the rate case or 20 days after | ||
the denial of rehearing under Section 10-113 of this Act, | ||
whichever is later. The Consumer Intervenor Compensation | ||
Fund shall be used to provide payment to consumer interest | ||
representatives as described in this Section. | ||
(5) An electric public utility with 3,000,000 or more | ||
retail customers shall contribute $450,000 to the Consumer | ||
Intervenor Compensation Fund within 60 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly. A combined electric and gas public utility | ||
serving fewer than 3,000,000 but more than 500,000 retail | ||
customers shall contribute $225,000 to the Consumer | ||
Intervenor Compensation Fund within 60 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly. A gas public utility with 1,500,000 or more | ||
retail customers that is not a combined electric and gas | ||
public utility shall contribute $225,000 to the Consumer |
Intervenor Compensation Fund within 60 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly. A gas public utility with fewer than 1,500,000 | ||
retail customers but more than 300,000 retail customers | ||
that is not a combined electric and gas public utility | ||
shall contribute $80,000 to the Consumer Intervenor | ||
Compensation Fund within 60 days after the effective date | ||
of this amendatory Act of the 102nd General Assembly. A | ||
gas public utility with fewer than 300,000 retail | ||
customers that is not a combined electric and gas public | ||
utility shall contribute $20,000 to the Consumer | ||
Intervenor Compensation Fund within 60 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly. A combined electric and gas public utility | ||
serving fewer than 500,000 retail customers shall | ||
contribute $20,000 to the Consumer Intervenor Compensation | ||
Fund within 60 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly. A water or | ||
sewer public utility serving more than 100,000 retail | ||
customers shall contribute $80,000, and a water or sewer | ||
public utility serving fewer than 100,000 but more than | ||
10,000 retail customers shall contribute $20,000. | ||
(6)(A) Prior to the entry of a Final Order in a | ||
docketed case, the Commission Administrator shall provide | ||
a payment to a consumer interest representative that | ||
demonstrates through a verified application for funding |
that the consumer interest representative's participation | ||
or intervention without an award of fees or costs imposes | ||
a significant financial hardship based on a schedule to be | ||
developed by the Commission. The Administrator may require | ||
verification of costs incurred, including statements of | ||
hours spent, as a condition to paying the consumer | ||
interest representative prior to the entry of a Final | ||
Order in a docketed case. | ||
(B) If the Commission adopts a material recommendation | ||
related to a significant issue in the docket and | ||
participation caused a financial hardship to the | ||
participant, then the consumer interest representative | ||
shall be allowed payment for some or all of the consumer | ||
interest representative's reasonable attorney's or | ||
advocate's fees, reasonable expert witness fees, and other | ||
reasonable costs of preparation for and participation in a | ||
hearing or proceeding. Expenses related to travel or meals | ||
shall not be compensable. | ||
(C) The consumer interest representative shall submit | ||
an itemized request for compensation to the Consumer | ||
Intervenor Compensation Fund, including the advocate's or | ||
attorney's reasonable fee rate, the number of hours | ||
expended, reasonable expert and expert witness fees, and | ||
other reasonable costs for the preparation for and | ||
participation in the hearing and briefing within 30 days | ||
of the Commission's final order after denial or decision |
on rehearing, if any. | ||
(7) Administration of the Fund. | ||
(A) The Consumer Intervenor Compensation Fund is | ||
created as a special fund in the State treasury. All | ||
disbursements from the Consumer Intervenor Compensation | ||
Fund shall be made only upon warrants of the Comptroller | ||
drawn upon the Treasurer as custodian of the Fund upon | ||
vouchers signed by the Executive Director of the | ||
Commission or by the person or persons designated by the | ||
Director for that purpose. The Comptroller is authorized | ||
to draw the warrant upon vouchers so signed. The Treasurer | ||
shall accept all warrants so signed and shall be released | ||
from liability for all payments made on those warrants. | ||
The Consumer Intervenor Compensation Fund shall be | ||
administered by an Administrator that is a person or | ||
entity that is independent of the Commission. The | ||
administrator will be responsible for the prudent | ||
management of the Consumer Intervenor Compensation Fund | ||
and for recommendations for the award of consumer | ||
intervenor compensation from the Consumer Intervenor | ||
Compensation Fund. The Commission shall issue a request | ||
for qualifications for a third-party program administrator | ||
to administer the Consumer Intervenor Compensation Fund. | ||
The third-party administrator shall be chosen through a | ||
competitive bid process based on selection criteria and | ||
requirements developed by the Commission. The Illinois |
Procurement Code does not apply to the hiring or payment | ||
of the Administrator. All Administrator costs may be paid | ||
for using monies from the Consumer Intervenor Compensation | ||
Fund, but the Program Administrator shall strive to | ||
minimize costs in the implementation of the program. | ||
(B) The computation of compensation awarded from the | ||
fund shall take into consideration the market rates paid | ||
to persons of comparable training and experience who offer | ||
similar services, but may not exceed the comparable market | ||
rate for services paid by the public utility as part of its | ||
rate case expense. | ||
(C)(1) Recommendations on the award of compensation by | ||
the administrator shall include consideration of whether | ||
the Commission adopted a material recommendation related | ||
to a significant issue in the docket and whether | ||
participation caused a financial hardship to the | ||
participant and the payment of compensation is fair, just | ||
and reasonable. | ||
(2) Recommendations on the award of compensation by | ||
the administrator shall be submitted to the Commission for | ||
approval. Unless the Commission initiates an investigation | ||
within 45 days after the notice to the Commission, the | ||
award of compensation shall be allowed 45 days after | ||
notice to the Commission. Such notice shall be given by | ||
filing with the Commission on the Commission's e-docket | ||
system, and keeping open for public inspection the award |
for compensation proposed by the Administrator. The | ||
Commission shall have power, and it is hereby given | ||
authority, either upon complaint or upon its own | ||
initiative without complaint, at once, and if it so | ||
orders, without answer or other formal pleadings, but upon | ||
reasonable notice, to enter upon a hearing concerning the | ||
propriety of the award. | ||
(c) The Commission may adopt rules to implement this | ||
Section. | ||
(Source: P.A. 96-33, eff. 7-10-09.)
| ||
(220 ILCS 5/9-241) (from Ch. 111 2/3, par. 9-241)
| ||
Sec. 9-241.
No public utility shall, as to rates or other | ||
charges,
services, facilities or in other respect, make or | ||
grant any preference
or advantage to any corporation or person | ||
or subject any corporation or
person to any prejudice or | ||
disadvantage. No public utility shall
establish or maintain | ||
any unreasonable difference as to rates or other
charges, | ||
services, facilities, or in any other respect, either as
| ||
between localities or as between classes of service.
| ||
However, nothing in this Section shall be construed as | ||
limiting the
authority of the Commission to permit the | ||
establishment of economic
development rates as incentives to | ||
economic development either in
enterprise zones as designated | ||
by the State of Illinois or in other areas
of a utility's | ||
service area. Such rates should be available to existing
|
businesses which demonstrate an increase to existing load as | ||
well as new
businesses which create new load for a utility so | ||
as to create a more balanced
utilization of generating | ||
capacity. The Commission shall ensure that such
rates are | ||
established at a level which provides a net benefit to | ||
customers
within a public utility's service area.
| ||
On or before January 1, 2023, the Commission shall conduct | ||
a comprehensive study to assess whether low-income discount | ||
rates for electric and natural gas residential customers are | ||
appropriate and the potential design and implementation of any | ||
such rates. The Commission shall include its findings, | ||
together with the appropriate recommendations, in a report to | ||
be provided to the General Assembly. Upon completion of the | ||
study, the Commission shall have the authority to permit or | ||
require electric and natural gas utilities to file a tariff | ||
establishing low-income discount rates. | ||
Such study shall assess, at a minimum, the following: | ||
(1) customer eligibility requirements, including | ||
income-based eligibility and eligibility based on | ||
participation in or eligibility for certain public | ||
assistance programs; | ||
(2) appropriate rate structures, including | ||
consideration of tiered discounts for different income | ||
levels; | ||
(3) appropriate recovery mechanisms, including the | ||
consideration of volumetric charges and customer charges; |
(4) appropriate verification mechanisms; | ||
(5) measures to ensure customer confidentiality and | ||
data safeguards; | ||
(6) outreach and consumer education procedures; and | ||
(7) the impact that a low-income discount rate would | ||
have on the affordability of delivery service to | ||
low-income customers and customers overall. | ||
The Commission shall adopt rules requiring utility | ||
companies to produce information, in the form of a mailing, | ||
and other approved methods of distribution, to its consumers, | ||
to inform the consumers of available rebates, discounts, | ||
credits, and other cost-saving mechanisms that can help them | ||
lower their monthly utility bills, and send out such | ||
information semi-annually, unless otherwise provided by this | ||
Article. | ||
Prior to October 1, 1989, no public utility providing | ||
electrical
or gas service shall consider the use of solar or | ||
other nonconventional
renewable sources of energy by a | ||
customer as a basis for establishing higher
rates or charges | ||
for any service or commodity sold to such customer; nor
shall a | ||
public utility subject any customer utilizing such energy | ||
source
or sources to any other prejudice or disadvantage on | ||
account of such use.
No public utility shall without the | ||
consent of the Commission, charge or
receive any greater | ||
compensation in the aggregate for a lesser commodity,
product, | ||
or service than for a greater commodity, product or service of
|
like character.
| ||
The Commission, in order to expedite the determination of | ||
rate
questions, or to avoid unnecessary and unreasonable | ||
expense, or to avoid
unjust or unreasonable discrimination | ||
between classes of customers, or,
whenever in the judgment of | ||
the Commission public interest so requires,
may, for rate | ||
making and accounting purposes, or either of them,
consider
| ||
one or more municipalities either with or without the adjacent | ||
or
intervening rural territory as a regional unit where the | ||
same public
utility serves such region under substantially | ||
similar conditions, and may
within such region prescribe | ||
uniform rates for consumers or patrons of the same
class.
| ||
Any public utility, with the consent and approval of the | ||
Commission, may
as a basis for the determination of the | ||
charges made by it classify its
service according to the | ||
amount used, the time when used, the purpose for
which used, | ||
and other relevant factors.
| ||
(Source: P.A. 91-357, eff. 7-29-99.)
| ||
(220 ILCS 5/16-105.5 new) | ||
Sec. 16-105.5. Rate case filing and revenue-neutral rate | ||
design. | ||
(a) An electric utility that files a general rate case | ||
pursuant to Section 9-201 of this Act or a Multi-Year Rate Plan | ||
pursuant to Section 16-108.18 of this Act may omit the rate | ||
design component of such filing and subsequently separately |
file this component with the Commission, subject to the | ||
requirements of subsections (b) and (c) of this Section. | ||
(b) If the electric utility makes the election described | ||
in this Section, then the filing shall be consistent with the | ||
rate design and cost allocation across customer classes | ||
approved in the Commission's most recent order regarding the | ||
electric utility's request for a general adjustment to its | ||
rates entered under Section 9-201, subsection (e) of Section | ||
16-108.5, or Section 16-108.18 of this Act, as applicable. | ||
(c) If the electric utility makes the election described | ||
in this Section, then the following provisions apply to the | ||
separate filing of the revenue-neutral rate design component: | ||
(1) No later than one year after the tariffs | ||
implementing the general rate case filing or Multi-year | ||
Rate Plan filing, as described in subsection (b) of this | ||
Section, are placed into effect, the electric utility | ||
shall make a filing with the Commission that proposes | ||
changes to the tariffs to incorporate the findings of any | ||
final rate design orders of the Commission applicable to | ||
the electric utility and entered subsequent to the | ||
Commission's approval of the tariffs. If no such orders | ||
have been entered, then the electric utility must submit | ||
its separate revenue-neutral rate design filing no later | ||
than 3 years after the date on which the Commission's most | ||
recent final rate design order was entered for the | ||
electric utility. The electric utility's separate |
revenue-neutral rate design filing may either propose | ||
revenue-neutral tariff changes or refile the existing | ||
tariffs without change, which shall present the Commission | ||
with an opportunity to suspend the tariffs and consider | ||
revenue-neutral tariff changes related to rate design. The | ||
Commission shall, after notice and hearing, enter its | ||
order approving, or approving with modification, the | ||
proposed changes to the tariffs within 240 days after the | ||
electric utility's filing. Any changes ordered by the | ||
Commission shall become effective at the commencement of | ||
the first January monthly billing period that begins no | ||
earlier than 30 days after the Commission issues its order | ||
adopting such changes. | ||
(2) Following Commission approval under paragraph (1) | ||
of this subsection (c), the electric utility shall make a | ||
filing with the Commission during each subsequent 3-year | ||
period that either proposes revenue-neutral tariff changes | ||
or refiles the existing tariffs without change, which | ||
shall present the Commission with an opportunity to | ||
suspend the tariffs and consider revenue-neutral tariff | ||
changes related to rate design. The requirements of this | ||
paragraph (2) shall terminate at the time that the | ||
electric utility files a general rate case or Multi-Year | ||
Rate Plan that includes the rate design component. | ||
(220 ILCS 5/16-105.6 new) |
Sec. 16-105.6. Amortization of charges or credits. | ||
(a) It is in the public interest to mitigate the customer | ||
bill impacts of large expenses incurred by electric utilities | ||
by directing that expenses exceeding the applicable threshold | ||
specified in this Section be amortized over the prescribed | ||
period. Such amortization will levelize customer bill impacts | ||
and, in many instances, better align the period of cost | ||
recovery with the period over which customers receive the | ||
benefit of the expenditure. Accordingly, an electric utility | ||
that files a general rate increase under Section 9-201 of this | ||
Act or a Multi-Year Rate Plan under Section 16-108.18 of this | ||
Act shall amortize, over a 5-year period, each charge or | ||
credit that exceeds the applicable amount identified in | ||
subsection (b) of this Section and that relates to (1) a | ||
workforce reduction program's severance costs; (2) changes in | ||
accounting rules; (3) changes in law; (4) compliance with any | ||
Commission-initiated audit; and (5) a single storm or weather | ||
system, or other similar expense. | ||
Any unamortized balance shall be reflected in rate base. | ||
In this Section, "changes in law" includes any enactment, | ||
repeal, or amendment in a law, ordinance, rule, regulation, | ||
interpretation, permit, license, consent, or order, including | ||
those relating to taxes, accounting, or environmental matters, | ||
or in the interpretation or application thereof by any | ||
governmental authority occurring after the effective date of | ||
this amendatory Act of the 102nd General Assembly. |
Nothing in this Section is intended to prohibit the | ||
Commission from reviewing the prudence and reasonableness of | ||
the costs amortized pursuant to this Section. | ||
(b) An electric utility that serves more than 3,000,000 | ||
customers in the State shall amortize the full amount of each | ||
charge or credit described in subsection (a) of this Section | ||
that exceeds $10,000,000 in the applicable calendar year, and | ||
an electric utility that serves less than 3,000,000 customers | ||
in the State shall amortize the full amount of each such charge | ||
or credit that exceeds $3,700,000 in the applicable calendar | ||
year. | ||
(220 ILCS 5/16-105.7 new) | ||
Sec. 16-105.7. Revenue balancing adjustments. | ||
(a) It is in the public interest to decouple electric | ||
utility sales and revenues, to mitigate the impact on | ||
utilities of energy savings goals, to mitigate a utility's | ||
disincentive to promote energy efficiency, and to recognize | ||
changes in sales attributable to weather, electric vehicles | ||
and other electrification, adoption of distributed energy | ||
resources, and other volatile or uncontrollable factors | ||
without adversely affecting utility customers. | ||
(b) For the purposes of this Section, "reconciliation | ||
period" means a period beginning with the January monthly | ||
billing period and extending through the December monthly | ||
billing period of the same calendar year. |
(c) As set forth in subsection (d) of this Section, the | ||
Commission shall approve a tariff by which distribution | ||
revenues shall be compared annually to the revenue requirement | ||
or requirements approved by the Commission on which the rates | ||
giving rise to those revenues were based to prevent | ||
undercollections or overcollections. An electric utility shall | ||
submit an annual revenue balancing reconciliation report to | ||
the Commission reflecting the difference between the actual | ||
delivery service revenue and multi-year rate case revenue | ||
requirement for the applicable reconciliation and identifying | ||
the charges or credits to be applied thereafter. Such | ||
reconciliation and calculation of associated charges or | ||
credits shall be conducted on a customer class basis. The | ||
annual revenue balancing reconciliation report shall be filed | ||
with the Commission no later than March 20 of the year | ||
following a reconciliation period. The Commission may initiate | ||
a review of the revenue balancing reconciliation report each | ||
year to determine if any subsequent adjustment is necessary to | ||
align actual delivery service revenue and rate case revenue | ||
requirement. If the Commission elects to initiate such review, | ||
the Commission shall, after notice and hearing, enter an order | ||
approving, or approving as modified, such revenue balancing | ||
reconciliation report no later than 120 days after the utility | ||
files its report with the Commission. If the Commission does | ||
not initiate such a review, the revenue balancing | ||
reconciliation report and the identified charges or credits |
shall be deemed accepted and approved 120 days after the | ||
utility files the report and shall not be subject to review in | ||
any other proceeding. Any balancing adjustment shall take | ||
effect during the following January monthly billing period. | ||
(d) Each electric utility shall file a tariff in | ||
compliance with the provisions of this Section within 120 days | ||
after the effective date of this amendatory Act of the 102nd | ||
General Assembly. The Commission shall approve the tariff if | ||
it finds that it is consistent with the provisions of the | ||
Section. If the Commission does not so find, it shall approve | ||
the tariff with modification to conform it to the requirements | ||
of this Section or otherwise reject the tariff and explain how | ||
the utility can modify the tariff and refile to comply with the | ||
requirements of this Section. | ||
(220 ILCS 5/16-105.10 new) | ||
Sec. 16-105.10. Independent baseline assessment. | ||
(a) Prior to the filing of the initial Multi-Year | ||
Integrated Grid Plan described in Section 16-105.17 of this | ||
Act, the General Assembly finds that an independent audit of | ||
the current state of the grid, and of the expenditures made | ||
since 2012, will need to be made. | ||
Specifically, the General Assembly finds: | ||
(1) Pursuant to the Energy Infrastructure | ||
Modernization Act and subsequent clarifying legislation, | ||
electric utilities in this State that serve over 300,000 |
retail customers have made substantial investments in the | ||
grid and advanced metering infrastructure. | ||
(2) Before a Multi-Year Integrated Grid Plan is filed | ||
under Section 16-105.17, it is necessary to understand the | ||
benefits of these investments to the grid and to customers | ||
and to evaluate the current condition of the distribution | ||
grid. | ||
(3) It is also necessary for electric utilities, the | ||
Commission, and stakeholders to have an independently | ||
verified set of data to establish the baseline for future | ||
distribution grid spending. | ||
(4) The Commission has authority to order and | ||
implement the requirements of this Section under Section | ||
8-102 of this Act. | ||
(b) Terms used in this Section have the meanings given to | ||
those terms in Sections 16-102, 16-107.6, and 16-108 of this | ||
Act. | ||
(c) Within 30 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, the Commission | ||
shall issue an order initiating an audit of each electric | ||
utility serving over 300,000 retail customers in the State, | ||
which shall examine the following: | ||
(1) An assessment of the distribution grid, as | ||
described in paragraph (2) of subsection (a) of this | ||
Section. The Commission shall have the authority to | ||
require additional items which it deems necessary. |
(2) An analysis of the utility's capital projects | ||
placed into service in the preceding 9 years, including, | ||
but not limited to, assessing the value of deploying | ||
advanced metering infrastructure to modernize and optimize | ||
the grid and deliver value to customers. | ||
(3) An analysis of the utility's initiatives to | ||
optimize the reliability and resiliency of the grid, other | ||
than through capital spending. | ||
(4) Creation of a data baseline to inform the | ||
beginning of the multi-year integrated grid planning | ||
process described in Section 16-105.17 of this Act. | ||
(5) Identification of any deficiencies in data which | ||
may impact the planning process. | ||
(d) It is contemplated that the auditor will utilize | ||
materials filed with the Commission by the utilities with | ||
respect to their expenditures in the preceding 9 years; | ||
however, the auditor may also, with Commission approval, | ||
assess other information deemed necessary to make its report. | ||
(e) The results of the audit described in this Section | ||
shall be reflected in a report delivered to the Commission, | ||
describing the information specified in this Section. Such | ||
report is to be delivered no later than 180 days after the | ||
Commission enters its order pursuant to subsection (c) of this | ||
Section. It is understood that any public report may not | ||
contain items that are confidential or proprietary. | ||
(f) The costs of an electric utility's audit described in |
this Section shall not exceed $500,000 and shall be paid for by | ||
the electric utility that is the subject of the audit. Such | ||
costs shall be a recoverable expense. | ||
(g) The Commission shall have the authority to retain the | ||
services of an auditor to assist with the distribution | ||
planning process, as well as in docketed proceedings. Such | ||
expenses for these activities shall also be borne by the | ||
Commission. | ||
(220 ILCS 5/16-105.17 new) | ||
Sec. 16-105.17. Multi-Year Integrated Grid Plan. | ||
(a) The General Assembly finds that ensuring alignment of | ||
regulated utility operations, expenditures, and investments | ||
with public benefit goals, including safety, reliability, | ||
resiliency, affordability, equity, emissions reductions, and | ||
expansion of clean distributed energy resources, is critical | ||
to maximizing the benefits of the interconnected utility grid | ||
and cost-effective utility expenditures on the grid. It is the | ||
policy of the State to promote inclusive, comprehensive, | ||
transparent, cost-effective distribution system planning and | ||
disclosures processes that minimize long-term costs for | ||
Illinois customers and support the achievement of State | ||
renewable energy development and other clean energy, public | ||
health, and environmental policy goals. Utility distribution | ||
system expenditures, programs, investments, and policies must | ||
be evaluated in coordination with these goals. In particular, |
the General Assembly finds that: | ||
(1) Investment in infrastructure to support and enable | ||
existing and new distributed energy resources creates | ||
significant economic development, environmental, and | ||
public health benefits in the State. | ||
(2) Illinois' electricity distribution system must | ||
cost-effectively integrate renewable energy resources, | ||
including utility-scale renewable energy resources, | ||
community renewable generation, and distributed renewable | ||
energy resources, support beneficial electrification, | ||
including electric vehicle use and adoption, promote | ||
opportunities for third-party investment in | ||
nontraditional, grid-related technologies and resources | ||
such as batteries, solar photovoltaic panels, and smart | ||
thermostats, reduce energy usage generally and especially | ||
during times of greatest reliance on fossil fuels, and | ||
enhance customer engagement opportunities. | ||
(3) Inclusive distribution system planning is an | ||
essential tool for the Commission, public utilities, and | ||
stakeholders to effectively coordinate environmental, | ||
consumer, reliability, and equity goals at fair and | ||
reasonable costs, and for ensuring transparent utility | ||
accountability for meeting those goals. | ||
(4) Any planning process should advance Illinois | ||
energy policy goals while ensuring utility investments are | ||
cost-effective. Such a process should maximize the sharing |
of information, minimize overlap with existing filing | ||
requirements to ensure robust stakeholder participation, | ||
and recognize the responsibility of the utility to manage | ||
the grid in a safe, reliable manner. | ||
(5) The General Assembly is concerned that, in the | ||
absence of a transparent, meaningful distribution system | ||
planning process, utility investments may not always serve | ||
customers' best interests, appropriately promote the | ||
expansion of clean distributed energy resources, and | ||
advance equity and environmental justice. | ||
(6) The General Assembly is also encouraged by the | ||
opportunities presented by nontraditional solutions to | ||
utility, customer, and grid needs that may be more | ||
efficient and cost-effective, and less environmentally | ||
harmful than traditional solutions. Nontraditional | ||
solutions include distributed energy resources owned or | ||
implemented by customers and independent third parties, | ||
controllable load, beneficial electrification, or rate | ||
design that encourages efficient energy use. | ||
(7) The General Assembly finds that Illinois | ||
utilities' current processes for planning their | ||
distribution system should be made more accessible and | ||
transparent to individuals and communities, and that more | ||
inclusive and accessible distribution system planning | ||
processes would be in the interests of all Illinois | ||
residents. |
(8) The General Assembly finds it would be beneficial | ||
to require utilities to demonstrate how their spending | ||
promotes identified State clean energy goals, such as | ||
integrating renewable energy, empowering customers to make | ||
informed choices, supporting electric vehicles, beneficial | ||
electrification, and energy storage, achieving equity | ||
goals, enhancing resilience, and maintaining reliability. | ||
The General Assembly therefore directs the utilities to | ||
implement distribution system planning as described in this | ||
Section in order to accelerate progress on Illinois clean | ||
energy and environmental goals and hold electric utilities | ||
publicly accountable for their performance. | ||
(b) Unless otherwise specified, the terms used in this | ||
Section shall have the same meanings as defined in Sections | ||
16-102 and 16-107.6. As used in this Section: | ||
"Demand response" means measures that decrease peak | ||
electricity demand or shift demand from peak to off-peak | ||
periods. | ||
"Distributed energy resources" or "DER" means a wide range | ||
of technologies that are connected to the grid, including | ||
those that are located on the customer side of the customer's | ||
electric meter and can provide value to the distribution | ||
system, including, but not limited to, distributed generation, | ||
energy storage, electric vehicles, and demand response | ||
technologies. | ||
"Environmental justice communities" means the definition |
of that term based on existing methodologies and findings, | ||
used and as may be updated by the Illinois Power Agency and its | ||
Program Administrator in the Illinois Solar for All Program. | ||
(c) This Section applies to electric utilities serving | ||
more than 500,000 retail customers in the State. | ||
(d) The Multi-Year Integrated Grid Plan ("the Plan") shall | ||
be designed to: | ||
(1) ensure coordination of the State's renewable | ||
energy goals, climate and environmental goals with the | ||
utility's distribution system investments, and programs | ||
and policies over a 5-year planning horizon to maximize | ||
the benefits of each while ensuring utility expenditures | ||
are cost-effective; | ||
(2) optimize utilization of electricity grid assets | ||
and resources to minimize total system costs; | ||
(3) support efforts to bring the benefits of grid | ||
modernization and clean energy, including, but not limited | ||
to, deployment of distributed energy resources, to all | ||
retail customers, and support efforts to bring at least | ||
40% of the benefits of those benefits to Equity Investment | ||
Eligible Communities. Nothing in this paragraph is meant | ||
to require a specific amount of spending in a particular | ||
geographic area; | ||
(4) enable greater customer engagement, empowerment, | ||
and options for energy services; | ||
(5) reduce grid congestion, minimize the time and |
expense associated with interconnection, and increase the | ||
capacity of the distribution grid to host increasing | ||
levels of distributed energy resources, to facilitate | ||
availability and development of distributed energy | ||
resources, particularly in locations that enhance consumer | ||
and environmental benefits; | ||
(6) ensure opportunities for robust public | ||
participation through open, transparent planning | ||
processes. | ||
(7) provide for the analysis of the cost-effectiveness | ||
of proposed system investments, which takes into account | ||
environmental costs and benefits; | ||
(8) to the maximum extent practicable, achieve or | ||
support the achievement of Illinois environmental goals, | ||
including those described in Section 9.10 of the | ||
Environmental Protection Act and Section 1-75 of the | ||
Illinois Power Agency Act, and emissions reductions | ||
required to improve the health, safety, and prosperity of | ||
all Illinois residents; | ||
(9) support existing Illinois policy goals promoting | ||
the long-term growth of energy efficiency, demand | ||
response, and investments in renewable energy resources; | ||
(10) provide sufficient public information to the | ||
Commission, stakeholders, and market participants in order | ||
to enable nonemitting customer-owned or third-party | ||
distributed energy resources, acting individually or in |
aggregate, to seamlessly and easily connect to the grid, | ||
provide grid benefits, support grid services, and achieve | ||
environmental outcomes, without necessarily requiring | ||
utility ownership or controlling interest over those | ||
resources, and enable those resources to act as | ||
alternatives to utility capital investments; and | ||
(11) provide delivery services at rates that are | ||
affordable to all customers, including low-income | ||
customers. | ||
(e) Plan Development Stakeholder Process. | ||
(1) To promote the transparency of utility | ||
distributions system planned investments and the planning | ||
process for those investments, the Commission shall | ||
convene a workshop process, over a period of no less than 5 | ||
months, for each such utility for the purpose of | ||
establishing an open, inclusive, and cooperative forum | ||
regarding such investments. The workshops shall be | ||
facilitated by an independent, third-party facilitator | ||
selected by the Commission. Data and projections provided | ||
through the workshop process shall be designed to provide | ||
participants with information about the electric utility's | ||
(i) historic distribution system investments for at least | ||
the 5 years prior to the year in which the workshop is held | ||
and (ii) planned investments for the 5-year period | ||
following the year in which the workshop is held. The | ||
workshop process shall recognize that estimates for later |
years will be less reliable and indicative of future | ||
conduct than estimates for earlier years and that the | ||
electric utility is subject to financial and system | ||
planning processes. No later than January 1, 2022, the | ||
facilitator shall initiate a series of workshops for each | ||
electric utility subject to this Section. The series of | ||
workshops shall include no fewer than 6 workshops and | ||
shall conclude no later than June 1, 2022. | ||
(2) The workshops shall be designed to achieve the | ||
following objectives: | ||
(A) review utilities' planned capital investments | ||
and supporting data; | ||
(B) review how utilities plan to invest in their | ||
distribution system in order to meet the system's | ||
projected needs; | ||
(C) review system and locational data on | ||
reliability, resiliency, DER, and service quality | ||
provided by the utilities; | ||
(D) solicit and consider input from diverse | ||
stakeholders, including representatives from | ||
environmental justice communities, geographically | ||
diverse communities, low-income representatives, | ||
consumer representatives, environmental | ||
representatives, organized labor representatives, | ||
third-party technology providers, and utilities; | ||
(E) consider proposals from utilities and |
stakeholders on programs and policies necessary to | ||
achieve the objectives in subsection (d) of this | ||
Section; | ||
(F) consider proposals applicable to each | ||
component of the utilities' Multi-Year Integrated Grid | ||
Plan filings under paragraph (2) of subsection (f) of | ||
this Section; | ||
(G) educate and equip interested stakeholders so | ||
that they can effectively and efficiently provide | ||
feedback and input to the electric utility; and | ||
(H) review planned capital investment to ensure | ||
that delivery services are provided at rates that are | ||
affordable to all customers, including low-income | ||
customers. | ||
(3) To the extent any of the information in | ||
subparagraphs (A) through (H) of paragraph (2) of this | ||
subsection is designated as confidential and proprietary | ||
under the Commission's rules, the proponent of the | ||
designation shall have the burden of making the requisite | ||
showing under the Commission's rules. For data that is | ||
determined to be confidential or that includes personally | ||
identifiable information, the Commission may develop | ||
procedures and processes to enable data sharing with | ||
parties and stakeholders while ensuring the | ||
confidentiality of the information. | ||
(4) Workshops should be organized and facilitated in a |
manner that encourages representation from diverse | ||
stakeholders, ensuring equitable opportunities for | ||
participation, without requiring formal intervention or | ||
representation by an attorney. Workshops should be held | ||
during both day and evening hours, in a variety of | ||
locations within each electric utility's service | ||
territory, and should allow remote participation. | ||
(5) It is a goal of the State that this workshop | ||
process will provide a forum for interested stakeholders | ||
to effectively and efficiently provide feedback and input | ||
to the electric utility. It is also a goal of the State | ||
that stakeholder participation in this process will | ||
prepare stakeholders to more capably participate in | ||
Multi-Year Rate Plan proceedings conducted pursuant to | ||
Section 16-108.18 of this Act, if they so elect. As part of | ||
the workshop process, the electric utility shall submit to | ||
the Commission the electric utility's capital investments | ||
proposal, and supporting data described in subparagraphs | ||
(A) through (C) of paragraph (2) of this subsection (e) | ||
before the start of workshops to allow interested | ||
stakeholders to reasonably review data before attending | ||
workshops. The Commission shall make public the utility | ||
capital investments proposal by posting it on the | ||
Commission's website and set the location and time of any | ||
workshop to be held as part of the workshop process, and | ||
establish a data request process, consistent with the |
Commission's rules, that affords workshop participants | ||
opportunities to submit data requests to the utility, and | ||
receive responses in accordance with the utility's | ||
obligations under the law, prior to the workshop, | ||
regarding the information described in this paragraph (5). | ||
Upon the written request of a workshop participant, the | ||
utility shall also present at a given workshop at least | ||
one appropriate company representative who can address the | ||
specific written questions or written categories of | ||
questions identified in advance by the workshop | ||
participant regarding issues related to the utility's | ||
Multi-Year Integrated Grid Plan. To facilitate public | ||
feedback, the administrator facilitating the workshops | ||
shall, throughout the workshop process, develop questions | ||
for stakeholder input on topics being considered. This may | ||
include, but is not limited to: design of the workshop | ||
process, locational data and information provided by | ||
utilities, alignment of plans, programs, investments and | ||
objectives, and other topics as deemed appropriate by the | ||
Commission facilitation staff. Stakeholder feedback shall | ||
not be limited to these questions. The information | ||
provided as part of the workshop process pursuant to this | ||
subsection (e) is intended to be informational and to | ||
provide a preliminary view of costs and investments, which | ||
may change. Accordingly, the information provided pursuant | ||
to this subsection (e) shall not be binding on the utility |
and shall not be the sole basis for a finding in any | ||
Commission proceeding of imprudence, unreasonableness, or | ||
lack of use or usefulness of any individual or aggregate | ||
level of utility plant or other investment or expenditure | ||
addressed; however, information contained in the plan may | ||
be used in a proceeding before the Commission, with weight | ||
of such evidence to be determined by the Commission. | ||
(6) Workshops shall not be considered settlement | ||
negotiations, compromise negotiations, or offers to | ||
compromise for the purposes of Illinois Rule of Evidence | ||
408. All materials shared as a part of the workshop | ||
process, and that are not determined to be confidential as | ||
described in paragraph (3) of this subsection (e), shall | ||
be made publicly available on a website made available by | ||
the Commission. | ||
(7) On conclusion of the workshops, the Commission | ||
shall open a comment period that allows interested and | ||
diverse stakeholders to submit comments and | ||
recommendations regarding the utility's Multi-Year | ||
Integrated Grid Plan filing. Based on the workshop process | ||
and stakeholder comments and recommendations offered | ||
verbally or in writing during the workshops and in writing | ||
during the comment period following the workshops, the | ||
independent third-party facilitator shall prepare a | ||
report, to be submitted to the Commission no later than | ||
July 1, 2022, describing the stakeholders, discussions, |
proposals, and areas of consensus and disagreement from | ||
the workshop process, and making recommendations to the | ||
Commission regarding the utility's Multi-Year Integrated | ||
Grid Plan. Interested stakeholders shall have an | ||
opportunity to provide comment on the independent | ||
third-party facilitator report. | ||
(8) Based on discussions in the workshops, the | ||
independent third-party facilitator report, and | ||
stakeholder comments and recommendations made during and | ||
following the workshop process, the Commission shall issue | ||
initiating orders no later than August 1, 2022, requiring | ||
the electric utilities subject to this Section to file the | ||
first Multi-Year Integrated Grid Plan no later than | ||
January 20, 2023. The initiating orders shall specify the | ||
requirements applicable to the utilities' Multi-Year | ||
Integrated Grid Plans, which shall supplement and not | ||
replace those requirements described in subsection (f) of | ||
this Section. | ||
(f) Multi-Year Integrated Grid Plan. | ||
(1) Pursuant to this subsection (f) and the initiating | ||
orders of the Commission, each electric utility subject to | ||
this Section shall, no later than January 20, 2023, submit | ||
its first Multi-Year Integrated Grid Plan. No later than | ||
January 20, 2026, and every 4 years thereafter, the | ||
utility shall submit its subsequent Plan. Each Plan shall: | ||
(A) incorporate requirements established by the |
Commission in its initiating order; and | ||
(B) propose distribution system investment | ||
programs, policies, and plans designed to optimize | ||
achievement of the objectives set forth in subsection | ||
(d) of this Section and achieve the metrics approved | ||
by the Commission pursuant to Section 16-108.18 of | ||
this Act. | ||
To the extent practicable and reasonable, all | ||
programs, policies, and initiatives proposed by the | ||
utility in its plan should be informed by stakeholder | ||
input received during the workshop process pursuant to | ||
subsection (e) of this Section. Where specific stakeholder | ||
input has not been incorporated in proposed programs, | ||
policies, and plans, the electric utility shall provide an | ||
explanation as to why that input was not incorporated. | ||
(2) In order to ensure electric utilities' ability to | ||
meet the goals and objectives set forth in this Section, | ||
the Multi-Year Integrated Grid Plans must include, at | ||
minimum, the following information: | ||
(A) A description of the utility's distribution | ||
system planning process, including: | ||
(i) the overview of the process, including | ||
frequency and duration of the process, roles, and | ||
responsibilities of utility personnel and | ||
departments involved; | ||
(ii) a summary of the meetings with |
stakeholders conducted prior to filing of the plan | ||
with the Commission. | ||
(iii) the description of any coordination of | ||
the processes with any other planning process | ||
internal or external to the utility, including | ||
those required by a regional transmission | ||
operator. | ||
(B) A detailed description of the current | ||
operating conditions for the distribution system | ||
separately presented for each of the utility's | ||
operating areas, where possible, including a detailed | ||
description, with supporting data, of system | ||
conditions, including baseline data regarding the | ||
utility's distribution system from the utility's | ||
annual report to the Commission, total distribution | ||
system substation capacity in kVa, total miles of | ||
primary overhead distribution wire, and total miles of | ||
primary underground distribution cable, distributed | ||
energy resource deployment by type, size, customer | ||
class, and geographic dispersion as to those DERs that | ||
have completed the interconnection process, the most | ||
current distribution line loss study, current and | ||
expected System Average Interruption Frequency Index | ||
and Customer Average Interruption Duration Index data | ||
for the system, identification of the system model | ||
software currently used and planned software |
deployments, and other data needs as requested by the | ||
Commission or as determined through Commission rules. | ||
The description shall also include the utility's most | ||
recent system load and peak demand forecast for at | ||
least the next 5 years, and up to 10 years if | ||
available, a discussion of how the forecast was | ||
prepared and how distributed energy resources and | ||
energy efficiency were factored into the forecast, and | ||
identification of the forecasting software currently | ||
used and planned software deployments. | ||
(C) Financial Data. | ||
(i) For each of the preceding 5 years, the | ||
utility's distribution system investments by the | ||
investment categories tracked by the utility, | ||
including, but not limited to, new business, | ||
facility relocation, capacity expansion, system | ||
performance, preventive maintenance, corrective | ||
maintenance, the total amount of investments | ||
associated with the integration of DERs, the total | ||
amount of charges to DER developers and retail | ||
customers for interconnection of DERs to the | ||
distribution system, and a list of each major | ||
investment category the utility used to maintain | ||
its routine standing operational activities and | ||
the associated plant in service amount for each | ||
category in which the plant in service amount is |
at least $2,000,000; | ||
(ii) For each of the preceding 5 years, data | ||
on and a discussion of the utility's distribution | ||
system operation and maintenance expenses; | ||
(iii) A 5-year long-range forecast of | ||
distribution system capital investments and | ||
operational and maintenance expenses, including a | ||
discussion of any projections for expenses for the | ||
categories listed in subparagraph (i) of this item | ||
(C). | ||
(D) System data on DERs on the utility's | ||
distribution system, including the total number and | ||
nameplate capacity of DERs that completed | ||
interconnection in the prior year, current DER | ||
deployment by type, size, and geographic dispersion, | ||
to the extent that granular geographic information | ||
does not disclose personally identifiable information, | ||
and other data as requested by the Commission or | ||
determined by Commission rules. | ||
(E) Hosting Capacity and Interconnection | ||
Requirements. | ||
(i) The utility shall make available on its | ||
website the hosting capacity analysis results that | ||
shall include mapping and GIS capability, as well | ||
as any other requirements requested by the | ||
Commission or determined through Commission rules. |
The plan shall identify where the hosting capacity | ||
analysis results shall be made publicly available. | ||
This shall also include an assessment of the | ||
impact of utility investments over the next 5 | ||
years on hosting capacity and a narrative | ||
discussion of how the hosting capacity analysis | ||
advances customer-sited distributed energy | ||
resources, including electric vehicles, energy | ||
storage systems, and photovoltaic resources, and | ||
how the identification of interconnection points | ||
on the distribution system will support the | ||
continued development of distributed energy | ||
resources. | ||
(ii) Discussion of the utility's | ||
interconnection requirements and how they comply | ||
with the Commission's applicable regulations. | ||
(F) Identification and discussion of the scenarios | ||
considered in the development of the utility's | ||
Multi-Year Integrated Grid Plan, including DER | ||
scenarios, and discussion of base-case and alternative | ||
scenarios, how the scenarios were developed and | ||
selected, and how the scenarios include a reasonable | ||
mix of DERs scenarios, types, and geographic | ||
dispersion. Scenarios shall at least consider the | ||
5-year forecast horizon of the Multi-Year Integrated | ||
Grid Plan, but may also consider longer-term scenarios |
where data is available. The plan shall also include | ||
requirements requested by the Commission or determined | ||
through Commission rules. | ||
(G) An evaluation of the short-term and long-run | ||
benefits and costs of distributed energy resources | ||
located on the distribution system, including, but not | ||
limited to, the locational, temporal, and | ||
performance-based benefits and costs of distributed | ||
energy resources. The utility shall use the results of | ||
this evaluation to inform its analysis of Solution | ||
Sourcing Opportunities, including nonwires | ||
alternatives, under subparagraph (K) of paragraph (2) | ||
subsection (f) of this Section. The Commission may use | ||
the data produced through this evaluation to, among | ||
other use-cases, inform the Commission's investigation | ||
and establishment of tariffs and compensation for | ||
distributed energy resources interconnecting to the | ||
utility's distribution system, including rebates | ||
provided by the electric utility pursuant to Section | ||
16-107.6 of this Act. | ||
(H) Long-term Distribution System Investment Plan. | ||
(i) The utility's planned distribution capital | ||
investments for the period covered by the planning | ||
process required by this Section, by the | ||
investment categories used by the utility, and | ||
with discussion of any individual planned projects |
with a planned total investment gross amount of | ||
$3,000,000 or more and of the alternatives | ||
considered by the utility to such individual | ||
projects including any non-traditional | ||
alternatives and DER alternatives, and supporting | ||
data. This shall provide sufficiently detailed | ||
explanations of how the planned investments shall | ||
support the goals in subsection (d) of this | ||
Section. | ||
(ii) Discussion of how the utility's capital | ||
investments plan is consistent with Commission | ||
orders regarding the procurement of renewable | ||
resources as discussed in Section 16-111.5 of this | ||
Act, energy efficiency plans as discussed in | ||
Section 8-103B, distributed generation rebates as | ||
discussed in Section 16-107.6, and any other | ||
Commission order affecting the goals described in | ||
subsection (d) of this Section. | ||
(iii) A plan for achieving the applicable | ||
metrics that were approved by the Commission for | ||
the utility pursuant to subsection (e) of Section | ||
16-108.18 of this Act. | ||
(iv) A narrative discussion of the utility's | ||
vision for the distribution system over the next 5 | ||
years. | ||
(v) Any additional information requested by |
the Commission or determined through Commission | ||
rules. | ||
(I) A detailed description of historic | ||
distribution system operations and maintenance | ||
expenditures for the preceding 5 years and of planned | ||
or projected operations and maintenance expenditures | ||
for the period covered by the planning process | ||
required by this Section, as well as the data, | ||
reasoning and explanation supporting planned or | ||
projected expenditures. Any additional information | ||
requested by the Commission or determined through | ||
Commission rules. | ||
(J) A detailed plan for achieving the applicable | ||
metrics that were approved by the Commission for the | ||
utility pursuant to subsection (e) of Section | ||
16-108.18 of this Act, including, but not limited to, | ||
the following: | ||
(i) A description of, exclusive of low-income | ||
rate relief programs and other income-qualified | ||
programs, how the utility is supporting efforts to | ||
bring 40% of benefits from programs, policies, and | ||
initiatives proposed in their Multi-Year | ||
Integrated Grid Plan to ratepayers in low-income | ||
and environmental justice communities. This shall | ||
also include any information requested by the | ||
Commission or determined through Commission rules. |
Nothing in this subparagraph is meant to require a | ||
specific amount of spending in a particular | ||
geographic area. | ||
(ii) A detailed analysis of current and | ||
projected flexible resources, including resource | ||
type, size (in MW and MWh), location and | ||
environmental impact, as well as anticipated needs | ||
that can be met using flexible resources, to meet | ||
the goals described in subsection (d) of this | ||
Section, to meet the applicable metrics that were | ||
approved by the Commission for the utility | ||
pursuant to subsection (e) of Section 16-108.18 of | ||
this Act, and any other Commission order affecting | ||
the goals described in subsection (d) of this | ||
Section. | ||
(iii) Any additional information requested by | ||
the Commission or determined through Commission | ||
rules. | ||
(K) Identification of potential cost-effective | ||
solutions from nontraditional and third-party owned | ||
investments that could meet anticipated grid needs, | ||
including, but not limited to, distributed energy | ||
resources procurements, tariffs or contracts, | ||
programmatic solutions, rate design options, | ||
technologies or programs that facilitate load | ||
flexibility, nonwires alternatives, and other |
solutions that are intended to meet the objectives | ||
described at subsection (d). It is the policy of this | ||
State that cost-effective third-party or | ||
customer-owned distributed energy resources create | ||
robust competition and customer choice and shall be | ||
considered as appropriate. The Commission shall | ||
establish rules determining data or methods for | ||
Solution Sourcing Opportunities. | ||
(L) A detailed description of the utility's | ||
interoperability plan, which must describe the manner | ||
in which the electric utility's current and planned | ||
distribution system investments will work together and | ||
exchange information and data, the extent to which the | ||
utility is implementing open standards and interfaces | ||
with third-party distributed energy resource owners | ||
and aggregators, and the utility's plan for | ||
interoperability testing and certification. | ||
(3) To the extent any information in utilities' | ||
Multi-Year Integrated Grid Plans is designated as | ||
confidential and proprietary under the Commission's rules, | ||
the proponent of the designation shall have the burden of | ||
making the requisite showing under the Commission's rules. | ||
For data that is determined to be confidential or that | ||
includes personally identifiable information, the | ||
Commission may develop procedures and processes to enable | ||
data sharing with parties and stakeholders while ensuring |
the confidentiality of the information. All confidential | ||
information exchanged, submitted, or shared by a utility | ||
pursuant to this Section shall be protected from | ||
intentional and accidental dissemination. The Commission | ||
shall have authority to supervise, protect, and restrict | ||
access to all confidential, commercially sensitive, or | ||
system security related information and data, and shall be | ||
authorized to take all necessary steps to protect that | ||
information from unauthorized disclosure. This paragraph | ||
shall not be interpreted to require a utility to make | ||
publicly available any information or data that could | ||
compromise the physical or cyber security of a utility's | ||
distribution system. Any party that accidentally | ||
disseminates confidential information obtained pursuant to | ||
a proceeding initiated in accordance with this Section, or | ||
is the victim of a cyber-security breach, must notify the | ||
affected utility, the Illinois Attorney General, and the | ||
Commission staff with 24 hours of knowledge of such | ||
dissemination or breach. Any party that fails to provide | ||
required notification of such a breach shall be subject to | ||
remedies available to the Commission and the Illinois | ||
Attorney General. | ||
(4) It is the policy of this State that holistic | ||
consideration of all related investments, planning | ||
processes, tariffs, rate design options, programs, and | ||
other utility policies and plans shall be required. To |
that end, the Commission shall consider, comprehensively, | ||
the impact of all related plans, tariffs, programs, and | ||
policies on the Plan and on each other, including: | ||
(A) time-of-use pricing program pursuant to | ||
Section 16-107.7 of this Act, hourly pricing program | ||
pursuant to Section 16-107 of this Act, and any other | ||
time-variant or dynamic pricing program; | ||
(B) distributed generation rebate pursuant to | ||
Section 16-107.6 of this Act; | ||
(C) net electricity metering, pursuant to Section | ||
16-107.5 of this Act; | ||
(D) energy efficiency programs pursuant to Section | ||
8-103B of this Act; | ||
(E) beneficial electrification programs pursuant | ||
to Section 16-107.8 of this Act; | ||
(F) Equitable Energy Upgrade Program pursuant to | ||
Section 16-111.10 of this Act; | ||
(G) renewable energy programs and procurements set | ||
forth in the Illinois Power Agency Act, including, but | ||
not limited to, those set forth in the long-term | ||
renewable resources procurement plan developed | ||
pursuant to Section 1-20 of that Act; and | ||
(H) other plans, programs, and policies that are | ||
relevant to distribution grid investments, costs, | ||
planning, and other categories as requested by the | ||
Commission. |
The Plan shall comprehensively detail the relationship | ||
between these plans, tariffs, and programs and to the | ||
electric utility's achievement of the objectives in | ||
subsection (d). The Plan shall be designed to coordinate | ||
each of these plans, programs, and tariffs with the | ||
electric utility's long-term distribution system | ||
investment planning in order to maximize the benefits of | ||
each. | ||
(5) The initiating order for the initial Multi-Year | ||
Integrated Grid Plan, as well as each electric utility's | ||
subsequent Integrated Grid Plans under subsection (g), | ||
shall begin a contested proceeding as described in | ||
subsection (d) of Section 10-101.1 of this Act. | ||
(A) In evaluating a utility's Plan, the Commission | ||
shall consider, at minimum, whether the Plan: | ||
(1) meets the objectives of this Section; | ||
(2) includes the components in paragraph (2) | ||
of subsection (f) of this Section; | ||
(3) considers and incorporates, where | ||
practicable, input from interested stakeholders, | ||
including parties and people who offer public | ||
comment without legal representation; | ||
(4) considers nontraditional, including | ||
third-party owned, investment alternatives that | ||
can meet grid needs and provide additional | ||
benefits (including consumer, economic, and |
environmental benefits) beyond comparable, | ||
traditional utility-planned capital investments; | ||
(5) equitably benefits environmental justice | ||
communities; and | ||
(6) maximizes consumer, environmental, | ||
economic, and community benefits over a 10-year | ||
horizon. | ||
(B) The Commission, after notice and hearing, | ||
shall modify each electric utility's Plan as necessary | ||
to comply with the objectives of this Section. The | ||
Commission may approve, or modify and approve, a Plan | ||
only if it finds that the Plan is reasonable, complies | ||
with the objectives and requirements of this Section, | ||
and reasonably incorporates input from parties. The | ||
Commission may reject each electric utility's Plan if | ||
it finds that the Plan does not comply with the | ||
objectives and requirements of this Section. If the | ||
Commission enters an order rejecting a Plan, the | ||
utility must refile a Plan within 3 months after that | ||
order, and until the Commission approves a Plan, the | ||
utility's existing Plan will remain in effect. | ||
(C) For the initial Integrated Grid Plan filings, | ||
the Commission shall enter an order approving, | ||
modifying, or rejecting the Plan no later than | ||
December 15, 2023. For subsequent Integrated Grid Plan | ||
filings, the Commission shall enter an order |
approving, modifying, or rejecting the Plan no later | ||
than December 15 of the year in which it was filed. | ||
(D) Each electric utility shall file its proposed | ||
Initial Multi-Year Integrated Grid Plan no later than | ||
January 20, 2023. Prior to that date and following the | ||
initiating order, the Commission shall initiate a case | ||
management conference and shall take any appropriate | ||
steps to begin meaningful consideration of issues, | ||
including enabling interested parties to begin | ||
conducting discovery. | ||
(6) As part of its order approving a utility's | ||
Multi-Year Integrated Grid Plan, including any | ||
modifications required, the Commission may create a | ||
subsequent implementation plan docket, or multiple | ||
implementation plan dockets, if the Commission determines | ||
that multiple dockets would be preferable, to consider a | ||
utility's detailed plan or plans, as directed in the | ||
Commission's order. | ||
(g) No later than January 20, 2026 and every 4 years | ||
thereafter, each electric utility subject to this Section | ||
shall file a new Multi-Year Integrated Grid Plan for the | ||
subsequent 4 delivery years after the completion of the | ||
then-effective Plan. Each Plan shall meet the requirements | ||
described in subsection (f) of this Section, and shall be | ||
preceded by a workshop process which meets the same | ||
requirements described in subsection (e). If appropriate, the |
Commission may require additional implementation dockets to | ||
follow Subsequent Multi-Year Integrated Grid Plan filings. | ||
(h) During the period leading to approval of the first | ||
Multi-Year Integrated Grid Plan, each electric utility will | ||
necessarily continue to invest in its distribution grid. Those | ||
investments will be subject to a determination of prudence and | ||
reasonableness consistent with Commission practice and law. | ||
Any failure of such investments to conform to the Multi-Year | ||
Integrated Grid Plan ultimately approved shall not imply | ||
imprudence or unreasonableness. | ||
(i) The Commission shall adopt rules to carry out the
| ||
provisions of this Section under the emergency rulemaking
| ||
provisions set forth in Section 5-45 of the Illinois
| ||
Administrative Procedure Act, and such emergency rules may
be | ||
effective no later than 90 days after the effective date of
| ||
this amendatory Act of the 102nd General Assembly. | ||
(220 ILCS 5/16-107.5)
| ||
Sec. 16-107.5. Net electricity metering. | ||
(a) The General Assembly Legislature finds and declares | ||
that a program to provide net electricity
metering, as defined | ||
in this Section,
for eligible customers can encourage private | ||
investment in renewable energy
resources, stimulate
economic | ||
growth, enhance the continued diversification of Illinois' | ||
energy
resource mix, and protect
the Illinois environment. | ||
Further, to achieve the goals of this Act that robust options
|
for customer-site distributed generation continue to thrive in
| ||
Illinois, the General Assembly finds that a predictable
| ||
transition must be ensured for customers between full net
| ||
metering at the retail electricity rate to the distribution
| ||
generation rebate described in Section 16-107.6.
| ||
(b) As used in this Section, (i) "community renewable | ||
generation project" shall have the meaning set forth in | ||
Section 1-10 of the Illinois Power Agency Act; (ii) "eligible | ||
customer" means a retail
customer that owns , hosts, or | ||
operates , including any third-party owned systems, a
solar, | ||
wind, or other eligible renewable electrical generating | ||
facility with a rated capacity of not more than
2,000 | ||
kilowatts that is
located on the customer's premises or | ||
customer's side of the billing meter and is intended primarily | ||
to offset the customer's
own current or
future electrical | ||
requirements; (iii) "electricity provider" means an electric | ||
utility or alternative retail electric supplier; (iv) | ||
"eligible renewable electrical generating facility" means a | ||
generator , which may include the co-location
of an energy | ||
storage system, that is interconnected under rules adopted by | ||
the Commission and is powered by solar electric energy, wind, | ||
dedicated crops grown for electricity generation, agricultural | ||
residues, untreated and unadulterated wood waste, landscape | ||
trimmings, livestock manure, anaerobic digestion of livestock | ||
or food processing waste, fuel cells or microturbines powered | ||
by renewable fuels, or hydroelectric energy; (v) "net |
electricity metering" (or "net metering") means the
| ||
measurement, during the
billing period applicable to an | ||
eligible customer, of the net amount of
electricity supplied | ||
by an
electricity provider to the customer customer's premises | ||
or provided to the electricity provider by the customer or | ||
subscriber; (vi) "subscriber" shall have the meaning as set | ||
forth in Section 1-10 of the Illinois Power Agency Act; and | ||
(vii) "subscription" shall have the meaning set forth in | ||
Section 1-10 of the Illinois Power Agency Act ; (viii) "energy
| ||
storage system" means commercially available technology that
| ||
is capable of absorbing energy and storing it for a period of
| ||
time for use at a later time, including, but not limited to,
| ||
electrochemical, thermal, and electromechanical technologies,
| ||
and may be interconnected behind the customer's meter or
| ||
interconnected behind its own meter; and (ix) "future
| ||
electrical requirements" means modeled electrical requirements | ||
upon occupation of a new or vacant property, and other | ||
reasonable expectations of future electrical use, as well as, | ||
for occupied properties, a reasonable approximation of the | ||
annual load of 2 electric vehicles and, for non-electric | ||
heating customers, a reasonable approximation of the
| ||
incremental electric load associated with fuel switching. The
| ||
approximations shall be applied to the appropriate net
| ||
metering tariff and do not need to be unique to each
individual | ||
eligible customer. The utility shall submit these
| ||
approximations to the Commission for review, modification, and
|
approval .
| ||
(c) A net metering facility shall be equipped with | ||
metering equipment that can measure the flow of electricity in | ||
both directions at the same rate. | ||
(1) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 | ||
of this Act as of July 1, 2011 and whose electric delivery | ||
service is provided and measured on a kilowatt-hour basis | ||
and electric supply service is not provided based on | ||
hourly pricing, this shall typically be accomplished | ||
through use of a single, bi-directional meter. If the | ||
eligible customer's existing electric revenue meter does | ||
not meet this requirement, the electricity provider shall | ||
arrange for the local electric utility or a meter service | ||
provider to install and maintain a new revenue meter at | ||
the electricity provider's expense, which may be the smart | ||
meter described by subsection (b) of Section 16-108.5 of | ||
this Act. | ||
(2) For eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 | ||
of this Act as of July 1, 2011 and whose electric delivery | ||
service is provided and measured on a kilowatt demand | ||
basis and electric supply service is not provided based on | ||
hourly pricing, this shall typically be accomplished | ||
through use of a dual channel meter capable of measuring | ||
the flow of electricity both into and out of the |
customer's facility at the same rate and ratio. If such | ||
customer's existing electric revenue meter does not meet | ||
this requirement, then the electricity provider shall | ||
arrange for the local electric utility or a meter service | ||
provider to install and maintain a new revenue meter at | ||
the electricity provider's expense, which may be the smart | ||
meter described by subsection (b) of Section 16-108.5 of | ||
this Act. | ||
(3) For all other eligible customers, until such time | ||
as the local electric utility installs a smart meter, as | ||
described by subsection (b) of Section 16-108.5 of this | ||
Act, the electricity provider may arrange for the local | ||
electric utility or a meter service provider to install | ||
and maintain metering equipment capable of measuring the | ||
flow of electricity both into and out of the customer's | ||
facility at the same rate and ratio, typically through the | ||
use of a dual channel meter. If the eligible customer's | ||
existing electric revenue meter does not meet this | ||
requirement, then the costs of installing such equipment | ||
shall be paid for by the customer.
| ||
(d) An electricity provider shall
measure and charge or | ||
credit for the net
electricity supplied to eligible customers | ||
or provided by eligible customers whose electric service has | ||
not been declared competitive pursuant to Section 16-113 of | ||
this Act as of July 1, 2011 and whose electric delivery service | ||
is provided and measured on a kilowatt-hour basis and electric |
supply service is not provided based on hourly pricing in
the | ||
following manner:
| ||
(1) If the amount of electricity used by the customer | ||
during the billing
period exceeds the
amount of | ||
electricity produced by the customer, the electricity | ||
provider shall charge the customer for the net electricity | ||
supplied to and used
by the customer as provided in | ||
subsection (e-5) of this Section.
| ||
(2) If the amount of electricity produced by a | ||
customer during the billing period exceeds the amount of | ||
electricity used by the customer during that billing | ||
period, the electricity provider supplying that customer | ||
shall apply a 1:1 kilowatt-hour credit to a subsequent | ||
bill for service to the customer for the net electricity | ||
supplied to the electricity provider. The electricity | ||
provider shall continue to carry over any excess | ||
kilowatt-hour credits earned and apply those credits to | ||
subsequent billing periods to offset any | ||
customer-generator consumption in those billing periods | ||
until all credits are used or until the end of the | ||
annualized period.
| ||
(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, | ||
or in the event that the retail customer terminates | ||
service with the electricity provider prior to the end of | ||
the year or the annualized period, any remaining credits |
in the customer's account shall expire.
| ||
(d-5) An electricity provider shall measure and charge or | ||
credit for the net electricity
supplied to eligible customers | ||
or provided by eligible customers whose electric service has | ||
not
been declared competitive pursuant to Section 16-113 of | ||
this Act as of July 1, 2011 and whose electric delivery
service | ||
is provided and measured on a kilowatt-hour basis and electric | ||
supply service is provided
based on hourly pricing or | ||
time-of-use rates in the following manner: | ||
(1) If the amount of electricity used by the customer | ||
during any hourly period or time-of-use period exceeds the | ||
amount of electricity produced by the customer, the | ||
electricity provider shall charge the customer for the net | ||
electricity supplied to and used by the customer according | ||
to the terms of the contract or tariff to which the same | ||
customer would be assigned to or be eligible for if the | ||
customer was not a net metering customer. | ||
(2) If the amount of electricity produced by a | ||
customer during any hourly period or time-of-use period | ||
exceeds the amount of electricity used by the customer | ||
during that hourly period or time-of-use period , the | ||
energy provider shall apply a credit for the net | ||
kilowatt-hours produced in such period. The credit shall | ||
consist of an energy credit and a delivery service credit. | ||
The energy
credit shall be valued at the same price per | ||
kilowatt-hour as the electric service provider
would |
charge for kilowatt-hour energy sales during that same | ||
hourly period or time-of-use period . The delivery credit | ||
shall be equal to the net kilowatt-hours produced in such | ||
hourly period or time-of-use period times a credit that | ||
reflects all kilowatt-hour based charges in the customer's | ||
electric service rate, excluding energy charges. | ||
(e) An electricity provider shall measure and charge or | ||
credit for the net electricity supplied to eligible customers | ||
whose electric service has not been declared competitive | ||
pursuant to Section 16-113 of this Act as of July 1, 2011 and | ||
whose electric delivery service is provided and measured on a | ||
kilowatt demand basis and electric supply service is not | ||
provided based on hourly pricing in the following manner: | ||
(1) If the amount of electricity used by the customer | ||
during the billing period exceeds the amount of | ||
electricity produced by the customer, then the electricity | ||
provider shall charge the customer for the net electricity | ||
supplied to and used by the customer as provided in | ||
subsection (e-5) of this Section. The customer shall | ||
remain responsible for all taxes, fees, and utility | ||
delivery charges that would otherwise be applicable to the | ||
net amount of electricity used by the customer. | ||
(2) If the amount of electricity produced by a | ||
customer during the billing period exceeds the amount of | ||
electricity used by the customer during that billing | ||
period, then the electricity provider supplying that |
customer shall apply a 1:1 kilowatt-hour credit that | ||
reflects the kilowatt-hour based charges in the customer's | ||
electric service rate to a subsequent bill for service to | ||
the customer for the net electricity supplied to the | ||
electricity provider. The electricity provider shall | ||
continue to carry over any excess kilowatt-hour credits | ||
earned and apply those credits to subsequent billing | ||
periods to offset any customer-generator consumption in | ||
those billing periods until all credits are used or until | ||
the end of the annualized period. | ||
(3) At the end of the year or annualized over the | ||
period that service is supplied by means of net metering, | ||
or in the event that the retail customer terminates | ||
service with the electricity provider prior to the end of | ||
the year or the annualized period, any remaining credits | ||
in the customer's account shall expire. | ||
(e-5) An electricity provider shall provide electric | ||
service to eligible customers who utilize net metering at | ||
non-discriminatory rates that are identical, with respect to | ||
rate structure, retail rate components, and any monthly | ||
charges, to the rates that the customer would be charged if not | ||
a net metering customer. An electricity provider shall not | ||
charge net metering customers any fee or charge or require | ||
additional equipment, insurance, or any other requirements not | ||
specifically authorized by interconnection standards | ||
authorized by the Commission, unless the fee, charge, or other |
requirement would apply to other similarly situated customers | ||
who are not net metering customers. The customer will remain | ||
responsible for all taxes, fees, and utility delivery charges | ||
that would otherwise be applicable to the net amount of | ||
electricity used by the customer. Subsections (c) through (e) | ||
of this Section shall not be construed to prevent an | ||
arms-length agreement between an electricity provider and an | ||
eligible customer that sets forth different prices, terms, and | ||
conditions for the provision of net metering service, | ||
including, but not limited to, the provision of the | ||
appropriate metering equipment for non-residential customers.
| ||
(f) Notwithstanding the requirements of subsections (c) | ||
through (e-5) of this Section, an electricity provider must | ||
require dual-channel metering for customers operating eligible | ||
renewable electrical generating facilities with a nameplate | ||
rating up to 2,000 kilowatts and to whom the provisions of | ||
neither subsection (d), (d-5), nor (e) of this Section apply. | ||
In such cases, electricity charges and credits shall be | ||
determined as follows:
| ||
(1) The electricity provider shall assess and the | ||
customer remains responsible for all taxes, fees, and | ||
utility delivery charges that would otherwise be | ||
applicable to the gross amount of kilowatt-hours supplied | ||
to the eligible customer by the electricity provider. | ||
(2) Each month that service is supplied by means of | ||
dual-channel metering, the electricity provider shall |
compensate the eligible customer for any excess | ||
kilowatt-hour credits at the electricity provider's | ||
avoided cost of electricity supply over the monthly period | ||
or as otherwise specified by the terms of a power-purchase | ||
agreement negotiated between the customer and electricity | ||
provider. | ||
(3) For all eligible net metering customers taking | ||
service from an electricity provider under contracts or | ||
tariffs employing hourly or time-of-use time of use rates, | ||
any monthly consumption of electricity shall be calculated | ||
according to the terms of the contract or tariff to which | ||
the same customer would be assigned to or be eligible for | ||
if the customer was not a net metering customer. When | ||
those same customer-generators are net generators during | ||
any discrete hourly or time-of-use time of use period, the | ||
net kilowatt-hours produced shall be valued at the same | ||
price per kilowatt-hour as the electric service provider | ||
would charge for retail kilowatt-hour sales during that | ||
same time-of-use time of use period.
| ||
(g) For purposes of federal and State laws providing | ||
renewable energy credits or greenhouse gas credits, the | ||
eligible customer shall be treated as owning and having title | ||
to the renewable energy attributes, renewable energy credits, | ||
and greenhouse gas emission credits related to any electricity | ||
produced by the qualified generating unit. The electricity | ||
provider may not condition participation in a net metering |
program on the signing over of a customer's renewable energy | ||
credits; provided, however, this subsection (g) shall not be | ||
construed to prevent an arms-length agreement between an | ||
electricity provider and an eligible customer that sets forth | ||
the ownership or title of the credits.
| ||
(h) Within 120 days after the effective date of this
| ||
amendatory Act of the 95th General Assembly, the Commission | ||
shall establish standards for net metering and, if the | ||
Commission has not already acted on its own initiative, | ||
standards for the interconnection of eligible renewable | ||
generating equipment to the utility system. The | ||
interconnection standards shall address any procedural | ||
barriers, delays, and administrative costs associated with the | ||
interconnection of customer-generation while ensuring the | ||
safety and reliability of the units and the electric utility | ||
system. The Commission shall consider the Institute of | ||
Electrical and Electronics Engineers (IEEE) Standard 1547 and | ||
the issues of (i) reasonable and fair fees and costs, (ii) | ||
clear timelines for major milestones in the interconnection | ||
process, (iii) nondiscriminatory terms of agreement, and (iv) | ||
any best practices for interconnection of distributed | ||
generation. | ||
(h-5) Within 90 days after the effective date of this
| ||
amendatory Act of the 102nd General Assembly, the Commission
| ||
shall:
| ||
(1) establish an Interconnection Working Group. The
|
working group shall include representatives from electric
| ||
utilities, developers of renewable electric generating
| ||
facilities, other industries that regularly apply for
| ||
interconnection with the electric utilities,
| ||
representatives of distributed generation customers, the
| ||
Commission Staff, and such other stakeholders with a
| ||
substantial interest in the topics addressed by the
| ||
Interconnection Working Group. The Interconnection Working | ||
Group shall address at least
the following issues: | ||
(A) cost and best available technology for
| ||
interconnection and metering, including the
| ||
standardization and publication of standard costs; | ||
(B) transparency, accuracy and use of the
| ||
distribution interconnection queue and hosting
| ||
capacity maps; | ||
(C) distribution system upgrade cost avoidance
| ||
through use of advanced inverter functions; | ||
(D) predictability of the queue management process
| ||
and enforcement of timelines; | ||
(E) benefits and challenges associated with group
| ||
studies and cost sharing; | ||
(F) minimum requirements for application to the
| ||
interconnection process and throughout the
| ||
interconnection process to avoid queue clogging
| ||
behavior; | ||
(G) process and customer service for
|
interconnecting customers adopting distributed energy
| ||
resources, including energy storage; | ||
(H) options for metering distributed energy
| ||
resources, including energy storage; | ||
(I) interconnection of new technologies, including
| ||
smart inverters and energy storage; | ||
(J) collect, share, and examine data on Level 1 | ||
interconnection costs, including cost and type of | ||
upgrades required for interconnection, and use this | ||
data to inform the final standardized cost of Level 1 | ||
interconnection; and | ||
(K) such other technical,
policy, and tariff | ||
issues related to and affecting
interconnection | ||
performance and customer service as
determined by the | ||
Interconnection Working Group. | ||
The Commission may create subcommittees
of the | ||
Interconnection Working Group to focus on specific issues | ||
of
importance, as appropriate. The Interconnection Working | ||
Group shall report
to the Commission on recommended | ||
improvements to
interconnection rules and tariffs and | ||
policies as
determined by the Interconnection Working | ||
Group at least every 6 months.
Such reports shall include | ||
consensus recommendations of
the Interconnection Working | ||
Group and, if applicable, additional
recommendations for | ||
which consensus was not reached. The
Commission shall use | ||
the report from the Interconnection Working Group to
|
determine whether processes should be commenced to
| ||
formally codify or implement the recommendations; | ||
(2) create or contract for an Ombudsman to resolve
| ||
interconnection disputes through non-binding arbitration. | ||
The Ombudsman may be paid in full or in part through fees | ||
levied on the initiators of the dispute; and | ||
(3) determine a single standardized cost for Level 1
| ||
interconnections, which shall not exceed $200. | ||
(i) All electricity providers shall begin to offer net | ||
metering
no later than April 1,
2008.
| ||
(j) An electricity provider shall provide net metering to | ||
eligible
customers according to subsections (d), (d-5), and
| ||
(e). Eligible renewable electrical generating facilities for | ||
which eligible customers registered for net metering before | ||
January 1, 2025 shall continue to receive net metering | ||
services according to subsections (d), (d-5), and (e) of this | ||
Section for the lifetime of the system, regardless of whether | ||
those retail customers change electricity providers or whether | ||
the retail customer benefiting from the system changes. On and | ||
after January 1, 2025, any eligible customer that applies for | ||
net metering and previously would have qualified under | ||
subsections (d), (d-5), or (e) shall only be eligible for net | ||
metering as described in subsection (n). until the load of its | ||
net metering customers equals 5% of
the total peak demand | ||
supplied by
that electricity provider during the
previous | ||
year. After such time as the load of the electricity |
provider's net metering customers equals 5% of the total peak | ||
demand supplied by that electricity provider during the | ||
previous year, eligible customers that begin taking net | ||
metering shall only be eligible for netting of energy.
| ||
(k) Each electricity provider shall maintain records and | ||
report annually to the Commission the total number of net | ||
metering customers served by the provider, as well as the | ||
type, capacity, and energy sources of the generating systems | ||
used by the net metering customers. Nothing in this Section | ||
shall limit the ability of an electricity provider to request | ||
the redaction of information deemed by the Commission to be | ||
confidential business information. | ||
(l)(1) Notwithstanding the definition of "eligible | ||
customer" in item (ii) of subsection (b) of this Section, each | ||
electricity provider shall allow net metering as set forth in | ||
this subsection (l) and for the following projects , provided | ||
that only electric utilities serving more than 200,000 | ||
customers as of January 1, 2021 shall provide net metering for | ||
projects that are eligible for subparagraph (C) of this | ||
paragraph (1) and have energized after the effective date of | ||
this amendatory Act of the 102nd General Assembly :
| ||
(A) properties owned or leased by multiple customers | ||
that contribute to the operation of an eligible renewable | ||
electrical generating facility through an ownership or | ||
leasehold interest of at least 200 watts in such facility, | ||
such as a community-owned wind project, a community-owned |
biomass project, a community-owned solar project, or a | ||
community methane digester processing livestock waste from | ||
multiple sources, provided that the facility is also | ||
located within the utility's service territory;
| ||
(B) individual units, apartments, or properties | ||
located in a single building that are owned or leased by | ||
multiple customers and collectively served by a common | ||
eligible renewable electrical generating facility, such as | ||
an office or apartment building, a shopping center or | ||
strip mall served by photovoltaic panels on the roof; and
| ||
(C) subscriptions to community renewable generation | ||
projects , including community renewable generation | ||
projects on the customer's side of the billing meter of a | ||
host facility and partially used for the customer's own | ||
load . | ||
In addition, the nameplate capacity of the eligible | ||
renewable electric generating facility that serves the demand | ||
of the properties, units, or apartments identified in | ||
paragraphs (1) and (2) of this subsection (l) shall not exceed | ||
5,000 2,000 kilowatts in nameplate capacity in total.
Any | ||
eligible renewable electrical generating facility or community | ||
renewable generation project that is powered by photovoltaic | ||
electric energy and installed after the effective date of this | ||
amendatory Act of the 99th General Assembly must be installed | ||
by a qualified person in compliance with the requirements of | ||
Section 16-128A of the Public Utilities Act and any rules or |
regulations adopted thereunder. | ||
(2) Notwithstanding anything to the contrary, an | ||
electricity provider shall provide credits for the electricity | ||
produced by the projects described in paragraph (1) of this | ||
subsection (l). The electricity provider shall provide credits | ||
that include at least energy supply, capacity, transmission, | ||
and, if applicable, the purchased energy adjustment at the | ||
subscriber's energy supply rate on the subscriber's monthly | ||
bill equal to the subscriber's share of the production of | ||
electricity from the project, as determined by paragraph (3) | ||
of this subsection (l). For customers with transmission or | ||
capacity charges not charged on a kilowatt-hour basis, the | ||
electricity provider shall prepare a reasonable approximation | ||
of the kilowatt-hour equivalent value and provide that value | ||
as a monetary credit. The electricity provider shall submit | ||
these approximation methodologies to the Commission for | ||
review, modification, and approval. Notwithstanding anything | ||
to the contrary, customers on payment plans or participating | ||
in budget billing programs shall have credits applied on a | ||
monthly basis. | ||
(3) Notwithstanding anything to the contrary and | ||
regardless of whether a subscriber to an eligible community | ||
renewable generation project receives power and energy service | ||
from the electric utility or an alternative retail electric | ||
supplier, for projects eligible under paragraph (C) of | ||
subparagraph (1) of this subsection (l), electric utilities |
serving more than 200,000 customers as of January 1, 2021 | ||
shall provide the monetary credits to a subscriber's | ||
subsequent bill for the electricity produced by community | ||
renewable generation projects. The electric utility shall | ||
provide monetary credits to a subscriber's subsequent bill at | ||
the utility's total price to compare equal to the subscriber's | ||
share of the production of electricity from the project, as | ||
determined by paragraph (5) of this subsection (l). For the | ||
purposes of this subsection, "total price to compare" means | ||
the rate or rates published by the Illinois Commerce | ||
Commission for energy supply for eligible customers receiving | ||
supply service from the electric utility, and shall include | ||
energy, capacity, transmission, and the purchased energy | ||
adjustment. Notwithstanding anything to the contrary, | ||
customers on payment plans or participating in budget billing | ||
programs shall have credits applied on a monthly basis. Any | ||
applicable credit or reduction in load obligation from the | ||
production of the community renewable generating projects | ||
receiving a credit under this subsection shall be credited to | ||
the electric utility to offset the cost of providing the | ||
credit. To the extent that the credit or load obligation | ||
reduction does not completely offset the cost of providing the | ||
credit to subscribers of community renewable generation | ||
projects as described in this subsection, the electric utility | ||
may recover the remaining costs through its Multi-Year Rate | ||
Plan. All electric utilities serving 200,000 or fewer |
customers as of January 1, 2021 shall only provide the | ||
monetary credits to a subscriber's subsequent bill for the | ||
electricity produced by community renewable generation | ||
projects if the subscriber receives power and energy service | ||
from the electric utility. Alternative retail electric | ||
suppliers providing power and energy service to a subscriber | ||
located within the service territory of an electric utility | ||
not subject to Sections 16-108.18 and 16-118 shall provide the | ||
monetary credits to the subscriber's subsequent bill for the | ||
electricity produced by community renewable generation | ||
projects. | ||
(4) If requested by the owner or operator of a community | ||
renewable generating project, an electric utility serving more | ||
than 200,000 customers as of January 1, 2021 shall enter into a | ||
net crediting agreement with the owner or operator to include | ||
a subscriber's subscription fee on the subscriber's monthly | ||
electric bill and provide the subscriber with a net credit | ||
equivalent to the total bill credit value for that generation | ||
period minus the subscription fee, provided the subscription | ||
fee is structured as a fixed percentage of bill credit value. | ||
The net crediting agreement shall set forth payment terms from | ||
the electric utility to the owner or operator of the community | ||
renewable generating project, and the electric utility may | ||
charge a net crediting fee to the owner or operator of a | ||
community renewable generating project that may not exceed 2% | ||
of the bill credit value. Notwithstanding anything to the |
contrary, an electric utility serving 200,000 customers or | ||
fewer as of January 1, 2021 shall not be obligated to enter | ||
into a net crediting agreement with the owner or operator of a | ||
community renewable generating project. | ||
(5) (3) For the purposes of facilitating net metering, the | ||
owner or operator of the eligible renewable electrical | ||
generating facility or community renewable generation project | ||
shall be responsible for determining the amount of the credit | ||
that each customer or subscriber participating in a project | ||
under this subsection (l) is to receive in the following | ||
manner:
| ||
(A) The owner or operator shall, on a monthly basis, | ||
provide to the electric utility the kilowatthours of | ||
generation attributable to each of the utility's retail | ||
customers and subscribers participating in projects under | ||
this subsection (l) in accordance with the customer's or | ||
subscriber's share of the eligible renewable electric | ||
generating facility's or community renewable generation | ||
project's output of power and energy for such month. The | ||
owner or operator shall electronically transmit such | ||
calculations and associated documentation to the electric | ||
utility, in a format or method set forth in the applicable | ||
tariff, on a monthly basis so that the electric utility | ||
can reflect the monetary credits on customers' and | ||
subscribers' electric utility bills. The electric utility | ||
shall be permitted to revise its tariffs to implement the |
provisions of this amendatory Act of the 102nd General | ||
Assembly this amendatory Act of the 99th General Assembly . | ||
The owner or operator shall separately provide the | ||
electric utility with the documentation detailing the | ||
calculations supporting the credit in the manner set forth | ||
in the applicable tariff. | ||
(B) For those participating customers and subscribers | ||
who receive their energy supply from an alternative retail | ||
electric supplier, the electric utility shall remit to the | ||
applicable alternative retail electric supplier the | ||
information provided under subparagraph (A) of this | ||
paragraph (3) for such customers and subscribers in a | ||
manner set forth in such alternative retail electric | ||
supplier's net metering program, or as otherwise agreed | ||
between the utility and the alternative retail electric | ||
supplier. The alternative retail electric supplier shall | ||
then submit to the utility the amount of the charges for | ||
power and energy to be applied to such customers and | ||
subscribers, including the amount of the credit associated | ||
with net metering. | ||
(C) A participating customer or subscriber may provide | ||
authorization as required by applicable law that directs | ||
the electric utility to submit information to the owner or | ||
operator of the eligible renewable electrical generating | ||
facility or community renewable generation project to | ||
which the customer or subscriber has an ownership or |
leasehold interest or a subscription. Such information | ||
shall be limited to the components of the net metering | ||
credit calculated under this subsection (l), including the | ||
bill credit rate, total kilowatthours, and total monetary | ||
credit value applied to the customer's or subscriber's | ||
bill for the monthly billing period. | ||
(l-5) Within 90 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly this amendatory | ||
Act of the 99th General Assembly , each electric utility | ||
subject to this Section shall file a tariff or tariffs to | ||
implement the provisions of subsection (l) of this Section, | ||
which shall, consistent with the provisions of subsection (l), | ||
describe the terms and conditions under which owners or | ||
operators of qualifying properties, units, or apartments may | ||
participate in net metering. The Commission shall approve, or | ||
approve with modification, the tariff within 120 days after | ||
the effective date of this amendatory Act of the 102nd General | ||
Assembly this amendatory Act of the 99th General Assembly . | ||
(m) Nothing in this Section shall affect the right of an | ||
electricity provider to continue to provide, or the right of a | ||
retail customer to continue to receive service pursuant to a | ||
contract for electric service between the electricity provider | ||
and the retail customer in accordance with the prices, terms, | ||
and conditions provided for in that contract. Either the | ||
electricity provider or the customer may require compliance | ||
with the prices, terms, and conditions of the contract.
|
(n) On and after January 1, 2025 At such time, if any, that | ||
the load of the electricity provider's net metering customers | ||
equals 5% of the total peak demand supplied by that | ||
electricity provider during the previous year, as specified in | ||
subsection (j) of this Section , the net metering services | ||
described in subsections (d), (d-5), and (e) , (e-5), and (f) | ||
of this Section shall no longer be offered, except as to those | ||
eligible renewable electrical generating facilities for which | ||
retail customers that are receiving net metering service under | ||
these subsections at the time the net metering services under | ||
those subsections are no longer offered ; those systems shall | ||
continue to receive net metering services described in | ||
subsections (d), (d-5), and (e) of this Section for the | ||
lifetime of the system, regardless of if those retail | ||
customers change electricity providers or whether the retail | ||
customer benefiting from the system changes. The electric | ||
utility serving more than 200,000 customers as of January 1, | ||
2021 is responsible for ensuring the billing credits continue | ||
without lapse for the lifetime of systems, as required in | ||
subsection (o) . Those retail customers that begin taking net | ||
metering service after the date that net metering services are | ||
no longer offered under such subsections shall be subject to | ||
the provisions set forth in the following paragraphs (1) | ||
through (3) of this subsection (n): | ||
(1) An electricity provider shall charge or credit for | ||
the net electricity supplied to eligible customers or |
provided by eligible customers whose electric supply | ||
service is not provided based on hourly pricing in the | ||
following manner: | ||
(A) If the amount of electricity used by the | ||
customer during the monthly billing period exceeds the | ||
amount of electricity produced by the customer, then | ||
the electricity provider shall charge the customer for | ||
the net kilowatt-hour based electricity charges | ||
reflected in the customer's electric service rate | ||
supplied to and used by the customer as provided in | ||
paragraph (3) of this subsection (n). | ||
(B) If the amount of electricity produced by a | ||
customer during the monthly billing period exceeds the | ||
amount of electricity used by the customer during that | ||
billing period, then the electricity provider | ||
supplying that customer shall apply a 1:1 | ||
kilowatt-hour energy or monetary credit kilowatt-hour | ||
supply charges to the customer's subsequent bill. The | ||
customer shall choose between 1:1 kilowatt-hour or | ||
monetary credit at the time of application.
For the | ||
purposes of this subsection, "kilowatt-hour
supply | ||
charges" means the kilowatt-hour equivalent
values for | ||
energy, capacity, transmission, and the
purchased | ||
energy adjustment, if applicable.
Notwithstanding | ||
anything to the contrary, customers on
payment plans | ||
or participating in budget billing
programs shall have |
credits applied on a monthly basis. that reflects the | ||
kilowatt-hour based energy charges in the customer's | ||
electric service rate to a subsequent bill for service | ||
to the customer for the net electricity supplied to | ||
the electricity provider. The electricity provider | ||
shall continue to carry over any excess kilowatt-hour | ||
or monetary energy credits earned and apply those | ||
credits to subsequent billing periods . For customers | ||
with transmission or capacity charges not charged on a | ||
kilowatt-hour basis, the electricity provider shall | ||
prepare a reasonable approximation of the | ||
kilowatt-hour equivalent value and provide that value | ||
as a monetary credit. The electricity provider shall | ||
submit these approximation methodologies to the | ||
Commission for review, modification, and approval. to | ||
offset any customer-generator consumption in those | ||
billing periods until all credits are used or until | ||
the end of the annualized period. | ||
(C) (Blank). At the end of the year or annualized | ||
over the period that service is supplied by means of | ||
net metering, or in the event that the retail customer | ||
terminates service with the electricity provider prior | ||
to the end of the year or the annualized period, any | ||
remaining credits in the customer's account shall | ||
expire. | ||
(2) An electricity provider shall charge or credit for |
the net electricity supplied to eligible customers or | ||
provided by eligible customers whose electric supply | ||
service is provided based on hourly pricing in the | ||
following manner: | ||
(A) If the amount of electricity used by the | ||
customer during any hourly period exceeds the amount | ||
of electricity produced by the customer, then the | ||
electricity provider shall charge the customer for the | ||
net electricity supplied to and used by the customer | ||
as provided in paragraph (3) of this subsection (n). | ||
(B) If the amount of electricity produced by a | ||
customer during any hourly period exceeds the amount | ||
of electricity used by the customer during that hourly | ||
period, the energy provider shall calculate an energy | ||
credit for the net kilowatt-hours produced in such | ||
period , and shall apply that credit as a monetary
| ||
credit to the customer's subsequent bill . The value of | ||
the energy credit shall be calculated using the same | ||
price per kilowatt-hour as the electric service | ||
provider would charge for kilowatt-hour energy sales | ||
during that same hourly period and shall also include
| ||
values for capacity and transmission . For customers | ||
with transmission or capacity charges not charged on a | ||
kilowatt-hour basis, the electricity provider shall | ||
prepare a reasonable approximation of the | ||
kilowatt-hour equivalent value and provide that value |
as a monetary credit. The electricity provider shall | ||
submit these approximation methodologies to the | ||
Commission for review, modification, and approval. | ||
Notwithstanding anything to the contrary, customers on
| ||
payment plans or participating in budget billing
| ||
programs shall have credits applied on a monthly | ||
basis. | ||
(3) An electricity provider shall provide electric | ||
service to eligible customers who utilize net metering at | ||
non-discriminatory rates that are identical, with respect | ||
to rate structure, retail rate components, and any monthly | ||
charges, to the rates that the customer would be charged | ||
if not a net metering customer. An electricity provider | ||
shall charge the customer for the net electricity supplied | ||
to and used by the customer according to the terms of the | ||
contract or tariff to which the same customer would be | ||
assigned or be eligible for if the customer was not a net | ||
metering customer. An electricity provider shall not | ||
charge net metering customers any fee or charge or require | ||
additional equipment, insurance, or any other requirements | ||
not specifically authorized by interconnection standards | ||
authorized by the Commission, unless the fee, charge, or | ||
other requirement would apply to other similarly situated | ||
customers who are not net metering customers. The charge | ||
or credit that the customer receives for net electricity | ||
shall be at a rate equal to the customer's energy supply |
rate. The customer remains responsible for the gross | ||
amount of delivery services charges, supply-related | ||
charges that are kilowatt based, and all taxes and fees | ||
related to such charges. The customer also remains | ||
responsible for all taxes and fees that would otherwise be | ||
applicable to the net amount of electricity used by the | ||
customer. Paragraphs (1) and (2) of this subsection (n) | ||
shall not be construed to prevent an arms-length agreement | ||
between an electricity provider and an eligible customer | ||
that sets forth different prices, terms, and conditions | ||
for the provision of net metering service, including, but | ||
not limited to, the provision of the appropriate metering | ||
equipment for non-residential customers. Nothing in this | ||
paragraph (3) shall be interpreted to mandate that a | ||
utility that is only required to provide delivery services | ||
to a given customer must also sell electricity to such | ||
customer.
| ||
(o) Within 90 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, each electric | ||
utility subject to this Section shall file a tariff, which | ||
shall, consistent with the provisions of this Section, propose | ||
the terms and conditions under which a customer may | ||
participate in net metering. The tariff for electric utilities | ||
serving more than 200,000 customers as of January 1, 2021 | ||
shall also provide a streamlined and transparent bill | ||
crediting system for net metering to be managed by the |
electric utilities. The terms and conditions shall include, | ||
but are not limited to, that an electric utility shall manage | ||
and maintain billing of net metering credits and charges | ||
regardless of if the eligible customer takes net metering | ||
under an electric utility or alternative retail electric | ||
supplier. The electric utility serving more than 200,000 | ||
customers as of January 1, 2021 shall process and approve all | ||
net metering applications, even if an eligible customer is | ||
served by an alternative retail electric supplier; and the | ||
utility shall forward application approval to the appropriate | ||
alternative retail electric supplier. Eligibility for net | ||
metering shall remain with the owner of the utility billing | ||
address such that, if an eligible renewable electrical | ||
generating facility changes ownership, the net metering | ||
eligibility transfers to the new owner. The electric utility | ||
serving more than 200,000 customers as of January 1, 2021 | ||
shall manage net metering billing for eligible customers to | ||
ensure full crediting occurs on electricity bills, including, | ||
but not limited to, ensuring net metering crediting begins | ||
upon commercial operation date, net metering billing transfers | ||
immediately if an eligible customer switches from an electric | ||
utility to alternative retail electric supplier or vice versa, | ||
and net metering billing transfers between ownership of a | ||
valid billing address. All transfers referenced in the | ||
preceding sentence shall include transfer of all banked | ||
credits. All electric utilities serving 200,000 or fewer |
customers as of January 1, 2021 shall manage net metering | ||
billing for eligible customers receiving power and energy | ||
service from the electric utility to ensure full crediting | ||
occurs on electricity bills, ensuring net metering crediting | ||
begins upon commercial operation date, net metering billing | ||
transfers immediately if an eligible customer switches from an | ||
electric utility to alternative retail electric supplier or | ||
vice versa, and net metering billing transfers between | ||
ownership of a valid billing address. Alternative retail | ||
electric suppliers providing power and energy service to | ||
eligible customers located within the service territory of an | ||
electric utility serving 200,000 or fewer customers as of | ||
January 1, 2021 shall manage net metering billing for eligible | ||
customers to ensure full crediting occurs on electricity | ||
bills, including, but not limited to, ensuring net metering | ||
crediting begins upon commercial operation date, net metering | ||
billing transfers immediately if an eligible customer switches | ||
from an electric utility to alternative retail electric | ||
supplier or vice versa, and net metering billing transfers | ||
between ownership of a valid billing address. | ||
(Source: P.A. 99-906, eff. 6-1-17 .) | ||
(220 ILCS 5/16-107.6) | ||
Sec. 16-107.6. Distributed generation rebate. | ||
(a) In this Section: | ||
"Additive services" means the services that distributed |
energy resources provide to the energy system and society that | ||
are not (1) already included in the base rebates for | ||
system-wide grid services; or (2) otherwise already | ||
compensated. Additive services may reflect, but shall not be | ||
limited to, any geographic, time-based, performance-based, and | ||
other benefits of distributed energy resources, as well as the | ||
present and future technological capabilities of distributed | ||
energy resources and present and future grid needs. | ||
"Distributed energy resource" means a wide range of | ||
technologies that are located on the customer side of the | ||
customer's electric meter, including, but not limited to, | ||
distributed generation, energy storage, electric vehicles, and | ||
demand response technologies. | ||
"Energy storage system" means commercially available | ||
technology that is capable of absorbing energy and storing it | ||
for a period of time for use at a later time, including, but | ||
not limited to, electrochemical, thermal, and | ||
electromechanical technologies, and may be interconnected | ||
behind the customer's meter or interconnected behind its own | ||
meter. | ||
"Smart inverter" means a device that converts direct | ||
current
into alternating current and meets the IEEE 1547-2018 | ||
equipment standards. Until devices that meet the IEEE | ||
1547-2018 standard are available, devices that meet the UL | ||
1741 SA standard are acceptable. can autonomously contribute | ||
to grid support during excursions from normal operating |
voltage and frequency conditions by providing each of the | ||
following: dynamic reactive and real power support, voltage | ||
and frequency ride-through, ramp rate controls, communication | ||
systems with ability to accept external commands, and other | ||
functions from the electric utility. | ||
"Subscriber" has the meaning set forth in Section 1-10 of | ||
the Illinois Power Agency Act. | ||
"Subscription" has the meaning set forth in Section 1-10 | ||
of the Illinois Power Agency Act. | ||
"System-wide grid services" means the benefits that a | ||
distributed energy resource provides to the distribution grid | ||
for a period of no less than 25 years. System-wide grid | ||
services do not vary by location, time, or the performance | ||
characteristics of the distributed energy resource. | ||
System-wide grid services include, but are not limited to, | ||
avoided or deferred distribution capacity costs, resilience | ||
and reliability benefits, avoided or deferred distribution | ||
operation and maintenance costs, distribution voltage and | ||
power quality benefits, and line loss reductions. | ||
"Threshold date" means December 31, 2024 or the date on | ||
which the utility's tariff or tariffs setting the new | ||
compensation values established under subsection (e) take | ||
effect, whichever is later. the load of an electricity | ||
provider's net metering customers equals 5% of the total peak | ||
demand supplied by that electricity provider during the | ||
previous year, as specified under subsection (j) of Section |
16-107.5 of this Act. | ||
(b) An electric utility that serves more than 200,000 | ||
customers in the State shall file a petition with the | ||
Commission requesting approval of the utility's tariff to | ||
provide a rebate to the owner or operator of a retail customer | ||
who owns or operates distributed generation , including | ||
third-party owned systems, that meets the following criteria: | ||
(1) has a nameplate generating capacity no greater | ||
than 5,000 2,000 kilowatts and is primarily used to offset | ||
a that customer's electricity load; | ||
(2) is located on the customer's side of the billing | ||
meter and premises, for the customer's own use , and not | ||
for commercial use or sales, including, but not limited | ||
to, wholesale sales of electric power and energy ; | ||
(3) is located in the electric utility's service | ||
territory; and | ||
(3) (4) is interconnected to electric distribution | ||
facilities owned by the electric utility under rules | ||
adopted by the Commission by means of the inverter or | ||
smart inverter required by this Section, as applicable. | ||
For purposes of this Section, "distributed generation" | ||
shall satisfy the definition of distributed renewable energy | ||
generation device set forth in Section 1-10 of the Illinois | ||
Power Agency Act to the extent such definition is consistent | ||
with the requirements of this Section. | ||
In addition, any new photovoltaic distributed generation |
that is installed after June 1, 2017 ( the effective date of | ||
Public Act 99-906) this amendatory Act of the 99th General | ||
Assembly must be installed by a qualified person, as defined | ||
by subsection (i) of Section 1-56 of the Illinois Power Agency | ||
Act. | ||
The tariff shall include a base rebate that compensates | ||
distributed generation for the system-wide grid services | ||
associated with distributed generation and, after the | ||
proceeding described in subsection (e) of this Section, an | ||
additional payment or payments for the additive services. The | ||
tariff shall provide that the smart inverter associated with | ||
the distributed generation shall provide autonomous response | ||
to grid conditions through its default settings as approved by | ||
the Commission. Default settings may not be changed after the | ||
execution of the interconnection agreement except by mutual | ||
agreement between the utility and the owner or operator of the | ||
distributed generation. provide that the utility shall be | ||
permitted to operate and control the smart inverter associated | ||
with the distributed generation that is the subject of the | ||
rebate for the purpose of preserving reliability during | ||
distribution system reliability events and shall address the | ||
terms and conditions of the operation and the compensation | ||
associated with the operation. Nothing in this Section shall | ||
negate or supersede Institute of Electrical and Electronics | ||
Engineers equipment interconnection requirements or standards | ||
or other similar standards or requirements. The tariff shall |
not limit the ability of the smart inverter or other | ||
distributed energy resource to provide wholesale market | ||
products such as regulation, demand response, or other | ||
services, or limit the ability of the owner of the smart | ||
inverter or the other distributed energy resource to receive | ||
compensation for providing those wholesale market products or | ||
services. The tariff shall also provide for additional uses of | ||
the smart inverter that shall be separately compensated and | ||
which may include, but are not limited to, voltage and VAR | ||
support, regulation, and other grid services. As part of the | ||
proceeding described in subsection (e) of this Section, the | ||
Commission shall review and determine whether smart inverters | ||
can provide any additional uses or services. If the Commission | ||
determines that an additional use or service would be | ||
beneficial, the Commission shall determine the terms and | ||
conditions of the operation and how the use or service should | ||
be separately compensated. | ||
(b-5) Within 30 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, each electric | ||
public utility with 3,000,000 or more retail customers shall | ||
file a tariff with the Commission that further compensates any | ||
retail customer that installs or has installed photovoltaic | ||
facilities paired with energy storage facilities on or | ||
adjacent to its premises for the benefits the facilities | ||
provide to the distribution grid. The tariff shall provide | ||
that, in addition to the other rebates identified in this |
Section, the electric utility shall rebate to such retail | ||
customer (i) the previously incurred and future costs of | ||
installing interconnection facilities and related | ||
infrastructure to enable full participation in the PJM | ||
Interconnection, LLC or its successor organization frequency | ||
regulation market; and (ii) all wholesale demand charges | ||
incurred after the effective date of this amendatory Act of | ||
the 102nd General Assembly. The Commission shall approve, or | ||
approve with modification, the tariff within 120 days after | ||
the utility's filing. | ||
(c) The proposed tariff authorized by subsection (b) of | ||
this Section shall include the following participation terms | ||
for and formulae to calculate the value of the rebates to be | ||
applied under this Section for distributed generation that | ||
satisfies the criteria set forth in subsection (b) of this | ||
Section: | ||
(1) The owner or operator of distributed generation | ||
that services (1) Until the utility files its tariff or | ||
tariffs to place into effect the rebate values established | ||
by the Commission under subsection (e) of this Section, | ||
non-residential customers not eligible for net metering | ||
under subsection (d), (d-5), or (e) of Section 16-107.5 of | ||
this Act that are taking service under a net metering | ||
program offered by an electricity provider under the terms | ||
of Section 16-107.5 of this Act may apply for a rebate as | ||
provided for in this Section. Until the threshold date, |
the The value of the rebate shall be $250 per kilowatt of | ||
nameplate generating capacity, measured as nominal DC | ||
power output, of that a non-residential customer's | ||
distributed generation. To the extent the distributed | ||
generation also has an associated energy storage, then the | ||
energy storage system shall be separately compensated with | ||
a base rebate of $250 per kilowatt-hour of nameplate | ||
capacity. Any distributed generation device that is | ||
compensated for storage in this subsection (1) before the | ||
threshold date shall participate in one or more programs | ||
determined through the Multi-Year Integrated Grid Planning | ||
process that are designed to meet peak reduction and | ||
flexibility. After the threshold date, the value of the | ||
base rebate and additional compensation for any additive | ||
services shall be as determined by the Commission in the | ||
proceeding described in subsection (e) of this Section, | ||
provided that the value of the base rebate for system-wide | ||
grid services shall not be lower than $250 per kilowatt of | ||
nameplate generating capacity of distributed generation or | ||
community renewable generation project. | ||
(2) The owner or operator of distributed generation | ||
that, before the threshold date, would have been eligible | ||
for net metering under subsection (d), (d-5), or (e) of | ||
Section 16-107.5 of this Act and that has not previously | ||
received a distributed generation rebate, may apply for a | ||
rebate as provided for in this Section. Until the |
threshold date, the value of the base rebate shall be $300 | ||
per kilowatt of nameplate generating capacity, measured as | ||
nominal DC power output, of the distributed generation. | ||
The owner or operator of distributed generation that, | ||
before the threshold date, is eligible for net metering | ||
under subsection (d), (d-5), or (e) of Section 16-107.5 of | ||
this Act may apply for a base rebate for an energy storage | ||
device that uses the same smart inverter as the | ||
distributed generation, regardless of whether the | ||
distributed generation applies for a rebate for the | ||
distributed generation device. The energy storage system | ||
shall be separately compensated at a base payment of $300 | ||
per kilowatt-hour of nameplate capacity. Any distributed | ||
generation device that is compensated for storage in this | ||
subsection (2) before the threshold date shall participate | ||
in a peak time rebate program, hourly pricing program, or | ||
time-of-use rate program offered by the applicable | ||
electric utility. After the threshold date, the value of | ||
the base rebate and additional compensation for any | ||
additive services shall be as determined by the Commission | ||
in the proceeding described in subsection (e) of this | ||
Section, provided that, prior to December 31, 2029, the | ||
value of the base rebate for system-wide services shall | ||
not be lower than $300 per kilowatt of nameplate | ||
generating capacity of distributed generation, after which | ||
it shall not be lower than $250 per kilowatt of nameplate |
capacity. | ||
(2) After the utility's tariff or tariffs setting the | ||
new rebate values established under subsection (d) of this | ||
Section take effect, retail customers may, as applicable, | ||
make the following elections: | ||
(A) Residential customers that are taking service | ||
under a net metering program offered by an electricity | ||
provider under the terms of Section 16-107.5 of this | ||
Act on the threshold date may elect to either continue | ||
to take such service under the terms of such program as | ||
in effect on such threshold date for the useful life of | ||
the customer's eligible renewable electric generating | ||
facility as defined in such Section, or file an | ||
application to receive a rebate under the terms of | ||
this Section, provided that such application must be | ||
submitted within 6 months after the effective date of | ||
the tariff approved under subsection (d) of this | ||
Section. The value of the rebate shall be the amount | ||
established by the Commission and reflected in the | ||
utility's tariff pursuant to subsection (e) of this | ||
Section. | ||
(B) Non-residential customers that are taking | ||
service under a net metering program offered by an | ||
electricity provider under the terms of Section | ||
16-107.5 of this Act on the threshold date may apply | ||
for a rebate as provided for in this Section. The value |
of the rebate shall be the amount established by the | ||
Commission and reflected in the utility's tariff | ||
pursuant to subsection (e) of this Section. | ||
(3) Upon approval of a rebate application submitted | ||
under this subsection (c), the retail customer shall no | ||
longer be entitled to receive any delivery service credits | ||
for the excess electricity generated by its facility and | ||
shall be subject to the provisions of subsection (n) of | ||
Section 16-107.5 of this Act. | ||
(4) To be eligible for a rebate described in this | ||
subsection (c), the owner or operator of the distributed | ||
generation customers who begin taking service after the | ||
effective date of this amendatory Act of the 99th General | ||
Assembly under a net metering program offered by an | ||
electricity provider under the terms of Section 16-107.5 | ||
of this Act must have a smart inverter installed and in | ||
operation on the associated with the customer's | ||
distributed generation. | ||
(d) The Commission shall review the proposed tariff | ||
authorized by subsection submitted under subsections (b) and | ||
(c) of this Section and may make changes to the tariff that are | ||
consistent with this Section and with the Commission's | ||
authority under Article IX of this Act, subject to notice and | ||
hearing. Following notice and hearing, the Commission shall | ||
issue an order approving, or approving with modification, such | ||
tariff no later than 240 days after the utility files its |
tariff. Upon the effective date of this amendatory Act of the | ||
102nd General Assembly, an electric utility shall file a | ||
petition with the Commission to amend and update any existing | ||
tariffs to comply with subsections (b) and (c). | ||
(e) By no later than June 30, 2023, When the total | ||
generating capacity of the electricity provider's net metering | ||
customers is equal to 3%, the Commission shall open an | ||
independent, statewide investigation into the value of, and | ||
compensation for, distributed energy resources. The Commission | ||
shall conduct the investigation, but may arrange for experts | ||
or consultants independent of the utilities and selected by | ||
the Commission to assist with the investigation. The cost of | ||
the investigation shall be shared by the utilities filing | ||
tariffs under subsection (b) of this Section but may be | ||
recovered as an expense through normal ratemaking procedures. | ||
an annual process and formula for calculating the value of | ||
rebates for the retail customers described in subsections (b) | ||
and (f) of this Section that submit rebate applications after | ||
the threshold date for an electric utility that elected to | ||
file a tariff pursuant to this Section. | ||
(1) The Commission shall ensure that the investigation | ||
includes, at minimum, diverse sets of stakeholders; a | ||
review of best practices in calculating the value of | ||
distributed energy resource benefits; a review of the full | ||
value of the distributed energy resources and the manner | ||
in which each component of that value is or is not |
otherwise compensated; and assessments of how the value of | ||
distributed energy resources may evolve based on the | ||
present and future technological capabilities of | ||
distributed energy resources and based on present and | ||
future grid needs. | ||
(2) The Commission's final order concluding this | ||
investigation shall establish an annual process and | ||
formula for the compensation of distributed generation and | ||
energy storage systems, and an initial set of inputs for | ||
that formula. The Commission's final order concluding this | ||
investigation shall establish base rebates that compensate | ||
distributed generation, community renewable generation | ||
projects and energy storage systems for the system-wide | ||
grid services that they provide. Those base rebate values | ||
shall be consistent across the state, and shall not vary | ||
by customer, customer class, customer location, or any | ||
other variable. With respect to rebates for distributed | ||
generation or community renewable generation projects, | ||
that rebate shall not be lower than $250 per kilowatt of | ||
nameplate generating capacity of the distributed | ||
generation or community renewable generation project. The | ||
Commission's final order concluding this proceeding shall | ||
also direct the utilities to update the formula, on an | ||
annual basis, with inputs derived from their integrated | ||
grid plans developed pursuant to Section 16-105.17. The | ||
base rebate shall be updated annually based on the annual |
updates to the formula inputs, but, with respect to | ||
rebates for distributed generation or community renewable | ||
generation projects, shall be no lower than $250 per | ||
kilowatt of nameplate generating capacity of the | ||
distributed generation or community renewable generation | ||
project. | ||
(3) The Commission shall also determine, as a part of | ||
its investigation under this subsection, whether | ||
distributed energy resources can provide any additive | ||
services. Those additive services may include services | ||
that are provided through utility-controlled responses to | ||
grid conditions. If the Commission determines that | ||
distributed energy resources can provide additive grid | ||
services, the Commission shall determine the terms and | ||
conditions for the operation and compensation of those | ||
services. That compensation shall be above and beyond the | ||
base rebate that the distributed energy generation, | ||
community renewable generation project and energy storage | ||
system receives. Compensation for additive services may | ||
vary by location, time, performance characteristics, | ||
technology types, or other variables. | ||
(4) The Commission shall ensure that compensation for | ||
distributed energy resources, including base rebates and | ||
any payments for additive services, shall reflect all | ||
reasonably known and measurable values of the distributed | ||
generation over its full expected useful life. |
Compensation for additive services shall reflect, but | ||
shall not be limited to, any geographic, time-based, | ||
performance-based, and other benefits of distributed | ||
generation, as well as the present and future | ||
technological capabilities of distributed energy resources | ||
and present and future grid needs. | ||
(5) The Commission shall consider the electric | ||
utility's integrated grid plan developed pursuant to | ||
Section 16-105.17 of this Act to help identify the value | ||
of distributed energy resources for the purpose of | ||
calculating the compensation described in this subsection. | ||
(6) The Commission shall determine additional | ||
compensation for distributed energy resources that creates | ||
savings and value on the distribution system by being | ||
co-located or in close proximity to electric vehicle | ||
charging infrastructure in use by medium-duty and | ||
heavy-duty vehicles, primarily serving environmental | ||
justice communities, as outlined in the utility integrated | ||
grid planning process under Section 16-105.17 of this Act. | ||
No later than 60 days after the Commission enters its | ||
final order under this subsection (e), each utility shall file | ||
its updated tariff or tariffs in compliance with the order, | ||
including new tariffs for the recovery of costs incurred under | ||
this subsection (e) that shall provide for volumetric-based | ||
cost recovery, and the Commission shall approve, or approve | ||
with modification, the tariff or tariffs within 240 days after |
the utility's filing. | ||
The investigation shall include diverse sets of | ||
stakeholders, calculations for valuing distributed energy | ||
resource benefits to the grid based on best practices, and | ||
assessments of present and future technological capabilities | ||
of distributed energy resources. The value of such rebates | ||
shall reflect the value of the distributed generation to the | ||
distribution system at the location at which it is | ||
interconnected, taking into account the geographic, | ||
time-based, and performance-based benefits, as well as | ||
technological capabilities and present and future grid needs.
| ||
No later than 10 days after the Commission enters its final | ||
order under this subsection (e), the utility shall file its | ||
tariff or tariffs in compliance with the order, and the | ||
Commission shall approve, or approve with modification, the | ||
tariff or tariffs within 45 days after the utility's filing. | ||
For those rebate applications filed after the threshold date | ||
but before the utility's tariff or tariffs filed pursuant to | ||
this subsection (e) take effect, the value of the rebate shall | ||
remain at the value established in subsection (c) of this | ||
Section until the tariff is approved. | ||
(f) Notwithstanding any provision of this Act to the | ||
contrary, the owner or operator , developer, or subscriber of | ||
a community renewable generation project as defined in Section | ||
1-10 of the Illinois Power Agency Act facility that is part of | ||
a net metering program provided under subsection (l) of |
Section 16-107.5 shall also be eligible to apply for the | ||
rebate described in this Section. The owner or operator of the | ||
community renewable A subscriber to the generation project | ||
facility may apply for a rebate in the amount of the | ||
subscriber's subscription only if the owner or operator, or | ||
previous owner or operator, of the community renewable | ||
generation project , developer, or previous subscriber to the | ||
same panel or panels has not already submitted an application, | ||
and, regardless of whether the subscriber is a residential or | ||
non-residential customer, may be allowed the amount identified | ||
in paragraph (1) of subsection (c) or in subsection (e) of this | ||
Section applicable to such customer on the date that the | ||
application is submitted. An application for a rebate for a | ||
portion of a project described in this subsection (f) may be | ||
submitted at or after the time that a related request for net | ||
metering is made. | ||
(g) The owner of the distributed generation or community | ||
renewable generation project may apply for the rebate or | ||
rebates approved under this Section at the time of execution | ||
of an interconnection agreement with the distribution utility | ||
and shall receive the value available at that time of | ||
execution of the interconnection agreement, provided the | ||
project reaches mechanical completion within 24 months after | ||
execution of the interconnection agreement. If the project has | ||
not reached mechanical completion within 24 months after | ||
execution, the owner may reapply for the rebate or rebates |
approved under this Section available at the time of | ||
application and shall receive the value available at the time | ||
of application. The utility shall issue the rebate no No later | ||
than 60 days after the project is energized. utility receives | ||
an application for a rebate under its tariff approved under | ||
subsection (d) or (e) of this Section, the utility shall issue | ||
a rebate to the applicant under the terms of the tariff. In the | ||
event the application is incomplete or the utility is | ||
otherwise unable to calculate the payment based on the | ||
information provided by the owner, the utility shall issue the | ||
payment no later than 60 days after the application is | ||
complete or all requested information is received. | ||
(h) An electric utility shall recover from its retail | ||
customers all of the costs of the rebates made under a tariff | ||
or tariffs approved under subsection (d) of placed into effect | ||
under this Section, including, but not limited to, the value | ||
of the rebates and all costs incurred by the utility to comply | ||
with and implement subsections (b) and (c) of this Section, | ||
but not including costs incurred by the utility to comply with | ||
and implement subsection (e) of this Section, consistent with | ||
the following provisions: | ||
(1) The utility shall defer the full amount of its | ||
costs incurred under this Section as a regulatory asset. | ||
The total costs deferred as a regulatory asset shall be | ||
amortized over a 15-year period. The unamortized balance | ||
shall be recognized as of December 31 for a given year. The |
utility shall also earn a return on the total of the | ||
unamortized balance of the regulatory assets, less any | ||
deferred taxes related to the unamortized balance, at an | ||
annual rate equal to the utility's weighted average cost | ||
of capital that includes, based on a year-end capital | ||
structure, the utility's actual cost of debt for the | ||
applicable calendar year and a cost of equity, which shall | ||
be calculated as the sum of (i) the average for the | ||
applicable calendar year of the monthly average yields of | ||
30-year U.S. Treasury bonds published by the Board of | ||
Governors of the Federal Reserve System in its weekly H.15 | ||
Statistical Release or successor publication; and (ii) 580 | ||
basis points, including a revenue conversion factor | ||
calculated to recover or refund all additional income | ||
taxes that may be payable or receivable as a result of that | ||
return. | ||
When an electric utility creates a regulatory asset | ||
under the provisions of this paragraph (1) of subsection | ||
(h) Section , the costs are recovered over a period during | ||
which customers also receive a benefit, which is in the | ||
public interest. Accordingly, it is the intent of the | ||
General Assembly that an electric utility that elects to | ||
create a regulatory asset under the provisions of this | ||
paragraph (1) Section shall recover all of the associated | ||
costs, including, but not limited to, its cost of capital | ||
as set forth in this paragraph (1) Section . After the |
Commission has approved the prudence and reasonableness of | ||
the costs that comprise the regulatory asset, the electric | ||
utility shall be permitted to recover all such costs, and | ||
the value and recoverability through rates of the | ||
associated regulatory asset shall not be limited, altered, | ||
impaired, or reduced. To enable the financing of the | ||
incremental capital expenditures, including regulatory | ||
assets, for electric utilities that serve less than | ||
3,000,000 retail customers but more than 500,000 retail | ||
customers in the State, the utility's actual year-end | ||
capital structure that includes a common equity ratio, | ||
excluding goodwill, of up to and including 50% of the | ||
total capital structure shall be deemed reasonable and | ||
used to set rates. | ||
(2) The utility, at its election, may recover all of | ||
the costs it incurs under this Section as part of a filing | ||
for a general increase in rates under Article IX of this | ||
Act, as part of an annual filing to update a | ||
performance-based formula rate under subsection (d) of | ||
Section 16-108.5 of this Act, or through an automatic | ||
adjustment clause tariff, provided that nothing in this | ||
paragraph (2) permits the double recovery of such costs | ||
from customers. If the utility elects to recover the costs | ||
it incurs under subsections (b) and (c) this Section | ||
through an automatic adjustment clause tariff, the utility | ||
may file its proposed tariff together with the tariff it |
files under subsection (b) of this Section or at a later | ||
time. The proposed tariff shall provide for an annual | ||
reconciliation, less any deferred taxes related to the | ||
reconciliation, with interest at an annual rate of return | ||
equal to the utility's weighted average cost of capital as | ||
calculated under paragraph (1) of this subsection (h), | ||
including a revenue conversion factor calculated to | ||
recover or refund all additional income taxes that may be | ||
payable or receivable as a result of that return, of the | ||
revenue requirement reflected in rates for each calendar | ||
year, beginning with the calendar year in which the | ||
utility files its automatic adjustment clause tariff under | ||
this subsection (h), with what the revenue requirement | ||
would have been had the actual cost information for the | ||
applicable calendar year been available at the filing | ||
date. The Commission shall review the proposed tariff and | ||
may make changes to the tariff that are consistent with | ||
this Section and with the Commission's authority under | ||
Article IX of this Act, subject to notice and hearing. | ||
Following notice and hearing, the Commission shall issue | ||
an order approving, or approving with modification, such | ||
tariff no later than 240 days after the utility files its | ||
tariff. | ||
(i) An electric utility shall recover from its retail | ||
customers, on a volumetric basis, all of the costs of the | ||
rebates made under a tariff or tariffs placed into effect |
under subsection (e) of this Section, including, but not | ||
limited to, the value of the rebates and all costs incurred by | ||
the utility to comply with and implement subsection (e) of | ||
this Section, consistent with the following provisions: | ||
(1) The utility may defer a portion of its costs as a | ||
regulatory asset. The Commission shall determine the | ||
portion that may be appropriately deferred as a regulatory | ||
asset. Factors that the Commission shall consider in | ||
determining the portion of costs that shall be deferred as | ||
a regulatory asset include, but are not limited to: (i) | ||
whether and the extent to which a cost effectively | ||
deferred or avoided other distribution system operating | ||
costs or capital expenditures; (ii) the extent to which a | ||
cost provides environmental benefits; (iii) the extent to | ||
which a cost improves system reliability or resilience; | ||
(iv) the electric utility's distribution system plan | ||
developed pursuant to Section 16-105.17 of this Act; (v) | ||
the extent to which a cost advances equity principles; and | ||
(vi) such other factors as the Commission deems | ||
appropriate. The remainder of costs shall be deemed an | ||
operating expense and shall be recoverable if found | ||
prudent and reasonable by the Commission. | ||
The total costs deferred as a regulatory asset shall be | ||
amortized over a 15-year period. The unamortized balance shall | ||
be recognized as of December 31 for a given year. The utility | ||
shall also earn a return on the total of the unamortized |
balance of the regulatory assets, less any deferred taxes | ||
related to the unamortized balance, at an annual rate equal to | ||
the utility's weighted average cost of capital that includes, | ||
based on a year-end capital structure, the utility's actual | ||
cost of debt for the applicable calendar year and a cost of | ||
equity, which shall be calculated as the sum of: (I) the | ||
average for the applicable calendar year of the monthly | ||
average yields of 30-year U.S. Treasury bonds published by the | ||
Board of Governors of the Federal Reserve System in its weekly | ||
H.15 Statistical Release or successor publication; and (II) | ||
580 basis points, including a revenue conversion factor | ||
calculated to recover or refund all additional income taxes | ||
that may be payable or receivable as a result of that return. | ||
(2) The utility may recover all of the costs through | ||
an automatic adjustment clause tariff, on a volumetric | ||
basis. The utility may file its proposed cost-recovery | ||
tariff together with the tariff it files under subsection | ||
(e) of this Section or at a later time. The proposed tariff | ||
shall provide for an annual reconciliation, less any | ||
deferred taxes related to the reconciliation, with | ||
interest at an annual rate of return equal to the | ||
utility's weighted average cost of capital as calculated | ||
under paragraph (1) of this subsection (i), including a | ||
revenue conversion factor calculated to recover or refund | ||
all additional income taxes that may be payable or | ||
receivable as a result of that return, of the revenue |
requirement reflected in rates for each calendar year, | ||
beginning with the calendar year in which the utility | ||
files its automatic adjustment clause tariff under this | ||
subsection (i), with what the revenue requirement would | ||
have been had the actual cost information for the | ||
applicable calendar year been available at the filing | ||
date. The Commission shall review the proposed tariff and | ||
may make changes to the tariff that are consistent with | ||
this Section and with the Commission's authority under | ||
Article IX of this Act, subject to notice and hearing. | ||
Following notice and hearing, the Commission shall issue | ||
an order approving, or approving with modification, such | ||
tariff no later than 240 days after the utility files its | ||
tariff. | ||
(j) (i) No later than 90 days after the Commission enters | ||
an order, or order on rehearing, whichever is later, approving | ||
an electric utility's proposed tariff under subsection (d) of | ||
this Section, the electric utility shall provide notice of the | ||
availability of rebates under this Section. Subsequent to the | ||
utility's notice, any entity that offers in the State, for | ||
sale or lease, distributed generation and estimates the dollar | ||
saving attributable to such distributed generation shall | ||
provide estimates based on both delivery service credits and | ||
the rebates available under this Section.
| ||
(Source: P.A. 99-906, eff. 6-1-17 .)
|
(220 ILCS 5/16-108)
| ||
Sec. 16-108. Recovery of costs associated with the
| ||
provision of delivery and other services. | ||
(a) An electric utility shall file a delivery services
| ||
tariff with the Commission at least 210 days prior to the date
| ||
that it is required to begin offering such services pursuant
| ||
to this Act. An electric utility shall provide the components
| ||
of delivery services that are subject to the jurisdiction of
| ||
the Federal Energy Regulatory Commission at the same prices,
| ||
terms and conditions set forth in its applicable tariff as
| ||
approved or allowed into effect by that Commission. The
| ||
Commission shall otherwise have the authority pursuant to | ||
Article IX to review,
approve, and modify the prices, terms | ||
and conditions of those
components of delivery services not | ||
subject to the
jurisdiction of the Federal Energy Regulatory | ||
Commission,
including the authority to determine the extent to | ||
which such
delivery services should be offered on an unbundled | ||
basis. In making any such
determination the Commission shall | ||
consider, at a minimum, the effect of
additional unbundling on | ||
(i) the objective of just and reasonable rates, (ii)
electric | ||
utility employees, and (iii) the development of competitive | ||
markets
for electric energy services in Illinois.
| ||
(b) The Commission shall enter an order approving, or
| ||
approving as modified, the delivery services tariff no later
| ||
than 30 days prior to the date on which the electric utility
| ||
must commence offering such services. The Commission may
|
subsequently modify such tariff pursuant to this Act.
| ||
(c) The electric utility's
tariffs shall define the | ||
classes of its customers for purposes
of delivery services | ||
charges. Delivery services shall be priced and made
available | ||
to all retail customers electing delivery services in each | ||
such class
on a nondiscriminatory basis regardless of whether | ||
the retail customer chooses
the electric utility, an affiliate | ||
of the electric utility, or another entity
as its supplier of | ||
electric power and energy. Charges for delivery services
shall | ||
be cost based,
and shall allow the electric utility to recover | ||
the costs of
providing delivery services through its charges | ||
to its
delivery service customers that use the facilities and
| ||
services associated with such costs.
Such costs shall include | ||
the
costs of owning, operating and maintaining transmission | ||
and
distribution facilities. The Commission shall also be
| ||
authorized to consider whether, and if so to what extent, the
| ||
following costs are appropriately included in the electric
| ||
utility's delivery services rates: (i) the costs of that
| ||
portion of generation facilities used for the production and
| ||
absorption of reactive power in order that retail customers
| ||
located in the electric utility's service area can receive
| ||
electric power and energy from suppliers other than the
| ||
electric utility, and (ii) the costs associated with the use
| ||
and redispatch of generation facilities to mitigate
| ||
constraints on the transmission or distribution system in
| ||
order that retail customers located in the electric utility's
|
service area can receive electric power and energy from
| ||
suppliers other than the electric utility. Nothing in this
| ||
subsection shall be construed as directing the Commission to
| ||
allocate any of the costs described in (i) or (ii) that are
| ||
found to be appropriately included in the electric utility's
| ||
delivery services rates to any particular customer group or
| ||
geographic area in setting delivery services rates.
| ||
(d) The Commission shall establish charges, terms and
| ||
conditions for delivery services that are just and reasonable
| ||
and shall take into account customer impacts when establishing
| ||
such charges. In establishing charges, terms and conditions
| ||
for delivery services, the Commission shall take into account
| ||
voltage level differences. A retail customer shall have the
| ||
option to request to purchase electric service at any delivery
| ||
service voltage reasonably and technically feasible from the
| ||
electric facilities serving that customer's premises provided
| ||
that there are no significant adverse impacts upon system
| ||
reliability or system efficiency. A retail customer shall
also | ||
have the option to request to purchase electric service
at any | ||
point of delivery that is reasonably and technically
feasible | ||
provided that there are no significant adverse
impacts on | ||
system reliability or efficiency. Such requests
shall not be | ||
unreasonably denied.
| ||
(e) Electric utilities shall recover the costs of
| ||
installing, operating or maintaining facilities for the
| ||
particular benefit of one or more delivery services customers,
|
including without limitation any costs incurred in complying
| ||
with a customer's request to be served at a different voltage
| ||
level, directly from the retail customer or customers for
| ||
whose benefit the costs were incurred, to the extent such
| ||
costs are not recovered through the charges referred to in
| ||
subsections (c) and (d) of this Section.
| ||
(f) An electric utility shall be entitled but not
required | ||
to implement transition charges in conjunction with
the | ||
offering of delivery services pursuant to Section 16-104.
If | ||
an electric utility implements transition charges, it shall | ||
implement such
charges for all delivery services customers and | ||
for all customers described in
subsection (h), but shall not | ||
implement transition charges for power and
energy that a | ||
retail customer takes from cogeneration or self-generation
| ||
facilities located on that retail customer's premises, if such | ||
facilities meet
the following criteria:
| ||
(i) the cogeneration or self-generation facilities | ||
serve a single retail
customer and are located on that | ||
retail customer's premises (for purposes of
this | ||
subparagraph and subparagraph (ii), an industrial or | ||
manufacturing retail
customer and a third party contractor | ||
that is served by such industrial or
manufacturing | ||
customer through such retail customer's own electrical
| ||
distribution facilities under the circumstances described | ||
in subsection (vi) of
the definition of "alternative | ||
retail electric supplier" set forth in Section
16-102, |
shall be considered a single retail customer);
| ||
(ii) the cogeneration or self-generation facilities | ||
either (A) are sized
pursuant to generally accepted | ||
engineering standards for the retail customer's
electrical | ||
load at that premises (taking into account standby or | ||
other
reliability considerations related to that retail | ||
customer's operations at that
site) or (B) if the facility | ||
is a cogeneration facility located on the retail
| ||
customer's premises, the retail customer is the thermal | ||
host for that facility
and the facility has been designed | ||
to meet that retail customer's thermal
energy requirements | ||
resulting in electrical output beyond that retail
| ||
customer's electrical demand at that premises, comply with | ||
the operating and
efficiency standards applicable to | ||
"qualifying facilities" specified in title
18 Code of | ||
Federal Regulations Section 292.205 as in effect on the | ||
effective
date of this amendatory Act of 1999;
| ||
(iii) the retail customer on whose premises the | ||
facilities are located
either has an exclusive right to | ||
receive, and corresponding obligation to pay
for, all of | ||
the electrical capacity of the facility, or in the case of | ||
a
cogeneration facility that has been designed to meet the | ||
retail customer's
thermal energy requirements at that | ||
premises, an identified amount of the
electrical capacity | ||
of the facility, over a minimum 5-year period; and
| ||
(iv) if the cogeneration facility is sized for the
|
retail customer's thermal load at that premises but | ||
exceeds the electrical
load, any sales of excess power or | ||
energy are made only at wholesale, are
subject to the | ||
jurisdiction of the Federal Energy Regulatory Commission, | ||
and
are not for the purpose of circumventing the | ||
provisions of this subsection (f).
| ||
If a generation facility located at a retail customer's | ||
premises does not meet
the above criteria, an electric utility | ||
implementing
transition charges shall implement a transition | ||
charge until December 31, 2006
for any power and energy taken | ||
by such retail customer from such facility as if
such power and | ||
energy had been delivered by the electric utility. Provided,
| ||
however, that an industrial retail customer that is taking | ||
power from a
generation facility that does not meet the above | ||
criteria but that is located
on such customer's premises will | ||
not be subject to a transition charge for the
power and energy | ||
taken by such retail customer from such generation facility if
| ||
the facility does not serve any other retail customer and | ||
either was installed
on behalf of the customer and for its own | ||
use prior to January 1, 1997, or is
both predominantly fueled | ||
by byproducts of such customer's manufacturing
process at such | ||
premises and sells or offers an average of 300 megawatts or
| ||
more of electricity produced from such generation facility | ||
into the wholesale
market.
Such charges
shall be calculated as | ||
provided in Section
16-102, and shall be collected
on each | ||
kilowatt-hour delivered under a
delivery services tariff to a |
retail customer from the date
the customer first takes | ||
delivery services until December 31,
2006 except as provided | ||
in subsection (h) of this Section.
Provided, however, that an | ||
electric utility, other than an electric utility
providing | ||
service to at least 1,000,000 customers in this State on | ||
January 1,
1999,
shall be entitled to petition for
entry of an | ||
order by the Commission authorizing the electric utility to
| ||
implement transition charges for an additional period ending | ||
no later than
December 31, 2008. The electric utility shall | ||
file its petition with
supporting evidence no earlier than 16 | ||
months, and no later than 12 months,
prior to December 31, | ||
2006. The Commission shall hold a hearing on the
electric | ||
utility's petition and shall enter its order no later than 8 | ||
months
after the petition is filed. The Commission shall | ||
determine whether and to
what extent the electric utility | ||
shall be authorized to implement transition
charges for an | ||
additional period. The Commission may authorize the electric
| ||
utility to implement transition charges for some or all of the | ||
additional
period, and shall determine the mitigation factors | ||
to be used in implementing
such transition charges; provided, | ||
that the Commission shall not authorize
mitigation factors | ||
less than 110% of those in effect during the 12 months ended
| ||
December 31, 2006. In making its determination, the Commission | ||
shall consider
the following factors: the necessity to | ||
implement transition charges for an
additional period in order | ||
to maintain the financial integrity of the electric
utility; |
the prudence of the electric utility's actions in reducing its | ||
costs
since the effective date of this amendatory Act of 1997; | ||
the ability of the
electric utility to provide safe, adequate | ||
and reliable service to retail
customers in its service area; | ||
and the impact on competition of allowing the
electric utility | ||
to implement transition charges for the additional period.
| ||
(g) The electric utility shall file tariffs that
establish | ||
the transition charges to be paid by each class of
customers to | ||
the electric utility in conjunction with the
provision of | ||
delivery services. The electric utility's tariffs
shall define | ||
the classes of its customers for purposes of
calculating | ||
transition charges. The electric utility's tariffs
shall | ||
provide for the calculation of transition charges on a
| ||
customer-specific basis for any retail customer whose average
| ||
monthly maximum electrical demand on the electric utility's
| ||
system during the 6 months with the customer's highest monthly
| ||
maximum electrical demands equals or exceeds 3.0 megawatts for
| ||
electric utilities having more than 1,000,000 customers, and
| ||
for other electric utilities for any customer that has an
| ||
average monthly maximum electrical demand on the electric
| ||
utility's system of one megawatt or more, and (A) for which
| ||
there exists data on the customer's usage during the 3 years
| ||
preceding the date that the customer became eligible to take
| ||
delivery services, or (B) for which there does not exist data
| ||
on the customer's usage during the 3 years preceding the date
| ||
that the customer became eligible to take delivery services,
|
if in the electric utility's reasonable judgment there exists
| ||
comparable usage information or a sufficient basis to develop
| ||
such information, and further provided that the electric
| ||
utility can require customers for which an individual
| ||
calculation is made to sign contracts that set forth the
| ||
transition charges to be paid by the customer to the electric
| ||
utility pursuant to the tariff.
| ||
(h) An electric utility shall also be entitled to file
| ||
tariffs that allow it to collect transition charges from
| ||
retail customers in the electric utility's service area that
| ||
do not take delivery services but that take electric power or
| ||
energy from an alternative retail electric supplier or from an
| ||
electric utility other than the electric utility in whose
| ||
service area the customer is located. Such charges shall be
| ||
calculated, in accordance with the definition of transition
| ||
charges in Section 16-102, for the period of time that the
| ||
customer would be obligated to pay transition charges if it
| ||
were taking delivery services, except that no deduction for
| ||
delivery services revenues shall be made in such calculation,
| ||
and usage data from the customer's class shall be used where
| ||
historical usage data is not available for the individual
| ||
customer. The customer shall be obligated to pay such charges
| ||
on a lump sum basis on or before the date on which the
customer | ||
commences to take service from the alternative retail
electric | ||
supplier or other electric utility, provided, that
the | ||
electric utility in whose service area the customer is
located |
shall offer the customer the option of signing a
contract | ||
pursuant to which the customer pays such charges
ratably over | ||
the period in which the charges would otherwise
have applied.
| ||
(i) An electric utility shall be entitled to add to the
| ||
bills of delivery services customers charges pursuant to
| ||
Sections 9-221, 9-222 (except as provided in Section 9-222.1), | ||
and Section
16-114 of this Act, Section 5-5 of the Electricity | ||
Infrastructure Maintenance
Fee Law, Section 6-5 of the | ||
Renewable Energy, Energy Efficiency, and Coal
Resources | ||
Development Law of 1997, and Section 13 of the Energy | ||
Assistance Act.
| ||
(i-5) An electric utility required to impose the Coal to | ||
Solar and Energy Storage Initiative Charge provided for in | ||
subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||
Act shall add such charge to the bills of its delivery services | ||
customers pursuant to the terms of a tariff conforming to the | ||
requirements of subsection (c-5) of Section 1-75 of the | ||
Illinois Power Agency Act and this subsection (i-5) and filed | ||
with and approved by the Commission. The electric utility | ||
shall file its proposed tariff with the Commission on or | ||
before July 1, 2022 to be effective, after review and approval | ||
or modification by the Commission, beginning January 1, 2023. | ||
On or before December 1, 2022, the Commission shall review the | ||
electric utility's proposed tariff, including by conducting a | ||
docketed proceeding if deemed necessary by the Commission, and | ||
shall approve the proposed tariff or direct the electric |
utility to make modifications the Commission finds necessary | ||
for the tariff to conform to the requirements of subsection | ||
(c-5) of Section 1-75 of the Illinois Power Agency Act and this | ||
subsection (i-5). The electric utility's tariff shall provide | ||
for imposition of the Coal to Solar and Energy Storage | ||
Initiative Charge on a per-kilowatthour basis to all | ||
kilowatthours delivered by the electric utility to its | ||
delivery services customers. The tariff shall provide for the | ||
calculation of the Coal to Solar and Energy Storage Initiative | ||
Charge to be in effect for the year beginning January 1, 2023 | ||
and each year beginning January 1 thereafter, sufficient to | ||
collect the electric utility's estimated payment obligations | ||
for the delivery year beginning the following June 1 under | ||
contracts for purchase of renewable energy credits entered | ||
into pursuant to subsection (c-5) of Section 1-75 of the | ||
Illinois Power Agency Act and the obligations of the | ||
Department of Commerce and Economic Opportunity, or any | ||
successor department or agency, which for purposes of this | ||
subsection (i-5) shall be referred to as the Department, to | ||
make grant payments during such delivery year from the Coal to | ||
Solar and Energy Storage Initiative Fund pursuant to grant | ||
contracts entered into pursuant to subsection (c-5) of Section | ||
1-75 of the Illinois Power Agency Act, and using the electric | ||
utility's kilowatthour deliveries to its delivery services | ||
customers during the delivery year ended May 31 of the | ||
preceding calendar year. On or before November 1 of each year |
beginning November 1, 2022, the Department shall notify the | ||
electric utilities of the amount of the Department's estimated | ||
obligations for grant payments during the delivery year | ||
beginning the following June 1 pursuant to grant contracts | ||
entered into pursuant to subsection (c-5) of Section 1-75 of | ||
the Illinois Power Agency Act; and each electric utility shall | ||
incorporate in the calculation of its Coal to Solar and Energy | ||
Storage Initiative Charge the fractional portion of the | ||
Department's estimated obligations equal to the electric | ||
utility's kilowatthour deliveries to its delivery services | ||
customers in the delivery year ended the preceding May 31 | ||
divided by the aggregate deliveries of both electric utilities | ||
to delivery services customers in such delivery year. The | ||
electric utility shall remit on a monthly basis to the State | ||
Treasurer, for deposit in the Coal to Solar and Energy Storage | ||
Initiative Fund provided for in subsection (c-5) of Section | ||
1-75 of the Illinois Power Agency Act, the electric utility's | ||
collections of the Coal to Solar and Energy Storage Initiative | ||
Charge estimated to be needed by the Department for grant | ||
payments pursuant to grant contracts entered into pursuant to | ||
subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||
Act. The initial charge under the electric utility's tariff | ||
shall be effective for kilowatthours delivered beginning | ||
January 1, 2023, and thereafter shall be revised to be | ||
effective January 1, 2024 and each January 1 thereafter, based | ||
on the payment obligations for the delivery year beginning the |
following June 1. The tariff shall provide for the electric | ||
utility to make an annual filing with the Commission on or | ||
before November 15 of each year, beginning in 2023, setting | ||
forth the Coal to Solar and Energy Storage Initiative Charge | ||
to be in effect for the year beginning the following January 1. | ||
The electric utility's tariff shall also provide that the | ||
electric utility shall make a filing with the Commission on or | ||
before August 1 of each year beginning in 2024 setting forth a | ||
reconciliation, for the delivery year ended the preceding May | ||
31, of the electric utility's collections of the Coal to Solar | ||
and Energy Storage Initiative Charge against actual payments | ||
for renewable energy credits pursuant to contracts entered | ||
into, and the actual grant payments by the Department pursuant | ||
to grant contracts entered into, pursuant to subsection (c-5) | ||
of Section 1-75 of the Illinois Power Agency Act. The tariff | ||
shall provide that any excess or shortfall of collections to | ||
payments shall be deducted from or added to, on a | ||
per-kilowatthour basis, the Coal to Solar and Energy Storage | ||
Initiative Charge, over the 6-month period beginning October 1 | ||
of that calendar year. | ||
(j) If a retail customer that obtains electric power and
| ||
energy from cogeneration or self-generation facilities
| ||
installed for its own use on or before January 1, 1997,
| ||
subsequently takes service from an alternative retail electric
| ||
supplier or an electric utility other than the electric
| ||
utility in whose service area the customer is located for any
|
portion of the customer's electric power and energy
| ||
requirements formerly obtained from those facilities | ||
(including that amount
purchased from the utility in lieu of | ||
such generation and not as standby power
purchases, under a | ||
cogeneration displacement tariff in effect as of the
effective | ||
date of this amendatory Act of 1997), the
transition charges | ||
otherwise applicable pursuant to subsections (f), (g), or
(h) | ||
of this Section shall not be applicable
in any year to that | ||
portion of the customer's electric power
and energy | ||
requirements formerly obtained from those
facilities, | ||
provided, that for purposes of this subsection
(j), such | ||
portion shall not exceed the average number of
kilowatt-hours | ||
per year obtained from the cogeneration or
self-generation | ||
facilities during the 3 years prior to the
date on which the | ||
customer became eligible for delivery
services, except as | ||
provided in subsection (f) of Section
16-110.
| ||
(k) The electric utility shall be entitled to recover | ||
through tariffed charges all of the costs associated with the | ||
purchase of zero emission credits from zero emission | ||
facilities to meet the requirements of subsection (d-5) of | ||
Section 1-75 of the Illinois Power Agency Act and all of the | ||
costs associated with the purchase of carbon mitigation | ||
credits from carbon-free energy resources to meet the | ||
requirements of subsection (d-10) of Section 1-75 of the | ||
Illinois Power Agency Act . Such costs shall include the costs | ||
of procuring the zero emission credits and carbon mitigation |
credits from carbon-free energy resources , as well as the | ||
reasonable costs that the utility incurs as part of the | ||
procurement processes and to implement and comply with plans | ||
and processes approved by the Commission under subsections | ||
such subsection (d-5) and (d-10) . The costs shall be allocated | ||
across all retail customers through a single, uniform cents | ||
per kilowatt-hour charge applicable to all retail customers, | ||
which shall appear as a separate line item on each customer's | ||
bill. Beginning June 1, 2017, the electric utility shall be | ||
entitled to recover through tariffed charges all of the costs | ||
associated with the purchase of renewable energy resources to | ||
meet the renewable energy resource standards of subsection (c) | ||
of Section 1-75 of the Illinois Power Agency Act, under | ||
procurement plans as approved in accordance with that Section | ||
and Section 16-111.5 of this Act. Such costs shall include the | ||
costs of procuring the renewable energy resources, as well as | ||
the reasonable costs that the utility incurs as part of the | ||
procurement processes and to implement and comply with plans | ||
and processes approved by the Commission under such Sections. | ||
The costs associated with the purchase of renewable energy | ||
resources shall be allocated across all retail customers in | ||
proportion to the amount of renewable energy resources the | ||
utility procures for such customers through a single, uniform | ||
cents per kilowatt-hour charge applicable to such retail | ||
customers, which shall appear as a separate line item on each | ||
such customer's bill. The credits, costs, and penalties |
associated with the self-direct renewable portfolio standard | ||
compliance program described in subparagraph (R) of paragraph | ||
(1) of subsection (c) of Section 1-75 of the Illinois Power | ||
Agency Act shall be allocated to approved eligible self-direct | ||
customers by the utility in a cents per kilowatt-hour credit, | ||
cost, or penalty, which shall appear as a separate line item on | ||
each such customer's bill. | ||
Notwithstanding whether the Commission has approved the | ||
initial long-term renewable resources procurement plan as of | ||
June 1, 2017, an electric utility shall place new tariffed | ||
charges into effect beginning with the June 2017 monthly | ||
billing period, to the extent practicable, to begin recovering | ||
the costs of procuring renewable energy resources, as those | ||
charges are calculated under the limitations described in | ||
subparagraph (E) of paragraph (1) of subsection (c) of Section | ||
1-75 of the Illinois Power Agency Act. Notwithstanding the | ||
date on which the utility places such new tariffed charges | ||
into effect, the utility shall be permitted to collect the | ||
charges under such tariff as if the tariff had been in effect | ||
beginning with the first day of the June 2017 monthly billing | ||
period. For the delivery years commencing June 1, 2017, June | ||
1, 2018, and June 1, 2019, and each delivery year thereafter, | ||
the electric utility shall deposit into a separate interest | ||
bearing account of a financial institution the monies | ||
collected under the tariffed charges. Money collected from | ||
customers for the procurement of renewable energy resources in |
a given delivery year may be spent by the utility for the | ||
procurement of renewable resources over any of the following 5 | ||
delivery years, after which unspent money shall be credited | ||
back to retail customers. The electric utility shall spend all | ||
money collected in earlier delivery years that has not yet | ||
been returned to customers, first, before spending money | ||
collected in later delivery years. Any interest earned shall | ||
be credited back to retail customers under the reconciliation | ||
proceeding provided for in this subsection (k), provided that | ||
the electric utility shall first be reimbursed from the | ||
interest for the administrative costs that it incurs to | ||
administer and manage the account. Any taxes due on the funds | ||
in the account, or interest earned on it, will be paid from the | ||
account or, if insufficient monies are available in the | ||
account, from the monies collected under the tariffed charges | ||
to recover the costs of procuring renewable energy resources. | ||
Monies deposited in the account shall be subject to the | ||
review, reconciliation, and true-up process described in this | ||
subsection (k) that is applicable to the funds collected and | ||
costs incurred for the procurement of renewable energy | ||
resources. | ||
The electric utility shall be entitled to recover all of | ||
the costs identified in this subsection (k) through automatic | ||
adjustment clause tariffs applicable to all of the utility's | ||
retail customers that allow the electric utility to adjust its | ||
tariffed charges consistent with this subsection (k). The |
determination as to whether any excess funds were collected | ||
during a given delivery year for the purchase of renewable | ||
energy resources, and the crediting of any excess funds back | ||
to retail customers, shall not be made until after the close of | ||
the delivery year, which will ensure that the maximum amount | ||
of funds is available to implement the approved long-term | ||
renewable resources procurement plan during a given delivery | ||
year. The amount of excess funds eligible to be credited back | ||
to retail customers shall be reduced by an amount equal to the | ||
payment obligations required by any contracts entered into by | ||
an electric utility under contracts described in subsection | ||
(b) of Section 1-56 and subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act, even if such payments have not yet | ||
been made and regardless of the delivery year in which those | ||
payment obligations were incurred. Notwithstanding anything to | ||
the contrary, including in tariffs authorized by this | ||
subsection (k) in effect before the effective date of this | ||
amendatory Act of the 102nd General Assembly, all unspent | ||
funds as of May 31, 2021, excluding any funds credited to | ||
customers during any utility billing cycle that commences | ||
prior to the effective date of this amendatory Act of the 102nd | ||
General Assembly, shall remain in the utility account and | ||
shall on a first in, first out basis be used toward utility | ||
payment obligations under contracts described in subsection | ||
(b) of Section 1-56 and subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. The electric utility's collections |
under such automatic adjustment clause tariffs to recover the | ||
costs of renewable energy resources , and zero emission credits | ||
from zero emission facilities , and carbon mitigation credits | ||
from carbon-free energy resources shall be subject to separate | ||
annual review, reconciliation, and true-up against actual | ||
costs by the Commission under a procedure that shall be | ||
specified in the electric utility's automatic adjustment | ||
clause tariffs and that shall be approved by the Commission in | ||
connection with its approval of such tariffs. The procedure | ||
shall provide that any difference between the electric | ||
utility's collections for zero emission credits and carbon | ||
mitigation credits under the automatic adjustment charges for | ||
an annual period and the electric utility's actual costs of | ||
renewable energy resources and zero emission credits from zero | ||
emission facilities and carbon mitigation credits from | ||
carbon-free energy resources for that same annual period shall | ||
be refunded to or collected from, as applicable, the electric | ||
utility's retail customers in subsequent periods. | ||
Nothing in this subsection (k) is intended to affect, | ||
limit, or change the right of the electric utility to recover | ||
the costs associated with the procurement of renewable energy | ||
resources for periods commencing before, on, or after June 1, | ||
2017, as otherwise provided in the Illinois Power Agency Act. | ||
Notwithstanding anything to the contrary, the Commission | ||
shall not conduct an annual review, reconciliation, and | ||
true-up associated with renewable energy resources' |
collections and costs for the delivery years commencing June | ||
1, 2017, June 1, 2018, June 1, 2019, and June 1, 2020, and | ||
shall instead conduct a single review, reconciliation, and | ||
true-up associated with renewable energy resources' | ||
collections and costs for the 4-year period beginning June 1, | ||
2017 and ending May 31, 2021, provided that the review, | ||
reconciliation, and true-up shall not be initiated until after | ||
August 31, 2021. During the 4-year period, the utility shall | ||
be permitted to collect and retain funds under this subsection | ||
(k) and to purchase renewable energy resources under an | ||
approved long-term renewable resources procurement plan using | ||
those funds regardless of the delivery year in which the funds | ||
were collected during the 4-year period. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2017, exceeds the costs incurred during | ||
that delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2018, may be used to fund the programs | ||
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded | ||
under that subsection (b). However, any amount identified | ||
under this subsection (k) to fund programs under subsection | ||
(b) of Section 1-56 of the Illinois Power Agency Act shall be | ||
reduced if it exceeds the funding shortfall. For purposes of | ||
this Section, "funding shortfall" means the difference between | ||
$200,000,000 and the amount appropriated by the General | ||
Assembly to the Illinois Power Agency Renewable Energy |
Resources Fund during the period that commences on the | ||
effective date of this amendatory act of the 99th General | ||
Assembly and ends on August 1, 2018. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2018, exceeds the costs incurred during | ||
that delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2019, may be used to fund the programs | ||
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded | ||
under that subsection (b). However, any amount identified | ||
under this subsection (k) to fund programs under subsection | ||
(b) of Section 1-56 of the Illinois Power Agency Act shall be | ||
reduced if it exceeds the funding shortfall. | ||
If the amount of funds collected during the delivery year | ||
commencing June 1, 2019, exceeds the costs incurred during | ||
that delivery year, then up to half of this excess amount, as | ||
calculated on June 1, 2020, may be used to fund the programs | ||
under subsection (b) of Section 1-56 of the Illinois Power | ||
Agency Act in the same proportion the programs are funded | ||
under that subsection (b). However, any amount identified | ||
under this subsection (k) to fund programs under subsection | ||
(b) of Section 1-56 of the Illinois Power Agency Act shall be | ||
reduced if it exceeds the funding shortfall. | ||
The funding available under this subsection (k), if any, | ||
for the programs described under subsection (b) of Section | ||
1-56 of the Illinois Power Agency Act shall not reduce the |
amount of funding for the programs described in subparagraph | ||
(O) of paragraph (1) of subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act. If funding is available under this | ||
subsection (k) for programs described under subsection (b) of | ||
Section 1-56 of the Illinois Power Agency Act, then the | ||
long-term renewable resources plan shall provide for the | ||
Agency to procure contracts in an amount that does not exceed | ||
the funding, and the contracts approved by the Commission | ||
shall be executed by the applicable utility or utilities. | ||
(l) A utility that has terminated any contract executed | ||
under subsection (d-5) or (d-10) of Section 1-75 of the | ||
Illinois Power Agency Act shall be entitled to recover any | ||
remaining balance associated with the purchase of zero | ||
emission credits prior to such termination, and such utility | ||
shall also apply a credit to its retail customer bills in the | ||
event of any over-collection. | ||
(m)(1) An electric utility that recovers its costs of | ||
procuring zero emission credits from zero emission facilities | ||
through a cents-per-kilowatthour charge under to subsection | ||
(k) of this Section shall be subject to the requirements of | ||
this subsection (m). Notwithstanding anything to the contrary, | ||
such electric utility shall, beginning on April 30, 2018, and | ||
each April 30 thereafter until April 30, 2026, calculate | ||
whether any reduction must be applied to such | ||
cents-per-kilowatthour charge that is paid by retail customers | ||
of the electric utility that have opted out of are exempt from |
subsections (a) through (j) of Section 8-103B of this Act | ||
under subsection (l) of Section 8-103B. Such charge shall be | ||
reduced for such customers for the next delivery year | ||
commencing on June 1 based on the amount necessary, if any, to | ||
limit the annual estimated average net increase for the prior | ||
calendar year due to the future energy investment costs to no | ||
more than 1.3% of 5.98 cents per kilowatt-hour, which is the | ||
average amount paid per kilowatthour for electric service | ||
during the year ending December 31, 2015 by Illinois | ||
industrial retail customers, as reported to the Edison | ||
Electric Institute. | ||
The calculations required by this subsection (m) shall be | ||
made only once for each year, and no subsequent rate impact | ||
determinations shall be made. | ||
(2) For purposes of this Section, "future energy | ||
investment costs" shall be calculated by subtracting the | ||
cents-per-kilowatthour charge identified in subparagraph (A) | ||
of this paragraph (2) from the sum of the | ||
cents-per-kilowatthour charges identified in subparagraph (B) | ||
of this paragraph (2): | ||
(A) The cents-per-kilowatthour charge identified in | ||
the electric utility's tariff placed into effect under | ||
Section 8-103 of the Public Utilities Act that, on | ||
December 1, 2016, was applicable to those retail customers | ||
that have opted out of are exempt from subsections (a) | ||
through (j) of Section 8-103B of this Act under subsection |
(l) of Section 8-103B. | ||
(B) The sum of the following cents-per-kilowatthour | ||
charges applicable to those retail customers that have | ||
opted out of are exempt from subsections (a) through (j) | ||
of Section 8-103B of this Act under subsection (l) of | ||
Section 8-103B, provided that if one or more of the | ||
following charges has been in effect and applied to such | ||
customers for more than one calendar year, then each | ||
charge shall be equal to the average of the charges | ||
applied over a period that commences with the calendar | ||
year ending December 31, 2017 and ends with the most | ||
recently completed calendar year prior to the calculation | ||
required by this subsection (m): | ||
(i) the cents-per-kilowatthour charge to recover | ||
the costs incurred by the utility under subsection | ||
(d-5) of Section 1-75 of the Illinois Power Agency | ||
Act, adjusted for any reductions required under this | ||
subsection (m); and | ||
(ii) the cents-per-kilowatthour charge to recover | ||
the costs incurred by the utility under Section | ||
16-107.6 of the Public Utilities Act. | ||
If no charge was applied for a given calendar year | ||
under item (i) or (ii) of this subparagraph (B), then the | ||
value of the charge for that year shall be zero. | ||
(3) If a reduction is required by the calculation | ||
performed under this subsection (m), then the amount of the |
reduction shall be multiplied by the number of years reflected | ||
in the averages calculated under subparagraph (B) of paragraph | ||
(2) of this subsection (m). Such reduction shall be applied to | ||
the cents-per-kilowatthour charge that is applicable to those | ||
retail customers that have opted out of are exempt from | ||
subsections (a) through (j) of Section 8-103B of this Act | ||
under subsection (l) of Section 8-103B beginning with the next | ||
delivery year commencing after the date of the calculation | ||
required by this subsection (m). | ||
(4) The electric utility shall file a notice with the | ||
Commission on May 1 of 2018 and each May 1 thereafter until May | ||
1, 2026 containing the reduction, if any, which must be | ||
applied for the delivery year which begins in the year of the | ||
filing. The notice shall contain the calculations made | ||
pursuant to this Section. By October 1 of each year beginning | ||
in 2018, each electric utility shall notify the Commission if | ||
it appears, based on an estimate of the calculation required | ||
in this subsection (m), that a reduction will be required in | ||
the next year. | ||
(Source: P.A. 99-906, eff. 6-1-17 .)
| ||
(220 ILCS 5/16-108.18 new) | ||
Sec. 16-108.18. Performance-based ratemaking. | ||
(a) The General Assembly finds: | ||
(1) That improving the alignment of utility customer | ||
and company interests is critical to ensuring equity, |
rapid growth of distributed energy resources, electric | ||
vehicles, and other new technologies that substantially | ||
change the makeup of the grid and protect Illinois | ||
residents and businesses from potential economic and | ||
environmental harm from the State's energy systems. | ||
(2) There is urgency around addressing increasing | ||
threats from climate change and assisting communities that | ||
have borne disproportionate impacts from climate change, | ||
including air pollution, greenhouse gas emissions, and | ||
energy burdens. Addressing this problem requires changes | ||
to the business model under which utilities in Illinois | ||
have traditionally functioned. | ||
(3) Providing targeted incentives to support change | ||
through a new performance-based structure to enhance | ||
ratemaking is intended to enable alignment of utility, | ||
customer, community, and environmental goals. | ||
(4) Though Illinois has taken some measures to move | ||
utilities to performance-based ratemaking through the | ||
establishment of performance incentives and a | ||
performance-based formula rate under the Energy | ||
Infrastructure Modernization Act, these measures have not | ||
been sufficiently transformative in urgently moving | ||
electric utilities toward the State's ambitious energy | ||
policy goals: protecting a healthy environment and | ||
climate, improving public health, and creating quality | ||
jobs and economic opportunities, including wealth |
building, especially in economically disadvantaged | ||
communities and communities of color. | ||
(5) These measures were not developed through a | ||
process to understand first what performance measures and | ||
penalties would help drive the sought-after behavior by | ||
the utilities. | ||
(6) While the General Assembly has not made a finding | ||
that the spending related to the Energy Infrastructure and | ||
Modernization Act and its performance metrics was not | ||
reasonable, it is important to address concerns that these | ||
measures may have resulted in excess utility spending and | ||
guaranteed profits without meaningful improvements in | ||
customer experience, rate affordability, or equity. | ||
(7) Discussions of performance incentive mechanisms | ||
must always take into account the affordability of | ||
customer rates and bills for all customers, including | ||
low-income customers. | ||
(8) The General Assembly therefore directs the | ||
Illinois Commerce Commission to complete a transition that | ||
includes a comprehensive performance-based regulation | ||
framework for electric utilities serving more than 500,000 | ||
customers. The breadth of this framework should revise | ||
existing utility regulations to position Illinois electric | ||
utilities to effectively and efficiently achieve current | ||
and anticipated future energy needs of this State, while | ||
ensuring affordability for consumers. |
(b) As used in this Section: | ||
"Commission" means the Illinois Commerce Commission. | ||
"Demand response" means measures that decrease peak | ||
electricity demand or shift demand from peak to off-peak | ||
periods. | ||
"Distributed energy resources" or "DER" means a wide range | ||
of technologies that are connected to the grid including those | ||
that are located on the customer side of the customer's | ||
electric meter and can provide value to the distribution | ||
system, including, but not limited to, distributed generation, | ||
energy storage, electric vehicles, and demand response | ||
technologies. | ||
"Economically disadvantaged communities" means areas of | ||
one or more census tracts where average household income does | ||
not exceed 80% of area median income. | ||
"Environmental justice communities" means the definition | ||
of that term as used and as may be updated in the long-term | ||
renewable resources procurement plan by the Illinois Power | ||
Agency and its Program Administrator in the Illinois Solar for | ||
All Program. | ||
"Equity investment eligible community" means the | ||
geographic areas throughout Illinois which would most benefit | ||
from equitable investments by the State designed to combat | ||
discrimination. Specifically, the equity investment eligible | ||
communities shall be defined as the following areas: | ||
(1) R3 Areas as established pursuant to Section 10-40 |
of the Cannabis Regulation and Tax Act, where residents | ||
have historically been excluded from economic | ||
opportunities, including opportunities in the energy | ||
sector; and | ||
(2) Environmental justice communities, as defined by | ||
the Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, where residents have historically been subject | ||
to disproportionate burdens of pollution, including | ||
pollution from the energy sector. | ||
"Performance incentive mechanism" means an instrument by | ||
which utility performance is incentivized, which could include | ||
a monetary performance incentive. | ||
"Performance metric" means a manner of measurement for a | ||
particular utility activity. | ||
(c) Through coordinated, comprehensive system planning, | ||
ratemaking, and performance incentives, the performance-based | ||
ratemaking framework should be designed to accomplish the | ||
following objectives: | ||
(1) maintain and improve service reliability and | ||
safety, including and particularly in environmental | ||
justice, low-income and equity investment eligible | ||
communities; | ||
(2) decarbonize utility systems at a pace that meets | ||
or exceeds State climate goals, while also ensuring the | ||
affordability of rates for all customers, including | ||
low-income customers; |
(3) direct electric utilities to make cost-effective | ||
investments that support achievement of Illinois' clean | ||
energy policies, including, at a minimum, investments | ||
designed to integrate distributed energy resources, comply | ||
with critical infrastructure protection standards, plans, | ||
and industry best practices, and support and take | ||
advantage of potential benefits from the electric vehicle | ||
charging and other electrification, while mitigating the | ||
impacts; | ||
(4) choose cost-effective assets and services, whether | ||
utility-supplied or through third-party contracting, | ||
considering both economic and environmental costs and the | ||
effects on utility rates, to deliver high-quality service | ||
to customers at least cost; | ||
(5) maintain the affordability of electric delivery | ||
services for all customers, including low-income | ||
customers; | ||
(6) maintain and grow a diverse workforce, diverse | ||
supplier procurement base and, for relevant programs, | ||
diverse approved-vendor pools, including increased | ||
opportunities for minority-owned, female-owned, | ||
veteran-owned, and disability-owned business enterprises; | ||
(7) improve customer service performance and | ||
engagement; | ||
(8) address the particular burdens faced by consumers | ||
in environmental justice and equity investment eligible |
communities, including shareholder, consumer, and publicly | ||
funded bill payment assistance and credit and collection | ||
policies, and ensure equitable disconnections, late fees, | ||
or arrearages as a result of utility credit and collection | ||
practices, which may include consideration of impact by | ||
zip code; and | ||
(9) implement or otherwise enhance current supplier | ||
diversity programs to increase diverse contractor | ||
participation in professional services, subcontracting, | ||
and prime contracting opportunities with programs that | ||
address barriers to access. Supplier diversity programs | ||
shall address specific barriers related to RFP and | ||
contract access, access to capital, information technology | ||
and cyber security access and costs, administrative | ||
burdens, and quality control with specific metrics, | ||
outcomes, and demographic data reported. | ||
(d) Multi-Year Rate Plan. | ||
(1) If an electric utility had a performance-based | ||
formula rate in effect under Section 16-108.5 as of | ||
December 31, 2020, then the utility may file a petition | ||
proposing tariffs implementing a 4-year Multi-Year Rate | ||
Plan as provided in this Section no later than, January | ||
20, 2023, for delivery service rates to be effective for | ||
the billing periods January 1, 2024 through December 31, | ||
2027. The Commission shall issue an order approving or | ||
approving as modified the utility's plan no later than |
December 20, 2023. The term "Multi-Year Rate Plan" refers | ||
to a plan establishing the base rates the utility shall | ||
charge for each delivery year of the 4-year period to be | ||
covered by the plan, which shall be subject to | ||
modification only as expressly allowed in this Section. | ||
(2) A utility proposing a Multi-Year Rate Plan shall | ||
provide a 4-year investment plan and a description of the | ||
utility's major planned investments, including, at a | ||
minimum, all investments of $2,000,000 or greater over the | ||
plan period for an electric utility that serves more than | ||
3,000,000 retail customers in the State or $500,000 for an | ||
electric utility that serves less than 3,000,000 retail | ||
customers in the State but more than 500,000 retail | ||
customers in the State. The 4-year investment plan must be | ||
consistent with the Multi-Year Integrated Grid Plan | ||
described in Section 16-105.17 of this Act. The investment | ||
plan shall provide sufficiently detailed information, as | ||
required by the Commission, including, at a minimum, a | ||
description of each investment, the location of the | ||
investment, and an explanation of the need for and benefit | ||
of such an investment to the extent known. | ||
(3) The Multi-Year Rate Plan shall be implemented | ||
through a tariff filed with the Commission consistent with | ||
the provisions of this paragraph (3) that shall apply to | ||
all delivery service customers. The Commission shall | ||
initiate and conduct an investigation of the tariff in a |
manner consistent with the provisions of this paragraph | ||
(3) and the provisions of Article IX of this Act, to the | ||
extent they do not conflict with this paragraph (3). The | ||
Multi-Year Rate Plan approved by the Commission shall do | ||
the following: | ||
(A) Provide for the recovery of the utility's | ||
forecasted rate base, based on the 4-year investment | ||
plan and the utility's Integrated Grid Plan. The | ||
forecasted rate base must include the utility's | ||
planned capital investments, with rates based on | ||
average annual plant investment, and | ||
investment-related costs, including income tax | ||
impacts, depreciation, and ratemaking adjustments and | ||
costs that are prudently incurred and reasonable in | ||
amount consistent with Commission practice and law. | ||
The process used to develop the forecasts must be | ||
iterative, rigorous, and lead to forecasts that | ||
reasonably represent the utility's investments during | ||
the forecasted period and ensure that the investments | ||
are projected to be used and useful during the annual | ||
investment period and least cost, consistent with the | ||
provisions of Articles VIII and IX of this Act. | ||
(B) The cost of equity shall be approved by the | ||
Commission consistent with Commission practice and | ||
law. | ||
(C) The revenue requirement shall reflect the |
utility's actual capital structure for the applicable | ||
calendar year. A year-end capital structure that | ||
includes a common equity ratio of up to and including | ||
50% of the total capital structure shall be deemed | ||
prudent and reasonable. A higher common equity ratio | ||
must be specifically approved by the Commission. | ||
(E) Provide for recovery of prudent and reasonable | ||
projected operating expenses, giving effect to | ||
ratemaking adjustments, consistent with Commission | ||
practice and law under Article IX of this Act. | ||
Operating expenses for years after the first year of | ||
the Multi-Year Rate Plan may be estimated by the use of | ||
known and measurable changes, expense reductions | ||
associated with planned capital investments as | ||
appropriate, and reasonable and appropriate | ||
escalators, indices, or other metrics. | ||
(F) Amortize the amount of unprotected | ||
property-related excess accumulated deferred income | ||
taxes in rates as of January 1, 2023 over a period | ||
ending December 31, 2027, unless otherwise required to | ||
amortize the excess deferred income tax pursuant to | ||
Section 16-108.21 of this Act. | ||
(G) Allow recovery of incentive compensation | ||
expense that is based on the achievement of | ||
operational metrics, including metrics related to | ||
budget controls, outage duration and frequency, |
safety, customer service, efficiency and productivity, | ||
environmental compliance and attainment of | ||
affordability and environmental goals, and other goals | ||
and metrics approved by the Commission. Incentive | ||
compensation expense that is based on net income or an | ||
affiliate's earnings per share shall not be | ||
recoverable. | ||
(H) To the maximum extent practicable, align the | ||
4-year investment plan and annual capital budgets with | ||
the electric utility's Multi-Year Integrated Grid | ||
Plan. | ||
(4) The Commission shall establish annual rates for | ||
each year of the Multi-Year Rate Plan that accurately | ||
reflect and are based only upon the utility's reasonable | ||
and prudent costs of service over the term of the plan, | ||
including the effect of all ratemaking adjustments | ||
consistent with Commission practice and law as determined | ||
by the Commission, provided that the costs are not being | ||
recovered elsewhere in rates. Tariff riders authorized by | ||
the Commission may continue outside of a plan authorized | ||
under this Section to the extent such costs are not | ||
recovered elsewhere in rates. For the first multi-year | ||
rate plan, the burden of proof shall be on the electric | ||
utility to establish the prudence of investments and | ||
expenditures and to establish that such investments | ||
consistent with and reasonably necessary to meet the |
requirements of the utility's first approved Multi-Year | ||
Integrated Grid Plan described in Section 16-105.17 of | ||
this Act. For subsequent Multi-Year Rate Plans, the burden | ||
of proof shall be on the electric utility to establish the | ||
prudence of investments and expenditures and to establish | ||
that such investments are consistent with and reasonably | ||
necessary to meet the requirements of the utility's most | ||
recently approved Multi-Year Integrated Grid Plan | ||
described in Section 16-105.17 of this Act. The sole fact | ||
that a cost differs from that incurred in a prior period or | ||
that an investment is different from that described in the | ||
Multi-Year Integrated Grid Plan shall not imply the | ||
imprudence or unreasonableness of that cost or investment. | ||
The sole fact that an investment is the same or similar to | ||
that described in the Multi-Year Integrated Grid Plan | ||
shall not imply prudence and reasonableness of that | ||
investment. | ||
(5) To facilitate public transparency, all materials, | ||
data, testimony, and schedules shall be provided to the | ||
Commission in an editable, machine-readable electronic | ||
format including .doc, .docx, .xls, .xlsx, and similar | ||
file formats, but not including .pdf or .exif. Should | ||
utilities designate any materials confidential, they shall | ||
have an affirmative duty to explain why the particular | ||
information is marked confidential. In determining | ||
prudence and reasonableness of rates, the Commission shall |
make its determination based upon the record, including | ||
each public comment filed or provided orally at open | ||
meetings consistent with the Commission's rules and | ||
practices. | ||
(6) The Commission may, by order, establish terms, | ||
conditions, and procedures for submitting and approving a | ||
Multi-Year Rate Plan necessary to implement this Section | ||
and ensure that rates remain just and reasonable during | ||
the course of the plan, including terms and procedures for | ||
rate adjustment. | ||
(7) An electric utility that files a tariff pursuant | ||
to paragraph (3) of this subsection (e) must submit a | ||
one-time $300,000 filing fee at the time the Chief Clerk | ||
of the Commission accepts the filing, which shall be a | ||
recoverable expense. | ||
(8) An electric utility operating under a Multi-Year | ||
Rate Plan shall file a new Multi-Year Rate Plan at least | ||
300 days prior to the end of the initial Multi-Year Rate | ||
Plan unless it elects to file a general rate case pursuant | ||
to paragraph (9), and every 4 years thereafter, with a | ||
rate-effective date of the proposed tariffs such that, | ||
after the Commission suspension period, the rates would | ||
take effect immediately at the close of the final year of | ||
the initial Multi-Year Rate Plan. In subsequent Multi-Year | ||
Rate Plans, as in the initial plans, utilities and | ||
stakeholders may propose additional metrics that achieve |
the outcomes described in paragraph (2) of subsection (f) | ||
of this Section. | ||
(9) Election of Rate Case. | ||
(A) On or before the date prescribed by | ||
subparagraph (B) of paragraph (9) of this Section, | ||
electric utilities that serve more than 500,000 retail | ||
customers in the State shall file either a general | ||
rate case under Section 9-201 of this Act, or a | ||
Multi-Year Rate Plan, as set forth in paragraph (1) of | ||
this subsection (d). | ||
(B) Electric utilities described in subparagraph | ||
(A) of paragraph (9) of this Section shall file their | ||
initial general rate case or Multi-Year Rate Plan, as | ||
applicable, with the Commission no later than January | ||
20, 2023. | ||
(C) Notwithstanding which rate filing option an | ||
electric utility elects to file on the date prescribed | ||
by subparagraph (B) of paragraph (9) of this Section, | ||
the electric utility shall be subject to the | ||
Multi-year Integrated Plan filing requirements. | ||
(D) Following its initial rate filing pursuant to | ||
paragraph (2), an electric utility subject to the | ||
requirements of this Section shall thereafter be | ||
permitted to elect a different rate filing option | ||
consistent with any filing intervals established for a | ||
general rate case or Multi-Year Rate Plan, as follows: |
(i) An electric utility that initially elected | ||
to file a Multi-Year Rate Plan and thereafter | ||
elects to transition to a general rate case may do | ||
so upon completion of the 4-year Multi-Year Rate | ||
Plan by filing a general rate case at the same time | ||
that the utility would have filed its subsequent | ||
Multi-Year Rate Plan, as specified in paragraph | ||
(8) of this subsection (d). Notwithstanding this | ||
election, the annual adjustment of the final year | ||
of the Multi-Year Rate Plan shall proceed as | ||
specified in paragraph (6) of subsection (f). | ||
(ii) An electric utility that initially | ||
elected to a file general rate case and thereafter | ||
elects to transition to a Multi-Year Rate Plan may | ||
do so only at the 4-year filing intervals | ||
identified by paragraph (8) of this subsection | ||
(d). | ||
(10) The Commission shall approve tariffs establishing | ||
rate design for all delivery service customers unless the | ||
electric utility makes the election specified in Section | ||
16-105.5, in which case the rate design shall be subject | ||
to the provisions of that Section. | ||
(11) The Commission shall establish requirements for | ||
annual performance evaluation reports to be submitted | ||
annually for performance metrics. Such reports shall | ||
include, but not be limited to, a description of the |
utility's performance under each metric and an | ||
identification of any extraordinary events that adversely | ||
affected the utility's performance. | ||
(12) For the first Multi-Year Rate Plan, the | ||
Commission shall consolidate its investigation with the | ||
proceeding under Section 16-105.17 to establish the | ||
Multi-Year Integrated Grid Plan no later than 45 days | ||
after plan filing. | ||
(13) Where a rate change under a Multi-Year Rate Plan | ||
will result in a rate increase, an electric utility may | ||
propose a rate phase-in plan that the Commission shall | ||
approve with or without modification or deny in its final | ||
order approving the new delivery services rates. A | ||
proposed rate phase-in plan under this paragraph (13) must | ||
allow the new delivery services rates to be implemented in | ||
no more than 2 steps, as follows: in the first step, at | ||
least 50% of the approved rate increase must be reflected | ||
in rates, and, in the second step, 100% of the rate | ||
increase must be reflected in rates. The second step's | ||
rates must take effect no later than 12 months after the | ||
first step's rates were placed into effect. The portion of | ||
the approved rate increase not implemented in the first | ||
step shall be recorded on the electric utility's books as | ||
a regulatory asset, and shall accrue carrying costs to | ||
ensure that the utility does not recover more or less than | ||
it otherwise would because of the deferral. This portion |
shall be recovered, with such carrying costs at the | ||
weighted average cost of capital, through a surcharge | ||
applied to retail customer bills that (i) begins no later | ||
than 12 months after the date on which the second step's | ||
rates went into effect and (ii) is applied over a period | ||
not to exceed 24 months. Nothing in this paragraph is | ||
intended to limit the Commission's authority to mitigate | ||
the impact of rates caused by rate plans, or any other | ||
instance on a revenue-neutral basis; nor shall it mitigate | ||
a utility's ability to make proposals to mitigate the | ||
impact of rates. When a deferral, or similar method, is | ||
used to mitigate the impact of rates, the utility should | ||
be allowed to recover carrying costs. | ||
(14) Notwithstanding the provisions of Section (13), | ||
the Commission may, on its own initiative, take | ||
revenue-neutral measures to relieve the impact of rate | ||
increases on customers. Such initiatives may be taken by | ||
the Commission in the first Multi-Year Rate Plan, | ||
subsequent multi-year plans, or in other instances | ||
described in this Act. | ||
(15) Whenever during the pendency of a Multi-year Rate | ||
Plan, an electric utility subject to this Section becomes | ||
aware that, due to circumstances beyond its control, | ||
prudent operating practices will require the utility to | ||
make adjustments to the Multi-Year Rate Plan, the electric | ||
utility may file a petition with the Commission requesting |
modification of the approved annual revenue requirements | ||
included in the Multi-Year Rate Plan. The electric utility | ||
must support its request with evidence demonstrating why a | ||
modification is necessary, due to circumstances beyond the | ||
utility's control, to follow prudent operating practices | ||
and must set forth the changes to each annual revenue | ||
requirement to be approved, and the basis for any changes | ||
in anticipated operating expenses or capital investment | ||
levels. The utility shall affirmatively address the impact | ||
of the changes on the Multi-Year Integrated Grid Plan and | ||
Multi-Year Rate Plan originally submitted and approved by | ||
the Commission. Any interested party may file an objection | ||
to the changes proposed, or offer alternatives to the | ||
utility's proposal, as supported by testimony and | ||
evidence. After notice and hearing, the Commission shall | ||
issue a final order regarding the electric utility's | ||
request no later than 180 days after the filing of the | ||
petition. | ||
(e) Performance incentive mechanisms. | ||
(1) The electric industry is undergoing rapid | ||
transformation, including fundamental changes in how | ||
electricity is generated, procured, and delivered and how | ||
customers are choosing to participate in the supply and | ||
delivery of electricity to and from the electric grid. | ||
Building upon the State's goals to increase the | ||
procurement of electricity from renewable energy |
resources, including distributed generation and storage | ||
devices, the General Assembly finds that electric | ||
utilities should make cost-effective investments that | ||
support moving forward on Illinois' clean energy policies. | ||
It is therefore in the State's interest for the Commission | ||
to establish performance incentive mechanisms in order to | ||
better tie utility revenues to performance and customer | ||
benefits, accelerate progress on Illinois energy and other | ||
goals, ensure equity and affordability of rates for all | ||
customers, including low-income customers, and hold | ||
utilities publicly accountable. | ||
(2) The Commission shall approve, based on the | ||
substantial evidence proffered in the proceeding initiated | ||
pursuant to this subsection performance metrics that, to | ||
the extent practicable and achievable by the electric | ||
utility, encourage cost-effective, equitable utility | ||
achievement of the outcomes described in this subsection | ||
(e) while ensuring no degradation in the significant | ||
performance improvement achieved through previously | ||
established performance metrics. For each electric | ||
utility, the Commission shall approve metrics designed to | ||
achieve incremental improvements over baseline performance | ||
values and targets, over a performance period of up to 10 | ||
years, and no less than 4 years. | ||
(A) The Commission shall approve no more than 8 | ||
metrics, with at least one metric from each of the |
categories below, for each electric utility, from | ||
subparagraphs (i) through (vi) of this subsection (A). | ||
Upon a utility request, the Commission may approve the | ||
use of a specific, measurable, and achievable tracking | ||
metric described in paragraph (3) of subsection (e) as | ||
a performance metric pursuant to paragraph (2) of | ||
subsection (e). | ||
(i) Metrics designed to ensure the utility | ||
maintains and improves the high standards of both | ||
overall and locational reliability and resiliency, | ||
and makes improvements in power quality, including | ||
and particularly in environmental justice and | ||
equity investment eligible communities. | ||
(ii) Peak load reductions attributable to | ||
demand response programs. | ||
(iii) Supplier diversity expansion, including | ||
diverse contractor participation in professional | ||
services, subcontracting, and prime contracting | ||
opportunities, development of programs that | ||
address the barriers to access, aligning | ||
demographics of contractors to the demographics in | ||
the utility's service territory, establish | ||
long-term mentoring relationships that develop and | ||
remove barriers to access for diverse and | ||
underserved contractors. The utilities shall | ||
provide solutions, resources, and tools to address |
complex barriers of entry related to costly and | ||
time-intensive cyber security requirements, | ||
increasingly complex information technology | ||
requirements, insurance barriers, service provider | ||
sign-up process barriers, administrative process | ||
barriers, and other barriers that inhibit access | ||
to RFPs and contracts. For programs with contracts | ||
over $1,000,000, winning bidders must demonstrate | ||
a subcontractor development or mentoring | ||
relationship with at least one of their diverse | ||
subcontracting partners for a core component of | ||
the scope of the project. The mentoring time and | ||
cost shall be taken into account in the creation | ||
of RFP and shall include a structured and measured | ||
plan by the prime contractor to increase the | ||
capabilities of the subcontractor in their | ||
proposed scope. The metric shall include reporting | ||
on all supplier diversity programs by goals, | ||
program results, demographics and geography, with | ||
separate reporting by category of minority-owned, | ||
female-owned, veteran-owned, and disability-owned | ||
business enterprise metrics. The report shall | ||
include resources and expenses committed to the | ||
programs and conversion rates of new diverse | ||
utility contractors. | ||
(iv) Achieve affordable customer delivery |
service costs, with particular emphasis on keeping | ||
the bills of lower-income households, households | ||
in equity investment eligible communities, and | ||
household in environmental justice communities | ||
within a manageable portion of their income and | ||
adopting credit and collection policies that | ||
reduce disconnections for these households | ||
specifically and for customers overall to ensure | ||
equitable disconnections, late fees, or arrearages | ||
as a result of utility credit and collection | ||
practices, which may include consideration of | ||
impact by zip code. | ||
(v) Metrics designed around the utility's | ||
timeliness to customer requests for | ||
interconnection in key milestone areas, such as: | ||
initial response, supplemental review, and system | ||
feasibility study; improved average service | ||
reliability index for those customers that have | ||
interconnected a distributed renewable energy | ||
generation device to the utility's distribution | ||
system and are lawfully taking service under an | ||
applicable tariff; offering a variety of | ||
affordable rate options, including demand | ||
response, time of use rates for delivery and | ||
supply, real-time pricing rates for supply; | ||
comprehensive and predictable net metering, and |
maximizing the benefits of grid modernization and | ||
clean energy for ratepayers; and improving | ||
customer access to utility system information | ||
according to consumer demand and interest. | ||
(vi) Metrics designed to measure the utility's | ||
customer service performance, which may include | ||
the average length of time to answer a customer's | ||
call by a customer service representative, the | ||
abandoned call rate and the relative ranking of | ||
the electric utility, by a reputable third-party | ||
organization, in customer service satisfaction | ||
when compared to other similar electric utilities | ||
in the Midwest region. | ||
(B) Performance metrics shall include a | ||
description of the metric, a calculation method, a | ||
data collection method, annual performance targets, | ||
and any incentives or penalties for the utility's | ||
achievement of, or failure to achieve, their | ||
performance targets, provided that the total amount of | ||
potential incentives and penalties shall be | ||
symmetrical. Incentives shall be rewards or penalties | ||
or both, reflected as basis points added to, or | ||
subtracted from, the utility's cost of equity. The | ||
metrics and incentives shall apply for the entire time | ||
period covered by a Multi-Year Rate Plan. The total | ||
for all metrics shall be equal to 40 basis points, |
however, the Commission may adjust the basis points | ||
upward or downward by up to 20 basis points for any | ||
given Multi-Year Rate Plan, as appropriate, but in no | ||
event may the total exceed 60 basis points or fall | ||
below 20 basis points. | ||
(C) Metrics related to reliability shall be | ||
implemented to ensure equitable benefits to | ||
environmental justice and equity investment eligible | ||
communities, as defined in this Act. | ||
(D) The Commission shall approve performance | ||
metrics that are reasonably within control of the | ||
utility to achieve. The Commission also shall not | ||
approve a metric that is solely expected to have the | ||
effect of reducing the workforce. Performance metrics | ||
should measure outcomes and actual, rather than | ||
projected, results where possible. Nothing in this | ||
paragraph is intended to require that different | ||
electric utilities must be subject to the same | ||
metrics, goals, or incentives. | ||
(E) Increases or enhancements to an existing | ||
performance goal or target shall be considered in | ||
light of other metrics, cost-effectiveness, and other | ||
factors the Commission deems appropriate. Performance | ||
metrics shall include one year of tracking data | ||
collected in a consistent manner, verifiable by an | ||
independent evaluator in order to establish a baseline |
and measure outcomes and actual results against | ||
projections where possible. | ||
(F) For the purpose of determining reasonable | ||
performance metrics and related incentives, the | ||
Commission shall develop a methodology to calculate | ||
net benefits that includes customer and societal costs | ||
and benefits and quantifies the effect on delivery | ||
rates. In determining the appropriate level of a | ||
performance incentive, the Commission shall consider: | ||
the extent to which the amount is likely to encourage | ||
the utility to achieve the performance target in the | ||
least cost manner; the value of benefits to customers, | ||
the grid, public health and safety, and the | ||
environment from achievement of the performance | ||
target, including in particular benefits to equity | ||
investment eligible community; the affordability of | ||
customer's electric bills, including low-income | ||
customers, the utility's revenue requirement, the | ||
promotion of renewable and distributed energy, and | ||
other such factors that the Commission deems | ||
appropriate. The consideration of these factors shall | ||
result in an incentive level that ensures benefits | ||
exceed costs for customers. | ||
(G) Achievement of performance metrics are based | ||
on the assumptions that the utility will adopt or | ||
implement the technology and equipment, and make the |
investments to the extent reasonably necessary to | ||
achieve the goal. If the electric utility is unable to | ||
meet the performance metrics as a result of | ||
extraordinary circumstances outside of its control, | ||
including but not limited to government-declared | ||
emergencies, then the utility shall be permitted to | ||
file a petition with the Commission requesting that | ||
the utility be excused from compliance with the | ||
applicable performance goal or goals and the | ||
associated financial incentives and penalties. The | ||
burden of proof shall be on the utility, consistent | ||
with Article IX, and the utility's petition shall be | ||
supported by substantial evidence. The Commission | ||
shall, after notice and hearing, enter its order | ||
approving or denying, in whole or in part, the | ||
utility's petition based on the extent to which the | ||
utility demonstrated that its achievement of the | ||
affected metrics and performance goals was hindered by | ||
extraordinary circumstances outside of the utility's | ||
control. | ||
(3) The Commission shall approve reasonable and | ||
appropriate tracking metrics to collect and monitor data | ||
for the purpose of measuring and reporting utility | ||
performance and for establishing future performance | ||
metrics. These additional tracking metrics shall include | ||
at least one metric from each of the following categories |
of performance: | ||
(A) Minimize emissions of greenhouse gases and | ||
other air pollutants that harm human health, | ||
particularly in environmental justice and equity | ||
investment eligible communities, through minimizing | ||
total emissions by accelerating electrification of | ||
transportation, buildings and industries where such | ||
electrification results in net reductions, across all | ||
fuels and over the life of electrification measures, | ||
of greenhouse gases and other pollutants, taking into | ||
consideration the fuel mix used to produce electricity | ||
at the relevant hour and the effect of accelerating | ||
electrification on electricity delivery services | ||
rates, supply prices and peak demand, provided the | ||
revenues the utility receives from accelerating | ||
electrification of transportation, buildings and | ||
industries exceed the costs. | ||
(B) Enhance the grid's flexibility to adapt to | ||
increased deployment of nondispatchable resources, | ||
improve the ability and performance of the grid on | ||
load balancing, and offer a variety of rate plans to | ||
match consumer consumption patterns and lower consumer | ||
bills for electricity delivery and supply. | ||
(C) Ensure rates reflect cost savings attributable | ||
to grid modernization and utilize distributed energy | ||
resources that allow the utility to defer or forgo |
traditional grid investments that would otherwise be | ||
required to provide safe and reliable service. | ||
(D) Metrics designed to create and sustain | ||
full-time-equivalent jobs and opportunities for all | ||
segments of the population and workforce, including | ||
minority-owned businesses, women-owned businesses, | ||
veteran-owned businesses, and businesses owned by a | ||
person or persons with a disability, and that do not, | ||
consistent with State and federal law, discriminate | ||
based on race or socioeconomic status as a result of | ||
this amendatory Act of the 102nd General Assembly. | ||
(E) Maximize and prioritize the allocation of grid | ||
planning benefits to environmental justice and | ||
economically disadvantaged customers and communities, | ||
such that all metrics provide equitable benefits | ||
across the utility's service territory and maintain | ||
and improve utility customers' access to uninterrupted | ||
utility services. | ||
(4) The Commission may establish new tracking and | ||
performance metrics in future Multi-Year Rate Plans to | ||
further measure achievement of the outcomes set forth in | ||
paragraph (2) of subsection (f) of this Section and the | ||
other goals and requirements of this Section. | ||
(5) The Commission shall also evaluate metrics that | ||
were established in prior Multi-Year Rate Plans to | ||
determine if there has been an unanticipated material |
change in circumstances such that adjustments are required | ||
to improve the likelihood of the outcomes described in | ||
paragraph (2) of subsection (f). For metrics that were | ||
established in prior Multi-Year Rate Plan proceedings and | ||
that the Commission elects to continue, the design of | ||
these metrics, including the goals of tracking metrics and | ||
the targets and incentive levels and structures of | ||
performance metrics, may be adjusted pursuant to the | ||
requirements in this Section. The Commission may also | ||
change, adjust or phase out tracking and performance | ||
metrics that were established in prior Multi-Year Rate | ||
Plan proceedings if these metrics no longer meet the | ||
requirements of this Section or if they are rendered | ||
obsolete by the changing needs and technology of an | ||
evolving grid. Additionally, performance metrics that no | ||
longer require an incentive to create improved utility | ||
performance may become tracking metrics in a Multi-Year | ||
Rate Plan proceeding. | ||
(6) The Commission shall initiate a workshop process | ||
no later than August 1, 2021, or 15 days after the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly, whichever is later, for the purpose of | ||
facilitating the development of metrics for each utility. | ||
The workshop shall be coordinated by the staff of the | ||
Commission, or a facilitator retained by staff, and shall | ||
be organized and facilitated in a manner that encourages |
representation from diverse stakeholders and ensures | ||
equitable opportunities for participation, without | ||
requiring formal intervention or representation by an | ||
attorney. Working with staff of the Commission the | ||
facilitator may conduct a combination of workshops | ||
specific to a utility or applicable to multiple utilities | ||
where content and stakeholders are substantially similar. | ||
The workshop process shall conclude no later than October | ||
31, 2021. Following the workshop, the staff of the | ||
Commission, or the facilitator retained by the Staff, | ||
shall prepare and submit a report to the Commission that | ||
identifies the participants in the process, the metrics | ||
proposed during the process, any material issues that | ||
remained unresolved at the conclusions of such process, | ||
and any recommendations for workshop process improvements. | ||
Any workshop participant may file comments and reply | ||
comments in response to the Staff report. | ||
(A) No later than January, 20, 2022, each electric | ||
utility that intends to file a petition pursuant to | ||
subsection (b) of this Section shall file a petition | ||
with the Commission seeking approval of its | ||
performance metrics, which shall include for each | ||
metric, at a minimum, (i) a detailed description, (ii) | ||
the calculation of the baseline, (iii) the performance | ||
period and overall performance goal, provided that the | ||
performance period shall not commence prior to January |
1, 2024, (iv) each annual performance goal, (v) the | ||
performance adjustment, which shall be a symmetrical | ||
basis point increase or decrease to the utility's cost | ||
of equity based on the extent to which the utility | ||
achieved the annual performance goal, and (vi) the new | ||
or modified tariff mechanism that will apply the | ||
performance adjustments. The Commission shall issue | ||
its order approving, or approving with modification, | ||
the utility's proposed performance metrics no later | ||
than September 30, 2022. | ||
(B) No later than August 1, 2025, the Commission | ||
shall initiate a workshop process that conforms to the | ||
workshop purpose and requirements of this paragraph | ||
(6) of this Section to the extent they do not conflict. | ||
The workshop process shall conclude no later than | ||
October 31, 2025, and the staff of the Commission, or | ||
the facilitator retained by the Staff, shall prepare | ||
and submit a report consistent with the requirements | ||
described in this paragraph (6) of this Section. No | ||
later than January 20, 2026, each electric utility | ||
subject to the requirements of this Section shall file | ||
a petition the reflects, and is consistent with, the | ||
components required in this paragraph (6) of this | ||
Section, and the Commission shall issue its order | ||
approving, or approving with modification, the | ||
utility's proposed performance metrics no later than |
September 30, 2026. | ||
(f) On May 1 of each year, following the approval of the | ||
first Multi-Year Rate Plan and its initial year, the | ||
Commission shall open an annual performance evaluation | ||
proceeding to evaluate the utilities' performance on their | ||
metric targets during the year just completed, as well as the | ||
appropriate Annual Adjustment as defined in paragraph (6). The | ||
Commission shall determine the performance and annual | ||
adjustments to be applied through a surcharge in the following | ||
calendar year. | ||
(1) On February 15 of each year, prior to the annual | ||
performance evaluation proceeding, each utility shall file | ||
a performance evaluation report with the Commission that | ||
includes a description of and all data supporting how the | ||
utility performed under each performance metric and an | ||
identification of any extraordinary events that adversely | ||
impacted the utility's performance. | ||
(2) The metrics approved under this Section are based | ||
on the assumptions that the utility may fully implement | ||
the technology and equipment, and make the investments, | ||
required to achieve the metrics and performance goals. If | ||
the utility is unable to meet the metrics and performance | ||
goals because it was hindered by unanticipated technology | ||
or equipment implementation delays, government-declared | ||
emergencies, or other investment impediments, then the | ||
utility shall be permitted to file a petition with the |
Commission on or before the date that its report is due | ||
pursuant to paragraph (1) of this subsection (f) | ||
requesting that the utility be excused from compliance | ||
with the applicable performance goal or goals. The burden | ||
of proof shall be on the utility, consistent with Article | ||
IX, and the utility's petition shall be supported by | ||
substantial evidence. No later than 90 days after the | ||
utility files its petition, the Commission shall, after | ||
notice and hearing, enter its order approving or denying, | ||
in whole or in part, the utility's petition based on the | ||
extent to which the utility demonstrated that its | ||
achievement of the affected metrics and performance goals | ||
was hindered by unanticipated technology or equipment | ||
implementation delays, or other investment impediments, | ||
that were reasonably outside of the utility's control. | ||
(3) The electric utility shall provide for an annual | ||
independent evaluation of its performance on metrics. The | ||
independent evaluator shall review the utility's | ||
assumptions, baselines, targets, calculation | ||
methodologies, and other relevant information, especially | ||
ensuring that the utility's data for establishing | ||
baselines matches actual performance, and shall provide a | ||
report to the Commission in each annual performance | ||
evaluation describing the results. The independent | ||
evaluator shall present this report as evidence as a | ||
nonparty participant and shall not be represented by the |
utility's legal counsel. The independent evaluator shall | ||
be hired through a competitive bidding process with | ||
approval of the contract by the Commission. | ||
The Commission shall consider the report of the | ||
independent evaluator in determining the utility's | ||
achievement of performance targets. Discrepancies between | ||
the utility's assumptions, baselines, targets, or | ||
calculations and those of the independent evaluator shall | ||
be closely scrutinized by the Commission. If the | ||
Commission finds that the utility's reported data for any | ||
metric or metrics significantly and incorrectly deviates | ||
from the data reported by the independent evaluator, then | ||
the Commission shall order the utility to revise its data | ||
collection and calculation process within 60 days, with | ||
specifications where appropriate. | ||
(4) The Commission shall, after notice and hearing in | ||
the annual performance evaluation proceeding, enter an | ||
order approving the utility's performance adjustment based | ||
on its achievement of or failure to achieve its | ||
performance targets no later than December 20 each year. | ||
The Commission-approved penalties or incentives shall be | ||
applied beginning with the next calendar year. | ||
(5) In order to promote the transparency of utility | ||
investments during the effective period of a multi-year | ||
rate plan, inform the Commission's investigation and | ||
adjustment of rates in the annual adjustment process, and |
to facilitate the participation of stakeholders in the | ||
annual adjustment process, an electric utility with an | ||
effective Multi-Year Rate Plan shall, within 90 days of | ||
the close of each quarter during the Multi-Year Rate Plan | ||
period, submit to the Commission a report that summarizes | ||
the additions to utility plant that were placed into | ||
service during the prior quarter, which for purposes of | ||
the report shall be the most recently closed fiscal | ||
quarter. The report shall also summarize the utility plant | ||
the electric utility projects it will place into service | ||
through the end of the calendar year in which the report is | ||
filed. The projections, estimates, plans, and | ||
forward-looking information that are provided in the | ||
reports pursuant to this paragraph (5) are for planning | ||
purposes and are intended to be illustrative of the | ||
investments that the utility proposes to make as of the | ||
time of submittal. Nothing in this paragraph (5) | ||
precludes, or is intended to limit, a utility's ability to | ||
modify and update its projections, estimates, plans, and | ||
forward-looking information previously submitted in order | ||
to reflect stakeholder input or other new or updated | ||
information and analysis, including, but not limited to, | ||
changes in specific investment needs, customer electric | ||
use patterns, customer applications and preferences, and | ||
commercially available equipment and technologies, however | ||
the utility shall explain any changes or deviations |
between the projected investments from the quarterly | ||
reports and actual investments in the annual report. The | ||
reports submitted pursuant to this subsection are intended | ||
to be flexible planning tools, and are expected to evolve | ||
as new information becomes available. Within 7 days of | ||
receiving a quarterly report, the Commission shall timely | ||
make such report available to the public by posting it on | ||
the Commission's website. Each quarterly report shall | ||
include the following detail: | ||
(A) The total dollar value of the additions to | ||
utility plant placed in service during the prior | ||
quarter; | ||
(B) A list of the major investment categories the | ||
electric utility used to manage its routine standing | ||
operational activities during the prior quarter | ||
including the total dollar amount for the work | ||
reflected in each investment category in which utility | ||
plant in service is equal to or greater than | ||
$2,000,000 for an electric utility that serves more | ||
than 3,000,000 customers in the State or $500,000 for | ||
an electric utility that serves less than 3,000,000 | ||
customers but more than 500,000 customers in the State | ||
as of the last day of the quarterly reporting period, | ||
as well as a summary description of each investment | ||
category; | ||
(C) A list of the projects which the electric |
utility has identified by a unique investment tracking | ||
number for utility plant placed in service during the | ||
prior quarter for utility plant placed in service with | ||
a total dollar value as of the last day of the | ||
quarterly reporting period that is equal to or greater | ||
than $2,000,000 for an electric utility that serves | ||
more than 3,000,000 customers in the State or $500,000 | ||
for an electric utility that serves less than | ||
3,000,000 retail customers but more than $500,000 | ||
retail customers in the State, as well as a summary of | ||
each project; | ||
(D) The estimated total dollar value of the | ||
additions to utility plant projected to be placed in | ||
service through the end of the calendar year in which | ||
the report is filed; | ||
(E) A list of the major investment categories the | ||
electric utility used to manage its routine standing | ||
operational activities with utility plant projected to | ||
be placed in service through the end of the calendar | ||
year in which the report is filed, including the total | ||
dollar amount for the work reflected in each | ||
investment category in which utility plant in service | ||
is projected to be equal to or greater than $2,000,000 | ||
for an electric utility that serves more than | ||
3,000,000 customers in the State or $500,000 for an | ||
electric utility that serves less than 3,000,000 |
retail customers but more than 500,000 retail | ||
customers in the State, as well as a summary | ||
description of each investment category; and | ||
(F) A list of the projects for which the electric | ||
utility has identified by a unique investment tracking | ||
number for utility plant projected to be placed in | ||
service through the end of the calendar year in which | ||
the report is filed with an estimated dollar value | ||
that is equal to or greater than $2,000,000 for an | ||
electric utility that serves more than 3,000,000 | ||
customers in the State or $500,000 for an electric | ||
utility that serves less than 3,000,000 retails | ||
customers but more than $500,000 retail customers in | ||
the State, as well as a summary description of each | ||
project. | ||
(6) As part of the Annual Performance Adjustment, the | ||
electric utility shall submit evidence sufficient to | ||
support a determination of its actual revenue requirement | ||
for the applicable calendar year, consistent with the | ||
provisions of paragraphs (d) and (f) of this subsection. | ||
The electric utility shall bear the burden of | ||
demonstrating that its costs were prudent and reasonable, | ||
subject to the provisions of paragraph (4) of this | ||
subsection (f). The Commission's review of the electric | ||
utility's annual adjustment shall be based on the same | ||
evidentiary standards, including, but not limited to, |
those concerning the prudence and reasonableness of the | ||
known and measurable costs forecasted to be incurred by | ||
the utility, and the used and usefulness of the actual | ||
plant investment pursuant to Section 9-211 of this Act, | ||
that the Commission applies in a proceeding to review a | ||
filing for changes in rates pursuant to Section 9-201 of | ||
this Act. The Commission shall determine the prudence and | ||
reasonableness of the actual costs incurred by the utility | ||
during the applicable calendar year, as well as determine | ||
the original cost of plant in service as of the end of the | ||
applicable calendar year. The Commission shall then | ||
determine the Annual Adjustment, which shall mean the | ||
amount by which, the electric utility's actual revenue | ||
requirement for the applicable year of the Multi-Year Rate | ||
Plan either exceeded, or was exceeded by, the revenue | ||
requirement approved by the Commission for such calendar | ||
year, plus carrying costs calculated at the weighted | ||
average cost of capital approved for the Multi-Year Rate | ||
Plan. | ||
The Commission's determination of the electric | ||
utility's actual revenue requirement for the applicable | ||
calendar year shall be based on: | ||
(A) the Commission-approved used and useful, | ||
prudent and reasonable actual costs for the applicable | ||
calendar year, which shall be determined pursuant to | ||
the following criteria: |
(i) The overall level of actual costs incurred | ||
during the calendar year, provided that the | ||
Commission may not allow recovery of actual costs | ||
that are more than 105% of the approved revenue | ||
requirement calculated as provided in item (ii) of | ||
this subparagraph (A), except to the extent the | ||
Commission approves a modification of the | ||
Multi-Year Rate Plan to permit such recovery. | ||
(ii) The calculation of 105% of the revenue | ||
requirement required by this subparagraph (A) | ||
shall exclude the revenue requirement impacts of | ||
the following volatile and fluctuating variables | ||
that occurred during the year: (i) storms and | ||
weather-related events for which the utility | ||
provides sufficient evidence to demonstrate that | ||
such expenses were not foreseeable and not in | ||
control of the utility; (ii) new business; (iii) | ||
changes in interest rates; (iv) changes in taxes; | ||
(v) facility relocations; (vi) changes in pension | ||
or post-retirement benefits costs due to | ||
fluctuations in interest rates, market returns or | ||
actuarial assumptions; (vii) amortization expenses | ||
related to costs; and (viii) changes in the timing | ||
of when an expenditure or investment is made such | ||
that it is accelerated to occur during the | ||
applicable year or deferred to occur in a |
subsequent year. | ||
(B) the year-end rate base; | ||
(C) the cost of equity approved in the multi-year | ||
rate plan; and | ||
(D) the electric utility's actual year-end capital | ||
structure, provided that the common equity ratio in | ||
such capital structure may not exceed the common | ||
equity ratio that was approved by the Commission in | ||
the Multi-Year Rate Plan. | ||
(2) The Commission's determinations of the prudence | ||
and reasonableness of the costs incurred for the | ||
applicable year, and of the original cost of plant in | ||
service as of the end of the applicable calendar year, | ||
shall be final upon entry of the Commission's order and | ||
shall not be subject to collateral attack in any other | ||
Commission proceeding, case, docket, order, rule, or | ||
regulation; however, nothing in this Section shall | ||
prohibit a party from petitioning the Commission to rehear | ||
or appeal to the courts the order pursuant to the | ||
provisions of this Act. | ||
(g) During the period leading to approval of the first | ||
Multi-Year Integrated Grid Plan, each electric utility will | ||
necessarily continue to invest in its distribution grid. Those | ||
investments will be subject to a determination of prudence and | ||
reasonableness consistent with Commission practice and law. | ||
Any failure to conform to the Multi-Year Integrated Grid Plan |
ultimately approved shall not imply imprudence or | ||
unreasonableness. | ||
(h) After calculating the Performance Adjustment and | ||
Annual Adjustment, the Commission shall order the electric | ||
utility to collect the amount in excess of the revenue | ||
requirement from customers, or issue a refund to customers, as | ||
applicable, to be applied through a surcharge beginning with | ||
the next calendar year. | ||
Electric utilities subject to the requirements of this | ||
Section shall be permitted to file new or revised tariffs to | ||
comply with the provisions of, and Commission orders entered | ||
pursuant to, this Section. | ||
(220 ILCS 5/16-108.19 new) | ||
Sec. 16-108.19. Division of Integrated Distribution | ||
Planning. | ||
(a) The Commission shall establish the Division of | ||
Integrated Distribution Planning within the Bureau of Public | ||
Utilities. The Division shall be staffed by no less than 13 | ||
professionals, including engineers, rate analysts, | ||
accountants, policy analysts, utility research and analysis | ||
analysts, cybersecurity analysts, informational technology | ||
specialists, and lawyers to review and evaluate Integrated | ||
Grid Plans, updates to Integrated Grid Plans, audits, and | ||
other duties as assigned by the Chief of the Public Utilities | ||
Bureau. |
(b) The Division of Integrated Distribution Planning shall | ||
be established by January 1, 2022. | ||
(220 ILCS 5/16-108.20 new) | ||
Sec. 16-108.20. Cost-effectiveness incentive. | ||
(a) The General Assembly finds that it is critical to | ||
maintain this focus on utility bill affordability as the State | ||
transitions to a clean energy economy. The General Assembly | ||
accordingly finds that it may be in the public interest to | ||
incentivize electric utilities to reduce spending where | ||
practicable and where such reduction will not have an adverse | ||
impact on the State's clean energy goals; this Act's | ||
overarching objectives of efficiency, environmental quality, | ||
reliability, and equity; or the utility's achievement on its | ||
metrics. | ||
(b) In addition to the performance metrics established and | ||
approved by the Commission pursuant to Section 16-108.18 of | ||
this Act, the Commission may also determine whether each | ||
electric utility that serves more than 500,000 retail | ||
customers in the State may also be subject to a performance | ||
metric that incentivizes the utility to make cost-effective | ||
choices and stretch to achieve cost savings for public utility | ||
customers where it can do so without adverse impact (on | ||
efficiency, environmental quality, reliability or equity). | ||
(c) The Commission shall initiate a docket on the subject | ||
of cost-effective shared savings, and shall make a |
determination if it would be in the public interest and the | ||
best interest of electric utility customers to establish a | ||
performance metric that incentivizes utilities to reduce their | ||
costs while meeting all other performance metrics and | ||
addressing state goals as found in this Act. | ||
(d) At the conclusion of the docket, if the Commission | ||
determines that such an incentive is in the best interest of | ||
consumers, the Commission shall have the authority to set a | ||
specific metric as part of the performance metric process | ||
pursuant to Section 16-108.18. Such metric shall include a | ||
determination of the percentage of the shared savings to be | ||
returned to the customers and to the utility. Such percentage | ||
shall be set so as to incentivize the utility to make savings, | ||
while providing substantial benefits to consumers. | ||
(220 ILCS 5/16-108.21 new) | ||
Sec. 16-108.21. Accelerated repayment of excess deferred | ||
income tax. | ||
(a) The General Assembly finds: | ||
(1) That a portion of each utility's compensation from | ||
ratepayers is attributable to reimbursement for federal | ||
taxes paid by the utility. | ||
(2) Due to the enactment of the 2017 Tax Cut and Jobs | ||
Act, the federal income tax rate for corporations was | ||
lowered, resulting in excess deferred income tax for | ||
distribution utilities in the State that serve more than |
100,000 customers. | ||
(3) In proceedings before the Commission, it was | ||
determined that the repayment period to ratepayers by the | ||
utilities which serve more than 100,000 customers in this | ||
State for this excess deferred income tax would be 39.5 | ||
years. | ||
(4) The COVID-19 pandemic has harmed many customers of | ||
all rate classes in the State, and resulted in the | ||
Commission adopting a number of measures to provide relief | ||
for customers. | ||
(5) It would be in the interest of the State for the | ||
repayment of the excess deferred income tax referenced in | ||
Commission Dockets 19-0436, 19-0387, 20-0381, and 20-0393 | ||
to be paid back to ratepayers on a timetable greatly | ||
accelerated from that set forth in the dockets. | ||
(b) Notwithstanding the Commission Orders in Dockets | ||
19-0436, 19-0387, 20-0381, and 20-0382, the excess deferred | ||
income tax referenced in those dockets shall be fully refunded | ||
to ratepayers by the respective utilities no later than | ||
December 31, 2025. | ||
(c) The Commission shall initiate a docket to provide for | ||
the refunding of these excess deferred income taxes to | ||
ratepayers of the utilities referenced in those dockets, and | ||
shall set forth any necessary provisions to accomplish the | ||
reimbursement on the schedule delineated in subsection (b). |
(220 ILCS 5/16-108.25 new) | ||
Sec. 16-108.25. Tariff regarding transition in rates. Each | ||
electric utility that files a Multi-Year Rate Plan pursuant to | ||
Section 16-108.18 of this Act or a general rate case as | ||
described in this Act shall also file a tariff that sets forth | ||
the processes and procedures by which the electric utility | ||
will transition from its current rates and ratemaking | ||
mechanism to the new Multi-Year Rate Plan or a general rate | ||
case and rates that will take effect under that multi-year | ||
plan. The proposed tariff shall be consistent with the tariff | ||
approved by the Commission in Docket No. 20-0426 and covers | ||
the period until the new delivery rates are effective and all | ||
required processes and procedures described in the tariff have | ||
been completed. | ||
Each electric utility subject to this Section shall file | ||
its proposed tariff no later than 30 days after the effective | ||
date of this amendatory Act of the 102nd General Assembly, and | ||
the Commission shall enter its order approving the tariff no | ||
later than 120 days after it was filed if the Commission finds | ||
that the proposed tariff is consistent with the tariff | ||
previously approved in Docket No. 20-0426 for the period until | ||
the new delivery rates are effective and all required | ||
processes and procedures described in the tariff have been | ||
completed. If the Commission does not so find, then the | ||
Commission shall approve the utility's tariff with those | ||
modifications that are required to make the proposed tariff |
consistent with the tariff approved in Docket 20-0426 until | ||
the new delivery rates are effective and all required | ||
processes and procedures described in the tariff have been | ||
completed. | ||
An electric utility that has a tariff in effect on the | ||
effective date of this amendatory Act of the 102nd General | ||
Assembly that provides for the transition from its current | ||
rates and ratemaking mechanism to new base rates approved | ||
pursuant to Article IX of this Act, shall file a compliance | ||
tariff modifying its existing tariff to comply with the | ||
provisions of this Section. The compliance tariff shall go | ||
into effect on 45 days' notice. | ||
(220 ILCS 5/16-108.30 new) | ||
Sec. 16-108.30. Energy Transition Assistance Fund. | ||
(a) The Energy Transition Assistance Fund is hereby | ||
created as a special fund in the State Treasury. The Energy | ||
Transition Assistance Fund is authorized to receive moneys | ||
collected pursuant to this Section. Subject to appropriation, | ||
the Department of Commerce and Economic Opportunity shall use | ||
moneys from the Energy Transition Assistance Fund consistent | ||
with the purposes of this Act. | ||
(b) An electric utility serving more than 500,000 | ||
customers in the State shall assess an energy transition | ||
assistance charge on all its retail customers for the Energy | ||
Transition Assistance Fund. The utility's total charge shall |
be set based upon the value determined by the Department of | ||
Commerce and Economic Opportunity pursuant to subsection (d) | ||
or (e), as applicable, of Section 605-1075 of the Department | ||
of Commerce and Economic Opportunity Law of the Civil | ||
Administrative Code of Illinois. For each utility, the charge | ||
shall be recovered through a single, uniform cents per | ||
kilowatt-hour charge applicable to all retail customers. For | ||
each utility, the charge shall not exceed 1.3% of the amount | ||
paid per kilowatthour by those customers during the year | ||
ending May 31, 2009. | ||
(c) Within 75 days of the effective date of this | ||
amendatory Act of the 102nd General Assembly, each electric | ||
utility serving more than 500,000 customers in the State shall | ||
file with the Illinois Commerce Commission tariffs | ||
incorporating the energy transition assistance charge in other | ||
charges stated in such tariffs, which energy transition | ||
assistance charges shall become effective no later than the | ||
beginning of the first billing cycle that begins on or after | ||
January 1, 2022. Each electric utility serving more than | ||
500,000 customers in the State shall, prior to the beginning | ||
of each calendar year starting with calendar year 2023, file | ||
with the Illinois Commerce Commission tariff revisions to | ||
incorporate annual revisions to the energy transition | ||
assistance charge as prescribed by the Department of Commerce | ||
and Economic Opportunity pursuant to Section 605-1075 of the | ||
Department of Commerce and Economic Opportunity Law of the |
Civil Administrative Code of Illinois so that such revision | ||
becomes effective no later than the beginning of the first | ||
billing cycle in each respective year. | ||
(d) The energy transition assistance charge shall be | ||
considered a charge for public utility service. | ||
(e) By the 20th day of the month following the month in | ||
which the charges imposed by this Section were collected, each | ||
electric utility serving more than 500,000 customers in the | ||
State shall remit to Department of Revenue all moneys received | ||
as payment of the energy transition assistance charge on a | ||
return prescribed and furnished by the Department of Revenue | ||
showing such information as the Department of Revenue may | ||
reasonably require. If a customer makes a partial payment, a | ||
public utility may apply such partial payments first to | ||
amounts owed to the utility. No customer may be subjected to | ||
disconnection of his or her utility service for failure to pay | ||
the energy transition assistance charge. | ||
If any payment provided for in this subsection exceeds the | ||
electric utility's liabilities under this Act, as shown on an | ||
original return, the Department may authorize the electric | ||
utility to credit such excess payment against liability | ||
subsequently to be remitted to the Department under this Act, | ||
in accordance with reasonable rules adopted by the Department. | ||
All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, | ||
5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 | ||
of the Retailers' Occupation Tax Act that are not inconsistent |
with this Act apply, as far as practicable, to the charge | ||
imposed by this Act to the same extent as if those provisions | ||
were included in this Act. References in the incorporated | ||
Sections of the Retailers' Occupation Tax Act to retailers, to | ||
sellers, or to persons engaged in the business of selling | ||
tangible personal property mean persons required to remit the | ||
charge imposed under this Act. | ||
(f) The Department of Revenue shall deposit into the | ||
Energy Transition Assistance Fund all moneys remitted to it in | ||
accordance with this Section. | ||
(g) The Department of Revenue may establish such rules as | ||
it deems necessary to implement this Section. | ||
(h) The Department of Commerce and Economic Opportunity | ||
may establish such rules as it deems necessary to implement | ||
this Section. | ||
(220 ILCS 5/16-111.5) | ||
Sec. 16-111.5. Provisions relating to procurement. | ||
(a) An electric utility that on December 31, 2005 served | ||
at least 100,000 customers in Illinois shall procure power and | ||
energy for its eligible retail customers in accordance with | ||
the applicable provisions set forth in Section 1-75 of the | ||
Illinois Power Agency Act and this Section. Beginning with the | ||
delivery year commencing on June 1, 2017, such electric | ||
utility shall also procure zero emission credits from zero | ||
emission facilities in accordance with the applicable |
provisions set forth in Section 1-75 of the Illinois Power | ||
Agency Act, and, for years beginning on or after June 1, 2017, | ||
the utility shall procure renewable energy resources in | ||
accordance with the applicable provisions set forth in Section | ||
1-75 of the Illinois Power Agency Act and this Section. | ||
Beginning with the delivery year commencing on June 1, 2022, | ||
an electric utility serving over 3,000,000 customers shall | ||
also procure carbon mitigation credits from carbon-free energy | ||
resources in accordance with the applicable provisions set | ||
forth in Section 1-75 of the Illinois Power Agency Act and this | ||
Section. A small multi-jurisdictional electric utility that on | ||
December 31, 2005 served less than 100,000 customers in | ||
Illinois may elect to procure power and energy for all or a | ||
portion of its eligible Illinois retail customers in | ||
accordance with the applicable provisions set forth in this | ||
Section and Section 1-75 of the Illinois Power Agency Act. | ||
This Section shall not apply to a small multi-jurisdictional | ||
utility until such time as a small multi-jurisdictional | ||
utility requests the Illinois Power Agency to prepare a | ||
procurement plan for its eligible retail customers. "Eligible | ||
retail customers" for the purposes of this Section means those | ||
retail customers that purchase power and energy from the | ||
electric utility under fixed-price bundled service tariffs, | ||
other than those retail customers whose service is declared or | ||
deemed competitive under Section 16-113 and those other | ||
customer groups specified in this Section, including |
self-generating customers, customers electing hourly pricing, | ||
or those customers who are otherwise ineligible for | ||
fixed-price bundled tariff service. For those customers that | ||
are excluded from the procurement plan's electric supply | ||
service requirements, and the utility shall procure any supply | ||
requirements, including capacity, ancillary services, and | ||
hourly priced energy, in the applicable markets as needed to | ||
serve those customers, provided that the utility may include | ||
in its procurement plan load requirements for the load that is | ||
associated with those retail customers whose service has been | ||
declared or deemed competitive pursuant to Section 16-113 of | ||
this Act to the extent that those customers are purchasing | ||
power and energy during one of the transition periods | ||
identified in subsection (b) of Section 16-113 of this Act. | ||
(b) A procurement plan shall be prepared for each electric | ||
utility consistent with the applicable requirements of the | ||
Illinois Power Agency Act and this Section. For purposes of | ||
this Section, Illinois electric utilities that are affiliated | ||
by virtue of a common parent company are considered to be a | ||
single electric utility. Small multi-jurisdictional utilities | ||
may request a procurement plan for a portion of or all of its | ||
Illinois load. Each procurement plan shall analyze the | ||
projected balance of supply and demand for those retail | ||
customers to be included in the plan's electric supply service | ||
requirements over a 5-year period, with the first planning | ||
year beginning on June 1 of the year following the year in |
which the plan is filed. The plan shall specifically identify | ||
the wholesale products to be procured following plan approval, | ||
and shall follow all the requirements set forth in the Public | ||
Utilities Act and all applicable State and federal laws, | ||
statutes, rules, or regulations, as well as Commission orders. | ||
Nothing in this Section precludes consideration of contracts | ||
longer than 5 years and related forecast data. Unless | ||
specified otherwise in this Section, in the procurement plan | ||
or in the implementing tariff, any procurement occurring in | ||
accordance with this plan shall be competitively bid through a | ||
request for proposals process. Approval and implementation of | ||
the procurement plan shall be subject to review and approval | ||
by the Commission according to the provisions set forth in | ||
this Section. A procurement plan shall include each of the | ||
following components: | ||
(1) Hourly load analysis. This analysis shall include: | ||
(i) multi-year historical analysis of hourly | ||
loads; | ||
(ii) switching trends and competitive retail | ||
market analysis; | ||
(iii) known or projected changes to future loads; | ||
and | ||
(iv) growth forecasts by customer class. | ||
(2) Analysis of the impact of any demand side and | ||
renewable energy initiatives. This analysis shall include: | ||
(i) the impact of demand response programs and |
energy efficiency programs, both current and | ||
projected; for small multi-jurisdictional utilities, | ||
the impact of demand response and energy efficiency | ||
programs approved pursuant to Section 8-408 of this | ||
Act, both current and projected; and | ||
(ii) supply side needs that are projected to be | ||
offset by purchases of renewable energy resources, if | ||
any. | ||
(3) A plan for meeting the expected load requirements | ||
that will not be met through preexisting contracts. This | ||
plan shall include: | ||
(i) definitions of the different Illinois retail | ||
customer classes for which supply is being purchased; | ||
(ii) the proposed mix of demand-response products | ||
for which contracts will be executed during the next | ||
year. For small multi-jurisdictional electric | ||
utilities that on December 31, 2005 served fewer than | ||
100,000 customers in Illinois, these shall be defined | ||
as demand-response products offered in an energy | ||
efficiency plan approved pursuant to Section 8-408 of | ||
this Act. The cost-effective demand-response measures | ||
shall be procured whenever the cost is lower than | ||
procuring comparable capacity products, provided that | ||
such products shall: | ||
(A) be procured by a demand-response provider | ||
from those retail customers included in the plan's |
electric supply service requirements; | ||
(B) at least satisfy the demand-response | ||
requirements of the regional transmission | ||
organization market in which the utility's service | ||
territory is located, including, but not limited | ||
to, any applicable capacity or dispatch | ||
requirements; | ||
(C) provide for customers' participation in | ||
the stream of benefits produced by the | ||
demand-response products; | ||
(D) provide for reimbursement by the | ||
demand-response provider of the utility for any | ||
costs incurred as a result of the failure of the | ||
supplier of such products to perform its | ||
obligations thereunder; and | ||
(E) meet the same credit requirements as apply | ||
to suppliers of capacity, in the applicable | ||
regional transmission organization market; | ||
(iii) monthly forecasted system supply | ||
requirements, including expected minimum, maximum, and | ||
average values for the planning period; | ||
(iv) the proposed mix and selection of standard | ||
wholesale products for which contracts will be | ||
executed during the next year, separately or in | ||
combination, to meet that portion of its load | ||
requirements not met through pre-existing contracts, |
including but not limited to monthly 5 x 16 peak period | ||
block energy, monthly off-peak wrap energy, monthly 7 | ||
x 24 energy, annual 5 x 16 energy, other standardized | ||
energy or capacity products designed to provide | ||
eligible retail customer benefits from commercially | ||
deployed advanced technologies including but not | ||
limited to high voltage direct current converter | ||
stations, as such term is defined in Section 1-10 of | ||
the Illinois Power Agency Act, whether or not such | ||
product is currently available in wholesale markets, | ||
annual off-peak wrap energy, annual 7 x 24 energy, | ||
monthly capacity, annual capacity, peak load capacity | ||
obligations, capacity purchase plan, and ancillary | ||
services; | ||
(v) proposed term structures for each wholesale | ||
product type included in the proposed procurement plan | ||
portfolio of products; and | ||
(vi) an assessment of the price risk, load | ||
uncertainty, and other factors that are associated | ||
with the proposed procurement plan; this assessment, | ||
to the extent possible, shall include an analysis of | ||
the following factors: contract terms, time frames for | ||
securing products or services, fuel costs, weather | ||
patterns, transmission costs, market conditions, and | ||
the governmental regulatory environment; the proposed | ||
procurement plan shall also identify alternatives for |
those portfolio measures that are identified as having | ||
significant price risk and mitigation in the form of | ||
additional retail customer and ratepayer price, | ||
reliability, and environmental benefits from | ||
standardized energy products delivered from | ||
commercially deployed advanced technologies, | ||
including, but not limited to, high voltage direct | ||
current converter stations, as such term is defined in | ||
Section 1-10 of the Illinois Power Agency Act, whether | ||
or not such product is currently available in | ||
wholesale markets . | ||
(4) Proposed procedures for balancing loads. The | ||
procurement plan shall include, for load requirements | ||
included in the procurement plan, the process for (i) | ||
hourly balancing of supply and demand and (ii) the | ||
criteria for portfolio re-balancing in the event of | ||
significant shifts in load. | ||
(5) Long-Term Renewable Resources Procurement Plan. | ||
The Agency shall prepare a long-term renewable resources | ||
procurement plan for the procurement of renewable energy | ||
credits under Sections 1-56 and 1-75 of the Illinois Power | ||
Agency Act for delivery beginning in the 2017 delivery | ||
year. | ||
(i) The initial long-term renewable resources | ||
procurement plan and all subsequent revisions shall be | ||
subject to review and approval by the Commission. For |
the purposes of this Section, "delivery year" has the | ||
same meaning as in Section 1-10 of the Illinois Power | ||
Agency Act. For purposes of this Section, "Agency" | ||
shall mean the Illinois Power Agency. | ||
(ii) The long-term renewable resources planning | ||
process shall be conducted as follows: | ||
(A) Electric utilities shall provide a range | ||
of load forecasts to the Illinois Power Agency | ||
within 45 days of the Agency's request for | ||
forecasts, which request shall specify the length | ||
and conditions for the forecasts including, but | ||
not limited to, the quantity of distributed | ||
generation expected to be interconnected for each | ||
year. | ||
(B) The Agency shall publish for comment the | ||
initial long-term renewable resources procurement | ||
plan no later than 120 days after the effective | ||
date of this amendatory Act of the 99th General | ||
Assembly and shall review, and may revise, the | ||
plan at least every 2 years thereafter. To the | ||
extent practicable, the Agency shall review and | ||
propose any revisions to the long-term renewable | ||
energy resources procurement plan in conjunction | ||
with the Agency's other planning and approval | ||
processes conducted under this Section. The | ||
initial long-term renewable resources procurement |
plan shall: | ||
(aa) Identify the procurement programs and | ||
competitive procurement events consistent with | ||
the applicable requirements of the Illinois | ||
Power Agency Act and shall be designed to | ||
achieve the goals set forth in subsection (c) | ||
of Section 1-75 of that Act. | ||
(bb) Include a schedule for procurements | ||
for renewable energy credits from | ||
utility-scale wind projects, utility-scale | ||
solar projects, and brownfield site | ||
photovoltaic projects consistent with | ||
subparagraph (G) of paragraph (1) of | ||
subsection (c) of Section 1-75 of the Illinois | ||
Power Agency Act. | ||
(cc) Identify the process whereby the | ||
Agency will submit to the Commission for | ||
review and approval the proposed contracts to | ||
implement the programs required by such plan. | ||
Copies of the initial long-term renewable | ||
resources procurement plan and all subsequent | ||
revisions shall be posted and made publicly | ||
available on the Agency's and Commission's | ||
websites, and copies shall also be provided to | ||
each affected electric utility. An affected | ||
utility and other interested parties shall have 45 |
days following the date of posting to provide | ||
comment to the Agency on the initial long-term | ||
renewable resources procurement plan and all | ||
subsequent revisions. All comments submitted to | ||
the Agency shall be specific, supported by data or | ||
other detailed analyses, and, if objecting to all | ||
or a portion of the procurement plan, accompanied | ||
by specific alternative wording or proposals. All | ||
comments shall be posted on the Agency's and | ||
Commission's websites. During this 45-day comment | ||
period, the Agency shall hold at least one public | ||
hearing within each utility's service area that is | ||
subject to the requirements of this paragraph (5) | ||
for the purpose of receiving public comment. | ||
Within 21 days following the end of the 45-day | ||
review period, the Agency may revise the long-term | ||
renewable resources procurement plan based on the | ||
comments received and shall file the plan with the | ||
Commission for review and approval. | ||
(C) Within 14 days after the filing of the | ||
initial long-term renewable resources procurement | ||
plan or any subsequent revisions, any person | ||
objecting to the plan may file an objection with | ||
the Commission. Within 21 days after the filing of | ||
the plan, the Commission shall determine whether a | ||
hearing is necessary. The Commission shall enter |
its order confirming or modifying the initial | ||
long-term renewable resources procurement plan or | ||
any subsequent revisions within 120 days after the | ||
filing of the plan by the Illinois Power Agency. | ||
(D) The Commission shall approve the initial | ||
long-term renewable resources procurement plan and | ||
any subsequent revisions, including expressly the | ||
forecast used in the plan and taking into account | ||
that funding will be limited to the amount of | ||
revenues actually collected by the utilities, if | ||
the Commission determines that the plan will | ||
reasonably and prudently accomplish the | ||
requirements of Section 1-56 and subsection (c) of | ||
Section 1-75 of the Illinois Power Agency Act. The | ||
Commission shall also approve the process for the | ||
submission, review, and approval of the proposed | ||
contracts to procure renewable energy credits or | ||
implement the programs authorized by the | ||
Commission pursuant to a long-term renewable | ||
resources procurement plan approved under this | ||
Section. | ||
In approving any long-term renewable resources | ||
procurement plan after the effective date of this | ||
amendatory Act of the 102nd General Assembly, the | ||
Commission shall approve or modify the Agency's | ||
proposal for minimum equity standards pursuant to |
subsection (c-10) of Section 1-75 of the Illinois | ||
Power Agency Act. The Commission shall consider | ||
any analysis performed by the Agency in developing | ||
its proposal, including past performance, | ||
availability of equity eligible contractors, and | ||
availability of equity eligible persons at the | ||
time the long-term renewable resources procurement | ||
plan is approved. | ||
(iii) The Agency or third parties contracted by | ||
the Agency shall implement all programs authorized by | ||
the Commission in an approved long-term renewable | ||
resources procurement plan without further review and | ||
approval by the Commission. Third parties shall not | ||
begin implementing any programs or receive any payment | ||
under this Section until the Commission has approved | ||
the contract or contracts under the process authorized | ||
by the Commission in item (D) of subparagraph (ii) of | ||
paragraph (5) of this subsection (b) and the third | ||
party and the Agency or utility, as applicable, have | ||
executed the contract. For those renewable energy | ||
credits subject to procurement through a competitive | ||
bid process under the plan or under the initial | ||
forward procurements for wind and solar resources | ||
described in subparagraph (G) of paragraph (1) of | ||
subsection (c) of Section 1-75 of the Illinois Power | ||
Agency Act, the Agency shall follow the procurement |
process specified in the provisions relating to | ||
electricity procurement in subsections (e) through (i) | ||
of this Section. | ||
(iv) An electric utility shall recover its costs | ||
associated with the procurement of renewable energy | ||
credits under this Section and pursuant to subsection | ||
(c-5) of Section 1-75 of the Illinois Power Agency Act | ||
through an automatic adjustment clause tariff under | ||
subsection (k) or a tariff pursuant to subsection | ||
(i-5), as applicable, of Section 16-108 of this Act. A | ||
utility shall not be required to advance any payment | ||
or pay any amounts under this Section that exceed the | ||
actual amount of revenues collected by the utility | ||
under paragraph (6) of subsection (c) of Section 1-75 | ||
of the Illinois Power Agency Act , subsection (c-5) of | ||
Section 1-75 of the Illinois Power Agency Act, and | ||
subsection (k) or subsection (i-5), as applicable, of | ||
Section 16-108 of this Act, and contracts executed | ||
under this Section shall expressly incorporate this | ||
limitation. | ||
(v) For the public interest, safety, and welfare, | ||
the Agency and the Commission may adopt rules to carry | ||
out the provisions of this Section on an emergency | ||
basis immediately following the effective date of this | ||
amendatory Act of the 99th General Assembly. | ||
(vi) On or before July 1 of each year, the |
Commission shall hold an informal hearing for the | ||
purpose of receiving comments on the prior year's | ||
procurement process and any recommendations for | ||
change. | ||
(b-5) An electric utility that as of January 1, 2019 | ||
served more than 300,000 retail customers in this State shall | ||
purchase renewable energy credits from new renewable energy | ||
facilities constructed at or adjacent to the sites of | ||
coal-fueled electric generating facilities in this State in | ||
accordance with subsection (c-5) of Section 1-75 of the | ||
Illinois Power Agency Act. Except as expressly provided in | ||
this Section, the plans and procedures for such procurements | ||
shall not be included in the procurement plans provided for in | ||
this Section, but rather shall be conducted and implemented | ||
solely in accordance with subsection (c-5) of Section 1-75 of | ||
the Illinois Power Agency Act. | ||
(c) The provisions of this subsection (c) shall not apply | ||
to procurements conducted pursuant to subsection (c-5) of | ||
Section 1-75 of the Illinois Power Agency Act. However, the | ||
Agency may retain a procurement administrator to assist the | ||
Agency in planning and carrying out the procurement events and | ||
implementing the other requirements specified in such | ||
subsection (c-5) of Section 1-75 of the Illinois Power Agency | ||
Act, with the costs incurred by the Agency for the procurement | ||
administrator to be recovered through fees charged to | ||
applicants for selection to sell and deliver renewable energy |
credits to electric utilities pursuant to subsection (c-5) of | ||
Section 1-75 of the Illinois Power Agency Act. The procurement | ||
process set forth in Section 1-75 of the Illinois Power Agency | ||
Act and subsection (e) of this Section shall be administered | ||
by a procurement administrator and monitored by a procurement | ||
monitor. | ||
(1) The procurement administrator shall: | ||
(i) design the final procurement process in | ||
accordance with Section 1-75 of the Illinois Power | ||
Agency Act and subsection (e) of this Section | ||
following Commission approval of the procurement plan; | ||
(ii) develop benchmarks in accordance with | ||
subsection (e)(3) to be used to evaluate bids; these | ||
benchmarks shall be submitted to the Commission for | ||
review and approval on a confidential basis prior to | ||
the procurement event; | ||
(iii) serve as the interface between the electric | ||
utility and suppliers; | ||
(iv) manage the bidder pre-qualification and | ||
registration process; | ||
(v) obtain the electric utilities' agreement to | ||
the final form of all supply contracts and credit | ||
collateral agreements; | ||
(vi) administer the request for proposals process; | ||
(vii) have the discretion to negotiate to | ||
determine whether bidders are willing to lower the |
price of bids that meet the benchmarks approved by the | ||
Commission; any post-bid negotiations with bidders | ||
shall be limited to price only and shall be completed | ||
within 24 hours after opening the sealed bids and | ||
shall be conducted in a fair and unbiased manner; in | ||
conducting the negotiations, there shall be no | ||
disclosure of any information derived from proposals | ||
submitted by competing bidders; if information is | ||
disclosed to any bidder, it shall be provided to all | ||
competing bidders; | ||
(viii) maintain confidentiality of supplier and | ||
bidding information in a manner consistent with all | ||
applicable laws, rules, regulations, and tariffs; | ||
(ix) submit a confidential report to the | ||
Commission recommending acceptance or rejection of | ||
bids; | ||
(x) notify the utility of contract counterparties | ||
and contract specifics; and | ||
(xi) administer related contingency procurement | ||
events. | ||
(2) The procurement monitor, who shall be retained by | ||
the Commission, shall: | ||
(i) monitor interactions among the procurement | ||
administrator, suppliers, and utility; | ||
(ii) monitor and report to the Commission on the | ||
progress of the procurement process; |
(iii) provide an independent confidential report | ||
to the Commission regarding the results of the | ||
procurement event; | ||
(iv) assess compliance with the procurement plans | ||
approved by the Commission for each utility that on | ||
December 31, 2005 provided electric service to at | ||
least 100,000 customers in Illinois and for each small | ||
multi-jurisdictional utility that on December 31, 2005 | ||
served less than 100,000 customers in Illinois; | ||
(v) preserve the confidentiality of supplier and | ||
bidding information in a manner consistent with all | ||
applicable laws, rules, regulations, and tariffs; | ||
(vi) provide expert advice to the Commission and | ||
consult with the procurement administrator regarding | ||
issues related to procurement process design, rules, | ||
protocols, and policy-related matters; and | ||
(vii) consult with the procurement administrator | ||
regarding the development and use of benchmark | ||
criteria, standard form contracts, credit policies, | ||
and bid documents. | ||
(d) Except as provided in subsection (j), the planning | ||
process shall be conducted as follows: | ||
(1) Beginning in 2008, each Illinois utility procuring | ||
power pursuant to this Section shall annually provide a | ||
range of load forecasts to the Illinois Power Agency by | ||
July 15 of each year, or such other date as may be required |
by the Commission or Agency. The load forecasts shall | ||
cover the 5-year procurement planning period for the next | ||
procurement plan and shall include hourly data | ||
representing a high-load, low-load, and expected-load | ||
scenario for the load of those retail customers included | ||
in the plan's electric supply service requirements. The | ||
utility shall provide supporting data and assumptions for | ||
each of the scenarios.
| ||
(2) Beginning in 2008, the Illinois Power Agency shall | ||
prepare a procurement plan by August 15th of each year, or | ||
such other date as may be required by the Commission. The | ||
procurement plan shall identify the portfolio of | ||
demand-response and power and energy products to be | ||
procured. Cost-effective demand-response measures shall be | ||
procured as set forth in item (iii) of subsection (b) of | ||
this Section. Copies of the procurement plan shall be | ||
posted and made publicly available on the Agency's and | ||
Commission's websites, and copies shall also be provided | ||
to each affected electric utility. An affected utility | ||
shall have 30 days following the date of posting to | ||
provide comment to the Agency on the procurement plan. | ||
Other interested entities also may comment on the | ||
procurement plan. All comments submitted to the Agency | ||
shall be specific, supported by data or other detailed | ||
analyses, and, if objecting to all or a portion of the | ||
procurement plan, accompanied by specific alternative |
wording or proposals. All comments shall be posted on the | ||
Agency's and Commission's websites. During this 30-day | ||
comment period, the Agency shall hold at least one public | ||
hearing within each utility's service area for the purpose | ||
of receiving public comment on the procurement plan. | ||
Within 14 days following the end of the 30-day review | ||
period, the Agency shall revise the procurement plan as | ||
necessary based on the comments received and file the | ||
procurement plan with the Commission and post the | ||
procurement plan on the websites. | ||
(3) Within 5 days after the filing of the procurement | ||
plan, any person objecting to the procurement plan shall | ||
file an objection with the Commission. Within 10 days | ||
after the filing, the Commission shall determine whether a | ||
hearing is necessary. The Commission shall enter its order | ||
confirming or modifying the procurement plan within 90 | ||
days after the filing of the procurement plan by the | ||
Illinois Power Agency. | ||
(4) The Commission shall approve the procurement plan, | ||
including expressly the forecast used in the procurement | ||
plan, if the Commission determines that it will ensure | ||
adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account any benefits of | ||
price stability. | ||
(4.5) The Commission shall review the Agency's |
recommendations for the selection of applicants to enter | ||
into long-term contracts for the sale and delivery of | ||
renewable energy credits from new renewable energy | ||
facilities to be constructed at or adjacent to the sites | ||
of coal-fueled electric generating facilities in this | ||
State in accordance with the provisions of subsection | ||
(c-5) of Section 1-75 of the Illinois Power Agency Act, | ||
and shall approve the Agency's recommendations if the | ||
Commission determines that the applicants recommended by | ||
the Agency for selection, the proposed new renewable | ||
energy facilities to be constructed, the amounts of | ||
renewable energy credits to be delivered pursuant to the | ||
contracts, and the other terms of the contracts, are | ||
consistent with the requirements of subsection (c-5) of | ||
Section 1-75 of the Illinois Power Agency Act. | ||
(e) The procurement process shall include each of the | ||
following components: | ||
(1) Solicitation, pre-qualification, and registration | ||
of bidders. The procurement administrator shall | ||
disseminate information to potential bidders to promote a | ||
procurement event, notify potential bidders that the | ||
procurement administrator may enter into a post-bid price | ||
negotiation with bidders that meet the applicable | ||
benchmarks, provide supply requirements, and otherwise | ||
explain the competitive procurement process. In addition | ||
to such other publication as the procurement administrator |
determines is appropriate, this information shall be | ||
posted on the Illinois Power Agency's and the Commission's | ||
websites. The procurement administrator shall also | ||
administer the prequalification process, including | ||
evaluation of credit worthiness, compliance with | ||
procurement rules, and agreement to the standard form | ||
contract developed pursuant to paragraph (2) of this | ||
subsection (e). The procurement administrator shall then | ||
identify and register bidders to participate in the | ||
procurement event. | ||
(2) Standard contract forms and credit terms and | ||
instruments. The procurement administrator, in | ||
consultation with the utilities, the Commission, and other | ||
interested parties and subject to Commission oversight, | ||
shall develop and provide standard contract forms for the | ||
supplier contracts that meet generally accepted industry | ||
practices. Standard credit terms and instruments that meet | ||
generally accepted industry practices shall be similarly | ||
developed. The procurement administrator shall make | ||
available to the Commission all written comments it | ||
receives on the contract forms, credit terms, or | ||
instruments. If the procurement administrator cannot reach | ||
agreement with the applicable electric utility as to the | ||
contract terms and conditions, the procurement | ||
administrator must notify the Commission of any disputed | ||
terms and the Commission shall resolve the dispute. The |
terms of the contracts shall not be subject to negotiation | ||
by winning bidders, and the bidders must agree to the | ||
terms of the contract in advance so that winning bids are | ||
selected solely on the basis of price. | ||
(3) Establishment of a market-based price benchmark. | ||
As part of the development of the procurement process, the | ||
procurement administrator, in consultation with the | ||
Commission staff, Agency staff, and the procurement | ||
monitor, shall establish benchmarks for evaluating the | ||
final prices in the contracts for each of the products | ||
that will be procured through the procurement process. The | ||
benchmarks shall be based on price data for similar | ||
products for the same delivery period and same delivery | ||
hub, or other delivery hubs after adjusting for that | ||
difference. The price benchmarks may also be adjusted to | ||
take into account differences between the information | ||
reflected in the underlying data sources and the specific | ||
products and procurement process being used to procure | ||
power for the Illinois utilities. The benchmarks shall be | ||
confidential but shall be provided to, and will be subject | ||
to Commission review and approval, prior to a procurement | ||
event. | ||
(4) Request for proposals competitive procurement | ||
process. The procurement administrator shall design and | ||
issue a request for proposals to supply electricity in | ||
accordance with each utility's procurement plan, as |
approved by the Commission. The request for proposals | ||
shall set forth a procedure for sealed, binding commitment | ||
bidding with pay-as-bid settlement, and provision for | ||
selection of bids on the basis of price. | ||
(5) A plan for implementing contingencies in the event | ||
of supplier default or failure of the procurement process | ||
to fully meet the expected load requirement due to | ||
insufficient supplier participation, Commission rejection | ||
of results, or any other cause. | ||
(i) Event of supplier default: In the event of | ||
supplier default, the utility shall review the | ||
contract of the defaulting supplier to determine if | ||
the amount of supply is 200 megawatts or greater, and | ||
if there are more than 60 days remaining of the | ||
contract term. If both of these conditions are met, | ||
and the default results in termination of the | ||
contract, the utility shall immediately notify the | ||
Illinois Power Agency that a request for proposals | ||
must be issued to procure replacement power, and the | ||
procurement administrator shall run an additional | ||
procurement event. If the contracted supply of the | ||
defaulting supplier is less than 200 megawatts or | ||
there are less than 60 days remaining of the contract | ||
term, the utility shall procure power and energy from | ||
the applicable regional transmission organization | ||
market, including ancillary services, capacity, and |
day-ahead or real time energy, or both, for the | ||
duration of the contract term to replace the | ||
contracted supply; provided, however, that if a needed | ||
product is not available through the regional | ||
transmission organization market it shall be purchased | ||
from the wholesale market. | ||
(ii) Failure of the procurement process to fully | ||
meet the expected load requirement: If the procurement | ||
process fails to fully meet the expected load | ||
requirement due to insufficient supplier participation | ||
or due to a Commission rejection of the procurement | ||
results, the procurement administrator, the | ||
procurement monitor, and the Commission staff shall | ||
meet within 10 days to analyze potential causes of low | ||
supplier interest or causes for the Commission | ||
decision. If changes are identified that would likely | ||
result in increased supplier participation, or that | ||
would address concerns causing the Commission to | ||
reject the results of the prior procurement event, the | ||
procurement administrator may implement those changes | ||
and rerun the request for proposals process according | ||
to a schedule determined by those parties and | ||
consistent with Section 1-75 of the Illinois Power | ||
Agency Act and this subsection. In any event, a new | ||
request for proposals process shall be implemented by | ||
the procurement administrator within 90 days after the |
determination that the procurement process has failed | ||
to fully meet the expected load requirement. | ||
(iii) In all cases where there is insufficient | ||
supply provided under contracts awarded through the | ||
procurement process to fully meet the electric | ||
utility's load requirement, the utility shall meet the | ||
load requirement by procuring power and energy from | ||
the applicable regional transmission organization | ||
market, including ancillary services, capacity, and | ||
day-ahead or real time energy, or both; provided, | ||
however, that if a needed product is not available | ||
through the regional transmission organization market | ||
it shall be purchased from the wholesale market. | ||
(6) The procurement processes process described in | ||
this subsection and in subsection (c-5) of Section 1-75 of | ||
the Illinois Power Agency Act are is exempt from the | ||
requirements of the Illinois Procurement Code, pursuant to | ||
Section 20-10 of that Code. | ||
(f) Within 2 business days after opening the sealed bids, | ||
the procurement administrator shall submit a confidential | ||
report to the Commission. The report shall contain the results | ||
of the bidding for each of the products along with the | ||
procurement administrator's recommendation for the acceptance | ||
and rejection of bids based on the price benchmark criteria | ||
and other factors observed in the process. The procurement | ||
monitor also shall submit a confidential report to the |
Commission within 2 business days after opening the sealed | ||
bids. The report shall contain the procurement monitor's | ||
assessment of bidder behavior in the process as well as an | ||
assessment of the procurement administrator's compliance with | ||
the procurement process and rules. The Commission shall review | ||
the confidential reports submitted by the procurement | ||
administrator and procurement monitor, and shall accept or | ||
reject the recommendations of the procurement administrator | ||
within 2 business days after receipt of the reports. | ||
(g) Within 3 business days after the Commission decision | ||
approving the results of a procurement event, the utility | ||
shall enter into binding contractual arrangements with the | ||
winning suppliers using the standard form contracts; except | ||
that the utility shall not be required either directly or | ||
indirectly to execute the contracts if a tariff that is | ||
consistent with subsection (l) of this Section has not been | ||
approved and placed into effect for that utility. | ||
(h) For the procurement of standard wholesale products, | ||
the names of the successful bidders and the load weighted | ||
average of the winning bid prices for each contract type and | ||
for each contract term shall be made available to the public at | ||
the time of Commission approval of a procurement event. For | ||
procurements conducted to meet the requirements of subsection | ||
(b) of Section 1-56 or subsection (c) of Section 1-75 of the | ||
Illinois Power Agency Act governed by the provisions of this | ||
Section, the address and nameplate capacity of the new |
renewable energy generating facility proposed by a winning | ||
bidder shall also be made available to the public at the time | ||
of Commission approval of a procurement event, along with the | ||
business address and contact information for any winning | ||
bidder. An estimate or approximation of the nameplate capacity | ||
of the new renewable energy generating facility may be | ||
disclosed if necessary to protect the confidentiality of | ||
individual bid prices. | ||
The Commission, the procurement monitor, the procurement | ||
administrator, the Illinois Power Agency, and all participants | ||
in the procurement process shall maintain the confidentiality | ||
of all other supplier and bidding information in a manner | ||
consistent with all applicable laws, rules, regulations, and | ||
tariffs. Confidential information, including the confidential | ||
reports submitted by the procurement administrator and | ||
procurement monitor pursuant to subsection (f) of this | ||
Section, shall not be made publicly available and shall not be | ||
discoverable by any party in any proceeding, absent a | ||
compelling demonstration of need, nor shall those reports be | ||
admissible in any proceeding other than one for law | ||
enforcement purposes. The names of the successful bidders and | ||
the load weighted average of the winning bid prices for each | ||
contract type and for each contract term shall be made | ||
available to the public at the time of Commission approval of a | ||
procurement event. The Commission, the procurement monitor, | ||
the procurement administrator, the Illinois Power Agency, and |
all participants in the procurement process shall maintain the | ||
confidentiality of all other supplier and bidding information | ||
in a manner consistent with all applicable laws, rules, | ||
regulations, and tariffs. Confidential information, including | ||
the confidential reports submitted by the procurement | ||
administrator and procurement monitor pursuant to subsection | ||
(f) of this Section, shall not be made publicly available and | ||
shall not be discoverable by any party in any proceeding, | ||
absent a compelling demonstration of need, nor shall those | ||
reports be admissible in any proceeding other than one for law | ||
enforcement purposes. | ||
(i) Within 2 business days after a Commission decision | ||
approving the results of a procurement event or such other | ||
date as may be required by the Commission from time to time, | ||
the utility shall file for informational purposes with the | ||
Commission its actual or estimated retail supply charges, as | ||
applicable, by customer supply group reflecting the costs | ||
associated with the procurement and computed in accordance | ||
with the tariffs filed pursuant to subsection (l) of this | ||
Section and approved by the Commission. | ||
(j) Within 60 days following August 28, 2007 (the | ||
effective date of Public Act 95-481), each electric utility | ||
that on December 31, 2005 provided electric service to at | ||
least 100,000 customers in Illinois shall prepare and file | ||
with the Commission an initial procurement plan, which shall | ||
conform in all material respects to the requirements of the |
procurement plan set forth in subsection (b); provided, | ||
however, that the Illinois Power Agency Act shall not apply to | ||
the initial procurement plan prepared pursuant to this | ||
subsection. The initial procurement plan shall identify the | ||
portfolio of power and energy products to be procured and | ||
delivered for the period June 2008 through May 2009, and shall | ||
identify the proposed procurement administrator, who shall | ||
have the same experience and expertise as is required of a | ||
procurement administrator hired pursuant to Section 1-75 of | ||
the Illinois Power Agency Act. Copies of the procurement plan | ||
shall be posted and made publicly available on the | ||
Commission's website. The initial procurement plan may include | ||
contracts for renewable resources that extend beyond May 2009. | ||
(i) Within 14 days following filing of the initial | ||
procurement plan, any person may file a detailed objection | ||
with the Commission contesting the procurement plan | ||
submitted by the electric utility. All objections to the | ||
electric utility's plan shall be specific, supported by | ||
data or other detailed analyses. The electric utility may | ||
file a response to any objections to its procurement plan | ||
within 7 days after the date objections are due to be | ||
filed. Within 7 days after the date the utility's response | ||
is due, the Commission shall determine whether a hearing | ||
is necessary. If it determines that a hearing is | ||
necessary, it shall require the hearing to be completed | ||
and issue an order on the procurement plan within 60 days |
after the filing of the procurement plan by the electric | ||
utility. | ||
(ii) The order shall approve or modify the procurement | ||
plan, approve an independent procurement administrator, | ||
and approve or modify the electric utility's tariffs that | ||
are proposed with the initial procurement plan. The | ||
Commission shall approve the procurement plan if the | ||
Commission determines that it will ensure adequate, | ||
reliable, affordable, efficient, and environmentally | ||
sustainable electric service at the lowest total cost over | ||
time, taking into account any benefits of price stability. | ||
(k) (Blank). | ||
(k-5) (Blank). | ||
(l) An electric utility shall recover its costs incurred | ||
under this Section and subsection (c-5) of Section 1-75 of the | ||
Illinois Power Agency Act , including, but not limited to, the | ||
costs of procuring power and energy demand-response resources | ||
under this Section and its costs for purchasing renewable | ||
energy credits pursuant to subsection (c-5) of Section 1-75 of | ||
the Illinois Power Agency Act . The utility shall file with the | ||
initial procurement plan its proposed tariffs through which | ||
its costs of procuring power that are incurred pursuant to a | ||
Commission-approved procurement plan and those other costs | ||
identified in this subsection (l), will be recovered. The | ||
tariffs shall include a formula rate or charge designed to | ||
pass through both the costs incurred by the utility in |
procuring a supply of electric power and energy for the | ||
applicable customer classes with no mark-up or return on the | ||
price paid by the utility for that supply, plus any just and | ||
reasonable costs that the utility incurs in arranging and | ||
providing for the supply of electric power and energy. The | ||
formula rate or charge shall also contain provisions that | ||
ensure that its application does not result in over or under | ||
recovery due to changes in customer usage and demand patterns, | ||
and that provide for the correction, on at least an annual | ||
basis, of any accounting errors that may occur. A utility | ||
shall recover through the tariff all reasonable costs incurred | ||
to implement or comply with any procurement plan that is | ||
developed and put into effect pursuant to Section 1-75 of the | ||
Illinois Power Agency Act and this Section, and for the | ||
procurement of renewable energy credits pursuant to subsection | ||
(c-5) of Section 1-75 of the Illinois Power Agency Act, | ||
including any fees assessed by the Illinois Power Agency, | ||
costs associated with load balancing, and contingency plan | ||
costs. The electric utility shall also recover its full costs | ||
of procuring electric supply for which it contracted before | ||
the effective date of this Section in conjunction with the | ||
provision of full requirements service under fixed-price | ||
bundled service tariffs subsequent to December 31, 2006. All | ||
such costs shall be deemed to have been prudently incurred. | ||
The pass-through tariffs that are filed and approved pursuant | ||
to this Section shall not be subject to review under, or in any |
way limited by, Section 16-111(i) of this Act. All of the costs | ||
incurred by the electric utility associated with the purchase | ||
of zero emission credits in accordance with subsection (d-5) | ||
of Section 1-75 of the Illinois Power Agency Act , all costs | ||
incurred by the electric utility associated with the purchase | ||
of carbon mitigation credits in accordance with subsection | ||
(d-10) of Section 1-75 of the Illinois Power Agency Act, and, | ||
beginning June 1, 2017, all of the costs incurred by the | ||
electric utility associated with the purchase of renewable | ||
energy resources in accordance with Sections 1-56 and 1-75 of | ||
the Illinois Power Agency Act, and all of the costs incurred by | ||
the electric utility in purchasing renewable energy credits in | ||
accordance with subsection (c-5) of Section 1-75 of the | ||
Illinois Power Agency Act, shall be recovered through the | ||
electric utility's tariffed charges applicable to all of its | ||
retail customers, as specified in subsection (k) or subsection | ||
(i-5), as applicable, of Section 16-108 of this Act, and shall | ||
not be recovered through the electric utility's tariffed | ||
charges for electric power and energy supply to its eligible | ||
retail customers. | ||
(m) The Commission has the authority to adopt rules to | ||
carry out the provisions of this Section. For the public | ||
interest, safety, and welfare, the Commission also has | ||
authority to adopt rules to carry out the provisions of this | ||
Section on an emergency basis immediately following August 28, | ||
2007 (the effective date of Public Act 95-481). |
(n) Notwithstanding any other provision of this Act, any | ||
affiliated electric utilities that submit a single procurement | ||
plan covering their combined needs may procure for those | ||
combined needs in conjunction with that plan, and may enter | ||
jointly into power supply contracts, purchases, and other | ||
procurement arrangements, and allocate capacity and energy and | ||
cost responsibility therefor among themselves in proportion to | ||
their requirements. | ||
(o) On or before June 1 of each year, the Commission shall | ||
hold an informal hearing for the purpose of receiving comments | ||
on the prior year's procurement process and any | ||
recommendations for change.
| ||
(p) An electric utility subject to this Section may | ||
propose to invest, lease, own, or operate an electric | ||
generation facility as part of its procurement plan, provided | ||
the utility demonstrates that such facility is the least-cost | ||
option to provide electric service to those retail customers | ||
included in the plan's electric supply service requirements. | ||
If the facility is shown to be the least-cost option and is | ||
included in a procurement plan prepared in accordance with | ||
Section 1-75 of the Illinois Power Agency Act and this | ||
Section, then the electric utility shall make a filing | ||
pursuant to Section 8-406 of this Act, and may request of the | ||
Commission any statutory relief required thereunder. If the | ||
Commission grants all of the necessary approvals for the | ||
proposed facility, such supply shall thereafter be considered |
as a pre-existing contract under subsection (b) of this | ||
Section. The Commission shall in any order approving a | ||
proposal under this subsection specify how the utility will | ||
recover the prudently incurred costs of investing in, leasing, | ||
owning, or operating such generation facility through just and | ||
reasonable rates charged to those retail customers included in | ||
the plan's electric supply service requirements. Cost recovery | ||
for facilities included in the utility's procurement plan | ||
pursuant to this subsection shall not be subject to review | ||
under or in any way limited by the provisions of Section | ||
16-111(i) of this Act. Nothing in this Section is intended to | ||
prohibit a utility from filing for a fuel adjustment clause as | ||
is otherwise permitted under Section 9-220 of this Act.
| ||
(q) If the Illinois Power Agency filed with the | ||
Commission, under Section 16-111.5 of this Act, its proposed | ||
procurement plan for the period commencing June 1, 2017, and | ||
the Commission has not yet entered its final order approving | ||
the plan on or before the effective date of this amendatory Act | ||
of the 99th General Assembly, then the Illinois Power Agency | ||
shall file a notice of withdrawal with the Commission, after | ||
the effective date of this amendatory Act of the 99th General | ||
Assembly, to withdraw the proposed procurement of renewable | ||
energy resources to be approved under the plan, other than the | ||
procurement of renewable energy credits from distributed | ||
renewable energy generation devices using funds previously | ||
collected from electric utilities' retail customers that take |
service pursuant to electric utilities' hourly pricing tariff | ||
or tariffs and, for an electric utility that serves less than | ||
100,000 retail customers in the State, other than the | ||
procurement of renewable energy credits from distributed | ||
renewable energy generation devices. Upon receipt of the | ||
notice, the Commission shall enter an order that approves the | ||
withdrawal of the proposed procurement of renewable energy | ||
resources from the plan. The initially proposed procurement of | ||
renewable energy resources shall not be approved or be the | ||
subject of any further hearing, investigation, proceeding, or | ||
order of any kind. | ||
This amendatory Act of the 99th General Assembly preempts | ||
and supersedes any order entered by the Commission that | ||
approved the Illinois Power Agency's procurement plan for the | ||
period commencing June 1, 2017, to the extent it is | ||
inconsistent with the provisions of this amendatory Act of the | ||
99th General Assembly. To the extent any previously entered | ||
order approved the procurement of renewable energy resources, | ||
the portion of that order approving the procurement shall be | ||
void, other than the procurement of renewable energy credits | ||
from distributed renewable energy generation devices using | ||
funds previously collected from electric utilities' retail | ||
customers that take service under electric utilities' hourly | ||
pricing tariff or tariffs and, for an electric utility that | ||
serves less than 100,000 retail customers in the State, other | ||
than the procurement of renewable energy credits for |
distributed renewable energy generation devices. | ||
(Source: P.A. 99-906, eff. 6-1-17 .) | ||
(220 ILCS 5/16-111.10 new) | ||
Sec. 16-111.10. Equitable Energy Upgrade Program. | ||
(a) The General Assembly finds and declares that Illinois | ||
homes and businesses can contribute to the creation of a clean | ||
energy economy, conservation of natural resources, and | ||
reliability of the electricity grid through the installation | ||
of cost-effective renewable energy generation, energy | ||
efficiency and demand response equipment, and energy storage | ||
systems. Further, a large portion of Illinois residents and | ||
businesses that would benefit from the installation of energy | ||
efficiency, storage, and renewable energy generation systems | ||
are unable to purchase systems due to capital or credit | ||
barriers. This State should pursue options to enable many more | ||
Illinoisans to access the health, environmental, and financial | ||
benefits of new clean energy technology. | ||
(b) As used in this Section: | ||
"Commission" means the Illinois Commerce Commission. | ||
"Energy project" means renewable energy generation | ||
systems, including solar projects, energy efficiency upgrades, | ||
energy storage systems, demand response equipment, or any | ||
combination thereof. | ||
"Fund" means the Clean Energy Jobs and Justice Fund | ||
established in the Clean Energy Jobs and Justice Fund
Act. |
"Program" means the Equitable Energy Upgrade Program | ||
established under subsection (c). | ||
"Utility" means electric public utilities providing | ||
services to 500,000 or more customers under this Act. | ||
(c) The Commission shall open an investigation into and | ||
direct all electric public utilities in this State to adopt an | ||
Equitable Energy Upgrade Program that permits customers to | ||
finance the construction of energy projects through an | ||
optional tariff payable directly through their utility bill, | ||
modeled after the Pay As You Save system, developed by the | ||
Energy Efficiency Institute. The Program model shall enable | ||
utilities to offer to make investments in energy projects to | ||
customer properties with low-cost capital and use an opt-in | ||
tariff to recover the costs. The Program shall be designed to | ||
provide customers with immediate financial savings if they | ||
choose to participate. The Program shall allow residential | ||
electric utility customers that own the property, or renters | ||
that have permission of the property owner, for which they | ||
subscribe to utility service to agree to the installation of | ||
an energy project. The Program shall ensure: | ||
(1) eligible projects do not require upfront payments; | ||
however, customers may pay down the costs for projects | ||
with a payment to the installing contractor in order to | ||
qualify projects that would otherwise require upfront | ||
payments; | ||
(2) eligible projects have sufficient estimated |
savings and estimated life span to produce significant, | ||
immediate net savings; | ||
(3) participants shall agree the utility can recover | ||
its costs for the projects at their location by paying for | ||
the project through an optional tariff directly through | ||
the participant's electricity bill, allowing participants | ||
to benefit from installation of energy projects without | ||
traditional loans; | ||
(4) accessibility by lower-income residents and | ||
environmental justice community residents; and | ||
(5) the utility must ensure that customers who are | ||
interested in participating are notified that if they are | ||
income qualified, they may also be eligible for the | ||
Percentage of Income Payment Plan program and free energy | ||
improvements through other programs and provide contact | ||
information. | ||
(d) The Commission shall establish Program guidelines with | ||
the anticipated schedule of Program availability as follows: | ||
(1) Year 1: Beginning in the first year of operation, | ||
each utility with greater than 100,000 retail customers is | ||
required to obtain low-cost capital of at least | ||
$20,000,000 annually for investments in energy projects. | ||
(2) Year 2: Beginning in the second year of operation, | ||
each utility with greater than 100,000 retail customers is | ||
required to obtain low-cost capital for investments in | ||
energy projects of at least $40,000,000 annually. |
(3) Year 3: Beginning in the third year of operation, | ||
each utility with greater than 100,000 retail customers is | ||
required to obtain low-cost capital for investments in as | ||
many systems as customers demand, subject to available | ||
capital provided by the utility, State, or other lenders. | ||
(e) In the design of the Program, the Commission shall: | ||
(1) Within 270 days after the effective date of this | ||
amendatory Act of the 102nd General Assembly, convene a
| ||
workshop during which interested participants may discuss | ||
issues and submit comments related to the Program. | ||
(2) Establish Program guidelines for implementation of | ||
the Program in accordance with the Pay As You Save | ||
Essential Elements and Minimum Program Requirements that | ||
electric utilities must abide by when implementing the | ||
Program. Program guidelines established by the Commission | ||
shall include the following elements: | ||
(A) The Commission shall establish conditions | ||
under which utilities secure capital to fund the | ||
energy projects. The Commission may allow utilities to | ||
raise capital independently, work with third-party | ||
lenders to secure the capital for participants, or a | ||
combination thereof. Any process the Commission | ||
approves must use a market mechanism to identify the | ||
least costly sources of capital funds so as to pass on | ||
maximum savings to participants. The State or the | ||
Clean Energy Jobs and Justice Fund may also provide |
capital for the Program. | ||
(B) Customer protection guidelines should be | ||
designed consistent with Pay As You Save Essential | ||
Elements and Minimum Program Requirements. | ||
(C) The Commission shall establish conditions by | ||
which utilities may connect Program participants to | ||
energy project vendors. In setting conditions for | ||
connection, the Commission may prioritize vendors that | ||
have a history of good relations with the State, | ||
including vendors that have hired participants from | ||
State-created job training programs. | ||
(D) Guarantee that conservative estimates of | ||
financial savings will immediately and significantly | ||
exceed Program costs for Program participants. | ||
(f) Within 120 days after the Commission releases the | ||
Program conditions established under this Section, each | ||
utility subject to the requirements of this Section shall | ||
submit an informational filing to the Commission that | ||
describes its plan for implementing the provisions of this | ||
Section. If the Commission finds that the submission does not | ||
properly comply with the statutory or regulatory requirements | ||
of the Program, the Commission may require that the utility | ||
make modifications to its filing. | ||
(g) An independent process evaluation shall be conducted | ||
after one year of the Program's operation. An independent | ||
impact evaluation shall be conducted after 3 years of |
operation, excluding one-time startup costs and results from | ||
the first 12 months of the Program. The Commission shall | ||
convene an advisory council of stakeholders, including | ||
representation of low-income and environmental justice | ||
community members to make recommendations in response to the | ||
findings of the independent evaluation. | ||
(h) The Program shall be designed using the Pay As You Save | ||
system guidelines to be cost-effective for customers. Only | ||
projects that are deemed to be cost-effective and can be | ||
reasonably expected to ensure customer savings are eligible | ||
for funding through the Program, unless, as specified in | ||
paragraph (1) of subsection (c), customers able to make | ||
upfront copayments to installers buy down the cost of projects | ||
so it can be deemed cost-effective. | ||
(i) Eligible customers must be: | ||
(1) property renters with permission of the property | ||
owner; or | ||
(2) property owners. | ||
(j) The calculation of project cost-effectiveness shall be | ||
based upon the Pay As You Save system requirements. | ||
(1) The calculation of cost-effectiveness must be | ||
conducted by an objective process approved by the | ||
Commission and based on rates in effect at the time of | ||
installation. | ||
(2) A project shall be considered cost-effective only | ||
if it is estimated to produce significant immediate net |
savings, not counting copayments voluntarily made by | ||
customers. The Commission may establish guidelines by | ||
which this required savings is estimated. | ||
(k) The Program should be modeled after the Pay As You Save | ||
system, by which Program participants finance energy projects | ||
using the savings that the energy project creates with a | ||
tariffed on-bill program. Eligible projects shall not create | ||
personal debt for the customer, result in a lien in the event | ||
of nonpayment, or require customers to pay monthly charges for | ||
any upgrade that fails and is not repaired within 21 days. The | ||
utility may restart charges once the upgrade is repaired and | ||
functioning and extend the term of payments to recover its | ||
costs for missed payments and deferred cost recovery, | ||
providing the upgrade continues to function. | ||
(l) Any energy project that is defective or damaged due to | ||
no fault of the participant must be either replaced or | ||
repaired with parts that meet industry standards at the cost | ||
of the utility or vendor, as specified by the Commission, and | ||
charges shall be suspended until repairs or replacement is | ||
completed. The Commission may establish, increase, or replace | ||
the requirements imposed in this subsection. The Commission | ||
may determine that this responsibility is best handled by | ||
participating project vendors in the form of insurance, | ||
contractual guarantees, or other mechanisms, and issue rules | ||
detailing this requirement. Customers shall not be charged | ||
monthly payments for upgrades that are no longer functioning. |
(m) In the event of nonpayment, the remaining balance due | ||
to pay off the system shall remain with the utility meter at an | ||
upgraded location. The Commission shall establish conditions | ||
subject to this constraint in the event of nonpayment that are | ||
in accordance with the Pay As You Save system. | ||
(n) If the demand by utility customers exceeds the Program | ||
capital supply in a given year, utilities shall ensure that | ||
50% of participants are: | ||
(1) customers in neighborhoods where a majority of | ||
households make 150% or less of area median income; or | ||
(2) residents of environmental justice communities. | ||
(o) Utilities shall endeavor to inform customers about the | ||
availability of the Program, their potential eligibility for | ||
participation in the Program, and whether they are likely to | ||
save money on the basis of an estimate conducted using | ||
variables consistent with the Program that the utility has at | ||
its disposal. The Commission may establish guidelines by which | ||
utilities must abide by this directive and alternatives if the | ||
Commission deems utilities' efforts as inadequate. | ||
(p) Subject to Commission specifications under subsection | ||
(c), each utility shall work with certified project vendors | ||
selected using a request for proposals process to establish | ||
the terms and processes under which a utility can install | ||
eligible renewable energy generation and energy storage | ||
systems using the capital to fit the Equitable Energy Upgrade | ||
model. The certified project vendor shall explain and offer |
the approved upgrades to customers and shall assist customers | ||
in applying for financing through the Program. As part of the | ||
process, vendors shall also provide participants with | ||
information about any other relevant incentives that may be | ||
available. | ||
(q) An electric utility shall recover all of the prudently | ||
incurred costs of offering a program approved by the | ||
Commission under this Section. For investor-owned utilities, | ||
shareholder incentives will be proportional to meeting | ||
Commission approved thresholds for the number of customers | ||
served and the amount of its investments in those locations. | ||
(r) The Commission shall adopt all rules necessary for the | ||
administration of this Section.
| ||
(220 ILCS 5/16-127)
| ||
Sec. 16-127. Environmental disclosure.
| ||
(a) Every Effective January 1, 2013, every electric | ||
utility and
alternative retail electric supplier shall provide | ||
the
following information, to the maximum extent practicable, | ||
to its customers on a quarterly basis:
| ||
(i) the known sources of electricity supplied,
| ||
broken-out by percentages, of biomass power, coal-fired
| ||
power, hydro power, natural gas-fired power, nuclear
| ||
power, oil-fired power, solar power, wind power and other
| ||
resources, respectively;
| ||
(ii) a pie chart that graphically depicts the
|
percentages of the sources of the electricity supplied as
| ||
set forth in subparagraph (i) of this subsection;
| ||
(iii) a pie chart that graphically depicts the | ||
quantity of renewable energy resources procured pursuant | ||
to Section 1-75 of the Illinois Power Agency Act as a | ||
percentage of electricity supplied to serve eligible | ||
retail customers as defined in Section 16-111.5(a) of this | ||
Act; and | ||
(iv) after May, 31, 2017, a pie chart that graphically | ||
depicts the quantity of zero emission credits from zero | ||
emission facilities procured under Section 1-75 of the | ||
Illinois Power Agency Act as a percentage of the actual | ||
load of retail customers within its service area and, for | ||
an electric utility serving over 3,000,000 customers, the | ||
quantity of carbon mitigation credits from carbon-free | ||
energy resources procured under Section 1-75 of the | ||
Illinois Power Agency Act, which may be depicted in | ||
combination with the zero emission credits procured .
| ||
(b) In addition, every electric utility and alternative
| ||
retail electric supplier shall provide, to the maximum extent
| ||
practicable, to its customers on a quarterly
basis, a | ||
standardized chart in a format to be determined by
the | ||
Commission in a rule following notice and hearings which
| ||
provides the amounts of carbon dioxide,
nitrogen oxides
and | ||
sulfur dioxide emissions and nuclear waste
attributable to the | ||
known sources of electricity supplied as
set forth in |
subparagraph (i) of subsection (a) of this
Section.
| ||
(c) The electric utilities and alternative retail
electric | ||
suppliers may provide their customers with such other
| ||
information as they believe relevant to the information
| ||
required in subsections (a) and (b) of this Section. All of the | ||
information required in subsections (a) and (b) of this | ||
Section shall be made available by the electric utilities or | ||
alternative retail electric suppliers either in an electronic | ||
medium, such as on a website or by electronic mail, or through | ||
the U.S. Postal Service.
| ||
(d) For the purposes of subsection (a) of this Section,
| ||
"biomass" means dedicated crops grown for energy production
| ||
and organic wastes.
| ||
(e) All of the information provided in subsections (a)
and | ||
(b) of this Section shall be presented to the Commission
for | ||
inclusion in its World Wide Web Site.
| ||
(Source: P.A. 99-906, eff. 6-1-17 .)
| ||
(220 ILCS 5/16-135 new) | ||
Sec. 16-135. Energy Storage Program. | ||
(a) The Illinois General Assembly hereby finds and | ||
declares that: | ||
(1) Energy storage systems provide opportunities to: | ||
(A) reduce costs to ratepayers directly or | ||
indirectly by avoiding or deferring the need for | ||
investment in new generation and for upgrades to |
systems for the transmission and distribution of | ||
electricity; | ||
(B) reduce the use of fossil fuels for meeting | ||
demand during peak load periods; | ||
(C) provide ancillary services such as frequency | ||
response, load following, and voltage support; | ||
(D) assist electric utilities with integrating | ||
sources of renewable energy into the grid for the | ||
transmission and distribution of electricity, and with | ||
maintaining grid stability; | ||
(E) support diversification of energy resources; | ||
(F) enhance the resilience and reliability of the | ||
electric grid; and | ||
(G) reduce greenhouse gas emissions and other air | ||
pollutants resulting from power generation, thereby | ||
minimizing public health impacts that result from | ||
power generation. | ||
(2) There are significant barriers to obtaining the | ||
benefits of energy storage systems, including inadequate | ||
valuation of the services that energy storage can provide | ||
to the grid and the public. | ||
(3) It is in the public interest to: | ||
(A) develop a robust competitive market for | ||
existing and new providers of energy storage systems | ||
in order to leverage Illinois' position as a leader in | ||
advanced energy and to capture the potential for |
economic development; | ||
(B) implement targets and programs to achieve | ||
deployment of energy storage systems; and | ||
(C) modernize distributed energy resource programs | ||
and interconnection standards to lower costs and | ||
efficiently deploy energy storage systems in order to | ||
increase economic development and job creation within | ||
the state's clean energy economy. | ||
(b) In this Section: | ||
"Energy storage peak standard" means a percentage of | ||
annual retail electricity sales during peak hours that an | ||
electric utility must derive from electricity discharged from | ||
eligible energy storage systems. | ||
"Deployment" means the installation of energy storage | ||
systems through a variety of mechanisms, including utility | ||
procurement, customer installation, or other processes. | ||
"Electric utility" has the same meaning as provided in | ||
Section 16-102 of this Act. | ||
"Energy storage system" means a technology that is capable | ||
of absorbing zero-carbon energy, storing it for a period of | ||
time, and redelivering that energy after it has been stored in | ||
order to provide direct or indirect benefits to the broader | ||
electricity system. The term includes, but is not limited to, | ||
electrochemical, thermal, and electromechanical technologies. | ||
"Nonwires alternatives solicitation" means a utility | ||
solicitation for third-party-owned or utility-owned |
distributed energy resources that uses nontraditional | ||
solutions to defer or replace planned investment on the | ||
distribution or transmission system. | ||
"Total peak demand" means the highest hourly electricity | ||
demand for an electric utility in a given year, measured in | ||
megawatts, from all of the electric utility's customers of | ||
distribution service. | ||
(c) The Commission, in consultation with the Illinois | ||
Power Agency, shall initiate a proceeding to examine specific | ||
programs, mechanisms, and policies that could support the | ||
deployment of energy storage systems. The Illinois Commerce | ||
Commission shall engage a broad group of Illinois | ||
stakeholders, including electric utilities, the energy storage | ||
industry, the renewable energy industry, and others to inform | ||
the proceeding. The proceeding must, at minimum: | ||
(1) develop a framework to identify and measure the | ||
potential costs, benefits, that deployment of energy | ||
storage could produce, as well as barriers to realizing | ||
such benefits, including, but not limited to: | ||
(A) avoided cost and deferred investments in | ||
generation, transmission, and distribution facilities; | ||
(B) reduced ancillary services costs; | ||
(C) reduced transmission and distribution | ||
congestion; | ||
(D) lower peak power costs and reduced capacity | ||
costs; |
(E) reduced costs for emergency power supplies | ||
during outages; | ||
(F) reduced curtailment of renewable energy | ||
generators; | ||
(G) reduced greenhouse gas emissions and other | ||
criteria air pollutants; | ||
(H) increased grid hosting capacity of renewable | ||
energy generators that produce energy on an | ||
intermittent basis; | ||
(I) increased reliability and resilience of the | ||
electric grid; | ||
(J) reduced line losses; | ||
(K) increased resource diversification; | ||
(L) increased economic development; | ||
(2) analyze and estimate: | ||
(A) the impact on the system's ability to | ||
integrate renewable resources; | ||
(B) the benefits of addition of storage at | ||
specific locations, such as at existing peaking units | ||
or locations on the grid close to large load centers; | ||
(C) the impact on grid reliability and power | ||
quality; and | ||
(D) the effect on retail electric rates and supply | ||
rates over the useful life of a given energy storage | ||
system; and | ||
(3) Evaluate and identify cost-effective policies and |
programs to support the deployment of energy storage | ||
systems, including, but not limited to: | ||
(A) incentive programs; | ||
(B) energy storage peak standards; | ||
(C) nonwires alternative solicitation; | ||
(D) peak demand reduction programs for | ||
behind-the-meter storage for all customer classes; | ||
(E) value of distributed energy resources | ||
programs; | ||
(F) tax incentives; | ||
(G) time-varying rates; | ||
(H) updating of interconnection processes and | ||
metering standards; and | ||
(I) procurement by the Illinois Power Agency of | ||
energy storage resources. | ||
(d) The Commission shall, no later than May 31, 2022, | ||
submit to the General Assembly and the Governor any | ||
recommendations for additional legislative, regulatory, or | ||
executive actions based on the findings of the proceeding. | ||
(e) At the conclusion of the proceeding required under | ||
subsection (c), the Commission shall consider and recommend to | ||
the Governor and General Assembly energy storage deployment | ||
targets, if any, for each electric utility that serves more | ||
than 200,000 customers to be achieved by December 31, 2032, | ||
including recommended interim targets. | ||
(f) In setting recommendations for energy storage |
deployment targets, the Commission shall: | ||
(1) take into account the costs and benefits of | ||
procuring energy storage according to the framework | ||
developed in the proceeding under subsection (c); | ||
(2) consider establishing specific subcategories of | ||
deployment of systems by point of interconnection or | ||
application. | ||
(220 ILCS 5/17-900 new) | ||
Sec. 17-900. Customer self-generation of electricity. | ||
(a) The General Assembly finds and declares that municipal | ||
systems and electric cooperatives shall continue to be | ||
governed by their respective governing bodies, but that such | ||
governing bodies should recognize and implement policies to | ||
provide the opportunity for their residential and small | ||
commercial customers who wish to self-generate electricity and | ||
for reasonable credits to customers for excess electricity, | ||
balanced against the rights of the other non-self-generating | ||
customers. This includes creating consistent, fair policies | ||
that are accessible to all customers and transparent, fair | ||
processes for raising and addressing any concerns. | ||
(b) Customers have the right to install renewable | ||
generating facilities to be located on the customer's
premises | ||
or customer's side of the billing meter and that are intended | ||
primarily to offset the customer's own electrical requirements | ||
and produce, consume, and store their own renewable energy |
without discriminatory repercussions from an electric | ||
cooperative or municipal system. This includes a customer's | ||
rights to: | ||
(1) generate, consume, and deliver excess renewable | ||
energy to the distribution grid and reduce his or her use | ||
of electricity obtained from the grid; | ||
(2) use technology to store energy at his or her | ||
residence; | ||
(3) interconnect his or her electrical system that | ||
generates renewable energy, stores energy, or any | ||
combination thereof, with the electricity meter on the | ||
customer's premises that is provided by an electric | ||
cooperative or municipal system: | ||
(A) in a timely manner; | ||
(B) in accordance with requirements established by | ||
the electric cooperative or municipal utility to | ||
ensure the safety of utility workers; and | ||
(C) after providing written notice to the electric | ||
cooperative or municipal utility system providing | ||
service in the service territory, installing a | ||
nomenclature plate on the electrical meter panel and | ||
meeting all applicable State and local safety and | ||
electrical code requirements associated with | ||
installing a parallel distributed generation system; | ||
and | ||
(4) receive fair credit for excess energy delivered to |
the distribution grid. | ||
(c) The policies of municipal systems and electric | ||
cooperatives regarding self-generation and credits for excess | ||
electricity may reasonably differ from those required of other | ||
entities by Article XVI of the Public Utilities Act or other | ||
Acts. The credits must recognize the value of self-generation | ||
to the distribution grid and benefits to other customers. | ||
(d) Within 180 days after this amendatory Act of the 102nd | ||
General Assembly, each electric cooperative and municipal | ||
system shall update its policies for the interconnection and | ||
fair
crediting of customer self-generation and storage if | ||
necessary, to comply with the standards of subsection (b) of | ||
this Section. Each electric cooperative and municipal system | ||
shall post its updated policies to a public-facing area of its | ||
website. | ||
(e) An electric cooperative or municipal system customer | ||
who produces, consumes, and stores his or her own renewable | ||
energy shall not face discriminatory rate design, fees or | ||
charges, treatment, or excessive compliance requirements that | ||
would unreasonably affect that customer's right to | ||
self-generate electricity as provided for in this Section. | ||
(f) An electric cooperative or municipal utility system | ||
customer shall have a right to appeal any decision related to | ||
self-generation and storage that violates these rights to | ||
self-generation and non-discrimination pursuant to the | ||
provisions of this Section through a complaint under the |
Administrative Review Law or similar legal process.
| ||
Section 90-55. The Environmental Protection Act is amended | ||
by adding Sections 3.131 and 9.18 and by changing Sections | ||
9.15 and 22.59 as follows: | ||
(415 ILCS 5/3.131 new) | ||
Sec. 3.131. Clean energy. "Clean energy" means energy | ||
generation that is substantially free (90% or greater) of | ||
carbon dioxide emissions. | ||
(415 ILCS 5/9.15) | ||
Sec. 9.15. Greenhouse gases. | ||
(a) An air pollution construction permit shall not be | ||
required due to emissions of greenhouse gases if the | ||
equipment, site, or source is not subject to regulation, as | ||
defined by 40 CFR 52.21, as now or hereafter amended, for | ||
greenhouse gases or is otherwise not addressed in this Section | ||
or by the Board in regulations for greenhouse gases. These | ||
exemptions do . This exemption does not relieve an owner or | ||
operator from the obligation to comply with other applicable | ||
rules or regulations. | ||
(b) An air pollution operating permit shall not be | ||
required due to emissions of greenhouse gases if the | ||
equipment, site, or source is not subject to regulation, as | ||
defined by Section 39.5 of this Act, for greenhouse gases or is |
otherwise not addressed in this Section or by the Board in | ||
regulations for greenhouse gases. These exemptions do . This | ||
exemption does not relieve an owner or operator from the | ||
obligation to comply with other applicable rules or | ||
regulations. | ||
(c) (Blank). Notwithstanding any provision to the contrary | ||
in this Section, an air pollution construction or operating | ||
permit shall not be required due to emissions of greenhouse | ||
gases if any of the following events occur: | ||
(1) enactment of federal legislation depriving the | ||
Administrator of the USEPA of authority to regulate | ||
greenhouse gases under the Clean Air Act; | ||
(2) the issuance of any opinion, ruling, judgment, | ||
order, or decree by a federal court depriving the | ||
Administrator of the USEPA of authority to regulate | ||
greenhouse gases under the Clean Air Act; or | ||
(3) action by the President of the United States or | ||
the President's authorized agent, including the | ||
Administrator of the USEPA, to repeal or withdraw the | ||
Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3, | ||
2010). | ||
This subsection (c) does not relieve an owner or operator | ||
from the obligation to comply with applicable rules or | ||
regulations other than those relating to greenhouse gases. | ||
(d) (Blank). If any event listed in subsection (c) of this | ||
Section occurs, permits issued after such event shall not |
impose permit terms or conditions addressing greenhouse gases | ||
during the effectiveness of any event listed in subsection | ||
(c). | ||
(e) (Blank). If an event listed in subsection (c) of this | ||
Section occurs, any owner or operator with a permit that | ||
includes terms or conditions addressing greenhouse gases may | ||
elect to submit an application to the Agency to address a | ||
revision or repeal of such terms or conditions. The Agency | ||
shall expeditiously process such permit application in | ||
accordance with applicable laws and regulations.
| ||
(f) As used in this Section: | ||
"Carbon dioxide emission" means the plant annual CO 2 total | ||
output emission as measured by the United States Environmental | ||
Protection Agency in its Emissions & Generation Resource | ||
Integrated Database (eGrid), or its successor. | ||
"Carbon dioxide equivalent emissions" or "CO 2 e" means the | ||
sum total of the mass amount of emissions in tons per year, | ||
calculated by multiplying the mass amount of each of the 6 | ||
greenhouse gases specified in Section 3.207, in tons per year, | ||
by its associated global warming potential as set forth in 40 | ||
CFR 98, subpart A, table A-1 or its successor, and then adding | ||
them all together. | ||
"Cogeneration" or "combined heat and power" refers to any | ||
system that, either simultaneously or sequentially, produces | ||
electricity and useful thermal energy from a single fuel | ||
source. |
"Copollutants" refers to the 6 criteria pollutants that | ||
have been identified by the United States Environmental | ||
Protection Agency pursuant to the Clean Air Act. | ||
"Electric generating unit" or "EGU" means a fossil | ||
fuel-fired stationary boiler, combustion turbine, or combined | ||
cycle system that serves a generator that has a nameplate | ||
capacity greater than 25 MWe and produces electricity for | ||
sale. | ||
"Environmental justice community" means the definition of | ||
that term based on existing methodologies and findings, used | ||
and as may be updated by the Illinois Power Agency and its | ||
program administrator in the Illinois Solar for All Program. | ||
"Equity investment eligible community" or "eligible | ||
community" means the geographic areas throughout Illinois that | ||
would most benefit from equitable investments by the State | ||
designed to combat discrimination and foster sustainable | ||
economic growth. Specifically, eligible community means the | ||
following areas: | ||
(1) areas where residents have been historically | ||
excluded from economic opportunities, including | ||
opportunities in the energy sector, as defined as R3 areas | ||
pursuant to
Section 10-40 of the Cannabis Regulation and | ||
Tax Act; and | ||
(2) areas where residents have been historically | ||
subject to disproportionate burdens of pollution, | ||
including pollution from the energy sector, as established |
by environmental justice communities as defined by the | ||
Illinois Power Agency pursuant to the Illinois Power | ||
Agency Act, excluding any racial or ethnic indicators. | ||
"Equity investment eligible person" or "eligible person" | ||
means the persons who would most benefit from equitable | ||
investments by the State designed to combat discrimination and | ||
foster sustainable economic growth. Specifically, eligible | ||
person means the following people: | ||
(1) persons whose primary residence is in an equity | ||
investment eligible community; | ||
(2) persons whose primary residence is in a | ||
municipality, or a county with a population under 100,000, | ||
where the closure of an electric generating unit or mine | ||
has been publicly announced or the electric generating | ||
unit or mine is in the process of closing or closed within | ||
the last 5 years; | ||
(3) persons who are graduates of or currently enrolled | ||
in the foster care system; or | ||
(4) persons who were formerly incarcerated. | ||
"Existing emissions" means: | ||
(1) for CO 2 e, the total average tons-per-year of CO 2 e | ||
emitted by the EGU or large GHG-emitting unit either in | ||
the years 2018 through 2020 or, if the unit was not yet in | ||
operation by January 1, 2018, in the first 3 full years of | ||
that unit's operation; and | ||
(2) for any copollutant, the total average |
tons-per-year of that copollutant emitted by the EGU or | ||
large GHG-emitting unit either in the years 2018 through | ||
2020 or, if the unit was not yet in operation by January 1, | ||
2018, in the first 3 full years of that unit's operation. | ||
"Green hydrogen" means a power plant technology in which | ||
an EGU creates electric power exclusively from electrolytic | ||
hydrogen, in a manner that produces zero carbon and | ||
copollutant emissions, using hydrogen fuel that is | ||
electrolyzed using a 100% renewable zero carbon emission | ||
energy source. | ||
"Large greenhouse gas-emitting unit" or "large | ||
GHG-emitting unit" means a unit that is an electric generating | ||
unit or other fossil fuel-fired unit that itself has a | ||
nameplate capacity or
serves a generator that has a nameplate | ||
capacity greater than 25 MWe and that produces electricity, | ||
including, but not limited to, coal-fired, coal-derived, | ||
oil-fired, natural gas-fired, and cogeneration units. | ||
"NO x emission rate" means the plant annual NO x total output | ||
emission rate as measured by the United States Environmental | ||
Protection Agency in its Emissions & Generation Resource | ||
Integrated Database (eGrid), or its successor, in the most | ||
recent year for which data is available. | ||
"Public greenhouse gas-emitting units" or "public | ||
GHG-emitting unit" means large greenhouse gas-emitting units, | ||
including EGUs, that are wholly owned, directly or indirectly, | ||
by one or more municipalities, municipal corporations, joint |
municipal electric power agencies, electric cooperatives, or | ||
other governmental or nonprofit entities, whether organized | ||
and created under the laws of Illinois or another state. | ||
"SO 2 emission rate" means the "plant annual SO 2 total | ||
output emission rate" as measured by the United States | ||
Environmental Protection Agency in its Emissions & Generation | ||
Resource Integrated Database (eGrid), or its successor, in the | ||
most recent year for which data is available. | ||
(g) All EGUs and large greenhouse gas-emitting units that | ||
use coal or oil as a fuel and are not public GHG-emitting units | ||
shall permanently reduce all CO 2 e and copollutant emissions to | ||
zero no later than January 1, 2030. | ||
(h) All EGUs and large greenhouse gas-emitting units that
| ||
use coal as a fuel and are public GHG-emitting units shall
| ||
permanently reduce CO 2 e emissions to
zero no later than | ||
December 31, 2045. Any source or plant with such units must | ||
also reduce their CO 2 e emissions by 45% from existing | ||
emissions by no later than January 1, 2035. If the emissions | ||
reduction requirement is not achieved by December 31, 2035, | ||
the plant shall retire one or more units or otherwise reduce | ||
its CO 2 e emissions by 45% from existing emissions by June 30, | ||
2038. | ||
(i) All EGUs and large greenhouse gas-emitting units that | ||
use gas as a fuel and are not public GHG-emitting units shall | ||
permanently reduce all CO 2 e and copollutant emissions to zero, | ||
including through unit retirement or the use of 100% green |
hydrogen or other similar technology that is commercially | ||
proven to achieve zero carbon emissions, according to the | ||
following: | ||
(1) No later than January 1, 2030: all EGUs and large | ||
greenhouse gas-emitting units that have a NO x emissions | ||
rate of greater than 0.12 lbs/MWh or a SO 2 emission rate of | ||
greater than 0.006 lb/MWh, and are located in or within 3 | ||
miles of an environmental justice community designated as | ||
of January 1, 2021 or an equity investment eligible | ||
community. | ||
(2) No later than January 1, 2040: all EGUs and large | ||
greenhouse gas-emitting units that have a NO x emission | ||
rate of greater than 0.12 lbs/MWh or a SO 2 emission rate | ||
greater than 0.006 lb/MWh, and are not located in or | ||
within 3 miles of an environmental justice community | ||
designated as of January 1, 2021 or an equity investment | ||
eligible community. After January 1, 2035, each such EGU | ||
and large greenhouse gas-emitting unit shall reduce its | ||
CO 2 e emissions by at least 50% from its existing emissions | ||
for CO 2 e, and shall be limited in operation to, on average, | ||
6 hours or less per day, measured over a calendar year, and | ||
shall not run for more than 24 consecutive hours except in | ||
emergency conditions, as designated by a Regional | ||
Transmission Organization or Independent System Operator. | ||
(3) No later than January 1, 2035: all EGUs and large | ||
greenhouse gas-emitting units that began operation prior |
to the effective date of this amendatory Act of the 102nd | ||
General Assembly and have a NO x emission rate of less than | ||
or equal to 0.12 lb/MWh and a SO 2 emission rate less than | ||
or equal to 0.006 lb/MWh, and are located in or within 3 | ||
miles of an environmental justice community designated as | ||
of January 1, 2021 or an equity investment eligible | ||
community. Each such EGU and large greenhouse gas-emitting | ||
unit shall reduce its CO 2 e emissions by at least 50% from | ||
its existing emissions for CO 2 e no later than January 1, | ||
2030. | ||
(4) No later than January 1, 2040: All remaining EGUs | ||
and large greenhouse gas-emitting units that have a heat | ||
rate greater than or equal to 7000 BTU/kWh. Each such EGU | ||
and Large greenhouse gas-emitting unit shall reduce its | ||
CO 2 e emissions by at least 50% from its existing emissions | ||
for CO 2 e no later than January 1, 2035. | ||
(5) No later than January 1, 2045: all remaining EGUs | ||
and large greenhouse gas-emitting units. | ||
(j) All EGUs and large greenhouse gas-emitting units that | ||
use gas as a fuel and are public GHG-emitting units shall | ||
permanently reduce all CO 2 e and copollutant emissions to zero, | ||
including through unit retirement or the use of 100% green | ||
hydrogen or other similar technology that is commercially | ||
proven to achieve zero carbon emissions by January 1, 2045. | ||
(k) All EGUs and large greenhouse gas-emitting units that | ||
utilize combined heat and power or cogeneration technology |
shall permanently reduce all CO 2 e and copollutant emissions to | ||
zero, including through unit retirement or the use of 100% | ||
green hydrogen or other similar technology that is | ||
commercially proven to achieve zero carbon emissions by | ||
January 1, 2045. | ||
(k-5) No EGU or large greenhouse gas-emitting unit that | ||
uses gas as a fuel and is not a public GHG-emitting unit may | ||
emit, in any 12-month period, CO 2 e or copollutants in excess of | ||
that unit's existing emissions for those pollutants. | ||
(l) Notwithstanding subsections (g) through (k-5), large | ||
GHG-emitting units including EGUs may temporarily continue | ||
emitting greenhouse gases after any applicable deadline | ||
specified in any of subsections (g) through (k-5) if it has | ||
been determined, as described in paragraphs (1) and (2) of | ||
this subsection, that ongoing operation of the EGU is | ||
necessary to maintain power grid supply and reliability or | ||
ongoing operation of large GHG-emitting unit that is not an | ||
EGU is necessary to serve as an emergency backup to | ||
operations. Up to and including the occurrence of an emission | ||
reduction deadline under subsection (i), all EGUs and large | ||
GHG-emitting units must comply with the following terms: | ||
(1) if an EGU or large GHG-emitting unit that is a | ||
participant in a regional transmission organization | ||
intends to retire, it must submit documentation to the | ||
appropriate regional transmission organization by the | ||
appropriate deadline that meets all applicable regulatory |
requirements necessary to obtain approval to permanently | ||
cease operating the large GHG-emitting unit; | ||
(2) if any EGU or large GHG-emitting unit that is a | ||
participant in a regional transmission organization | ||
receives notice that the regional transmission | ||
organization has determined that continued operation of | ||
the unit is required, the unit may continue operating | ||
until the issue identified by the regional transmission | ||
organization is resolved. The owner or operator of the | ||
unit must cooperate with the regional transmission | ||
organization in resolving the issue and must reduce its | ||
emissions to zero, consistent with the requirements under | ||
subsection (g), (h), (i), (j), (k), or (k-5), as | ||
applicable, as soon as practicable when the issue | ||
identified by the regional transmission organization is | ||
resolved; and | ||
(3) any large GHG-emitting unit that is not a | ||
participant in a regional transmission organization shall | ||
be allowed to continue emitting greenhouse gases after the | ||
zero-emission date specified in subsection (g), (h), (i), | ||
(j), (k), or (k-5), as applicable, in the capacity of an | ||
emergency backup unit if approved by the Illinois Commerce | ||
Commission. | ||
(m) No variance, adjusted standard, or other regulatory | ||
relief otherwise available in this Act may be granted to the | ||
emissions reduction and elimination obligations in this |
Section. | ||
(n) By June 30 of each year, beginning in 2025, the Agency | ||
shall prepare and publish on its website a report setting | ||
forth the actual greenhouse gas emissions from individual | ||
units and the aggregate statewide emissions from all units for | ||
the prior year. | ||
(o) Every 5 years beginning in 2025, the Environmental | ||
Protection Agency, Illinois Power Agency, and Illinois | ||
Commerce Commission shall jointly prepare, and release | ||
publicly, a report to the General Assembly that examines the | ||
State's current progress toward its renewable energy resource | ||
development goals, the status of CO 2 e and copollutant | ||
emissions reductions, the current status and progress toward | ||
developing and implementing green hydrogen technologies, the | ||
current and projected status of electric resource adequacy and | ||
reliability throughout the State for the period beginning 5 | ||
years ahead, and proposed solutions for any findings. The | ||
Environmental Protection Agency, Illinois Power Agency, and | ||
Illinois Commerce Commission shall consult PJM | ||
Interconnection, LLC and Midcontinent Independent System | ||
Operator, Inc., or their respective successor organizations | ||
regarding forecasted resource adequacy and reliability needs, | ||
anticipated new generation interconnection, new transmission | ||
development or upgrades, and any announced large GHG-emitting | ||
unit closure dates and include this information in the report. | ||
The report shall be released publicly by no later than |
December 15 of the year it is prepared. If the Environmental | ||
Protection Agency, Illinois Power Agency, and Illinois | ||
Commerce Commission jointly conclude in the report that the | ||
data from the regional grid operators, the pace of renewable | ||
energy development, the pace of development of energy storage | ||
and demand response utilization, transmission capacity, and | ||
the CO 2 e and copollutant emissions reductions required by | ||
subsection (i) or (k-5) reasonably demonstrate that a resource | ||
adequacy shortfall will occur, including whether there will be | ||
sufficient in-state capacity to meet the zonal requirements of | ||
MISO Zone 4 or the PJM ComEd Zone, per the requirements of the | ||
regional transmission organizations, or that the regional | ||
transmission operators determine that a reliability violation | ||
will occur during the time frame the study is evaluating, then | ||
the Illinois Power Agency, in conjunction with the | ||
Environmental Protection Agency shall develop a plan to reduce | ||
or delay CO 2 e and copollutant emissions reductions | ||
requirements only to the extent and for the duration necessary | ||
to meet the resource adequacy and reliability needs of the | ||
State, including allowing any plants whose emission reduction | ||
deadline has been identified in the plan as creating a | ||
reliability concern to continue operating, including operating | ||
with reduced emissions or as emergency backup where | ||
appropriate. The plan shall also consider the use of renewable | ||
energy, energy storage, demand response, transmission | ||
development, or other strategies to resolve the identified |
resource adequacy shortfall or reliability violation. | ||
(1) In developing the plan, the Environmental | ||
Protection Agency and the Illinois Power Agency shall hold | ||
at least one workshop open to, and accessible at a time and | ||
place convenient to, the public and shall consider any | ||
comments made by stakeholders or the public. Upon | ||
development of the plan, copies of the plan shall be | ||
posted and made publicly available on the Environmental | ||
Protection Agency's, the Illinois Power Agency's, and the | ||
Illinois Commerce Commission's websites. All interested | ||
parties shall have 60 days following the date of posting | ||
to provide comment to the Environmental Protection Agency | ||
and the Illinois Power Agency on the plan. All comments | ||
submitted to the Environmental Protection Agency and the | ||
Illinois Power Agency shall be encouraged to be specific, | ||
supported by data or other detailed analyses, and, if | ||
objecting to all or a portion of the plan, accompanied by | ||
specific alternative wording or proposals. All comments | ||
shall be posted on the Environmental Protection Agency's, | ||
the Illinois Power Agency's, and the Illinois Commerce | ||
Commission's websites. Within 30 days following the end of | ||
the 60-day review period, the Environmental Protection | ||
Agency and the Illinois Power Agency shall revise the plan | ||
as necessary based on the comments received and file its | ||
revised plan with the Illinois Commerce Commission for | ||
approval. |
(2) Within 60 days after the filing of the revised | ||
plan at the Illinois Commerce Commission, any person | ||
objecting to the plan shall file an objection with the | ||
Illinois Commerce Commission. Within 30 days after the | ||
expiration of the comment period, the Illinois Commerce | ||
Commission shall determine whether an evidentiary hearing | ||
is necessary. The Illinois Commerce Commission shall also | ||
host 3 public hearings within 90 days after the plan is | ||
filed. Following the evidentiary and public hearings, the | ||
Illinois Commerce Commission shall enter its order | ||
approving or approving with modifications the reliability | ||
mitigation plan within 180 days. | ||
(3) The Illinois Commerce Commission shall only | ||
approve the plan if the Illinois Commerce Commission | ||
determines that it will resolve the resource adequacy or | ||
reliability deficiency identified in the reliability | ||
mitigation plan at the least amount of CO 2 e and copollutant | ||
emissions, taking into consideration the emissions impacts | ||
on environmental justice communities, and that it will | ||
ensure adequate, reliable, affordable, efficient, and | ||
environmentally sustainable electric service at the lowest | ||
total cost over time, taking into account the impact of | ||
increases in emissions. | ||
(4) If the resource adequacy or reliability deficiency | ||
identified in the reliability mitigation plan is resolved | ||
or reduced, the Environmental Protection Agency and the |
Illinois Power Agency may file an amended plan adjusting | ||
the reduction or delay in CO 2 e and copollutant emission | ||
reduction requirements identified in the plan. | ||
(Source: P.A. 97-95, eff. 7-12-11.) | ||
(415 ILCS 5/9.18 new) | ||
Sec. 9.18. Commission on market-based carbon pricing | ||
solutions. | ||
(a) In the United States, state-based market policies to | ||
reduce greenhouse gases have been in operation since 2009. | ||
More than a quarter of the US population lives in a state with | ||
carbon pricing and these states represent one-third of the | ||
United States' gross domestic product. Market-based policies | ||
have proved effective at reducing emissions in states across | ||
the United States, and around the world. Additionally, | ||
well-designed carbon pricing incentivizes energy efficiency | ||
and drives investments in low-carbon solutions and | ||
technologies, such as renewables, hydrogen, biofuels, and | ||
carbon capture, use, and storage. Illinois must assess | ||
available suites of programs and policies to support a rapid, | ||
economy-wide decarbonization and spur the development of a | ||
clean energy economy in the State, while maintaining Illinois' | ||
competitive advantage. | ||
(b) The Governor is hereby authorized to create a carbon | ||
pricing commission to study the short-term and long-term | ||
impacts of joining, implementing, or designing a sector-based, |
statewide, or regional carbon pricing program. The commission | ||
shall analyze and compare the relative cost of, and greenhouse | ||
gas reductions from, various carbon pricing programs available | ||
to Illinois and the Midwest, including, but not limited to: | ||
the Regional Greenhouse Gas Initiative (RGGI), the | ||
Transportation and Climate Initiative (TCI), California's | ||
cap-and-trade program, California's low carbon fuel standard, | ||
Washington State's cap-and-invest program, the Oregon Clean | ||
Fuels Program, and other relevant market-based programs. At | ||
the conclusion of the study, no later than December 31, 2022, | ||
the commission shall issue a public report containing its | ||
findings. | ||
(c) This Section is repealed on January 1, 2024. | ||
(415 ILCS 5/22.59) | ||
Sec. 22.59. CCR surface impoundments. | ||
(a) The General Assembly finds that: | ||
(1) the State of Illinois has a long-standing policy | ||
to restore, protect, and enhance the environment, | ||
including the purity of the air, land, and waters, | ||
including groundwaters, of this State; | ||
(2) a clean environment is essential to the growth and | ||
well-being of this State; | ||
(3) CCR generated by the electric generating industry | ||
has caused groundwater contamination and other forms of | ||
pollution at active and inactive plants throughout this |
State; | ||
(4) environmental laws should be supplemented to | ||
ensure consistent, responsible regulation of all existing | ||
CCR surface impoundments; and | ||
(5) meaningful participation of State residents, | ||
especially vulnerable populations who may be affected by | ||
regulatory actions, is critical to ensure that | ||
environmental justice considerations are incorporated in | ||
the development of, decision-making related to, and | ||
implementation of environmental laws and rulemaking that | ||
protects and improves the well-being of communities in | ||
this State that bear disproportionate burdens imposed by | ||
environmental pollution. | ||
Therefore, the purpose of this Section is to promote a | ||
healthful environment, including clean water, air, and land, | ||
meaningful public involvement, and the responsible disposal | ||
and storage of coal combustion residuals, so as to protect | ||
public health and to prevent pollution of the environment of | ||
this State. | ||
The provisions of this Section shall be liberally | ||
construed to carry out the purposes of this Section. | ||
(b) No person shall: | ||
(1) cause or allow the discharge of any contaminants | ||
from a CCR surface impoundment into the environment so as | ||
to cause, directly or indirectly, a violation of this | ||
Section or any regulations or standards adopted by the |
Board under this Section, either alone or in combination | ||
with contaminants from other sources; | ||
(2) construct, install, modify, operate, or close any | ||
CCR surface impoundment without a permit granted by the | ||
Agency, or so as to violate any conditions imposed by such | ||
permit, any provision of this Section or any regulations | ||
or standards adopted by the Board under this Section; or | ||
(3) cause or allow, directly or indirectly, the | ||
discharge, deposit, injection, dumping, spilling, leaking, | ||
or placing of any CCR upon the land in a place and manner | ||
so as to cause or tend to cause a violation this Section or | ||
any regulations or standards adopted by the Board under | ||
this Section. | ||
(c) For purposes of this Section, a permit issued by the | ||
Administrator of the United States Environmental Protection | ||
Agency under Section 4005 of the federal Resource Conservation | ||
and Recovery Act, shall be deemed to be a permit under this | ||
Section and subsection (y) of Section 39. | ||
(d) Before commencing closure of a CCR surface | ||
impoundment, in accordance with Board rules, the owner of a | ||
CCR surface impoundment must submit to the Agency for approval | ||
a closure alternatives analysis that analyzes all closure | ||
methods being considered and that otherwise satisfies all | ||
closure requirements adopted by the Board under this Act. | ||
Complete removal of CCR, as specified by the Board's rules, | ||
from the CCR surface impoundment must be considered and |
analyzed. Section 3.405 does not apply to the Board's rules | ||
specifying complete removal of CCR. The selected closure | ||
method must ensure compliance with regulations adopted by the | ||
Board pursuant to this Section. | ||
(e) Owners or operators of CCR surface impoundments who | ||
have submitted a closure plan to the Agency before May 1, 2019, | ||
and who have completed closure prior to 24 months after July | ||
30, 2019 ( the effective date of Public Act 101-171) this | ||
amendatory Act of the 101st General Assembly shall not be | ||
required to obtain a construction permit for the surface | ||
impoundment closure under this Section. | ||
(f) Except for the State, its agencies and institutions, a | ||
unit of local government, or not-for-profit electric | ||
cooperative as defined in Section 3.4 of the Electric Supplier | ||
Act, any person who owns or operates a CCR surface impoundment | ||
in this State shall post with the Agency a performance bond or | ||
other security for the purpose of: (i) ensuring closure of the | ||
CCR surface impoundment and post-closure care in accordance | ||
with this Act and its rules; and (ii) insuring remediation of | ||
releases from the CCR surface impoundment. The only acceptable | ||
forms of financial assurance are: a trust fund, a surety bond | ||
guaranteeing payment, a surety bond guaranteeing performance, | ||
or an irrevocable letter of credit. | ||
(1) The cost estimate for the post-closure care of a | ||
CCR surface impoundment shall be calculated using a | ||
30-year post-closure care period or such longer period as |
may be approved by the Agency under Board or federal | ||
rules. | ||
(2) The Agency is authorized to enter into such | ||
contracts and agreements as it may deem necessary to carry | ||
out the purposes of this Section. Neither the State, nor | ||
the Director, nor any State employee shall be liable for | ||
any damages or injuries arising out of or resulting from | ||
any action taken under this Section. | ||
(3) The Agency shall have the authority to approve or | ||
disapprove any performance bond or other security posted | ||
under this subsection. Any person whose performance bond | ||
or other security is disapproved by the Agency may contest | ||
the disapproval as a permit denial appeal pursuant to | ||
Section 40. | ||
(g) The Board shall adopt rules establishing construction | ||
permit requirements, operating permit requirements, design | ||
standards, reporting, financial assurance, and closure and | ||
post-closure care requirements for CCR surface impoundments. | ||
Not later than 8 months after July 30, 2019 ( the effective date | ||
of Public Act 101-171) this amendatory Act of the 101st | ||
General Assembly the Agency shall propose, and not later than | ||
one year after receipt of the Agency's proposal the Board | ||
shall adopt, rules under this Section. The Board shall not be | ||
deemed in noncompliance with the rulemaking deadline due to | ||
delays in adopting rules as a result of the Joint Commission on | ||
Administrative Rules oversight process. The rules must, at a |
minimum: | ||
(1) be at least as protective and comprehensive as the | ||
federal regulations or amendments thereto promulgated by | ||
the Administrator of the United States Environmental | ||
Protection Agency in Subpart D of 40 CFR 257 governing CCR | ||
surface impoundments; | ||
(2) specify the minimum contents of CCR surface | ||
impoundment construction and operating permit | ||
applications, including the closure alternatives analysis | ||
required under subsection (d); | ||
(3) specify which types of permits include | ||
requirements for closure, post-closure, remediation and | ||
all other requirements applicable to CCR surface | ||
impoundments; | ||
(4) specify when permit applications for existing CCR | ||
surface impoundments must be submitted, taking into | ||
consideration whether the CCR surface impoundment must | ||
close under the RCRA; | ||
(5) specify standards for review and approval by the | ||
Agency of CCR surface impoundment permit applications; | ||
(6) specify meaningful public participation procedures | ||
for the issuance of CCR surface impoundment construction | ||
and operating permits, including, but not limited to, | ||
public notice of the submission of permit applications, an | ||
opportunity for the submission of public comments, an | ||
opportunity for a public hearing prior to permit issuance, |
and a summary and response of the comments prepared by the | ||
Agency; | ||
(7) prescribe the type and amount of the performance | ||
bonds or other securities required under subsection (f), | ||
and the conditions under which the State is entitled to | ||
collect moneys from such performance bonds or other | ||
securities; | ||
(8) specify a procedure to identify areas of | ||
environmental justice concern in relation to CCR surface | ||
impoundments; | ||
(9) specify a method to prioritize CCR surface | ||
impoundments required to close under RCRA if not otherwise | ||
specified by the United States Environmental Protection | ||
Agency, so that the CCR surface impoundments with the | ||
highest risk to public health and the environment, and | ||
areas of environmental justice concern are given first | ||
priority; | ||
(10) define when complete removal of CCR is achieved | ||
and specify the standards for responsible removal of CCR | ||
from CCR surface impoundments, including, but not limited | ||
to, dust controls and the protection of adjacent surface | ||
water and groundwater; and | ||
(11) describe the process and standards for | ||
identifying a specific alternative source of groundwater | ||
pollution when the owner or operator of the CCR surface | ||
impoundment believes that groundwater contamination on the |
site is not from the CCR surface impoundment. | ||
(h) Any owner of a CCR surface impoundment that generates | ||
CCR and sells or otherwise provides coal combustion byproducts | ||
pursuant to Section 3.135 shall, every 12 months, post on its | ||
publicly available website a report specifying the volume or | ||
weight of CCR, in cubic yards or tons, that it sold or provided | ||
during the past 12 months. | ||
(i) The owner of a CCR surface impoundment shall post all | ||
closure plans, permit applications, and supporting | ||
documentation, as well as any Agency approval of the plans or | ||
applications on its publicly available website. | ||
(j) The owner or operator of a CCR surface impoundment | ||
shall pay the following fees: | ||
(1) An initial fee to the Agency within 6 months after | ||
July 30, 2019 ( the effective date of Public Act 101-171) | ||
this amendatory Act of the 101st General Assembly of: | ||
$50,000 for each closed CCR surface impoundment; | ||
and | ||
$75,000 for each CCR surface impoundment that have | ||
not completed closure. | ||
(2) Annual fees to the Agency, beginning on July 1, | ||
2020, of: | ||
$25,000 for each CCR surface impoundment that has | ||
not completed closure; and | ||
$15,000 for each CCR surface impoundment that has | ||
completed closure, but has not completed post-closure |
care. | ||
(k) All fees collected by the Agency under subsection (j) | ||
shall be deposited into the Environmental Protection Permit | ||
and Inspection Fund. | ||
(l) The Coal Combustion Residual Surface Impoundment | ||
Financial Assurance Fund is created as a special fund in the | ||
State treasury. Any moneys forfeited to the State of Illinois | ||
from any performance bond or other security required under | ||
this Section shall be placed in the Coal Combustion Residual | ||
Surface Impoundment Financial Assurance Fund and shall, upon | ||
approval by the Governor and the Director, be used by the | ||
Agency for the purposes for which such performance bond or | ||
other security was issued. The Coal Combustion Residual | ||
Surface Impoundment Financial Assurance Fund is not subject to | ||
the provisions of subsection (c) of Section 5 of the State | ||
Finance Act. | ||
(m) The provisions of this Section shall apply, without | ||
limitation, to all existing CCR surface impoundments and any | ||
CCR surface impoundments constructed after July 30, 2019 ( the | ||
effective date of Public Act 101-171) this amendatory Act of | ||
the 101st General Assembly , except to the extent prohibited by | ||
the Illinois or United States Constitutions.
| ||
(Source: P.A. 101-171, eff. 7-30-19; revised 10-22-19.) | ||
Section 90-56. The Alternate Fuels Act is amended by | ||
changing Sections 1, 5, 10, 15, 35, 40, and 45 and by adding |
Section 27 as follows:
| ||
(415 ILCS 120/1)
| ||
Sec. 1. Short title. This Act may be cited as the Electric | ||
Vehicle Rebate Alternate Fuels Act.
| ||
(Source: P.A. 89-410.)
| ||
(415 ILCS 120/5)
| ||
Sec. 5. Purpose. The General Assembly declares that
it is | ||
the public policy of the State to promote and encourage
the use | ||
of electric alternate fuel in vehicles as a means to improve | ||
air
quality and reduce the risks from global warming in the | ||
State and to meet the requirements of the federal
Clean Air Act | ||
Amendments of 1990 and the federal Energy Policy
Act of 1992 . | ||
The General Assembly further declares that the
State can play | ||
a leadership role in increasing usage the development of | ||
vehicles
powered by electricity alternate fuels, as well as in | ||
the establishment of
the necessary infrastructure to support | ||
this emerging technology .
| ||
(Source: P.A. 89-410.)
| ||
(415 ILCS 120/10)
| ||
Sec. 10. Definitions. As used in this Act:
| ||
"Agency" means the Environmental Protection Agency.
| ||
"Alternate fuel" means liquid petroleum gas, natural gas,
| ||
E85 blend fuel, fuel composed of a minimum 80% ethanol, 80%
|
bio-based
methanol, fuels that are at least 80% derived from | ||
biomass,
hydrogen fuel, or
electricity, excluding on-board | ||
electric generation.
| ||
"Alternate fuel vehicle" means any vehicle that is
| ||
operated in Illinois and is capable of using an alternate | ||
fuel.
| ||
"Biodiesel fuel" means a renewable fuel conforming to the | ||
industry standard
ASTM-D6751 and registered with the U.S. | ||
Environmental Protection Agency.
| ||
"Car sharing organization" means an organization whose | ||
primary business is a membership-based service that allows | ||
members to drive cars by the hour in order to extend the public | ||
transit system, reduce personal car ownership, save consumers | ||
money, increase the use of alternative transportation, and | ||
improve environmental sustainability. | ||
"Conventional", when used to modify the word "vehicle",
| ||
"engine", or "fuel", means gasoline or diesel or any
| ||
reformulations of those fuels.
| ||
"Covered Area" means the counties of Cook, DuPage, Kane, | ||
Lake, McHenry, and
Will , the townships of Aux Sable and Goose | ||
Lake in Grundy County, and the township of Oswego in Kendall | ||
County and those portions of Grundy County and Kendall County | ||
that are included
in the following ZIP code areas, as | ||
designated by the U.S. Postal Service on
the effective date of | ||
this amendatory Act of 1998: 60416, 60444, 60447, 60450,
| ||
60481, 60538, and 60543 .
|
"Director" means the Director of the Environmental | ||
Protection Agency.
| ||
"Domestic renewable fuel" means a fuel, produced in the
| ||
United States, composed of a minimum 80% ethanol, 80% | ||
bio-based
methanol, or 20% biodiesel fuel.
| ||
"E85 blend fuel" means fuel that contains 85% ethanol and | ||
15% gasoline.
| ||
"Electric vehicle" means a vehicle that is exclusively | ||
powered by and refueled by electricity, must be plugged in to | ||
charge, and is licensed to drive on public roadways. "Electric | ||
Vehicle" does not include electric motorcycles, or hybrid | ||
electric vehicles and extended-range electric vehicles that | ||
are also equipped with conventional fueled propulsion or | ||
auxiliary engines. | ||
"Environmental justice community" has the same meaning, | ||
based on existing methodologies and findings, used and as may | ||
be updated by the Illinois Power Agency and its Program | ||
Administrator of the Illinois Solar for All Program. | ||
"Low income" means persons and families whose income does
| ||
not exceed 80% of the State median income for the current State | ||
fiscal year, as established by the United States Department of | ||
Health and Human Services. licensed to drive on public | ||
roadways, is predominantly powered by, and primarily refueled | ||
with, electricity, and does not have restrictions confining it | ||
to operate on only certain types of streets or roads. | ||
"GVWR" means Gross Vehicle Weight Rating.
|
"Location" means (i) a parcel of real property or (ii)
| ||
multiple, contiguous parcels of real property that are | ||
separated
by private roadways, public roadways, or private or | ||
public
rights-of-way and are owned, operated, leased, or under | ||
common
control of one party.
| ||
"Original equipment manufacturer" or "OEM" means a
| ||
manufacturer of alternate fuel vehicles or a manufacturer or
| ||
remanufacturer of alternate fuel engines used in vehicles | ||
greater
than 8500 pounds GVWR.
| ||
"Rental vehicle" means any motor vehicle that is owned
or | ||
controlled primarily for the purpose of short-term leasing or
| ||
rental pursuant to a contract.
| ||
(Source: P.A. 97-90, eff. 7-11-11.)
| ||
(415 ILCS 120/15)
| ||
Sec. 15. Rulemaking. The Agency shall promulgate rules as | ||
necessary
and dedicate sufficient resources to implement the | ||
purposes of
Section 27 30 of this Act. Such rules shall be
| ||
consistent with applicable the provisions of the Clean Air Act | ||
Amendments of 1990 and any
regulations promulgated pursuant | ||
thereto. The Secretary of State may
promulgate rules to | ||
implement Section 35 of this Act. The Department of
Commerce | ||
and Economic Opportunity may promulgate rules to implement | ||
Section 25 of
this Act.
| ||
(Source: P.A. 94-793, eff. 5-19-06.)
|
(415 ILCS 120/27 new) | ||
Sec. 27. Electric vehicle rebate. | ||
(a) Beginning July 1, 2022, and continuing as long as | ||
funds are available, each person shall be eligible to apply | ||
for a rebate, in the amounts set forth below, following the | ||
purchase of an electric vehicle in Illinois. The Agency shall | ||
issue rebates consistent with the provisions of this Act and | ||
any implementing regulations adopted by the Agency. In no | ||
event shall a rebate amount exceed the purchase price of the | ||
vehicle. | ||
(1) Beginning July 1, 2022, a $4,000 rebate for the | ||
purchase of an electric vehicle. | ||
(2) Beginning July 1, 2026, a $2,000 rebate for the | ||
purchase of an electric vehicle. | ||
(3) Beginning July 1, 2028, a $1,000 rebate for the | ||
purchase of an electric vehicle. | ||
(b) To be eligible to receive a rebate, a purchaser must: | ||
(1) Reside in Illinois, both at the time the vehicle | ||
was purchased and at the time the rebate is issued. | ||
(2) Purchase an electric vehicle in Illinois on or | ||
after July 1, 2022 and be the owner of the vehicle at the | ||
time the rebate is issued. Rented or leased vehicles, | ||
vehicles purchased from an out-of-state dealership, and | ||
vehicles delivered to or received by the purchaser | ||
out-of-state are not eligible for a rebate under this Act. | ||
(3) Apply for the rebate within 90 days after the |
vehicle purchase date, and provide to the Agency proof of | ||
residence, proof of vehicle ownership, and proof that the | ||
vehicle was purchased in Illinois, including a copy of a | ||
purchase agreement noting an Illinois seller. The | ||
purchaser must notify the Agency of any changes in | ||
residency or ownership of the vehicle that occur between | ||
application for a rebate and issuance of a rebate. | ||
(c) The Agency shall make available in application | ||
materials methods for purchasers to identify as low-income. | ||
The Agency shall prioritize the review of qualified | ||
applications from low-income purchasers and award rebates to | ||
qualified purchasers accordingly. | ||
(d) The purchaser must retain ownership of the vehicle for | ||
a minimum of 12 consecutive months immediately after the | ||
vehicle purchase date. The purchaser must continue to reside | ||
in a covered area during that time frame and register the | ||
vehicle in Illinois during that time frame. Rebate recipients | ||
who fail to satisfy any of the above criteria will be required | ||
to reimburse the Agency all or part of the original rebate | ||
amount and shall notify the Agency within 60 days of failing to | ||
satisfy the criteria. | ||
(e) Rebates administered under this Section shall be | ||
available for both new and used passenger electric vehicles. | ||
(f) A rebate administered under this Act may only be | ||
applied for and awarded one time per vehicle identification | ||
number. A rebate may only be applied for and awarded once per |
purchaser in any 10-year period.
| ||
(415 ILCS 120/35)
| ||
Sec. 35. User fees.
| ||
(a) The Office of
the Secretary of State shall collect | ||
annual user fees from any individual,
partnership, | ||
association, corporation, or agency of the United States
| ||
government that registers any combination of 10 or more of the | ||
following types
of motor vehicles in the Covered Area: (1) | ||
vehicles of the First Division,
as defined in the Illinois | ||
Vehicle Code; (2) vehicles of the Second Division
registered | ||
under the B, C, D, F, H, MD, MF, MG, MH and MJ plate | ||
categories, as
defined in the Illinois Vehicle Code; and (3) | ||
commuter vans and livery vehicles
as defined in the Illinois | ||
Vehicle Code. This Section does not apply to
vehicles | ||
registered under the International Registration Plan under | ||
Section
3-402.1 of the Illinois Vehicle Code. The user fee | ||
shall be $20 for each
vehicle registered in the Covered Area | ||
for each fiscal year. The Office of
the Secretary of State | ||
shall collect the $20 when a vehicle's registration
fee is | ||
paid.
| ||
(b) Owners of State, county, and local government
| ||
vehicles, rental vehicles, antique vehicles, expanded-use | ||
antique vehicles, electric vehicles,
and motorcycles are | ||
exempt from paying the user fees on such
vehicles.
| ||
(c) The Office of the Secretary of State shall deposit the |
user fees
collected into the Electric Vehicle Rebate Alternate | ||
Fuels Fund.
| ||
(Source: P.A. 101-505, eff. 1-1-20 .)
| ||
(415 ILCS 120/40)
| ||
Sec. 40. Appropriations from the Electric Vehicle Rebate | ||
Alternate Fuels Fund.
| ||
(a) User Fees Funds. The Agency shall estimate the amount | ||
of user fees
expected to be collected under Section 35 of this | ||
Act for each fiscal
year. User fee funds shall be
deposited | ||
into and distributed from the Alternate Fuels Fund in the | ||
following
manner:
| ||
(1) In each of fiscal years 1999, 2000, 2001, 2002, | ||
and 2003,
an amount not to exceed $200,000, and beginning | ||
in fiscal year 2004 an
annual amount not to exceed | ||
$225,000, may be appropriated to the Agency
from the | ||
Alternate Fuels Fund to pay its costs of administering the | ||
programs
authorized by Section 27 30 of this Act. Up to | ||
$200,000 may be appropriated to
the Office of the | ||
Secretary of State in each of fiscal years 1999, 2000, | ||
2001, 2002, and 2003 from the Alternate Fuels Fund to pay | ||
the Secretary
of State's costs of administering the | ||
programs authorized under this Act.
Beginning in fiscal | ||
year 2004 and in each fiscal year thereafter, an amount
| ||
not to exceed $225,000 may be appropriated to the | ||
Secretary of State from the
Alternate Fuels Fund to pay |
the Secretary of State's costs of administering the
| ||
programs authorized under this Act.
| ||
(2) In fiscal year 2022 and each fiscal year | ||
thereafter years 1999, 2000, 2001, and 2002 , after | ||
appropriation of
the amounts authorized by item (1) of | ||
subsection (a) of this Section, the
remaining moneys | ||
estimated to be
collected during each fiscal year shall be | ||
appropriated as follows: 80% of
the remaining moneys shall | ||
be appropriated to fund the programs authorized by
Section | ||
30, and 20% shall be appropriated to fund the programs | ||
authorized by
Section 25. In fiscal year 2004 and each | ||
fiscal year thereafter, after
appropriation of the amounts | ||
authorized by item (1) of subsection (a) of this
Section, | ||
the remaining moneys estimated to be collected during each | ||
fiscal year
shall be appropriated as follows: 70% of the | ||
remaining moneys shall be
appropriated to fund the | ||
programs authorized by Section 30 and 30% shall be
| ||
appropriated to fund the programs authorized by Section | ||
31 .
| ||
(3) (Blank).
| ||
(4) Moneys appropriated to fund the programs | ||
authorized
in Sections 25 and 30 shall be expended only | ||
after they have been
collected and deposited into the | ||
Alternate Fuels Fund.
| ||
(b) General Revenue Fund Appropriations. General Revenue | ||
Fund amounts
appropriated to and deposited into the Electric |
Vehicle Rebate Alternate Fuels Fund shall be
distributed from | ||
the Electric Vehicle Rebate Alternate Fuels Fund to fund the | ||
program authorized in Section 27. in the following manner:
| ||
(1) In each of fiscal years 2003 and 2004, an amount | ||
not to exceed
$50,000 may be appropriated to the
| ||
Department of Commerce and Community Affairs
(now | ||
Department of Commerce and Economic Opportunity) from the | ||
Alternate Fuels Fund to pay
its costs of administering the | ||
programs authorized by Sections 31 and 32.
| ||
(2) In each of fiscal years 2003 and 2004, an amount | ||
not to exceed
$50,000 may be appropriated to the | ||
Department of Commerce and Community Affairs
(now | ||
Department of Commerce and Economic Opportunity) to fund | ||
the programs authorized by Section 32.
| ||
(3) In each of fiscal years 2003 and 2004, after | ||
appropriation of the
amounts authorized in items (1) and | ||
(2) of subsection (b) of this Section, the
remaining | ||
moneys received from the General Revenue Fund shall be | ||
appropriated
as follows: 52.632% of the remaining moneys | ||
shall be appropriated to fund the
programs authorized by | ||
Sections 25 and 30 and 47.368% of the remaining moneys
| ||
shall be appropriated to fund the programs authorized by | ||
Section 31.
The moneys appropriated to fund the programs | ||
authorized by Sections 25
and 30 shall be used as follows: | ||
20% shall be used to fund the
programs authorized by | ||
Section 25, and 80% shall be used to fund
the programs |
authorized by Section 30.
| ||
Moneys appropriated to fund the programs authorized in | ||
Section 31
shall be expended only after they have been | ||
deposited into the
Alternate Fuels Fund.
| ||
(Source: P.A. 93-32, eff. 7-1-03; 94-793, eff. 5-19-06.)
| ||
(415 ILCS 120/45)
| ||
Sec. 45.
Electric Vehicle Rebate Alternate Fuels Fund; | ||
creation; deposit of
user fees. A separate fund in the State | ||
Treasury called the
Electric Vehicle Rebate Alternate Fuels | ||
Fund is created, into which shall be
transferred the user fees | ||
as provided in Section 35 and any
other revenues, deposits, | ||
State appropriations, contributions, grants,
gifts, bequests, | ||
legacies of money and securities, or transfers as provided
by | ||
law from, without limitation, governmental entities, private | ||
sources,
foundations, trade associations, industry | ||
organizations, and not-for-profit
organizations.
| ||
(Source: P.A. 92-858, eff. 1-3-03.)
| ||
(415 ILCS 120/20 rep.) | ||
(415 ILCS 120/22 rep.) | ||
(415 ILCS 120/24 rep.) | ||
(415 ILCS 120/30 rep.) | ||
(415 ILCS 120/31 rep.) | ||
(415 ILCS 120/32 rep.) | ||
Section 90-57. The Alternate Fuels Act is amended by |
repealing Sections 20, 22, 24, 30, 31, and 32. | ||
Section 90-59. The Illinois Vehicle Code is amended by | ||
changing Section 13C-10 as follows: | ||
(625 ILCS 5/13C-10) | ||
Sec. 13C-10. Program. | ||
(a) The Agency shall establish a program to begin February | ||
1, 2007, to reduce the emission of pollutants by motor | ||
vehicles. This program shall be a replacement for and | ||
continuation of the program established under the Vehicle | ||
Emissions Inspection Law of 1995, Chapter 13B of this Code. | ||
At a minimum, this program shall provide for all of the | ||
following: | ||
(1) The inspection of certain motor vehicles every 2 | ||
years, as required under Section 13C-15. | ||
(2) The establishment and operation of official | ||
inspection stations. | ||
(3) The designation of official test equipment and | ||
testing procedures. | ||
(4)
The training and supervision of inspectors and | ||
other personnel. | ||
(5) Procedures to assure the correct operation, | ||
maintenance, and calibration of test equipment. | ||
(6) Procedures for certifying test results and for | ||
reporting and maintaining relevant data and records. |
(7) The funding of electric vehicle alternate fuel | ||
rebates and grants as authorized by the Electric Vehicle | ||
Rebate Section 30 of the Alternate Fuels Act. | ||
(b) The Agency shall provide for the operation of a | ||
sufficient number of official inspection stations to prevent | ||
undue difficulty for motorists to obtain the inspections | ||
required under this Chapter. In the event that the Agency | ||
operates inspection stations or contracts with one or more | ||
parties to operate inspection stations on its behalf, the | ||
Agency shall endeavor to: (i) locate the stations so that the | ||
owners of vehicles subject to inspection reside within 12 | ||
miles of an official inspection station; and (ii) have | ||
sufficient inspection capacity at the stations so that the | ||
usual wait before the start of an inspection does not exceed 15 | ||
minutes.
| ||
(Source: P.A. 98-24, eff. 6-19-13.) | ||
Section 90-60. The Illinois Worker Adjustment and
| ||
Retraining Notification Act is amended by changing Section 10 | ||
as follows: | ||
(820 ILCS 65/10)
| ||
Sec. 10. Notice. | ||
(a) An employer may not order a mass layoff, relocation, | ||
or employment loss unless, 60 days before the order takes | ||
effect, the employer gives written notice of the order to the |
following: | ||
(1) affected employees and representatives of affected | ||
employees; and | ||
(2) the Department of Commerce and Economic | ||
Opportunity and the chief elected official of each | ||
municipal and county government within which the | ||
employment loss, relocation, or mass layoff occurs. | ||
(a-5) An owner of an investor-owned electric generating
| ||
plant or coal mining operation may not order a mass layoff,
| ||
relocation, or employment loss unless, 2 years before the
| ||
order takes effect, the employer gives written notice of the
| ||
order to the following: | ||
(1) affected employees and representatives of affected
| ||
employees; and | ||
(2) the Department of Commerce and Economic
| ||
Opportunity and the chief elected official of each
| ||
municipal and county government within which the
| ||
employment loss, relocation, or mass layoff occurs. | ||
(b) An employer required to give notice of any mass | ||
layoff, relocation, or employment loss under this Act shall | ||
include in its notice the elements required by the federal | ||
Worker Adjustment and Retraining Notification Act (29 U.S.C. | ||
2101 et seq.). | ||
(c) Notwithstanding the requirements of subsection (a), an | ||
employer is not required to provide notice if a mass layoff, | ||
relocation, or employment loss is necessitated by a physical |
calamity or an act of terrorism or war. | ||
(d) The mailing of notice to an employee's last known | ||
address or inclusion of notice in the employee's paycheck | ||
shall be considered acceptable methods for fulfillment of the | ||
employer's obligation to give notice to each affected employee | ||
under this Act. | ||
(e) In the case of a sale of part or all of an employer's | ||
business, the seller shall be responsible for providing notice | ||
for any plant closing or mass layoff in accordance with this | ||
Section, up to and including the effective date of the sale. | ||
After the effective date of the sale of part or all of an | ||
employer's business, the purchaser shall be responsible for | ||
providing notice for any plant closing or mass layoff in | ||
accordance with this Section. Notwithstanding any other | ||
provision of this Act, any person who is an employee of the | ||
seller (other than a part-time employee) as of the effective | ||
date of the sale shall be considered an employee of the | ||
purchaser immediately after the effective date of the sale. | ||
(f) An employer which is receiving State or local economic | ||
development incentives for doing or continuing to do business | ||
in this State may be required to provide additional notice | ||
pursuant to Section 15 of the Business Economic Support Act. | ||
(g) The rights and remedies provided to employees by this | ||
Act are in
addition to, and not in lieu of, any other | ||
contractual or statutory
rights and remedies of the employees, | ||
and are not intended to alter or
affect such rights and |
remedies, except that the period of notification
required by | ||
this Act shall run concurrently with any period of
| ||
notification required by contract or by any other law. | ||
(h) It is the sense of the General Assembly that an | ||
employer who is not required to comply with the notice | ||
requirements of this Section should, to the extent possible, | ||
provide notice to its employees about a proposal to close a | ||
plant or permanently reduce its workforce.
| ||
(Source: P.A. 93-915, eff. 1-1-05.) | ||
Article 99. Miscellaneous Provisions; Effective Date | ||
Section 99-95. No acceleration or delay. Where this Act | ||
makes changes in a statute that is represented in this Act by | ||
text that is not yet or no longer in effect (for example, a | ||
Section represented by multiple versions), the use of that | ||
text does not accelerate or delay the taking effect of (i) the | ||
changes made by this Act or (ii) provisions derived from any | ||
other Public Act. | ||
Section 99-97. Severability. The provisions of this Act | ||
are severable under Section 1.31 of the Statute on Statutes.
| ||
Section 99-99. Effective date. This Act takes effect upon | ||
becoming law.
|