IL
Illinois House Bill HB0587

Illinois 2023-2024 Regular Session

Illinois House Bill HB0587 Compare Versions

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33 1 AN ACT concerning regulation.
44 2 Be it enacted by the People of the State of Illinois,
55 3 represented in the General Assembly:
6-4 Section 1. Short title. This Act may be cited as the
7-5 Electric Transmission Systems Construction Standards Act.
8-6 Section 5. Definitions. For the purposes of this Act:
9-7 "Commission" means the Illinois Commerce Commission.
10-8 "Construction contractor" means any entity responsible for
11-9 the construction, installation, maintenance, or repair of
12-10 electric transmission systems subject to this Act.
13-11 "Electric transmission systems" means an electrical
14-12 transmission system designed and constructed with the
15-13 capability of being safely and reliably energized at 69
16-14 kilovolts or more, including transmission lines, transmission
17-15 towers, conductors, insulators, foundations, grounding
18-16 systems, access roads, and all associated transmission
19-17 facilities, including transmission substations. "Electric
20-18 transmission systems" does not include projects located on the
21-19 electric generating facility's side of the facility's point of
22-20 interconnection.
23-21 "OSHA" means Occupational Safety and Health
24-22 Administration.
25-23 "Utility" has the meaning given to that term in Section
6+4 Section 5. The Hospital Licensing Act is amended by
7+5 changing Section 9.6 as follows:
8+6 (210 ILCS 85/9.6)
9+7 Sec. 9.6. Patient protection from abuse.
10+8 (a) No administrator, agent, or employee of a hospital or
11+9 a hospital affiliate, or a member of a hospital's its medical
12+10 staff, may abuse a patient in the hospital or in a facility
13+11 operated by a hospital affiliate.
14+12 (b) Any hospital administrator, agent, employee, or
15+13 medical staff member, or an administrator, employee, or
16+14 physician employed by a hospital affiliate, who has reasonable
17+15 cause to believe that any patient with whom he or she has
18+16 direct contact has been subjected to abuse in the hospital or
19+17 hospital affiliate shall promptly report or cause a report to
20+18 be made to a designated hospital administrator responsible for
21+19 providing such reports to the Department as required by this
22+20 Section.
23+21 (c) Retaliation against a person who lawfully and in good
24+22 faith makes a report under this Section is prohibited.
25+23 (d) Upon receiving a report under subsection (b) of this
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34-1 3-105 of the Public Utilities Act.
35-2 Section 10. Policy. The State of Illinois adopts the
36-3 following policies to ensure that electric transmission
37-4 systems are constructed to the highest standards of safety,
38-5 competency, and reliability:
39-6 (1) Mandate the use of qualified, properly trained
40-7 employees on all electric transmission systems.
41-8 (2) Protect workers by ensuring fair compensation in
42-9 accordance with the Prevailing Wage Act.
43-10 (3) Promote public safety through OSHA-certified
44-11 safety training and adherence to apprenticeship standards.
45-12 Section 15. Requirements for contractors.
46-13 (a) Prevailing wage compliance. All utilities and
47-14 construction contractors responsible for the construction,
48-15 installation, maintenance, or repair of electric transmission
49-16 systems shall pay employees performing the construction,
50-17 installation, maintenance, or repair work of such systems
51-18 wages and benefits consistent with the Prevailing Wage Act.
52-19 (b) Training and competence requirement. To ensure safety
53-20 and reliability in the construction, installation,
54-21 maintenance, and repair of electric transmission systems, each
55-22 electric utility and construction contractor must demonstrate
56-23 the competence of their employees who are performing the work
57-24 of construction, installation, maintenance, or repair of
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34+1 Section, the hospital or hospital affiliate shall submit the
35+2 report to the Department within 24 hours of obtaining such
36+3 report. In the event that the hospital receives multiple
37+4 reports involving a single alleged instance of abuse, the
38+5 hospital shall submit one report to the Department.
39+6 (e) Upon receiving a report under this Section, the
40+7 hospital or hospital affiliate shall promptly conduct an
41+8 internal review to ensure the alleged victim's safety.
42+9 Measures to protect the alleged victim shall be taken as
43+10 deemed necessary by the hospital's administrator and may
44+11 include, but are not limited to, removing suspected violators
45+12 from further patient contact during the hospital's or hospital
46+13 affiliate's internal review. If the alleged victim lacks
47+14 decision-making capacity under the Health Care Surrogate Act
48+15 and no health care surrogate is available, the hospital or
49+16 hospital affiliate may contact the Illinois Guardianship and
50+17 Advocacy Commission to determine the need for a temporary
51+18 guardian of that person.
52+19 (f) All internal hospital and hospital affiliate reviews
53+20 shall be conducted by a designated hospital employee or agent
54+21 who is qualified to detect abuse and is not involved in the
55+22 alleged victim's treatment. All internal review findings must
56+23 be documented and filed according to hospital or hospital
57+24 affiliate procedures and shall be made available to the
58+25 Department upon request.
59+26 (g) Any other person may make a report of patient abuse to
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68-1 electric transmission systems, which shall be consistent with
69-2 the standards required by Illinois utilities as of January 1,
70-3 2007, or greater. Competence must include, at a minimum: (1)
71-4 completion, or active participation with ultimate completion,
72-5 in an accredited or recognized apprenticeship program for the
73-6 relevant craft, trade, or skill; or (2) a minimum of 2 years of
74-7 direct employment in the specific work function.
75-8 The Commission shall oversee compliance to ensure
76-9 employees meet these standards.
77-10 (c) Safety training. All employees engaged in the
78-11 construction, installation, maintenance, or repair of electric
79-12 transmission systems must successfully complete OSHA-certified
80-13 safety training required for their specific roles on the
81-14 project site.
82-15 (d) Diversity Plan.
83-16 (1) All construction contractors engaged in the
84-17 construction, installation, maintenance, or repair of
85-18 electric transmission systems shall develop a Diversity
86-19 Plan that sets forth:
87-20 (A) the goals for apprenticeship hours to be
88-21 performed by minorities and women;
89-22 (B) the goals for total hours to be performed by
90-23 underrepresented minorities and women; and
91-24 (C) spending for women-owned, minority-owned,
92-25 veteran-owned, and small business enterprises in the
93-26 previous calendar year.
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70+1 the Department if that person has reasonable cause to believe
71+2 that a patient has been abused in the hospital or hospital
72+3 affiliate.
73+4 (h) The report required under this Section shall include:
74+5 the name of the patient; the name and address of the hospital
75+6 or hospital affiliate treating the patient; the age of the
76+7 patient; the nature of the patient's condition, including any
77+8 evidence of previous injuries or disabilities; and any other
78+9 information that the reporter believes might be helpful in
79+10 establishing the cause of the reported abuse and the identity
80+11 of the person believed to have caused the abuse.
81+12 (i) Except for willful or wanton misconduct, any
82+13 individual, person, institution, or agency participating in
83+14 good faith in the making of a report under this Section, or in
84+15 the investigation of such a report or in making a disclosure of
85+16 information concerning reports of abuse under this Section,
86+17 shall have immunity from any liability, whether civil,
87+18 professional, or criminal, that otherwise might result by
88+19 reason of such actions. For the purpose of any proceedings,
89+20 whether civil, professional, or criminal, the good faith of
90+21 any persons required to report cases of suspected abuse under
91+22 this Section or who disclose information concerning reports of
92+23 abuse in compliance with this Section, shall be presumed.
93+24 (j) No administrator, agent, or employee of a hospital or
94+25 hospital affiliate shall adopt or employ practices or
95+26 procedures designed to discourage good faith reporting of
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104-1 (2) These goals shall be expressed as a percentage of
105-2 the total work performed by the construction contractor
106-3 submitting the plan and the actual spending for all
107-4 women-owned, minority-owned, veteran-owned, and small
108-5 business enterprises shall also be expressed as a
109-6 percentage of the total work performed by the construction
110-7 contractor submitting the Diversity Plan.
111-8 (3) For purposes of the Diversity Plan, minorities and
112-9 women shall have the same definition as defined in the
113-10 Business Enterprise for Minorities, Women, and Persons
114-11 with Disabilities Act.
115-12 (4) The construction contractor shall submit the
116-13 Diversity Plan to the Commission.
117-14 Section 20. Rulemaking authority. The Commission shall
118-15 adopt rules to implement and enforce this Act, including
119-16 investigation procedures, penalties, and reporting
120-17 requirements.
121-18 Section 50. The Illinois Enterprise Zone Act is amended by
122-19 changing Section 5.5 as follows:
123-20 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
124-21 Sec. 5.5. High Impact Business.
125-22 (a) In order to respond to unique opportunities to assist
126-23 in the encouragement, development, growth, and expansion of
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106+1 patient abuse under this Section.
107+2 (k) Every hospital and hospital affiliate shall ensure
108+3 that all new and existing employees are trained in the
109+4 detection and reporting of abuse of patients and retrained at
110+5 least every 2 years thereafter.
111+6 (l) The Department shall investigate each report of
112+7 patient abuse made under this Section according to the
113+8 procedures of the Department, except that a report of abuse
114+9 which indicates that a patient's life or safety is in imminent
115+10 danger shall be investigated within 24 hours of such report.
116+11 Under no circumstances may a hospital's or hospital
117+12 affiliate's internal review of an allegation of abuse replace
118+13 an investigation of the allegation by the Department.
119+14 (m) The Department shall keep a continuing record of all
120+15 reports made pursuant to this Section, including indications
121+16 of the final determination of any investigation and the final
122+17 disposition of all reports. The Department shall inform the
123+18 investigated hospital or hospital affiliate and any other
124+19 person making a report under subsection (g) of its final
125+20 determination or disposition in writing.
126+21 (n) The Department shall not disclose to the public any
127+22 information regarding any reports and investigations under
128+23 this Section unless and until the report of abuse is
129+24 substantiated following a full and proper investigation.
130+25 (o) All patient identifiable information in any report or
131+26 investigation under this Section shall be confidential and
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137-1 the private sector through large scale investment and
138-2 development projects, the Department is authorized to receive
139-3 and approve applications for the designation of "High Impact
140-4 Businesses" in Illinois, for an initial term of 20 years with
141-5 an option for renewal for a term not to exceed 20 years,
142-6 subject to the following conditions:
143-7 (1) such applications may be submitted at any time
144-8 during the year;
145-9 (2) such business is not located, at the time of
146-10 designation, in an enterprise zone designated pursuant to
147-11 this Act, except for grocery stores, as defined in the
148-12 Grocery Initiative Act, and a new battery energy storage
149-13 solution facility, as defined by subparagraph (I) of
150-14 paragraph (3) of this subsection (a);
151-15 (3) the business intends to do, commits to do, or is
152-16 one or more of the following:
153-17 (A) the business intends to make a minimum
154-18 investment of $12,000,000 which will be placed in
155-19 service in qualified property and intends to create
156-20 500 full-time equivalent jobs at a designated location
157-21 in Illinois or intends to make a minimum investment of
158-22 $30,000,000 which will be placed in service in
159-23 qualified property and intends to retain 1,500
160-24 full-time retained jobs at a designated location in
161-25 Illinois. The terms "placed in service" and "qualified
162-26 property" have the same meanings as described in
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142+1 shall not be disclosed except as authorized by this Act or
143+2 other applicable law.
144+3 (p) Nothing in this Section relieves a hospital or
145+4 hospital affiliate administrator, employee, agent, or medical
146+5 staff member from contacting appropriate law enforcement
147+6 authorities as required by law.
148+7 (q) Nothing in this Section shall be construed to mean
149+8 that a patient is a victim of abuse because of health care
150+9 services provided or not provided by health care
151+10 professionals.
152+11 (r) Nothing in this Section shall require a hospital or
153+12 hospital affiliate, including its employees, agents, and
154+13 medical staff members, to provide any services to a patient in
155+14 contravention of his or her stated or implied objection
156+15 thereto upon grounds that such services conflict with his or
157+16 her religious beliefs or practices, nor shall such a patient
158+17 be considered abused under this Section for the exercise of
159+18 such beliefs or practices.
160+19 (s) The Department's implementation of this Section is
161+20 subject to appropriations to the Department for that purpose.
162+21 (t) As used in this Section, the following terms have the
163+22 following meanings:
164+23 "Abuse" means any physical or mental injury or sexual
165+24 abuse intentionally inflicted by a hospital or hospital
166+25 affiliate employee, agent, or medical staff member on a
167+26 patient of the hospital or hospital affiliate and does not
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173-1 subsection (h) of Section 201 of the Illinois Income
174-2 Tax Act; or
175-3 (B) the business intends to establish a new
176-4 electric generating facility at a designated location
177-5 in Illinois. "New electric generating facility", for
178-6 purposes of this Section, means a newly constructed
179-7 electric generation plant or a newly constructed
180-8 generation capacity expansion at an existing electric
181-9 generation plant, including the transmission lines and
182-10 associated equipment that transfers electricity from
183-11 points of supply to points of delivery, and for which
184-12 such new foundation construction commenced not sooner
185-13 than July 1, 2001. Such facility shall be designed to
186-14 provide baseload electric generation and shall operate
187-15 on a continuous basis throughout the year; and (i)
188-16 shall have an aggregate rated generating capacity of
189-17 at least 1,000 megawatts for all new units at one site
190-18 if it uses natural gas as its primary fuel and
191-19 foundation construction of the facility is commenced
192-20 on or before December 31, 2004, or shall have an
193-21 aggregate rated generating capacity of at least 400
194-22 megawatts for all new units at one site if it uses coal
195-23 or gases derived from coal as its primary fuel and
196-24 shall support the creation of at least 150 new
197-25 Illinois coal mining jobs, or (ii) shall be funded
198-26 through a federal Department of Energy grant before
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209-1 December 31, 2010 and shall support the creation of
210-2 Illinois coal mining jobs, or (iii) shall use coal
211-3 gasification or integrated gasification-combined cycle
212-4 units that generate electricity or chemicals, or both,
213-5 and shall support the creation of Illinois coal mining
214-6 jobs. The term "placed in service" has the same
215-7 meaning as described in subsection (h) of Section 201
216-8 of the Illinois Income Tax Act; or
217-9 (B-5) the business intends to establish a new
218-10 gasification facility at a designated location in
219-11 Illinois. As used in this Section, "new gasification
220-12 facility" means a newly constructed coal gasification
221-13 facility that generates chemical feedstocks or
222-14 transportation fuels derived from coal (which may
223-15 include, but are not limited to, methane, methanol,
224-16 and nitrogen fertilizer), that supports the creation
225-17 or retention of Illinois coal mining jobs, and that
226-18 qualifies for financial assistance from the Department
227-19 before December 31, 2010. A new gasification facility
228-20 does not include a pilot project located within
229-21 Jefferson County or within a county adjacent to
230-22 Jefferson County for synthetic natural gas from coal;
231-23 or
232-24 (C) the business intends to establish production
233-25 operations at a new coal mine, re-establish production
234-26 operations at a closed coal mine, or expand production
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245-1 at an existing coal mine at a designated location in
246-2 Illinois not sooner than July 1, 2001; provided that
247-3 the production operations result in the creation of
248-4 150 new Illinois coal mining jobs as described in
249-5 subdivision (a)(3)(B) of this Section, and further
250-6 provided that the coal extracted from such mine is
251-7 utilized as the predominant source for a new electric
252-8 generating facility. The term "placed in service" has
253-9 the same meaning as described in subsection (h) of
254-10 Section 201 of the Illinois Income Tax Act; or
255-11 (D) the business intends to construct new
256-12 transmission facilities or upgrade existing
257-13 transmission facilities at designated locations in
258-14 Illinois, for which construction commenced not sooner
259-15 than July 1, 2001. For the purposes of this Section,
260-16 "transmission facilities" means transmission lines
261-17 with a voltage rating of 115 kilovolts or above,
262-18 including associated equipment, that transfer
263-19 electricity from points of supply to points of
264-20 delivery and that transmit a majority of the
265-21 electricity generated by a new electric generating
266-22 facility designated as a High Impact Business in
267-23 accordance with this Section. The term "placed in
268-24 service" has the same meaning as described in
269-25 subsection (h) of Section 201 of the Illinois Income
270-26 Tax Act; or
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281-1 (E) the business intends to establish a new wind
282-2 power facility at a designated location in Illinois.
283-3 For purposes of this Section, "new wind power
284-4 facility" means a newly constructed electric
285-5 generation facility, a newly constructed expansion of
286-6 an existing electric generation facility, or the
287-7 replacement of an existing electric generation
288-8 facility, including the demolition and removal of an
289-9 electric generation facility irrespective of whether
290-10 it will be replaced, placed in service or replaced on
291-11 or after July 1, 2009, that generates electricity
292-12 using wind energy devices, and such facility shall be
293-13 deemed to include any permanent structures associated
294-14 with the electric generation facility and all
295-15 associated transmission lines, substations, and other
296-16 equipment related to the generation of electricity
297-17 from wind energy devices. For purposes of this
298-18 Section, "wind energy device" means any device, with a
299-19 nameplate capacity of at least 0.5 megawatts, that is
300-20 used in the process of converting kinetic energy from
301-21 the wind to generate electricity; or
302-22 (E-5) the business intends to establish a new
303-23 utility-scale solar facility at a designated location
304-24 in Illinois. For purposes of this Section, "new
305-25 utility-scale solar power facility" means a newly
306-26 constructed electric generation facility, or a newly
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317-1 constructed expansion of an existing electric
318-2 generation facility, placed in service on or after
319-3 July 1, 2021, that (i) generates electricity using
320-4 photovoltaic cells and (ii) has a nameplate capacity
321-5 that is greater than 5,000 kilowatts, and such
322-6 facility shall be deemed to include all associated
323-7 transmission lines, substations, energy storage
324-8 facilities, and other equipment related to the
325-9 generation and storage of electricity from
326-10 photovoltaic cells; or
327-11 (F) the business commits to (i) make a minimum
328-12 investment of $500,000,000, which will be placed in
329-13 service in a qualified property, (ii) create 125
330-14 full-time equivalent jobs at a designated location in
331-15 Illinois, (iii) establish a fertilizer plant at a
332-16 designated location in Illinois that complies with the
333-17 set-back standards as described in Table 1: Initial
334-18 Isolation and Protective Action Distances in the 2012
335-19 Emergency Response Guidebook published by the United
336-20 States Department of Transportation, (iv) pay a
337-21 prevailing wage for employees at that location who are
338-22 engaged in construction activities, and (v) secure an
339-23 appropriate level of general liability insurance to
340-24 protect against catastrophic failure of the fertilizer
341-25 plant or any of its constituent systems; in addition,
342-26 the business must agree to enter into a construction
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353-1 project labor agreement including provisions
354-2 establishing wages, benefits, and other compensation
355-3 for employees performing work under the project labor
356-4 agreement at that location; for the purposes of this
357-5 Section, "fertilizer plant" means a newly constructed
358-6 or upgraded plant utilizing gas used in the production
359-7 of anhydrous ammonia and downstream nitrogen
360-8 fertilizer products for resale; for the purposes of
361-9 this Section, "prevailing wage" means the hourly cash
362-10 wages plus fringe benefits for training and
363-11 apprenticeship programs approved by the U.S.
364-12 Department of Labor, Bureau of Apprenticeship and
365-13 Training, health and welfare, insurance, vacations and
366-14 pensions paid generally, in the locality in which the
367-15 work is being performed, to employees engaged in work
368-16 of a similar character on public works; this paragraph
369-17 (F) applies only to businesses that submit an
370-18 application to the Department within 60 days after
371-19 July 25, 2013 (the effective date of Public Act
372-20 98-109); or
373-21 (G) the business intends to establish a new
374-22 cultured cell material food production facility at a
375-23 designated location in Illinois. As used in this
376-24 paragraph (G):
377-25 "Cultured cell material food production facility"
378-26 means a facility (i) at which cultured animal cell
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389-1 food is developed using animal cell culture
390-2 technology, (ii) at which production processes occur
391-3 that include the establishment of cell lines and cell
392-4 banks, manufacturing controls, and all components and
393-5 inputs, and (iii) that complies with all existing
394-6 registrations, inspections, licensing, and approvals
395-7 from all applicable and participating State and
396-8 federal food agencies, including the Department of
397-9 Agriculture, the Department of Public Health, and the
398-10 United States Food and Drug Administration, to ensure
399-11 that all food production is safe and lawful under
400-12 provisions of the Federal Food, Drug and Cosmetic Act
401-13 related to the development, production, and storage of
402-14 cultured animal cell food.
403-15 "New cultured cell material food production
404-16 facility" means a newly constructed cultured cell
405-17 material food production facility that is placed in
406-18 service on or after June 7, 2023 (the effective date of
407-19 Public Act 103-9) or a newly constructed expansion of
408-20 an existing cultured cell material food production
409-21 facility, in a controlled environment, when the
410-22 improvements are placed in service on or after June 7,
411-23 2023 (the effective date of Public Act 103-9); or
412-24 (H) the business is an existing or planned grocery
413-25 store, as that term is defined in Section 5 of the
414-26 Grocery Initiative Act, and receives financial support
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425-1 under that Act within the 10 years before submitting
426-2 its application under this Act; or and
427-3 (I) the business intends to establish a new
428-4 battery energy storage solution facility at a
429-5 designated location in Illinois. As used in this
430-6 paragraph (I):
431-7 "New battery energy storage solution facility"
432-8 means a newly constructed battery energy storage
433-9 facility, a newly constructed expansion of an existing
434-10 battery energy storage facility, or the replacement of
435-11 an existing battery energy storage facility that
436-12 stores electricity using battery devices and other
437-13 means. "New battery energy storage solution facility"
438-14 includes any permanent structures associated with the
439-15 new battery energy storage facility and all associated
440-16 transmission lines, substations, and other equipment
441-17 that is related to the storage and transmission of
442-18 electric power and that has a capacity of not less than
443-19 20 megawatt and storage capability of not less than 40
444-20 megawatt hours of energy; or
445-21 (J) the business intends to construct a new high
446-22 voltage direct current converter station at a
447-23 designated location in Illinois. As used in this
448-24 paragraph, "high voltage direct current converter
449-25 station" has the same meaning given to that term in
450-26 Section 1-10 of the Illinois Power Act; and
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461-1 (4) no later than 90 days after an application is
462-2 submitted, the Department shall notify the applicant of
463-3 the Department's determination of the qualification of the
464-4 proposed High Impact Business under this Section.
465-5 (b) Businesses designated as High Impact Businesses
466-6 pursuant to subdivision (a)(3)(A) of this Section shall
467-7 qualify for the credits and exemptions described in the
468-8 following Acts: Section 9-222 and Section 9-222.1A of the
469-9 Public Utilities Act, subsection (h) of Section 201 of the
470-10 Illinois Income Tax Act, and Section 1d of the Retailers'
471-11 Occupation Tax Act; provided that these credits and exemptions
472-12 described in these Acts shall not be authorized until the
473-13 minimum investments set forth in subdivision (a)(3)(A) of this
474-14 Section have been placed in service in qualified properties
475-15 and, in the case of the exemptions described in the Public
476-16 Utilities Act and Section 1d of the Retailers' Occupation Tax
477-17 Act, the minimum full-time equivalent jobs or full-time
478-18 retained jobs set forth in subdivision (a)(3)(A) of this
479-19 Section have been created or retained. Businesses designated
480-20 as High Impact Businesses under this Section shall also
481-21 qualify for the exemption described in Section 5l of the
482-22 Retailers' Occupation Tax Act. The credit provided in
483-23 subsection (h) of Section 201 of the Illinois Income Tax Act
484-24 shall be applicable to investments in qualified property as
485-25 set forth in subdivision (a)(3)(A) of this Section.
486-26 (b-5) Businesses designated as High Impact Businesses
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497-1 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
498-2 (a)(3)(D), (a)(3)(G), and (a)(3)(H) of this Section shall
499-3 qualify for the credits and exemptions described in the
500-4 following Acts: Section 51 of the Retailers' Occupation Tax
501-5 Act, Section 9-222 and Section 9-222.1A of the Public
502-6 Utilities Act, and subsection (h) of Section 201 of the
503-7 Illinois Income Tax Act; however, the credits and exemptions
504-8 authorized under Section 9-222 and Section 9-222.1A of the
505-9 Public Utilities Act, and subsection (h) of Section 201 of the
506-10 Illinois Income Tax Act shall not be authorized until the new
507-11 electric generating facility, the new gasification facility,
508-12 the new transmission facility, the new, expanded, or reopened
509-13 coal mine, the new cultured cell material food production
510-14 facility, or the existing or planned grocery store is
511-15 operational, except that a new electric generating facility
512-16 whose primary fuel source is natural gas is eligible only for
513-17 the exemption under Section 5l of the Retailers' Occupation
514-18 Tax Act.
515-19 (b-6) Businesses designated as High Impact Businesses
516-20 pursuant to subdivision (a)(3)(E), or (a)(3)(E-5), (A)(3)(I),
517-21 or (a)(3)(J) of this Section shall qualify for the exemptions
518-22 described in Section 5l of the Retailers' Occupation Tax Act;
519-23 any business so designated as a High Impact Business being,
520-24 for purposes of this Section, a "Wind Energy Business".
521-25 (b-7) Beginning on January 1, 2021, businesses designated
522-26 as High Impact Businesses by the Department shall qualify for
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533-1 the High Impact Business construction jobs credit under
534-2 subsection (h-5) of Section 201 of the Illinois Income Tax Act
535-3 if the business meets the criteria set forth in subsection (i)
536-4 of this Section. The total aggregate amount of credits awarded
537-5 under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
538-6 shall not exceed $20,000,000 in any State fiscal year.
539-7 (c) High Impact Businesses located in federally designated
540-8 foreign trade zones or sub-zones are also eligible for
541-9 additional credits, exemptions and deductions as described in
542-10 the following Acts: Section 9-221 and Section 9-222.1 of the
543-11 Public Utilities Act; and subsection (g) of Section 201, and
544-12 Section 203 of the Illinois Income Tax Act.
545-13 (d) Except for businesses contemplated under subdivision
546-14 (a)(3)(E), (a)(3)(E-5), (a)(3)(G), or (a)(3)(H), (A)(3)(I), or
547-15 (a)(3)(J) of this Section, existing Illinois businesses which
548-16 apply for designation as a High Impact Business must provide
549-17 the Department with the prospective plan for which 1,500
550-18 full-time retained jobs would be eliminated in the event that
551-19 the business is not designated.
552-20 (e) Except for new businesses contemplated under
553-21 subdivision (a)(3)(E), subdivision (a)(3)(G), or subdivision
554-22 (a)(3)(H), or subdivision (a)(3)(J) of this Section, new
555-23 proposed facilities which apply for designation as High Impact
556-24 Business must provide the Department with proof of alternative
557-25 non-Illinois sites which would receive the proposed investment
558-26 and job creation in the event that the business is not
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569-1 designated as a High Impact Business.
570-2 (f) Except for businesses contemplated under subdivision
571-3 (a)(3)(E), subdivision (a)(3)(G), or subdivision (a)(3)(H), or
572-4 subdivision (a)(3)(J) of this Section, in the event that a
573-5 business is designated a High Impact Business and it is later
574-6 determined after reasonable notice and an opportunity for a
575-7 hearing as provided under the Illinois Administrative
576-8 Procedure Act, that the business would have placed in service
577-9 in qualified property the investments and created or retained
578-10 the requisite number of jobs without the benefits of the High
579-11 Impact Business designation, the Department shall be required
580-12 to immediately revoke the designation and notify the Director
581-13 of the Department of Revenue who shall begin proceedings to
582-14 recover all wrongfully exempted State taxes with interest. The
583-15 business shall also be ineligible for all State funded
584-16 Department programs for a period of 10 years.
585-17 (g) The Department shall revoke a High Impact Business
586-18 designation if the participating business fails to comply with
587-19 the terms and conditions of the designation.
588-20 (h) Prior to designating a business, the Department shall
589-21 provide the members of the General Assembly and Commission on
590-22 Government Forecasting and Accountability with a report
591-23 setting forth the terms and conditions of the designation and
592-24 guarantees that have been received by the Department in
593-25 relation to the proposed business being designated.
594-26 (i) High Impact Business construction jobs credit.
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605-1 Beginning on January 1, 2021, a High Impact Business may
606-2 receive a tax credit against the tax imposed under subsections
607-3 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
608-4 amount equal to 50% of the amount of the incremental income tax
609-5 attributable to High Impact Business construction jobs credit
610-6 employees employed in the course of completing a High Impact
611-7 Business construction jobs project. However, the High Impact
612-8 Business construction jobs credit may equal 75% of the amount
613-9 of the incremental income tax attributable to High Impact
614-10 Business construction jobs credit employees if the High Impact
615-11 Business construction jobs credit project is located in an
616-12 underserved area.
617-13 The Department shall certify to the Department of Revenue:
618-14 (1) the identity of taxpayers that are eligible for the High
619-15 Impact Business construction jobs credit; and (2) the amount
620-16 of High Impact Business construction jobs credits that are
621-17 claimed pursuant to subsection (h-5) of Section 201 of the
622-18 Illinois Income Tax Act in each taxable year.
623-19 As used in this subsection (i):
624-20 "High Impact Business construction jobs credit" means an
625-21 amount equal to 50% (or 75% if the High Impact Business
626-22 construction project is located in an underserved area) of the
627-23 incremental income tax attributable to High Impact Business
628-24 construction job employees. The total aggregate amount of
629-25 credits awarded under the Blue Collar Jobs Act (Article 20 of
630-26 Public Act 101-9) shall not exceed $20,000,000 in any State
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641-1 fiscal year
642-2 "High Impact Business construction job employee" means a
643-3 laborer or worker who is employed by a contractor or
644-4 subcontractor in the actual construction work on the site of a
645-5 High Impact Business construction job project.
646-6 "High Impact Business construction jobs project" means
647-7 building a structure or building or making improvements of any
648-8 kind to real property, undertaken and commissioned by a
649-9 business that was designated as a High Impact Business by the
650-10 Department. The term "High Impact Business construction jobs
651-11 project" does not include the routine operation, routine
652-12 repair, or routine maintenance of existing structures,
653-13 buildings, or real property.
654-14 "Incremental income tax" means the total amount withheld
655-15 during the taxable year from the compensation of High Impact
656-16 Business construction job employees.
657-17 "Underserved area" means a geographic area that meets one
658-18 or more of the following conditions:
659-19 (1) the area has a poverty rate of at least 20%
660-20 according to the latest American Community Survey;
661-21 (2) 35% or more of the families with children in the
662-22 area are living below 130% of the poverty line, according
663-23 to the latest American Community Survey;
664-24 (3) at least 20% of the households in the area receive
665-25 assistance under the Supplemental Nutrition Assistance
666-26 Program (SNAP); or
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677-1 (4) the area has an average unemployment rate, as
678-2 determined by the Illinois Department of Employment
679-3 Security, that is more than 120% of the national
680-4 unemployment average, as determined by the U.S. Department
681-5 of Labor, for a period of at least 2 consecutive calendar
682-6 years preceding the date of the application.
683-7 (j) (Blank).
684-8 (j-5) Annually, until construction is completed, a company
685-9 seeking High Impact Business Construction Job credits shall
686-10 submit a report that, at a minimum, describes the projected
687-11 project scope, timeline, and anticipated budget. Once the
688-12 project has commenced, the annual report shall include actual
689-13 data for the prior year as well as projections for each
690-14 additional year through completion of the project. The
691-15 Department shall issue detailed reporting guidelines
692-16 prescribing the requirements of construction-related reports.
693-17 In order to receive credit for construction expenses, the
694-18 company must provide the Department with evidence that a
695-19 certified third-party executed an Agreed-Upon Procedure (AUP)
696-20 verifying the construction expenses or accept the standard
697-21 construction wage expense estimated by the Department.
698-22 Upon review of the final project scope, timeline, budget,
699-23 and AUP, the Department shall issue a tax credit certificate
700-24 reflecting a percentage of the total construction job wages
701-25 paid throughout the completion of the project.
702-26 (k) Upon 7 business days' notice, each taxpayer shall make
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713-1 available to each State agency and to federal, State, or local
714-2 law enforcement agencies and prosecutors for inspection and
715-3 copying at a location within this State during reasonable
716-4 hours, the report under subsection (j-5).
717-5 (l) The changes made to this Section by Public Act
718-6 102-1125, other than the changes in subsection (a), apply to
719-7 High Impact Businesses that submit applications on or after
720-8 February 3, 2023 (the effective date of Public Act 102-1125).
721-9 (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
722-10 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
723-11 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
724-12 eff. 6-7-23; 103-561, eff. 1-1-24; 103-595, eff. 6-26-24;
725-13 103-605, eff. 7-1-24.)
726-14 Section 55. The Energy Community Reinvestment Act is
727-15 amended by changing Section 10-20 as follows:
728-16 (20 ILCS 735/10-20)
729-17 (Section scheduled to be repealed on September 15, 2045)
730-18 Sec. 10-20. Energy Transition Community Grants.
731-19 (a) Subject to appropriation, the Department shall
732-20 establish an Energy Transition Community Grant Program to
733-21 award grants to promote economic development in eligible
734-22 communities.
735-23 (b) Funds shall be made available from the Energy
736-24 Transition Assistance Fund to the Department to provide these
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747-1 grants.
748-2 (c) Communities eligible to receive these grants must meet
749-3 one or more of the following:
750-4 (1) the area contains a fossil fuel or nuclear power
751-5 plant that was retired from service or has significantly
752-6 reduced service within 6 years before the application for
753-7 designation or will be retired or have service
754-8 significantly reduced within 6 years following the
755-9 application for designation;
756-10 (2) the area contains a coal mine that was closed or
757-11 had operations significantly reduced within 6 years before
758-12 the application for designation or is anticipated to be
759-13 closed or have operations significantly reduced within 6
760-14 years following the application for designation; or
761-15 (3) the area contains a nuclear power plant that was
762-16 decommissioned, but continued storing nuclear waste before
763-17 the effective date of this Act.
764-18 (d) Local units of governments in eligible areas may join
765-19 with any other local unit of government, economic development
766-20 organization, local educational institutions, community-based
767-21 groups, or with any number or combination thereof to apply for
768-22 the Energy Transition Community Grant.
769-23 (e) To receive grant funds, an eligible community must
770-24 submit an application to the Department, using a form
771-25 developed by the Department.
772-26 (f) For grants awarded to counties or other entities that
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783-1 are not the city that hosts or has hosted the investor-owned
784-2 electric generating plant, a resolution of support for the
785-3 project from the city or cities that hosts or has hosted the
786-4 investor-owned electric generating plant is required to be
787-5 submitted with the application.
788-6 (g) Grants must be used to plan for or address the economic
789-7 and social impact on the community or region of plant
790-8 retirement or transition.
791-9 (h) Project applications shall include community input and
792-10 consultation with a diverse set of stakeholders, including,
793-11 but not limited to: Regional Planning Councils, where
794-12 applicable; economic development organizations; low-income or
795-13 environmental justice communities; educational institutions;
796-14 elected and appointed officials; organizations representing
797-15 workers; and other relevant organizations.
798-16 (i) Grant costs are authorized to procure third-party
799-17 vendors for grant writing and implementation costs, including
800-18 for guidance and opportunities to apply for additional
801-19 federal, State, local, and private funding resources. If the
802-20 application is approved for pre-award, one-time reimbursable
803-21 costs to apply for the Energy Transition Community Grant are
804-22 authorized up to 3% of the award.
805-23 (j) Units of local government that are taxing authorities
806-24 for a nuclear plant that was decommissioned before January 1,
807-25 2021 shall receive grants in proportional shares of $15 per
808-26 kilogram of spent nuclear fuel stored at such a facility, less
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819-1 any payments made to such communities from the federal
820-2 government based on the amount of waste stored at a
821-3 decommissioned nuclear plant and any property tax payments.
822-4 75% of grant funds received by taxing authorities must be used
823-5 for property tax abatement purposes.
824-6 (Source: P.A. 102-662, eff. 9-15-21.)
825-7 Section 60. The Illinois Power Agency Act is amended by
826-8 changing Sections 1-56 and 1-75 as follows:
827-9 (20 ILCS 3855/1-56)
828-10 Sec. 1-56. Illinois Power Agency Renewable Energy
829-11 Resources Fund; Illinois Solar for All Program.
830-12 (a) The Illinois Power Agency Renewable Energy Resources
831-13 Fund is created as a special fund in the State treasury.
832-14 (b) The Illinois Power Agency Renewable Energy Resources
833-15 Fund shall be administered by the Agency as described in this
834-16 subsection (b), provided that the changes to this subsection
835-17 (b) made by Public Act 99-906 shall not interfere with
836-18 existing contracts under this Section.
837-19 (1) The Illinois Power Agency Renewable Energy
838-20 Resources Fund shall be used to purchase renewable energy
839-21 credits according to any approved procurement plan
840-22 developed by the Agency prior to June 1, 2017.
841-23 (2) The Illinois Power Agency Renewable Energy
842-24 Resources Fund shall also be used to create the Illinois
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853-1 Solar for All Program, which provides incentives for
854-2 low-income distributed generation and community solar
855-3 projects, and other associated approved expenditures. The
856-4 objectives of the Illinois Solar for All Program are to
857-5 bring photovoltaics to low-income communities in this
858-6 State in a manner that maximizes the development of new
859-7 photovoltaic generating facilities, to create a long-term,
860-8 low-income solar marketplace throughout this State, to
861-9 integrate, through interaction with stakeholders, with
862-10 existing energy efficiency initiatives, and to minimize
863-11 administrative costs. The Illinois Solar for All Program
864-12 shall be implemented in a manner that seeks to minimize
865-13 administrative costs, and maximize efficiencies and
866-14 synergies available through coordination with similar
867-15 initiatives, including the Adjustable Block program
868-16 described in subparagraphs (K) through (M) of paragraph
869-17 (1) of subsection (c) of Section 1-75, energy efficiency
870-18 programs, job training programs, and community action
871-19 agencies. The Agency shall strive to ensure that renewable
872-20 energy credits procured through the Illinois Solar for All
873-21 Program and each of its subprograms are purchased from
874-22 projects across the breadth of low-income and
875-23 environmental justice communities in Illinois, including
876-24 both urban and rural communities, are not concentrated in
877-25 a few communities, and do not exclude particular
878-26 low-income or environmental justice communities. The
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889-1 Agency shall include a description of its proposed
890-2 approach to the design, administration, implementation and
891-3 evaluation of the Illinois Solar for All Program, as part
892-4 of the long-term renewable resources procurement plan
893-5 authorized by subsection (c) of Section 1-75 of this Act,
894-6 and the program shall be designed to grow the low-income
895-7 solar market. The Agency or utility, as applicable, shall
896-8 purchase renewable energy credits from the (i)
897-9 photovoltaic distributed renewable energy generation
898-10 projects and (ii) community solar projects that are
899-11 procured under procurement processes authorized by the
900-12 long-term renewable resources procurement plans approved
901-13 by the Commission.
902-14 The Illinois Solar for All Program shall include the
903-15 program offerings described in subparagraphs (A) through
904-16 (E) of this paragraph (2), which the Agency shall
905-17 implement through contracts with third-party providers
906-18 and, subject to appropriation, pay the approximate amounts
907-19 identified using monies available in the Illinois Power
908-20 Agency Renewable Energy Resources Fund. Each contract that
909-21 provides for the installation of solar facilities shall
910-22 provide that the solar facilities will produce energy and
911-23 economic benefits, at a level determined by the Agency to
912-24 be reasonable, for the participating low-income customers.
913-25 The monies available in the Illinois Power Agency
914-26 Renewable Energy Resources Fund and not otherwise
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925-1 committed to contracts executed under subsection (i) of
926-2 this Section, as well as, in the case of the programs
927-3 described under subparagraphs (A) through (E) of this
928-4 paragraph (2), funding authorized pursuant to subparagraph
929-5 (O) of paragraph (1) of subsection (c) of Section 1-75 of
930-6 this Act, shall initially be allocated among the programs
931-7 described in this paragraph (2), as follows: 35% of these
932-8 funds shall be allocated to programs described in
933-9 subparagraphs (A) and (E) of this paragraph (2), 40% of
934-10 these funds shall be allocated to programs described in
935-11 subparagraph (B) of this paragraph (2), and 25% of these
936-12 funds shall be allocated to programs described in
937-13 subparagraph (C) of this paragraph (2). The allocation of
938-14 funds among subparagraphs (A), (B), (C), and (E) of this
939-15 paragraph (2) may be changed if the Agency, after
940-16 receiving input through a stakeholder process, determines
941-17 incentives in subparagraphs (A), (B), (C), or (E) of this
942-18 paragraph (2) have not been adequately subscribed to fully
943-19 utilize available Illinois Solar for All Program funds.
944-20 Contracts that will be paid with funds in the Illinois
945-21 Power Agency Renewable Energy Resources Fund shall be
946-22 executed by the Agency. Contracts that will be paid with
947-23 funds collected by an electric utility shall be executed
948-24 by the electric utility.
949-25 Contracts under the Illinois Solar for All Program
950-26 shall include an approach, as set forth in the long-term
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961-1 renewable resources procurement plans, to ensure the
962-2 wholesale market value of the energy is credited to
963-3 participating low-income customers or organizations and to
964-4 ensure tangible economic benefits flow directly to program
965-5 participants, except in the case of low-income
966-6 multi-family housing where the low-income customer does
967-7 not directly pay for energy. Priority shall be given to
968-8 projects that demonstrate meaningful involvement of
969-9 low-income community members in designing the initial
970-10 proposals. Acceptable proposals to implement projects must
971-11 demonstrate the applicant's ability to conduct initial
972-12 community outreach, education, and recruitment of
973-13 low-income participants in the community. Projects must
974-14 include job training opportunities if available, with the
975-15 specific level of trainee usage to be determined through
976-16 the Agency's long-term renewable resources procurement
977-17 plan, and the Illinois Solar for All Program Administrator
978-18 shall coordinate with the job training programs described
979-19 in paragraph (1) of subsection (a) of Section 16-108.12 of
980-20 the Public Utilities Act and in the Energy Transition Act.
981-21 The Agency shall make every effort to ensure that
982-22 small and emerging businesses, particularly those located
983-23 in low-income and environmental justice communities, are
984-24 able to participate in the Illinois Solar for All Program.
985-25 These efforts may include, but shall not be limited to,
986-26 proactive support from the program administrator,
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997-1 different or preferred access to subprograms and
998-2 administrator-identified customers or grassroots
999-3 education provider-identified customers, and different
1000-4 incentive levels. The Agency shall report on progress and
1001-5 barriers to participation of small and emerging businesses
1002-6 in the Illinois Solar for All Program at least once a year.
1003-7 The report shall be made available on the Agency's website
1004-8 and, in years when the Agency is updating its long-term
1005-9 renewable resources procurement plan, included in that
1006-10 Plan.
1007-11 (A) Low-income single-family and small multifamily
1008-12 solar incentive. This program will provide incentives
1009-13 to low-income customers, either directly or through
1010-14 solar providers, to increase the participation of
1011-15 low-income households in photovoltaic on-site
1012-16 distributed generation at residential buildings
1013-17 containing one to 4 units. Companies participating in
1014-18 this program that install solar panels shall commit to
1015-19 hiring job trainees for a portion of their low-income
1016-20 installations, and an administrator shall facilitate
1017-21 partnering the companies that install solar panels
1018-22 with entities that provide solar panel installation
1019-23 job training. It is a goal of this program that a
1020-24 minimum of 25% of the incentives for this program be
1021-25 allocated to projects located within environmental
1022-26 justice communities. Contracts entered into under this
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1033-1 paragraph may be entered into with an entity that will
1034-2 develop and administer the program and shall also
1035-3 include contracts for renewable energy credits from
1036-4 the photovoltaic distributed generation that is the
1037-5 subject of the program, as set forth in the long-term
1038-6 renewable resources procurement plan. Additionally:
1039-7 (i) The Agency shall reserve a portion of this
1040-8 program for projects that promote energy
1041-9 sovereignty through ownership of projects by
1042-10 low-income households, not-for-profit
1043-11 organizations providing services to low-income
1044-12 households, affordable housing owners, community
1045-13 cooperatives, or community-based limited liability
1046-14 companies providing services to low-income
1047-15 households. Projects that feature energy ownership
1048-16 should ensure that local people have control of
1049-17 the project and reap benefits from the project
1050-18 over and above energy bill savings. The Agency may
1051-19 consider the inclusion of projects that promote
1052-20 ownership over time or that involve partial
1053-21 project ownership by communities, as promoting
1054-22 energy sovereignty. Incentives for projects that
1055-23 promote energy sovereignty may be higher than
1056-24 incentives for equivalent projects that do not
1057-25 promote energy sovereignty under this same
1058-26 program.
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1069-1 (ii) Through its long-term renewable resources
1070-2 procurement plan, the Agency shall consider
1071-3 additional program and contract requirements to
1072-4 ensure faithful compliance by applicants
1073-5 benefiting from preferences for projects
1074-6 designated to promote energy sovereignty. The
1075-7 Agency shall make every effort to enable solar
1076-8 providers already participating in the Adjustable
1077-9 Block Program under subparagraph (K) of paragraph
1078-10 (1) of subsection (c) of Section 1-75 of this Act,
1079-11 and particularly solar providers developing
1080-12 projects under item (i) of subparagraph (K) of
1081-13 paragraph (1) of subsection (c) of Section 1-75 of
1082-14 this Act to easily participate in the Low-Income
1083-15 Distributed Generation Incentive program described
1084-16 under this subparagraph (A), and vice versa. This
1085-17 effort may include, but shall not be limited to,
1086-18 utilizing similar or the same application systems
1087-19 and processes, similar or the same forms and
1088-20 formats of communication, and providing active
1089-21 outreach to companies participating in one program
1090-22 but not the other. The Agency shall report on
1091-23 efforts made to encourage this cross-participation
1092-24 in its long-term renewable resources procurement
1093-25 plan.
1094-26 (B) Low-Income Community Solar Project Initiative.
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1105-1 Incentives shall be offered to low-income customers,
1106-2 either directly or through developers, to increase the
1107-3 participation of low-income subscribers of community
1108-4 solar projects. The developer of each project shall
1109-5 identify its partnership with community stakeholders
1110-6 regarding the location, development, and participation
1111-7 in the project, provided that nothing shall preclude a
1112-8 project from including an anchor tenant that does not
1113-9 qualify as low-income. Companies participating in this
1114-10 program that develop or install solar projects shall
1115-11 commit to hiring job trainees for a portion of their
1116-12 low-income installations, and an administrator shall
1117-13 facilitate partnering the companies that install solar
1118-14 projects with entities that provide solar installation
1119-15 and related job training. It is a goal of this program
1120-16 that a minimum of 25% of the incentives for this
1121-17 program be allocated to community photovoltaic
1122-18 projects in environmental justice communities. The
1123-19 Agency shall reserve a portion of this program for
1124-20 projects that promote energy sovereignty through
1125-21 ownership of projects by low-income households,
1126-22 not-for-profit organizations providing services to
1127-23 low-income households, affordable housing owners, or
1128-24 community-based limited liability companies providing
1129-25 services to low-income households. Projects that
1130-26 feature energy ownership should ensure that local
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1141-1 people have control of the project and reap benefits
1142-2 from the project over and above energy bill savings.
1143-3 The Agency may consider the inclusion of projects that
1144-4 promote ownership over time or that involve partial
1145-5 project ownership by communities, as promoting energy
1146-6 sovereignty. Incentives for projects that promote
1147-7 energy sovereignty may be higher than incentives for
1148-8 equivalent projects that do not promote energy
1149-9 sovereignty under this same program. Contracts entered
1150-10 into under this paragraph may be entered into with
1151-11 developers and shall also include contracts for
1152-12 renewable energy credits related to the program.
1153-13 (C) Incentives for non-profits and public
1154-14 facilities. Under this program funds shall be used to
1155-15 support on-site photovoltaic distributed renewable
1156-16 energy generation devices to serve the load associated
1157-17 with not-for-profit customers and to support
1158-18 photovoltaic distributed renewable energy generation
1159-19 that uses photovoltaic technology to serve the load
1160-20 associated with public sector customers taking service
1161-21 at public buildings. Companies participating in this
1162-22 program that develop or install solar projects shall
1163-23 commit to hiring job trainees for a portion of their
1164-24 low-income installations, and an administrator shall
1165-25 facilitate partnering the companies that install solar
1166-26 projects with entities that provide solar installation
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1177-1 and related job training. Through its long-term
1178-2 renewable resources procurement plan, the Agency shall
1179-3 consider additional program and contract requirements
1180-4 to ensure faithful compliance by applicants benefiting
1181-5 from preferences for projects designated to promote
1182-6 energy sovereignty. It is a goal of this program that
1183-7 at least 25% of the incentives for this program be
1184-8 allocated to projects located in environmental justice
1185-9 communities. Contracts entered into under this
1186-10 paragraph may be entered into with an entity that will
1187-11 develop and administer the program or with developers
1188-12 and shall also include contracts for renewable energy
1189-13 credits related to the program.
1190-14 (D) (Blank).
1191-15 (E) Low-income large multifamily solar incentive.
1192-16 This program shall provide incentives to low-income
1193-17 customers, either directly or through solar providers,
1194-18 to increase the participation of low-income households
1195-19 in photovoltaic on-site distributed generation at
1196-20 residential buildings with 5 or more units. Companies
1197-21 participating in this program that develop or install
1198-22 solar projects shall commit to hiring job trainees for
1199-23 a portion of their low-income installations, and an
1200-24 administrator shall facilitate partnering the
1201-25 companies that install solar projects with entities
1202-26 that provide solar installation and related job
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1213-1 training. It is a goal of this program that a minimum
1214-2 of 25% of the incentives for this program be allocated
1215-3 to projects located within environmental justice
1216-4 communities. The Agency shall reserve a portion of
1217-5 this program for projects that promote energy
1218-6 sovereignty through ownership of projects by
1219-7 low-income households, not-for-profit organizations
1220-8 providing services to low-income households,
1221-9 affordable housing owners, or community-based limited
1222-10 liability companies providing services to low-income
1223-11 households. Projects that feature energy ownership
1224-12 should ensure that local people have control of the
1225-13 project and reap benefits from the project over and
1226-14 above energy bill savings. The Agency may consider the
1227-15 inclusion of projects that promote ownership over time
1228-16 or that involve partial project ownership by
1229-17 communities, as promoting energy sovereignty.
1230-18 Incentives for projects that promote energy
1231-19 sovereignty may be higher than incentives for
1232-20 equivalent projects that do not promote energy
1233-21 sovereignty under this same program.
1234-22 The requirement that a qualified person, as defined in
1235-23 paragraph (1) of subsection (i) of this Section, install
1236-24 photovoltaic devices does not apply to the Illinois Solar
1237-25 for All Program described in this subsection (b).
1238-26 In addition to the programs outlined in paragraphs (A)
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1249-1 through (E), the Agency and other parties may propose
1250-2 additional programs through the Long-Term Renewable
1251-3 Resources Procurement Plan developed and approved under
1252-4 paragraph (5) of subsection (b) of Section 16-111.5 of the
1253-5 Public Utilities Act. Additional programs may target
1254-6 market segments not specified above and may also include
1255-7 incentives targeted to increase the uptake of
1256-8 nonphotovoltaic technologies by low-income customers,
1257-9 including energy storage paired with photovoltaics, if the
1258-10 Commission determines that the Illinois Solar for All
1259-11 Program would provide greater benefits to the public
1260-12 health and well-being of low-income residents through also
1261-13 supporting that additional program versus supporting
1262-14 programs already authorized.
1263-15 (3) Costs associated with the Illinois Solar for All
1264-16 Program and its components described in paragraph (2) of
1265-17 this subsection (b), including, but not limited to, costs
1266-18 associated with procuring experts, consultants, and the
1267-19 program administrator referenced in this subsection (b)
1268-20 and related incremental costs, costs related to income
1269-21 verification and facilitating customer participation in
1270-22 the program, and costs related to the evaluation of the
1271-23 Illinois Solar for All Program, may be paid for using
1272-24 monies in the Illinois Power Agency Renewable Energy
1273-25 Resources Fund, and funds allocated pursuant to
1274-26 subparagraph (O) of paragraph (1) of subsection (c) of
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1285-1 Section 1-75, but the Agency or program administrator
1286-2 shall strive to minimize costs in the implementation of
1287-3 the program. The Agency or contracting electric utility
1288-4 shall purchase renewable energy credits from generation
1289-5 that is the subject of a contract under subparagraphs (A)
1290-6 through (E) of paragraph (2) of this subsection (b), and
1291-7 may pay for such renewable energy credits through an
1292-8 upfront payment per installed kilowatt of nameplate
1293-9 capacity paid once the device is interconnected at the
1294-10 distribution system level of the interconnecting utility
1295-11 and verified as energized. Payments for renewable energy
1296-12 credits shall be in exchange for all renewable energy
1297-13 credits generated by the system during the first 15 years
1298-14 of operation and shall be structured to overcome barriers
1299-15 to participation in the solar market by the low-income
1300-16 community. The incentives provided for in this Section may
1301-17 be implemented through the pricing of renewable energy
1302-18 credits where the prices paid for the credits are higher
1303-19 than the prices from programs offered under subsection (c)
1304-20 of Section 1-75 of this Act to account for the additional
1305-21 capital necessary to successfully access targeted market
1306-22 segments. The Agency or contracting electric utility shall
1307-23 retire any renewable energy credits purchased under this
1308-24 program and the credits shall count toward the obligation
1309-25 under subsection (c) of Section 1-75 of this Act for the
1310-26 electric utility to which the project is interconnected,
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1321-1 if applicable.
1322-2 The Agency shall direct that up to 5% of the funds
1323-3 available under the Illinois Solar for All Program to
1324-4 community-based groups and other qualifying organizations
1325-5 to assist in community-driven education efforts related to
1326-6 the Illinois Solar for All Program, including general
1327-7 energy education, job training program outreach efforts,
1328-8 and other activities deemed to be qualified by the Agency.
1329-9 Grassroots education funding shall not be used to support
1330-10 the marketing by solar project development firms and
1331-11 organizations, unless such education provides equal
1332-12 opportunities for all applicable firms and organizations.
1333-13 (4) The Agency shall, consistent with the requirements
1334-14 of this subsection (b), propose the Illinois Solar for All
1335-15 Program terms, conditions, and requirements, including the
1336-16 prices to be paid for renewable energy credits, and which
1337-17 prices may be determined through a formula, through the
1338-18 development, review, and approval of the Agency's
1339-19 long-term renewable resources procurement plan described
1340-20 in subsection (c) of Section 1-75 of this Act and Section
1341-21 16-111.5 of the Public Utilities Act. In the course of the
1342-22 Commission proceeding initiated to review and approve the
1343-23 plan, including the Illinois Solar for All Program
1344-24 proposed by the Agency, a party may propose an additional
1345-25 low-income solar or solar incentive program, or
1346-26 modifications to the programs proposed by the Agency, and
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1357-1 the Commission may approve an additional program, or
1358-2 modifications to the Agency's proposed program, if the
1359-3 additional or modified program more effectively maximizes
1360-4 the benefits to low-income customers after taking into
1361-5 account all relevant factors, including, but not limited
1362-6 to, the extent to which a competitive market for
1363-7 low-income solar has developed. Following the Commission's
1364-8 approval of the Illinois Solar for All Program, the Agency
1365-9 or a party may propose adjustments to the program terms,
1366-10 conditions, and requirements, including the price offered
1367-11 to new systems, to ensure the long-term viability and
1368-12 success of the program. The Commission shall review and
1369-13 approve any modifications to the program through the plan
1370-14 revision process described in Section 16-111.5 of the
1371-15 Public Utilities Act.
1372-16 (5) The Agency shall issue a request for
1373-17 qualifications for a third-party program administrator or
1374-18 administrators to administer all or a portion of the
1375-19 Illinois Solar for All Program. The third-party program
1376-20 administrator shall be chosen through a competitive bid
1377-21 process based on selection criteria and requirements
1378-22 developed by the Agency, including, but not limited to,
1379-23 experience in administering low-income energy programs and
1380-24 overseeing statewide clean energy or energy efficiency
1381-25 services. If the Agency retains a program administrator or
1382-26 administrators to implement all or a portion of the
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1393-1 Illinois Solar for All Program, each administrator shall
1394-2 periodically submit reports to the Agency and Commission
1395-3 for each program that it administers, at appropriate
1396-4 intervals to be identified by the Agency in its long-term
1397-5 renewable resources procurement plan, provided that the
1398-6 reporting interval is at least quarterly. The third-party
1399-7 program administrator may be, but need not be, the same
1400-8 administrator as for the Adjustable Block program
1401-9 described in subparagraphs (K) through (M) of paragraph
1402-10 (1) of subsection (c) of Section 1-75. The Agency, through
1403-11 its long-term renewable resources procurement plan
1404-12 approval process, shall also determine if individual
1405-13 subprograms of the Illinois Solar for All Program are
1406-14 better served by a different or separate Program
1407-15 Administrator.
1408-16 The third-party administrator's responsibilities
1409-17 shall also include facilitating placement for graduates of
1410-18 Illinois-based renewable energy-specific job training
1411-19 programs, including the Clean Jobs Workforce Network
1412-20 Program and the Illinois Climate Works Preapprenticeship
1413-21 Program administered by the Department of Commerce and
1414-22 Economic Opportunity and programs administered under
1415-23 Section 16-108.12 of the Public Utilities Act. To increase
1416-24 the uptake of trainees by participating firms, the
1417-25 administrator shall also develop a web-based clearinghouse
1418-26 for information available to both job training program
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1429-1 graduates and firms participating, directly or indirectly,
1430-2 in Illinois solar incentive programs. The program
1431-3 administrator shall also coordinate its activities with
1432-4 entities implementing electric and natural gas
1433-5 income-qualified energy efficiency programs, including
1434-6 customer referrals to and from such programs, and connect
1435-7 prospective low-income solar customers with any existing
1436-8 deferred maintenance programs where applicable.
1437-9 (6) The long-term renewable resources procurement plan
1438-10 shall also provide for an independent evaluation of the
1439-11 Illinois Solar for All Program. At least every 2 years,
1440-12 the Agency shall select an independent evaluator to review
1441-13 and report on the Illinois Solar for All Program and the
1442-14 performance of the third-party program administrator of
1443-15 the Illinois Solar for All Program. The evaluation shall
1444-16 be based on objective criteria developed through a public
1445-17 stakeholder process. The process shall include feedback
1446-18 and participation from Illinois Solar for All Program
1447-19 stakeholders, including participants and organizations in
1448-20 environmental justice and historically underserved
1449-21 communities. The report shall include a summary of the
1450-22 evaluation of the Illinois Solar for All Program based on
1451-23 the stakeholder developed objective criteria. The report
1452-24 shall include the number of projects installed; the total
1453-25 installed capacity in kilowatts; the average cost per
1454-26 kilowatt of installed capacity to the extent reasonably
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1465-1 obtainable by the Agency; the number of jobs or job
1466-2 opportunities created; economic, social, and environmental
1467-3 benefits created; and the total administrative costs
1468-4 expended by the Agency and program administrator to
1469-5 implement and evaluate the program. The report shall be
1470-6 delivered to the Commission and posted on the Agency's
1471-7 website, and shall be used, as needed, to revise the
1472-8 Illinois Solar for All Program. The Commission shall also
1473-9 consider the results of the evaluation as part of its
1474-10 review of the long-term renewable resources procurement
1475-11 plan under subsection (c) of Section 1-75 of this Act.
1476-12 (7) If additional funding for the programs described
1477-13 in this subsection (b) is available under subsection (k)
1478-14 of Section 16-108 of the Public Utilities Act, then the
1479-15 Agency shall submit a procurement plan to the Commission
1480-16 no later than September 1, 2018, that proposes how the
1481-17 Agency will procure programs on behalf of the applicable
1482-18 utility. After notice and hearing, the Commission shall
1483-19 approve, or approve with modification, the plan no later
1484-20 than November 1, 2018.
1485-21 (8) As part of the development and update of the
1486-22 long-term renewable resources procurement plan authorized
1487-23 by subsection (c) of Section 1-75 of this Act, the Agency
1488-24 shall plan for: (A) actions to refer customers from the
1489-25 Illinois Solar for All Program to electric and natural gas
1490-26 income-qualified energy efficiency programs, and vice
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1501-1 versa, with the goal of increasing participation in both
1502-2 of these programs; (B) effective procedures for data
1503-3 sharing, as needed, to effectuate referrals between the
1504-4 Illinois Solar for All Program and both electric and
1505-5 natural gas income-qualified energy efficiency programs,
1506-6 including sharing customer information directly with the
1507-7 utilities, as needed and appropriate; and (C) efforts to
1508-8 identify any existing deferred maintenance programs for
1509-9 which prospective Solar for All Program customers may be
1510-10 eligible and connect prospective customers for whom
1511-11 deferred maintenance is or may be a barrier to solar
1512-12 installation to those programs.
1513-13 As used in this subsection (b), "low-income households"
1514-14 means persons and families whose income does not exceed 80% of
1515-15 area median income, adjusted for family size and revised every
1516-16 year 5 years.
1517-17 For the purposes of this subsection (b), the Agency shall
1518-18 define "environmental justice community" based on the
1519-19 methodologies and findings established by the Agency and the
1520-20 Administrator for the Illinois Solar for All Program in its
1521-21 initial long-term renewable resources procurement plan and as
1522-22 updated by the Agency and the Administrator for the Illinois
1523-23 Solar for All Program as part of the long-term renewable
1524-24 resources procurement plan update.
1525-25 (b-5) After the receipt of all payments required by
1526-26 Section 16-115D of the Public Utilities Act, no additional
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1537-1 funds shall be deposited into the Illinois Power Agency
1538-2 Renewable Energy Resources Fund unless directed by order of
1539-3 the Commission.
1540-4 (b-10) After the receipt of all payments required by
1541-5 Section 16-115D of the Public Utilities Act and payment in
1542-6 full of all contracts executed by the Agency under subsections
1543-7 (b) and (i) of this Section, if the balance of the Illinois
1544-8 Power Agency Renewable Energy Resources Fund is under $5,000,
1545-9 then the Fund shall be inoperative and any remaining funds and
1546-10 any funds submitted to the Fund after that date, shall be
1547-11 transferred to the Supplemental Low-Income Energy Assistance
1548-12 Fund for use in the Low-Income Home Energy Assistance Program,
1549-13 as authorized by the Energy Assistance Act.
1550-14 (b-15) The prevailing wage requirements set forth in the
1551-15 Prevailing Wage Act apply to each project that is undertaken
1552-16 pursuant to one or more of the programs of incentives and
1553-17 initiatives described in subsection (b) of this Section and
1554-18 for which a project application is submitted to the program
1555-19 after the effective date of this amendatory Act of the 103rd
1556-20 General Assembly, except (i) projects that serve single-family
1557-21 or multi-family residential buildings and (ii) projects with
1558-22 an aggregate capacity of less than 100 kilowatts that serve
1559-23 houses of worship. The Agency shall require verification that
1560-24 all construction performed on a project by the renewable
1561-25 energy credit delivery contract holder, its contractors, or
1562-26 its subcontractors relating to the construction of the
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1573-1 facility is performed by workers receiving an amount for that
1574-2 work that is greater than or equal to the general prevailing
1575-3 rate of wages as that term is defined in the Prevailing Wage
1576-4 Act, and the Agency may adjust renewable energy credit prices
1577-5 to account for increased labor costs.
1578-6 In this subsection (b-15), "house of worship" has the
1579-7 meaning given in subparagraph (Q) of paragraph (1) of
1580-8 subsection (c) of Section 1-75.
1581-9 (c) (Blank).
1582-10 (d) (Blank).
1583-11 (e) All renewable energy credits procured using monies
1584-12 from the Illinois Power Agency Renewable Energy Resources Fund
1585-13 shall be permanently retired.
1586-14 (f) The selection of one or more third-party program
1587-15 managers or administrators, the selection of the independent
1588-16 evaluator, and the procurement processes described in this
1589-17 Section are exempt from the requirements of the Illinois
1590-18 Procurement Code, under Section 20-10 of that Code.
1591-19 (g) All disbursements from the Illinois Power Agency
1592-20 Renewable Energy Resources Fund shall be made only upon
1593-21 warrants of the Comptroller drawn upon the Treasurer as
1594-22 custodian of the Fund upon vouchers signed by the Director or
1595-23 by the person or persons designated by the Director for that
1596-24 purpose. The Comptroller is authorized to draw the warrant
1597-25 upon vouchers so signed. The Treasurer shall accept all
1598-26 warrants so signed and shall be released from liability for
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1609-1 all payments made on those warrants.
1610-2 (h) The Illinois Power Agency Renewable Energy Resources
1611-3 Fund shall not be subject to sweeps, administrative charges,
1612-4 or chargebacks, including, but not limited to, those
1613-5 authorized under Section 8h of the State Finance Act, that
1614-6 would in any way result in the transfer of any funds from this
1615-7 Fund to any other fund of this State or in having any such
1616-8 funds utilized for any purpose other than the express purposes
1617-9 set forth in this Section.
1618-10 (h-5) The Agency may assess fees to each bidder to recover
1619-11 the costs incurred in connection with a procurement process
1620-12 held under this Section. Fees collected from bidders shall be
1621-13 deposited into the Renewable Energy Resources Fund.
1622-14 (i) Supplemental procurement process.
1623-15 (1) Within 90 days after June 30, 2014 (the effective
1624-16 date of Public Act 98-672), the Agency shall develop a
1625-17 one-time supplemental procurement plan limited to the
1626-18 procurement of renewable energy credits, if available,
1627-19 from new or existing photovoltaics, including, but not
1628-20 limited to, distributed photovoltaic generation. Nothing
1629-21 in this subsection (i) requires procurement of wind
1630-22 generation through the supplemental procurement.
1631-23 Renewable energy credits procured from new
1632-24 photovoltaics, including, but not limited to, distributed
1633-25 photovoltaic generation, under this subsection (i) must be
1634-26 procured from devices installed by a qualified person. In
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1645-1 its supplemental procurement plan, the Agency shall
1646-2 establish contractually enforceable mechanisms for
1647-3 ensuring that the installation of new photovoltaics is
1648-4 performed by a qualified person.
1649-5 For the purposes of this paragraph (1), "qualified
1650-6 person" means a person who performs installations of
1651-7 photovoltaics, including, but not limited to, distributed
1652-8 photovoltaic generation, and who: (A) has completed an
1653-9 apprenticeship as a journeyman electrician from a United
1654-10 States Department of Labor registered electrical
1655-11 apprenticeship and training program and received a
1656-12 certification of satisfactory completion; or (B) does not
1657-13 currently meet the criteria under clause (A) of this
1658-14 paragraph (1), but is enrolled in a United States
1659-15 Department of Labor registered electrical apprenticeship
1660-16 program, provided that the person is directly supervised
1661-17 by a person who meets the criteria under clause (A) of this
1662-18 paragraph (1); or (C) has obtained one of the following
1663-19 credentials in addition to attesting to satisfactory
1664-20 completion of at least 5 years or 8,000 hours of
1665-21 documented hands-on electrical experience: (i) a North
1666-22 American Board of Certified Energy Practitioners (NABCEP)
1667-23 Installer Certificate for Solar PV; (ii) an Underwriters
1668-24 Laboratories (UL) PV Systems Installer Certificate; (iii)
1669-25 an Electronics Technicians Association, International
1670-26 (ETAI) Level 3 PV Installer Certificate; or (iv) an
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1681-1 Associate in Applied Science degree from an Illinois
1682-2 Community College Board approved community college program
1683-3 in renewable energy or a distributed generation
1684-4 technology.
1685-5 For the purposes of this paragraph (1), "directly
1686-6 supervised" means that there is a qualified person who
1687-7 meets the qualifications under clause (A) of this
1688-8 paragraph (1) and who is available for supervision and
1689-9 consultation regarding the work performed by persons under
1690-10 clause (B) of this paragraph (1), including a final
1691-11 inspection of the installation work that has been directly
1692-12 supervised to ensure safety and conformity with applicable
1693-13 codes.
1694-14 For the purposes of this paragraph (1), "install"
1695-15 means the major activities and actions required to
1696-16 connect, in accordance with applicable building and
1697-17 electrical codes, the conductors, connectors, and all
1698-18 associated fittings, devices, power outlets, or
1699-19 apparatuses mounted at the premises that are directly
1700-20 involved in delivering energy to the premises' electrical
1701-21 wiring from the photovoltaics, including, but not limited
1702-22 to, to distributed photovoltaic generation.
1703-23 The renewable energy credits procured pursuant to the
1704-24 supplemental procurement plan shall be procured using up
1705-25 to $30,000,000 from the Illinois Power Agency Renewable
1706-26 Energy Resources Fund. The Agency shall not plan to use
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1717-1 funds from the Illinois Power Agency Renewable Energy
1718-2 Resources Fund in excess of the monies on deposit in such
1719-3 fund or projected to be deposited into such fund. The
1720-4 supplemental procurement plan shall ensure adequate,
1721-5 reliable, affordable, efficient, and environmentally
1722-6 sustainable renewable energy resources (including credits)
1723-7 at the lowest total cost over time, taking into account
1724-8 any benefits of price stability.
1725-9 To the extent available, 50% of the renewable energy
1726-10 credits procured from distributed renewable energy
1727-11 generation shall come from devices of less than 25
1728-12 kilowatts in nameplate capacity. Procurement of renewable
1729-13 energy credits from distributed renewable energy
1730-14 generation devices shall be done through multi-year
1731-15 contracts of no less than 5 years. The Agency shall create
1732-16 credit requirements for counterparties. In order to
1733-17 minimize the administrative burden on contracting
1734-18 entities, the Agency shall solicit the use of third
1735-19 parties to aggregate distributed renewable energy. These
1736-20 third parties shall enter into and administer contracts
1737-21 with individual distributed renewable energy generation
1738-22 device owners. An individual distributed renewable energy
1739-23 generation device owner shall have the ability to measure
1740-24 the output of his or her distributed renewable energy
1741-25 generation device.
1742-26 In developing the supplemental procurement plan, the
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1753-1 Agency shall hold at least one workshop open to the public
1754-2 within 90 days after June 30, 2014 (the effective date of
1755-3 Public Act 98-672) and shall consider any comments made by
1756-4 stakeholders or the public. Upon development of the
1757-5 supplemental procurement plan within this 90-day period,
1758-6 copies of the supplemental procurement plan shall be
1759-7 posted and made publicly available on the Agency's and
1760-8 Commission's websites. All interested parties shall have
1761-9 14 days following the date of posting to provide comment
1762-10 to the Agency on the supplemental procurement plan. All
1763-11 comments submitted to the Agency shall be specific,
1764-12 supported by data or other detailed analyses, and, if
1765-13 objecting to all or a portion of the supplemental
1766-14 procurement plan, accompanied by specific alternative
1767-15 wording or proposals. All comments shall be posted on the
1768-16 Agency's and Commission's websites. Within 14 days
1769-17 following the end of the 14-day review period, the Agency
1770-18 shall revise the supplemental procurement plan as
1771-19 necessary based on the comments received and file its
1772-20 revised supplemental procurement plan with the Commission
1773-21 for approval.
1774-22 (2) Within 5 days after the filing of the supplemental
1775-23 procurement plan at the Commission, any person objecting
1776-24 to the supplemental procurement plan shall file an
1777-25 objection with the Commission. Within 10 days after the
1778-26 filing, the Commission shall determine whether a hearing
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1789-1 is necessary. The Commission shall enter its order
1790-2 confirming or modifying the supplemental procurement plan
1791-3 within 90 days after the filing of the supplemental
1792-4 procurement plan by the Agency.
1793-5 (3) The Commission shall approve the supplemental
1794-6 procurement plan of renewable energy credits to be
1795-7 procured from new or existing photovoltaics, including,
1796-8 but not limited to, distributed photovoltaic generation,
1797-9 if the Commission determines that it will ensure adequate,
1798-10 reliable, affordable, efficient, and environmentally
1799-11 sustainable electric service in the form of renewable
1800-12 energy credits at the lowest total cost over time, taking
1801-13 into account any benefits of price stability.
1802-14 (4) The supplemental procurement process under this
1803-15 subsection (i) shall include each of the following
1804-16 components:
1805-17 (A) Procurement administrator. The Agency may
1806-18 retain a procurement administrator in the manner set
1807-19 forth in item (2) of subsection (a) of Section 1-75 of
1808-20 this Act to conduct the supplemental procurement or
1809-21 may elect to use the same procurement administrator
1810-22 administering the Agency's annual procurement under
1811-23 Section 1-75.
1812-24 (B) Procurement monitor. The procurement monitor
1813-25 retained by the Commission pursuant to Section
1814-26 16-111.5 of the Public Utilities Act shall:
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1825-1 (i) monitor interactions among the procurement
1826-2 administrator and bidders and suppliers;
1827-3 (ii) monitor and report to the Commission on
1828-4 the progress of the supplemental procurement
1829-5 process;
1830-6 (iii) provide an independent confidential
1831-7 report to the Commission regarding the results of
1832-8 the procurement events;
1833-9 (iv) assess compliance with the procurement
1834-10 plan approved by the Commission for the
1835-11 supplemental procurement process;
1836-12 (v) preserve the confidentiality of supplier
1837-13 and bidding information in a manner consistent
1838-14 with all applicable laws, rules, regulations, and
1839-15 tariffs;
1840-16 (vi) provide expert advice to the Commission
1841-17 and consult with the procurement administrator
1842-18 regarding issues related to procurement process
1843-19 design, rules, protocols, and policy-related
1844-20 matters;
1845-21 (vii) consult with the procurement
1846-22 administrator regarding the development and use of
1847-23 benchmark criteria, standard form contracts,
1848-24 credit policies, and bid documents; and
1849-25 (viii) perform, with respect to the
1850-26 supplemental procurement process, any other
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1861-1 procurement monitor duties specifically delineated
1862-2 within subsection (i) of this Section.
1863-3 (C) Solicitation, prequalification, and
1864-4 registration of bidders. The procurement administrator
1865-5 shall disseminate information to potential bidders to
1866-6 promote a procurement event, notify potential bidders
1867-7 that the procurement administrator may enter into a
1868-8 post-bid price negotiation with bidders that meet the
1869-9 applicable benchmarks, provide supply requirements,
1870-10 and otherwise explain the competitive procurement
1871-11 process. In addition to such other publication as the
1872-12 procurement administrator determines is appropriate,
1873-13 this information shall be posted on the Agency's and
1874-14 the Commission's websites. The procurement
1875-15 administrator shall also administer the
1876-16 prequalification process, including evaluation of
1877-17 credit worthiness, compliance with procurement rules,
1878-18 and agreement to the standard form contract developed
1879-19 pursuant to item (D) of this paragraph (4). The
1880-20 procurement administrator shall then identify and
1881-21 register bidders to participate in the procurement
1882-22 event.
1883-23 (D) Standard contract forms and credit terms and
1884-24 instruments. The procurement administrator, in
1885-25 consultation with the Agency, the Commission, and
1886-26 other interested parties and subject to Commission
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1897-1 oversight, shall develop and provide standard contract
1898-2 forms for the supplier contracts that meet generally
1899-3 accepted industry practices as well as include any
1900-4 applicable State of Illinois terms and conditions that
1901-5 are required for contracts entered into by an agency
1902-6 of the State of Illinois. Standard credit terms and
1903-7 instruments that meet generally accepted industry
1904-8 practices shall be similarly developed. Contracts for
1905-9 new photovoltaics shall include a provision attesting
1906-10 that the supplier will use a qualified person for the
1907-11 installation of the device pursuant to paragraph (1)
1908-12 of subsection (i) of this Section. The procurement
1909-13 administrator shall make available to the Commission
1910-14 all written comments it receives on the contract
1911-15 forms, credit terms, or instruments. If the
1912-16 procurement administrator cannot reach agreement with
1913-17 the parties as to the contract terms and conditions,
1914-18 the procurement administrator must notify the
1915-19 Commission of any disputed terms and the Commission
1916-20 shall resolve the dispute. The terms of the contracts
1917-21 shall not be subject to negotiation by winning
1918-22 bidders, and the bidders must agree to the terms of the
1919-23 contract in advance so that winning bids are selected
1920-24 solely on the basis of price.
1921-25 (E) Requests for proposals; competitive
1922-26 procurement process. The procurement administrator
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1933-1 shall design and issue requests for proposals to
1934-2 supply renewable energy credits in accordance with the
1935-3 supplemental procurement plan, as approved by the
1936-4 Commission. The requests for proposals shall set forth
1937-5 a procedure for sealed, binding commitment bidding
1938-6 with pay-as-bid settlement, and provision for
1939-7 selection of bids on the basis of price, provided,
1940-8 however, that no bid shall be accepted if it exceeds
1941-9 the benchmark developed pursuant to item (F) of this
1942-10 paragraph (4).
1943-11 (F) Benchmarks. Benchmarks for each product to be
1944-12 procured shall be developed by the procurement
1945-13 administrator in consultation with Commission staff,
1946-14 the Agency, and the procurement monitor for use in
1947-15 this supplemental procurement.
1948-16 (G) A plan for implementing contingencies in the
1949-17 event of supplier default, Commission rejection of
1950-18 results, or any other cause.
1951-19 (5) Within 2 business days after opening the sealed
1952-20 bids, the procurement administrator shall submit a
1953-21 confidential report to the Commission. The report shall
1954-22 contain the results of the bidding for each of the
1955-23 products along with the procurement administrator's
1956-24 recommendation for the acceptance and rejection of bids
1957-25 based on the price benchmark criteria and other factors
1958-26 observed in the process. The procurement monitor also
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1969-1 shall submit a confidential report to the Commission
1970-2 within 2 business days after opening the sealed bids. The
1971-3 report shall contain the procurement monitor's assessment
1972-4 of bidder behavior in the process as well as an assessment
1973-5 of the procurement administrator's compliance with the
1974-6 procurement process and rules. The Commission shall review
1975-7 the confidential reports submitted by the procurement
1976-8 administrator and procurement monitor and shall accept or
1977-9 reject the recommendations of the procurement
1978-10 administrator within 2 business days after receipt of the
1979-11 reports.
1980-12 (6) Within 3 business days after the Commission
1981-13 decision approving the results of a procurement event, the
1982-14 Agency shall enter into binding contractual arrangements
1983-15 with the winning suppliers using the standard form
1984-16 contracts.
1985-17 (7) The names of the successful bidders and the
1986-18 average of the winning bid prices for each contract type
1987-19 and for each contract term shall be made available to the
1988-20 public within 2 days after the supplemental procurement
1989-21 event. The Commission, the procurement monitor, the
1990-22 procurement administrator, the Agency, and all
1991-23 participants in the procurement process shall maintain the
1992-24 confidentiality of all other supplier and bidding
1993-25 information in a manner consistent with all applicable
1994-26 laws, rules, regulations, and tariffs. Confidential
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2005-1 information, including the confidential reports submitted
2006-2 by the procurement administrator and procurement monitor
2007-3 pursuant to this Section, shall not be made publicly
2008-4 available and shall not be discoverable by any party in
2009-5 any proceeding, absent a compelling demonstration of need,
2010-6 nor shall those reports be admissible in any proceeding
2011-7 other than one for law enforcement purposes.
2012-8 (8) The supplemental procurement provided in this
2013-9 subsection (i) shall not be subject to the requirements
2014-10 and limitations of subsections (c) and (d) of this
2015-11 Section.
2016-12 (9) Expenses incurred in connection with the
2017-13 procurement process held pursuant to this Section,
2018-14 including, but not limited to, the cost of developing the
2019-15 supplemental procurement plan, the procurement
2020-16 administrator, procurement monitor, and the cost of the
2021-17 retirement of renewable energy credits purchased pursuant
2022-18 to the supplemental procurement shall be paid for from the
2023-19 Illinois Power Agency Renewable Energy Resources Fund. The
2024-20 Agency shall enter into an interagency agreement with the
2025-21 Commission to reimburse the Commission for its costs
2026-22 associated with the procurement monitor for the
2027-23 supplemental procurement process.
2028-24 (Source: P.A. 102-662, eff. 9-15-21; 103-188, eff. 6-30-23;
2029-25 103-605, eff. 7-1-24.)
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2040-1 (20 ILCS 3855/1-75)
2041-2 Sec. 1-75. Planning and Procurement Bureau. The Planning
2042-3 and Procurement Bureau has the following duties and
2043-4 responsibilities:
2044-5 (a) The Planning and Procurement Bureau shall each year,
2045-6 beginning in 2008, develop procurement plans and conduct
2046-7 competitive procurement processes in accordance with the
2047-8 requirements of Section 16-111.5 of the Public Utilities Act
2048-9 for the eligible retail customers of electric utilities that
2049-10 on December 31, 2005 provided electric service to at least
2050-11 100,000 customers in Illinois. Beginning with the delivery
2051-12 year commencing on June 1, 2017, the Planning and Procurement
2052-13 Bureau shall develop plans and processes for the procurement
2053-14 of zero emission credits from zero emission facilities in
2054-15 accordance with the requirements of subsection (d-5) of this
2055-16 Section. Beginning on the effective date of this amendatory
2056-17 Act of the 102nd General Assembly, the Planning and
2057-18 Procurement Bureau shall develop plans and processes for the
2058-19 procurement of carbon mitigation credits from carbon-free
2059-20 energy resources in accordance with the requirements of
2060-21 subsection (d-10) of this Section. The Planning and
2061-22 Procurement Bureau shall also develop procurement plans and
2062-23 conduct competitive procurement processes in accordance with
2063-24 the requirements of Section 16-111.5 of the Public Utilities
2064-25 Act for the eligible retail customers of small
2065-26 multi-jurisdictional electric utilities that (i) on December
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2076-1 31, 2005 served less than 100,000 customers in Illinois and
2077-2 (ii) request a procurement plan for their Illinois
2078-3 jurisdictional load. This Section shall not apply to a small
2079-4 multi-jurisdictional utility until such time as a small
2080-5 multi-jurisdictional utility requests the Agency to prepare a
2081-6 procurement plan for their Illinois jurisdictional load. For
2082-7 the purposes of this Section, the term "eligible retail
2083-8 customers" has the same definition as found in Section
2084-9 16-111.5(a) of the Public Utilities Act.
2085-10 Beginning with the plan or plans to be implemented in the
2086-11 2017 delivery year, the Agency shall no longer include the
2087-12 procurement of renewable energy resources in the annual
2088-13 procurement plans required by this subsection (a), except as
2089-14 provided in subsection (q) of Section 16-111.5 of the Public
2090-15 Utilities Act, and shall instead develop a long-term renewable
2091-16 resources procurement plan in accordance with subsection (c)
2092-17 of this Section and Section 16-111.5 of the Public Utilities
2093-18 Act.
2094-19 In accordance with subsection (c-5) of this Section, the
2095-20 Planning and Procurement Bureau shall oversee the procurement
2096-21 by electric utilities that served more than 300,000 retail
2097-22 customers in this State as of January 1, 2019 of renewable
2098-23 energy credits from new utility-scale solar projects to be
2099-24 installed, along with energy storage facilities, at or
2100-25 adjacent to the sites of electric generating facilities that,
2101-26 as of January 1, 2016, burned coal as their primary fuel
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2113-2 (1) The Agency shall each year, beginning in 2008, as
2114-3 needed, issue a request for qualifications for experts or
2115-4 expert consulting firms to develop the procurement plans
2116-5 in accordance with Section 16-111.5 of the Public
2117-6 Utilities Act. In order to qualify an expert or expert
2118-7 consulting firm must have:
2119-8 (A) direct previous experience assembling
2120-9 large-scale power supply plans or portfolios for
2121-10 end-use customers;
2122-11 (B) an advanced degree in economics, mathematics,
2123-12 engineering, risk management, or a related area of
2124-13 study;
2125-14 (C) 10 years of experience in the electricity
2126-15 sector, including managing supply risk;
2127-16 (D) expertise in wholesale electricity market
2128-17 rules, including those established by the Federal
2129-18 Energy Regulatory Commission and regional transmission
2130-19 organizations;
2131-20 (E) expertise in credit protocols and familiarity
2132-21 with contract protocols;
2133-22 (F) adequate resources to perform and fulfill the
2134-23 required functions and responsibilities; and
2135-24 (G) the absence of a conflict of interest and
2136-25 inappropriate bias for or against potential bidders or
2137-26 the affected electric utilities.
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2148-1 (2) The Agency shall each year, as needed, issue a
2149-2 request for qualifications for a procurement administrator
2150-3 to conduct the competitive procurement processes in
2151-4 accordance with Section 16-111.5 of the Public Utilities
2152-5 Act. In order to qualify an expert or expert consulting
2153-6 firm must have:
2154-7 (A) direct previous experience administering a
2155-8 large-scale competitive procurement process;
2156-9 (B) an advanced degree in economics, mathematics,
2157-10 engineering, or a related area of study;
2158-11 (C) 10 years of experience in the electricity
2159-12 sector, including risk management experience;
2160-13 (D) expertise in wholesale electricity market
2161-14 rules, including those established by the Federal
2162-15 Energy Regulatory Commission and regional transmission
2163-16 organizations;
2164-17 (E) expertise in credit and contract protocols;
2165-18 (F) adequate resources to perform and fulfill the
2166-19 required functions and responsibilities; and
2167-20 (G) the absence of a conflict of interest and
2168-21 inappropriate bias for or against potential bidders or
2169-22 the affected electric utilities.
2170-23 (3) The Agency shall provide affected utilities and
2171-24 other interested parties with the lists of qualified
2172-25 experts or expert consulting firms identified through the
2173-26 request for qualifications processes that are under
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2184-1 consideration to develop the procurement plans and to
2185-2 serve as the procurement administrator. The Agency shall
2186-3 also provide each qualified expert's or expert consulting
2187-4 firm's response to the request for qualifications. All
2188-5 information provided under this subparagraph shall also be
2189-6 provided to the Commission. The Agency may provide by rule
2190-7 for fees associated with supplying the information to
2191-8 utilities and other interested parties. These parties
2192-9 shall, within 5 business days, notify the Agency in
2193-10 writing if they object to any experts or expert consulting
2194-11 firms on the lists. Objections shall be based on:
2195-12 (A) failure to satisfy qualification criteria;
2196-13 (B) identification of a conflict of interest; or
2197-14 (C) evidence of inappropriate bias for or against
2198-15 potential bidders or the affected utilities.
2199-16 The Agency shall remove experts or expert consulting
2200-17 firms from the lists within 10 days if there is a
2201-18 reasonable basis for an objection and provide the updated
2202-19 lists to the affected utilities and other interested
2203-20 parties. If the Agency fails to remove an expert or expert
2204-21 consulting firm from a list, an objecting party may seek
2205-22 review by the Commission within 5 days thereafter by
2206-23 filing a petition, and the Commission shall render a
2207-24 ruling on the petition within 10 days. There is no right of
2208-25 appeal of the Commission's ruling.
2209-26 (4) The Agency shall issue requests for proposals to
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2220-1 the qualified experts or expert consulting firms to
2221-2 develop a procurement plan for the affected utilities and
2222-3 to serve as procurement administrator.
2223-4 (5) The Agency shall select an expert or expert
2224-5 consulting firm to develop procurement plans based on the
2225-6 proposals submitted and shall award contracts of up to 5
2226-7 years to those selected.
2227-8 (6) The Agency shall select an expert or expert
2228-9 consulting firm, with approval of the Commission, to serve
2229-10 as procurement administrator based on the proposals
2230-11 submitted. If the Commission rejects, within 5 days, the
2231-12 Agency's selection, the Agency shall submit another
2232-13 recommendation within 3 days based on the proposals
2233-14 submitted. The Agency shall award a 5-year contract to the
2234-15 expert or expert consulting firm so selected with
2235-16 Commission approval.
2236-17 (b) The experts or expert consulting firms retained by the
2237-18 Agency shall, as appropriate, prepare procurement plans, and
2238-19 conduct a competitive procurement process as prescribed in
2239-20 Section 16-111.5 of the Public Utilities Act, to ensure
2240-21 adequate, reliable, affordable, efficient, and environmentally
2241-22 sustainable electric service at the lowest total cost over
2242-23 time, taking into account any benefits of price stability, for
2243-24 eligible retail customers of electric utilities that on
2244-25 December 31, 2005 provided electric service to at least
2245-26 100,000 customers in the State of Illinois, and for eligible
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2256-1 Illinois retail customers of small multi-jurisdictional
2257-2 electric utilities that (i) on December 31, 2005 served less
2258-3 than 100,000 customers in Illinois and (ii) request a
2259-4 procurement plan for their Illinois jurisdictional load.
2260-5 (c) Renewable portfolio standard.
2261-6 (1)(A) The Agency shall develop a long-term renewable
2262-7 resources procurement plan that shall include procurement
2263-8 programs and competitive procurement events necessary to
2264-9 meet the goals set forth in this subsection (c). The
2265-10 initial long-term renewable resources procurement plan
2266-11 shall be released for comment no later than 160 days after
2267-12 June 1, 2017 (the effective date of Public Act 99-906).
2268-13 The Agency shall review, and may revise on an expedited
2269-14 basis, the long-term renewable resources procurement plan
2270-15 at least every 2 years, which shall be conducted in
2271-16 conjunction with the procurement plan under Section
2272-17 16-111.5 of the Public Utilities Act to the extent
2273-18 practicable to minimize administrative expense. No later
2274-19 than 120 days after the effective date of this amendatory
2275-20 Act of the 103rd General Assembly, the Agency shall
2276-21 release for comment a revision to the long-term renewable
2277-22 resources procurement plan, updating elements of the most
2278-23 recently approved plan as needed to comply with this
2279-24 amendatory Act of the 103rd General Assembly, and any
2280-25 long-term renewable resources procurement plan update
2281-26 published by the Agency but not yet approved by the
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2292-1 Illinois Commerce Commission shall be withdrawn. The
2293-2 long-term renewable resources procurement plans shall be
2294-3 subject to review and approval by the Commission under
2295-4 Section 16-111.5 of the Public Utilities Act.
2296-5 (B) Subject to subparagraph (F) of this paragraph (1),
2297-6 the long-term renewable resources procurement plan shall
2298-7 attempt to meet the goals for procurement of renewable
2299-8 energy credits at levels of at least the following overall
2300-9 percentages: 13% by the 2017 delivery year; increasing by
2301-10 at least 1.5% each delivery year thereafter to at least
2302-11 25% by the 2025 delivery year; increasing by at least 3%
2303-12 each delivery year thereafter to at least 40% by the 2030
2304-13 delivery year, and continuing at no less than 40% for each
2305-14 delivery year thereafter. The Agency shall attempt to
2306-15 procure 50% by delivery year 2040. The Agency shall
2307-16 determine the annual increase between delivery year 2030
2308-17 and delivery year 2040, if any, taking into account energy
2309-18 demand, other energy resources, and other public policy
2310-19 goals. In the event of a conflict between these goals and
2311-20 the new wind, new photovoltaic, and hydropower procurement
2312-21 requirements described in items (i) through (iii) of
2313-22 subparagraph (C) of this paragraph (1), the long-term plan
2314-23 shall prioritize compliance with the new wind, new
2315-24 photovoltaic, and hydropower procurement requirements
2316-25 described in items (i) through (iii) of subparagraph (C)
2317-26 of this paragraph (1) over the annual percentage targets
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2328-1 described in this subparagraph (B). The Agency shall not
2329-2 comply with the annual percentage targets described in
2330-3 this subparagraph (B) by procuring renewable energy
2331-4 credits that are unlikely to lead to the development of
2332-5 new renewable resources or new, modernized, or retooled
2333-6 hydropower facilities.
2334-7 For the delivery year beginning June 1, 2017, the
2335-8 procurement plan shall attempt to include, subject to the
2336-9 prioritization outlined in this subparagraph (B),
2337-10 cost-effective renewable energy resources equal to at
2338-11 least 13% of each utility's load for eligible retail
2339-12 customers and 13% of the applicable portion of each
2340-13 utility's load for retail customers who are not eligible
2341-14 retail customers, which applicable portion shall equal 50%
2342-15 of the utility's load for retail customers who are not
2343-16 eligible retail customers on February 28, 2017.
2344-17 For the delivery year beginning June 1, 2018, the
2345-18 procurement plan shall attempt to include, subject to the
2346-19 prioritization outlined in this subparagraph (B),
2347-20 cost-effective renewable energy resources equal to at
2348-21 least 14.5% of each utility's load for eligible retail
2349-22 customers and 14.5% of the applicable portion of each
2350-23 utility's load for retail customers who are not eligible
2351-24 retail customers, which applicable portion shall equal 75%
2352-25 of the utility's load for retail customers who are not
2353-26 eligible retail customers on February 28, 2017.
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2364-1 For the delivery year beginning June 1, 2019, and for
2365-2 each year thereafter, the procurement plans shall attempt
2366-3 to include, subject to the prioritization outlined in this
2367-4 subparagraph (B), cost-effective renewable energy
2368-5 resources equal to a minimum percentage of each utility's
2369-6 load for all retail customers as follows: 16% by June 1,
2370-7 2019; increasing by 1.5% each year thereafter to 25% by
2371-8 June 1, 2025; and 25% by June 1, 2026; increasing by at
2372-9 least 3% each delivery year thereafter to at least 40% by
2373-10 the 2030 delivery year, and continuing at no less than 40%
2374-11 for each delivery year thereafter. The Agency shall
2375-12 attempt to procure 50% by delivery year 2040. The Agency
2376-13 shall determine the annual increase between delivery year
2377-14 2030 and delivery year 2040, if any, taking into account
2378-15 energy demand, other energy resources, and other public
2379-16 policy goals.
2380-17 For each delivery year, the Agency shall first
2381-18 recognize each utility's obligations for that delivery
2382-19 year under existing contracts. Any renewable energy
2383-20 credits under existing contracts, including renewable
2384-21 energy credits as part of renewable energy resources,
2385-22 shall be used to meet the goals set forth in this
2386-23 subsection (c) for the delivery year.
2387-24 (C) The long-term renewable resources procurement plan
2388-25 described in subparagraph (A) of this paragraph (1) shall
2389-26 include the procurement of renewable energy credits from
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2400-1 new projects pursuant to the following terms:
2401-2 (i) At least 10,000,000 renewable energy credits
2402-3 delivered annually by the end of the 2021 delivery
2403-4 year, and increasing ratably to reach 45,000,000
2404-5 renewable energy credits delivered annually from new
2405-6 wind and solar projects, from repowered wind projects,
2406-7 or from retooled hydropower facilities by the end of
2407-8 delivery year 2030 such that the goals in subparagraph
2408-9 (B) of this paragraph (1) are met entirely by
2409-10 procurements of renewable energy credits from new wind
2410-11 and photovoltaic projects. Of that amount, to the
2411-12 extent possible, the Agency shall endeavor to procure
2412-13 45% from new and repowered wind and hydropower
2413-14 projects and shall procure at least 55% from
2414-15 photovoltaic projects. Of the amount to be procured
2415-16 from photovoltaic projects, the Agency shall procure:
2416-17 at least 50% from solar photovoltaic projects using
2417-18 the program outlined in subparagraph (K) of this
2418-19 paragraph (1) from distributed renewable energy
2419-20 generation devices or community renewable generation
2420-21 projects; at least 47% from utility-scale solar
2421-22 projects; at least 3% from brownfield site
2422-23 photovoltaic projects that are not community renewable
2423-24 generation projects. The Agency may propose
2424-25 adjustments to these percentages, including
2425-26 establishing percentage-based goals for the
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2436-1 procurement of renewable energy credits from
2437-2 modernized or retooled hydropower facilities and
2438-3 repowered wind projects, through its long-term
2439-4 renewable resources plan described in subparagraph (A)
2440-5 of this paragraph (1) as necessary based on developer
2441-6 interest, market conditions, budget considerations,
2442-7 resource adequacy needs, or other factors.
2443-8 In developing the long-term renewable resources
2444-9 procurement plan, the Agency shall consider other
2445-10 approaches, in addition to competitive procurements,
2446-11 that can be used to procure renewable energy credits
2447-12 from brownfield site photovoltaic projects and thereby
2448-13 help return blighted or contaminated land to
2449-14 productive use while enhancing public health and the
2450-15 well-being of Illinois residents, including those in
2451-16 environmental justice communities, as defined using
2452-17 existing methodologies and findings used by the Agency
2453-18 and its Administrator in its Illinois Solar for All
2454-19 Program. The Agency shall also consider other
2455-20 approaches, in addition to competitive procurements,
2456-21 to procure renewable energy credits from new and
2457-22 existing hydropower facilities to support the
2458-23 development and maintenance of these facilities. The
2459-24 Agency shall explore options to convert existing dams
2460-25 but shall not consider approaches to develop new dams
2461-26 where they do not already exist. To encourage the
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2472-1 continued operation of utility-scale wind projects,
2473-2 the Agency shall consider and may propose other
2474-3 approaches in addition to competitive procurements to
2475-4 procure renewable energy credits from repowered wind
2476-5 projects.
2477-6 (ii) In any given delivery year, if forecasted
2478-7 expenses are less than the maximum budget available
2479-8 under subparagraph (E) of this paragraph (1), the
2480-9 Agency shall continue to procure new renewable energy
2481-10 credits until that budget is exhausted in the manner
2482-11 outlined in item (i) of this subparagraph (C).
2483-12 (iii) For purposes of this Section:
2484-13 "New wind projects" means wind renewable energy
2485-14 facilities that are energized after June 1, 2017 for
2486-15 the delivery year commencing June 1, 2017.
2487-16 "New photovoltaic projects" means photovoltaic
2488-17 renewable energy facilities that are energized after
2489-18 June 1, 2017. Photovoltaic projects developed under
2490-19 Section 1-56 of this Act shall not apply towards the
2491-20 new photovoltaic project requirements in this
2492-21 subparagraph (C).
2493-22 "Repowered wind projects" means utility-scale wind
2494-23 projects featuring the removal, replacement, or
2495-24 expansion of turbines at an existing project site, as
2496-25 defined in the long-term renewable resources
2497-26 procurement plan, after the effective date of this
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2508-1 amendatory Act of the 103rd General Assembly.
2509-2 Renewable energy credit contract awards used to
2510-3 support repowered wind projects shall only cover the
2511-4 incremental increase in facility electricity
2512-5 production resultant from repowering.
2513-6 For purposes of calculating whether the Agency has
2514-7 procured enough new wind and solar renewable energy
2515-8 credits required by this subparagraph (C), renewable
2516-9 energy facilities that have a multi-year renewable
2517-10 energy credit delivery contract with the utility
2518-11 through at least delivery year 2030 shall be
2519-12 considered new, however no renewable energy credits
2520-13 from contracts entered into before June 1, 2021 shall
2521-14 be used to calculate whether the Agency has procured
2522-15 the correct proportion of new wind and new solar
2523-16 contracts described in this subparagraph (C) for
2524-17 delivery year 2021 and thereafter.
2525-18 (D) Renewable energy credits shall be cost effective.
2526-19 For purposes of this subsection (c), "cost effective"
2527-20 means that the costs of procuring renewable energy
2528-21 resources do not cause the limit stated in subparagraph
2529-22 (E) of this paragraph (1) to be exceeded and, for
2530-23 renewable energy credits procured through a competitive
2531-24 procurement event, do not exceed benchmarks based on
2532-25 market prices for like products in the region. For
2533-26 purposes of this subsection (c), "like products" means
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2544-1 contracts for renewable energy credits from the same or
2545-2 substantially similar technology, same or substantially
2546-3 similar vintage (new or existing), the same or
2547-4 substantially similar quantity, and the same or
2548-5 substantially similar contract length and structure.
2549-6 Benchmarks shall reflect development, financing, or
2550-7 related costs resulting from requirements imposed through
2551-8 other provisions of State law, including, but not limited
2552-9 to, requirements in subparagraphs (P) and (Q) of this
2553-10 paragraph (1) and the Renewable Energy Facilities
2554-11 Agricultural Impact Mitigation Act. Confidential
2555-12 benchmarks shall be developed by the procurement
2556-13 administrator, in consultation with the Commission staff,
2557-14 Agency staff, and the procurement monitor and shall be
2558-15 subject to Commission review and approval. If price
2559-16 benchmarks for like products in the region are not
2560-17 available, the procurement administrator shall establish
2561-18 price benchmarks based on publicly available data on
2562-19 regional technology costs and expected current and future
2563-20 regional energy prices. The benchmarks in this Section
2564-21 shall not be used to curtail or otherwise reduce
2565-22 contractual obligations entered into by or through the
2566-23 Agency prior to June 1, 2017 (the effective date of Public
2567-24 Act 99-906).
2568-25 (E) For purposes of this subsection (c), the required
2569-26 procurement of cost-effective renewable energy resources
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2580-1 for a particular year commencing prior to June 1, 2017
2581-2 shall be measured as a percentage of the actual amount of
2582-3 electricity (megawatt-hours) supplied by the electric
2583-4 utility to eligible retail customers in the delivery year
2584-5 ending immediately prior to the procurement, and, for
2585-6 delivery years commencing on and after June 1, 2017, the
2586-7 required procurement of cost-effective renewable energy
2587-8 resources for a particular year shall be measured as a
2588-9 percentage of the actual amount of electricity
2589-10 (megawatt-hours) delivered by the electric utility in the
2590-11 delivery year ending immediately prior to the procurement,
2591-12 to all retail customers in its service territory. For
2592-13 purposes of this subsection (c), the amount paid per
2593-14 kilowatthour means the total amount paid for electric
2594-15 service expressed on a per kilowatthour basis. For
2595-16 purposes of this subsection (c), the total amount paid for
2596-17 electric service includes without limitation amounts paid
2597-18 for supply, transmission, capacity, distribution,
2598-19 surcharges, and add-on taxes.
2599-20 Notwithstanding the requirements of this subsection
2600-21 (c), and except as provided in subparagraph (E-5) of
2601-22 paragraph (1) of this subsection (c), the total of
2602-23 renewable energy resources procured under the procurement
2603-24 plan for any single year shall be subject to the
2604-25 limitations of this subparagraph (E). Such procurement
2605-26 shall be reduced for all retail customers based on the
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2616-1 amount necessary to limit the annual estimated average net
2617-2 increase due to the costs of these resources included in
2618-3 the amounts paid by eligible retail customers in
2619-4 connection with electric service to no more than 4.25% of
2620-5 the amount paid per kilowatthour by those customers during
2621-6 the year ending May 31, 2009. To arrive at a maximum dollar
2622-7 amount of renewable energy resources to be procured for
2623-8 the particular delivery year, the resulting per
2624-9 kilowatthour amount shall be applied to the actual amount
2625-10 of kilowatthours of electricity delivered, or applicable
2626-11 portion of such amount as specified in paragraph (1) of
2627-12 this subsection (c), as applicable, by the electric
2628-13 utility in the delivery year immediately prior to the
2629-14 procurement to all retail customers in its service
2630-15 territory. The calculations required by this subparagraph
2631-16 (E) shall be made only once for each delivery year at the
2632-17 time that the renewable energy resources are procured.
2633-18 Once the determination as to the amount of renewable
2634-19 energy resources to procure is made based on the
2635-20 calculations set forth in this subparagraph (E) and the
2636-21 contracts procuring those amounts are executed between the
2637-22 seller and applicable electric utility, no subsequent rate
2638-23 impact determinations shall be made and no adjustments to
2639-24 those contract amounts shall be allowed. As provided in
2640-25 subparagraph (E-5) of paragraph (1) of this subsection
2641-26 (c), the seller shall be entitled to full, prompt, and
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2652-1 uninterrupted payment under the applicable contract
2653-2 notwithstanding the application of this subparagraph (E),
2654-3 and all All costs incurred under such contracts shall be
2655-4 fully recoverable by the electric utility as provided in
2656-5 this Section.
2657-6 (E-5) If, for a particular delivery year, the
2658-7 limitation on the amount of renewable energy resources to
2659-8 be procured, as calculated pursuant to subparagraph (E) of
2660-9 paragraph (1) of this subsection (c), would result in an
2661-10 insufficient collection of funds to fully pay amounts due
2662-11 to a seller under existing contracts executed under this
2663-12 Section or executed under Section 1-56 of this Act, then
2664-13 the following provisions shall apply to ensure full and
2665-14 uninterrupted payment is made to such seller or sellers:
2666-15 (i) If the electric utility has retained unspent
2667-16 funds in an interest-bearing account as prescribed in
2668-17 subsection (k) of Section 16-108 of the Public
2669-18 Utilities Act, then the utility shall use those funds
2670-19 to remit full payment to the sellers to ensure prompt
2671-20 and uninterrupted payment of existing contractual
2672-21 obligation.
2673-22 (ii) If the funds described in item (i) of this
2674-23 subparagraph (E-5) are insufficient to satisfy all
2675-24 existing contractual obligations, then the electric
2676-25 utility shall, nonetheless, remit full payment to the
2677-26 sellers to ensure prompt and uninterrupted payment of
2678-
2679-
2680-
2681-
2682-
2683- HB0587 Enrolled - 75 - LRB103 04172 CPF 49178 b
2684-
2685-
2686-HB0587 Enrolled- 76 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 76 - LRB103 04172 CPF 49178 b
2687- HB0587 Enrolled - 76 - LRB103 04172 CPF 49178 b
2688-1 existing contractual obligations, provided that the
2689-2 full costs shall be recoverable by the utility in
2690-3 accordance with part (ee) of item (iv) of this
2691-4 subsection (E-5).
2692-5 (iii) The Agency shall promptly notify the
2693-6 Commission that existing contractual obligations are
2694-7 reasonably expected to exceed the maximum collection
2695-8 authorized under subparagraph (E) of paragraph (1) of
2696-9 this subsection (c) for the applicable delivery year.
2697-10 The Agency shall also explain and confirm how the
2698-11 operation of items (i) and (ii) of this subparagraph
2699-12 (E-5) ensures that the electric utility will continue
2700-13 to make prompt and uninterrupted payment under
2701-14 existing contractual obligations. The Agency shall
2702-15 provide this information to the Commission through a
2703-16 notice filed in the Commission docket approving the
2704-17 Agency's operative Long-Term Renewable Resources
2705-18 Procurement Plan that includes the applicable delivery
2706-19 year.
2707-20 (iv) The Agency shall suspend or reduce new
2708-21 contract awards for the procurement of renewable
2709-22 energy credits until an Agency determination is made
2710-23 under subparagraph (E) that additional procurements
2711-24 would not cause the rate impact limitation of
2712-25 subparagraph (E) to be exceeded. At least once
2713-26 annually after the notice provided for in item (iii)
2714-
2715-
2716-
2717-
2718-
2719- HB0587 Enrolled - 76 - LRB103 04172 CPF 49178 b
2720-
2721-
2722-HB0587 Enrolled- 77 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 77 - LRB103 04172 CPF 49178 b
2723- HB0587 Enrolled - 77 - LRB103 04172 CPF 49178 b
2724-1 of this subparagraph (E-5) is made, the Agency shall
2725-2 analyze existing contract obligations, projected
2726-3 prices for indexed renewable energy credit contracts
2727-4 executed under item (v) of subparagraph (G) of
2728-5 paragraph (1) of subsection (c) of Section 1-75 of
2729-6 this Act, and expected collections authorized under
2730-7 subparagraph (E) to determine whether and to what
2731-8 extent the limitations of subparagraph (E) would be
2732-9 exceeded by additional renewable energy credit
2733-10 procurement contract awards.
2734-11 (aa) If the Agency determines that additional
2735-12 renewable energy credit procurement contract
2736-13 awards could be made without exceeding the
2737-14 limitations of subparagraph (E), then the
2738-15 procurements shall be authorized at a scale
2739-16 determined not to exceed the limitations of
2740-17 subparagraph (E) in a manner consistent with the
2741-18 priorities of this Section.
2742-19 (bb) If the Agency determines that additional
2743-20 renewable energy credit procurement contract
2744-21 awards cannot be made without exceeding the
2745-22 limitations of subparagraph (E), then the Agency
2746-23 shall suspend any new contract awards for the
2747-24 procurement of renewable energy credits until a
2748-25 new rate impact determination is made under
2749-26 subparagraph (E).
2750-
2751-
2752-
2753-
2754-
2755- HB0587 Enrolled - 77 - LRB103 04172 CPF 49178 b
2756-
2757-
2758-HB0587 Enrolled- 78 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 78 - LRB103 04172 CPF 49178 b
2759- HB0587 Enrolled - 78 - LRB103 04172 CPF 49178 b
2760-1 (cc) Agency determinations made under this
2761-2 item (iv) shall be detailed and comprehensive and,
2762-3 if not made through the Agency's Long-Term
2763-4 Renewable Resources Procurement Plan, shall be
2764-5 filed as a compliance filing in the most recent
2765-6 docketed proceeding approving the Agency's
2766-7 Long-Term Renewable Resources Procurement Plan.
2767-8 (dd) With respect to the procurement of
2768-9 renewable energy credits authorized through
2769-10 programs administered under subsection (b) of
2770-11 Section 1-56 and subparagraphs (K) through (M) of
2771-12 paragraph (1) of subsection (k) of Section 1-75 of
2772-13 this Act, the award of contracts for the
2773-14 procurement of renewable energy credits shall be
2774-15 suspended or reduced only at the conclusion of the
2775-16 program year in which the notice provided for
2776-17 under item (iii) of this subparagraph (E-5) is
2777-18 made.
2778-19 (ee) The contract shall provide that, so long
2779-20 as at least one of: (i) the cost recovery
2780-21 mechanisms referenced in subsection (k) of Section
2781-22 16-108 and subsection (l) of Section 16-111.5 of
2782-23 the Public Utilities Act remains in full force
2783-24 without limitation or (ii) the utility is
2784-25 otherwise authorized and or entitled to full,
2785-26 prompt, and uninterrupted recovery of its costs
2786-
2787-
2788-
2789-
2790-
2791- HB0587 Enrolled - 78 - LRB103 04172 CPF 49178 b
2792-
2793-
2794-HB0587 Enrolled- 79 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 79 - LRB103 04172 CPF 49178 b
2795- HB0587 Enrolled - 79 - LRB103 04172 CPF 49178 b
2796-1 through any other mechanism, then such seller
2797-2 shall be entitled to full, prompt, and
2798-3 uninterrupted payment under the applicable
2799-4 contract notwithstanding the application of this
2800-5 subparagraph (E).
2801-6 (F) If the limitation on the amount of renewable
2802-7 energy resources procured in subparagraph (E) of this
2803-8 paragraph (1) prevents the Agency from meeting all of the
2804-9 goals in this subsection (c), the Agency's long-term plan
2805-10 shall prioritize compliance with the requirements of this
2806-11 subsection (c) regarding renewable energy credits in the
2807-12 following order:
2808-13 (i) renewable energy credits under existing
2809-14 contractual obligations as of June 1, 2021;
2810-15 (i-5) funding for the Illinois Solar for All
2811-16 Program, as described in subparagraph (O) of this
2812-17 paragraph (1);
2813-18 (ii) renewable energy credits necessary to comply
2814-19 with the new wind and new photovoltaic procurement
2815-20 requirements described in items (i) through (iii) of
2816-21 subparagraph (C) of this paragraph (1); and
2817-22 (iii) renewable energy credits necessary to meet
2818-23 the remaining requirements of this subsection (c).
2819-24 (G) The following provisions shall apply to the
2820-25 Agency's procurement of renewable energy credits under
2821-26 this subsection (c):
2822-
2823-
2824-
2825-
2826-
2827- HB0587 Enrolled - 79 - LRB103 04172 CPF 49178 b
2828-
2829-
2830-HB0587 Enrolled- 80 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 80 - LRB103 04172 CPF 49178 b
2831- HB0587 Enrolled - 80 - LRB103 04172 CPF 49178 b
2832-1 (i) Notwithstanding whether a long-term renewable
2833-2 resources procurement plan has been approved, the
2834-3 Agency shall conduct an initial forward procurement
2835-4 for renewable energy credits from new utility-scale
2836-5 wind projects within 160 days after June 1, 2017 (the
2837-6 effective date of Public Act 99-906). For the purposes
2838-7 of this initial forward procurement, the Agency shall
2839-8 solicit 15-year contracts for delivery of 1,000,000
2840-9 renewable energy credits delivered annually from new
2841-10 utility-scale wind projects to begin delivery on June
2842-11 1, 2019, if available, but not later than June 1, 2021,
2843-12 unless the project has delays in the establishment of
2844-13 an operating interconnection with the applicable
2845-14 transmission or distribution system as a result of the
2846-15 actions or inactions of the transmission or
2847-16 distribution provider, or other causes for force
2848-17 majeure as outlined in the procurement contract, in
2849-18 which case, not later than June 1, 2022. Payments to
2850-19 suppliers of renewable energy credits shall commence
2851-20 upon delivery. Renewable energy credits procured under
2852-21 this initial procurement shall be included in the
2853-22 Agency's long-term plan and shall apply to all
2854-23 renewable energy goals in this subsection (c).
2855-24 (ii) Notwithstanding whether a long-term renewable
2856-25 resources procurement plan has been approved, the
2857-26 Agency shall conduct an initial forward procurement
2858-
2859-
2860-
2861-
2862-
2863- HB0587 Enrolled - 80 - LRB103 04172 CPF 49178 b
2864-
2865-
2866-HB0587 Enrolled- 81 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 81 - LRB103 04172 CPF 49178 b
2867- HB0587 Enrolled - 81 - LRB103 04172 CPF 49178 b
2868-1 for renewable energy credits from new utility-scale
2869-2 solar projects and brownfield site photovoltaic
2870-3 projects within one year after June 1, 2017 (the
2871-4 effective date of Public Act 99-906). For the purposes
2872-5 of this initial forward procurement, the Agency shall
2873-6 solicit 15-year contracts for delivery of 1,000,000
2874-7 renewable energy credits delivered annually from new
2875-8 utility-scale solar projects and brownfield site
2876-9 photovoltaic projects to begin delivery on June 1,
2877-10 2019, if available, but not later than June 1, 2021,
2878-11 unless the project has delays in the establishment of
2879-12 an operating interconnection with the applicable
2880-13 transmission or distribution system as a result of the
2881-14 actions or inactions of the transmission or
2882-15 distribution provider, or other causes for force
2883-16 majeure as outlined in the procurement contract, in
2884-17 which case, not later than June 1, 2022. The Agency may
2885-18 structure this initial procurement in one or more
2886-19 discrete procurement events. Payments to suppliers of
2887-20 renewable energy credits shall commence upon delivery.
2888-21 Renewable energy credits procured under this initial
2889-22 procurement shall be included in the Agency's
2890-23 long-term plan and shall apply to all renewable energy
2891-24 goals in this subsection (c).
2892-25 (iii) Notwithstanding whether the Commission has
2893-26 approved the periodic long-term renewable resources
2894-
2895-
2896-
2897-
2898-
2899- HB0587 Enrolled - 81 - LRB103 04172 CPF 49178 b
2900-
2901-
2902-HB0587 Enrolled- 82 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 82 - LRB103 04172 CPF 49178 b
2903- HB0587 Enrolled - 82 - LRB103 04172 CPF 49178 b
2904-1 procurement plan revision described in Section
2905-2 16-111.5 of the Public Utilities Act, the Agency shall
2906-3 conduct at least one subsequent forward procurement
2907-4 for renewable energy credits from new utility-scale
2908-5 wind projects, new utility-scale solar projects, and
2909-6 new brownfield site photovoltaic projects within 240
2910-7 days after the effective date of this amendatory Act
2911-8 of the 102nd General Assembly in quantities necessary
2912-9 to meet the requirements of subparagraph (C) of this
2913-10 paragraph (1) through the delivery year beginning June
2914-11 1, 2021.
2915-12 (iv) Notwithstanding whether the Commission has
2916-13 approved the periodic long-term renewable resources
2917-14 procurement plan revision described in Section
2918-15 16-111.5 of the Public Utilities Act, the Agency shall
2919-16 open capacity for each category in the Adjustable
2920-17 Block program within 90 days after the effective date
2921-18 of this amendatory Act of the 102nd General Assembly
2922-19 manner:
2923-20 (1) The Agency shall open the first block of
2924-21 annual capacity for the category described in item
2925-22 (i) of subparagraph (K) of this paragraph (1). The
2926-23 first block of annual capacity for item (i) shall
2927-24 be for at least 75 megawatts of total nameplate
2928-25 capacity. The price of the renewable energy credit
2929-26 for this block of capacity shall be 4% less than
2930-
2931-
2932-
2933-
2934-
2935- HB0587 Enrolled - 82 - LRB103 04172 CPF 49178 b
2936-
2937-
2938-HB0587 Enrolled- 83 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 83 - LRB103 04172 CPF 49178 b
2939- HB0587 Enrolled - 83 - LRB103 04172 CPF 49178 b
2940-1 the price of the last open block in this category.
2941-2 Projects on a waitlist shall be awarded contracts
2942-3 first in the order in which they appear on the
2943-4 waitlist. Notwithstanding anything to the
2944-5 contrary, for those renewable energy credits that
2945-6 qualify and are procured under this subitem (1) of
2946-7 this item (iv), the renewable energy credit
2947-8 delivery contract value shall be paid in full,
2948-9 based on the estimated generation during the first
2949-10 15 years of operation, by the contracting
2950-11 utilities at the time that the facility producing
2951-12 the renewable energy credits is interconnected at
2952-13 the distribution system level of the utility and
2953-14 verified as energized and in compliance by the
2954-15 Program Administrator. The electric utility shall
2955-16 receive and retire all renewable energy credits
2956-17 generated by the project for the first 15 years of
2957-18 operation. Renewable energy credits generated by
2958-19 the project thereafter shall not be transferred
2959-20 under the renewable energy credit delivery
2960-21 contract with the counterparty electric utility.
2961-22 (2) The Agency shall open the first block of
2962-23 annual capacity for the category described in item
2963-24 (ii) of subparagraph (K) of this paragraph (1).
2964-25 The first block of annual capacity for item (ii)
2965-26 shall be for at least 75 megawatts of total
2966-
2967-
2968-
2969-
2970-
2971- HB0587 Enrolled - 83 - LRB103 04172 CPF 49178 b
2972-
2973-
2974-HB0587 Enrolled- 84 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 84 - LRB103 04172 CPF 49178 b
2975- HB0587 Enrolled - 84 - LRB103 04172 CPF 49178 b
2976-1 nameplate capacity.
2977-2 (A) The price of the renewable energy
2978-3 credit for any project on a waitlist for this
2979-4 category before the opening of this block
2980-5 shall be 4% less than the price of the last
2981-6 open block in this category. Projects on the
2982-7 waitlist shall be awarded contracts first in
2983-8 the order in which they appear on the
2984-9 waitlist. Any projects that are less than or
2985-10 equal to 25 kilowatts in size on the waitlist
2986-11 for this capacity shall be moved to the
2987-12 waitlist for paragraph (1) of this item (iv).
2988-13 Notwithstanding anything to the contrary,
2989-14 projects that were on the waitlist prior to
2990-15 opening of this block shall not be required to
2991-16 be in compliance with the requirements of
2992-17 subparagraph (Q) of this paragraph (1) of this
2993-18 subsection (c). Notwithstanding anything to
2994-19 the contrary, for those renewable energy
2995-20 credits procured from projects that were on
2996-21 the waitlist for this category before the
2997-22 opening of this block 20% of the renewable
2998-23 energy credit delivery contract value, based
2999-24 on the estimated generation during the first
3000-25 15 years of operation, shall be paid by the
3001-26 contracting utilities at the time that the
3002-
3003-
3004-
3005-
3006-
3007- HB0587 Enrolled - 84 - LRB103 04172 CPF 49178 b
3008-
3009-
3010-HB0587 Enrolled- 85 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 85 - LRB103 04172 CPF 49178 b
3011- HB0587 Enrolled - 85 - LRB103 04172 CPF 49178 b
3012-1 facility producing the renewable energy
3013-2 credits is interconnected at the distribution
3014-3 system level of the utility and verified as
3015-4 energized by the Program Administrator. The
3016-5 remaining portion shall be paid ratably over
3017-6 the subsequent 4-year period. The electric
3018-7 utility shall receive and retire all renewable
3019-8 energy credits generated by the project during
3020-9 the first 15 years of operation. Renewable
3021-10 energy credits generated by the project
3022-11 thereafter shall not be transferred under the
3023-12 renewable energy credit delivery contract with
3024-13 the counterparty electric utility.
3025-14 (B) The price of renewable energy credits
3026-15 for any project not on the waitlist for this
3027-16 category before the opening of the block shall
3028-17 be determined and published by the Agency.
3029-18 Projects not on a waitlist as of the opening
3030-19 of this block shall be subject to the
3031-20 requirements of subparagraph (Q) of this
3032-21 paragraph (1), as applicable. Projects not on
3033-22 a waitlist as of the opening of this block
3034-23 shall be subject to the contract provisions
3035-24 outlined in item (iii) of subparagraph (L) of
3036-25 this paragraph (1). The Agency shall strive to
3037-26 publish updated prices and an updated
3038-
3039-
3040-
3041-
3042-
3043- HB0587 Enrolled - 85 - LRB103 04172 CPF 49178 b
3044-
3045-
3046-HB0587 Enrolled- 86 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 86 - LRB103 04172 CPF 49178 b
3047- HB0587 Enrolled - 86 - LRB103 04172 CPF 49178 b
3048-1 renewable energy credit delivery contract as
3049-2 quickly as possible.
3050-3 (3) For opening the first 2 blocks of annual
3051-4 capacity for projects participating in item (iii)
3052-5 of subparagraph (K) of paragraph (1) of subsection
3053-6 (c), projects shall be selected exclusively from
3054-7 those projects on the ordinal waitlists of
3055-8 community renewable generation projects
3056-9 established by the Agency based on the status of
3057-10 those ordinal waitlists as of December 31, 2020,
3058-11 and only those projects previously determined to
3059-12 be eligible for the Agency's April 2019 community
3060-13 solar project selection process.
3061-14 The first 2 blocks of annual capacity for item
3062-15 (iii) shall be for 250 megawatts of total
3063-16 nameplate capacity, with both blocks opening
3064-17 simultaneously under the schedule outlined in the
3065-18 paragraphs below. Projects shall be selected as
3066-19 follows:
3067-20 (A) The geographic balance of selected
3068-21 projects shall follow the Group classification
3069-22 found in the Agency's Revised Long-Term
3070-23 Renewable Resources Procurement Plan, with 70%
3071-24 of capacity allocated to projects on the Group
3072-25 B waitlist and 30% of capacity allocated to
3073-26 projects on the Group A waitlist.
3074-
3075-
3076-
3077-
3078-
3079- HB0587 Enrolled - 86 - LRB103 04172 CPF 49178 b
3080-
3081-
3082-HB0587 Enrolled- 87 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 87 - LRB103 04172 CPF 49178 b
3083- HB0587 Enrolled - 87 - LRB103 04172 CPF 49178 b
3084-1 (B) Contract awards for waitlisted
3085-2 projects shall be allocated proportionate to
3086-3 the total nameplate capacity amount across
3087-4 both ordinal waitlists associated with that
3088-5 applicant firm or its affiliates, subject to
3089-6 the following conditions.
3090-7 (i) Each applicant firm having a
3091-8 waitlisted project eligible for selection
3092-9 shall receive no less than 500 kilowatts
3093-10 in awarded capacity across all groups, and
3094-11 no approved vendor may receive more than
3095-12 20% of each Group's waitlist allocation.
3096-13 (ii) Each applicant firm, upon
3097-14 receiving an award of program capacity
3098-15 proportionate to its waitlisted capacity,
3099-16 may then determine which waitlisted
3100-17 projects it chooses to be selected for a
3101-18 contract award up to that capacity amount.
3102-19 (iii) Assuming all other program
3103-20 requirements are met, applicant firms may
3104-21 adjust the nameplate capacity of applicant
3105-22 projects without losing waitlist
3106-23 eligibility, so long as no project is
3107-24 greater than 2,000 kilowatts in size.
3108-25 (iv) Assuming all other program
3109-26 requirements are met, applicant firms may
3110-
3111-
3112-
3113-
3114-
3115- HB0587 Enrolled - 87 - LRB103 04172 CPF 49178 b
3116-
3117-
3118-HB0587 Enrolled- 88 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 88 - LRB103 04172 CPF 49178 b
3119- HB0587 Enrolled - 88 - LRB103 04172 CPF 49178 b
3120-1 adjust the expected production associated
3121-2 with applicant projects, subject to
3122-3 verification by the Program Administrator.
3123-4 (C) After a review of affiliate
3124-5 information and the current ordinal waitlists,
3125-6 the Agency shall announce the nameplate
3126-7 capacity award amounts associated with
3127-8 applicant firms no later than 90 days after
3128-9 the effective date of this amendatory Act of
3129-10 the 102nd General Assembly.
3130-11 (D) Applicant firms shall submit their
3131-12 portfolio of projects used to satisfy those
3132-13 contract awards no less than 90 days after the
3133-14 Agency's announcement. The total nameplate
3134-15 capacity of all projects used to satisfy that
3135-16 portfolio shall be no greater than the
3136-17 Agency's nameplate capacity award amount
3137-18 associated with that applicant firm. An
3138-19 applicant firm may decline, in whole or in
3139-20 part, its nameplate capacity award without
3140-21 penalty, with such unmet capacity rolled over
3141-22 to the next block opening for project
3142-23 selection under item (iii) of subparagraph (K)
3143-24 of this subsection (c). Any projects not
3144-25 included in an applicant firm's portfolio may
3145-26 reapply without prejudice upon the next block
3146-
3147-
3148-
3149-
3150-
3151- HB0587 Enrolled - 88 - LRB103 04172 CPF 49178 b
3152-
3153-
3154-HB0587 Enrolled- 89 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 89 - LRB103 04172 CPF 49178 b
3155- HB0587 Enrolled - 89 - LRB103 04172 CPF 49178 b
3156-1 reopening for project selection under item
3157-2 (iii) of subparagraph (K) of this subsection
3158-3 (c).
3159-4 (E) The renewable energy credit delivery
3160-5 contract shall be subject to the contract and
3161-6 payment terms outlined in item (iv) of
3162-7 subparagraph (L) of this subsection (c).
3163-8 Contract instruments used for this
3164-9 subparagraph shall contain the following
3165-10 terms:
3166-11 (i) Renewable energy credit prices
3167-12 shall be fixed, without further adjustment
3168-13 under any other provision of this Act or
3169-14 for any other reason, at 10% lower than
3170-15 prices applicable to the last open block
3171-16 for this category, inclusive of any adders
3172-17 available for achieving a minimum of 50%
3173-18 of subscribers to the project's nameplate
3174-19 capacity being residential or small
3175-20 commercial customers with subscriptions of
3176-21 below 25 kilowatts in size;
3177-22 (ii) A requirement that a minimum of
3178-23 50% of subscribers to the project's
3179-24 nameplate capacity be residential or small
3180-25 commercial customers with subscriptions of
3181-26 below 25 kilowatts in size;
3182-
3183-
3184-
3185-
3186-
3187- HB0587 Enrolled - 89 - LRB103 04172 CPF 49178 b
3188-
3189-
3190-HB0587 Enrolled- 90 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 90 - LRB103 04172 CPF 49178 b
3191- HB0587 Enrolled - 90 - LRB103 04172 CPF 49178 b
3192-1 (iii) Permission for the ability of a
3193-2 contract holder to substitute projects
3194-3 with other waitlisted projects without
3195-4 penalty should a project receive a
3196-5 non-binding estimate of costs to construct
3197-6 the interconnection facilities and any
3198-7 required distribution upgrades associated
3199-8 with that project of greater than 30 cents
3200-9 per watt AC of that project's nameplate
3201-10 capacity. In developing the applicable
3202-11 contract instrument, the Agency may
3203-12 consider whether other circumstances
3204-13 outside of the control of the applicant
3205-14 firm should also warrant project
3206-15 substitution rights.
3207-16 The Agency shall publish a finalized
3208-17 updated renewable energy credit delivery
3209-18 contract developed consistent with these terms
3210-19 and conditions no less than 30 days before
3211-20 applicant firms must submit their portfolio of
3212-21 projects pursuant to item (D).
3213-22 (F) To be eligible for an award, the
3214-23 applicant firm shall certify that not less
3215-24 than prevailing wage, as determined pursuant
3216-25 to the Illinois Prevailing Wage Act, was or
3217-26 will be paid to employees who are engaged in
3218-
3219-
3220-
3221-
3222-
3223- HB0587 Enrolled - 90 - LRB103 04172 CPF 49178 b
3224-
3225-
3226-HB0587 Enrolled- 91 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 91 - LRB103 04172 CPF 49178 b
3227- HB0587 Enrolled - 91 - LRB103 04172 CPF 49178 b
3228-1 construction activities associated with a
3229-2 selected project.
3230-3 (4) The Agency shall open the first block of
3231-4 annual capacity for the category described in item
3232-5 (iv) of subparagraph (K) of this paragraph (1).
3233-6 The first block of annual capacity for item (iv)
3234-7 shall be for at least 50 megawatts of total
3235-8 nameplate capacity. Renewable energy credit prices
3236-9 shall be fixed, without further adjustment under
3237-10 any other provision of this Act or for any other
3238-11 reason, at the price in the last open block in the
3239-12 category described in item (ii) of subparagraph
3240-13 (K) of this paragraph (1). Pricing for future
3241-14 blocks of annual capacity for this category may be
3242-15 adjusted in the Agency's second revision to its
3243-16 Long-Term Renewable Resources Procurement Plan.
3244-17 Projects in this category shall be subject to the
3245-18 contract terms outlined in item (iv) of
3246-19 subparagraph (L) of this paragraph (1).
3247-20 (5) The Agency shall open the equivalent of 2
3248-21 years of annual capacity for the category
3249-22 described in item (v) of subparagraph (K) of this
3250-23 paragraph (1). The first block of annual capacity
3251-24 for item (v) shall be for at least 10 megawatts of
3252-25 total nameplate capacity. Notwithstanding the
3253-26 provisions of item (v) of subparagraph (K) of this
3254-
3255-
3256-
3257-
3258-
3259- HB0587 Enrolled - 91 - LRB103 04172 CPF 49178 b
3260-
3261-
3262-HB0587 Enrolled- 92 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 92 - LRB103 04172 CPF 49178 b
3263- HB0587 Enrolled - 92 - LRB103 04172 CPF 49178 b
3264-1 paragraph (1), for the purpose of this initial
3265-2 block, the agency shall accept new project
3266-3 applications intended to increase the diversity of
3267-4 areas hosting community solar projects, the
3268-5 business models of projects, and the size of
3269-6 projects, as described by the Agency in its
3270-7 long-term renewable resources procurement plan
3271-8 that is approved as of the effective date of this
3272-9 amendatory Act of the 102nd General Assembly.
3273-10 Projects in this category shall be subject to the
3274-11 contract terms outlined in item (iii) of
3275-12 subsection (L) of this paragraph (1).
3276-13 (6) The Agency shall open the first blocks of
3277-14 annual capacity for the category described in item
3278-15 (vi) of subparagraph (K) of this paragraph (1),
3279-16 with allocations of capacity within the block
3280-17 generally matching the historical share of block
3281-18 capacity allocated between the category described
3282-19 in items (i) and (ii) of subparagraph (K) of this
3283-20 paragraph (1). The first two blocks of annual
3284-21 capacity for item (vi) shall be for at least 75
3285-22 megawatts of total nameplate capacity. The price
3286-23 of renewable energy credits for the blocks of
3287-24 capacity shall be 4% less than the price of the
3288-25 last open blocks in the categories described in
3289-26 items (i) and (ii) of subparagraph (K) of this
3290-
3291-
3292-
3293-
3294-
3295- HB0587 Enrolled - 92 - LRB103 04172 CPF 49178 b
3296-
3297-
3298-HB0587 Enrolled- 93 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 93 - LRB103 04172 CPF 49178 b
3299- HB0587 Enrolled - 93 - LRB103 04172 CPF 49178 b
3300-1 paragraph (1). Pricing for future blocks of annual
3301-2 capacity for this category may be adjusted in the
3302-3 Agency's second revision to its Long-Term
3303-4 Renewable Resources Procurement Plan. Projects in
3304-5 this category shall be subject to the applicable
3305-6 contract terms outlined in items (ii) and (iii) of
3306-7 subparagraph (L) of this paragraph (1).
3307-8 (v) Upon the effective date of this amendatory Act
3308-9 of the 102nd General Assembly, for all competitive
3309-10 procurements and any procurements of renewable energy
3310-11 credit from new utility-scale wind and new
3311-12 utility-scale photovoltaic projects, the Agency shall
3312-13 procure indexed renewable energy credits and direct
3313-14 respondents to offer a strike price.
3314-15 (1) The purchase price of the indexed
3315-16 renewable energy credit payment shall be
3316-17 calculated for each settlement period. That
3317-18 payment, for any settlement period, shall be equal
3318-19 to the difference resulting from subtracting the
3319-20 strike price from the index price for that
3320-21 settlement period. If this difference results in a
3321-22 negative number, the indexed REC counterparty
3322-23 shall owe the seller the absolute value multiplied
3323-24 by the quantity of energy produced in the relevant
3324-25 settlement period. If this difference results in a
3325-26 positive number, the seller shall owe the indexed
3326-
3327-
3328-
3329-
3330-
3331- HB0587 Enrolled - 93 - LRB103 04172 CPF 49178 b
3332-
3333-
3334-HB0587 Enrolled- 94 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 94 - LRB103 04172 CPF 49178 b
3335- HB0587 Enrolled - 94 - LRB103 04172 CPF 49178 b
3336-1 REC counterparty this amount multiplied by the
3337-2 quantity of energy produced in the relevant
3338-3 settlement period.
3339-4 (2) Parties shall cash settle every month,
3340-5 summing up all settlements (both positive and
3341-6 negative, if applicable) for the prior month.
3342-7 (3) To ensure funding in the annual budget
3343-8 established under subparagraph (E) for indexed
3344-9 renewable energy credit procurements for each year
3345-10 of the term of such contracts, which must have a
3346-11 minimum tenure of 20 calendar years, the
3347-12 procurement administrator, Agency, Commission
3348-13 staff, and procurement monitor shall quantify the
3349-14 annual cost of the contract by utilizing an
3350-15 industry-standard, third-party forward price curve
3351-16 for energy at the appropriate hub or load zone,
3352-17 including the estimated magnitude and timing of
3353-18 the price effects related to federal carbon
3354-19 controls. Each forward price curve shall contain a
3355-20 specific value of the forecasted market price of
3356-21 electricity for each annual delivery year of the
3357-22 contract. For procurement planning purposes, the
3358-23 impact on the annual budget for the cost of
3359-24 indexed renewable energy credits for each delivery
3360-25 year shall be determined as the expected annual
3361-26 contract expenditure for that year, equaling the
3362-
3363-
3364-
3365-
3366-
3367- HB0587 Enrolled - 94 - LRB103 04172 CPF 49178 b
3368-
3369-
3370-HB0587 Enrolled- 95 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 95 - LRB103 04172 CPF 49178 b
3371- HB0587 Enrolled - 95 - LRB103 04172 CPF 49178 b
3372-1 difference between (i) the sum across all relevant
3373-2 contracts of the applicable strike price
3374-3 multiplied by contract quantity and (ii) the sum
3375-4 across all relevant contracts of the forward price
3376-5 curve for the applicable load zone for that year
3377-6 multiplied by contract quantity. The contracting
3378-7 utility shall not assume an obligation in excess
3379-8 of the estimated annual cost of the contracts for
3380-9 indexed renewable energy credits. Forward curves
3381-10 shall be revised on an annual basis as updated
3382-11 forward price curves are released and filed with
3383-12 the Commission in the proceeding approving the
3384-13 Agency's most recent long-term renewable resources
3385-14 procurement plan. If the expected contract spend
3386-15 is higher or lower than the total quantity of
3387-16 contracts multiplied by the forward price curve
3388-17 value for that year, the forward price curve shall
3389-18 be updated by the procurement administrator, in
3390-19 consultation with the Agency, Commission staff,
3391-20 and procurement monitors, using then-currently
3392-21 available price forecast data and additional
3393-22 budget dollars shall be obligated or reobligated
3394-23 as appropriate.
3395-24 (4) To ensure that indexed renewable energy
3396-25 credit prices remain predictable and affordable,
3397-26 the Agency may consider the institution of a price
3398-
3399-
3400-
3401-
3402-
3403- HB0587 Enrolled - 95 - LRB103 04172 CPF 49178 b
3404-
3405-
3406-HB0587 Enrolled- 96 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 96 - LRB103 04172 CPF 49178 b
3407- HB0587 Enrolled - 96 - LRB103 04172 CPF 49178 b
3408-1 collar on REC prices paid under indexed renewable
3409-2 energy credit procurements establishing floor and
3410-3 ceiling REC prices applicable to indexed REC
3411-4 contract prices. Any price collars applicable to
3412-5 indexed REC procurements shall be proposed by the
3413-6 Agency through its long-term renewable resources
3414-7 procurement plan.
3415-8 (vi) All procurements under this subparagraph (G),
3416-9 including the procurement of renewable energy credits
3417-10 from hydropower facilities, shall comply with the
3418-11 geographic requirements in subparagraph (I) of this
3419-12 paragraph (1) and shall follow the procurement
3420-13 processes and procedures described in this Section and
3421-14 Section 16-111.5 of the Public Utilities Act to the
3422-15 extent practicable, and these processes and procedures
3423-16 may be expedited to accommodate the schedule
3424-17 established by this subparagraph (G).
3425-18 (vii) On and after the effective date of this
3426-19 amendatory Act of the 103rd General Assembly, for all
3427-20 procurements of renewable energy credits from
3428-21 hydropower facilities, the Agency shall establish
3429-22 contract terms designed to optimize existing
3430-23 hydropower facilities through modernization or
3431-24 retooling and establish new hydropower facilities at
3432-25 existing dams. Procurements made under this item (vii)
3433-26 shall prioritize projects located in designated
3434-
3435-
3436-
3437-
3438-
3439- HB0587 Enrolled - 96 - LRB103 04172 CPF 49178 b
3440-
3441-
3442-HB0587 Enrolled- 97 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 97 - LRB103 04172 CPF 49178 b
3443- HB0587 Enrolled - 97 - LRB103 04172 CPF 49178 b
3444-1 environmental justice communities, as defined in
3445-2 subsection (b) of Section 1-56 of this Act, or in
3446-3 projects located in units of local government with
3447-4 median incomes that do not exceed 82% of the median
3448-5 income of the State.
3449-6 (H) The procurement of renewable energy resources for
3450-7 a given delivery year shall be reduced as described in
3451-8 this subparagraph (H) if an alternative retail electric
3452-9 supplier meets the requirements described in this
3453-10 subparagraph (H).
3454-11 (i) Within 45 days after June 1, 2017 (the
3455-12 effective date of Public Act 99-906), an alternative
3456-13 retail electric supplier or its successor shall submit
3457-14 an informational filing to the Illinois Commerce
3458-15 Commission certifying that, as of December 31, 2015,
3459-16 the alternative retail electric supplier owned one or
3460-17 more electric generating facilities that generates
3461-18 renewable energy resources as defined in Section 1-10
3462-19 of this Act, provided that such facilities are not
3463-20 powered by wind or photovoltaics, and the facilities
3464-21 generate one renewable energy credit for each
3465-22 megawatthour of energy produced from the facility.
3466-23 The informational filing shall identify each
3467-24 facility that was eligible to satisfy the alternative
3468-25 retail electric supplier's obligations under Section
3469-26 16-115D of the Public Utilities Act as described in
3470-
3471-
3472-
3473-
3474-
3475- HB0587 Enrolled - 97 - LRB103 04172 CPF 49178 b
3476-
3477-
3478-HB0587 Enrolled- 98 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 98 - LRB103 04172 CPF 49178 b
3479- HB0587 Enrolled - 98 - LRB103 04172 CPF 49178 b
3480-1 this item (i).
3481-2 (ii) For a given delivery year, the alternative
3482-3 retail electric supplier may elect to supply its
3483-4 retail customers with renewable energy credits from
3484-5 the facility or facilities described in item (i) of
3485-6 this subparagraph (H) that continue to be owned by the
3486-7 alternative retail electric supplier.
3487-8 (iii) The alternative retail electric supplier
3488-9 shall notify the Agency and the applicable utility, no
3489-10 later than February 28 of the year preceding the
3490-11 applicable delivery year or 15 days after June 1, 2017
3491-12 (the effective date of Public Act 99-906), whichever
3492-13 is later, of its election under item (ii) of this
3493-14 subparagraph (H) to supply renewable energy credits to
3494-15 retail customers of the utility. Such election shall
3495-16 identify the amount of renewable energy credits to be
3496-17 supplied by the alternative retail electric supplier
3497-18 to the utility's retail customers and the source of
3498-19 the renewable energy credits identified in the
3499-20 informational filing as described in item (i) of this
3500-21 subparagraph (H), subject to the following
3501-22 limitations:
3502-23 For the delivery year beginning June 1, 2018,
3503-24 the maximum amount of renewable energy credits to
3504-25 be supplied by an alternative retail electric
3505-26 supplier under this subparagraph (H) shall be 68%
3506-
3507-
3508-
3509-
3510-
3511- HB0587 Enrolled - 98 - LRB103 04172 CPF 49178 b
3512-
3513-
3514-HB0587 Enrolled- 99 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 99 - LRB103 04172 CPF 49178 b
3515- HB0587 Enrolled - 99 - LRB103 04172 CPF 49178 b
3516-1 multiplied by 25% multiplied by 14.5% multiplied
3517-2 by the amount of metered electricity
3518-3 (megawatt-hours) delivered by the alternative
3519-4 retail electric supplier to Illinois retail
3520-5 customers during the delivery year ending May 31,
3521-6 2016.
3522-7 For delivery years beginning June 1, 2019 and
3523-8 each year thereafter, the maximum amount of
3524-9 renewable energy credits to be supplied by an
3525-10 alternative retail electric supplier under this
3526-11 subparagraph (H) shall be 68% multiplied by 50%
3527-12 multiplied by 16% multiplied by the amount of
3528-13 metered electricity (megawatt-hours) delivered by
3529-14 the alternative retail electric supplier to
3530-15 Illinois retail customers during the delivery year
3531-16 ending May 31, 2016, provided that the 16% value
3532-17 shall increase by 1.5% each delivery year
3533-18 thereafter to 25% by the delivery year beginning
3534-19 June 1, 2025, and thereafter the 25% value shall
3535-20 apply to each delivery year.
3536-21 For each delivery year, the total amount of
3537-22 renewable energy credits supplied by all alternative
3538-23 retail electric suppliers under this subparagraph (H)
3539-24 shall not exceed 9% of the Illinois target renewable
3540-25 energy credit quantity. The Illinois target renewable
3541-26 energy credit quantity for the delivery year beginning
3542-
3543-
3544-
3545-
3546-
3547- HB0587 Enrolled - 99 - LRB103 04172 CPF 49178 b
3548-
3549-
3550-HB0587 Enrolled- 100 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 100 - LRB103 04172 CPF 49178 b
3551- HB0587 Enrolled - 100 - LRB103 04172 CPF 49178 b
3552-1 June 1, 2018 is 14.5% multiplied by the total amount of
3553-2 metered electricity (megawatt-hours) delivered in the
3554-3 delivery year immediately preceding that delivery
3555-4 year, provided that the 14.5% shall increase by 1.5%
3556-5 each delivery year thereafter to 25% by the delivery
3557-6 year beginning June 1, 2025, and thereafter the 25%
3558-7 value shall apply to each delivery year.
3559-8 If the requirements set forth in items (i) through
3560-9 (iii) of this subparagraph (H) are met, the charges
3561-10 that would otherwise be applicable to the retail
3562-11 customers of the alternative retail electric supplier
3563-12 under paragraph (6) of this subsection (c) for the
3564-13 applicable delivery year shall be reduced by the ratio
3565-14 of the quantity of renewable energy credits supplied
3566-15 by the alternative retail electric supplier compared
3567-16 to that supplier's target renewable energy credit
3568-17 quantity. The supplier's target renewable energy
3569-18 credit quantity for the delivery year beginning June
3570-19 1, 2018 is 14.5% multiplied by the total amount of
3571-20 metered electricity (megawatt-hours) delivered by the
3572-21 alternative retail supplier in that delivery year,
3573-22 provided that the 14.5% shall increase by 1.5% each
3574-23 delivery year thereafter to 25% by the delivery year
3575-24 beginning June 1, 2025, and thereafter the 25% value
3576-25 shall apply to each delivery year.
3577-26 On or before April 1 of each year, the Agency shall
3578-
3579-
3580-
3581-
3582-
3583- HB0587 Enrolled - 100 - LRB103 04172 CPF 49178 b
3584-
3585-
3586-HB0587 Enrolled- 101 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 101 - LRB103 04172 CPF 49178 b
3587- HB0587 Enrolled - 101 - LRB103 04172 CPF 49178 b
3588-1 annually publish a report on its website that
3589-2 identifies the aggregate amount of renewable energy
3590-3 credits supplied by alternative retail electric
3591-4 suppliers under this subparagraph (H).
3592-5 (I) The Agency shall design its long-term renewable
3593-6 energy procurement plan to maximize the State's interest
3594-7 in the health, safety, and welfare of its residents,
3595-8 including but not limited to minimizing sulfur dioxide,
3596-9 nitrogen oxide, particulate matter and other pollution
3597-10 that adversely affects public health in this State,
3598-11 increasing fuel and resource diversity in this State,
3599-12 enhancing the reliability and resiliency of the
3600-13 electricity distribution system in this State, meeting
3601-14 goals to limit carbon dioxide emissions under federal or
3602-15 State law, and contributing to a cleaner and healthier
3603-16 environment for the citizens of this State. In order to
3604-17 further these legislative purposes, renewable energy
3605-18 credits shall be eligible to be counted toward the
3606-19 renewable energy requirements of this subsection (c) if
3607-20 they are generated from facilities located in this State.
3608-21 The Agency may qualify renewable energy credits from
3609-22 facilities located in states adjacent to Illinois or
3610-23 renewable energy credits associated with the electricity
3611-24 generated by a utility-scale wind energy facility or
3612-25 utility-scale photovoltaic facility and transmitted by a
3613-26 qualifying direct current project described in subsection
3614-
3615-
3616-
3617-
3618-
3619- HB0587 Enrolled - 101 - LRB103 04172 CPF 49178 b
3620-
3621-
3622-HB0587 Enrolled- 102 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 102 - LRB103 04172 CPF 49178 b
3623- HB0587 Enrolled - 102 - LRB103 04172 CPF 49178 b
3624-1 (b-5) of Section 8-406 of the Public Utilities Act to a
3625-2 delivery point on the electric transmission grid located
3626-3 in this State or a state adjacent to Illinois, if the
3627-4 generator demonstrates and the Agency determines that the
3628-5 operation of such facility or facilities will help promote
3629-6 the State's interest in the health, safety, and welfare of
3630-7 its residents based on the public interest criteria
3631-8 described above. For the purposes of this Section,
3632-9 renewable resources that are delivered via a high voltage
3633-10 direct current converter station located in Illinois shall
3634-11 be deemed generated in Illinois at the time and location
3635-12 the energy is converted to alternating current by the high
3636-13 voltage direct current converter station if the high
3637-14 voltage direct current transmission line: (i) after the
3638-15 effective date of this amendatory Act of the 102nd General
3639-16 Assembly, was constructed with a project labor agreement;
3640-17 (ii) is capable of transmitting electricity at 525kv;
3641-18 (iii) has an Illinois converter station located and
3642-19 interconnected in the region of the PJM Interconnection,
3643-20 LLC; (iv) does not operate as a public utility; and (v) if
3644-21 the high voltage direct current transmission line was
3645-22 energized after June 1, 2023. To ensure that the public
3646-23 interest criteria are applied to the procurement and given
3647-24 full effect, the Agency's long-term procurement plan shall
3648-25 describe in detail how each public interest factor shall
3649-26 be considered and weighted for facilities located in
3650-
3651-
3652-
3653-
3654-
3655- HB0587 Enrolled - 102 - LRB103 04172 CPF 49178 b
3656-
3657-
3658-HB0587 Enrolled- 103 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 103 - LRB103 04172 CPF 49178 b
3659- HB0587 Enrolled - 103 - LRB103 04172 CPF 49178 b
3660-1 states adjacent to Illinois.
3661-2 (J) In order to promote the competitive development of
3662-3 renewable energy resources in furtherance of the State's
3663-4 interest in the health, safety, and welfare of its
3664-5 residents, renewable energy credits shall not be eligible
3665-6 to be counted toward the renewable energy requirements of
3666-7 this subsection (c) if they are sourced from a generating
3667-8 unit whose costs were being recovered through rates
3668-9 regulated by this State or any other state or states on or
3669-10 after January 1, 2017. Each contract executed to purchase
3670-11 renewable energy credits under this subsection (c) shall
3671-12 provide for the contract's termination if the costs of the
3672-13 generating unit supplying the renewable energy credits
3673-14 subsequently begin to be recovered through rates regulated
3674-15 by this State or any other state or states; and each
3675-16 contract shall further provide that, in that event, the
3676-17 supplier of the credits must return 110% of all payments
3677-18 received under the contract. Amounts returned under the
3678-19 requirements of this subparagraph (J) shall be retained by
3679-20 the utility and all of these amounts shall be used for the
3680-21 procurement of additional renewable energy credits from
3681-22 new wind or new photovoltaic resources as defined in this
3682-23 subsection (c). The long-term plan shall provide that
3683-24 these renewable energy credits shall be procured in the
3684-25 next procurement event.
3685-26 Notwithstanding the limitations of this subparagraph
3686-
3687-
3688-
3689-
3690-
3691- HB0587 Enrolled - 103 - LRB103 04172 CPF 49178 b
3692-
3693-
3694-HB0587 Enrolled- 104 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 104 - LRB103 04172 CPF 49178 b
3695- HB0587 Enrolled - 104 - LRB103 04172 CPF 49178 b
3696-1 (J), renewable energy credits sourced from generating
3697-2 units that are constructed, purchased, owned, or leased by
3698-3 an electric utility as part of an approved project,
3699-4 program, or pilot under Section 1-56 of this Act shall be
3700-5 eligible to be counted toward the renewable energy
3701-6 requirements of this subsection (c), regardless of how the
3702-7 costs of these units are recovered. As long as a
3703-8 generating unit or an identifiable portion of a generating
3704-9 unit has not had and does not have its costs recovered
3705-10 through rates regulated by this State or any other state,
3706-11 HVDC renewable energy credits associated with that
3707-12 generating unit or identifiable portion thereof shall be
3708-13 eligible to be counted toward the renewable energy
3709-14 requirements of this subsection (c).
3710-15 (K) The long-term renewable resources procurement plan
3711-16 developed by the Agency in accordance with subparagraph
3712-17 (A) of this paragraph (1) shall include an Adjustable
3713-18 Block program for the procurement of renewable energy
3714-19 credits from new photovoltaic projects that are
3715-20 distributed renewable energy generation devices or new
3716-21 photovoltaic community renewable generation projects. The
3717-22 Adjustable Block program shall be generally designed to
3718-23 provide for the steady, predictable, and sustainable
3719-24 growth of new solar photovoltaic development in Illinois.
3720-25 To this end, the Adjustable Block program shall provide a
3721-26 transparent annual schedule of prices and quantities to
3722-
3723-
3724-
3725-
3726-
3727- HB0587 Enrolled - 104 - LRB103 04172 CPF 49178 b
3728-
3729-
3730-HB0587 Enrolled- 105 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 105 - LRB103 04172 CPF 49178 b
3731- HB0587 Enrolled - 105 - LRB103 04172 CPF 49178 b
3732-1 enable the photovoltaic market to scale up and for
3733-2 renewable energy credit prices to adjust at a predictable
3734-3 rate over time. The prices set by the Adjustable Block
3735-4 program can be reflected as a set value or as the product
3736-5 of a formula.
3737-6 The Adjustable Block program shall include for each
3738-7 category of eligible projects for each delivery year: a
3739-8 single block of nameplate capacity, a price for renewable
3740-9 energy credits within that block, and the terms and
3741-10 conditions for securing a spot on a waitlist once the
3742-11 block is fully committed or reserved. Except as outlined
3743-12 below, the waitlist of projects in a given year will carry
3744-13 over to apply to the subsequent year when another block is
3745-14 opened. Only projects energized on or after June 1, 2017
3746-15 shall be eligible for the Adjustable Block program. For
3747-16 each category for each delivery year the Agency shall
3748-17 determine the amount of generation capacity in each block,
3749-18 and the purchase price for each block, provided that the
3750-19 purchase price provided and the total amount of generation
3751-20 in all blocks for all categories shall be sufficient to
3752-21 meet the goals in this subsection (c). The Agency shall
3753-22 strive to issue a single block sized to provide for
3754-23 stability and market growth. The Agency shall establish
3755-24 program eligibility requirements that ensure that projects
3756-25 that enter the program are sufficiently mature to indicate
3757-26 a demonstrable path to completion. The Agency may
3758-
3759-
3760-
3761-
3762-
3763- HB0587 Enrolled - 105 - LRB103 04172 CPF 49178 b
3764-
3765-
3766-HB0587 Enrolled- 106 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 106 - LRB103 04172 CPF 49178 b
3767- HB0587 Enrolled - 106 - LRB103 04172 CPF 49178 b
3768-1 periodically review its prior decisions establishing the
3769-2 amount of generation capacity in each block, and the
3770-3 purchase price for each block, and may propose, on an
3771-4 expedited basis, changes to these previously set values,
3772-5 including but not limited to redistributing these amounts
3773-6 and the available funds as necessary and appropriate,
3774-7 subject to Commission approval as part of the periodic
3775-8 plan revision process described in Section 16-111.5 of the
3776-9 Public Utilities Act. The Agency may define different
3777-10 block sizes, purchase prices, or other distinct terms and
3778-11 conditions for projects located in different utility
3779-12 service territories if the Agency deems it necessary to
3780-13 meet the goals in this subsection (c).
3781-14 The Adjustable Block program shall include the
3782-15 following categories in at least the following amounts:
3783-16 (i) At least 20% from distributed renewable energy
3784-17 generation devices with a nameplate capacity of no
3785-18 more than 25 kilowatts.
3786-19 (ii) At least 20% from distributed renewable
3787-20 energy generation devices with a nameplate capacity of
3788-21 more than 25 kilowatts and no more than 5,000
3789-22 kilowatts. The Agency may create sub-categories within
3790-23 this category to account for the differences between
3791-24 projects for small commercial customers, large
3792-25 commercial customers, and public or non-profit
3793-26 customers.
3794-
3795-
3796-
3797-
3798-
3799- HB0587 Enrolled - 106 - LRB103 04172 CPF 49178 b
3800-
3801-
3802-HB0587 Enrolled- 107 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 107 - LRB103 04172 CPF 49178 b
3803- HB0587 Enrolled - 107 - LRB103 04172 CPF 49178 b
3804-1 (iii) At least 30% from photovoltaic community
3805-2 renewable generation projects. Capacity for this
3806-3 category for the first 2 delivery years after the
3807-4 effective date of this amendatory Act of the 102nd
3808-5 General Assembly shall be allocated to waitlist
3809-6 projects as provided in paragraph (3) of item (iv) of
3810-7 subparagraph (G). Starting in the third delivery year
3811-8 after the effective date of this amendatory Act of the
3812-9 102nd General Assembly or earlier if the Agency
3813-10 determines there is additional capacity needed for to
3814-11 meet previous delivery year requirements, the
3815-12 following shall apply:
3816-13 (1) the Agency shall select projects on a
3817-14 first-come, first-serve basis, however the Agency
3818-15 may suggest additional methods to prioritize
3819-16 projects that are submitted at the same time;
3820-17 (2) projects shall have subscriptions of 25 kW
3821-18 or less for at least 50% of the facility's
3822-19 nameplate capacity and the Agency shall price the
3823-20 renewable energy credits with that as a factor;
3824-21 (3) projects shall not be colocated with one
3825-22 or more other community renewable generation
3826-23 projects, as defined in the Agency's first revised
3827-24 long-term renewable resources procurement plan
3828-25 approved by the Commission on February 18, 2020,
3829-26 such that the aggregate nameplate capacity exceeds
3830-
3831-
3832-
3833-
3834-
3835- HB0587 Enrolled - 107 - LRB103 04172 CPF 49178 b
3836-
3837-
3838-HB0587 Enrolled- 108 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 108 - LRB103 04172 CPF 49178 b
3839- HB0587 Enrolled - 108 - LRB103 04172 CPF 49178 b
3840-1 5,000 kilowatts; and
3841-2 (4) projects greater than 2 MW may not apply
3842-3 until after the approval of the Agency's revised
3843-4 Long-Term Renewable Resources Procurement Plan
3844-5 after the effective date of this amendatory Act of
3845-6 the 102nd General Assembly.
3846-7 (iv) At least 15% from distributed renewable
3847-8 generation devices or photovoltaic community renewable
3848-9 generation projects installed on public school land.
3849-10 The Agency may create subcategories within this
3850-11 category to account for the differences between
3851-12 project size or location. Projects located within
3852-13 environmental justice communities or within
3853-14 Organizational Units that fall within Tier 1 or Tier 2
3854-15 shall be given priority. Each of the Agency's periodic
3855-16 updates to its long-term renewable resources
3856-17 procurement plan to incorporate the procurement
3857-18 described in this subparagraph (iv) shall also include
3858-19 the proposed quantities or blocks, pricing, and
3859-20 contract terms applicable to the procurement as
3860-21 indicated herein. In each such update and procurement,
3861-22 the Agency shall set the renewable energy credit price
3862-23 and establish payment terms for the renewable energy
3863-24 credits procured pursuant to this subparagraph (iv)
3864-25 that make it feasible and affordable for public
3865-26 schools to install photovoltaic distributed renewable
3866-
3867-
3868-
3869-
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3872-
3873-
3874-HB0587 Enrolled- 109 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 109 - LRB103 04172 CPF 49178 b
3875- HB0587 Enrolled - 109 - LRB103 04172 CPF 49178 b
3876-1 energy devices on their premises, including, but not
3877-2 limited to, those public schools subject to the
3878-3 prioritization provisions of this subparagraph. For
3879-4 the purposes of this item (iv):
3880-5 "Environmental Justice Community" shall have the
3881-6 same meaning set forth in the Agency's long-term
3882-7 renewable resources procurement plan;
3883-8 "Organization Unit", "Tier 1" and "Tier 2" shall
3884-9 have the meanings set for in Section 18-8.15 of the
3885-10 School Code;
3886-11 "Public schools" shall have the meaning set forth
3887-12 in Section 1-3 of the School Code and includes public
3888-13 institutions of higher education, as defined in the
3889-14 Board of Higher Education Act.
3890-15 (v) At least 5% from community-driven community
3891-16 solar projects intended to provide more direct and
3892-17 tangible connection and benefits to the communities
3893-18 which they serve or in which they operate and,
3894-19 additionally, to increase the variety of community
3895-20 solar locations, models, and options in Illinois. As
3896-21 part of its long-term renewable resources procurement
3897-22 plan, the Agency shall develop selection criteria for
3898-23 projects participating in this category. Nothing in
3899-24 this Section shall preclude the Agency from creating a
3900-25 selection process that maximizes community ownership
3901-26 and community benefits in selecting projects to
3902-
3903-
3904-
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3907- HB0587 Enrolled - 109 - LRB103 04172 CPF 49178 b
3908-
3909-
3910-HB0587 Enrolled- 110 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 110 - LRB103 04172 CPF 49178 b
3911- HB0587 Enrolled - 110 - LRB103 04172 CPF 49178 b
3912-1 receive renewable energy credits. Selection criteria
3913-2 shall include:
3914-3 (1) community ownership or community
3915-4 wealth-building;
3916-5 (2) additional direct and indirect community
3917-6 benefit, beyond project participation as a
3918-7 subscriber, including, but not limited to,
3919-8 economic, environmental, social, cultural, and
3920-9 physical benefits;
3921-10 (3) meaningful involvement in project
3922-11 organization and development by community members
3923-12 or nonprofit organizations or public entities
3924-13 located in or serving the community;
3925-14 (4) engagement in project operations and
3926-15 management by nonprofit organizations, public
3927-16 entities, or community members; and
3928-17 (5) whether a project is developed in response
3929-18 to a site-specific RFP developed by community
3930-19 members or a nonprofit organization or public
3931-20 entity located in or serving the community.
3932-21 Selection criteria may also prioritize projects
3933-22 that:
3934-23 (1) are developed in collaboration with or to
3935-24 provide complementary opportunities for the Clean
3936-25 Jobs Workforce Network Program, the Illinois
3937-26 Climate Works Preapprenticeship Program, the
3938-
3939-
3940-
3941-
3942-
3943- HB0587 Enrolled - 110 - LRB103 04172 CPF 49178 b
3944-
3945-
3946-HB0587 Enrolled- 111 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 111 - LRB103 04172 CPF 49178 b
3947- HB0587 Enrolled - 111 - LRB103 04172 CPF 49178 b
3948-1 Returning Residents Clean Jobs Training Program,
3949-2 the Clean Energy Contractor Incubator Program, or
3950-3 the Clean Energy Primes Contractor Accelerator
3951-4 Program;
3952-5 (2) increase the diversity of locations of
3953-6 community solar projects in Illinois, including by
3954-7 locating in urban areas and population centers;
3955-8 (3) are located in Equity Investment Eligible
3956-9 Communities;
3957-10 (4) are not greenfield projects;
3958-11 (5) serve only local subscribers;
3959-12 (6) have a nameplate capacity that does not
3960-13 exceed 500 kW;
3961-14 (7) are developed by an equity eligible
3962-15 contractor; or
3963-16 (8) otherwise meaningfully advance the goals
3964-17 of providing more direct and tangible connection
3965-18 and benefits to the communities which they serve
3966-19 or in which they operate and increasing the
3967-20 variety of community solar locations, models, and
3968-21 options in Illinois.
3969-22 For the purposes of this item (v):
3970-23 "Community" means a social unit in which people
3971-24 come together regularly to effect change; a social
3972-25 unit in which participants are marked by a cooperative
3973-26 spirit, a common purpose, or shared interests or
3974-
3975-
3976-
3977-
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3980-
3981-
3982-HB0587 Enrolled- 112 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 112 - LRB103 04172 CPF 49178 b
3983- HB0587 Enrolled - 112 - LRB103 04172 CPF 49178 b
3984-1 characteristics; or a space understood by its
3985-2 residents to be delineated through geographic
3986-3 boundaries or landmarks.
3987-4 "Community benefit" means a range of services and
3988-5 activities that provide affirmative, economic,
3989-6 environmental, social, cultural, or physical value to
3990-7 a community; or a mechanism that enables economic
3991-8 development, high-quality employment, and education
3992-9 opportunities for local workers and residents, or
3993-10 formal monitoring and oversight structures such that
3994-11 community members may ensure that those services and
3995-12 activities respond to local knowledge and needs.
3996-13 "Community ownership" means an arrangement in
3997-14 which an electric generating facility is, or over time
3998-15 will be, in significant part, owned collectively by
3999-16 members of the community to which an electric
4000-17 generating facility provides benefits; members of that
4001-18 community participate in decisions regarding the
4002-19 governance, operation, maintenance, and upgrades of
4003-20 and to that facility; and members of that community
4004-21 benefit from regular use of that facility.
4005-22 Terms and guidance within these criteria that are
4006-23 not defined in this item (v) shall be defined by the
4007-24 Agency, with stakeholder input, during the development
4008-25 of the Agency's long-term renewable resources
4009-26 procurement plan. The Agency shall develop regular
4010-
4011-
4012-
4013-
4014-
4015- HB0587 Enrolled - 112 - LRB103 04172 CPF 49178 b
4016-
4017-
4018-HB0587 Enrolled- 113 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 113 - LRB103 04172 CPF 49178 b
4019- HB0587 Enrolled - 113 - LRB103 04172 CPF 49178 b
4020-1 opportunities for projects to submit applications for
4021-2 projects under this category, and develop selection
4022-3 criteria that gives preference to projects that better
4023-4 meet individual criteria as well as projects that
4024-5 address a higher number of criteria.
4025-6 (vi) At least 10% from distributed renewable
4026-7 energy generation devices, which includes distributed
4027-8 renewable energy devices with a nameplate capacity
4028-9 under 5,000 kilowatts or photovoltaic community
4029-10 renewable generation projects, from applicants that
4030-11 are equity eligible contractors. The Agency may create
4031-12 subcategories within this category to account for the
4032-13 differences between project size and type. The Agency
4033-14 shall propose to increase the percentage in this item
4034-15 (vi) over time to 40% based on factors, including, but
4035-16 not limited to, the number of equity eligible
4036-17 contractors and capacity used in this item (vi) in
4037-18 previous delivery years.
4038-19 The Agency shall propose a payment structure for
4039-20 contracts executed pursuant to this paragraph under
4040-21 which, upon a demonstration of qualification or need,
4041-22 applicant firms are advanced capital disbursed after
4042-23 contract execution but before the contracted project's
4043-24 energization. The amount or percentage of capital
4044-25 advanced prior to project energization shall be
4045-26 sufficient to both cover any increase in development
4046-
4047-
4048-
4049-
4050-
4051- HB0587 Enrolled - 113 - LRB103 04172 CPF 49178 b
4052-
4053-
4054-HB0587 Enrolled- 114 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 114 - LRB103 04172 CPF 49178 b
4055- HB0587 Enrolled - 114 - LRB103 04172 CPF 49178 b
4056-1 costs resulting from prevailing wage requirements or
4057-2 project-labor agreements, and designed to overcome
4058-3 barriers in access to capital faced by equity eligible
4059-4 contractors. The amount or percentage of advanced
4060-5 capital may vary by subcategory within this category
4061-6 and by an applicant's demonstration of need, with such
4062-7 levels to be established through the Long-Term
4063-8 Renewable Resources Procurement Plan authorized under
4064-9 subparagraph (A) of paragraph (1) of subsection (c) of
4065-10 this Section.
4066-11 Contracts developed featuring capital advanced
4067-12 prior to a project's energization shall feature
4068-13 provisions to ensure both the successful development
4069-14 of applicant projects and the delivery of the
4070-15 renewable energy credits for the full term of the
4071-16 contract, including ongoing collateral requirements
4072-17 and other provisions deemed necessary by the Agency,
4073-18 and may include energization timelines longer than for
4074-19 comparable project types. The percentage or amount of
4075-20 capital advanced prior to project energization shall
4076-21 not operate to increase the overall contract value,
4077-22 however contracts executed under this subparagraph may
4078-23 feature renewable energy credit prices higher than
4079-24 those offered to similar projects participating in
4080-25 other categories. Capital advanced prior to
4081-26 energization shall serve to reduce the ratable
4082-
4083-
4084-
4085-
4086-
4087- HB0587 Enrolled - 114 - LRB103 04172 CPF 49178 b
4088-
4089-
4090-HB0587 Enrolled- 115 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 115 - LRB103 04172 CPF 49178 b
4091- HB0587 Enrolled - 115 - LRB103 04172 CPF 49178 b
4092-1 payments made after energization under items (ii) and
4093-2 (iii) of subparagraph (L) or payments made for each
4094-3 renewable energy credit delivery under item (iv) of
4095-4 subparagraph (L).
4096-5 (vii) The remaining capacity shall be allocated by
4097-6 the Agency in order to respond to market demand. The
4098-7 Agency shall allocate any discretionary capacity prior
4099-8 to the beginning of each delivery year.
4100-9 To the extent there is uncontracted capacity from any
4101-10 block in any of categories (i) through (vi) at the end of a
4102-11 delivery year, the Agency shall redistribute that capacity
4103-12 to one or more other categories giving priority to
4104-13 categories with projects on a waitlist. The redistributed
4105-14 capacity shall be added to the annual capacity in the
4106-15 subsequent delivery year, and the price for renewable
4107-16 energy credits shall be the price for the new delivery
4108-17 year. Redistributed capacity shall not be considered
4109-18 redistributed when determining whether the goals in this
4110-19 subsection (K) have been met.
4111-20 Notwithstanding anything to the contrary, as the
4112-21 Agency increases the capacity in item (vi) to 40% over
4113-22 time, the Agency may reduce the capacity of items (i)
4114-23 through (v) proportionate to the capacity of the
4115-24 categories of projects in item (vi), to achieve a balance
4116-25 of project types.
4117-26 The Adjustable Block program shall be designed to
4118-
4119-
4120-
4121-
4122-
4123- HB0587 Enrolled - 115 - LRB103 04172 CPF 49178 b
4124-
4125-
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4127- HB0587 Enrolled - 116 - LRB103 04172 CPF 49178 b
4128-1 ensure that renewable energy credits are procured from
4129-2 projects in diverse locations and are not concentrated in
4130-3 a few regional areas.
4131-4 (L) Notwithstanding provisions for advancing capital
4132-5 prior to project energization found in item (vi) of
4133-6 subparagraph (K), the procurement of photovoltaic
4134-7 renewable energy credits under items (i) through (vi) of
4135-8 subparagraph (K) of this paragraph (1) shall otherwise be
4136-9 subject to the following contract and payment terms:
4137-10 (i) (Blank).
4138-11 (ii) For those renewable energy credits that
4139-12 qualify and are procured under item (i) of
4140-13 subparagraph (K) of this paragraph (1), and any
4141-14 similar category projects that are procured under item
4142-15 (vi) of subparagraph (K) of this paragraph (1) that
4143-16 qualify and are procured under item (vi), the contract
4144-17 length shall be 15 years. The renewable energy credit
4145-18 delivery contract value shall be paid in full, based
4146-19 on the estimated generation during the first 15 years
4147-20 of operation, by the contracting utilities at the time
4148-21 that the facility producing the renewable energy
4149-22 credits is interconnected at the distribution system
4150-23 level of the utility and verified as energized and
4151-24 compliant by the Program Administrator. The electric
4152-25 utility shall receive and retire all renewable energy
4153-26 credits generated by the project for the first 15
4154-
4155-
4156-
4157-
4158-
4159- HB0587 Enrolled - 116 - LRB103 04172 CPF 49178 b
4160-
4161-
4162-HB0587 Enrolled- 117 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 117 - LRB103 04172 CPF 49178 b
4163- HB0587 Enrolled - 117 - LRB103 04172 CPF 49178 b
4164-1 years of operation. Renewable energy credits generated
4165-2 by the project thereafter shall not be transferred
4166-3 under the renewable energy credit delivery contract
4167-4 with the counterparty electric utility.
4168-5 (iii) For those renewable energy credits that
4169-6 qualify and are procured under item (ii) and (v) of
4170-7 subparagraph (K) of this paragraph (1) and any like
4171-8 projects similar category that qualify and are
4172-9 procured under item (vi), the contract length shall be
4173-10 15 years. 15% of the renewable energy credit delivery
4174-11 contract value, based on the estimated generation
4175-12 during the first 15 years of operation, shall be paid
4176-13 by the contracting utilities at the time that the
4177-14 facility producing the renewable energy credits is
4178-15 interconnected at the distribution system level of the
4179-16 utility and verified as energized and compliant by the
4180-17 Program Administrator. The remaining portion shall be
4181-18 paid ratably over the subsequent 6-year period. The
4182-19 electric utility shall receive and retire all
4183-20 renewable energy credits generated by the project for
4184-21 the first 15 years of operation. Renewable energy
4185-22 credits generated by the project thereafter shall not
4186-23 be transferred under the renewable energy credit
4187-24 delivery contract with the counterparty electric
4188-25 utility.
4189-26 (iv) For those renewable energy credits that
4190-
4191-
4192-
4193-
4194-
4195- HB0587 Enrolled - 117 - LRB103 04172 CPF 49178 b
4196-
4197-
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4199- HB0587 Enrolled - 118 - LRB103 04172 CPF 49178 b
4200-1 qualify and are procured under items (iii) and (iv) of
4201-2 subparagraph (K) of this paragraph (1), and any like
4202-3 projects that qualify and are procured under item
4203-4 (vi), the renewable energy credit delivery contract
4204-5 length shall be 20 years and shall be paid over the
4205-6 delivery term, not to exceed during each delivery year
4206-7 the contract price multiplied by the estimated annual
4207-8 renewable energy credit generation amount. If
4208-9 generation of renewable energy credits during a
4209-10 delivery year exceeds the estimated annual generation
4210-11 amount, the excess renewable energy credits shall be
4211-12 carried forward to future delivery years and shall not
4212-13 expire during the delivery term. If generation of
4213-14 renewable energy credits during a delivery year,
4214-15 including carried forward excess renewable energy
4215-16 credits, if any, is less than the estimated annual
4216-17 generation amount, payments during such delivery year
4217-18 will not exceed the quantity generated plus the
4218-19 quantity carried forward multiplied by the contract
4219-20 price. The electric utility shall receive all
4220-21 renewable energy credits generated by the project
4221-22 during the first 20 years of operation and retire all
4222-23 renewable energy credits paid for under this item (iv)
4223-24 and return at the end of the delivery term all
4224-25 renewable energy credits that were not paid for.
4225-26 Renewable energy credits generated by the project
4226-
4227-
4228-
4229-
4230-
4231- HB0587 Enrolled - 118 - LRB103 04172 CPF 49178 b
4232-
4233-
4234-HB0587 Enrolled- 119 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 119 - LRB103 04172 CPF 49178 b
4235- HB0587 Enrolled - 119 - LRB103 04172 CPF 49178 b
4236-1 thereafter shall not be transferred under the
4237-2 renewable energy credit delivery contract with the
4238-3 counterparty electric utility. Notwithstanding the
4239-4 preceding, for those projects participating under item
4240-5 (iii) of subparagraph (K), the contract price for a
4241-6 delivery year shall be based on subscription levels as
4242-7 measured on the higher of the first business day of the
4243-8 delivery year or the first business day 6 months after
4244-9 the first business day of the delivery year.
4245-10 Subscription of 90% of nameplate capacity or greater
4246-11 shall be deemed to be fully subscribed for the
4247-12 purposes of this item (iv). For projects receiving a
4248-13 20-year delivery contract, REC prices shall be
4249-14 adjusted downward for consistency with the incentive
4250-15 levels previously determined to be necessary to
4251-16 support projects under 15-year delivery contracts,
4252-17 taking into consideration any additional new
4253-18 requirements placed on the projects, including, but
4254-19 not limited to, labor standards.
4255-20 (v) Each contract shall include provisions to
4256-21 ensure the delivery of the estimated quantity of
4257-22 renewable energy credits and ongoing collateral
4258-23 requirements and other provisions deemed appropriate
4259-24 by the Agency.
4260-25 (vi) The utility shall be the counterparty to the
4261-26 contracts executed under this subparagraph (L) that
4262-
4263-
4264-
4265-
4266-
4267- HB0587 Enrolled - 119 - LRB103 04172 CPF 49178 b
4268-
4269-
4270-HB0587 Enrolled- 120 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 120 - LRB103 04172 CPF 49178 b
4271- HB0587 Enrolled - 120 - LRB103 04172 CPF 49178 b
4272-1 are approved by the Commission under the process
4273-2 described in Section 16-111.5 of the Public Utilities
4274-3 Act. No contract shall be executed for an amount that
4275-4 is less than one renewable energy credit per year.
4276-5 (vii) If, at any time, approved applications for
4277-6 the Adjustable Block program exceed funds collected by
4278-7 the electric utility or would cause the Agency to
4279-8 exceed the limitation described in subparagraph (E) of
4280-9 this paragraph (1) on the amount of renewable energy
4281-10 resources that may be procured, then the Agency may
4282-11 consider future uncommitted funds to be reserved for
4283-12 these contracts on a first-come, first-served basis.
4284-13 (viii) Nothing in this Section shall require the
4285-14 utility to advance any payment or pay any amounts that
4286-15 exceed the actual amount of revenues anticipated to be
4287-16 collected by the utility under paragraph (6) of this
4288-17 subsection (c) and subsection (k) of Section 16-108 of
4289-18 the Public Utilities Act inclusive of eligible funds
4290-19 collected in prior years and alternative compliance
4291-20 payments for use by the utility, and contracts
4292-21 executed under this Section shall expressly
4293-22 incorporate this limitation.
4294-23 (ix) Notwithstanding other requirements of this
4295-24 subparagraph (L), no modification shall be required to
4296-25 Adjustable Block program contracts if they were
4297-26 already executed prior to the establishment, approval,
4298-
4299-
4300-
4301-
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4304-
4305-
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4307- HB0587 Enrolled - 121 - LRB103 04172 CPF 49178 b
4308-1 and implementation of new contract forms as a result
4309-2 of this amendatory Act of the 102nd General Assembly.
4310-3 (x) Contracts may be assignable, but only to
4311-4 entities first deemed by the Agency to have met
4312-5 program terms and requirements applicable to direct
4313-6 program participation. In developing contracts for the
4314-7 delivery of renewable energy credits, the Agency shall
4315-8 be permitted to establish fees applicable to each
4316-9 contract assignment.
4317-10 (M) The Agency shall be authorized to retain one or
4318-11 more experts or expert consulting firms to develop,
4319-12 administer, implement, operate, and evaluate the
4320-13 Adjustable Block program described in subparagraph (K) of
4321-14 this paragraph (1), and the Agency shall retain the
4322-15 consultant or consultants in the same manner, to the
4323-16 extent practicable, as the Agency retains others to
4324-17 administer provisions of this Act, including, but not
4325-18 limited to, the procurement administrator. The selection
4326-19 of experts and expert consulting firms and the procurement
4327-20 process described in this subparagraph (M) are exempt from
4328-21 the requirements of Section 20-10 of the Illinois
4329-22 Procurement Code, under Section 20-10 of that Code. The
4330-23 Agency shall strive to minimize administrative expenses in
4331-24 the implementation of the Adjustable Block program.
4332-25 The Program Administrator may charge application fees
4333-26 to participating firms to cover the cost of program
4334-
4335-
4336-
4337-
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4339- HB0587 Enrolled - 121 - LRB103 04172 CPF 49178 b
4340-
4341-
4342-HB0587 Enrolled- 122 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 122 - LRB103 04172 CPF 49178 b
4343- HB0587 Enrolled - 122 - LRB103 04172 CPF 49178 b
4344-1 administration. Any application fee amounts shall
4345-2 initially be determined through the long-term renewable
4346-3 resources procurement plan, and modifications to any
4347-4 application fee that deviate more than 25% from the
4348-5 Commission's approved value must be approved by the
4349-6 Commission as a long-term plan revision under Section
4350-7 16-111.5 of the Public Utilities Act. The Agency shall
4351-8 consider stakeholder feedback when making adjustments to
4352-9 application fees and shall notify stakeholders in advance
4353-10 of any planned changes.
4354-11 In addition to covering the costs of program
4355-12 administration, the Agency, in conjunction with its
4356-13 Program Administrator, may also use the proceeds of such
4357-14 fees charged to participating firms to support public
4358-15 education and ongoing regional and national coordination
4359-16 with nonprofit organizations, public bodies, and others
4360-17 engaged in the implementation of renewable energy
4361-18 incentive programs or similar initiatives. This work may
4362-19 include developing papers and reports, hosting regional
4363-20 and national conferences, and other work deemed necessary
4364-21 by the Agency to position the State of Illinois as a
4365-22 national leader in renewable energy incentive program
4366-23 development and administration.
4367-24 The Agency and its consultant or consultants shall
4368-25 monitor block activity, share program activity with
4369-26 stakeholders and conduct quarterly meetings to discuss
4370-
4371-
4372-
4373-
4374-
4375- HB0587 Enrolled - 122 - LRB103 04172 CPF 49178 b
4376-
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4380-1 program activity and market conditions. If necessary, the
4381-2 Agency may make prospective administrative adjustments to
4382-3 the Adjustable Block program design, such as making
4383-4 adjustments to purchase prices as necessary to achieve the
4384-5 goals of this subsection (c). Program modifications to any
4385-6 block price that do not deviate from the Commission's
4386-7 approved value by more than 10% shall take effect
4387-8 immediately and are not subject to Commission review and
4388-9 approval. Program modifications to any block price that
4389-10 deviate more than 10% from the Commission's approved value
4390-11 must be approved by the Commission as a long-term plan
4391-12 amendment under Section 16-111.5 of the Public Utilities
4392-13 Act. The Agency shall consider stakeholder feedback when
4393-14 making adjustments to the Adjustable Block design and
4394-15 shall notify stakeholders in advance of any planned
4395-16 changes.
4396-17 The Agency and its program administrators for both the
4397-18 Adjustable Block program and the Illinois Solar for All
4398-19 Program, consistent with the requirements of this
4399-20 subsection (c) and subsection (b) of Section 1-56 of this
4400-21 Act, shall propose the Adjustable Block program terms,
4401-22 conditions, and requirements, including the prices to be
4402-23 paid for renewable energy credits, where applicable, and
4403-24 requirements applicable to participating entities and
4404-25 project applications, through the development, review, and
4405-26 approval of the Agency's long-term renewable resources
4406-
4407-
4408-
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4412-
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4415- HB0587 Enrolled - 124 - LRB103 04172 CPF 49178 b
4416-1 procurement plan described in this subsection (c) and
4417-2 paragraph (5) of subsection (b) of Section 16-111.5 of the
4418-3 Public Utilities Act. Terms, conditions, and requirements
4419-4 for program participation shall include the following:
4420-5 (i) The Agency shall establish a registration
4421-6 process for entities seeking to qualify for
4422-7 program-administered incentive funding and establish
4423-8 baseline qualifications for vendor approval. The
4424-9 Agency must maintain a list of approved entities on
4425-10 each program's website, and may revoke a vendor's
4426-11 ability to receive program-administered incentive
4427-12 funding status upon a determination that the vendor
4428-13 failed to comply with contract terms, the law, or
4429-14 other program requirements.
4430-15 (ii) The Agency shall establish program
4431-16 requirements and minimum contract terms to ensure
4432-17 projects are properly installed and produce their
4433-18 expected amounts of energy. Program requirements may
4434-19 include on-site inspections and photo documentation of
4435-20 projects under construction. The Agency may require
4436-21 repairs, alterations, or additions to remedy any
4437-22 material deficiencies discovered. Vendors who have a
4438-23 disproportionately high number of deficient systems
4439-24 may lose their eligibility to continue to receive
4440-25 State-administered incentive funding through Agency
4441-26 programs and procurements.
4442-
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4451- HB0587 Enrolled - 125 - LRB103 04172 CPF 49178 b
4452-1 (iii) To discourage deceptive marketing or other
4453-2 bad faith business practices, the Agency may require
4454-3 direct program participants, including agents
4455-4 operating on their behalf, to provide standardized
4456-5 disclosures to a customer prior to that customer's
4457-6 execution of a contract for the development of a
4458-7 distributed generation system or a subscription to a
4459-8 community solar project.
4460-9 (iv) The Agency shall establish one or multiple
4461-10 Consumer Complaints Centers to accept complaints
4462-11 regarding businesses that participate in, or otherwise
4463-12 benefit from, State-administered incentive funding
4464-13 through Agency-administered programs. The Agency shall
4465-14 maintain a public database of complaints with any
4466-15 confidential or particularly sensitive information
4467-16 redacted from public entries.
4468-17 (v) Through a filing in the proceeding for the
4469-18 approval of its long-term renewable energy resources
4470-19 procurement plan, the Agency shall provide an annual
4471-20 written report to the Illinois Commerce Commission
4472-21 documenting the frequency and nature of complaints and
4473-22 any enforcement actions taken in response to those
4474-23 complaints.
4475-24 (vi) The Agency shall schedule regular meetings
4476-25 with representatives of the Office of the Attorney
4477-26 General, the Illinois Commerce Commission, consumer
4478-
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4488-1 protection groups, and other interested stakeholders
4489-2 to share relevant information about consumer
4490-3 protection, project compliance, and complaints
4491-4 received.
4492-5 (vii) To the extent that complaints received
4493-6 implicate the jurisdiction of the Office of the
4494-7 Attorney General, the Illinois Commerce Commission, or
4495-8 local, State, or federal law enforcement, the Agency
4496-9 shall also refer complaints to those entities as
4497-10 appropriate.
4498-11 (N) The Agency shall establish the terms, conditions,
4499-12 and program requirements for photovoltaic community
4500-13 renewable generation projects with a goal to expand access
4501-14 to a broader group of energy consumers, to ensure robust
4502-15 participation opportunities for residential and small
4503-16 commercial customers and those who cannot install
4504-17 renewable energy on their own properties. Subject to
4505-18 reasonable limitations, any plan approved by the
4506-19 Commission shall allow subscriptions to community
4507-20 renewable generation projects to be portable and
4508-21 transferable. For purposes of this subparagraph (N),
4509-22 "portable" means that subscriptions may be retained by the
4510-23 subscriber even if the subscriber relocates or changes its
4511-24 address within the same utility service territory; and
4512-25 "transferable" means that a subscriber may assign or sell
4513-26 subscriptions to another person within the same utility
4514-
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4523- HB0587 Enrolled - 127 - LRB103 04172 CPF 49178 b
4524-1 service territory.
4525-2 Through the development of its long-term renewable
4526-3 resources procurement plan, the Agency may consider
4527-4 whether community renewable generation projects utilizing
4528-5 technologies other than photovoltaics should be supported
4529-6 through State-administered incentive funding, and may
4530-7 issue requests for information to gauge market demand.
4531-8 Electric utilities shall provide a monetary credit to
4532-9 a subscriber's subsequent bill for service for the
4533-10 proportional output of a community renewable generation
4534-11 project attributable to that subscriber as specified in
4535-12 Section 16-107.5 of the Public Utilities Act.
4536-13 The Agency shall purchase renewable energy credits
4537-14 from subscribed shares of photovoltaic community renewable
4538-15 generation projects through the Adjustable Block program
4539-16 described in subparagraph (K) of this paragraph (1) or
4540-17 through the Illinois Solar for All Program described in
4541-18 Section 1-56 of this Act. The electric utility shall
4542-19 purchase any unsubscribed energy from community renewable
4543-20 generation projects that are Qualifying Facilities ("QF")
4544-21 under the electric utility's tariff for purchasing the
4545-22 output from QFs under Public Utilities Regulatory Policies
4546-23 Act of 1978.
4547-24 The owners of and any subscribers to a community
4548-25 renewable generation project shall not be considered
4549-26 public utilities or alternative retail electricity
4550-
4551-
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4559- HB0587 Enrolled - 128 - LRB103 04172 CPF 49178 b
4560-1 suppliers under the Public Utilities Act solely as a
4561-2 result of their interest in or subscription to a community
4562-3 renewable generation project and shall not be required to
4563-4 become an alternative retail electric supplier by
4564-5 participating in a community renewable generation project
4565-6 with a public utility.
4566-7 (O) For the delivery year beginning June 1, 2018, the
4567-8 long-term renewable resources procurement plan required by
4568-9 this subsection (c) shall provide for the Agency to
4569-10 procure contracts to continue offering the Illinois Solar
4570-11 for All Program described in subsection (b) of Section
4571-12 1-56 of this Act, and the contracts approved by the
4572-13 Commission shall be executed by the utilities that are
4573-14 subject to this subsection (c). The long-term renewable
4574-15 resources procurement plan shall allocate up to
4575-16 $50,000,000 per delivery year to fund the programs, and
4576-17 the plan shall determine the amount of funding to be
4577-18 apportioned to the programs identified in subsection (b)
4578-19 of Section 1-56 of this Act; provided that for the
4579-20 delivery years beginning June 1, 2021, June 1, 2022, and
4580-21 June 1, 2023, the long-term renewable resources
4581-22 procurement plan may average the annual budgets over a
4582-23 3-year period to account for program ramp-up. For the
4583-24 delivery years beginning June 1, 2021, June 1, 2024, June
4584-25 1, 2027, and June 1, 2030 and additional $10,000,000 shall
4585-26 be provided to the Department of Commerce and Economic
4586-
4587-
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4592-
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4595- HB0587 Enrolled - 129 - LRB103 04172 CPF 49178 b
4596-1 Opportunity to implement the workforce development
4597-2 programs and reporting as outlined in Section 16-108.12 of
4598-3 the Public Utilities Act. In making the determinations
4599-4 required under this subparagraph (O), the Commission shall
4600-5 consider the experience and performance under the programs
4601-6 and any evaluation reports. The Commission shall also
4602-7 provide for an independent evaluation of those programs on
4603-8 a periodic basis that are funded under this subparagraph
4604-9 (O).
4605-10 (P) All programs and procurements under this
4606-11 subsection (c) shall be designed to encourage
4607-12 participating projects to use a diverse and equitable
4608-13 workforce and a diverse set of contractors, including
4609-14 minority-owned businesses, disadvantaged businesses,
4610-15 trade unions, graduates of any workforce training programs
4611-16 administered under this Act, and small businesses.
4612-17 The Agency shall develop a method to optimize
4613-18 procurement of renewable energy credits from proposed
4614-19 utility-scale projects that are located in communities
4615-20 eligible to receive Energy Transition Community Grants
4616-21 pursuant to Section 10-20 of the Energy Community
4617-22 Reinvestment Act. If this requirement conflicts with other
4618-23 provisions of law or the Agency determines that full
4619-24 compliance with the requirements of this subparagraph (P)
4620-25 would be unreasonably costly or administratively
4621-26 impractical, the Agency is to propose alternative
4622-
4623-
4624-
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4628-
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4631- HB0587 Enrolled - 130 - LRB103 04172 CPF 49178 b
4632-1 approaches to achieve development of renewable energy
4633-2 resources in communities eligible to receive Energy
4634-3 Transition Community Grants pursuant to Section 10-20 of
4635-4 the Energy Community Reinvestment Act or seek an exemption
4636-5 from this requirement from the Commission.
4637-6 (Q) Each facility listed in subitems (i) through (ix)
4638-7 of item (1) of this subparagraph (Q) for which a renewable
4639-8 energy credit delivery contract is signed after the
4640-9 effective date of this amendatory Act of the 102nd General
4641-10 Assembly is subject to the following requirements through
4642-11 the Agency's long-term renewable resources procurement
4643-12 plan:
4644-13 (1) Each facility shall be subject to the
4645-14 prevailing wage requirements included in the
4646-15 Prevailing Wage Act. The Agency shall require
4647-16 verification that all construction performed on the
4648-17 facility by the renewable energy credit delivery
4649-18 contract holder, its contractors, or its
4650-19 subcontractors relating to construction of the
4651-20 facility is performed by construction employees
4652-21 receiving an amount for that work equal to or greater
4653-22 than the general prevailing rate, as that term is
4654-23 defined in Section 3 of the Prevailing Wage Act. For
4655-24 purposes of this item (1), "house of worship" means
4656-25 property that is both (1) used exclusively by a
4657-26 religious society or body of persons as a place for
4658-
4659-
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4664-
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4667- HB0587 Enrolled - 131 - LRB103 04172 CPF 49178 b
4668-1 religious exercise or religious worship and (2)
4669-2 recognized as exempt from taxation pursuant to Section
4670-3 15-40 of the Property Tax Code. This item (1) shall
4671-4 apply to any the following:
4672-5 (i) all new utility-scale wind projects;
4673-6 (ii) all new utility-scale photovoltaic
4674-7 projects and repowered wind projects;
4675-8 (iii) all new brownfield photovoltaic
4676-9 projects;
4677-10 (iv) all new photovoltaic community renewable
4678-11 energy facilities that qualify for item (iii) of
4679-12 subparagraph (K) of this paragraph (1);
4680-13 (v) all new community driven community
4681-14 photovoltaic projects that qualify for item (v) of
4682-15 subparagraph (K) of this paragraph (1);
4683-16 (vi) all new photovoltaic projects on public
4684-17 school land that qualify for item (iv) of
4685-18 subparagraph (K) of this paragraph (1);
4686-19 (vii) all new photovoltaic distributed
4687-20 renewable energy generation devices that (1)
4688-21 qualify for item (i) of subparagraph (K) of this
4689-22 paragraph (1); (2) are not projects that serve
4690-23 single-family or multi-family residential
4691-24 buildings; and (3) are not houses of worship where
4692-25 the aggregate capacity including collocated
4693-26 projects would not exceed 100 kilowatts;
4694-
4695-
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4703- HB0587 Enrolled - 132 - LRB103 04172 CPF 49178 b
4704-1 (viii) all new photovoltaic distributed
4705-2 renewable energy generation devices that (1)
4706-3 qualify for item (ii) of subparagraph (K) of this
4707-4 paragraph (1); (2) are not projects that serve
4708-5 single-family or multi-family residential
4709-6 buildings; and (3) are not houses of worship where
4710-7 the aggregate capacity including collocated
4711-8 projects would not exceed 100 kilowatts;
4712-9 (ix) all new, modernized, or retooled
4713-10 hydropower facilities.
4714-11 (2) Renewable energy credits procured from new
4715-12 utility-scale wind projects, new utility-scale solar
4716-13 projects, and new brownfield solar projects, repowered
4717-14 wind projects, and retooled hydropower facilities
4718-15 pursuant to Agency procurement events occurring after
4719-16 the effective date of this amendatory Act of the 102nd
4720-17 General Assembly must be from facilities built by
4721-18 general contractors that must enter into a project
4722-19 labor agreement, as defined by this Act, prior to
4723-20 construction. The project labor agreement shall be
4724-21 filed with the Director in accordance with procedures
4725-22 established by the Agency through its long-term
4726-23 renewable resources procurement plan. Any information
4727-24 submitted to the Agency in this item (2) shall be
4728-25 considered commercially sensitive information. At a
4729-26 minimum, the project labor agreement must provide the
4730-
4731-
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4739- HB0587 Enrolled - 133 - LRB103 04172 CPF 49178 b
4740-1 names, addresses, and occupations of the owner of the
4741-2 plant and the individuals representing the labor
4742-3 organization employees participating in the project
4743-4 labor agreement consistent with the Project Labor
4744-5 Agreements Act. The agreement must also specify the
4745-6 terms and conditions as defined by this Act.
4746-7 (3) It is the intent of this Section to ensure that
4747-8 economic development occurs across Illinois
4748-9 communities, that emerging businesses may grow, and
4749-10 that there is improved access to the clean energy
4750-11 economy by persons who have greater economic burdens
4751-12 to success. The Agency shall take into consideration
4752-13 the unique cost of compliance of this subparagraph (Q)
4753-14 that might be borne by equity eligible contractors,
4754-15 shall include such costs when determining the price of
4755-16 renewable energy credits in the Adjustable Block
4756-17 program, and shall take such costs into consideration
4757-18 in a nondiscriminatory manner when comparing bids for
4758-19 competitive procurements. The Agency shall consider
4759-20 costs associated with compliance whether in the
4760-21 development, financing, or construction of projects.
4761-22 The Agency shall periodically review the assumptions
4762-23 in these costs and may adjust prices, in compliance
4763-24 with subparagraph (M) of this paragraph (1).
4764-25 (R) In its long-term renewable resources procurement
4765-26 plan, the Agency shall establish a self-direct renewable
4766-
4767-
4768-
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4775- HB0587 Enrolled - 134 - LRB103 04172 CPF 49178 b
4776-1 portfolio standard compliance program for eligible
4777-2 self-direct customers that purchase renewable energy
4778-3 credits from utility-scale wind and solar projects through
4779-4 long-term agreements for purchase of renewable energy
4780-5 credits as described in this Section. Such long-term
4781-6 agreements may include the purchase of energy or other
4782-7 products on a physical or financial basis and may involve
4783-8 an alternative retail electric supplier as defined in
4784-9 Section 16-102 of the Public Utilities Act. This program
4785-10 shall take effect in the delivery year commencing June 1,
4786-11 2023.
4787-12 (1) For the purposes of this subparagraph:
4788-13 "Eligible self-direct customer" means any retail
4789-14 customers of an electric utility that serves 3,000,000
4790-15 or more retail customers in the State and whose total
4791-16 highest 30-minute demand was more than 10,000
4792-17 kilowatts, or any retail customers of an electric
4793-18 utility that serves less than 3,000,000 retail
4794-19 customers but more than 500,000 retail customers in
4795-20 the State and whose total highest 15-minute demand was
4796-21 more than 10,000 kilowatts.
4797-22 "Retail customer" has the meaning set forth in
4798-23 Section 16-102 of the Public Utilities Act and
4799-24 multiple retail customer accounts under the same
4800-25 corporate parent may aggregate their account demands
4801-26 to meet the 10,000 kilowatt threshold. The criteria
4802-
4803-
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4811- HB0587 Enrolled - 135 - LRB103 04172 CPF 49178 b
4812-1 for determining whether this subparagraph is
4813-2 applicable to a retail customer shall be based on the
4814-3 12 consecutive billing periods prior to the start of
4815-4 the year in which the application is filed.
4816-5 (2) For renewable energy credits to count toward
4817-6 the self-direct renewable portfolio standard
4818-7 compliance program, they must:
4819-8 (i) qualify as renewable energy credits as
4820-9 defined in Section 1-10 of this Act;
4821-10 (ii) be sourced from one or more renewable
4822-11 energy generating facilities that comply with the
4823-12 geographic requirements as set forth in
4824-13 subparagraph (I) of paragraph (1) of subsection
4825-14 (c) as interpreted through the Agency's long-term
4826-15 renewable resources procurement plan, or, where
4827-16 applicable, the geographic requirements that
4828-17 governed utility-scale renewable energy credits at
4829-18 the time the eligible self-direct customer entered
4830-19 into the applicable renewable energy credit
4831-20 purchase agreement;
4832-21 (iii) be procured through long-term contracts
4833-22 with term lengths of at least 10 years either
4834-23 directly with the renewable energy generating
4835-24 facility or through a bundled power purchase
4836-25 agreement, a virtual power purchase agreement, an
4837-26 agreement between the renewable generating
4838-
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4848-1 facility, an alternative retail electric supplier,
4849-2 and the customer, or such other structure as is
4850-3 permissible under this subparagraph (R);
4851-4 (iv) be equivalent in volume to at least 40%
4852-5 of the eligible self-direct customer's usage,
4853-6 determined annually by the eligible self-direct
4854-7 customer's usage during the previous delivery
4855-8 year, measured to the nearest megawatt-hour;
4856-9 (v) be retired by or on behalf of the large
4857-10 energy customer;
4858-11 (vi) be sourced from new utility-scale wind
4859-12 projects or new utility-scale solar projects; and
4860-13 (vii) if the contracts for renewable energy
4861-14 credits are entered into after the effective date
4862-15 of this amendatory Act of the 102nd General
4863-16 Assembly, the new utility-scale wind projects or
4864-17 new utility-scale solar projects must comply with
4865-18 the requirements established in subparagraphs (P)
4866-19 and (Q) of paragraph (1) of this subsection (c)
4867-20 and subsection (c-10).
4868-21 (3) The self-direct renewable portfolio standard
4869-22 compliance program shall be designed to allow eligible
4870-23 self-direct customers to procure new renewable energy
4871-24 credits from new utility-scale wind projects or new
4872-25 utility-scale photovoltaic projects. The Agency shall
4873-26 annually determine the amount of utility-scale
4874-
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4883- HB0587 Enrolled - 137 - LRB103 04172 CPF 49178 b
4884-1 renewable energy credits it will include each year
4885-2 from the self-direct renewable portfolio standard
4886-3 compliance program, subject to receiving qualifying
4887-4 applications. In making this determination, the Agency
4888-5 shall evaluate publicly available analyses and studies
4889-6 of the potential market size for utility-scale
4890-7 renewable energy long-term purchase agreements by
4891-8 commercial and industrial energy customers and make
4892-9 that report publicly available. If demand for
4893-10 participation in the self-direct renewable portfolio
4894-11 standard compliance program exceeds availability, the
4895-12 Agency shall ensure participation is evenly split
4896-13 between commercial and industrial users to the extent
4897-14 there is sufficient demand from both customer classes.
4898-15 Each renewable energy credit procured pursuant to this
4899-16 subparagraph (R) by a self-direct customer shall
4900-17 reduce the total volume of renewable energy credits
4901-18 the Agency is otherwise required to procure from new
4902-19 utility-scale projects pursuant to subparagraph (C) of
4903-20 paragraph (1) of this subsection (c) on behalf of
4904-21 contracting utilities where the eligible self-direct
4905-22 customer is located. The self-direct customer shall
4906-23 file an annual compliance report with the Agency
4907-24 pursuant to terms established by the Agency through
4908-25 its long-term renewable resources procurement plan to
4909-26 be eligible for participation in this program.
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4919- HB0587 Enrolled - 138 - LRB103 04172 CPF 49178 b
4920-1 Customers must provide the Agency with their most
4921-2 recent electricity billing statements or other
4922-3 information deemed necessary by the Agency to
4923-4 demonstrate they are an eligible self-direct customer.
4924-5 (4) The Commission shall approve a reduction in
4925-6 the volumetric charges collected pursuant to Section
4926-7 16-108 of the Public Utilities Act for approved
4927-8 eligible self-direct customers equivalent to the
4928-9 anticipated cost of renewable energy credit deliveries
4929-10 under contracts for new utility-scale wind and new
4930-11 utility-scale solar entered for each delivery year
4931-12 after the large energy customer begins retiring
4932-13 eligible new utility scale renewable energy credits
4933-14 for self-compliance. The self-direct credit amount
4934-15 shall be determined annually and is equal to the
4935-16 estimated portion of the cost authorized by
4936-17 subparagraph (E) of paragraph (1) of this subsection
4937-18 (c) that supported the annual procurement of
4938-19 utility-scale renewable energy credits in the prior
4939-20 delivery year using a methodology described in the
4940-21 long-term renewable resources procurement plan,
4941-22 expressed on a per kilowatthour basis, and does not
4942-23 include (i) costs associated with any contracts
4943-24 entered into before the delivery year in which the
4944-25 customer files the initial compliance report to be
4945-26 eligible for participation in the self-direct program,
4946-
4947-
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4956-1 and (ii) costs associated with procuring renewable
4957-2 energy credits through existing and future contracts
4958-3 through the Adjustable Block Program, subsection (c-5)
4959-4 of this Section 1-75, and the Solar for All Program.
4960-5 The Agency shall assist the Commission in determining
4961-6 the current and future costs. The Agency must
4962-7 determine the self-direct credit amount for new and
4963-8 existing eligible self-direct customers and submit
4964-9 this to the Commission in an annual compliance filing.
4965-10 The Commission must approve the self-direct credit
4966-11 amount by June 1, 2023 and June 1 of each delivery year
4967-12 thereafter.
4968-13 (5) Customers described in this subparagraph (R)
4969-14 shall apply, on a form developed by the Agency, to the
4970-15 Agency to be designated as a self-direct eligible
4971-16 customer. Once the Agency determines that a
4972-17 self-direct customer is eligible for participation in
4973-18 the program, the self-direct customer will remain
4974-19 eligible until the end of the term of the contract.
4975-20 Thereafter, application may be made not less than 12
4976-21 months before the filing date of the long-term
4977-22 renewable resources procurement plan described in this
4978-23 Act. At a minimum, such application shall contain the
4979-24 following:
4980-25 (i) the customer's certification that, at the
4981-26 time of the customer's application, the customer
4982-
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4992-1 qualifies to be a self-direct eligible customer,
4993-2 including documents demonstrating that
4994-3 qualification;
4995-4 (ii) the customer's certification that the
4996-5 customer has entered into or will enter into by
4997-6 the beginning of the applicable procurement year,
4998-7 one or more bilateral contracts for new wind
4999-8 projects or new photovoltaic projects, including
5000-9 supporting documentation;
5001-10 (iii) certification that the contract or
5002-11 contracts for new renewable energy resources are
5003-12 long-term contracts with term lengths of at least
5004-13 10 years, including supporting documentation;
5005-14 (iv) certification of the quantities of
5006-15 renewable energy credits that the customer will
5007-16 purchase each year under such contract or
5008-17 contracts, including supporting documentation;
5009-18 (v) proof that the contract is sufficient to
5010-19 produce renewable energy credits to be equivalent
5011-20 in volume to at least 40% of the large energy
5012-21 customer's usage from the previous delivery year,
5013-22 measured to the nearest megawatt-hour; and
5014-23 (vi) certification that the customer intends
5015-24 to maintain the contract for the duration of the
5016-25 length of the contract.
5017-26 (6) If a customer receives the self-direct credit
5018-
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5027- HB0587 Enrolled - 141 - LRB103 04172 CPF 49178 b
5028-1 but fails to properly procure and retire renewable
5029-2 energy credits as required under this subparagraph
5030-3 (R), the Commission, on petition from the Agency and
5031-4 after notice and hearing, may direct such customer's
5032-5 utility to recover the cost of the wrongfully received
5033-6 self-direct credits plus interest through an adder to
5034-7 charges assessed pursuant to Section 16-108 of the
5035-8 Public Utilities Act. Self-direct customers who
5036-9 knowingly fail to properly procure and retire
5037-10 renewable energy credits and do not notify the Agency
5038-11 are ineligible for continued participation in the
5039-12 self-direct renewable portfolio standard compliance
5040-13 program.
5041-14 (2) (Blank).
5042-15 (3) (Blank).
5043-16 (4) The electric utility shall retire all renewable
5044-17 energy credits used to comply with the standard.
5045-18 (5) Beginning with the 2010 delivery year and ending
5046-19 June 1, 2017, an electric utility subject to this
5047-20 subsection (c) shall apply the lesser of the maximum
5048-21 alternative compliance payment rate or the most recent
5049-22 estimated alternative compliance payment rate for its
5050-23 service territory for the corresponding compliance period,
5051-24 established pursuant to subsection (d) of Section 16-115D
5052-25 of the Public Utilities Act to its retail customers that
5053-26 take service pursuant to the electric utility's hourly
5054-
5055-
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5063- HB0587 Enrolled - 142 - LRB103 04172 CPF 49178 b
5064-1 pricing tariff or tariffs. The electric utility shall
5065-2 retain all amounts collected as a result of the
5066-3 application of the alternative compliance payment rate or
5067-4 rates to such customers, and, beginning in 2011, the
5068-5 utility shall include in the information provided under
5069-6 item (1) of subsection (d) of Section 16-111.5 of the
5070-7 Public Utilities Act the amounts collected under the
5071-8 alternative compliance payment rate or rates for the prior
5072-9 year ending May 31. Notwithstanding any limitation on the
5073-10 procurement of renewable energy resources imposed by item
5074-11 (2) of this subsection (c), the Agency shall increase its
5075-12 spending on the purchase of renewable energy resources to
5076-13 be procured by the electric utility for the next plan year
5077-14 by an amount equal to the amounts collected by the utility
5078-15 under the alternative compliance payment rate or rates in
5079-16 the prior year ending May 31.
5080-17 (6) The electric utility shall be entitled to recover
5081-18 all of its costs associated with the procurement of
5082-19 renewable energy credits under plans approved under this
5083-20 Section and Section 16-111.5 of the Public Utilities Act.
5084-21 These costs shall include associated reasonable expenses
5085-22 for implementing the procurement programs, including, but
5086-23 not limited to, the costs of administering and evaluating
5087-24 the Adjustable Block program, through an automatic
5088-25 adjustment clause tariff in accordance with subsection (k)
5089-26 of Section 16-108 of the Public Utilities Act.
5090-
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5099- HB0587 Enrolled - 143 - LRB103 04172 CPF 49178 b
5100-1 (7) Renewable energy credits procured from new
5101-2 photovoltaic projects or new distributed renewable energy
5102-3 generation devices under this Section after June 1, 2017
5103-4 (the effective date of Public Act 99-906) must be procured
5104-5 from devices installed by a qualified person in compliance
5105-6 with the requirements of Section 16-128A of the Public
5106-7 Utilities Act and any rules or regulations adopted
5107-8 thereunder.
5108-9 In meeting the renewable energy requirements of this
5109-10 subsection (c), to the extent feasible and consistent with
5110-11 State and federal law, the renewable energy credit
5111-12 procurements, Adjustable Block solar program, and
5112-13 community renewable generation program shall provide
5113-14 employment opportunities for all segments of the
5114-15 population and workforce, including minority-owned and
5115-16 female-owned business enterprises, and shall not,
5116-17 consistent with State and federal law, discriminate based
5117-18 on race or socioeconomic status.
5118-19 (c-5) Procurement of renewable energy credits from new
5119-20 renewable energy facilities installed at or adjacent to the
5120-21 sites of electric generating facilities that burn or burned
5121-22 coal as their primary fuel source.
5122-23 (1) In addition to the procurement of renewable energy
5123-24 credits pursuant to long-term renewable resources
5124-25 procurement plans in accordance with subsection (c) of
5125-26 this Section and Section 16-111.5 of the Public Utilities
5126-
5127-
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5132-
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5135- HB0587 Enrolled - 144 - LRB103 04172 CPF 49178 b
5136-1 Act, the Agency shall conduct procurement events in
5137-2 accordance with this subsection (c-5) for the procurement
5138-3 by electric utilities that served more than 300,000 retail
5139-4 customers in this State as of January 1, 2019 of renewable
5140-5 energy credits from new renewable energy facilities to be
5141-6 installed at or adjacent to the sites of electric
5142-7 generating facilities that, as of January 1, 2016, burned
5143-8 coal as their primary fuel source and meet the other
5144-9 criteria specified in this subsection (c-5). For purposes
5145-10 of this subsection (c-5), "new renewable energy facility"
5146-11 means a new utility-scale solar project as defined in this
5147-12 Section 1-75. The renewable energy credits procured
5148-13 pursuant to this subsection (c-5) may be included or
5149-14 counted for purposes of compliance with the amounts of
5150-15 renewable energy credits required to be procured pursuant
5151-16 to subsection (c) of this Section to the extent that there
5152-17 are otherwise shortfalls in compliance with such
5153-18 requirements. The procurement of renewable energy credits
5154-19 by electric utilities pursuant to this subsection (c-5)
5155-20 shall be funded solely by revenues collected from the Coal
5156-21 to Solar and Energy Storage Initiative Charge provided for
5157-22 in this subsection (c-5) and subsection (i-5) of Section
5158-23 16-108 of the Public Utilities Act, shall not be funded by
5159-24 revenues collected through any of the other funding
5160-25 mechanisms provided for in subsection (c) of this Section,
5161-26 and shall not be subject to the limitation imposed by
5162-
5163-
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5168-
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5171- HB0587 Enrolled - 145 - LRB103 04172 CPF 49178 b
5172-1 subsection (c) on charges to retail customers for costs to
5173-2 procure renewable energy resources pursuant to subsection
5174-3 (c), and shall not be subject to any other requirements or
5175-4 limitations of subsection (c).
5176-5 (2) The Agency shall conduct 2 procurement events to
5177-6 select owners of electric generating facilities meeting
5178-7 the eligibility criteria specified in this subsection
5179-8 (c-5) to enter into long-term contracts to sell renewable
5180-9 energy credits to electric utilities serving more than
5181-10 300,000 retail customers in this State as of January 1,
5182-11 2019. The first procurement event shall be conducted no
5183-12 later than March 31, 2022, unless the Agency elects to
5184-13 delay it, until no later than May 1, 2022, due to its
5185-14 overall volume of work, and shall be to select owners of
5186-15 electric generating facilities located in this State and
5187-16 south of federal Interstate Highway 80 that meet the
5188-17 eligibility criteria specified in this subsection (c-5).
5189-18 The second procurement event shall be conducted no sooner
5190-19 than September 30, 2022 and no later than October 31, 2022
5191-20 and shall be to select owners of electric generating
5192-21 facilities located anywhere in this State that meet the
5193-22 eligibility criteria specified in this subsection (c-5).
5194-23 The Agency shall establish and announce a time period,
5195-24 which shall begin no later than 30 days prior to the
5196-25 scheduled date for the procurement event, during which
5197-26 applicants may submit applications to be selected as
5198-
5199-
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5207- HB0587 Enrolled - 146 - LRB103 04172 CPF 49178 b
5208-1 suppliers of renewable energy credits pursuant to this
5209-2 subsection (c-5). The eligibility criteria for selection
5210-3 as a supplier of renewable energy credits pursuant to this
5211-4 subsection (c-5) shall be as follows:
5212-5 (A) The applicant owns an electric generating
5213-6 facility located in this State that: (i) as of January
5214-7 1, 2016, burned coal as its primary fuel to generate
5215-8 electricity; and (ii) has, or had prior to retirement,
5216-9 an electric generating capacity of at least 150
5217-10 megawatts. The electric generating facility can be
5218-11 either: (i) retired as of the date of the procurement
5219-12 event; or (ii) still operating as of the date of the
5220-13 procurement event.
5221-14 (B) The applicant is not (i) an electric
5222-15 cooperative as defined in Section 3-119 of the Public
5223-16 Utilities Act, or (ii) an entity described in
5224-17 subsection (b)(1) of Section 3-105 of the Public
5225-18 Utilities Act, or an association or consortium of or
5226-19 an entity owned by entities described in (i) or (ii);
5227-20 and the coal-fueled electric generating facility was
5228-21 at one time owned, in whole or in part, by a public
5229-22 utility as defined in Section 3-105 of the Public
5230-23 Utilities Act.
5231-24 (C) If participating in the first procurement
5232-25 event, the applicant proposes and commits to construct
5233-26 and operate, at the site, and if necessary for
5234-
5235-
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5243- HB0587 Enrolled - 147 - LRB103 04172 CPF 49178 b
5244-1 sufficient space on property adjacent to the existing
5245-2 property, at which the electric generating facility
5246-3 identified in paragraph (A) is located: (i) a new
5247-4 renewable energy facility of at least 20 megawatts but
5248-5 no more than 100 megawatts of electric generating
5249-6 capacity, and (ii) an energy storage facility having a
5250-7 storage capacity equal to at least 2 megawatts and at
5251-8 most 10 megawatts. If participating in the second
5252-9 procurement event, the applicant proposes and commits
5253-10 to construct and operate, at the site, and if
5254-11 necessary for sufficient space on property adjacent to
5255-12 the existing property, at which the electric
5256-13 generating facility identified in paragraph (A) is
5257-14 located: (i) a new renewable energy facility of at
5258-15 least 5 megawatts but no more than 20 megawatts of
5259-16 electric generating capacity, and (ii) an energy
5260-17 storage facility having a storage capacity equal to at
5261-18 least 0.5 megawatts and at most one megawatt.
5262-19 (D) The applicant agrees that the new renewable
5263-20 energy facility and the energy storage facility will
5264-21 be constructed or installed by a qualified entity or
5265-22 entities in compliance with the requirements of
5266-23 subsection (g) of Section 16-128A of the Public
5267-24 Utilities Act and any rules adopted thereunder.
5268-25 (E) The applicant agrees that personnel operating
5269-26 the new renewable energy facility and the energy
5270-
5271-
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5279- HB0587 Enrolled - 148 - LRB103 04172 CPF 49178 b
5280-1 storage facility will have the requisite skills,
5281-2 knowledge, training, experience, and competence, which
5282-3 may be demonstrated by completion or current
5283-4 participation and ultimate completion by employees of
5284-5 an accredited or otherwise recognized apprenticeship
5285-6 program for the employee's particular craft, trade, or
5286-7 skill, including through training and education
5287-8 courses and opportunities offered by the owner to
5288-9 employees of the coal-fueled electric generating
5289-10 facility or by previous employment experience
5290-11 performing the employee's particular work skill or
5291-12 function.
5292-13 (F) The applicant commits that not less than the
5293-14 prevailing wage, as determined pursuant to the
5294-15 Prevailing Wage Act, will be paid to the applicant's
5295-16 employees engaged in construction activities
5296-17 associated with the new renewable energy facility and
5297-18 the new energy storage facility and to the employees
5298-19 of applicant's contractors engaged in construction
5299-20 activities associated with the new renewable energy
5300-21 facility and the new energy storage facility, and
5301-22 that, on or before the commercial operation date of
5302-23 the new renewable energy facility, the applicant shall
5303-24 file a report with the Agency certifying that the
5304-25 requirements of this subparagraph (F) have been met.
5305-26 (G) The applicant commits that if selected, it
5306-
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5315- HB0587 Enrolled - 149 - LRB103 04172 CPF 49178 b
5316-1 will negotiate a project labor agreement for the
5317-2 construction of the new renewable energy facility and
5318-3 associated energy storage facility that includes
5319-4 provisions requiring the parties to the agreement to
5320-5 work together to establish diversity threshold
5321-6 requirements and to ensure best efforts to meet
5322-7 diversity targets, improve diversity at the applicable
5323-8 job site, create diverse apprenticeship opportunities,
5324-9 and create opportunities to employ former coal-fired
5325-10 power plant workers.
5326-11 (H) The applicant commits to enter into a contract
5327-12 or contracts for the applicable duration to provide
5328-13 specified numbers of renewable energy credits each
5329-14 year from the new renewable energy facility to
5330-15 electric utilities that served more than 300,000
5331-16 retail customers in this State as of January 1, 2019,
5332-17 at a price of $30 per renewable energy credit. The
5333-18 price per renewable energy credit shall be fixed at
5334-19 $30 for the applicable duration and the renewable
5335-20 energy credits shall not be indexed renewable energy
5336-21 credits as provided for in item (v) of subparagraph
5337-22 (G) of paragraph (1) of subsection (c) of Section 1-75
5338-23 of this Act. The applicable duration of each contract
5339-24 shall be 20 years, unless the applicant is physically
5340-25 interconnected to the PJM Interconnection, LLC
5341-26 transmission grid and had a generating capacity of at
5342-
5343-
5344-
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5348-
5349-
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5351- HB0587 Enrolled - 150 - LRB103 04172 CPF 49178 b
5352-1 least 1,200 megawatts as of January 1, 2021, in which
5353-2 case the applicable duration of the contract shall be
5354-3 15 years.
5355-4 (I) The applicant's application is certified by an
5356-5 officer of the applicant and by an officer of the
5357-6 applicant's ultimate parent company, if any.
5358-7 (3) An applicant may submit applications to contract
5359-8 to supply renewable energy credits from more than one new
5360-9 renewable energy facility to be constructed at or adjacent
5361-10 to one or more qualifying electric generating facilities
5362-11 owned by the applicant. The Agency may select new
5363-12 renewable energy facilities to be located at or adjacent
5364-13 to the sites of more than one qualifying electric
5365-14 generation facility owned by an applicant to contract with
5366-15 electric utilities to supply renewable energy credits from
5367-16 such facilities.
5368-17 (4) The Agency shall assess fees to each applicant to
5369-18 recover the Agency's costs incurred in receiving and
5370-19 evaluating applications, conducting the procurement event,
5371-20 developing contracts for sale, delivery and purchase of
5372-21 renewable energy credits, and monitoring the
5373-22 administration of such contracts, as provided for in this
5374-23 subsection (c-5), including fees paid to a procurement
5375-24 administrator retained by the Agency for one or more of
5376-25 these purposes.
5377-26 (5) The Agency shall select the applicants and the new
5378-
5379-
5380-
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5387- HB0587 Enrolled - 151 - LRB103 04172 CPF 49178 b
5388-1 renewable energy facilities to contract with electric
5389-2 utilities to supply renewable energy credits in accordance
5390-3 with this subsection (c-5). In the first procurement
5391-4 event, the Agency shall select applicants and new
5392-5 renewable energy facilities to supply renewable energy
5393-6 credits, at a price of $30 per renewable energy credit,
5394-7 aggregating to no less than 400,000 renewable energy
5395-8 credits per year for the applicable duration, assuming
5396-9 sufficient qualifying applications to supply, in the
5397-10 aggregate, at least that amount of renewable energy
5398-11 credits per year; and not more than 580,000 renewable
5399-12 energy credits per year for the applicable duration. In
5400-13 the second procurement event, the Agency shall select
5401-14 applicants and new renewable energy facilities to supply
5402-15 renewable energy credits, at a price of $30 per renewable
5403-16 energy credit, aggregating to no more than 625,000
5404-17 renewable energy credits per year less the amount of
5405-18 renewable energy credits each year contracted for as a
5406-19 result of the first procurement event, for the applicable
5407-20 durations. The number of renewable energy credits to be
5408-21 procured as specified in this paragraph (5) shall not be
5409-22 reduced based on renewable energy credits procured in the
5410-23 self-direct renewable energy credit compliance program
5411-24 established pursuant to subparagraph (R) of paragraph (1)
5412-25 of subsection (c) of Section 1-75.
5413-26 (6) The obligation to purchase renewable energy
5414-
5415-
5416-
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5423- HB0587 Enrolled - 152 - LRB103 04172 CPF 49178 b
5424-1 credits from the applicants and their new renewable energy
5425-2 facilities selected by the Agency shall be allocated to
5426-3 the electric utilities based on their respective
5427-4 percentages of kilowatthours delivered to delivery
5428-5 services customers to the aggregate kilowatthour
5429-6 deliveries by the electric utilities to delivery services
5430-7 customers for the year ended December 31, 2021. In order
5431-8 to achieve these allocation percentages between or among
5432-9 the electric utilities, the Agency shall require each
5433-10 applicant that is selected in the procurement event to
5434-11 enter into a contract with each electric utility for the
5435-12 sale and purchase of renewable energy credits from each
5436-13 new renewable energy facility to be constructed and
5437-14 operated by the applicant, with the sale and purchase
5438-15 obligations under the contracts to aggregate to the total
5439-16 number of renewable energy credits per year to be supplied
5440-17 by the applicant from the new renewable energy facility.
5441-18 (7) The Agency shall submit its proposed selection of
5442-19 applicants, new renewable energy facilities to be
5443-20 constructed, and renewable energy credit amounts for each
5444-21 procurement event to the Commission for approval. The
5445-22 Commission shall, within 2 business days after receipt of
5446-23 the Agency's proposed selections, approve the proposed
5447-24 selections if it determines that the applicants and the
5448-25 new renewable energy facilities to be constructed meet the
5449-26 selection criteria set forth in this subsection (c-5) and
5450-
5451-
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5459- HB0587 Enrolled - 153 - LRB103 04172 CPF 49178 b
5460-1 that the Agency seeks approval for contracts of applicable
5461-2 durations aggregating to no more than the maximum amount
5462-3 of renewable energy credits per year authorized by this
5463-4 subsection (c-5) for the procurement event, at a price of
5464-5 $30 per renewable energy credit.
5465-6 (8) The Agency, in conjunction with its procurement
5466-7 administrator if one is retained, the electric utilities,
5467-8 and potential applicants for contracts to produce and
5468-9 supply renewable energy credits pursuant to this
5469-10 subsection (c-5), shall develop a standard form contract
5470-11 for the sale, delivery and purchase of renewable energy
5471-12 credits pursuant to this subsection (c-5). Each contract
5472-13 resulting from the first procurement event shall allow for
5473-14 a commercial operation date for the new renewable energy
5474-15 facility of either June 1, 2023 or June 1, 2024, with such
5475-16 dates subject to adjustment as provided in this paragraph.
5476-17 Each contract resulting from the second procurement event
5477-18 shall provide for a commercial operation date on June 1
5478-19 next occurring up to 48 months after execution of the
5479-20 contract. Each contract shall provide that the owner shall
5480-21 receive payments for renewable energy credits for the
5481-22 applicable durations beginning with the commercial
5482-23 operation date of the new renewable energy facility. The
5483-24 form contract shall provide for adjustments to the
5484-25 commercial operation and payment start dates as needed due
5485-26 to any delays in completing the procurement and
5486-
5487-
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5492-
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5495- HB0587 Enrolled - 154 - LRB103 04172 CPF 49178 b
5496-1 contracting processes, in finalizing interconnection
5497-2 agreements and installing interconnection facilities, and
5498-3 in obtaining other necessary governmental permits and
5499-4 approvals. The form contract shall be, to the maximum
5500-5 extent possible, consistent with standard electric
5501-6 industry contracts for sale, delivery, and purchase of
5502-7 renewable energy credits while taking into account the
5503-8 specific requirements of this subsection (c-5). The form
5504-9 contract shall provide for over-delivery and
5505-10 under-delivery of renewable energy credits within
5506-11 reasonable ranges during each 12-month period and penalty,
5507-12 default, and enforcement provisions for failure of the
5508-13 selling party to deliver renewable energy credits as
5509-14 specified in the contract and to comply with the
5510-15 requirements of this subsection (c-5). The standard form
5511-16 contract shall specify that all renewable energy credits
5512-17 delivered to the electric utility pursuant to the contract
5513-18 shall be retired. The Agency shall make the proposed
5514-19 contracts available for a reasonable period for comment by
5515-20 potential applicants, and shall publish the final form
5516-21 contract at least 30 days before the date of the first
5517-22 procurement event.
5518-23 (9) Coal to Solar and Energy Storage Initiative
5519-24 Charge.
5520-25 (A) By no later than July 1, 2022, each electric
5521-26 utility that served more than 300,000 retail customers
5522-
5523-
5524-
5525-
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5528-
5529-
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5531- HB0587 Enrolled - 155 - LRB103 04172 CPF 49178 b
5532-1 in this State as of January 1, 2019 shall file a tariff
5533-2 with the Commission for the billing and collection of
5534-3 a Coal to Solar and Energy Storage Initiative Charge
5535-4 in accordance with subsection (i-5) of Section 16-108
5536-5 of the Public Utilities Act, with such tariff to be
5537-6 effective, following review and approval or
5538-7 modification by the Commission, beginning January 1,
5539-8 2023. The tariff shall provide for the calculation and
5540-9 setting of the electric utility's Coal to Solar and
5541-10 Energy Storage Initiative Charge to collect revenues
5542-11 estimated to be sufficient, in the aggregate, (i) to
5543-12 enable the electric utility to pay for the renewable
5544-13 energy credits it has contracted to purchase in the
5545-14 delivery year beginning June 1, 2023 and each delivery
5546-15 year thereafter from new renewable energy facilities
5547-16 located at the sites of qualifying electric generating
5548-17 facilities, and (ii) to fund the grant payments to be
5549-18 made in each delivery year by the Department of
5550-19 Commerce and Economic Opportunity, or any successor
5551-20 department or agency, which shall be referred to in
5552-21 this subsection (c-5) as the Department, pursuant to
5553-22 paragraph (10) of this subsection (c-5). The electric
5554-23 utility's tariff shall provide for the billing and
5555-24 collection of the Coal to Solar and Energy Storage
5556-25 Initiative Charge on each kilowatthour of electricity
5557-26 delivered to its delivery services customers within
5558-
5559-
5560-
5561-
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5563- HB0587 Enrolled - 155 - LRB103 04172 CPF 49178 b
5564-
5565-
5566-HB0587 Enrolled- 156 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 156 - LRB103 04172 CPF 49178 b
5567- HB0587 Enrolled - 156 - LRB103 04172 CPF 49178 b
5568-1 its service territory and shall provide for an annual
5569-2 reconciliation of revenues collected with actual
5570-3 costs, in accordance with subsection (i-5) of Section
5571-4 16-108 of the Public Utilities Act.
5572-5 (B) Each electric utility shall remit on a monthly
5573-6 basis to the State Treasurer, for deposit in the Coal
5574-7 to Solar and Energy Storage Initiative Fund provided
5575-8 for in this subsection (c-5), the electric utility's
5576-9 collections of the Coal to Solar and Energy Storage
5577-10 Initiative Charge in the amount estimated to be needed
5578-11 by the Department for grant payments pursuant to grant
5579-12 contracts entered into by the Department pursuant to
5580-13 paragraph (10) of this subsection (c-5).
5581-14 (10) Coal to Solar and Energy Storage Initiative Fund.
5582-15 (A) The Coal to Solar and Energy Storage
5583-16 Initiative Fund is established as a special fund in
5584-17 the State treasury. The Coal to Solar and Energy
5585-18 Storage Initiative Fund is authorized to receive, by
5586-19 statutory deposit, that portion specified in item (B)
5587-20 of paragraph (9) of this subsection (c-5) of moneys
5588-21 collected by electric utilities through imposition of
5589-22 the Coal to Solar and Energy Storage Initiative Charge
5590-23 required by this subsection (c-5). The Coal to Solar
5591-24 and Energy Storage Initiative Fund shall be
5592-25 administered by the Department to provide grants to
5593-26 support the installation and operation of energy
5594-
5595-
5596-
5597-
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5599- HB0587 Enrolled - 156 - LRB103 04172 CPF 49178 b
5600-
5601-
5602-HB0587 Enrolled- 157 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 157 - LRB103 04172 CPF 49178 b
5603- HB0587 Enrolled - 157 - LRB103 04172 CPF 49178 b
5604-1 storage facilities at the sites of qualifying electric
5605-2 generating facilities meeting the criteria specified
5606-3 in this paragraph (10).
5607-4 (B) The Coal to Solar and Energy Storage
5608-5 Initiative Fund shall not be subject to sweeps,
5609-6 administrative charges, or chargebacks, including, but
5610-7 not limited to, those authorized under Section 8h of
5611-8 the State Finance Act, that would in any way result in
5612-9 the transfer of those funds from the Coal to Solar and
5613-10 Energy Storage Initiative Fund to any other fund of
5614-11 this State or in having any such funds utilized for any
5615-12 purpose other than the express purposes set forth in
5616-13 this paragraph (10).
5617-14 (C) The Department shall utilize up to
5618-15 $280,500,000 in the Coal to Solar and Energy Storage
5619-16 Initiative Fund for grants, assuming sufficient
5620-17 qualifying applicants, to support installation of
5621-18 energy storage facilities at the sites of up to 3
5622-19 qualifying electric generating facilities located in
5623-20 the Midcontinent Independent System Operator, Inc.,
5624-21 region in Illinois and the sites of up to 2 qualifying
5625-22 electric generating facilities located in the PJM
5626-23 Interconnection, LLC region in Illinois that meet the
5627-24 criteria set forth in this subparagraph (C). The
5628-25 criteria for receipt of a grant pursuant to this
5629-26 subparagraph (C) are as follows:
5630-
5631-
5632-
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5636-
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5639- HB0587 Enrolled - 158 - LRB103 04172 CPF 49178 b
5640-1 (1) the electric generating facility at the
5641-2 site has, or had prior to retirement, an electric
5642-3 generating capacity of at least 150 megawatts;
5643-4 (2) the electric generating facility burns (or
5644-5 burned prior to retirement) coal as its primary
5645-6 source of fuel;
5646-7 (3) if the electric generating facility is
5647-8 retired, it was retired subsequent to January 1,
5648-9 2016;
5649-10 (4) the owner of the electric generating
5650-11 facility has not been selected by the Agency
5651-12 pursuant to this subsection (c-5) of this Section
5652-13 to enter into a contract to sell renewable energy
5653-14 credits to one or more electric utilities from a
5654-15 new renewable energy facility located or to be
5655-16 located at or adjacent to the site at which the
5656-17 electric generating facility is located;
5657-18 (5) the electric generating facility located
5658-19 at the site was at one time owned, in whole or in
5659-20 part, by a public utility as defined in Section
5660-21 3-105 of the Public Utilities Act;
5661-22 (6) the electric generating facility at the
5662-23 site is not owned by (i) an electric cooperative
5663-24 as defined in Section 3-119 of the Public
5664-25 Utilities Act, or (ii) an entity described in
5665-26 subsection (b)(1) of Section 3-105 of the Public
5666-
5667-
5668-
5669-
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5672-
5673-
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5675- HB0587 Enrolled - 159 - LRB103 04172 CPF 49178 b
5676-1 Utilities Act, or an association or consortium of
5677-2 or an entity owned by entities described in items
5678-3 (i) or (ii);
5679-4 (7) the proposed energy storage facility at
5680-5 the site will have energy storage capacity of at
5681-6 least 37 megawatts;
5682-7 (8) the owner commits to place the energy
5683-8 storage facility into commercial operation on
5684-9 either June 1, 2023, June 1, 2024, or June 1, 2025,
5685-10 with such date subject to adjustment as needed due
5686-11 to any delays in completing the grant contracting
5687-12 process, in finalizing interconnection agreements
5688-13 and in installing interconnection facilities, and
5689-14 in obtaining necessary governmental permits and
5690-15 approvals;
5691-16 (9) the owner agrees that the new energy
5692-17 storage facility will be constructed or installed
5693-18 by a qualified entity or entities consistent with
5694-19 the requirements of subsection (g) of Section
5695-20 16-128A of the Public Utilities Act and any rules
5696-21 adopted under that Section;
5697-22 (10) the owner agrees that personnel operating
5698-23 the energy storage facility will have the
5699-24 requisite skills, knowledge, training, experience,
5700-25 and competence, which may be demonstrated by
5701-26 completion or current participation and ultimate
5702-
5703-
5704-
5705-
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5707- HB0587 Enrolled - 159 - LRB103 04172 CPF 49178 b
5708-
5709-
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5711- HB0587 Enrolled - 160 - LRB103 04172 CPF 49178 b
5712-1 completion by employees of an accredited or
5713-2 otherwise recognized apprenticeship program for
5714-3 the employee's particular craft, trade, or skill,
5715-4 including through training and education courses
5716-5 and opportunities offered by the owner to
5717-6 employees of the coal-fueled electric generating
5718-7 facility or by previous employment experience
5719-8 performing the employee's particular work skill or
5720-9 function;
5721-10 (11) the owner commits that not less than the
5722-11 prevailing wage, as determined pursuant to the
5723-12 Prevailing Wage Act, will be paid to the owner's
5724-13 employees engaged in construction activities
5725-14 associated with the new energy storage facility
5726-15 and to the employees of the owner's contractors
5727-16 engaged in construction activities associated with
5728-17 the new energy storage facility, and that, on or
5729-18 before the commercial operation date of the new
5730-19 energy storage facility, the owner shall file a
5731-20 report with the Department certifying that the
5732-21 requirements of this subparagraph (11) have been
5733-22 met; and
5734-23 (12) the owner commits that if selected to
5735-24 receive a grant, it will negotiate a project labor
5736-25 agreement for the construction of the new energy
5737-26 storage facility that includes provisions
5738-
5739-
5740-
5741-
5742-
5743- HB0587 Enrolled - 160 - LRB103 04172 CPF 49178 b
5744-
5745-
5746-HB0587 Enrolled- 161 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 161 - LRB103 04172 CPF 49178 b
5747- HB0587 Enrolled - 161 - LRB103 04172 CPF 49178 b
5748-1 requiring the parties to the agreement to work
5749-2 together to establish diversity threshold
5750-3 requirements and to ensure best efforts to meet
5751-4 diversity targets, improve diversity at the
5752-5 applicable job site, create diverse apprenticeship
5753-6 opportunities, and create opportunities to employ
5754-7 former coal-fired power plant workers.
5755-8 The Department shall accept applications for this
5756-9 grant program until March 31, 2022 and shall announce
5757-10 the award of grants no later than June 1, 2022. The
5758-11 Department shall make the grant payments to a
5759-12 recipient in equal annual amounts for 10 years
5760-13 following the date the energy storage facility is
5761-14 placed into commercial operation. The annual grant
5762-15 payments to a qualifying energy storage facility shall
5763-16 be $110,000 per megawatt of energy storage capacity,
5764-17 with total annual grant payments pursuant to this
5765-18 subparagraph (C) for qualifying energy storage
5766-19 facilities not to exceed $28,050,000 in any year.
5767-20 (D) Grants of funding for energy storage
5768-21 facilities pursuant to subparagraph (C) of this
5769-22 paragraph (10), from the Coal to Solar and Energy
5770-23 Storage Initiative Fund, shall be memorialized in
5771-24 grant contracts between the Department and the
5772-25 recipient. The grant contracts shall specify the date
5773-26 or dates in each year on which the annual grant
5774-
5775-
5776-
5777-
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5779- HB0587 Enrolled - 161 - LRB103 04172 CPF 49178 b
5780-
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5783- HB0587 Enrolled - 162 - LRB103 04172 CPF 49178 b
5784-1 payments shall be paid.
5785-2 (E) All disbursements from the Coal to Solar and
5786-3 Energy Storage Initiative Fund shall be made only upon
5787-4 warrants of the Comptroller drawn upon the Treasurer
5788-5 as custodian of the Fund upon vouchers signed by the
5789-6 Director of the Department or by the person or persons
5790-7 designated by the Director of the Department for that
5791-8 purpose. The Comptroller is authorized to draw the
5792-9 warrants upon vouchers so signed. The Treasurer shall
5793-10 accept all written warrants so signed and shall be
5794-11 released from liability for all payments made on those
5795-12 warrants.
5796-13 (11) Diversity, equity, and inclusion plans.
5797-14 (A) Each applicant selected in a procurement event
5798-15 to contract to supply renewable energy credits in
5799-16 accordance with this subsection (c-5) and each owner
5800-17 selected by the Department to receive a grant or
5801-18 grants to support the construction and operation of a
5802-19 new energy storage facility or facilities in
5803-20 accordance with this subsection (c-5) shall, within 60
5804-21 days following the Commission's approval of the
5805-22 applicant to contract to supply renewable energy
5806-23 credits or within 60 days following execution of a
5807-24 grant contract with the Department, as applicable,
5808-25 submit to the Commission a diversity, equity, and
5809-26 inclusion plan setting forth the applicant's or
5810-
5811-
5812-
5813-
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5816-
5817-
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5819- HB0587 Enrolled - 163 - LRB103 04172 CPF 49178 b
5820-1 owner's numeric goals for the diversity composition of
5821-2 its supplier entities for the new renewable energy
5822-3 facility or new energy storage facility, as
5823-4 applicable, which shall be referred to for purposes of
5824-5 this paragraph (11) as the project, and the
5825-6 applicant's or owner's action plan and schedule for
5826-7 achieving those goals.
5827-8 (B) For purposes of this paragraph (11), diversity
5828-9 composition shall be based on the percentage, which
5829-10 shall be a minimum of 25%, of eligible expenditures
5830-11 for contract awards for materials and services (which
5831-12 shall be defined in the plan) to business enterprises
5832-13 owned by minority persons, women, or persons with
5833-14 disabilities as defined in Section 2 of the Business
5834-15 Enterprise for Minorities, Women, and Persons with
5835-16 Disabilities Act, to LGBTQ business enterprises, to
5836-17 veteran-owned business enterprises, and to business
5837-18 enterprises located in environmental justice
5838-19 communities. The diversity composition goals of the
5839-20 plan may include eligible expenditures in areas for
5840-21 vendor or supplier opportunities in addition to
5841-22 development and construction of the project, and may
5842-23 exclude from eligible expenditures materials and
5843-24 services with limited market availability, limited
5844-25 production and availability from suppliers in the
5845-26 United States, such as solar panels and storage
5846-
5847-
5848-
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5852-
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5855- HB0587 Enrolled - 164 - LRB103 04172 CPF 49178 b
5856-1 batteries, and material and services that are subject
5857-2 to critical energy infrastructure or cybersecurity
5858-3 requirements or restrictions. The plan may provide
5859-4 that the diversity composition goals may be met
5860-5 through Tier 1 Direct or Tier 2 subcontracting
5861-6 expenditures or a combination thereof for the project.
5862-7 (C) The plan shall provide for, but not be limited
5863-8 to: (i) internal initiatives, including multi-tier
5864-9 initiatives, by the applicant or owner, or by its
5865-10 engineering, procurement and construction contractor
5866-11 if one is used for the project, which for purposes of
5867-12 this paragraph (11) shall be referred to as the EPC
5868-13 contractor, to enable diverse businesses to be
5869-14 considered fairly for selection to provide materials
5870-15 and services; (ii) requirements for the applicant or
5871-16 owner or its EPC contractor to proactively solicit and
5872-17 utilize diverse businesses to provide materials and
5873-18 services; and (iii) requirements for the applicant or
5874-19 owner or its EPC contractor to hire a diverse
5875-20 workforce for the project. The plan shall include a
5876-21 description of the applicant's or owner's diversity
5877-22 recruiting efforts both for the project and for other
5878-23 areas of the applicant's or owner's business
5879-24 operations. The plan shall provide for the imposition
5880-25 of financial penalties on the applicant's or owner's
5881-26 EPC contractor for failure to exercise best efforts to
5882-
5883-
5884-
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5888-
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5891- HB0587 Enrolled - 165 - LRB103 04172 CPF 49178 b
5892-1 comply with and execute the EPC contractor's diversity
5893-2 obligations under the plan. The plan may provide for
5894-3 the applicant or owner to set aside a portion of the
5895-4 work on the project to serve as an incubation program
5896-5 for qualified businesses, as specified in the plan,
5897-6 owned by minority persons, women, persons with
5898-7 disabilities, LGBTQ persons, and veterans, and
5899-8 businesses located in environmental justice
5900-9 communities, seeking to enter the renewable energy
5901-10 industry.
5902-11 (D) The applicant or owner may submit a revised or
5903-12 updated plan to the Commission from time to time as
5904-13 circumstances warrant. The applicant or owner shall
5905-14 file annual reports with the Commission detailing the
5906-15 applicant's or owner's progress in implementing its
5907-16 plan and achieving its goals and any modifications the
5908-17 applicant or owner has made to its plan to better
5909-18 achieve its diversity, equity and inclusion goals. The
5910-19 applicant or owner shall file a final report on the
5911-20 fifth June 1 following the commercial operation date
5912-21 of the new renewable energy resource or new energy
5913-22 storage facility, but the applicant or owner shall
5914-23 thereafter continue to be subject to applicable
5915-24 reporting requirements of Section 5-117 of the Public
5916-25 Utilities Act.
5917-26 (c-10) Equity accountability system. It is the purpose of
5918-
5919-
5920-
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5924-
5925-
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5927- HB0587 Enrolled - 166 - LRB103 04172 CPF 49178 b
5928-1 this subsection (c-10) to create an equity accountability
5929-2 system, which includes the minimum equity standards for all
5930-3 renewable energy procurements, the equity category of the
5931-4 Adjustable Block Program, and the equity prioritization for
5932-5 noncompetitive procurements, that is successful in advancing
5933-6 priority access to the clean energy economy for businesses and
5934-7 workers from communities that have been excluded from economic
5935-8 opportunities in the energy sector, have been subject to
5936-9 disproportionate levels of pollution, and have
5937-10 disproportionately experienced negative public health
5938-11 outcomes. Further, it is the purpose of this subsection to
5939-12 ensure that this equity accountability system is successful in
5940-13 advancing equity across Illinois by providing access to the
5941-14 clean energy economy for businesses and workers from
5942-15 communities that have been historically excluded from economic
5943-16 opportunities in the energy sector, have been subject to
5944-17 disproportionate levels of pollution, and have
5945-18 disproportionately experienced negative public health
5946-19 outcomes.
5947-20 (1) Minimum equity standards. The Agency shall create
5948-21 programs with the purpose of increasing access to and
5949-22 development of equity eligible contractors, who are prime
5950-23 contractors and subcontractors, across all of the programs
5951-24 it manages. All applications for renewable energy credit
5952-25 procurements shall comply with specific minimum equity
5953-26 commitments. Starting in the delivery year immediately
5954-
5955-
5956-
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5960-
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5963- HB0587 Enrolled - 167 - LRB103 04172 CPF 49178 b
5964-1 following the next long-term renewable resources
5965-2 procurement plan, at least 10% of the project workforce
5966-3 for each entity participating in a procurement program
5967-4 outlined in this subsection (c-10) must be done by equity
5968-5 eligible persons or equity eligible contractors. The
5969-6 Agency shall increase the minimum percentage each delivery
5970-7 year thereafter by increments that ensure a statewide
5971-8 average of 30% of the project workforce for each entity
5972-9 participating in a procurement program is done by equity
5973-10 eligible persons or equity eligible contractors by 2030.
5974-11 The Agency shall propose a schedule of percentage
5975-12 increases to the minimum equity standards in its draft
5976-13 revised renewable energy resources procurement plan
5977-14 submitted to the Commission for approval pursuant to
5978-15 paragraph (5) of subsection (b) of Section 16-111.5 of the
5979-16 Public Utilities Act. In determining these annual
5980-17 increases, the Agency shall have the discretion to
5981-18 establish different minimum equity standards for different
5982-19 types of procurements and different regions of the State
5983-20 if the Agency finds that doing so will further the
5984-21 purposes of this subsection (c-10). The proposed schedule
5985-22 of annual increases shall be revisited and updated on an
5986-23 annual basis. Revisions shall be developed with
5987-24 stakeholder input, including from equity eligible persons,
5988-25 equity eligible contractors, clean energy industry
5989-26 representatives, and community-based organizations that
5990-
5991-
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5999- HB0587 Enrolled - 168 - LRB103 04172 CPF 49178 b
6000-1 work with such persons and contractors.
6001-2 (A) At the start of each delivery year, the Agency
6002-3 shall require a compliance plan from each entity
6003-4 participating in a procurement program of subsection
6004-5 (c) of this Section that demonstrates how they will
6005-6 achieve compliance with the minimum equity standard
6006-7 percentage for work completed in that delivery year.
6007-8 If an entity applies for its approved vendor or
6008-9 designee status between delivery years, the Agency
6009-10 shall require a compliance plan at the time of
6010-11 application.
6011-12 (B) Halfway through each delivery year, the Agency
6012-13 shall require each entity participating in a
6013-14 procurement program to confirm that it will achieve
6014-15 compliance in that delivery year, when applicable. The
6015-16 Agency may offer corrective action plans to entities
6016-17 that are not on track to achieve compliance.
6017-18 (C) At the end of each delivery year, each entity
6018-19 participating and completing work in that delivery
6019-20 year in a procurement program of subsection (c) shall
6020-21 submit a report to the Agency that demonstrates how it
6021-22 achieved compliance with the minimum equity standards
6022-23 percentage for that delivery year.
6023-24 (D) The Agency shall prohibit participation in
6024-25 procurement programs by an approved vendor or
6025-26 designee, as applicable, or entities with which an
6026-
6027-
6028-
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6032-
6033-
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6035- HB0587 Enrolled - 169 - LRB103 04172 CPF 49178 b
6036-1 approved vendor or designee, as applicable, shares a
6037-2 common parent company if an approved vendor or
6038-3 designee, as applicable, failed to meet the minimum
6039-4 equity standards for the prior delivery year. Waivers
6040-5 approved for lack of equity eligible persons or equity
6041-6 eligible contractors in a geographic area of a project
6042-7 shall not count against the approved vendor or
6043-8 designee. The Agency shall offer a corrective action
6044-9 plan for any such entities to assist them in obtaining
6045-10 compliance and shall allow continued access to
6046-11 procurement programs upon an approved vendor or
6047-12 designee demonstrating compliance.
6048-13 (E) The Agency shall pursue efficiencies achieved
6049-14 by combining with other approved vendor or designee
6050-15 reporting.
6051-16 (2) Equity accountability system within the Adjustable
6052-17 Block program. The equity category described in item (vi)
6053-18 of subparagraph (K) of subsection (c) is only available to
6054-19 applicants that are equity eligible contractors.
6055-20 (3) Equity accountability system within competitive
6056-21 procurements. Through its long-term renewable resources
6057-22 procurement plan, the Agency shall develop requirements
6058-23 for ensuring that competitive procurement processes,
6059-24 including utility-scale solar, utility-scale wind, and
6060-25 brownfield site photovoltaic projects, advance the equity
6061-26 goals of this subsection (c-10). Subject to Commission
6062-
6063-
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6068-
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6072-1 approval, the Agency shall develop bid application
6073-2 requirements and a bid evaluation methodology for ensuring
6074-3 that utilization of equity eligible contractors, whether
6075-4 as bidders or as participants on project development, is
6076-5 optimized, including requiring that winning or successful
6077-6 applicants for utility-scale projects are or will partner
6078-7 with equity eligible contractors and giving preference to
6079-8 bids through which a higher portion of contract value
6080-9 flows to equity eligible contractors. To the extent
6081-10 practicable, entities participating in competitive
6082-11 procurements shall also be required to meet all the equity
6083-12 accountability requirements for approved vendors and their
6084-13 designees under this subsection (c-10). In developing
6085-14 these requirements, the Agency shall also consider whether
6086-15 equity goals can be further advanced through additional
6087-16 measures.
6088-17 (4) In the first revision to the long-term renewable
6089-18 energy resources procurement plan and each revision
6090-19 thereafter, the Agency shall include the following:
6091-20 (A) The current status and number of equity
6092-21 eligible contractors listed in the Energy Workforce
6093-22 Equity Database designed in subsection (c-25),
6094-23 including the number of equity eligible contractors
6095-24 with current certifications as issued by the Agency.
6096-25 (B) A mechanism for measuring, tracking, and
6097-26 reporting project workforce at the approved vendor or
6098-
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6108-1 designee level, as applicable, which shall include a
6109-2 measurement methodology and records to be made
6110-3 available for audit by the Agency or the Program
6111-4 Administrator.
6112-5 (C) A program for approved vendors, designees,
6113-6 eligible persons, and equity eligible contractors to
6114-7 receive trainings, guidance, and other support from
6115-8 the Agency or its designee regarding the equity
6116-9 category outlined in item (vi) of subparagraph (K) of
6117-10 paragraph (1) of subsection (c) and in meeting the
6118-11 minimum equity standards of this subsection (c-10).
6119-12 (D) A process for certifying equity eligible
6120-13 contractors and equity eligible persons. The
6121-14 certification process shall coordinate with the Energy
6122-15 Workforce Equity Database set forth in subsection
6123-16 (c-25).
6124-17 (E) An application for waiver of the minimum
6125-18 equity standards of this subsection, which the Agency
6126-19 shall have the discretion to grant in rare
6127-20 circumstances. The Agency may grant such a waiver
6128-21 where the applicant provides evidence of significant
6129-22 efforts toward meeting the minimum equity commitment,
6130-23 including: use of the Energy Workforce Equity
6131-24 Database; efforts to hire or contract with entities
6132-25 that hire eligible persons; and efforts to establish
6133-26 contracting relationships with eligible contractors.
6134-
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6143- HB0587 Enrolled - 172 - LRB103 04172 CPF 49178 b
6144-1 The Agency shall support applicants in understanding
6145-2 the Energy Workforce Equity Database and other
6146-3 resources for pursuing compliance of the minimum
6147-4 equity standards. Waivers shall be project-specific,
6148-5 unless the Agency deems it necessary to grant a waiver
6149-6 across a portfolio of projects, and in effect for no
6150-7 longer than one year. Any waiver extension or
6151-8 subsequent waiver request from an applicant shall be
6152-9 subject to the requirements of this Section and shall
6153-10 specify efforts made to reach compliance. When
6154-11 considering whether to grant a waiver, and to what
6155-12 extent, the Agency shall consider the degree to which
6156-13 similarly situated applicants have been able to meet
6157-14 these minimum equity commitments. For repeated waiver
6158-15 requests for specific lack of eligible persons or
6159-16 eligible contractors available, the Agency shall make
6160-17 recommendations to target recruitment to add such
6161-18 eligible persons or eligible contractors to the
6162-19 database.
6163-20 (5) The Agency shall collect information about work on
6164-21 projects or portfolios of projects subject to these
6165-22 minimum equity standards to ensure compliance with this
6166-23 subsection (c-10). Reporting in furtherance of this
6167-24 requirement may be combined with other annual reporting
6168-25 requirements. Such reporting shall include proof of
6169-26 certification of each equity eligible contractor or equity
6170-
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6179- HB0587 Enrolled - 173 - LRB103 04172 CPF 49178 b
6180-1 eligible person during the applicable time period.
6181-2 (6) The Agency shall keep confidential all information
6182-3 and communication that provides private or personal
6183-4 information.
6184-5 (7) Modifications to the equity accountability system.
6185-6 As part of the update of the long-term renewable resources
6186-7 procurement plan to be initiated in 2023, or sooner if the
6187-8 Agency deems necessary, the Agency shall determine the
6188-9 extent to which the equity accountability system described
6189-10 in this subsection (c-10) has advanced the goals of this
6190-11 amendatory Act of the 102nd General Assembly, including
6191-12 through the inclusion of equity eligible persons and
6192-13 equity eligible contractors in renewable energy credit
6193-14 projects. If the Agency finds that the equity
6194-15 accountability system has failed to meet those goals to
6195-16 its fullest potential, the Agency may revise the following
6196-17 criteria for future Agency procurements: (A) the
6197-18 percentage of project workforce, or other appropriate
6198-19 workforce measure, certified as equity eligible persons or
6199-20 equity eligible contractors; (B) definitions for equity
6200-21 investment eligible persons and equity investment eligible
6201-22 community; and (C) such other modifications necessary to
6202-23 advance the goals of this amendatory Act of the 102nd
6203-24 General Assembly effectively. Such revised criteria may
6204-25 also establish distinct equity accountability systems for
6205-26 different types of procurements or different regions of
6206-
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6216-1 the State if the Agency finds that doing so will further
6217-2 the purposes of such programs. Revisions shall be
6218-3 developed with stakeholder input, including from equity
6219-4 eligible persons, equity eligible contractors, and
6220-5 community-based organizations that work with such persons
6221-6 and contractors.
6222-7 (c-15) Racial discrimination elimination powers and
6223-8 process.
6224-9 (1) Purpose. It is the purpose of this subsection to
6225-10 empower the Agency and other State actors to remedy racial
6226-11 discrimination in Illinois' clean energy economy as
6227-12 effectively and expediently as possible, including through
6228-13 the use of race-conscious remedies, such as race-conscious
6229-14 contracting and hiring goals, as consistent with State and
6230-15 federal law.
6231-16 (2) Racial disparity and discrimination review
6232-17 process.
6233-18 (A) Within one year after awarding contracts using
6234-19 the equity actions processes established in this
6235-20 Section, the Agency shall publish a report evaluating
6236-21 the effectiveness of the equity actions point criteria
6237-22 of this Section in increasing participation of equity
6238-23 eligible persons and equity eligible contractors. The
6239-24 report shall disaggregate participating workers and
6240-25 contractors by race and ethnicity. The report shall be
6241-26 forwarded to the Governor, the General Assembly, and
6242-
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6251- HB0587 Enrolled - 175 - LRB103 04172 CPF 49178 b
6252-1 the Illinois Commerce Commission and be made available
6253-2 to the public.
6254-3 (B) As soon as is practicable thereafter, the
6255-4 Agency, in consultation with the Department of
6256-5 Commerce and Economic Opportunity, Department of
6257-6 Labor, and other agencies that may be relevant, shall
6258-7 commission and publish a disparity and availability
6259-8 study that measures the presence and impact of
6260-9 discrimination on minority businesses and workers in
6261-10 Illinois' clean energy economy. The Agency may hire
6262-11 consultants and experts to conduct the disparity and
6263-12 availability study, with the retention of those
6264-13 consultants and experts exempt from the requirements
6265-14 of Section 20-10 of the Illinois Procurement Code. The
6266-15 Illinois Power Agency shall forward a copy of its
6267-16 findings and recommendations to the Governor, the
6268-17 General Assembly, and the Illinois Commerce
6269-18 Commission. If the disparity and availability study
6270-19 establishes a strong basis in evidence that there is
6271-20 discrimination in Illinois' clean energy economy, the
6272-21 Agency, Department of Commerce and Economic
6273-22 Opportunity, Department of Labor, Department of
6274-23 Corrections, and other appropriate agencies shall take
6275-24 appropriate remedial actions, including race-conscious
6276-25 remedial actions as consistent with State and federal
6277-26 law, to effectively remedy this discrimination. Such
6278-
6279-
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6287- HB0587 Enrolled - 176 - LRB103 04172 CPF 49178 b
6288-1 remedies may include modification of the equity
6289-2 accountability system as described in subsection
6290-3 (c-10).
6291-4 (c-20) Program data collection.
6292-5 (1) Purpose. Data collection, data analysis, and
6293-6 reporting are critical to ensure that the benefits of the
6294-7 clean energy economy provided to Illinois residents and
6295-8 businesses are equitably distributed across the State. The
6296-9 Agency shall collect data from program applicants in order
6297-10 to track and improve equitable distribution of benefits
6298-11 across Illinois communities for all procurements the
6299-12 Agency conducts. The Agency shall use this data to, among
6300-13 other things, measure any potential impact of racial
6301-14 discrimination on the distribution of benefits and provide
6302-15 information necessary to correct any discrimination
6303-16 through methods consistent with State and federal law.
6304-17 (2) Agency collection of program data. The Agency
6305-18 shall collect demographic and geographic data for each
6306-19 entity awarded contracts under any Agency-administered
6307-20 program.
6308-21 (3) Required information to be collected. The Agency
6309-22 shall collect the following information from applicants
6310-23 and program participants where applicable:
6311-24 (A) demographic information, including racial or
6312-25 ethnic identity for real persons employed, contracted,
6313-26 or subcontracted through the program and owners of
6314-
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6320-
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6323- HB0587 Enrolled - 177 - LRB103 04172 CPF 49178 b
6324-1 businesses or entities that apply to receive renewable
6325-2 energy credits from the Agency;
6326-3 (B) geographic location of the residency of real
6327-4 persons employed, contracted, or subcontracted through
6328-5 the program and geographic location of the
6329-6 headquarters of the business or entity that applies to
6330-7 receive renewable energy credits from the Agency; and
6331-8 (C) any other information the Agency determines is
6332-9 necessary for the purpose of achieving the purpose of
6333-10 this subsection.
6334-11 (4) Publication of collected information. The Agency
6335-12 shall publish, at least annually, information on the
6336-13 demographics of program participants on an aggregate
6337-14 basis.
6338-15 (5) Nothing in this subsection shall be interpreted to
6339-16 limit the authority of the Agency, or other agency or
6340-17 department of the State, to require or collect demographic
6341-18 information from applicants of other State programs.
6342-19 (c-25) Energy Workforce Equity Database.
6343-20 (1) The Agency, in consultation with the Department of
6344-21 Commerce and Economic Opportunity, shall create an Energy
6345-22 Workforce Equity Database, and may contract with a third
6346-23 party to do so ("database program administrator"). If the
6347-24 Department decides to contract with a third party, that
6348-25 third party shall be exempt from the requirements of
6349-26 Section 20-10 of the Illinois Procurement Code. The Energy
6350-
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6359- HB0587 Enrolled - 178 - LRB103 04172 CPF 49178 b
6360-1 Workforce Equity Database shall be a searchable database
6361-2 of suppliers, vendors, and subcontractors for clean energy
6362-3 industries that is:
6363-4 (A) publicly accessible;
6364-5 (B) easy for people to find and use;
6365-6 (C) organized by company specialty or field;
6366-7 (D) region-specific; and
6367-8 (E) populated with information including, but not
6368-9 limited to, contacts for suppliers, vendors, or
6369-10 subcontractors who are minority and women-owned
6370-11 business enterprise certified or who participate or
6371-12 have participated in any of the programs described in
6372-13 this Act.
6373-14 (2) The Agency shall create an easily accessible,
6374-15 public facing online tool using the database information
6375-16 that includes, at a minimum, the following:
6376-17 (A) a map of environmental justice and equity
6377-18 investment eligible communities;
6378-19 (B) job postings and recruiting opportunities;
6379-20 (C) a means by which recruiting clean energy
6380-21 companies can find and interact with current or former
6381-22 participants of clean energy workforce training
6382-23 programs;
6383-24 (D) information on workforce training service
6384-25 providers and training opportunities available to
6385-26 prospective workers;
6386-
6387-
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6395- HB0587 Enrolled - 179 - LRB103 04172 CPF 49178 b
6396-1 (E) renewable energy company diversity reporting;
6397-2 (F) a list of equity eligible contractors with
6398-3 their contact information, types of work performed,
6399-4 and locations worked in;
6400-5 (G) reporting on outcomes of the programs
6401-6 described in the workforce programs of the Energy
6402-7 Transition Act, including information such as, but not
6403-8 limited to, retention rate, graduation rate, and
6404-9 placement rates of trainees; and
6405-10 (H) information about the Jobs and Environmental
6406-11 Justice Grant Program, the Clean Energy Jobs and
6407-12 Justice Fund, and other sources of capital.
6408-13 (3) The Agency shall ensure the database is regularly
6409-14 updated to ensure information is current and shall
6410-15 coordinate with the Department of Commerce and Economic
6411-16 Opportunity to ensure that it includes information on
6412-17 individuals and entities that are or have participated in
6413-18 the Clean Jobs Workforce Network Program, Clean Energy
6414-19 Contractor Incubator Program, Returning Residents Clean
6415-20 Jobs Training Program, or Clean Energy Primes Contractor
6416-21 Accelerator Program.
6417-22 (c-30) Enforcement of minimum equity standards. All
6418-23 entities seeking renewable energy credits must submit an
6419-24 annual report to demonstrate compliance with each of the
6420-25 equity commitments required under subsection (c-10). If the
6421-26 Agency concludes the entity has not met or maintained its
6422-
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6431- HB0587 Enrolled - 180 - LRB103 04172 CPF 49178 b
6432-1 minimum equity standards required under the applicable
6433-2 subparagraphs under subsection (c-10), the Agency shall deny
6434-3 the entity's ability to participate in procurement programs in
6435-4 subsection (c), including by withholding approved vendor or
6436-5 designee status. The Agency may require the entity to enter
6437-6 into a corrective action plan. An entity that is not
6438-7 recertified for failing to meet required equity actions in
6439-8 subparagraph (c-10) may reapply once they have a corrective
6440-9 action plan and achieve compliance with the minimum equity
6441-10 standards.
6442-11 (d) Clean coal portfolio standard.
6443-12 (1) The procurement plans shall include electricity
6444-13 generated using clean coal. Each utility shall enter into
6445-14 one or more sourcing agreements with the initial clean
6446-15 coal facility, as provided in paragraph (3) of this
6447-16 subsection (d), covering electricity generated by the
6448-17 initial clean coal facility representing at least 5% of
6449-18 each utility's total supply to serve the load of eligible
6450-19 retail customers in 2015 and each year thereafter, as
6451-20 described in paragraph (3) of this subsection (d), subject
6452-21 to the limits specified in paragraph (2) of this
6453-22 subsection (d). It is the goal of the State that by January
6454-23 1, 2025, 25% of the electricity used in the State shall be
6455-24 generated by cost-effective clean coal facilities. For
6456-25 purposes of this subsection (d), "cost-effective" means
6457-26 that the expenditures pursuant to such sourcing agreements
6458-
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6467- HB0587 Enrolled - 181 - LRB103 04172 CPF 49178 b
6468-1 do not cause the limit stated in paragraph (2) of this
6469-2 subsection (d) to be exceeded and do not exceed cost-based
6470-3 benchmarks, which shall be developed to assess all
6471-4 expenditures pursuant to such sourcing agreements covering
6472-5 electricity generated by clean coal facilities, other than
6473-6 the initial clean coal facility, by the procurement
6474-7 administrator, in consultation with the Commission staff,
6475-8 Agency staff, and the procurement monitor and shall be
6476-9 subject to Commission review and approval.
6477-10 A utility party to a sourcing agreement shall
6478-11 immediately retire any emission credits that it receives
6479-12 in connection with the electricity covered by such
6480-13 agreement.
6481-14 Utilities shall maintain adequate records documenting
6482-15 the purchases under the sourcing agreement to comply with
6483-16 this subsection (d) and shall file an accounting with the
6484-17 load forecast that must be filed with the Agency by July 15
6485-18 of each year, in accordance with subsection (d) of Section
6486-19 16-111.5 of the Public Utilities Act.
6487-20 A utility shall be deemed to have complied with the
6488-21 clean coal portfolio standard specified in this subsection
6489-22 (d) if the utility enters into a sourcing agreement as
6490-23 required by this subsection (d).
6491-24 (2) For purposes of this subsection (d), the required
6492-25 execution of sourcing agreements with the initial clean
6493-26 coal facility for a particular year shall be measured as a
6494-
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6504-1 percentage of the actual amount of electricity
6505-2 (megawatt-hours) supplied by the electric utility to
6506-3 eligible retail customers in the planning year ending
6507-4 immediately prior to the agreement's execution. For
6508-5 purposes of this subsection (d), the amount paid per
6509-6 kilowatthour means the total amount paid for electric
6510-7 service expressed on a per kilowatthour basis. For
6511-8 purposes of this subsection (d), the total amount paid for
6512-9 electric service includes without limitation amounts paid
6513-10 for supply, transmission, distribution, surcharges and
6514-11 add-on taxes.
6515-12 Notwithstanding the requirements of this subsection
6516-13 (d), the total amount paid under sourcing agreements with
6517-14 clean coal facilities pursuant to the procurement plan for
6518-15 any given year shall be reduced by an amount necessary to
6519-16 limit the annual estimated average net increase due to the
6520-17 costs of these resources included in the amounts paid by
6521-18 eligible retail customers in connection with electric
6522-19 service to:
6523-20 (A) in 2010, no more than 0.5% of the amount paid
6524-21 per kilowatthour by those customers during the year
6525-22 ending May 31, 2009;
6526-23 (B) in 2011, the greater of an additional 0.5% of
6527-24 the amount paid per kilowatthour by those customers
6528-25 during the year ending May 31, 2010 or 1% of the amount
6529-26 paid per kilowatthour by those customers during the
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6539- HB0587 Enrolled - 183 - LRB103 04172 CPF 49178 b
6540-1 year ending May 31, 2009;
6541-2 (C) in 2012, the greater of an additional 0.5% of
6542-3 the amount paid per kilowatthour by those customers
6543-4 during the year ending May 31, 2011 or 1.5% of the
6544-5 amount paid per kilowatthour by those customers during
6545-6 the year ending May 31, 2009;
6546-7 (D) in 2013, the greater of an additional 0.5% of
6547-8 the amount paid per kilowatthour by those customers
6548-9 during the year ending May 31, 2012 or 2% of the amount
6549-10 paid per kilowatthour by those customers during the
6550-11 year ending May 31, 2009; and
6551-12 (E) thereafter, the total amount paid under
6552-13 sourcing agreements with clean coal facilities
6553-14 pursuant to the procurement plan for any single year
6554-15 shall be reduced by an amount necessary to limit the
6555-16 estimated average net increase due to the cost of
6556-17 these resources included in the amounts paid by
6557-18 eligible retail customers in connection with electric
6558-19 service to no more than the greater of (i) 2.015% of
6559-20 the amount paid per kilowatthour by those customers
6560-21 during the year ending May 31, 2009 or (ii) the
6561-22 incremental amount per kilowatthour paid for these
6562-23 resources in 2013. These requirements may be altered
6563-24 only as provided by statute.
6564-25 No later than June 30, 2015, the Commission shall
6565-26 review the limitation on the total amount paid under
6566-
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6576-1 sourcing agreements, if any, with clean coal facilities
6577-2 pursuant to this subsection (d) and report to the General
6578-3 Assembly its findings as to whether that limitation unduly
6579-4 constrains the amount of electricity generated by
6580-5 cost-effective clean coal facilities that is covered by
6581-6 sourcing agreements.
6582-7 (3) Initial clean coal facility. In order to promote
6583-8 development of clean coal facilities in Illinois, each
6584-9 electric utility subject to this Section shall execute a
6585-10 sourcing agreement to source electricity from a proposed
6586-11 clean coal facility in Illinois (the "initial clean coal
6587-12 facility") that will have a nameplate capacity of at least
6588-13 500 MW when commercial operation commences, that has a
6589-14 final Clean Air Act permit on June 1, 2009 (the effective
6590-15 date of Public Act 95-1027), and that will meet the
6591-16 definition of clean coal facility in Section 1-10 of this
6592-17 Act when commercial operation commences. The sourcing
6593-18 agreements with this initial clean coal facility shall be
6594-19 subject to both approval of the initial clean coal
6595-20 facility by the General Assembly and satisfaction of the
6596-21 requirements of paragraph (4) of this subsection (d) and
6597-22 shall be executed within 90 days after any such approval
6598-23 by the General Assembly. The Agency and the Commission
6599-24 shall have authority to inspect all books and records
6600-25 associated with the initial clean coal facility during the
6601-26 term of such a sourcing agreement. A utility's sourcing
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6611- HB0587 Enrolled - 185 - LRB103 04172 CPF 49178 b
6612-1 agreement for electricity produced by the initial clean
6613-2 coal facility shall include:
6614-3 (A) a formula contractual price (the "contract
6615-4 price") approved pursuant to paragraph (4) of this
6616-5 subsection (d), which shall:
6617-6 (i) be determined using a cost of service
6618-7 methodology employing either a level or deferred
6619-8 capital recovery component, based on a capital
6620-9 structure consisting of 45% equity and 55% debt,
6621-10 and a return on equity as may be approved by the
6622-11 Federal Energy Regulatory Commission, which in any
6623-12 case may not exceed the lower of 11.5% or the rate
6624-13 of return approved by the General Assembly
6625-14 pursuant to paragraph (4) of this subsection (d);
6626-15 and
6627-16 (ii) provide that all miscellaneous net
6628-17 revenue, including but not limited to net revenue
6629-18 from the sale of emission allowances, if any,
6630-19 substitute natural gas, if any, grants or other
6631-20 support provided by the State of Illinois or the
6632-21 United States Government, firm transmission
6633-22 rights, if any, by-products produced by the
6634-23 facility, energy or capacity derived from the
6635-24 facility and not covered by a sourcing agreement
6636-25 pursuant to paragraph (3) of this subsection (d)
6637-26 or item (5) of subsection (d) of Section 16-115 of
6638-
6639-
6640-
6641-
6642-
6643- HB0587 Enrolled - 185 - LRB103 04172 CPF 49178 b
6644-
6645-
6646-HB0587 Enrolled- 186 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 186 - LRB103 04172 CPF 49178 b
6647- HB0587 Enrolled - 186 - LRB103 04172 CPF 49178 b
6648-1 the Public Utilities Act, whether generated from
6649-2 the synthesis gas derived from coal, from SNG, or
6650-3 from natural gas, shall be credited against the
6651-4 revenue requirement for this initial clean coal
6652-5 facility;
6653-6 (B) power purchase provisions, which shall:
6654-7 (i) provide that the utility party to such
6655-8 sourcing agreement shall pay the contract price
6656-9 for electricity delivered under such sourcing
6657-10 agreement;
6658-11 (ii) require delivery of electricity to the
6659-12 regional transmission organization market of the
6660-13 utility that is party to such sourcing agreement;
6661-14 (iii) require the utility party to such
6662-15 sourcing agreement to buy from the initial clean
6663-16 coal facility in each hour an amount of energy
6664-17 equal to all clean coal energy made available from
6665-18 the initial clean coal facility during such hour
6666-19 times a fraction, the numerator of which is such
6667-20 utility's retail market sales of electricity
6668-21 (expressed in kilowatthours sold) in the State
6669-22 during the prior calendar month and the
6670-23 denominator of which is the total retail market
6671-24 sales of electricity (expressed in kilowatthours
6672-25 sold) in the State by utilities during such prior
6673-26 month and the sales of electricity (expressed in
6674-
6675-
6676-
6677-
6678-
6679- HB0587 Enrolled - 186 - LRB103 04172 CPF 49178 b
6680-
6681-
6682-HB0587 Enrolled- 187 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 187 - LRB103 04172 CPF 49178 b
6683- HB0587 Enrolled - 187 - LRB103 04172 CPF 49178 b
6684-1 kilowatthours sold) in the State by alternative
6685-2 retail electric suppliers during such prior month
6686-3 that are subject to the requirements of this
6687-4 subsection (d) and paragraph (5) of subsection (d)
6688-5 of Section 16-115 of the Public Utilities Act,
6689-6 provided that the amount purchased by the utility
6690-7 in any year will be limited by paragraph (2) of
6691-8 this subsection (d); and
6692-9 (iv) be considered pre-existing contracts in
6693-10 such utility's procurement plans for eligible
6694-11 retail customers;
6695-12 (C) contract for differences provisions, which
6696-13 shall:
6697-14 (i) require the utility party to such sourcing
6698-15 agreement to contract with the initial clean coal
6699-16 facility in each hour with respect to an amount of
6700-17 energy equal to all clean coal energy made
6701-18 available from the initial clean coal facility
6702-19 during such hour times a fraction, the numerator
6703-20 of which is such utility's retail market sales of
6704-21 electricity (expressed in kilowatthours sold) in
6705-22 the utility's service territory in the State
6706-23 during the prior calendar month and the
6707-24 denominator of which is the total retail market
6708-25 sales of electricity (expressed in kilowatthours
6709-26 sold) in the State by utilities during such prior
6710-
6711-
6712-
6713-
6714-
6715- HB0587 Enrolled - 187 - LRB103 04172 CPF 49178 b
6716-
6717-
6718-HB0587 Enrolled- 188 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 188 - LRB103 04172 CPF 49178 b
6719- HB0587 Enrolled - 188 - LRB103 04172 CPF 49178 b
6720-1 month and the sales of electricity (expressed in
6721-2 kilowatthours sold) in the State by alternative
6722-3 retail electric suppliers during such prior month
6723-4 that are subject to the requirements of this
6724-5 subsection (d) and paragraph (5) of subsection (d)
6725-6 of Section 16-115 of the Public Utilities Act,
6726-7 provided that the amount paid by the utility in
6727-8 any year will be limited by paragraph (2) of this
6728-9 subsection (d);
6729-10 (ii) provide that the utility's payment
6730-11 obligation in respect of the quantity of
6731-12 electricity determined pursuant to the preceding
6732-13 clause (i) shall be limited to an amount equal to
6733-14 (1) the difference between the contract price
6734-15 determined pursuant to subparagraph (A) of
6735-16 paragraph (3) of this subsection (d) and the
6736-17 day-ahead price for electricity delivered to the
6737-18 regional transmission organization market of the
6738-19 utility that is party to such sourcing agreement
6739-20 (or any successor delivery point at which such
6740-21 utility's supply obligations are financially
6741-22 settled on an hourly basis) (the "reference
6742-23 price") on the day preceding the day on which the
6743-24 electricity is delivered to the initial clean coal
6744-25 facility busbar, multiplied by (2) the quantity of
6745-26 electricity determined pursuant to the preceding
6746-
6747-
6748-
6749-
6750-
6751- HB0587 Enrolled - 188 - LRB103 04172 CPF 49178 b
6752-
6753-
6754-HB0587 Enrolled- 189 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 189 - LRB103 04172 CPF 49178 b
6755- HB0587 Enrolled - 189 - LRB103 04172 CPF 49178 b
6756-1 clause (i); and
6757-2 (iii) not require the utility to take physical
6758-3 delivery of the electricity produced by the
6759-4 facility;
6760-5 (D) general provisions, which shall:
6761-6 (i) specify a term of no more than 30 years,
6762-7 commencing on the commercial operation date of the
6763-8 facility;
6764-9 (ii) provide that utilities shall maintain
6765-10 adequate records documenting purchases under the
6766-11 sourcing agreements entered into to comply with
6767-12 this subsection (d) and shall file an accounting
6768-13 with the load forecast that must be filed with the
6769-14 Agency by July 15 of each year, in accordance with
6770-15 subsection (d) of Section 16-111.5 of the Public
6771-16 Utilities Act;
6772-17 (iii) provide that all costs associated with
6773-18 the initial clean coal facility will be
6774-19 periodically reported to the Federal Energy
6775-20 Regulatory Commission and to purchasers in
6776-21 accordance with applicable laws governing
6777-22 cost-based wholesale power contracts;
6778-23 (iv) permit the Illinois Power Agency to
6779-24 assume ownership of the initial clean coal
6780-25 facility, without monetary consideration and
6781-26 otherwise on reasonable terms acceptable to the
6782-
6783-
6784-
6785-
6786-
6787- HB0587 Enrolled - 189 - LRB103 04172 CPF 49178 b
6788-
6789-
6790-HB0587 Enrolled- 190 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 190 - LRB103 04172 CPF 49178 b
6791- HB0587 Enrolled - 190 - LRB103 04172 CPF 49178 b
6792-1 Agency, if the Agency so requests no less than 3
6793-2 years prior to the end of the stated contract
6794-3 term;
6795-4 (v) require the owner of the initial clean
6796-5 coal facility to provide documentation to the
6797-6 Commission each year, starting in the facility's
6798-7 first year of commercial operation, accurately
6799-8 reporting the quantity of carbon emissions from
6800-9 the facility that have been captured and
6801-10 sequestered and report any quantities of carbon
6802-11 released from the site or sites at which carbon
6803-12 emissions were sequestered in prior years, based
6804-13 on continuous monitoring of such sites. If, in any
6805-14 year after the first year of commercial operation,
6806-15 the owner of the facility fails to demonstrate
6807-16 that the initial clean coal facility captured and
6808-17 sequestered at least 50% of the total carbon
6809-18 emissions that the facility would otherwise emit
6810-19 or that sequestration of emissions from prior
6811-20 years has failed, resulting in the release of
6812-21 carbon dioxide into the atmosphere, the owner of
6813-22 the facility must offset excess emissions. Any
6814-23 such carbon offsets must be permanent, additional,
6815-24 verifiable, real, located within the State of
6816-25 Illinois, and legally and practicably enforceable.
6817-26 The cost of such offsets for the facility that are
6818-
6819-
6820-
6821-
6822-
6823- HB0587 Enrolled - 190 - LRB103 04172 CPF 49178 b
6824-
6825-
6826-HB0587 Enrolled- 191 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 191 - LRB103 04172 CPF 49178 b
6827- HB0587 Enrolled - 191 - LRB103 04172 CPF 49178 b
6828-1 not recoverable shall not exceed $15 million in
6829-2 any given year. No costs of any such purchases of
6830-3 carbon offsets may be recovered from a utility or
6831-4 its customers. All carbon offsets purchased for
6832-5 this purpose and any carbon emission credits
6833-6 associated with sequestration of carbon from the
6834-7 facility must be permanently retired. The initial
6835-8 clean coal facility shall not forfeit its
6836-9 designation as a clean coal facility if the
6837-10 facility fails to fully comply with the applicable
6838-11 carbon sequestration requirements in any given
6839-12 year, provided the requisite offsets are
6840-13 purchased. However, the Attorney General, on
6841-14 behalf of the People of the State of Illinois, may
6842-15 specifically enforce the facility's sequestration
6843-16 requirement and the other terms of this contract
6844-17 provision. Compliance with the sequestration
6845-18 requirements and offset purchase requirements
6846-19 specified in paragraph (3) of this subsection (d)
6847-20 shall be reviewed annually by an independent
6848-21 expert retained by the owner of the initial clean
6849-22 coal facility, with the advance written approval
6850-23 of the Attorney General. The Commission may, in
6851-24 the course of the review specified in item (vii),
6852-25 reduce the allowable return on equity for the
6853-26 facility if the facility willfully fails to comply
6854-
6855-
6856-
6857-
6858-
6859- HB0587 Enrolled - 191 - LRB103 04172 CPF 49178 b
6860-
6861-
6862-HB0587 Enrolled- 192 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 192 - LRB103 04172 CPF 49178 b
6863- HB0587 Enrolled - 192 - LRB103 04172 CPF 49178 b
6864-1 with the carbon capture and sequestration
6865-2 requirements set forth in this item (v);
6866-3 (vi) include limits on, and accordingly
6867-4 provide for modification of, the amount the
6868-5 utility is required to source under the sourcing
6869-6 agreement consistent with paragraph (2) of this
6870-7 subsection (d);
6871-8 (vii) require Commission review: (1) to
6872-9 determine the justness, reasonableness, and
6873-10 prudence of the inputs to the formula referenced
6874-11 in subparagraphs (A)(i) through (A)(iii) of
6875-12 paragraph (3) of this subsection (d), prior to an
6876-13 adjustment in those inputs including, without
6877-14 limitation, the capital structure and return on
6878-15 equity, fuel costs, and other operations and
6879-16 maintenance costs and (2) to approve the costs to
6880-17 be passed through to customers under the sourcing
6881-18 agreement by which the utility satisfies its
6882-19 statutory obligations. Commission review shall
6883-20 occur no less than every 3 years, regardless of
6884-21 whether any adjustments have been proposed, and
6885-22 shall be completed within 9 months;
6886-23 (viii) limit the utility's obligation to such
6887-24 amount as the utility is allowed to recover
6888-25 through tariffs filed with the Commission,
6889-26 provided that neither the clean coal facility nor
6890-
6891-
6892-
6893-
6894-
6895- HB0587 Enrolled - 192 - LRB103 04172 CPF 49178 b
6896-
6897-
6898-HB0587 Enrolled- 193 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 193 - LRB103 04172 CPF 49178 b
6899- HB0587 Enrolled - 193 - LRB103 04172 CPF 49178 b
6900-1 the utility waives any right to assert federal
6901-2 pre-emption or any other argument in response to a
6902-3 purported disallowance of recovery costs;
6903-4 (ix) limit the utility's or alternative retail
6904-5 electric supplier's obligation to incur any
6905-6 liability until such time as the facility is in
6906-7 commercial operation and generating power and
6907-8 energy and such power and energy is being
6908-9 delivered to the facility busbar;
6909-10 (x) provide that the owner or owners of the
6910-11 initial clean coal facility, which is the
6911-12 counterparty to such sourcing agreement, shall
6912-13 have the right from time to time to elect whether
6913-14 the obligations of the utility party thereto shall
6914-15 be governed by the power purchase provisions or
6915-16 the contract for differences provisions;
6916-17 (xi) append documentation showing that the
6917-18 formula rate and contract, insofar as they relate
6918-19 to the power purchase provisions, have been
6919-20 approved by the Federal Energy Regulatory
6920-21 Commission pursuant to Section 205 of the Federal
6921-22 Power Act;
6922-23 (xii) provide that any changes to the terms of
6923-24 the contract, insofar as such changes relate to
6924-25 the power purchase provisions, are subject to
6925-26 review under the public interest standard applied
6926-
6927-
6928-
6929-
6930-
6931- HB0587 Enrolled - 193 - LRB103 04172 CPF 49178 b
6932-
6933-
6934-HB0587 Enrolled- 194 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 194 - LRB103 04172 CPF 49178 b
6935- HB0587 Enrolled - 194 - LRB103 04172 CPF 49178 b
6936-1 by the Federal Energy Regulatory Commission
6937-2 pursuant to Sections 205 and 206 of the Federal
6938-3 Power Act; and
6939-4 (xiii) conform with customary lender
6940-5 requirements in power purchase agreements used as
6941-6 the basis for financing non-utility generators.
6942-7 (4) Effective date of sourcing agreements with the
6943-8 initial clean coal facility. Any proposed sourcing
6944-9 agreement with the initial clean coal facility shall not
6945-10 become effective unless the following reports are prepared
6946-11 and submitted and authorizations and approvals obtained:
6947-12 (i) Facility cost report. The owner of the initial
6948-13 clean coal facility shall submit to the Commission,
6949-14 the Agency, and the General Assembly a front-end
6950-15 engineering and design study, a facility cost report,
6951-16 method of financing (including but not limited to
6952-17 structure and associated costs), and an operating and
6953-18 maintenance cost quote for the facility (collectively
6954-19 "facility cost report"), which shall be prepared in
6955-20 accordance with the requirements of this paragraph (4)
6956-21 of subsection (d) of this Section, and shall provide
6957-22 the Commission and the Agency access to the work
6958-23 papers, relied upon documents, and any other backup
6959-24 documentation related to the facility cost report.
6960-25 (ii) Commission report. Within 6 months following
6961-26 receipt of the facility cost report, the Commission,
6962-
6963-
6964-
6965-
6966-
6967- HB0587 Enrolled - 194 - LRB103 04172 CPF 49178 b
6968-
6969-
6970-HB0587 Enrolled- 195 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 195 - LRB103 04172 CPF 49178 b
6971- HB0587 Enrolled - 195 - LRB103 04172 CPF 49178 b
6972-1 in consultation with the Agency, shall submit a report
6973-2 to the General Assembly setting forth its analysis of
6974-3 the facility cost report. Such report shall include,
6975-4 but not be limited to, a comparison of the costs
6976-5 associated with electricity generated by the initial
6977-6 clean coal facility to the costs associated with
6978-7 electricity generated by other types of generation
6979-8 facilities, an analysis of the rate impacts on
6980-9 residential and small business customers over the life
6981-10 of the sourcing agreements, and an analysis of the
6982-11 likelihood that the initial clean coal facility will
6983-12 commence commercial operation by and be delivering
6984-13 power to the facility's busbar by 2016. To assist in
6985-14 the preparation of its report, the Commission, in
6986-15 consultation with the Agency, may hire one or more
6987-16 experts or consultants, the costs of which shall be
6988-17 paid for by the owner of the initial clean coal
6989-18 facility. The Commission and Agency may begin the
6990-19 process of selecting such experts or consultants prior
6991-20 to receipt of the facility cost report.
6992-21 (iii) General Assembly approval. The proposed
6993-22 sourcing agreements shall not take effect unless,
6994-23 based on the facility cost report and the Commission's
6995-24 report, the General Assembly enacts authorizing
6996-25 legislation approving (A) the projected price, stated
6997-26 in cents per kilowatthour, to be charged for
6998-
6999-
7000-
7001-
7002-
7003- HB0587 Enrolled - 195 - LRB103 04172 CPF 49178 b
7004-
7005-
7006-HB0587 Enrolled- 196 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 196 - LRB103 04172 CPF 49178 b
7007- HB0587 Enrolled - 196 - LRB103 04172 CPF 49178 b
7008-1 electricity generated by the initial clean coal
7009-2 facility, (B) the projected impact on residential and
7010-3 small business customers' bills over the life of the
7011-4 sourcing agreements, and (C) the maximum allowable
7012-5 return on equity for the project; and
7013-6 (iv) Commission review. If the General Assembly
7014-7 enacts authorizing legislation pursuant to
7015-8 subparagraph (iii) approving a sourcing agreement, the
7016-9 Commission shall, within 90 days of such enactment,
7017-10 complete a review of such sourcing agreement. During
7018-11 such time period, the Commission shall implement any
7019-12 directive of the General Assembly, resolve any
7020-13 disputes between the parties to the sourcing agreement
7021-14 concerning the terms of such agreement, approve the
7022-15 form of such agreement, and issue an order finding
7023-16 that the sourcing agreement is prudent and reasonable.
7024-17 The facility cost report shall be prepared as follows:
7025-18 (A) The facility cost report shall be prepared by
7026-19 duly licensed engineering and construction firms
7027-20 detailing the estimated capital costs payable to one
7028-21 or more contractors or suppliers for the engineering,
7029-22 procurement and construction of the components
7030-23 comprising the initial clean coal facility and the
7031-24 estimated costs of operation and maintenance of the
7032-25 facility. The facility cost report shall include:
7033-26 (i) an estimate of the capital cost of the
7034-
7035-
7036-
7037-
7038-
7039- HB0587 Enrolled - 196 - LRB103 04172 CPF 49178 b
7040-
7041-
7042-HB0587 Enrolled- 197 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 197 - LRB103 04172 CPF 49178 b
7043- HB0587 Enrolled - 197 - LRB103 04172 CPF 49178 b
7044-1 core plant based on one or more front end
7045-2 engineering and design studies for the
7046-3 gasification island and related facilities. The
7047-4 core plant shall include all civil, structural,
7048-5 mechanical, electrical, control, and safety
7049-6 systems.
7050-7 (ii) an estimate of the capital cost of the
7051-8 balance of the plant, including any capital costs
7052-9 associated with sequestration of carbon dioxide
7053-10 emissions and all interconnects and interfaces
7054-11 required to operate the facility, such as
7055-12 transmission of electricity, construction or
7056-13 backfeed power supply, pipelines to transport
7057-14 substitute natural gas or carbon dioxide, potable
7058-15 water supply, natural gas supply, water supply,
7059-16 water discharge, landfill, access roads, and coal
7060-17 delivery.
7061-18 The quoted construction costs shall be expressed
7062-19 in nominal dollars as of the date that the quote is
7063-20 prepared and shall include capitalized financing costs
7064-21 during construction, taxes, insurance, and other
7065-22 owner's costs, and an assumed escalation in materials
7066-23 and labor beyond the date as of which the construction
7067-24 cost quote is expressed.
7068-25 (B) The front end engineering and design study for
7069-26 the gasification island and the cost study for the
7070-
7071-
7072-
7073-
7074-
7075- HB0587 Enrolled - 197 - LRB103 04172 CPF 49178 b
7076-
7077-
7078-HB0587 Enrolled- 198 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 198 - LRB103 04172 CPF 49178 b
7079- HB0587 Enrolled - 198 - LRB103 04172 CPF 49178 b
7080-1 balance of plant shall include sufficient design work
7081-2 to permit quantification of major categories of
7082-3 materials, commodities and labor hours, and receipt of
7083-4 quotes from vendors of major equipment required to
7084-5 construct and operate the clean coal facility.
7085-6 (C) The facility cost report shall also include an
7086-7 operating and maintenance cost quote that will provide
7087-8 the estimated cost of delivered fuel, personnel,
7088-9 maintenance contracts, chemicals, catalysts,
7089-10 consumables, spares, and other fixed and variable
7090-11 operations and maintenance costs. The delivered fuel
7091-12 cost estimate will be provided by a recognized third
7092-13 party expert or experts in the fuel and transportation
7093-14 industries. The balance of the operating and
7094-15 maintenance cost quote, excluding delivered fuel
7095-16 costs, will be developed based on the inputs provided
7096-17 by duly licensed engineering and construction firms
7097-18 performing the construction cost quote, potential
7098-19 vendors under long-term service agreements and plant
7099-20 operating agreements, or recognized third party plant
7100-21 operator or operators.
7101-22 The operating and maintenance cost quote
7102-23 (including the cost of the front end engineering and
7103-24 design study) shall be expressed in nominal dollars as
7104-25 of the date that the quote is prepared and shall
7105-26 include taxes, insurance, and other owner's costs, and
7106-
7107-
7108-
7109-
7110-
7111- HB0587 Enrolled - 198 - LRB103 04172 CPF 49178 b
7112-
7113-
7114-HB0587 Enrolled- 199 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 199 - LRB103 04172 CPF 49178 b
7115- HB0587 Enrolled - 199 - LRB103 04172 CPF 49178 b
7116-1 an assumed escalation in materials and labor beyond
7117-2 the date as of which the operating and maintenance
7118-3 cost quote is expressed.
7119-4 (D) The facility cost report shall also include an
7120-5 analysis of the initial clean coal facility's ability
7121-6 to deliver power and energy into the applicable
7122-7 regional transmission organization markets and an
7123-8 analysis of the expected capacity factor for the
7124-9 initial clean coal facility.
7125-10 (E) Amounts paid to third parties unrelated to the
7126-11 owner or owners of the initial clean coal facility to
7127-12 prepare the core plant construction cost quote,
7128-13 including the front end engineering and design study,
7129-14 and the operating and maintenance cost quote will be
7130-15 reimbursed through Coal Development Bonds.
7131-16 (5) Re-powering and retrofitting coal-fired power
7132-17 plants previously owned by Illinois utilities to qualify
7133-18 as clean coal facilities. During the 2009 procurement
7134-19 planning process and thereafter, the Agency and the
7135-20 Commission shall consider sourcing agreements covering
7136-21 electricity generated by power plants that were previously
7137-22 owned by Illinois utilities and that have been or will be
7138-23 converted into clean coal facilities, as defined by
7139-24 Section 1-10 of this Act. Pursuant to such procurement
7140-25 planning process, the owners of such facilities may
7141-26 propose to the Agency sourcing agreements with utilities
7142-
7143-
7144-
7145-
7146-
7147- HB0587 Enrolled - 199 - LRB103 04172 CPF 49178 b
7148-
7149-
7150-HB0587 Enrolled- 200 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 200 - LRB103 04172 CPF 49178 b
7151- HB0587 Enrolled - 200 - LRB103 04172 CPF 49178 b
7152-1 and alternative retail electric suppliers required to
7153-2 comply with subsection (d) of this Section and item (5) of
7154-3 subsection (d) of Section 16-115 of the Public Utilities
7155-4 Act, covering electricity generated by such facilities. In
7156-5 the case of sourcing agreements that are power purchase
7157-6 agreements, the contract price for electricity sales shall
7158-7 be established on a cost of service basis. In the case of
7159-8 sourcing agreements that are contracts for differences,
7160-9 the contract price from which the reference price is
7161-10 subtracted shall be established on a cost of service
7162-11 basis. The Agency and the Commission may approve any such
7163-12 utility sourcing agreements that do not exceed cost-based
7164-13 benchmarks developed by the procurement administrator, in
7165-14 consultation with the Commission staff, Agency staff and
7166-15 the procurement monitor, subject to Commission review and
7167-16 approval. The Commission shall have authority to inspect
7168-17 all books and records associated with these clean coal
7169-18 facilities during the term of any such contract.
7170-19 (6) Costs incurred under this subsection (d) or
7171-20 pursuant to a contract entered into under this subsection
7172-21 (d) shall be deemed prudently incurred and reasonable in
7173-22 amount and the electric utility shall be entitled to full
7174-23 cost recovery pursuant to the tariffs filed with the
7175-24 Commission.
7176-25 (d-5) Zero emission standard.
7177-26 (1) Beginning with the delivery year commencing on
7178-
7179-
7180-
7181-
7182-
7183- HB0587 Enrolled - 200 - LRB103 04172 CPF 49178 b
7184-
7185-
7186-HB0587 Enrolled- 201 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 201 - LRB103 04172 CPF 49178 b
7187- HB0587 Enrolled - 201 - LRB103 04172 CPF 49178 b
7188-1 June 1, 2017, the Agency shall, for electric utilities
7189-2 that serve at least 100,000 retail customers in this
7190-3 State, procure contracts with zero emission facilities
7191-4 that are reasonably capable of generating cost-effective
7192-5 zero emission credits in an amount approximately equal to
7193-6 16% of the actual amount of electricity delivered by each
7194-7 electric utility to retail customers in the State during
7195-8 calendar year 2014. For an electric utility serving fewer
7196-9 than 100,000 retail customers in this State that
7197-10 requested, under Section 16-111.5 of the Public Utilities
7198-11 Act, that the Agency procure power and energy for all or a
7199-12 portion of the utility's Illinois load for the delivery
7200-13 year commencing June 1, 2016, the Agency shall procure
7201-14 contracts with zero emission facilities that are
7202-15 reasonably capable of generating cost-effective zero
7203-16 emission credits in an amount approximately equal to 16%
7204-17 of the portion of power and energy to be procured by the
7205-18 Agency for the utility. The duration of the contracts
7206-19 procured under this subsection (d-5) shall be for a term
7207-20 of 10 years ending May 31, 2027. The quantity of zero
7208-21 emission credits to be procured under the contracts shall
7209-22 be all of the zero emission credits generated by the zero
7210-23 emission facility in each delivery year; however, if the
7211-24 zero emission facility is owned by more than one entity,
7212-25 then the quantity of zero emission credits to be procured
7213-26 under the contracts shall be the amount of zero emission
7214-
7215-
7216-
7217-
7218-
7219- HB0587 Enrolled - 201 - LRB103 04172 CPF 49178 b
7220-
7221-
7222-HB0587 Enrolled- 202 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 202 - LRB103 04172 CPF 49178 b
7223- HB0587 Enrolled - 202 - LRB103 04172 CPF 49178 b
7224-1 credits that are generated from the portion of the zero
7225-2 emission facility that is owned by the winning supplier.
7226-3 The 16% value identified in this paragraph (1) is the
7227-4 average of the percentage targets in subparagraph (B) of
7228-5 paragraph (1) of subsection (c) of this Section for the 5
7229-6 delivery years beginning June 1, 2017.
7230-7 The procurement process shall be subject to the
7231-8 following provisions:
7232-9 (A) Those zero emission facilities that intend to
7233-10 participate in the procurement shall submit to the
7234-11 Agency the following eligibility information for each
7235-12 zero emission facility on or before the date
7236-13 established by the Agency:
7237-14 (i) the in-service date and remaining useful
7238-15 life of the zero emission facility;
7239-16 (ii) the amount of power generated annually
7240-17 for each of the years 2005 through 2015, and the
7241-18 projected zero emission credits to be generated
7242-19 over the remaining useful life of the zero
7243-20 emission facility, which shall be used to
7244-21 determine the capability of each facility;
7245-22 (iii) the annual zero emission facility cost
7246-23 projections, expressed on a per megawatthour
7247-24 basis, over the next 6 delivery years, which shall
7248-25 include the following: operation and maintenance
7249-26 expenses; fully allocated overhead costs, which
7250-
7251-
7252-
7253-
7254-
7255- HB0587 Enrolled - 202 - LRB103 04172 CPF 49178 b
7256-
7257-
7258-HB0587 Enrolled- 203 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 203 - LRB103 04172 CPF 49178 b
7259- HB0587 Enrolled - 203 - LRB103 04172 CPF 49178 b
7260-1 shall be allocated using the methodology developed
7261-2 by the Institute for Nuclear Power Operations;
7262-3 fuel expenditures; non-fuel capital expenditures;
7263-4 spent fuel expenditures; a return on working
7264-5 capital; the cost of operational and market risks
7265-6 that could be avoided by ceasing operation; and
7266-7 any other costs necessary for continued
7267-8 operations, provided that "necessary" means, for
7268-9 purposes of this item (iii), that the costs could
7269-10 reasonably be avoided only by ceasing operations
7270-11 of the zero emission facility; and
7271-12 (iv) a commitment to continue operating, for
7272-13 the duration of the contract or contracts executed
7273-14 under the procurement held under this subsection
7274-15 (d-5), the zero emission facility that produces
7275-16 the zero emission credits to be procured in the
7276-17 procurement.
7277-18 The information described in item (iii) of this
7278-19 subparagraph (A) may be submitted on a confidential
7279-20 basis and shall be treated and maintained by the
7280-21 Agency, the procurement administrator, and the
7281-22 Commission as confidential and proprietary and exempt
7282-23 from disclosure under subparagraphs (a) and (g) of
7283-24 paragraph (1) of Section 7 of the Freedom of
7284-25 Information Act. The Office of Attorney General shall
7285-26 have access to, and maintain the confidentiality of,
7286-
7287-
7288-
7289-
7290-
7291- HB0587 Enrolled - 203 - LRB103 04172 CPF 49178 b
7292-
7293-
7294-HB0587 Enrolled- 204 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 204 - LRB103 04172 CPF 49178 b
7295- HB0587 Enrolled - 204 - LRB103 04172 CPF 49178 b
7296-1 such information pursuant to Section 6.5 of the
7297-2 Attorney General Act.
7298-3 (B) The price for each zero emission credit
7299-4 procured under this subsection (d-5) for each delivery
7300-5 year shall be in an amount that equals the Social Cost
7301-6 of Carbon, expressed on a price per megawatthour
7302-7 basis. However, to ensure that the procurement remains
7303-8 affordable to retail customers in this State if
7304-9 electricity prices increase, the price in an
7305-10 applicable delivery year shall be reduced below the
7306-11 Social Cost of Carbon by the amount ("Price
7307-12 Adjustment") by which the market price index for the
7308-13 applicable delivery year exceeds the baseline market
7309-14 price index for the consecutive 12-month period ending
7310-15 May 31, 2016. If the Price Adjustment is greater than
7311-16 or equal to the Social Cost of Carbon in an applicable
7312-17 delivery year, then no payments shall be due in that
7313-18 delivery year. The components of this calculation are
7314-19 defined as follows:
7315-20 (i) Social Cost of Carbon: The Social Cost of
7316-21 Carbon is $16.50 per megawatthour, which is based
7317-22 on the U.S. Interagency Working Group on Social
7318-23 Cost of Carbon's price in the August 2016
7319-24 Technical Update using a 3% discount rate,
7320-25 adjusted for inflation for each year of the
7321-26 program. Beginning with the delivery year
7322-
7323-
7324-
7325-
7326-
7327- HB0587 Enrolled - 204 - LRB103 04172 CPF 49178 b
7328-
7329-
7330-HB0587 Enrolled- 205 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 205 - LRB103 04172 CPF 49178 b
7331- HB0587 Enrolled - 205 - LRB103 04172 CPF 49178 b
7332-1 commencing June 1, 2023, the price per
7333-2 megawatthour shall increase by $1 per
7334-3 megawatthour, and continue to increase by an
7335-4 additional $1 per megawatthour each delivery year
7336-5 thereafter.
7337-6 (ii) Baseline market price index: The baseline
7338-7 market price index for the consecutive 12-month
7339-8 period ending May 31, 2016 is $31.40 per
7340-9 megawatthour, which is based on the sum of (aa)
7341-10 the average day-ahead energy price across all
7342-11 hours of such 12-month period at the PJM
7343-12 Interconnection LLC Northern Illinois Hub, (bb)
7344-13 50% multiplied by the Base Residual Auction, or
7345-14 its successor, capacity price for the rest of the
7346-15 RTO zone group determined by PJM Interconnection
7347-16 LLC, divided by 24 hours per day, and (cc) 50%
7348-17 multiplied by the Planning Resource Auction, or
7349-18 its successor, capacity price for Zone 4
7350-19 determined by the Midcontinent Independent System
7351-20 Operator, Inc., divided by 24 hours per day.
7352-21 (iii) Market price index: The market price
7353-22 index for a delivery year shall be the sum of
7354-23 projected energy prices and projected capacity
7355-24 prices determined as follows:
7356-25 (aa) Projected energy prices: the
7357-26 projected energy prices for the applicable
7358-
7359-
7360-
7361-
7362-
7363- HB0587 Enrolled - 205 - LRB103 04172 CPF 49178 b
7364-
7365-
7366-HB0587 Enrolled- 206 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 206 - LRB103 04172 CPF 49178 b
7367- HB0587 Enrolled - 206 - LRB103 04172 CPF 49178 b
7368-1 delivery year shall be calculated once for the
7369-2 year using the forward market price for the
7370-3 PJM Interconnection, LLC Northern Illinois
7371-4 Hub. The forward market price shall be
7372-5 calculated as follows: the energy forward
7373-6 prices for each month of the applicable
7374-7 delivery year averaged for each trade date
7375-8 during the calendar year immediately preceding
7376-9 that delivery year to produce a single energy
7377-10 forward price for the delivery year. The
7378-11 forward market price calculation shall use
7379-12 data published by the Intercontinental
7380-13 Exchange, or its successor.
7381-14 (bb) Projected capacity prices:
7382-15 (I) For the delivery years commencing
7383-16 June 1, 2017, June 1, 2018, and June 1,
7384-17 2019, the projected capacity price shall
7385-18 be equal to the sum of (1) 50% multiplied
7386-19 by the Base Residual Auction, or its
7387-20 successor, price for the rest of the RTO
7388-21 zone group as determined by PJM
7389-22 Interconnection LLC, divided by 24 hours
7390-23 per day and, (2) 50% multiplied by the
7391-24 resource auction price determined in the
7392-25 resource auction administered by the
7393-26 Midcontinent Independent System Operator,
7394-
7395-
7396-
7397-
7398-
7399- HB0587 Enrolled - 206 - LRB103 04172 CPF 49178 b
7400-
7401-
7402-HB0587 Enrolled- 207 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 207 - LRB103 04172 CPF 49178 b
7403- HB0587 Enrolled - 207 - LRB103 04172 CPF 49178 b
7404-1 Inc., in which the largest percentage of
7405-2 load cleared for Local Resource Zone 4,
7406-3 divided by 24 hours per day, and where
7407-4 such price is determined by the
7408-5 Midcontinent Independent System Operator,
7409-6 Inc.
7410-7 (II) For the delivery year commencing
7411-8 June 1, 2020, and each year thereafter,
7412-9 the projected capacity price shall be
7413-10 equal to the sum of (1) 50% multiplied by
7414-11 the Base Residual Auction, or its
7415-12 successor, price for the ComEd zone as
7416-13 determined by PJM Interconnection LLC,
7417-14 divided by 24 hours per day, and (2) 50%
7418-15 multiplied by the resource auction price
7419-16 determined in the resource auction
7420-17 administered by the Midcontinent
7421-18 Independent System Operator, Inc., in
7422-19 which the largest percentage of load
7423-20 cleared for Local Resource Zone 4, divided
7424-21 by 24 hours per day, and where such price
7425-22 is determined by the Midcontinent
7426-23 Independent System Operator, Inc.
7427-24 For purposes of this subsection (d-5):
7428-25 "Rest of the RTO" and "ComEd Zone" shall have
7429-26 the meaning ascribed to them by PJM
7430-
7431-
7432-
7433-
7434-
7435- HB0587 Enrolled - 207 - LRB103 04172 CPF 49178 b
7436-
7437-
7438-HB0587 Enrolled- 208 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 208 - LRB103 04172 CPF 49178 b
7439- HB0587 Enrolled - 208 - LRB103 04172 CPF 49178 b
7440-1 Interconnection, LLC.
7441-2 "RTO" means regional transmission
7442-3 organization.
7443-4 (C) No later than 45 days after June 1, 2017 (the
7444-5 effective date of Public Act 99-906), the Agency shall
7445-6 publish its proposed zero emission standard
7446-7 procurement plan. The plan shall be consistent with
7447-8 the provisions of this paragraph (1) and shall provide
7448-9 that winning bids shall be selected based on public
7449-10 interest criteria that include, but are not limited
7450-11 to, minimizing carbon dioxide emissions that result
7451-12 from electricity consumed in Illinois and minimizing
7452-13 sulfur dioxide, nitrogen oxide, and particulate matter
7453-14 emissions that adversely affect the citizens of this
7454-15 State. In particular, the selection of winning bids
7455-16 shall take into account the incremental environmental
7456-17 benefits resulting from the procurement, such as any
7457-18 existing environmental benefits that are preserved by
7458-19 the procurements held under Public Act 99-906 and
7459-20 would cease to exist if the procurements were not
7460-21 held, including the preservation of zero emission
7461-22 facilities. The plan shall also describe in detail how
7462-23 each public interest factor shall be considered and
7463-24 weighted in the bid selection process to ensure that
7464-25 the public interest criteria are applied to the
7465-26 procurement and given full effect.
7466-
7467-
7468-
7469-
7470-
7471- HB0587 Enrolled - 208 - LRB103 04172 CPF 49178 b
7472-
7473-
7474-HB0587 Enrolled- 209 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 209 - LRB103 04172 CPF 49178 b
7475- HB0587 Enrolled - 209 - LRB103 04172 CPF 49178 b
7476-1 For purposes of developing the plan, the Agency
7477-2 shall consider any reports issued by a State agency,
7478-3 board, or commission under House Resolution 1146 of
7479-4 the 98th General Assembly and paragraph (4) of
7480-5 subsection (d) of this Section, as well as publicly
7481-6 available analyses and studies performed by or for
7482-7 regional transmission organizations that serve the
7483-8 State and their independent market monitors.
7484-9 Upon publishing of the zero emission standard
7485-10 procurement plan, copies of the plan shall be posted
7486-11 and made publicly available on the Agency's website.
7487-12 All interested parties shall have 10 days following
7488-13 the date of posting to provide comment to the Agency on
7489-14 the plan. All comments shall be posted to the Agency's
7490-15 website. Following the end of the comment period, but
7491-16 no more than 60 days later than June 1, 2017 (the
7492-17 effective date of Public Act 99-906), the Agency shall
7493-18 revise the plan as necessary based on the comments
7494-19 received and file its zero emission standard
7495-20 procurement plan with the Commission.
7496-21 If the Commission determines that the plan will
7497-22 result in the procurement of cost-effective zero
7498-23 emission credits, then the Commission shall, after
7499-24 notice and hearing, but no later than 45 days after the
7500-25 Agency filed the plan, approve the plan or approve
7501-26 with modification. For purposes of this subsection
7502-
7503-
7504-
7505-
7506-
7507- HB0587 Enrolled - 209 - LRB103 04172 CPF 49178 b
7508-
7509-
7510-HB0587 Enrolled- 210 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 210 - LRB103 04172 CPF 49178 b
7511- HB0587 Enrolled - 210 - LRB103 04172 CPF 49178 b
7512-1 (d-5), "cost effective" means the projected costs of
7513-2 procuring zero emission credits from zero emission
7514-3 facilities do not cause the limit stated in paragraph
7515-4 (2) of this subsection to be exceeded.
7516-5 (C-5) As part of the Commission's review and
7517-6 acceptance or rejection of the procurement results,
7518-7 the Commission shall, in its public notice of
7519-8 successful bidders:
7520-9 (i) identify how the winning bids satisfy the
7521-10 public interest criteria described in subparagraph
7522-11 (C) of this paragraph (1) of minimizing carbon
7523-12 dioxide emissions that result from electricity
7524-13 consumed in Illinois and minimizing sulfur
7525-14 dioxide, nitrogen oxide, and particulate matter
7526-15 emissions that adversely affect the citizens of
7527-16 this State;
7528-17 (ii) specifically address how the selection of
7529-18 winning bids takes into account the incremental
7530-19 environmental benefits resulting from the
7531-20 procurement, including any existing environmental
7532-21 benefits that are preserved by the procurements
7533-22 held under Public Act 99-906 and would have ceased
7534-23 to exist if the procurements had not been held,
7535-24 such as the preservation of zero emission
7536-25 facilities;
7537-26 (iii) quantify the environmental benefit of
7538-
7539-
7540-
7541-
7542-
7543- HB0587 Enrolled - 210 - LRB103 04172 CPF 49178 b
7544-
7545-
7546-HB0587 Enrolled- 211 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 211 - LRB103 04172 CPF 49178 b
7547- HB0587 Enrolled - 211 - LRB103 04172 CPF 49178 b
7548-1 preserving the resources identified in item (ii)
7549-2 of this subparagraph (C-5), including the
7550-3 following:
7551-4 (aa) the value of avoided greenhouse gas
7552-5 emissions measured as the product of the zero
7553-6 emission facilities' output over the contract
7554-7 term multiplied by the U.S. Environmental
7555-8 Protection Agency eGrid subregion carbon
7556-9 dioxide emission rate and the U.S. Interagency
7557-10 Working Group on Social Cost of Carbon's price
7558-11 in the August 2016 Technical Update using a 3%
7559-12 discount rate, adjusted for inflation for each
7560-13 delivery year; and
7561-14 (bb) the costs of replacement with other
7562-15 zero carbon dioxide resources, including wind
7563-16 and photovoltaic, based upon the simple
7564-17 average of the following:
7565-18 (I) the price, or if there is more
7566-19 than one price, the average of the prices,
7567-20 paid for renewable energy credits from new
7568-21 utility-scale wind projects in the
7569-22 procurement events specified in item (i)
7570-23 of subparagraph (G) of paragraph (1) of
7571-24 subsection (c) of this Section; and
7572-25 (II) the price, or if there is more
7573-26 than one price, the average of the prices,
7574-
7575-
7576-
7577-
7578-
7579- HB0587 Enrolled - 211 - LRB103 04172 CPF 49178 b
7580-
7581-
7582-HB0587 Enrolled- 212 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 212 - LRB103 04172 CPF 49178 b
7583- HB0587 Enrolled - 212 - LRB103 04172 CPF 49178 b
7584-1 paid for renewable energy credits from new
7585-2 utility-scale solar projects and
7586-3 brownfield site photovoltaic projects in
7587-4 the procurement events specified in item
7588-5 (ii) of subparagraph (G) of paragraph (1)
7589-6 of subsection (c) of this Section and,
7590-7 after January 1, 2015, renewable energy
7591-8 credits from photovoltaic distributed
7592-9 generation projects in procurement events
7593-10 held under subsection (c) of this Section.
7594-11 Each utility shall enter into binding contractual
7595-12 arrangements with the winning suppliers.
7596-13 The procurement described in this subsection
7597-14 (d-5), including, but not limited to, the execution of
7598-15 all contracts procured, shall be completed no later
7599-16 than May 10, 2017. Based on the effective date of
7600-17 Public Act 99-906, the Agency and Commission may, as
7601-18 appropriate, modify the various dates and timelines
7602-19 under this subparagraph and subparagraphs (C) and (D)
7603-20 of this paragraph (1). The procurement and plan
7604-21 approval processes required by this subsection (d-5)
7605-22 shall be conducted in conjunction with the procurement
7606-23 and plan approval processes required by subsection (c)
7607-24 of this Section and Section 16-111.5 of the Public
7608-25 Utilities Act, to the extent practicable.
7609-26 Notwithstanding whether a procurement event is
7610-
7611-
7612-
7613-
7614-
7615- HB0587 Enrolled - 212 - LRB103 04172 CPF 49178 b
7616-
7617-
7618-HB0587 Enrolled- 213 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 213 - LRB103 04172 CPF 49178 b
7619- HB0587 Enrolled - 213 - LRB103 04172 CPF 49178 b
7620-1 conducted under Section 16-111.5 of the Public
7621-2 Utilities Act, the Agency shall immediately initiate a
7622-3 procurement process on June 1, 2017 (the effective
7623-4 date of Public Act 99-906).
7624-5 (D) Following the procurement event described in
7625-6 this paragraph (1) and consistent with subparagraph
7626-7 (B) of this paragraph (1), the Agency shall calculate
7627-8 the payments to be made under each contract for the
7628-9 next delivery year based on the market price index for
7629-10 that delivery year. The Agency shall publish the
7630-11 payment calculations no later than May 25, 2017 and
7631-12 every May 25 thereafter.
7632-13 (E) Notwithstanding the requirements of this
7633-14 subsection (d-5), the contracts executed under this
7634-15 subsection (d-5) shall provide that the zero emission
7635-16 facility may, as applicable, suspend or terminate
7636-17 performance under the contracts in the following
7637-18 instances:
7638-19 (i) A zero emission facility shall be excused
7639-20 from its performance under the contract for any
7640-21 cause beyond the control of the resource,
7641-22 including, but not restricted to, acts of God,
7642-23 flood, drought, earthquake, storm, fire,
7643-24 lightning, epidemic, war, riot, civil disturbance
7644-25 or disobedience, labor dispute, labor or material
7645-26 shortage, sabotage, acts of public enemy,
7646-
7647-
7648-
7649-
7650-
7651- HB0587 Enrolled - 213 - LRB103 04172 CPF 49178 b
7652-
7653-
7654-HB0587 Enrolled- 214 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 214 - LRB103 04172 CPF 49178 b
7655- HB0587 Enrolled - 214 - LRB103 04172 CPF 49178 b
7656-1 explosions, orders, regulations or restrictions
7657-2 imposed by governmental, military, or lawfully
7658-3 established civilian authorities, which, in any of
7659-4 the foregoing cases, by exercise of commercially
7660-5 reasonable efforts the zero emission facility
7661-6 could not reasonably have been expected to avoid,
7662-7 and which, by the exercise of commercially
7663-8 reasonable efforts, it has been unable to
7664-9 overcome. In such event, the zero emission
7665-10 facility shall be excused from performance for the
7666-11 duration of the event, including, but not limited
7667-12 to, delivery of zero emission credits, and no
7668-13 payment shall be due to the zero emission facility
7669-14 during the duration of the event.
7670-15 (ii) A zero emission facility shall be
7671-16 permitted to terminate the contract if legislation
7672-17 is enacted into law by the General Assembly that
7673-18 imposes or authorizes a new tax, special
7674-19 assessment, or fee on the generation of
7675-20 electricity, the ownership or leasehold of a
7676-21 generating unit, or the privilege or occupation of
7677-22 such generation, ownership, or leasehold of
7678-23 generation units by a zero emission facility.
7679-24 However, the provisions of this item (ii) do not
7680-25 apply to any generally applicable tax, special
7681-26 assessment or fee, or requirements imposed by
7682-
7683-
7684-
7685-
7686-
7687- HB0587 Enrolled - 214 - LRB103 04172 CPF 49178 b
7688-
7689-
7690-HB0587 Enrolled- 215 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 215 - LRB103 04172 CPF 49178 b
7691- HB0587 Enrolled - 215 - LRB103 04172 CPF 49178 b
7692-1 federal law.
7693-2 (iii) A zero emission facility shall be
7694-3 permitted to terminate the contract in the event
7695-4 that the resource requires capital expenditures in
7696-5 excess of $40,000,000 that were neither known nor
7697-6 reasonably foreseeable at the time it executed the
7698-7 contract and that a prudent owner or operator of
7699-8 such resource would not undertake.
7700-9 (iv) A zero emission facility shall be
7701-10 permitted to terminate the contract in the event
7702-11 the Nuclear Regulatory Commission terminates the
7703-12 resource's license.
7704-13 (F) If the zero emission facility elects to
7705-14 terminate a contract under subparagraph (E) of this
7706-15 paragraph (1), then the Commission shall reopen the
7707-16 docket in which the Commission approved the zero
7708-17 emission standard procurement plan under subparagraph
7709-18 (C) of this paragraph (1) and, after notice and
7710-19 hearing, enter an order acknowledging the contract
7711-20 termination election if such termination is consistent
7712-21 with the provisions of this subsection (d-5).
7713-22 (2) For purposes of this subsection (d-5), the amount
7714-23 paid per kilowatthour means the total amount paid for
7715-24 electric service expressed on a per kilowatthour basis.
7716-25 For purposes of this subsection (d-5), the total amount
7717-26 paid for electric service includes, without limitation,
7718-
7719-
7720-
7721-
7722-
7723- HB0587 Enrolled - 215 - LRB103 04172 CPF 49178 b
7724-
7725-
7726-HB0587 Enrolled- 216 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 216 - LRB103 04172 CPF 49178 b
7727- HB0587 Enrolled - 216 - LRB103 04172 CPF 49178 b
7728-1 amounts paid for supply, transmission, distribution,
7729-2 surcharges, and add-on taxes.
7730-3 Notwithstanding the requirements of this subsection
7731-4 (d-5), the contracts executed under this subsection (d-5)
7732-5 shall provide that the total of zero emission credits
7733-6 procured under a procurement plan shall be subject to the
7734-7 limitations of this paragraph (2). For each delivery year,
7735-8 the contractual volume receiving payments in such year
7736-9 shall be reduced for all retail customers based on the
7737-10 amount necessary to limit the net increase that delivery
7738-11 year to the costs of those credits included in the amounts
7739-12 paid by eligible retail customers in connection with
7740-13 electric service to no more than 1.65% of the amount paid
7741-14 per kilowatthour by eligible retail customers during the
7742-15 year ending May 31, 2009. The result of this computation
7743-16 shall apply to and reduce the procurement for all retail
7744-17 customers, and all those customers shall pay the same
7745-18 single, uniform cents per kilowatthour charge under
7746-19 subsection (k) of Section 16-108 of the Public Utilities
7747-20 Act. To arrive at a maximum dollar amount of zero emission
7748-21 credits to be paid for the particular delivery year, the
7749-22 resulting per kilowatthour amount shall be applied to the
7750-23 actual amount of kilowatthours of electricity delivered by
7751-24 the electric utility in the delivery year immediately
7752-25 prior to the procurement, to all retail customers in its
7753-26 service territory. Unpaid contractual volume for any
7754-
7755-
7756-
7757-
7758-
7759- HB0587 Enrolled - 216 - LRB103 04172 CPF 49178 b
7760-
7761-
7762-HB0587 Enrolled- 217 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 217 - LRB103 04172 CPF 49178 b
7763- HB0587 Enrolled - 217 - LRB103 04172 CPF 49178 b
7764-1 delivery year shall be paid in any subsequent delivery
7765-2 year in which such payments can be made without exceeding
7766-3 the amount specified in this paragraph (2). The
7767-4 calculations required by this paragraph (2) shall be made
7768-5 only once for each procurement plan year. Once the
7769-6 determination as to the amount of zero emission credits to
7770-7 be paid is made based on the calculations set forth in this
7771-8 paragraph (2), no subsequent rate impact determinations
7772-9 shall be made and no adjustments to those contract amounts
7773-10 shall be allowed. All costs incurred under those contracts
7774-11 and in implementing this subsection (d-5) shall be
7775-12 recovered by the electric utility as provided in this
7776-13 Section.
7777-14 No later than June 30, 2019, the Commission shall
7778-15 review the limitation on the amount of zero emission
7779-16 credits procured under this subsection (d-5) and report to
7780-17 the General Assembly its findings as to whether that
7781-18 limitation unduly constrains the procurement of
7782-19 cost-effective zero emission credits.
7783-20 (3) Six years after the execution of a contract under
7784-21 this subsection (d-5), the Agency shall determine whether
7785-22 the actual zero emission credit payments received by the
7786-23 supplier over the 6-year period exceed the Average ZEC
7787-24 Payment. In addition, at the end of the term of a contract
7788-25 executed under this subsection (d-5), or at the time, if
7789-26 any, a zero emission facility's contract is terminated
7790-
7791-
7792-
7793-
7794-
7795- HB0587 Enrolled - 217 - LRB103 04172 CPF 49178 b
7796-
7797-
7798-HB0587 Enrolled- 218 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 218 - LRB103 04172 CPF 49178 b
7799- HB0587 Enrolled - 218 - LRB103 04172 CPF 49178 b
7800-1 under subparagraph (E) of paragraph (1) of this subsection
7801-2 (d-5), then the Agency shall determine whether the actual
7802-3 zero emission credit payments received by the supplier
7803-4 over the term of the contract exceed the Average ZEC
7804-5 Payment, after taking into account any amounts previously
7805-6 credited back to the utility under this paragraph (3). If
7806-7 the Agency determines that the actual zero emission credit
7807-8 payments received by the supplier over the relevant period
7808-9 exceed the Average ZEC Payment, then the supplier shall
7809-10 credit the difference back to the utility. The amount of
7810-11 the credit shall be remitted to the applicable electric
7811-12 utility no later than 120 days after the Agency's
7812-13 determination, which the utility shall reflect as a credit
7813-14 on its retail customer bills as soon as practicable;
7814-15 however, the credit remitted to the utility shall not
7815-16 exceed the total amount of payments received by the
7816-17 facility under its contract.
7817-18 For purposes of this Section, the Average ZEC Payment
7818-19 shall be calculated by multiplying the quantity of zero
7819-20 emission credits delivered under the contract times the
7820-21 average contract price. The average contract price shall
7821-22 be determined by subtracting the amount calculated under
7822-23 subparagraph (B) of this paragraph (3) from the amount
7823-24 calculated under subparagraph (A) of this paragraph (3),
7824-25 as follows:
7825-26 (A) The average of the Social Cost of Carbon, as
7826-
7827-
7828-
7829-
7830-
7831- HB0587 Enrolled - 218 - LRB103 04172 CPF 49178 b
7832-
7833-
7834-HB0587 Enrolled- 219 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 219 - LRB103 04172 CPF 49178 b
7835- HB0587 Enrolled - 219 - LRB103 04172 CPF 49178 b
7836-1 defined in subparagraph (B) of paragraph (1) of this
7837-2 subsection (d-5), during the term of the contract.
7838-3 (B) The average of the market price indices, as
7839-4 defined in subparagraph (B) of paragraph (1) of this
7840-5 subsection (d-5), during the term of the contract,
7841-6 minus the baseline market price index, as defined in
7842-7 subparagraph (B) of paragraph (1) of this subsection
7843-8 (d-5).
7844-9 If the subtraction yields a negative number, then the
7845-10 Average ZEC Payment shall be zero.
7846-11 (4) Cost-effective zero emission credits procured from
7847-12 zero emission facilities shall satisfy the applicable
7848-13 definitions set forth in Section 1-10 of this Act.
7849-14 (5) The electric utility shall retire all zero
7850-15 emission credits used to comply with the requirements of
7851-16 this subsection (d-5).
7852-17 (6) Electric utilities shall be entitled to recover
7853-18 all of the costs associated with the procurement of zero
7854-19 emission credits through an automatic adjustment clause
7855-20 tariff in accordance with subsection (k) and (m) of
7856-21 Section 16-108 of the Public Utilities Act, and the
7857-22 contracts executed under this subsection (d-5) shall
7858-23 provide that the utilities' payment obligations under such
7859-24 contracts shall be reduced if an adjustment is required
7860-25 under subsection (m) of Section 16-108 of the Public
7861-26 Utilities Act.
7862-
7863-
7864-
7865-
7866-
7867- HB0587 Enrolled - 219 - LRB103 04172 CPF 49178 b
7868-
7869-
7870-HB0587 Enrolled- 220 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 220 - LRB103 04172 CPF 49178 b
7871- HB0587 Enrolled - 220 - LRB103 04172 CPF 49178 b
7872-1 (7) This subsection (d-5) shall become inoperative on
7873-2 January 1, 2028.
7874-3 (d-10) Nuclear Plant Assistance; carbon mitigation
7875-4 credits.
7876-5 (1) The General Assembly finds:
7877-6 (A) The health, welfare, and prosperity of all
7878-7 Illinois citizens require that the State of Illinois act
7879-8 to avoid and not increase carbon emissions from electric
7880-9 generation sources while continuing to ensure affordable,
7881-10 stable, and reliable electricity to all citizens.
7882-11 (B) Absent immediate action by the State to preserve
7883-12 existing carbon-free energy resources, those resources may
7884-13 retire, and the electric generation needs of Illinois'
7885-14 retail customers may be met instead by facilities that
7886-15 emit significant amounts of carbon pollution and other
7887-16 harmful air pollutants at a high social and economic cost
7888-17 until Illinois is able to develop other forms of clean
7889-18 energy.
7890-19 (C) The General Assembly finds that nuclear power
7891-20 generation is necessary for the State's transition to 100%
7892-21 clean energy, and ensuring continued operation of nuclear
7893-22 plants advances environmental and public health interests
7894-23 through providing carbon-free electricity while reducing
7895-24 the air pollution profile of the Illinois energy
7896-25 generation fleet.
7897-26 (D) The clean energy attributes of nuclear generation
7898-
7899-
7900-
7901-
7902-
7903- HB0587 Enrolled - 220 - LRB103 04172 CPF 49178 b
7904-
7905-
7906-HB0587 Enrolled- 221 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 221 - LRB103 04172 CPF 49178 b
7907- HB0587 Enrolled - 221 - LRB103 04172 CPF 49178 b
7908-1 facilities support the State in its efforts to achieve
7909-2 100% clean energy.
7910-3 (E) The State currently invests in various forms of
7911-4 clean energy, including, but not limited to, renewable
7912-5 energy, energy efficiency, and low-emission vehicles,
7913-6 among others.
7914-7 (F) The Environmental Protection Agency commissioned
7915-8 an independent audit which provided a detailed assessment
7916-9 of the financial condition of the Illinois nuclear fleet
7917-10 to evaluate its financial viability and whether the
7918-11 environmental benefits of such resources were at risk. The
7919-12 report identified the risk of losing the environmental
7920-13 benefits of several specific nuclear units. The report
7921-14 also identified that the LaSalle County Generating Station
7922-15 will continue to operate through 2026 and therefore is not
7923-16 eligible to participate in the carbon mitigation credit
7924-17 program.
7925-18 (G) Nuclear plants provide carbon-free energy, which
7926-19 helps to avoid many health-related negative impacts for
7927-20 Illinois residents.
7928-21 (H) The procurement of carbon mitigation credits
7929-22 representing the environmental benefits of carbon-free
7930-23 generation will further the State's efforts at achieving
7931-24 100% clean energy and decarbonizing the electricity sector
7932-25 in a safe, reliable, and affordable manner. Further, the
7933-26 procurement of carbon emission credits will enhance the
7934-
7935-
7936-
7937-
7938-
7939- HB0587 Enrolled - 221 - LRB103 04172 CPF 49178 b
7940-
7941-
7942-HB0587 Enrolled- 222 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 222 - LRB103 04172 CPF 49178 b
7943- HB0587 Enrolled - 222 - LRB103 04172 CPF 49178 b
7944-1 health and welfare of Illinois residents through decreased
7945-2 reliance on more highly polluting generation.
7946-3 (I) The General Assembly therefore finds it necessary
7947-4 to establish carbon mitigation credits to ensure decreased
7948-5 reliance on more carbon-intensive energy resources, for
7949-6 transitioning to a fully decarbonized electricity sector,
7950-7 and to help ensure health and welfare of the State's
7951-8 residents.
7952-9 (2) As used in this subsection:
7953-10 "Baseline costs" means costs used to establish a customer
7954-11 protection cap that have been evaluated through an independent
7955-12 audit of a carbon-free energy resource conducted by the
7956-13 Environmental Protection Agency that evaluated projected
7957-14 annual costs for operation and maintenance expenses; fully
7958-15 allocated overhead costs, which shall be allocated using the
7959-16 methodology developed by the Institute for Nuclear Power
7960-17 Operations; fuel expenditures; nonfuel capital expenditures;
7961-18 spent fuel expenditures; a return on working capital; the cost
7962-19 of operational and market risks that could be avoided by
7963-20 ceasing operation; and any other costs necessary for continued
7964-21 operations, provided that "necessary" means, for purposes of
7965-22 this definition, that the costs could reasonably be avoided
7966-23 only by ceasing operations of the carbon-free energy resource.
7967-24 "Carbon mitigation credit" means a tradable credit that
7968-25 represents the carbon emission reduction attributes of one
7969-26 megawatt-hour of energy produced from a carbon-free energy
7970-
7971-
7972-
7973-
7974-
7975- HB0587 Enrolled - 222 - LRB103 04172 CPF 49178 b
7976-
7977-
7978-HB0587 Enrolled- 223 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 223 - LRB103 04172 CPF 49178 b
7979- HB0587 Enrolled - 223 - LRB103 04172 CPF 49178 b
7980-1 resource.
7981-2 "Carbon-free energy resource" means a generation facility
7982-3 that: (1) is fueled by nuclear power; and (2) is
7983-4 interconnected to PJM Interconnection, LLC.
7984-5 (3) Procurement.
7985-6 (A) Beginning with the delivery year commencing on
7986-7 June 1, 2022, the Agency shall, for electric utilities
7987-8 serving at least 3,000,000 retail customers in the State,
7988-9 seek to procure contracts for no more than approximately
7989-10 54,500,000 cost-effective carbon mitigation credits from
7990-11 carbon-free energy resources because such credits are
7991-12 necessary to support current levels of carbon-free energy
7992-13 generation and ensure the State meets its carbon dioxide
7993-14 emissions reduction goals. The Agency shall not make a
7994-15 partial award of a contract for carbon mitigation credits
7995-16 covering a fractional amount of a carbon-free energy
7996-17 resource's projected output.
7997-18 (B) Each carbon-free energy resource that intends to
7998-19 participate in a procurement shall be required to submit
7999-20 to the Agency the following information for the resource
8000-21 on or before the date established by the Agency:
8001-22 (i) the in-service date and remaining useful life
8002-23 of the carbon-free energy resource;
8003-24 (ii) the amount of power generated annually for
8004-25 each of the past 10 years, which shall be used to
8005-26 determine the capability of each facility;
8006-
8007-
8008-
8009-
8010-
8011- HB0587 Enrolled - 223 - LRB103 04172 CPF 49178 b
8012-
8013-
8014-HB0587 Enrolled- 224 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 224 - LRB103 04172 CPF 49178 b
8015- HB0587 Enrolled - 224 - LRB103 04172 CPF 49178 b
8016-1 (iii) a commitment to be reflected in any contract
8017-2 entered into pursuant to this subsection (d-10) to
8018-3 continue operating the carbon-free energy resource at
8019-4 a capacity factor of at least 88% annually on average
8020-5 for the duration of the contract or contracts executed
8021-6 under the procurement held under this subsection
8022-7 (d-10), except in an instance described in
8023-8 subparagraph (E) of paragraph (1) of subsection (d-5)
8024-9 of this Section or made impracticable as a result of
8025-10 compliance with law or regulation;
8026-11 (iv) financial need and the risk of loss of the
8027-12 environmental benefits of such resource, which shall
8028-13 include the following information:
8029-14 (I) the carbon-free energy resource's cost
8030-15 projections, expressed on a per megawatt-hour
8031-16 basis, over the next 5 delivery years, which shall
8032-17 include the following: operation and maintenance
8033-18 expenses; fully allocated overhead costs, which
8034-19 shall be allocated using the methodology developed
8035-20 by the Institute for Nuclear Power Operations;
8036-21 fuel expenditures; nonfuel capital expenditures;
8037-22 spent fuel expenditures; a return on working
8038-23 capital; the cost of operational and market risks
8039-24 that could be avoided by ceasing operation; and
8040-25 any other costs necessary for continued
8041-26 operations, provided that "necessary" means, for
8042-
8043-
8044-
8045-
8046-
8047- HB0587 Enrolled - 224 - LRB103 04172 CPF 49178 b
8048-
8049-
8050-HB0587 Enrolled- 225 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 225 - LRB103 04172 CPF 49178 b
8051- HB0587 Enrolled - 225 - LRB103 04172 CPF 49178 b
8052-1 purposes of this subitem (I), that the costs could
8053-2 reasonably be avoided only by ceasing operations
8054-3 of the carbon-free energy resource; and
8055-4 (II) the carbon-free energy resource's revenue
8056-5 projections, including energy, capacity, ancillary
8057-6 services, any other direct State support, known or
8058-7 anticipated federal attribute credits, known or
8059-8 anticipated tax credits, and any other direct
8060-9 federal support.
8061-10 The information described in this subparagraph (B) may
8062-11 be submitted on a confidential basis and shall be treated
8063-12 and maintained by the Agency, the procurement
8064-13 administrator, and the Commission as confidential and
8065-14 proprietary and exempt from disclosure under subparagraphs
8066-15 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
8067-16 Information Act. The Office of the Attorney General shall
8068-17 have access to, and maintain the confidentiality of, such
8069-18 information pursuant to Section 6.5 of the Attorney
8070-19 General Act.
8071-20 (C) The Agency shall solicit bids for the contracts
8072-21 described in this subsection (d-10) from carbon-free
8073-22 energy resources that have satisfied the requirements of
8074-23 subparagraph (B) of this paragraph (3). The contracts
8075-24 procured pursuant to a procurement event shall reflect,
8076-25 and be subject to, the following terms, requirements, and
8077-26 limitations:
8078-
8079-
8080-
8081-
8082-
8083- HB0587 Enrolled - 225 - LRB103 04172 CPF 49178 b
8084-
8085-
8086-HB0587 Enrolled- 226 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 226 - LRB103 04172 CPF 49178 b
8087- HB0587 Enrolled - 226 - LRB103 04172 CPF 49178 b
8088-1 (i) Contracts are for delivery of carbon
8089-2 mitigation credits, and are not energy or capacity
8090-3 sales contracts requiring physical delivery. Pursuant
8091-4 to item (iii), contract payments shall fully deduct
8092-5 the value of any monetized federal production tax
8093-6 credits, credits issued pursuant to a federal clean
8094-7 energy standard, and other federal credits if
8095-8 applicable.
8096-9 (ii) Contracts for carbon mitigation credits shall
8097-10 commence with the delivery year beginning on June 1,
8098-11 2022 and shall be for a term of 5 delivery years
8099-12 concluding on May 31, 2027.
8100-13 (iii) The price per carbon mitigation credit to be
8101-14 paid under a contract for a given delivery year shall
8102-15 be equal to an accepted bid price less the sum of:
8103-16 (I) one of the following energy price indices,
8104-17 selected by the bidder at the time of the bid for
8105-18 the term of the contract:
8106-19 (aa) the weighted-average hourly day-ahead
8107-20 price for the applicable delivery year at the
8108-21 busbar of all resources procured pursuant to
8109-22 this subsection (d-10), weighted by actual
8110-23 production from the resources; or
8111-24 (bb) the projected energy price for the
8112-25 PJM Interconnection, LLC Northern Illinois Hub
8113-26 for the applicable delivery year determined
8114-
8115-
8116-
8117-
8118-
8119- HB0587 Enrolled - 226 - LRB103 04172 CPF 49178 b
8120-
8121-
8122-HB0587 Enrolled- 227 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 227 - LRB103 04172 CPF 49178 b
8123- HB0587 Enrolled - 227 - LRB103 04172 CPF 49178 b
8124-1 according to subitem (aa) of item (iii) of
8125-2 subparagraph (B) of paragraph (1) of
8126-3 subsection (d-5).
8127-4 (II) the Base Residual Auction Capacity Price
8128-5 for the ComEd zone as determined by PJM
8129-6 Interconnection, LLC, divided by 24 hours per day,
8130-7 for the applicable delivery year for the first 3
8131-8 delivery years, and then any subsequent delivery
8132-9 years unless the PJM Interconnection, LLC applies
8133-10 the Minimum Offer Price Rule to participating
8134-11 carbon-free energy resources because they supply
8135-12 carbon mitigation credits pursuant to this Section
8136-13 at which time, upon notice by the carbon-free
8137-14 energy resource to the Commission and subject to
8138-15 the Commission's confirmation, the value under
8139-16 this subitem shall be zero, as further described
8140-17 in the carbon mitigation credit procurement plan;
8141-18 and
8142-19 (III) any value of monetized federal tax
8143-20 credits, direct payments, or similar subsidy
8144-21 provided to the carbon-free energy resource from
8145-22 any unit of government that is not already
8146-23 reflected in energy prices.
8147-24 If the price-per-megawatt-hour calculation
8148-25 performed under item (iii) of this subparagraph (C)
8149-26 for a given delivery year results in a net positive
8150-
8151-
8152-
8153-
8154-
8155- HB0587 Enrolled - 227 - LRB103 04172 CPF 49178 b
8156-
8157-
8158-HB0587 Enrolled- 228 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 228 - LRB103 04172 CPF 49178 b
8159- HB0587 Enrolled - 228 - LRB103 04172 CPF 49178 b
8160-1 value, then the electric utility counterparty to the
8161-2 contract shall multiply such net value by the
8162-3 applicable contract quantity and remit the amount to
8163-4 the supplier.
8164-5 To protect retail customers from retail rate
8165-6 impacts that may arise upon the initiation of carbon
8166-7 policy changes, if the price-per-megawatt-hour
8167-8 calculation performed under item (iii) of this
8168-9 subparagraph (C) for a given delivery year results in
8169-10 a net negative value, then the supplier counterparty
8170-11 to the contract shall multiply such net value by the
8171-12 applicable contract quantity and remit such amount to
8172-13 the electric utility counterparty. The electric
8173-14 utility shall reflect such amounts remitted by
8174-15 suppliers as a credit on its retail customer bills as
8175-16 soon as practicable.
8176-17 (iv) To ensure that retail customers in Northern
8177-18 Illinois do not pay more for carbon mitigation credits
8178-19 than the value such credits provide, and
8179-20 notwithstanding the provisions of this subsection
8180-21 (d-10), the Agency shall not accept bids for contracts
8181-22 that exceed a customer protection cap equal to the
8182-23 baseline costs of carbon-free energy resources.
8183-24 The baseline costs for the applicable year shall
8184-25 be the following:
8185-26 (I) For the delivery year beginning June 1,
8186-
8187-
8188-
8189-
8190-
8191- HB0587 Enrolled - 228 - LRB103 04172 CPF 49178 b
8192-
8193-
8194-HB0587 Enrolled- 229 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 229 - LRB103 04172 CPF 49178 b
8195- HB0587 Enrolled - 229 - LRB103 04172 CPF 49178 b
8196-1 2022, the baseline costs shall be an amount equal
8197-2 to $30.30 per megawatt-hour.
8198-3 (II) For the delivery year beginning June 1,
8199-4 2023, the baseline costs shall be an amount equal
8200-5 to $32.50 per megawatt-hour.
8201-6 (III) For the delivery year beginning June 1,
8202-7 2024, the baseline costs shall be an amount equal
8203-8 to $33.43 per megawatt-hour.
8204-9 (IV) For the delivery year beginning June 1,
8205-10 2025, the baseline costs shall be an amount equal
8206-11 to $33.50 per megawatt-hour.
8207-12 (V) For the delivery year beginning June 1,
8208-13 2026, the baseline costs shall be an amount equal
8209-14 to $34.50 per megawatt-hour.
8210-15 An Environmental Protection Agency consultant
8211-16 forecast, included in a report issued April 14, 2021,
8212-17 projects that a carbon-free energy resource has the
8213-18 opportunity to earn on average approximately $30.28
8214-19 per megawatt-hour, for the sale of energy and capacity
8215-20 during the time period between 2022 and 2027.
8216-21 Therefore, the sale of carbon mitigation credits
8217-22 provides the opportunity to receive an additional
8218-23 amount per megawatt-hour in addition to the projected
8219-24 prices for energy and capacity.
8220-25 Although actual energy and capacity prices may
8221-26 vary from year-to-year, the General Assembly finds
8222-
8223-
8224-
8225-
8226-
8227- HB0587 Enrolled - 229 - LRB103 04172 CPF 49178 b
8228-
8229-
8230-HB0587 Enrolled- 230 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 230 - LRB103 04172 CPF 49178 b
8231- HB0587 Enrolled - 230 - LRB103 04172 CPF 49178 b
8232-1 that this customer protection cap will help ensure
8233-2 that the cost of carbon mitigation credits will be
8234-3 less than its value, based upon the social cost of
8235-4 carbon identified in the Technical Support Document
8236-5 issued in February 2021 by the U.S. Interagency
8237-6 Working Group on Social Cost of Greenhouse Gases and
8238-7 the PJM Interconnection, LLC carbon dioxide marginal
8239-8 emission rate for 2020, and that a carbon-free energy
8240-9 resource receiving payment for carbon mitigation
8241-10 credits receives no more than necessary to keep those
8242-11 units in operation.
8243-12 (D) No later than 7 days after the effective date of
8244-13 this amendatory Act of the 102nd General Assembly, the
8245-14 Agency shall publish its proposed carbon mitigation credit
8246-15 procurement plan. The Plan shall provide that winning bids
8247-16 shall be selected by taking into consideration which
8248-17 resources best match public interest criteria that
8249-18 include, but are not limited to, minimizing carbon dioxide
8250-19 emissions that result from electricity consumed in
8251-20 Illinois and minimizing sulfur dioxide, nitrogen oxide,
8252-21 and particulate matter emissions that adversely affect the
8253-22 citizens of this State. The selection of winning bids
8254-23 shall also take into account the incremental environmental
8255-24 benefits resulting from the procurement or procurements,
8256-25 such as any existing environmental benefits that are
8257-26 preserved by a procurement held under this subsection
8258-
8259-
8260-
8261-
8262-
8263- HB0587 Enrolled - 230 - LRB103 04172 CPF 49178 b
8264-
8265-
8266-HB0587 Enrolled- 231 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 231 - LRB103 04172 CPF 49178 b
8267- HB0587 Enrolled - 231 - LRB103 04172 CPF 49178 b
8268-1 (d-10) and would cease to exist if the procurement were
8269-2 not held, including the preservation of carbon-free energy
8270-3 resources. For those bidders having the same public
8271-4 interest criteria score, the relative ranking of such
8272-5 bidders shall be determined by price. The Plan shall
8273-6 describe in detail how each public interest factor shall
8274-7 be considered and weighted in the bid selection process to
8275-8 ensure that the public interest criteria are applied to
8276-9 the procurement. The Plan shall, to the extent practical
8277-10 and permissible by federal law, ensure that successful
8278-11 bidders make commercially reasonable efforts to apply for
8279-12 federal tax credits, direct payments, or similar subsidy
8280-13 programs that support carbon-free generation and for which
8281-14 the successful bidder is eligible. Upon publishing of the
8282-15 carbon mitigation credit procurement plan, copies of the
8283-16 plan shall be posted and made publicly available on the
8284-17 Agency's website. All interested parties shall have 7 days
8285-18 following the date of posting to provide comment to the
8286-19 Agency on the plan. All comments shall be posted to the
8287-20 Agency's website. Following the end of the comment period,
8288-21 but no more than 19 days later than the effective date of
8289-22 this amendatory Act of the 102nd General Assembly, the
8290-23 Agency shall revise the plan as necessary based on the
8291-24 comments received and file its carbon mitigation credit
8292-25 procurement plan with the Commission.
8293-26 (E) If the Commission determines that the plan is
8294-
8295-
8296-
8297-
8298-
8299- HB0587 Enrolled - 231 - LRB103 04172 CPF 49178 b
8300-
8301-
8302-HB0587 Enrolled- 232 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 232 - LRB103 04172 CPF 49178 b
8303- HB0587 Enrolled - 232 - LRB103 04172 CPF 49178 b
8304-1 likely to result in the procurement of cost-effective
8305-2 carbon mitigation credits, then the Commission shall,
8306-3 after notice and hearing and opportunity for comment, but
8307-4 no later than 42 days after the Agency filed the plan,
8308-5 approve the plan or approve it with modification. For
8309-6 purposes of this subsection (d-10), "cost-effective" means
8310-7 carbon mitigation credits that are procured from
8311-8 carbon-free energy resources at prices that are within the
8312-9 limits specified in this paragraph (3). As part of the
8313-10 Commission's review and acceptance or rejection of the
8314-11 procurement results, the Commission shall, in its public
8315-12 notice of successful bidders:
8316-13 (i) identify how the selected carbon-free energy
8317-14 resources satisfy the public interest criteria
8318-15 described in this paragraph (3) of minimizing carbon
8319-16 dioxide emissions that result from electricity
8320-17 consumed in Illinois and minimizing sulfur dioxide,
8321-18 nitrogen oxide, and particulate matter emissions that
8322-19 adversely affect the citizens of this State;
8323-20 (ii) specifically address how the selection of
8324-21 carbon-free energy resources takes into account the
8325-22 incremental environmental benefits resulting from the
8326-23 procurement, including any existing environmental
8327-24 benefits that are preserved by the procurements held
8328-25 under this amendatory Act of the 102nd General
8329-26 Assembly and would have ceased to exist if the
8330-
8331-
8332-
8333-
8334-
8335- HB0587 Enrolled - 232 - LRB103 04172 CPF 49178 b
8336-
8337-
8338-HB0587 Enrolled- 233 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 233 - LRB103 04172 CPF 49178 b
8339- HB0587 Enrolled - 233 - LRB103 04172 CPF 49178 b
8340-1 procurements had not been held, such as the
8341-2 preservation of carbon-free energy resources;
8342-3 (iii) quantify the environmental benefit of
8343-4 preserving the carbon-free energy resources procured
8344-5 pursuant to this subsection (d-10), including the
8345-6 following:
8346-7 (I) an assessment value of avoided greenhouse
8347-8 gas emissions measured as the product of the
8348-9 carbon-free energy resources' output over the
8349-10 contract term, using generally accepted
8350-11 methodologies for the valuation of avoided
8351-12 emissions; and
8352-13 (II) an assessment of costs of replacement
8353-14 with other carbon-free energy resources and
8354-15 renewable energy resources, including wind and
8355-16 photovoltaic generation, based upon an assessment
8356-17 of the prices paid for renewable energy credits
8357-18 through programs and procurements conducted
8358-19 pursuant to subsection (c) of Section 1-75 of this
8359-20 Act, and the additional storage necessary to
8360-21 produce the same or similar capability of matching
8361-22 customer usage patterns.
8362-23 (F) The procurements described in this paragraph (3),
8363-24 including, but not limited to, the execution of all
8364-25 contracts procured, shall be completed no later than
8365-26 December 3, 2021. The procurement and plan approval
8366-
8367-
8368-
8369-
8370-
8371- HB0587 Enrolled - 233 - LRB103 04172 CPF 49178 b
8372-
8373-
8374-HB0587 Enrolled- 234 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 234 - LRB103 04172 CPF 49178 b
8375- HB0587 Enrolled - 234 - LRB103 04172 CPF 49178 b
8376-1 processes required by this paragraph (3) shall be
8377-2 conducted in conjunction with the procurement and plan
8378-3 approval processes required by Section 16-111.5 of the
8379-4 Public Utilities Act, to the extent practicable. However,
8380-5 the Agency and Commission may, as appropriate, modify the
8381-6 various dates and timelines under this subparagraph and
8382-7 subparagraphs (D) and (E) of this paragraph (3) to meet
8383-8 the December 3, 2021 contract execution deadline.
8384-9 Following the completion of such procurements, and
8385-10 consistent with this paragraph (3), the Agency shall
8386-11 calculate the payments to be made under each contract in a
8387-12 timely fashion.
8388-13 (F-1) Costs incurred by the electric utility pursuant
8389-14 to a contract authorized by this subsection (d-10) shall
8390-15 be deemed prudently incurred and reasonable in amount, and
8391-16 the electric utility shall be entitled to full cost
8392-17 recovery pursuant to a tariff or tariffs filed with the
8393-18 Commission.
8394-19 (G) The counterparty electric utility shall retire all
8395-20 carbon mitigation credits used to comply with the
8396-21 requirements of this subsection (d-10).
8397-22 (H) If a carbon-free energy resource is sold to
8398-23 another owner, the rights, obligations, and commitments
8399-24 under this subsection (d-10) shall continue to the
8400-25 subsequent owner.
8401-26 (I) This subsection (d-10) shall become inoperative on
8402-
8403-
8404-
8405-
8406-
8407- HB0587 Enrolled - 234 - LRB103 04172 CPF 49178 b
8408-
8409-
8410-HB0587 Enrolled- 235 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 235 - LRB103 04172 CPF 49178 b
8411- HB0587 Enrolled - 235 - LRB103 04172 CPF 49178 b
8412-1 January 1, 2028.
8413-2 (e) The draft procurement plans are subject to public
8414-3 comment, as required by Section 16-111.5 of the Public
8415-4 Utilities Act.
8416-5 (f) The Agency shall submit the final procurement plan to
8417-6 the Commission. The Agency shall revise a procurement plan if
8418-7 the Commission determines that it does not meet the standards
8419-8 set forth in Section 16-111.5 of the Public Utilities Act.
8420-9 (g) The Agency shall assess fees to each affected utility
8421-10 to recover the costs incurred in preparation of the annual
8422-11 procurement plan for the utility.
8423-12 (h) The Agency shall assess fees to each bidder to recover
8424-13 the costs incurred in connection with a competitive
8425-14 procurement process.
8426-15 (i) A renewable energy credit, carbon emission credit,
8427-16 zero emission credit, or carbon mitigation credit can only be
8428-17 used once to comply with a single portfolio or other standard
8429-18 as set forth in subsection (c), subsection (d), or subsection
8430-19 (d-5) of this Section, respectively. A renewable energy
8431-20 credit, carbon emission credit, zero emission credit, or
8432-21 carbon mitigation credit cannot be used to satisfy the
8433-22 requirements of more than one standard. If more than one type
8434-23 of credit is issued for the same megawatt hour of energy, only
8435-24 one credit can be used to satisfy the requirements of a single
8436-25 standard. After such use, the credit must be retired together
8437-26 with any other credits issued for the same megawatt hour of
8438-
8439-
8440-
8441-
8442-
8443- HB0587 Enrolled - 235 - LRB103 04172 CPF 49178 b
8444-
8445-
8446-HB0587 Enrolled- 236 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 236 - LRB103 04172 CPF 49178 b
8447- HB0587 Enrolled - 236 - LRB103 04172 CPF 49178 b
8448-1 energy.
8449-2 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
8450-3 103-580, eff. 12-8-23.)
8451-4 Section 65. The Public Utilities Act is amended by
8452-5 changing Sections 8-406, 8-406.1, 16-107.6, 16-108, 16-111.5,
8453-6 and 16-135 as follows:
8454-7 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
8455-8 Sec. 8-406. Certificate of public convenience and
8456-9 necessity.
8457-10 (a) No public utility not owning any city or village
8458-11 franchise nor engaged in performing any public service or in
8459-12 furnishing any product or commodity within this State as of
8460-13 July 1, 1921 and not possessing a certificate of public
8461-14 convenience and necessity from the Illinois Commerce
8462-15 Commission, the State Public Utilities Commission, or the
8463-16 Public Utilities Commission, at the time Public Act 84-617
8464-17 goes into effect (January 1, 1986), shall transact any
8465-18 business in this State until it shall have obtained a
8466-19 certificate from the Commission that public convenience and
8467-20 necessity require the transaction of such business. A
8468-21 certificate of public convenience and necessity requiring the
8469-22 transaction of public utility business in any area of this
8470-23 State shall include authorization to the public utility
8471-24 receiving the certificate of public convenience and necessity
8472-
8473-
8474-
8475-
8476-
8477- HB0587 Enrolled - 236 - LRB103 04172 CPF 49178 b
8478-
8479-
8480-HB0587 Enrolled- 237 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 237 - LRB103 04172 CPF 49178 b
8481- HB0587 Enrolled - 237 - LRB103 04172 CPF 49178 b
8482-1 to construct such plant, equipment, property, or facility as
8483-2 is provided for under the terms and conditions of its tariff
8484-3 and as is necessary to provide utility service and carry out
8485-4 the transaction of public utility business by the public
8486-5 utility in the designated area.
8487-6 (b) No public utility shall begin the construction of any
8488-7 new plant, equipment, property, or facility which is not in
8489-8 substitution of any existing plant, equipment, property, or
8490-9 facility, or any extension or alteration thereof or in
8491-10 addition thereto, unless and until it shall have obtained from
8492-11 the Commission a certificate that public convenience and
8493-12 necessity require such construction. Whenever after a hearing
8494-13 the Commission determines that any new construction or the
8495-14 transaction of any business by a public utility will promote
8496-15 the public convenience and is necessary thereto, it shall have
8497-16 the power to issue certificates of public convenience and
8498-17 necessity. The Commission shall determine that proposed
8499-18 construction will promote the public convenience and necessity
8500-19 only if the utility demonstrates: (1) that the proposed
8501-20 construction is necessary to provide adequate, reliable, and
8502-21 efficient service to its customers and is the least-cost means
8503-22 of satisfying the service needs of its customers or that the
8504-23 proposed construction will promote the development of an
8505-24 effectively competitive electricity market that operates
8506-25 efficiently, is equitable to all customers, and is the least
8507-26 cost means of satisfying those objectives; (2) that the
8508-
8509-
8510-
8511-
8512-
8513- HB0587 Enrolled - 237 - LRB103 04172 CPF 49178 b
8514-
8515-
8516-HB0587 Enrolled- 238 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 238 - LRB103 04172 CPF 49178 b
8517- HB0587 Enrolled - 238 - LRB103 04172 CPF 49178 b
8518-1 utility is capable of efficiently managing and supervising the
8519-2 construction process and has taken sufficient action to ensure
8520-3 adequate and efficient construction and supervision thereof;
8521-4 and (3) that the utility is capable of financing the proposed
8522-5 construction without significant adverse financial
8523-6 consequences for the utility or its customers.
8524-7 (b-5) As used in this subsection (b-5):
8525-8 "Qualifying direct current applicant" means an entity that
8526-9 seeks to provide direct current bulk transmission service for
8527-10 the purpose of transporting electric energy in interstate
8528-11 commerce.
8529-12 "Qualifying direct current project" means a high voltage
8530-13 direct current electric service line that crosses at least one
8531-14 Illinois border, the Illinois portion of which is physically
8532-15 located within the region of the Midcontinent Independent
8533-16 System Operator, Inc., or its successor organization, and runs
8534-17 through the counties of Pike, Scott, Greene, Macoupin,
8535-18 Montgomery, Christian, Shelby, Cumberland, and Clark, is
8536-19 capable of transmitting electricity at voltages of 345
8537-20 kilovolts or above, and may also include associated
8538-21 interconnected alternating current interconnection facilities
8539-22 in this State that are part of the proposed project and
8540-23 reasonably necessary to connect the project with other
8541-24 portions of the grid.
8542-25 Notwithstanding any other provision of this Act, a
8543-26 qualifying direct current applicant that does not own,
8544-
8545-
8546-
8547-
8548-
8549- HB0587 Enrolled - 238 - LRB103 04172 CPF 49178 b
8550-
8551-
8552-HB0587 Enrolled- 239 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 239 - LRB103 04172 CPF 49178 b
8553- HB0587 Enrolled - 239 - LRB103 04172 CPF 49178 b
8554-1 control, operate, or manage, within this State, any plant,
8555-2 equipment, or property used or to be used for the transmission
8556-3 of electricity at the time of its application or of the
8557-4 Commission's order may file an application on or before
8558-5 December 31, 2023 with the Commission pursuant to this Section
8559-6 or Section 8-406.1 for, and the Commission may grant, a
8560-7 certificate of public convenience and necessity to construct,
8561-8 operate, and maintain a qualifying direct current project. The
8562-9 qualifying direct current applicant may also include in the
8563-10 application requests for authority under Section 8-503. The
8564-11 Commission shall grant the application for a certificate of
8565-12 public convenience and necessity and requests for authority
8566-13 under Section 8-503 if it finds that the qualifying direct
8567-14 current applicant and the proposed qualifying direct current
8568-15 project satisfy the requirements of this subsection and
8569-16 otherwise satisfy the criteria of this Section or Section
8570-17 8-406.1 and the criteria of Section 8-503, as applicable to
8571-18 the application and to the extent such criteria are not
8572-19 superseded by the provisions of this subsection. The
8573-20 Commission's order on the application for the certificate of
8574-21 public convenience and necessity shall also include the
8575-22 Commission's findings and determinations on the request or
8576-23 requests for authority pursuant to Section 8-503. Prior to
8577-24 filing its application under either this Section or Section
8578-25 8-406.1, the qualifying direct current applicant shall conduct
8579-26 3 public meetings in accordance with subsection (h) of this
8580-
8581-
8582-
8583-
8584-
8585- HB0587 Enrolled - 239 - LRB103 04172 CPF 49178 b
8586-
8587-
8588-HB0587 Enrolled- 240 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 240 - LRB103 04172 CPF 49178 b
8589- HB0587 Enrolled - 240 - LRB103 04172 CPF 49178 b
8590-1 Section. If the qualifying direct current applicant
8591-2 demonstrates in its application that the proposed qualifying
8592-3 direct current project is designed to deliver electricity to a
8593-4 point or points on the electric transmission grid in either or
8594-5 both the PJM Interconnection, LLC or the Midcontinent
8595-6 Independent System Operator, Inc., or their respective
8596-7 successor organizations, the proposed qualifying direct
8597-8 current project shall be deemed to be, and the Commission
8598-9 shall find it to be, for public use. If the qualifying direct
8599-10 current applicant further demonstrates in its application that
8600-11 the proposed transmission project has a capacity of 1,000
8601-12 megawatts or larger and a voltage level of 345 kilovolts or
8602-13 greater, the proposed transmission project shall be deemed to
8603-14 satisfy, and the Commission shall find that it satisfies, the
8604-15 criteria stated in item (1) of subsection (b) of this Section
8605-16 or in paragraph (1) of subsection (f) of Section 8-406.1, as
8606-17 applicable to the application, without the taking of
8607-18 additional evidence on these criteria. Prior to the transfer
8608-19 of functional control of any transmission assets to a regional
8609-20 transmission organization, a qualifying direct current
8610-21 applicant shall request Commission approval to join a regional
8611-22 transmission organization in an application filed pursuant to
8612-23 this subsection (b-5) or separately pursuant to Section 7-102
8613-24 of this Act. The Commission may grant permission to a
8614-25 qualifying direct current applicant to join a regional
8615-26 transmission organization if it finds that the membership, and
8616-
8617-
8618-
8619-
8620-
8621- HB0587 Enrolled - 240 - LRB103 04172 CPF 49178 b
8622-
8623-
8624-HB0587 Enrolled- 241 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 241 - LRB103 04172 CPF 49178 b
8625- HB0587 Enrolled - 241 - LRB103 04172 CPF 49178 b
8626-1 associated transfer of functional control of transmission
8627-2 assets, benefits Illinois customers in light of the attendant
8628-3 costs and is otherwise in the public interest. Nothing in this
8629-4 subsection (b-5) requires a qualifying direct current
8630-5 applicant to join a regional transmission organization.
8631-6 Nothing in this subsection (b-5) requires the owner or
8632-7 operator of a high voltage direct current transmission line
8633-8 that is not a qualifying direct current project to obtain a
8634-9 certificate of public convenience and necessity to the extent
8635-10 it is not otherwise required by this Section 8-406 or any other
8636-11 provision of this Act.
8637-12 (c) As used in this subsection (c):
8638-13 "Decommissioning" has the meaning given to that term in
8639-14 subsection (a) of Section 8-508.1.
8640-15 "Nuclear power reactor" has the meaning given to that term
8641-16 in Section 8 of the Nuclear Safety Law of 2004.
8642-17 After the effective date of this amendatory Act of the
8643-18 103rd General Assembly, no construction shall commence on any
8644-19 new nuclear power reactor with a nameplate capacity of more
8645-20 than 300 megawatts of electricity to be located within this
8646-21 State, and no certificate of public convenience and necessity
8647-22 or other authorization shall be issued therefor by the
8648-23 Commission, until the Illinois Emergency Management Agency and
8649-24 Office of Homeland Security, in consultation with the Illinois
8650-25 Environmental Protection Agency and the Illinois Department of
8651-26 Natural Resources, finds that the United States Government,
8652-
8653-
8654-
8655-
8656-
8657- HB0587 Enrolled - 241 - LRB103 04172 CPF 49178 b
8658-
8659-
8660-HB0587 Enrolled- 242 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 242 - LRB103 04172 CPF 49178 b
8661- HB0587 Enrolled - 242 - LRB103 04172 CPF 49178 b
8662-1 through its authorized agency, has identified and approved a
8663-2 demonstrable technology or means for the disposal of high
8664-3 level nuclear waste, or until such construction has been
8665-4 specifically approved by a statute enacted by the General
8666-5 Assembly. Beginning January 1, 2026, construction may commence
8667-6 on a new nuclear power reactor with a nameplate capacity of 300
8668-7 megawatts of electricity or less within this State if the
8669-8 entity constructing the new nuclear power reactor has obtained
8670-9 all permits, licenses, permissions, or approvals governing the
8671-10 construction, operation, and funding of decommissioning of
8672-11 such nuclear power reactors required by: (1) this Act; (2) any
8673-12 rules adopted by the Illinois Emergency Management Agency and
8674-13 Office of Homeland Security under the authority of this Act;
8675-14 (3) any applicable federal statutes, including, but not
8676-15 limited to, the Atomic Energy Act of 1954, the Energy
8677-16 Reorganization Act of 1974, the Low-Level Radioactive Waste
8678-17 Policy Amendments Act of 1985, and the Energy Policy Act of
8679-18 1992; (4) any regulations promulgated or enforced by the U.S.
8680-19 Nuclear Regulatory Commission, including, but not limited to,
8681-20 those codified at Title X, Parts 20, 30, 40, 50, 70, and 72 of
8682-21 the Code of Federal Regulations, as from time to time amended;
8683-22 and (5) any other federal or State statute, rule, or
8684-23 regulation governing the permitting, licensing, operation, or
8685-24 decommissioning of such nuclear power reactors. None of the
8686-25 rules developed by the Illinois Emergency Management Agency
8687-26 and Office of Homeland Security or any other State agency,
8688-
8689-
8690-
8691-
8692-
8693- HB0587 Enrolled - 242 - LRB103 04172 CPF 49178 b
8694-
8695-
8696-HB0587 Enrolled- 243 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 243 - LRB103 04172 CPF 49178 b
8697- HB0587 Enrolled - 243 - LRB103 04172 CPF 49178 b
8698-1 board, or commission pursuant to this Act shall be construed
8699-2 to supersede the authority of the U.S. Nuclear Regulatory
8700-3 Commission. The changes made by this amendatory Act of the
8701-4 103rd General Assembly shall not apply to the uprate, renewal,
8702-5 or subsequent renewal of any license for an existing nuclear
8703-6 power reactor that began operation prior to the effective date
8704-7 of this amendatory Act of the 103rd General Assembly.
8705-8 None of the changes made in this amendatory Act of the
8706-9 103rd General Assembly are intended to authorize the
8707-10 construction of nuclear power plants powered by nuclear power
8708-11 reactors that are not either: (1) small modular nuclear
8709-12 reactors; or (2) nuclear power reactors licensed by the U.S.
8710-13 Nuclear Regulatory Commission to operate in this State prior
8711-14 to the effective date of this amendatory Act of the 103rd
8712-15 General Assembly.
8713-16 (d) In making its determination under subsection (b) of
8714-17 this Section, the Commission shall attach primary weight to
8715-18 the cost or cost savings to the customers of the utility. The
8716-19 Commission may consider any or all factors which will or may
8717-20 affect such cost or cost savings, including the public
8718-21 utility's engineering judgment regarding the materials used
8719-22 for construction.
8720-23 (e) The Commission may issue a temporary certificate which
8721-24 shall remain in force not to exceed one year in cases of
8722-25 emergency, to assure maintenance of adequate service or to
8723-26 serve particular customers, without notice or hearing, pending
8724-
8725-
8726-
8727-
8728-
8729- HB0587 Enrolled - 243 - LRB103 04172 CPF 49178 b
8730-
8731-
8732-HB0587 Enrolled- 244 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 244 - LRB103 04172 CPF 49178 b
8733- HB0587 Enrolled - 244 - LRB103 04172 CPF 49178 b
8734-1 the determination of an application for a certificate, and may
8735-2 by regulation exempt from the requirements of this Section
8736-3 temporary acts or operations for which the issuance of a
8737-4 certificate will not be required in the public interest.
8738-5 A public utility shall not be required to obtain but may
8739-6 apply for and obtain a certificate of public convenience and
8740-7 necessity pursuant to this Section with respect to any matter
8741-8 as to which it has received the authorization or order of the
8742-9 Commission under the Electric Supplier Act, and any such
8743-10 authorization or order granted a public utility by the
8744-11 Commission under that Act shall as between public utilities be
8745-12 deemed to be, and shall have except as provided in that Act the
8746-13 same force and effect as, a certificate of public convenience
8747-14 and necessity issued pursuant to this Section.
8748-15 No electric cooperative shall be made or shall become a
8749-16 party to or shall be entitled to be heard or to otherwise
8750-17 appear or participate in any proceeding initiated under this
8751-18 Section for authorization of power plant construction and as
8752-19 to matters as to which a remedy is available under the Electric
8753-20 Supplier Act.
8754-21 (f) Such certificates may be altered or modified by the
8755-22 Commission, upon its own motion or upon application by the
8756-23 person or corporation affected. Unless exercised within a
8757-24 period of 2 years from the grant thereof, authority conferred
8758-25 by a certificate of convenience and necessity issued by the
8759-26 Commission shall be null and void.
8760-
8761-
8762-
8763-
8764-
8765- HB0587 Enrolled - 244 - LRB103 04172 CPF 49178 b
8766-
8767-
8768-HB0587 Enrolled- 245 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 245 - LRB103 04172 CPF 49178 b
8769- HB0587 Enrolled - 245 - LRB103 04172 CPF 49178 b
8770-1 No certificate of public convenience and necessity shall
8771-2 be construed as granting a monopoly or an exclusive privilege,
8772-3 immunity or franchise.
8773-4 (g) A public utility that undertakes any of the actions
8774-5 described in items (1) through (3) of this subsection (g) or
8775-6 that has obtained approval pursuant to Section 8-406.1 of this
8776-7 Act shall not be required to comply with the requirements of
8777-8 this Section to the extent such requirements otherwise would
8778-9 apply. For purposes of this Section and Section 8-406.1 of
8779-10 this Act, "high voltage electric service line" means an
8780-11 electric line having a design voltage of 100,000 or more. For
8781-12 purposes of this subsection (g), a public utility may do any of
8782-13 the following:
8783-14 (1) replace or upgrade any existing high voltage
8784-15 electric service line and related facilities,
8785-16 notwithstanding its length;
8786-17 (2) relocate any existing high voltage electric
8787-18 service line and related facilities, notwithstanding its
8788-19 length, to accommodate construction or expansion of a
8789-20 roadway or other transportation infrastructure; or
8790-21 (3) construct a high voltage electric service line and
8791-22 related facilities that is constructed solely to serve a
8792-23 single customer's premises or to provide a generator
8793-24 interconnection to the public utility's transmission
8794-25 system and that will pass under or over the premises owned
8795-26 by the customer or generator to be served or under or over
8796-
8797-
8798-
8799-
8800-
8801- HB0587 Enrolled - 245 - LRB103 04172 CPF 49178 b
8802-
8803-
8804-HB0587 Enrolled- 246 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 246 - LRB103 04172 CPF 49178 b
8805- HB0587 Enrolled - 246 - LRB103 04172 CPF 49178 b
8806-1 premises for which the customer or generator has secured
8807-2 the necessary right of way.
8808-3 (h) A public utility seeking to construct a high-voltage
8809-4 electric service line and related facilities (Project) must
8810-5 show that the utility has held a minimum of 2 pre-filing public
8811-6 meetings to receive public comment concerning the Project in
8812-7 each county where the Project is to be located, no earlier than
8813-8 6 months prior to filing an application for a certificate of
8814-9 public convenience and necessity from the Commission. Notice
8815-10 of the public meeting shall be published in a newspaper of
8816-11 general circulation within the affected county once a week for
8817-12 3 consecutive weeks, beginning no earlier than one month prior
8818-13 to the first public meeting. If the Project traverses 2
8819-14 contiguous counties and where in one county the transmission
8820-15 line mileage and number of landowners over whose property the
8821-16 proposed route traverses is one-fifth or less of the
8822-17 transmission line mileage and number of such landowners of the
8823-18 other county, then the utility may combine the 2 pre-filing
8824-19 meetings in the county with the greater transmission line
8825-20 mileage and affected landowners. All other requirements
8826-21 regarding pre-filing meetings shall apply in both counties.
8827-22 Notice of the public meeting, including a description of the
8828-23 Project, must be provided in writing to the clerk of each
8829-24 county where the Project is to be located. A representative of
8830-25 the Commission shall be invited to each pre-filing public
8831-26 meeting.
8832-
8833-
8834-
8835-
8836-
8837- HB0587 Enrolled - 246 - LRB103 04172 CPF 49178 b
8838-
8839-
8840-HB0587 Enrolled- 247 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 247 - LRB103 04172 CPF 49178 b
8841- HB0587 Enrolled - 247 - LRB103 04172 CPF 49178 b
8842-1 (h-5) A public utility seeking to construct a high-voltage
8843-2 electric service line and related facilities must also show
8844-3 that the Project has complied with training and competence
8845-4 requirements under subsection (b) of Section 15 of the
8846-5 Electric Transmission Systems Construction Standards Act.
8847-6 (i) For applications filed after August 18, 2015 (the
8848-7 effective date of Public Act 99-399), the Commission shall, by
8849-8 certified mail, notify each owner of record of land, as
8850-9 identified in the records of the relevant county tax assessor,
8851-10 included in the right-of-way over which the utility seeks in
8852-11 its application to construct a high-voltage electric line of
8853-12 the time and place scheduled for the initial hearing on the
8854-13 public utility's application. The utility shall reimburse the
8855-14 Commission for the cost of the postage and supplies incurred
8856-15 for mailing the notice.
8857-16 (Source: P.A. 102-609, eff. 8-27-21; 102-662, eff. 9-15-21;
8858-17 102-813, eff. 5-13-22; 102-931, eff. 5-27-22; 103-569, eff.
8859-18 6-1-24.)
8860-19 (220 ILCS 5/8-406.1)
8861-20 Sec. 8-406.1. Certificate of public convenience and
8862-21 necessity; expedited procedure.
8863-22 (a) A public utility may apply for a certificate of public
8864-23 convenience and necessity pursuant to this Section for the
8865-24 construction of any new high voltage electric service line and
8866-25 related facilities (Project). To facilitate the expedited
8867-
8868-
8869-
8870-
8871-
8872- HB0587 Enrolled - 247 - LRB103 04172 CPF 49178 b
8873-
8874-
8875-HB0587 Enrolled- 248 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 248 - LRB103 04172 CPF 49178 b
8876- HB0587 Enrolled - 248 - LRB103 04172 CPF 49178 b
8877-1 review process of an application filed pursuant to this
8878-2 Section, an application shall include all of the following:
8879-3 (1) Information in support of the application that
8880-4 shall include the following:
8881-5 (A) A detailed description of the Project,
8882-6 including location maps and plot plans to scale
8883-7 showing all major components.
8884-8 (B) The following engineering data:
8885-9 (i) a detailed Project description including:
8886-10 (I) name and destination of the Project;
8887-11 (II) design voltage rating (kV);
8888-12 (III) operating voltage rating (kV); and
8889-13 (IV) normal peak operating current rating;
8890-14 (ii) a conductor, structures, and substations
8891-15 description including:
8892-16 (I) conductor size and type;
8893-17 (II) type of structures;
8894-18 (III) height of typical structures;
8895-19 (IV) an explanation why these structures
8896-20 were selected;
8897-21 (V) dimensional drawings of the typical
8898-22 structures to be used in the Project; and
8899-23 (VI) a list of the names of all new (and
8900-24 existing if applicable) substations or
8901-25 switching stations that will be associated
8902-26 with the proposed new high voltage electric
8903-
8904-
8905-
8906-
8907-
8908- HB0587 Enrolled - 248 - LRB103 04172 CPF 49178 b
8909-
8910-
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8912- HB0587 Enrolled - 249 - LRB103 04172 CPF 49178 b
8913-1 service line;
8914-2 (iii) the location of the site and
8915-3 right-of-way including:
8916-4 (I) miles of right-of-way;
8917-5 (II) miles of circuit;
8918-6 (III) width of the right-of-way; and
8919-7 (IV) a brief description of the area
8920-8 traversed by the proposed high voltage
8921-9 electric service line, including a description
8922-10 of the general land uses in the area and the
8923-11 type of terrain crossed by the proposed line;
8924-12 (iv) assumptions, bases, formulae, and methods
8925-13 used in the development and preparation of the
8926-14 diagrams and accompanying data, and a technical
8927-15 description providing the following information:
8928-16 (I) number of circuits, with
8929-17 identification as to whether the circuit is
8930-18 overhead or underground;
8931-19 (II) the operating voltage and frequency;
8932-20 and
8933-21 (III) conductor size and type and number
8934-22 of conductors per phase;
8935-23 (v) if the proposed interconnection is an
8936-24 overhead line, the following additional
8937-25 information also must be provided:
8938-26 (I) the wind and ice loading design
8939-
8940-
8941-
8942-
8943-
8944- HB0587 Enrolled - 249 - LRB103 04172 CPF 49178 b
8945-
8946-
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8948- HB0587 Enrolled - 250 - LRB103 04172 CPF 49178 b
8949-1 parameters;
8950-2 (II) a full description and drawing of a
8951-3 typical supporting structure, including
8952-4 strength specifications;
8953-5 (III) structure spacing with typical
8954-6 ruling and maximum spans;
8955-7 (IV) conductor (phase) spacing; and
8956-8 (V) the designed line-to-ground and
8957-9 conductor-side clearances;
8958-10 (vi) if an underground or underwater
8959-11 interconnection is proposed, the following
8960-12 additional information also must be provided:
8961-13 (I) burial depth;
8962-14 (II) type of cable and a description of
8963-15 any required supporting equipment, such as
8964-16 insulation medium pressurizing or forced
8965-17 cooling;
8966-18 (III) cathodic protection scheme; and
8967-19 (IV) type of dielectric fluid and
8968-20 safeguards used to limit potential spills in
8969-21 waterways;
8970-22 (vii) technical diagrams that provide
8971-23 clarification of any item under this item (1)
8972-24 should be included; and
8973-25 (viii) applicant shall provide and identify a
8974-26 primary right-of-way and one or more alternate
8975-
8976-
8977-
8978-
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8981-
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8984- HB0587 Enrolled - 251 - LRB103 04172 CPF 49178 b
8985-1 rights-of-way for the Project as part of the
8986-2 filing. To the extent applicable, for each
8987-3 right-of-way, an applicant shall provide the
8988-4 information described in this subsection (a). Upon
8989-5 a showing of good cause in its filing, an
8990-6 applicant may be excused from providing and
8991-7 identifying alternate rights-of-way.
8992-8 (2) An application fee of $100,000, which shall be
8993-9 paid into the Public Utility Fund at the time the Chief
8994-10 Clerk of the Commission deems it complete and accepts the
8995-11 filing.
8996-12 (3) Information showing that the utility has held a
8997-13 minimum of 3 pre-filing public meetings to receive public
8998-14 comment concerning the Project in each county where the
8999-15 Project is to be located, no earlier than 6 months prior to
9000-16 the filing of the application. Notice of the public
9001-17 meeting shall be published in a newspaper of general
9002-18 circulation within the affected county once a week for 3
9003-19 consecutive weeks, beginning no earlier than one month
9004-20 prior to the first public meeting. If the Project
9005-21 traverses 2 contiguous counties and where in one county
9006-22 the transmission line mileage and number of landowners
9007-23 over whose property the proposed route traverses is 1/5 or
9008-24 less of the transmission line mileage and number of such
9009-25 landowners of the other county, then the utility may
9010-26 combine the 3 pre-filing meetings in the county with the
9011-
9012-
9013-
9014-
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9016- HB0587 Enrolled - 251 - LRB103 04172 CPF 49178 b
9017-
9018-
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9020- HB0587 Enrolled - 252 - LRB103 04172 CPF 49178 b
9021-1 greater transmission line mileage and affected landowners.
9022-2 All other requirements regarding pre-filing meetings shall
9023-3 apply in both counties. Notice of the public meeting,
9024-4 including a description of the Project, must be provided
9025-5 in writing to the clerk of each county where the Project is
9026-6 to be located. A representative of the Commission shall be
9027-7 invited to each pre-filing public meeting.
9028-8 For applications filed after the effective date of this
9029-9 amendatory Act of the 99th General Assembly, the Commission
9030-10 shall, by certified mail, notify each owner of record of the
9031-11 land, as identified in the records of the relevant county tax
9032-12 assessor, included in the primary or alternate rights-of-way
9033-13 identified in the utility's application of the time and place
9034-14 scheduled for the initial hearing upon the public utility's
9035-15 application. The utility shall reimburse the Commission for
9036-16 the cost of the postage and supplies incurred for mailing the
9037-17 notice.
9038-18 (b) At the first status hearing the administrative law
9039-19 judge shall set a schedule for discovery that shall take into
9040-20 consideration the expedited nature of the proceeding.
9041-21 (c) Nothing in this Section prohibits a utility from
9042-22 requesting, or the Commission from approving, protection of
9043-23 confidential or proprietary information under applicable law.
9044-24 The public utility may seek confidential protection of any of
9045-25 the information provided pursuant to this Section, subject to
9046-26 Commission approval.
9047-
9048-
9049-
9050-
9051-
9052- HB0587 Enrolled - 252 - LRB103 04172 CPF 49178 b
9053-
9054-
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9056- HB0587 Enrolled - 253 - LRB103 04172 CPF 49178 b
9057-1 (d) The public utility shall publish notice of its
9058-2 application in the official State newspaper within 10 days
9059-3 following the date of the application's filing.
9060-4 (e) The public utility shall establish a dedicated website
9061-5 for the Project 3 weeks prior to the first public meeting and
9062-6 maintain the website until construction of the Project is
9063-7 complete. The website address shall be included in all public
9064-8 notices.
9065-9 (f) The Commission shall, after notice and hearing, grant
9066-10 a certificate of public convenience and necessity filed in
9067-11 accordance with the requirements of this Section if, based
9068-12 upon the application filed with the Commission and the
9069-13 evidentiary record, it finds the Project will promote the
9070-14 public convenience and necessity and that all of the following
9071-15 criteria are satisfied:
9072-16 (1) That the Project is necessary to provide adequate,
9073-17 reliable, and efficient service to the public utility's
9074-18 customers and is the least-cost means of satisfying the
9075-19 service needs of the public utility's customers or that
9076-20 the Project will promote the development of an effectively
9077-21 competitive electricity market that operates efficiently,
9078-22 is equitable to all customers, and is the least cost means
9079-23 of satisfying those objectives.
9080-24 (2) That the public utility is capable of efficiently
9081-25 managing and supervising the construction process and has
9082-26 taken sufficient action to ensure adequate and efficient
9083-
9084-
9085-
9086-
9087-
9088- HB0587 Enrolled - 253 - LRB103 04172 CPF 49178 b
9089-
9090-
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9092- HB0587 Enrolled - 254 - LRB103 04172 CPF 49178 b
9093-1 construction and supervision of the construction.
9094-2 (3) That the public utility is capable of financing
9095-3 the proposed construction without significant adverse
9096-4 financial consequences for the utility or its customers.
9097-5 (4) That the Project has complied with training and
9098-6 competence and Diversity Plan requirements under
9099-7 subsections (b) and (d) of Section 15 of the Electric
9100-8 Transmission Systems Construction Standards Act.
9101-9 (g) The Commission shall issue its decision with findings
9102-10 of fact and conclusions of law granting or denying the
9103-11 application no later than 150 days after the application is
9104-12 filed. The Commission may extend the 150-day deadline upon
9105-13 notice by an additional 75 days if, on or before the 30th day
9106-14 after the filing of the application, the Commission finds that
9107-15 good cause exists to extend the 150-day period.
9108-16 (h) In the event the Commission grants a public utility's
9109-17 application for a certificate pursuant to this Section, the
9110-18 public utility shall pay a one-time construction fee to each
9111-19 county in which the Project is constructed within 30 days
9112-20 after the completion of construction. The construction fee
9113-21 shall be $20,000 per mile of high voltage electric service
9114-22 line constructed in that county, or a proportionate fraction
9115-23 of that fee. The fee shall be in lieu of any permitting fees
9116-24 that otherwise would be imposed by a county. Counties
9117-25 receiving a payment under this subsection (h) may distribute
9118-26 all or portions of the fee to local taxing districts in that
9119-
9120-
9121-
9122-
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9124- HB0587 Enrolled - 254 - LRB103 04172 CPF 49178 b
9125-
9126-
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9128- HB0587 Enrolled - 255 - LRB103 04172 CPF 49178 b
9129-1 county.
9130-2 (i) Notwithstanding any other provisions of this Act, a
9131-3 decision granting a certificate under this Section shall
9132-4 include an order pursuant to Section 8-503 of this Act
9133-5 authorizing or directing the construction of the high voltage
9134-6 electric service line and related facilities as approved by
9135-7 the Commission, in the manner and within the time specified in
9136-8 said order.
9137-9 (Source: P.A. 102-931, eff. 5-27-22.)
9138-10 (220 ILCS 5/16-107.6)
9139-11 Sec. 16-107.6. Distributed generation rebate.
9140-12 (a) In this Section:
9141-13 "Additive services" means the services that distributed
9142-14 energy resources provide to the energy system and society that
9143-15 are not (1) already included in the base rebates for
9144-16 system-wide grid services; or (2) otherwise already
9145-17 compensated. Additive services may reflect, but shall not be
9146-18 limited to, any geographic, time-based, performance-based, and
9147-19 other benefits of distributed energy resources, as well as the
9148-20 present and future technological capabilities of distributed
9149-21 energy resources and present and future grid needs.
9150-22 "Distributed energy resource" means a wide range of
9151-23 technologies that are located on the customer side of the
9152-24 customer's electric meter, including, but not limited to,
9153-25 distributed generation, energy storage, electric vehicles, and
9154-
9155-
9156-
9157-
9158-
9159- HB0587 Enrolled - 255 - LRB103 04172 CPF 49178 b
9160-
9161-
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9163- HB0587 Enrolled - 256 - LRB103 04172 CPF 49178 b
9164-1 demand response technologies.
9165-2 "Energy storage system" means commercially available
9166-3 technology that is capable of absorbing energy and storing it
9167-4 for a period of time for use at a later time, including, but
9168-5 not limited to, electrochemical, thermal, and
9169-6 electromechanical technologies, and may be interconnected
9170-7 behind the customer's meter or interconnected behind its own
9171-8 meter.
9172-9 "Smart inverter" means a device that converts direct
9173-10 current into alternating current and meets the IEEE 1547-2018
9174-11 equipment standards. Until devices that meet the IEEE
9175-12 1547-2018 standard are available, devices that meet the UL
9176-13 1741 SA standard are acceptable.
9177-14 "Subscriber" has the meaning set forth in Section 1-10 of
9178-15 the Illinois Power Agency Act.
9179-16 "Subscription" has the meaning set forth in Section 1-10
9180-17 of the Illinois Power Agency Act.
9181-18 "System-wide grid services" means the benefits that a
9182-19 distributed energy resource provides to the distribution grid
9183-20 for a period of no less than 25 years. System-wide grid
9184-21 services do not vary by location, time, or the performance
9185-22 characteristics of the distributed energy resource.
9186-23 System-wide grid services include, but are not limited to,
9187-24 avoided or deferred distribution capacity costs, resilience
9188-25 and reliability benefits, avoided or deferred distribution
9189-26 operation and maintenance costs, distribution voltage and
9190-
9191-
9192-
9193-
9194-
9195- HB0587 Enrolled - 256 - LRB103 04172 CPF 49178 b
9196-
9197-
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9199- HB0587 Enrolled - 257 - LRB103 04172 CPF 49178 b
9200-1 power quality benefits, and line loss reductions.
9201-2 "Threshold date" means December 31, 2024 or the date on
9202-3 which the utility's tariff or tariffs setting the new
9203-4 compensation values established under subsection (e) take
9204-5 effect, whichever is later.
9205-6 (b) An electric utility that serves more than 200,000
9206-7 customers in the State shall file a petition with the
9207-8 Commission requesting approval of the utility's tariff to
9208-9 provide a rebate to the owner or operator of distributed
9209-10 generation, including third-party owned systems, that meets
9210-11 the following criteria:
9211-12 (1) has a nameplate generating capacity no greater
9212-13 than 5,000 kilowatts and is primarily used to offset a
9213-14 customer's electricity load;
9214-15 (2) is located on the customer's side of the billing
9215-16 meter and for the customer's own use;
9216-17 (3) is interconnected to electric distribution
9217-18 facilities owned by the electric utility under rules
9218-19 adopted by the Commission by means of one or more
9219-20 inverters the inverter or smart inverters inverter
9220-21 required by this Section, as applicable.
9221-22 For purposes of this Section, "distributed generation"
9222-23 shall satisfy the definition of distributed renewable energy
9223-24 generation device set forth in Section 1-10 of the Illinois
9224-25 Power Agency Act to the extent such definition is consistent
9225-26 with the requirements of this Section.
9226-
9227-
9228-
9229-
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9231- HB0587 Enrolled - 257 - LRB103 04172 CPF 49178 b
9232-
9233-
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9235- HB0587 Enrolled - 258 - LRB103 04172 CPF 49178 b
9236-1 In addition, any new photovoltaic distributed generation
9237-2 that is installed after June 1, 2017 (the effective date of
9238-3 Public Act 99-906) must be installed by a qualified person, as
9239-4 defined by subsection (i) of Section 1-56 of the Illinois
9240-5 Power Agency Act.
9241-6 The tariff shall include a base rebate that compensates
9242-7 distributed generation for the system-wide grid services
9243-8 associated with distributed generation and, after the
9244-9 proceeding described in subsection (e) of this Section, an
9245-10 additional payment or payments for the additive services. The
9246-11 tariff shall provide that the smart inverter or smart
9247-12 inverters associated with the distributed generation shall
9248-13 provide autonomous response to grid conditions through its
9249-14 default settings as approved by the Commission. Default
9250-15 settings may not be changed after the execution of the
9251-16 interconnection agreement except by mutual agreement between
9252-17 the utility and the owner or operator of the distributed
9253-18 generation. Nothing in this Section shall negate or supersede
9254-19 Institute of Electrical and Electronics Engineers equipment
9255-20 standards or other similar standards or requirements. The
9256-21 tariff shall not limit the ability of the smart inverter or
9257-22 smart inverters or other distributed energy resource to
9258-23 provide wholesale market products such as regulation, demand
9259-24 response, or other services, or limit the ability of the owner
9260-25 of the smart inverter or the other distributed energy resource
9261-26 to receive compensation for providing those wholesale market
9262-
9263-
9264-
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9267- HB0587 Enrolled - 258 - LRB103 04172 CPF 49178 b
9268-
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9271- HB0587 Enrolled - 259 - LRB103 04172 CPF 49178 b
9272-1 products or services.
9273-2 (b-5) Within 30 days after the effective date of this
9274-3 amendatory Act of the 102nd General Assembly, each electric
9275-4 public utility with 3,000,000 or more retail customers shall
9276-5 file a tariff with the Commission that further compensates any
9277-6 retail customer that installs or has installed photovoltaic
9278-7 facilities paired with energy storage facilities on or
9279-8 adjacent to its premises for the benefits the facilities
9280-9 provide to the distribution grid. The tariff shall provide
9281-10 that, in addition to the other rebates identified in this
9282-11 Section, the electric utility shall rebate to such retail
9283-12 customer (i) the previously incurred and future costs of
9284-13 installing interconnection facilities and related
9285-14 infrastructure to enable full participation in the PJM
9286-15 Interconnection, LLC or its successor organization frequency
9287-16 regulation market; and (ii) all wholesale demand charges
9288-17 incurred after the effective date of this amendatory Act of
9289-18 the 102nd General Assembly. The Commission shall approve, or
9290-19 approve with modification, the tariff within 120 days after
9291-20 the utility's filing.
9292-21 (c) The proposed tariff authorized by subsection (b) of
9293-22 this Section shall include the following participation terms
9294-23 for rebates to be applied under this Section for distributed
9295-24 generation that satisfies the criteria set forth in subsection
9296-25 (b) of this Section:
9297-26 (1) The owner or operator of distributed generation
9298-
9299-
9300-
9301-
9302-
9303- HB0587 Enrolled - 259 - LRB103 04172 CPF 49178 b
9304-
9305-
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9307- HB0587 Enrolled - 260 - LRB103 04172 CPF 49178 b
9308-1 that services customers not eligible for net metering
9309-2 under subsection (d), (d-5), or (e) of Section 16-107.5 of
9310-3 this Act may apply for a rebate as provided for in this
9311-4 Section. Until the threshold date, the value of the rebate
9312-5 shall be $250 per kilowatt of nameplate generating
9313-6 capacity, measured as nominal DC power output, of that
9314-7 customer's distributed generation. To the extent the
9315-8 distributed generation also has an associated energy
9316-9 storage, then the energy storage system shall be
9317-10 separately compensated with a base rebate of $250 per
9318-11 kilowatt-hour of nameplate capacity. Any distributed
9319-12 generation device that is compensated for storage in this
9320-13 subsection (1) before the threshold date shall participate
9321-14 in one or more programs determined through the Multi-Year
9322-15 Integrated Grid Planning process that are designed to meet
9323-16 peak reduction and flexibility. After the threshold date,
9324-17 the value of the base rebate and additional compensation
9325-18 for any additive services shall be as determined by the
9326-19 Commission in the proceeding described in subsection (e)
9327-20 of this Section, provided that the value of the base
9328-21 rebate for system-wide grid services shall not be lower
9329-22 than $250 per kilowatt of nameplate generating capacity of
9330-23 distributed generation or community renewable generation
9331-24 project.
9332-25 (2) The owner or operator of distributed generation
9333-26 that, before the threshold date, would have been eligible
9334-
9335-
9336-
9337-
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9339- HB0587 Enrolled - 260 - LRB103 04172 CPF 49178 b
9340-
9341-
9342-HB0587 Enrolled- 261 -LRB103 04172 CPF 49178 b HB0587 Enrolled - 261 - LRB103 04172 CPF 49178 b
9343- HB0587 Enrolled - 261 - LRB103 04172 CPF 49178 b
9344-1 for net metering under subsection (d), (d-5), or (e) of
9345-2 Section 16-107.5 of this Act and that has not previously
9346-3 received a distributed generation rebate, may apply for a
9347-4 rebate as provided for in this Section. Until the
9348-5 threshold date, the value of the base rebate shall be $300
9349-6 per kilowatt of nameplate generating capacity, measured as
9350-7 nominal DC power output, of the distributed generation.
9351-8 The owner or operator of distributed generation that,
9352-9 before the threshold date, is eligible for net metering
9353-10 under subsection (d), (d-5), or (e) of Section 16-107.5 of
9354-11 this Act may apply for a base rebate for an associated
9355-12 energy storage device behind the same retail customer
9356-13 meter that uses the same smart inverter as the distributed
9357-14 generation, regardless of whether the distributed
9358-15 generation applies for a rebate for the distributed
9359-16 generation device. The energy storage system shall be
9360-17 separately compensated at a base payment of $300 per
9361-18 kilowatt-hour of nameplate capacity. Any distributed
9362-19 generation device that is compensated for storage in this
9363-20 subsection (2) before the threshold date shall participate
9364-21 in a peak time rebate program, hourly pricing program, or
9365-22 time-of-use rate program offered by the applicable
9366-23 electric utility. After the threshold date, the value of
9367-24 the base rebate and additional compensation for any
9368-25 additive services shall be as determined by the Commission
9369-26 in the proceeding described in subsection (e) of this
9370-
9371-
9372-
9373-
9374-
9375- HB0587 Enrolled - 261 - LRB103 04172 CPF 49178 b
9376-
9377-
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9379- HB0587 Enrolled - 262 - LRB103 04172 CPF 49178 b
9380-1 Section, provided that, prior to December 31, 2029, the
9381-2 value of the base rebate for system-wide services shall
9382-3 not be lower than $300 per kilowatt of nameplate
9383-4 generating capacity of distributed generation, after which
9384-5 it shall not be lower than $250 per kilowatt of nameplate
9385-6 capacity. The eligibility of energy storage devices that
9386-7 are interconnected behind the same retail customer meter
9387-8 as the distributed generation shall not be limited to
9388-9 energy storage devices interconnected after the effective
9389-10 date of this amendatory Act of the 103rd General Assembly.
9390-11 To the extent that an electric utility's tariffs are
9391-12 inconsistent with the requirements of this paragraph (2)
9392-13 as modified by this amendatory Act of the 103rd General
9393-14 Assembly, such electric utility shall, within 30 days,
9394-15 file modified tariffs consistent with the requirements of
9395-16 this paragraph (2).
9396-17 (3) Upon approval of a rebate application submitted
9397-18 under this subsection (c), the retail customer shall no
9398-19 longer be entitled to receive any delivery service credits
9399-20 for the excess electricity generated by its facility and
9400-21 shall be subject to the provisions of subsection (n) of
9401-22 Section 16-107.5 of this Act unless the owner or operator
9402-23 receives a rebate only for an energy storage device and
9403-24 not for the distributed generation device.
9404-25 (4) To be eligible for a rebate described in this
9405-26 subsection (c), the owner or operator of the distributed
9406-
9407-
9408-
9409-
9410-
9411- HB0587 Enrolled - 262 - LRB103 04172 CPF 49178 b
9412-
9413-
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9415- HB0587 Enrolled - 263 - LRB103 04172 CPF 49178 b
9416-1 generation must have a smart inverter installed and in
9417-2 operation on the distributed generation.
9418-3 (d) The Commission shall review the proposed tariff
9419-4 authorized by subsection (b) of this Section and may make
9420-5 changes to the tariff that are consistent with this Section
9421-6 and with the Commission's authority under Article IX of this
9422-7 Act, subject to notice and hearing. Following notice and
9423-8 hearing, the Commission shall issue an order approving, or
9424-9 approving with modification, such tariff no later than 240
9425-10 days after the utility files its tariff. Upon the effective
9426-11 date of this amendatory Act of the 102nd General Assembly, an
9427-12 electric utility shall file a petition with the Commission to
9428-13 amend and update any existing tariffs to comply with
9429-14 subsections (b) and (c).
9430-15 (e) By no later than June 30, 2023, the Commission shall
9431-16 open an independent, statewide investigation into the value
9432-17 of, and compensation for, distributed energy resources. The
9433-18 Commission shall conduct the investigation, but may arrange
9434-19 for experts or consultants independent of the utilities and
9435-20 selected by the Commission to assist with the investigation.
9436-21 The cost of the investigation shall be shared by the utilities
9437-22 filing tariffs under subsection (b) of this Section but may be
9438-23 recovered as an expense through normal ratemaking procedures.
9439-24 (1) The Commission shall ensure that the investigation
9440-25 includes, at minimum, diverse sets of stakeholders; a
9441-26 review of best practices in calculating the value of
9442-
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9452-1 distributed energy resource benefits; a review of the full
9453-2 value of the distributed energy resources and the manner
9454-3 in which each component of that value is or is not
9455-4 otherwise compensated; and assessments of how the value of
9456-5 distributed energy resources may evolve based on the
9457-6 present and future technological capabilities of
9458-7 distributed energy resources and based on present and
9459-8 future grid needs.
9460-9 (2) The Commission's final order concluding this
9461-10 investigation shall establish an annual process and
9462-11 formula for the compensation of distributed generation and
9463-12 energy storage systems, and an initial set of inputs for
9464-13 that formula. The Commission's final order concluding this
9465-14 investigation shall establish base rebates that compensate
9466-15 distributed generation, community renewable generation
9467-16 projects and energy storage systems for the system-wide
9468-17 grid services that they provide. Those base rebate values
9469-18 shall be consistent across the state, and shall not vary
9470-19 by customer, customer class, customer location, or any
9471-20 other variable. With respect to rebates for distributed
9472-21 generation or community renewable generation projects,
9473-22 that rebate shall not be lower than $250 per kilowatt of
9474-23 nameplate generating capacity of the distributed
9475-24 generation or community renewable generation project. The
9476-25 Commission's final order concluding this proceeding shall
9477-26 also direct the utilities to update the formula, on an
9478-
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9487- HB0587 Enrolled - 265 - LRB103 04172 CPF 49178 b
9488-1 annual basis, with inputs derived from their integrated
9489-2 grid plans developed pursuant to Section 16-105.17. The
9490-3 base rebate shall be updated annually based on the annual
9491-4 updates to the formula inputs, but, with respect to
9492-5 rebates for distributed generation or community renewable
9493-6 generation projects, shall be no lower than $250 per
9494-7 kilowatt of nameplate generating capacity of the
9495-8 distributed generation or community renewable generation
9496-9 project.
9497-10 (3) The Commission shall also determine, as a part of
9498-11 its investigation under this subsection, whether
9499-12 distributed energy resources can provide any additive
9500-13 services. Those additive services may include services
9501-14 that are provided through utility-controlled responses to
9502-15 grid conditions. If the Commission determines that
9503-16 distributed energy resources can provide additive grid
9504-17 services, the Commission shall determine the terms and
9505-18 conditions for the operation and compensation of those
9506-19 services. That compensation shall be above and beyond the
9507-20 base rebate that the distributed energy generation,
9508-21 community renewable generation project and energy storage
9509-22 system receives. Compensation for additive services may
9510-23 vary by location, time, performance characteristics,
9511-24 technology types, or other variables.
9512-25 (4) The Commission shall ensure that compensation for
9513-26 distributed energy resources, including base rebates and
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9524-1 any payments for additive services, shall reflect all
9525-2 reasonably known and measurable values of the distributed
9526-3 generation over its full expected useful life.
9527-4 Compensation for additive services shall reflect, but
9528-5 shall not be limited to, any geographic, time-based,
9529-6 performance-based, and other benefits of distributed
9530-7 generation, as well as the present and future
9531-8 technological capabilities of distributed energy resources
9532-9 and present and future grid needs.
9533-10 (5) The Commission shall consider the electric
9534-11 utility's integrated grid plan developed pursuant to
9535-12 Section 16-105.17 of this Act to help identify the value
9536-13 of distributed energy resources for the purpose of
9537-14 calculating the compensation described in this subsection.
9538-15 (6) The Commission shall determine additional
9539-16 compensation for distributed energy resources that creates
9540-17 savings and value on the distribution system by being
9541-18 co-located or in close proximity to electric vehicle
9542-19 charging infrastructure in use by medium-duty and
9543-20 heavy-duty vehicles, primarily serving environmental
9544-21 justice communities, as outlined in the utility integrated
9545-22 grid planning process under Section 16-105.17 of this Act.
9546-23 No later than 60 days after the Commission enters its
9547-24 final order under this subsection (e), each utility shall file
9548-25 its updated tariff or tariffs in compliance with the order,
9549-26 including new tariffs for the recovery of costs incurred under
9550-
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9559- HB0587 Enrolled - 267 - LRB103 04172 CPF 49178 b
9560-1 this subsection (e) that shall provide for volumetric-based
9561-2 cost recovery, and the Commission shall approve, or approve
9562-3 with modification, the tariff or tariffs within 240 days after
9563-4 the utility's filing.
9564-5 (f) Notwithstanding any provision of this Act to the
9565-6 contrary, the owner or operator of a community renewable
9566-7 generation project as defined in Section 1-10 of the Illinois
9567-8 Power Agency Act shall also be eligible to apply for the rebate
9568-9 described in this Section. The owner or operator of the
9569-10 community renewable generation project may apply for a rebate
9570-11 only if the owner or operator, or previous owner or operator,
9571-12 of the community renewable generation project has not already
9572-13 submitted an application, and, regardless of whether the
9573-14 subscriber is a residential or non-residential customer, may
9574-15 be allowed the amount identified in paragraph (1) of
9575-16 subsection (c) applicable on the date that the application is
9576-17 submitted.
9577-18 (g) The owner of the distributed generation or community
9578-19 renewable generation project may apply for the rebate or
9579-20 rebates approved under this Section at the time of execution
9580-21 of an interconnection agreement with the distribution utility
9581-22 and shall receive the value available at that time of
9582-23 execution of the interconnection agreement, provided the
9583-24 project reaches mechanical completion within 24 months after
9584-25 execution of the interconnection agreement. If the project has
9585-26 not reached mechanical completion within 24 months after
9586-
9587-
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9595- HB0587 Enrolled - 268 - LRB103 04172 CPF 49178 b
9596-1 execution, the owner may reapply for the rebate or rebates
9597-2 approved under this Section available at the time of
9598-3 application and shall receive the value available at the time
9599-4 of application. The utility shall issue the rebate no later
9600-5 than 60 days after the project is energized. In the event the
9601-6 application is incomplete or the utility is otherwise unable
9602-7 to calculate the payment based on the information provided by
9603-8 the owner, the utility shall issue the payment no later than 60
9604-9 days after the application is complete or all requested
9605-10 information is received.
9606-11 (h) An electric utility shall recover from its retail
9607-12 customers all of the costs of the rebates made under a tariff
9608-13 or tariffs approved under subsection (d) of this Section,
9609-14 including, but not limited to, the value of the rebates and all
9610-15 costs incurred by the utility to comply with and implement
9611-16 subsections (b) and (c) of this Section, but not including
9612-17 costs incurred by the utility to comply with and implement
9613-18 subsection (e) of this Section, consistent with the following
9614-19 provisions:
9615-20 (1) The utility shall defer the full amount of its
9616-21 costs as a regulatory asset. The total costs deferred as a
9617-22 regulatory asset shall be amortized over a 15-year period.
9618-23 The unamortized balance shall be recognized as of December
9619-24 31 for a given year. The utility shall also earn a return
9620-25 on the total of the unamortized balance of the regulatory
9621-26 assets, less any deferred taxes related to the unamortized
9622-
9623-
9624-
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9631- HB0587 Enrolled - 269 - LRB103 04172 CPF 49178 b
9632-1 balance, at an annual rate equal to the utility's weighted
9633-2 average cost of capital that includes, based on a year-end
9634-3 capital structure, the utility's actual cost of debt for
9635-4 the applicable calendar year and a cost of equity, which
9636-5 shall be calculated as the sum of (i) the average for the
9637-6 applicable calendar year of the monthly average yields of
9638-7 30-year U.S. Treasury bonds published by the Board of
9639-8 Governors of the Federal Reserve System in its weekly H.15
9640-9 Statistical Release or successor publication; and (ii) 580
9641-10 basis points, including a revenue conversion factor
9642-11 calculated to recover or refund all additional income
9643-12 taxes that may be payable or receivable as a result of that
9644-13 return.
9645-14 When an electric utility creates a regulatory asset
9646-15 under the provisions of this paragraph (1) of subsection
9647-16 (h), the costs are recovered over a period during which
9648-17 customers also receive a benefit, which is in the public
9649-18 interest. Accordingly, it is the intent of the General
9650-19 Assembly that an electric utility that elects to create a
9651-20 regulatory asset under the provisions of this paragraph
9652-21 (1) shall recover all of the associated costs, including,
9653-22 but not limited to, its cost of capital as set forth in
9654-23 this paragraph (1). After the Commission has approved the
9655-24 prudence and reasonableness of the costs that comprise the
9656-25 regulatory asset, the electric utility shall be permitted
9657-26 to recover all such costs, and the value and
9658-
9659-
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9664-
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9667- HB0587 Enrolled - 270 - LRB103 04172 CPF 49178 b
9668-1 recoverability through rates of the associated regulatory
9669-2 asset shall not be limited, altered, impaired, or reduced.
9670-3 To enable the financing of the incremental capital
9671-4 expenditures, including regulatory assets, for electric
9672-5 utilities that serve less than 3,000,000 retail customers
9673-6 but more than 500,000 retail customers in the State, the
9674-7 utility's actual year-end capital structure that includes
9675-8 a common equity ratio, excluding goodwill, of up to and
9676-9 including 50% of the total capital structure shall be
9677-10 deemed reasonable and used to set rates.
9678-11 (2) The utility, at its election, may recover all of
9679-12 the costs as part of a filing for a general increase in
9680-13 rates under Article IX of this Act, as part of an annual
9681-14 filing to update a performance-based formula rate under
9682-15 subsection (d) of Section 16-108.5 of this Act, or through
9683-16 an automatic adjustment clause tariff, provided that
9684-17 nothing in this paragraph (2) permits the double recovery
9685-18 of such costs from customers. If the utility elects to
9686-19 recover the costs it incurs under subsections (b) and (c)
9687-20 through an automatic adjustment clause tariff, the utility
9688-21 may file its proposed tariff together with the tariff it
9689-22 files under subsection (b) of this Section or at a later
9690-23 time. The proposed tariff shall provide for an annual
9691-24 reconciliation, less any deferred taxes related to the
9692-25 reconciliation, with interest at an annual rate of return
9693-26 equal to the utility's weighted average cost of capital as
9694-
9695-
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9700-
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9703- HB0587 Enrolled - 271 - LRB103 04172 CPF 49178 b
9704-1 calculated under paragraph (1) of this subsection (h),
9705-2 including a revenue conversion factor calculated to
9706-3 recover or refund all additional income taxes that may be
9707-4 payable or receivable as a result of that return, of the
9708-5 revenue requirement reflected in rates for each calendar
9709-6 year, beginning with the calendar year in which the
9710-7 utility files its automatic adjustment clause tariff under
9711-8 this subsection (h), with what the revenue requirement
9712-9 would have been had the actual cost information for the
9713-10 applicable calendar year been available at the filing
9714-11 date. The Commission shall review the proposed tariff and
9715-12 may make changes to the tariff that are consistent with
9716-13 this Section and with the Commission's authority under
9717-14 Article IX of this Act, subject to notice and hearing.
9718-15 Following notice and hearing, the Commission shall issue
9719-16 an order approving, or approving with modification, such
9720-17 tariff no later than 240 days after the utility files its
9721-18 tariff.
9722-19 (i) An electric utility shall recover from its retail
9723-20 customers, on a volumetric basis, all of the costs of the
9724-21 rebates made under a tariff or tariffs placed into effect
9725-22 under subsection (e) of this Section, including, but not
9726-23 limited to, the value of the rebates and all costs incurred by
9727-24 the utility to comply with and implement subsection (e) of
9728-25 this Section, consistent with the following provisions:
9729-26 (1) The utility may defer a portion of its costs as a
9730-
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9739- HB0587 Enrolled - 272 - LRB103 04172 CPF 49178 b
9740-1 regulatory asset. The Commission shall determine the
9741-2 portion that may be appropriately deferred as a regulatory
9742-3 asset. Factors that the Commission shall consider in
9743-4 determining the portion of costs that shall be deferred as
9744-5 a regulatory asset include, but are not limited to: (i)
9745-6 whether and the extent to which a cost effectively
9746-7 deferred or avoided other distribution system operating
9747-8 costs or capital expenditures; (ii) the extent to which a
9748-9 cost provides environmental benefits; (iii) the extent to
9749-10 which a cost improves system reliability or resilience;
9750-11 (iv) the electric utility's distribution system plan
9751-12 developed pursuant to Section 16-105.17 of this Act; (v)
9752-13 the extent to which a cost advances equity principles; and
9753-14 (vi) such other factors as the Commission deems
9754-15 appropriate. The remainder of costs shall be deemed an
9755-16 operating expense and shall be recoverable if found
9756-17 prudent and reasonable by the Commission.
9757-18 The total costs deferred as a regulatory asset shall
9758-19 be amortized over a 15-year period. The unamortized
9759-20 balance shall be recognized as of December 31 for a given
9760-21 year. The utility shall also earn a return on the total of
9761-22 the unamortized balance of the regulatory assets, less any
9762-23 deferred taxes related to the unamortized balance, at an
9763-24 annual rate equal to the utility's weighted average cost
9764-25 of capital that includes, based on a year-end capital
9765-26 structure, the utility's actual cost of debt for the
9766-
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9775- HB0587 Enrolled - 273 - LRB103 04172 CPF 49178 b
9776-1 applicable calendar year and a cost of equity, which shall
9777-2 be calculated as the sum of: (I) the average for the
9778-3 applicable calendar year of the monthly average yields of
9779-4 30-year U.S. Treasury bonds published by the Board of
9780-5 Governors of the Federal Reserve System in its weekly H.15
9781-6 Statistical Release or successor publication; and (II) 580
9782-7 basis points, including a revenue conversion factor
9783-8 calculated to recover or refund all additional income
9784-9 taxes that may be payable or receivable as a result of that
9785-10 return.
9786-11 (2) The utility may recover all of the costs through
9787-12 an automatic adjustment clause tariff, on a volumetric
9788-13 basis. The utility may file its proposed cost-recovery
9789-14 tariff together with the tariff it files under subsection
9790-15 (e) of this Section or at a later time. The proposed tariff
9791-16 shall provide for an annual reconciliation, less any
9792-17 deferred taxes related to the reconciliation, with
9793-18 interest at an annual rate of return equal to the
9794-19 utility's weighted average cost of capital as calculated
9795-20 under paragraph (1) of this subsection (i), including a
9796-21 revenue conversion factor calculated to recover or refund
9797-22 all additional income taxes that may be payable or
9798-23 receivable as a result of that return, of the revenue
9799-24 requirement reflected in rates for each calendar year,
9800-25 beginning with the calendar year in which the utility
9801-26 files its automatic adjustment clause tariff under this
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9811- HB0587 Enrolled - 274 - LRB103 04172 CPF 49178 b
9812-1 subsection (i), with what the revenue requirement would
9813-2 have been had the actual cost information for the
9814-3 applicable calendar year been available at the filing
9815-4 date. The Commission shall review the proposed tariff and
9816-5 may make changes to the tariff that are consistent with
9817-6 this Section and with the Commission's authority under
9818-7 Article IX of this Act, subject to notice and hearing.
9819-8 Following notice and hearing, the Commission shall issue
9820-9 an order approving, or approving with modification, such
9821-10 tariff no later than 240 days after the utility files its
9822-11 tariff.
9823-12 (j) No later than 90 days after the Commission enters an
9824-13 order, or order on rehearing, whichever is later, approving an
9825-14 electric utility's proposed tariff under this Section, the
9826-15 electric utility shall provide notice of the availability of
9827-16 rebates under this Section.
9828-17 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
9829-18 (220 ILCS 5/16-135)
9830-19 Sec. 16-135. Energy Storage Program.
9831-20 (a) The Illinois General Assembly hereby finds and
9832-21 declares that:
9833-22 (1) Energy storage systems provide opportunities to:
9834-23 (A) reduce costs to ratepayers directly or
9835-24 indirectly by avoiding or deferring the need for
9836-25 investment in new generation and for upgrades to
9837-
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9847-1 systems for the transmission and distribution of
9848-2 electricity;
9849-3 (B) reduce the use of fossil fuels for meeting
9850-4 demand during peak load periods;
9851-5 (C) provide ancillary services such as frequency
9852-6 response, load following, and voltage support;
9853-7 (D) assist electric utilities with integrating
9854-8 sources of renewable energy into the grid for the
9855-9 transmission and distribution of electricity, and with
9856-10 maintaining grid stability;
9857-11 (E) support diversification of energy resources;
9858-12 (F) enhance the resilience and reliability of the
9859-13 electric grid; and
9860-14 (G) reduce greenhouse gas emissions and other air
9861-15 pollutants resulting from power generation, thereby
9862-16 minimizing public health impacts that result from
9863-17 power generation.
9864-18 (2) There are significant barriers to obtaining the
9865-19 benefits of energy storage systems, including inadequate
9866-20 valuation of the services that energy storage can provide
9867-21 to the grid and the public.
9868-22 (3) It is in the public interest to:
9869-23 (A) develop a robust competitive market for
9870-24 existing and new providers of energy storage systems
9871-25 in order to leverage Illinois' position as a leader in
9872-26 advanced energy and to capture the potential for
9873-
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9882- HB0587 Enrolled - 276 - LRB103 04172 CPF 49178 b
9883-1 economic development;
9884-2 (B) implement targets and programs to achieve
9885-3 deployment of energy storage systems; and
9886-4 (C) modernize distributed energy resource programs
9887-5 and interconnection standards to lower costs and
9888-6 efficiently deploy energy storage systems in order to
9889-7 increase economic development and job creation within
9890-8 the state's clean energy economy.
9891-9 (b) In this Section:
9892-10 "Energy storage peak standard" means a percentage of
9893-11 annual retail electricity sales during peak hours that an
9894-12 electric utility must derive from electricity discharged from
9895-13 eligible energy storage systems.
9896-14 "Deployment" means the installation of energy storage
9897-15 systems through a variety of mechanisms, including utility
9898-16 procurement, customer installation, or other processes.
9899-17 "Electric utility" has the same meaning as provided in
9900-18 Section 16-102 of this Act.
9901-19 "Energy storage system" means a technology that is capable
9902-20 of absorbing zero-carbon energy, storing it for a period of
9903-21 time, and redelivering that energy after it has been stored in
9904-22 order to provide direct or indirect benefits to the broader
9905-23 electricity system. The term includes, but is not limited to,
9906-24 electrochemical, thermal, and electromechanical technologies.
9907-25 "Nonwires alternatives solicitation" means a utility
9908-26 solicitation for third-party-owned or utility-owned
9909-
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9919-1 distributed energy resources that uses nontraditional
9920-2 solutions to defer or replace planned investment on the
9921-3 distribution or transmission system.
9922-4 "Total peak demand" means the highest hourly electricity
9923-5 demand for an electric utility in a given year, measured in
9924-6 megawatts, from all of the electric utility's customers of
9925-7 distribution service.
9926-8 (c) The Commission, in consultation with the Illinois
9927-9 Power Agency, shall initiate a proceeding to examine specific
9928-10 programs, mechanisms, and policies that could support the
9929-11 deployment of energy storage systems. The Illinois Commerce
9930-12 Commission shall engage a broad group of Illinois
9931-13 stakeholders, including electric utilities, the energy storage
9932-14 industry, the renewable energy industry, and others to inform
9933-15 the proceeding. The proceeding must, at minimum:
9934-16 (1) develop a framework to identify and measure the
9935-17 potential costs, benefits, that deployment of energy
9936-18 storage could produce, as well as barriers to realizing
9937-19 such benefits, including, but not limited to:
9938-20 (A) avoided cost and deferred investments in
9939-21 generation, transmission, and distribution facilities;
9940-22 (B) reduced ancillary services costs;
9941-23 (C) reduced transmission and distribution
9942-24 congestion;
9943-25 (D) lower peak power costs and reduced capacity
9944-26 costs;
9945-
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9954- HB0587 Enrolled - 278 - LRB103 04172 CPF 49178 b
9955-1 (E) reduced costs for emergency power supplies
9956-2 during outages;
9957-3 (F) reduced curtailment of renewable energy
9958-4 generators;
9959-5 (G) reduced greenhouse gas emissions and other
9960-6 criteria air pollutants;
9961-7 (H) increased grid hosting capacity of renewable
9962-8 energy generators that produce energy on an
9963-9 intermittent basis;
9964-10 (I) increased reliability and resilience of the
9965-11 electric grid;
9966-12 (J) reduced line losses;
9967-13 (K) increased resource diversification;
9968-14 (L) increased economic development;
9969-15 (2) analyze and estimate:
9970-16 (A) the impact on the system's ability to
9971-17 integrate renewable resources;
9972-18 (B) the benefits of addition of storage at
9973-19 specific locations, such as at existing peaking units
9974-20 or locations on the grid close to large load centers;
9975-21 (C) the impact on grid reliability and power
9976-22 quality; and
9977-23 (D) the effect on retail electric rates and supply
9978-24 rates over the useful life of a given energy storage
9979-25 system; and
9980-26 (3) evaluate and identify cost-effective policies and
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9991-1 programs to support the deployment of energy storage
9992-2 systems, including, but not limited to:
9993-3 (A) incentive programs;
9994-4 (B) energy storage peak standards;
9995-5 (C) nonwires alternative solicitation;
9996-6 (D) peak demand reduction programs for
9997-7 behind-the-meter storage for all customer classes;
9998-8 (E) value of distributed energy resources
9999-9 programs;
10000-10 (F) tax incentives;
10001-11 (G) time-varying rates;
10002-12 (H) updating of interconnection processes and
10003-13 metering standards; and
10004-14 (I) procurement by the Illinois Power Agency of
10005-15 energy storage resources.
10006-16 (d) The Commission shall, no later than May 31, 2022,
10007-17 submit to the General Assembly and the Governor any
10008-18 recommendations for additional legislative, regulatory, or
10009-19 executive actions based on the findings of the proceeding.
10010-20 (e) At the conclusion of the proceeding required under
10011-21 subsection (c), the Commission shall consider and recommend to
10012-22 the Governor and General Assembly energy storage deployment
10013-23 targets, if any, for each electric utility that serves more
10014-24 than 200,000 customers to be achieved by December 31, 2032,
10015-25 including recommended interim targets.
10016-26 (f) In setting recommendations for energy storage
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10027-1 deployment targets, the Commission shall:
10028-2 (1) take into account the costs and benefits of
10029-3 procuring energy storage according to the framework
10030-4 developed in the proceeding under subsection (c);
10031-5 (2) consider establishing specific subcategories of
10032-6 deployment of systems by point of interconnection or
10033-7 application.
10034-8 (g) The Commission, in its role as the relevant electric
10035-9 retail regulatory authority for Illinois, shall initiate a
10036-10 workshop process no later than February 1, 2025, for the
10037-11 purpose of facilitating the development of an initial forward
10038-12 storage procurement process and model contract for the
10039-13 procurement of utility-scale energy storage resources,
10040-14 hereafter "initial procurement". The workshops shall be
10041-15 coordinated by the staff of the Commission, or a facilitator
10042-16 or any other experts or consultants retained by the staff of
10043-17 the Commission, in consultation with the Illinois Power
10044-18 Agency. The workshop process shall be designed to develop an
10045-19 effective initial procurement of no more than 1,500 megawatts
10046-20 of utility-scale stand-alone energy storage resources whereby
10047-21 the Illinois Power Agency shall be positioned to have
10048-22 developed a confidential benchmark and solicited, received,
10049-23 and opened sealed bids for such initial procurement to
10050-24 conclude not later than August 26, 2025. The workshop process
10051-25 shall conclude no later than April 1, 2025. Following the
10052-26 workshop process, the staff of the Commission, or the
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10062- HB0587 Enrolled - 281 - LRB103 04172 CPF 49178 b
10063-1 facilitator retained by the staff, shall prepare and submit a
10064-2 report to the Governor, the General Assembly, and the
10065-3 Commission no later than May 1, 2025, that summarizes the
10066-4 information obtained through the workshop process and
10067-5 recommends the most effective procurement process, structure,
10068-6 and contract terms that would result in a successful initial
10069-7 procurement.
10070-8 Specifically, for the purposes of this initial procurement
10071-9 only, the report shall at a minimum include:
10072-10 (1) a definition and key terms of contracting
10073-11 structures, including, but not limited to, tolling
10074-12 agreements and indexed credits, and whether they are used
10075-13 in other states;
10076-14 (2) an assessment of changes to the contract
10077-15 structures, and the identification of appropriate
10078-16 signatories, used by other states necessary to fit the
10079-17 legal and regulatory structures of Illinois;
10080-18 (3) commercial terms required for the contract to be
10081-19 financeable without creating contractual obligations on
10082-20 the utilities that are not contingent on full and timely
10083-21 cost recovery;
10084-22 (4) contract structures that avoid a requirement that
10085-23 contracting utilities consider such agreement a lease
10086-24 under generally accepted accounting principles, or that
10087-25 such an agreement is reflected as debt on a contracting
10088-26 utility's balance sheet;
10089-
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10095-
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10098- HB0587 Enrolled - 282 - LRB103 04172 CPF 49178 b
10099-1 (5) necessary or appropriate roles for the owner of an
10100-2 energy storage system selected in a procurement to, either
10101-3 directly or through a third-party administrator which may
10102-4 be an affiliate, be responsible for operation,
10103-5 maintenance, dispatch, and other operational functions of
10104-6 the energy storage system;
10105-7 (6) other allocations of rights and responsibilities
10106-8 between the winning bidder, the electric utility, and, if
10107-9 applicable, the third-party administrator;
10108-10 (7) an assessment of whether a contract length
10109-11 different from 20 years is financeable, and whether other
10110-12 contract lengths would impact the net benefits of the
10111-13 storage procurement;
10112-14 (8) a model of a standard contract, including contract
10113-15 terms and conditions, to be used by the Illinois Power
10114-16 Agency and its procurement administrator for the initial
10115-17 procurement;
10116-18 (9) an analysis of whether 1,500 megawatts is the
10117-19 appropriate size for the initial procurement and whether
10118-20 additional procurements beyond August 2025 are valuable to
10119-21 Illinois taking into consideration the amount of projects
10120-22 in advanced stages of development and Illinois' need for
10121-23 storage energy systems in order to ensure it can meet its
10122-24 clean energy goals and to prevent or minimize any
10123-25 anticipated resource adequacy shortfalls;
10124-26 (10) an assessment of the appropriate cost recovery
10125-
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10134- HB0587 Enrolled - 283 - LRB103 04172 CPF 49178 b
10135-1 and allocation structure that ensures electric utilities
10136-2 can recover all of the costs associated with the
10137-3 procurement of energy storage resources and any other
10138-4 costs associated with proposed utility participation;
10139-5 (11) an assessment of the appropriate geographic
10140-6 location for the battery storage systems, including, but
10141-7 not limited to:
10142-8 (A) the geographic split of the megawatts of
10143-9 capacity of the energy storage resources procured
10144-10 pursuant to this initial procurement between those
10145-11 interconnected to the Midcontinent ISO, Inc. and PJM
10146-12 Interconnection, LLC; and
10147-13 (B) the potential benefits of procuring one or
10148-14 more projects within an area designated as an area of
10149-15 the State certified by the Department of Commerce and
10150-16 Economic Opportunity as an Enterprise zone or Energy
10151-17 Transition Grant Community;
10152-18 (12) an assessment of minimum application
10153-19 requirements, such as having achieved interconnection
10154-20 milestones, including, but not limited to:
10155-21 (A) projects that have applied for approval for
10156-22 surplus interconnection service or to transfer
10157-23 existing capacity interconnection rights to the
10158-24 relevant regional transmission organization and have
10159-25 received a completeness determination following
10160-26 completion of the initial review process and whether
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10170- HB0587 Enrolled - 284 - LRB103 04172 CPF 49178 b
10171-1 it is beneficial if such projects are also colocated
10172-2 with a renewable energy resource;
10173-3 (B) for projects interconnected to MISO, projects
10174-4 that have signed an interconnection agreement, or are
10175-5 in the MISO Generating Facility Replacement Process,
10176-6 or have provided the most current deposit in the MISO
10177-7 definitive planning phase (DPP) cycle 2021 or an
10178-8 earlier definitive planning phase cycle; or
10179-9 (C) for projects interconnected to PJM
10180-10 Interconnection, LLC, projects that have received a
10181-11 Phase 2 study;
10182-12 (13) an assessment of the impact of the costs and
10183-13 benefits to Illinois ratepayers of these issues related to
10184-14 this initial procurement; and
10185-15 (14) recommendations for the inclusion, or adaptation,
10186-16 of minimum equity standards and an equity accountability
10187-17 system to the procurement process.
10188-18 Given the rapid actions required pursuant to this Section,
10189-19 the procurement of any facilitator, expert, or consultant
10190-20 pursuant to this subsection is exempt from the requirements of
10191-21 Section 20-10 of the Illinois Procurement Code.
10192-22 (Source: P.A. 102-662, eff. 9-15-21.)
10193-23 Section 70. The Prevailing Wage Act is amended by changing
10194-24 Section 2 as follows:
10195-
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10201-
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10204- HB0587 Enrolled - 285 - LRB103 04172 CPF 49178 b
10205-1 (820 ILCS 130/2)
10206-2 Sec. 2. This Act applies to the wages of laborers,
10207-3 mechanics and other workers employed in any public works, as
10208-4 hereinafter defined, by any public body and to anyone under
10209-5 contracts for public works. This includes any maintenance,
10210-6 repair, assembly, or disassembly work performed on equipment
10211-7 whether owned, leased, or rented.
10212-8 As used in this Act, unless the context indicates
10213-9 otherwise:
10214-10 "Public works" means all fixed works constructed or
10215-11 demolished by any public body, or paid for wholly or in part
10216-12 out of public funds. "Public works" as defined herein includes
10217-13 all projects financed in whole or in part with bonds, grants,
10218-14 loans, or other funds made available by or through the State or
10219-15 any of its political subdivisions, including but not limited
10220-16 to: bonds issued under the Industrial Project Revenue Bond Act
10221-17 (Article 11, Division 74 of the Illinois Municipal Code), the
10222-18 Industrial Building Revenue Bond Act, the Illinois Finance
10223-19 Authority Act, the Illinois Sports Facilities Authority Act,
10224-20 or the Build Illinois Bond Act; loans or other funds made
10225-21 available pursuant to the Build Illinois Act; loans or other
10226-22 funds made available pursuant to the Riverfront Development
10227-23 Fund under Section 10-15 of the River Edge Redevelopment Zone
10228-24 Act; or funds from the Fund for Illinois' Future under Section
10229-25 6z-47 of the State Finance Act, funds for school construction
10230-26 under Section 5 of the General Obligation Bond Act, funds
10231-
10232-
10233-
10234-
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10237-
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10240- HB0587 Enrolled - 286 - LRB103 04172 CPF 49178 b
10241-1 authorized under Section 3 of the School Construction Bond
10242-2 Act, funds for school infrastructure under Section 6z-45 of
10243-3 the State Finance Act, and funds for transportation purposes
10244-4 under Section 4 of the General Obligation Bond Act. "Public
10245-5 works" also includes (i) all projects financed in whole or in
10246-6 part with funds from the Environmental Protection Agency under
10247-7 the Illinois Renewable Fuels Development Program Act for which
10248-8 there is no project labor agreement; (ii) all work performed
10249-9 pursuant to a public private agreement under the Public
10250-10 Private Agreements for the Illiana Expressway Act or the
10251-11 Public-Private Agreements for the South Suburban Airport Act;
10252-12 (iii) all projects undertaken under a public-private agreement
10253-13 under the Public-Private Partnerships for Transportation Act
10254-14 or the Department of Natural Resources World Shooting and
10255-15 Recreational Complex Act; and (iv) all transportation
10256-16 facilities undertaken under a design-build contract or a
10257-17 Construction Manager/General Contractor contract under the
10258-18 Innovations for Transportation Infrastructure Act. "Public
10259-19 works" also includes all projects at leased facility property
10260-20 used for airport purposes under Section 35 of the Local
10261-21 Government Facility Lease Act. "Public works" also includes
10262-22 the construction of a new wind power facility by a business
10263-23 designated as a High Impact Business under Section
10264-24 5.5(a)(3)(E) of the Illinois Enterprise Zone Act, and the
10265-25 construction of a new utility-scale solar power facility by a
10266-26 business designated as a High Impact Business under Section
10267-
10268-
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10273-
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10276- HB0587 Enrolled - 287 - LRB103 04172 CPF 49178 b
10277-1 5.5(a)(3)(E-5) of the Illinois Enterprise Zone Act, the
10278-2 construction of a new battery energy storage solution facility
10279-3 by a business designated as a High Impact Business under
10280-4 Section 5.5(a)(3)(I) of the Illinois Enterprise Zone Act, and
10281-5 the construction of a high voltage direct current converter
10282-6 station by a business designated as a High Impact Business
10283-7 under Section 5.5(a)(3)(J) of the Illinois Enterprise Zone
10284-8 Act. "Public works" also includes electric vehicle charging
10285-9 station projects financed pursuant to the Electric Vehicle Act
10286-10 and renewable energy projects required to pay the prevailing
10287-11 wage pursuant to the Illinois Power Agency Act. "Public works"
10288-12 also includes power washing projects by a public body or paid
10289-13 for wholly or in part out of public funds in which steam or
10290-14 pressurized water, with or without added abrasives or
10291-15 chemicals, is used to remove paint or other coatings, oils or
10292-16 grease, corrosion, or debris from a surface or to prepare a
10293-17 surface for a coating. "Public works" also includes all
10294-18 electric transmission systems projects subject to the Electric
10295-19 Transmission Systems Construction Standards Act. "Public
10296-20 works" does not include work done directly by any public
10297-21 utility company, whether or not done under public supervision
10298-22 or direction, or paid for wholly or in part out of public
10299-23 funds. "Public works" also includes construction projects
10300-24 performed by a third party contracted by any public utility,
10301-25 as described in subsection (a) of Section 2.1, in public
10302-26 rights-of-way, as defined in Section 21-201 of the Public
10303-
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10312- HB0587 Enrolled - 288 - LRB103 04172 CPF 49178 b
10313-1 Utilities Act, whether or not done under public supervision or
10314-2 direction, or paid for wholly or in part out of public funds.
10315-3 "Public works" also includes construction projects that exceed
10316-4 15 aggregate miles of new fiber optic cable, performed by a
10317-5 third party contracted by any public utility, as described in
10318-6 subsection (b) of Section 2.1, in public rights-of-way, as
10319-7 defined in Section 21-201 of the Public Utilities Act, whether
10320-8 or not done under public supervision or direction, or paid for
10321-9 wholly or in part out of public funds. "Public works" also
10322-10 includes any corrective action performed pursuant to Title XVI
10323-11 of the Environmental Protection Act for which payment from the
10324-12 Underground Storage Tank Fund is requested. "Public works"
10325-13 also includes all construction projects involving fixtures or
10326-14 permanent attachments affixed to light poles that are owned by
10327-15 a public body, including street light poles, traffic light
10328-16 poles, and other lighting fixtures, whether or not done under
10329-17 public supervision or direction, or paid for wholly or in part
10330-18 out of public funds, unless the project is performed by
10331-19 employees employed directly by the public body. "Public works"
10332-20 also includes work performed subject to the Mechanical
10333-21 Insulation Energy and Safety Assessment Act. "Public works"
10334-22 also includes the removal, hauling, and transportation of
10335-23 biosolids, lime sludge, and lime residue from a water
10336-24 treatment plant or facility and the disposal of biosolids,
10337-25 lime sludge, and lime residue removed from a water treatment
10338-26 plant or facility at a landfill. "Public works" does not
10339-
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10348- HB0587 Enrolled - 289 - LRB103 04172 CPF 49178 b
10349-1 include projects undertaken by the owner at an owner-occupied
10350-2 single-family residence or at an owner-occupied unit of a
10351-3 multi-family residence. "Public works" does not include work
10352-4 performed for soil and water conservation purposes on
10353-5 agricultural lands, whether or not done under public
10354-6 supervision or paid for wholly or in part out of public funds,
10355-7 done directly by an owner or person who has legal control of
10356-8 those lands.
10357-9 "Construction" means all work on public works involving
10358-10 laborers, workers or mechanics. This includes any maintenance,
10359-11 repair, assembly, or disassembly work performed on equipment
10360-12 whether owned, leased, or rented.
10361-13 "Locality" means the county where the physical work upon
10362-14 public works is performed, except (1) that if there is not
10363-15 available in the county a sufficient number of competent
10364-16 skilled laborers, workers and mechanics to construct the
10365-17 public works efficiently and properly, "locality" includes any
10366-18 other county nearest the one in which the work or construction
10367-19 is to be performed and from which such persons may be obtained
10368-20 in sufficient numbers to perform the work and (2) that, with
10369-21 respect to contracts for highway work with the Department of
10370-22 Transportation of this State, "locality" may at the discretion
10371-23 of the Secretary of the Department of Transportation be
10372-24 construed to include two or more adjacent counties from which
10373-25 workers may be accessible for work on such construction.
10374-26 "Public body" means the State or any officer, board or
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10376-
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10384- HB0587 Enrolled - 290 - LRB103 04172 CPF 49178 b
10385-1 commission of the State or any political subdivision or
10386-2 department thereof, or any institution supported in whole or
10387-3 in part by public funds, and includes every county, city,
10388-4 town, village, township, school district, irrigation, utility,
10389-5 reclamation improvement or other district and every other
10390-6 political subdivision, district or municipality of the state
10391-7 whether such political subdivision, municipality or district
10392-8 operates under a special charter or not.
10393-9 "Labor organization" means an organization that is the
10394-10 exclusive representative of an employer's employees recognized
10395-11 or certified pursuant to the National Labor Relations Act.
10396-12 The terms "general prevailing rate of hourly wages",
10397-13 "general prevailing rate of wages" or "prevailing rate of
10398-14 wages" when used in this Act mean the hourly cash wages plus
10399-15 annualized fringe benefits for training and apprenticeship
10400-16 programs approved by the U.S. Department of Labor, Bureau of
10401-17 Apprenticeship and Training, health and welfare, insurance,
10402-18 vacations and pensions paid generally, in the locality in
10403-19 which the work is being performed, to employees engaged in
10404-20 work of a similar character on public works.
10405-21 (Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
10406-22 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
10407-23 6-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
10408-24 eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
10409-25 103-605, eff. 7-1-24.)
10410-26 Section 99. Effective date. This Act takes effect upon
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