Illinois 2023-2024 Regular Session

Illinois House Bill HB2205 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2205 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-10 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Adds to the definition of "brownfield site photovoltaic project", photovoltaics that meet the criteria that the project is interconnected to an electric utility, a municipal utility, a public utility as defined in the Public Utilities Act, or an electric cooperative as defined in the Public Utilities Act and is located on any part of the site, and within the property boundaries, of a coal-fueled electric generating plant in this State that was retired as of January 1, 2023, or that the generating plant owner commits to retire prior to the commercial operation date of the project. In provisions concerning renewable energy credits from new projects in the long-term renewable resources procurement plan, the Agency shall procure 55% from photovoltaic projects where at least 44% (rather than 47%) are from utility-scale solar projects and at least 3% are from projects that meet specified criteria. Effective immediately. LRB103 28438 AMQ 54818 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2205 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-10 20 ILCS 3855/1-75 20 ILCS 3855/1-10 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Adds to the definition of "brownfield site photovoltaic project", photovoltaics that meet the criteria that the project is interconnected to an electric utility, a municipal utility, a public utility as defined in the Public Utilities Act, or an electric cooperative as defined in the Public Utilities Act and is located on any part of the site, and within the property boundaries, of a coal-fueled electric generating plant in this State that was retired as of January 1, 2023, or that the generating plant owner commits to retire prior to the commercial operation date of the project. In provisions concerning renewable energy credits from new projects in the long-term renewable resources procurement plan, the Agency shall procure 55% from photovoltaic projects where at least 44% (rather than 47%) are from utility-scale solar projects and at least 3% are from projects that meet specified criteria. Effective immediately. LRB103 28438 AMQ 54818 b LRB103 28438 AMQ 54818 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2205 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-10 20 ILCS 3855/1-75 20 ILCS 3855/1-10 20 ILCS 3855/1-75
4	4	20 ILCS 3855/1-10
5	5	20 ILCS 3855/1-75
6	6	Amends the Illinois Power Agency Act. Adds to the definition of "brownfield site photovoltaic project", photovoltaics that meet the criteria that the project is interconnected to an electric utility, a municipal utility, a public utility as defined in the Public Utilities Act, or an electric cooperative as defined in the Public Utilities Act and is located on any part of the site, and within the property boundaries, of a coal-fueled electric generating plant in this State that was retired as of January 1, 2023, or that the generating plant owner commits to retire prior to the commercial operation date of the project. In provisions concerning renewable energy credits from new projects in the long-term renewable resources procurement plan, the Agency shall procure 55% from photovoltaic projects where at least 44% (rather than 47%) are from utility-scale solar projects and at least 3% are from projects that meet specified criteria. Effective immediately.
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9	9	A BILL FOR
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12	12	1 AN ACT concerning State government.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Power Agency Act is amended by
16	16	5 changing Sections 1-10 and 1-75 as follows:
17	17	6 (20 ILCS 3855/1-10)
18	18	7 Sec. 1-10. Definitions.
19	19	8 "Agency" means the Illinois Power Agency.
20	20	9 "Agency loan agreement" means any agreement pursuant to
21	21	10 which the Illinois Finance Authority agrees to loan the
22	22	11 proceeds of revenue bonds issued with respect to a project to
23	23	12 the Agency upon terms providing for loan repayment
24	24	13 installments at least sufficient to pay when due all principal
25	25	14 of, interest and premium, if any, on those revenue bonds, and
26	26	15 providing for maintenance, insurance, and other matters in
27	27	16 respect of the project.
28	28	17 "Authority" means the Illinois Finance Authority.
29	29	18 "Brownfield site photovoltaic project" means photovoltaics
30	30	19 that meet the criteria specified in paragraph (1), (2), or (3)
31	31	20 are either:
32	32	21 (1) the project is interconnected to an electric
33	33	22 utility as defined in this Section, a municipal utility as
34	34	23 defined in this Section, a public utility as defined in
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38	38	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2205 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
39	39	20 ILCS 3855/1-10 20 ILCS 3855/1-75 20 ILCS 3855/1-10 20 ILCS 3855/1-75
40	40	20 ILCS 3855/1-10
41	41	20 ILCS 3855/1-75
42	42	Amends the Illinois Power Agency Act. Adds to the definition of "brownfield site photovoltaic project", photovoltaics that meet the criteria that the project is interconnected to an electric utility, a municipal utility, a public utility as defined in the Public Utilities Act, or an electric cooperative as defined in the Public Utilities Act and is located on any part of the site, and within the property boundaries, of a coal-fueled electric generating plant in this State that was retired as of January 1, 2023, or that the generating plant owner commits to retire prior to the commercial operation date of the project. In provisions concerning renewable energy credits from new projects in the long-term renewable resources procurement plan, the Agency shall procure 55% from photovoltaic projects where at least 44% (rather than 47%) are from utility-scale solar projects and at least 3% are from projects that meet specified criteria. Effective immediately.
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71	71	1 Section 3-105 of the Public Utilities Act, or an electric
72	72	2 cooperative as defined in Section 3-119 of the Public
73	73	3 Utilities Act and located at a site that is regulated by
74	74	4 any of the following entities under the following
75	75	5 programs:
76	76	6 (A) the United States Environmental Protection
77	77	7 Agency under the federal Comprehensive Environmental
78	78	8 Response, Compensation, and Liability Act of 1980, as
79	79	9 amended;
80	80	10 (B) the United States Environmental Protection
81	81	11 Agency under the Corrective Action Program of the
82	82	12 federal Resource Conservation and Recovery Act, as
83	83	13 amended;
84	84	14 (C) the Illinois Environmental Protection Agency
85	85	15 under the Illinois Site Remediation Program; or
86	86	16 (D) the Illinois Environmental Protection Agency
87	87	17 under the Illinois Solid Waste Program; or
88	88	18 (2) the project is located at the site of a coal mine
89	89	19 that has permanently ceased coal production, permanently
90	90	20 halted any re-mining operations, and is no longer
91	91	21 accepting any coal combustion residues; has both completed
92	92	22 all clean-up and remediation obligations under the federal
93	93	23 Surface Mining and Reclamation Act of 1977 and all
94	94	24 applicable Illinois rules and any other clean-up,
95	95	25 remediation, or ongoing monitoring to safeguard the health
96	96	26 and well-being of the people of the State of Illinois, as
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107	107	1 well as demonstrated compliance with all applicable
108	108	2 federal and State environmental rules and regulations,
109	109	3 including, but not limited, to 35 Ill. Adm. Code Part 845
110	110	4 and any rules for historic fill of coal combustion
111	111	5 residuals, including any rules finalized in Subdocket A of
112	112	6 Illinois Pollution Control Board docket R2020-019; or .
113	113	7 (3) the project is interconnected to an electric
114	114	8 utility, a municipal utility, a public utility as defined
115	115	9 in Section 3-105 of the Public Utilities Act, or an
116	116	10 electric cooperative as defined in Section 3-119 of the
117	117	11 Public Utilities Act and is located on any part of the
118	118	12 site, and within the property boundaries, of a coal-fueled
119	119	13 electric generating plant in this State that was retired
120	120	14 as of January 1, 2023, or that the generating plant owner
121	121	15 commits to retire prior to the commercial operation date
122	122	16 of the project, regardless of whether or not any portion
123	123	17 of the site is regulated under one or more of the programs
124	124	18 listed in paragraph (2) of this definition. However, this
125	125	19 subparagraph shall not include projects selected to enter
126	126	20 into renewable energy credit contracts pursuant to
127	127	21 subsection (c-5) of Section 1-75.
128	128	22 "Clean coal facility" means an electric generating
129	129	23 facility that uses primarily coal as a feedstock and that
130	130	24 captures and sequesters carbon dioxide emissions at the
131	131	25 following levels: at least 50% of the total carbon dioxide
132	132	26 emissions that the facility would otherwise emit if, at the
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143	143	1 time construction commences, the facility is scheduled to
144	144	2 commence operation before 2016, at least 70% of the total
145	145	3 carbon dioxide emissions that the facility would otherwise
146	146	4 emit if, at the time construction commences, the facility is
147	147	5 scheduled to commence operation during 2016 or 2017, and at
148	148	6 least 90% of the total carbon dioxide emissions that the
149	149	7 facility would otherwise emit if, at the time construction
150	150	8 commences, the facility is scheduled to commence operation
151	151	9 after 2017. The power block of the clean coal facility shall
152	152	10 not exceed allowable emission rates for sulfur dioxide,
153	153	11 nitrogen oxides, carbon monoxide, particulates and mercury for
154	154	12 a natural gas-fired combined-cycle facility the same size as
155	155	13 and in the same location as the clean coal facility at the time
156	156	14 the clean coal facility obtains an approved air permit. All
157	157	15 coal used by a clean coal facility shall have high volatile
158	158	16 bituminous rank and greater than 1.7 pounds of sulfur per
159	159	17 million Btu btu content, unless the clean coal facility does
160	160	18 not use gasification technology and was operating as a
161	161	19 conventional coal-fired electric generating facility on June
162	162	20 1, 2009 (the effective date of Public Act 95-1027).
163	163	21 "Clean coal SNG brownfield facility" means a facility that
164	164	22 (1) has commenced construction by July 1, 2015 on an urban
165	165	23 brownfield site in a municipality with at least 1,000,000
166	166	24 residents; (2) uses a gasification process to produce
167	167	25 substitute natural gas; (3) uses coal as at least 50% of the
168	168	26 total feedstock over the term of any sourcing agreement with a
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179	179	1 utility and the remainder of the feedstock may be either
180	180	2 petroleum coke or coal, with all such coal having a high
181	181	3 bituminous rank and greater than 1.7 pounds of sulfur per
182	182	4 million Btu content unless the facility reasonably determines
183	183	5 that it is necessary to use additional petroleum coke to
184	184	6 deliver additional consumer savings, in which case the
185	185	7 facility shall use coal for at least 35% of the total feedstock
186	186	8 over the term of any sourcing agreement; and (4) captures and
187	187	9 sequesters at least 85% of the total carbon dioxide emissions
188	188	10 that the facility would otherwise emit.
189	189	11 "Clean coal SNG facility" means a facility that uses a
190	190	12 gasification process to produce substitute natural gas, that
191	191	13 sequesters at least 90% of the total carbon dioxide emissions
192	192	14 that the facility would otherwise emit, that uses at least 90%
193	193	15 coal as a feedstock, with all such coal having a high
194	194	16 bituminous rank and greater than 1.7 pounds of sulfur per
195	195	17 million Btu btu content, and that has a valid and effective
196	196	18 permit to construct emission sources and air pollution control
197	197	19 equipment and approval with respect to the federal regulations
198	198	20 for Prevention of Significant Deterioration of Air Quality
199	199	21 (PSD) for the plant pursuant to the federal Clean Air Act;
200	200	22 provided, however, a clean coal SNG brownfield facility shall
201	201	23 not be a clean coal SNG facility.
202	202	24 "Clean energy" means energy generation that is 90% or
203	203	25 greater free of carbon dioxide emissions.
204	204	26 "Commission" means the Illinois Commerce Commission.
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215	215	1 "Community renewable generation project" means an electric
216	216	2 generating facility that:
217	217	3 (1) is powered by wind, solar thermal energy,
218	218	4 photovoltaic cells or panels, biodiesel, crops and
219	219	5 untreated and unadulterated organic waste biomass, and
220	220	6 hydropower that does not involve new construction or
221	221	7 significant expansion of hydropower dams;
222	222	8 (2) is interconnected at the distribution system level
223	223	9 of an electric utility as defined in this Section, a
224	224	10 municipal utility as defined in this Section that owns or
225	225	11 operates electric distribution facilities, a public
226	226	12 utility as defined in Section 3-105 of the Public
227	227	13 Utilities Act, or an electric cooperative, as defined in
228	228	14 Section 3-119 of the Public Utilities Act;
229	229	15 (3) credits the value of electricity generated by the
230	230	16 facility to the subscribers of the facility; and
231	231	17 (4) is limited in nameplate capacity to less than or
232	232	18 equal to 5,000 kilowatts.
233	233	19 "Costs incurred in connection with the development and
234	234	20 construction of a facility" means:
235	235	21 (1) the cost of acquisition of all real property,
236	236	22 fixtures, and improvements in connection therewith and
237	237	23 equipment, personal property, and other property, rights,
238	238	24 and easements acquired that are deemed necessary for the
239	239	25 operation and maintenance of the facility;
240	240	26 (2) financing costs with respect to bonds, notes, and
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251	251	1 other evidences of indebtedness of the Agency;
252	252	2 (3) all origination, commitment, utilization,
253	253	3 facility, placement, underwriting, syndication, credit
254	254	4 enhancement, and rating agency fees;
255	255	5 (4) engineering, design, procurement, consulting,
256	256	6 legal, accounting, title insurance, survey, appraisal,
257	257	7 escrow, trustee, collateral agency, interest rate hedging,
258	258	8 interest rate swap, capitalized interest, contingency, as
259	259	9 required by lenders, and other financing costs, and other
260	260	10 expenses for professional services; and
261	261	11 (5) the costs of plans, specifications, site study and
262	262	12 investigation, installation, surveys, other Agency costs
263	263	13 and estimates of costs, and other expenses necessary or
264	264	14 incidental to determining the feasibility of any project,
265	265	15 together with such other expenses as may be necessary or
266	266	16 incidental to the financing, insuring, acquisition, and
267	267	17 construction of a specific project and starting up,
268	268	18 commissioning, and placing that project in operation.
269	269	19 "Delivery services" has the same definition as found in
270	270	20 Section 16-102 of the Public Utilities Act.
271	271	21 "Delivery year" means the consecutive 12-month period
272	272	22 beginning June 1 of a given year and ending May 31 of the
273	273	23 following year.
274	274	24 "Department" means the Department of Commerce and Economic
275	275	25 Opportunity.
276	276	26 "Director" means the Director of the Illinois Power
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287	287	1 Agency.
288	288	2 "Demand-response" means measures that decrease peak
289	289	3 electricity demand or shift demand from peak to off-peak
290	290	4 periods.
291	291	5 "Distributed renewable energy generation device" means a
292	292	6 device that is:
293	293	7 (1) powered by wind, solar thermal energy,
294	294	8 photovoltaic cells or panels, biodiesel, crops and
295	295	9 untreated and unadulterated organic waste biomass, tree
296	296	10 waste, and hydropower that does not involve new
297	297	11 construction or significant expansion of hydropower dams,
298	298	12 waste heat to power systems, or qualified combined heat
299	299	13 and power systems;
300	300	14 (2) interconnected at the distribution system level of
301	301	15 either an electric utility as defined in this Section, a
302	302	16 municipal utility as defined in this Section that owns or
303	303	17 operates electric distribution facilities, or a rural
304	304	18 electric cooperative as defined in Section 3-119 of the
305	305	19 Public Utilities Act;
306	306	20 (3) located on the customer side of the customer's
307	307	21 electric meter and is primarily used to offset that
308	308	22 customer's electricity load; and
309	309	23 (4) (blank).
310	310	24 "Energy efficiency" means measures that reduce the amount
311	311	25 of electricity or natural gas consumed in order to achieve a
312	312	26 given end use. "Energy efficiency" includes voltage
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323	323	1 optimization measures that optimize the voltage at points on
324	324	2 the electric distribution voltage system and thereby reduce
325	325	3 electricity consumption by electric customers' end use
326	326	4 devices. "Energy efficiency" also includes measures that
327	327	5 reduce the total Btus of electricity, natural gas, and other
328	328	6 fuels needed to meet the end use or uses.
329	329	7 "Electric utility" has the same definition as found in
330	330	8 Section 16-102 of the Public Utilities Act.
331	331	9 "Equity investment eligible community" or "eligible
332	332	10 community" are synonymous and mean the geographic areas
333	333	11 throughout Illinois which would most benefit from equitable
334	334	12 investments by the State designed to combat discrimination.
335	335	13 Specifically, the eligible communities shall be defined as the
336	336	14 following areas:
337	337	15 (1) R3 Areas as established pursuant to Section 10-40
338	338	16 of the Cannabis Regulation and Tax Act, where residents
339	339	17 have historically been excluded from economic
340	340	18 opportunities, including opportunities in the energy
341	341	19 sector; and
342	342	20 (2) environmental Environmental justice communities,
343	343	21 as defined by the Illinois Power Agency pursuant to the
344	344	22 Illinois Power Agency Act, where residents have
345	345	23 historically been subject to disproportionate burdens of
346	346	24 pollution, including pollution from the energy sector.
347	347	25 "Equity eligible persons" or "eligible persons" means
348	348	26 persons who would most benefit from equitable investments by
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359	359	1 the State designed to combat discrimination, specifically:
360	360	2 (1) persons who graduate from or are current or former
361	361	3 participants in the Clean Jobs Workforce Network Program,
362	362	4 the Clean Energy Contractor Incubator Program, the
363	363	5 Illinois Climate Works Preapprenticeship Program,
364	364	6 Returning Residents Clean Jobs Training Program, or the
365	365	7 Clean Energy Primes Contractor Accelerator Program, and
366	366	8 the solar training pipeline and multi-cultural jobs
367	367	9 program created in paragraphs (a)(1) and (a)(3) of Section
368	368	10 16-208.12 16-108.21 of the Public Utilities Act;
369	369	11 (2) persons who are graduates of or currently enrolled
370	370	12 in the foster care system;
371	371	13 (3) persons who were formerly incarcerated;
372	372	14 (4) persons whose primary residence is in an equity
373	373	15 investment eligible community.
374	374	16 "Equity eligible contractor" means a business that is
375	375	17 majority-owned by eligible persons, or a nonprofit or
376	376	18 cooperative that is majority-governed by eligible persons, or
377	377	19 is a natural person that is an eligible person offering
378	378	20 personal services as an independent contractor.
379	379	21 "Facility" means an electric generating unit or a
380	380	22 co-generating unit that produces electricity along with
381	381	23 related equipment necessary to connect the facility to an
382	382	24 electric transmission or distribution system.
383	383	25 "General contractor Contractor" means the entity or
384	384	26 organization with main responsibility for the building of a
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395	395	1 construction project and who is the party signing the prime
396	396	2 construction contract for the project.
397	397	3 "Governmental aggregator" means one or more units of local
398	398	4 government that individually or collectively procure
399	399	5 electricity to serve residential retail electrical loads
400	400	6 located within its or their jurisdiction.
401	401	7 "High voltage direct current converter station" means the
402	402	8 collection of equipment that converts direct current energy
403	403	9 from a high voltage direct current transmission line into
404	404	10 alternating current using Voltage Source Conversion technology
405	405	11 and that is interconnected with transmission or distribution
406	406	12 assets located in Illinois.
407	407	13 "High voltage direct current renewable energy credit"
408	408	14 means a renewable energy credit associated with a renewable
409	409	15 energy resource where the renewable energy resource has
410	410	16 entered into a contract to transmit the energy associated with
411	411	17 such renewable energy credit over high voltage direct current
412	412	18 transmission facilities.
413	413	19 "High voltage direct current transmission facilities"
414	414	20 means the collection of installed equipment that converts
415	415	21 alternating current energy in one location to direct current
416	416	22 and transmits that direct current energy to a high voltage
417	417	23 direct current converter station using Voltage Source
418	418	24 Conversion technology. "High voltage direct current
419	419	25 transmission facilities" includes the high voltage direct
420	420	26 current converter station itself and associated high voltage
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431	431	1 direct current transmission lines. Notwithstanding the
432	432	2 preceding, after September 15, 2021 (the effective date of
433	433	3 Public Act 102-662) this amendatory Act of the 102nd General
434	434	4 Assembly, an otherwise qualifying collection of equipment does
435	435	5 not qualify as high voltage direct current transmission
436	436	6 facilities unless its developer entered into a project labor
437	437	7 agreement, is capable of transmitting electricity at 525kv
438	438	8 with an Illinois converter station located and interconnected
439	439	9 in the region of the PJM Interconnection, LLC, and the system
440	440	10 does not operate as a public utility, as that term is defined
441	441	11 in Section 3-105 of the Public Utilities Act.
442	442	12 "Index price" means the real-time energy settlement price
443	443	13 at the applicable Illinois trading hub, such as PJM-NIHUB or
444	444	14 MISO-IL, for a given settlement period.
445	445	15 "Indexed renewable energy credit" means a tradable credit
446	446	16 that represents the environmental attributes of one megawatt
447	447	17 hour of energy produced from a renewable energy resource, the
448	448	18 price of which shall be calculated by subtracting the strike
449	449	19 price offered by a new utility-scale wind project or a new
450	450	20 utility-scale photovoltaic project from the index price in a
451	451	21 given settlement period.
452	452	22 "Indexed renewable energy credit counterparty" has the
453	453	23 same meaning as "public utility" as defined in Section 3-105
454	454	24 of the Public Utilities Act.
455	455	25 "Local government" means a unit of local government as
456	456	26 defined in Section 1 of Article VII of the Illinois
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467	467	1 Constitution.
468	468	2 "Municipality" means a city, village, or incorporated
469	469	3 town.
470	470	4 "Municipal utility" means a public utility owned and
471	471	5 operated by any subdivision or municipal corporation of this
472	472	6 State.
473	473	7 "Nameplate capacity" means the aggregate inverter
474	474	8 nameplate capacity in kilowatts AC.
475	475	9 "Person" means any natural person, firm, partnership,
476	476	10 corporation, either domestic or foreign, company, association,
477	477	11 limited liability company, joint stock company, or association
478	478	12 and includes any trustee, receiver, assignee, or personal
479	479	13 representative thereof.
480	480	14 "Project" means the planning, bidding, and construction of
481	481	15 a facility.
482	482	16 "Project labor agreement" means a pre-hire collective
483	483	17 bargaining agreement that covers all terms and conditions of
484	484	18 employment on a specific construction project and must include
485	485	19 the following:
486	486	20 (1) provisions establishing the minimum hourly wage
487	487	21 for each class of labor organization employee;
488	488	22 (2) provisions establishing the benefits and other
489	489	23 compensation for each class of labor organization
490	490	24 employee;
491	491	25 (3) provisions establishing that no strike or disputes
492	492	26 will be engaged in by the labor organization employees;
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503	503	1 (4) provisions establishing that no lockout or
504	504	2 disputes will be engaged in by the general contractor
505	505	3 building the project; and
506	506	4 (5) provisions for minorities and women, as defined
507	507	5 under the Business Enterprise for Minorities, Women, and
508	508	6 Persons with Disabilities Act, setting forth goals for
509	509	7 apprenticeship hours to be performed by minorities and
510	510	8 women and setting forth goals for total hours to be
511	511	9 performed by underrepresented minorities and women.
512	512	10 A labor organization and the general contractor building
513	513	11 the project shall have the authority to include other terms
514	514	12 and conditions as they deem necessary.
515	515	13 "Public utility" has the same definition as found in
516	516	14 Section 3-105 of the Public Utilities Act.
517	517	15 "Qualified combined heat and power systems" means systems
518	518	16 that, either simultaneously or sequentially, produce
519	519	17 electricity and useful thermal energy from a single fuel
520	520	18 source. Such systems are eligible for "renewable energy
521	521	19 credits" in an amount equal to its total energy output where a
522	522	20 renewable fuel is consumed or in an amount equal to the net
523	523	21 reduction in nonrenewable fuel consumed on a total energy
524	524	22 output basis.
525	525	23 "Real property" means any interest in land together with
526	526	24 all structures, fixtures, and improvements thereon, including
527	527	25 lands under water and riparian rights, any easements,
528	528	26 covenants, licenses, leases, rights-of-way, uses, and other
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539	539	1 interests, together with any liens, judgments, mortgages, or
540	540	2 other claims or security interests related to real property.
541	541	3 "Renewable energy credit" means a tradable credit that
542	542	4 represents the environmental attributes of one megawatt hour
543	543	5 of energy produced from a renewable energy resource.
544	544	6 "Renewable energy resources" includes energy and its
545	545	7 associated renewable energy credit or renewable energy credits
546	546	8 from wind, solar thermal energy, photovoltaic cells and
547	547	9 panels, biodiesel, anaerobic digestion, crops and untreated
548	548	10 and unadulterated organic waste biomass, and hydropower that
549	549	11 does not involve new construction or significant expansion of
550	550	12 hydropower dams, waste heat to power systems, or qualified
551	551	13 combined heat and power systems. For purposes of this Act,
552	552	14 landfill gas produced in the State is considered a renewable
553	553	15 energy resource. "Renewable energy resources" does not include
554	554	16 the incineration or burning of tires, garbage, general
555	555	17 household, institutional, and commercial waste, industrial
556	556	18 lunchroom or office waste, landscape waste, railroad
557	557	19 crossties, utility poles, or construction or demolition
558	558	20 debris, other than untreated and unadulterated waste wood.
559	559	21 "Renewable energy resources" also includes high voltage direct
560	560	22 current renewable energy credits and the associated energy
561	561	23 converted to alternating current by a high voltage direct
562	562	24 current converter station to the extent that: (1) the
563	563	25 generator of such renewable energy resource contracted with a
564	564	26 third party to transmit the energy over the high voltage
565	565
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575	575	1 direct current transmission facilities, and (2) the
576	576	2 third-party contracting for delivery of renewable energy
577	577	3 resources over the high voltage direct current transmission
578	578	4 facilities have ownership rights over the unretired associated
579	579	5 high voltage direct current renewable energy credit.
580	580	6 "Retail customer" has the same definition as found in
581	581	7 Section 16-102 of the Public Utilities Act.
582	582	8 "Revenue bond" means any bond, note, or other evidence of
583	583	9 indebtedness issued by the Authority, the principal and
584	584	10 interest of which is payable solely from revenues or income
585	585	11 derived from any project or activity of the Agency.
586	586	12 "Sequester" means permanent storage of carbon dioxide by
587	587	13 injecting it into a saline aquifer, a depleted gas reservoir,
588	588	14 or an oil reservoir, directly or through an enhanced oil
589	589	15 recovery process that may involve intermediate storage,
590	590	16 regardless of whether these activities are conducted by a
591	591	17 clean coal facility, a clean coal SNG facility, a clean coal
592	592	18 SNG brownfield facility, or a party with which a clean coal
593	593	19 facility, clean coal SNG facility, or clean coal SNG
594	594	20 brownfield facility has contracted for such purposes.
595	595	21 "Service area" has the same definition as found in Section
596	596	22 16-102 of the Public Utilities Act.
597	597	23 "Settlement period" means the period of time utilized by
598	598	24 MISO and PJM and their successor organizations as the basis
599	599	25 for settlement calculations in the real-time energy market.
600	600	26 "Sourcing agreement" means (i) in the case of an electric
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611	611	1 utility, an agreement between the owner of a clean coal
612	612	2 facility and such electric utility, which agreement shall have
613	613	3 terms and conditions meeting the requirements of paragraph (3)
614	614	4 of subsection (d) of Section 1-75, (ii) in the case of an
615	615	5 alternative retail electric supplier, an agreement between the
616	616	6 owner of a clean coal facility and such alternative retail
617	617	7 electric supplier, which agreement shall have terms and
618	618	8 conditions meeting the requirements of Section 16-115(d)(5) of
619	619	9 the Public Utilities Act, and (iii) in case of a gas utility,
620	620	10 an agreement between the owner of a clean coal SNG brownfield
621	621	11 facility and the gas utility, which agreement shall have the
622	622	12 terms and conditions meeting the requirements of subsection
623	623	13 (h-1) of Section 9-220 of the Public Utilities Act.
624	624	14 "Strike price" means a contract price for energy and
625	625	15 renewable energy credits from a new utility-scale wind project
626	626	16 or a new utility-scale photovoltaic project.
627	627	17 "Subscriber" means a person who (i) takes delivery service
628	628	18 from an electric utility, and (ii) has a subscription of no
629	629	19 less than 200 watts to a community renewable generation
630	630	20 project that is located in the electric utility's service
631	631	21 area. No subscriber's subscriptions may total more than 40% of
632	632	22 the nameplate capacity of an individual community renewable
633	633	23 generation project. Entities that are affiliated by virtue of
634	634	24 a common parent shall not represent multiple subscriptions
635	635	25 that total more than 40% of the nameplate capacity of an
636	636	26 individual community renewable generation project.
637	637
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647	647	1 "Subscription" means an interest in a community renewable
648	648	2 generation project expressed in kilowatts, which is sized
649	649	3 primarily to offset part or all of the subscriber's
650	650	4 electricity usage.
651	651	5 "Substitute natural gas" or "SNG" means a gas manufactured
652	652	6 by gasification of hydrocarbon feedstock, which is
653	653	7 substantially interchangeable in use and distribution with
654	654	8 conventional natural gas.
655	655	9 "Total resource cost test" or "TRC test" means a standard
656	656	10 that is met if, for an investment in energy efficiency or
657	657	11 demand-response measures, the benefit-cost ratio is greater
658	658	12 than one. The benefit-cost ratio is the ratio of the net
659	659	13 present value of the total benefits of the program to the net
660	660	14 present value of the total costs as calculated over the
661	661	15 lifetime of the measures. A total resource cost test compares
662	662	16 the sum of avoided electric utility costs, representing the
663	663	17 benefits that accrue to the system and the participant in the
664	664	18 delivery of those efficiency measures and including avoided
665	665	19 costs associated with reduced use of natural gas or other
666	666	20 fuels, avoided costs associated with reduced water
667	667	21 consumption, and avoided costs associated with reduced
668	668	22 operation and maintenance costs, as well as other quantifiable
669	669	23 societal benefits, to the sum of all incremental costs of
670	670	24 end-use measures that are implemented due to the program
671	671	25 (including both utility and participant contributions), plus
672	672	26 costs to administer, deliver, and evaluate each demand-side
673	673
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683	683	1 program, to quantify the net savings obtained by substituting
684	684	2 the demand-side program for supply resources. In calculating
685	685	3 avoided costs of power and energy that an electric utility
686	686	4 would otherwise have had to acquire, reasonable estimates
687	687	5 shall be included of financial costs likely to be imposed by
688	688	6 future regulations and legislation on emissions of greenhouse
689	689	7 gases. In discounting future societal costs and benefits for
690	690	8 the purpose of calculating net present values, a societal
691	691	9 discount rate based on actual, long-term Treasury bond yields
692	692	10 should be used. Notwithstanding anything to the contrary, the
693	693	11 TRC test shall not include or take into account a calculation
694	694	12 of market price suppression effects or demand reduction
695	695	13 induced price effects.
696	696	14 "Utility-scale solar project" means an electric generating
697	697	15 facility that:
698	698	16 (1) generates electricity using photovoltaic cells;
699	699	17 and
700	700	18 (2) has a nameplate capacity that is greater than
701	701	19 5,000 kilowatts.
702	702	20 "Utility-scale wind project" means an electric generating
703	703	21 facility that:
704	704	22 (1) generates electricity using wind; and
705	705	23 (2) has a nameplate capacity that is greater than
706	706	24 5,000 kilowatts.
707	707	25 "Waste Heat to Power Systems" means systems that capture
708	708	26 and generate electricity from energy that would otherwise be
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719	719	1 lost to the atmosphere without the use of additional fuel.
720	720	2 "Zero emission credit" means a tradable credit that
721	721	3 represents the environmental attributes of one megawatt hour
722	722	4 of energy produced from a zero emission facility.
723	723	5 "Zero emission facility" means a facility that: (1) is
724	724	6 fueled by nuclear power; and (2) is interconnected with PJM
725	725	7 Interconnection, LLC or the Midcontinent Independent System
726	726	8 Operator, Inc., or their successors.
727	727	9 (Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
728	728	10 (20 ILCS 3855/1-75)
729	729	11 Sec. 1-75. Planning and Procurement Bureau. The Planning
730	730	12 and Procurement Bureau has the following duties and
731	731	13 responsibilities:
732	732	14 (a) The Planning and Procurement Bureau shall each year,
733	733	15 beginning in 2008, develop procurement plans and conduct
734	734	16 competitive procurement processes in accordance with the
735	735	17 requirements of Section 16-111.5 of the Public Utilities Act
736	736	18 for the eligible retail customers of electric utilities that
737	737	19 on December 31, 2005 provided electric service to at least
738	738	20 100,000 customers in Illinois. Beginning with the delivery
739	739	21 year commencing on June 1, 2017, the Planning and Procurement
740	740	22 Bureau shall develop plans and processes for the procurement
741	741	23 of zero emission credits from zero emission facilities in
742	742	24 accordance with the requirements of subsection (d-5) of this
743	743	25 Section. Beginning on the effective date of this amendatory
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754	754	1 Act of the 102nd General Assembly, the Planning and
755	755	2 Procurement Bureau shall develop plans and processes for the
756	756	3 procurement of carbon mitigation credits from carbon-free
757	757	4 energy resources in accordance with the requirements of
758	758	5 subsection (d-10) of this Section. The Planning and
759	759	6 Procurement Bureau shall also develop procurement plans and
760	760	7 conduct competitive procurement processes in accordance with
761	761	8 the requirements of Section 16-111.5 of the Public Utilities
762	762	9 Act for the eligible retail customers of small
763	763	10 multi-jurisdictional electric utilities that (i) on December
764	764	11 31, 2005 served less than 100,000 customers in Illinois and
765	765	12 (ii) request a procurement plan for their Illinois
766	766	13 jurisdictional load. This Section shall not apply to a small
767	767	14 multi-jurisdictional utility until such time as a small
768	768	15 multi-jurisdictional utility requests the Agency to prepare a
769	769	16 procurement plan for their Illinois jurisdictional load. For
770	770	17 the purposes of this Section, the term "eligible retail
771	771	18 customers" has the same definition as found in Section
772	772	19 16-111.5(a) of the Public Utilities Act.
773	773	20 Beginning with the plan or plans to be implemented in the
774	774	21 2017 delivery year, the Agency shall no longer include the
775	775	22 procurement of renewable energy resources in the annual
776	776	23 procurement plans required by this subsection (a), except as
777	777	24 provided in subsection (q) of Section 16-111.5 of the Public
778	778	25 Utilities Act, and shall instead develop a long-term renewable
779	779	26 resources procurement plan in accordance with subsection (c)
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790	790	1 of this Section and Section 16-111.5 of the Public Utilities
791	791	2 Act.
792	792	3 In accordance with subsection (c-5) of this Section, the
793	793	4 Planning and Procurement Bureau shall oversee the procurement
794	794	5 by electric utilities that served more than 300,000 retail
795	795	6 customers in this State as of January 1, 2019 of renewable
796	796	7 energy credits from new utility-scale solar projects to be
797	797	8 installed, along with energy storage facilities, at or
798	798	9 adjacent to the sites of electric generating facilities that,
799	799	10 as of January 1, 2016, burned coal as their primary fuel
800	800	11 source.
801	801	12 (1) The Agency shall each year, beginning in 2008, as
802	802	13 needed, issue a request for qualifications for experts or
803	803	14 expert consulting firms to develop the procurement plans
804	804	15 in accordance with Section 16-111.5 of the Public
805	805	16 Utilities Act. In order to qualify an expert or expert
806	806	17 consulting firm must have:
807	807	18 (A) direct previous experience assembling
808	808	19 large-scale power supply plans or portfolios for
809	809	20 end-use customers;
810	810	21 (B) an advanced degree in economics, mathematics,
811	811	22 engineering, risk management, or a related area of
812	812	23 study;
813	813	24 (C) 10 years of experience in the electricity
814	814	25 sector, including managing supply risk;
815	815	26 (D) expertise in wholesale electricity market
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826	826	1 rules, including those established by the Federal
827	827	2 Energy Regulatory Commission and regional transmission
828	828	3 organizations;
829	829	4 (E) expertise in credit protocols and familiarity
830	830	5 with contract protocols;
831	831	6 (F) adequate resources to perform and fulfill the
832	832	7 required functions and responsibilities; and
833	833	8 (G) the absence of a conflict of interest and
834	834	9 inappropriate bias for or against potential bidders or
835	835	10 the affected electric utilities.
836	836	11 (2) The Agency shall each year, as needed, issue a
837	837	12 request for qualifications for a procurement administrator
838	838	13 to conduct the competitive procurement processes in
839	839	14 accordance with Section 16-111.5 of the Public Utilities
840	840	15 Act. In order to qualify an expert or expert consulting
841	841	16 firm must have:
842	842	17 (A) direct previous experience administering a
843	843	18 large-scale competitive procurement process;
844	844	19 (B) an advanced degree in economics, mathematics,
845	845	20 engineering, or a related area of study;
846	846	21 (C) 10 years of experience in the electricity
847	847	22 sector, including risk management experience;
848	848	23 (D) expertise in wholesale electricity market
849	849	24 rules, including those established by the Federal
850	850	25 Energy Regulatory Commission and regional transmission
851	851	26 organizations;
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862	862	1 (E) expertise in credit and contract protocols;
863	863	2 (F) adequate resources to perform and fulfill the
864	864	3 required functions and responsibilities; and
865	865	4 (G) the absence of a conflict of interest and
866	866	5 inappropriate bias for or against potential bidders or
867	867	6 the affected electric utilities.
868	868	7 (3) The Agency shall provide affected utilities and
869	869	8 other interested parties with the lists of qualified
870	870	9 experts or expert consulting firms identified through the
871	871	10 request for qualifications processes that are under
872	872	11 consideration to develop the procurement plans and to
873	873	12 serve as the procurement administrator. The Agency shall
874	874	13 also provide each qualified expert's or expert consulting
875	875	14 firm's response to the request for qualifications. All
876	876	15 information provided under this subparagraph shall also be
877	877	16 provided to the Commission. The Agency may provide by rule
878	878	17 for fees associated with supplying the information to
879	879	18 utilities and other interested parties. These parties
880	880	19 shall, within 5 business days, notify the Agency in
881	881	20 writing if they object to any experts or expert consulting
882	882	21 firms on the lists. Objections shall be based on:
883	883	22 (A) failure to satisfy qualification criteria;
884	884	23 (B) identification of a conflict of interest; or
885	885	24 (C) evidence of inappropriate bias for or against
886	886	25 potential bidders or the affected utilities.
887	887	26 The Agency shall remove experts or expert consulting
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898	898	1 firms from the lists within 10 days if there is a
899	899	2 reasonable basis for an objection and provide the updated
900	900	3 lists to the affected utilities and other interested
901	901	4 parties. If the Agency fails to remove an expert or expert
902	902	5 consulting firm from a list, an objecting party may seek
903	903	6 review by the Commission within 5 days thereafter by
904	904	7 filing a petition, and the Commission shall render a
905	905	8 ruling on the petition within 10 days. There is no right of
906	906	9 appeal of the Commission's ruling.
907	907	10 (4) The Agency shall issue requests for proposals to
908	908	11 the qualified experts or expert consulting firms to
909	909	12 develop a procurement plan for the affected utilities and
910	910	13 to serve as procurement administrator.
911	911	14 (5) The Agency shall select an expert or expert
912	912	15 consulting firm to develop procurement plans based on the
913	913	16 proposals submitted and shall award contracts of up to 5
914	914	17 years to those selected.
915	915	18 (6) The Agency shall select an expert or expert
916	916	19 consulting firm, with approval of the Commission, to serve
917	917	20 as procurement administrator based on the proposals
918	918	21 submitted. If the Commission rejects, within 5 days, the
919	919	22 Agency's selection, the Agency shall submit another
920	920	23 recommendation within 3 days based on the proposals
921	921	24 submitted. The Agency shall award a 5-year contract to the
922	922	25 expert or expert consulting firm so selected with
923	923	26 Commission approval.
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934	934	1 (b) The experts or expert consulting firms retained by the
935	935	2 Agency shall, as appropriate, prepare procurement plans, and
936	936	3 conduct a competitive procurement process as prescribed in
937	937	4 Section 16-111.5 of the Public Utilities Act, to ensure
938	938	5 adequate, reliable, affordable, efficient, and environmentally
939	939	6 sustainable electric service at the lowest total cost over
940	940	7 time, taking into account any benefits of price stability, for
941	941	8 eligible retail customers of electric utilities that on
942	942	9 December 31, 2005 provided electric service to at least
943	943	10 100,000 customers in the State of Illinois, and for eligible
944	944	11 Illinois retail customers of small multi-jurisdictional
945	945	12 electric utilities that (i) on December 31, 2005 served less
946	946	13 than 100,000 customers in Illinois and (ii) request a
947	947	14 procurement plan for their Illinois jurisdictional load.
948	948	15 (c) Renewable portfolio standard.
949	949	16 (1)(A) The Agency shall develop a long-term renewable
950	950	17 resources procurement plan that shall include procurement
951	951	18 programs and competitive procurement events necessary to
952	952	19 meet the goals set forth in this subsection (c). The
953	953	20 initial long-term renewable resources procurement plan
954	954	21 shall be released for comment no later than 160 days after
955	955	22 June 1, 2017 (the effective date of Public Act 99-906).
956	956	23 The Agency shall review, and may revise on an expedited
957	957	24 basis, the long-term renewable resources procurement plan
958	958	25 at least every 2 years, which shall be conducted in
959	959	26 conjunction with the procurement plan under Section
960	960
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970	970	1 16-111.5 of the Public Utilities Act to the extent
971	971	2 practicable to minimize administrative expense. No later
972	972	3 than 120 days after the effective date of this amendatory
973	973	4 Act of the 102nd General Assembly, the Agency shall
974	974	5 release for comment a revision to the long-term renewable
975	975	6 resources procurement plan, updating elements of the most
976	976	7 recently approved plan as needed to comply with this
977	977	8 amendatory Act of the 102nd General Assembly, and any
978	978	9 long-term renewable resources procurement plan update
979	979	10 published by the Agency but not yet approved by the
980	980	11 Illinois Commerce Commission shall be withdrawn. The
981	981	12 long-term renewable resources procurement plans shall be
982	982	13 subject to review and approval by the Commission under
983	983	14 Section 16-111.5 of the Public Utilities Act.
984	984	15 (B) Subject to subparagraph (F) of this paragraph (1),
985	985	16 the long-term renewable resources procurement plan shall
986	986	17 attempt to meet the goals for procurement of renewable
987	987	18 energy credits at levels of at least the following overall
988	988	19 percentages: 13% by the 2017 delivery year; increasing by
989	989	20 at least 1.5% each delivery year thereafter to at least
990	990	21 25% by the 2025 delivery year; increasing by at least 3%
991	991	22 each delivery year thereafter to at least 40% by the 2030
992	992	23 delivery year, and continuing at no less than 40% for each
993	993	24 delivery year thereafter. The Agency shall attempt to
994	994	25 procure 50% by delivery year 2040. The Agency shall
995	995	26 determine the annual increase between delivery year 2030
996	996
997	997
998	998
999	999
1000	1000
1001	1001	HB2205 - 27 - LRB103 28438 AMQ 54818 b
1002	1002
1003	1003
1004	1004	HB2205- 28 -LRB103 28438 AMQ 54818 b HB2205 - 28 - LRB103 28438 AMQ 54818 b
1005	1005	HB2205 - 28 - LRB103 28438 AMQ 54818 b
1006	1006	1 and delivery year 2040, if any, taking into account energy
1007	1007	2 demand, other energy resources, and other public policy
1008	1008	3 goals. In the event of a conflict between these goals and
1009	1009	4 the new wind and new photovoltaic procurement requirements
1010	1010	5 described in items (i) through (iii) of subparagraph (C)
1011	1011	6 of this paragraph (1), the long-term plan shall prioritize
1012	1012	7 compliance with the new wind and new photovoltaic
1013	1013	8 procurement requirements described in items (i) through
1014	1014	9 (iii) of subparagraph (C) of this paragraph (1) over the
1015	1015	10 annual percentage targets described in this subparagraph
1016	1016	11 (B). The Agency shall not comply with the annual
1017	1017	12 percentage targets described in this subparagraph (B) by
1018	1018	13 procuring renewable energy credits that are unlikely to
1019	1019	14 lead to the development of new renewable resources.
1020	1020	15 For the delivery year beginning June 1, 2017, the
1021	1021	16 procurement plan shall attempt to include, subject to the
1022	1022	17 prioritization outlined in this subparagraph (B),
1023	1023	18 cost-effective renewable energy resources equal to at
1024	1024	19 least 13% of each utility's load for eligible retail
1025	1025	20 customers and 13% of the applicable portion of each
1026	1026	21 utility's load for retail customers who are not eligible
1027	1027	22 retail customers, which applicable portion shall equal 50%
1028	1028	23 of the utility's load for retail customers who are not
1029	1029	24 eligible retail customers on February 28, 2017.
1030	1030	25 For the delivery year beginning June 1, 2018, the
1031	1031	26 procurement plan shall attempt to include, subject to the
1032	1032
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037	HB2205 - 28 - LRB103 28438 AMQ 54818 b
1038	1038
1039	1039
1040	1040	HB2205- 29 -LRB103 28438 AMQ 54818 b HB2205 - 29 - LRB103 28438 AMQ 54818 b
1041	1041	HB2205 - 29 - LRB103 28438 AMQ 54818 b
1042	1042	1 prioritization outlined in this subparagraph (B),
1043	1043	2 cost-effective renewable energy resources equal to at
1044	1044	3 least 14.5% of each utility's load for eligible retail
1045	1045	4 customers and 14.5% of the applicable portion of each
1046	1046	5 utility's load for retail customers who are not eligible
1047	1047	6 retail customers, which applicable portion shall equal 75%
1048	1048	7 of the utility's load for retail customers who are not
1049	1049	8 eligible retail customers on February 28, 2017.
1050	1050	9 For the delivery year beginning June 1, 2019, and for
1051	1051	10 each year thereafter, the procurement plans shall attempt
1052	1052	11 to include, subject to the prioritization outlined in this
1053	1053	12 subparagraph (B), cost-effective renewable energy
1054	1054	13 resources equal to a minimum percentage of each utility's
1055	1055	14 load for all retail customers as follows: 16% by June 1,
1056	1056	15 2019; increasing by 1.5% each year thereafter to 25% by
1057	1057	16 June 1, 2025; and 25% by June 1, 2026; increasing by at
1058	1058	17 least 3% each delivery year thereafter to at least 40% by
1059	1059	18 the 2030 delivery year, and continuing at no less than 40%
1060	1060	19 for each delivery year thereafter. The Agency shall
1061	1061	20 attempt to procure 50% by delivery year 2040. The Agency
1062	1062	21 shall determine the annual increase between delivery year
1063	1063	22 2030 and delivery year 2040, if any, taking into account
1064	1064	23 energy demand, other energy resources, and other public
1065	1065	24 policy goals.
1066	1066	25 For each delivery year, the Agency shall first
1067	1067	26 recognize each utility's obligations for that delivery
1068	1068
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073	HB2205 - 29 - LRB103 28438 AMQ 54818 b
1074	1074
1075	1075
1076	1076	HB2205- 30 -LRB103 28438 AMQ 54818 b HB2205 - 30 - LRB103 28438 AMQ 54818 b
1077	1077	HB2205 - 30 - LRB103 28438 AMQ 54818 b
1078	1078	1 year under existing contracts. Any renewable energy
1079	1079	2 credits under existing contracts, including renewable
1080	1080	3 energy credits as part of renewable energy resources,
1081	1081	4 shall be used to meet the goals set forth in this
1082	1082	5 subsection (c) for the delivery year.
1083	1083	6 (C) The long-term renewable resources procurement plan
1084	1084	7 described in subparagraph (A) of this paragraph (1) shall
1085	1085	8 include the procurement of renewable energy credits from
1086	1086	9 new projects in amounts equal to at least the following:
1087	1087	10 (i) 10,000,000 renewable energy credits delivered
1088	1088	11 annually by the end of the 2021 delivery year, and
1089	1089	12 increasing ratably to reach 45,000,000 renewable
1090	1090	13 energy credits delivered annually from new wind and
1091	1091	14 solar projects by the end of delivery year 2030 such
1092	1092	15 that the goals in subparagraph (B) of this paragraph
1093	1093	16 (1) are met entirely by procurements of renewable
1094	1094	17 energy credits from new wind and photovoltaic
1095	1095	18 projects. Of that amount, to the extent possible, the
1096	1096	19 Agency shall procure 45% from wind projects and 55%
1097	1097	20 from photovoltaic projects. Of the amount to be
1098	1098	21 procured from photovoltaic projects, the Agency shall
1099	1099	22 procure: at least 50% from solar photovoltaic projects
1100	1100	23 using the program outlined in subparagraph (K) of this
1101	1101	24 paragraph (1) from distributed renewable energy
1102	1102	25 generation devices or community renewable generation
1103	1103	26 projects; at least 44% 47% from utility-scale solar
1104	1104
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109	HB2205 - 30 - LRB103 28438 AMQ 54818 b
1110	1110
1111	1111
1112	1112	HB2205- 31 -LRB103 28438 AMQ 54818 b HB2205 - 31 - LRB103 28438 AMQ 54818 b
1113	1113	HB2205 - 31 - LRB103 28438 AMQ 54818 b
1114	1114	1 projects; at least 3% from projects that meet the
1115	1115	2 criteria in paragraph (3) of the definition of
1116	1116	3 "brownfield site photovoltaic project" in Section
1117	1117	4 1-10; and the remaining percentage from other
1118	1118	5 brownfield site photovoltaic projects that are not
1119	1119	6 community renewable generation projects.
1120	1120	7 In developing the long-term renewable resources
1121	1121	8 procurement plan, the Agency shall consider other
1122	1122	9 approaches, in addition to competitive procurements,
1123	1123	10 that can be used to procure renewable energy credits
1124	1124	11 from brownfield site photovoltaic projects and thereby
1125	1125	12 help return blighted or contaminated land to
1126	1126	13 productive use while enhancing public health and the
1127	1127	14 well-being of Illinois residents, including those in
1128	1128	15 environmental justice communities, as defined using
1129	1129	16 existing methodologies and findings used by the Agency
1130	1130	17 and its Administrator in its Illinois Solar for All
1131	1131	18 Program.
1132	1132	19 (ii) In any given delivery year, if forecasted
1133	1133	20 expenses are less than the maximum budget available
1134	1134	21 under subparagraph (E) of this paragraph (1), the
1135	1135	22 Agency shall continue to procure new renewable energy
1136	1136	23 credits until that budget is exhausted in the manner
1137	1137	24 outlined in item (i) of this subparagraph (C).
1138	1138	25 (iii) For purposes of this Section:
1139	1139	26 "New wind projects" means wind renewable energy
1140	1140
1141	1141
1142	1142
1143	1143
1144	1144
1145	1145	HB2205 - 31 - LRB103 28438 AMQ 54818 b
1146	1146
1147	1147
1148	1148	HB2205- 32 -LRB103 28438 AMQ 54818 b HB2205 - 32 - LRB103 28438 AMQ 54818 b
1149	1149	HB2205 - 32 - LRB103 28438 AMQ 54818 b
1150	1150	1 facilities that are energized after June 1, 2017 for
1151	1151	2 the delivery year commencing June 1, 2017.
1152	1152	3 "New photovoltaic projects" means photovoltaic
1153	1153	4 renewable energy facilities that are energized after
1154	1154	5 June 1, 2017. Photovoltaic projects developed under
1155	1155	6 Section 1-56 of this Act shall not apply towards the
1156	1156	7 new photovoltaic project requirements in this
1157	1157	8 subparagraph (C).
1158	1158	9 For purposes of calculating whether the Agency has
1159	1159	10 procured enough new wind and solar renewable energy
1160	1160	11 credits required by this subparagraph (C), renewable
1161	1161	12 energy facilities that have a multi-year renewable
1162	1162	13 energy credit delivery contract with the utility
1163	1163	14 through at least delivery year 2030 shall be
1164	1164	15 considered new, however no renewable energy credits
1165	1165	16 from contracts entered into before June 1, 2021 shall
1166	1166	17 be used to calculate whether the Agency has procured
1167	1167	18 the correct proportion of new wind and new solar
1168	1168	19 contracts described in this subparagraph (C) for
1169	1169	20 delivery year 2021 and thereafter.
1170	1170	21 (D) Renewable energy credits shall be cost effective.
1171	1171	22 For purposes of this subsection (c), "cost effective"
1172	1172	23 means that the costs of procuring renewable energy
1173	1173	24 resources do not cause the limit stated in subparagraph
1174	1174	25 (E) of this paragraph (1) to be exceeded and, for
1175	1175	26 renewable energy credits procured through a competitive
1176	1176
1177	1177
1178	1178
1179	1179
1180	1180
1181	1181	HB2205 - 32 - LRB103 28438 AMQ 54818 b
1182	1182
1183	1183
1184	1184	HB2205- 33 -LRB103 28438 AMQ 54818 b HB2205 - 33 - LRB103 28438 AMQ 54818 b
1185	1185	HB2205 - 33 - LRB103 28438 AMQ 54818 b
1186	1186	1 procurement event, do not exceed benchmarks based on
1187	1187	2 market prices for like products in the region. For
1188	1188	3 purposes of this subsection (c), "like products" means
1189	1189	4 contracts for renewable energy credits from the same or
1190	1190	5 substantially similar technology, same or substantially
1191	1191	6 similar vintage (new or existing), the same or
1192	1192	7 substantially similar quantity, and the same or
1193	1193	8 substantially similar contract length and structure.
1194	1194	9 Benchmarks shall reflect development, financing, or
1195	1195	10 related costs resulting from requirements imposed through
1196	1196	11 other provisions of State law, including, but not limited
1197	1197	12 to, requirements in subparagraphs (P) and (Q) of this
1198	1198	13 paragraph (1) and the Renewable Energy Facilities
1199	1199	14 Agricultural Impact Mitigation Act. Confidential
1200	1200	15 benchmarks shall be developed by the procurement
1201	1201	16 administrator, in consultation with the Commission staff,
1202	1202	17 Agency staff, and the procurement monitor and shall be
1203	1203	18 subject to Commission review and approval. If price
1204	1204	19 benchmarks for like products in the region are not
1205	1205	20 available, the procurement administrator shall establish
1206	1206	21 price benchmarks based on publicly available data on
1207	1207	22 regional technology costs and expected current and future
1208	1208	23 regional energy prices. The benchmarks in this Section
1209	1209	24 shall not be used to curtail or otherwise reduce
1210	1210	25 contractual obligations entered into by or through the
1211	1211	26 Agency prior to June 1, 2017 (the effective date of Public
1212	1212
1213	1213
1214	1214
1215	1215
1216	1216
1217	1217	HB2205 - 33 - LRB103 28438 AMQ 54818 b
1218	1218
1219	1219
1220	1220	HB2205- 34 -LRB103 28438 AMQ 54818 b HB2205 - 34 - LRB103 28438 AMQ 54818 b
1221	1221	HB2205 - 34 - LRB103 28438 AMQ 54818 b
1222	1222	1 Act 99-906).
1223	1223	2 (E) For purposes of this subsection (c), the required
1224	1224	3 procurement of cost-effective renewable energy resources
1225	1225	4 for a particular year commencing prior to June 1, 2017
1226	1226	5 shall be measured as a percentage of the actual amount of
1227	1227	6 electricity (megawatt-hours) supplied by the electric
1228	1228	7 utility to eligible retail customers in the delivery year
1229	1229	8 ending immediately prior to the procurement, and, for
1230	1230	9 delivery years commencing on and after June 1, 2017, the
1231	1231	10 required procurement of cost-effective renewable energy
1232	1232	11 resources for a particular year shall be measured as a
1233	1233	12 percentage of the actual amount of electricity
1234	1234	13 (megawatt-hours) delivered by the electric utility in the
1235	1235	14 delivery year ending immediately prior to the procurement,
1236	1236	15 to all retail customers in its service territory. For
1237	1237	16 purposes of this subsection (c), the amount paid per
1238	1238	17 kilowatthour means the total amount paid for electric
1239	1239	18 service expressed on a per kilowatthour basis. For
1240	1240	19 purposes of this subsection (c), the total amount paid for
1241	1241	20 electric service includes without limitation amounts paid
1242	1242	21 for supply, transmission, capacity, distribution,
1243	1243	22 surcharges, and add-on taxes.
1244	1244	23 Notwithstanding the requirements of this subsection
1245	1245	24 (c), the total of renewable energy resources procured
1246	1246	25 under the procurement plan for any single year shall be
1247	1247	26 subject to the limitations of this subparagraph (E). Such
1248	1248
1249	1249
1250	1250
1251	1251
1252	1252
1253	1253	HB2205 - 34 - LRB103 28438 AMQ 54818 b
1254	1254
1255	1255
1256	1256	HB2205- 35 -LRB103 28438 AMQ 54818 b HB2205 - 35 - LRB103 28438 AMQ 54818 b
1257	1257	HB2205 - 35 - LRB103 28438 AMQ 54818 b
1258	1258	1 procurement shall be reduced for all retail customers
1259	1259	2 based on the amount necessary to limit the annual
1260	1260	3 estimated average net increase due to the costs of these
1261	1261	4 resources included in the amounts paid by eligible retail
1262	1262	5 customers in connection with electric service to no more
1263	1263	6 than 4.25% of the amount paid per kilowatthour by those
1264	1264	7 customers during the year ending May 31, 2009. To arrive
1265	1265	8 at a maximum dollar amount of renewable energy resources
1266	1266	9 to be procured for the particular delivery year, the
1267	1267	10 resulting per kilowatthour amount shall be applied to the
1268	1268	11 actual amount of kilowatthours of electricity delivered,
1269	1269	12 or applicable portion of such amount as specified in
1270	1270	13 paragraph (1) of this subsection (c), as applicable, by
1271	1271	14 the electric utility in the delivery year immediately
1272	1272	15 prior to the procurement to all retail customers in its
1273	1273	16 service territory. The calculations required by this
1274	1274	17 subparagraph (E) shall be made only once for each delivery
1275	1275	18 year at the time that the renewable energy resources are
1276	1276	19 procured. Once the determination as to the amount of
1277	1277	20 renewable energy resources to procure is made based on the
1278	1278	21 calculations set forth in this subparagraph (E) and the
1279	1279	22 contracts procuring those amounts are executed, no
1280	1280	23 subsequent rate impact determinations shall be made and no
1281	1281	24 adjustments to those contract amounts shall be allowed.
1282	1282	25 All costs incurred under such contracts shall be fully
1283	1283	26 recoverable by the electric utility as provided in this
1284	1284
1285	1285
1286	1286
1287	1287
1288	1288
1289	1289	HB2205 - 35 - LRB103 28438 AMQ 54818 b
1290	1290
1291	1291
1292	1292	HB2205- 36 -LRB103 28438 AMQ 54818 b HB2205 - 36 - LRB103 28438 AMQ 54818 b
1293	1293	HB2205 - 36 - LRB103 28438 AMQ 54818 b
1294	1294	1 Section.
1295	1295	2 (F) If the limitation on the amount of renewable
1296	1296	3 energy resources procured in subparagraph (E) of this
1297	1297	4 paragraph (1) prevents the Agency from meeting all of the
1298	1298	5 goals in this subsection (c), the Agency's long-term plan
1299	1299	6 shall prioritize compliance with the requirements of this
1300	1300	7 subsection (c) regarding renewable energy credits in the
1301	1301	8 following order:
1302	1302	9 (i) renewable energy credits under existing
1303	1303	10 contractual obligations as of June 1, 2021;
1304	1304	11 (i-5) funding for the Illinois Solar for All
1305	1305	12 Program, as described in subparagraph (O) of this
1306	1306	13 paragraph (1);
1307	1307	14 (ii) renewable energy credits necessary to comply
1308	1308	15 with the new wind and new photovoltaic procurement
1309	1309	16 requirements described in items (i) through (iii) of
1310	1310	17 subparagraph (C) of this paragraph (1); and
1311	1311	18 (iii) renewable energy credits necessary to meet
1312	1312	19 the remaining requirements of this subsection (c).
1313	1313	20 (G) The following provisions shall apply to the
1314	1314	21 Agency's procurement of renewable energy credits under
1315	1315	22 this subsection (c):
1316	1316	23 (i) Notwithstanding whether a long-term renewable
1317	1317	24 resources procurement plan has been approved, the
1318	1318	25 Agency shall conduct an initial forward procurement
1319	1319	26 for renewable energy credits from new utility-scale
1320	1320
1321	1321
1322	1322
1323	1323
1324	1324
1325	1325	HB2205 - 36 - LRB103 28438 AMQ 54818 b
1326	1326
1327	1327
1328	1328	HB2205- 37 -LRB103 28438 AMQ 54818 b HB2205 - 37 - LRB103 28438 AMQ 54818 b
1329	1329	HB2205 - 37 - LRB103 28438 AMQ 54818 b
1330	1330	1 wind projects within 160 days after June 1, 2017 (the
1331	1331	2 effective date of Public Act 99-906). For the purposes
1332	1332	3 of this initial forward procurement, the Agency shall
1333	1333	4 solicit 15-year contracts for delivery of 1,000,000
1334	1334	5 renewable energy credits delivered annually from new
1335	1335	6 utility-scale wind projects to begin delivery on June
1336	1336	7 1, 2019, if available, but not later than June 1, 2021,
1337	1337	8 unless the project has delays in the establishment of
1338	1338	9 an operating interconnection with the applicable
1339	1339	10 transmission or distribution system as a result of the
1340	1340	11 actions or inactions of the transmission or
1341	1341	12 distribution provider, or other causes for force
1342	1342	13 majeure as outlined in the procurement contract, in
1343	1343	14 which case, not later than June 1, 2022. Payments to
1344	1344	15 suppliers of renewable energy credits shall commence
1345	1345	16 upon delivery. Renewable energy credits procured under
1346	1346	17 this initial procurement shall be included in the
1347	1347	18 Agency's long-term plan and shall apply to all
1348	1348	19 renewable energy goals in this subsection (c).
1349	1349	20 (ii) Notwithstanding whether a long-term renewable
1350	1350	21 resources procurement plan has been approved, the
1351	1351	22 Agency shall conduct an initial forward procurement
1352	1352	23 for renewable energy credits from new utility-scale
1353	1353	24 solar projects and brownfield site photovoltaic
1354	1354	25 projects within one year after June 1, 2017 (the
1355	1355	26 effective date of Public Act 99-906). For the purposes
1356	1356
1357	1357
1358	1358
1359	1359
1360	1360
1361	1361	HB2205 - 37 - LRB103 28438 AMQ 54818 b
1362	1362
1363	1363
1364	1364	HB2205- 38 -LRB103 28438 AMQ 54818 b HB2205 - 38 - LRB103 28438 AMQ 54818 b
1365	1365	HB2205 - 38 - LRB103 28438 AMQ 54818 b
1366	1366	1 of this initial forward procurement, the Agency shall
1367	1367	2 solicit 15-year contracts for delivery of 1,000,000
1368	1368	3 renewable energy credits delivered annually from new
1369	1369	4 utility-scale solar projects and brownfield site
1370	1370	5 photovoltaic projects to begin delivery on June 1,
1371	1371	6 2019, if available, but not later than June 1, 2021,
1372	1372	7 unless the project has delays in the establishment of
1373	1373	8 an operating interconnection with the applicable
1374	1374	9 transmission or distribution system as a result of the
1375	1375	10 actions or inactions of the transmission or
1376	1376	11 distribution provider, or other causes for force
1377	1377	12 majeure as outlined in the procurement contract, in
1378	1378	13 which case, not later than June 1, 2022. The Agency may
1379	1379	14 structure this initial procurement in one or more
1380	1380	15 discrete procurement events. Payments to suppliers of
1381	1381	16 renewable energy credits shall commence upon delivery.
1382	1382	17 Renewable energy credits procured under this initial
1383	1383	18 procurement shall be included in the Agency's
1384	1384	19 long-term plan and shall apply to all renewable energy
1385	1385	20 goals in this subsection (c).
1386	1386	21 (iii) Notwithstanding whether the Commission has
1387	1387	22 approved the periodic long-term renewable resources
1388	1388	23 procurement plan revision described in Section
1389	1389	24 16-111.5 of the Public Utilities Act, the Agency shall
1390	1390	25 conduct at least one subsequent forward procurement
1391	1391	26 for renewable energy credits from new utility-scale
1392	1392
1393	1393
1394	1394
1395	1395
1396	1396
1397	1397	HB2205 - 38 - LRB103 28438 AMQ 54818 b
1398	1398
1399	1399
1400	1400	HB2205- 39 -LRB103 28438 AMQ 54818 b HB2205 - 39 - LRB103 28438 AMQ 54818 b
1401	1401	HB2205 - 39 - LRB103 28438 AMQ 54818 b
1402	1402	1 wind projects, new utility-scale solar projects, and
1403	1403	2 new brownfield site photovoltaic projects within 240
1404	1404	3 days after the effective date of this amendatory Act
1405	1405	4 of the 102nd General Assembly in quantities necessary
1406	1406	5 to meet the requirements of subparagraph (C) of this
1407	1407	6 paragraph (1) through the delivery year beginning June
1408	1408	7 1, 2021.
1409	1409	8 (iv) Notwithstanding whether the Commission has
1410	1410	9 approved the periodic long-term renewable resources
1411	1411	10 procurement plan revision described in Section
1412	1412	11 16-111.5 of the Public Utilities Act, the Agency shall
1413	1413	12 open capacity for each category in the Adjustable
1414	1414	13 Block program within 90 days after the effective date
1415	1415	14 of this amendatory Act of the 102nd General Assembly
1416	1416	15 manner:
1417	1417	16 (1) The Agency shall open the first block of
1418	1418	17 annual capacity for the category described in item
1419	1419	18 (i) of subparagraph (K) of this paragraph (1). The
1420	1420	19 first block of annual capacity for item (i) shall
1421	1421	20 be for at least 75 megawatts of total nameplate
1422	1422	21 capacity. The price of the renewable energy credit
1423	1423	22 for this block of capacity shall be 4% less than
1424	1424	23 the price of the last open block in this category.
1425	1425	24 Projects on a waitlist shall be awarded contracts
1426	1426	25 first in the order in which they appear on the
1427	1427	26 waitlist. Notwithstanding anything to the
1428	1428
1429	1429
1430	1430
1431	1431
1432	1432
1433	1433	HB2205 - 39 - LRB103 28438 AMQ 54818 b
1434	1434
1435	1435
1436	1436	HB2205- 40 -LRB103 28438 AMQ 54818 b HB2205 - 40 - LRB103 28438 AMQ 54818 b
1437	1437	HB2205 - 40 - LRB103 28438 AMQ 54818 b
1438	1438	1 contrary, for those renewable energy credits that
1439	1439	2 qualify and are procured under this subitem (1) of
1440	1440	3 this item (iv), the renewable energy credit
1441	1441	4 delivery contract value shall be paid in full,
1442	1442	5 based on the estimated generation during the first
1443	1443	6 15 years of operation, by the contracting
1444	1444	7 utilities at the time that the facility producing
1445	1445	8 the renewable energy credits is interconnected at
1446	1446	9 the distribution system level of the utility and
1447	1447	10 verified as energized and in compliance by the
1448	1448	11 Program Administrator. The electric utility shall
1449	1449	12 receive and retire all renewable energy credits
1450	1450	13 generated by the project for the first 15 years of
1451	1451	14 operation. Renewable energy credits generated by
1452	1452	15 the project thereafter shall not be transferred
1453	1453	16 under the renewable energy credit delivery
1454	1454	17 contract with the counterparty electric utility.
1455	1455	18 (2) The Agency shall open the first block of
1456	1456	19 annual capacity for the category described in item
1457	1457	20 (ii) of subparagraph (K) of this paragraph (1).
1458	1458	21 The first block of annual capacity for item (ii)
1459	1459	22 shall be for at least 75 megawatts of total
1460	1460	23 nameplate capacity.
1461	1461	24 (A) The price of the renewable energy
1462	1462	25 credit for any project on a waitlist for this
1463	1463	26 category before the opening of this block
1464	1464
1465	1465
1466	1466
1467	1467
1468	1468
1469	1469	HB2205 - 40 - LRB103 28438 AMQ 54818 b
1470	1470
1471	1471
1472	1472	HB2205- 41 -LRB103 28438 AMQ 54818 b HB2205 - 41 - LRB103 28438 AMQ 54818 b
1473	1473	HB2205 - 41 - LRB103 28438 AMQ 54818 b
1474	1474	1 shall be 4% less than the price of the last
1475	1475	2 open block in this category. Projects on the
1476	1476	3 waitlist shall be awarded contracts first in
1477	1477	4 the order in which they appear on the
1478	1478	5 waitlist. Any projects that are less than or
1479	1479	6 equal to 25 kilowatts in size on the waitlist
1480	1480	7 for this capacity shall be moved to the
1481	1481	8 waitlist for paragraph (1) of this item (iv).
1482	1482	9 Notwithstanding anything to the contrary,
1483	1483	10 projects that were on the waitlist prior to
1484	1484	11 opening of this block shall not be required to
1485	1485	12 be in compliance with the requirements of
1486	1486	13 subparagraph (Q) of this paragraph (1) of this
1487	1487	14 subsection (c). Notwithstanding anything to
1488	1488	15 the contrary, for those renewable energy
1489	1489	16 credits procured from projects that were on
1490	1490	17 the waitlist for this category before the
1491	1491	18 opening of this block 20% of the renewable
1492	1492	19 energy credit delivery contract value, based
1493	1493	20 on the estimated generation during the first
1494	1494	21 15 years of operation, shall be paid by the
1495	1495	22 contracting utilities at the time that the
1496	1496	23 facility producing the renewable energy
1497	1497	24 credits is interconnected at the distribution
1498	1498	25 system level of the utility and verified as
1499	1499	26 energized by the Program Administrator. The
1500	1500
1501	1501
1502	1502
1503	1503
1504	1504
1505	1505	HB2205 - 41 - LRB103 28438 AMQ 54818 b
1506	1506
1507	1507
1508	1508	HB2205- 42 -LRB103 28438 AMQ 54818 b HB2205 - 42 - LRB103 28438 AMQ 54818 b
1509	1509	HB2205 - 42 - LRB103 28438 AMQ 54818 b
1510	1510	1 remaining portion shall be paid ratably over
1511	1511	2 the subsequent 4-year period. The electric
1512	1512	3 utility shall receive and retire all renewable
1513	1513	4 energy credits generated by the project during
1514	1514	5 the first 15 years of operation. Renewable
1515	1515	6 energy credits generated by the project
1516	1516	7 thereafter shall not be transferred under the
1517	1517	8 renewable energy credit delivery contract with
1518	1518	9 the counterparty electric utility.
1519	1519	10 (B) The price of renewable energy credits
1520	1520	11 for any project not on the waitlist for this
1521	1521	12 category before the opening of the block shall
1522	1522	13 be determined and published by the Agency.
1523	1523	14 Projects not on a waitlist as of the opening
1524	1524	15 of this block shall be subject to the
1525	1525	16 requirements of subparagraph (Q) of this
1526	1526	17 paragraph (1), as applicable. Projects not on
1527	1527	18 a waitlist as of the opening of this block
1528	1528	19 shall be subject to the contract provisions
1529	1529	20 outlined in item (iii) of subparagraph (L) of
1530	1530	21 this paragraph (1). The Agency shall strive to
1531	1531	22 publish updated prices and an updated
1532	1532	23 renewable energy credit delivery contract as
1533	1533	24 quickly as possible.
1534	1534	25 (3) For opening the first 2 blocks of annual
1535	1535	26 capacity for projects participating in item (iii)
1536	1536
1537	1537
1538	1538
1539	1539
1540	1540
1541	1541	HB2205 - 42 - LRB103 28438 AMQ 54818 b
1542	1542
1543	1543
1544	1544	HB2205- 43 -LRB103 28438 AMQ 54818 b HB2205 - 43 - LRB103 28438 AMQ 54818 b
1545	1545	HB2205 - 43 - LRB103 28438 AMQ 54818 b
1546	1546	1 of subparagraph (K) of paragraph (1) of subsection
1547	1547	2 (c), projects shall be selected exclusively from
1548	1548	3 those projects on the ordinal waitlists of
1549	1549	4 community renewable generation projects
1550	1550	5 established by the Agency based on the status of
1551	1551	6 those ordinal waitlists as of December 31, 2020,
1552	1552	7 and only those projects previously determined to
1553	1553	8 be eligible for the Agency's April 2019 community
1554	1554	9 solar project selection process.
1555	1555	10 The first 2 blocks of annual capacity for item
1556	1556	11 (iii) shall be for 250 megawatts of total
1557	1557	12 nameplate capacity, with both blocks opening
1558	1558	13 simultaneously under the schedule outlined in the
1559	1559	14 paragraphs below. Projects shall be selected as
1560	1560	15 follows:
1561	1561	16 (A) The geographic balance of selected
1562	1562	17 projects shall follow the Group classification
1563	1563	18 found in the Agency's Revised Long-Term
1564	1564	19 Renewable Resources Procurement Plan, with 70%
1565	1565	20 of capacity allocated to projects on the Group
1566	1566	21 B waitlist and 30% of capacity allocated to
1567	1567	22 projects on the Group A waitlist.
1568	1568	23 (B) Contract awards for waitlisted
1569	1569	24 projects shall be allocated proportionate to
1570	1570	25 the total nameplate capacity amount across
1571	1571	26 both ordinal waitlists associated with that
1572	1572
1573	1573
1574	1574
1575	1575
1576	1576
1577	1577	HB2205 - 43 - LRB103 28438 AMQ 54818 b
1578	1578
1579	1579
1580	1580	HB2205- 44 -LRB103 28438 AMQ 54818 b HB2205 - 44 - LRB103 28438 AMQ 54818 b
1581	1581	HB2205 - 44 - LRB103 28438 AMQ 54818 b
1582	1582	1 applicant firm or its affiliates, subject to
1583	1583	2 the following conditions.
1584	1584	3 (i) Each applicant firm having a
1585	1585	4 waitlisted project eligible for selection
1586	1586	5 shall receive no less than 500 kilowatts
1587	1587	6 in awarded capacity across all groups, and
1588	1588	7 no approved vendor may receive more than
1589	1589	8 20% of each Group's waitlist allocation.
1590	1590	9 (ii) Each applicant firm, upon
1591	1591	10 receiving an award of program capacity
1592	1592	11 proportionate to its waitlisted capacity,
1593	1593	12 may then determine which waitlisted
1594	1594	13 projects it chooses to be selected for a
1595	1595	14 contract award up to that capacity amount.
1596	1596	15 (iii) Assuming all other program
1597	1597	16 requirements are met, applicant firms may
1598	1598	17 adjust the nameplate capacity of applicant
1599	1599	18 projects without losing waitlist
1600	1600	19 eligibility, so long as no project is
1601	1601	20 greater than 2,000 kilowatts in size.
1602	1602	21 (iv) Assuming all other program
1603	1603	22 requirements are met, applicant firms may
1604	1604	23 adjust the expected production associated
1605	1605	24 with applicant projects, subject to
1606	1606	25 verification by the Program Administrator.
1607	1607	26 (C) After a review of affiliate
1608	1608
1609	1609
1610	1610
1611	1611
1612	1612
1613	1613	HB2205 - 44 - LRB103 28438 AMQ 54818 b
1614	1614
1615	1615
1616	1616	HB2205- 45 -LRB103 28438 AMQ 54818 b HB2205 - 45 - LRB103 28438 AMQ 54818 b
1617	1617	HB2205 - 45 - LRB103 28438 AMQ 54818 b
1618	1618	1 information and the current ordinal waitlists,
1619	1619	2 the Agency shall announce the nameplate
1620	1620	3 capacity award amounts associated with
1621	1621	4 applicant firms no later than 90 days after
1622	1622	5 the effective date of this amendatory Act of
1623	1623	6 the 102nd General Assembly.
1624	1624	7 (D) Applicant firms shall submit their
1625	1625	8 portfolio of projects used to satisfy those
1626	1626	9 contract awards no less than 90 days after the
1627	1627	10 Agency's announcement. The total nameplate
1628	1628	11 capacity of all projects used to satisfy that
1629	1629	12 portfolio shall be no greater than the
1630	1630	13 Agency's nameplate capacity award amount
1631	1631	14 associated with that applicant firm. An
1632	1632	15 applicant firm may decline, in whole or in
1633	1633	16 part, its nameplate capacity award without
1634	1634	17 penalty, with such unmet capacity rolled over
1635	1635	18 to the next block opening for project
1636	1636	19 selection under item (iii) of subparagraph (K)
1637	1637	20 of this subsection (c). Any projects not
1638	1638	21 included in an applicant firm's portfolio may
1639	1639	22 reapply without prejudice upon the next block
1640	1640	23 reopening for project selection under item
1641	1641	24 (iii) of subparagraph (K) of this subsection
1642	1642	25 (c).
1643	1643	26 (E) The renewable energy credit delivery
1644	1644
1645	1645
1646	1646
1647	1647
1648	1648
1649	1649	HB2205 - 45 - LRB103 28438 AMQ 54818 b
1650	1650
1651	1651
1652	1652	HB2205- 46 -LRB103 28438 AMQ 54818 b HB2205 - 46 - LRB103 28438 AMQ 54818 b
1653	1653	HB2205 - 46 - LRB103 28438 AMQ 54818 b
1654	1654	1 contract shall be subject to the contract and
1655	1655	2 payment terms outlined in item (iv) of
1656	1656	3 subparagraph (L) of this subsection (c).
1657	1657	4 Contract instruments used for this
1658	1658	5 subparagraph shall contain the following
1659	1659	6 terms:
1660	1660	7 (i) Renewable energy credit prices
1661	1661	8 shall be fixed, without further adjustment
1662	1662	9 under any other provision of this Act or
1663	1663	10 for any other reason, at 10% lower than
1664	1664	11 prices applicable to the last open block
1665	1665	12 for this category, inclusive of any adders
1666	1666	13 available for achieving a minimum of 50%
1667	1667	14 of subscribers to the project's nameplate
1668	1668	15 capacity being residential or small
1669	1669	16 commercial customers with subscriptions of
1670	1670	17 below 25 kilowatts in size;
1671	1671	18 (ii) A requirement that a minimum of
1672	1672	19 50% of subscribers to the project's
1673	1673	20 nameplate capacity be residential or small
1674	1674	21 commercial customers with subscriptions of
1675	1675	22 below 25 kilowatts in size;
1676	1676	23 (iii) Permission for the ability of a
1677	1677	24 contract holder to substitute projects
1678	1678	25 with other waitlisted projects without
1679	1679	26 penalty should a project receive a
1680	1680
1681	1681
1682	1682
1683	1683
1684	1684
1685	1685	HB2205 - 46 - LRB103 28438 AMQ 54818 b
1686	1686
1687	1687
1688	1688	HB2205- 47 -LRB103 28438 AMQ 54818 b HB2205 - 47 - LRB103 28438 AMQ 54818 b
1689	1689	HB2205 - 47 - LRB103 28438 AMQ 54818 b
1690	1690	1 non-binding estimate of costs to construct
1691	1691	2 the interconnection facilities and any
1692	1692	3 required distribution upgrades associated
1693	1693	4 with that project of greater than 30 cents
1694	1694	5 per watt AC of that project's nameplate
1695	1695	6 capacity. In developing the applicable
1696	1696	7 contract instrument, the Agency may
1697	1697	8 consider whether other circumstances
1698	1698	9 outside of the control of the applicant
1699	1699	10 firm should also warrant project
1700	1700	11 substitution rights.
1701	1701	12 The Agency shall publish a finalized
1702	1702	13 updated renewable energy credit delivery
1703	1703	14 contract developed consistent with these terms
1704	1704	15 and conditions no less than 30 days before
1705	1705	16 applicant firms must submit their portfolio of
1706	1706	17 projects pursuant to item (D).
1707	1707	18 (F) To be eligible for an award, the
1708	1708	19 applicant firm shall certify that not less
1709	1709	20 than prevailing wage, as determined pursuant
1710	1710	21 to the Illinois Prevailing Wage Act, was or
1711	1711	22 will be paid to employees who are engaged in
1712	1712	23 construction activities associated with a
1713	1713	24 selected project.
1714	1714	25 (4) The Agency shall open the first block of
1715	1715	26 annual capacity for the category described in item
1716	1716
1717	1717
1718	1718
1719	1719
1720	1720
1721	1721	HB2205 - 47 - LRB103 28438 AMQ 54818 b
1722	1722
1723	1723
1724	1724	HB2205- 48 -LRB103 28438 AMQ 54818 b HB2205 - 48 - LRB103 28438 AMQ 54818 b
1725	1725	HB2205 - 48 - LRB103 28438 AMQ 54818 b
1726	1726	1 (iv) of subparagraph (K) of this paragraph (1).
1727	1727	2 The first block of annual capacity for item (iv)
1728	1728	3 shall be for at least 50 megawatts of total
1729	1729	4 nameplate capacity. Renewable energy credit prices
1730	1730	5 shall be fixed, without further adjustment under
1731	1731	6 any other provision of this Act or for any other
1732	1732	7 reason, at the price in the last open block in the
1733	1733	8 category described in item (ii) of subparagraph
1734	1734	9 (K) of this paragraph (1). Pricing for future
1735	1735	10 blocks of annual capacity for this category may be
1736	1736	11 adjusted in the Agency's second revision to its
1737	1737	12 Long-Term Renewable Resources Procurement Plan.
1738	1738	13 Projects in this category shall be subject to the
1739	1739	14 contract terms outlined in item (iv) of
1740	1740	15 subparagraph (L) of this paragraph (1).
1741	1741	16 (5) The Agency shall open the equivalent of 2
1742	1742	17 years of annual capacity for the category
1743	1743	18 described in item (v) of subparagraph (K) of this
1744	1744	19 paragraph (1). The first block of annual capacity
1745	1745	20 for item (v) shall be for at least 10 megawatts of
1746	1746	21 total nameplate capacity. Notwithstanding the
1747	1747	22 provisions of item (v) of subparagraph (K) of this
1748	1748	23 paragraph (1), for the purpose of this initial
1749	1749	24 block, the agency shall accept new project
1750	1750	25 applications intended to increase the diversity of
1751	1751	26 areas hosting community solar projects, the
1752	1752
1753	1753
1754	1754
1755	1755
1756	1756
1757	1757	HB2205 - 48 - LRB103 28438 AMQ 54818 b
1758	1758
1759	1759
1760	1760	HB2205- 49 -LRB103 28438 AMQ 54818 b HB2205 - 49 - LRB103 28438 AMQ 54818 b
1761	1761	HB2205 - 49 - LRB103 28438 AMQ 54818 b
1762	1762	1 business models of projects, and the size of
1763	1763	2 projects, as described by the Agency in its
1764	1764	3 long-term renewable resources procurement plan
1765	1765	4 that is approved as of the effective date of this
1766	1766	5 amendatory Act of the 102nd General Assembly.
1767	1767	6 Projects in this category shall be subject to the
1768	1768	7 contract terms outlined in item (iii) of
1769	1769	8 subsection (L) of this paragraph (1).
1770	1770	9 (6) The Agency shall open the first blocks of
1771	1771	10 annual capacity for the category described in item
1772	1772	11 (vi) of subparagraph (K) of this paragraph (1),
1773	1773	12 with allocations of capacity within the block
1774	1774	13 generally matching the historical share of block
1775	1775	14 capacity allocated between the category described
1776	1776	15 in items (i) and (ii) of subparagraph (K) of this
1777	1777	16 paragraph (1). The first two blocks of annual
1778	1778	17 capacity for item (vi) shall be for at least 75
1779	1779	18 megawatts of total nameplate capacity. The price
1780	1780	19 of renewable energy credits for the blocks of
1781	1781	20 capacity shall be 4% less than the price of the
1782	1782	21 last open blocks in the categories described in
1783	1783	22 items (i) and (ii) of subparagraph (K) of this
1784	1784	23 paragraph (1). Pricing for future blocks of annual
1785	1785	24 capacity for this category may be adjusted in the
1786	1786	25 Agency's second revision to its Long-Term
1787	1787	26 Renewable Resources Procurement Plan. Projects in
1788	1788
1789	1789
1790	1790
1791	1791
1792	1792
1793	1793	HB2205 - 49 - LRB103 28438 AMQ 54818 b
1794	1794
1795	1795
1796	1796	HB2205- 50 -LRB103 28438 AMQ 54818 b HB2205 - 50 - LRB103 28438 AMQ 54818 b
1797	1797	HB2205 - 50 - LRB103 28438 AMQ 54818 b
1798	1798	1 this category shall be subject to the applicable
1799	1799	2 contract terms outlined in items (ii) and (iii) of
1800	1800	3 subparagraph (L) of this paragraph (1).
1801	1801	4 (v) Upon the effective date of this amendatory Act
1802	1802	5 of the 102nd General Assembly, for all competitive
1803	1803	6 procurements and any procurements of renewable energy
1804	1804	7 credit from new utility-scale wind and new
1805	1805	8 utility-scale photovoltaic projects, the Agency shall
1806	1806	9 procure indexed renewable energy credits and direct
1807	1807	10 respondents to offer a strike price.
1808	1808	11 (1) The purchase price of the indexed
1809	1809	12 renewable energy credit payment shall be
1810	1810	13 calculated for each settlement period. That
1811	1811	14 payment, for any settlement period, shall be equal
1812	1812	15 to the difference resulting from subtracting the
1813	1813	16 strike price from the index price for that
1814	1814	17 settlement period. If this difference results in a
1815	1815	18 negative number, the indexed REC counterparty
1816	1816	19 shall owe the seller the absolute value multiplied
1817	1817	20 by the quantity of energy produced in the relevant
1818	1818	21 settlement period. If this difference results in a
1819	1819	22 positive number, the seller shall owe the indexed
1820	1820	23 REC counterparty this amount multiplied by the
1821	1821	24 quantity of energy produced in the relevant
1822	1822	25 settlement period.
1823	1823	26 (2) Parties shall cash settle every month,
1824	1824
1825	1825
1826	1826
1827	1827
1828	1828
1829	1829	HB2205 - 50 - LRB103 28438 AMQ 54818 b
1830	1830
1831	1831
1832	1832	HB2205- 51 -LRB103 28438 AMQ 54818 b HB2205 - 51 - LRB103 28438 AMQ 54818 b
1833	1833	HB2205 - 51 - LRB103 28438 AMQ 54818 b
1834	1834	1 summing up all settlements (both positive and
1835	1835	2 negative, if applicable) for the prior month.
1836	1836	3 (3) To ensure funding in the annual budget
1837	1837	4 established under subparagraph (E) for indexed
1838	1838	5 renewable energy credit procurements for each year
1839	1839	6 of the term of such contracts, which must have a
1840	1840	7 minimum tenure of 20 calendar years, the
1841	1841	8 procurement administrator, Agency, Commission
1842	1842	9 staff, and procurement monitor shall quantify the
1843	1843	10 annual cost of the contract by utilizing an
1844	1844	11 industry-standard, third-party forward price curve
1845	1845	12 for energy at the appropriate hub or load zone,
1846	1846	13 including the estimated magnitude and timing of
1847	1847	14 the price effects related to federal carbon
1848	1848	15 controls. Each forward price curve shall contain a
1849	1849	16 specific value of the forecasted market price of
1850	1850	17 electricity for each annual delivery year of the
1851	1851	18 contract. For procurement planning purposes, the
1852	1852	19 impact on the annual budget for the cost of
1853	1853	20 indexed renewable energy credits for each delivery
1854	1854	21 year shall be determined as the expected annual
1855	1855	22 contract expenditure for that year, equaling the
1856	1856	23 difference between (i) the sum across all relevant
1857	1857	24 contracts of the applicable strike price
1858	1858	25 multiplied by contract quantity and (ii) the sum
1859	1859	26 across all relevant contracts of the forward price
1860	1860
1861	1861
1862	1862
1863	1863
1864	1864
1865	1865	HB2205 - 51 - LRB103 28438 AMQ 54818 b
1866	1866
1867	1867
1868	1868	HB2205- 52 -LRB103 28438 AMQ 54818 b HB2205 - 52 - LRB103 28438 AMQ 54818 b
1869	1869	HB2205 - 52 - LRB103 28438 AMQ 54818 b
1870	1870	1 curve for the applicable load zone for that year
1871	1871	2 multiplied by contract quantity. The contracting
1872	1872	3 utility shall not assume an obligation in excess
1873	1873	4 of the estimated annual cost of the contracts for
1874	1874	5 indexed renewable energy credits. Forward curves
1875	1875	6 shall be revised on an annual basis as updated
1876	1876	7 forward price curves are released and filed with
1877	1877	8 the Commission in the proceeding approving the
1878	1878	9 Agency's most recent long-term renewable resources
1879	1879	10 procurement plan. If the expected contract spend
1880	1880	11 is higher or lower than the total quantity of
1881	1881	12 contracts multiplied by the forward price curve
1882	1882	13 value for that year, the forward price curve shall
1883	1883	14 be updated by the procurement administrator, in
1884	1884	15 consultation with the Agency, Commission staff,
1885	1885	16 and procurement monitors, using then-currently
1886	1886	17 available price forecast data and additional
1887	1887	18 budget dollars shall be obligated or reobligated
1888	1888	19 as appropriate.
1889	1889	20 (4) To ensure that indexed renewable energy
1890	1890	21 credit prices remain predictable and affordable,
1891	1891	22 the Agency may consider the institution of a price
1892	1892	23 collar on REC prices paid under indexed renewable
1893	1893	24 energy credit procurements establishing floor and
1894	1894	25 ceiling REC prices applicable to indexed REC
1895	1895	26 contract prices. Any price collars applicable to
1896	1896
1897	1897
1898	1898
1899	1899
1900	1900
1901	1901	HB2205 - 52 - LRB103 28438 AMQ 54818 b
1902	1902
1903	1903
1904	1904	HB2205- 53 -LRB103 28438 AMQ 54818 b HB2205 - 53 - LRB103 28438 AMQ 54818 b
1905	1905	HB2205 - 53 - LRB103 28438 AMQ 54818 b
1906	1906	1 indexed REC procurements shall be proposed by the
1907	1907	2 Agency through its long-term renewable resources
1908	1908	3 procurement plan.
1909	1909	4 (vi) All procurements under this subparagraph (G)
1910	1910	5 shall comply with the geographic requirements in
1911	1911	6 subparagraph (I) of this paragraph (1) and shall
1912	1912	7 follow the procurement processes and procedures
1913	1913	8 described in this Section and Section 16-111.5 of the
1914	1914	9 Public Utilities Act to the extent practicable, and
1915	1915	10 these processes and procedures may be expedited to
1916	1916	11 accommodate the schedule established by this
1917	1917	12 subparagraph (G).
1918	1918	13 (H) The procurement of renewable energy resources for
1919	1919	14 a given delivery year shall be reduced as described in
1920	1920	15 this subparagraph (H) if an alternative retail electric
1921	1921	16 supplier meets the requirements described in this
1922	1922	17 subparagraph (H).
1923	1923	18 (i) Within 45 days after June 1, 2017 (the
1924	1924	19 effective date of Public Act 99-906), an alternative
1925	1925	20 retail electric supplier or its successor shall submit
1926	1926	21 an informational filing to the Illinois Commerce
1927	1927	22 Commission certifying that, as of December 31, 2015,
1928	1928	23 the alternative retail electric supplier owned one or
1929	1929	24 more electric generating facilities that generates
1930	1930	25 renewable energy resources as defined in Section 1-10
1931	1931	26 of this Act, provided that such facilities are not
1932	1932
1933	1933
1934	1934
1935	1935
1936	1936
1937	1937	HB2205 - 53 - LRB103 28438 AMQ 54818 b
1938	1938
1939	1939
1940	1940	HB2205- 54 -LRB103 28438 AMQ 54818 b HB2205 - 54 - LRB103 28438 AMQ 54818 b
1941	1941	HB2205 - 54 - LRB103 28438 AMQ 54818 b
1942	1942	1 powered by wind or photovoltaics, and the facilities
1943	1943	2 generate one renewable energy credit for each
1944	1944	3 megawatthour of energy produced from the facility.
1945	1945	4 The informational filing shall identify each
1946	1946	5 facility that was eligible to satisfy the alternative
1947	1947	6 retail electric supplier's obligations under Section
1948	1948	7 16-115D of the Public Utilities Act as described in
1949	1949	8 this item (i).
1950	1950	9 (ii) For a given delivery year, the alternative
1951	1951	10 retail electric supplier may elect to supply its
1952	1952	11 retail customers with renewable energy credits from
1953	1953	12 the facility or facilities described in item (i) of
1954	1954	13 this subparagraph (H) that continue to be owned by the
1955	1955	14 alternative retail electric supplier.
1956	1956	15 (iii) The alternative retail electric supplier
1957	1957	16 shall notify the Agency and the applicable utility, no
1958	1958	17 later than February 28 of the year preceding the
1959	1959	18 applicable delivery year or 15 days after June 1, 2017
1960	1960	19 (the effective date of Public Act 99-906), whichever
1961	1961	20 is later, of its election under item (ii) of this
1962	1962	21 subparagraph (H) to supply renewable energy credits to
1963	1963	22 retail customers of the utility. Such election shall
1964	1964	23 identify the amount of renewable energy credits to be
1965	1965	24 supplied by the alternative retail electric supplier
1966	1966	25 to the utility's retail customers and the source of
1967	1967	26 the renewable energy credits identified in the
1968	1968
1969	1969
1970	1970
1971	1971
1972	1972
1973	1973	HB2205 - 54 - LRB103 28438 AMQ 54818 b
1974	1974
1975	1975
1976	1976	HB2205- 55 -LRB103 28438 AMQ 54818 b HB2205 - 55 - LRB103 28438 AMQ 54818 b
1977	1977	HB2205 - 55 - LRB103 28438 AMQ 54818 b
1978	1978	1 informational filing as described in item (i) of this
1979	1979	2 subparagraph (H), subject to the following
1980	1980	3 limitations:
1981	1981	4 For the delivery year beginning June 1, 2018,
1982	1982	5 the maximum amount of renewable energy credits to
1983	1983	6 be supplied by an alternative retail electric
1984	1984	7 supplier under this subparagraph (H) shall be 68%
1985	1985	8 multiplied by 25% multiplied by 14.5% multiplied
1986	1986	9 by the amount of metered electricity
1987	1987	10 (megawatt-hours) delivered by the alternative
1988	1988	11 retail electric supplier to Illinois retail
1989	1989	12 customers during the delivery year ending May 31,
1990	1990	13 2016.
1991	1991	14 For delivery years beginning June 1, 2019 and
1992	1992	15 each year thereafter, the maximum amount of
1993	1993	16 renewable energy credits to be supplied by an
1994	1994	17 alternative retail electric supplier under this
1995	1995	18 subparagraph (H) shall be 68% multiplied by 50%
1996	1996	19 multiplied by 16% multiplied by the amount of
1997	1997	20 metered electricity (megawatt-hours) delivered by
1998	1998	21 the alternative retail electric supplier to
1999	1999	22 Illinois retail customers during the delivery year
2000	2000	23 ending May 31, 2016, provided that the 16% value
2001	2001	24 shall increase by 1.5% each delivery year
2002	2002	25 thereafter to 25% by the delivery year beginning
2003	2003	26 June 1, 2025, and thereafter the 25% value shall
2004	2004
2005	2005
2006	2006
2007	2007
2008	2008
2009	2009	HB2205 - 55 - LRB103 28438 AMQ 54818 b
2010	2010
2011	2011
2012	2012	HB2205- 56 -LRB103 28438 AMQ 54818 b HB2205 - 56 - LRB103 28438 AMQ 54818 b
2013	2013	HB2205 - 56 - LRB103 28438 AMQ 54818 b
2014	2014	1 apply to each delivery year.
2015	2015	2 For each delivery year, the total amount of
2016	2016	3 renewable energy credits supplied by all alternative
2017	2017	4 retail electric suppliers under this subparagraph (H)
2018	2018	5 shall not exceed 9% of the Illinois target renewable
2019	2019	6 energy credit quantity. The Illinois target renewable
2020	2020	7 energy credit quantity for the delivery year beginning
2021	2021	8 June 1, 2018 is 14.5% multiplied by the total amount of
2022	2022	9 metered electricity (megawatt-hours) delivered in the
2023	2023	10 delivery year immediately preceding that delivery
2024	2024	11 year, provided that the 14.5% shall increase by 1.5%
2025	2025	12 each delivery year thereafter to 25% by the delivery
2026	2026	13 year beginning June 1, 2025, and thereafter the 25%
2027	2027	14 value shall apply to each delivery year.
2028	2028	15 If the requirements set forth in items (i) through
2029	2029	16 (iii) of this subparagraph (H) are met, the charges
2030	2030	17 that would otherwise be applicable to the retail
2031	2031	18 customers of the alternative retail electric supplier
2032	2032	19 under paragraph (6) of this subsection (c) for the
2033	2033	20 applicable delivery year shall be reduced by the ratio
2034	2034	21 of the quantity of renewable energy credits supplied
2035	2035	22 by the alternative retail electric supplier compared
2036	2036	23 to that supplier's target renewable energy credit
2037	2037	24 quantity. The supplier's target renewable energy
2038	2038	25 credit quantity for the delivery year beginning June
2039	2039	26 1, 2018 is 14.5% multiplied by the total amount of
2040	2040
2041	2041
2042	2042
2043	2043
2044	2044
2045	2045	HB2205 - 56 - LRB103 28438 AMQ 54818 b
2046	2046
2047	2047
2048	2048	HB2205- 57 -LRB103 28438 AMQ 54818 b HB2205 - 57 - LRB103 28438 AMQ 54818 b
2049	2049	HB2205 - 57 - LRB103 28438 AMQ 54818 b
2050	2050	1 metered electricity (megawatt-hours) delivered by the
2051	2051	2 alternative retail supplier in that delivery year,
2052	2052	3 provided that the 14.5% shall increase by 1.5% each
2053	2053	4 delivery year thereafter to 25% by the delivery year
2054	2054	5 beginning June 1, 2025, and thereafter the 25% value
2055	2055	6 shall apply to each delivery year.
2056	2056	7 On or before April 1 of each year, the Agency shall
2057	2057	8 annually publish a report on its website that
2058	2058	9 identifies the aggregate amount of renewable energy
2059	2059	10 credits supplied by alternative retail electric
2060	2060	11 suppliers under this subparagraph (H).
2061	2061	12 (I) The Agency shall design its long-term renewable
2062	2062	13 energy procurement plan to maximize the State's interest
2063	2063	14 in the health, safety, and welfare of its residents,
2064	2064	15 including but not limited to minimizing sulfur dioxide,
2065	2065	16 nitrogen oxide, particulate matter and other pollution
2066	2066	17 that adversely affects public health in this State,
2067	2067	18 increasing fuel and resource diversity in this State,
2068	2068	19 enhancing the reliability and resiliency of the
2069	2069	20 electricity distribution system in this State, meeting
2070	2070	21 goals to limit carbon dioxide emissions under federal or
2071	2071	22 State law, and contributing to a cleaner and healthier
2072	2072	23 environment for the citizens of this State. In order to
2073	2073	24 further these legislative purposes, renewable energy
2074	2074	25 credits shall be eligible to be counted toward the
2075	2075	26 renewable energy requirements of this subsection (c) if
2076	2076
2077	2077
2078	2078
2079	2079
2080	2080
2081	2081	HB2205 - 57 - LRB103 28438 AMQ 54818 b
2082	2082
2083	2083
2084	2084	HB2205- 58 -LRB103 28438 AMQ 54818 b HB2205 - 58 - LRB103 28438 AMQ 54818 b
2085	2085	HB2205 - 58 - LRB103 28438 AMQ 54818 b
2086	2086	1 they are generated from facilities located in this State.
2087	2087	2 The Agency may qualify renewable energy credits from
2088	2088	3 facilities located in states adjacent to Illinois or
2089	2089	4 renewable energy credits associated with the electricity
2090	2090	5 generated by a utility-scale wind energy facility or
2091	2091	6 utility-scale photovoltaic facility and transmitted by a
2092	2092	7 qualifying direct current project described in subsection
2093	2093	8 (b-5) of Section 8-406 of the Public Utilities Act to a
2094	2094	9 delivery point on the electric transmission grid located
2095	2095	10 in this State or a state adjacent to Illinois, if the
2096	2096	11 generator demonstrates and the Agency determines that the
2097	2097	12 operation of such facility or facilities will help promote
2098	2098	13 the State's interest in the health, safety, and welfare of
2099	2099	14 its residents based on the public interest criteria
2100	2100	15 described above. For the purposes of this Section,
2101	2101	16 renewable resources that are delivered via a high voltage
2102	2102	17 direct current converter station located in Illinois shall
2103	2103	18 be deemed generated in Illinois at the time and location
2104	2104	19 the energy is converted to alternating current by the high
2105	2105	20 voltage direct current converter station if the high
2106	2106	21 voltage direct current transmission line: (i) after the
2107	2107	22 effective date of this amendatory Act of the 102nd General
2108	2108	23 Assembly, was constructed with a project labor agreement;
2109	2109	24 (ii) is capable of transmitting electricity at 525kv;
2110	2110	25 (iii) has an Illinois converter station located and
2111	2111	26 interconnected in the region of the PJM Interconnection,
2112	2112
2113	2113
2114	2114
2115	2115
2116	2116
2117	2117	HB2205 - 58 - LRB103 28438 AMQ 54818 b
2118	2118
2119	2119
2120	2120	HB2205- 59 -LRB103 28438 AMQ 54818 b HB2205 - 59 - LRB103 28438 AMQ 54818 b
2121	2121	HB2205 - 59 - LRB103 28438 AMQ 54818 b
2122	2122	1 LLC; (iv) does not operate as a public utility; and (v) if
2123	2123	2 the high voltage direct current transmission line was
2124	2124	3 energized after June 1, 2023. To ensure that the public
2125	2125	4 interest criteria are applied to the procurement and given
2126	2126	5 full effect, the Agency's long-term procurement plan shall
2127	2127	6 describe in detail how each public interest factor shall
2128	2128	7 be considered and weighted for facilities located in
2129	2129	8 states adjacent to Illinois.
2130	2130	9 (J) In order to promote the competitive development of
2131	2131	10 renewable energy resources in furtherance of the State's
2132	2132	11 interest in the health, safety, and welfare of its
2133	2133	12 residents, renewable energy credits shall not be eligible
2134	2134	13 to be counted toward the renewable energy requirements of
2135	2135	14 this subsection (c) if they are sourced from a generating
2136	2136	15 unit whose costs were being recovered through rates
2137	2137	16 regulated by this State or any other state or states on or
2138	2138	17 after January 1, 2017. Each contract executed to purchase
2139	2139	18 renewable energy credits under this subsection (c) shall
2140	2140	19 provide for the contract's termination if the costs of the
2141	2141	20 generating unit supplying the renewable energy credits
2142	2142	21 subsequently begin to be recovered through rates regulated
2143	2143	22 by this State or any other state or states; and each
2144	2144	23 contract shall further provide that, in that event, the
2145	2145	24 supplier of the credits must return 110% of all payments
2146	2146	25 received under the contract. Amounts returned under the
2147	2147	26 requirements of this subparagraph (J) shall be retained by
2148	2148
2149	2149
2150	2150
2151	2151
2152	2152
2153	2153	HB2205 - 59 - LRB103 28438 AMQ 54818 b
2154	2154
2155	2155
2156	2156	HB2205- 60 -LRB103 28438 AMQ 54818 b HB2205 - 60 - LRB103 28438 AMQ 54818 b
2157	2157	HB2205 - 60 - LRB103 28438 AMQ 54818 b
2158	2158	1 the utility and all of these amounts shall be used for the
2159	2159	2 procurement of additional renewable energy credits from
2160	2160	3 new wind or new photovoltaic resources as defined in this
2161	2161	4 subsection (c). The long-term plan shall provide that
2162	2162	5 these renewable energy credits shall be procured in the
2163	2163	6 next procurement event.
2164	2164	7 Notwithstanding the limitations of this subparagraph
2165	2165	8 (J), renewable energy credits sourced from generating
2166	2166	9 units that are constructed, purchased, owned, or leased by
2167	2167	10 an electric utility as part of an approved project,
2168	2168	11 program, or pilot under Section 1-56 of this Act shall be
2169	2169	12 eligible to be counted toward the renewable energy
2170	2170	13 requirements of this subsection (c), regardless of how the
2171	2171	14 costs of these units are recovered. As long as a
2172	2172	15 generating unit or an identifiable portion of a generating
2173	2173	16 unit has not had and does not have its costs recovered
2174	2174	17 through rates regulated by this State or any other state,
2175	2175	18 HVDC renewable energy credits associated with that
2176	2176	19 generating unit or identifiable portion thereof shall be
2177	2177	20 eligible to be counted toward the renewable energy
2178	2178	21 requirements of this subsection (c).
2179	2179	22 (K) The long-term renewable resources procurement plan
2180	2180	23 developed by the Agency in accordance with subparagraph
2181	2181	24 (A) of this paragraph (1) shall include an Adjustable
2182	2182	25 Block program for the procurement of renewable energy
2183	2183	26 credits from new photovoltaic projects that are
2184	2184
2185	2185
2186	2186
2187	2187
2188	2188
2189	2189	HB2205 - 60 - LRB103 28438 AMQ 54818 b
2190	2190
2191	2191
2192	2192	HB2205- 61 -LRB103 28438 AMQ 54818 b HB2205 - 61 - LRB103 28438 AMQ 54818 b
2193	2193	HB2205 - 61 - LRB103 28438 AMQ 54818 b
2194	2194	1 distributed renewable energy generation devices or new
2195	2195	2 photovoltaic community renewable generation projects. The
2196	2196	3 Adjustable Block program shall be generally designed to
2197	2197	4 provide for the steady, predictable, and sustainable
2198	2198	5 growth of new solar photovoltaic development in Illinois.
2199	2199	6 To this end, the Adjustable Block program shall provide a
2200	2200	7 transparent annual schedule of prices and quantities to
2201	2201	8 enable the photovoltaic market to scale up and for
2202	2202	9 renewable energy credit prices to adjust at a predictable
2203	2203	10 rate over time. The prices set by the Adjustable Block
2204	2204	11 program can be reflected as a set value or as the product
2205	2205	12 of a formula.
2206	2206	13 The Adjustable Block program shall include for each
2207	2207	14 category of eligible projects for each delivery year: a
2208	2208	15 single block of nameplate capacity, a price for renewable
2209	2209	16 energy credits within that block, and the terms and
2210	2210	17 conditions for securing a spot on a waitlist once the
2211	2211	18 block is fully committed or reserved. Except as outlined
2212	2212	19 below, the waitlist of projects in a given year will carry
2213	2213	20 over to apply to the subsequent year when another block is
2214	2214	21 opened. Only projects energized on or after June 1, 2017
2215	2215	22 shall be eligible for the Adjustable Block program. For
2216	2216	23 each category for each delivery year the Agency shall
2217	2217	24 determine the amount of generation capacity in each block,
2218	2218	25 and the purchase price for each block, provided that the
2219	2219	26 purchase price provided and the total amount of generation
2220	2220
2221	2221
2222	2222
2223	2223
2224	2224
2225	2225	HB2205 - 61 - LRB103 28438 AMQ 54818 b
2226	2226
2227	2227
2228	2228	HB2205- 62 -LRB103 28438 AMQ 54818 b HB2205 - 62 - LRB103 28438 AMQ 54818 b
2229	2229	HB2205 - 62 - LRB103 28438 AMQ 54818 b
2230	2230	1 in all blocks for all categories shall be sufficient to
2231	2231	2 meet the goals in this subsection (c). The Agency shall
2232	2232	3 strive to issue a single block sized to provide for
2233	2233	4 stability and market growth. The Agency shall establish
2234	2234	5 program eligibility requirements that ensure that projects
2235	2235	6 that enter the program are sufficiently mature to indicate
2236	2236	7 a demonstrable path to completion. The Agency may
2237	2237	8 periodically review its prior decisions establishing the
2238	2238	9 amount of generation capacity in each block, and the
2239	2239	10 purchase price for each block, and may propose, on an
2240	2240	11 expedited basis, changes to these previously set values,
2241	2241	12 including but not limited to redistributing these amounts
2242	2242	13 and the available funds as necessary and appropriate,
2243	2243	14 subject to Commission approval as part of the periodic
2244	2244	15 plan revision process described in Section 16-111.5 of the
2245	2245	16 Public Utilities Act. The Agency may define different
2246	2246	17 block sizes, purchase prices, or other distinct terms and
2247	2247	18 conditions for projects located in different utility
2248	2248	19 service territories if the Agency deems it necessary to
2249	2249	20 meet the goals in this subsection (c).
2250	2250	21 The Adjustable Block program shall include the
2251	2251	22 following categories in at least the following amounts:
2252	2252	23 (i) At least 20% from distributed renewable energy
2253	2253	24 generation devices with a nameplate capacity of no
2254	2254	25 more than 25 kilowatts.
2255	2255	26 (ii) At least 20% from distributed renewable
2256	2256
2257	2257
2258	2258
2259	2259
2260	2260
2261	2261	HB2205 - 62 - LRB103 28438 AMQ 54818 b
2262	2262
2263	2263
2264	2264	HB2205- 63 -LRB103 28438 AMQ 54818 b HB2205 - 63 - LRB103 28438 AMQ 54818 b
2265	2265	HB2205 - 63 - LRB103 28438 AMQ 54818 b
2266	2266	1 energy generation devices with a nameplate capacity of
2267	2267	2 more than 25 kilowatts and no more than 5,000
2268	2268	3 kilowatts. The Agency may create sub-categories within
2269	2269	4 this category to account for the differences between
2270	2270	5 projects for small commercial customers, large
2271	2271	6 commercial customers, and public or non-profit
2272	2272	7 customers.
2273	2273	8 (iii) At least 30% from photovoltaic community
2274	2274	9 renewable generation projects. Capacity for this
2275	2275	10 category for the first 2 delivery years after the
2276	2276	11 effective date of this amendatory Act of the 102nd
2277	2277	12 General Assembly shall be allocated to waitlist
2278	2278	13 projects as provided in paragraph (3) of item (iv) of
2279	2279	14 subparagraph (G). Starting in the third delivery year
2280	2280	15 after the effective date of this amendatory Act of the
2281	2281	16 102nd General Assembly or earlier if the Agency
2282	2282	17 determines there is additional capacity needed for to
2283	2283	18 meet previous delivery year requirements, the
2284	2284	19 following shall apply:
2285	2285	20 (1) the Agency shall select projects on a
2286	2286	21 first-come, first-serve basis, however the Agency
2287	2287	22 may suggest additional methods to prioritize
2288	2288	23 projects that are submitted at the same time;
2289	2289	24 (2) projects shall have subscriptions of 25 kW
2290	2290	25 or less for at least 50% of the facility's
2291	2291	26 nameplate capacity and the Agency shall price the
2292	2292
2293	2293
2294	2294
2295	2295
2296	2296
2297	2297	HB2205 - 63 - LRB103 28438 AMQ 54818 b
2298	2298
2299	2299
2300	2300	HB2205- 64 -LRB103 28438 AMQ 54818 b HB2205 - 64 - LRB103 28438 AMQ 54818 b
2301	2301	HB2205 - 64 - LRB103 28438 AMQ 54818 b
2302	2302	1 renewable energy credits with that as a factor;
2303	2303	2 (3) projects shall not be colocated with one
2304	2304	3 or more other community renewable generation
2305	2305	4 projects, as defined in the Agency's first revised
2306	2306	5 long-term renewable resources procurement plan
2307	2307	6 approved by the Commission on February 18, 2020,
2308	2308	7 such that the aggregate nameplate capacity exceeds
2309	2309	8 5,000 kilowatts; and
2310	2310	9 (4) projects greater than 2 MW may not apply
2311	2311	10 until after the approval of the Agency's revised
2312	2312	11 Long-Term Renewable Resources Procurement Plan
2313	2313	12 after the effective date of this amendatory Act of
2314	2314	13 the 102nd General Assembly.
2315	2315	14 (iv) At least 15% from distributed renewable
2316	2316	15 generation devices or photovoltaic community renewable
2317	2317	16 generation projects installed at public schools. The
2318	2318	17 Agency may create subcategories within this category
2319	2319	18 to account for the differences between project size or
2320	2320	19 location. Projects located within environmental
2321	2321	20 justice communities or within Organizational Units
2322	2322	21 that fall within Tier 1 or Tier 2 shall be given
2323	2323	22 priority. Each of the Agency's periodic updates to its
2324	2324	23 long-term renewable resources procurement plan to
2325	2325	24 incorporate the procurement described in this
2326	2326	25 subparagraph (iv) shall also include the proposed
2327	2327	26 quantities or blocks, pricing, and contract terms
2328	2328
2329	2329
2330	2330
2331	2331
2332	2332
2333	2333	HB2205 - 64 - LRB103 28438 AMQ 54818 b
2334	2334
2335	2335
2336	2336	HB2205- 65 -LRB103 28438 AMQ 54818 b HB2205 - 65 - LRB103 28438 AMQ 54818 b
2337	2337	HB2205 - 65 - LRB103 28438 AMQ 54818 b
2338	2338	1 applicable to the procurement as indicated herein. In
2339	2339	2 each such update and procurement, the Agency shall set
2340	2340	3 the renewable energy credit price and establish
2341	2341	4 payment terms for the renewable energy credits
2342	2342	5 procured pursuant to this subparagraph (iv) that make
2343	2343	6 it feasible and affordable for public schools to
2344	2344	7 install photovoltaic distributed renewable energy
2345	2345	8 devices on their premises, including, but not limited
2346	2346	9 to, those public schools subject to the prioritization
2347	2347	10 provisions of this subparagraph. For the purposes of
2348	2348	11 this item (iv):
2349	2349	12 "Environmental Justice Community" shall have the
2350	2350	13 same meaning set forth in the Agency's long-term
2351	2351	14 renewable resources procurement plan;
2352	2352	15 "Organization Unit", "Tier 1" and "Tier 2" shall
2353	2353	16 have the meanings set for in Section 18-8.15 of the
2354	2354	17 School Code;
2355	2355	18 "Public schools" shall have the meaning set forth
2356	2356	19 in Section 1-3 of the School Code.
2357	2357	20 (v) At least 5% from community-driven community
2358	2358	21 solar projects intended to provide more direct and
2359	2359	22 tangible connection and benefits to the communities
2360	2360	23 which they serve or in which they operate and,
2361	2361	24 additionally, to increase the variety of community
2362	2362	25 solar locations, models, and options in Illinois. As
2363	2363	26 part of its long-term renewable resources procurement
2364	2364
2365	2365
2366	2366
2367	2367
2368	2368
2369	2369	HB2205 - 65 - LRB103 28438 AMQ 54818 b
2370	2370
2371	2371
2372	2372	HB2205- 66 -LRB103 28438 AMQ 54818 b HB2205 - 66 - LRB103 28438 AMQ 54818 b
2373	2373	HB2205 - 66 - LRB103 28438 AMQ 54818 b
2374	2374	1 plan, the Agency shall develop selection criteria for
2375	2375	2 projects participating in this category. Nothing in
2376	2376	3 this Section shall preclude the Agency from creating a
2377	2377	4 selection process that maximizes community ownership
2378	2378	5 and community benefits in selecting projects to
2379	2379	6 receive renewable energy credits. Selection criteria
2380	2380	7 shall include:
2381	2381	8 (1) community ownership or community
2382	2382	9 wealth-building;
2383	2383	10 (2) additional direct and indirect community
2384	2384	11 benefit, beyond project participation as a
2385	2385	12 subscriber, including, but not limited to,
2386	2386	13 economic, environmental, social, cultural, and
2387	2387	14 physical benefits;
2388	2388	15 (3) meaningful involvement in project
2389	2389	16 organization and development by community members
2390	2390	17 or nonprofit organizations or public entities
2391	2391	18 located in or serving the community;
2392	2392	19 (4) engagement in project operations and
2393	2393	20 management by nonprofit organizations, public
2394	2394	21 entities, or community members; and
2395	2395	22 (5) whether a project is developed in response
2396	2396	23 to a site-specific RFP developed by community
2397	2397	24 members or a nonprofit organization or public
2398	2398	25 entity located in or serving the community.
2399	2399	26 Selection criteria may also prioritize projects
2400	2400
2401	2401
2402	2402
2403	2403
2404	2404
2405	2405	HB2205 - 66 - LRB103 28438 AMQ 54818 b
2406	2406
2407	2407
2408	2408	HB2205- 67 -LRB103 28438 AMQ 54818 b HB2205 - 67 - LRB103 28438 AMQ 54818 b
2409	2409	HB2205 - 67 - LRB103 28438 AMQ 54818 b
2410	2410	1 that:
2411	2411	2 (1) are developed in collaboration with or to
2412	2412	3 provide complementary opportunities for the Clean
2413	2413	4 Jobs Workforce Network Program, the Illinois
2414	2414	5 Climate Works Preapprenticeship Program, the
2415	2415	6 Returning Residents Clean Jobs Training Program,
2416	2416	7 the Clean Energy Contractor Incubator Program, or
2417	2417	8 the Clean Energy Primes Contractor Accelerator
2418	2418	9 Program;
2419	2419	10 (2) increase the diversity of locations of
2420	2420	11 community solar projects in Illinois, including by
2421	2421	12 locating in urban areas and population centers;
2422	2422	13 (3) are located in Equity Investment Eligible
2423	2423	14 Communities;
2424	2424	15 (4) are not greenfield projects;
2425	2425	16 (5) serve only local subscribers;
2426	2426	17 (6) have a nameplate capacity that does not
2427	2427	18 exceed 500 kW;
2428	2428	19 (7) are developed by an equity eligible
2429	2429	20 contractor; or
2430	2430	21 (8) otherwise meaningfully advance the goals
2431	2431	22 of providing more direct and tangible connection
2432	2432	23 and benefits to the communities which they serve
2433	2433	24 or in which they operate and increasing the
2434	2434	25 variety of community solar locations, models, and
2435	2435	26 options in Illinois.
2436	2436
2437	2437
2438	2438
2439	2439
2440	2440
2441	2441	HB2205 - 67 - LRB103 28438 AMQ 54818 b
2442	2442
2443	2443
2444	2444	HB2205- 68 -LRB103 28438 AMQ 54818 b HB2205 - 68 - LRB103 28438 AMQ 54818 b
2445	2445	HB2205 - 68 - LRB103 28438 AMQ 54818 b
2446	2446	1 For the purposes of this item (v):
2447	2447	2 "Community" means a social unit in which people
2448	2448	3 come together regularly to effect change; a social
2449	2449	4 unit in which participants are marked by a cooperative
2450	2450	5 spirit, a common purpose, or shared interests or
2451	2451	6 characteristics; or a space understood by its
2452	2452	7 residents to be delineated through geographic
2453	2453	8 boundaries or landmarks.
2454	2454	9 "Community benefit" means a range of services and
2455	2455	10 activities that provide affirmative, economic,
2456	2456	11 environmental, social, cultural, or physical value to
2457	2457	12 a community; or a mechanism that enables economic
2458	2458	13 development, high-quality employment, and education
2459	2459	14 opportunities for local workers and residents, or
2460	2460	15 formal monitoring and oversight structures such that
2461	2461	16 community members may ensure that those services and
2462	2462	17 activities respond to local knowledge and needs.
2463	2463	18 "Community ownership" means an arrangement in
2464	2464	19 which an electric generating facility is, or over time
2465	2465	20 will be, in significant part, owned collectively by
2466	2466	21 members of the community to which an electric
2467	2467	22 generating facility provides benefits; members of that
2468	2468	23 community participate in decisions regarding the
2469	2469	24 governance, operation, maintenance, and upgrades of
2470	2470	25 and to that facility; and members of that community
2471	2471	26 benefit from regular use of that facility.
2472	2472
2473	2473
2474	2474
2475	2475
2476	2476
2477	2477	HB2205 - 68 - LRB103 28438 AMQ 54818 b
2478	2478
2479	2479
2480	2480	HB2205- 69 -LRB103 28438 AMQ 54818 b HB2205 - 69 - LRB103 28438 AMQ 54818 b
2481	2481	HB2205 - 69 - LRB103 28438 AMQ 54818 b
2482	2482	1 Terms and guidance within these criteria that are
2483	2483	2 not defined in this item (v) shall be defined by the
2484	2484	3 Agency, with stakeholder input, during the development
2485	2485	4 of the Agency's long-term renewable resources
2486	2486	5 procurement plan. The Agency shall develop regular
2487	2487	6 opportunities for projects to submit applications for
2488	2488	7 projects under this category, and develop selection
2489	2489	8 criteria that gives preference to projects that better
2490	2490	9 meet individual criteria as well as projects that
2491	2491	10 address a higher number of criteria.
2492	2492	11 (vi) At least 10% from distributed renewable
2493	2493	12 energy generation devices, which includes distributed
2494	2494	13 renewable energy devices with a nameplate capacity
2495	2495	14 under 5,000 kilowatts or photovoltaic community
2496	2496	15 renewable generation projects, from applicants that
2497	2497	16 are equity eligible contractors. The Agency may create
2498	2498	17 subcategories within this category to account for the
2499	2499	18 differences between project size and type. The Agency
2500	2500	19 shall propose to increase the percentage in this item
2501	2501	20 (vi) over time to 40% based on factors, including, but
2502	2502	21 not limited to, the number of equity eligible
2503	2503	22 contractors and capacity used in this item (vi) in
2504	2504	23 previous delivery years.
2505	2505	24 The Agency shall propose a payment structure for
2506	2506	25 contracts executed pursuant to this paragraph under
2507	2507	26 which, upon a demonstration of qualification or need,
2508	2508
2509	2509
2510	2510
2511	2511
2512	2512
2513	2513	HB2205 - 69 - LRB103 28438 AMQ 54818 b
2514	2514
2515	2515
2516	2516	HB2205- 70 -LRB103 28438 AMQ 54818 b HB2205 - 70 - LRB103 28438 AMQ 54818 b
2517	2517	HB2205 - 70 - LRB103 28438 AMQ 54818 b
2518	2518	1 applicant firms are advanced capital disbursed after
2519	2519	2 contract execution but before the contracted project's
2520	2520	3 energization. The amount or percentage of capital
2521	2521	4 advanced prior to project energization shall be
2522	2522	5 sufficient to both cover any increase in development
2523	2523	6 costs resulting from prevailing wage requirements or
2524	2524	7 project-labor agreements, and designed to overcome
2525	2525	8 barriers in access to capital faced by equity eligible
2526	2526	9 contractors. The amount or percentage of advanced
2527	2527	10 capital may vary by subcategory within this category
2528	2528	11 and by an applicant's demonstration of need, with such
2529	2529	12 levels to be established through the Long-Term
2530	2530	13 Renewable Resources Procurement Plan authorized under
2531	2531	14 subparagraph (A) of paragraph (1) of subsection (c) of
2532	2532	15 this Section.
2533	2533	16 Contracts developed featuring capital advanced
2534	2534	17 prior to a project's energization shall feature
2535	2535	18 provisions to ensure both the successful development
2536	2536	19 of applicant projects and the delivery of the
2537	2537	20 renewable energy credits for the full term of the
2538	2538	21 contract, including ongoing collateral requirements
2539	2539	22 and other provisions deemed necessary by the Agency,
2540	2540	23 and may include energization timelines longer than for
2541	2541	24 comparable project types. The percentage or amount of
2542	2542	25 capital advanced prior to project energization shall
2543	2543	26 not operate to increase the overall contract value,
2544	2544
2545	2545
2546	2546
2547	2547
2548	2548
2549	2549	HB2205 - 70 - LRB103 28438 AMQ 54818 b
2550	2550
2551	2551
2552	2552	HB2205- 71 -LRB103 28438 AMQ 54818 b HB2205 - 71 - LRB103 28438 AMQ 54818 b
2553	2553	HB2205 - 71 - LRB103 28438 AMQ 54818 b
2554	2554	1 however contracts executed under this subparagraph may
2555	2555	2 feature renewable energy credit prices higher than
2556	2556	3 those offered to similar projects participating in
2557	2557	4 other categories. Capital advanced prior to
2558	2558	5 energization shall serve to reduce the ratable
2559	2559	6 payments made after energization under items (ii) and
2560	2560	7 (iii) of subparagraph (L) or payments made for each
2561	2561	8 renewable energy credit delivery under item (iv) of
2562	2562	9 subparagraph (L).
2563	2563	10 (vii) The remaining capacity shall be allocated by
2564	2564	11 the Agency in order to respond to market demand. The
2565	2565	12 Agency shall allocate any discretionary capacity prior
2566	2566	13 to the beginning of each delivery year.
2567	2567	14 To the extent there is uncontracted capacity from any
2568	2568	15 block in any of categories (i) through (vi) at the end of a
2569	2569	16 delivery year, the Agency shall redistribute that capacity
2570	2570	17 to one or more other categories giving priority to
2571	2571	18 categories with projects on a waitlist. The redistributed
2572	2572	19 capacity shall be added to the annual capacity in the
2573	2573	20 subsequent delivery year, and the price for renewable
2574	2574	21 energy credits shall be the price for the new delivery
2575	2575	22 year. Redistributed capacity shall not be considered
2576	2576	23 redistributed when determining whether the goals in this
2577	2577	24 subsection (K) have been met.
2578	2578	25 Notwithstanding anything to the contrary, as the
2579	2579	26 Agency increases the capacity in item (vi) to 40% over
2580	2580
2581	2581
2582	2582
2583	2583
2584	2584
2585	2585	HB2205 - 71 - LRB103 28438 AMQ 54818 b
2586	2586
2587	2587
2588	2588	HB2205- 72 -LRB103 28438 AMQ 54818 b HB2205 - 72 - LRB103 28438 AMQ 54818 b
2589	2589	HB2205 - 72 - LRB103 28438 AMQ 54818 b
2590	2590	1 time, the Agency may reduce the capacity of items (i)
2591	2591	2 through (v) proportionate to the capacity of the
2592	2592	3 categories of projects in item (vi), to achieve a balance
2593	2593	4 of project types.
2594	2594	5 The Adjustable Block program shall be designed to
2595	2595	6 ensure that renewable energy credits are procured from
2596	2596	7 projects in diverse locations and are not concentrated in
2597	2597	8 a few regional areas.
2598	2598	9 (L) Notwithstanding provisions for advancing capital
2599	2599	10 prior to project energization found in item (vi) of
2600	2600	11 subparagraph (K), the procurement of photovoltaic
2601	2601	12 renewable energy credits under items (i) through (vi) of
2602	2602	13 subparagraph (K) of this paragraph (1) shall otherwise be
2603	2603	14 subject to the following contract and payment terms:
2604	2604	15 (i) (Blank).
2605	2605	16 (ii) For those renewable energy credits that
2606	2606	17 qualify and are procured under item (i) of
2607	2607	18 subparagraph (K) of this paragraph (1), and any
2608	2608	19 similar category projects that are procured under item
2609	2609	20 (vi) of subparagraph (K) of this paragraph (1) that
2610	2610	21 qualify and are procured under item (vi), the contract
2611	2611	22 length shall be 15 years. The renewable energy credit
2612	2612	23 delivery contract value shall be paid in full, based
2613	2613	24 on the estimated generation during the first 15 years
2614	2614	25 of operation, by the contracting utilities at the time
2615	2615	26 that the facility producing the renewable energy
2616	2616
2617	2617
2618	2618
2619	2619
2620	2620
2621	2621	HB2205 - 72 - LRB103 28438 AMQ 54818 b
2622	2622
2623	2623
2624	2624	HB2205- 73 -LRB103 28438 AMQ 54818 b HB2205 - 73 - LRB103 28438 AMQ 54818 b
2625	2625	HB2205 - 73 - LRB103 28438 AMQ 54818 b
2626	2626	1 credits is interconnected at the distribution system
2627	2627	2 level of the utility and verified as energized and
2628	2628	3 compliant by the Program Administrator. The electric
2629	2629	4 utility shall receive and retire all renewable energy
2630	2630	5 credits generated by the project for the first 15
2631	2631	6 years of operation. Renewable energy credits generated
2632	2632	7 by the project thereafter shall not be transferred
2633	2633	8 under the renewable energy credit delivery contract
2634	2634	9 with the counterparty electric utility.
2635	2635	10 (iii) For those renewable energy credits that
2636	2636	11 qualify and are procured under item (ii) and (v) of
2637	2637	12 subparagraph (K) of this paragraph (1) and any like
2638	2638	13 projects similar category that qualify and are
2639	2639	14 procured under item (vi), the contract length shall be
2640	2640	15 15 years. 15% of the renewable energy credit delivery
2641	2641	16 contract value, based on the estimated generation
2642	2642	17 during the first 15 years of operation, shall be paid
2643	2643	18 by the contracting utilities at the time that the
2644	2644	19 facility producing the renewable energy credits is
2645	2645	20 interconnected at the distribution system level of the
2646	2646	21 utility and verified as energized and compliant by the
2647	2647	22 Program Administrator. The remaining portion shall be
2648	2648	23 paid ratably over the subsequent 6-year period. The
2649	2649	24 electric utility shall receive and retire all
2650	2650	25 renewable energy credits generated by the project for
2651	2651	26 the first 15 years of operation. Renewable energy
2652	2652
2653	2653
2654	2654
2655	2655
2656	2656
2657	2657	HB2205 - 73 - LRB103 28438 AMQ 54818 b
2658	2658
2659	2659
2660	2660	HB2205- 74 -LRB103 28438 AMQ 54818 b HB2205 - 74 - LRB103 28438 AMQ 54818 b
2661	2661	HB2205 - 74 - LRB103 28438 AMQ 54818 b
2662	2662	1 credits generated by the project thereafter shall not
2663	2663	2 be transferred under the renewable energy credit
2664	2664	3 delivery contract with the counterparty electric
2665	2665	4 utility.
2666	2666	5 (iv) For those renewable energy credits that
2667	2667	6 qualify and are procured under items (iii) and (iv) of
2668	2668	7 subparagraph (K) of this paragraph (1), and any like
2669	2669	8 projects that qualify and are procured under item
2670	2670	9 (vi), the renewable energy credit delivery contract
2671	2671	10 length shall be 20 years and shall be paid over the
2672	2672	11 delivery term, not to exceed during each delivery year
2673	2673	12 the contract price multiplied by the estimated annual
2674	2674	13 renewable energy credit generation amount. If
2675	2675	14 generation of renewable energy credits during a
2676	2676	15 delivery year exceeds the estimated annual generation
2677	2677	16 amount, the excess renewable energy credits shall be
2678	2678	17 carried forward to future delivery years and shall not
2679	2679	18 expire during the delivery term. If generation of
2680	2680	19 renewable energy credits during a delivery year,
2681	2681	20 including carried forward excess renewable energy
2682	2682	21 credits, if any, is less than the estimated annual
2683	2683	22 generation amount, payments during such delivery year
2684	2684	23 will not exceed the quantity generated plus the
2685	2685	24 quantity carried forward multiplied by the contract
2686	2686	25 price. The electric utility shall receive all
2687	2687	26 renewable energy credits generated by the project
2688	2688
2689	2689
2690	2690
2691	2691
2692	2692
2693	2693	HB2205 - 74 - LRB103 28438 AMQ 54818 b
2694	2694
2695	2695
2696	2696	HB2205- 75 -LRB103 28438 AMQ 54818 b HB2205 - 75 - LRB103 28438 AMQ 54818 b
2697	2697	HB2205 - 75 - LRB103 28438 AMQ 54818 b
2698	2698	1 during the first 20 years of operation and retire all
2699	2699	2 renewable energy credits paid for under this item (iv)
2700	2700	3 and return at the end of the delivery term all
2701	2701	4 renewable energy credits that were not paid for.
2702	2702	5 Renewable energy credits generated by the project
2703	2703	6 thereafter shall not be transferred under the
2704	2704	7 renewable energy credit delivery contract with the
2705	2705	8 counterparty electric utility. Notwithstanding the
2706	2706	9 preceding, for those projects participating under item
2707	2707	10 (iii) of subparagraph (K), the contract price for a
2708	2708	11 delivery year shall be based on subscription levels as
2709	2709	12 measured on the higher of the first business day of the
2710	2710	13 delivery year or the first business day 6 months after
2711	2711	14 the first business day of the delivery year.
2712	2712	15 Subscription of 90% of nameplate capacity or greater
2713	2713	16 shall be deemed to be fully subscribed for the
2714	2714	17 purposes of this item (iv). For projects receiving a
2715	2715	18 20-year delivery contract, REC prices shall be
2716	2716	19 adjusted downward for consistency with the incentive
2717	2717	20 levels previously determined to be necessary to
2718	2718	21 support projects under 15-year delivery contracts,
2719	2719	22 taking into consideration any additional new
2720	2720	23 requirements placed on the projects, including, but
2721	2721	24 not limited to, labor standards.
2722	2722	25 (v) Each contract shall include provisions to
2723	2723	26 ensure the delivery of the estimated quantity of
2724	2724
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729	HB2205 - 75 - LRB103 28438 AMQ 54818 b
2730	2730
2731	2731
2732	2732	HB2205- 76 -LRB103 28438 AMQ 54818 b HB2205 - 76 - LRB103 28438 AMQ 54818 b
2733	2733	HB2205 - 76 - LRB103 28438 AMQ 54818 b
2734	2734	1 renewable energy credits and ongoing collateral
2735	2735	2 requirements and other provisions deemed appropriate
2736	2736	3 by the Agency.
2737	2737	4 (vi) The utility shall be the counterparty to the
2738	2738	5 contracts executed under this subparagraph (L) that
2739	2739	6 are approved by the Commission under the process
2740	2740	7 described in Section 16-111.5 of the Public Utilities
2741	2741	8 Act. No contract shall be executed for an amount that
2742	2742	9 is less than one renewable energy credit per year.
2743	2743	10 (vii) If, at any time, approved applications for
2744	2744	11 the Adjustable Block program exceed funds collected by
2745	2745	12 the electric utility or would cause the Agency to
2746	2746	13 exceed the limitation described in subparagraph (E) of
2747	2747	14 this paragraph (1) on the amount of renewable energy
2748	2748	15 resources that may be procured, then the Agency may
2749	2749	16 consider future uncommitted funds to be reserved for
2750	2750	17 these contracts on a first-come, first-served basis.
2751	2751	18 (viii) Nothing in this Section shall require the
2752	2752	19 utility to advance any payment or pay any amounts that
2753	2753	20 exceed the actual amount of revenues anticipated to be
2754	2754	21 collected by the utility under paragraph (6) of this
2755	2755	22 subsection (c) and subsection (k) of Section 16-108 of
2756	2756	23 the Public Utilities Act inclusive of eligible funds
2757	2757	24 collected in prior years and alternative compliance
2758	2758	25 payments for use by the utility, and contracts
2759	2759	26 executed under this Section shall expressly
2760	2760
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765	HB2205 - 76 - LRB103 28438 AMQ 54818 b
2766	2766
2767	2767
2768	2768	HB2205- 77 -LRB103 28438 AMQ 54818 b HB2205 - 77 - LRB103 28438 AMQ 54818 b
2769	2769	HB2205 - 77 - LRB103 28438 AMQ 54818 b
2770	2770	1 incorporate this limitation.
2771	2771	2 (ix) Notwithstanding other requirements of this
2772	2772	3 subparagraph (L), no modification shall be required to
2773	2773	4 Adjustable Block program contracts if they were
2774	2774	5 already executed prior to the establishment, approval,
2775	2775	6 and implementation of new contract forms as a result
2776	2776	7 of this amendatory Act of the 102nd General Assembly.
2777	2777	8 (x) Contracts may be assignable, but only to
2778	2778	9 entities first deemed by the Agency to have met
2779	2779	10 program terms and requirements applicable to direct
2780	2780	11 program participation. In developing contracts for the
2781	2781	12 delivery of renewable energy credits, the Agency shall
2782	2782	13 be permitted to establish fees applicable to each
2783	2783	14 contract assignment.
2784	2784	15 (M) The Agency shall be authorized to retain one or
2785	2785	16 more experts or expert consulting firms to develop,
2786	2786	17 administer, implement, operate, and evaluate the
2787	2787	18 Adjustable Block program described in subparagraph (K) of
2788	2788	19 this paragraph (1), and the Agency shall retain the
2789	2789	20 consultant or consultants in the same manner, to the
2790	2790	21 extent practicable, as the Agency retains others to
2791	2791	22 administer provisions of this Act, including, but not
2792	2792	23 limited to, the procurement administrator. The selection
2793	2793	24 of experts and expert consulting firms and the procurement
2794	2794	25 process described in this subparagraph (M) are exempt from
2795	2795	26 the requirements of Section 20-10 of the Illinois
2796	2796
2797	2797
2798	2798
2799	2799
2800	2800
2801	2801	HB2205 - 77 - LRB103 28438 AMQ 54818 b
2802	2802
2803	2803
2804	2804	HB2205- 78 -LRB103 28438 AMQ 54818 b HB2205 - 78 - LRB103 28438 AMQ 54818 b
2805	2805	HB2205 - 78 - LRB103 28438 AMQ 54818 b
2806	2806	1 Procurement Code, under Section 20-10 of that Code. The
2807	2807	2 Agency shall strive to minimize administrative expenses in
2808	2808	3 the implementation of the Adjustable Block program.
2809	2809	4 The Program Administrator may charge application fees
2810	2810	5 to participating firms to cover the cost of program
2811	2811	6 administration. Any application fee amounts shall
2812	2812	7 initially be determined through the long-term renewable
2813	2813	8 resources procurement plan, and modifications to any
2814	2814	9 application fee that deviate more than 25% from the
2815	2815	10 Commission's approved value must be approved by the
2816	2816	11 Commission as a long-term plan revision under Section
2817	2817	12 16-111.5 of the Public Utilities Act. The Agency shall
2818	2818	13 consider stakeholder feedback when making adjustments to
2819	2819	14 application fees and shall notify stakeholders in advance
2820	2820	15 of any planned changes.
2821	2821	16 In addition to covering the costs of program
2822	2822	17 administration, the Agency, in conjunction with its
2823	2823	18 Program Administrator, may also use the proceeds of such
2824	2824	19 fees charged to participating firms to support public
2825	2825	20 education and ongoing regional and national coordination
2826	2826	21 with nonprofit organizations, public bodies, and others
2827	2827	22 engaged in the implementation of renewable energy
2828	2828	23 incentive programs or similar initiatives. This work may
2829	2829	24 include developing papers and reports, hosting regional
2830	2830	25 and national conferences, and other work deemed necessary
2831	2831	26 by the Agency to position the State of Illinois as a
2832	2832
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837	HB2205 - 78 - LRB103 28438 AMQ 54818 b
2838	2838
2839	2839
2840	2840	HB2205- 79 -LRB103 28438 AMQ 54818 b HB2205 - 79 - LRB103 28438 AMQ 54818 b
2841	2841	HB2205 - 79 - LRB103 28438 AMQ 54818 b
2842	2842	1 national leader in renewable energy incentive program
2843	2843	2 development and administration.
2844	2844	3 The Agency and its consultant or consultants shall
2845	2845	4 monitor block activity, share program activity with
2846	2846	5 stakeholders and conduct quarterly meetings to discuss
2847	2847	6 program activity and market conditions. If necessary, the
2848	2848	7 Agency may make prospective administrative adjustments to
2849	2849	8 the Adjustable Block program design, such as making
2850	2850	9 adjustments to purchase prices as necessary to achieve the
2851	2851	10 goals of this subsection (c). Program modifications to any
2852	2852	11 block price that do not deviate from the Commission's
2853	2853	12 approved value by more than 10% shall take effect
2854	2854	13 immediately and are not subject to Commission review and
2855	2855	14 approval. Program modifications to any block price that
2856	2856	15 deviate more than 10% from the Commission's approved value
2857	2857	16 must be approved by the Commission as a long-term plan
2858	2858	17 amendment under Section 16-111.5 of the Public Utilities
2859	2859	18 Act. The Agency shall consider stakeholder feedback when
2860	2860	19 making adjustments to the Adjustable Block design and
2861	2861	20 shall notify stakeholders in advance of any planned
2862	2862	21 changes.
2863	2863	22 The Agency and its program administrators for both the
2864	2864	23 Adjustable Block program and the Illinois Solar for All
2865	2865	24 Program, consistent with the requirements of this
2866	2866	25 subsection (c) and subsection (b) of Section 1-56 of this
2867	2867	26 Act, shall propose the Adjustable Block program terms,
2868	2868
2869	2869
2870	2870
2871	2871
2872	2872
2873	2873	HB2205 - 79 - LRB103 28438 AMQ 54818 b
2874	2874
2875	2875
2876	2876	HB2205- 80 -LRB103 28438 AMQ 54818 b HB2205 - 80 - LRB103 28438 AMQ 54818 b
2877	2877	HB2205 - 80 - LRB103 28438 AMQ 54818 b
2878	2878	1 conditions, and requirements, including the prices to be
2879	2879	2 paid for renewable energy credits, where applicable, and
2880	2880	3 requirements applicable to participating entities and
2881	2881	4 project applications, through the development, review, and
2882	2882	5 approval of the Agency's long-term renewable resources
2883	2883	6 procurement plan described in this subsection (c) and
2884	2884	7 paragraph (5) of subsection (b) of Section 16-111.5 of the
2885	2885	8 Public Utilities Act. Terms, conditions, and requirements
2886	2886	9 for program participation shall include the following:
2887	2887	10 (i) The Agency shall establish a registration
2888	2888	11 process for entities seeking to qualify for
2889	2889	12 program-administered incentive funding and establish
2890	2890	13 baseline qualifications for vendor approval. The
2891	2891	14 Agency must maintain a list of approved entities on
2892	2892	15 each program's website, and may revoke a vendor's
2893	2893	16 ability to receive program-administered incentive
2894	2894	17 funding status upon a determination that the vendor
2895	2895	18 failed to comply with contract terms, the law, or
2896	2896	19 other program requirements.
2897	2897	20 (ii) The Agency shall establish program
2898	2898	21 requirements and minimum contract terms to ensure
2899	2899	22 projects are properly installed and produce their
2900	2900	23 expected amounts of energy. Program requirements may
2901	2901	24 include on-site inspections and photo documentation of
2902	2902	25 projects under construction. The Agency may require
2903	2903	26 repairs, alterations, or additions to remedy any
2904	2904
2905	2905
2906	2906
2907	2907
2908	2908
2909	2909	HB2205 - 80 - LRB103 28438 AMQ 54818 b
2910	2910
2911	2911
2912	2912	HB2205- 81 -LRB103 28438 AMQ 54818 b HB2205 - 81 - LRB103 28438 AMQ 54818 b
2913	2913	HB2205 - 81 - LRB103 28438 AMQ 54818 b
2914	2914	1 material deficiencies discovered. Vendors who have a
2915	2915	2 disproportionately high number of deficient systems
2916	2916	3 may lose their eligibility to continue to receive
2917	2917	4 State-administered incentive funding through Agency
2918	2918	5 programs and procurements.
2919	2919	6 (iii) To discourage deceptive marketing or other
2920	2920	7 bad faith business practices, the Agency may require
2921	2921	8 direct program participants, including agents
2922	2922	9 operating on their behalf, to provide standardized
2923	2923	10 disclosures to a customer prior to that customer's
2924	2924	11 execution of a contract for the development of a
2925	2925	12 distributed generation system or a subscription to a
2926	2926	13 community solar project.
2927	2927	14 (iv) The Agency shall establish one or multiple
2928	2928	15 Consumer Complaints Centers to accept complaints
2929	2929	16 regarding businesses that participate in, or otherwise
2930	2930	17 benefit from, State-administered incentive funding
2931	2931	18 through Agency-administered programs. The Agency shall
2932	2932	19 maintain a public database of complaints with any
2933	2933	20 confidential or particularly sensitive information
2934	2934	21 redacted from public entries.
2935	2935	22 (v) Through a filing in the proceeding for the
2936	2936	23 approval of its long-term renewable energy resources
2937	2937	24 procurement plan, the Agency shall provide an annual
2938	2938	25 written report to the Illinois Commerce Commission
2939	2939	26 documenting the frequency and nature of complaints and
2940	2940
2941	2941
2942	2942
2943	2943
2944	2944
2945	2945	HB2205 - 81 - LRB103 28438 AMQ 54818 b
2946	2946
2947	2947
2948	2948	HB2205- 82 -LRB103 28438 AMQ 54818 b HB2205 - 82 - LRB103 28438 AMQ 54818 b
2949	2949	HB2205 - 82 - LRB103 28438 AMQ 54818 b
2950	2950	1 any enforcement actions taken in response to those
2951	2951	2 complaints.
2952	2952	3 (vi) The Agency shall schedule regular meetings
2953	2953	4 with representatives of the Office of the Attorney
2954	2954	5 General, the Illinois Commerce Commission, consumer
2955	2955	6 protection groups, and other interested stakeholders
2956	2956	7 to share relevant information about consumer
2957	2957	8 protection, project compliance, and complaints
2958	2958	9 received.
2959	2959	10 (vii) To the extent that complaints received
2960	2960	11 implicate the jurisdiction of the Office of the
2961	2961	12 Attorney General, the Illinois Commerce Commission, or
2962	2962	13 local, State, or federal law enforcement, the Agency
2963	2963	14 shall also refer complaints to those entities as
2964	2964	15 appropriate.
2965	2965	16 (N) The Agency shall establish the terms, conditions,
2966	2966	17 and program requirements for photovoltaic community
2967	2967	18 renewable generation projects with a goal to expand access
2968	2968	19 to a broader group of energy consumers, to ensure robust
2969	2969	20 participation opportunities for residential and small
2970	2970	21 commercial customers and those who cannot install
2971	2971	22 renewable energy on their own properties. Subject to
2972	2972	23 reasonable limitations, any plan approved by the
2973	2973	24 Commission shall allow subscriptions to community
2974	2974	25 renewable generation projects to be portable and
2975	2975	26 transferable. For purposes of this subparagraph (N),
2976	2976
2977	2977
2978	2978
2979	2979
2980	2980
2981	2981	HB2205 - 82 - LRB103 28438 AMQ 54818 b
2982	2982
2983	2983
2984	2984	HB2205- 83 -LRB103 28438 AMQ 54818 b HB2205 - 83 - LRB103 28438 AMQ 54818 b
2985	2985	HB2205 - 83 - LRB103 28438 AMQ 54818 b
2986	2986	1 "portable" means that subscriptions may be retained by the
2987	2987	2 subscriber even if the subscriber relocates or changes its
2988	2988	3 address within the same utility service territory; and
2989	2989	4 "transferable" means that a subscriber may assign or sell
2990	2990	5 subscriptions to another person within the same utility
2991	2991	6 service territory.
2992	2992	7 Through the development of its long-term renewable
2993	2993	8 resources procurement plan, the Agency may consider
2994	2994	9 whether community renewable generation projects utilizing
2995	2995	10 technologies other than photovoltaics should be supported
2996	2996	11 through State-administered incentive funding, and may
2997	2997	12 issue requests for information to gauge market demand.
2998	2998	13 Electric utilities shall provide a monetary credit to
2999	2999	14 a subscriber's subsequent bill for service for the
3000	3000	15 proportional output of a community renewable generation
3001	3001	16 project attributable to that subscriber as specified in
3002	3002	17 Section 16-107.5 of the Public Utilities Act.
3003	3003	18 The Agency shall purchase renewable energy credits
3004	3004	19 from subscribed shares of photovoltaic community renewable
3005	3005	20 generation projects through the Adjustable Block program
3006	3006	21 described in subparagraph (K) of this paragraph (1) or
3007	3007	22 through the Illinois Solar for All Program described in
3008	3008	23 Section 1-56 of this Act. The electric utility shall
3009	3009	24 purchase any unsubscribed energy from community renewable
3010	3010	25 generation projects that are Qualifying Facilities ("QF")
3011	3011	26 under the electric utility's tariff for purchasing the
3012	3012
3013	3013
3014	3014
3015	3015
3016	3016
3017	3017	HB2205 - 83 - LRB103 28438 AMQ 54818 b
3018	3018
3019	3019
3020	3020	HB2205- 84 -LRB103 28438 AMQ 54818 b HB2205 - 84 - LRB103 28438 AMQ 54818 b
3021	3021	HB2205 - 84 - LRB103 28438 AMQ 54818 b
3022	3022	1 output from QFs under Public Utilities Regulatory Policies
3023	3023	2 Act of 1978.
3024	3024	3 The owners of and any subscribers to a community
3025	3025	4 renewable generation project shall not be considered
3026	3026	5 public utilities or alternative retail electricity
3027	3027	6 suppliers under the Public Utilities Act solely as a
3028	3028	7 result of their interest in or subscription to a community
3029	3029	8 renewable generation project and shall not be required to
3030	3030	9 become an alternative retail electric supplier by
3031	3031	10 participating in a community renewable generation project
3032	3032	11 with a public utility.
3033	3033	12 (O) For the delivery year beginning June 1, 2018, the
3034	3034	13 long-term renewable resources procurement plan required by
3035	3035	14 this subsection (c) shall provide for the Agency to
3036	3036	15 procure contracts to continue offering the Illinois Solar
3037	3037	16 for All Program described in subsection (b) of Section
3038	3038	17 1-56 of this Act, and the contracts approved by the
3039	3039	18 Commission shall be executed by the utilities that are
3040	3040	19 subject to this subsection (c). The long-term renewable
3041	3041	20 resources procurement plan shall allocate up to
3042	3042	21 $50,000,000 per delivery year to fund the programs, and
3043	3043	22 the plan shall determine the amount of funding to be
3044	3044	23 apportioned to the programs identified in subsection (b)
3045	3045	24 of Section 1-56 of this Act; provided that for the
3046	3046	25 delivery years beginning June 1, 2021, June 1, 2022, and
3047	3047	26 June 1, 2023, the long-term renewable resources
3048	3048
3049	3049
3050	3050
3051	3051
3052	3052
3053	3053	HB2205 - 84 - LRB103 28438 AMQ 54818 b
3054	3054
3055	3055
3056	3056	HB2205- 85 -LRB103 28438 AMQ 54818 b HB2205 - 85 - LRB103 28438 AMQ 54818 b
3057	3057	HB2205 - 85 - LRB103 28438 AMQ 54818 b
3058	3058	1 procurement plan may average the annual budgets over a
3059	3059	2 3-year period to account for program ramp-up. For the
3060	3060	3 delivery years beginning June 1, 2021, June 1, 2024, June
3061	3061	4 1, 2027, and June 1, 2030 and additional $10,000,000 shall
3062	3062	5 be provided to the Department of Commerce and Economic
3063	3063	6 Opportunity to implement the workforce development
3064	3064	7 programs and reporting as outlined in Section 16-108.12 of
3065	3065	8 the Public Utilities Act. In making the determinations
3066	3066	9 required under this subparagraph (O), the Commission shall
3067	3067	10 consider the experience and performance under the programs
3068	3068	11 and any evaluation reports. The Commission shall also
3069	3069	12 provide for an independent evaluation of those programs on
3070	3070	13 a periodic basis that are funded under this subparagraph
3071	3071	14 (O).
3072	3072	15 (P) All programs and procurements under this
3073	3073	16 subsection (c) shall be designed to encourage
3074	3074	17 participating projects to use a diverse and equitable
3075	3075	18 workforce and a diverse set of contractors, including
3076	3076	19 minority-owned businesses, disadvantaged businesses,
3077	3077	20 trade unions, graduates of any workforce training programs
3078	3078	21 administered under this Act, and small businesses.
3079	3079	22 The Agency shall develop a method to optimize
3080	3080	23 procurement of renewable energy credits from proposed
3081	3081	24 utility-scale projects that are located in communities
3082	3082	25 eligible to receive Energy Transition Community Grants
3083	3083	26 pursuant to Section 10-20 of the Energy Community
3084	3084
3085	3085
3086	3086
3087	3087
3088	3088
3089	3089	HB2205 - 85 - LRB103 28438 AMQ 54818 b
3090	3090
3091	3091
3092	3092	HB2205- 86 -LRB103 28438 AMQ 54818 b HB2205 - 86 - LRB103 28438 AMQ 54818 b
3093	3093	HB2205 - 86 - LRB103 28438 AMQ 54818 b
3094	3094	1 Reinvestment Act. If this requirement conflicts with other
3095	3095	2 provisions of law or the Agency determines that full
3096	3096	3 compliance with the requirements of this subparagraph (P)
3097	3097	4 would be unreasonably costly or administratively
3098	3098	5 impractical, the Agency is to propose alternative
3099	3099	6 approaches to achieve development of renewable energy
3100	3100	7 resources in communities eligible to receive Energy
3101	3101	8 Transition Community Grants pursuant to Section 10-20 of
3102	3102	9 the Energy Community Reinvestment Act or seek an exemption
3103	3103	10 from this requirement from the Commission.
3104	3104	11 (Q) Each facility listed in subitems (i) through
3105	3105	12 (viii) of item (1) of this subparagraph (Q) for which a
3106	3106	13 renewable energy credit delivery contract is signed after
3107	3107	14 the effective date of this amendatory Act of the 102nd
3108	3108	15 General Assembly is subject to the following requirements
3109	3109	16 through the Agency's long-term renewable resources
3110	3110	17 procurement plan:
3111	3111	18 (1) Each facility shall be subject to the
3112	3112	19 prevailing wage requirements included in the
3113	3113	20 Prevailing Wage Act. The Agency shall require
3114	3114	21 verification that all construction performed on the
3115	3115	22 facility by the renewable energy credit delivery
3116	3116	23 contract holder, its contractors, or its
3117	3117	24 subcontractors relating to construction of the
3118	3118	25 facility is performed by construction employees
3119	3119	26 receiving an amount for that work equal to or greater
3120	3120
3121	3121
3122	3122
3123	3123
3124	3124
3125	3125	HB2205 - 86 - LRB103 28438 AMQ 54818 b
3126	3126
3127	3127
3128	3128	HB2205- 87 -LRB103 28438 AMQ 54818 b HB2205 - 87 - LRB103 28438 AMQ 54818 b
3129	3129	HB2205 - 87 - LRB103 28438 AMQ 54818 b
3130	3130	1 than the general prevailing rate, as that term is
3131	3131	2 defined in Section 3 of the Prevailing Wage Act. For
3132	3132	3 purposes of this item (1), "house of worship" means
3133	3133	4 property that is both (1) used exclusively by a
3134	3134	5 religious society or body of persons as a place for
3135	3135	6 religious exercise or religious worship and (2)
3136	3136	7 recognized as exempt from taxation pursuant to Section
3137	3137	8 15-40 of the Property Tax Code. This item (1) shall
3138	3138	9 apply to any the following:
3139	3139	10 (i) all new utility-scale wind projects;
3140	3140	11 (ii) all new utility-scale photovoltaic
3141	3141	12 projects;
3142	3142	13 (iii) all new brownfield photovoltaic
3143	3143	14 projects;
3144	3144	15 (iv) all new photovoltaic community renewable
3145	3145	16 energy facilities that qualify for item (iii) of
3146	3146	17 subparagraph (K) of this paragraph (1);
3147	3147	18 (v) all new community driven community
3148	3148	19 photovoltaic projects that qualify for item (v) of
3149	3149	20 subparagraph (K) of this paragraph (1);
3150	3150	21 (vi) all new photovoltaic distributed
3151	3151	22 renewable energy generation devices on schools
3152	3152	23 that qualify for item (iv) of subparagraph (K) of
3153	3153	24 this paragraph (1);
3154	3154	25 (vii) all new photovoltaic distributed
3155	3155	26 renewable energy generation devices that (1)
3156	3156
3157	3157
3158	3158
3159	3159
3160	3160
3161	3161	HB2205 - 87 - LRB103 28438 AMQ 54818 b
3162	3162
3163	3163
3164	3164	HB2205- 88 -LRB103 28438 AMQ 54818 b HB2205 - 88 - LRB103 28438 AMQ 54818 b
3165	3165	HB2205 - 88 - LRB103 28438 AMQ 54818 b
3166	3166	1 qualify for item (i) of subparagraph (K) of this
3167	3167	2 paragraph (1); (2) are not projects that serve
3168	3168	3 single-family or multi-family residential
3169	3169	4 buildings; and (3) are not houses of worship where
3170	3170	5 the aggregate capacity including collocated
3171	3171	6 projects would not exceed 100 kilowatts;
3172	3172	7 (viii) all new photovoltaic distributed
3173	3173	8 renewable energy generation devices that (1)
3174	3174	9 qualify for item (ii) of subparagraph (K) of this
3175	3175	10 paragraph (1); (2) are not projects that serve
3176	3176	11 single-family or multi-family residential
3177	3177	12 buildings; and (3) are not houses of worship where
3178	3178	13 the aggregate capacity including collocated
3179	3179	14 projects would not exceed 100 kilowatts.
3180	3180	15 (2) Renewable energy credits procured from new
3181	3181	16 utility-scale wind projects, new utility-scale solar
3182	3182	17 projects, and new brownfield solar projects pursuant
3183	3183	18 to Agency procurement events occurring after the
3184	3184	19 effective date of this amendatory Act of the 102nd
3185	3185	20 General Assembly must be from facilities built by
3186	3186	21 general contractors that must enter into a project
3187	3187	22 labor agreement, as defined by this Act, prior to
3188	3188	23 construction. The project labor agreement shall be
3189	3189	24 filed with the Director in accordance with procedures
3190	3190	25 established by the Agency through its long-term
3191	3191	26 renewable resources procurement plan. Any information
3192	3192
3193	3193
3194	3194
3195	3195
3196	3196
3197	3197	HB2205 - 88 - LRB103 28438 AMQ 54818 b
3198	3198
3199	3199
3200	3200	HB2205- 89 -LRB103 28438 AMQ 54818 b HB2205 - 89 - LRB103 28438 AMQ 54818 b
3201	3201	HB2205 - 89 - LRB103 28438 AMQ 54818 b
3202	3202	1 submitted to the Agency in this item (2) shall be
3203	3203	2 considered commercially sensitive information. At a
3204	3204	3 minimum, the project labor agreement must provide the
3205	3205	4 names, addresses, and occupations of the owner of the
3206	3206	5 plant and the individuals representing the labor
3207	3207	6 organization employees participating in the project
3208	3208	7 labor agreement consistent with the Project Labor
3209	3209	8 Agreements Act. The agreement must also specify the
3210	3210	9 terms and conditions as defined by this Act.
3211	3211	10 (3) It is the intent of this Section to ensure that
3212	3212	11 economic development occurs across Illinois
3213	3213	12 communities, that emerging businesses may grow, and
3214	3214	13 that there is improved access to the clean energy
3215	3215	14 economy by persons who have greater economic burdens
3216	3216	15 to success. The Agency shall take into consideration
3217	3217	16 the unique cost of compliance of this subparagraph (Q)
3218	3218	17 that might be borne by equity eligible contractors,
3219	3219	18 shall include such costs when determining the price of
3220	3220	19 renewable energy credits in the Adjustable Block
3221	3221	20 program, and shall take such costs into consideration
3222	3222	21 in a nondiscriminatory manner when comparing bids for
3223	3223	22 competitive procurements. The Agency shall consider
3224	3224	23 costs associated with compliance whether in the
3225	3225	24 development, financing, or construction of projects.
3226	3226	25 The Agency shall periodically review the assumptions
3227	3227	26 in these costs and may adjust prices, in compliance
3228	3228
3229	3229
3230	3230
3231	3231
3232	3232
3233	3233	HB2205 - 89 - LRB103 28438 AMQ 54818 b
3234	3234
3235	3235
3236	3236	HB2205- 90 -LRB103 28438 AMQ 54818 b HB2205 - 90 - LRB103 28438 AMQ 54818 b
3237	3237	HB2205 - 90 - LRB103 28438 AMQ 54818 b
3238	3238	1 with subparagraph (M) of this paragraph (1).
3239	3239	2 (R) In its long-term renewable resources procurement
3240	3240	3 plan, the Agency shall establish a self-direct renewable
3241	3241	4 portfolio standard compliance program for eligible
3242	3242	5 self-direct customers that purchase renewable energy
3243	3243	6 credits from utility-scale wind and solar projects through
3244	3244	7 long-term agreements for purchase of renewable energy
3245	3245	8 credits as described in this Section. Such long-term
3246	3246	9 agreements may include the purchase of energy or other
3247	3247	10 products on a physical or financial basis and may involve
3248	3248	11 an alternative retail electric supplier as defined in
3249	3249	12 Section 16-102 of the Public Utilities Act. This program
3250	3250	13 shall take effect in the delivery year commencing June 1,
3251	3251	14 2023.
3252	3252	15 (1) For the purposes of this subparagraph:
3253	3253	16 "Eligible self-direct customer" means any retail
3254	3254	17 customers of an electric utility that serves 3,000,000
3255	3255	18 or more retail customers in the State and whose total
3256	3256	19 highest 30-minute demand was more than 10,000
3257	3257	20 kilowatts, or any retail customers of an electric
3258	3258	21 utility that serves less than 3,000,000 retail
3259	3259	22 customers but more than 500,000 retail customers in
3260	3260	23 the State and whose total highest 15-minute demand was
3261	3261	24 more than 10,000 kilowatts.
3262	3262	25 "Retail customer" has the meaning set forth in
3263	3263	26 Section 16-102 of the Public Utilities Act and
3264	3264
3265	3265
3266	3266
3267	3267
3268	3268
3269	3269	HB2205 - 90 - LRB103 28438 AMQ 54818 b
3270	3270
3271	3271
3272	3272	HB2205- 91 -LRB103 28438 AMQ 54818 b HB2205 - 91 - LRB103 28438 AMQ 54818 b
3273	3273	HB2205 - 91 - LRB103 28438 AMQ 54818 b
3274	3274	1 multiple retail customer accounts under the same
3275	3275	2 corporate parent may aggregate their account demands
3276	3276	3 to meet the 10,000 kilowatt threshold. The criteria
3277	3277	4 for determining whether this subparagraph is
3278	3278	5 applicable to a retail customer shall be based on the
3279	3279	6 12 consecutive billing periods prior to the start of
3280	3280	7 the year in which the application is filed.
3281	3281	8 (2) For renewable energy credits to count toward
3282	3282	9 the self-direct renewable portfolio standard
3283	3283	10 compliance program, they must:
3284	3284	11 (i) qualify as renewable energy credits as
3285	3285	12 defined in Section 1-10 of this Act;
3286	3286	13 (ii) be sourced from one or more renewable
3287	3287	14 energy generating facilities that comply with the
3288	3288	15 geographic requirements as set forth in
3289	3289	16 subparagraph (I) of paragraph (1) of subsection
3290	3290	17 (c) as interpreted through the Agency's long-term
3291	3291	18 renewable resources procurement plan, or, where
3292	3292	19 applicable, the geographic requirements that
3293	3293	20 governed utility-scale renewable energy credits at
3294	3294	21 the time the eligible self-direct customer entered
3295	3295	22 into the applicable renewable energy credit
3296	3296	23 purchase agreement;
3297	3297	24 (iii) be procured through long-term contracts
3298	3298	25 with term lengths of at least 10 years either
3299	3299	26 directly with the renewable energy generating
3300	3300
3301	3301
3302	3302
3303	3303
3304	3304
3305	3305	HB2205 - 91 - LRB103 28438 AMQ 54818 b
3306	3306
3307	3307
3308	3308	HB2205- 92 -LRB103 28438 AMQ 54818 b HB2205 - 92 - LRB103 28438 AMQ 54818 b
3309	3309	HB2205 - 92 - LRB103 28438 AMQ 54818 b
3310	3310	1 facility or through a bundled power purchase
3311	3311	2 agreement, a virtual power purchase agreement, an
3312	3312	3 agreement between the renewable generating
3313	3313	4 facility, an alternative retail electric supplier,
3314	3314	5 and the customer, or such other structure as is
3315	3315	6 permissible under this subparagraph (R);
3316	3316	7 (iv) be equivalent in volume to at least 40%
3317	3317	8 of the eligible self-direct customer's usage,
3318	3318	9 determined annually by the eligible self-direct
3319	3319	10 customer's usage during the previous delivery
3320	3320	11 year, measured to the nearest megawatt-hour;
3321	3321	12 (v) be retired by or on behalf of the large
3322	3322	13 energy customer;
3323	3323	14 (vi) be sourced from new utility-scale wind
3324	3324	15 projects or new utility-scale solar projects; and
3325	3325	16 (vii) if the contracts for renewable energy
3326	3326	17 credits are entered into after the effective date
3327	3327	18 of this amendatory Act of the 102nd General
3328	3328	19 Assembly, the new utility-scale wind projects or
3329	3329	20 new utility-scale solar projects must comply with
3330	3330	21 the requirements established in subparagraphs (P)
3331	3331	22 and (Q) of paragraph (1) of this subsection (c)
3332	3332	23 and subsection (c-10).
3333	3333	24 (3) The self-direct renewable portfolio standard
3334	3334	25 compliance program shall be designed to allow eligible
3335	3335	26 self-direct customers to procure new renewable energy
3336	3336
3337	3337
3338	3338
3339	3339
3340	3340
3341	3341	HB2205 - 92 - LRB103 28438 AMQ 54818 b
3342	3342
3343	3343
3344	3344	HB2205- 93 -LRB103 28438 AMQ 54818 b HB2205 - 93 - LRB103 28438 AMQ 54818 b
3345	3345	HB2205 - 93 - LRB103 28438 AMQ 54818 b
3346	3346	1 credits from new utility-scale wind projects or new
3347	3347	2 utility-scale photovoltaic projects. The Agency shall
3348	3348	3 annually determine the amount of utility-scale
3349	3349	4 renewable energy credits it will include each year
3350	3350	5 from the self-direct renewable portfolio standard
3351	3351	6 compliance program, subject to receiving qualifying
3352	3352	7 applications. In making this determination, the Agency
3353	3353	8 shall evaluate publicly available analyses and studies
3354	3354	9 of the potential market size for utility-scale
3355	3355	10 renewable energy long-term purchase agreements by
3356	3356	11 commercial and industrial energy customers and make
3357	3357	12 that report publicly available. If demand for
3358	3358	13 participation in the self-direct renewable portfolio
3359	3359	14 standard compliance program exceeds availability, the
3360	3360	15 Agency shall ensure participation is evenly split
3361	3361	16 between commercial and industrial users to the extent
3362	3362	17 there is sufficient demand from both customer classes.
3363	3363	18 Each renewable energy credit procured pursuant to this
3364	3364	19 subparagraph (R) by a self-direct customer shall
3365	3365	20 reduce the total volume of renewable energy credits
3366	3366	21 the Agency is otherwise required to procure from new
3367	3367	22 utility-scale projects pursuant to subparagraph (C) of
3368	3368	23 paragraph (1) of this subsection (c) on behalf of
3369	3369	24 contracting utilities where the eligible self-direct
3370	3370	25 customer is located. The self-direct customer shall
3371	3371	26 file an annual compliance report with the Agency
3372	3372
3373	3373
3374	3374
3375	3375
3376	3376
3377	3377	HB2205 - 93 - LRB103 28438 AMQ 54818 b
3378	3378
3379	3379
3380	3380	HB2205- 94 -LRB103 28438 AMQ 54818 b HB2205 - 94 - LRB103 28438 AMQ 54818 b
3381	3381	HB2205 - 94 - LRB103 28438 AMQ 54818 b
3382	3382	1 pursuant to terms established by the Agency through
3383	3383	2 its long-term renewable resources procurement plan to
3384	3384	3 be eligible for participation in this program.
3385	3385	4 Customers must provide the Agency with their most
3386	3386	5 recent electricity billing statements or other
3387	3387	6 information deemed necessary by the Agency to
3388	3388	7 demonstrate they are an eligible self-direct customer.
3389	3389	8 (4) The Commission shall approve a reduction in
3390	3390	9 the volumetric charges collected pursuant to Section
3391	3391	10 16-108 of the Public Utilities Act for approved
3392	3392	11 eligible self-direct customers equivalent to the
3393	3393	12 anticipated cost of renewable energy credit deliveries
3394	3394	13 under contracts for new utility-scale wind and new
3395	3395	14 utility-scale solar entered for each delivery year
3396	3396	15 after the large energy customer begins retiring
3397	3397	16 eligible new utility scale renewable energy credits
3398	3398	17 for self-compliance. The self-direct credit amount
3399	3399	18 shall be determined annually and is equal to the
3400	3400	19 estimated portion of the cost authorized by
3401	3401	20 subparagraph (E) of paragraph (1) of this subsection
3402	3402	21 (c) that supported the annual procurement of
3403	3403	22 utility-scale renewable energy credits in the prior
3404	3404	23 delivery year using a methodology described in the
3405	3405	24 long-term renewable resources procurement plan,
3406	3406	25 expressed on a per kilowatthour basis, and does not
3407	3407	26 include (i) costs associated with any contracts
3408	3408
3409	3409
3410	3410
3411	3411
3412	3412
3413	3413	HB2205 - 94 - LRB103 28438 AMQ 54818 b
3414	3414
3415	3415
3416	3416	HB2205- 95 -LRB103 28438 AMQ 54818 b HB2205 - 95 - LRB103 28438 AMQ 54818 b
3417	3417	HB2205 - 95 - LRB103 28438 AMQ 54818 b
3418	3418	1 entered into before the delivery year in which the
3419	3419	2 customer files the initial compliance report to be
3420	3420	3 eligible for participation in the self-direct program,
3421	3421	4 and (ii) costs associated with procuring renewable
3422	3422	5 energy credits through existing and future contracts
3423	3423	6 through the Adjustable Block Program, subsection (c-5)
3424	3424	7 of this Section 1-75, and the Solar for All Program.
3425	3425	8 The Agency shall assist the Commission in determining
3426	3426	9 the current and future costs. The Agency must
3427	3427	10 determine the self-direct credit amount for new and
3428	3428	11 existing eligible self-direct customers and submit
3429	3429	12 this to the Commission in an annual compliance filing.
3430	3430	13 The Commission must approve the self-direct credit
3431	3431	14 amount by June 1, 2023 and June 1 of each delivery year
3432	3432	15 thereafter.
3433	3433	16 (5) Customers described in this subparagraph (R)
3434	3434	17 shall apply, on a form developed by the Agency, to the
3435	3435	18 Agency to be designated as a self-direct eligible
3436	3436	19 customer. Once the Agency determines that a
3437	3437	20 self-direct customer is eligible for participation in
3438	3438	21 the program, the self-direct customer will remain
3439	3439	22 eligible until the end of the term of the contract.
3440	3440	23 Thereafter, application may be made not less than 12
3441	3441	24 months before the filing date of the long-term
3442	3442	25 renewable resources procurement plan described in this
3443	3443	26 Act. At a minimum, such application shall contain the
3444	3444
3445	3445
3446	3446
3447	3447
3448	3448
3449	3449	HB2205 - 95 - LRB103 28438 AMQ 54818 b
3450	3450
3451	3451
3452	3452	HB2205- 96 -LRB103 28438 AMQ 54818 b HB2205 - 96 - LRB103 28438 AMQ 54818 b
3453	3453	HB2205 - 96 - LRB103 28438 AMQ 54818 b
3454	3454	1 following:
3455	3455	2 (i) the customer's certification that, at the
3456	3456	3 time of the customer's application, the customer
3457	3457	4 qualifies to be a self-direct eligible customer,
3458	3458	5 including documents demonstrating that
3459	3459	6 qualification;
3460	3460	7 (ii) the customer's certification that the
3461	3461	8 customer has entered into or will enter into by
3462	3462	9 the beginning of the applicable procurement year,
3463	3463	10 one or more bilateral contracts for new wind
3464	3464	11 projects or new photovoltaic projects, including
3465	3465	12 supporting documentation;
3466	3466	13 (iii) certification that the contract or
3467	3467	14 contracts for new renewable energy resources are
3468	3468	15 long-term contracts with term lengths of at least
3469	3469	16 10 years, including supporting documentation;
3470	3470	17 (iv) certification of the quantities of
3471	3471	18 renewable energy credits that the customer will
3472	3472	19 purchase each year under such contract or
3473	3473	20 contracts, including supporting documentation;
3474	3474	21 (v) proof that the contract is sufficient to
3475	3475	22 produce renewable energy credits to be equivalent
3476	3476	23 in volume to at least 40% of the large energy
3477	3477	24 customer's usage from the previous delivery year,
3478	3478	25 measured to the nearest megawatt-hour; and
3479	3479	26 (vi) certification that the customer intends
3480	3480
3481	3481
3482	3482
3483	3483
3484	3484
3485	3485	HB2205 - 96 - LRB103 28438 AMQ 54818 b
3486	3486
3487	3487
3488	3488	HB2205- 97 -LRB103 28438 AMQ 54818 b HB2205 - 97 - LRB103 28438 AMQ 54818 b
3489	3489	HB2205 - 97 - LRB103 28438 AMQ 54818 b
3490	3490	1 to maintain the contract for the duration of the
3491	3491	2 length of the contract.
3492	3492	3 (6) If a customer receives the self-direct credit
3493	3493	4 but fails to properly procure and retire renewable
3494	3494	5 energy credits as required under this subparagraph
3495	3495	6 (R), the Commission, on petition from the Agency and
3496	3496	7 after notice and hearing, may direct such customer's
3497	3497	8 utility to recover the cost of the wrongfully received
3498	3498	9 self-direct credits plus interest through an adder to
3499	3499	10 charges assessed pursuant to Section 16-108 of the
3500	3500	11 Public Utilities Act. Self-direct customers who
3501	3501	12 knowingly fail to properly procure and retire
3502	3502	13 renewable energy credits and do not notify the Agency
3503	3503	14 are ineligible for continued participation in the
3504	3504	15 self-direct renewable portfolio standard compliance
3505	3505	16 program.
3506	3506	17 (2) (Blank).
3507	3507	18 (3) (Blank).
3508	3508	19 (4) The electric utility shall retire all renewable
3509	3509	20 energy credits used to comply with the standard.
3510	3510	21 (5) Beginning with the 2010 delivery year and ending
3511	3511	22 June 1, 2017, an electric utility subject to this
3512	3512	23 subsection (c) shall apply the lesser of the maximum
3513	3513	24 alternative compliance payment rate or the most recent
3514	3514	25 estimated alternative compliance payment rate for its
3515	3515	26 service territory for the corresponding compliance period,
3516	3516
3517	3517
3518	3518
3519	3519
3520	3520
3521	3521	HB2205 - 97 - LRB103 28438 AMQ 54818 b
3522	3522
3523	3523
3524	3524	HB2205- 98 -LRB103 28438 AMQ 54818 b HB2205 - 98 - LRB103 28438 AMQ 54818 b
3525	3525	HB2205 - 98 - LRB103 28438 AMQ 54818 b
3526	3526	1 established pursuant to subsection (d) of Section 16-115D
3527	3527	2 of the Public Utilities Act to its retail customers that
3528	3528	3 take service pursuant to the electric utility's hourly
3529	3529	4 pricing tariff or tariffs. The electric utility shall
3530	3530	5 retain all amounts collected as a result of the
3531	3531	6 application of the alternative compliance payment rate or
3532	3532	7 rates to such customers, and, beginning in 2011, the
3533	3533	8 utility shall include in the information provided under
3534	3534	9 item (1) of subsection (d) of Section 16-111.5 of the
3535	3535	10 Public Utilities Act the amounts collected under the
3536	3536	11 alternative compliance payment rate or rates for the prior
3537	3537	12 year ending May 31. Notwithstanding any limitation on the
3538	3538	13 procurement of renewable energy resources imposed by item
3539	3539	14 (2) of this subsection (c), the Agency shall increase its
3540	3540	15 spending on the purchase of renewable energy resources to
3541	3541	16 be procured by the electric utility for the next plan year
3542	3542	17 by an amount equal to the amounts collected by the utility
3543	3543	18 under the alternative compliance payment rate or rates in
3544	3544	19 the prior year ending May 31.
3545	3545	20 (6) The electric utility shall be entitled to recover
3546	3546	21 all of its costs associated with the procurement of
3547	3547	22 renewable energy credits under plans approved under this
3548	3548	23 Section and Section 16-111.5 of the Public Utilities Act.
3549	3549	24 These costs shall include associated reasonable expenses
3550	3550	25 for implementing the procurement programs, including, but
3551	3551	26 not limited to, the costs of administering and evaluating
3552	3552
3553	3553
3554	3554
3555	3555
3556	3556
3557	3557	HB2205 - 98 - LRB103 28438 AMQ 54818 b
3558	3558
3559	3559
3560	3560	HB2205- 99 -LRB103 28438 AMQ 54818 b HB2205 - 99 - LRB103 28438 AMQ 54818 b
3561	3561	HB2205 - 99 - LRB103 28438 AMQ 54818 b
3562	3562	1 the Adjustable Block program, through an automatic
3563	3563	2 adjustment clause tariff in accordance with subsection (k)
3564	3564	3 of Section 16-108 of the Public Utilities Act.
3565	3565	4 (7) Renewable energy credits procured from new
3566	3566	5 photovoltaic projects or new distributed renewable energy
3567	3567	6 generation devices under this Section after June 1, 2017
3568	3568	7 (the effective date of Public Act 99-906) must be procured
3569	3569	8 from devices installed by a qualified person in compliance
3570	3570	9 with the requirements of Section 16-128A of the Public
3571	3571	10 Utilities Act and any rules or regulations adopted
3572	3572	11 thereunder.
3573	3573	12 In meeting the renewable energy requirements of this
3574	3574	13 subsection (c), to the extent feasible and consistent with
3575	3575	14 State and federal law, the renewable energy credit
3576	3576	15 procurements, Adjustable Block solar program, and
3577	3577	16 community renewable generation program shall provide
3578	3578	17 employment opportunities for all segments of the
3579	3579	18 population and workforce, including minority-owned and
3580	3580	19 female-owned business enterprises, and shall not,
3581	3581	20 consistent with State and federal law, discriminate based
3582	3582	21 on race or socioeconomic status.
3583	3583	22 (c-5) Procurement of renewable energy credits from new
3584	3584	23 renewable energy facilities installed at or adjacent to the
3585	3585	24 sites of electric generating facilities that burn or burned
3586	3586	25 coal as their primary fuel source.
3587	3587	26 (1) In addition to the procurement of renewable energy
3588	3588
3589	3589
3590	3590
3591	3591
3592	3592
3593	3593	HB2205 - 99 - LRB103 28438 AMQ 54818 b
3594	3594
3595	3595
3596	3596	HB2205- 100 -LRB103 28438 AMQ 54818 b HB2205 - 100 - LRB103 28438 AMQ 54818 b
3597	3597	HB2205 - 100 - LRB103 28438 AMQ 54818 b
3598	3598	1 credits pursuant to long-term renewable resources
3599	3599	2 procurement plans in accordance with subsection (c) of
3600	3600	3 this Section and Section 16-111.5 of the Public Utilities
3601	3601	4 Act, the Agency shall conduct procurement events in
3602	3602	5 accordance with this subsection (c-5) for the procurement
3603	3603	6 by electric utilities that served more than 300,000 retail
3604	3604	7 customers in this State as of January 1, 2019 of renewable
3605	3605	8 energy credits from new renewable energy facilities to be
3606	3606	9 installed at or adjacent to the sites of electric
3607	3607	10 generating facilities that, as of January 1, 2016, burned
3608	3608	11 coal as their primary fuel source and meet the other
3609	3609	12 criteria specified in this subsection (c-5). For purposes
3610	3610	13 of this subsection (c-5), "new renewable energy facility"
3611	3611	14 means a new utility-scale solar project as defined in this
3612	3612	15 Section 1-75. The renewable energy credits procured
3613	3613	16 pursuant to this subsection (c-5) may be included or
3614	3614	17 counted for purposes of compliance with the amounts of
3615	3615	18 renewable energy credits required to be procured pursuant
3616	3616	19 to subsection (c) of this Section to the extent that there
3617	3617	20 are otherwise shortfalls in compliance with such
3618	3618	21 requirements. The procurement of renewable energy credits
3619	3619	22 by electric utilities pursuant to this subsection (c-5)
3620	3620	23 shall be funded solely by revenues collected from the Coal
3621	3621	24 to Solar and Energy Storage Initiative Charge provided for
3622	3622	25 in this subsection (c-5) and subsection (i-5) of Section
3623	3623	26 16-108 of the Public Utilities Act, shall not be funded by
3624	3624
3625	3625
3626	3626
3627	3627
3628	3628
3629	3629	HB2205 - 100 - LRB103 28438 AMQ 54818 b
3630	3630
3631	3631
3632	3632	HB2205- 101 -LRB103 28438 AMQ 54818 b HB2205 - 101 - LRB103 28438 AMQ 54818 b
3633	3633	HB2205 - 101 - LRB103 28438 AMQ 54818 b
3634	3634	1 revenues collected through any of the other funding
3635	3635	2 mechanisms provided for in subsection (c) of this Section,
3636	3636	3 and shall not be subject to the limitation imposed by
3637	3637	4 subsection (c) on charges to retail customers for costs to
3638	3638	5 procure renewable energy resources pursuant to subsection
3639	3639	6 (c), and shall not be subject to any other requirements or
3640	3640	7 limitations of subsection (c).
3641	3641	8 (2) The Agency shall conduct 2 procurement events to
3642	3642	9 select owners of electric generating facilities meeting
3643	3643	10 the eligibility criteria specified in this subsection
3644	3644	11 (c-5) to enter into long-term contracts to sell renewable
3645	3645	12 energy credits to electric utilities serving more than
3646	3646	13 300,000 retail customers in this State as of January 1,
3647	3647	14 2019. The first procurement event shall be conducted no
3648	3648	15 later than March 31, 2022, unless the Agency elects to
3649	3649	16 delay it, until no later than May 1, 2022, due to its
3650	3650	17 overall volume of work, and shall be to select owners of
3651	3651	18 electric generating facilities located in this State and
3652	3652	19 south of federal Interstate Highway 80 that meet the
3653	3653	20 eligibility criteria specified in this subsection (c-5).
3654	3654	21 The second procurement event shall be conducted no sooner
3655	3655	22 than September 30, 2022 and no later than October 31, 2022
3656	3656	23 and shall be to select owners of electric generating
3657	3657	24 facilities located anywhere in this State that meet the
3658	3658	25 eligibility criteria specified in this subsection (c-5).
3659	3659	26 The Agency shall establish and announce a time period,
3660	3660
3661	3661
3662	3662
3663	3663
3664	3664
3665	3665	HB2205 - 101 - LRB103 28438 AMQ 54818 b
3666	3666
3667	3667
3668	3668	HB2205- 102 -LRB103 28438 AMQ 54818 b HB2205 - 102 - LRB103 28438 AMQ 54818 b
3669	3669	HB2205 - 102 - LRB103 28438 AMQ 54818 b
3670	3670	1 which shall begin no later than 30 days prior to the
3671	3671	2 scheduled date for the procurement event, during which
3672	3672	3 applicants may submit applications to be selected as
3673	3673	4 suppliers of renewable energy credits pursuant to this
3674	3674	5 subsection (c-5). The eligibility criteria for selection
3675	3675	6 as a supplier of renewable energy credits pursuant to this
3676	3676	7 subsection (c-5) shall be as follows:
3677	3677	8 (A) The applicant owns an electric generating
3678	3678	9 facility located in this State that: (i) as of January
3679	3679	10 1, 2016, burned coal as its primary fuel to generate
3680	3680	11 electricity; and (ii) has, or had prior to retirement,
3681	3681	12 an electric generating capacity of at least 150
3682	3682	13 megawatts. The electric generating facility can be
3683	3683	14 either: (i) retired as of the date of the procurement
3684	3684	15 event; or (ii) still operating as of the date of the
3685	3685	16 procurement event.
3686	3686	17 (B) The applicant is not (i) an electric
3687	3687	18 cooperative as defined in Section 3-119 of the Public
3688	3688	19 Utilities Act, or (ii) an entity described in
3689	3689	20 subsection (b)(1) of Section 3-105 of the Public
3690	3690	21 Utilities Act, or an association or consortium of or
3691	3691	22 an entity owned by entities described in (i) or (ii);
3692	3692	23 and the coal-fueled electric generating facility was
3693	3693	24 at one time owned, in whole or in part, by a public
3694	3694	25 utility as defined in Section 3-105 of the Public
3695	3695	26 Utilities Act.
3696	3696
3697	3697
3698	3698
3699	3699
3700	3700
3701	3701	HB2205 - 102 - LRB103 28438 AMQ 54818 b
3702	3702
3703	3703
3704	3704	HB2205- 103 -LRB103 28438 AMQ 54818 b HB2205 - 103 - LRB103 28438 AMQ 54818 b
3705	3705	HB2205 - 103 - LRB103 28438 AMQ 54818 b
3706	3706	1 (C) If participating in the first procurement
3707	3707	2 event, the applicant proposes and commits to construct
3708	3708	3 and operate, at the site, and if necessary for
3709	3709	4 sufficient space on property adjacent to the existing
3710	3710	5 property, at which the electric generating facility
3711	3711	6 identified in paragraph (A) is located: (i) a new
3712	3712	7 renewable energy facility of at least 20 megawatts but
3713	3713	8 no more than 100 megawatts of electric generating
3714	3714	9 capacity, and (ii) an energy storage facility having a
3715	3715	10 storage capacity equal to at least 2 megawatts and at
3716	3716	11 most 10 megawatts. If participating in the second
3717	3717	12 procurement event, the applicant proposes and commits
3718	3718	13 to construct and operate, at the site, and if
3719	3719	14 necessary for sufficient space on property adjacent to
3720	3720	15 the existing property, at which the electric
3721	3721	16 generating facility identified in paragraph (A) is
3722	3722	17 located: (i) a new renewable energy facility of at
3723	3723	18 least 5 megawatts but no more than 20 megawatts of
3724	3724	19 electric generating capacity, and (ii) an energy
3725	3725	20 storage facility having a storage capacity equal to at
3726	3726	21 least 0.5 megawatts and at most one megawatt.
3727	3727	22 (D) The applicant agrees that the new renewable
3728	3728	23 energy facility and the energy storage facility will
3729	3729	24 be constructed or installed by a qualified entity or
3730	3730	25 entities in compliance with the requirements of
3731	3731	26 subsection (g) of Section 16-128A of the Public
3732	3732
3733	3733
3734	3734
3735	3735
3736	3736
3737	3737	HB2205 - 103 - LRB103 28438 AMQ 54818 b
3738	3738
3739	3739
3740	3740	HB2205- 104 -LRB103 28438 AMQ 54818 b HB2205 - 104 - LRB103 28438 AMQ 54818 b
3741	3741	HB2205 - 104 - LRB103 28438 AMQ 54818 b
3742	3742	1 Utilities Act and any rules adopted thereunder.
3743	3743	2 (E) The applicant agrees that personnel operating
3744	3744	3 the new renewable energy facility and the energy
3745	3745	4 storage facility will have the requisite skills,
3746	3746	5 knowledge, training, experience, and competence, which
3747	3747	6 may be demonstrated by completion or current
3748	3748	7 participation and ultimate completion by employees of
3749	3749	8 an accredited or otherwise recognized apprenticeship
3750	3750	9 program for the employee's particular craft, trade, or
3751	3751	10 skill, including through training and education
3752	3752	11 courses and opportunities offered by the owner to
3753	3753	12 employees of the coal-fueled electric generating
3754	3754	13 facility or by previous employment experience
3755	3755	14 performing the employee's particular work skill or
3756	3756	15 function.
3757	3757	16 (F) The applicant commits that not less than the
3758	3758	17 prevailing wage, as determined pursuant to the
3759	3759	18 Prevailing Wage Act, will be paid to the applicant's
3760	3760	19 employees engaged in construction activities
3761	3761	20 associated with the new renewable energy facility and
3762	3762	21 the new energy storage facility and to the employees
3763	3763	22 of applicant's contractors engaged in construction
3764	3764	23 activities associated with the new renewable energy
3765	3765	24 facility and the new energy storage facility, and
3766	3766	25 that, on or before the commercial operation date of
3767	3767	26 the new renewable energy facility, the applicant shall
3768	3768
3769	3769
3770	3770
3771	3771
3772	3772
3773	3773	HB2205 - 104 - LRB103 28438 AMQ 54818 b
3774	3774
3775	3775
3776	3776	HB2205- 105 -LRB103 28438 AMQ 54818 b HB2205 - 105 - LRB103 28438 AMQ 54818 b
3777	3777	HB2205 - 105 - LRB103 28438 AMQ 54818 b
3778	3778	1 file a report with the Agency certifying that the
3779	3779	2 requirements of this subparagraph (F) have been met.
3780	3780	3 (G) The applicant commits that if selected, it
3781	3781	4 will negotiate a project labor agreement for the
3782	3782	5 construction of the new renewable energy facility and
3783	3783	6 associated energy storage facility that includes
3784	3784	7 provisions requiring the parties to the agreement to
3785	3785	8 work together to establish diversity threshold
3786	3786	9 requirements and to ensure best efforts to meet
3787	3787	10 diversity targets, improve diversity at the applicable
3788	3788	11 job site, create diverse apprenticeship opportunities,
3789	3789	12 and create opportunities to employ former coal-fired
3790	3790	13 power plant workers.
3791	3791	14 (H) The applicant commits to enter into a contract
3792	3792	15 or contracts for the applicable duration to provide
3793	3793	16 specified numbers of renewable energy credits each
3794	3794	17 year from the new renewable energy facility to
3795	3795	18 electric utilities that served more than 300,000
3796	3796	19 retail customers in this State as of January 1, 2019,
3797	3797	20 at a price of $30 per renewable energy credit. The
3798	3798	21 price per renewable energy credit shall be fixed at
3799	3799	22 $30 for the applicable duration and the renewable
3800	3800	23 energy credits shall not be indexed renewable energy
3801	3801	24 credits as provided for in item (v) of subparagraph
3802	3802	25 (G) of paragraph (1) of subsection (c) of Section 1-75
3803	3803	26 of this Act. The applicable duration of each contract
3804	3804
3805	3805
3806	3806
3807	3807
3808	3808
3809	3809	HB2205 - 105 - LRB103 28438 AMQ 54818 b
3810	3810
3811	3811
3812	3812	HB2205- 106 -LRB103 28438 AMQ 54818 b HB2205 - 106 - LRB103 28438 AMQ 54818 b
3813	3813	HB2205 - 106 - LRB103 28438 AMQ 54818 b
3814	3814	1 shall be 20 years, unless the applicant is physically
3815	3815	2 interconnected to the PJM Interconnection, LLC
3816	3816	3 transmission grid and had a generating capacity of at
3817	3817	4 least 1,200 megawatts as of January 1, 2021, in which
3818	3818	5 case the applicable duration of the contract shall be
3819	3819	6 15 years.
3820	3820	7 (I) The applicant's application is certified by an
3821	3821	8 officer of the applicant and by an officer of the
3822	3822	9 applicant's ultimate parent company, if any.
3823	3823	10 (3) An applicant may submit applications to contract
3824	3824	11 to supply renewable energy credits from more than one new
3825	3825	12 renewable energy facility to be constructed at or adjacent
3826	3826	13 to one or more qualifying electric generating facilities
3827	3827	14 owned by the applicant. The Agency may select new
3828	3828	15 renewable energy facilities to be located at or adjacent
3829	3829	16 to the sites of more than one qualifying electric
3830	3830	17 generation facility owned by an applicant to contract with
3831	3831	18 electric utilities to supply renewable energy credits from
3832	3832	19 such facilities.
3833	3833	20 (4) The Agency shall assess fees to each applicant to
3834	3834	21 recover the Agency's costs incurred in receiving and
3835	3835	22 evaluating applications, conducting the procurement event,
3836	3836	23 developing contracts for sale, delivery and purchase of
3837	3837	24 renewable energy credits, and monitoring the
3838	3838	25 administration of such contracts, as provided for in this
3839	3839	26 subsection (c-5), including fees paid to a procurement
3840	3840
3841	3841
3842	3842
3843	3843
3844	3844
3845	3845	HB2205 - 106 - LRB103 28438 AMQ 54818 b
3846	3846
3847	3847
3848	3848	HB2205- 107 -LRB103 28438 AMQ 54818 b HB2205 - 107 - LRB103 28438 AMQ 54818 b
3849	3849	HB2205 - 107 - LRB103 28438 AMQ 54818 b
3850	3850	1 administrator retained by the Agency for one or more of
3851	3851	2 these purposes.
3852	3852	3 (5) The Agency shall select the applicants and the new
3853	3853	4 renewable energy facilities to contract with electric
3854	3854	5 utilities to supply renewable energy credits in accordance
3855	3855	6 with this subsection (c-5). In the first procurement
3856	3856	7 event, the Agency shall select applicants and new
3857	3857	8 renewable energy facilities to supply renewable energy
3858	3858	9 credits, at a price of $30 per renewable energy credit,
3859	3859	10 aggregating to no less than 400,000 renewable energy
3860	3860	11 credits per year for the applicable duration, assuming
3861	3861	12 sufficient qualifying applications to supply, in the
3862	3862	13 aggregate, at least that amount of renewable energy
3863	3863	14 credits per year; and not more than 580,000 renewable
3864	3864	15 energy credits per year for the applicable duration. In
3865	3865	16 the second procurement event, the Agency shall select
3866	3866	17 applicants and new renewable energy facilities to supply
3867	3867	18 renewable energy credits, at a price of $30 per renewable
3868	3868	19 energy credit, aggregating to no more than 625,000
3869	3869	20 renewable energy credits per year less the amount of
3870	3870	21 renewable energy credits each year contracted for as a
3871	3871	22 result of the first procurement event, for the applicable
3872	3872	23 durations. The number of renewable energy credits to be
3873	3873	24 procured as specified in this paragraph (5) shall not be
3874	3874	25 reduced based on renewable energy credits procured in the
3875	3875	26 self-direct renewable energy credit compliance program
3876	3876
3877	3877
3878	3878
3879	3879
3880	3880
3881	3881	HB2205 - 107 - LRB103 28438 AMQ 54818 b
3882	3882
3883	3883
3884	3884	HB2205- 108 -LRB103 28438 AMQ 54818 b HB2205 - 108 - LRB103 28438 AMQ 54818 b
3885	3885	HB2205 - 108 - LRB103 28438 AMQ 54818 b
3886	3886	1 established pursuant to subparagraph (R) of paragraph (1)
3887	3887	2 of subsection (c) of Section 1-75.
3888	3888	3 (6) The obligation to purchase renewable energy
3889	3889	4 credits from the applicants and their new renewable energy
3890	3890	5 facilities selected by the Agency shall be allocated to
3891	3891	6 the electric utilities based on their respective
3892	3892	7 percentages of kilowatthours delivered to delivery
3893	3893	8 services customers to the aggregate kilowatthour
3894	3894	9 deliveries by the electric utilities to delivery services
3895	3895	10 customers for the year ended December 31, 2021. In order
3896	3896	11 to achieve these allocation percentages between or among
3897	3897	12 the electric utilities, the Agency shall require each
3898	3898	13 applicant that is selected in the procurement event to
3899	3899	14 enter into a contract with each electric utility for the
3900	3900	15 sale and purchase of renewable energy credits from each
3901	3901	16 new renewable energy facility to be constructed and
3902	3902	17 operated by the applicant, with the sale and purchase
3903	3903	18 obligations under the contracts to aggregate to the total
3904	3904	19 number of renewable energy credits per year to be supplied
3905	3905	20 by the applicant from the new renewable energy facility.
3906	3906	21 (7) The Agency shall submit its proposed selection of
3907	3907	22 applicants, new renewable energy facilities to be
3908	3908	23 constructed, and renewable energy credit amounts for each
3909	3909	24 procurement event to the Commission for approval. The
3910	3910	25 Commission shall, within 2 business days after receipt of
3911	3911	26 the Agency's proposed selections, approve the proposed
3912	3912
3913	3913
3914	3914
3915	3915
3916	3916
3917	3917	HB2205 - 108 - LRB103 28438 AMQ 54818 b
3918	3918
3919	3919
3920	3920	HB2205- 109 -LRB103 28438 AMQ 54818 b HB2205 - 109 - LRB103 28438 AMQ 54818 b
3921	3921	HB2205 - 109 - LRB103 28438 AMQ 54818 b
3922	3922	1 selections if it determines that the applicants and the
3923	3923	2 new renewable energy facilities to be constructed meet the
3924	3924	3 selection criteria set forth in this subsection (c-5) and
3925	3925	4 that the Agency seeks approval for contracts of applicable
3926	3926	5 durations aggregating to no more than the maximum amount
3927	3927	6 of renewable energy credits per year authorized by this
3928	3928	7 subsection (c-5) for the procurement event, at a price of
3929	3929	8 $30 per renewable energy credit.
3930	3930	9 (8) The Agency, in conjunction with its procurement
3931	3931	10 administrator if one is retained, the electric utilities,
3932	3932	11 and potential applicants for contracts to produce and
3933	3933	12 supply renewable energy credits pursuant to this
3934	3934	13 subsection (c-5), shall develop a standard form contract
3935	3935	14 for the sale, delivery and purchase of renewable energy
3936	3936	15 credits pursuant to this subsection (c-5). Each contract
3937	3937	16 resulting from the first procurement event shall allow for
3938	3938	17 a commercial operation date for the new renewable energy
3939	3939	18 facility of either June 1, 2023 or June 1, 2024, with such
3940	3940	19 dates subject to adjustment as provided in this paragraph.
3941	3941	20 Each contract resulting from the second procurement event
3942	3942	21 shall provide for a commercial operation date on June 1
3943	3943	22 next occurring up to 48 months after execution of the
3944	3944	23 contract. Each contract shall provide that the owner shall
3945	3945	24 receive payments for renewable energy credits for the
3946	3946	25 applicable durations beginning with the commercial
3947	3947	26 operation date of the new renewable energy facility. The
3948	3948
3949	3949
3950	3950
3951	3951
3952	3952
3953	3953	HB2205 - 109 - LRB103 28438 AMQ 54818 b
3954	3954
3955	3955
3956	3956	HB2205- 110 -LRB103 28438 AMQ 54818 b HB2205 - 110 - LRB103 28438 AMQ 54818 b
3957	3957	HB2205 - 110 - LRB103 28438 AMQ 54818 b
3958	3958	1 form contract shall provide for adjustments to the
3959	3959	2 commercial operation and payment start dates as needed due
3960	3960	3 to any delays in completing the procurement and
3961	3961	4 contracting processes, in finalizing interconnection
3962	3962	5 agreements and installing interconnection facilities, and
3963	3963	6 in obtaining other necessary governmental permits and
3964	3964	7 approvals. The form contract shall be, to the maximum
3965	3965	8 extent possible, consistent with standard electric
3966	3966	9 industry contracts for sale, delivery, and purchase of
3967	3967	10 renewable energy credits while taking into account the
3968	3968	11 specific requirements of this subsection (c-5). The form
3969	3969	12 contract shall provide for over-delivery and
3970	3970	13 under-delivery of renewable energy credits within
3971	3971	14 reasonable ranges during each 12-month period and penalty,
3972	3972	15 default, and enforcement provisions for failure of the
3973	3973	16 selling party to deliver renewable energy credits as
3974	3974	17 specified in the contract and to comply with the
3975	3975	18 requirements of this subsection (c-5). The standard form
3976	3976	19 contract shall specify that all renewable energy credits
3977	3977	20 delivered to the electric utility pursuant to the contract
3978	3978	21 shall be retired. The Agency shall make the proposed
3979	3979	22 contracts available for a reasonable period for comment by
3980	3980	23 potential applicants, and shall publish the final form
3981	3981	24 contract at least 30 days before the date of the first
3982	3982	25 procurement event.
3983	3983	26 (9) Coal to Solar and Energy Storage Initiative
3984	3984
3985	3985
3986	3986
3987	3987
3988	3988
3989	3989	HB2205 - 110 - LRB103 28438 AMQ 54818 b
3990	3990
3991	3991
3992	3992	HB2205- 111 -LRB103 28438 AMQ 54818 b HB2205 - 111 - LRB103 28438 AMQ 54818 b
3993	3993	HB2205 - 111 - LRB103 28438 AMQ 54818 b
3994	3994	1 Charge.
3995	3995	2 (A) By no later than July 1, 2022, each electric
3996	3996	3 utility that served more than 300,000 retail customers
3997	3997	4 in this State as of January 1, 2019 shall file a tariff
3998	3998	5 with the Commission for the billing and collection of
3999	3999	6 a Coal to Solar and Energy Storage Initiative Charge
4000	4000	7 in accordance with subsection (i-5) of Section 16-108
4001	4001	8 of the Public Utilities Act, with such tariff to be
4002	4002	9 effective, following review and approval or
4003	4003	10 modification by the Commission, beginning January 1,
4004	4004	11 2023. The tariff shall provide for the calculation and
4005	4005	12 setting of the electric utility's Coal to Solar and
4006	4006	13 Energy Storage Initiative Charge to collect revenues
4007	4007	14 estimated to be sufficient, in the aggregate, (i) to
4008	4008	15 enable the electric utility to pay for the renewable
4009	4009	16 energy credits it has contracted to purchase in the
4010	4010	17 delivery year beginning June 1, 2023 and each delivery
4011	4011	18 year thereafter from new renewable energy facilities
4012	4012	19 located at the sites of qualifying electric generating
4013	4013	20 facilities, and (ii) to fund the grant payments to be
4014	4014	21 made in each delivery year by the Department of
4015	4015	22 Commerce and Economic Opportunity, or any successor
4016	4016	23 department or agency, which shall be referred to in
4017	4017	24 this subsection (c-5) as the Department, pursuant to
4018	4018	25 paragraph (10) of this subsection (c-5). The electric
4019	4019	26 utility's tariff shall provide for the billing and
4020	4020
4021	4021
4022	4022
4023	4023
4024	4024
4025	4025	HB2205 - 111 - LRB103 28438 AMQ 54818 b
4026	4026
4027	4027
4028	4028	HB2205- 112 -LRB103 28438 AMQ 54818 b HB2205 - 112 - LRB103 28438 AMQ 54818 b
4029	4029	HB2205 - 112 - LRB103 28438 AMQ 54818 b
4030	4030	1 collection of the Coal to Solar and Energy Storage
4031	4031	2 Initiative Charge on each kilowatthour of electricity
4032	4032	3 delivered to its delivery services customers within
4033	4033	4 its service territory and shall provide for an annual
4034	4034	5 reconciliation of revenues collected with actual
4035	4035	6 costs, in accordance with subsection (i-5) of Section
4036	4036	7 16-108 of the Public Utilities Act.
4037	4037	8 (B) Each electric utility shall remit on a monthly
4038	4038	9 basis to the State Treasurer, for deposit in the Coal
4039	4039	10 to Solar and Energy Storage Initiative Fund provided
4040	4040	11 for in this subsection (c-5), the electric utility's
4041	4041	12 collections of the Coal to Solar and Energy Storage
4042	4042	13 Initiative Charge in the amount estimated to be needed
4043	4043	14 by the Department for grant payments pursuant to grant
4044	4044	15 contracts entered into by the Department pursuant to
4045	4045	16 paragraph (10) of this subsection (c-5).
4046	4046	17 (10) Coal to Solar and Energy Storage Initiative Fund.
4047	4047	18 (A) The Coal to Solar and Energy Storage
4048	4048	19 Initiative Fund is established as a special fund in
4049	4049	20 the State treasury. The Coal to Solar and Energy
4050	4050	21 Storage Initiative Fund is authorized to receive, by
4051	4051	22 statutory deposit, that portion specified in item (B)
4052	4052	23 of paragraph (9) of this subsection (c-5) of moneys
4053	4053	24 collected by electric utilities through imposition of
4054	4054	25 the Coal to Solar and Energy Storage Initiative Charge
4055	4055	26 required by this subsection (c-5). The Coal to Solar
4056	4056
4057	4057
4058	4058
4059	4059
4060	4060
4061	4061	HB2205 - 112 - LRB103 28438 AMQ 54818 b
4062	4062
4063	4063
4064	4064	HB2205- 113 -LRB103 28438 AMQ 54818 b HB2205 - 113 - LRB103 28438 AMQ 54818 b
4065	4065	HB2205 - 113 - LRB103 28438 AMQ 54818 b
4066	4066	1 and Energy Storage Initiative Fund shall be
4067	4067	2 administered by the Department to provide grants to
4068	4068	3 support the installation and operation of energy
4069	4069	4 storage facilities at the sites of qualifying electric
4070	4070	5 generating facilities meeting the criteria specified
4071	4071	6 in this paragraph (10).
4072	4072	7 (B) The Coal to Solar and Energy Storage
4073	4073	8 Initiative Fund shall not be subject to sweeps,
4074	4074	9 administrative charges, or chargebacks, including, but
4075	4075	10 not limited to, those authorized under Section 8h of
4076	4076	11 the State Finance Act, that would in any way result in
4077	4077	12 the transfer of those funds from the Coal to Solar and
4078	4078	13 Energy Storage Initiative Fund to any other fund of
4079	4079	14 this State or in having any such funds utilized for any
4080	4080	15 purpose other than the express purposes set forth in
4081	4081	16 this paragraph (10).
4082	4082	17 (C) The Department shall utilize up to
4083	4083	18 $280,500,000 in the Coal to Solar and Energy Storage
4084	4084	19 Initiative Fund for grants, assuming sufficient
4085	4085	20 qualifying applicants, to support installation of
4086	4086	21 energy storage facilities at the sites of up to 3
4087	4087	22 qualifying electric generating facilities located in
4088	4088	23 the Midcontinent Independent System Operator, Inc.,
4089	4089	24 region in Illinois and the sites of up to 2 qualifying
4090	4090	25 electric generating facilities located in the PJM
4091	4091	26 Interconnection, LLC region in Illinois that meet the
4092	4092
4093	4093
4094	4094
4095	4095
4096	4096
4097	4097	HB2205 - 113 - LRB103 28438 AMQ 54818 b
4098	4098
4099	4099
4100	4100	HB2205- 114 -LRB103 28438 AMQ 54818 b HB2205 - 114 - LRB103 28438 AMQ 54818 b
4101	4101	HB2205 - 114 - LRB103 28438 AMQ 54818 b
4102	4102	1 criteria set forth in this subparagraph (C). The
4103	4103	2 criteria for receipt of a grant pursuant to this
4104	4104	3 subparagraph (C) are as follows:
4105	4105	4 (1) the electric generating facility at the
4106	4106	5 site has, or had prior to retirement, an electric
4107	4107	6 generating capacity of at least 150 megawatts;
4108	4108	7 (2) the electric generating facility burns (or
4109	4109	8 burned prior to retirement) coal as its primary
4110	4110	9 source of fuel;
4111	4111	10 (3) if the electric generating facility is
4112	4112	11 retired, it was retired subsequent to January 1,
4113	4113	12 2016;
4114	4114	13 (4) the owner of the electric generating
4115	4115	14 facility has not been selected by the Agency
4116	4116	15 pursuant to this subsection (c-5) of this Section
4117	4117	16 to enter into a contract to sell renewable energy
4118	4118	17 credits to one or more electric utilities from a
4119	4119	18 new renewable energy facility located or to be
4120	4120	19 located at or adjacent to the site at which the
4121	4121	20 electric generating facility is located;
4122	4122	21 (5) the electric generating facility located
4123	4123	22 at the site was at one time owned, in whole or in
4124	4124	23 part, by a public utility as defined in Section
4125	4125	24 3-105 of the Public Utilities Act;
4126	4126	25 (6) the electric generating facility at the
4127	4127	26 site is not owned by (i) an electric cooperative
4128	4128
4129	4129
4130	4130
4131	4131
4132	4132
4133	4133	HB2205 - 114 - LRB103 28438 AMQ 54818 b
4134	4134
4135	4135
4136	4136	HB2205- 115 -LRB103 28438 AMQ 54818 b HB2205 - 115 - LRB103 28438 AMQ 54818 b
4137	4137	HB2205 - 115 - LRB103 28438 AMQ 54818 b
4138	4138	1 as defined in Section 3-119 of the Public
4139	4139	2 Utilities Act, or (ii) an entity described in
4140	4140	3 subsection (b)(1) of Section 3-105 of the Public
4141	4141	4 Utilities Act, or an association or consortium of
4142	4142	5 or an entity owned by entities described in items
4143	4143	6 (i) or (ii);
4144	4144	7 (7) the proposed energy storage facility at
4145	4145	8 the site will have energy storage capacity of at
4146	4146	9 least 37 megawatts;
4147	4147	10 (8) the owner commits to place the energy
4148	4148	11 storage facility into commercial operation on
4149	4149	12 either June 1, 2023, June 1, 2024, or June 1, 2025,
4150	4150	13 with such date subject to adjustment as needed due
4151	4151	14 to any delays in completing the grant contracting
4152	4152	15 process, in finalizing interconnection agreements
4153	4153	16 and in installing interconnection facilities, and
4154	4154	17 in obtaining necessary governmental permits and
4155	4155	18 approvals;
4156	4156	19 (9) the owner agrees that the new energy
4157	4157	20 storage facility will be constructed or installed
4158	4158	21 by a qualified entity or entities consistent with
4159	4159	22 the requirements of subsection (g) of Section
4160	4160	23 16-128A of the Public Utilities Act and any rules
4161	4161	24 adopted under that Section;
4162	4162	25 (10) the owner agrees that personnel operating
4163	4163	26 the energy storage facility will have the
4164	4164
4165	4165
4166	4166
4167	4167
4168	4168
4169	4169	HB2205 - 115 - LRB103 28438 AMQ 54818 b
4170	4170
4171	4171
4172	4172	HB2205- 116 -LRB103 28438 AMQ 54818 b HB2205 - 116 - LRB103 28438 AMQ 54818 b
4173	4173	HB2205 - 116 - LRB103 28438 AMQ 54818 b
4174	4174	1 requisite skills, knowledge, training, experience,
4175	4175	2 and competence, which may be demonstrated by
4176	4176	3 completion or current participation and ultimate
4177	4177	4 completion by employees of an accredited or
4178	4178	5 otherwise recognized apprenticeship program for
4179	4179	6 the employee's particular craft, trade, or skill,
4180	4180	7 including through training and education courses
4181	4181	8 and opportunities offered by the owner to
4182	4182	9 employees of the coal-fueled electric generating
4183	4183	10 facility or by previous employment experience
4184	4184	11 performing the employee's particular work skill or
4185	4185	12 function;
4186	4186	13 (11) the owner commits that not less than the
4187	4187	14 prevailing wage, as determined pursuant to the
4188	4188	15 Prevailing Wage Act, will be paid to the owner's
4189	4189	16 employees engaged in construction activities
4190	4190	17 associated with the new energy storage facility
4191	4191	18 and to the employees of the owner's contractors
4192	4192	19 engaged in construction activities associated with
4193	4193	20 the new energy storage facility, and that, on or
4194	4194	21 before the commercial operation date of the new
4195	4195	22 energy storage facility, the owner shall file a
4196	4196	23 report with the Department certifying that the
4197	4197	24 requirements of this subparagraph (11) have been
4198	4198	25 met; and
4199	4199	26 (12) the owner commits that if selected to
4200	4200
4201	4201
4202	4202
4203	4203
4204	4204
4205	4205	HB2205 - 116 - LRB103 28438 AMQ 54818 b
4206	4206
4207	4207
4208	4208	HB2205- 117 -LRB103 28438 AMQ 54818 b HB2205 - 117 - LRB103 28438 AMQ 54818 b
4209	4209	HB2205 - 117 - LRB103 28438 AMQ 54818 b
4210	4210	1 receive a grant, it will negotiate a project labor
4211	4211	2 agreement for the construction of the new energy
4212	4212	3 storage facility that includes provisions
4213	4213	4 requiring the parties to the agreement to work
4214	4214	5 together to establish diversity threshold
4215	4215	6 requirements and to ensure best efforts to meet
4216	4216	7 diversity targets, improve diversity at the
4217	4217	8 applicable job site, create diverse apprenticeship
4218	4218	9 opportunities, and create opportunities to employ
4219	4219	10 former coal-fired power plant workers.
4220	4220	11 The Department shall accept applications for this
4221	4221	12 grant program until March 31, 2022 and shall announce
4222	4222	13 the award of grants no later than June 1, 2022. The
4223	4223	14 Department shall make the grant payments to a
4224	4224	15 recipient in equal annual amounts for 10 years
4225	4225	16 following the date the energy storage facility is
4226	4226	17 placed into commercial operation. The annual grant
4227	4227	18 payments to a qualifying energy storage facility shall
4228	4228	19 be $110,000 per megawatt of energy storage capacity,
4229	4229	20 with total annual grant payments pursuant to this
4230	4230	21 subparagraph (C) for qualifying energy storage
4231	4231	22 facilities not to exceed $28,050,000 in any year.
4232	4232	23 (D) Grants of funding for energy storage
4233	4233	24 facilities pursuant to subparagraph (C) of this
4234	4234	25 paragraph (10), from the Coal to Solar and Energy
4235	4235	26 Storage Initiative Fund, shall be memorialized in
4236	4236
4237	4237
4238	4238
4239	4239
4240	4240
4241	4241	HB2205 - 117 - LRB103 28438 AMQ 54818 b
4242	4242
4243	4243
4244	4244	HB2205- 118 -LRB103 28438 AMQ 54818 b HB2205 - 118 - LRB103 28438 AMQ 54818 b
4245	4245	HB2205 - 118 - LRB103 28438 AMQ 54818 b
4246	4246	1 grant contracts between the Department and the
4247	4247	2 recipient. The grant contracts shall specify the date
4248	4248	3 or dates in each year on which the annual grant
4249	4249	4 payments shall be paid.
4250	4250	5 (E) All disbursements from the Coal to Solar and
4251	4251	6 Energy Storage Initiative Fund shall be made only upon
4252	4252	7 warrants of the Comptroller drawn upon the Treasurer
4253	4253	8 as custodian of the Fund upon vouchers signed by the
4254	4254	9 Director of the Department or by the person or persons
4255	4255	10 designated by the Director of the Department for that
4256	4256	11 purpose. The Comptroller is authorized to draw the
4257	4257	12 warrants upon vouchers so signed. The Treasurer shall
4258	4258	13 accept all written warrants so signed and shall be
4259	4259	14 released from liability for all payments made on those
4260	4260	15 warrants.
4261	4261	16 (11) Diversity, equity, and inclusion plans.
4262	4262	17 (A) Each applicant selected in a procurement event
4263	4263	18 to contract to supply renewable energy credits in
4264	4264	19 accordance with this subsection (c-5) and each owner
4265	4265	20 selected by the Department to receive a grant or
4266	4266	21 grants to support the construction and operation of a
4267	4267	22 new energy storage facility or facilities in
4268	4268	23 accordance with this subsection (c-5) shall, within 60
4269	4269	24 days following the Commission's approval of the
4270	4270	25 applicant to contract to supply renewable energy
4271	4271	26 credits or within 60 days following execution of a
4272	4272
4273	4273
4274	4274
4275	4275
4276	4276
4277	4277	HB2205 - 118 - LRB103 28438 AMQ 54818 b
4278	4278
4279	4279
4280	4280	HB2205- 119 -LRB103 28438 AMQ 54818 b HB2205 - 119 - LRB103 28438 AMQ 54818 b
4281	4281	HB2205 - 119 - LRB103 28438 AMQ 54818 b
4282	4282	1 grant contract with the Department, as applicable,
4283	4283	2 submit to the Commission a diversity, equity, and
4284	4284	3 inclusion plan setting forth the applicant's or
4285	4285	4 owner's numeric goals for the diversity composition of
4286	4286	5 its supplier entities for the new renewable energy
4287	4287	6 facility or new energy storage facility, as
4288	4288	7 applicable, which shall be referred to for purposes of
4289	4289	8 this paragraph (11) as the project, and the
4290	4290	9 applicant's or owner's action plan and schedule for
4291	4291	10 achieving those goals.
4292	4292	11 (B) For purposes of this paragraph (11), diversity
4293	4293	12 composition shall be based on the percentage, which
4294	4294	13 shall be a minimum of 25%, of eligible expenditures
4295	4295	14 for contract awards for materials and services (which
4296	4296	15 shall be defined in the plan) to business enterprises
4297	4297	16 owned by minority persons, women, or persons with
4298	4298	17 disabilities as defined in Section 2 of the Business
4299	4299	18 Enterprise for Minorities, Women, and Persons with
4300	4300	19 Disabilities Act, to LGBTQ business enterprises, to
4301	4301	20 veteran-owned business enterprises, and to business
4302	4302	21 enterprises located in environmental justice
4303	4303	22 communities. The diversity composition goals of the
4304	4304	23 plan may include eligible expenditures in areas for
4305	4305	24 vendor or supplier opportunities in addition to
4306	4306	25 development and construction of the project, and may
4307	4307	26 exclude from eligible expenditures materials and
4308	4308
4309	4309
4310	4310
4311	4311
4312	4312
4313	4313	HB2205 - 119 - LRB103 28438 AMQ 54818 b
4314	4314
4315	4315
4316	4316	HB2205- 120 -LRB103 28438 AMQ 54818 b HB2205 - 120 - LRB103 28438 AMQ 54818 b
4317	4317	HB2205 - 120 - LRB103 28438 AMQ 54818 b
4318	4318	1 services with limited market availability, limited
4319	4319	2 production and availability from suppliers in the
4320	4320	3 United States, such as solar panels and storage
4321	4321	4 batteries, and material and services that are subject
4322	4322	5 to critical energy infrastructure or cybersecurity
4323	4323	6 requirements or restrictions. The plan may provide
4324	4324	7 that the diversity composition goals may be met
4325	4325	8 through Tier 1 Direct or Tier 2 subcontracting
4326	4326	9 expenditures or a combination thereof for the project.
4327	4327	10 (C) The plan shall provide for, but not be limited
4328	4328	11 to: (i) internal initiatives, including multi-tier
4329	4329	12 initiatives, by the applicant or owner, or by its
4330	4330	13 engineering, procurement and construction contractor
4331	4331	14 if one is used for the project, which for purposes of
4332	4332	15 this paragraph (11) shall be referred to as the EPC
4333	4333	16 contractor, to enable diverse businesses to be
4334	4334	17 considered fairly for selection to provide materials
4335	4335	18 and services; (ii) requirements for the applicant or
4336	4336	19 owner or its EPC contractor to proactively solicit and
4337	4337	20 utilize diverse businesses to provide materials and
4338	4338	21 services; and (iii) requirements for the applicant or
4339	4339	22 owner or its EPC contractor to hire a diverse
4340	4340	23 workforce for the project. The plan shall include a
4341	4341	24 description of the applicant's or owner's diversity
4342	4342	25 recruiting efforts both for the project and for other
4343	4343	26 areas of the applicant's or owner's business
4344	4344
4345	4345
4346	4346
4347	4347
4348	4348
4349	4349	HB2205 - 120 - LRB103 28438 AMQ 54818 b
4350	4350
4351	4351
4352	4352	HB2205- 121 -LRB103 28438 AMQ 54818 b HB2205 - 121 - LRB103 28438 AMQ 54818 b
4353	4353	HB2205 - 121 - LRB103 28438 AMQ 54818 b
4354	4354	1 operations. The plan shall provide for the imposition
4355	4355	2 of financial penalties on the applicant's or owner's
4356	4356	3 EPC contractor for failure to exercise best efforts to
4357	4357	4 comply with and execute the EPC contractor's diversity
4358	4358	5 obligations under the plan. The plan may provide for
4359	4359	6 the applicant or owner to set aside a portion of the
4360	4360	7 work on the project to serve as an incubation program
4361	4361	8 for qualified businesses, as specified in the plan,
4362	4362	9 owned by minority persons, women, persons with
4363	4363	10 disabilities, LGBTQ persons, and veterans, and
4364	4364	11 businesses located in environmental justice
4365	4365	12 communities, seeking to enter the renewable energy
4366	4366	13 industry.
4367	4367	14 (D) The applicant or owner may submit a revised or
4368	4368	15 updated plan to the Commission from time to time as
4369	4369	16 circumstances warrant. The applicant or owner shall
4370	4370	17 file annual reports with the Commission detailing the
4371	4371	18 applicant's or owner's progress in implementing its
4372	4372	19 plan and achieving its goals and any modifications the
4373	4373	20 applicant or owner has made to its plan to better
4374	4374	21 achieve its diversity, equity and inclusion goals. The
4375	4375	22 applicant or owner shall file a final report on the
4376	4376	23 fifth June 1 following the commercial operation date
4377	4377	24 of the new renewable energy resource or new energy
4378	4378	25 storage facility, but the applicant or owner shall
4379	4379	26 thereafter continue to be subject to applicable
4380	4380
4381	4381
4382	4382
4383	4383
4384	4384
4385	4385	HB2205 - 121 - LRB103 28438 AMQ 54818 b
4386	4386
4387	4387
4388	4388	HB2205- 122 -LRB103 28438 AMQ 54818 b HB2205 - 122 - LRB103 28438 AMQ 54818 b
4389	4389	HB2205 - 122 - LRB103 28438 AMQ 54818 b
4390	4390	1 reporting requirements of Section 5-117 of the Public
4391	4391	2 Utilities Act.
4392	4392	3 (c-10) Equity accountability system. It is the purpose of
4393	4393	4 this subsection (c-10) to create an equity accountability
4394	4394	5 system, which includes the minimum equity standards for all
4395	4395	6 renewable energy procurements, the equity category of the
4396	4396	7 Adjustable Block Program, and the equity prioritization for
4397	4397	8 noncompetitive procurements, that is successful in advancing
4398	4398	9 priority access to the clean energy economy for businesses and
4399	4399	10 workers from communities that have been excluded from economic
4400	4400	11 opportunities in the energy sector, have been subject to
4401	4401	12 disproportionate levels of pollution, and have
4402	4402	13 disproportionately experienced negative public health
4403	4403	14 outcomes. Further, it is the purpose of this subsection to
4404	4404	15 ensure that this equity accountability system is successful in
4405	4405	16 advancing equity across Illinois by providing access to the
4406	4406	17 clean energy economy for businesses and workers from
4407	4407	18 communities that have been historically excluded from economic
4408	4408	19 opportunities in the energy sector, have been subject to
4409	4409	20 disproportionate levels of pollution, and have
4410	4410	21 disproportionately experienced negative public health
4411	4411	22 outcomes.
4412	4412	23 (1) Minimum equity standards. The Agency shall create
4413	4413	24 programs with the purpose of increasing access to and
4414	4414	25 development of equity eligible contractors, who are prime
4415	4415	26 contractors and subcontractors, across all of the programs
4416	4416
4417	4417
4418	4418
4419	4419
4420	4420
4421	4421	HB2205 - 122 - LRB103 28438 AMQ 54818 b
4422	4422
4423	4423
4424	4424	HB2205- 123 -LRB103 28438 AMQ 54818 b HB2205 - 123 - LRB103 28438 AMQ 54818 b
4425	4425	HB2205 - 123 - LRB103 28438 AMQ 54818 b
4426	4426	1 it manages. All applications for renewable energy credit
4427	4427	2 procurements shall comply with specific minimum equity
4428	4428	3 commitments. Starting in the delivery year immediately
4429	4429	4 following the next long-term renewable resources
4430	4430	5 procurement plan, at least 10% of the project workforce
4431	4431	6 for each entity participating in a procurement program
4432	4432	7 outlined in this subsection (c-10) must be done by equity
4433	4433	8 eligible persons or equity eligible contractors. The
4434	4434	9 Agency shall increase the minimum percentage each delivery
4435	4435	10 year thereafter by increments that ensure a statewide
4436	4436	11 average of 30% of the project workforce for each entity
4437	4437	12 participating in a procurement program is done by equity
4438	4438	13 eligible persons or equity eligible contractors by 2030.
4439	4439	14 The Agency shall propose a schedule of percentage
4440	4440	15 increases to the minimum equity standards in its draft
4441	4441	16 revised renewable energy resources procurement plan
4442	4442	17 submitted to the Commission for approval pursuant to
4443	4443	18 paragraph (5) of subsection (b) of Section 16-111.5 of the
4444	4444	19 Public Utilities Act. In determining these annual
4445	4445	20 increases, the Agency shall have the discretion to
4446	4446	21 establish different minimum equity standards for different
4447	4447	22 types of procurements and different regions of the State
4448	4448	23 if the Agency finds that doing so will further the
4449	4449	24 purposes of this subsection (c-10). The proposed schedule
4450	4450	25 of annual increases shall be revisited and updated on an
4451	4451	26 annual basis. Revisions shall be developed with
4452	4452
4453	4453
4454	4454
4455	4455
4456	4456
4457	4457	HB2205 - 123 - LRB103 28438 AMQ 54818 b
4458	4458
4459	4459
4460	4460	HB2205- 124 -LRB103 28438 AMQ 54818 b HB2205 - 124 - LRB103 28438 AMQ 54818 b
4461	4461	HB2205 - 124 - LRB103 28438 AMQ 54818 b
4462	4462	1 stakeholder input, including from equity eligible persons,
4463	4463	2 equity eligible contractors, clean energy industry
4464	4464	3 representatives, and community-based organizations that
4465	4465	4 work with such persons and contractors.
4466	4466	5 (A) At the start of each delivery year, the Agency
4467	4467	6 shall require a compliance plan from each entity
4468	4468	7 participating in a procurement program of subsection
4469	4469	8 (c) of this Section that demonstrates how they will
4470	4470	9 achieve compliance with the minimum equity standard
4471	4471	10 percentage for work completed in that delivery year.
4472	4472	11 If an entity applies for its approved vendor or
4473	4473	12 designee status between delivery years, the Agency
4474	4474	13 shall require a compliance plan at the time of
4475	4475	14 application.
4476	4476	15 (B) Halfway through each delivery year, the Agency
4477	4477	16 shall require each entity participating in a
4478	4478	17 procurement program to confirm that it will achieve
4479	4479	18 compliance in that delivery year, when applicable. The
4480	4480	19 Agency may offer corrective action plans to entities
4481	4481	20 that are not on track to achieve compliance.
4482	4482	21 (C) At the end of each delivery year, each entity
4483	4483	22 participating and completing work in that delivery
4484	4484	23 year in a procurement program of subsection (c) shall
4485	4485	24 submit a report to the Agency that demonstrates how it
4486	4486	25 achieved compliance with the minimum equity standards
4487	4487	26 percentage for that delivery year.
4488	4488
4489	4489
4490	4490
4491	4491
4492	4492
4493	4493	HB2205 - 124 - LRB103 28438 AMQ 54818 b
4494	4494
4495	4495
4496	4496	HB2205- 125 -LRB103 28438 AMQ 54818 b HB2205 - 125 - LRB103 28438 AMQ 54818 b
4497	4497	HB2205 - 125 - LRB103 28438 AMQ 54818 b
4498	4498	1 (D) The Agency shall prohibit participation in
4499	4499	2 procurement programs by an approved vendor or
4500	4500	3 designee, as applicable, or entities with which an
4501	4501	4 approved vendor or designee, as applicable, shares a
4502	4502	5 common parent company if an approved vendor or
4503	4503	6 designee, as applicable, failed to meet the minimum
4504	4504	7 equity standards for the prior delivery year. Waivers
4505	4505	8 approved for lack of equity eligible persons or equity
4506	4506	9 eligible contractors in a geographic area of a project
4507	4507	10 shall not count against the approved vendor or
4508	4508	11 designee. The Agency shall offer a corrective action
4509	4509	12 plan for any such entities to assist them in obtaining
4510	4510	13 compliance and shall allow continued access to
4511	4511	14 procurement programs upon an approved vendor or
4512	4512	15 designee demonstrating compliance.
4513	4513	16 (E) The Agency shall pursue efficiencies achieved
4514	4514	17 by combining with other approved vendor or designee
4515	4515	18 reporting.
4516	4516	19 (2) Equity accountability system within the Adjustable
4517	4517	20 Block program. The equity category described in item (vi)
4518	4518	21 of subparagraph (K) of subsection (c) is only available to
4519	4519	22 applicants that are equity eligible contractors.
4520	4520	23 (3) Equity accountability system within competitive
4521	4521	24 procurements. Through its long-term renewable resources
4522	4522	25 procurement plan, the Agency shall develop requirements
4523	4523	26 for ensuring that competitive procurement processes,
4524	4524
4525	4525
4526	4526
4527	4527
4528	4528
4529	4529	HB2205 - 125 - LRB103 28438 AMQ 54818 b
4530	4530
4531	4531
4532	4532	HB2205- 126 -LRB103 28438 AMQ 54818 b HB2205 - 126 - LRB103 28438 AMQ 54818 b
4533	4533	HB2205 - 126 - LRB103 28438 AMQ 54818 b
4534	4534	1 including utility-scale solar, utility-scale wind, and
4535	4535	2 brownfield site photovoltaic projects, advance the equity
4536	4536	3 goals of this subsection (c-10). Subject to Commission
4537	4537	4 approval, the Agency shall develop bid application
4538	4538	5 requirements and a bid evaluation methodology for ensuring
4539	4539	6 that utilization of equity eligible contractors, whether
4540	4540	7 as bidders or as participants on project development, is
4541	4541	8 optimized, including requiring that winning or successful
4542	4542	9 applicants for utility-scale projects are or will partner
4543	4543	10 with equity eligible contractors and giving preference to
4544	4544	11 bids through which a higher portion of contract value
4545	4545	12 flows to equity eligible contractors. To the extent
4546	4546	13 practicable, entities participating in competitive
4547	4547	14 procurements shall also be required to meet all the equity
4548	4548	15 accountability requirements for approved vendors and their
4549	4549	16 designees under this subsection (c-10). In developing
4550	4550	17 these requirements, the Agency shall also consider whether
4551	4551	18 equity goals can be further advanced through additional
4552	4552	19 measures.
4553	4553	20 (4) In the first revision to the long-term renewable
4554	4554	21 energy resources procurement plan and each revision
4555	4555	22 thereafter, the Agency shall include the following:
4556	4556	23 (A) The current status and number of equity
4557	4557	24 eligible contractors listed in the Energy Workforce
4558	4558	25 Equity Database designed in subsection (c-25),
4559	4559	26 including the number of equity eligible contractors
4560	4560
4561	4561
4562	4562
4563	4563
4564	4564
4565	4565	HB2205 - 126 - LRB103 28438 AMQ 54818 b
4566	4566
4567	4567
4568	4568	HB2205- 127 -LRB103 28438 AMQ 54818 b HB2205 - 127 - LRB103 28438 AMQ 54818 b
4569	4569	HB2205 - 127 - LRB103 28438 AMQ 54818 b
4570	4570	1 with current certifications as issued by the Agency.
4571	4571	2 (B) A mechanism for measuring, tracking, and
4572	4572	3 reporting project workforce at the approved vendor or
4573	4573	4 designee level, as applicable, which shall include a
4574	4574	5 measurement methodology and records to be made
4575	4575	6 available for audit by the Agency or the Program
4576	4576	7 Administrator.
4577	4577	8 (C) A program for approved vendors, designees,
4578	4578	9 eligible persons, and equity eligible contractors to
4579	4579	10 receive trainings, guidance, and other support from
4580	4580	11 the Agency or its designee regarding the equity
4581	4581	12 category outlined in item (vi) of subparagraph (K) of
4582	4582	13 paragraph (1) of subsection (c) and in meeting the
4583	4583	14 minimum equity standards of this subsection (c-10).
4584	4584	15 (D) A process for certifying equity eligible
4585	4585	16 contractors and equity eligible persons. The
4586	4586	17 certification process shall coordinate with the Energy
4587	4587	18 Workforce Equity Database set forth in subsection
4588	4588	19 (c-25).
4589	4589	20 (E) An application for waiver of the minimum
4590	4590	21 equity standards of this subsection, which the Agency
4591	4591	22 shall have the discretion to grant in rare
4592	4592	23 circumstances. The Agency may grant such a waiver
4593	4593	24 where the applicant provides evidence of significant
4594	4594	25 efforts toward meeting the minimum equity commitment,
4595	4595	26 including: use of the Energy Workforce Equity
4596	4596
4597	4597
4598	4598
4599	4599
4600	4600
4601	4601	HB2205 - 127 - LRB103 28438 AMQ 54818 b
4602	4602
4603	4603
4604	4604	HB2205- 128 -LRB103 28438 AMQ 54818 b HB2205 - 128 - LRB103 28438 AMQ 54818 b
4605	4605	HB2205 - 128 - LRB103 28438 AMQ 54818 b
4606	4606	1 Database; efforts to hire or contract with entities
4607	4607	2 that hire eligible persons; and efforts to establish
4608	4608	3 contracting relationships with eligible contractors.
4609	4609	4 The Agency shall support applicants in understanding
4610	4610	5 the Energy Workforce Equity Database and other
4611	4611	6 resources for pursuing compliance of the minimum
4612	4612	7 equity standards. Waivers shall be project-specific,
4613	4613	8 unless the Agency deems it necessary to grant a waiver
4614	4614	9 across a portfolio of projects, and in effect for no
4615	4615	10 longer than one year. Any waiver extension or
4616	4616	11 subsequent waiver request from an applicant shall be
4617	4617	12 subject to the requirements of this Section and shall
4618	4618	13 specify efforts made to reach compliance. When
4619	4619	14 considering whether to grant a waiver, and to what
4620	4620	15 extent, the Agency shall consider the degree to which
4621	4621	16 similarly situated applicants have been able to meet
4622	4622	17 these minimum equity commitments. For repeated waiver
4623	4623	18 requests for specific lack of eligible persons or
4624	4624	19 eligible contractors available, the Agency shall make
4625	4625	20 recommendations to target recruitment to add such
4626	4626	21 eligible persons or eligible contractors to the
4627	4627	22 database.
4628	4628	23 (5) The Agency shall collect information about work on
4629	4629	24 projects or portfolios of projects subject to these
4630	4630	25 minimum equity standards to ensure compliance with this
4631	4631	26 subsection (c-10). Reporting in furtherance of this
4632	4632
4633	4633
4634	4634
4635	4635
4636	4636
4637	4637	HB2205 - 128 - LRB103 28438 AMQ 54818 b
4638	4638
4639	4639
4640	4640	HB2205- 129 -LRB103 28438 AMQ 54818 b HB2205 - 129 - LRB103 28438 AMQ 54818 b
4641	4641	HB2205 - 129 - LRB103 28438 AMQ 54818 b
4642	4642	1 requirement may be combined with other annual reporting
4643	4643	2 requirements. Such reporting shall include proof of
4644	4644	3 certification of each equity eligible contractor or equity
4645	4645	4 eligible person during the applicable time period.
4646	4646	5 (6) The Agency shall keep confidential all information
4647	4647	6 and communication that provides private or personal
4648	4648	7 information.
4649	4649	8 (7) Modifications to the equity accountability system.
4650	4650	9 As part of the update of the long-term renewable resources
4651	4651	10 procurement plan to be initiated in 2023, or sooner if the
4652	4652	11 Agency deems necessary, the Agency shall determine the
4653	4653	12 extent to which the equity accountability system described
4654	4654	13 in this subsection (c-10) has advanced the goals of this
4655	4655	14 amendatory Act of the 102nd General Assembly, including
4656	4656	15 through the inclusion of equity eligible persons and
4657	4657	16 equity eligible contractors in renewable energy credit
4658	4658	17 projects. If the Agency finds that the equity
4659	4659	18 accountability system has failed to meet those goals to
4660	4660	19 its fullest potential, the Agency may revise the following
4661	4661	20 criteria for future Agency procurements: (A) the
4662	4662	21 percentage of project workforce, or other appropriate
4663	4663	22 workforce measure, certified as equity eligible persons or
4664	4664	23 equity eligible contractors; (B) definitions for equity
4665	4665	24 investment eligible persons and equity investment eligible
4666	4666	25 community; and (C) such other modifications necessary to
4667	4667	26 advance the goals of this amendatory Act of the 102nd
4668	4668
4669	4669
4670	4670
4671	4671
4672	4672
4673	4673	HB2205 - 129 - LRB103 28438 AMQ 54818 b
4674	4674
4675	4675
4676	4676	HB2205- 130 -LRB103 28438 AMQ 54818 b HB2205 - 130 - LRB103 28438 AMQ 54818 b
4677	4677	HB2205 - 130 - LRB103 28438 AMQ 54818 b
4678	4678	1 General Assembly effectively. Such revised criteria may
4679	4679	2 also establish distinct equity accountability systems for
4680	4680	3 different types of procurements or different regions of
4681	4681	4 the State if the Agency finds that doing so will further
4682	4682	5 the purposes of such programs. Revisions shall be
4683	4683	6 developed with stakeholder input, including from equity
4684	4684	7 eligible persons, equity eligible contractors, and
4685	4685	8 community-based organizations that work with such persons
4686	4686	9 and contractors.
4687	4687	10 (c-15) Racial discrimination elimination powers and
4688	4688	11 process.
4689	4689	12 (1) Purpose. It is the purpose of this subsection to
4690	4690	13 empower the Agency and other State actors to remedy racial
4691	4691	14 discrimination in Illinois' clean energy economy as
4692	4692	15 effectively and expediently as possible, including through
4693	4693	16 the use of race-conscious remedies, such as race-conscious
4694	4694	17 contracting and hiring goals, as consistent with State and
4695	4695	18 federal law.
4696	4696	19 (2) Racial disparity and discrimination review
4697	4697	20 process.
4698	4698	21 (A) Within one year after awarding contracts using
4699	4699	22 the equity actions processes established in this
4700	4700	23 Section, the Agency shall publish a report evaluating
4701	4701	24 the effectiveness of the equity actions point criteria
4702	4702	25 of this Section in increasing participation of equity
4703	4703	26 eligible persons and equity eligible contractors. The
4704	4704
4705	4705
4706	4706
4707	4707
4708	4708
4709	4709	HB2205 - 130 - LRB103 28438 AMQ 54818 b
4710	4710
4711	4711
4712	4712	HB2205- 131 -LRB103 28438 AMQ 54818 b HB2205 - 131 - LRB103 28438 AMQ 54818 b
4713	4713	HB2205 - 131 - LRB103 28438 AMQ 54818 b
4714	4714	1 report shall disaggregate participating workers and
4715	4715	2 contractors by race and ethnicity. The report shall be
4716	4716	3 forwarded to the Governor, the General Assembly, and
4717	4717	4 the Illinois Commerce Commission and be made available
4718	4718	5 to the public.
4719	4719	6 (B) As soon as is practicable thereafter, the
4720	4720	7 Agency, in consultation with the Department of
4721	4721	8 Commerce and Economic Opportunity, Department of
4722	4722	9 Labor, and other agencies that may be relevant, shall
4723	4723	10 commission and publish a disparity and availability
4724	4724	11 study that measures the presence and impact of
4725	4725	12 discrimination on minority businesses and workers in
4726	4726	13 Illinois' clean energy economy. The Agency may hire
4727	4727	14 consultants and experts to conduct the disparity and
4728	4728	15 availability study, with the retention of those
4729	4729	16 consultants and experts exempt from the requirements
4730	4730	17 of Section 20-10 of the Illinois Procurement Code. The
4731	4731	18 Illinois Power Agency shall forward a copy of its
4732	4732	19 findings and recommendations to the Governor, the
4733	4733	20 General Assembly, and the Illinois Commerce
4734	4734	21 Commission. If the disparity and availability study
4735	4735	22 establishes a strong basis in evidence that there is
4736	4736	23 discrimination in Illinois' clean energy economy, the
4737	4737	24 Agency, Department of Commerce and Economic
4738	4738	25 Opportunity, Department of Labor, Department of
4739	4739	26 Corrections, and other appropriate agencies shall take
4740	4740
4741	4741
4742	4742
4743	4743
4744	4744
4745	4745	HB2205 - 131 - LRB103 28438 AMQ 54818 b
4746	4746
4747	4747
4748	4748	HB2205- 132 -LRB103 28438 AMQ 54818 b HB2205 - 132 - LRB103 28438 AMQ 54818 b
4749	4749	HB2205 - 132 - LRB103 28438 AMQ 54818 b
4750	4750	1 appropriate remedial actions, including race-conscious
4751	4751	2 remedial actions as consistent with State and federal
4752	4752	3 law, to effectively remedy this discrimination. Such
4753	4753	4 remedies may include modification of the equity
4754	4754	5 accountability system as described in subsection
4755	4755	6 (c-10).
4756	4756	7 (c-20) Program data collection.
4757	4757	8 (1) Purpose. Data collection, data analysis, and
4758	4758	9 reporting are critical to ensure that the benefits of the
4759	4759	10 clean energy economy provided to Illinois residents and
4760	4760	11 businesses are equitably distributed across the State. The
4761	4761	12 Agency shall collect data from program applicants in order
4762	4762	13 to track and improve equitable distribution of benefits
4763	4763	14 across Illinois communities for all procurements the
4764	4764	15 Agency conducts. The Agency shall use this data to, among
4765	4765	16 other things, measure any potential impact of racial
4766	4766	17 discrimination on the distribution of benefits and provide
4767	4767	18 information necessary to correct any discrimination
4768	4768	19 through methods consistent with State and federal law.
4769	4769	20 (2) Agency collection of program data. The Agency
4770	4770	21 shall collect demographic and geographic data for each
4771	4771	22 entity awarded contracts under any Agency-administered
4772	4772	23 program.
4773	4773	24 (3) Required information to be collected. The Agency
4774	4774	25 shall collect the following information from applicants
4775	4775	26 and program participants where applicable:
4776	4776
4777	4777
4778	4778
4779	4779
4780	4780
4781	4781	HB2205 - 132 - LRB103 28438 AMQ 54818 b
4782	4782
4783	4783
4784	4784	HB2205- 133 -LRB103 28438 AMQ 54818 b HB2205 - 133 - LRB103 28438 AMQ 54818 b
4785	4785	HB2205 - 133 - LRB103 28438 AMQ 54818 b
4786	4786	1 (A) demographic information, including racial or
4787	4787	2 ethnic identity for real persons employed, contracted,
4788	4788	3 or subcontracted through the program and owners of
4789	4789	4 businesses or entities that apply to receive renewable
4790	4790	5 energy credits from the Agency;
4791	4791	6 (B) geographic location of the residency of real
4792	4792	7 persons employed, contracted, or subcontracted through
4793	4793	8 the program and geographic location of the
4794	4794	9 headquarters of the business or entity that applies to
4795	4795	10 receive renewable energy credits from the Agency; and
4796	4796	11 (C) any other information the Agency determines is
4797	4797	12 necessary for the purpose of achieving the purpose of
4798	4798	13 this subsection.
4799	4799	14 (4) Publication of collected information. The Agency
4800	4800	15 shall publish, at least annually, information on the
4801	4801	16 demographics of program participants on an aggregate
4802	4802	17 basis.
4803	4803	18 (5) Nothing in this subsection shall be interpreted to
4804	4804	19 limit the authority of the Agency, or other agency or
4805	4805	20 department of the State, to require or collect demographic
4806	4806	21 information from applicants of other State programs.
4807	4807	22 (c-25) Energy Workforce Equity Database.
4808	4808	23 (1) The Agency, in consultation with the Department of
4809	4809	24 Commerce and Economic Opportunity, shall create an Energy
4810	4810	25 Workforce Equity Database, and may contract with a third
4811	4811	26 party to do so ("database program administrator"). If the
4812	4812
4813	4813
4814	4814
4815	4815
4816	4816
4817	4817	HB2205 - 133 - LRB103 28438 AMQ 54818 b
4818	4818
4819	4819
4820	4820	HB2205- 134 -LRB103 28438 AMQ 54818 b HB2205 - 134 - LRB103 28438 AMQ 54818 b
4821	4821	HB2205 - 134 - LRB103 28438 AMQ 54818 b
4822	4822	1 Department decides to contract with a third party, that
4823	4823	2 third party shall be exempt from the requirements of
4824	4824	3 Section 20-10 of the Illinois Procurement Code. The Energy
4825	4825	4 Workforce Equity Database shall be a searchable database
4826	4826	5 of suppliers, vendors, and subcontractors for clean energy
4827	4827	6 industries that is:
4828	4828	7 (A) publicly accessible;
4829	4829	8 (B) easy for people to find and use;
4830	4830	9 (C) organized by company specialty or field;
4831	4831	10 (D) region-specific; and
4832	4832	11 (E) populated with information including, but not
4833	4833	12 limited to, contacts for suppliers, vendors, or
4834	4834	13 subcontractors who are minority and women-owned
4835	4835	14 business enterprise certified or who participate or
4836	4836	15 have participated in any of the programs described in
4837	4837	16 this Act.
4838	4838	17 (2) The Agency shall create an easily accessible,
4839	4839	18 public facing online tool using the database information
4840	4840	19 that includes, at a minimum, the following:
4841	4841	20 (A) a map of environmental justice and equity
4842	4842	21 investment eligible communities;
4843	4843	22 (B) job postings and recruiting opportunities;
4844	4844	23 (C) a means by which recruiting clean energy
4845	4845	24 companies can find and interact with current or former
4846	4846	25 participants of clean energy workforce training
4847	4847	26 programs;
4848	4848
4849	4849
4850	4850
4851	4851
4852	4852
4853	4853	HB2205 - 134 - LRB103 28438 AMQ 54818 b
4854	4854
4855	4855
4856	4856	HB2205- 135 -LRB103 28438 AMQ 54818 b HB2205 - 135 - LRB103 28438 AMQ 54818 b
4857	4857	HB2205 - 135 - LRB103 28438 AMQ 54818 b
4858	4858	1 (D) information on workforce training service
4859	4859	2 providers and training opportunities available to
4860	4860	3 prospective workers;
4861	4861	4 (E) renewable energy company diversity reporting;
4862	4862	5 (F) a list of equity eligible contractors with
4863	4863	6 their contact information, types of work performed,
4864	4864	7 and locations worked in;
4865	4865	8 (G) reporting on outcomes of the programs
4866	4866	9 described in the workforce programs of the Energy
4867	4867	10 Transition Act, including information such as, but not
4868	4868	11 limited to, retention rate, graduation rate, and
4869	4869	12 placement rates of trainees; and
4870	4870	13 (H) information about the Jobs and Environmental
4871	4871	14 Justice Grant Program, the Clean Energy Jobs and
4872	4872	15 Justice Fund, and other sources of capital.
4873	4873	16 (3) The Agency shall ensure the database is regularly
4874	4874	17 updated to ensure information is current and shall
4875	4875	18 coordinate with the Department of Commerce and Economic
4876	4876	19 Opportunity to ensure that it includes information on
4877	4877	20 individuals and entities that are or have participated in
4878	4878	21 the Clean Jobs Workforce Network Program, Clean Energy
4879	4879	22 Contractor Incubator Program, Returning Residents Clean
4880	4880	23 Jobs Training Program, or Clean Energy Primes Contractor
4881	4881	24 Accelerator Program.
4882	4882	25 (c-30) Enforcement of minimum equity standards. All
4883	4883	26 entities seeking renewable energy credits must submit an
4884	4884
4885	4885
4886	4886
4887	4887
4888	4888
4889	4889	HB2205 - 135 - LRB103 28438 AMQ 54818 b
4890	4890
4891	4891
4892	4892	HB2205- 136 -LRB103 28438 AMQ 54818 b HB2205 - 136 - LRB103 28438 AMQ 54818 b
4893	4893	HB2205 - 136 - LRB103 28438 AMQ 54818 b
4894	4894	1 annual report to demonstrate compliance with each of the
4895	4895	2 equity commitments required under subsection (c-10). If the
4896	4896	3 Agency concludes the entity has not met or maintained its
4897	4897	4 minimum equity standards required under the applicable
4898	4898	5 subparagraphs under subsection (c-10), the Agency shall deny
4899	4899	6 the entity's ability to participate in procurement programs in
4900	4900	7 subsection (c), including by withholding approved vendor or
4901	4901	8 designee status. The Agency may require the entity to enter
4902	4902	9 into a corrective action plan. An entity that is not
4903	4903	10 recertified for failing to meet required equity actions in
4904	4904	11 subparagraph (c-10) may reapply once they have a corrective
4905	4905	12 action plan and achieve compliance with the minimum equity
4906	4906	13 standards.
4907	4907	14 (d) Clean coal portfolio standard.
4908	4908	15 (1) The procurement plans shall include electricity
4909	4909	16 generated using clean coal. Each utility shall enter into
4910	4910	17 one or more sourcing agreements with the initial clean
4911	4911	18 coal facility, as provided in paragraph (3) of this
4912	4912	19 subsection (d), covering electricity generated by the
4913	4913	20 initial clean coal facility representing at least 5% of
4914	4914	21 each utility's total supply to serve the load of eligible
4915	4915	22 retail customers in 2015 and each year thereafter, as
4916	4916	23 described in paragraph (3) of this subsection (d), subject
4917	4917	24 to the limits specified in paragraph (2) of this
4918	4918	25 subsection (d). It is the goal of the State that by January
4919	4919	26 1, 2025, 25% of the electricity used in the State shall be
4920	4920
4921	4921
4922	4922
4923	4923
4924	4924
4925	4925	HB2205 - 136 - LRB103 28438 AMQ 54818 b
4926	4926
4927	4927
4928	4928	HB2205- 137 -LRB103 28438 AMQ 54818 b HB2205 - 137 - LRB103 28438 AMQ 54818 b
4929	4929	HB2205 - 137 - LRB103 28438 AMQ 54818 b
4930	4930	1 generated by cost-effective clean coal facilities. For
4931	4931	2 purposes of this subsection (d), "cost-effective" means
4932	4932	3 that the expenditures pursuant to such sourcing agreements
4933	4933	4 do not cause the limit stated in paragraph (2) of this
4934	4934	5 subsection (d) to be exceeded and do not exceed cost-based
4935	4935	6 benchmarks, which shall be developed to assess all
4936	4936	7 expenditures pursuant to such sourcing agreements covering
4937	4937	8 electricity generated by clean coal facilities, other than
4938	4938	9 the initial clean coal facility, by the procurement
4939	4939	10 administrator, in consultation with the Commission staff,
4940	4940	11 Agency staff, and the procurement monitor and shall be
4941	4941	12 subject to Commission review and approval.
4942	4942	13 A utility party to a sourcing agreement shall
4943	4943	14 immediately retire any emission credits that it receives
4944	4944	15 in connection with the electricity covered by such
4945	4945	16 agreement.
4946	4946	17 Utilities shall maintain adequate records documenting
4947	4947	18 the purchases under the sourcing agreement to comply with
4948	4948	19 this subsection (d) and shall file an accounting with the
4949	4949	20 load forecast that must be filed with the Agency by July 15
4950	4950	21 of each year, in accordance with subsection (d) of Section
4951	4951	22 16-111.5 of the Public Utilities Act.
4952	4952	23 A utility shall be deemed to have complied with the
4953	4953	24 clean coal portfolio standard specified in this subsection
4954	4954	25 (d) if the utility enters into a sourcing agreement as
4955	4955	26 required by this subsection (d).
4956	4956
4957	4957
4958	4958
4959	4959
4960	4960
4961	4961	HB2205 - 137 - LRB103 28438 AMQ 54818 b
4962	4962
4963	4963
4964	4964	HB2205- 138 -LRB103 28438 AMQ 54818 b HB2205 - 138 - LRB103 28438 AMQ 54818 b
4965	4965	HB2205 - 138 - LRB103 28438 AMQ 54818 b
4966	4966	1 (2) For purposes of this subsection (d), the required
4967	4967	2 execution of sourcing agreements with the initial clean
4968	4968	3 coal facility for a particular year shall be measured as a
4969	4969	4 percentage of the actual amount of electricity
4970	4970	5 (megawatt-hours) supplied by the electric utility to
4971	4971	6 eligible retail customers in the planning year ending
4972	4972	7 immediately prior to the agreement's execution. For
4973	4973	8 purposes of this subsection (d), the amount paid per
4974	4974	9 kilowatthour means the total amount paid for electric
4975	4975	10 service expressed on a per kilowatthour basis. For
4976	4976	11 purposes of this subsection (d), the total amount paid for
4977	4977	12 electric service includes without limitation amounts paid
4978	4978	13 for supply, transmission, distribution, surcharges and
4979	4979	14 add-on taxes.
4980	4980	15 Notwithstanding the requirements of this subsection
4981	4981	16 (d), the total amount paid under sourcing agreements with
4982	4982	17 clean coal facilities pursuant to the procurement plan for
4983	4983	18 any given year shall be reduced by an amount necessary to
4984	4984	19 limit the annual estimated average net increase due to the
4985	4985	20 costs of these resources included in the amounts paid by
4986	4986	21 eligible retail customers in connection with electric
4987	4987	22 service to:
4988	4988	23 (A) in 2010, no more than 0.5% of the amount paid
4989	4989	24 per kilowatthour by those customers during the year
4990	4990	25 ending May 31, 2009;
4991	4991	26 (B) in 2011, the greater of an additional 0.5% of
4992	4992
4993	4993
4994	4994
4995	4995
4996	4996
4997	4997	HB2205 - 138 - LRB103 28438 AMQ 54818 b
4998	4998
4999	4999
5000	5000	HB2205- 139 -LRB103 28438 AMQ 54818 b HB2205 - 139 - LRB103 28438 AMQ 54818 b
5001	5001	HB2205 - 139 - LRB103 28438 AMQ 54818 b
5002	5002	1 the amount paid per kilowatthour by those customers
5003	5003	2 during the year ending May 31, 2010 or 1% of the amount
5004	5004	3 paid per kilowatthour by those customers during the
5005	5005	4 year ending May 31, 2009;
5006	5006	5 (C) in 2012, the greater of an additional 0.5% of
5007	5007	6 the amount paid per kilowatthour by those customers
5008	5008	7 during the year ending May 31, 2011 or 1.5% of the
5009	5009	8 amount paid per kilowatthour by those customers during
5010	5010	9 the year ending May 31, 2009;
5011	5011	10 (D) in 2013, the greater of an additional 0.5% of
5012	5012	11 the amount paid per kilowatthour by those customers
5013	5013	12 during the year ending May 31, 2012 or 2% of the amount
5014	5014	13 paid per kilowatthour by those customers during the
5015	5015	14 year ending May 31, 2009; and
5016	5016	15 (E) thereafter, the total amount paid under
5017	5017	16 sourcing agreements with clean coal facilities
5018	5018	17 pursuant to the procurement plan for any single year
5019	5019	18 shall be reduced by an amount necessary to limit the
5020	5020	19 estimated average net increase due to the cost of
5021	5021	20 these resources included in the amounts paid by
5022	5022	21 eligible retail customers in connection with electric
5023	5023	22 service to no more than the greater of (i) 2.015% of
5024	5024	23 the amount paid per kilowatthour by those customers
5025	5025	24 during the year ending May 31, 2009 or (ii) the
5026	5026	25 incremental amount per kilowatthour paid for these
5027	5027	26 resources in 2013. These requirements may be altered
5028	5028
5029	5029
5030	5030
5031	5031
5032	5032
5033	5033	HB2205 - 139 - LRB103 28438 AMQ 54818 b
5034	5034
5035	5035
5036	5036	HB2205- 140 -LRB103 28438 AMQ 54818 b HB2205 - 140 - LRB103 28438 AMQ 54818 b
5037	5037	HB2205 - 140 - LRB103 28438 AMQ 54818 b
5038	5038	1 only as provided by statute.
5039	5039	2 No later than June 30, 2015, the Commission shall
5040	5040	3 review the limitation on the total amount paid under
5041	5041	4 sourcing agreements, if any, with clean coal facilities
5042	5042	5 pursuant to this subsection (d) and report to the General
5043	5043	6 Assembly its findings as to whether that limitation unduly
5044	5044	7 constrains the amount of electricity generated by
5045	5045	8 cost-effective clean coal facilities that is covered by
5046	5046	9 sourcing agreements.
5047	5047	10 (3) Initial clean coal facility. In order to promote
5048	5048	11 development of clean coal facilities in Illinois, each
5049	5049	12 electric utility subject to this Section shall execute a
5050	5050	13 sourcing agreement to source electricity from a proposed
5051	5051	14 clean coal facility in Illinois (the "initial clean coal
5052	5052	15 facility") that will have a nameplate capacity of at least
5053	5053	16 500 MW when commercial operation commences, that has a
5054	5054	17 final Clean Air Act permit on June 1, 2009 (the effective
5055	5055	18 date of Public Act 95-1027), and that will meet the
5056	5056	19 definition of clean coal facility in Section 1-10 of this
5057	5057	20 Act when commercial operation commences. The sourcing
5058	5058	21 agreements with this initial clean coal facility shall be
5059	5059	22 subject to both approval of the initial clean coal
5060	5060	23 facility by the General Assembly and satisfaction of the
5061	5061	24 requirements of paragraph (4) of this subsection (d) and
5062	5062	25 shall be executed within 90 days after any such approval
5063	5063	26 by the General Assembly. The Agency and the Commission
5064	5064
5065	5065
5066	5066
5067	5067
5068	5068
5069	5069	HB2205 - 140 - LRB103 28438 AMQ 54818 b
5070	5070
5071	5071
5072	5072	HB2205- 141 -LRB103 28438 AMQ 54818 b HB2205 - 141 - LRB103 28438 AMQ 54818 b
5073	5073	HB2205 - 141 - LRB103 28438 AMQ 54818 b
5074	5074	1 shall have authority to inspect all books and records
5075	5075	2 associated with the initial clean coal facility during the
5076	5076	3 term of such a sourcing agreement. A utility's sourcing
5077	5077	4 agreement for electricity produced by the initial clean
5078	5078	5 coal facility shall include:
5079	5079	6 (A) a formula contractual price (the "contract
5080	5080	7 price") approved pursuant to paragraph (4) of this
5081	5081	8 subsection (d), which shall:
5082	5082	9 (i) be determined using a cost of service
5083	5083	10 methodology employing either a level or deferred
5084	5084	11 capital recovery component, based on a capital
5085	5085	12 structure consisting of 45% equity and 55% debt,
5086	5086	13 and a return on equity as may be approved by the
5087	5087	14 Federal Energy Regulatory Commission, which in any
5088	5088	15 case may not exceed the lower of 11.5% or the rate
5089	5089	16 of return approved by the General Assembly
5090	5090	17 pursuant to paragraph (4) of this subsection (d);
5091	5091	18 and
5092	5092	19 (ii) provide that all miscellaneous net
5093	5093	20 revenue, including but not limited to net revenue
5094	5094	21 from the sale of emission allowances, if any,
5095	5095	22 substitute natural gas, if any, grants or other
5096	5096	23 support provided by the State of Illinois or the
5097	5097	24 United States Government, firm transmission
5098	5098	25 rights, if any, by-products produced by the
5099	5099	26 facility, energy or capacity derived from the
5100	5100
5101	5101
5102	5102
5103	5103
5104	5104
5105	5105	HB2205 - 141 - LRB103 28438 AMQ 54818 b
5106	5106
5107	5107
5108	5108	HB2205- 142 -LRB103 28438 AMQ 54818 b HB2205 - 142 - LRB103 28438 AMQ 54818 b
5109	5109	HB2205 - 142 - LRB103 28438 AMQ 54818 b
5110	5110	1 facility and not covered by a sourcing agreement
5111	5111	2 pursuant to paragraph (3) of this subsection (d)
5112	5112	3 or item (5) of subsection (d) of Section 16-115 of
5113	5113	4 the Public Utilities Act, whether generated from
5114	5114	5 the synthesis gas derived from coal, from SNG, or
5115	5115	6 from natural gas, shall be credited against the
5116	5116	7 revenue requirement for this initial clean coal
5117	5117	8 facility;
5118	5118	9 (B) power purchase provisions, which shall:
5119	5119	10 (i) provide that the utility party to such
5120	5120	11 sourcing agreement shall pay the contract price
5121	5121	12 for electricity delivered under such sourcing
5122	5122	13 agreement;
5123	5123	14 (ii) require delivery of electricity to the
5124	5124	15 regional transmission organization market of the
5125	5125	16 utility that is party to such sourcing agreement;
5126	5126	17 (iii) require the utility party to such
5127	5127	18 sourcing agreement to buy from the initial clean
5128	5128	19 coal facility in each hour an amount of energy
5129	5129	20 equal to all clean coal energy made available from
5130	5130	21 the initial clean coal facility during such hour
5131	5131	22 times a fraction, the numerator of which is such
5132	5132	23 utility's retail market sales of electricity
5133	5133	24 (expressed in kilowatthours sold) in the State
5134	5134	25 during the prior calendar month and the
5135	5135	26 denominator of which is the total retail market
5136	5136
5137	5137
5138	5138
5139	5139
5140	5140
5141	5141	HB2205 - 142 - LRB103 28438 AMQ 54818 b
5142	5142
5143	5143
5144	5144	HB2205- 143 -LRB103 28438 AMQ 54818 b HB2205 - 143 - LRB103 28438 AMQ 54818 b
5145	5145	HB2205 - 143 - LRB103 28438 AMQ 54818 b
5146	5146	1 sales of electricity (expressed in kilowatthours
5147	5147	2 sold) in the State by utilities during such prior
5148	5148	3 month and the sales of electricity (expressed in
5149	5149	4 kilowatthours sold) in the State by alternative
5150	5150	5 retail electric suppliers during such prior month
5151	5151	6 that are subject to the requirements of this
5152	5152	7 subsection (d) and paragraph (5) of subsection (d)
5153	5153	8 of Section 16-115 of the Public Utilities Act,
5154	5154	9 provided that the amount purchased by the utility
5155	5155	10 in any year will be limited by paragraph (2) of
5156	5156	11 this subsection (d); and
5157	5157	12 (iv) be considered pre-existing contracts in
5158	5158	13 such utility's procurement plans for eligible
5159	5159	14 retail customers;
5160	5160	15 (C) contract for differences provisions, which
5161	5161	16 shall:
5162	5162	17 (i) require the utility party to such sourcing
5163	5163	18 agreement to contract with the initial clean coal
5164	5164	19 facility in each hour with respect to an amount of
5165	5165	20 energy equal to all clean coal energy made
5166	5166	21 available from the initial clean coal facility
5167	5167	22 during such hour times a fraction, the numerator
5168	5168	23 of which is such utility's retail market sales of
5169	5169	24 electricity (expressed in kilowatthours sold) in
5170	5170	25 the utility's service territory in the State
5171	5171	26 during the prior calendar month and the
5172	5172
5173	5173
5174	5174
5175	5175
5176	5176
5177	5177	HB2205 - 143 - LRB103 28438 AMQ 54818 b
5178	5178
5179	5179
5180	5180	HB2205- 144 -LRB103 28438 AMQ 54818 b HB2205 - 144 - LRB103 28438 AMQ 54818 b
5181	5181	HB2205 - 144 - LRB103 28438 AMQ 54818 b
5182	5182	1 denominator of which is the total retail market
5183	5183	2 sales of electricity (expressed in kilowatthours
5184	5184	3 sold) in the State by utilities during such prior
5185	5185	4 month and the sales of electricity (expressed in
5186	5186	5 kilowatthours sold) in the State by alternative
5187	5187	6 retail electric suppliers during such prior month
5188	5188	7 that are subject to the requirements of this
5189	5189	8 subsection (d) and paragraph (5) of subsection (d)
5190	5190	9 of Section 16-115 of the Public Utilities Act,
5191	5191	10 provided that the amount paid by the utility in
5192	5192	11 any year will be limited by paragraph (2) of this
5193	5193	12 subsection (d);
5194	5194	13 (ii) provide that the utility's payment
5195	5195	14 obligation in respect of the quantity of
5196	5196	15 electricity determined pursuant to the preceding
5197	5197	16 clause (i) shall be limited to an amount equal to
5198	5198	17 (1) the difference between the contract price
5199	5199	18 determined pursuant to subparagraph (A) of
5200	5200	19 paragraph (3) of this subsection (d) and the
5201	5201	20 day-ahead price for electricity delivered to the
5202	5202	21 regional transmission organization market of the
5203	5203	22 utility that is party to such sourcing agreement
5204	5204	23 (or any successor delivery point at which such
5205	5205	24 utility's supply obligations are financially
5206	5206	25 settled on an hourly basis) (the "reference
5207	5207	26 price") on the day preceding the day on which the
5208	5208
5209	5209
5210	5210
5211	5211
5212	5212
5213	5213	HB2205 - 144 - LRB103 28438 AMQ 54818 b
5214	5214
5215	5215
5216	5216	HB2205- 145 -LRB103 28438 AMQ 54818 b HB2205 - 145 - LRB103 28438 AMQ 54818 b
5217	5217	HB2205 - 145 - LRB103 28438 AMQ 54818 b
5218	5218	1 electricity is delivered to the initial clean coal
5219	5219	2 facility busbar, multiplied by (2) the quantity of
5220	5220	3 electricity determined pursuant to the preceding
5221	5221	4 clause (i); and
5222	5222	5 (iii) not require the utility to take physical
5223	5223	6 delivery of the electricity produced by the
5224	5224	7 facility;
5225	5225	8 (D) general provisions, which shall:
5226	5226	9 (i) specify a term of no more than 30 years,
5227	5227	10 commencing on the commercial operation date of the
5228	5228	11 facility;
5229	5229	12 (ii) provide that utilities shall maintain
5230	5230	13 adequate records documenting purchases under the
5231	5231	14 sourcing agreements entered into to comply with
5232	5232	15 this subsection (d) and shall file an accounting
5233	5233	16 with the load forecast that must be filed with the
5234	5234	17 Agency by July 15 of each year, in accordance with
5235	5235	18 subsection (d) of Section 16-111.5 of the Public
5236	5236	19 Utilities Act;
5237	5237	20 (iii) provide that all costs associated with
5238	5238	21 the initial clean coal facility will be
5239	5239	22 periodically reported to the Federal Energy
5240	5240	23 Regulatory Commission and to purchasers in
5241	5241	24 accordance with applicable laws governing
5242	5242	25 cost-based wholesale power contracts;
5243	5243	26 (iv) permit the Illinois Power Agency to
5244	5244
5245	5245
5246	5246
5247	5247
5248	5248
5249	5249	HB2205 - 145 - LRB103 28438 AMQ 54818 b
5250	5250
5251	5251
5252	5252	HB2205- 146 -LRB103 28438 AMQ 54818 b HB2205 - 146 - LRB103 28438 AMQ 54818 b
5253	5253	HB2205 - 146 - LRB103 28438 AMQ 54818 b
5254	5254	1 assume ownership of the initial clean coal
5255	5255	2 facility, without monetary consideration and
5256	5256	3 otherwise on reasonable terms acceptable to the
5257	5257	4 Agency, if the Agency so requests no less than 3
5258	5258	5 years prior to the end of the stated contract
5259	5259	6 term;
5260	5260	7 (v) require the owner of the initial clean
5261	5261	8 coal facility to provide documentation to the
5262	5262	9 Commission each year, starting in the facility's
5263	5263	10 first year of commercial operation, accurately
5264	5264	11 reporting the quantity of carbon emissions from
5265	5265	12 the facility that have been captured and
5266	5266	13 sequestered and report any quantities of carbon
5267	5267	14 released from the site or sites at which carbon
5268	5268	15 emissions were sequestered in prior years, based
5269	5269	16 on continuous monitoring of such sites. If, in any
5270	5270	17 year after the first year of commercial operation,
5271	5271	18 the owner of the facility fails to demonstrate
5272	5272	19 that the initial clean coal facility captured and
5273	5273	20 sequestered at least 50% of the total carbon
5274	5274	21 emissions that the facility would otherwise emit
5275	5275	22 or that sequestration of emissions from prior
5276	5276	23 years has failed, resulting in the release of
5277	5277	24 carbon dioxide into the atmosphere, the owner of
5278	5278	25 the facility must offset excess emissions. Any
5279	5279	26 such carbon offsets must be permanent, additional,
5280	5280
5281	5281
5282	5282
5283	5283
5284	5284
5285	5285	HB2205 - 146 - LRB103 28438 AMQ 54818 b
5286	5286
5287	5287
5288	5288	HB2205- 147 -LRB103 28438 AMQ 54818 b HB2205 - 147 - LRB103 28438 AMQ 54818 b
5289	5289	HB2205 - 147 - LRB103 28438 AMQ 54818 b
5290	5290	1 verifiable, real, located within the State of
5291	5291	2 Illinois, and legally and practicably enforceable.
5292	5292	3 The cost of such offsets for the facility that are
5293	5293	4 not recoverable shall not exceed $15 million in
5294	5294	5 any given year. No costs of any such purchases of
5295	5295	6 carbon offsets may be recovered from a utility or
5296	5296	7 its customers. All carbon offsets purchased for
5297	5297	8 this purpose and any carbon emission credits
5298	5298	9 associated with sequestration of carbon from the
5299	5299	10 facility must be permanently retired. The initial
5300	5300	11 clean coal facility shall not forfeit its
5301	5301	12 designation as a clean coal facility if the
5302	5302	13 facility fails to fully comply with the applicable
5303	5303	14 carbon sequestration requirements in any given
5304	5304	15 year, provided the requisite offsets are
5305	5305	16 purchased. However, the Attorney General, on
5306	5306	17 behalf of the People of the State of Illinois, may
5307	5307	18 specifically enforce the facility's sequestration
5308	5308	19 requirement and the other terms of this contract
5309	5309	20 provision. Compliance with the sequestration
5310	5310	21 requirements and offset purchase requirements
5311	5311	22 specified in paragraph (3) of this subsection (d)
5312	5312	23 shall be reviewed annually by an independent
5313	5313	24 expert retained by the owner of the initial clean
5314	5314	25 coal facility, with the advance written approval
5315	5315	26 of the Attorney General. The Commission may, in
5316	5316
5317	5317
5318	5318
5319	5319
5320	5320
5321	5321	HB2205 - 147 - LRB103 28438 AMQ 54818 b
5322	5322
5323	5323
5324	5324	HB2205- 148 -LRB103 28438 AMQ 54818 b HB2205 - 148 - LRB103 28438 AMQ 54818 b
5325	5325	HB2205 - 148 - LRB103 28438 AMQ 54818 b
5326	5326	1 the course of the review specified in item (vii),
5327	5327	2 reduce the allowable return on equity for the
5328	5328	3 facility if the facility willfully fails to comply
5329	5329	4 with the carbon capture and sequestration
5330	5330	5 requirements set forth in this item (v);
5331	5331	6 (vi) include limits on, and accordingly
5332	5332	7 provide for modification of, the amount the
5333	5333	8 utility is required to source under the sourcing
5334	5334	9 agreement consistent with paragraph (2) of this
5335	5335	10 subsection (d);
5336	5336	11 (vii) require Commission review: (1) to
5337	5337	12 determine the justness, reasonableness, and
5338	5338	13 prudence of the inputs to the formula referenced
5339	5339	14 in subparagraphs (A)(i) through (A)(iii) of
5340	5340	15 paragraph (3) of this subsection (d), prior to an
5341	5341	16 adjustment in those inputs including, without
5342	5342	17 limitation, the capital structure and return on
5343	5343	18 equity, fuel costs, and other operations and
5344	5344	19 maintenance costs and (2) to approve the costs to
5345	5345	20 be passed through to customers under the sourcing
5346	5346	21 agreement by which the utility satisfies its
5347	5347	22 statutory obligations. Commission review shall
5348	5348	23 occur no less than every 3 years, regardless of
5349	5349	24 whether any adjustments have been proposed, and
5350	5350	25 shall be completed within 9 months;
5351	5351	26 (viii) limit the utility's obligation to such
5352	5352
5353	5353
5354	5354
5355	5355
5356	5356
5357	5357	HB2205 - 148 - LRB103 28438 AMQ 54818 b
5358	5358
5359	5359
5360	5360	HB2205- 149 -LRB103 28438 AMQ 54818 b HB2205 - 149 - LRB103 28438 AMQ 54818 b
5361	5361	HB2205 - 149 - LRB103 28438 AMQ 54818 b
5362	5362	1 amount as the utility is allowed to recover
5363	5363	2 through tariffs filed with the Commission,
5364	5364	3 provided that neither the clean coal facility nor
5365	5365	4 the utility waives any right to assert federal
5366	5366	5 pre-emption or any other argument in response to a
5367	5367	6 purported disallowance of recovery costs;
5368	5368	7 (ix) limit the utility's or alternative retail
5369	5369	8 electric supplier's obligation to incur any
5370	5370	9 liability until such time as the facility is in
5371	5371	10 commercial operation and generating power and
5372	5372	11 energy and such power and energy is being
5373	5373	12 delivered to the facility busbar;
5374	5374	13 (x) provide that the owner or owners of the
5375	5375	14 initial clean coal facility, which is the
5376	5376	15 counterparty to such sourcing agreement, shall
5377	5377	16 have the right from time to time to elect whether
5378	5378	17 the obligations of the utility party thereto shall
5379	5379	18 be governed by the power purchase provisions or
5380	5380	19 the contract for differences provisions;
5381	5381	20 (xi) append documentation showing that the
5382	5382	21 formula rate and contract, insofar as they relate
5383	5383	22 to the power purchase provisions, have been
5384	5384	23 approved by the Federal Energy Regulatory
5385	5385	24 Commission pursuant to Section 205 of the Federal
5386	5386	25 Power Act;
5387	5387	26 (xii) provide that any changes to the terms of
5388	5388
5389	5389
5390	5390
5391	5391
5392	5392
5393	5393	HB2205 - 149 - LRB103 28438 AMQ 54818 b
5394	5394
5395	5395
5396	5396	HB2205- 150 -LRB103 28438 AMQ 54818 b HB2205 - 150 - LRB103 28438 AMQ 54818 b
5397	5397	HB2205 - 150 - LRB103 28438 AMQ 54818 b
5398	5398	1 the contract, insofar as such changes relate to
5399	5399	2 the power purchase provisions, are subject to
5400	5400	3 review under the public interest standard applied
5401	5401	4 by the Federal Energy Regulatory Commission
5402	5402	5 pursuant to Sections 205 and 206 of the Federal
5403	5403	6 Power Act; and
5404	5404	7 (xiii) conform with customary lender
5405	5405	8 requirements in power purchase agreements used as
5406	5406	9 the basis for financing non-utility generators.
5407	5407	10 (4) Effective date of sourcing agreements with the
5408	5408	11 initial clean coal facility. Any proposed sourcing
5409	5409	12 agreement with the initial clean coal facility shall not
5410	5410	13 become effective unless the following reports are prepared
5411	5411	14 and submitted and authorizations and approvals obtained:
5412	5412	15 (i) Facility cost report. The owner of the initial
5413	5413	16 clean coal facility shall submit to the Commission,
5414	5414	17 the Agency, and the General Assembly a front-end
5415	5415	18 engineering and design study, a facility cost report,
5416	5416	19 method of financing (including but not limited to
5417	5417	20 structure and associated costs), and an operating and
5418	5418	21 maintenance cost quote for the facility (collectively
5419	5419	22 "facility cost report"), which shall be prepared in
5420	5420	23 accordance with the requirements of this paragraph (4)
5421	5421	24 of subsection (d) of this Section, and shall provide
5422	5422	25 the Commission and the Agency access to the work
5423	5423	26 papers, relied upon documents, and any other backup
5424	5424
5425	5425
5426	5426
5427	5427
5428	5428
5429	5429	HB2205 - 150 - LRB103 28438 AMQ 54818 b
5430	5430
5431	5431
5432	5432	HB2205- 151 -LRB103 28438 AMQ 54818 b HB2205 - 151 - LRB103 28438 AMQ 54818 b
5433	5433	HB2205 - 151 - LRB103 28438 AMQ 54818 b
5434	5434	1 documentation related to the facility cost report.
5435	5435	2 (ii) Commission report. Within 6 months following
5436	5436	3 receipt of the facility cost report, the Commission,
5437	5437	4 in consultation with the Agency, shall submit a report
5438	5438	5 to the General Assembly setting forth its analysis of
5439	5439	6 the facility cost report. Such report shall include,
5440	5440	7 but not be limited to, a comparison of the costs
5441	5441	8 associated with electricity generated by the initial
5442	5442	9 clean coal facility to the costs associated with
5443	5443	10 electricity generated by other types of generation
5444	5444	11 facilities, an analysis of the rate impacts on
5445	5445	12 residential and small business customers over the life
5446	5446	13 of the sourcing agreements, and an analysis of the
5447	5447	14 likelihood that the initial clean coal facility will
5448	5448	15 commence commercial operation by and be delivering
5449	5449	16 power to the facility's busbar by 2016. To assist in
5450	5450	17 the preparation of its report, the Commission, in
5451	5451	18 consultation with the Agency, may hire one or more
5452	5452	19 experts or consultants, the costs of which shall be
5453	5453	20 paid for by the owner of the initial clean coal
5454	5454	21 facility. The Commission and Agency may begin the
5455	5455	22 process of selecting such experts or consultants prior
5456	5456	23 to receipt of the facility cost report.
5457	5457	24 (iii) General Assembly approval. The proposed
5458	5458	25 sourcing agreements shall not take effect unless,
5459	5459	26 based on the facility cost report and the Commission's
5460	5460
5461	5461
5462	5462
5463	5463
5464	5464
5465	5465	HB2205 - 151 - LRB103 28438 AMQ 54818 b
5466	5466
5467	5467
5468	5468	HB2205- 152 -LRB103 28438 AMQ 54818 b HB2205 - 152 - LRB103 28438 AMQ 54818 b
5469	5469	HB2205 - 152 - LRB103 28438 AMQ 54818 b
5470	5470	1 report, the General Assembly enacts authorizing
5471	5471	2 legislation approving (A) the projected price, stated
5472	5472	3 in cents per kilowatthour, to be charged for
5473	5473	4 electricity generated by the initial clean coal
5474	5474	5 facility, (B) the projected impact on residential and
5475	5475	6 small business customers' bills over the life of the
5476	5476	7 sourcing agreements, and (C) the maximum allowable
5477	5477	8 return on equity for the project; and
5478	5478	9 (iv) Commission review. If the General Assembly
5479	5479	10 enacts authorizing legislation pursuant to
5480	5480	11 subparagraph (iii) approving a sourcing agreement, the
5481	5481	12 Commission shall, within 90 days of such enactment,
5482	5482	13 complete a review of such sourcing agreement. During
5483	5483	14 such time period, the Commission shall implement any
5484	5484	15 directive of the General Assembly, resolve any
5485	5485	16 disputes between the parties to the sourcing agreement
5486	5486	17 concerning the terms of such agreement, approve the
5487	5487	18 form of such agreement, and issue an order finding
5488	5488	19 that the sourcing agreement is prudent and reasonable.
5489	5489	20 The facility cost report shall be prepared as follows:
5490	5490	21 (A) The facility cost report shall be prepared by
5491	5491	22 duly licensed engineering and construction firms
5492	5492	23 detailing the estimated capital costs payable to one
5493	5493	24 or more contractors or suppliers for the engineering,
5494	5494	25 procurement and construction of the components
5495	5495	26 comprising the initial clean coal facility and the
5496	5496
5497	5497
5498	5498
5499	5499
5500	5500
5501	5501	HB2205 - 152 - LRB103 28438 AMQ 54818 b
5502	5502
5503	5503
5504	5504	HB2205- 153 -LRB103 28438 AMQ 54818 b HB2205 - 153 - LRB103 28438 AMQ 54818 b
5505	5505	HB2205 - 153 - LRB103 28438 AMQ 54818 b
5506	5506	1 estimated costs of operation and maintenance of the
5507	5507	2 facility. The facility cost report shall include:
5508	5508	3 (i) an estimate of the capital cost of the
5509	5509	4 core plant based on one or more front end
5510	5510	5 engineering and design studies for the
5511	5511	6 gasification island and related facilities. The
5512	5512	7 core plant shall include all civil, structural,
5513	5513	8 mechanical, electrical, control, and safety
5514	5514	9 systems.
5515	5515	10 (ii) an estimate of the capital cost of the
5516	5516	11 balance of the plant, including any capital costs
5517	5517	12 associated with sequestration of carbon dioxide
5518	5518	13 emissions and all interconnects and interfaces
5519	5519	14 required to operate the facility, such as
5520	5520	15 transmission of electricity, construction or
5521	5521	16 backfeed power supply, pipelines to transport
5522	5522	17 substitute natural gas or carbon dioxide, potable
5523	5523	18 water supply, natural gas supply, water supply,
5524	5524	19 water discharge, landfill, access roads, and coal
5525	5525	20 delivery.
5526	5526	21 The quoted construction costs shall be expressed
5527	5527	22 in nominal dollars as of the date that the quote is
5528	5528	23 prepared and shall include capitalized financing costs
5529	5529	24 during construction, taxes, insurance, and other
5530	5530	25 owner's costs, and an assumed escalation in materials
5531	5531	26 and labor beyond the date as of which the construction
5532	5532
5533	5533
5534	5534
5535	5535
5536	5536
5537	5537	HB2205 - 153 - LRB103 28438 AMQ 54818 b
5538	5538
5539	5539
5540	5540	HB2205- 154 -LRB103 28438 AMQ 54818 b HB2205 - 154 - LRB103 28438 AMQ 54818 b
5541	5541	HB2205 - 154 - LRB103 28438 AMQ 54818 b
5542	5542	1 cost quote is expressed.
5543	5543	2 (B) The front end engineering and design study for
5544	5544	3 the gasification island and the cost study for the
5545	5545	4 balance of plant shall include sufficient design work
5546	5546	5 to permit quantification of major categories of
5547	5547	6 materials, commodities and labor hours, and receipt of
5548	5548	7 quotes from vendors of major equipment required to
5549	5549	8 construct and operate the clean coal facility.
5550	5550	9 (C) The facility cost report shall also include an
5551	5551	10 operating and maintenance cost quote that will provide
5552	5552	11 the estimated cost of delivered fuel, personnel,
5553	5553	12 maintenance contracts, chemicals, catalysts,
5554	5554	13 consumables, spares, and other fixed and variable
5555	5555	14 operations and maintenance costs. The delivered fuel
5556	5556	15 cost estimate will be provided by a recognized third
5557	5557	16 party expert or experts in the fuel and transportation
5558	5558	17 industries. The balance of the operating and
5559	5559	18 maintenance cost quote, excluding delivered fuel
5560	5560	19 costs, will be developed based on the inputs provided
5561	5561	20 by duly licensed engineering and construction firms
5562	5562	21 performing the construction cost quote, potential
5563	5563	22 vendors under long-term service agreements and plant
5564	5564	23 operating agreements, or recognized third party plant
5565	5565	24 operator or operators.
5566	5566	25 The operating and maintenance cost quote
5567	5567	26 (including the cost of the front end engineering and
5568	5568
5569	5569
5570	5570
5571	5571
5572	5572
5573	5573	HB2205 - 154 - LRB103 28438 AMQ 54818 b
5574	5574
5575	5575
5576	5576	HB2205- 155 -LRB103 28438 AMQ 54818 b HB2205 - 155 - LRB103 28438 AMQ 54818 b
5577	5577	HB2205 - 155 - LRB103 28438 AMQ 54818 b
5578	5578	1 design study) shall be expressed in nominal dollars as
5579	5579	2 of the date that the quote is prepared and shall
5580	5580	3 include taxes, insurance, and other owner's costs, and
5581	5581	4 an assumed escalation in materials and labor beyond
5582	5582	5 the date as of which the operating and maintenance
5583	5583	6 cost quote is expressed.
5584	5584	7 (D) The facility cost report shall also include an
5585	5585	8 analysis of the initial clean coal facility's ability
5586	5586	9 to deliver power and energy into the applicable
5587	5587	10 regional transmission organization markets and an
5588	5588	11 analysis of the expected capacity factor for the
5589	5589	12 initial clean coal facility.
5590	5590	13 (E) Amounts paid to third parties unrelated to the
5591	5591	14 owner or owners of the initial clean coal facility to
5592	5592	15 prepare the core plant construction cost quote,
5593	5593	16 including the front end engineering and design study,
5594	5594	17 and the operating and maintenance cost quote will be
5595	5595	18 reimbursed through Coal Development Bonds.
5596	5596	19 (5) Re-powering and retrofitting coal-fired power
5597	5597	20 plants previously owned by Illinois utilities to qualify
5598	5598	21 as clean coal facilities. During the 2009 procurement
5599	5599	22 planning process and thereafter, the Agency and the
5600	5600	23 Commission shall consider sourcing agreements covering
5601	5601	24 electricity generated by power plants that were previously
5602	5602	25 owned by Illinois utilities and that have been or will be
5603	5603	26 converted into clean coal facilities, as defined by
5604	5604
5605	5605
5606	5606
5607	5607
5608	5608
5609	5609	HB2205 - 155 - LRB103 28438 AMQ 54818 b
5610	5610
5611	5611
5612	5612	HB2205- 156 -LRB103 28438 AMQ 54818 b HB2205 - 156 - LRB103 28438 AMQ 54818 b
5613	5613	HB2205 - 156 - LRB103 28438 AMQ 54818 b
5614	5614	1 Section 1-10 of this Act. Pursuant to such procurement
5615	5615	2 planning process, the owners of such facilities may
5616	5616	3 propose to the Agency sourcing agreements with utilities
5617	5617	4 and alternative retail electric suppliers required to
5618	5618	5 comply with subsection (d) of this Section and item (5) of
5619	5619	6 subsection (d) of Section 16-115 of the Public Utilities
5620	5620	7 Act, covering electricity generated by such facilities. In
5621	5621	8 the case of sourcing agreements that are power purchase
5622	5622	9 agreements, the contract price for electricity sales shall
5623	5623	10 be established on a cost of service basis. In the case of
5624	5624	11 sourcing agreements that are contracts for differences,
5625	5625	12 the contract price from which the reference price is
5626	5626	13 subtracted shall be established on a cost of service
5627	5627	14 basis. The Agency and the Commission may approve any such
5628	5628	15 utility sourcing agreements that do not exceed cost-based
5629	5629	16 benchmarks developed by the procurement administrator, in
5630	5630	17 consultation with the Commission staff, Agency staff and
5631	5631	18 the procurement monitor, subject to Commission review and
5632	5632	19 approval. The Commission shall have authority to inspect
5633	5633	20 all books and records associated with these clean coal
5634	5634	21 facilities during the term of any such contract.
5635	5635	22 (6) Costs incurred under this subsection (d) or
5636	5636	23 pursuant to a contract entered into under this subsection
5637	5637	24 (d) shall be deemed prudently incurred and reasonable in
5638	5638	25 amount and the electric utility shall be entitled to full
5639	5639	26 cost recovery pursuant to the tariffs filed with the
5640	5640
5641	5641
5642	5642
5643	5643
5644	5644
5645	5645	HB2205 - 156 - LRB103 28438 AMQ 54818 b
5646	5646
5647	5647
5648	5648	HB2205- 157 -LRB103 28438 AMQ 54818 b HB2205 - 157 - LRB103 28438 AMQ 54818 b
5649	5649	HB2205 - 157 - LRB103 28438 AMQ 54818 b
5650	5650	1 Commission.
5651	5651	2 (d-5) Zero emission standard.
5652	5652	3 (1) Beginning with the delivery year commencing on
5653	5653	4 June 1, 2017, the Agency shall, for electric utilities
5654	5654	5 that serve at least 100,000 retail customers in this
5655	5655	6 State, procure contracts with zero emission facilities
5656	5656	7 that are reasonably capable of generating cost-effective
5657	5657	8 zero emission credits in an amount approximately equal to
5658	5658	9 16% of the actual amount of electricity delivered by each
5659	5659	10 electric utility to retail customers in the State during
5660	5660	11 calendar year 2014. For an electric utility serving fewer
5661	5661	12 than 100,000 retail customers in this State that
5662	5662	13 requested, under Section 16-111.5 of the Public Utilities
5663	5663	14 Act, that the Agency procure power and energy for all or a
5664	5664	15 portion of the utility's Illinois load for the delivery
5665	5665	16 year commencing June 1, 2016, the Agency shall procure
5666	5666	17 contracts with zero emission facilities that are
5667	5667	18 reasonably capable of generating cost-effective zero
5668	5668	19 emission credits in an amount approximately equal to 16%
5669	5669	20 of the portion of power and energy to be procured by the
5670	5670	21 Agency for the utility. The duration of the contracts
5671	5671	22 procured under this subsection (d-5) shall be for a term
5672	5672	23 of 10 years ending May 31, 2027. The quantity of zero
5673	5673	24 emission credits to be procured under the contracts shall
5674	5674	25 be all of the zero emission credits generated by the zero
5675	5675	26 emission facility in each delivery year; however, if the
5676	5676
5677	5677
5678	5678
5679	5679
5680	5680
5681	5681	HB2205 - 157 - LRB103 28438 AMQ 54818 b
5682	5682
5683	5683
5684	5684	HB2205- 158 -LRB103 28438 AMQ 54818 b HB2205 - 158 - LRB103 28438 AMQ 54818 b
5685	5685	HB2205 - 158 - LRB103 28438 AMQ 54818 b
5686	5686	1 zero emission facility is owned by more than one entity,
5687	5687	2 then the quantity of zero emission credits to be procured
5688	5688	3 under the contracts shall be the amount of zero emission
5689	5689	4 credits that are generated from the portion of the zero
5690	5690	5 emission facility that is owned by the winning supplier.
5691	5691	6 The 16% value identified in this paragraph (1) is the
5692	5692	7 average of the percentage targets in subparagraph (B) of
5693	5693	8 paragraph (1) of subsection (c) of this Section for the 5
5694	5694	9 delivery years beginning June 1, 2017.
5695	5695	10 The procurement process shall be subject to the
5696	5696	11 following provisions:
5697	5697	12 (A) Those zero emission facilities that intend to
5698	5698	13 participate in the procurement shall submit to the
5699	5699	14 Agency the following eligibility information for each
5700	5700	15 zero emission facility on or before the date
5701	5701	16 established by the Agency:
5702	5702	17 (i) the in-service date and remaining useful
5703	5703	18 life of the zero emission facility;
5704	5704	19 (ii) the amount of power generated annually
5705	5705	20 for each of the years 2005 through 2015, and the
5706	5706	21 projected zero emission credits to be generated
5707	5707	22 over the remaining useful life of the zero
5708	5708	23 emission facility, which shall be used to
5709	5709	24 determine the capability of each facility;
5710	5710	25 (iii) the annual zero emission facility cost
5711	5711	26 projections, expressed on a per megawatthour
5712	5712
5713	5713
5714	5714
5715	5715
5716	5716
5717	5717	HB2205 - 158 - LRB103 28438 AMQ 54818 b
5718	5718
5719	5719
5720	5720	HB2205- 159 -LRB103 28438 AMQ 54818 b HB2205 - 159 - LRB103 28438 AMQ 54818 b
5721	5721	HB2205 - 159 - LRB103 28438 AMQ 54818 b
5722	5722	1 basis, over the next 6 delivery years, which shall
5723	5723	2 include the following: operation and maintenance
5724	5724	3 expenses; fully allocated overhead costs, which
5725	5725	4 shall be allocated using the methodology developed
5726	5726	5 by the Institute for Nuclear Power Operations;
5727	5727	6 fuel expenditures; non-fuel capital expenditures;
5728	5728	7 spent fuel expenditures; a return on working
5729	5729	8 capital; the cost of operational and market risks
5730	5730	9 that could be avoided by ceasing operation; and
5731	5731	10 any other costs necessary for continued
5732	5732	11 operations, provided that "necessary" means, for
5733	5733	12 purposes of this item (iii), that the costs could
5734	5734	13 reasonably be avoided only by ceasing operations
5735	5735	14 of the zero emission facility; and
5736	5736	15 (iv) a commitment to continue operating, for
5737	5737	16 the duration of the contract or contracts executed
5738	5738	17 under the procurement held under this subsection
5739	5739	18 (d-5), the zero emission facility that produces
5740	5740	19 the zero emission credits to be procured in the
5741	5741	20 procurement.
5742	5742	21 The information described in item (iii) of this
5743	5743	22 subparagraph (A) may be submitted on a confidential
5744	5744	23 basis and shall be treated and maintained by the
5745	5745	24 Agency, the procurement administrator, and the
5746	5746	25 Commission as confidential and proprietary and exempt
5747	5747	26 from disclosure under subparagraphs (a) and (g) of
5748	5748
5749	5749
5750	5750
5751	5751
5752	5752
5753	5753	HB2205 - 159 - LRB103 28438 AMQ 54818 b
5754	5754
5755	5755
5756	5756	HB2205- 160 -LRB103 28438 AMQ 54818 b HB2205 - 160 - LRB103 28438 AMQ 54818 b
5757	5757	HB2205 - 160 - LRB103 28438 AMQ 54818 b
5758	5758	1 paragraph (1) of Section 7 of the Freedom of
5759	5759	2 Information Act. The Office of Attorney General shall
5760	5760	3 have access to, and maintain the confidentiality of,
5761	5761	4 such information pursuant to Section 6.5 of the
5762	5762	5 Attorney General Act.
5763	5763	6 (B) The price for each zero emission credit
5764	5764	7 procured under this subsection (d-5) for each delivery
5765	5765	8 year shall be in an amount that equals the Social Cost
5766	5766	9 of Carbon, expressed on a price per megawatthour
5767	5767	10 basis. However, to ensure that the procurement remains
5768	5768	11 affordable to retail customers in this State if
5769	5769	12 electricity prices increase, the price in an
5770	5770	13 applicable delivery year shall be reduced below the
5771	5771	14 Social Cost of Carbon by the amount ("Price
5772	5772	15 Adjustment") by which the market price index for the
5773	5773	16 applicable delivery year exceeds the baseline market
5774	5774	17 price index for the consecutive 12-month period ending
5775	5775	18 May 31, 2016. If the Price Adjustment is greater than
5776	5776	19 or equal to the Social Cost of Carbon in an applicable
5777	5777	20 delivery year, then no payments shall be due in that
5778	5778	21 delivery year. The components of this calculation are
5779	5779	22 defined as follows:
5780	5780	23 (i) Social Cost of Carbon: The Social Cost of
5781	5781	24 Carbon is $16.50 per megawatthour, which is based
5782	5782	25 on the U.S. Interagency Working Group on Social
5783	5783	26 Cost of Carbon's price in the August 2016
5784	5784
5785	5785
5786	5786
5787	5787
5788	5788
5789	5789	HB2205 - 160 - LRB103 28438 AMQ 54818 b
5790	5790
5791	5791
5792	5792	HB2205- 161 -LRB103 28438 AMQ 54818 b HB2205 - 161 - LRB103 28438 AMQ 54818 b
5793	5793	HB2205 - 161 - LRB103 28438 AMQ 54818 b
5794	5794	1 Technical Update using a 3% discount rate,
5795	5795	2 adjusted for inflation for each year of the
5796	5796	3 program. Beginning with the delivery year
5797	5797	4 commencing June 1, 2023, the price per
5798	5798	5 megawatthour shall increase by $1 per
5799	5799	6 megawatthour, and continue to increase by an
5800	5800	7 additional $1 per megawatthour each delivery year
5801	5801	8 thereafter.
5802	5802	9 (ii) Baseline market price index: The baseline
5803	5803	10 market price index for the consecutive 12-month
5804	5804	11 period ending May 31, 2016 is $31.40 per
5805	5805	12 megawatthour, which is based on the sum of (aa)
5806	5806	13 the average day-ahead energy price across all
5807	5807	14 hours of such 12-month period at the PJM
5808	5808	15 Interconnection LLC Northern Illinois Hub, (bb)
5809	5809	16 50% multiplied by the Base Residual Auction, or
5810	5810	17 its successor, capacity price for the rest of the
5811	5811	18 RTO zone group determined by PJM Interconnection
5812	5812	19 LLC, divided by 24 hours per day, and (cc) 50%
5813	5813	20 multiplied by the Planning Resource Auction, or
5814	5814	21 its successor, capacity price for Zone 4
5815	5815	22 determined by the Midcontinent Independent System
5816	5816	23 Operator, Inc., divided by 24 hours per day.
5817	5817	24 (iii) Market price index: The market price
5818	5818	25 index for a delivery year shall be the sum of
5819	5819	26 projected energy prices and projected capacity
5820	5820
5821	5821
5822	5822
5823	5823
5824	5824
5825	5825	HB2205 - 161 - LRB103 28438 AMQ 54818 b
5826	5826
5827	5827
5828	5828	HB2205- 162 -LRB103 28438 AMQ 54818 b HB2205 - 162 - LRB103 28438 AMQ 54818 b
5829	5829	HB2205 - 162 - LRB103 28438 AMQ 54818 b
5830	5830	1 prices determined as follows:
5831	5831	2 (aa) Projected energy prices: the
5832	5832	3 projected energy prices for the applicable
5833	5833	4 delivery year shall be calculated once for the
5834	5834	5 year using the forward market price for the
5835	5835	6 PJM Interconnection, LLC Northern Illinois
5836	5836	7 Hub. The forward market price shall be
5837	5837	8 calculated as follows: the energy forward
5838	5838	9 prices for each month of the applicable
5839	5839	10 delivery year averaged for each trade date
5840	5840	11 during the calendar year immediately preceding
5841	5841	12 that delivery year to produce a single energy
5842	5842	13 forward price for the delivery year. The
5843	5843	14 forward market price calculation shall use
5844	5844	15 data published by the Intercontinental
5845	5845	16 Exchange, or its successor.
5846	5846	17 (bb) Projected capacity prices:
5847	5847	18 (I) For the delivery years commencing
5848	5848	19 June 1, 2017, June 1, 2018, and June 1,
5849	5849	20 2019, the projected capacity price shall
5850	5850	21 be equal to the sum of (1) 50% multiplied
5851	5851	22 by the Base Residual Auction, or its
5852	5852	23 successor, price for the rest of the RTO
5853	5853	24 zone group as determined by PJM
5854	5854	25 Interconnection LLC, divided by 24 hours
5855	5855	26 per day and, (2) 50% multiplied by the
5856	5856
5857	5857
5858	5858
5859	5859
5860	5860
5861	5861	HB2205 - 162 - LRB103 28438 AMQ 54818 b
5862	5862
5863	5863
5864	5864	HB2205- 163 -LRB103 28438 AMQ 54818 b HB2205 - 163 - LRB103 28438 AMQ 54818 b
5865	5865	HB2205 - 163 - LRB103 28438 AMQ 54818 b
5866	5866	1 resource auction price determined in the
5867	5867	2 resource auction administered by the
5868	5868	3 Midcontinent Independent System Operator,
5869	5869	4 Inc., in which the largest percentage of
5870	5870	5 load cleared for Local Resource Zone 4,
5871	5871	6 divided by 24 hours per day, and where
5872	5872	7 such price is determined by the
5873	5873	8 Midcontinent Independent System Operator,
5874	5874	9 Inc.
5875	5875	10 (II) For the delivery year commencing
5876	5876	11 June 1, 2020, and each year thereafter,
5877	5877	12 the projected capacity price shall be
5878	5878	13 equal to the sum of (1) 50% multiplied by
5879	5879	14 the Base Residual Auction, or its
5880	5880	15 successor, price for the ComEd zone as
5881	5881	16 determined by PJM Interconnection LLC,
5882	5882	17 divided by 24 hours per day, and (2) 50%
5883	5883	18 multiplied by the resource auction price
5884	5884	19 determined in the resource auction
5885	5885	20 administered by the Midcontinent
5886	5886	21 Independent System Operator, Inc., in
5887	5887	22 which the largest percentage of load
5888	5888	23 cleared for Local Resource Zone 4, divided
5889	5889	24 by 24 hours per day, and where such price
5890	5890	25 is determined by the Midcontinent
5891	5891	26 Independent System Operator, Inc.
5892	5892
5893	5893
5894	5894
5895	5895
5896	5896
5897	5897	HB2205 - 163 - LRB103 28438 AMQ 54818 b
5898	5898
5899	5899
5900	5900	HB2205- 164 -LRB103 28438 AMQ 54818 b HB2205 - 164 - LRB103 28438 AMQ 54818 b
5901	5901	HB2205 - 164 - LRB103 28438 AMQ 54818 b
5902	5902	1 For purposes of this subsection (d-5):
5903	5903	2 "Rest of the RTO" and "ComEd Zone" shall have
5904	5904	3 the meaning ascribed to them by PJM
5905	5905	4 Interconnection, LLC.
5906	5906	5 "RTO" means regional transmission
5907	5907	6 organization.
5908	5908	7 (C) No later than 45 days after June 1, 2017 (the
5909	5909	8 effective date of Public Act 99-906), the Agency shall
5910	5910	9 publish its proposed zero emission standard
5911	5911	10 procurement plan. The plan shall be consistent with
5912	5912	11 the provisions of this paragraph (1) and shall provide
5913	5913	12 that winning bids shall be selected based on public
5914	5914	13 interest criteria that include, but are not limited
5915	5915	14 to, minimizing carbon dioxide emissions that result
5916	5916	15 from electricity consumed in Illinois and minimizing
5917	5917	16 sulfur dioxide, nitrogen oxide, and particulate matter
5918	5918	17 emissions that adversely affect the citizens of this
5919	5919	18 State. In particular, the selection of winning bids
5920	5920	19 shall take into account the incremental environmental
5921	5921	20 benefits resulting from the procurement, such as any
5922	5922	21 existing environmental benefits that are preserved by
5923	5923	22 the procurements held under Public Act 99-906 and
5924	5924	23 would cease to exist if the procurements were not
5925	5925	24 held, including the preservation of zero emission
5926	5926	25 facilities. The plan shall also describe in detail how
5927	5927	26 each public interest factor shall be considered and
5928	5928
5929	5929
5930	5930
5931	5931
5932	5932
5933	5933	HB2205 - 164 - LRB103 28438 AMQ 54818 b
5934	5934
5935	5935
5936	5936	HB2205- 165 -LRB103 28438 AMQ 54818 b HB2205 - 165 - LRB103 28438 AMQ 54818 b
5937	5937	HB2205 - 165 - LRB103 28438 AMQ 54818 b
5938	5938	1 weighted in the bid selection process to ensure that
5939	5939	2 the public interest criteria are applied to the
5940	5940	3 procurement and given full effect.
5941	5941	4 For purposes of developing the plan, the Agency
5942	5942	5 shall consider any reports issued by a State agency,
5943	5943	6 board, or commission under House Resolution 1146 of
5944	5944	7 the 98th General Assembly and paragraph (4) of
5945	5945	8 subsection (d) of this Section, as well as publicly
5946	5946	9 available analyses and studies performed by or for
5947	5947	10 regional transmission organizations that serve the
5948	5948	11 State and their independent market monitors.
5949	5949	12 Upon publishing of the zero emission standard
5950	5950	13 procurement plan, copies of the plan shall be posted
5951	5951	14 and made publicly available on the Agency's website.
5952	5952	15 All interested parties shall have 10 days following
5953	5953	16 the date of posting to provide comment to the Agency on
5954	5954	17 the plan. All comments shall be posted to the Agency's
5955	5955	18 website. Following the end of the comment period, but
5956	5956	19 no more than 60 days later than June 1, 2017 (the
5957	5957	20 effective date of Public Act 99-906), the Agency shall
5958	5958	21 revise the plan as necessary based on the comments
5959	5959	22 received and file its zero emission standard
5960	5960	23 procurement plan with the Commission.
5961	5961	24 If the Commission determines that the plan will
5962	5962	25 result in the procurement of cost-effective zero
5963	5963	26 emission credits, then the Commission shall, after
5964	5964
5965	5965
5966	5966
5967	5967
5968	5968
5969	5969	HB2205 - 165 - LRB103 28438 AMQ 54818 b
5970	5970
5971	5971
5972	5972	HB2205- 166 -LRB103 28438 AMQ 54818 b HB2205 - 166 - LRB103 28438 AMQ 54818 b
5973	5973	HB2205 - 166 - LRB103 28438 AMQ 54818 b
5974	5974	1 notice and hearing, but no later than 45 days after the
5975	5975	2 Agency filed the plan, approve the plan or approve
5976	5976	3 with modification. For purposes of this subsection
5977	5977	4 (d-5), "cost effective" means the projected costs of
5978	5978	5 procuring zero emission credits from zero emission
5979	5979	6 facilities do not cause the limit stated in paragraph
5980	5980	7 (2) of this subsection to be exceeded.
5981	5981	8 (C-5) As part of the Commission's review and
5982	5982	9 acceptance or rejection of the procurement results,
5983	5983	10 the Commission shall, in its public notice of
5984	5984	11 successful bidders:
5985	5985	12 (i) identify how the winning bids satisfy the
5986	5986	13 public interest criteria described in subparagraph
5987	5987	14 (C) of this paragraph (1) of minimizing carbon
5988	5988	15 dioxide emissions that result from electricity
5989	5989	16 consumed in Illinois and minimizing sulfur
5990	5990	17 dioxide, nitrogen oxide, and particulate matter
5991	5991	18 emissions that adversely affect the citizens of
5992	5992	19 this State;
5993	5993	20 (ii) specifically address how the selection of
5994	5994	21 winning bids takes into account the incremental
5995	5995	22 environmental benefits resulting from the
5996	5996	23 procurement, including any existing environmental
5997	5997	24 benefits that are preserved by the procurements
5998	5998	25 held under Public Act 99-906 and would have ceased
5999	5999	26 to exist if the procurements had not been held,
6000	6000
6001	6001
6002	6002
6003	6003
6004	6004
6005	6005	HB2205 - 166 - LRB103 28438 AMQ 54818 b
6006	6006
6007	6007
6008	6008	HB2205- 167 -LRB103 28438 AMQ 54818 b HB2205 - 167 - LRB103 28438 AMQ 54818 b
6009	6009	HB2205 - 167 - LRB103 28438 AMQ 54818 b
6010	6010	1 such as the preservation of zero emission
6011	6011	2 facilities;
6012	6012	3 (iii) quantify the environmental benefit of
6013	6013	4 preserving the resources identified in item (ii)
6014	6014	5 of this subparagraph (C-5), including the
6015	6015	6 following:
6016	6016	7 (aa) the value of avoided greenhouse gas
6017	6017	8 emissions measured as the product of the zero
6018	6018	9 emission facilities' output over the contract
6019	6019	10 term multiplied by the U.S. Environmental
6020	6020	11 Protection Agency eGrid subregion carbon
6021	6021	12 dioxide emission rate and the U.S. Interagency
6022	6022	13 Working Group on Social Cost of Carbon's price
6023	6023	14 in the August 2016 Technical Update using a 3%
6024	6024	15 discount rate, adjusted for inflation for each
6025	6025	16 delivery year; and
6026	6026	17 (bb) the costs of replacement with other
6027	6027	18 zero carbon dioxide resources, including wind
6028	6028	19 and photovoltaic, based upon the simple
6029	6029	20 average of the following:
6030	6030	21 (I) the price, or if there is more
6031	6031	22 than one price, the average of the prices,
6032	6032	23 paid for renewable energy credits from new
6033	6033	24 utility-scale wind projects in the
6034	6034	25 procurement events specified in item (i)
6035	6035	26 of subparagraph (G) of paragraph (1) of
6036	6036
6037	6037
6038	6038
6039	6039
6040	6040
6041	6041	HB2205 - 167 - LRB103 28438 AMQ 54818 b
6042	6042
6043	6043
6044	6044	HB2205- 168 -LRB103 28438 AMQ 54818 b HB2205 - 168 - LRB103 28438 AMQ 54818 b
6045	6045	HB2205 - 168 - LRB103 28438 AMQ 54818 b
6046	6046	1 subsection (c) of this Section; and
6047	6047	2 (II) the price, or if there is more
6048	6048	3 than one price, the average of the prices,
6049	6049	4 paid for renewable energy credits from new
6050	6050	5 utility-scale solar projects and
6051	6051	6 brownfield site photovoltaic projects in
6052	6052	7 the procurement events specified in item
6053	6053	8 (ii) of subparagraph (G) of paragraph (1)
6054	6054	9 of subsection (c) of this Section and,
6055	6055	10 after January 1, 2015, renewable energy
6056	6056	11 credits from photovoltaic distributed
6057	6057	12 generation projects in procurement events
6058	6058	13 held under subsection (c) of this Section.
6059	6059	14 Each utility shall enter into binding contractual
6060	6060	15 arrangements with the winning suppliers.
6061	6061	16 The procurement described in this subsection
6062	6062	17 (d-5), including, but not limited to, the execution of
6063	6063	18 all contracts procured, shall be completed no later
6064	6064	19 than May 10, 2017. Based on the effective date of
6065	6065	20 Public Act 99-906, the Agency and Commission may, as
6066	6066	21 appropriate, modify the various dates and timelines
6067	6067	22 under this subparagraph and subparagraphs (C) and (D)
6068	6068	23 of this paragraph (1). The procurement and plan
6069	6069	24 approval processes required by this subsection (d-5)
6070	6070	25 shall be conducted in conjunction with the procurement
6071	6071	26 and plan approval processes required by subsection (c)
6072	6072
6073	6073
6074	6074
6075	6075
6076	6076
6077	6077	HB2205 - 168 - LRB103 28438 AMQ 54818 b
6078	6078
6079	6079
6080	6080	HB2205- 169 -LRB103 28438 AMQ 54818 b HB2205 - 169 - LRB103 28438 AMQ 54818 b
6081	6081	HB2205 - 169 - LRB103 28438 AMQ 54818 b
6082	6082	1 of this Section and Section 16-111.5 of the Public
6083	6083	2 Utilities Act, to the extent practicable.
6084	6084	3 Notwithstanding whether a procurement event is
6085	6085	4 conducted under Section 16-111.5 of the Public
6086	6086	5 Utilities Act, the Agency shall immediately initiate a
6087	6087	6 procurement process on June 1, 2017 (the effective
6088	6088	7 date of Public Act 99-906).
6089	6089	8 (D) Following the procurement event described in
6090	6090	9 this paragraph (1) and consistent with subparagraph
6091	6091	10 (B) of this paragraph (1), the Agency shall calculate
6092	6092	11 the payments to be made under each contract for the
6093	6093	12 next delivery year based on the market price index for
6094	6094	13 that delivery year. The Agency shall publish the
6095	6095	14 payment calculations no later than May 25, 2017 and
6096	6096	15 every May 25 thereafter.
6097	6097	16 (E) Notwithstanding the requirements of this
6098	6098	17 subsection (d-5), the contracts executed under this
6099	6099	18 subsection (d-5) shall provide that the zero emission
6100	6100	19 facility may, as applicable, suspend or terminate
6101	6101	20 performance under the contracts in the following
6102	6102	21 instances:
6103	6103	22 (i) A zero emission facility shall be excused
6104	6104	23 from its performance under the contract for any
6105	6105	24 cause beyond the control of the resource,
6106	6106	25 including, but not restricted to, acts of God,
6107	6107	26 flood, drought, earthquake, storm, fire,
6108	6108
6109	6109
6110	6110
6111	6111
6112	6112
6113	6113	HB2205 - 169 - LRB103 28438 AMQ 54818 b
6114	6114
6115	6115
6116	6116	HB2205- 170 -LRB103 28438 AMQ 54818 b HB2205 - 170 - LRB103 28438 AMQ 54818 b
6117	6117	HB2205 - 170 - LRB103 28438 AMQ 54818 b
6118	6118	1 lightning, epidemic, war, riot, civil disturbance
6119	6119	2 or disobedience, labor dispute, labor or material
6120	6120	3 shortage, sabotage, acts of public enemy,
6121	6121	4 explosions, orders, regulations or restrictions
6122	6122	5 imposed by governmental, military, or lawfully
6123	6123	6 established civilian authorities, which, in any of
6124	6124	7 the foregoing cases, by exercise of commercially
6125	6125	8 reasonable efforts the zero emission facility
6126	6126	9 could not reasonably have been expected to avoid,
6127	6127	10 and which, by the exercise of commercially
6128	6128	11 reasonable efforts, it has been unable to
6129	6129	12 overcome. In such event, the zero emission
6130	6130	13 facility shall be excused from performance for the
6131	6131	14 duration of the event, including, but not limited
6132	6132	15 to, delivery of zero emission credits, and no
6133	6133	16 payment shall be due to the zero emission facility
6134	6134	17 during the duration of the event.
6135	6135	18 (ii) A zero emission facility shall be
6136	6136	19 permitted to terminate the contract if legislation
6137	6137	20 is enacted into law by the General Assembly that
6138	6138	21 imposes or authorizes a new tax, special
6139	6139	22 assessment, or fee on the generation of
6140	6140	23 electricity, the ownership or leasehold of a
6141	6141	24 generating unit, or the privilege or occupation of
6142	6142	25 such generation, ownership, or leasehold of
6143	6143	26 generation units by a zero emission facility.
6144	6144
6145	6145
6146	6146
6147	6147
6148	6148
6149	6149	HB2205 - 170 - LRB103 28438 AMQ 54818 b
6150	6150
6151	6151
6152	6152	HB2205- 171 -LRB103 28438 AMQ 54818 b HB2205 - 171 - LRB103 28438 AMQ 54818 b
6153	6153	HB2205 - 171 - LRB103 28438 AMQ 54818 b
6154	6154	1 However, the provisions of this item (ii) do not
6155	6155	2 apply to any generally applicable tax, special
6156	6156	3 assessment or fee, or requirements imposed by
6157	6157	4 federal law.
6158	6158	5 (iii) A zero emission facility shall be
6159	6159	6 permitted to terminate the contract in the event
6160	6160	7 that the resource requires capital expenditures in
6161	6161	8 excess of $40,000,000 that were neither known nor
6162	6162	9 reasonably foreseeable at the time it executed the
6163	6163	10 contract and that a prudent owner or operator of
6164	6164	11 such resource would not undertake.
6165	6165	12 (iv) A zero emission facility shall be
6166	6166	13 permitted to terminate the contract in the event
6167	6167	14 the Nuclear Regulatory Commission terminates the
6168	6168	15 resource's license.
6169	6169	16 (F) If the zero emission facility elects to
6170	6170	17 terminate a contract under subparagraph (E) of this
6171	6171	18 paragraph (1), then the Commission shall reopen the
6172	6172	19 docket in which the Commission approved the zero
6173	6173	20 emission standard procurement plan under subparagraph
6174	6174	21 (C) of this paragraph (1) and, after notice and
6175	6175	22 hearing, enter an order acknowledging the contract
6176	6176	23 termination election if such termination is consistent
6177	6177	24 with the provisions of this subsection (d-5).
6178	6178	25 (2) For purposes of this subsection (d-5), the amount
6179	6179	26 paid per kilowatthour means the total amount paid for
6180	6180
6181	6181
6182	6182
6183	6183
6184	6184
6185	6185	HB2205 - 171 - LRB103 28438 AMQ 54818 b
6186	6186
6187	6187
6188	6188	HB2205- 172 -LRB103 28438 AMQ 54818 b HB2205 - 172 - LRB103 28438 AMQ 54818 b
6189	6189	HB2205 - 172 - LRB103 28438 AMQ 54818 b
6190	6190	1 electric service expressed on a per kilowatthour basis.
6191	6191	2 For purposes of this subsection (d-5), the total amount
6192	6192	3 paid for electric service includes, without limitation,
6193	6193	4 amounts paid for supply, transmission, distribution,
6194	6194	5 surcharges, and add-on taxes.
6195	6195	6 Notwithstanding the requirements of this subsection
6196	6196	7 (d-5), the contracts executed under this subsection (d-5)
6197	6197	8 shall provide that the total of zero emission credits
6198	6198	9 procured under a procurement plan shall be subject to the
6199	6199	10 limitations of this paragraph (2). For each delivery year,
6200	6200	11 the contractual volume receiving payments in such year
6201	6201	12 shall be reduced for all retail customers based on the
6202	6202	13 amount necessary to limit the net increase that delivery
6203	6203	14 year to the costs of those credits included in the amounts
6204	6204	15 paid by eligible retail customers in connection with
6205	6205	16 electric service to no more than 1.65% of the amount paid
6206	6206	17 per kilowatthour by eligible retail customers during the
6207	6207	18 year ending May 31, 2009. The result of this computation
6208	6208	19 shall apply to and reduce the procurement for all retail
6209	6209	20 customers, and all those customers shall pay the same
6210	6210	21 single, uniform cents per kilowatthour charge under
6211	6211	22 subsection (k) of Section 16-108 of the Public Utilities
6212	6212	23 Act. To arrive at a maximum dollar amount of zero emission
6213	6213	24 credits to be paid for the particular delivery year, the
6214	6214	25 resulting per kilowatthour amount shall be applied to the
6215	6215	26 actual amount of kilowatthours of electricity delivered by
6216	6216
6217	6217
6218	6218
6219	6219
6220	6220
6221	6221	HB2205 - 172 - LRB103 28438 AMQ 54818 b
6222	6222
6223	6223
6224	6224	HB2205- 173 -LRB103 28438 AMQ 54818 b HB2205 - 173 - LRB103 28438 AMQ 54818 b
6225	6225	HB2205 - 173 - LRB103 28438 AMQ 54818 b
6226	6226	1 the electric utility in the delivery year immediately
6227	6227	2 prior to the procurement, to all retail customers in its
6228	6228	3 service territory. Unpaid contractual volume for any
6229	6229	4 delivery year shall be paid in any subsequent delivery
6230	6230	5 year in which such payments can be made without exceeding
6231	6231	6 the amount specified in this paragraph (2). The
6232	6232	7 calculations required by this paragraph (2) shall be made
6233	6233	8 only once for each procurement plan year. Once the
6234	6234	9 determination as to the amount of zero emission credits to
6235	6235	10 be paid is made based on the calculations set forth in this
6236	6236	11 paragraph (2), no subsequent rate impact determinations
6237	6237	12 shall be made and no adjustments to those contract amounts
6238	6238	13 shall be allowed. All costs incurred under those contracts
6239	6239	14 and in implementing this subsection (d-5) shall be
6240	6240	15 recovered by the electric utility as provided in this
6241	6241	16 Section.
6242	6242	17 No later than June 30, 2019, the Commission shall
6243	6243	18 review the limitation on the amount of zero emission
6244	6244	19 credits procured under this subsection (d-5) and report to
6245	6245	20 the General Assembly its findings as to whether that
6246	6246	21 limitation unduly constrains the procurement of
6247	6247	22 cost-effective zero emission credits.
6248	6248	23 (3) Six years after the execution of a contract under
6249	6249	24 this subsection (d-5), the Agency shall determine whether
6250	6250	25 the actual zero emission credit payments received by the
6251	6251	26 supplier over the 6-year period exceed the Average ZEC
6252	6252
6253	6253
6254	6254
6255	6255
6256	6256
6257	6257	HB2205 - 173 - LRB103 28438 AMQ 54818 b
6258	6258
6259	6259
6260	6260	HB2205- 174 -LRB103 28438 AMQ 54818 b HB2205 - 174 - LRB103 28438 AMQ 54818 b
6261	6261	HB2205 - 174 - LRB103 28438 AMQ 54818 b
6262	6262	1 Payment. In addition, at the end of the term of a contract
6263	6263	2 executed under this subsection (d-5), or at the time, if
6264	6264	3 any, a zero emission facility's contract is terminated
6265	6265	4 under subparagraph (E) of paragraph (1) of this subsection
6266	6266	5 (d-5), then the Agency shall determine whether the actual
6267	6267	6 zero emission credit payments received by the supplier
6268	6268	7 over the term of the contract exceed the Average ZEC
6269	6269	8 Payment, after taking into account any amounts previously
6270	6270	9 credited back to the utility under this paragraph (3). If
6271	6271	10 the Agency determines that the actual zero emission credit
6272	6272	11 payments received by the supplier over the relevant period
6273	6273	12 exceed the Average ZEC Payment, then the supplier shall
6274	6274	13 credit the difference back to the utility. The amount of
6275	6275	14 the credit shall be remitted to the applicable electric
6276	6276	15 utility no later than 120 days after the Agency's
6277	6277	16 determination, which the utility shall reflect as a credit
6278	6278	17 on its retail customer bills as soon as practicable;
6279	6279	18 however, the credit remitted to the utility shall not
6280	6280	19 exceed the total amount of payments received by the
6281	6281	20 facility under its contract.
6282	6282	21 For purposes of this Section, the Average ZEC Payment
6283	6283	22 shall be calculated by multiplying the quantity of zero
6284	6284	23 emission credits delivered under the contract times the
6285	6285	24 average contract price. The average contract price shall
6286	6286	25 be determined by subtracting the amount calculated under
6287	6287	26 subparagraph (B) of this paragraph (3) from the amount
6288	6288
6289	6289
6290	6290
6291	6291
6292	6292
6293	6293	HB2205 - 174 - LRB103 28438 AMQ 54818 b
6294	6294
6295	6295
6296	6296	HB2205- 175 -LRB103 28438 AMQ 54818 b HB2205 - 175 - LRB103 28438 AMQ 54818 b
6297	6297	HB2205 - 175 - LRB103 28438 AMQ 54818 b
6298	6298	1 calculated under subparagraph (A) of this paragraph (3),
6299	6299	2 as follows:
6300	6300	3 (A) The average of the Social Cost of Carbon, as
6301	6301	4 defined in subparagraph (B) of paragraph (1) of this
6302	6302	5 subsection (d-5), during the term of the contract.
6303	6303	6 (B) The average of the market price indices, as
6304	6304	7 defined in subparagraph (B) of paragraph (1) of this
6305	6305	8 subsection (d-5), during the term of the contract,
6306	6306	9 minus the baseline market price index, as defined in
6307	6307	10 subparagraph (B) of paragraph (1) of this subsection
6308	6308	11 (d-5).
6309	6309	12 If the subtraction yields a negative number, then the
6310	6310	13 Average ZEC Payment shall be zero.
6311	6311	14 (4) Cost-effective zero emission credits procured from
6312	6312	15 zero emission facilities shall satisfy the applicable
6313	6313	16 definitions set forth in Section 1-10 of this Act.
6314	6314	17 (5) The electric utility shall retire all zero
6315	6315	18 emission credits used to comply with the requirements of
6316	6316	19 this subsection (d-5).
6317	6317	20 (6) Electric utilities shall be entitled to recover
6318	6318	21 all of the costs associated with the procurement of zero
6319	6319	22 emission credits through an automatic adjustment clause
6320	6320	23 tariff in accordance with subsection (k) and (m) of
6321	6321	24 Section 16-108 of the Public Utilities Act, and the
6322	6322	25 contracts executed under this subsection (d-5) shall
6323	6323	26 provide that the utilities' payment obligations under such
6324	6324
6325	6325
6326	6326
6327	6327
6328	6328
6329	6329	HB2205 - 175 - LRB103 28438 AMQ 54818 b
6330	6330
6331	6331
6332	6332	HB2205- 176 -LRB103 28438 AMQ 54818 b HB2205 - 176 - LRB103 28438 AMQ 54818 b
6333	6333	HB2205 - 176 - LRB103 28438 AMQ 54818 b
6334	6334	1 contracts shall be reduced if an adjustment is required
6335	6335	2 under subsection (m) of Section 16-108 of the Public
6336	6336	3 Utilities Act.
6337	6337	4 (7) This subsection (d-5) shall become inoperative on
6338	6338	5 January 1, 2028.
6339	6339	6 (d-10) Nuclear Plant Assistance; carbon mitigation
6340	6340	7 credits.
6341	6341	8 (1) The General Assembly finds:
6342	6342	9 (A) The health, welfare, and prosperity of all
6343	6343	10 Illinois citizens require that the State of Illinois act
6344	6344	11 to avoid and not increase carbon emissions from electric
6345	6345	12 generation sources while continuing to ensure affordable,
6346	6346	13 stable, and reliable electricity to all citizens.
6347	6347	14 (B) Absent immediate action by the State to preserve
6348	6348	15 existing carbon-free energy resources, those resources may
6349	6349	16 retire, and the electric generation needs of Illinois'
6350	6350	17 retail customers may be met instead by facilities that
6351	6351	18 emit significant amounts of carbon pollution and other
6352	6352	19 harmful air pollutants at a high social and economic cost
6353	6353	20 until Illinois is able to develop other forms of clean
6354	6354	21 energy.
6355	6355	22 (C) The General Assembly finds that nuclear power
6356	6356	23 generation is necessary for the State's transition to 100%
6357	6357	24 clean energy, and ensuring continued operation of nuclear
6358	6358	25 plants advances environmental and public health interests
6359	6359	26 through providing carbon-free electricity while reducing
6360	6360
6361	6361
6362	6362
6363	6363
6364	6364
6365	6365	HB2205 - 176 - LRB103 28438 AMQ 54818 b
6366	6366
6367	6367
6368	6368	HB2205- 177 -LRB103 28438 AMQ 54818 b HB2205 - 177 - LRB103 28438 AMQ 54818 b
6369	6369	HB2205 - 177 - LRB103 28438 AMQ 54818 b
6370	6370	1 the air pollution profile of the Illinois energy
6371	6371	2 generation fleet.
6372	6372	3 (D) The clean energy attributes of nuclear generation
6373	6373	4 facilities support the State in its efforts to achieve
6374	6374	5 100% clean energy.
6375	6375	6 (E) The State currently invests in various forms of
6376	6376	7 clean energy, including, but not limited to, renewable
6377	6377	8 energy, energy efficiency, and low-emission vehicles,
6378	6378	9 among others.
6379	6379	10 (F) The Environmental Protection Agency commissioned
6380	6380	11 an independent audit which provided a detailed assessment
6381	6381	12 of the financial condition of the Illinois nuclear fleet
6382	6382	13 to evaluate its financial viability and whether the
6383	6383	14 environmental benefits of such resources were at risk. The
6384	6384	15 report identified the risk of losing the environmental
6385	6385	16 benefits of several specific nuclear units. The report
6386	6386	17 also identified that the LaSalle County Generating Station
6387	6387	18 will continue to operate through 2026 and therefore is not
6388	6388	19 eligible to participate in the carbon mitigation credit
6389	6389	20 program.
6390	6390	21 (G) Nuclear plants provide carbon-free energy, which
6391	6391	22 helps to avoid many health-related negative impacts for
6392	6392	23 Illinois residents.
6393	6393	24 (H) The procurement of carbon mitigation credits
6394	6394	25 representing the environmental benefits of carbon-free
6395	6395	26 generation will further the State's efforts at achieving
6396	6396
6397	6397
6398	6398
6399	6399
6400	6400
6401	6401	HB2205 - 177 - LRB103 28438 AMQ 54818 b
6402	6402
6403	6403
6404	6404	HB2205- 178 -LRB103 28438 AMQ 54818 b HB2205 - 178 - LRB103 28438 AMQ 54818 b
6405	6405	HB2205 - 178 - LRB103 28438 AMQ 54818 b
6406	6406	1 100% clean energy and decarbonizing the electricity sector
6407	6407	2 in a safe, reliable, and affordable manner. Further, the
6408	6408	3 procurement of carbon emission credits will enhance the
6409	6409	4 health and welfare of Illinois residents through decreased
6410	6410	5 reliance on more highly polluting generation.
6411	6411	6 (I) The General Assembly therefore finds it necessary
6412	6412	7 to establish carbon mitigation credits to ensure decreased
6413	6413	8 reliance on more carbon-intensive energy resources, for
6414	6414	9 transitioning to a fully decarbonized electricity sector,
6415	6415	10 and to help ensure health and welfare of the State's
6416	6416	11 residents.
6417	6417	12 (2) As used in this subsection:
6418	6418	13 "Baseline costs" means costs used to establish a customer
6419	6419	14 protection cap that have been evaluated through an independent
6420	6420	15 audit of a carbon-free energy resource conducted by the
6421	6421	16 Environmental Protection Agency that evaluated projected
6422	6422	17 annual costs for operation and maintenance expenses; fully
6423	6423	18 allocated overhead costs, which shall be allocated using the
6424	6424	19 methodology developed by the Institute for Nuclear Power
6425	6425	20 Operations; fuel expenditures; nonfuel capital expenditures;
6426	6426	21 spent fuel expenditures; a return on working capital; the cost
6427	6427	22 of operational and market risks that could be avoided by
6428	6428	23 ceasing operation; and any other costs necessary for continued
6429	6429	24 operations, provided that "necessary" means, for purposes of
6430	6430	25 this definition, that the costs could reasonably be avoided
6431	6431	26 only by ceasing operations of the carbon-free energy resource.
6432	6432
6433	6433
6434	6434
6435	6435
6436	6436
6437	6437	HB2205 - 178 - LRB103 28438 AMQ 54818 b
6438	6438
6439	6439
6440	6440	HB2205- 179 -LRB103 28438 AMQ 54818 b HB2205 - 179 - LRB103 28438 AMQ 54818 b
6441	6441	HB2205 - 179 - LRB103 28438 AMQ 54818 b
6442	6442	1 "Carbon mitigation credit" means a tradable credit that
6443	6443	2 represents the carbon emission reduction attributes of one
6444	6444	3 megawatt-hour of energy produced from a carbon-free energy
6445	6445	4 resource.
6446	6446	5 "Carbon-free energy resource" means a generation facility
6447	6447	6 that: (1) is fueled by nuclear power; and (2) is
6448	6448	7 interconnected to PJM Interconnection, LLC.
6449	6449	8 (3) Procurement.
6450	6450	9 (A) Beginning with the delivery year commencing on
6451	6451	10 June 1, 2022, the Agency shall, for electric utilities
6452	6452	11 serving at least 3,000,000 retail customers in the State,
6453	6453	12 seek to procure contracts for no more than approximately
6454	6454	13 54,500,000 cost-effective carbon mitigation credits from
6455	6455	14 carbon-free energy resources because such credits are
6456	6456	15 necessary to support current levels of carbon-free energy
6457	6457	16 generation and ensure the State meets its carbon dioxide
6458	6458	17 emissions reduction goals. The Agency shall not make a
6459	6459	18 partial award of a contract for carbon mitigation credits
6460	6460	19 covering a fractional amount of a carbon-free energy
6461	6461	20 resource's projected output.
6462	6462	21 (B) Each carbon-free energy resource that intends to
6463	6463	22 participate in a procurement shall be required to submit
6464	6464	23 to the Agency the following information for the resource
6465	6465	24 on or before the date established by the Agency:
6466	6466	25 (i) the in-service date and remaining useful life
6467	6467	26 of the carbon-free energy resource;
6468	6468
6469	6469
6470	6470
6471	6471
6472	6472
6473	6473	HB2205 - 179 - LRB103 28438 AMQ 54818 b
6474	6474
6475	6475
6476	6476	HB2205- 180 -LRB103 28438 AMQ 54818 b HB2205 - 180 - LRB103 28438 AMQ 54818 b
6477	6477	HB2205 - 180 - LRB103 28438 AMQ 54818 b
6478	6478	1 (ii) the amount of power generated annually for
6479	6479	2 each of the past 10 years, which shall be used to
6480	6480	3 determine the capability of each facility;
6481	6481	4 (iii) a commitment to be reflected in any contract
6482	6482	5 entered into pursuant to this subsection (d-10) to
6483	6483	6 continue operating the carbon-free energy resource at
6484	6484	7 a capacity factor of at least 88% annually on average
6485	6485	8 for the duration of the contract or contracts executed
6486	6486	9 under the procurement held under this subsection
6487	6487	10 (d-10), except in an instance described in
6488	6488	11 subparagraph (E) of paragraph (1) of subsection (d-5)
6489	6489	12 of this Section or made impracticable as a result of
6490	6490	13 compliance with law or regulation;
6491	6491	14 (iv) financial need and the risk of loss of the
6492	6492	15 environmental benefits of such resource, which shall
6493	6493	16 include the following information:
6494	6494	17 (I) the carbon-free energy resource's cost
6495	6495	18 projections, expressed on a per megawatt-hour
6496	6496	19 basis, over the next 5 delivery years, which shall
6497	6497	20 include the following: operation and maintenance
6498	6498	21 expenses; fully allocated overhead costs, which
6499	6499	22 shall be allocated using the methodology developed
6500	6500	23 by the Institute for Nuclear Power Operations;
6501	6501	24 fuel expenditures; nonfuel capital expenditures;
6502	6502	25 spent fuel expenditures; a return on working
6503	6503	26 capital; the cost of operational and market risks
6504	6504
6505	6505
6506	6506
6507	6507
6508	6508
6509	6509	HB2205 - 180 - LRB103 28438 AMQ 54818 b
6510	6510
6511	6511
6512	6512	HB2205- 181 -LRB103 28438 AMQ 54818 b HB2205 - 181 - LRB103 28438 AMQ 54818 b
6513	6513	HB2205 - 181 - LRB103 28438 AMQ 54818 b
6514	6514	1 that could be avoided by ceasing operation; and
6515	6515	2 any other costs necessary for continued
6516	6516	3 operations, provided that "necessary" means, for
6517	6517	4 purposes of this subitem (I), that the costs could
6518	6518	5 reasonably be avoided only by ceasing operations
6519	6519	6 of the carbon-free energy resource; and
6520	6520	7 (II) the carbon-free energy resource's revenue
6521	6521	8 projections, including energy, capacity, ancillary
6522	6522	9 services, any other direct State support, known or
6523	6523	10 anticipated federal attribute credits, known or
6524	6524	11 anticipated tax credits, and any other direct
6525	6525	12 federal support.
6526	6526	13 The information described in this subparagraph (B) may
6527	6527	14 be submitted on a confidential basis and shall be treated
6528	6528	15 and maintained by the Agency, the procurement
6529	6529	16 administrator, and the Commission as confidential and
6530	6530	17 proprietary and exempt from disclosure under subparagraphs
6531	6531	18 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
6532	6532	19 Information Act. The Office of the Attorney General shall
6533	6533	20 have access to, and maintain the confidentiality of, such
6534	6534	21 information pursuant to Section 6.5 of the Attorney
6535	6535	22 General Act.
6536	6536	23 (C) The Agency shall solicit bids for the contracts
6537	6537	24 described in this subsection (d-10) from carbon-free
6538	6538	25 energy resources that have satisfied the requirements of
6539	6539	26 subparagraph (B) of this paragraph (3). The contracts
6540	6540
6541	6541
6542	6542
6543	6543
6544	6544
6545	6545	HB2205 - 181 - LRB103 28438 AMQ 54818 b
6546	6546
6547	6547
6548	6548	HB2205- 182 -LRB103 28438 AMQ 54818 b HB2205 - 182 - LRB103 28438 AMQ 54818 b
6549	6549	HB2205 - 182 - LRB103 28438 AMQ 54818 b
6550	6550	1 procured pursuant to a procurement event shall reflect,
6551	6551	2 and be subject to, the following terms, requirements, and
6552	6552	3 limitations:
6553	6553	4 (i) Contracts are for delivery of carbon
6554	6554	5 mitigation credits, and are not energy or capacity
6555	6555	6 sales contracts requiring physical delivery. Pursuant
6556	6556	7 to item (iii), contract payments shall fully deduct
6557	6557	8 the value of any monetized federal production tax
6558	6558	9 credits, credits issued pursuant to a federal clean
6559	6559	10 energy standard, and other federal credits if
6560	6560	11 applicable.
6561	6561	12 (ii) Contracts for carbon mitigation credits shall
6562	6562	13 commence with the delivery year beginning on June 1,
6563	6563	14 2022 and shall be for a term of 5 delivery years
6564	6564	15 concluding on May 31, 2027.
6565	6565	16 (iii) The price per carbon mitigation credit to be
6566	6566	17 paid under a contract for a given delivery year shall
6567	6567	18 be equal to an accepted bid price less the sum of:
6568	6568	19 (I) one of the following energy price indices,
6569	6569	20 selected by the bidder at the time of the bid for
6570	6570	21 the term of the contract:
6571	6571	22 (aa) the weighted-average hourly day-ahead
6572	6572	23 price for the applicable delivery year at the
6573	6573	24 busbar of all resources procured pursuant to
6574	6574	25 this subsection (d-10), weighted by actual
6575	6575	26 production from the resources; or
6576	6576
6577	6577
6578	6578
6579	6579
6580	6580
6581	6581	HB2205 - 182 - LRB103 28438 AMQ 54818 b
6582	6582
6583	6583
6584	6584	HB2205- 183 -LRB103 28438 AMQ 54818 b HB2205 - 183 - LRB103 28438 AMQ 54818 b
6585	6585	HB2205 - 183 - LRB103 28438 AMQ 54818 b
6586	6586	1 (bb) the projected energy price for the
6587	6587	2 PJM Interconnection, LLC Northern Illinois Hub
6588	6588	3 for the applicable delivery year determined
6589	6589	4 according to subitem (aa) of item (iii) of
6590	6590	5 subparagraph (B) of paragraph (1) of
6591	6591	6 subsection (d-5).
6592	6592	7 (II) the Base Residual Auction Capacity Price
6593	6593	8 for the ComEd zone as determined by PJM
6594	6594	9 Interconnection, LLC, divided by 24 hours per day,
6595	6595	10 for the applicable delivery year for the first 3
6596	6596	11 delivery years, and then any subsequent delivery
6597	6597	12 years unless the PJM Interconnection, LLC applies
6598	6598	13 the Minimum Offer Price Rule to participating
6599	6599	14 carbon-free energy resources because they supply
6600	6600	15 carbon mitigation credits pursuant to this Section
6601	6601	16 at which time, upon notice by the carbon-free
6602	6602	17 energy resource to the Commission and subject to
6603	6603	18 the Commission's confirmation, the value under
6604	6604	19 this subitem shall be zero, as further described
6605	6605	20 in the carbon mitigation credit procurement plan;
6606	6606	21 and
6607	6607	22 (III) any value of monetized federal tax
6608	6608	23 credits, direct payments, or similar subsidy
6609	6609	24 provided to the carbon-free energy resource from
6610	6610	25 any unit of government that is not already
6611	6611	26 reflected in energy prices.
6612	6612
6613	6613
6614	6614
6615	6615
6616	6616
6617	6617	HB2205 - 183 - LRB103 28438 AMQ 54818 b
6618	6618
6619	6619
6620	6620	HB2205- 184 -LRB103 28438 AMQ 54818 b HB2205 - 184 - LRB103 28438 AMQ 54818 b
6621	6621	HB2205 - 184 - LRB103 28438 AMQ 54818 b
6622	6622	1 If the price-per-megawatt-hour calculation
6623	6623	2 performed under item (iii) of this subparagraph (C)
6624	6624	3 for a given delivery year results in a net positive
6625	6625	4 value, then the electric utility counterparty to the
6626	6626	5 contract shall multiply such net value by the
6627	6627	6 applicable contract quantity and remit the amount to
6628	6628	7 the supplier.
6629	6629	8 To protect retail customers from retail rate
6630	6630	9 impacts that may arise upon the initiation of carbon
6631	6631	10 policy changes, if the price-per-megawatt-hour
6632	6632	11 calculation performed under item (iii) of this
6633	6633	12 subparagraph (C) for a given delivery year results in
6634	6634	13 a net negative value, then the supplier counterparty
6635	6635	14 to the contract shall multiply such net value by the
6636	6636	15 applicable contract quantity and remit such amount to
6637	6637	16 the electric utility counterparty. The electric
6638	6638	17 utility shall reflect such amounts remitted by
6639	6639	18 suppliers as a credit on its retail customer bills as
6640	6640	19 soon as practicable.
6641	6641	20 (iv) To ensure that retail customers in Northern
6642	6642	21 Illinois do not pay more for carbon mitigation credits
6643	6643	22 than the value such credits provide, and
6644	6644	23 notwithstanding the provisions of this subsection
6645	6645	24 (d-10), the Agency shall not accept bids for contracts
6646	6646	25 that exceed a customer protection cap equal to the
6647	6647	26 baseline costs of carbon-free energy resources.
6648	6648
6649	6649
6650	6650
6651	6651
6652	6652
6653	6653	HB2205 - 184 - LRB103 28438 AMQ 54818 b
6654	6654
6655	6655
6656	6656	HB2205- 185 -LRB103 28438 AMQ 54818 b HB2205 - 185 - LRB103 28438 AMQ 54818 b
6657	6657	HB2205 - 185 - LRB103 28438 AMQ 54818 b
6658	6658	1 The baseline costs for the applicable year shall
6659	6659	2 be the following:
6660	6660	3 (I) For the delivery year beginning June 1,
6661	6661	4 2022, the baseline costs shall be an amount equal
6662	6662	5 to $30.30 per megawatt-hour.
6663	6663	6 (II) For the delivery year beginning June 1,
6664	6664	7 2023, the baseline costs shall be an amount equal
6665	6665	8 to $32.50 per megawatt-hour.
6666	6666	9 (III) For the delivery year beginning June 1,
6667	6667	10 2024, the baseline costs shall be an amount equal
6668	6668	11 to $33.43 per megawatt-hour.
6669	6669	12 (IV) For the delivery year beginning June 1,
6670	6670	13 2025, the baseline costs shall be an amount equal
6671	6671	14 to $33.50 per megawatt-hour.
6672	6672	15 (V) For the delivery year beginning June 1,
6673	6673	16 2026, the baseline costs shall be an amount equal
6674	6674	17 to $34.50 per megawatt-hour.
6675	6675	18 An Environmental Protection Agency consultant
6676	6676	19 forecast, included in a report issued April 14, 2021,
6677	6677	20 projects that a carbon-free energy resource has the
6678	6678	21 opportunity to earn on average approximately $30.28
6679	6679	22 per megawatt-hour, for the sale of energy and capacity
6680	6680	23 during the time period between 2022 and 2027.
6681	6681	24 Therefore, the sale of carbon mitigation credits
6682	6682	25 provides the opportunity to receive an additional
6683	6683	26 amount per megawatt-hour in addition to the projected
6684	6684
6685	6685
6686	6686
6687	6687
6688	6688
6689	6689	HB2205 - 185 - LRB103 28438 AMQ 54818 b
6690	6690
6691	6691
6692	6692	HB2205- 186 -LRB103 28438 AMQ 54818 b HB2205 - 186 - LRB103 28438 AMQ 54818 b
6693	6693	HB2205 - 186 - LRB103 28438 AMQ 54818 b
6694	6694	1 prices for energy and capacity.
6695	6695	2 Although actual energy and capacity prices may
6696	6696	3 vary from year-to-year, the General Assembly finds
6697	6697	4 that this customer protection cap will help ensure
6698	6698	5 that the cost of carbon mitigation credits will be
6699	6699	6 less than its value, based upon the social cost of
6700	6700	7 carbon identified in the Technical Support Document
6701	6701	8 issued in February 2021 by the U.S. Interagency
6702	6702	9 Working Group on Social Cost of Greenhouse Gases and
6703	6703	10 the PJM Interconnection, LLC carbon dioxide marginal
6704	6704	11 emission rate for 2020, and that a carbon-free energy
6705	6705	12 resource receiving payment for carbon mitigation
6706	6706	13 credits receives no more than necessary to keep those
6707	6707	14 units in operation.
6708	6708	15 (D) No later than 7 days after the effective date of
6709	6709	16 this amendatory Act of the 102nd General Assembly, the
6710	6710	17 Agency shall publish its proposed carbon mitigation credit
6711	6711	18 procurement plan. The Plan shall provide that winning bids
6712	6712	19 shall be selected by taking into consideration which
6713	6713	20 resources best match public interest criteria that
6714	6714	21 include, but are not limited to, minimizing carbon dioxide
6715	6715	22 emissions that result from electricity consumed in
6716	6716	23 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6717	6717	24 and particulate matter emissions that adversely affect the
6718	6718	25 citizens of this State. The selection of winning bids
6719	6719	26 shall also take into account the incremental environmental
6720	6720
6721	6721
6722	6722
6723	6723
6724	6724
6725	6725	HB2205 - 186 - LRB103 28438 AMQ 54818 b
6726	6726
6727	6727
6728	6728	HB2205- 187 -LRB103 28438 AMQ 54818 b HB2205 - 187 - LRB103 28438 AMQ 54818 b
6729	6729	HB2205 - 187 - LRB103 28438 AMQ 54818 b
6730	6730	1 benefits resulting from the procurement or procurements,
6731	6731	2 such as any existing environmental benefits that are
6732	6732	3 preserved by a procurement held under this subsection
6733	6733	4 (d-10) and would cease to exist if the procurement were
6734	6734	5 not held, including the preservation of carbon-free energy
6735	6735	6 resources. For those bidders having the same public
6736	6736	7 interest criteria score, the relative ranking of such
6737	6737	8 bidders shall be determined by price. The Plan shall
6738	6738	9 describe in detail how each public interest factor shall
6739	6739	10 be considered and weighted in the bid selection process to
6740	6740	11 ensure that the public interest criteria are applied to
6741	6741	12 the procurement. The Plan shall, to the extent practical
6742	6742	13 and permissible by federal law, ensure that successful
6743	6743	14 bidders make commercially reasonable efforts to apply for
6744	6744	15 federal tax credits, direct payments, or similar subsidy
6745	6745	16 programs that support carbon-free generation and for which
6746	6746	17 the successful bidder is eligible. Upon publishing of the
6747	6747	18 carbon mitigation credit procurement plan, copies of the
6748	6748	19 plan shall be posted and made publicly available on the
6749	6749	20 Agency's website. All interested parties shall have 7 days
6750	6750	21 following the date of posting to provide comment to the
6751	6751	22 Agency on the plan. All comments shall be posted to the
6752	6752	23 Agency's website. Following the end of the comment period,
6753	6753	24 but no more than 19 days later than the effective date of
6754	6754	25 this amendatory Act of the 102nd General Assembly, the
6755	6755	26 Agency shall revise the plan as necessary based on the
6756	6756
6757	6757
6758	6758
6759	6759
6760	6760
6761	6761	HB2205 - 187 - LRB103 28438 AMQ 54818 b
6762	6762
6763	6763
6764	6764	HB2205- 188 -LRB103 28438 AMQ 54818 b HB2205 - 188 - LRB103 28438 AMQ 54818 b
6765	6765	HB2205 - 188 - LRB103 28438 AMQ 54818 b
6766	6766	1 comments received and file its carbon mitigation credit
6767	6767	2 procurement plan with the Commission.
6768	6768	3 (E) If the Commission determines that the plan is
6769	6769	4 likely to result in the procurement of cost-effective
6770	6770	5 carbon mitigation credits, then the Commission shall,
6771	6771	6 after notice and hearing and opportunity for comment, but
6772	6772	7 no later than 42 days after the Agency filed the plan,
6773	6773	8 approve the plan or approve it with modification. For
6774	6774	9 purposes of this subsection (d-10), "cost-effective" means
6775	6775	10 carbon mitigation credits that are procured from
6776	6776	11 carbon-free energy resources at prices that are within the
6777	6777	12 limits specified in this paragraph (3). As part of the
6778	6778	13 Commission's review and acceptance or rejection of the
6779	6779	14 procurement results, the Commission shall, in its public
6780	6780	15 notice of successful bidders:
6781	6781	16 (i) identify how the selected carbon-free energy
6782	6782	17 resources satisfy the public interest criteria
6783	6783	18 described in this paragraph (3) of minimizing carbon
6784	6784	19 dioxide emissions that result from electricity
6785	6785	20 consumed in Illinois and minimizing sulfur dioxide,
6786	6786	21 nitrogen oxide, and particulate matter emissions that
6787	6787	22 adversely affect the citizens of this State;
6788	6788	23 (ii) specifically address how the selection of
6789	6789	24 carbon-free energy resources takes into account the
6790	6790	25 incremental environmental benefits resulting from the
6791	6791	26 procurement, including any existing environmental
6792	6792
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6802	6802	1 benefits that are preserved by the procurements held
6803	6803	2 under this amendatory Act of the 102nd General
6804	6804	3 Assembly and would have ceased to exist if the
6805	6805	4 procurements had not been held, such as the
6806	6806	5 preservation of carbon-free energy resources;
6807	6807	6 (iii) quantify the environmental benefit of
6808	6808	7 preserving the carbon-free energy resources procured
6809	6809	8 pursuant to this subsection (d-10), including the
6810	6810	9 following:
6811	6811	10 (I) an assessment value of avoided greenhouse
6812	6812	11 gas emissions measured as the product of the
6813	6813	12 carbon-free energy resources' output over the
6814	6814	13 contract term, using generally accepted
6815	6815	14 methodologies for the valuation of avoided
6816	6816	15 emissions; and
6817	6817	16 (II) an assessment of costs of replacement
6818	6818	17 with other carbon-free energy resources and
6819	6819	18 renewable energy resources, including wind and
6820	6820	19 photovoltaic generation, based upon an assessment
6821	6821	20 of the prices paid for renewable energy credits
6822	6822	21 through programs and procurements conducted
6823	6823	22 pursuant to subsection (c) of Section 1-75 of this
6824	6824	23 Act, and the additional storage necessary to
6825	6825	24 produce the same or similar capability of matching
6826	6826	25 customer usage patterns.
6827	6827	26 (F) The procurements described in this paragraph (3),
6828	6828
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6838	6838	1 including, but not limited to, the execution of all
6839	6839	2 contracts procured, shall be completed no later than
6840	6840	3 December 3, 2021. The procurement and plan approval
6841	6841	4 processes required by this paragraph (3) shall be
6842	6842	5 conducted in conjunction with the procurement and plan
6843	6843	6 approval processes required by Section 16-111.5 of the
6844	6844	7 Public Utilities Act, to the extent practicable. However,
6845	6845	8 the Agency and Commission may, as appropriate, modify the
6846	6846	9 various dates and timelines under this subparagraph and
6847	6847	10 subparagraphs (D) and (E) of this paragraph (3) to meet
6848	6848	11 the December 3, 2021 contract execution deadline.
6849	6849	12 Following the completion of such procurements, and
6850	6850	13 consistent with this paragraph (3), the Agency shall
6851	6851	14 calculate the payments to be made under each contract in a
6852	6852	15 timely fashion.
6853	6853	16 (F-1) Costs incurred by the electric utility pursuant
6854	6854	17 to a contract authorized by this subsection (d-10) shall
6855	6855	18 be deemed prudently incurred and reasonable in amount, and
6856	6856	19 the electric utility shall be entitled to full cost
6857	6857	20 recovery pursuant to a tariff or tariffs filed with the
6858	6858	21 Commission.
6859	6859	22 (G) The counterparty electric utility shall retire all
6860	6860	23 carbon mitigation credits used to comply with the
6861	6861	24 requirements of this subsection (d-10).
6862	6862	25 (H) If a carbon-free energy resource is sold to
6863	6863	26 another owner, the rights, obligations, and commitments
6864	6864
6865	6865
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6874	6874	1 under this subsection (d-10) shall continue to the
6875	6875	2 subsequent owner.
6876	6876	3 (I) This subsection (d-10) shall become inoperative on
6877	6877	4 January 1, 2028.
6878	6878	5 (e) The draft procurement plans are subject to public
6879	6879	6 comment, as required by Section 16-111.5 of the Public
6880	6880	7 Utilities Act.
6881	6881	8 (f) The Agency shall submit the final procurement plan to
6882	6882	9 the Commission. The Agency shall revise a procurement plan if
6883	6883	10 the Commission determines that it does not meet the standards
6884	6884	11 set forth in Section 16-111.5 of the Public Utilities Act.
6885	6885	12 (g) The Agency shall assess fees to each affected utility
6886	6886	13 to recover the costs incurred in preparation of the annual
6887	6887	14 procurement plan for the utility.
6888	6888	15 (h) The Agency shall assess fees to each bidder to recover
6889	6889	16 the costs incurred in connection with a competitive
6890	6890	17 procurement process.
6891	6891	18 (i) A renewable energy credit, carbon emission credit,
6892	6892	19 zero emission credit, or carbon mitigation credit can only be
6893	6893	20 used once to comply with a single portfolio or other standard
6894	6894	21 as set forth in subsection (c), subsection (d), or subsection
6895	6895	22 (d-5) of this Section, respectively. A renewable energy
6896	6896	23 credit, carbon emission credit, zero emission credit, or
6897	6897	24 carbon mitigation credit cannot be used to satisfy the
6898	6898	25 requirements of more than one standard. If more than one type
6899	6899	26 of credit is issued for the same megawatt hour of energy, only
6900	6900
6901	6901
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6910	6910	1 one credit can be used to satisfy the requirements of a single
6911	6911	2 standard. After such use, the credit must be retired together
6912	6912	3 with any other credits issued for the same megawatt hour of
6913	6913	4 energy.
6914	6914	5 (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
6915	6915	6 102-662, eff. 9-15-21.)
6916	6916	7 Section 99. Effective date. This Act takes effect upon
6917	6917	8 becoming law.
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