IL
Illinois House Bill HB1463

Illinois 2023-2024 Regular Session

Illinois House Bill HB1463 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1463 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency may qualify renewable energy credits associated with the electricity generated by a utility-scale wind energy facility or utility-scale photovoltaic facility and transmitted by a high voltage direct current transmission line (instead of a qualifying direct current project) to a delivery point on the electric transmission grid located in the State or a state adjacent to Illinois, if certain conditions are met. Amends the Public Utilities Act. Removes language that allows a qualifying direct current applicant that does not own, control, operate, or manage, within the State, any plant, equipment, or property used or to be used for the transmission of electricity at the time of its application or of the Illinois Commerce Commission's order to file an application for a certificate of public convenience and necessity on or before December 31, 2023. Removes language that allows the Commission to grant a certificate of public convenience and necessity to construct, operate, and maintain a qualifying direct current project. Effective immediately. LRB103 05819 AMQ 50839 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1463 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 20 ILCS 3855/1-75 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency may qualify renewable energy credits associated with the electricity generated by a utility-scale wind energy facility or utility-scale photovoltaic facility and transmitted by a high voltage direct current transmission line (instead of a qualifying direct current project) to a delivery point on the electric transmission grid located in the State or a state adjacent to Illinois, if certain conditions are met. Amends the Public Utilities Act. Removes language that allows a qualifying direct current applicant that does not own, control, operate, or manage, within the State, any plant, equipment, or property used or to be used for the transmission of electricity at the time of its application or of the Illinois Commerce Commission's order to file an application for a certificate of public convenience and necessity on or before December 31, 2023. Removes language that allows the Commission to grant a certificate of public convenience and necessity to construct, operate, and maintain a qualifying direct current project. Effective immediately. LRB103 05819 AMQ 50839 b LRB103 05819 AMQ 50839 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1463 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
33 20 ILCS 3855/1-75220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 20 ILCS 3855/1-75 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
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66 Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency may qualify renewable energy credits associated with the electricity generated by a utility-scale wind energy facility or utility-scale photovoltaic facility and transmitted by a high voltage direct current transmission line (instead of a qualifying direct current project) to a delivery point on the electric transmission grid located in the State or a state adjacent to Illinois, if certain conditions are met. Amends the Public Utilities Act. Removes language that allows a qualifying direct current applicant that does not own, control, operate, or manage, within the State, any plant, equipment, or property used or to be used for the transmission of electricity at the time of its application or of the Illinois Commerce Commission's order to file an application for a certificate of public convenience and necessity on or before December 31, 2023. Removes language that allows the Commission to grant a certificate of public convenience and necessity to construct, operate, and maintain a qualifying direct current project. Effective immediately.
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1212 1 AN ACT concerning regulation.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Illinois Power Agency Act is amended by
1616 5 changing Section 1-75 as follows:
1717 6 (20 ILCS 3855/1-75)
1818 7 Sec. 1-75. Planning and Procurement Bureau. The Planning
1919 8 and Procurement Bureau has the following duties and
2020 9 responsibilities:
2121 10 (a) The Planning and Procurement Bureau shall each year,
2222 11 beginning in 2008, develop procurement plans and conduct
2323 12 competitive procurement processes in accordance with the
2424 13 requirements of Section 16-111.5 of the Public Utilities Act
2525 14 for the eligible retail customers of electric utilities that
2626 15 on December 31, 2005 provided electric service to at least
2727 16 100,000 customers in Illinois. Beginning with the delivery
2828 17 year commencing on June 1, 2017, the Planning and Procurement
2929 18 Bureau shall develop plans and processes for the procurement
3030 19 of zero emission credits from zero emission facilities in
3131 20 accordance with the requirements of subsection (d-5) of this
3232 21 Section. Beginning on the effective date of this amendatory
3333 22 Act of the 102nd General Assembly, the Planning and
3434 23 Procurement Bureau shall develop plans and processes for the
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1463 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
3939 20 ILCS 3855/1-75220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406 20 ILCS 3855/1-75 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
4040 20 ILCS 3855/1-75
4141 220 ILCS 5/8-406 from Ch. 111 2/3, par. 8-406
4242 Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency may qualify renewable energy credits associated with the electricity generated by a utility-scale wind energy facility or utility-scale photovoltaic facility and transmitted by a high voltage direct current transmission line (instead of a qualifying direct current project) to a delivery point on the electric transmission grid located in the State or a state adjacent to Illinois, if certain conditions are met. Amends the Public Utilities Act. Removes language that allows a qualifying direct current applicant that does not own, control, operate, or manage, within the State, any plant, equipment, or property used or to be used for the transmission of electricity at the time of its application or of the Illinois Commerce Commission's order to file an application for a certificate of public convenience and necessity on or before December 31, 2023. Removes language that allows the Commission to grant a certificate of public convenience and necessity to construct, operate, and maintain a qualifying direct current project. Effective immediately.
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7171 1 procurement of carbon mitigation credits from carbon-free
7272 2 energy resources in accordance with the requirements of
7373 3 subsection (d-10) of this Section. The Planning and
7474 4 Procurement Bureau shall also develop procurement plans and
7575 5 conduct competitive procurement processes in accordance with
7676 6 the requirements of Section 16-111.5 of the Public Utilities
7777 7 Act for the eligible retail customers of small
7878 8 multi-jurisdictional electric utilities that (i) on December
7979 9 31, 2005 served less than 100,000 customers in Illinois and
8080 10 (ii) request a procurement plan for their Illinois
8181 11 jurisdictional load. This Section shall not apply to a small
8282 12 multi-jurisdictional utility until such time as a small
8383 13 multi-jurisdictional utility requests the Agency to prepare a
8484 14 procurement plan for their Illinois jurisdictional load. For
8585 15 the purposes of this Section, the term "eligible retail
8686 16 customers" has the same definition as found in Section
8787 17 16-111.5(a) of the Public Utilities Act.
8888 18 Beginning with the plan or plans to be implemented in the
8989 19 2017 delivery year, the Agency shall no longer include the
9090 20 procurement of renewable energy resources in the annual
9191 21 procurement plans required by this subsection (a), except as
9292 22 provided in subsection (q) of Section 16-111.5 of the Public
9393 23 Utilities Act, and shall instead develop a long-term renewable
9494 24 resources procurement plan in accordance with subsection (c)
9595 25 of this Section and Section 16-111.5 of the Public Utilities
9696 26 Act.
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107107 1 In accordance with subsection (c-5) of this Section, the
108108 2 Planning and Procurement Bureau shall oversee the procurement
109109 3 by electric utilities that served more than 300,000 retail
110110 4 customers in this State as of January 1, 2019 of renewable
111111 5 energy credits from new utility-scale solar projects to be
112112 6 installed, along with energy storage facilities, at or
113113 7 adjacent to the sites of electric generating facilities that,
114114 8 as of January 1, 2016, burned coal as their primary fuel
115115 9 source.
116116 10 (1) The Agency shall each year, beginning in 2008, as
117117 11 needed, issue a request for qualifications for experts or
118118 12 expert consulting firms to develop the procurement plans
119119 13 in accordance with Section 16-111.5 of the Public
120120 14 Utilities Act. In order to qualify an expert or expert
121121 15 consulting firm must have:
122122 16 (A) direct previous experience assembling
123123 17 large-scale power supply plans or portfolios for
124124 18 end-use customers;
125125 19 (B) an advanced degree in economics, mathematics,
126126 20 engineering, risk management, or a related area of
127127 21 study;
128128 22 (C) 10 years of experience in the electricity
129129 23 sector, including managing supply risk;
130130 24 (D) expertise in wholesale electricity market
131131 25 rules, including those established by the Federal
132132 26 Energy Regulatory Commission and regional transmission
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143143 1 organizations;
144144 2 (E) expertise in credit protocols and familiarity
145145 3 with contract protocols;
146146 4 (F) adequate resources to perform and fulfill the
147147 5 required functions and responsibilities; and
148148 6 (G) the absence of a conflict of interest and
149149 7 inappropriate bias for or against potential bidders or
150150 8 the affected electric utilities.
151151 9 (2) The Agency shall each year, as needed, issue a
152152 10 request for qualifications for a procurement administrator
153153 11 to conduct the competitive procurement processes in
154154 12 accordance with Section 16-111.5 of the Public Utilities
155155 13 Act. In order to qualify an expert or expert consulting
156156 14 firm must have:
157157 15 (A) direct previous experience administering a
158158 16 large-scale competitive procurement process;
159159 17 (B) an advanced degree in economics, mathematics,
160160 18 engineering, or a related area of study;
161161 19 (C) 10 years of experience in the electricity
162162 20 sector, including risk management experience;
163163 21 (D) expertise in wholesale electricity market
164164 22 rules, including those established by the Federal
165165 23 Energy Regulatory Commission and regional transmission
166166 24 organizations;
167167 25 (E) expertise in credit and contract protocols;
168168 26 (F) adequate resources to perform and fulfill the
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179179 1 required functions and responsibilities; and
180180 2 (G) the absence of a conflict of interest and
181181 3 inappropriate bias for or against potential bidders or
182182 4 the affected electric utilities.
183183 5 (3) The Agency shall provide affected utilities and
184184 6 other interested parties with the lists of qualified
185185 7 experts or expert consulting firms identified through the
186186 8 request for qualifications processes that are under
187187 9 consideration to develop the procurement plans and to
188188 10 serve as the procurement administrator. The Agency shall
189189 11 also provide each qualified expert's or expert consulting
190190 12 firm's response to the request for qualifications. All
191191 13 information provided under this subparagraph shall also be
192192 14 provided to the Commission. The Agency may provide by rule
193193 15 for fees associated with supplying the information to
194194 16 utilities and other interested parties. These parties
195195 17 shall, within 5 business days, notify the Agency in
196196 18 writing if they object to any experts or expert consulting
197197 19 firms on the lists. Objections shall be based on:
198198 20 (A) failure to satisfy qualification criteria;
199199 21 (B) identification of a conflict of interest; or
200200 22 (C) evidence of inappropriate bias for or against
201201 23 potential bidders or the affected utilities.
202202 24 The Agency shall remove experts or expert consulting
203203 25 firms from the lists within 10 days if there is a
204204 26 reasonable basis for an objection and provide the updated
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215215 1 lists to the affected utilities and other interested
216216 2 parties. If the Agency fails to remove an expert or expert
217217 3 consulting firm from a list, an objecting party may seek
218218 4 review by the Commission within 5 days thereafter by
219219 5 filing a petition, and the Commission shall render a
220220 6 ruling on the petition within 10 days. There is no right of
221221 7 appeal of the Commission's ruling.
222222 8 (4) The Agency shall issue requests for proposals to
223223 9 the qualified experts or expert consulting firms to
224224 10 develop a procurement plan for the affected utilities and
225225 11 to serve as procurement administrator.
226226 12 (5) The Agency shall select an expert or expert
227227 13 consulting firm to develop procurement plans based on the
228228 14 proposals submitted and shall award contracts of up to 5
229229 15 years to those selected.
230230 16 (6) The Agency shall select an expert or expert
231231 17 consulting firm, with approval of the Commission, to serve
232232 18 as procurement administrator based on the proposals
233233 19 submitted. If the Commission rejects, within 5 days, the
234234 20 Agency's selection, the Agency shall submit another
235235 21 recommendation within 3 days based on the proposals
236236 22 submitted. The Agency shall award a 5-year contract to the
237237 23 expert or expert consulting firm so selected with
238238 24 Commission approval.
239239 25 (b) The experts or expert consulting firms retained by the
240240 26 Agency shall, as appropriate, prepare procurement plans, and
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251251 1 conduct a competitive procurement process as prescribed in
252252 2 Section 16-111.5 of the Public Utilities Act, to ensure
253253 3 adequate, reliable, affordable, efficient, and environmentally
254254 4 sustainable electric service at the lowest total cost over
255255 5 time, taking into account any benefits of price stability, for
256256 6 eligible retail customers of electric utilities that on
257257 7 December 31, 2005 provided electric service to at least
258258 8 100,000 customers in the State of Illinois, and for eligible
259259 9 Illinois retail customers of small multi-jurisdictional
260260 10 electric utilities that (i) on December 31, 2005 served less
261261 11 than 100,000 customers in Illinois and (ii) request a
262262 12 procurement plan for their Illinois jurisdictional load.
263263 13 (c) Renewable portfolio standard.
264264 14 (1)(A) The Agency shall develop a long-term renewable
265265 15 resources procurement plan that shall include procurement
266266 16 programs and competitive procurement events necessary to
267267 17 meet the goals set forth in this subsection (c). The
268268 18 initial long-term renewable resources procurement plan
269269 19 shall be released for comment no later than 160 days after
270270 20 June 1, 2017 (the effective date of Public Act 99-906).
271271 21 The Agency shall review, and may revise on an expedited
272272 22 basis, the long-term renewable resources procurement plan
273273 23 at least every 2 years, which shall be conducted in
274274 24 conjunction with the procurement plan under Section
275275 25 16-111.5 of the Public Utilities Act to the extent
276276 26 practicable to minimize administrative expense. No later
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287287 1 than 120 days after the effective date of this amendatory
288288 2 Act of the 102nd General Assembly, the Agency shall
289289 3 release for comment a revision to the long-term renewable
290290 4 resources procurement plan, updating elements of the most
291291 5 recently approved plan as needed to comply with this
292292 6 amendatory Act of the 102nd General Assembly, and any
293293 7 long-term renewable resources procurement plan update
294294 8 published by the Agency but not yet approved by the
295295 9 Illinois Commerce Commission shall be withdrawn. The
296296 10 long-term renewable resources procurement plans shall be
297297 11 subject to review and approval by the Commission under
298298 12 Section 16-111.5 of the Public Utilities Act.
299299 13 (B) Subject to subparagraph (F) of this paragraph (1),
300300 14 the long-term renewable resources procurement plan shall
301301 15 attempt to meet the goals for procurement of renewable
302302 16 energy credits at levels of at least the following overall
303303 17 percentages: 13% by the 2017 delivery year; increasing by
304304 18 at least 1.5% each delivery year thereafter to at least
305305 19 25% by the 2025 delivery year; increasing by at least 3%
306306 20 each delivery year thereafter to at least 40% by the 2030
307307 21 delivery year, and continuing at no less than 40% for each
308308 22 delivery year thereafter. The Agency shall attempt to
309309 23 procure 50% by delivery year 2040. The Agency shall
310310 24 determine the annual increase between delivery year 2030
311311 25 and delivery year 2040, if any, taking into account energy
312312 26 demand, other energy resources, and other public policy
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323323 1 goals. In the event of a conflict between these goals and
324324 2 the new wind and new photovoltaic procurement requirements
325325 3 described in items (i) through (iii) of subparagraph (C)
326326 4 of this paragraph (1), the long-term plan shall prioritize
327327 5 compliance with the new wind and new photovoltaic
328328 6 procurement requirements described in items (i) through
329329 7 (iii) of subparagraph (C) of this paragraph (1) over the
330330 8 annual percentage targets described in this subparagraph
331331 9 (B). The Agency shall not comply with the annual
332332 10 percentage targets described in this subparagraph (B) by
333333 11 procuring renewable energy credits that are unlikely to
334334 12 lead to the development of new renewable resources.
335335 13 For the delivery year beginning June 1, 2017, the
336336 14 procurement plan shall attempt to include, subject to the
337337 15 prioritization outlined in this subparagraph (B),
338338 16 cost-effective renewable energy resources equal to at
339339 17 least 13% of each utility's load for eligible retail
340340 18 customers and 13% of the applicable portion of each
341341 19 utility's load for retail customers who are not eligible
342342 20 retail customers, which applicable portion shall equal 50%
343343 21 of the utility's load for retail customers who are not
344344 22 eligible retail customers on February 28, 2017.
345345 23 For the delivery year beginning June 1, 2018, the
346346 24 procurement plan shall attempt to include, subject to the
347347 25 prioritization outlined in this subparagraph (B),
348348 26 cost-effective renewable energy resources equal to at
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359359 1 least 14.5% of each utility's load for eligible retail
360360 2 customers and 14.5% of the applicable portion of each
361361 3 utility's load for retail customers who are not eligible
362362 4 retail customers, which applicable portion shall equal 75%
363363 5 of the utility's load for retail customers who are not
364364 6 eligible retail customers on February 28, 2017.
365365 7 For the delivery year beginning June 1, 2019, and for
366366 8 each year thereafter, the procurement plans shall attempt
367367 9 to include, subject to the prioritization outlined in this
368368 10 subparagraph (B), cost-effective renewable energy
369369 11 resources equal to a minimum percentage of each utility's
370370 12 load for all retail customers as follows: 16% by June 1,
371371 13 2019; increasing by 1.5% each year thereafter to 25% by
372372 14 June 1, 2025; and 25% by June 1, 2026; increasing by at
373373 15 least 3% each delivery year thereafter to at least 40% by
374374 16 the 2030 delivery year, and continuing at no less than 40%
375375 17 for each delivery year thereafter. The Agency shall
376376 18 attempt to procure 50% by delivery year 2040. The Agency
377377 19 shall determine the annual increase between delivery year
378378 20 2030 and delivery year 2040, if any, taking into account
379379 21 energy demand, other energy resources, and other public
380380 22 policy goals.
381381 23 For each delivery year, the Agency shall first
382382 24 recognize each utility's obligations for that delivery
383383 25 year under existing contracts. Any renewable energy
384384 26 credits under existing contracts, including renewable
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395395 1 energy credits as part of renewable energy resources,
396396 2 shall be used to meet the goals set forth in this
397397 3 subsection (c) for the delivery year.
398398 4 (C) The long-term renewable resources procurement plan
399399 5 described in subparagraph (A) of this paragraph (1) shall
400400 6 include the procurement of renewable energy credits from
401401 7 new projects in amounts equal to at least the following:
402402 8 (i) 10,000,000 renewable energy credits delivered
403403 9 annually by the end of the 2021 delivery year, and
404404 10 increasing ratably to reach 45,000,000 renewable
405405 11 energy credits delivered annually from new wind and
406406 12 solar projects by the end of delivery year 2030 such
407407 13 that the goals in subparagraph (B) of this paragraph
408408 14 (1) are met entirely by procurements of renewable
409409 15 energy credits from new wind and photovoltaic
410410 16 projects. Of that amount, to the extent possible, the
411411 17 Agency shall procure 45% from wind projects and 55%
412412 18 from photovoltaic projects. Of the amount to be
413413 19 procured from photovoltaic projects, the Agency shall
414414 20 procure: at least 50% from solar photovoltaic projects
415415 21 using the program outlined in subparagraph (K) of this
416416 22 paragraph (1) from distributed renewable energy
417417 23 generation devices or community renewable generation
418418 24 projects; at least 47% from utility-scale solar
419419 25 projects; at least 3% from brownfield site
420420 26 photovoltaic projects that are not community renewable
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431431 1 generation projects.
432432 2 In developing the long-term renewable resources
433433 3 procurement plan, the Agency shall consider other
434434 4 approaches, in addition to competitive procurements,
435435 5 that can be used to procure renewable energy credits
436436 6 from brownfield site photovoltaic projects and thereby
437437 7 help return blighted or contaminated land to
438438 8 productive use while enhancing public health and the
439439 9 well-being of Illinois residents, including those in
440440 10 environmental justice communities, as defined using
441441 11 existing methodologies and findings used by the Agency
442442 12 and its Administrator in its Illinois Solar for All
443443 13 Program.
444444 14 (ii) In any given delivery year, if forecasted
445445 15 expenses are less than the maximum budget available
446446 16 under subparagraph (E) of this paragraph (1), the
447447 17 Agency shall continue to procure new renewable energy
448448 18 credits until that budget is exhausted in the manner
449449 19 outlined in item (i) of this subparagraph (C).
450450 20 (iii) For purposes of this Section:
451451 21 "New wind projects" means wind renewable energy
452452 22 facilities that are energized after June 1, 2017 for
453453 23 the delivery year commencing June 1, 2017.
454454 24 "New photovoltaic projects" means photovoltaic
455455 25 renewable energy facilities that are energized after
456456 26 June 1, 2017. Photovoltaic projects developed under
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467467 1 Section 1-56 of this Act shall not apply towards the
468468 2 new photovoltaic project requirements in this
469469 3 subparagraph (C).
470470 4 For purposes of calculating whether the Agency has
471471 5 procured enough new wind and solar renewable energy
472472 6 credits required by this subparagraph (C), renewable
473473 7 energy facilities that have a multi-year renewable
474474 8 energy credit delivery contract with the utility
475475 9 through at least delivery year 2030 shall be
476476 10 considered new, however no renewable energy credits
477477 11 from contracts entered into before June 1, 2021 shall
478478 12 be used to calculate whether the Agency has procured
479479 13 the correct proportion of new wind and new solar
480480 14 contracts described in this subparagraph (C) for
481481 15 delivery year 2021 and thereafter.
482482 16 (D) Renewable energy credits shall be cost effective.
483483 17 For purposes of this subsection (c), "cost effective"
484484 18 means that the costs of procuring renewable energy
485485 19 resources do not cause the limit stated in subparagraph
486486 20 (E) of this paragraph (1) to be exceeded and, for
487487 21 renewable energy credits procured through a competitive
488488 22 procurement event, do not exceed benchmarks based on
489489 23 market prices for like products in the region. For
490490 24 purposes of this subsection (c), "like products" means
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492492 26 substantially similar technology, same or substantially
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503503 1 similar vintage (new or existing), the same or
504504 2 substantially similar quantity, and the same or
505505 3 substantially similar contract length and structure.
506506 4 Benchmarks shall reflect development, financing, or
507507 5 related costs resulting from requirements imposed through
508508 6 other provisions of State law, including, but not limited
509509 7 to, requirements in subparagraphs (P) and (Q) of this
510510 8 paragraph (1) and the Renewable Energy Facilities
511511 9 Agricultural Impact Mitigation Act. Confidential
512512 10 benchmarks shall be developed by the procurement
513513 11 administrator, in consultation with the Commission staff,
514514 12 Agency staff, and the procurement monitor and shall be
515515 13 subject to Commission review and approval. If price
516516 14 benchmarks for like products in the region are not
517517 15 available, the procurement administrator shall establish
518518 16 price benchmarks based on publicly available data on
519519 17 regional technology costs and expected current and future
520520 18 regional energy prices. The benchmarks in this Section
521521 19 shall not be used to curtail or otherwise reduce
522522 20 contractual obligations entered into by or through the
523523 21 Agency prior to June 1, 2017 (the effective date of Public
524524 22 Act 99-906).
525525 23 (E) For purposes of this subsection (c), the required
526526 24 procurement of cost-effective renewable energy resources
527527 25 for a particular year commencing prior to June 1, 2017
528528 26 shall be measured as a percentage of the actual amount of
529529
530530
531531
532532
533533
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535535
536536
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538538 HB1463 - 15 - LRB103 05819 AMQ 50839 b
539539 1 electricity (megawatt-hours) supplied by the electric
540540 2 utility to eligible retail customers in the delivery year
541541 3 ending immediately prior to the procurement, and, for
542542 4 delivery years commencing on and after June 1, 2017, the
543543 5 required procurement of cost-effective renewable energy
544544 6 resources for a particular year shall be measured as a
545545 7 percentage of the actual amount of electricity
546546 8 (megawatt-hours) delivered by the electric utility in the
547547 9 delivery year ending immediately prior to the procurement,
548548 10 to all retail customers in its service territory. For
549549 11 purposes of this subsection (c), the amount paid per
550550 12 kilowatthour means the total amount paid for electric
551551 13 service expressed on a per kilowatthour basis. For
552552 14 purposes of this subsection (c), the total amount paid for
553553 15 electric service includes without limitation amounts paid
554554 16 for supply, transmission, capacity, distribution,
555555 17 surcharges, and add-on taxes.
556556 18 Notwithstanding the requirements of this subsection
557557 19 (c), the total of renewable energy resources procured
558558 20 under the procurement plan for any single year shall be
559559 21 subject to the limitations of this subparagraph (E). Such
560560 22 procurement shall be reduced for all retail customers
561561 23 based on the amount necessary to limit the annual
562562 24 estimated average net increase due to the costs of these
563563 25 resources included in the amounts paid by eligible retail
564564 26 customers in connection with electric service to no more
565565
566566
567567
568568
569569
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571571
572572
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574574 HB1463 - 16 - LRB103 05819 AMQ 50839 b
575575 1 than 4.25% of the amount paid per kilowatthour by those
576576 2 customers during the year ending May 31, 2009. To arrive
577577 3 at a maximum dollar amount of renewable energy resources
578578 4 to be procured for the particular delivery year, the
579579 5 resulting per kilowatthour amount shall be applied to the
580580 6 actual amount of kilowatthours of electricity delivered,
581581 7 or applicable portion of such amount as specified in
582582 8 paragraph (1) of this subsection (c), as applicable, by
583583 9 the electric utility in the delivery year immediately
584584 10 prior to the procurement to all retail customers in its
585585 11 service territory. The calculations required by this
586586 12 subparagraph (E) shall be made only once for each delivery
587587 13 year at the time that the renewable energy resources are
588588 14 procured. Once the determination as to the amount of
589589 15 renewable energy resources to procure is made based on the
590590 16 calculations set forth in this subparagraph (E) and the
591591 17 contracts procuring those amounts are executed, no
592592 18 subsequent rate impact determinations shall be made and no
593593 19 adjustments to those contract amounts shall be allowed.
594594 20 All costs incurred under such contracts shall be fully
595595 21 recoverable by the electric utility as provided in this
596596 22 Section.
597597 23 (F) If the limitation on the amount of renewable
598598 24 energy resources procured in subparagraph (E) of this
599599 25 paragraph (1) prevents the Agency from meeting all of the
600600 26 goals in this subsection (c), the Agency's long-term plan
601601
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607607
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610610 HB1463 - 17 - LRB103 05819 AMQ 50839 b
611611 1 shall prioritize compliance with the requirements of this
612612 2 subsection (c) regarding renewable energy credits in the
613613 3 following order:
614614 4 (i) renewable energy credits under existing
615615 5 contractual obligations as of June 1, 2021;
616616 6 (i-5) funding for the Illinois Solar for All
617617 7 Program, as described in subparagraph (O) of this
618618 8 paragraph (1);
619619 9 (ii) renewable energy credits necessary to comply
620620 10 with the new wind and new photovoltaic procurement
621621 11 requirements described in items (i) through (iii) of
622622 12 subparagraph (C) of this paragraph (1); and
623623 13 (iii) renewable energy credits necessary to meet
624624 14 the remaining requirements of this subsection (c).
625625 15 (G) The following provisions shall apply to the
626626 16 Agency's procurement of renewable energy credits under
627627 17 this subsection (c):
628628 18 (i) Notwithstanding whether a long-term renewable
629629 19 resources procurement plan has been approved, the
630630 20 Agency shall conduct an initial forward procurement
631631 21 for renewable energy credits from new utility-scale
632632 22 wind projects within 160 days after June 1, 2017 (the
633633 23 effective date of Public Act 99-906). For the purposes
634634 24 of this initial forward procurement, the Agency shall
635635 25 solicit 15-year contracts for delivery of 1,000,000
636636 26 renewable energy credits delivered annually from new
637637
638638
639639
640640
641641
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643643
644644
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646646 HB1463 - 18 - LRB103 05819 AMQ 50839 b
647647 1 utility-scale wind projects to begin delivery on June
648648 2 1, 2019, if available, but not later than June 1, 2021,
649649 3 unless the project has delays in the establishment of
650650 4 an operating interconnection with the applicable
651651 5 transmission or distribution system as a result of the
652652 6 actions or inactions of the transmission or
653653 7 distribution provider, or other causes for force
654654 8 majeure as outlined in the procurement contract, in
655655 9 which case, not later than June 1, 2022. Payments to
656656 10 suppliers of renewable energy credits shall commence
657657 11 upon delivery. Renewable energy credits procured under
658658 12 this initial procurement shall be included in the
659659 13 Agency's long-term plan and shall apply to all
660660 14 renewable energy goals in this subsection (c).
661661 15 (ii) Notwithstanding whether a long-term renewable
662662 16 resources procurement plan has been approved, the
663663 17 Agency shall conduct an initial forward procurement
664664 18 for renewable energy credits from new utility-scale
665665 19 solar projects and brownfield site photovoltaic
666666 20 projects within one year after June 1, 2017 (the
667667 21 effective date of Public Act 99-906). For the purposes
668668 22 of this initial forward procurement, the Agency shall
669669 23 solicit 15-year contracts for delivery of 1,000,000
670670 24 renewable energy credits delivered annually from new
671671 25 utility-scale solar projects and brownfield site
672672 26 photovoltaic projects to begin delivery on June 1,
673673
674674
675675
676676
677677
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679679
680680
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682682 HB1463 - 19 - LRB103 05819 AMQ 50839 b
683683 1 2019, if available, but not later than June 1, 2021,
684684 2 unless the project has delays in the establishment of
685685 3 an operating interconnection with the applicable
686686 4 transmission or distribution system as a result of the
687687 5 actions or inactions of the transmission or
688688 6 distribution provider, or other causes for force
689689 7 majeure as outlined in the procurement contract, in
690690 8 which case, not later than June 1, 2022. The Agency may
691691 9 structure this initial procurement in one or more
692692 10 discrete procurement events. Payments to suppliers of
693693 11 renewable energy credits shall commence upon delivery.
694694 12 Renewable energy credits procured under this initial
695695 13 procurement shall be included in the Agency's
696696 14 long-term plan and shall apply to all renewable energy
697697 15 goals in this subsection (c).
698698 16 (iii) Notwithstanding whether the Commission has
699699 17 approved the periodic long-term renewable resources
700700 18 procurement plan revision described in Section
701701 19 16-111.5 of the Public Utilities Act, the Agency shall
702702 20 conduct at least one subsequent forward procurement
703703 21 for renewable energy credits from new utility-scale
704704 22 wind projects, new utility-scale solar projects, and
705705 23 new brownfield site photovoltaic projects within 240
706706 24 days after the effective date of this amendatory Act
707707 25 of the 102nd General Assembly in quantities necessary
708708 26 to meet the requirements of subparagraph (C) of this
709709
710710
711711
712712
713713
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715715
716716
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718718 HB1463 - 20 - LRB103 05819 AMQ 50839 b
719719 1 paragraph (1) through the delivery year beginning June
720720 2 1, 2021.
721721 3 (iv) Notwithstanding whether the Commission has
722722 4 approved the periodic long-term renewable resources
723723 5 procurement plan revision described in Section
724724 6 16-111.5 of the Public Utilities Act, the Agency shall
725725 7 open capacity for each category in the Adjustable
726726 8 Block program within 90 days after the effective date
727727 9 of this amendatory Act of the 102nd General Assembly
728728 10 manner:
729729 11 (1) The Agency shall open the first block of
730730 12 annual capacity for the category described in item
731731 13 (i) of subparagraph (K) of this paragraph (1). The
732732 14 first block of annual capacity for item (i) shall
733733 15 be for at least 75 megawatts of total nameplate
734734 16 capacity. The price of the renewable energy credit
735735 17 for this block of capacity shall be 4% less than
736736 18 the price of the last open block in this category.
737737 19 Projects on a waitlist shall be awarded contracts
738738 20 first in the order in which they appear on the
739739 21 waitlist. Notwithstanding anything to the
740740 22 contrary, for those renewable energy credits that
741741 23 qualify and are procured under this subitem (1) of
742742 24 this item (iv), the renewable energy credit
743743 25 delivery contract value shall be paid in full,
744744 26 based on the estimated generation during the first
745745
746746
747747
748748
749749
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751751
752752
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754754 HB1463 - 21 - LRB103 05819 AMQ 50839 b
755755 1 15 years of operation, by the contracting
756756 2 utilities at the time that the facility producing
757757 3 the renewable energy credits is interconnected at
758758 4 the distribution system level of the utility and
759759 5 verified as energized and in compliance by the
760760 6 Program Administrator. The electric utility shall
761761 7 receive and retire all renewable energy credits
762762 8 generated by the project for the first 15 years of
763763 9 operation. Renewable energy credits generated by
764764 10 the project thereafter shall not be transferred
765765 11 under the renewable energy credit delivery
766766 12 contract with the counterparty electric utility.
767767 13 (2) The Agency shall open the first block of
768768 14 annual capacity for the category described in item
769769 15 (ii) of subparagraph (K) of this paragraph (1).
770770 16 The first block of annual capacity for item (ii)
771771 17 shall be for at least 75 megawatts of total
772772 18 nameplate capacity.
773773 19 (A) The price of the renewable energy
774774 20 credit for any project on a waitlist for this
775775 21 category before the opening of this block
776776 22 shall be 4% less than the price of the last
777777 23 open block in this category. Projects on the
778778 24 waitlist shall be awarded contracts first in
779779 25 the order in which they appear on the
780780 26 waitlist. Any projects that are less than or
781781
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783783
784784
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787787
788788
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790790 HB1463 - 22 - LRB103 05819 AMQ 50839 b
791791 1 equal to 25 kilowatts in size on the waitlist
792792 2 for this capacity shall be moved to the
793793 3 waitlist for paragraph (1) of this item (iv).
794794 4 Notwithstanding anything to the contrary,
795795 5 projects that were on the waitlist prior to
796796 6 opening of this block shall not be required to
797797 7 be in compliance with the requirements of
798798 8 subparagraph (Q) of this paragraph (1) of this
799799 9 subsection (c). Notwithstanding anything to
800800 10 the contrary, for those renewable energy
801801 11 credits procured from projects that were on
802802 12 the waitlist for this category before the
803803 13 opening of this block 20% of the renewable
804804 14 energy credit delivery contract value, based
805805 15 on the estimated generation during the first
806806 16 15 years of operation, shall be paid by the
807807 17 contracting utilities at the time that the
808808 18 facility producing the renewable energy
809809 19 credits is interconnected at the distribution
810810 20 system level of the utility and verified as
811811 21 energized by the Program Administrator. The
812812 22 remaining portion shall be paid ratably over
813813 23 the subsequent 4-year period. The electric
814814 24 utility shall receive and retire all renewable
815815 25 energy credits generated by the project during
816816 26 the first 15 years of operation. Renewable
817817
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819819
820820
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823823
824824
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826826 HB1463 - 23 - LRB103 05819 AMQ 50839 b
827827 1 energy credits generated by the project
828828 2 thereafter shall not be transferred under the
829829 3 renewable energy credit delivery contract with
830830 4 the counterparty electric utility.
831831 5 (B) The price of renewable energy credits
832832 6 for any project not on the waitlist for this
833833 7 category before the opening of the block shall
834834 8 be determined and published by the Agency.
835835 9 Projects not on a waitlist as of the opening
836836 10 of this block shall be subject to the
837837 11 requirements of subparagraph (Q) of this
838838 12 paragraph (1), as applicable. Projects not on
839839 13 a waitlist as of the opening of this block
840840 14 shall be subject to the contract provisions
841841 15 outlined in item (iii) of subparagraph (L) of
842842 16 this paragraph (1). The Agency shall strive to
843843 17 publish updated prices and an updated
844844 18 renewable energy credit delivery contract as
845845 19 quickly as possible.
846846 20 (3) For opening the first 2 blocks of annual
847847 21 capacity for projects participating in item (iii)
848848 22 of subparagraph (K) of paragraph (1) of subsection
849849 23 (c), projects shall be selected exclusively from
850850 24 those projects on the ordinal waitlists of
851851 25 community renewable generation projects
852852 26 established by the Agency based on the status of
853853
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859859
860860
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863863 1 those ordinal waitlists as of December 31, 2020,
864864 2 and only those projects previously determined to
865865 3 be eligible for the Agency's April 2019 community
866866 4 solar project selection process.
867867 5 The first 2 blocks of annual capacity for item
868868 6 (iii) shall be for 250 megawatts of total
869869 7 nameplate capacity, with both blocks opening
870870 8 simultaneously under the schedule outlined in the
871871 9 paragraphs below. Projects shall be selected as
872872 10 follows:
873873 11 (A) The geographic balance of selected
874874 12 projects shall follow the Group classification
875875 13 found in the Agency's Revised Long-Term
876876 14 Renewable Resources Procurement Plan, with 70%
877877 15 of capacity allocated to projects on the Group
878878 16 B waitlist and 30% of capacity allocated to
879879 17 projects on the Group A waitlist.
880880 18 (B) Contract awards for waitlisted
881881 19 projects shall be allocated proportionate to
882882 20 the total nameplate capacity amount across
883883 21 both ordinal waitlists associated with that
884884 22 applicant firm or its affiliates, subject to
885885 23 the following conditions.
886886 24 (i) Each applicant firm having a
887887 25 waitlisted project eligible for selection
888888 26 shall receive no less than 500 kilowatts
889889
890890
891891
892892
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895895
896896
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899899 1 in awarded capacity across all groups, and
900900 2 no approved vendor may receive more than
901901 3 20% of each Group's waitlist allocation.
902902 4 (ii) Each applicant firm, upon
903903 5 receiving an award of program capacity
904904 6 proportionate to its waitlisted capacity,
905905 7 may then determine which waitlisted
906906 8 projects it chooses to be selected for a
907907 9 contract award up to that capacity amount.
908908 10 (iii) Assuming all other program
909909 11 requirements are met, applicant firms may
910910 12 adjust the nameplate capacity of applicant
911911 13 projects without losing waitlist
912912 14 eligibility, so long as no project is
913913 15 greater than 2,000 kilowatts in size.
914914 16 (iv) Assuming all other program
915915 17 requirements are met, applicant firms may
916916 18 adjust the expected production associated
917917 19 with applicant projects, subject to
918918 20 verification by the Program Administrator.
919919 21 (C) After a review of affiliate
920920 22 information and the current ordinal waitlists,
921921 23 the Agency shall announce the nameplate
922922 24 capacity award amounts associated with
923923 25 applicant firms no later than 90 days after
924924 26 the effective date of this amendatory Act of
925925
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935935 1 the 102nd General Assembly.
936936 2 (D) Applicant firms shall submit their
937937 3 portfolio of projects used to satisfy those
938938 4 contract awards no less than 90 days after the
939939 5 Agency's announcement. The total nameplate
940940 6 capacity of all projects used to satisfy that
941941 7 portfolio shall be no greater than the
942942 8 Agency's nameplate capacity award amount
943943 9 associated with that applicant firm. An
944944 10 applicant firm may decline, in whole or in
945945 11 part, its nameplate capacity award without
946946 12 penalty, with such unmet capacity rolled over
947947 13 to the next block opening for project
948948 14 selection under item (iii) of subparagraph (K)
949949 15 of this subsection (c). Any projects not
950950 16 included in an applicant firm's portfolio may
951951 17 reapply without prejudice upon the next block
952952 18 reopening for project selection under item
953953 19 (iii) of subparagraph (K) of this subsection
954954 20 (c).
955955 21 (E) The renewable energy credit delivery
956956 22 contract shall be subject to the contract and
957957 23 payment terms outlined in item (iv) of
958958 24 subparagraph (L) of this subsection (c).
959959 25 Contract instruments used for this
960960 26 subparagraph shall contain the following
961961
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963963
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970970 HB1463 - 27 - LRB103 05819 AMQ 50839 b
971971 1 terms:
972972 2 (i) Renewable energy credit prices
973973 3 shall be fixed, without further adjustment
974974 4 under any other provision of this Act or
975975 5 for any other reason, at 10% lower than
976976 6 prices applicable to the last open block
977977 7 for this category, inclusive of any adders
978978 8 available for achieving a minimum of 50%
979979 9 of subscribers to the project's nameplate
980980 10 capacity being residential or small
981981 11 commercial customers with subscriptions of
982982 12 below 25 kilowatts in size;
983983 13 (ii) A requirement that a minimum of
984984 14 50% of subscribers to the project's
985985 15 nameplate capacity be residential or small
986986 16 commercial customers with subscriptions of
987987 17 below 25 kilowatts in size;
988988 18 (iii) Permission for the ability of a
989989 19 contract holder to substitute projects
990990 20 with other waitlisted projects without
991991 21 penalty should a project receive a
992992 22 non-binding estimate of costs to construct
993993 23 the interconnection facilities and any
994994 24 required distribution upgrades associated
995995 25 with that project of greater than 30 cents
996996 26 per watt AC of that project's nameplate
997997
998998
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10061006 HB1463 - 28 - LRB103 05819 AMQ 50839 b
10071007 1 capacity. In developing the applicable
10081008 2 contract instrument, the Agency may
10091009 3 consider whether other circumstances
10101010 4 outside of the control of the applicant
10111011 5 firm should also warrant project
10121012 6 substitution rights.
10131013 7 The Agency shall publish a finalized
10141014 8 updated renewable energy credit delivery
10151015 9 contract developed consistent with these terms
10161016 10 and conditions no less than 30 days before
10171017 11 applicant firms must submit their portfolio of
10181018 12 projects pursuant to item (D).
10191019 13 (F) To be eligible for an award, the
10201020 14 applicant firm shall certify that not less
10211021 15 than prevailing wage, as determined pursuant
10221022 16 to the Illinois Prevailing Wage Act, was or
10231023 17 will be paid to employees who are engaged in
10241024 18 construction activities associated with a
10251025 19 selected project.
10261026 20 (4) The Agency shall open the first block of
10271027 21 annual capacity for the category described in item
10281028 22 (iv) of subparagraph (K) of this paragraph (1).
10291029 23 The first block of annual capacity for item (iv)
10301030 24 shall be for at least 50 megawatts of total
10311031 25 nameplate capacity. Renewable energy credit prices
10321032 26 shall be fixed, without further adjustment under
10331033
10341034
10351035
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10391039
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10421042 HB1463 - 29 - LRB103 05819 AMQ 50839 b
10431043 1 any other provision of this Act or for any other
10441044 2 reason, at the price in the last open block in the
10451045 3 category described in item (ii) of subparagraph
10461046 4 (K) of this paragraph (1). Pricing for future
10471047 5 blocks of annual capacity for this category may be
10481048 6 adjusted in the Agency's second revision to its
10491049 7 Long-Term Renewable Resources Procurement Plan.
10501050 8 Projects in this category shall be subject to the
10511051 9 contract terms outlined in item (iv) of
10521052 10 subparagraph (L) of this paragraph (1).
10531053 11 (5) The Agency shall open the equivalent of 2
10541054 12 years of annual capacity for the category
10551055 13 described in item (v) of subparagraph (K) of this
10561056 14 paragraph (1). The first block of annual capacity
10571057 15 for item (v) shall be for at least 10 megawatts of
10581058 16 total nameplate capacity. Notwithstanding the
10591059 17 provisions of item (v) of subparagraph (K) of this
10601060 18 paragraph (1), for the purpose of this initial
10611061 19 block, the agency shall accept new project
10621062 20 applications intended to increase the diversity of
10631063 21 areas hosting community solar projects, the
10641064 22 business models of projects, and the size of
10651065 23 projects, as described by the Agency in its
10661066 24 long-term renewable resources procurement plan
10671067 25 that is approved as of the effective date of this
10681068 26 amendatory Act of the 102nd General Assembly.
10691069
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10791079 1 Projects in this category shall be subject to the
10801080 2 contract terms outlined in item (iii) of
10811081 3 subsection (L) of this paragraph (1).
10821082 4 (6) The Agency shall open the first blocks of
10831083 5 annual capacity for the category described in item
10841084 6 (vi) of subparagraph (K) of this paragraph (1),
10851085 7 with allocations of capacity within the block
10861086 8 generally matching the historical share of block
10871087 9 capacity allocated between the category described
10881088 10 in items (i) and (ii) of subparagraph (K) of this
10891089 11 paragraph (1). The first two blocks of annual
10901090 12 capacity for item (vi) shall be for at least 75
10911091 13 megawatts of total nameplate capacity. The price
10921092 14 of renewable energy credits for the blocks of
10931093 15 capacity shall be 4% less than the price of the
10941094 16 last open blocks in the categories described in
10951095 17 items (i) and (ii) of subparagraph (K) of this
10961096 18 paragraph (1). Pricing for future blocks of annual
10971097 19 capacity for this category may be adjusted in the
10981098 20 Agency's second revision to its Long-Term
10991099 21 Renewable Resources Procurement Plan. Projects in
11001100 22 this category shall be subject to the applicable
11011101 23 contract terms outlined in items (ii) and (iii) of
11021102 24 subparagraph (L) of this paragraph (1).
11031103 25 (v) Upon the effective date of this amendatory Act
11041104 26 of the 102nd General Assembly, for all competitive
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11151115 1 procurements and any procurements of renewable energy
11161116 2 credit from new utility-scale wind and new
11171117 3 utility-scale photovoltaic projects, the Agency shall
11181118 4 procure indexed renewable energy credits and direct
11191119 5 respondents to offer a strike price.
11201120 6 (1) The purchase price of the indexed
11211121 7 renewable energy credit payment shall be
11221122 8 calculated for each settlement period. That
11231123 9 payment, for any settlement period, shall be equal
11241124 10 to the difference resulting from subtracting the
11251125 11 strike price from the index price for that
11261126 12 settlement period. If this difference results in a
11271127 13 negative number, the indexed REC counterparty
11281128 14 shall owe the seller the absolute value multiplied
11291129 15 by the quantity of energy produced in the relevant
11301130 16 settlement period. If this difference results in a
11311131 17 positive number, the seller shall owe the indexed
11321132 18 REC counterparty this amount multiplied by the
11331133 19 quantity of energy produced in the relevant
11341134 20 settlement period.
11351135 21 (2) Parties shall cash settle every month,
11361136 22 summing up all settlements (both positive and
11371137 23 negative, if applicable) for the prior month.
11381138 24 (3) To ensure funding in the annual budget
11391139 25 established under subparagraph (E) for indexed
11401140 26 renewable energy credit procurements for each year
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11511151 1 of the term of such contracts, which must have a
11521152 2 minimum tenure of 20 calendar years, the
11531153 3 procurement administrator, Agency, Commission
11541154 4 staff, and procurement monitor shall quantify the
11551155 5 annual cost of the contract by utilizing an
11561156 6 industry-standard, third-party forward price curve
11571157 7 for energy at the appropriate hub or load zone,
11581158 8 including the estimated magnitude and timing of
11591159 9 the price effects related to federal carbon
11601160 10 controls. Each forward price curve shall contain a
11611161 11 specific value of the forecasted market price of
11621162 12 electricity for each annual delivery year of the
11631163 13 contract. For procurement planning purposes, the
11641164 14 impact on the annual budget for the cost of
11651165 15 indexed renewable energy credits for each delivery
11661166 16 year shall be determined as the expected annual
11671167 17 contract expenditure for that year, equaling the
11681168 18 difference between (i) the sum across all relevant
11691169 19 contracts of the applicable strike price
11701170 20 multiplied by contract quantity and (ii) the sum
11711171 21 across all relevant contracts of the forward price
11721172 22 curve for the applicable load zone for that year
11731173 23 multiplied by contract quantity. The contracting
11741174 24 utility shall not assume an obligation in excess
11751175 25 of the estimated annual cost of the contracts for
11761176 26 indexed renewable energy credits. Forward curves
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11871187 1 shall be revised on an annual basis as updated
11881188 2 forward price curves are released and filed with
11891189 3 the Commission in the proceeding approving the
11901190 4 Agency's most recent long-term renewable resources
11911191 5 procurement plan. If the expected contract spend
11921192 6 is higher or lower than the total quantity of
11931193 7 contracts multiplied by the forward price curve
11941194 8 value for that year, the forward price curve shall
11951195 9 be updated by the procurement administrator, in
11961196 10 consultation with the Agency, Commission staff,
11971197 11 and procurement monitors, using then-currently
11981198 12 available price forecast data and additional
11991199 13 budget dollars shall be obligated or reobligated
12001200 14 as appropriate.
12011201 15 (4) To ensure that indexed renewable energy
12021202 16 credit prices remain predictable and affordable,
12031203 17 the Agency may consider the institution of a price
12041204 18 collar on REC prices paid under indexed renewable
12051205 19 energy credit procurements establishing floor and
12061206 20 ceiling REC prices applicable to indexed REC
12071207 21 contract prices. Any price collars applicable to
12081208 22 indexed REC procurements shall be proposed by the
12091209 23 Agency through its long-term renewable resources
12101210 24 procurement plan.
12111211 25 (vi) All procurements under this subparagraph (G)
12121212 26 shall comply with the geographic requirements in
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12231223 1 subparagraph (I) of this paragraph (1) and shall
12241224 2 follow the procurement processes and procedures
12251225 3 described in this Section and Section 16-111.5 of the
12261226 4 Public Utilities Act to the extent practicable, and
12271227 5 these processes and procedures may be expedited to
12281228 6 accommodate the schedule established by this
12291229 7 subparagraph (G).
12301230 8 (H) The procurement of renewable energy resources for
12311231 9 a given delivery year shall be reduced as described in
12321232 10 this subparagraph (H) if an alternative retail electric
12331233 11 supplier meets the requirements described in this
12341234 12 subparagraph (H).
12351235 13 (i) Within 45 days after June 1, 2017 (the
12361236 14 effective date of Public Act 99-906), an alternative
12371237 15 retail electric supplier or its successor shall submit
12381238 16 an informational filing to the Illinois Commerce
12391239 17 Commission certifying that, as of December 31, 2015,
12401240 18 the alternative retail electric supplier owned one or
12411241 19 more electric generating facilities that generates
12421242 20 renewable energy resources as defined in Section 1-10
12431243 21 of this Act, provided that such facilities are not
12441244 22 powered by wind or photovoltaics, and the facilities
12451245 23 generate one renewable energy credit for each
12461246 24 megawatthour of energy produced from the facility.
12471247 25 The informational filing shall identify each
12481248 26 facility that was eligible to satisfy the alternative
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12591259 1 retail electric supplier's obligations under Section
12601260 2 16-115D of the Public Utilities Act as described in
12611261 3 this item (i).
12621262 4 (ii) For a given delivery year, the alternative
12631263 5 retail electric supplier may elect to supply its
12641264 6 retail customers with renewable energy credits from
12651265 7 the facility or facilities described in item (i) of
12661266 8 this subparagraph (H) that continue to be owned by the
12671267 9 alternative retail electric supplier.
12681268 10 (iii) The alternative retail electric supplier
12691269 11 shall notify the Agency and the applicable utility, no
12701270 12 later than February 28 of the year preceding the
12711271 13 applicable delivery year or 15 days after June 1, 2017
12721272 14 (the effective date of Public Act 99-906), whichever
12731273 15 is later, of its election under item (ii) of this
12741274 16 subparagraph (H) to supply renewable energy credits to
12751275 17 retail customers of the utility. Such election shall
12761276 18 identify the amount of renewable energy credits to be
12771277 19 supplied by the alternative retail electric supplier
12781278 20 to the utility's retail customers and the source of
12791279 21 the renewable energy credits identified in the
12801280 22 informational filing as described in item (i) of this
12811281 23 subparagraph (H), subject to the following
12821282 24 limitations:
12831283 25 For the delivery year beginning June 1, 2018,
12841284 26 the maximum amount of renewable energy credits to
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12951295 1 be supplied by an alternative retail electric
12961296 2 supplier under this subparagraph (H) shall be 68%
12971297 3 multiplied by 25% multiplied by 14.5% multiplied
12981298 4 by the amount of metered electricity
12991299 5 (megawatt-hours) delivered by the alternative
13001300 6 retail electric supplier to Illinois retail
13011301 7 customers during the delivery year ending May 31,
13021302 8 2016.
13031303 9 For delivery years beginning June 1, 2019 and
13041304 10 each year thereafter, the maximum amount of
13051305 11 renewable energy credits to be supplied by an
13061306 12 alternative retail electric supplier under this
13071307 13 subparagraph (H) shall be 68% multiplied by 50%
13081308 14 multiplied by 16% multiplied by the amount of
13091309 15 metered electricity (megawatt-hours) delivered by
13101310 16 the alternative retail electric supplier to
13111311 17 Illinois retail customers during the delivery year
13121312 18 ending May 31, 2016, provided that the 16% value
13131313 19 shall increase by 1.5% each delivery year
13141314 20 thereafter to 25% by the delivery year beginning
13151315 21 June 1, 2025, and thereafter the 25% value shall
13161316 22 apply to each delivery year.
13171317 23 For each delivery year, the total amount of
13181318 24 renewable energy credits supplied by all alternative
13191319 25 retail electric suppliers under this subparagraph (H)
13201320 26 shall not exceed 9% of the Illinois target renewable
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13311331 1 energy credit quantity. The Illinois target renewable
13321332 2 energy credit quantity for the delivery year beginning
13331333 3 June 1, 2018 is 14.5% multiplied by the total amount of
13341334 4 metered electricity (megawatt-hours) delivered in the
13351335 5 delivery year immediately preceding that delivery
13361336 6 year, provided that the 14.5% shall increase by 1.5%
13371337 7 each delivery year thereafter to 25% by the delivery
13381338 8 year beginning June 1, 2025, and thereafter the 25%
13391339 9 value shall apply to each delivery year.
13401340 10 If the requirements set forth in items (i) through
13411341 11 (iii) of this subparagraph (H) are met, the charges
13421342 12 that would otherwise be applicable to the retail
13431343 13 customers of the alternative retail electric supplier
13441344 14 under paragraph (6) of this subsection (c) for the
13451345 15 applicable delivery year shall be reduced by the ratio
13461346 16 of the quantity of renewable energy credits supplied
13471347 17 by the alternative retail electric supplier compared
13481348 18 to that supplier's target renewable energy credit
13491349 19 quantity. The supplier's target renewable energy
13501350 20 credit quantity for the delivery year beginning June
13511351 21 1, 2018 is 14.5% multiplied by the total amount of
13521352 22 metered electricity (megawatt-hours) delivered by the
13531353 23 alternative retail supplier in that delivery year,
13541354 24 provided that the 14.5% shall increase by 1.5% each
13551355 25 delivery year thereafter to 25% by the delivery year
13561356 26 beginning June 1, 2025, and thereafter the 25% value
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13671367 1 shall apply to each delivery year.
13681368 2 On or before April 1 of each year, the Agency shall
13691369 3 annually publish a report on its website that
13701370 4 identifies the aggregate amount of renewable energy
13711371 5 credits supplied by alternative retail electric
13721372 6 suppliers under this subparagraph (H).
13731373 7 (I) The Agency shall design its long-term renewable
13741374 8 energy procurement plan to maximize the State's interest
13751375 9 in the health, safety, and welfare of its residents,
13761376 10 including but not limited to minimizing sulfur dioxide,
13771377 11 nitrogen oxide, particulate matter and other pollution
13781378 12 that adversely affects public health in this State,
13791379 13 increasing fuel and resource diversity in this State,
13801380 14 enhancing the reliability and resiliency of the
13811381 15 electricity distribution system in this State, meeting
13821382 16 goals to limit carbon dioxide emissions under federal or
13831383 17 State law, and contributing to a cleaner and healthier
13841384 18 environment for the citizens of this State. In order to
13851385 19 further these legislative purposes, renewable energy
13861386 20 credits shall be eligible to be counted toward the
13871387 21 renewable energy requirements of this subsection (c) if
13881388 22 they are generated from facilities located in this State.
13891389 23 The Agency may qualify renewable energy credits from
13901390 24 facilities located in states adjacent to Illinois or
13911391 25 renewable energy credits associated with the electricity
13921392 26 generated by a utility-scale wind energy facility or
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14031403 1 utility-scale photovoltaic facility and transmitted by a
14041404 2 high voltage direct current transmission line qualifying
14051405 3 direct current project described in subsection (b-5) of
14061406 4 Section 8-406 of the Public Utilities Act to a delivery
14071407 5 point on the electric transmission grid located in this
14081408 6 State or a state adjacent to Illinois, if the generator
14091409 7 demonstrates and the Agency determines that the operation
14101410 8 of such facility or facilities will help promote the
14111411 9 State's interest in the health, safety, and welfare of its
14121412 10 residents based on the public interest criteria described
14131413 11 above. For the purposes of this Section, renewable
14141414 12 resources that are delivered via a high voltage direct
14151415 13 current converter station located in Illinois shall be
14161416 14 deemed generated in Illinois at the time and location the
14171417 15 energy is converted to alternating current by the high
14181418 16 voltage direct current converter station if the high
14191419 17 voltage direct current transmission line: (i) after the
14201420 18 effective date of this amendatory Act of the 102nd General
14211421 19 Assembly, was constructed with a project labor agreement;
14221422 20 (ii) is capable of transmitting electricity at 525kv;
14231423 21 (iii) has an Illinois converter station located and
14241424 22 interconnected in the region of the PJM Interconnection,
14251425 23 LLC; (iv) does not operate as a public utility; and (v) if
14261426 24 the high voltage direct current transmission line was
14271427 25 energized after June 1, 2023. To ensure that the public
14281428 26 interest criteria are applied to the procurement and given
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14391439 1 full effect, the Agency's long-term procurement plan shall
14401440 2 describe in detail how each public interest factor shall
14411441 3 be considered and weighted for facilities located in
14421442 4 states adjacent to Illinois.
14431443 5 (J) In order to promote the competitive development of
14441444 6 renewable energy resources in furtherance of the State's
14451445 7 interest in the health, safety, and welfare of its
14461446 8 residents, renewable energy credits shall not be eligible
14471447 9 to be counted toward the renewable energy requirements of
14481448 10 this subsection (c) if they are sourced from a generating
14491449 11 unit whose costs were being recovered through rates
14501450 12 regulated by this State or any other state or states on or
14511451 13 after January 1, 2017. Each contract executed to purchase
14521452 14 renewable energy credits under this subsection (c) shall
14531453 15 provide for the contract's termination if the costs of the
14541454 16 generating unit supplying the renewable energy credits
14551455 17 subsequently begin to be recovered through rates regulated
14561456 18 by this State or any other state or states; and each
14571457 19 contract shall further provide that, in that event, the
14581458 20 supplier of the credits must return 110% of all payments
14591459 21 received under the contract. Amounts returned under the
14601460 22 requirements of this subparagraph (J) shall be retained by
14611461 23 the utility and all of these amounts shall be used for the
14621462 24 procurement of additional renewable energy credits from
14631463 25 new wind or new photovoltaic resources as defined in this
14641464 26 subsection (c). The long-term plan shall provide that
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14751475 1 these renewable energy credits shall be procured in the
14761476 2 next procurement event.
14771477 3 Notwithstanding the limitations of this subparagraph
14781478 4 (J), renewable energy credits sourced from generating
14791479 5 units that are constructed, purchased, owned, or leased by
14801480 6 an electric utility as part of an approved project,
14811481 7 program, or pilot under Section 1-56 of this Act shall be
14821482 8 eligible to be counted toward the renewable energy
14831483 9 requirements of this subsection (c), regardless of how the
14841484 10 costs of these units are recovered. As long as a
14851485 11 generating unit or an identifiable portion of a generating
14861486 12 unit has not had and does not have its costs recovered
14871487 13 through rates regulated by this State or any other state,
14881488 14 HVDC renewable energy credits associated with that
14891489 15 generating unit or identifiable portion thereof shall be
14901490 16 eligible to be counted toward the renewable energy
14911491 17 requirements of this subsection (c).
14921492 18 (K) The long-term renewable resources procurement plan
14931493 19 developed by the Agency in accordance with subparagraph
14941494 20 (A) of this paragraph (1) shall include an Adjustable
14951495 21 Block program for the procurement of renewable energy
14961496 22 credits from new photovoltaic projects that are
14971497 23 distributed renewable energy generation devices or new
14981498 24 photovoltaic community renewable generation projects. The
14991499 25 Adjustable Block program shall be generally designed to
15001500 26 provide for the steady, predictable, and sustainable
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15111511 1 growth of new solar photovoltaic development in Illinois.
15121512 2 To this end, the Adjustable Block program shall provide a
15131513 3 transparent annual schedule of prices and quantities to
15141514 4 enable the photovoltaic market to scale up and for
15151515 5 renewable energy credit prices to adjust at a predictable
15161516 6 rate over time. The prices set by the Adjustable Block
15171517 7 program can be reflected as a set value or as the product
15181518 8 of a formula.
15191519 9 The Adjustable Block program shall include for each
15201520 10 category of eligible projects for each delivery year: a
15211521 11 single block of nameplate capacity, a price for renewable
15221522 12 energy credits within that block, and the terms and
15231523 13 conditions for securing a spot on a waitlist once the
15241524 14 block is fully committed or reserved. Except as outlined
15251525 15 below, the waitlist of projects in a given year will carry
15261526 16 over to apply to the subsequent year when another block is
15271527 17 opened. Only projects energized on or after June 1, 2017
15281528 18 shall be eligible for the Adjustable Block program. For
15291529 19 each category for each delivery year the Agency shall
15301530 20 determine the amount of generation capacity in each block,
15311531 21 and the purchase price for each block, provided that the
15321532 22 purchase price provided and the total amount of generation
15331533 23 in all blocks for all categories shall be sufficient to
15341534 24 meet the goals in this subsection (c). The Agency shall
15351535 25 strive to issue a single block sized to provide for
15361536 26 stability and market growth. The Agency shall establish
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15471547 1 program eligibility requirements that ensure that projects
15481548 2 that enter the program are sufficiently mature to indicate
15491549 3 a demonstrable path to completion. The Agency may
15501550 4 periodically review its prior decisions establishing the
15511551 5 amount of generation capacity in each block, and the
15521552 6 purchase price for each block, and may propose, on an
15531553 7 expedited basis, changes to these previously set values,
15541554 8 including but not limited to redistributing these amounts
15551555 9 and the available funds as necessary and appropriate,
15561556 10 subject to Commission approval as part of the periodic
15571557 11 plan revision process described in Section 16-111.5 of the
15581558 12 Public Utilities Act. The Agency may define different
15591559 13 block sizes, purchase prices, or other distinct terms and
15601560 14 conditions for projects located in different utility
15611561 15 service territories if the Agency deems it necessary to
15621562 16 meet the goals in this subsection (c).
15631563 17 The Adjustable Block program shall include the
15641564 18 following categories in at least the following amounts:
15651565 19 (i) At least 20% from distributed renewable energy
15661566 20 generation devices with a nameplate capacity of no
15671567 21 more than 25 kilowatts.
15681568 22 (ii) At least 20% from distributed renewable
15691569 23 energy generation devices with a nameplate capacity of
15701570 24 more than 25 kilowatts and no more than 5,000
15711571 25 kilowatts. The Agency may create sub-categories within
15721572 26 this category to account for the differences between
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15831583 1 projects for small commercial customers, large
15841584 2 commercial customers, and public or non-profit
15851585 3 customers.
15861586 4 (iii) At least 30% from photovoltaic community
15871587 5 renewable generation projects. Capacity for this
15881588 6 category for the first 2 delivery years after the
15891589 7 effective date of this amendatory Act of the 102nd
15901590 8 General Assembly shall be allocated to waitlist
15911591 9 projects as provided in paragraph (3) of item (iv) of
15921592 10 subparagraph (G). Starting in the third delivery year
15931593 11 after the effective date of this amendatory Act of the
15941594 12 102nd General Assembly or earlier if the Agency
15951595 13 determines there is additional capacity needed for to
15961596 14 meet previous delivery year requirements, the
15971597 15 following shall apply:
15981598 16 (1) the Agency shall select projects on a
15991599 17 first-come, first-serve basis, however the Agency
16001600 18 may suggest additional methods to prioritize
16011601 19 projects that are submitted at the same time;
16021602 20 (2) projects shall have subscriptions of 25 kW
16031603 21 or less for at least 50% of the facility's
16041604 22 nameplate capacity and the Agency shall price the
16051605 23 renewable energy credits with that as a factor;
16061606 24 (3) projects shall not be colocated with one
16071607 25 or more other community renewable generation
16081608 26 projects, as defined in the Agency's first revised
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16191619 1 long-term renewable resources procurement plan
16201620 2 approved by the Commission on February 18, 2020,
16211621 3 such that the aggregate nameplate capacity exceeds
16221622 4 5,000 kilowatts; and
16231623 5 (4) projects greater than 2 MW may not apply
16241624 6 until after the approval of the Agency's revised
16251625 7 Long-Term Renewable Resources Procurement Plan
16261626 8 after the effective date of this amendatory Act of
16271627 9 the 102nd General Assembly.
16281628 10 (iv) At least 15% from distributed renewable
16291629 11 generation devices or photovoltaic community renewable
16301630 12 generation projects installed at public schools. The
16311631 13 Agency may create subcategories within this category
16321632 14 to account for the differences between project size or
16331633 15 location. Projects located within environmental
16341634 16 justice communities or within Organizational Units
16351635 17 that fall within Tier 1 or Tier 2 shall be given
16361636 18 priority. Each of the Agency's periodic updates to its
16371637 19 long-term renewable resources procurement plan to
16381638 20 incorporate the procurement described in this
16391639 21 subparagraph (iv) shall also include the proposed
16401640 22 quantities or blocks, pricing, and contract terms
16411641 23 applicable to the procurement as indicated herein. In
16421642 24 each such update and procurement, the Agency shall set
16431643 25 the renewable energy credit price and establish
16441644 26 payment terms for the renewable energy credits
16451645
16461646
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16551655 1 procured pursuant to this subparagraph (iv) that make
16561656 2 it feasible and affordable for public schools to
16571657 3 install photovoltaic distributed renewable energy
16581658 4 devices on their premises, including, but not limited
16591659 5 to, those public schools subject to the prioritization
16601660 6 provisions of this subparagraph. For the purposes of
16611661 7 this item (iv):
16621662 8 "Environmental Justice Community" shall have the
16631663 9 same meaning set forth in the Agency's long-term
16641664 10 renewable resources procurement plan;
16651665 11 "Organization Unit", "Tier 1" and "Tier 2" shall
16661666 12 have the meanings set for in Section 18-8.15 of the
16671667 13 School Code;
16681668 14 "Public schools" shall have the meaning set forth
16691669 15 in Section 1-3 of the School Code.
16701670 16 (v) At least 5% from community-driven community
16711671 17 solar projects intended to provide more direct and
16721672 18 tangible connection and benefits to the communities
16731673 19 which they serve or in which they operate and,
16741674 20 additionally, to increase the variety of community
16751675 21 solar locations, models, and options in Illinois. As
16761676 22 part of its long-term renewable resources procurement
16771677 23 plan, the Agency shall develop selection criteria for
16781678 24 projects participating in this category. Nothing in
16791679 25 this Section shall preclude the Agency from creating a
16801680 26 selection process that maximizes community ownership
16811681
16821682
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16911691 1 and community benefits in selecting projects to
16921692 2 receive renewable energy credits. Selection criteria
16931693 3 shall include:
16941694 4 (1) community ownership or community
16951695 5 wealth-building;
16961696 6 (2) additional direct and indirect community
16971697 7 benefit, beyond project participation as a
16981698 8 subscriber, including, but not limited to,
16991699 9 economic, environmental, social, cultural, and
17001700 10 physical benefits;
17011701 11 (3) meaningful involvement in project
17021702 12 organization and development by community members
17031703 13 or nonprofit organizations or public entities
17041704 14 located in or serving the community;
17051705 15 (4) engagement in project operations and
17061706 16 management by nonprofit organizations, public
17071707 17 entities, or community members; and
17081708 18 (5) whether a project is developed in response
17091709 19 to a site-specific RFP developed by community
17101710 20 members or a nonprofit organization or public
17111711 21 entity located in or serving the community.
17121712 22 Selection criteria may also prioritize projects
17131713 23 that:
17141714 24 (1) are developed in collaboration with or to
17151715 25 provide complementary opportunities for the Clean
17161716 26 Jobs Workforce Network Program, the Illinois
17171717
17181718
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17231723
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17271727 1 Climate Works Preapprenticeship Program, the
17281728 2 Returning Residents Clean Jobs Training Program,
17291729 3 the Clean Energy Contractor Incubator Program, or
17301730 4 the Clean Energy Primes Contractor Accelerator
17311731 5 Program;
17321732 6 (2) increase the diversity of locations of
17331733 7 community solar projects in Illinois, including by
17341734 8 locating in urban areas and population centers;
17351735 9 (3) are located in Equity Investment Eligible
17361736 10 Communities;
17371737 11 (4) are not greenfield projects;
17381738 12 (5) serve only local subscribers;
17391739 13 (6) have a nameplate capacity that does not
17401740 14 exceed 500 kW;
17411741 15 (7) are developed by an equity eligible
17421742 16 contractor; or
17431743 17 (8) otherwise meaningfully advance the goals
17441744 18 of providing more direct and tangible connection
17451745 19 and benefits to the communities which they serve
17461746 20 or in which they operate and increasing the
17471747 21 variety of community solar locations, models, and
17481748 22 options in Illinois.
17491749 23 For the purposes of this item (v):
17501750 24 "Community" means a social unit in which people
17511751 25 come together regularly to effect change; a social
17521752 26 unit in which participants are marked by a cooperative
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17631763 1 spirit, a common purpose, or shared interests or
17641764 2 characteristics; or a space understood by its
17651765 3 residents to be delineated through geographic
17661766 4 boundaries or landmarks.
17671767 5 "Community benefit" means a range of services and
17681768 6 activities that provide affirmative, economic,
17691769 7 environmental, social, cultural, or physical value to
17701770 8 a community; or a mechanism that enables economic
17711771 9 development, high-quality employment, and education
17721772 10 opportunities for local workers and residents, or
17731773 11 formal monitoring and oversight structures such that
17741774 12 community members may ensure that those services and
17751775 13 activities respond to local knowledge and needs.
17761776 14 "Community ownership" means an arrangement in
17771777 15 which an electric generating facility is, or over time
17781778 16 will be, in significant part, owned collectively by
17791779 17 members of the community to which an electric
17801780 18 generating facility provides benefits; members of that
17811781 19 community participate in decisions regarding the
17821782 20 governance, operation, maintenance, and upgrades of
17831783 21 and to that facility; and members of that community
17841784 22 benefit from regular use of that facility.
17851785 23 Terms and guidance within these criteria that are
17861786 24 not defined in this item (v) shall be defined by the
17871787 25 Agency, with stakeholder input, during the development
17881788 26 of the Agency's long-term renewable resources
17891789
17901790
17911791
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17951795
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17991799 1 procurement plan. The Agency shall develop regular
18001800 2 opportunities for projects to submit applications for
18011801 3 projects under this category, and develop selection
18021802 4 criteria that gives preference to projects that better
18031803 5 meet individual criteria as well as projects that
18041804 6 address a higher number of criteria.
18051805 7 (vi) At least 10% from distributed renewable
18061806 8 energy generation devices, which includes distributed
18071807 9 renewable energy devices with a nameplate capacity
18081808 10 under 5,000 kilowatts or photovoltaic community
18091809 11 renewable generation projects, from applicants that
18101810 12 are equity eligible contractors. The Agency may create
18111811 13 subcategories within this category to account for the
18121812 14 differences between project size and type. The Agency
18131813 15 shall propose to increase the percentage in this item
18141814 16 (vi) over time to 40% based on factors, including, but
18151815 17 not limited to, the number of equity eligible
18161816 18 contractors and capacity used in this item (vi) in
18171817 19 previous delivery years.
18181818 20 The Agency shall propose a payment structure for
18191819 21 contracts executed pursuant to this paragraph under
18201820 22 which, upon a demonstration of qualification or need,
18211821 23 applicant firms are advanced capital disbursed after
18221822 24 contract execution but before the contracted project's
18231823 25 energization. The amount or percentage of capital
18241824 26 advanced prior to project energization shall be
18251825
18261826
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18351835 1 sufficient to both cover any increase in development
18361836 2 costs resulting from prevailing wage requirements or
18371837 3 project-labor agreements, and designed to overcome
18381838 4 barriers in access to capital faced by equity eligible
18391839 5 contractors. The amount or percentage of advanced
18401840 6 capital may vary by subcategory within this category
18411841 7 and by an applicant's demonstration of need, with such
18421842 8 levels to be established through the Long-Term
18431843 9 Renewable Resources Procurement Plan authorized under
18441844 10 subparagraph (A) of paragraph (1) of subsection (c) of
18451845 11 this Section.
18461846 12 Contracts developed featuring capital advanced
18471847 13 prior to a project's energization shall feature
18481848 14 provisions to ensure both the successful development
18491849 15 of applicant projects and the delivery of the
18501850 16 renewable energy credits for the full term of the
18511851 17 contract, including ongoing collateral requirements
18521852 18 and other provisions deemed necessary by the Agency,
18531853 19 and may include energization timelines longer than for
18541854 20 comparable project types. The percentage or amount of
18551855 21 capital advanced prior to project energization shall
18561856 22 not operate to increase the overall contract value,
18571857 23 however contracts executed under this subparagraph may
18581858 24 feature renewable energy credit prices higher than
18591859 25 those offered to similar projects participating in
18601860 26 other categories. Capital advanced prior to
18611861
18621862
18631863
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18711871 1 energization shall serve to reduce the ratable
18721872 2 payments made after energization under items (ii) and
18731873 3 (iii) of subparagraph (L) or payments made for each
18741874 4 renewable energy credit delivery under item (iv) of
18751875 5 subparagraph (L).
18761876 6 (vii) The remaining capacity shall be allocated by
18771877 7 the Agency in order to respond to market demand. The
18781878 8 Agency shall allocate any discretionary capacity prior
18791879 9 to the beginning of each delivery year.
18801880 10 To the extent there is uncontracted capacity from any
18811881 11 block in any of categories (i) through (vi) at the end of a
18821882 12 delivery year, the Agency shall redistribute that capacity
18831883 13 to one or more other categories giving priority to
18841884 14 categories with projects on a waitlist. The redistributed
18851885 15 capacity shall be added to the annual capacity in the
18861886 16 subsequent delivery year, and the price for renewable
18871887 17 energy credits shall be the price for the new delivery
18881888 18 year. Redistributed capacity shall not be considered
18891889 19 redistributed when determining whether the goals in this
18901890 20 subsection (K) have been met.
18911891 21 Notwithstanding anything to the contrary, as the
18921892 22 Agency increases the capacity in item (vi) to 40% over
18931893 23 time, the Agency may reduce the capacity of items (i)
18941894 24 through (v) proportionate to the capacity of the
18951895 25 categories of projects in item (vi), to achieve a balance
18961896 26 of project types.
18971897
18981898
18991899
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19071907 1 The Adjustable Block program shall be designed to
19081908 2 ensure that renewable energy credits are procured from
19091909 3 projects in diverse locations and are not concentrated in
19101910 4 a few regional areas.
19111911 5 (L) Notwithstanding provisions for advancing capital
19121912 6 prior to project energization found in item (vi) of
19131913 7 subparagraph (K), the procurement of photovoltaic
19141914 8 renewable energy credits under items (i) through (vi) of
19151915 9 subparagraph (K) of this paragraph (1) shall otherwise be
19161916 10 subject to the following contract and payment terms:
19171917 11 (i) (Blank).
19181918 12 (ii) For those renewable energy credits that
19191919 13 qualify and are procured under item (i) of
19201920 14 subparagraph (K) of this paragraph (1), and any
19211921 15 similar category projects that are procured under item
19221922 16 (vi) of subparagraph (K) of this paragraph (1) that
19231923 17 qualify and are procured under item (vi), the contract
19241924 18 length shall be 15 years. The renewable energy credit
19251925 19 delivery contract value shall be paid in full, based
19261926 20 on the estimated generation during the first 15 years
19271927 21 of operation, by the contracting utilities at the time
19281928 22 that the facility producing the renewable energy
19291929 23 credits is interconnected at the distribution system
19301930 24 level of the utility and verified as energized and
19311931 25 compliant by the Program Administrator. The electric
19321932 26 utility shall receive and retire all renewable energy
19331933
19341934
19351935
19361936
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19431943 1 credits generated by the project for the first 15
19441944 2 years of operation. Renewable energy credits generated
19451945 3 by the project thereafter shall not be transferred
19461946 4 under the renewable energy credit delivery contract
19471947 5 with the counterparty electric utility.
19481948 6 (iii) For those renewable energy credits that
19491949 7 qualify and are procured under item (ii) and (v) of
19501950 8 subparagraph (K) of this paragraph (1) and any like
19511951 9 projects similar category that qualify and are
19521952 10 procured under item (vi), the contract length shall be
19531953 11 15 years. 15% of the renewable energy credit delivery
19541954 12 contract value, based on the estimated generation
19551955 13 during the first 15 years of operation, shall be paid
19561956 14 by the contracting utilities at the time that the
19571957 15 facility producing the renewable energy credits is
19581958 16 interconnected at the distribution system level of the
19591959 17 utility and verified as energized and compliant by the
19601960 18 Program Administrator. The remaining portion shall be
19611961 19 paid ratably over the subsequent 6-year period. The
19621962 20 electric utility shall receive and retire all
19631963 21 renewable energy credits generated by the project for
19641964 22 the first 15 years of operation. Renewable energy
19651965 23 credits generated by the project thereafter shall not
19661966 24 be transferred under the renewable energy credit
19671967 25 delivery contract with the counterparty electric
19681968 26 utility.
19691969
19701970
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19791979 1 (iv) For those renewable energy credits that
19801980 2 qualify and are procured under items (iii) and (iv) of
19811981 3 subparagraph (K) of this paragraph (1), and any like
19821982 4 projects that qualify and are procured under item
19831983 5 (vi), the renewable energy credit delivery contract
19841984 6 length shall be 20 years and shall be paid over the
19851985 7 delivery term, not to exceed during each delivery year
19861986 8 the contract price multiplied by the estimated annual
19871987 9 renewable energy credit generation amount. If
19881988 10 generation of renewable energy credits during a
19891989 11 delivery year exceeds the estimated annual generation
19901990 12 amount, the excess renewable energy credits shall be
19911991 13 carried forward to future delivery years and shall not
19921992 14 expire during the delivery term. If generation of
19931993 15 renewable energy credits during a delivery year,
19941994 16 including carried forward excess renewable energy
19951995 17 credits, if any, is less than the estimated annual
19961996 18 generation amount, payments during such delivery year
19971997 19 will not exceed the quantity generated plus the
19981998 20 quantity carried forward multiplied by the contract
19991999 21 price. The electric utility shall receive all
20002000 22 renewable energy credits generated by the project
20012001 23 during the first 20 years of operation and retire all
20022002 24 renewable energy credits paid for under this item (iv)
20032003 25 and return at the end of the delivery term all
20042004 26 renewable energy credits that were not paid for.
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20152015 1 Renewable energy credits generated by the project
20162016 2 thereafter shall not be transferred under the
20172017 3 renewable energy credit delivery contract with the
20182018 4 counterparty electric utility. Notwithstanding the
20192019 5 preceding, for those projects participating under item
20202020 6 (iii) of subparagraph (K), the contract price for a
20212021 7 delivery year shall be based on subscription levels as
20222022 8 measured on the higher of the first business day of the
20232023 9 delivery year or the first business day 6 months after
20242024 10 the first business day of the delivery year.
20252025 11 Subscription of 90% of nameplate capacity or greater
20262026 12 shall be deemed to be fully subscribed for the
20272027 13 purposes of this item (iv). For projects receiving a
20282028 14 20-year delivery contract, REC prices shall be
20292029 15 adjusted downward for consistency with the incentive
20302030 16 levels previously determined to be necessary to
20312031 17 support projects under 15-year delivery contracts,
20322032 18 taking into consideration any additional new
20332033 19 requirements placed on the projects, including, but
20342034 20 not limited to, labor standards.
20352035 21 (v) Each contract shall include provisions to
20362036 22 ensure the delivery of the estimated quantity of
20372037 23 renewable energy credits and ongoing collateral
20382038 24 requirements and other provisions deemed appropriate
20392039 25 by the Agency.
20402040 26 (vi) The utility shall be the counterparty to the
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20512051 1 contracts executed under this subparagraph (L) that
20522052 2 are approved by the Commission under the process
20532053 3 described in Section 16-111.5 of the Public Utilities
20542054 4 Act. No contract shall be executed for an amount that
20552055 5 is less than one renewable energy credit per year.
20562056 6 (vii) If, at any time, approved applications for
20572057 7 the Adjustable Block program exceed funds collected by
20582058 8 the electric utility or would cause the Agency to
20592059 9 exceed the limitation described in subparagraph (E) of
20602060 10 this paragraph (1) on the amount of renewable energy
20612061 11 resources that may be procured, then the Agency may
20622062 12 consider future uncommitted funds to be reserved for
20632063 13 these contracts on a first-come, first-served basis.
20642064 14 (viii) Nothing in this Section shall require the
20652065 15 utility to advance any payment or pay any amounts that
20662066 16 exceed the actual amount of revenues anticipated to be
20672067 17 collected by the utility under paragraph (6) of this
20682068 18 subsection (c) and subsection (k) of Section 16-108 of
20692069 19 the Public Utilities Act inclusive of eligible funds
20702070 20 collected in prior years and alternative compliance
20712071 21 payments for use by the utility, and contracts
20722072 22 executed under this Section shall expressly
20732073 23 incorporate this limitation.
20742074 24 (ix) Notwithstanding other requirements of this
20752075 25 subparagraph (L), no modification shall be required to
20762076 26 Adjustable Block program contracts if they were
20772077
20782078
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20872087 1 already executed prior to the establishment, approval,
20882088 2 and implementation of new contract forms as a result
20892089 3 of this amendatory Act of the 102nd General Assembly.
20902090 4 (x) Contracts may be assignable, but only to
20912091 5 entities first deemed by the Agency to have met
20922092 6 program terms and requirements applicable to direct
20932093 7 program participation. In developing contracts for the
20942094 8 delivery of renewable energy credits, the Agency shall
20952095 9 be permitted to establish fees applicable to each
20962096 10 contract assignment.
20972097 11 (M) The Agency shall be authorized to retain one or
20982098 12 more experts or expert consulting firms to develop,
20992099 13 administer, implement, operate, and evaluate the
21002100 14 Adjustable Block program described in subparagraph (K) of
21012101 15 this paragraph (1), and the Agency shall retain the
21022102 16 consultant or consultants in the same manner, to the
21032103 17 extent practicable, as the Agency retains others to
21042104 18 administer provisions of this Act, including, but not
21052105 19 limited to, the procurement administrator. The selection
21062106 20 of experts and expert consulting firms and the procurement
21072107 21 process described in this subparagraph (M) are exempt from
21082108 22 the requirements of Section 20-10 of the Illinois
21092109 23 Procurement Code, under Section 20-10 of that Code. The
21102110 24 Agency shall strive to minimize administrative expenses in
21112111 25 the implementation of the Adjustable Block program.
21122112 26 The Program Administrator may charge application fees
21132113
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21232123 1 to participating firms to cover the cost of program
21242124 2 administration. Any application fee amounts shall
21252125 3 initially be determined through the long-term renewable
21262126 4 resources procurement plan, and modifications to any
21272127 5 application fee that deviate more than 25% from the
21282128 6 Commission's approved value must be approved by the
21292129 7 Commission as a long-term plan revision under Section
21302130 8 16-111.5 of the Public Utilities Act. The Agency shall
21312131 9 consider stakeholder feedback when making adjustments to
21322132 10 application fees and shall notify stakeholders in advance
21332133 11 of any planned changes.
21342134 12 In addition to covering the costs of program
21352135 13 administration, the Agency, in conjunction with its
21362136 14 Program Administrator, may also use the proceeds of such
21372137 15 fees charged to participating firms to support public
21382138 16 education and ongoing regional and national coordination
21392139 17 with nonprofit organizations, public bodies, and others
21402140 18 engaged in the implementation of renewable energy
21412141 19 incentive programs or similar initiatives. This work may
21422142 20 include developing papers and reports, hosting regional
21432143 21 and national conferences, and other work deemed necessary
21442144 22 by the Agency to position the State of Illinois as a
21452145 23 national leader in renewable energy incentive program
21462146 24 development and administration.
21472147 25 The Agency and its consultant or consultants shall
21482148 26 monitor block activity, share program activity with
21492149
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21592159 1 stakeholders and conduct quarterly meetings to discuss
21602160 2 program activity and market conditions. If necessary, the
21612161 3 Agency may make prospective administrative adjustments to
21622162 4 the Adjustable Block program design, such as making
21632163 5 adjustments to purchase prices as necessary to achieve the
21642164 6 goals of this subsection (c). Program modifications to any
21652165 7 block price that do not deviate from the Commission's
21662166 8 approved value by more than 10% shall take effect
21672167 9 immediately and are not subject to Commission review and
21682168 10 approval. Program modifications to any block price that
21692169 11 deviate more than 10% from the Commission's approved value
21702170 12 must be approved by the Commission as a long-term plan
21712171 13 amendment under Section 16-111.5 of the Public Utilities
21722172 14 Act. The Agency shall consider stakeholder feedback when
21732173 15 making adjustments to the Adjustable Block design and
21742174 16 shall notify stakeholders in advance of any planned
21752175 17 changes.
21762176 18 The Agency and its program administrators for both the
21772177 19 Adjustable Block program and the Illinois Solar for All
21782178 20 Program, consistent with the requirements of this
21792179 21 subsection (c) and subsection (b) of Section 1-56 of this
21802180 22 Act, shall propose the Adjustable Block program terms,
21812181 23 conditions, and requirements, including the prices to be
21822182 24 paid for renewable energy credits, where applicable, and
21832183 25 requirements applicable to participating entities and
21842184 26 project applications, through the development, review, and
21852185
21862186
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21952195 1 approval of the Agency's long-term renewable resources
21962196 2 procurement plan described in this subsection (c) and
21972197 3 paragraph (5) of subsection (b) of Section 16-111.5 of the
21982198 4 Public Utilities Act. Terms, conditions, and requirements
21992199 5 for program participation shall include the following:
22002200 6 (i) The Agency shall establish a registration
22012201 7 process for entities seeking to qualify for
22022202 8 program-administered incentive funding and establish
22032203 9 baseline qualifications for vendor approval. The
22042204 10 Agency must maintain a list of approved entities on
22052205 11 each program's website, and may revoke a vendor's
22062206 12 ability to receive program-administered incentive
22072207 13 funding status upon a determination that the vendor
22082208 14 failed to comply with contract terms, the law, or
22092209 15 other program requirements.
22102210 16 (ii) The Agency shall establish program
22112211 17 requirements and minimum contract terms to ensure
22122212 18 projects are properly installed and produce their
22132213 19 expected amounts of energy. Program requirements may
22142214 20 include on-site inspections and photo documentation of
22152215 21 projects under construction. The Agency may require
22162216 22 repairs, alterations, or additions to remedy any
22172217 23 material deficiencies discovered. Vendors who have a
22182218 24 disproportionately high number of deficient systems
22192219 25 may lose their eligibility to continue to receive
22202220 26 State-administered incentive funding through Agency
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22312231 1 programs and procurements.
22322232 2 (iii) To discourage deceptive marketing or other
22332233 3 bad faith business practices, the Agency may require
22342234 4 direct program participants, including agents
22352235 5 operating on their behalf, to provide standardized
22362236 6 disclosures to a customer prior to that customer's
22372237 7 execution of a contract for the development of a
22382238 8 distributed generation system or a subscription to a
22392239 9 community solar project.
22402240 10 (iv) The Agency shall establish one or multiple
22412241 11 Consumer Complaints Centers to accept complaints
22422242 12 regarding businesses that participate in, or otherwise
22432243 13 benefit from, State-administered incentive funding
22442244 14 through Agency-administered programs. The Agency shall
22452245 15 maintain a public database of complaints with any
22462246 16 confidential or particularly sensitive information
22472247 17 redacted from public entries.
22482248 18 (v) Through a filing in the proceeding for the
22492249 19 approval of its long-term renewable energy resources
22502250 20 procurement plan, the Agency shall provide an annual
22512251 21 written report to the Illinois Commerce Commission
22522252 22 documenting the frequency and nature of complaints and
22532253 23 any enforcement actions taken in response to those
22542254 24 complaints.
22552255 25 (vi) The Agency shall schedule regular meetings
22562256 26 with representatives of the Office of the Attorney
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22672267 1 General, the Illinois Commerce Commission, consumer
22682268 2 protection groups, and other interested stakeholders
22692269 3 to share relevant information about consumer
22702270 4 protection, project compliance, and complaints
22712271 5 received.
22722272 6 (vii) To the extent that complaints received
22732273 7 implicate the jurisdiction of the Office of the
22742274 8 Attorney General, the Illinois Commerce Commission, or
22752275 9 local, State, or federal law enforcement, the Agency
22762276 10 shall also refer complaints to those entities as
22772277 11 appropriate.
22782278 12 (N) The Agency shall establish the terms, conditions,
22792279 13 and program requirements for photovoltaic community
22802280 14 renewable generation projects with a goal to expand access
22812281 15 to a broader group of energy consumers, to ensure robust
22822282 16 participation opportunities for residential and small
22832283 17 commercial customers and those who cannot install
22842284 18 renewable energy on their own properties. Subject to
22852285 19 reasonable limitations, any plan approved by the
22862286 20 Commission shall allow subscriptions to community
22872287 21 renewable generation projects to be portable and
22882288 22 transferable. For purposes of this subparagraph (N),
22892289 23 "portable" means that subscriptions may be retained by the
22902290 24 subscriber even if the subscriber relocates or changes its
22912291 25 address within the same utility service territory; and
22922292 26 "transferable" means that a subscriber may assign or sell
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23032303 1 subscriptions to another person within the same utility
23042304 2 service territory.
23052305 3 Through the development of its long-term renewable
23062306 4 resources procurement plan, the Agency may consider
23072307 5 whether community renewable generation projects utilizing
23082308 6 technologies other than photovoltaics should be supported
23092309 7 through State-administered incentive funding, and may
23102310 8 issue requests for information to gauge market demand.
23112311 9 Electric utilities shall provide a monetary credit to
23122312 10 a subscriber's subsequent bill for service for the
23132313 11 proportional output of a community renewable generation
23142314 12 project attributable to that subscriber as specified in
23152315 13 Section 16-107.5 of the Public Utilities Act.
23162316 14 The Agency shall purchase renewable energy credits
23172317 15 from subscribed shares of photovoltaic community renewable
23182318 16 generation projects through the Adjustable Block program
23192319 17 described in subparagraph (K) of this paragraph (1) or
23202320 18 through the Illinois Solar for All Program described in
23212321 19 Section 1-56 of this Act. The electric utility shall
23222322 20 purchase any unsubscribed energy from community renewable
23232323 21 generation projects that are Qualifying Facilities ("QF")
23242324 22 under the electric utility's tariff for purchasing the
23252325 23 output from QFs under Public Utilities Regulatory Policies
23262326 24 Act of 1978.
23272327 25 The owners of and any subscribers to a community
23282328 26 renewable generation project shall not be considered
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23392339 1 public utilities or alternative retail electricity
23402340 2 suppliers under the Public Utilities Act solely as a
23412341 3 result of their interest in or subscription to a community
23422342 4 renewable generation project and shall not be required to
23432343 5 become an alternative retail electric supplier by
23442344 6 participating in a community renewable generation project
23452345 7 with a public utility.
23462346 8 (O) For the delivery year beginning June 1, 2018, the
23472347 9 long-term renewable resources procurement plan required by
23482348 10 this subsection (c) shall provide for the Agency to
23492349 11 procure contracts to continue offering the Illinois Solar
23502350 12 for All Program described in subsection (b) of Section
23512351 13 1-56 of this Act, and the contracts approved by the
23522352 14 Commission shall be executed by the utilities that are
23532353 15 subject to this subsection (c). The long-term renewable
23542354 16 resources procurement plan shall allocate up to
23552355 17 $50,000,000 per delivery year to fund the programs, and
23562356 18 the plan shall determine the amount of funding to be
23572357 19 apportioned to the programs identified in subsection (b)
23582358 20 of Section 1-56 of this Act; provided that for the
23592359 21 delivery years beginning June 1, 2021, June 1, 2022, and
23602360 22 June 1, 2023, the long-term renewable resources
23612361 23 procurement plan may average the annual budgets over a
23622362 24 3-year period to account for program ramp-up. For the
23632363 25 delivery years beginning June 1, 2021, June 1, 2024, June
23642364 26 1, 2027, and June 1, 2030 and additional $10,000,000 shall
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23752375 1 be provided to the Department of Commerce and Economic
23762376 2 Opportunity to implement the workforce development
23772377 3 programs and reporting as outlined in Section 16-108.12 of
23782378 4 the Public Utilities Act. In making the determinations
23792379 5 required under this subparagraph (O), the Commission shall
23802380 6 consider the experience and performance under the programs
23812381 7 and any evaluation reports. The Commission shall also
23822382 8 provide for an independent evaluation of those programs on
23832383 9 a periodic basis that are funded under this subparagraph
23842384 10 (O).
23852385 11 (P) All programs and procurements under this
23862386 12 subsection (c) shall be designed to encourage
23872387 13 participating projects to use a diverse and equitable
23882388 14 workforce and a diverse set of contractors, including
23892389 15 minority-owned businesses, disadvantaged businesses,
23902390 16 trade unions, graduates of any workforce training programs
23912391 17 administered under this Act, and small businesses.
23922392 18 The Agency shall develop a method to optimize
23932393 19 procurement of renewable energy credits from proposed
23942394 20 utility-scale projects that are located in communities
23952395 21 eligible to receive Energy Transition Community Grants
23962396 22 pursuant to Section 10-20 of the Energy Community
23972397 23 Reinvestment Act. If this requirement conflicts with other
23982398 24 provisions of law or the Agency determines that full
23992399 25 compliance with the requirements of this subparagraph (P)
24002400 26 would be unreasonably costly or administratively
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24112411 1 impractical, the Agency is to propose alternative
24122412 2 approaches to achieve development of renewable energy
24132413 3 resources in communities eligible to receive Energy
24142414 4 Transition Community Grants pursuant to Section 10-20 of
24152415 5 the Energy Community Reinvestment Act or seek an exemption
24162416 6 from this requirement from the Commission.
24172417 7 (Q) Each facility listed in subitems (i) through
24182418 8 (viii) of item (1) of this subparagraph (Q) for which a
24192419 9 renewable energy credit delivery contract is signed after
24202420 10 the effective date of this amendatory Act of the 102nd
24212421 11 General Assembly is subject to the following requirements
24222422 12 through the Agency's long-term renewable resources
24232423 13 procurement plan:
24242424 14 (1) Each facility shall be subject to the
24252425 15 prevailing wage requirements included in the
24262426 16 Prevailing Wage Act. The Agency shall require
24272427 17 verification that all construction performed on the
24282428 18 facility by the renewable energy credit delivery
24292429 19 contract holder, its contractors, or its
24302430 20 subcontractors relating to construction of the
24312431 21 facility is performed by construction employees
24322432 22 receiving an amount for that work equal to or greater
24332433 23 than the general prevailing rate, as that term is
24342434 24 defined in Section 3 of the Prevailing Wage Act. For
24352435 25 purposes of this item (1), "house of worship" means
24362436 26 property that is both (1) used exclusively by a
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24472447 1 religious society or body of persons as a place for
24482448 2 religious exercise or religious worship and (2)
24492449 3 recognized as exempt from taxation pursuant to Section
24502450 4 15-40 of the Property Tax Code. This item (1) shall
24512451 5 apply to any the following:
24522452 6 (i) all new utility-scale wind projects;
24532453 7 (ii) all new utility-scale photovoltaic
24542454 8 projects;
24552455 9 (iii) all new brownfield photovoltaic
24562456 10 projects;
24572457 11 (iv) all new photovoltaic community renewable
24582458 12 energy facilities that qualify for item (iii) of
24592459 13 subparagraph (K) of this paragraph (1);
24602460 14 (v) all new community driven community
24612461 15 photovoltaic projects that qualify for item (v) of
24622462 16 subparagraph (K) of this paragraph (1);
24632463 17 (vi) all new photovoltaic distributed
24642464 18 renewable energy generation devices on schools
24652465 19 that qualify for item (iv) of subparagraph (K) of
24662466 20 this paragraph (1);
24672467 21 (vii) all new photovoltaic distributed
24682468 22 renewable energy generation devices that (1)
24692469 23 qualify for item (i) of subparagraph (K) of this
24702470 24 paragraph (1); (2) are not projects that serve
24712471 25 single-family or multi-family residential
24722472 26 buildings; and (3) are not houses of worship where
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24832483 1 the aggregate capacity including collocated
24842484 2 projects would not exceed 100 kilowatts;
24852485 3 (viii) all new photovoltaic distributed
24862486 4 renewable energy generation devices that (1)
24872487 5 qualify for item (ii) of subparagraph (K) of this
24882488 6 paragraph (1); (2) are not projects that serve
24892489 7 single-family or multi-family residential
24902490 8 buildings; and (3) are not houses of worship where
24912491 9 the aggregate capacity including collocated
24922492 10 projects would not exceed 100 kilowatts.
24932493 11 (2) Renewable energy credits procured from new
24942494 12 utility-scale wind projects, new utility-scale solar
24952495 13 projects, and new brownfield solar projects pursuant
24962496 14 to Agency procurement events occurring after the
24972497 15 effective date of this amendatory Act of the 102nd
24982498 16 General Assembly must be from facilities built by
24992499 17 general contractors that must enter into a project
25002500 18 labor agreement, as defined by this Act, prior to
25012501 19 construction. The project labor agreement shall be
25022502 20 filed with the Director in accordance with procedures
25032503 21 established by the Agency through its long-term
25042504 22 renewable resources procurement plan. Any information
25052505 23 submitted to the Agency in this item (2) shall be
25062506 24 considered commercially sensitive information. At a
25072507 25 minimum, the project labor agreement must provide the
25082508 26 names, addresses, and occupations of the owner of the
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25192519 1 plant and the individuals representing the labor
25202520 2 organization employees participating in the project
25212521 3 labor agreement consistent with the Project Labor
25222522 4 Agreements Act. The agreement must also specify the
25232523 5 terms and conditions as defined by this Act.
25242524 6 (3) It is the intent of this Section to ensure that
25252525 7 economic development occurs across Illinois
25262526 8 communities, that emerging businesses may grow, and
25272527 9 that there is improved access to the clean energy
25282528 10 economy by persons who have greater economic burdens
25292529 11 to success. The Agency shall take into consideration
25302530 12 the unique cost of compliance of this subparagraph (Q)
25312531 13 that might be borne by equity eligible contractors,
25322532 14 shall include such costs when determining the price of
25332533 15 renewable energy credits in the Adjustable Block
25342534 16 program, and shall take such costs into consideration
25352535 17 in a nondiscriminatory manner when comparing bids for
25362536 18 competitive procurements. The Agency shall consider
25372537 19 costs associated with compliance whether in the
25382538 20 development, financing, or construction of projects.
25392539 21 The Agency shall periodically review the assumptions
25402540 22 in these costs and may adjust prices, in compliance
25412541 23 with subparagraph (M) of this paragraph (1).
25422542 24 (R) In its long-term renewable resources procurement
25432543 25 plan, the Agency shall establish a self-direct renewable
25442544 26 portfolio standard compliance program for eligible
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25552555 1 self-direct customers that purchase renewable energy
25562556 2 credits from utility-scale wind and solar projects through
25572557 3 long-term agreements for purchase of renewable energy
25582558 4 credits as described in this Section. Such long-term
25592559 5 agreements may include the purchase of energy or other
25602560 6 products on a physical or financial basis and may involve
25612561 7 an alternative retail electric supplier as defined in
25622562 8 Section 16-102 of the Public Utilities Act. This program
25632563 9 shall take effect in the delivery year commencing June 1,
25642564 10 2023.
25652565 11 (1) For the purposes of this subparagraph:
25662566 12 "Eligible self-direct customer" means any retail
25672567 13 customers of an electric utility that serves 3,000,000
25682568 14 or more retail customers in the State and whose total
25692569 15 highest 30-minute demand was more than 10,000
25702570 16 kilowatts, or any retail customers of an electric
25712571 17 utility that serves less than 3,000,000 retail
25722572 18 customers but more than 500,000 retail customers in
25732573 19 the State and whose total highest 15-minute demand was
25742574 20 more than 10,000 kilowatts.
25752575 21 "Retail customer" has the meaning set forth in
25762576 22 Section 16-102 of the Public Utilities Act and
25772577 23 multiple retail customer accounts under the same
25782578 24 corporate parent may aggregate their account demands
25792579 25 to meet the 10,000 kilowatt threshold. The criteria
25802580 26 for determining whether this subparagraph is
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25912591 1 applicable to a retail customer shall be based on the
25922592 2 12 consecutive billing periods prior to the start of
25932593 3 the year in which the application is filed.
25942594 4 (2) For renewable energy credits to count toward
25952595 5 the self-direct renewable portfolio standard
25962596 6 compliance program, they must:
25972597 7 (i) qualify as renewable energy credits as
25982598 8 defined in Section 1-10 of this Act;
25992599 9 (ii) be sourced from one or more renewable
26002600 10 energy generating facilities that comply with the
26012601 11 geographic requirements as set forth in
26022602 12 subparagraph (I) of paragraph (1) of subsection
26032603 13 (c) as interpreted through the Agency's long-term
26042604 14 renewable resources procurement plan, or, where
26052605 15 applicable, the geographic requirements that
26062606 16 governed utility-scale renewable energy credits at
26072607 17 the time the eligible self-direct customer entered
26082608 18 into the applicable renewable energy credit
26092609 19 purchase agreement;
26102610 20 (iii) be procured through long-term contracts
26112611 21 with term lengths of at least 10 years either
26122612 22 directly with the renewable energy generating
26132613 23 facility or through a bundled power purchase
26142614 24 agreement, a virtual power purchase agreement, an
26152615 25 agreement between the renewable generating
26162616 26 facility, an alternative retail electric supplier,
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26272627 1 and the customer, or such other structure as is
26282628 2 permissible under this subparagraph (R);
26292629 3 (iv) be equivalent in volume to at least 40%
26302630 4 of the eligible self-direct customer's usage,
26312631 5 determined annually by the eligible self-direct
26322632 6 customer's usage during the previous delivery
26332633 7 year, measured to the nearest megawatt-hour;
26342634 8 (v) be retired by or on behalf of the large
26352635 9 energy customer;
26362636 10 (vi) be sourced from new utility-scale wind
26372637 11 projects or new utility-scale solar projects; and
26382638 12 (vii) if the contracts for renewable energy
26392639 13 credits are entered into after the effective date
26402640 14 of this amendatory Act of the 102nd General
26412641 15 Assembly, the new utility-scale wind projects or
26422642 16 new utility-scale solar projects must comply with
26432643 17 the requirements established in subparagraphs (P)
26442644 18 and (Q) of paragraph (1) of this subsection (c)
26452645 19 and subsection (c-10).
26462646 20 (3) The self-direct renewable portfolio standard
26472647 21 compliance program shall be designed to allow eligible
26482648 22 self-direct customers to procure new renewable energy
26492649 23 credits from new utility-scale wind projects or new
26502650 24 utility-scale photovoltaic projects. The Agency shall
26512651 25 annually determine the amount of utility-scale
26522652 26 renewable energy credits it will include each year
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26632663 1 from the self-direct renewable portfolio standard
26642664 2 compliance program, subject to receiving qualifying
26652665 3 applications. In making this determination, the Agency
26662666 4 shall evaluate publicly available analyses and studies
26672667 5 of the potential market size for utility-scale
26682668 6 renewable energy long-term purchase agreements by
26692669 7 commercial and industrial energy customers and make
26702670 8 that report publicly available. If demand for
26712671 9 participation in the self-direct renewable portfolio
26722672 10 standard compliance program exceeds availability, the
26732673 11 Agency shall ensure participation is evenly split
26742674 12 between commercial and industrial users to the extent
26752675 13 there is sufficient demand from both customer classes.
26762676 14 Each renewable energy credit procured pursuant to this
26772677 15 subparagraph (R) by a self-direct customer shall
26782678 16 reduce the total volume of renewable energy credits
26792679 17 the Agency is otherwise required to procure from new
26802680 18 utility-scale projects pursuant to subparagraph (C) of
26812681 19 paragraph (1) of this subsection (c) on behalf of
26822682 20 contracting utilities where the eligible self-direct
26832683 21 customer is located. The self-direct customer shall
26842684 22 file an annual compliance report with the Agency
26852685 23 pursuant to terms established by the Agency through
26862686 24 its long-term renewable resources procurement plan to
26872687 25 be eligible for participation in this program.
26882688 26 Customers must provide the Agency with their most
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26992699 1 recent electricity billing statements or other
27002700 2 information deemed necessary by the Agency to
27012701 3 demonstrate they are an eligible self-direct customer.
27022702 4 (4) The Commission shall approve a reduction in
27032703 5 the volumetric charges collected pursuant to Section
27042704 6 16-108 of the Public Utilities Act for approved
27052705 7 eligible self-direct customers equivalent to the
27062706 8 anticipated cost of renewable energy credit deliveries
27072707 9 under contracts for new utility-scale wind and new
27082708 10 utility-scale solar entered for each delivery year
27092709 11 after the large energy customer begins retiring
27102710 12 eligible new utility scale renewable energy credits
27112711 13 for self-compliance. The self-direct credit amount
27122712 14 shall be determined annually and is equal to the
27132713 15 estimated portion of the cost authorized by
27142714 16 subparagraph (E) of paragraph (1) of this subsection
27152715 17 (c) that supported the annual procurement of
27162716 18 utility-scale renewable energy credits in the prior
27172717 19 delivery year using a methodology described in the
27182718 20 long-term renewable resources procurement plan,
27192719 21 expressed on a per kilowatthour basis, and does not
27202720 22 include (i) costs associated with any contracts
27212721 23 entered into before the delivery year in which the
27222722 24 customer files the initial compliance report to be
27232723 25 eligible for participation in the self-direct program,
27242724 26 and (ii) costs associated with procuring renewable
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27352735 1 energy credits through existing and future contracts
27362736 2 through the Adjustable Block Program, subsection (c-5)
27372737 3 of this Section 1-75, and the Solar for All Program.
27382738 4 The Agency shall assist the Commission in determining
27392739 5 the current and future costs. The Agency must
27402740 6 determine the self-direct credit amount for new and
27412741 7 existing eligible self-direct customers and submit
27422742 8 this to the Commission in an annual compliance filing.
27432743 9 The Commission must approve the self-direct credit
27442744 10 amount by June 1, 2023 and June 1 of each delivery year
27452745 11 thereafter.
27462746 12 (5) Customers described in this subparagraph (R)
27472747 13 shall apply, on a form developed by the Agency, to the
27482748 14 Agency to be designated as a self-direct eligible
27492749 15 customer. Once the Agency determines that a
27502750 16 self-direct customer is eligible for participation in
27512751 17 the program, the self-direct customer will remain
27522752 18 eligible until the end of the term of the contract.
27532753 19 Thereafter, application may be made not less than 12
27542754 20 months before the filing date of the long-term
27552755 21 renewable resources procurement plan described in this
27562756 22 Act. At a minimum, such application shall contain the
27572757 23 following:
27582758 24 (i) the customer's certification that, at the
27592759 25 time of the customer's application, the customer
27602760 26 qualifies to be a self-direct eligible customer,
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27672767
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27702770 HB1463 - 77 - LRB103 05819 AMQ 50839 b
27712771 1 including documents demonstrating that
27722772 2 qualification;
27732773 3 (ii) the customer's certification that the
27742774 4 customer has entered into or will enter into by
27752775 5 the beginning of the applicable procurement year,
27762776 6 one or more bilateral contracts for new wind
27772777 7 projects or new photovoltaic projects, including
27782778 8 supporting documentation;
27792779 9 (iii) certification that the contract or
27802780 10 contracts for new renewable energy resources are
27812781 11 long-term contracts with term lengths of at least
27822782 12 10 years, including supporting documentation;
27832783 13 (iv) certification of the quantities of
27842784 14 renewable energy credits that the customer will
27852785 15 purchase each year under such contract or
27862786 16 contracts, including supporting documentation;
27872787 17 (v) proof that the contract is sufficient to
27882788 18 produce renewable energy credits to be equivalent
27892789 19 in volume to at least 40% of the large energy
27902790 20 customer's usage from the previous delivery year,
27912791 21 measured to the nearest megawatt-hour; and
27922792 22 (vi) certification that the customer intends
27932793 23 to maintain the contract for the duration of the
27942794 24 length of the contract.
27952795 25 (6) If a customer receives the self-direct credit
27962796 26 but fails to properly procure and retire renewable
27972797
27982798
27992799
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28032803
28042804
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28062806 HB1463 - 78 - LRB103 05819 AMQ 50839 b
28072807 1 energy credits as required under this subparagraph
28082808 2 (R), the Commission, on petition from the Agency and
28092809 3 after notice and hearing, may direct such customer's
28102810 4 utility to recover the cost of the wrongfully received
28112811 5 self-direct credits plus interest through an adder to
28122812 6 charges assessed pursuant to Section 16-108 of the
28132813 7 Public Utilities Act. Self-direct customers who
28142814 8 knowingly fail to properly procure and retire
28152815 9 renewable energy credits and do not notify the Agency
28162816 10 are ineligible for continued participation in the
28172817 11 self-direct renewable portfolio standard compliance
28182818 12 program.
28192819 13 (2) (Blank).
28202820 14 (3) (Blank).
28212821 15 (4) The electric utility shall retire all renewable
28222822 16 energy credits used to comply with the standard.
28232823 17 (5) Beginning with the 2010 delivery year and ending
28242824 18 June 1, 2017, an electric utility subject to this
28252825 19 subsection (c) shall apply the lesser of the maximum
28262826 20 alternative compliance payment rate or the most recent
28272827 21 estimated alternative compliance payment rate for its
28282828 22 service territory for the corresponding compliance period,
28292829 23 established pursuant to subsection (d) of Section 16-115D
28302830 24 of the Public Utilities Act to its retail customers that
28312831 25 take service pursuant to the electric utility's hourly
28322832 26 pricing tariff or tariffs. The electric utility shall
28332833
28342834
28352835
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28392839
28402840
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28422842 HB1463 - 79 - LRB103 05819 AMQ 50839 b
28432843 1 retain all amounts collected as a result of the
28442844 2 application of the alternative compliance payment rate or
28452845 3 rates to such customers, and, beginning in 2011, the
28462846 4 utility shall include in the information provided under
28472847 5 item (1) of subsection (d) of Section 16-111.5 of the
28482848 6 Public Utilities Act the amounts collected under the
28492849 7 alternative compliance payment rate or rates for the prior
28502850 8 year ending May 31. Notwithstanding any limitation on the
28512851 9 procurement of renewable energy resources imposed by item
28522852 10 (2) of this subsection (c), the Agency shall increase its
28532853 11 spending on the purchase of renewable energy resources to
28542854 12 be procured by the electric utility for the next plan year
28552855 13 by an amount equal to the amounts collected by the utility
28562856 14 under the alternative compliance payment rate or rates in
28572857 15 the prior year ending May 31.
28582858 16 (6) The electric utility shall be entitled to recover
28592859 17 all of its costs associated with the procurement of
28602860 18 renewable energy credits under plans approved under this
28612861 19 Section and Section 16-111.5 of the Public Utilities Act.
28622862 20 These costs shall include associated reasonable expenses
28632863 21 for implementing the procurement programs, including, but
28642864 22 not limited to, the costs of administering and evaluating
28652865 23 the Adjustable Block program, through an automatic
28662866 24 adjustment clause tariff in accordance with subsection (k)
28672867 25 of Section 16-108 of the Public Utilities Act.
28682868 26 (7) Renewable energy credits procured from new
28692869
28702870
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28752875
28762876
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28782878 HB1463 - 80 - LRB103 05819 AMQ 50839 b
28792879 1 photovoltaic projects or new distributed renewable energy
28802880 2 generation devices under this Section after June 1, 2017
28812881 3 (the effective date of Public Act 99-906) must be procured
28822882 4 from devices installed by a qualified person in compliance
28832883 5 with the requirements of Section 16-128A of the Public
28842884 6 Utilities Act and any rules or regulations adopted
28852885 7 thereunder.
28862886 8 In meeting the renewable energy requirements of this
28872887 9 subsection (c), to the extent feasible and consistent with
28882888 10 State and federal law, the renewable energy credit
28892889 11 procurements, Adjustable Block solar program, and
28902890 12 community renewable generation program shall provide
28912891 13 employment opportunities for all segments of the
28922892 14 population and workforce, including minority-owned and
28932893 15 female-owned business enterprises, and shall not,
28942894 16 consistent with State and federal law, discriminate based
28952895 17 on race or socioeconomic status.
28962896 18 (c-5) Procurement of renewable energy credits from new
28972897 19 renewable energy facilities installed at or adjacent to the
28982898 20 sites of electric generating facilities that burn or burned
28992899 21 coal as their primary fuel source.
29002900 22 (1) In addition to the procurement of renewable energy
29012901 23 credits pursuant to long-term renewable resources
29022902 24 procurement plans in accordance with subsection (c) of
29032903 25 this Section and Section 16-111.5 of the Public Utilities
29042904 26 Act, the Agency shall conduct procurement events in
29052905
29062906
29072907
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29112911
29122912
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29142914 HB1463 - 81 - LRB103 05819 AMQ 50839 b
29152915 1 accordance with this subsection (c-5) for the procurement
29162916 2 by electric utilities that served more than 300,000 retail
29172917 3 customers in this State as of January 1, 2019 of renewable
29182918 4 energy credits from new renewable energy facilities to be
29192919 5 installed at or adjacent to the sites of electric
29202920 6 generating facilities that, as of January 1, 2016, burned
29212921 7 coal as their primary fuel source and meet the other
29222922 8 criteria specified in this subsection (c-5). For purposes
29232923 9 of this subsection (c-5), "new renewable energy facility"
29242924 10 means a new utility-scale solar project as defined in this
29252925 11 Section 1-75. The renewable energy credits procured
29262926 12 pursuant to this subsection (c-5) may be included or
29272927 13 counted for purposes of compliance with the amounts of
29282928 14 renewable energy credits required to be procured pursuant
29292929 15 to subsection (c) of this Section to the extent that there
29302930 16 are otherwise shortfalls in compliance with such
29312931 17 requirements. The procurement of renewable energy credits
29322932 18 by electric utilities pursuant to this subsection (c-5)
29332933 19 shall be funded solely by revenues collected from the Coal
29342934 20 to Solar and Energy Storage Initiative Charge provided for
29352935 21 in this subsection (c-5) and subsection (i-5) of Section
29362936 22 16-108 of the Public Utilities Act, shall not be funded by
29372937 23 revenues collected through any of the other funding
29382938 24 mechanisms provided for in subsection (c) of this Section,
29392939 25 and shall not be subject to the limitation imposed by
29402940 26 subsection (c) on charges to retail customers for costs to
29412941
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29432943
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29472947
29482948
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29502950 HB1463 - 82 - LRB103 05819 AMQ 50839 b
29512951 1 procure renewable energy resources pursuant to subsection
29522952 2 (c), and shall not be subject to any other requirements or
29532953 3 limitations of subsection (c).
29542954 4 (2) The Agency shall conduct 2 procurement events to
29552955 5 select owners of electric generating facilities meeting
29562956 6 the eligibility criteria specified in this subsection
29572957 7 (c-5) to enter into long-term contracts to sell renewable
29582958 8 energy credits to electric utilities serving more than
29592959 9 300,000 retail customers in this State as of January 1,
29602960 10 2019. The first procurement event shall be conducted no
29612961 11 later than March 31, 2022, unless the Agency elects to
29622962 12 delay it, until no later than May 1, 2022, due to its
29632963 13 overall volume of work, and shall be to select owners of
29642964 14 electric generating facilities located in this State and
29652965 15 south of federal Interstate Highway 80 that meet the
29662966 16 eligibility criteria specified in this subsection (c-5).
29672967 17 The second procurement event shall be conducted no sooner
29682968 18 than September 30, 2022 and no later than October 31, 2022
29692969 19 and shall be to select owners of electric generating
29702970 20 facilities located anywhere in this State that meet the
29712971 21 eligibility criteria specified in this subsection (c-5).
29722972 22 The Agency shall establish and announce a time period,
29732973 23 which shall begin no later than 30 days prior to the
29742974 24 scheduled date for the procurement event, during which
29752975 25 applicants may submit applications to be selected as
29762976 26 suppliers of renewable energy credits pursuant to this
29772977
29782978
29792979
29802980
29812981
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29832983
29842984
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29862986 HB1463 - 83 - LRB103 05819 AMQ 50839 b
29872987 1 subsection (c-5). The eligibility criteria for selection
29882988 2 as a supplier of renewable energy credits pursuant to this
29892989 3 subsection (c-5) shall be as follows:
29902990 4 (A) The applicant owns an electric generating
29912991 5 facility located in this State that: (i) as of January
29922992 6 1, 2016, burned coal as its primary fuel to generate
29932993 7 electricity; and (ii) has, or had prior to retirement,
29942994 8 an electric generating capacity of at least 150
29952995 9 megawatts. The electric generating facility can be
29962996 10 either: (i) retired as of the date of the procurement
29972997 11 event; or (ii) still operating as of the date of the
29982998 12 procurement event.
29992999 13 (B) The applicant is not (i) an electric
30003000 14 cooperative as defined in Section 3-119 of the Public
30013001 15 Utilities Act, or (ii) an entity described in
30023002 16 subsection (b)(1) of Section 3-105 of the Public
30033003 17 Utilities Act, or an association or consortium of or
30043004 18 an entity owned by entities described in (i) or (ii);
30053005 19 and the coal-fueled electric generating facility was
30063006 20 at one time owned, in whole or in part, by a public
30073007 21 utility as defined in Section 3-105 of the Public
30083008 22 Utilities Act.
30093009 23 (C) If participating in the first procurement
30103010 24 event, the applicant proposes and commits to construct
30113011 25 and operate, at the site, and if necessary for
30123012 26 sufficient space on property adjacent to the existing
30133013
30143014
30153015
30163016
30173017
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30193019
30203020
30213021 HB1463- 84 -LRB103 05819 AMQ 50839 b HB1463 - 84 - LRB103 05819 AMQ 50839 b
30223022 HB1463 - 84 - LRB103 05819 AMQ 50839 b
30233023 1 property, at which the electric generating facility
30243024 2 identified in paragraph (A) is located: (i) a new
30253025 3 renewable energy facility of at least 20 megawatts but
30263026 4 no more than 100 megawatts of electric generating
30273027 5 capacity, and (ii) an energy storage facility having a
30283028 6 storage capacity equal to at least 2 megawatts and at
30293029 7 most 10 megawatts. If participating in the second
30303030 8 procurement event, the applicant proposes and commits
30313031 9 to construct and operate, at the site, and if
30323032 10 necessary for sufficient space on property adjacent to
30333033 11 the existing property, at which the electric
30343034 12 generating facility identified in paragraph (A) is
30353035 13 located: (i) a new renewable energy facility of at
30363036 14 least 5 megawatts but no more than 20 megawatts of
30373037 15 electric generating capacity, and (ii) an energy
30383038 16 storage facility having a storage capacity equal to at
30393039 17 least 0.5 megawatts and at most one megawatt.
30403040 18 (D) The applicant agrees that the new renewable
30413041 19 energy facility and the energy storage facility will
30423042 20 be constructed or installed by a qualified entity or
30433043 21 entities in compliance with the requirements of
30443044 22 subsection (g) of Section 16-128A of the Public
30453045 23 Utilities Act and any rules adopted thereunder.
30463046 24 (E) The applicant agrees that personnel operating
30473047 25 the new renewable energy facility and the energy
30483048 26 storage facility will have the requisite skills,
30493049
30503050
30513051
30523052
30533053
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30553055
30563056
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30583058 HB1463 - 85 - LRB103 05819 AMQ 50839 b
30593059 1 knowledge, training, experience, and competence, which
30603060 2 may be demonstrated by completion or current
30613061 3 participation and ultimate completion by employees of
30623062 4 an accredited or otherwise recognized apprenticeship
30633063 5 program for the employee's particular craft, trade, or
30643064 6 skill, including through training and education
30653065 7 courses and opportunities offered by the owner to
30663066 8 employees of the coal-fueled electric generating
30673067 9 facility or by previous employment experience
30683068 10 performing the employee's particular work skill or
30693069 11 function.
30703070 12 (F) The applicant commits that not less than the
30713071 13 prevailing wage, as determined pursuant to the
30723072 14 Prevailing Wage Act, will be paid to the applicant's
30733073 15 employees engaged in construction activities
30743074 16 associated with the new renewable energy facility and
30753075 17 the new energy storage facility and to the employees
30763076 18 of applicant's contractors engaged in construction
30773077 19 activities associated with the new renewable energy
30783078 20 facility and the new energy storage facility, and
30793079 21 that, on or before the commercial operation date of
30803080 22 the new renewable energy facility, the applicant shall
30813081 23 file a report with the Agency certifying that the
30823082 24 requirements of this subparagraph (F) have been met.
30833083 25 (G) The applicant commits that if selected, it
30843084 26 will negotiate a project labor agreement for the
30853085
30863086
30873087
30883088
30893089
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30913091
30923092
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30943094 HB1463 - 86 - LRB103 05819 AMQ 50839 b
30953095 1 construction of the new renewable energy facility and
30963096 2 associated energy storage facility that includes
30973097 3 provisions requiring the parties to the agreement to
30983098 4 work together to establish diversity threshold
30993099 5 requirements and to ensure best efforts to meet
31003100 6 diversity targets, improve diversity at the applicable
31013101 7 job site, create diverse apprenticeship opportunities,
31023102 8 and create opportunities to employ former coal-fired
31033103 9 power plant workers.
31043104 10 (H) The applicant commits to enter into a contract
31053105 11 or contracts for the applicable duration to provide
31063106 12 specified numbers of renewable energy credits each
31073107 13 year from the new renewable energy facility to
31083108 14 electric utilities that served more than 300,000
31093109 15 retail customers in this State as of January 1, 2019,
31103110 16 at a price of $30 per renewable energy credit. The
31113111 17 price per renewable energy credit shall be fixed at
31123112 18 $30 for the applicable duration and the renewable
31133113 19 energy credits shall not be indexed renewable energy
31143114 20 credits as provided for in item (v) of subparagraph
31153115 21 (G) of paragraph (1) of subsection (c) of Section 1-75
31163116 22 of this Act. The applicable duration of each contract
31173117 23 shall be 20 years, unless the applicant is physically
31183118 24 interconnected to the PJM Interconnection, LLC
31193119 25 transmission grid and had a generating capacity of at
31203120 26 least 1,200 megawatts as of January 1, 2021, in which
31213121
31223122
31233123
31243124
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31303130 HB1463 - 87 - LRB103 05819 AMQ 50839 b
31313131 1 case the applicable duration of the contract shall be
31323132 2 15 years.
31333133 3 (I) The applicant's application is certified by an
31343134 4 officer of the applicant and by an officer of the
31353135 5 applicant's ultimate parent company, if any.
31363136 6 (3) An applicant may submit applications to contract
31373137 7 to supply renewable energy credits from more than one new
31383138 8 renewable energy facility to be constructed at or adjacent
31393139 9 to one or more qualifying electric generating facilities
31403140 10 owned by the applicant. The Agency may select new
31413141 11 renewable energy facilities to be located at or adjacent
31423142 12 to the sites of more than one qualifying electric
31433143 13 generation facility owned by an applicant to contract with
31443144 14 electric utilities to supply renewable energy credits from
31453145 15 such facilities.
31463146 16 (4) The Agency shall assess fees to each applicant to
31473147 17 recover the Agency's costs incurred in receiving and
31483148 18 evaluating applications, conducting the procurement event,
31493149 19 developing contracts for sale, delivery and purchase of
31503150 20 renewable energy credits, and monitoring the
31513151 21 administration of such contracts, as provided for in this
31523152 22 subsection (c-5), including fees paid to a procurement
31533153 23 administrator retained by the Agency for one or more of
31543154 24 these purposes.
31553155 25 (5) The Agency shall select the applicants and the new
31563156 26 renewable energy facilities to contract with electric
31573157
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31633163
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31663166 HB1463 - 88 - LRB103 05819 AMQ 50839 b
31673167 1 utilities to supply renewable energy credits in accordance
31683168 2 with this subsection (c-5). In the first procurement
31693169 3 event, the Agency shall select applicants and new
31703170 4 renewable energy facilities to supply renewable energy
31713171 5 credits, at a price of $30 per renewable energy credit,
31723172 6 aggregating to no less than 400,000 renewable energy
31733173 7 credits per year for the applicable duration, assuming
31743174 8 sufficient qualifying applications to supply, in the
31753175 9 aggregate, at least that amount of renewable energy
31763176 10 credits per year; and not more than 580,000 renewable
31773177 11 energy credits per year for the applicable duration. In
31783178 12 the second procurement event, the Agency shall select
31793179 13 applicants and new renewable energy facilities to supply
31803180 14 renewable energy credits, at a price of $30 per renewable
31813181 15 energy credit, aggregating to no more than 625,000
31823182 16 renewable energy credits per year less the amount of
31833183 17 renewable energy credits each year contracted for as a
31843184 18 result of the first procurement event, for the applicable
31853185 19 durations. The number of renewable energy credits to be
31863186 20 procured as specified in this paragraph (5) shall not be
31873187 21 reduced based on renewable energy credits procured in the
31883188 22 self-direct renewable energy credit compliance program
31893189 23 established pursuant to subparagraph (R) of paragraph (1)
31903190 24 of subsection (c) of Section 1-75.
31913191 25 (6) The obligation to purchase renewable energy
31923192 26 credits from the applicants and their new renewable energy
31933193
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31993199
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32023202 HB1463 - 89 - LRB103 05819 AMQ 50839 b
32033203 1 facilities selected by the Agency shall be allocated to
32043204 2 the electric utilities based on their respective
32053205 3 percentages of kilowatthours delivered to delivery
32063206 4 services customers to the aggregate kilowatthour
32073207 5 deliveries by the electric utilities to delivery services
32083208 6 customers for the year ended December 31, 2021. In order
32093209 7 to achieve these allocation percentages between or among
32103210 8 the electric utilities, the Agency shall require each
32113211 9 applicant that is selected in the procurement event to
32123212 10 enter into a contract with each electric utility for the
32133213 11 sale and purchase of renewable energy credits from each
32143214 12 new renewable energy facility to be constructed and
32153215 13 operated by the applicant, with the sale and purchase
32163216 14 obligations under the contracts to aggregate to the total
32173217 15 number of renewable energy credits per year to be supplied
32183218 16 by the applicant from the new renewable energy facility.
32193219 17 (7) The Agency shall submit its proposed selection of
32203220 18 applicants, new renewable energy facilities to be
32213221 19 constructed, and renewable energy credit amounts for each
32223222 20 procurement event to the Commission for approval. The
32233223 21 Commission shall, within 2 business days after receipt of
32243224 22 the Agency's proposed selections, approve the proposed
32253225 23 selections if it determines that the applicants and the
32263226 24 new renewable energy facilities to be constructed meet the
32273227 25 selection criteria set forth in this subsection (c-5) and
32283228 26 that the Agency seeks approval for contracts of applicable
32293229
32303230
32313231
32323232
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32353235
32363236
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32383238 HB1463 - 90 - LRB103 05819 AMQ 50839 b
32393239 1 durations aggregating to no more than the maximum amount
32403240 2 of renewable energy credits per year authorized by this
32413241 3 subsection (c-5) for the procurement event, at a price of
32423242 4 $30 per renewable energy credit.
32433243 5 (8) The Agency, in conjunction with its procurement
32443244 6 administrator if one is retained, the electric utilities,
32453245 7 and potential applicants for contracts to produce and
32463246 8 supply renewable energy credits pursuant to this
32473247 9 subsection (c-5), shall develop a standard form contract
32483248 10 for the sale, delivery and purchase of renewable energy
32493249 11 credits pursuant to this subsection (c-5). Each contract
32503250 12 resulting from the first procurement event shall allow for
32513251 13 a commercial operation date for the new renewable energy
32523252 14 facility of either June 1, 2023 or June 1, 2024, with such
32533253 15 dates subject to adjustment as provided in this paragraph.
32543254 16 Each contract resulting from the second procurement event
32553255 17 shall provide for a commercial operation date on June 1
32563256 18 next occurring up to 48 months after execution of the
32573257 19 contract. Each contract shall provide that the owner shall
32583258 20 receive payments for renewable energy credits for the
32593259 21 applicable durations beginning with the commercial
32603260 22 operation date of the new renewable energy facility. The
32613261 23 form contract shall provide for adjustments to the
32623262 24 commercial operation and payment start dates as needed due
32633263 25 to any delays in completing the procurement and
32643264 26 contracting processes, in finalizing interconnection
32653265
32663266
32673267
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32713271
32723272
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32743274 HB1463 - 91 - LRB103 05819 AMQ 50839 b
32753275 1 agreements and installing interconnection facilities, and
32763276 2 in obtaining other necessary governmental permits and
32773277 3 approvals. The form contract shall be, to the maximum
32783278 4 extent possible, consistent with standard electric
32793279 5 industry contracts for sale, delivery, and purchase of
32803280 6 renewable energy credits while taking into account the
32813281 7 specific requirements of this subsection (c-5). The form
32823282 8 contract shall provide for over-delivery and
32833283 9 under-delivery of renewable energy credits within
32843284 10 reasonable ranges during each 12-month period and penalty,
32853285 11 default, and enforcement provisions for failure of the
32863286 12 selling party to deliver renewable energy credits as
32873287 13 specified in the contract and to comply with the
32883288 14 requirements of this subsection (c-5). The standard form
32893289 15 contract shall specify that all renewable energy credits
32903290 16 delivered to the electric utility pursuant to the contract
32913291 17 shall be retired. The Agency shall make the proposed
32923292 18 contracts available for a reasonable period for comment by
32933293 19 potential applicants, and shall publish the final form
32943294 20 contract at least 30 days before the date of the first
32953295 21 procurement event.
32963296 22 (9) Coal to Solar and Energy Storage Initiative
32973297 23 Charge.
32983298 24 (A) By no later than July 1, 2022, each electric
32993299 25 utility that served more than 300,000 retail customers
33003300 26 in this State as of January 1, 2019 shall file a tariff
33013301
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33103310 HB1463 - 92 - LRB103 05819 AMQ 50839 b
33113311 1 with the Commission for the billing and collection of
33123312 2 a Coal to Solar and Energy Storage Initiative Charge
33133313 3 in accordance with subsection (i-5) of Section 16-108
33143314 4 of the Public Utilities Act, with such tariff to be
33153315 5 effective, following review and approval or
33163316 6 modification by the Commission, beginning January 1,
33173317 7 2023. The tariff shall provide for the calculation and
33183318 8 setting of the electric utility's Coal to Solar and
33193319 9 Energy Storage Initiative Charge to collect revenues
33203320 10 estimated to be sufficient, in the aggregate, (i) to
33213321 11 enable the electric utility to pay for the renewable
33223322 12 energy credits it has contracted to purchase in the
33233323 13 delivery year beginning June 1, 2023 and each delivery
33243324 14 year thereafter from new renewable energy facilities
33253325 15 located at the sites of qualifying electric generating
33263326 16 facilities, and (ii) to fund the grant payments to be
33273327 17 made in each delivery year by the Department of
33283328 18 Commerce and Economic Opportunity, or any successor
33293329 19 department or agency, which shall be referred to in
33303330 20 this subsection (c-5) as the Department, pursuant to
33313331 21 paragraph (10) of this subsection (c-5). The electric
33323332 22 utility's tariff shall provide for the billing and
33333333 23 collection of the Coal to Solar and Energy Storage
33343334 24 Initiative Charge on each kilowatthour of electricity
33353335 25 delivered to its delivery services customers within
33363336 26 its service territory and shall provide for an annual
33373337
33383338
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33433343
33443344
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33463346 HB1463 - 93 - LRB103 05819 AMQ 50839 b
33473347 1 reconciliation of revenues collected with actual
33483348 2 costs, in accordance with subsection (i-5) of Section
33493349 3 16-108 of the Public Utilities Act.
33503350 4 (B) Each electric utility shall remit on a monthly
33513351 5 basis to the State Treasurer, for deposit in the Coal
33523352 6 to Solar and Energy Storage Initiative Fund provided
33533353 7 for in this subsection (c-5), the electric utility's
33543354 8 collections of the Coal to Solar and Energy Storage
33553355 9 Initiative Charge in the amount estimated to be needed
33563356 10 by the Department for grant payments pursuant to grant
33573357 11 contracts entered into by the Department pursuant to
33583358 12 paragraph (10) of this subsection (c-5).
33593359 13 (10) Coal to Solar and Energy Storage Initiative Fund.
33603360 14 (A) The Coal to Solar and Energy Storage
33613361 15 Initiative Fund is established as a special fund in
33623362 16 the State treasury. The Coal to Solar and Energy
33633363 17 Storage Initiative Fund is authorized to receive, by
33643364 18 statutory deposit, that portion specified in item (B)
33653365 19 of paragraph (9) of this subsection (c-5) of moneys
33663366 20 collected by electric utilities through imposition of
33673367 21 the Coal to Solar and Energy Storage Initiative Charge
33683368 22 required by this subsection (c-5). The Coal to Solar
33693369 23 and Energy Storage Initiative Fund shall be
33703370 24 administered by the Department to provide grants to
33713371 25 support the installation and operation of energy
33723372 26 storage facilities at the sites of qualifying electric
33733373
33743374
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33793379
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33833383 1 generating facilities meeting the criteria specified
33843384 2 in this paragraph (10).
33853385 3 (B) The Coal to Solar and Energy Storage
33863386 4 Initiative Fund shall not be subject to sweeps,
33873387 5 administrative charges, or chargebacks, including, but
33883388 6 not limited to, those authorized under Section 8h of
33893389 7 the State Finance Act, that would in any way result in
33903390 8 the transfer of those funds from the Coal to Solar and
33913391 9 Energy Storage Initiative Fund to any other fund of
33923392 10 this State or in having any such funds utilized for any
33933393 11 purpose other than the express purposes set forth in
33943394 12 this paragraph (10).
33953395 13 (C) The Department shall utilize up to
33963396 14 $280,500,000 in the Coal to Solar and Energy Storage
33973397 15 Initiative Fund for grants, assuming sufficient
33983398 16 qualifying applicants, to support installation of
33993399 17 energy storage facilities at the sites of up to 3
34003400 18 qualifying electric generating facilities located in
34013401 19 the Midcontinent Independent System Operator, Inc.,
34023402 20 region in Illinois and the sites of up to 2 qualifying
34033403 21 electric generating facilities located in the PJM
34043404 22 Interconnection, LLC region in Illinois that meet the
34053405 23 criteria set forth in this subparagraph (C). The
34063406 24 criteria for receipt of a grant pursuant to this
34073407 25 subparagraph (C) are as follows:
34083408 26 (1) the electric generating facility at the
34093409
34103410
34113411
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34153415
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34183418 HB1463 - 95 - LRB103 05819 AMQ 50839 b
34193419 1 site has, or had prior to retirement, an electric
34203420 2 generating capacity of at least 150 megawatts;
34213421 3 (2) the electric generating facility burns (or
34223422 4 burned prior to retirement) coal as its primary
34233423 5 source of fuel;
34243424 6 (3) if the electric generating facility is
34253425 7 retired, it was retired subsequent to January 1,
34263426 8 2016;
34273427 9 (4) the owner of the electric generating
34283428 10 facility has not been selected by the Agency
34293429 11 pursuant to this subsection (c-5) of this Section
34303430 12 to enter into a contract to sell renewable energy
34313431 13 credits to one or more electric utilities from a
34323432 14 new renewable energy facility located or to be
34333433 15 located at or adjacent to the site at which the
34343434 16 electric generating facility is located;
34353435 17 (5) the electric generating facility located
34363436 18 at the site was at one time owned, in whole or in
34373437 19 part, by a public utility as defined in Section
34383438 20 3-105 of the Public Utilities Act;
34393439 21 (6) the electric generating facility at the
34403440 22 site is not owned by (i) an electric cooperative
34413441 23 as defined in Section 3-119 of the Public
34423442 24 Utilities Act, or (ii) an entity described in
34433443 25 subsection (b)(1) of Section 3-105 of the Public
34443444 26 Utilities Act, or an association or consortium of
34453445
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34473447
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34553455 1 or an entity owned by entities described in items
34563456 2 (i) or (ii);
34573457 3 (7) the proposed energy storage facility at
34583458 4 the site will have energy storage capacity of at
34593459 5 least 37 megawatts;
34603460 6 (8) the owner commits to place the energy
34613461 7 storage facility into commercial operation on
34623462 8 either June 1, 2023, June 1, 2024, or June 1, 2025,
34633463 9 with such date subject to adjustment as needed due
34643464 10 to any delays in completing the grant contracting
34653465 11 process, in finalizing interconnection agreements
34663466 12 and in installing interconnection facilities, and
34673467 13 in obtaining necessary governmental permits and
34683468 14 approvals;
34693469 15 (9) the owner agrees that the new energy
34703470 16 storage facility will be constructed or installed
34713471 17 by a qualified entity or entities consistent with
34723472 18 the requirements of subsection (g) of Section
34733473 19 16-128A of the Public Utilities Act and any rules
34743474 20 adopted under that Section;
34753475 21 (10) the owner agrees that personnel operating
34763476 22 the energy storage facility will have the
34773477 23 requisite skills, knowledge, training, experience,
34783478 24 and competence, which may be demonstrated by
34793479 25 completion or current participation and ultimate
34803480 26 completion by employees of an accredited or
34813481
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34873487
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34913491 1 otherwise recognized apprenticeship program for
34923492 2 the employee's particular craft, trade, or skill,
34933493 3 including through training and education courses
34943494 4 and opportunities offered by the owner to
34953495 5 employees of the coal-fueled electric generating
34963496 6 facility or by previous employment experience
34973497 7 performing the employee's particular work skill or
34983498 8 function;
34993499 9 (11) the owner commits that not less than the
35003500 10 prevailing wage, as determined pursuant to the
35013501 11 Prevailing Wage Act, will be paid to the owner's
35023502 12 employees engaged in construction activities
35033503 13 associated with the new energy storage facility
35043504 14 and to the employees of the owner's contractors
35053505 15 engaged in construction activities associated with
35063506 16 the new energy storage facility, and that, on or
35073507 17 before the commercial operation date of the new
35083508 18 energy storage facility, the owner shall file a
35093509 19 report with the Department certifying that the
35103510 20 requirements of this subparagraph (11) have been
35113511 21 met; and
35123512 22 (12) the owner commits that if selected to
35133513 23 receive a grant, it will negotiate a project labor
35143514 24 agreement for the construction of the new energy
35153515 25 storage facility that includes provisions
35163516 26 requiring the parties to the agreement to work
35173517
35183518
35193519
35203520
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35233523
35243524
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35263526 HB1463 - 98 - LRB103 05819 AMQ 50839 b
35273527 1 together to establish diversity threshold
35283528 2 requirements and to ensure best efforts to meet
35293529 3 diversity targets, improve diversity at the
35303530 4 applicable job site, create diverse apprenticeship
35313531 5 opportunities, and create opportunities to employ
35323532 6 former coal-fired power plant workers.
35333533 7 The Department shall accept applications for this
35343534 8 grant program until March 31, 2022 and shall announce
35353535 9 the award of grants no later than June 1, 2022. The
35363536 10 Department shall make the grant payments to a
35373537 11 recipient in equal annual amounts for 10 years
35383538 12 following the date the energy storage facility is
35393539 13 placed into commercial operation. The annual grant
35403540 14 payments to a qualifying energy storage facility shall
35413541 15 be $110,000 per megawatt of energy storage capacity,
35423542 16 with total annual grant payments pursuant to this
35433543 17 subparagraph (C) for qualifying energy storage
35443544 18 facilities not to exceed $28,050,000 in any year.
35453545 19 (D) Grants of funding for energy storage
35463546 20 facilities pursuant to subparagraph (C) of this
35473547 21 paragraph (10), from the Coal to Solar and Energy
35483548 22 Storage Initiative Fund, shall be memorialized in
35493549 23 grant contracts between the Department and the
35503550 24 recipient. The grant contracts shall specify the date
35513551 25 or dates in each year on which the annual grant
35523552 26 payments shall be paid.
35533553
35543554
35553555
35563556
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35593559
35603560
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35633563 1 (E) All disbursements from the Coal to Solar and
35643564 2 Energy Storage Initiative Fund shall be made only upon
35653565 3 warrants of the Comptroller drawn upon the Treasurer
35663566 4 as custodian of the Fund upon vouchers signed by the
35673567 5 Director of the Department or by the person or persons
35683568 6 designated by the Director of the Department for that
35693569 7 purpose. The Comptroller is authorized to draw the
35703570 8 warrants upon vouchers so signed. The Treasurer shall
35713571 9 accept all written warrants so signed and shall be
35723572 10 released from liability for all payments made on those
35733573 11 warrants.
35743574 12 (11) Diversity, equity, and inclusion plans.
35753575 13 (A) Each applicant selected in a procurement event
35763576 14 to contract to supply renewable energy credits in
35773577 15 accordance with this subsection (c-5) and each owner
35783578 16 selected by the Department to receive a grant or
35793579 17 grants to support the construction and operation of a
35803580 18 new energy storage facility or facilities in
35813581 19 accordance with this subsection (c-5) shall, within 60
35823582 20 days following the Commission's approval of the
35833583 21 applicant to contract to supply renewable energy
35843584 22 credits or within 60 days following execution of a
35853585 23 grant contract with the Department, as applicable,
35863586 24 submit to the Commission a diversity, equity, and
35873587 25 inclusion plan setting forth the applicant's or
35883588 26 owner's numeric goals for the diversity composition of
35893589
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35913591
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35953595
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35993599 1 its supplier entities for the new renewable energy
36003600 2 facility or new energy storage facility, as
36013601 3 applicable, which shall be referred to for purposes of
36023602 4 this paragraph (11) as the project, and the
36033603 5 applicant's or owner's action plan and schedule for
36043604 6 achieving those goals.
36053605 7 (B) For purposes of this paragraph (11), diversity
36063606 8 composition shall be based on the percentage, which
36073607 9 shall be a minimum of 25%, of eligible expenditures
36083608 10 for contract awards for materials and services (which
36093609 11 shall be defined in the plan) to business enterprises
36103610 12 owned by minority persons, women, or persons with
36113611 13 disabilities as defined in Section 2 of the Business
36123612 14 Enterprise for Minorities, Women, and Persons with
36133613 15 Disabilities Act, to LGBTQ business enterprises, to
36143614 16 veteran-owned business enterprises, and to business
36153615 17 enterprises located in environmental justice
36163616 18 communities. The diversity composition goals of the
36173617 19 plan may include eligible expenditures in areas for
36183618 20 vendor or supplier opportunities in addition to
36193619 21 development and construction of the project, and may
36203620 22 exclude from eligible expenditures materials and
36213621 23 services with limited market availability, limited
36223622 24 production and availability from suppliers in the
36233623 25 United States, such as solar panels and storage
36243624 26 batteries, and material and services that are subject
36253625
36263626
36273627
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36313631
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36353635 1 to critical energy infrastructure or cybersecurity
36363636 2 requirements or restrictions. The plan may provide
36373637 3 that the diversity composition goals may be met
36383638 4 through Tier 1 Direct or Tier 2 subcontracting
36393639 5 expenditures or a combination thereof for the project.
36403640 6 (C) The plan shall provide for, but not be limited
36413641 7 to: (i) internal initiatives, including multi-tier
36423642 8 initiatives, by the applicant or owner, or by its
36433643 9 engineering, procurement and construction contractor
36443644 10 if one is used for the project, which for purposes of
36453645 11 this paragraph (11) shall be referred to as the EPC
36463646 12 contractor, to enable diverse businesses to be
36473647 13 considered fairly for selection to provide materials
36483648 14 and services; (ii) requirements for the applicant or
36493649 15 owner or its EPC contractor to proactively solicit and
36503650 16 utilize diverse businesses to provide materials and
36513651 17 services; and (iii) requirements for the applicant or
36523652 18 owner or its EPC contractor to hire a diverse
36533653 19 workforce for the project. The plan shall include a
36543654 20 description of the applicant's or owner's diversity
36553655 21 recruiting efforts both for the project and for other
36563656 22 areas of the applicant's or owner's business
36573657 23 operations. The plan shall provide for the imposition
36583658 24 of financial penalties on the applicant's or owner's
36593659 25 EPC contractor for failure to exercise best efforts to
36603660 26 comply with and execute the EPC contractor's diversity
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36713671 1 obligations under the plan. The plan may provide for
36723672 2 the applicant or owner to set aside a portion of the
36733673 3 work on the project to serve as an incubation program
36743674 4 for qualified businesses, as specified in the plan,
36753675 5 owned by minority persons, women, persons with
36763676 6 disabilities, LGBTQ persons, and veterans, and
36773677 7 businesses located in environmental justice
36783678 8 communities, seeking to enter the renewable energy
36793679 9 industry.
36803680 10 (D) The applicant or owner may submit a revised or
36813681 11 updated plan to the Commission from time to time as
36823682 12 circumstances warrant. The applicant or owner shall
36833683 13 file annual reports with the Commission detailing the
36843684 14 applicant's or owner's progress in implementing its
36853685 15 plan and achieving its goals and any modifications the
36863686 16 applicant or owner has made to its plan to better
36873687 17 achieve its diversity, equity and inclusion goals. The
36883688 18 applicant or owner shall file a final report on the
36893689 19 fifth June 1 following the commercial operation date
36903690 20 of the new renewable energy resource or new energy
36913691 21 storage facility, but the applicant or owner shall
36923692 22 thereafter continue to be subject to applicable
36933693 23 reporting requirements of Section 5-117 of the Public
36943694 24 Utilities Act.
36953695 25 (c-10) Equity accountability system. It is the purpose of
36963696 26 this subsection (c-10) to create an equity accountability
36973697
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37073707 1 system, which includes the minimum equity standards for all
37083708 2 renewable energy procurements, the equity category of the
37093709 3 Adjustable Block Program, and the equity prioritization for
37103710 4 noncompetitive procurements, that is successful in advancing
37113711 5 priority access to the clean energy economy for businesses and
37123712 6 workers from communities that have been excluded from economic
37133713 7 opportunities in the energy sector, have been subject to
37143714 8 disproportionate levels of pollution, and have
37153715 9 disproportionately experienced negative public health
37163716 10 outcomes. Further, it is the purpose of this subsection to
37173717 11 ensure that this equity accountability system is successful in
37183718 12 advancing equity across Illinois by providing access to the
37193719 13 clean energy economy for businesses and workers from
37203720 14 communities that have been historically excluded from economic
37213721 15 opportunities in the energy sector, have been subject to
37223722 16 disproportionate levels of pollution, and have
37233723 17 disproportionately experienced negative public health
37243724 18 outcomes.
37253725 19 (1) Minimum equity standards. The Agency shall create
37263726 20 programs with the purpose of increasing access to and
37273727 21 development of equity eligible contractors, who are prime
37283728 22 contractors and subcontractors, across all of the programs
37293729 23 it manages. All applications for renewable energy credit
37303730 24 procurements shall comply with specific minimum equity
37313731 25 commitments. Starting in the delivery year immediately
37323732 26 following the next long-term renewable resources
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37433743 1 procurement plan, at least 10% of the project workforce
37443744 2 for each entity participating in a procurement program
37453745 3 outlined in this subsection (c-10) must be done by equity
37463746 4 eligible persons or equity eligible contractors. The
37473747 5 Agency shall increase the minimum percentage each delivery
37483748 6 year thereafter by increments that ensure a statewide
37493749 7 average of 30% of the project workforce for each entity
37503750 8 participating in a procurement program is done by equity
37513751 9 eligible persons or equity eligible contractors by 2030.
37523752 10 The Agency shall propose a schedule of percentage
37533753 11 increases to the minimum equity standards in its draft
37543754 12 revised renewable energy resources procurement plan
37553755 13 submitted to the Commission for approval pursuant to
37563756 14 paragraph (5) of subsection (b) of Section 16-111.5 of the
37573757 15 Public Utilities Act. In determining these annual
37583758 16 increases, the Agency shall have the discretion to
37593759 17 establish different minimum equity standards for different
37603760 18 types of procurements and different regions of the State
37613761 19 if the Agency finds that doing so will further the
37623762 20 purposes of this subsection (c-10). The proposed schedule
37633763 21 of annual increases shall be revisited and updated on an
37643764 22 annual basis. Revisions shall be developed with
37653765 23 stakeholder input, including from equity eligible persons,
37663766 24 equity eligible contractors, clean energy industry
37673767 25 representatives, and community-based organizations that
37683768 26 work with such persons and contractors.
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37793779 1 (A) At the start of each delivery year, the Agency
37803780 2 shall require a compliance plan from each entity
37813781 3 participating in a procurement program of subsection
37823782 4 (c) of this Section that demonstrates how they will
37833783 5 achieve compliance with the minimum equity standard
37843784 6 percentage for work completed in that delivery year.
37853785 7 If an entity applies for its approved vendor or
37863786 8 designee status between delivery years, the Agency
37873787 9 shall require a compliance plan at the time of
37883788 10 application.
37893789 11 (B) Halfway through each delivery year, the Agency
37903790 12 shall require each entity participating in a
37913791 13 procurement program to confirm that it will achieve
37923792 14 compliance in that delivery year, when applicable. The
37933793 15 Agency may offer corrective action plans to entities
37943794 16 that are not on track to achieve compliance.
37953795 17 (C) At the end of each delivery year, each entity
37963796 18 participating and completing work in that delivery
37973797 19 year in a procurement program of subsection (c) shall
37983798 20 submit a report to the Agency that demonstrates how it
37993799 21 achieved compliance with the minimum equity standards
38003800 22 percentage for that delivery year.
38013801 23 (D) The Agency shall prohibit participation in
38023802 24 procurement programs by an approved vendor or
38033803 25 designee, as applicable, or entities with which an
38043804 26 approved vendor or designee, as applicable, shares a
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38153815 1 common parent company if an approved vendor or
38163816 2 designee, as applicable, failed to meet the minimum
38173817 3 equity standards for the prior delivery year. Waivers
38183818 4 approved for lack of equity eligible persons or equity
38193819 5 eligible contractors in a geographic area of a project
38203820 6 shall not count against the approved vendor or
38213821 7 designee. The Agency shall offer a corrective action
38223822 8 plan for any such entities to assist them in obtaining
38233823 9 compliance and shall allow continued access to
38243824 10 procurement programs upon an approved vendor or
38253825 11 designee demonstrating compliance.
38263826 12 (E) The Agency shall pursue efficiencies achieved
38273827 13 by combining with other approved vendor or designee
38283828 14 reporting.
38293829 15 (2) Equity accountability system within the Adjustable
38303830 16 Block program. The equity category described in item (vi)
38313831 17 of subparagraph (K) of subsection (c) is only available to
38323832 18 applicants that are equity eligible contractors.
38333833 19 (3) Equity accountability system within competitive
38343834 20 procurements. Through its long-term renewable resources
38353835 21 procurement plan, the Agency shall develop requirements
38363836 22 for ensuring that competitive procurement processes,
38373837 23 including utility-scale solar, utility-scale wind, and
38383838 24 brownfield site photovoltaic projects, advance the equity
38393839 25 goals of this subsection (c-10). Subject to Commission
38403840 26 approval, the Agency shall develop bid application
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38513851 1 requirements and a bid evaluation methodology for ensuring
38523852 2 that utilization of equity eligible contractors, whether
38533853 3 as bidders or as participants on project development, is
38543854 4 optimized, including requiring that winning or successful
38553855 5 applicants for utility-scale projects are or will partner
38563856 6 with equity eligible contractors and giving preference to
38573857 7 bids through which a higher portion of contract value
38583858 8 flows to equity eligible contractors. To the extent
38593859 9 practicable, entities participating in competitive
38603860 10 procurements shall also be required to meet all the equity
38613861 11 accountability requirements for approved vendors and their
38623862 12 designees under this subsection (c-10). In developing
38633863 13 these requirements, the Agency shall also consider whether
38643864 14 equity goals can be further advanced through additional
38653865 15 measures.
38663866 16 (4) In the first revision to the long-term renewable
38673867 17 energy resources procurement plan and each revision
38683868 18 thereafter, the Agency shall include the following:
38693869 19 (A) The current status and number of equity
38703870 20 eligible contractors listed in the Energy Workforce
38713871 21 Equity Database designed in subsection (c-25),
38723872 22 including the number of equity eligible contractors
38733873 23 with current certifications as issued by the Agency.
38743874 24 (B) A mechanism for measuring, tracking, and
38753875 25 reporting project workforce at the approved vendor or
38763876 26 designee level, as applicable, which shall include a
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38873887 1 measurement methodology and records to be made
38883888 2 available for audit by the Agency or the Program
38893889 3 Administrator.
38903890 4 (C) A program for approved vendors, designees,
38913891 5 eligible persons, and equity eligible contractors to
38923892 6 receive trainings, guidance, and other support from
38933893 7 the Agency or its designee regarding the equity
38943894 8 category outlined in item (vi) of subparagraph (K) of
38953895 9 paragraph (1) of subsection (c) and in meeting the
38963896 10 minimum equity standards of this subsection (c-10).
38973897 11 (D) A process for certifying equity eligible
38983898 12 contractors and equity eligible persons. The
38993899 13 certification process shall coordinate with the Energy
39003900 14 Workforce Equity Database set forth in subsection
39013901 15 (c-25).
39023902 16 (E) An application for waiver of the minimum
39033903 17 equity standards of this subsection, which the Agency
39043904 18 shall have the discretion to grant in rare
39053905 19 circumstances. The Agency may grant such a waiver
39063906 20 where the applicant provides evidence of significant
39073907 21 efforts toward meeting the minimum equity commitment,
39083908 22 including: use of the Energy Workforce Equity
39093909 23 Database; efforts to hire or contract with entities
39103910 24 that hire eligible persons; and efforts to establish
39113911 25 contracting relationships with eligible contractors.
39123912 26 The Agency shall support applicants in understanding
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39233923 1 the Energy Workforce Equity Database and other
39243924 2 resources for pursuing compliance of the minimum
39253925 3 equity standards. Waivers shall be project-specific,
39263926 4 unless the Agency deems it necessary to grant a waiver
39273927 5 across a portfolio of projects, and in effect for no
39283928 6 longer than one year. Any waiver extension or
39293929 7 subsequent waiver request from an applicant shall be
39303930 8 subject to the requirements of this Section and shall
39313931 9 specify efforts made to reach compliance. When
39323932 10 considering whether to grant a waiver, and to what
39333933 11 extent, the Agency shall consider the degree to which
39343934 12 similarly situated applicants have been able to meet
39353935 13 these minimum equity commitments. For repeated waiver
39363936 14 requests for specific lack of eligible persons or
39373937 15 eligible contractors available, the Agency shall make
39383938 16 recommendations to target recruitment to add such
39393939 17 eligible persons or eligible contractors to the
39403940 18 database.
39413941 19 (5) The Agency shall collect information about work on
39423942 20 projects or portfolios of projects subject to these
39433943 21 minimum equity standards to ensure compliance with this
39443944 22 subsection (c-10). Reporting in furtherance of this
39453945 23 requirement may be combined with other annual reporting
39463946 24 requirements. Such reporting shall include proof of
39473947 25 certification of each equity eligible contractor or equity
39483948 26 eligible person during the applicable time period.
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39593959 1 (6) The Agency shall keep confidential all information
39603960 2 and communication that provides private or personal
39613961 3 information.
39623962 4 (7) Modifications to the equity accountability system.
39633963 5 As part of the update of the long-term renewable resources
39643964 6 procurement plan to be initiated in 2023, or sooner if the
39653965 7 Agency deems necessary, the Agency shall determine the
39663966 8 extent to which the equity accountability system described
39673967 9 in this subsection (c-10) has advanced the goals of this
39683968 10 amendatory Act of the 102nd General Assembly, including
39693969 11 through the inclusion of equity eligible persons and
39703970 12 equity eligible contractors in renewable energy credit
39713971 13 projects. If the Agency finds that the equity
39723972 14 accountability system has failed to meet those goals to
39733973 15 its fullest potential, the Agency may revise the following
39743974 16 criteria for future Agency procurements: (A) the
39753975 17 percentage of project workforce, or other appropriate
39763976 18 workforce measure, certified as equity eligible persons or
39773977 19 equity eligible contractors; (B) definitions for equity
39783978 20 investment eligible persons and equity investment eligible
39793979 21 community; and (C) such other modifications necessary to
39803980 22 advance the goals of this amendatory Act of the 102nd
39813981 23 General Assembly effectively. Such revised criteria may
39823982 24 also establish distinct equity accountability systems for
39833983 25 different types of procurements or different regions of
39843984 26 the State if the Agency finds that doing so will further
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39953995 1 the purposes of such programs. Revisions shall be
39963996 2 developed with stakeholder input, including from equity
39973997 3 eligible persons, equity eligible contractors, and
39983998 4 community-based organizations that work with such persons
39993999 5 and contractors.
40004000 6 (c-15) Racial discrimination elimination powers and
40014001 7 process.
40024002 8 (1) Purpose. It is the purpose of this subsection to
40034003 9 empower the Agency and other State actors to remedy racial
40044004 10 discrimination in Illinois' clean energy economy as
40054005 11 effectively and expediently as possible, including through
40064006 12 the use of race-conscious remedies, such as race-conscious
40074007 13 contracting and hiring goals, as consistent with State and
40084008 14 federal law.
40094009 15 (2) Racial disparity and discrimination review
40104010 16 process.
40114011 17 (A) Within one year after awarding contracts using
40124012 18 the equity actions processes established in this
40134013 19 Section, the Agency shall publish a report evaluating
40144014 20 the effectiveness of the equity actions point criteria
40154015 21 of this Section in increasing participation of equity
40164016 22 eligible persons and equity eligible contractors. The
40174017 23 report shall disaggregate participating workers and
40184018 24 contractors by race and ethnicity. The report shall be
40194019 25 forwarded to the Governor, the General Assembly, and
40204020 26 the Illinois Commerce Commission and be made available
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40314031 1 to the public.
40324032 2 (B) As soon as is practicable thereafter, the
40334033 3 Agency, in consultation with the Department of
40344034 4 Commerce and Economic Opportunity, Department of
40354035 5 Labor, and other agencies that may be relevant, shall
40364036 6 commission and publish a disparity and availability
40374037 7 study that measures the presence and impact of
40384038 8 discrimination on minority businesses and workers in
40394039 9 Illinois' clean energy economy. The Agency may hire
40404040 10 consultants and experts to conduct the disparity and
40414041 11 availability study, with the retention of those
40424042 12 consultants and experts exempt from the requirements
40434043 13 of Section 20-10 of the Illinois Procurement Code. The
40444044 14 Illinois Power Agency shall forward a copy of its
40454045 15 findings and recommendations to the Governor, the
40464046 16 General Assembly, and the Illinois Commerce
40474047 17 Commission. If the disparity and availability study
40484048 18 establishes a strong basis in evidence that there is
40494049 19 discrimination in Illinois' clean energy economy, the
40504050 20 Agency, Department of Commerce and Economic
40514051 21 Opportunity, Department of Labor, Department of
40524052 22 Corrections, and other appropriate agencies shall take
40534053 23 appropriate remedial actions, including race-conscious
40544054 24 remedial actions as consistent with State and federal
40554055 25 law, to effectively remedy this discrimination. Such
40564056 26 remedies may include modification of the equity
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40674067 1 accountability system as described in subsection
40684068 2 (c-10).
40694069 3 (c-20) Program data collection.
40704070 4 (1) Purpose. Data collection, data analysis, and
40714071 5 reporting are critical to ensure that the benefits of the
40724072 6 clean energy economy provided to Illinois residents and
40734073 7 businesses are equitably distributed across the State. The
40744074 8 Agency shall collect data from program applicants in order
40754075 9 to track and improve equitable distribution of benefits
40764076 10 across Illinois communities for all procurements the
40774077 11 Agency conducts. The Agency shall use this data to, among
40784078 12 other things, measure any potential impact of racial
40794079 13 discrimination on the distribution of benefits and provide
40804080 14 information necessary to correct any discrimination
40814081 15 through methods consistent with State and federal law.
40824082 16 (2) Agency collection of program data. The Agency
40834083 17 shall collect demographic and geographic data for each
40844084 18 entity awarded contracts under any Agency-administered
40854085 19 program.
40864086 20 (3) Required information to be collected. The Agency
40874087 21 shall collect the following information from applicants
40884088 22 and program participants where applicable:
40894089 23 (A) demographic information, including racial or
40904090 24 ethnic identity for real persons employed, contracted,
40914091 25 or subcontracted through the program and owners of
40924092 26 businesses or entities that apply to receive renewable
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41034103 1 energy credits from the Agency;
41044104 2 (B) geographic location of the residency of real
41054105 3 persons employed, contracted, or subcontracted through
41064106 4 the program and geographic location of the
41074107 5 headquarters of the business or entity that applies to
41084108 6 receive renewable energy credits from the Agency; and
41094109 7 (C) any other information the Agency determines is
41104110 8 necessary for the purpose of achieving the purpose of
41114111 9 this subsection.
41124112 10 (4) Publication of collected information. The Agency
41134113 11 shall publish, at least annually, information on the
41144114 12 demographics of program participants on an aggregate
41154115 13 basis.
41164116 14 (5) Nothing in this subsection shall be interpreted to
41174117 15 limit the authority of the Agency, or other agency or
41184118 16 department of the State, to require or collect demographic
41194119 17 information from applicants of other State programs.
41204120 18 (c-25) Energy Workforce Equity Database.
41214121 19 (1) The Agency, in consultation with the Department of
41224122 20 Commerce and Economic Opportunity, shall create an Energy
41234123 21 Workforce Equity Database, and may contract with a third
41244124 22 party to do so ("database program administrator"). If the
41254125 23 Department decides to contract with a third party, that
41264126 24 third party shall be exempt from the requirements of
41274127 25 Section 20-10 of the Illinois Procurement Code. The Energy
41284128 26 Workforce Equity Database shall be a searchable database
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41394139 1 of suppliers, vendors, and subcontractors for clean energy
41404140 2 industries that is:
41414141 3 (A) publicly accessible;
41424142 4 (B) easy for people to find and use;
41434143 5 (C) organized by company specialty or field;
41444144 6 (D) region-specific; and
41454145 7 (E) populated with information including, but not
41464146 8 limited to, contacts for suppliers, vendors, or
41474147 9 subcontractors who are minority and women-owned
41484148 10 business enterprise certified or who participate or
41494149 11 have participated in any of the programs described in
41504150 12 this Act.
41514151 13 (2) The Agency shall create an easily accessible,
41524152 14 public facing online tool using the database information
41534153 15 that includes, at a minimum, the following:
41544154 16 (A) a map of environmental justice and equity
41554155 17 investment eligible communities;
41564156 18 (B) job postings and recruiting opportunities;
41574157 19 (C) a means by which recruiting clean energy
41584158 20 companies can find and interact with current or former
41594159 21 participants of clean energy workforce training
41604160 22 programs;
41614161 23 (D) information on workforce training service
41624162 24 providers and training opportunities available to
41634163 25 prospective workers;
41644164 26 (E) renewable energy company diversity reporting;
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41754175 1 (F) a list of equity eligible contractors with
41764176 2 their contact information, types of work performed,
41774177 3 and locations worked in;
41784178 4 (G) reporting on outcomes of the programs
41794179 5 described in the workforce programs of the Energy
41804180 6 Transition Act, including information such as, but not
41814181 7 limited to, retention rate, graduation rate, and
41824182 8 placement rates of trainees; and
41834183 9 (H) information about the Jobs and Environmental
41844184 10 Justice Grant Program, the Clean Energy Jobs and
41854185 11 Justice Fund, and other sources of capital.
41864186 12 (3) The Agency shall ensure the database is regularly
41874187 13 updated to ensure information is current and shall
41884188 14 coordinate with the Department of Commerce and Economic
41894189 15 Opportunity to ensure that it includes information on
41904190 16 individuals and entities that are or have participated in
41914191 17 the Clean Jobs Workforce Network Program, Clean Energy
41924192 18 Contractor Incubator Program, Returning Residents Clean
41934193 19 Jobs Training Program, or Clean Energy Primes Contractor
41944194 20 Accelerator Program.
41954195 21 (c-30) Enforcement of minimum equity standards. All
41964196 22 entities seeking renewable energy credits must submit an
41974197 23 annual report to demonstrate compliance with each of the
41984198 24 equity commitments required under subsection (c-10). If the
41994199 25 Agency concludes the entity has not met or maintained its
42004200 26 minimum equity standards required under the applicable
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42114211 1 subparagraphs under subsection (c-10), the Agency shall deny
42124212 2 the entity's ability to participate in procurement programs in
42134213 3 subsection (c), including by withholding approved vendor or
42144214 4 designee status. The Agency may require the entity to enter
42154215 5 into a corrective action plan. An entity that is not
42164216 6 recertified for failing to meet required equity actions in
42174217 7 subparagraph (c-10) may reapply once they have a corrective
42184218 8 action plan and achieve compliance with the minimum equity
42194219 9 standards.
42204220 10 (d) Clean coal portfolio standard.
42214221 11 (1) The procurement plans shall include electricity
42224222 12 generated using clean coal. Each utility shall enter into
42234223 13 one or more sourcing agreements with the initial clean
42244224 14 coal facility, as provided in paragraph (3) of this
42254225 15 subsection (d), covering electricity generated by the
42264226 16 initial clean coal facility representing at least 5% of
42274227 17 each utility's total supply to serve the load of eligible
42284228 18 retail customers in 2015 and each year thereafter, as
42294229 19 described in paragraph (3) of this subsection (d), subject
42304230 20 to the limits specified in paragraph (2) of this
42314231 21 subsection (d). It is the goal of the State that by January
42324232 22 1, 2025, 25% of the electricity used in the State shall be
42334233 23 generated by cost-effective clean coal facilities. For
42344234 24 purposes of this subsection (d), "cost-effective" means
42354235 25 that the expenditures pursuant to such sourcing agreements
42364236 26 do not cause the limit stated in paragraph (2) of this
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42474247 1 subsection (d) to be exceeded and do not exceed cost-based
42484248 2 benchmarks, which shall be developed to assess all
42494249 3 expenditures pursuant to such sourcing agreements covering
42504250 4 electricity generated by clean coal facilities, other than
42514251 5 the initial clean coal facility, by the procurement
42524252 6 administrator, in consultation with the Commission staff,
42534253 7 Agency staff, and the procurement monitor and shall be
42544254 8 subject to Commission review and approval.
42554255 9 A utility party to a sourcing agreement shall
42564256 10 immediately retire any emission credits that it receives
42574257 11 in connection with the electricity covered by such
42584258 12 agreement.
42594259 13 Utilities shall maintain adequate records documenting
42604260 14 the purchases under the sourcing agreement to comply with
42614261 15 this subsection (d) and shall file an accounting with the
42624262 16 load forecast that must be filed with the Agency by July 15
42634263 17 of each year, in accordance with subsection (d) of Section
42644264 18 16-111.5 of the Public Utilities Act.
42654265 19 A utility shall be deemed to have complied with the
42664266 20 clean coal portfolio standard specified in this subsection
42674267 21 (d) if the utility enters into a sourcing agreement as
42684268 22 required by this subsection (d).
42694269 23 (2) For purposes of this subsection (d), the required
42704270 24 execution of sourcing agreements with the initial clean
42714271 25 coal facility for a particular year shall be measured as a
42724272 26 percentage of the actual amount of electricity
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42834283 1 (megawatt-hours) supplied by the electric utility to
42844284 2 eligible retail customers in the planning year ending
42854285 3 immediately prior to the agreement's execution. For
42864286 4 purposes of this subsection (d), the amount paid per
42874287 5 kilowatthour means the total amount paid for electric
42884288 6 service expressed on a per kilowatthour basis. For
42894289 7 purposes of this subsection (d), the total amount paid for
42904290 8 electric service includes without limitation amounts paid
42914291 9 for supply, transmission, distribution, surcharges and
42924292 10 add-on taxes.
42934293 11 Notwithstanding the requirements of this subsection
42944294 12 (d), the total amount paid under sourcing agreements with
42954295 13 clean coal facilities pursuant to the procurement plan for
42964296 14 any given year shall be reduced by an amount necessary to
42974297 15 limit the annual estimated average net increase due to the
42984298 16 costs of these resources included in the amounts paid by
42994299 17 eligible retail customers in connection with electric
43004300 18 service to:
43014301 19 (A) in 2010, no more than 0.5% of the amount paid
43024302 20 per kilowatthour by those customers during the year
43034303 21 ending May 31, 2009;
43044304 22 (B) in 2011, the greater of an additional 0.5% of
43054305 23 the amount paid per kilowatthour by those customers
43064306 24 during the year ending May 31, 2010 or 1% of the amount
43074307 25 paid per kilowatthour by those customers during the
43084308 26 year ending May 31, 2009;
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43194319 1 (C) in 2012, the greater of an additional 0.5% of
43204320 2 the amount paid per kilowatthour by those customers
43214321 3 during the year ending May 31, 2011 or 1.5% of the
43224322 4 amount paid per kilowatthour by those customers during
43234323 5 the year ending May 31, 2009;
43244324 6 (D) in 2013, the greater of an additional 0.5% of
43254325 7 the amount paid per kilowatthour by those customers
43264326 8 during the year ending May 31, 2012 or 2% of the amount
43274327 9 paid per kilowatthour by those customers during the
43284328 10 year ending May 31, 2009; and
43294329 11 (E) thereafter, the total amount paid under
43304330 12 sourcing agreements with clean coal facilities
43314331 13 pursuant to the procurement plan for any single year
43324332 14 shall be reduced by an amount necessary to limit the
43334333 15 estimated average net increase due to the cost of
43344334 16 these resources included in the amounts paid by
43354335 17 eligible retail customers in connection with electric
43364336 18 service to no more than the greater of (i) 2.015% of
43374337 19 the amount paid per kilowatthour by those customers
43384338 20 during the year ending May 31, 2009 or (ii) the
43394339 21 incremental amount per kilowatthour paid for these
43404340 22 resources in 2013. These requirements may be altered
43414341 23 only as provided by statute.
43424342 24 No later than June 30, 2015, the Commission shall
43434343 25 review the limitation on the total amount paid under
43444344 26 sourcing agreements, if any, with clean coal facilities
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43554355 1 pursuant to this subsection (d) and report to the General
43564356 2 Assembly its findings as to whether that limitation unduly
43574357 3 constrains the amount of electricity generated by
43584358 4 cost-effective clean coal facilities that is covered by
43594359 5 sourcing agreements.
43604360 6 (3) Initial clean coal facility. In order to promote
43614361 7 development of clean coal facilities in Illinois, each
43624362 8 electric utility subject to this Section shall execute a
43634363 9 sourcing agreement to source electricity from a proposed
43644364 10 clean coal facility in Illinois (the "initial clean coal
43654365 11 facility") that will have a nameplate capacity of at least
43664366 12 500 MW when commercial operation commences, that has a
43674367 13 final Clean Air Act permit on June 1, 2009 (the effective
43684368 14 date of Public Act 95-1027), and that will meet the
43694369 15 definition of clean coal facility in Section 1-10 of this
43704370 16 Act when commercial operation commences. The sourcing
43714371 17 agreements with this initial clean coal facility shall be
43724372 18 subject to both approval of the initial clean coal
43734373 19 facility by the General Assembly and satisfaction of the
43744374 20 requirements of paragraph (4) of this subsection (d) and
43754375 21 shall be executed within 90 days after any such approval
43764376 22 by the General Assembly. The Agency and the Commission
43774377 23 shall have authority to inspect all books and records
43784378 24 associated with the initial clean coal facility during the
43794379 25 term of such a sourcing agreement. A utility's sourcing
43804380 26 agreement for electricity produced by the initial clean
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43914391 1 coal facility shall include:
43924392 2 (A) a formula contractual price (the "contract
43934393 3 price") approved pursuant to paragraph (4) of this
43944394 4 subsection (d), which shall:
43954395 5 (i) be determined using a cost of service
43964396 6 methodology employing either a level or deferred
43974397 7 capital recovery component, based on a capital
43984398 8 structure consisting of 45% equity and 55% debt,
43994399 9 and a return on equity as may be approved by the
44004400 10 Federal Energy Regulatory Commission, which in any
44014401 11 case may not exceed the lower of 11.5% or the rate
44024402 12 of return approved by the General Assembly
44034403 13 pursuant to paragraph (4) of this subsection (d);
44044404 14 and
44054405 15 (ii) provide that all miscellaneous net
44064406 16 revenue, including but not limited to net revenue
44074407 17 from the sale of emission allowances, if any,
44084408 18 substitute natural gas, if any, grants or other
44094409 19 support provided by the State of Illinois or the
44104410 20 United States Government, firm transmission
44114411 21 rights, if any, by-products produced by the
44124412 22 facility, energy or capacity derived from the
44134413 23 facility and not covered by a sourcing agreement
44144414 24 pursuant to paragraph (3) of this subsection (d)
44154415 25 or item (5) of subsection (d) of Section 16-115 of
44164416 26 the Public Utilities Act, whether generated from
44174417
44184418
44194419
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44234423
44244424
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44264426 HB1463 - 123 - LRB103 05819 AMQ 50839 b
44274427 1 the synthesis gas derived from coal, from SNG, or
44284428 2 from natural gas, shall be credited against the
44294429 3 revenue requirement for this initial clean coal
44304430 4 facility;
44314431 5 (B) power purchase provisions, which shall:
44324432 6 (i) provide that the utility party to such
44334433 7 sourcing agreement shall pay the contract price
44344434 8 for electricity delivered under such sourcing
44354435 9 agreement;
44364436 10 (ii) require delivery of electricity to the
44374437 11 regional transmission organization market of the
44384438 12 utility that is party to such sourcing agreement;
44394439 13 (iii) require the utility party to such
44404440 14 sourcing agreement to buy from the initial clean
44414441 15 coal facility in each hour an amount of energy
44424442 16 equal to all clean coal energy made available from
44434443 17 the initial clean coal facility during such hour
44444444 18 times a fraction, the numerator of which is such
44454445 19 utility's retail market sales of electricity
44464446 20 (expressed in kilowatthours sold) in the State
44474447 21 during the prior calendar month and the
44484448 22 denominator of which is the total retail market
44494449 23 sales of electricity (expressed in kilowatthours
44504450 24 sold) in the State by utilities during such prior
44514451 25 month and the sales of electricity (expressed in
44524452 26 kilowatthours sold) in the State by alternative
44534453
44544454
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44594459
44604460
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44624462 HB1463 - 124 - LRB103 05819 AMQ 50839 b
44634463 1 retail electric suppliers during such prior month
44644464 2 that are subject to the requirements of this
44654465 3 subsection (d) and paragraph (5) of subsection (d)
44664466 4 of Section 16-115 of the Public Utilities Act,
44674467 5 provided that the amount purchased by the utility
44684468 6 in any year will be limited by paragraph (2) of
44694469 7 this subsection (d); and
44704470 8 (iv) be considered pre-existing contracts in
44714471 9 such utility's procurement plans for eligible
44724472 10 retail customers;
44734473 11 (C) contract for differences provisions, which
44744474 12 shall:
44754475 13 (i) require the utility party to such sourcing
44764476 14 agreement to contract with the initial clean coal
44774477 15 facility in each hour with respect to an amount of
44784478 16 energy equal to all clean coal energy made
44794479 17 available from the initial clean coal facility
44804480 18 during such hour times a fraction, the numerator
44814481 19 of which is such utility's retail market sales of
44824482 20 electricity (expressed in kilowatthours sold) in
44834483 21 the utility's service territory in the State
44844484 22 during the prior calendar month and the
44854485 23 denominator of which is the total retail market
44864486 24 sales of electricity (expressed in kilowatthours
44874487 25 sold) in the State by utilities during such prior
44884488 26 month and the sales of electricity (expressed in
44894489
44904490
44914491
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44954495
44964496
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44984498 HB1463 - 125 - LRB103 05819 AMQ 50839 b
44994499 1 kilowatthours sold) in the State by alternative
45004500 2 retail electric suppliers during such prior month
45014501 3 that are subject to the requirements of this
45024502 4 subsection (d) and paragraph (5) of subsection (d)
45034503 5 of Section 16-115 of the Public Utilities Act,
45044504 6 provided that the amount paid by the utility in
45054505 7 any year will be limited by paragraph (2) of this
45064506 8 subsection (d);
45074507 9 (ii) provide that the utility's payment
45084508 10 obligation in respect of the quantity of
45094509 11 electricity determined pursuant to the preceding
45104510 12 clause (i) shall be limited to an amount equal to
45114511 13 (1) the difference between the contract price
45124512 14 determined pursuant to subparagraph (A) of
45134513 15 paragraph (3) of this subsection (d) and the
45144514 16 day-ahead price for electricity delivered to the
45154515 17 regional transmission organization market of the
45164516 18 utility that is party to such sourcing agreement
45174517 19 (or any successor delivery point at which such
45184518 20 utility's supply obligations are financially
45194519 21 settled on an hourly basis) (the "reference
45204520 22 price") on the day preceding the day on which the
45214521 23 electricity is delivered to the initial clean coal
45224522 24 facility busbar, multiplied by (2) the quantity of
45234523 25 electricity determined pursuant to the preceding
45244524 26 clause (i); and
45254525
45264526
45274527
45284528
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45314531
45324532
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45344534 HB1463 - 126 - LRB103 05819 AMQ 50839 b
45354535 1 (iii) not require the utility to take physical
45364536 2 delivery of the electricity produced by the
45374537 3 facility;
45384538 4 (D) general provisions, which shall:
45394539 5 (i) specify a term of no more than 30 years,
45404540 6 commencing on the commercial operation date of the
45414541 7 facility;
45424542 8 (ii) provide that utilities shall maintain
45434543 9 adequate records documenting purchases under the
45444544 10 sourcing agreements entered into to comply with
45454545 11 this subsection (d) and shall file an accounting
45464546 12 with the load forecast that must be filed with the
45474547 13 Agency by July 15 of each year, in accordance with
45484548 14 subsection (d) of Section 16-111.5 of the Public
45494549 15 Utilities Act;
45504550 16 (iii) provide that all costs associated with
45514551 17 the initial clean coal facility will be
45524552 18 periodically reported to the Federal Energy
45534553 19 Regulatory Commission and to purchasers in
45544554 20 accordance with applicable laws governing
45554555 21 cost-based wholesale power contracts;
45564556 22 (iv) permit the Illinois Power Agency to
45574557 23 assume ownership of the initial clean coal
45584558 24 facility, without monetary consideration and
45594559 25 otherwise on reasonable terms acceptable to the
45604560 26 Agency, if the Agency so requests no less than 3
45614561
45624562
45634563
45644564
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45674567
45684568
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45714571 1 years prior to the end of the stated contract
45724572 2 term;
45734573 3 (v) require the owner of the initial clean
45744574 4 coal facility to provide documentation to the
45754575 5 Commission each year, starting in the facility's
45764576 6 first year of commercial operation, accurately
45774577 7 reporting the quantity of carbon emissions from
45784578 8 the facility that have been captured and
45794579 9 sequestered and report any quantities of carbon
45804580 10 released from the site or sites at which carbon
45814581 11 emissions were sequestered in prior years, based
45824582 12 on continuous monitoring of such sites. If, in any
45834583 13 year after the first year of commercial operation,
45844584 14 the owner of the facility fails to demonstrate
45854585 15 that the initial clean coal facility captured and
45864586 16 sequestered at least 50% of the total carbon
45874587 17 emissions that the facility would otherwise emit
45884588 18 or that sequestration of emissions from prior
45894589 19 years has failed, resulting in the release of
45904590 20 carbon dioxide into the atmosphere, the owner of
45914591 21 the facility must offset excess emissions. Any
45924592 22 such carbon offsets must be permanent, additional,
45934593 23 verifiable, real, located within the State of
45944594 24 Illinois, and legally and practicably enforceable.
45954595 25 The cost of such offsets for the facility that are
45964596 26 not recoverable shall not exceed $15 million in
45974597
45984598
45994599
46004600
46014601
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46034603
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46064606 HB1463 - 128 - LRB103 05819 AMQ 50839 b
46074607 1 any given year. No costs of any such purchases of
46084608 2 carbon offsets may be recovered from a utility or
46094609 3 its customers. All carbon offsets purchased for
46104610 4 this purpose and any carbon emission credits
46114611 5 associated with sequestration of carbon from the
46124612 6 facility must be permanently retired. The initial
46134613 7 clean coal facility shall not forfeit its
46144614 8 designation as a clean coal facility if the
46154615 9 facility fails to fully comply with the applicable
46164616 10 carbon sequestration requirements in any given
46174617 11 year, provided the requisite offsets are
46184618 12 purchased. However, the Attorney General, on
46194619 13 behalf of the People of the State of Illinois, may
46204620 14 specifically enforce the facility's sequestration
46214621 15 requirement and the other terms of this contract
46224622 16 provision. Compliance with the sequestration
46234623 17 requirements and offset purchase requirements
46244624 18 specified in paragraph (3) of this subsection (d)
46254625 19 shall be reviewed annually by an independent
46264626 20 expert retained by the owner of the initial clean
46274627 21 coal facility, with the advance written approval
46284628 22 of the Attorney General. The Commission may, in
46294629 23 the course of the review specified in item (vii),
46304630 24 reduce the allowable return on equity for the
46314631 25 facility if the facility willfully fails to comply
46324632 26 with the carbon capture and sequestration
46334633
46344634
46354635
46364636
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46394639
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46434643 1 requirements set forth in this item (v);
46444644 2 (vi) include limits on, and accordingly
46454645 3 provide for modification of, the amount the
46464646 4 utility is required to source under the sourcing
46474647 5 agreement consistent with paragraph (2) of this
46484648 6 subsection (d);
46494649 7 (vii) require Commission review: (1) to
46504650 8 determine the justness, reasonableness, and
46514651 9 prudence of the inputs to the formula referenced
46524652 10 in subparagraphs (A)(i) through (A)(iii) of
46534653 11 paragraph (3) of this subsection (d), prior to an
46544654 12 adjustment in those inputs including, without
46554655 13 limitation, the capital structure and return on
46564656 14 equity, fuel costs, and other operations and
46574657 15 maintenance costs and (2) to approve the costs to
46584658 16 be passed through to customers under the sourcing
46594659 17 agreement by which the utility satisfies its
46604660 18 statutory obligations. Commission review shall
46614661 19 occur no less than every 3 years, regardless of
46624662 20 whether any adjustments have been proposed, and
46634663 21 shall be completed within 9 months;
46644664 22 (viii) limit the utility's obligation to such
46654665 23 amount as the utility is allowed to recover
46664666 24 through tariffs filed with the Commission,
46674667 25 provided that neither the clean coal facility nor
46684668 26 the utility waives any right to assert federal
46694669
46704670
46714671
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46754675
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46794679 1 pre-emption or any other argument in response to a
46804680 2 purported disallowance of recovery costs;
46814681 3 (ix) limit the utility's or alternative retail
46824682 4 electric supplier's obligation to incur any
46834683 5 liability until such time as the facility is in
46844684 6 commercial operation and generating power and
46854685 7 energy and such power and energy is being
46864686 8 delivered to the facility busbar;
46874687 9 (x) provide that the owner or owners of the
46884688 10 initial clean coal facility, which is the
46894689 11 counterparty to such sourcing agreement, shall
46904690 12 have the right from time to time to elect whether
46914691 13 the obligations of the utility party thereto shall
46924692 14 be governed by the power purchase provisions or
46934693 15 the contract for differences provisions;
46944694 16 (xi) append documentation showing that the
46954695 17 formula rate and contract, insofar as they relate
46964696 18 to the power purchase provisions, have been
46974697 19 approved by the Federal Energy Regulatory
46984698 20 Commission pursuant to Section 205 of the Federal
46994699 21 Power Act;
47004700 22 (xii) provide that any changes to the terms of
47014701 23 the contract, insofar as such changes relate to
47024702 24 the power purchase provisions, are subject to
47034703 25 review under the public interest standard applied
47044704 26 by the Federal Energy Regulatory Commission
47054705
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47114711
47124712
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47144714 HB1463 - 131 - LRB103 05819 AMQ 50839 b
47154715 1 pursuant to Sections 205 and 206 of the Federal
47164716 2 Power Act; and
47174717 3 (xiii) conform with customary lender
47184718 4 requirements in power purchase agreements used as
47194719 5 the basis for financing non-utility generators.
47204720 6 (4) Effective date of sourcing agreements with the
47214721 7 initial clean coal facility. Any proposed sourcing
47224722 8 agreement with the initial clean coal facility shall not
47234723 9 become effective unless the following reports are prepared
47244724 10 and submitted and authorizations and approvals obtained:
47254725 11 (i) Facility cost report. The owner of the initial
47264726 12 clean coal facility shall submit to the Commission,
47274727 13 the Agency, and the General Assembly a front-end
47284728 14 engineering and design study, a facility cost report,
47294729 15 method of financing (including but not limited to
47304730 16 structure and associated costs), and an operating and
47314731 17 maintenance cost quote for the facility (collectively
47324732 18 "facility cost report"), which shall be prepared in
47334733 19 accordance with the requirements of this paragraph (4)
47344734 20 of subsection (d) of this Section, and shall provide
47354735 21 the Commission and the Agency access to the work
47364736 22 papers, relied upon documents, and any other backup
47374737 23 documentation related to the facility cost report.
47384738 24 (ii) Commission report. Within 6 months following
47394739 25 receipt of the facility cost report, the Commission,
47404740 26 in consultation with the Agency, shall submit a report
47414741
47424742
47434743
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47474747
47484748
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47504750 HB1463 - 132 - LRB103 05819 AMQ 50839 b
47514751 1 to the General Assembly setting forth its analysis of
47524752 2 the facility cost report. Such report shall include,
47534753 3 but not be limited to, a comparison of the costs
47544754 4 associated with electricity generated by the initial
47554755 5 clean coal facility to the costs associated with
47564756 6 electricity generated by other types of generation
47574757 7 facilities, an analysis of the rate impacts on
47584758 8 residential and small business customers over the life
47594759 9 of the sourcing agreements, and an analysis of the
47604760 10 likelihood that the initial clean coal facility will
47614761 11 commence commercial operation by and be delivering
47624762 12 power to the facility's busbar by 2016. To assist in
47634763 13 the preparation of its report, the Commission, in
47644764 14 consultation with the Agency, may hire one or more
47654765 15 experts or consultants, the costs of which shall be
47664766 16 paid for by the owner of the initial clean coal
47674767 17 facility. The Commission and Agency may begin the
47684768 18 process of selecting such experts or consultants prior
47694769 19 to receipt of the facility cost report.
47704770 20 (iii) General Assembly approval. The proposed
47714771 21 sourcing agreements shall not take effect unless,
47724772 22 based on the facility cost report and the Commission's
47734773 23 report, the General Assembly enacts authorizing
47744774 24 legislation approving (A) the projected price, stated
47754775 25 in cents per kilowatthour, to be charged for
47764776 26 electricity generated by the initial clean coal
47774777
47784778
47794779
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47834783
47844784
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47874787 1 facility, (B) the projected impact on residential and
47884788 2 small business customers' bills over the life of the
47894789 3 sourcing agreements, and (C) the maximum allowable
47904790 4 return on equity for the project; and
47914791 5 (iv) Commission review. If the General Assembly
47924792 6 enacts authorizing legislation pursuant to
47934793 7 subparagraph (iii) approving a sourcing agreement, the
47944794 8 Commission shall, within 90 days of such enactment,
47954795 9 complete a review of such sourcing agreement. During
47964796 10 such time period, the Commission shall implement any
47974797 11 directive of the General Assembly, resolve any
47984798 12 disputes between the parties to the sourcing agreement
47994799 13 concerning the terms of such agreement, approve the
48004800 14 form of such agreement, and issue an order finding
48014801 15 that the sourcing agreement is prudent and reasonable.
48024802 16 The facility cost report shall be prepared as follows:
48034803 17 (A) The facility cost report shall be prepared by
48044804 18 duly licensed engineering and construction firms
48054805 19 detailing the estimated capital costs payable to one
48064806 20 or more contractors or suppliers for the engineering,
48074807 21 procurement and construction of the components
48084808 22 comprising the initial clean coal facility and the
48094809 23 estimated costs of operation and maintenance of the
48104810 24 facility. The facility cost report shall include:
48114811 25 (i) an estimate of the capital cost of the
48124812 26 core plant based on one or more front end
48134813
48144814
48154815
48164816
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48204820
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48234823 1 engineering and design studies for the
48244824 2 gasification island and related facilities. The
48254825 3 core plant shall include all civil, structural,
48264826 4 mechanical, electrical, control, and safety
48274827 5 systems.
48284828 6 (ii) an estimate of the capital cost of the
48294829 7 balance of the plant, including any capital costs
48304830 8 associated with sequestration of carbon dioxide
48314831 9 emissions and all interconnects and interfaces
48324832 10 required to operate the facility, such as
48334833 11 transmission of electricity, construction or
48344834 12 backfeed power supply, pipelines to transport
48354835 13 substitute natural gas or carbon dioxide, potable
48364836 14 water supply, natural gas supply, water supply,
48374837 15 water discharge, landfill, access roads, and coal
48384838 16 delivery.
48394839 17 The quoted construction costs shall be expressed
48404840 18 in nominal dollars as of the date that the quote is
48414841 19 prepared and shall include capitalized financing costs
48424842 20 during construction, taxes, insurance, and other
48434843 21 owner's costs, and an assumed escalation in materials
48444844 22 and labor beyond the date as of which the construction
48454845 23 cost quote is expressed.
48464846 24 (B) The front end engineering and design study for
48474847 25 the gasification island and the cost study for the
48484848 26 balance of plant shall include sufficient design work
48494849
48504850
48514851
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48554855
48564856
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48584858 HB1463 - 135 - LRB103 05819 AMQ 50839 b
48594859 1 to permit quantification of major categories of
48604860 2 materials, commodities and labor hours, and receipt of
48614861 3 quotes from vendors of major equipment required to
48624862 4 construct and operate the clean coal facility.
48634863 5 (C) The facility cost report shall also include an
48644864 6 operating and maintenance cost quote that will provide
48654865 7 the estimated cost of delivered fuel, personnel,
48664866 8 maintenance contracts, chemicals, catalysts,
48674867 9 consumables, spares, and other fixed and variable
48684868 10 operations and maintenance costs. The delivered fuel
48694869 11 cost estimate will be provided by a recognized third
48704870 12 party expert or experts in the fuel and transportation
48714871 13 industries. The balance of the operating and
48724872 14 maintenance cost quote, excluding delivered fuel
48734873 15 costs, will be developed based on the inputs provided
48744874 16 by duly licensed engineering and construction firms
48754875 17 performing the construction cost quote, potential
48764876 18 vendors under long-term service agreements and plant
48774877 19 operating agreements, or recognized third party plant
48784878 20 operator or operators.
48794879 21 The operating and maintenance cost quote
48804880 22 (including the cost of the front end engineering and
48814881 23 design study) shall be expressed in nominal dollars as
48824882 24 of the date that the quote is prepared and shall
48834883 25 include taxes, insurance, and other owner's costs, and
48844884 26 an assumed escalation in materials and labor beyond
48854885
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48954895 1 the date as of which the operating and maintenance
48964896 2 cost quote is expressed.
48974897 3 (D) The facility cost report shall also include an
48984898 4 analysis of the initial clean coal facility's ability
48994899 5 to deliver power and energy into the applicable
49004900 6 regional transmission organization markets and an
49014901 7 analysis of the expected capacity factor for the
49024902 8 initial clean coal facility.
49034903 9 (E) Amounts paid to third parties unrelated to the
49044904 10 owner or owners of the initial clean coal facility to
49054905 11 prepare the core plant construction cost quote,
49064906 12 including the front end engineering and design study,
49074907 13 and the operating and maintenance cost quote will be
49084908 14 reimbursed through Coal Development Bonds.
49094909 15 (5) Re-powering and retrofitting coal-fired power
49104910 16 plants previously owned by Illinois utilities to qualify
49114911 17 as clean coal facilities. During the 2009 procurement
49124912 18 planning process and thereafter, the Agency and the
49134913 19 Commission shall consider sourcing agreements covering
49144914 20 electricity generated by power plants that were previously
49154915 21 owned by Illinois utilities and that have been or will be
49164916 22 converted into clean coal facilities, as defined by
49174917 23 Section 1-10 of this Act. Pursuant to such procurement
49184918 24 planning process, the owners of such facilities may
49194919 25 propose to the Agency sourcing agreements with utilities
49204920 26 and alternative retail electric suppliers required to
49214921
49224922
49234923
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49274927
49284928
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49304930 HB1463 - 137 - LRB103 05819 AMQ 50839 b
49314931 1 comply with subsection (d) of this Section and item (5) of
49324932 2 subsection (d) of Section 16-115 of the Public Utilities
49334933 3 Act, covering electricity generated by such facilities. In
49344934 4 the case of sourcing agreements that are power purchase
49354935 5 agreements, the contract price for electricity sales shall
49364936 6 be established on a cost of service basis. In the case of
49374937 7 sourcing agreements that are contracts for differences,
49384938 8 the contract price from which the reference price is
49394939 9 subtracted shall be established on a cost of service
49404940 10 basis. The Agency and the Commission may approve any such
49414941 11 utility sourcing agreements that do not exceed cost-based
49424942 12 benchmarks developed by the procurement administrator, in
49434943 13 consultation with the Commission staff, Agency staff and
49444944 14 the procurement monitor, subject to Commission review and
49454945 15 approval. The Commission shall have authority to inspect
49464946 16 all books and records associated with these clean coal
49474947 17 facilities during the term of any such contract.
49484948 18 (6) Costs incurred under this subsection (d) or
49494949 19 pursuant to a contract entered into under this subsection
49504950 20 (d) shall be deemed prudently incurred and reasonable in
49514951 21 amount and the electric utility shall be entitled to full
49524952 22 cost recovery pursuant to the tariffs filed with the
49534953 23 Commission.
49544954 24 (d-5) Zero emission standard.
49554955 25 (1) Beginning with the delivery year commencing on
49564956 26 June 1, 2017, the Agency shall, for electric utilities
49574957
49584958
49594959
49604960
49614961
49624962 HB1463 - 137 - LRB103 05819 AMQ 50839 b
49634963
49644964
49654965 HB1463- 138 -LRB103 05819 AMQ 50839 b HB1463 - 138 - LRB103 05819 AMQ 50839 b
49664966 HB1463 - 138 - LRB103 05819 AMQ 50839 b
49674967 1 that serve at least 100,000 retail customers in this
49684968 2 State, procure contracts with zero emission facilities
49694969 3 that are reasonably capable of generating cost-effective
49704970 4 zero emission credits in an amount approximately equal to
49714971 5 16% of the actual amount of electricity delivered by each
49724972 6 electric utility to retail customers in the State during
49734973 7 calendar year 2014. For an electric utility serving fewer
49744974 8 than 100,000 retail customers in this State that
49754975 9 requested, under Section 16-111.5 of the Public Utilities
49764976 10 Act, that the Agency procure power and energy for all or a
49774977 11 portion of the utility's Illinois load for the delivery
49784978 12 year commencing June 1, 2016, the Agency shall procure
49794979 13 contracts with zero emission facilities that are
49804980 14 reasonably capable of generating cost-effective zero
49814981 15 emission credits in an amount approximately equal to 16%
49824982 16 of the portion of power and energy to be procured by the
49834983 17 Agency for the utility. The duration of the contracts
49844984 18 procured under this subsection (d-5) shall be for a term
49854985 19 of 10 years ending May 31, 2027. The quantity of zero
49864986 20 emission credits to be procured under the contracts shall
49874987 21 be all of the zero emission credits generated by the zero
49884988 22 emission facility in each delivery year; however, if the
49894989 23 zero emission facility is owned by more than one entity,
49904990 24 then the quantity of zero emission credits to be procured
49914991 25 under the contracts shall be the amount of zero emission
49924992 26 credits that are generated from the portion of the zero
49934993
49944994
49954995
49964996
49974997
49984998 HB1463 - 138 - LRB103 05819 AMQ 50839 b
49994999
50005000
50015001 HB1463- 139 -LRB103 05819 AMQ 50839 b HB1463 - 139 - LRB103 05819 AMQ 50839 b
50025002 HB1463 - 139 - LRB103 05819 AMQ 50839 b
50035003 1 emission facility that is owned by the winning supplier.
50045004 2 The 16% value identified in this paragraph (1) is the
50055005 3 average of the percentage targets in subparagraph (B) of
50065006 4 paragraph (1) of subsection (c) of this Section for the 5
50075007 5 delivery years beginning June 1, 2017.
50085008 6 The procurement process shall be subject to the
50095009 7 following provisions:
50105010 8 (A) Those zero emission facilities that intend to
50115011 9 participate in the procurement shall submit to the
50125012 10 Agency the following eligibility information for each
50135013 11 zero emission facility on or before the date
50145014 12 established by the Agency:
50155015 13 (i) the in-service date and remaining useful
50165016 14 life of the zero emission facility;
50175017 15 (ii) the amount of power generated annually
50185018 16 for each of the years 2005 through 2015, and the
50195019 17 projected zero emission credits to be generated
50205020 18 over the remaining useful life of the zero
50215021 19 emission facility, which shall be used to
50225022 20 determine the capability of each facility;
50235023 21 (iii) the annual zero emission facility cost
50245024 22 projections, expressed on a per megawatthour
50255025 23 basis, over the next 6 delivery years, which shall
50265026 24 include the following: operation and maintenance
50275027 25 expenses; fully allocated overhead costs, which
50285028 26 shall be allocated using the methodology developed
50295029
50305030
50315031
50325032
50335033
50345034 HB1463 - 139 - LRB103 05819 AMQ 50839 b
50355035
50365036
50375037 HB1463- 140 -LRB103 05819 AMQ 50839 b HB1463 - 140 - LRB103 05819 AMQ 50839 b
50385038 HB1463 - 140 - LRB103 05819 AMQ 50839 b
50395039 1 by the Institute for Nuclear Power Operations;
50405040 2 fuel expenditures; non-fuel capital expenditures;
50415041 3 spent fuel expenditures; a return on working
50425042 4 capital; the cost of operational and market risks
50435043 5 that could be avoided by ceasing operation; and
50445044 6 any other costs necessary for continued
50455045 7 operations, provided that "necessary" means, for
50465046 8 purposes of this item (iii), that the costs could
50475047 9 reasonably be avoided only by ceasing operations
50485048 10 of the zero emission facility; and
50495049 11 (iv) a commitment to continue operating, for
50505050 12 the duration of the contract or contracts executed
50515051 13 under the procurement held under this subsection
50525052 14 (d-5), the zero emission facility that produces
50535053 15 the zero emission credits to be procured in the
50545054 16 procurement.
50555055 17 The information described in item (iii) of this
50565056 18 subparagraph (A) may be submitted on a confidential
50575057 19 basis and shall be treated and maintained by the
50585058 20 Agency, the procurement administrator, and the
50595059 21 Commission as confidential and proprietary and exempt
50605060 22 from disclosure under subparagraphs (a) and (g) of
50615061 23 paragraph (1) of Section 7 of the Freedom of
50625062 24 Information Act. The Office of Attorney General shall
50635063 25 have access to, and maintain the confidentiality of,
50645064 26 such information pursuant to Section 6.5 of the
50655065
50665066
50675067
50685068
50695069
50705070 HB1463 - 140 - LRB103 05819 AMQ 50839 b
50715071
50725072
50735073 HB1463- 141 -LRB103 05819 AMQ 50839 b HB1463 - 141 - LRB103 05819 AMQ 50839 b
50745074 HB1463 - 141 - LRB103 05819 AMQ 50839 b
50755075 1 Attorney General Act.
50765076 2 (B) The price for each zero emission credit
50775077 3 procured under this subsection (d-5) for each delivery
50785078 4 year shall be in an amount that equals the Social Cost
50795079 5 of Carbon, expressed on a price per megawatthour
50805080 6 basis. However, to ensure that the procurement remains
50815081 7 affordable to retail customers in this State if
50825082 8 electricity prices increase, the price in an
50835083 9 applicable delivery year shall be reduced below the
50845084 10 Social Cost of Carbon by the amount ("Price
50855085 11 Adjustment") by which the market price index for the
50865086 12 applicable delivery year exceeds the baseline market
50875087 13 price index for the consecutive 12-month period ending
50885088 14 May 31, 2016. If the Price Adjustment is greater than
50895089 15 or equal to the Social Cost of Carbon in an applicable
50905090 16 delivery year, then no payments shall be due in that
50915091 17 delivery year. The components of this calculation are
50925092 18 defined as follows:
50935093 19 (i) Social Cost of Carbon: The Social Cost of
50945094 20 Carbon is $16.50 per megawatthour, which is based
50955095 21 on the U.S. Interagency Working Group on Social
50965096 22 Cost of Carbon's price in the August 2016
50975097 23 Technical Update using a 3% discount rate,
50985098 24 adjusted for inflation for each year of the
50995099 25 program. Beginning with the delivery year
51005100 26 commencing June 1, 2023, the price per
51015101
51025102
51035103
51045104
51055105
51065106 HB1463 - 141 - LRB103 05819 AMQ 50839 b
51075107
51085108
51095109 HB1463- 142 -LRB103 05819 AMQ 50839 b HB1463 - 142 - LRB103 05819 AMQ 50839 b
51105110 HB1463 - 142 - LRB103 05819 AMQ 50839 b
51115111 1 megawatthour shall increase by $1 per
51125112 2 megawatthour, and continue to increase by an
51135113 3 additional $1 per megawatthour each delivery year
51145114 4 thereafter.
51155115 5 (ii) Baseline market price index: The baseline
51165116 6 market price index for the consecutive 12-month
51175117 7 period ending May 31, 2016 is $31.40 per
51185118 8 megawatthour, which is based on the sum of (aa)
51195119 9 the average day-ahead energy price across all
51205120 10 hours of such 12-month period at the PJM
51215121 11 Interconnection LLC Northern Illinois Hub, (bb)
51225122 12 50% multiplied by the Base Residual Auction, or
51235123 13 its successor, capacity price for the rest of the
51245124 14 RTO zone group determined by PJM Interconnection
51255125 15 LLC, divided by 24 hours per day, and (cc) 50%
51265126 16 multiplied by the Planning Resource Auction, or
51275127 17 its successor, capacity price for Zone 4
51285128 18 determined by the Midcontinent Independent System
51295129 19 Operator, Inc., divided by 24 hours per day.
51305130 20 (iii) Market price index: The market price
51315131 21 index for a delivery year shall be the sum of
51325132 22 projected energy prices and projected capacity
51335133 23 prices determined as follows:
51345134 24 (aa) Projected energy prices: the
51355135 25 projected energy prices for the applicable
51365136 26 delivery year shall be calculated once for the
51375137
51385138
51395139
51405140
51415141
51425142 HB1463 - 142 - LRB103 05819 AMQ 50839 b
51435143
51445144
51455145 HB1463- 143 -LRB103 05819 AMQ 50839 b HB1463 - 143 - LRB103 05819 AMQ 50839 b
51465146 HB1463 - 143 - LRB103 05819 AMQ 50839 b
51475147 1 year using the forward market price for the
51485148 2 PJM Interconnection, LLC Northern Illinois
51495149 3 Hub. The forward market price shall be
51505150 4 calculated as follows: the energy forward
51515151 5 prices for each month of the applicable
51525152 6 delivery year averaged for each trade date
51535153 7 during the calendar year immediately preceding
51545154 8 that delivery year to produce a single energy
51555155 9 forward price for the delivery year. The
51565156 10 forward market price calculation shall use
51575157 11 data published by the Intercontinental
51585158 12 Exchange, or its successor.
51595159 13 (bb) Projected capacity prices:
51605160 14 (I) For the delivery years commencing
51615161 15 June 1, 2017, June 1, 2018, and June 1,
51625162 16 2019, the projected capacity price shall
51635163 17 be equal to the sum of (1) 50% multiplied
51645164 18 by the Base Residual Auction, or its
51655165 19 successor, price for the rest of the RTO
51665166 20 zone group as determined by PJM
51675167 21 Interconnection LLC, divided by 24 hours
51685168 22 per day and, (2) 50% multiplied by the
51695169 23 resource auction price determined in the
51705170 24 resource auction administered by the
51715171 25 Midcontinent Independent System Operator,
51725172 26 Inc., in which the largest percentage of
51735173
51745174
51755175
51765176
51775177
51785178 HB1463 - 143 - LRB103 05819 AMQ 50839 b
51795179
51805180
51815181 HB1463- 144 -LRB103 05819 AMQ 50839 b HB1463 - 144 - LRB103 05819 AMQ 50839 b
51825182 HB1463 - 144 - LRB103 05819 AMQ 50839 b
51835183 1 load cleared for Local Resource Zone 4,
51845184 2 divided by 24 hours per day, and where
51855185 3 such price is determined by the
51865186 4 Midcontinent Independent System Operator,
51875187 5 Inc.
51885188 6 (II) For the delivery year commencing
51895189 7 June 1, 2020, and each year thereafter,
51905190 8 the projected capacity price shall be
51915191 9 equal to the sum of (1) 50% multiplied by
51925192 10 the Base Residual Auction, or its
51935193 11 successor, price for the ComEd zone as
51945194 12 determined by PJM Interconnection LLC,
51955195 13 divided by 24 hours per day, and (2) 50%
51965196 14 multiplied by the resource auction price
51975197 15 determined in the resource auction
51985198 16 administered by the Midcontinent
51995199 17 Independent System Operator, Inc., in
52005200 18 which the largest percentage of load
52015201 19 cleared for Local Resource Zone 4, divided
52025202 20 by 24 hours per day, and where such price
52035203 21 is determined by the Midcontinent
52045204 22 Independent System Operator, Inc.
52055205 23 For purposes of this subsection (d-5):
52065206 24 "Rest of the RTO" and "ComEd Zone" shall have
52075207 25 the meaning ascribed to them by PJM
52085208 26 Interconnection, LLC.
52095209
52105210
52115211
52125212
52135213
52145214 HB1463 - 144 - LRB103 05819 AMQ 50839 b
52155215
52165216
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52185218 HB1463 - 145 - LRB103 05819 AMQ 50839 b
52195219 1 "RTO" means regional transmission
52205220 2 organization.
52215221 3 (C) No later than 45 days after June 1, 2017 (the
52225222 4 effective date of Public Act 99-906), the Agency shall
52235223 5 publish its proposed zero emission standard
52245224 6 procurement plan. The plan shall be consistent with
52255225 7 the provisions of this paragraph (1) and shall provide
52265226 8 that winning bids shall be selected based on public
52275227 9 interest criteria that include, but are not limited
52285228 10 to, minimizing carbon dioxide emissions that result
52295229 11 from electricity consumed in Illinois and minimizing
52305230 12 sulfur dioxide, nitrogen oxide, and particulate matter
52315231 13 emissions that adversely affect the citizens of this
52325232 14 State. In particular, the selection of winning bids
52335233 15 shall take into account the incremental environmental
52345234 16 benefits resulting from the procurement, such as any
52355235 17 existing environmental benefits that are preserved by
52365236 18 the procurements held under Public Act 99-906 and
52375237 19 would cease to exist if the procurements were not
52385238 20 held, including the preservation of zero emission
52395239 21 facilities. The plan shall also describe in detail how
52405240 22 each public interest factor shall be considered and
52415241 23 weighted in the bid selection process to ensure that
52425242 24 the public interest criteria are applied to the
52435243 25 procurement and given full effect.
52445244 26 For purposes of developing the plan, the Agency
52455245
52465246
52475247
52485248
52495249
52505250 HB1463 - 145 - LRB103 05819 AMQ 50839 b
52515251
52525252
52535253 HB1463- 146 -LRB103 05819 AMQ 50839 b HB1463 - 146 - LRB103 05819 AMQ 50839 b
52545254 HB1463 - 146 - LRB103 05819 AMQ 50839 b
52555255 1 shall consider any reports issued by a State agency,
52565256 2 board, or commission under House Resolution 1146 of
52575257 3 the 98th General Assembly and paragraph (4) of
52585258 4 subsection (d) of this Section, as well as publicly
52595259 5 available analyses and studies performed by or for
52605260 6 regional transmission organizations that serve the
52615261 7 State and their independent market monitors.
52625262 8 Upon publishing of the zero emission standard
52635263 9 procurement plan, copies of the plan shall be posted
52645264 10 and made publicly available on the Agency's website.
52655265 11 All interested parties shall have 10 days following
52665266 12 the date of posting to provide comment to the Agency on
52675267 13 the plan. All comments shall be posted to the Agency's
52685268 14 website. Following the end of the comment period, but
52695269 15 no more than 60 days later than June 1, 2017 (the
52705270 16 effective date of Public Act 99-906), the Agency shall
52715271 17 revise the plan as necessary based on the comments
52725272 18 received and file its zero emission standard
52735273 19 procurement plan with the Commission.
52745274 20 If the Commission determines that the plan will
52755275 21 result in the procurement of cost-effective zero
52765276 22 emission credits, then the Commission shall, after
52775277 23 notice and hearing, but no later than 45 days after the
52785278 24 Agency filed the plan, approve the plan or approve
52795279 25 with modification. For purposes of this subsection
52805280 26 (d-5), "cost effective" means the projected costs of
52815281
52825282
52835283
52845284
52855285
52865286 HB1463 - 146 - LRB103 05819 AMQ 50839 b
52875287
52885288
52895289 HB1463- 147 -LRB103 05819 AMQ 50839 b HB1463 - 147 - LRB103 05819 AMQ 50839 b
52905290 HB1463 - 147 - LRB103 05819 AMQ 50839 b
52915291 1 procuring zero emission credits from zero emission
52925292 2 facilities do not cause the limit stated in paragraph
52935293 3 (2) of this subsection to be exceeded.
52945294 4 (C-5) As part of the Commission's review and
52955295 5 acceptance or rejection of the procurement results,
52965296 6 the Commission shall, in its public notice of
52975297 7 successful bidders:
52985298 8 (i) identify how the winning bids satisfy the
52995299 9 public interest criteria described in subparagraph
53005300 10 (C) of this paragraph (1) of minimizing carbon
53015301 11 dioxide emissions that result from electricity
53025302 12 consumed in Illinois and minimizing sulfur
53035303 13 dioxide, nitrogen oxide, and particulate matter
53045304 14 emissions that adversely affect the citizens of
53055305 15 this State;
53065306 16 (ii) specifically address how the selection of
53075307 17 winning bids takes into account the incremental
53085308 18 environmental benefits resulting from the
53095309 19 procurement, including any existing environmental
53105310 20 benefits that are preserved by the procurements
53115311 21 held under Public Act 99-906 and would have ceased
53125312 22 to exist if the procurements had not been held,
53135313 23 such as the preservation of zero emission
53145314 24 facilities;
53155315 25 (iii) quantify the environmental benefit of
53165316 26 preserving the resources identified in item (ii)
53175317
53185318
53195319
53205320
53215321
53225322 HB1463 - 147 - LRB103 05819 AMQ 50839 b
53235323
53245324
53255325 HB1463- 148 -LRB103 05819 AMQ 50839 b HB1463 - 148 - LRB103 05819 AMQ 50839 b
53265326 HB1463 - 148 - LRB103 05819 AMQ 50839 b
53275327 1 of this subparagraph (C-5), including the
53285328 2 following:
53295329 3 (aa) the value of avoided greenhouse gas
53305330 4 emissions measured as the product of the zero
53315331 5 emission facilities' output over the contract
53325332 6 term multiplied by the U.S. Environmental
53335333 7 Protection Agency eGrid subregion carbon
53345334 8 dioxide emission rate and the U.S. Interagency
53355335 9 Working Group on Social Cost of Carbon's price
53365336 10 in the August 2016 Technical Update using a 3%
53375337 11 discount rate, adjusted for inflation for each
53385338 12 delivery year; and
53395339 13 (bb) the costs of replacement with other
53405340 14 zero carbon dioxide resources, including wind
53415341 15 and photovoltaic, based upon the simple
53425342 16 average of the following:
53435343 17 (I) the price, or if there is more
53445344 18 than one price, the average of the prices,
53455345 19 paid for renewable energy credits from new
53465346 20 utility-scale wind projects in the
53475347 21 procurement events specified in item (i)
53485348 22 of subparagraph (G) of paragraph (1) of
53495349 23 subsection (c) of this Section; and
53505350 24 (II) the price, or if there is more
53515351 25 than one price, the average of the prices,
53525352 26 paid for renewable energy credits from new
53535353
53545354
53555355
53565356
53575357
53585358 HB1463 - 148 - LRB103 05819 AMQ 50839 b
53595359
53605360
53615361 HB1463- 149 -LRB103 05819 AMQ 50839 b HB1463 - 149 - LRB103 05819 AMQ 50839 b
53625362 HB1463 - 149 - LRB103 05819 AMQ 50839 b
53635363 1 utility-scale solar projects and
53645364 2 brownfield site photovoltaic projects in
53655365 3 the procurement events specified in item
53665366 4 (ii) of subparagraph (G) of paragraph (1)
53675367 5 of subsection (c) of this Section and,
53685368 6 after January 1, 2015, renewable energy
53695369 7 credits from photovoltaic distributed
53705370 8 generation projects in procurement events
53715371 9 held under subsection (c) of this Section.
53725372 10 Each utility shall enter into binding contractual
53735373 11 arrangements with the winning suppliers.
53745374 12 The procurement described in this subsection
53755375 13 (d-5), including, but not limited to, the execution of
53765376 14 all contracts procured, shall be completed no later
53775377 15 than May 10, 2017. Based on the effective date of
53785378 16 Public Act 99-906, the Agency and Commission may, as
53795379 17 appropriate, modify the various dates and timelines
53805380 18 under this subparagraph and subparagraphs (C) and (D)
53815381 19 of this paragraph (1). The procurement and plan
53825382 20 approval processes required by this subsection (d-5)
53835383 21 shall be conducted in conjunction with the procurement
53845384 22 and plan approval processes required by subsection (c)
53855385 23 of this Section and Section 16-111.5 of the Public
53865386 24 Utilities Act, to the extent practicable.
53875387 25 Notwithstanding whether a procurement event is
53885388 26 conducted under Section 16-111.5 of the Public
53895389
53905390
53915391
53925392
53935393
53945394 HB1463 - 149 - LRB103 05819 AMQ 50839 b
53955395
53965396
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53985398 HB1463 - 150 - LRB103 05819 AMQ 50839 b
53995399 1 Utilities Act, the Agency shall immediately initiate a
54005400 2 procurement process on June 1, 2017 (the effective
54015401 3 date of Public Act 99-906).
54025402 4 (D) Following the procurement event described in
54035403 5 this paragraph (1) and consistent with subparagraph
54045404 6 (B) of this paragraph (1), the Agency shall calculate
54055405 7 the payments to be made under each contract for the
54065406 8 next delivery year based on the market price index for
54075407 9 that delivery year. The Agency shall publish the
54085408 10 payment calculations no later than May 25, 2017 and
54095409 11 every May 25 thereafter.
54105410 12 (E) Notwithstanding the requirements of this
54115411 13 subsection (d-5), the contracts executed under this
54125412 14 subsection (d-5) shall provide that the zero emission
54135413 15 facility may, as applicable, suspend or terminate
54145414 16 performance under the contracts in the following
54155415 17 instances:
54165416 18 (i) A zero emission facility shall be excused
54175417 19 from its performance under the contract for any
54185418 20 cause beyond the control of the resource,
54195419 21 including, but not restricted to, acts of God,
54205420 22 flood, drought, earthquake, storm, fire,
54215421 23 lightning, epidemic, war, riot, civil disturbance
54225422 24 or disobedience, labor dispute, labor or material
54235423 25 shortage, sabotage, acts of public enemy,
54245424 26 explosions, orders, regulations or restrictions
54255425
54265426
54275427
54285428
54295429
54305430 HB1463 - 150 - LRB103 05819 AMQ 50839 b
54315431
54325432
54335433 HB1463- 151 -LRB103 05819 AMQ 50839 b HB1463 - 151 - LRB103 05819 AMQ 50839 b
54345434 HB1463 - 151 - LRB103 05819 AMQ 50839 b
54355435 1 imposed by governmental, military, or lawfully
54365436 2 established civilian authorities, which, in any of
54375437 3 the foregoing cases, by exercise of commercially
54385438 4 reasonable efforts the zero emission facility
54395439 5 could not reasonably have been expected to avoid,
54405440 6 and which, by the exercise of commercially
54415441 7 reasonable efforts, it has been unable to
54425442 8 overcome. In such event, the zero emission
54435443 9 facility shall be excused from performance for the
54445444 10 duration of the event, including, but not limited
54455445 11 to, delivery of zero emission credits, and no
54465446 12 payment shall be due to the zero emission facility
54475447 13 during the duration of the event.
54485448 14 (ii) A zero emission facility shall be
54495449 15 permitted to terminate the contract if legislation
54505450 16 is enacted into law by the General Assembly that
54515451 17 imposes or authorizes a new tax, special
54525452 18 assessment, or fee on the generation of
54535453 19 electricity, the ownership or leasehold of a
54545454 20 generating unit, or the privilege or occupation of
54555455 21 such generation, ownership, or leasehold of
54565456 22 generation units by a zero emission facility.
54575457 23 However, the provisions of this item (ii) do not
54585458 24 apply to any generally applicable tax, special
54595459 25 assessment or fee, or requirements imposed by
54605460 26 federal law.
54615461
54625462
54635463
54645464
54655465
54665466 HB1463 - 151 - LRB103 05819 AMQ 50839 b
54675467
54685468
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54705470 HB1463 - 152 - LRB103 05819 AMQ 50839 b
54715471 1 (iii) A zero emission facility shall be
54725472 2 permitted to terminate the contract in the event
54735473 3 that the resource requires capital expenditures in
54745474 4 excess of $40,000,000 that were neither known nor
54755475 5 reasonably foreseeable at the time it executed the
54765476 6 contract and that a prudent owner or operator of
54775477 7 such resource would not undertake.
54785478 8 (iv) A zero emission facility shall be
54795479 9 permitted to terminate the contract in the event
54805480 10 the Nuclear Regulatory Commission terminates the
54815481 11 resource's license.
54825482 12 (F) If the zero emission facility elects to
54835483 13 terminate a contract under subparagraph (E) of this
54845484 14 paragraph (1), then the Commission shall reopen the
54855485 15 docket in which the Commission approved the zero
54865486 16 emission standard procurement plan under subparagraph
54875487 17 (C) of this paragraph (1) and, after notice and
54885488 18 hearing, enter an order acknowledging the contract
54895489 19 termination election if such termination is consistent
54905490 20 with the provisions of this subsection (d-5).
54915491 21 (2) For purposes of this subsection (d-5), the amount
54925492 22 paid per kilowatthour means the total amount paid for
54935493 23 electric service expressed on a per kilowatthour basis.
54945494 24 For purposes of this subsection (d-5), the total amount
54955495 25 paid for electric service includes, without limitation,
54965496 26 amounts paid for supply, transmission, distribution,
54975497
54985498
54995499
55005500
55015501
55025502 HB1463 - 152 - LRB103 05819 AMQ 50839 b
55035503
55045504
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55065506 HB1463 - 153 - LRB103 05819 AMQ 50839 b
55075507 1 surcharges, and add-on taxes.
55085508 2 Notwithstanding the requirements of this subsection
55095509 3 (d-5), the contracts executed under this subsection (d-5)
55105510 4 shall provide that the total of zero emission credits
55115511 5 procured under a procurement plan shall be subject to the
55125512 6 limitations of this paragraph (2). For each delivery year,
55135513 7 the contractual volume receiving payments in such year
55145514 8 shall be reduced for all retail customers based on the
55155515 9 amount necessary to limit the net increase that delivery
55165516 10 year to the costs of those credits included in the amounts
55175517 11 paid by eligible retail customers in connection with
55185518 12 electric service to no more than 1.65% of the amount paid
55195519 13 per kilowatthour by eligible retail customers during the
55205520 14 year ending May 31, 2009. The result of this computation
55215521 15 shall apply to and reduce the procurement for all retail
55225522 16 customers, and all those customers shall pay the same
55235523 17 single, uniform cents per kilowatthour charge under
55245524 18 subsection (k) of Section 16-108 of the Public Utilities
55255525 19 Act. To arrive at a maximum dollar amount of zero emission
55265526 20 credits to be paid for the particular delivery year, the
55275527 21 resulting per kilowatthour amount shall be applied to the
55285528 22 actual amount of kilowatthours of electricity delivered by
55295529 23 the electric utility in the delivery year immediately
55305530 24 prior to the procurement, to all retail customers in its
55315531 25 service territory. Unpaid contractual volume for any
55325532 26 delivery year shall be paid in any subsequent delivery
55335533
55345534
55355535
55365536
55375537
55385538 HB1463 - 153 - LRB103 05819 AMQ 50839 b
55395539
55405540
55415541 HB1463- 154 -LRB103 05819 AMQ 50839 b HB1463 - 154 - LRB103 05819 AMQ 50839 b
55425542 HB1463 - 154 - LRB103 05819 AMQ 50839 b
55435543 1 year in which such payments can be made without exceeding
55445544 2 the amount specified in this paragraph (2). The
55455545 3 calculations required by this paragraph (2) shall be made
55465546 4 only once for each procurement plan year. Once the
55475547 5 determination as to the amount of zero emission credits to
55485548 6 be paid is made based on the calculations set forth in this
55495549 7 paragraph (2), no subsequent rate impact determinations
55505550 8 shall be made and no adjustments to those contract amounts
55515551 9 shall be allowed. All costs incurred under those contracts
55525552 10 and in implementing this subsection (d-5) shall be
55535553 11 recovered by the electric utility as provided in this
55545554 12 Section.
55555555 13 No later than June 30, 2019, the Commission shall
55565556 14 review the limitation on the amount of zero emission
55575557 15 credits procured under this subsection (d-5) and report to
55585558 16 the General Assembly its findings as to whether that
55595559 17 limitation unduly constrains the procurement of
55605560 18 cost-effective zero emission credits.
55615561 19 (3) Six years after the execution of a contract under
55625562 20 this subsection (d-5), the Agency shall determine whether
55635563 21 the actual zero emission credit payments received by the
55645564 22 supplier over the 6-year period exceed the Average ZEC
55655565 23 Payment. In addition, at the end of the term of a contract
55665566 24 executed under this subsection (d-5), or at the time, if
55675567 25 any, a zero emission facility's contract is terminated
55685568 26 under subparagraph (E) of paragraph (1) of this subsection
55695569
55705570
55715571
55725572
55735573
55745574 HB1463 - 154 - LRB103 05819 AMQ 50839 b
55755575
55765576
55775577 HB1463- 155 -LRB103 05819 AMQ 50839 b HB1463 - 155 - LRB103 05819 AMQ 50839 b
55785578 HB1463 - 155 - LRB103 05819 AMQ 50839 b
55795579 1 (d-5), then the Agency shall determine whether the actual
55805580 2 zero emission credit payments received by the supplier
55815581 3 over the term of the contract exceed the Average ZEC
55825582 4 Payment, after taking into account any amounts previously
55835583 5 credited back to the utility under this paragraph (3). If
55845584 6 the Agency determines that the actual zero emission credit
55855585 7 payments received by the supplier over the relevant period
55865586 8 exceed the Average ZEC Payment, then the supplier shall
55875587 9 credit the difference back to the utility. The amount of
55885588 10 the credit shall be remitted to the applicable electric
55895589 11 utility no later than 120 days after the Agency's
55905590 12 determination, which the utility shall reflect as a credit
55915591 13 on its retail customer bills as soon as practicable;
55925592 14 however, the credit remitted to the utility shall not
55935593 15 exceed the total amount of payments received by the
55945594 16 facility under its contract.
55955595 17 For purposes of this Section, the Average ZEC Payment
55965596 18 shall be calculated by multiplying the quantity of zero
55975597 19 emission credits delivered under the contract times the
55985598 20 average contract price. The average contract price shall
55995599 21 be determined by subtracting the amount calculated under
56005600 22 subparagraph (B) of this paragraph (3) from the amount
56015601 23 calculated under subparagraph (A) of this paragraph (3),
56025602 24 as follows:
56035603 25 (A) The average of the Social Cost of Carbon, as
56045604 26 defined in subparagraph (B) of paragraph (1) of this
56055605
56065606
56075607
56085608
56095609
56105610 HB1463 - 155 - LRB103 05819 AMQ 50839 b
56115611
56125612
56135613 HB1463- 156 -LRB103 05819 AMQ 50839 b HB1463 - 156 - LRB103 05819 AMQ 50839 b
56145614 HB1463 - 156 - LRB103 05819 AMQ 50839 b
56155615 1 subsection (d-5), during the term of the contract.
56165616 2 (B) The average of the market price indices, as
56175617 3 defined in subparagraph (B) of paragraph (1) of this
56185618 4 subsection (d-5), during the term of the contract,
56195619 5 minus the baseline market price index, as defined in
56205620 6 subparagraph (B) of paragraph (1) of this subsection
56215621 7 (d-5).
56225622 8 If the subtraction yields a negative number, then the
56235623 9 Average ZEC Payment shall be zero.
56245624 10 (4) Cost-effective zero emission credits procured from
56255625 11 zero emission facilities shall satisfy the applicable
56265626 12 definitions set forth in Section 1-10 of this Act.
56275627 13 (5) The electric utility shall retire all zero
56285628 14 emission credits used to comply with the requirements of
56295629 15 this subsection (d-5).
56305630 16 (6) Electric utilities shall be entitled to recover
56315631 17 all of the costs associated with the procurement of zero
56325632 18 emission credits through an automatic adjustment clause
56335633 19 tariff in accordance with subsection (k) and (m) of
56345634 20 Section 16-108 of the Public Utilities Act, and the
56355635 21 contracts executed under this subsection (d-5) shall
56365636 22 provide that the utilities' payment obligations under such
56375637 23 contracts shall be reduced if an adjustment is required
56385638 24 under subsection (m) of Section 16-108 of the Public
56395639 25 Utilities Act.
56405640 26 (7) This subsection (d-5) shall become inoperative on
56415641
56425642
56435643
56445644
56455645
56465646 HB1463 - 156 - LRB103 05819 AMQ 50839 b
56475647
56485648
56495649 HB1463- 157 -LRB103 05819 AMQ 50839 b HB1463 - 157 - LRB103 05819 AMQ 50839 b
56505650 HB1463 - 157 - LRB103 05819 AMQ 50839 b
56515651 1 January 1, 2028.
56525652 2 (d-10) Nuclear Plant Assistance; carbon mitigation
56535653 3 credits.
56545654 4 (1) The General Assembly finds:
56555655 5 (A) The health, welfare, and prosperity of all
56565656 6 Illinois citizens require that the State of Illinois act
56575657 7 to avoid and not increase carbon emissions from electric
56585658 8 generation sources while continuing to ensure affordable,
56595659 9 stable, and reliable electricity to all citizens.
56605660 10 (B) Absent immediate action by the State to preserve
56615661 11 existing carbon-free energy resources, those resources may
56625662 12 retire, and the electric generation needs of Illinois'
56635663 13 retail customers may be met instead by facilities that
56645664 14 emit significant amounts of carbon pollution and other
56655665 15 harmful air pollutants at a high social and economic cost
56665666 16 until Illinois is able to develop other forms of clean
56675667 17 energy.
56685668 18 (C) The General Assembly finds that nuclear power
56695669 19 generation is necessary for the State's transition to 100%
56705670 20 clean energy, and ensuring continued operation of nuclear
56715671 21 plants advances environmental and public health interests
56725672 22 through providing carbon-free electricity while reducing
56735673 23 the air pollution profile of the Illinois energy
56745674 24 generation fleet.
56755675 25 (D) The clean energy attributes of nuclear generation
56765676 26 facilities support the State in its efforts to achieve
56775677
56785678
56795679
56805680
56815681
56825682 HB1463 - 157 - LRB103 05819 AMQ 50839 b
56835683
56845684
56855685 HB1463- 158 -LRB103 05819 AMQ 50839 b HB1463 - 158 - LRB103 05819 AMQ 50839 b
56865686 HB1463 - 158 - LRB103 05819 AMQ 50839 b
56875687 1 100% clean energy.
56885688 2 (E) The State currently invests in various forms of
56895689 3 clean energy, including, but not limited to, renewable
56905690 4 energy, energy efficiency, and low-emission vehicles,
56915691 5 among others.
56925692 6 (F) The Environmental Protection Agency commissioned
56935693 7 an independent audit which provided a detailed assessment
56945694 8 of the financial condition of the Illinois nuclear fleet
56955695 9 to evaluate its financial viability and whether the
56965696 10 environmental benefits of such resources were at risk. The
56975697 11 report identified the risk of losing the environmental
56985698 12 benefits of several specific nuclear units. The report
56995699 13 also identified that the LaSalle County Generating Station
57005700 14 will continue to operate through 2026 and therefore is not
57015701 15 eligible to participate in the carbon mitigation credit
57025702 16 program.
57035703 17 (G) Nuclear plants provide carbon-free energy, which
57045704 18 helps to avoid many health-related negative impacts for
57055705 19 Illinois residents.
57065706 20 (H) The procurement of carbon mitigation credits
57075707 21 representing the environmental benefits of carbon-free
57085708 22 generation will further the State's efforts at achieving
57095709 23 100% clean energy and decarbonizing the electricity sector
57105710 24 in a safe, reliable, and affordable manner. Further, the
57115711 25 procurement of carbon emission credits will enhance the
57125712 26 health and welfare of Illinois residents through decreased
57135713
57145714
57155715
57165716
57175717
57185718 HB1463 - 158 - LRB103 05819 AMQ 50839 b
57195719
57205720
57215721 HB1463- 159 -LRB103 05819 AMQ 50839 b HB1463 - 159 - LRB103 05819 AMQ 50839 b
57225722 HB1463 - 159 - LRB103 05819 AMQ 50839 b
57235723 1 reliance on more highly polluting generation.
57245724 2 (I) The General Assembly therefore finds it necessary
57255725 3 to establish carbon mitigation credits to ensure decreased
57265726 4 reliance on more carbon-intensive energy resources, for
57275727 5 transitioning to a fully decarbonized electricity sector,
57285728 6 and to help ensure health and welfare of the State's
57295729 7 residents.
57305730 8 (2) As used in this subsection:
57315731 9 "Baseline costs" means costs used to establish a customer
57325732 10 protection cap that have been evaluated through an independent
57335733 11 audit of a carbon-free energy resource conducted by the
57345734 12 Environmental Protection Agency that evaluated projected
57355735 13 annual costs for operation and maintenance expenses; fully
57365736 14 allocated overhead costs, which shall be allocated using the
57375737 15 methodology developed by the Institute for Nuclear Power
57385738 16 Operations; fuel expenditures; nonfuel capital expenditures;
57395739 17 spent fuel expenditures; a return on working capital; the cost
57405740 18 of operational and market risks that could be avoided by
57415741 19 ceasing operation; and any other costs necessary for continued
57425742 20 operations, provided that "necessary" means, for purposes of
57435743 21 this definition, that the costs could reasonably be avoided
57445744 22 only by ceasing operations of the carbon-free energy resource.
57455745 23 "Carbon mitigation credit" means a tradable credit that
57465746 24 represents the carbon emission reduction attributes of one
57475747 25 megawatt-hour of energy produced from a carbon-free energy
57485748 26 resource.
57495749
57505750
57515751
57525752
57535753
57545754 HB1463 - 159 - LRB103 05819 AMQ 50839 b
57555755
57565756
57575757 HB1463- 160 -LRB103 05819 AMQ 50839 b HB1463 - 160 - LRB103 05819 AMQ 50839 b
57585758 HB1463 - 160 - LRB103 05819 AMQ 50839 b
57595759 1 "Carbon-free energy resource" means a generation facility
57605760 2 that: (1) is fueled by nuclear power; and (2) is
57615761 3 interconnected to PJM Interconnection, LLC.
57625762 4 (3) Procurement.
57635763 5 (A) Beginning with the delivery year commencing on
57645764 6 June 1, 2022, the Agency shall, for electric utilities
57655765 7 serving at least 3,000,000 retail customers in the State,
57665766 8 seek to procure contracts for no more than approximately
57675767 9 54,500,000 cost-effective carbon mitigation credits from
57685768 10 carbon-free energy resources because such credits are
57695769 11 necessary to support current levels of carbon-free energy
57705770 12 generation and ensure the State meets its carbon dioxide
57715771 13 emissions reduction goals. The Agency shall not make a
57725772 14 partial award of a contract for carbon mitigation credits
57735773 15 covering a fractional amount of a carbon-free energy
57745774 16 resource's projected output.
57755775 17 (B) Each carbon-free energy resource that intends to
57765776 18 participate in a procurement shall be required to submit
57775777 19 to the Agency the following information for the resource
57785778 20 on or before the date established by the Agency:
57795779 21 (i) the in-service date and remaining useful life
57805780 22 of the carbon-free energy resource;
57815781 23 (ii) the amount of power generated annually for
57825782 24 each of the past 10 years, which shall be used to
57835783 25 determine the capability of each facility;
57845784 26 (iii) a commitment to be reflected in any contract
57855785
57865786
57875787
57885788
57895789
57905790 HB1463 - 160 - LRB103 05819 AMQ 50839 b
57915791
57925792
57935793 HB1463- 161 -LRB103 05819 AMQ 50839 b HB1463 - 161 - LRB103 05819 AMQ 50839 b
57945794 HB1463 - 161 - LRB103 05819 AMQ 50839 b
57955795 1 entered into pursuant to this subsection (d-10) to
57965796 2 continue operating the carbon-free energy resource at
57975797 3 a capacity factor of at least 88% annually on average
57985798 4 for the duration of the contract or contracts executed
57995799 5 under the procurement held under this subsection
58005800 6 (d-10), except in an instance described in
58015801 7 subparagraph (E) of paragraph (1) of subsection (d-5)
58025802 8 of this Section or made impracticable as a result of
58035803 9 compliance with law or regulation;
58045804 10 (iv) financial need and the risk of loss of the
58055805 11 environmental benefits of such resource, which shall
58065806 12 include the following information:
58075807 13 (I) the carbon-free energy resource's cost
58085808 14 projections, expressed on a per megawatt-hour
58095809 15 basis, over the next 5 delivery years, which shall
58105810 16 include the following: operation and maintenance
58115811 17 expenses; fully allocated overhead costs, which
58125812 18 shall be allocated using the methodology developed
58135813 19 by the Institute for Nuclear Power Operations;
58145814 20 fuel expenditures; nonfuel capital expenditures;
58155815 21 spent fuel expenditures; a return on working
58165816 22 capital; the cost of operational and market risks
58175817 23 that could be avoided by ceasing operation; and
58185818 24 any other costs necessary for continued
58195819 25 operations, provided that "necessary" means, for
58205820 26 purposes of this subitem (I), that the costs could
58215821
58225822
58235823
58245824
58255825
58265826 HB1463 - 161 - LRB103 05819 AMQ 50839 b
58275827
58285828
58295829 HB1463- 162 -LRB103 05819 AMQ 50839 b HB1463 - 162 - LRB103 05819 AMQ 50839 b
58305830 HB1463 - 162 - LRB103 05819 AMQ 50839 b
58315831 1 reasonably be avoided only by ceasing operations
58325832 2 of the carbon-free energy resource; and
58335833 3 (II) the carbon-free energy resource's revenue
58345834 4 projections, including energy, capacity, ancillary
58355835 5 services, any other direct State support, known or
58365836 6 anticipated federal attribute credits, known or
58375837 7 anticipated tax credits, and any other direct
58385838 8 federal support.
58395839 9 The information described in this subparagraph (B) may
58405840 10 be submitted on a confidential basis and shall be treated
58415841 11 and maintained by the Agency, the procurement
58425842 12 administrator, and the Commission as confidential and
58435843 13 proprietary and exempt from disclosure under subparagraphs
58445844 14 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
58455845 15 Information Act. The Office of the Attorney General shall
58465846 16 have access to, and maintain the confidentiality of, such
58475847 17 information pursuant to Section 6.5 of the Attorney
58485848 18 General Act.
58495849 19 (C) The Agency shall solicit bids for the contracts
58505850 20 described in this subsection (d-10) from carbon-free
58515851 21 energy resources that have satisfied the requirements of
58525852 22 subparagraph (B) of this paragraph (3). The contracts
58535853 23 procured pursuant to a procurement event shall reflect,
58545854 24 and be subject to, the following terms, requirements, and
58555855 25 limitations:
58565856 26 (i) Contracts are for delivery of carbon
58575857
58585858
58595859
58605860
58615861
58625862 HB1463 - 162 - LRB103 05819 AMQ 50839 b
58635863
58645864
58655865 HB1463- 163 -LRB103 05819 AMQ 50839 b HB1463 - 163 - LRB103 05819 AMQ 50839 b
58665866 HB1463 - 163 - LRB103 05819 AMQ 50839 b
58675867 1 mitigation credits, and are not energy or capacity
58685868 2 sales contracts requiring physical delivery. Pursuant
58695869 3 to item (iii), contract payments shall fully deduct
58705870 4 the value of any monetized federal production tax
58715871 5 credits, credits issued pursuant to a federal clean
58725872 6 energy standard, and other federal credits if
58735873 7 applicable.
58745874 8 (ii) Contracts for carbon mitigation credits shall
58755875 9 commence with the delivery year beginning on June 1,
58765876 10 2022 and shall be for a term of 5 delivery years
58775877 11 concluding on May 31, 2027.
58785878 12 (iii) The price per carbon mitigation credit to be
58795879 13 paid under a contract for a given delivery year shall
58805880 14 be equal to an accepted bid price less the sum of:
58815881 15 (I) one of the following energy price indices,
58825882 16 selected by the bidder at the time of the bid for
58835883 17 the term of the contract:
58845884 18 (aa) the weighted-average hourly day-ahead
58855885 19 price for the applicable delivery year at the
58865886 20 busbar of all resources procured pursuant to
58875887 21 this subsection (d-10), weighted by actual
58885888 22 production from the resources; or
58895889 23 (bb) the projected energy price for the
58905890 24 PJM Interconnection, LLC Northern Illinois Hub
58915891 25 for the applicable delivery year determined
58925892 26 according to subitem (aa) of item (iii) of
58935893
58945894
58955895
58965896
58975897
58985898 HB1463 - 163 - LRB103 05819 AMQ 50839 b
58995899
59005900
59015901 HB1463- 164 -LRB103 05819 AMQ 50839 b HB1463 - 164 - LRB103 05819 AMQ 50839 b
59025902 HB1463 - 164 - LRB103 05819 AMQ 50839 b
59035903 1 subparagraph (B) of paragraph (1) of
59045904 2 subsection (d-5).
59055905 3 (II) the Base Residual Auction Capacity Price
59065906 4 for the ComEd zone as determined by PJM
59075907 5 Interconnection, LLC, divided by 24 hours per day,
59085908 6 for the applicable delivery year for the first 3
59095909 7 delivery years, and then any subsequent delivery
59105910 8 years unless the PJM Interconnection, LLC applies
59115911 9 the Minimum Offer Price Rule to participating
59125912 10 carbon-free energy resources because they supply
59135913 11 carbon mitigation credits pursuant to this Section
59145914 12 at which time, upon notice by the carbon-free
59155915 13 energy resource to the Commission and subject to
59165916 14 the Commission's confirmation, the value under
59175917 15 this subitem shall be zero, as further described
59185918 16 in the carbon mitigation credit procurement plan;
59195919 17 and
59205920 18 (III) any value of monetized federal tax
59215921 19 credits, direct payments, or similar subsidy
59225922 20 provided to the carbon-free energy resource from
59235923 21 any unit of government that is not already
59245924 22 reflected in energy prices.
59255925 23 If the price-per-megawatt-hour calculation
59265926 24 performed under item (iii) of this subparagraph (C)
59275927 25 for a given delivery year results in a net positive
59285928 26 value, then the electric utility counterparty to the
59295929
59305930
59315931
59325932
59335933
59345934 HB1463 - 164 - LRB103 05819 AMQ 50839 b
59355935
59365936
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59385938 HB1463 - 165 - LRB103 05819 AMQ 50839 b
59395939 1 contract shall multiply such net value by the
59405940 2 applicable contract quantity and remit the amount to
59415941 3 the supplier.
59425942 4 To protect retail customers from retail rate
59435943 5 impacts that may arise upon the initiation of carbon
59445944 6 policy changes, if the price-per-megawatt-hour
59455945 7 calculation performed under item (iii) of this
59465946 8 subparagraph (C) for a given delivery year results in
59475947 9 a net negative value, then the supplier counterparty
59485948 10 to the contract shall multiply such net value by the
59495949 11 applicable contract quantity and remit such amount to
59505950 12 the electric utility counterparty. The electric
59515951 13 utility shall reflect such amounts remitted by
59525952 14 suppliers as a credit on its retail customer bills as
59535953 15 soon as practicable.
59545954 16 (iv) To ensure that retail customers in Northern
59555955 17 Illinois do not pay more for carbon mitigation credits
59565956 18 than the value such credits provide, and
59575957 19 notwithstanding the provisions of this subsection
59585958 20 (d-10), the Agency shall not accept bids for contracts
59595959 21 that exceed a customer protection cap equal to the
59605960 22 baseline costs of carbon-free energy resources.
59615961 23 The baseline costs for the applicable year shall
59625962 24 be the following:
59635963 25 (I) For the delivery year beginning June 1,
59645964 26 2022, the baseline costs shall be an amount equal
59655965
59665966
59675967
59685968
59695969
59705970 HB1463 - 165 - LRB103 05819 AMQ 50839 b
59715971
59725972
59735973 HB1463- 166 -LRB103 05819 AMQ 50839 b HB1463 - 166 - LRB103 05819 AMQ 50839 b
59745974 HB1463 - 166 - LRB103 05819 AMQ 50839 b
59755975 1 to $30.30 per megawatt-hour.
59765976 2 (II) For the delivery year beginning June 1,
59775977 3 2023, the baseline costs shall be an amount equal
59785978 4 to $32.50 per megawatt-hour.
59795979 5 (III) For the delivery year beginning June 1,
59805980 6 2024, the baseline costs shall be an amount equal
59815981 7 to $33.43 per megawatt-hour.
59825982 8 (IV) For the delivery year beginning June 1,
59835983 9 2025, the baseline costs shall be an amount equal
59845984 10 to $33.50 per megawatt-hour.
59855985 11 (V) For the delivery year beginning June 1,
59865986 12 2026, the baseline costs shall be an amount equal
59875987 13 to $34.50 per megawatt-hour.
59885988 14 An Environmental Protection Agency consultant
59895989 15 forecast, included in a report issued April 14, 2021,
59905990 16 projects that a carbon-free energy resource has the
59915991 17 opportunity to earn on average approximately $30.28
59925992 18 per megawatt-hour, for the sale of energy and capacity
59935993 19 during the time period between 2022 and 2027.
59945994 20 Therefore, the sale of carbon mitigation credits
59955995 21 provides the opportunity to receive an additional
59965996 22 amount per megawatt-hour in addition to the projected
59975997 23 prices for energy and capacity.
59985998 24 Although actual energy and capacity prices may
59995999 25 vary from year-to-year, the General Assembly finds
60006000 26 that this customer protection cap will help ensure
60016001
60026002
60036003
60046004
60056005
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60076007
60086008
60096009 HB1463- 167 -LRB103 05819 AMQ 50839 b HB1463 - 167 - LRB103 05819 AMQ 50839 b
60106010 HB1463 - 167 - LRB103 05819 AMQ 50839 b
60116011 1 that the cost of carbon mitigation credits will be
60126012 2 less than its value, based upon the social cost of
60136013 3 carbon identified in the Technical Support Document
60146014 4 issued in February 2021 by the U.S. Interagency
60156015 5 Working Group on Social Cost of Greenhouse Gases and
60166016 6 the PJM Interconnection, LLC carbon dioxide marginal
60176017 7 emission rate for 2020, and that a carbon-free energy
60186018 8 resource receiving payment for carbon mitigation
60196019 9 credits receives no more than necessary to keep those
60206020 10 units in operation.
60216021 11 (D) No later than 7 days after the effective date of
60226022 12 this amendatory Act of the 102nd General Assembly, the
60236023 13 Agency shall publish its proposed carbon mitigation credit
60246024 14 procurement plan. The Plan shall provide that winning bids
60256025 15 shall be selected by taking into consideration which
60266026 16 resources best match public interest criteria that
60276027 17 include, but are not limited to, minimizing carbon dioxide
60286028 18 emissions that result from electricity consumed in
60296029 19 Illinois and minimizing sulfur dioxide, nitrogen oxide,
60306030 20 and particulate matter emissions that adversely affect the
60316031 21 citizens of this State. The selection of winning bids
60326032 22 shall also take into account the incremental environmental
60336033 23 benefits resulting from the procurement or procurements,
60346034 24 such as any existing environmental benefits that are
60356035 25 preserved by a procurement held under this subsection
60366036 26 (d-10) and would cease to exist if the procurement were
60376037
60386038
60396039
60406040
60416041
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60436043
60446044
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60466046 HB1463 - 168 - LRB103 05819 AMQ 50839 b
60476047 1 not held, including the preservation of carbon-free energy
60486048 2 resources. For those bidders having the same public
60496049 3 interest criteria score, the relative ranking of such
60506050 4 bidders shall be determined by price. The Plan shall
60516051 5 describe in detail how each public interest factor shall
60526052 6 be considered and weighted in the bid selection process to
60536053 7 ensure that the public interest criteria are applied to
60546054 8 the procurement. The Plan shall, to the extent practical
60556055 9 and permissible by federal law, ensure that successful
60566056 10 bidders make commercially reasonable efforts to apply for
60576057 11 federal tax credits, direct payments, or similar subsidy
60586058 12 programs that support carbon-free generation and for which
60596059 13 the successful bidder is eligible. Upon publishing of the
60606060 14 carbon mitigation credit procurement plan, copies of the
60616061 15 plan shall be posted and made publicly available on the
60626062 16 Agency's website. All interested parties shall have 7 days
60636063 17 following the date of posting to provide comment to the
60646064 18 Agency on the plan. All comments shall be posted to the
60656065 19 Agency's website. Following the end of the comment period,
60666066 20 but no more than 19 days later than the effective date of
60676067 21 this amendatory Act of the 102nd General Assembly, the
60686068 22 Agency shall revise the plan as necessary based on the
60696069 23 comments received and file its carbon mitigation credit
60706070 24 procurement plan with the Commission.
60716071 25 (E) If the Commission determines that the plan is
60726072 26 likely to result in the procurement of cost-effective
60736073
60746074
60756075
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60796079
60806080
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60826082 HB1463 - 169 - LRB103 05819 AMQ 50839 b
60836083 1 carbon mitigation credits, then the Commission shall,
60846084 2 after notice and hearing and opportunity for comment, but
60856085 3 no later than 42 days after the Agency filed the plan,
60866086 4 approve the plan or approve it with modification. For
60876087 5 purposes of this subsection (d-10), "cost-effective" means
60886088 6 carbon mitigation credits that are procured from
60896089 7 carbon-free energy resources at prices that are within the
60906090 8 limits specified in this paragraph (3). As part of the
60916091 9 Commission's review and acceptance or rejection of the
60926092 10 procurement results, the Commission shall, in its public
60936093 11 notice of successful bidders:
60946094 12 (i) identify how the selected carbon-free energy
60956095 13 resources satisfy the public interest criteria
60966096 14 described in this paragraph (3) of minimizing carbon
60976097 15 dioxide emissions that result from electricity
60986098 16 consumed in Illinois and minimizing sulfur dioxide,
60996099 17 nitrogen oxide, and particulate matter emissions that
61006100 18 adversely affect the citizens of this State;
61016101 19 (ii) specifically address how the selection of
61026102 20 carbon-free energy resources takes into account the
61036103 21 incremental environmental benefits resulting from the
61046104 22 procurement, including any existing environmental
61056105 23 benefits that are preserved by the procurements held
61066106 24 under this amendatory Act of the 102nd General
61076107 25 Assembly and would have ceased to exist if the
61086108 26 procurements had not been held, such as the
61096109
61106110
61116111
61126112
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61156115
61166116
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61186118 HB1463 - 170 - LRB103 05819 AMQ 50839 b
61196119 1 preservation of carbon-free energy resources;
61206120 2 (iii) quantify the environmental benefit of
61216121 3 preserving the carbon-free energy resources procured
61226122 4 pursuant to this subsection (d-10), including the
61236123 5 following:
61246124 6 (I) an assessment value of avoided greenhouse
61256125 7 gas emissions measured as the product of the
61266126 8 carbon-free energy resources' output over the
61276127 9 contract term, using generally accepted
61286128 10 methodologies for the valuation of avoided
61296129 11 emissions; and
61306130 12 (II) an assessment of costs of replacement
61316131 13 with other carbon-free energy resources and
61326132 14 renewable energy resources, including wind and
61336133 15 photovoltaic generation, based upon an assessment
61346134 16 of the prices paid for renewable energy credits
61356135 17 through programs and procurements conducted
61366136 18 pursuant to subsection (c) of Section 1-75 of this
61376137 19 Act, and the additional storage necessary to
61386138 20 produce the same or similar capability of matching
61396139 21 customer usage patterns.
61406140 22 (F) The procurements described in this paragraph (3),
61416141 23 including, but not limited to, the execution of all
61426142 24 contracts procured, shall be completed no later than
61436143 25 December 3, 2021. The procurement and plan approval
61446144 26 processes required by this paragraph (3) shall be
61456145
61466146
61476147
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61526152
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61546154 HB1463 - 171 - LRB103 05819 AMQ 50839 b
61556155 1 conducted in conjunction with the procurement and plan
61566156 2 approval processes required by Section 16-111.5 of the
61576157 3 Public Utilities Act, to the extent practicable. However,
61586158 4 the Agency and Commission may, as appropriate, modify the
61596159 5 various dates and timelines under this subparagraph and
61606160 6 subparagraphs (D) and (E) of this paragraph (3) to meet
61616161 7 the December 3, 2021 contract execution deadline.
61626162 8 Following the completion of such procurements, and
61636163 9 consistent with this paragraph (3), the Agency shall
61646164 10 calculate the payments to be made under each contract in a
61656165 11 timely fashion.
61666166 12 (F-1) Costs incurred by the electric utility pursuant
61676167 13 to a contract authorized by this subsection (d-10) shall
61686168 14 be deemed prudently incurred and reasonable in amount, and
61696169 15 the electric utility shall be entitled to full cost
61706170 16 recovery pursuant to a tariff or tariffs filed with the
61716171 17 Commission.
61726172 18 (G) The counterparty electric utility shall retire all
61736173 19 carbon mitigation credits used to comply with the
61746174 20 requirements of this subsection (d-10).
61756175 21 (H) If a carbon-free energy resource is sold to
61766176 22 another owner, the rights, obligations, and commitments
61776177 23 under this subsection (d-10) shall continue to the
61786178 24 subsequent owner.
61796179 25 (I) This subsection (d-10) shall become inoperative on
61806180 26 January 1, 2028.
61816181
61826182
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61906190 HB1463 - 172 - LRB103 05819 AMQ 50839 b
61916191 1 (e) The draft procurement plans are subject to public
61926192 2 comment, as required by Section 16-111.5 of the Public
61936193 3 Utilities Act.
61946194 4 (f) The Agency shall submit the final procurement plan to
61956195 5 the Commission. The Agency shall revise a procurement plan if
61966196 6 the Commission determines that it does not meet the standards
61976197 7 set forth in Section 16-111.5 of the Public Utilities Act.
61986198 8 (g) The Agency shall assess fees to each affected utility
61996199 9 to recover the costs incurred in preparation of the annual
62006200 10 procurement plan for the utility.
62016201 11 (h) The Agency shall assess fees to each bidder to recover
62026202 12 the costs incurred in connection with a competitive
62036203 13 procurement process.
62046204 14 (i) A renewable energy credit, carbon emission credit,
62056205 15 zero emission credit, or carbon mitigation credit can only be
62066206 16 used once to comply with a single portfolio or other standard
62076207 17 as set forth in subsection (c), subsection (d), or subsection
62086208 18 (d-5) of this Section, respectively. A renewable energy
62096209 19 credit, carbon emission credit, zero emission credit, or
62106210 20 carbon mitigation credit cannot be used to satisfy the
62116211 21 requirements of more than one standard. If more than one type
62126212 22 of credit is issued for the same megawatt hour of energy, only
62136213 23 one credit can be used to satisfy the requirements of a single
62146214 24 standard. After such use, the credit must be retired together
62156215 25 with any other credits issued for the same megawatt hour of
62166216 26 energy.
62176217
62186218
62196219
62206220
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62236223
62246224
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62266226 HB1463 - 173 - LRB103 05819 AMQ 50839 b
62276227 1 (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
62286228 2 102-662, eff. 9-15-21.)
62296229 3 Section 10. The Public Utilities Act is amended by
62306230 4 changing Section 8-406 as follows:
62316231 5 (220 ILCS 5/8-406) (from Ch. 111 2/3, par. 8-406)
62326232 6 Sec. 8-406. Certificate of public convenience and
62336233 7 necessity.
62346234 8 (a) No public utility not owning any city or village
62356235 9 franchise nor engaged in performing any public service or in
62366236 10 furnishing any product or commodity within this State as of
62376237 11 July 1, 1921 and not possessing a certificate of public
62386238 12 convenience and necessity from the Illinois Commerce
62396239 13 Commission, the State Public Utilities Commission, or the
62406240 14 Public Utilities Commission, at the time Public Act 84-617
62416241 15 goes into effect (January 1, 1986), shall transact any
62426242 16 business in this State until it shall have obtained a
62436243 17 certificate from the Commission that public convenience and
62446244 18 necessity require the transaction of such business. A
62456245 19 certificate of public convenience and necessity requiring the
62466246 20 transaction of public utility business in any area of this
62476247 21 State shall include authorization to the public utility
62486248 22 receiving the certificate of public convenience and necessity
62496249 23 to construct such plant, equipment, property, or facility as
62506250 24 is provided for under the terms and conditions of its tariff
62516251
62526252
62536253
62546254
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62576257
62586258
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62606260 HB1463 - 174 - LRB103 05819 AMQ 50839 b
62616261 1 and as is necessary to provide utility service and carry out
62626262 2 the transaction of public utility business by the public
62636263 3 utility in the designated area.
62646264 4 (b) No public utility shall begin the construction of any
62656265 5 new plant, equipment, property, or facility which is not in
62666266 6 substitution of any existing plant, equipment, property, or
62676267 7 facility, or any extension or alteration thereof or in
62686268 8 addition thereto, unless and until it shall have obtained from
62696269 9 the Commission a certificate that public convenience and
62706270 10 necessity require such construction. Whenever after a hearing
62716271 11 the Commission determines that any new construction or the
62726272 12 transaction of any business by a public utility will promote
62736273 13 the public convenience and is necessary thereto, it shall have
62746274 14 the power to issue certificates of public convenience and
62756275 15 necessity. The Commission shall determine that proposed
62766276 16 construction will promote the public convenience and necessity
62776277 17 only if the utility demonstrates: (1) that the proposed
62786278 18 construction is necessary to provide adequate, reliable, and
62796279 19 efficient service to its customers and is the least-cost means
62806280 20 of satisfying the service needs of its customers or that the
62816281 21 proposed construction will promote the development of an
62826282 22 effectively competitive electricity market that operates
62836283 23 efficiently, is equitable to all customers, and is the least
62846284 24 cost means of satisfying those objectives; (2) that the
62856285 25 utility is capable of efficiently managing and supervising the
62866286 26 construction process and has taken sufficient action to ensure
62876287
62886288
62896289
62906290
62916291
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62936293
62946294
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62966296 HB1463 - 175 - LRB103 05819 AMQ 50839 b
62976297 1 adequate and efficient construction and supervision thereof;
62986298 2 and (3) that the utility is capable of financing the proposed
62996299 3 construction without significant adverse financial
63006300 4 consequences for the utility or its customers.
63016301 5 (b-5) (Blank). As used in this subsection (b-5):
63026302 6 "Qualifying direct current applicant" means an entity that
63036303 7 seeks to provide direct current bulk transmission service for
63046304 8 the purpose of transporting electric energy in interstate
63056305 9 commerce.
63066306 10 "Qualifying direct current project" means a high voltage
63076307 11 direct current electric service line that crosses at least one
63086308 12 Illinois border, the Illinois portion of which is physically
63096309 13 located within the region of the Midcontinent Independent
63106310 14 System Operator, Inc., or its successor organization, and runs
63116311 15 through the counties of Pike, Scott, Greene, Macoupin,
63126312 16 Montgomery, Christian, Shelby, Cumberland, and Clark, is
63136313 17 capable of transmitting electricity at voltages of 345
63146314 18 kilovolts or above, and may also include associated
63156315 19 interconnected alternating current interconnection facilities
63166316 20 in this State that are part of the proposed project and
63176317 21 reasonably necessary to connect the project with other
63186318 22 portions of the grid.
63196319 23 Notwithstanding any other provision of this Act, a
63206320 24 qualifying direct current applicant that does not own,
63216321 25 control, operate, or manage, within this State, any plant,
63226322 26 equipment, or property used or to be used for the transmission
63236323
63246324
63256325
63266326
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63296329
63306330
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63326332 HB1463 - 176 - LRB103 05819 AMQ 50839 b
63336333 1 of electricity at the time of its application or of the
63346334 2 Commission's order may file an application on or before
63356335 3 December 31, 2023 with the Commission pursuant to this Section
63366336 4 or Section 8-406.1 for, and the Commission may grant, a
63376337 5 certificate of public convenience and necessity to construct,
63386338 6 operate, and maintain a qualifying direct current project. The
63396339 7 qualifying direct current applicant may also include in the
63406340 8 application requests for authority under Section 8-503. The
63416341 9 Commission shall grant the application for a certificate of
63426342 10 public convenience and necessity and requests for authority
63436343 11 under Section 8-503 if it finds that the qualifying direct
63446344 12 current applicant and the proposed qualifying direct current
63456345 13 project satisfy the requirements of this subsection and
63466346 14 otherwise satisfy the criteria of this Section or Section
63476347 15 8-406.1 and the criteria of Section 8-503, as applicable to
63486348 16 the application and to the extent such criteria are not
63496349 17 superseded by the provisions of this subsection. The
63506350 18 Commission's order on the application for the certificate of
63516351 19 public convenience and necessity shall also include the
63526352 20 Commission's findings and determinations on the request or
63536353 21 requests for authority pursuant to Section 8-503. Prior to
63546354 22 filing its application under either this Section or Section
63556355 23 8-406.1, the qualifying direct current applicant shall conduct
63566356 24 3 public meetings in accordance with subsection (h) of this
63576357 25 Section. If the qualifying direct current applicant
63586358 26 demonstrates in its application that the proposed qualifying
63596359
63606360
63616361
63626362
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63656365
63666366
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63686368 HB1463 - 177 - LRB103 05819 AMQ 50839 b
63696369 1 direct current project is designed to deliver electricity to a
63706370 2 point or points on the electric transmission grid in either or
63716371 3 both the PJM Interconnection, LLC or the Midcontinent
63726372 4 Independent System Operator, Inc., or their respective
63736373 5 successor organizations, the proposed qualifying direct
63746374 6 current project shall be deemed to be, and the Commission
63756375 7 shall find it to be, for public use. If the qualifying direct
63766376 8 current applicant further demonstrates in its application that
63776377 9 the proposed transmission project has a capacity of 1,000
63786378 10 megawatts or larger and a voltage level of 345 kilovolts or
63796379 11 greater, the proposed transmission project shall be deemed to
63806380 12 satisfy, and the Commission shall find that it satisfies, the
63816381 13 criteria stated in item (1) of subsection (b) of this Section
63826382 14 or in paragraph (1) of subsection (f) of Section 8-406.1, as
63836383 15 applicable to the application, without the taking of
63846384 16 additional evidence on these criteria. Prior to the transfer
63856385 17 of functional control of any transmission assets to a regional
63866386 18 transmission organization, a qualifying direct current
63876387 19 applicant shall request Commission approval to join a regional
63886388 20 transmission organization in an application filed pursuant to
63896389 21 this subsection (b-5) or separately pursuant to Section 7-102
63906390 22 of this Act. The Commission may grant permission to a
63916391 23 qualifying direct current applicant to join a regional
63926392 24 transmission organization if it finds that the membership, and
63936393 25 associated transfer of functional control of transmission
63946394 26 assets, benefits Illinois customers in light of the attendant
63956395
63966396
63976397
63986398
63996399
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64016401
64026402
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64046404 HB1463 - 178 - LRB103 05819 AMQ 50839 b
64056405 1 costs and is otherwise in the public interest. Nothing in this
64066406 2 subsection (b-5) requires a qualifying direct current
64076407 3 applicant to join a regional transmission organization.
64086408 4 Nothing in this subsection (b-5) requires the owner or
64096409 5 operator of a high voltage direct current transmission line
64106410 6 that is not a qualifying direct current project to obtain a
64116411 7 certificate of public convenience and necessity to the extent
64126412 8 it is not otherwise required by this Section 8-406 or any other
64136413 9 provision of this Act.
64146414 10 (c) After September 11, 1987 (the effective date of Public
64156415 11 Act 85-377), no construction shall commence on any new nuclear
64166416 12 power plant to be located within this State, and no
64176417 13 certificate of public convenience and necessity or other
64186418 14 authorization shall be issued therefor by the Commission,
64196419 15 until the Director of the Illinois Environmental Protection
64206420 16 Agency finds that the United States Government, through its
64216421 17 authorized agency, has identified and approved a demonstrable
64226422 18 technology or means for the disposal of high level nuclear
64236423 19 waste, or until such construction has been specifically
64246424 20 approved by a statute enacted by the General Assembly.
64256425 21 As used in this Section, "high level nuclear waste" means
64266426 22 those aqueous wastes resulting from the operation of the first
64276427 23 cycle of the solvent extraction system or equivalent and the
64286428 24 concentrated wastes of the subsequent extraction cycles or
64296429 25 equivalent in a facility for reprocessing irradiated reactor
64306430 26 fuel and shall include spent fuel assemblies prior to fuel
64316431
64326432
64336433
64346434
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64376437
64386438
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64406440 HB1463 - 179 - LRB103 05819 AMQ 50839 b
64416441 1 reprocessing.
64426442 2 (d) In making its determination under subsection (b) of
64436443 3 this Section, the Commission shall attach primary weight to
64446444 4 the cost or cost savings to the customers of the utility. The
64456445 5 Commission may consider any or all factors which will or may
64466446 6 affect such cost or cost savings, including the public
64476447 7 utility's engineering judgment regarding the materials used
64486448 8 for construction.
64496449 9 (e) The Commission may issue a temporary certificate which
64506450 10 shall remain in force not to exceed one year in cases of
64516451 11 emergency, to assure maintenance of adequate service or to
64526452 12 serve particular customers, without notice or hearing, pending
64536453 13 the determination of an application for a certificate, and may
64546454 14 by regulation exempt from the requirements of this Section
64556455 15 temporary acts or operations for which the issuance of a
64566456 16 certificate will not be required in the public interest.
64576457 17 A public utility shall not be required to obtain but may
64586458 18 apply for and obtain a certificate of public convenience and
64596459 19 necessity pursuant to this Section with respect to any matter
64606460 20 as to which it has received the authorization or order of the
64616461 21 Commission under the Electric Supplier Act, and any such
64626462 22 authorization or order granted a public utility by the
64636463 23 Commission under that Act shall as between public utilities be
64646464 24 deemed to be, and shall have except as provided in that Act the
64656465 25 same force and effect as, a certificate of public convenience
64666466 26 and necessity issued pursuant to this Section.
64676467
64686468
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64736473
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64766476 HB1463 - 180 - LRB103 05819 AMQ 50839 b
64776477 1 No electric cooperative shall be made or shall become a
64786478 2 party to or shall be entitled to be heard or to otherwise
64796479 3 appear or participate in any proceeding initiated under this
64806480 4 Section for authorization of power plant construction and as
64816481 5 to matters as to which a remedy is available under the Electric
64826482 6 Supplier Act.
64836483 7 (f) Such certificates may be altered or modified by the
64846484 8 Commission, upon its own motion or upon application by the
64856485 9 person or corporation affected. Unless exercised within a
64866486 10 period of 2 years from the grant thereof, authority conferred
64876487 11 by a certificate of convenience and necessity issued by the
64886488 12 Commission shall be null and void.
64896489 13 No certificate of public convenience and necessity shall
64906490 14 be construed as granting a monopoly or an exclusive privilege,
64916491 15 immunity or franchise.
64926492 16 (g) A public utility that undertakes any of the actions
64936493 17 described in items (1) through (3) of this subsection (g) or
64946494 18 that has obtained approval pursuant to Section 8-406.1 of this
64956495 19 Act shall not be required to comply with the requirements of
64966496 20 this Section to the extent such requirements otherwise would
64976497 21 apply. For purposes of this Section and Section 8-406.1 of
64986498 22 this Act, "high voltage electric service line" means an
64996499 23 electric line having a design voltage of 100,000 or more. For
65006500 24 purposes of this subsection (g), a public utility may do any of
65016501 25 the following:
65026502 26 (1) replace or upgrade any existing high voltage
65036503
65046504
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65096509
65106510
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65126512 HB1463 - 181 - LRB103 05819 AMQ 50839 b
65136513 1 electric service line and related facilities,
65146514 2 notwithstanding its length;
65156515 3 (2) relocate any existing high voltage electric
65166516 4 service line and related facilities, notwithstanding its
65176517 5 length, to accommodate construction or expansion of a
65186518 6 roadway or other transportation infrastructure; or
65196519 7 (3) construct a high voltage electric service line and
65206520 8 related facilities that is constructed solely to serve a
65216521 9 single customer's premises or to provide a generator
65226522 10 interconnection to the public utility's transmission
65236523 11 system and that will pass under or over the premises owned
65246524 12 by the customer or generator to be served or under or over
65256525 13 premises for which the customer or generator has secured
65266526 14 the necessary right of way.
65276527 15 (h) A public utility seeking to construct a high-voltage
65286528 16 electric service line and related facilities (Project) must
65296529 17 show that the utility has held a minimum of 2 pre-filing public
65306530 18 meetings to receive public comment concerning the Project in
65316531 19 each county where the Project is to be located, no earlier than
65326532 20 6 months prior to filing an application for a certificate of
65336533 21 public convenience and necessity from the Commission. Notice
65346534 22 of the public meeting shall be published in a newspaper of
65356535 23 general circulation within the affected county once a week for
65366536 24 3 consecutive weeks, beginning no earlier than one month prior
65376537 25 to the first public meeting. If the Project traverses 2
65386538 26 contiguous counties and where in one county the transmission
65396539
65406540
65416541
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65456545
65466546
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65486548 HB1463 - 182 - LRB103 05819 AMQ 50839 b
65496549 1 line mileage and number of landowners over whose property the
65506550 2 proposed route traverses is one-fifth or less of the
65516551 3 transmission line mileage and number of such landowners of the
65526552 4 other county, then the utility may combine the 2 pre-filing
65536553 5 meetings in the county with the greater transmission line
65546554 6 mileage and affected landowners. All other requirements
65556555 7 regarding pre-filing meetings shall apply in both counties.
65566556 8 Notice of the public meeting, including a description of the
65576557 9 Project, must be provided in writing to the clerk of each
65586558 10 county where the Project is to be located. A representative of
65596559 11 the Commission shall be invited to each pre-filing public
65606560 12 meeting.
65616561 13 (i) For applications filed after August 18, 2015 (the
65626562 14 effective date of Public Act 99-399), the Commission shall, by
65636563 15 certified mail, notify each owner of record of land, as
65646564 16 identified in the records of the relevant county tax assessor,
65656565 17 included in the right-of-way over which the utility seeks in
65666566 18 its application to construct a high-voltage electric line of
65676567 19 the time and place scheduled for the initial hearing on the
65686568 20 public utility's application. The utility shall reimburse the
65696569 21 Commission for the cost of the postage and supplies incurred
65706570 22 for mailing the notice.
65716571 23 (Source: P.A. 102-609, eff. 8-27-21; 102-662, eff. 9-15-21;
65726572 24 102-813, eff. 5-13-22; 102-931, eff. 5-27-22.)
65736573 25 Section 99. Effective date. This Act takes effect upon
65746574 26 becoming law.
65756575
65766576
65776577
65786578
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