Illinois 2023-2024 Regular Session

Illinois House Bill HB2563 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 HB2563 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Provides that any contractor involved in programs and procurements for the construction of State-funded solar and utility-scale wind projects must have 50% or more of the contractor's employees be residents of the State. Provides that the contractor must also participate in a registered apprenticeship program approved by the federal Department of Labor. LRB103 29504 AMQ 55899 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2563 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-75 20 ILCS 3855/1-75 Amends the Illinois Power Agency Act. Provides that any contractor involved in programs and procurements for the construction of State-funded solar and utility-scale wind projects must have 50% or more of the contractor's employees be residents of the State. Provides that the contractor must also participate in a registered apprenticeship program approved by the federal Department of Labor. LRB103 29504 AMQ 55899 b LRB103 29504 AMQ 55899 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2563 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-75 20 ILCS 3855/1-75
4	4	20 ILCS 3855/1-75
5	5	Amends the Illinois Power Agency Act. Provides that any contractor involved in programs and procurements for the construction of State-funded solar and utility-scale wind projects must have 50% or more of the contractor's employees be residents of the State. Provides that the contractor must also participate in a registered apprenticeship program approved by the federal Department of Labor.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning State government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Power Agency Act is amended by
15	15	5 changing Section 1-75 as follows:
16	16	6 (20 ILCS 3855/1-75)
17	17	7 Sec. 1-75. Planning and Procurement Bureau. The Planning
18	18	8 and Procurement Bureau has the following duties and
19	19	9 responsibilities:
20	20	10 (a) The Planning and Procurement Bureau shall each year,
21	21	11 beginning in 2008, develop procurement plans and conduct
22	22	12 competitive procurement processes in accordance with the
23	23	13 requirements of Section 16-111.5 of the Public Utilities Act
24	24	14 for the eligible retail customers of electric utilities that
25	25	15 on December 31, 2005 provided electric service to at least
26	26	16 100,000 customers in Illinois. Beginning with the delivery
27	27	17 year commencing on June 1, 2017, the Planning and Procurement
28	28	18 Bureau shall develop plans and processes for the procurement
29	29	19 of zero emission credits from zero emission facilities in
30	30	20 accordance with the requirements of subsection (d-5) of this
31	31	21 Section. Beginning on the effective date of this amendatory
32	32	22 Act of the 102nd General Assembly, the Planning and
33	33	23 Procurement Bureau shall develop plans and processes for the
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2563 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
38	38	20 ILCS 3855/1-75 20 ILCS 3855/1-75
39	39	20 ILCS 3855/1-75
40	40	Amends the Illinois Power Agency Act. Provides that any contractor involved in programs and procurements for the construction of State-funded solar and utility-scale wind projects must have 50% or more of the contractor's employees be residents of the State. Provides that the contractor must also participate in a registered apprenticeship program approved by the federal Department of Labor.
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43	43	A BILL FOR
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68	68	1 procurement of carbon mitigation credits from carbon-free
69	69	2 energy resources in accordance with the requirements of
70	70	3 subsection (d-10) of this Section. The Planning and
71	71	4 Procurement Bureau shall also develop procurement plans and
72	72	5 conduct competitive procurement processes in accordance with
73	73	6 the requirements of Section 16-111.5 of the Public Utilities
74	74	7 Act for the eligible retail customers of small
75	75	8 multi-jurisdictional electric utilities that (i) on December
76	76	9 31, 2005 served less than 100,000 customers in Illinois and
77	77	10 (ii) request a procurement plan for their Illinois
78	78	11 jurisdictional load. This Section shall not apply to a small
79	79	12 multi-jurisdictional utility until such time as a small
80	80	13 multi-jurisdictional utility requests the Agency to prepare a
81	81	14 procurement plan for their Illinois jurisdictional load. For
82	82	15 the purposes of this Section, the term "eligible retail
83	83	16 customers" has the same definition as found in Section
84	84	17 16-111.5(a) of the Public Utilities Act.
85	85	18 Beginning with the plan or plans to be implemented in the
86	86	19 2017 delivery year, the Agency shall no longer include the
87	87	20 procurement of renewable energy resources in the annual
88	88	21 procurement plans required by this subsection (a), except as
89	89	22 provided in subsection (q) of Section 16-111.5 of the Public
90	90	23 Utilities Act, and shall instead develop a long-term renewable
91	91	24 resources procurement plan in accordance with subsection (c)
92	92	25 of this Section and Section 16-111.5 of the Public Utilities
93	93	26 Act.
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104	104	1 In accordance with subsection (c-5) of this Section, the
105	105	2 Planning and Procurement Bureau shall oversee the procurement
106	106	3 by electric utilities that served more than 300,000 retail
107	107	4 customers in this State as of January 1, 2019 of renewable
108	108	5 energy credits from new utility-scale solar projects to be
109	109	6 installed, along with energy storage facilities, at or
110	110	7 adjacent to the sites of electric generating facilities that,
111	111	8 as of January 1, 2016, burned coal as their primary fuel
112	112	9 source.
113	113	10 (1) The Agency shall each year, beginning in 2008, as
114	114	11 needed, issue a request for qualifications for experts or
115	115	12 expert consulting firms to develop the procurement plans
116	116	13 in accordance with Section 16-111.5 of the Public
117	117	14 Utilities Act. In order to qualify an expert or expert
118	118	15 consulting firm must have:
119	119	16 (A) direct previous experience assembling
120	120	17 large-scale power supply plans or portfolios for
121	121	18 end-use customers;
122	122	19 (B) an advanced degree in economics, mathematics,
123	123	20 engineering, risk management, or a related area of
124	124	21 study;
125	125	22 (C) 10 years of experience in the electricity
126	126	23 sector, including managing supply risk;
127	127	24 (D) expertise in wholesale electricity market
128	128	25 rules, including those established by the Federal
129	129	26 Energy Regulatory Commission and regional transmission
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140	140	1 organizations;
141	141	2 (E) expertise in credit protocols and familiarity
142	142	3 with contract protocols;
143	143	4 (F) adequate resources to perform and fulfill the
144	144	5 required functions and responsibilities; and
145	145	6 (G) the absence of a conflict of interest and
146	146	7 inappropriate bias for or against potential bidders or
147	147	8 the affected electric utilities.
148	148	9 (2) The Agency shall each year, as needed, issue a
149	149	10 request for qualifications for a procurement administrator
150	150	11 to conduct the competitive procurement processes in
151	151	12 accordance with Section 16-111.5 of the Public Utilities
152	152	13 Act. In order to qualify an expert or expert consulting
153	153	14 firm must have:
154	154	15 (A) direct previous experience administering a
155	155	16 large-scale competitive procurement process;
156	156	17 (B) an advanced degree in economics, mathematics,
157	157	18 engineering, or a related area of study;
158	158	19 (C) 10 years of experience in the electricity
159	159	20 sector, including risk management experience;
160	160	21 (D) expertise in wholesale electricity market
161	161	22 rules, including those established by the Federal
162	162	23 Energy Regulatory Commission and regional transmission
163	163	24 organizations;
164	164	25 (E) expertise in credit and contract protocols;
165	165	26 (F) adequate resources to perform and fulfill the
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176	176	1 required functions and responsibilities; and
177	177	2 (G) the absence of a conflict of interest and
178	178	3 inappropriate bias for or against potential bidders or
179	179	4 the affected electric utilities.
180	180	5 (3) The Agency shall provide affected utilities and
181	181	6 other interested parties with the lists of qualified
182	182	7 experts or expert consulting firms identified through the
183	183	8 request for qualifications processes that are under
184	184	9 consideration to develop the procurement plans and to
185	185	10 serve as the procurement administrator. The Agency shall
186	186	11 also provide each qualified expert's or expert consulting
187	187	12 firm's response to the request for qualifications. All
188	188	13 information provided under this subparagraph shall also be
189	189	14 provided to the Commission. The Agency may provide by rule
190	190	15 for fees associated with supplying the information to
191	191	16 utilities and other interested parties. These parties
192	192	17 shall, within 5 business days, notify the Agency in
193	193	18 writing if they object to any experts or expert consulting
194	194	19 firms on the lists. Objections shall be based on:
195	195	20 (A) failure to satisfy qualification criteria;
196	196	21 (B) identification of a conflict of interest; or
197	197	22 (C) evidence of inappropriate bias for or against
198	198	23 potential bidders or the affected utilities.
199	199	24 The Agency shall remove experts or expert consulting
200	200	25 firms from the lists within 10 days if there is a
201	201	26 reasonable basis for an objection and provide the updated
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212	212	1 lists to the affected utilities and other interested
213	213	2 parties. If the Agency fails to remove an expert or expert
214	214	3 consulting firm from a list, an objecting party may seek
215	215	4 review by the Commission within 5 days thereafter by
216	216	5 filing a petition, and the Commission shall render a
217	217	6 ruling on the petition within 10 days. There is no right of
218	218	7 appeal of the Commission's ruling.
219	219	8 (4) The Agency shall issue requests for proposals to
220	220	9 the qualified experts or expert consulting firms to
221	221	10 develop a procurement plan for the affected utilities and
222	222	11 to serve as procurement administrator.
223	223	12 (5) The Agency shall select an expert or expert
224	224	13 consulting firm to develop procurement plans based on the
225	225	14 proposals submitted and shall award contracts of up to 5
226	226	15 years to those selected.
227	227	16 (6) The Agency shall select an expert or expert
228	228	17 consulting firm, with approval of the Commission, to serve
229	229	18 as procurement administrator based on the proposals
230	230	19 submitted. If the Commission rejects, within 5 days, the
231	231	20 Agency's selection, the Agency shall submit another
232	232	21 recommendation within 3 days based on the proposals
233	233	22 submitted. The Agency shall award a 5-year contract to the
234	234	23 expert or expert consulting firm so selected with
235	235	24 Commission approval.
236	236	25 (b) The experts or expert consulting firms retained by the
237	237	26 Agency shall, as appropriate, prepare procurement plans, and
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248	248	1 conduct a competitive procurement process as prescribed in
249	249	2 Section 16-111.5 of the Public Utilities Act, to ensure
250	250	3 adequate, reliable, affordable, efficient, and environmentally
251	251	4 sustainable electric service at the lowest total cost over
252	252	5 time, taking into account any benefits of price stability, for
253	253	6 eligible retail customers of electric utilities that on
254	254	7 December 31, 2005 provided electric service to at least
255	255	8 100,000 customers in the State of Illinois, and for eligible
256	256	9 Illinois retail customers of small multi-jurisdictional
257	257	10 electric utilities that (i) on December 31, 2005 served less
258	258	11 than 100,000 customers in Illinois and (ii) request a
259	259	12 procurement plan for their Illinois jurisdictional load.
260	260	13 (c) Renewable portfolio standard.
261	261	14 (1)(A) The Agency shall develop a long-term renewable
262	262	15 resources procurement plan that shall include procurement
263	263	16 programs and competitive procurement events necessary to
264	264	17 meet the goals set forth in this subsection (c). The
265	265	18 initial long-term renewable resources procurement plan
266	266	19 shall be released for comment no later than 160 days after
267	267	20 June 1, 2017 (the effective date of Public Act 99-906).
268	268	21 The Agency shall review, and may revise on an expedited
269	269	22 basis, the long-term renewable resources procurement plan
270	270	23 at least every 2 years, which shall be conducted in
271	271	24 conjunction with the procurement plan under Section
272	272	25 16-111.5 of the Public Utilities Act to the extent
273	273	26 practicable to minimize administrative expense. No later
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284	284	1 than 120 days after the effective date of this amendatory
285	285	2 Act of the 102nd General Assembly, the Agency shall
286	286	3 release for comment a revision to the long-term renewable
287	287	4 resources procurement plan, updating elements of the most
288	288	5 recently approved plan as needed to comply with this
289	289	6 amendatory Act of the 102nd General Assembly, and any
290	290	7 long-term renewable resources procurement plan update
291	291	8 published by the Agency but not yet approved by the
292	292	9 Illinois Commerce Commission shall be withdrawn. The
293	293	10 long-term renewable resources procurement plans shall be
294	294	11 subject to review and approval by the Commission under
295	295	12 Section 16-111.5 of the Public Utilities Act.
296	296	13 (B) Subject to subparagraph (F) of this paragraph (1),
297	297	14 the long-term renewable resources procurement plan shall
298	298	15 attempt to meet the goals for procurement of renewable
299	299	16 energy credits at levels of at least the following overall
300	300	17 percentages: 13% by the 2017 delivery year; increasing by
301	301	18 at least 1.5% each delivery year thereafter to at least
302	302	19 25% by the 2025 delivery year; increasing by at least 3%
303	303	20 each delivery year thereafter to at least 40% by the 2030
304	304	21 delivery year, and continuing at no less than 40% for each
305	305	22 delivery year thereafter. The Agency shall attempt to
306	306	23 procure 50% by delivery year 2040. The Agency shall
307	307	24 determine the annual increase between delivery year 2030
308	308	25 and delivery year 2040, if any, taking into account energy
309	309	26 demand, other energy resources, and other public policy
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320	320	1 goals. In the event of a conflict between these goals and
321	321	2 the new wind and new photovoltaic procurement requirements
322	322	3 described in items (i) through (iii) of subparagraph (C)
323	323	4 of this paragraph (1), the long-term plan shall prioritize
324	324	5 compliance with the new wind and new photovoltaic
325	325	6 procurement requirements described in items (i) through
326	326	7 (iii) of subparagraph (C) of this paragraph (1) over the
327	327	8 annual percentage targets described in this subparagraph
328	328	9 (B). The Agency shall not comply with the annual
329	329	10 percentage targets described in this subparagraph (B) by
330	330	11 procuring renewable energy credits that are unlikely to
331	331	12 lead to the development of new renewable resources.
332	332	13 For the delivery year beginning June 1, 2017, the
333	333	14 procurement plan shall attempt to include, subject to the
334	334	15 prioritization outlined in this subparagraph (B),
335	335	16 cost-effective renewable energy resources equal to at
336	336	17 least 13% of each utility's load for eligible retail
337	337	18 customers and 13% of the applicable portion of each
338	338	19 utility's load for retail customers who are not eligible
339	339	20 retail customers, which applicable portion shall equal 50%
340	340	21 of the utility's load for retail customers who are not
341	341	22 eligible retail customers on February 28, 2017.
342	342	23 For the delivery year beginning June 1, 2018, the
343	343	24 procurement plan shall attempt to include, subject to the
344	344	25 prioritization outlined in this subparagraph (B),
345	345	26 cost-effective renewable energy resources equal to at
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356	356	1 least 14.5% of each utility's load for eligible retail
357	357	2 customers and 14.5% of the applicable portion of each
358	358	3 utility's load for retail customers who are not eligible
359	359	4 retail customers, which applicable portion shall equal 75%
360	360	5 of the utility's load for retail customers who are not
361	361	6 eligible retail customers on February 28, 2017.
362	362	7 For the delivery year beginning June 1, 2019, and for
363	363	8 each year thereafter, the procurement plans shall attempt
364	364	9 to include, subject to the prioritization outlined in this
365	365	10 subparagraph (B), cost-effective renewable energy
366	366	11 resources equal to a minimum percentage of each utility's
367	367	12 load for all retail customers as follows: 16% by June 1,
368	368	13 2019; increasing by 1.5% each year thereafter to 25% by
369	369	14 June 1, 2025; and 25% by June 1, 2026; increasing by at
370	370	15 least 3% each delivery year thereafter to at least 40% by
371	371	16 the 2030 delivery year, and continuing at no less than 40%
372	372	17 for each delivery year thereafter. The Agency shall
373	373	18 attempt to procure 50% by delivery year 2040. The Agency
374	374	19 shall determine the annual increase between delivery year
375	375	20 2030 and delivery year 2040, if any, taking into account
376	376	21 energy demand, other energy resources, and other public
377	377	22 policy goals.
378	378	23 For each delivery year, the Agency shall first
379	379	24 recognize each utility's obligations for that delivery
380	380	25 year under existing contracts. Any renewable energy
381	381	26 credits under existing contracts, including renewable
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392	392	1 energy credits as part of renewable energy resources,
393	393	2 shall be used to meet the goals set forth in this
394	394	3 subsection (c) for the delivery year.
395	395	4 (C) The long-term renewable resources procurement plan
396	396	5 described in subparagraph (A) of this paragraph (1) shall
397	397	6 include the procurement of renewable energy credits from
398	398	7 new projects in amounts equal to at least the following:
399	399	8 (i) 10,000,000 renewable energy credits delivered
400	400	9 annually by the end of the 2021 delivery year, and
401	401	10 increasing ratably to reach 45,000,000 renewable
402	402	11 energy credits delivered annually from new wind and
403	403	12 solar projects by the end of delivery year 2030 such
404	404	13 that the goals in subparagraph (B) of this paragraph
405	405	14 (1) are met entirely by procurements of renewable
406	406	15 energy credits from new wind and photovoltaic
407	407	16 projects. Of that amount, to the extent possible, the
408	408	17 Agency shall procure 45% from wind projects and 55%
409	409	18 from photovoltaic projects. Of the amount to be
410	410	19 procured from photovoltaic projects, the Agency shall
411	411	20 procure: at least 50% from solar photovoltaic projects
412	412	21 using the program outlined in subparagraph (K) of this
413	413	22 paragraph (1) from distributed renewable energy
414	414	23 generation devices or community renewable generation
415	415	24 projects; at least 47% from utility-scale solar
416	416	25 projects; at least 3% from brownfield site
417	417	26 photovoltaic projects that are not community renewable
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428	428	1 generation projects.
429	429	2 In developing the long-term renewable resources
430	430	3 procurement plan, the Agency shall consider other
431	431	4 approaches, in addition to competitive procurements,
432	432	5 that can be used to procure renewable energy credits
433	433	6 from brownfield site photovoltaic projects and thereby
434	434	7 help return blighted or contaminated land to
435	435	8 productive use while enhancing public health and the
436	436	9 well-being of Illinois residents, including those in
437	437	10 environmental justice communities, as defined using
438	438	11 existing methodologies and findings used by the Agency
439	439	12 and its Administrator in its Illinois Solar for All
440	440	13 Program.
441	441	14 (ii) In any given delivery year, if forecasted
442	442	15 expenses are less than the maximum budget available
443	443	16 under subparagraph (E) of this paragraph (1), the
444	444	17 Agency shall continue to procure new renewable energy
445	445	18 credits until that budget is exhausted in the manner
446	446	19 outlined in item (i) of this subparagraph (C).
447	447	20 (iii) For purposes of this Section:
448	448	21 "New wind projects" means wind renewable energy
449	449	22 facilities that are energized after June 1, 2017 for
450	450	23 the delivery year commencing June 1, 2017.
451	451	24 "New photovoltaic projects" means photovoltaic
452	452	25 renewable energy facilities that are energized after
453	453	26 June 1, 2017. Photovoltaic projects developed under
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464	464	1 Section 1-56 of this Act shall not apply towards the
465	465	2 new photovoltaic project requirements in this
466	466	3 subparagraph (C).
467	467	4 For purposes of calculating whether the Agency has
468	468	5 procured enough new wind and solar renewable energy
469	469	6 credits required by this subparagraph (C), renewable
470	470	7 energy facilities that have a multi-year renewable
471	471	8 energy credit delivery contract with the utility
472	472	9 through at least delivery year 2030 shall be
473	473	10 considered new, however no renewable energy credits
474	474	11 from contracts entered into before June 1, 2021 shall
475	475	12 be used to calculate whether the Agency has procured
476	476	13 the correct proportion of new wind and new solar
477	477	14 contracts described in this subparagraph (C) for
478	478	15 delivery year 2021 and thereafter.
479	479	16 (D) Renewable energy credits shall be cost effective.
480	480	17 For purposes of this subsection (c), "cost effective"
481	481	18 means that the costs of procuring renewable energy
482	482	19 resources do not cause the limit stated in subparagraph
483	483	20 (E) of this paragraph (1) to be exceeded and, for
484	484	21 renewable energy credits procured through a competitive
485	485	22 procurement event, do not exceed benchmarks based on
486	486	23 market prices for like products in the region. For
487	487	24 purposes of this subsection (c), "like products" means
488	488	25 contracts for renewable energy credits from the same or
489	489	26 substantially similar technology, same or substantially
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500	500	1 similar vintage (new or existing), the same or
501	501	2 substantially similar quantity, and the same or
502	502	3 substantially similar contract length and structure.
503	503	4 Benchmarks shall reflect development, financing, or
504	504	5 related costs resulting from requirements imposed through
505	505	6 other provisions of State law, including, but not limited
506	506	7 to, requirements in subparagraphs (P) and (Q) of this
507	507	8 paragraph (1) and the Renewable Energy Facilities
508	508	9 Agricultural Impact Mitigation Act. Confidential
509	509	10 benchmarks shall be developed by the procurement
510	510	11 administrator, in consultation with the Commission staff,
511	511	12 Agency staff, and the procurement monitor and shall be
512	512	13 subject to Commission review and approval. If price
513	513	14 benchmarks for like products in the region are not
514	514	15 available, the procurement administrator shall establish
515	515	16 price benchmarks based on publicly available data on
516	516	17 regional technology costs and expected current and future
517	517	18 regional energy prices. The benchmarks in this Section
518	518	19 shall not be used to curtail or otherwise reduce
519	519	20 contractual obligations entered into by or through the
520	520	21 Agency prior to June 1, 2017 (the effective date of Public
521	521	22 Act 99-906).
522	522	23 (E) For purposes of this subsection (c), the required
523	523	24 procurement of cost-effective renewable energy resources
524	524	25 for a particular year commencing prior to June 1, 2017
525	525	26 shall be measured as a percentage of the actual amount of
526	526
527	527
528	528
529	529
530	530
531	531	HB2563 - 14 - LRB103 29504 AMQ 55899 b
532	532
533	533
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535	535	HB2563 - 15 - LRB103 29504 AMQ 55899 b
536	536	1 electricity (megawatt-hours) supplied by the electric
537	537	2 utility to eligible retail customers in the delivery year
538	538	3 ending immediately prior to the procurement, and, for
539	539	4 delivery years commencing on and after June 1, 2017, the
540	540	5 required procurement of cost-effective renewable energy
541	541	6 resources for a particular year shall be measured as a
542	542	7 percentage of the actual amount of electricity
543	543	8 (megawatt-hours) delivered by the electric utility in the
544	544	9 delivery year ending immediately prior to the procurement,
545	545	10 to all retail customers in its service territory. For
546	546	11 purposes of this subsection (c), the amount paid per
547	547	12 kilowatthour means the total amount paid for electric
548	548	13 service expressed on a per kilowatthour basis. For
549	549	14 purposes of this subsection (c), the total amount paid for
550	550	15 electric service includes without limitation amounts paid
551	551	16 for supply, transmission, capacity, distribution,
552	552	17 surcharges, and add-on taxes.
553	553	18 Notwithstanding the requirements of this subsection
554	554	19 (c), the total of renewable energy resources procured
555	555	20 under the procurement plan for any single year shall be
556	556	21 subject to the limitations of this subparagraph (E). Such
557	557	22 procurement shall be reduced for all retail customers
558	558	23 based on the amount necessary to limit the annual
559	559	24 estimated average net increase due to the costs of these
560	560	25 resources included in the amounts paid by eligible retail
561	561	26 customers in connection with electric service to no more
562	562
563	563
564	564
565	565
566	566
567	567	HB2563 - 15 - LRB103 29504 AMQ 55899 b
568	568
569	569
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571	571	HB2563 - 16 - LRB103 29504 AMQ 55899 b
572	572	1 than 4.25% of the amount paid per kilowatthour by those
573	573	2 customers during the year ending May 31, 2009. To arrive
574	574	3 at a maximum dollar amount of renewable energy resources
575	575	4 to be procured for the particular delivery year, the
576	576	5 resulting per kilowatthour amount shall be applied to the
577	577	6 actual amount of kilowatthours of electricity delivered,
578	578	7 or applicable portion of such amount as specified in
579	579	8 paragraph (1) of this subsection (c), as applicable, by
580	580	9 the electric utility in the delivery year immediately
581	581	10 prior to the procurement to all retail customers in its
582	582	11 service territory. The calculations required by this
583	583	12 subparagraph (E) shall be made only once for each delivery
584	584	13 year at the time that the renewable energy resources are
585	585	14 procured. Once the determination as to the amount of
586	586	15 renewable energy resources to procure is made based on the
587	587	16 calculations set forth in this subparagraph (E) and the
588	588	17 contracts procuring those amounts are executed, no
589	589	18 subsequent rate impact determinations shall be made and no
590	590	19 adjustments to those contract amounts shall be allowed.
591	591	20 All costs incurred under such contracts shall be fully
592	592	21 recoverable by the electric utility as provided in this
593	593	22 Section.
594	594	23 (F) If the limitation on the amount of renewable
595	595	24 energy resources procured in subparagraph (E) of this
596	596	25 paragraph (1) prevents the Agency from meeting all of the
597	597	26 goals in this subsection (c), the Agency's long-term plan
598	598
599	599
600	600
601	601
602	602
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604	604
605	605
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607	607	HB2563 - 17 - LRB103 29504 AMQ 55899 b
608	608	1 shall prioritize compliance with the requirements of this
609	609	2 subsection (c) regarding renewable energy credits in the
610	610	3 following order:
611	611	4 (i) renewable energy credits under existing
612	612	5 contractual obligations as of June 1, 2021;
613	613	6 (i-5) funding for the Illinois Solar for All
614	614	7 Program, as described in subparagraph (O) of this
615	615	8 paragraph (1);
616	616	9 (ii) renewable energy credits necessary to comply
617	617	10 with the new wind and new photovoltaic procurement
618	618	11 requirements described in items (i) through (iii) of
619	619	12 subparagraph (C) of this paragraph (1); and
620	620	13 (iii) renewable energy credits necessary to meet
621	621	14 the remaining requirements of this subsection (c).
622	622	15 (G) The following provisions shall apply to the
623	623	16 Agency's procurement of renewable energy credits under
624	624	17 this subsection (c):
625	625	18 (i) Notwithstanding whether a long-term renewable
626	626	19 resources procurement plan has been approved, the
627	627	20 Agency shall conduct an initial forward procurement
628	628	21 for renewable energy credits from new utility-scale
629	629	22 wind projects within 160 days after June 1, 2017 (the
630	630	23 effective date of Public Act 99-906). For the purposes
631	631	24 of this initial forward procurement, the Agency shall
632	632	25 solicit 15-year contracts for delivery of 1,000,000
633	633	26 renewable energy credits delivered annually from new
634	634
635	635
636	636
637	637
638	638
639	639	HB2563 - 17 - LRB103 29504 AMQ 55899 b
640	640
641	641
642	642	HB2563- 18 -LRB103 29504 AMQ 55899 b HB2563 - 18 - LRB103 29504 AMQ 55899 b
643	643	HB2563 - 18 - LRB103 29504 AMQ 55899 b
644	644	1 utility-scale wind projects to begin delivery on June
645	645	2 1, 2019, if available, but not later than June 1, 2021,
646	646	3 unless the project has delays in the establishment of
647	647	4 an operating interconnection with the applicable
648	648	5 transmission or distribution system as a result of the
649	649	6 actions or inactions of the transmission or
650	650	7 distribution provider, or other causes for force
651	651	8 majeure as outlined in the procurement contract, in
652	652	9 which case, not later than June 1, 2022. Payments to
653	653	10 suppliers of renewable energy credits shall commence
654	654	11 upon delivery. Renewable energy credits procured under
655	655	12 this initial procurement shall be included in the
656	656	13 Agency's long-term plan and shall apply to all
657	657	14 renewable energy goals in this subsection (c).
658	658	15 (ii) Notwithstanding whether a long-term renewable
659	659	16 resources procurement plan has been approved, the
660	660	17 Agency shall conduct an initial forward procurement
661	661	18 for renewable energy credits from new utility-scale
662	662	19 solar projects and brownfield site photovoltaic
663	663	20 projects within one year after June 1, 2017 (the
664	664	21 effective date of Public Act 99-906). For the purposes
665	665	22 of this initial forward procurement, the Agency shall
666	666	23 solicit 15-year contracts for delivery of 1,000,000
667	667	24 renewable energy credits delivered annually from new
668	668	25 utility-scale solar projects and brownfield site
669	669	26 photovoltaic projects to begin delivery on June 1,
670	670
671	671
672	672
673	673
674	674
675	675	HB2563 - 18 - LRB103 29504 AMQ 55899 b
676	676
677	677
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679	679	HB2563 - 19 - LRB103 29504 AMQ 55899 b
680	680	1 2019, if available, but not later than June 1, 2021,
681	681	2 unless the project has delays in the establishment of
682	682	3 an operating interconnection with the applicable
683	683	4 transmission or distribution system as a result of the
684	684	5 actions or inactions of the transmission or
685	685	6 distribution provider, or other causes for force
686	686	7 majeure as outlined in the procurement contract, in
687	687	8 which case, not later than June 1, 2022. The Agency may
688	688	9 structure this initial procurement in one or more
689	689	10 discrete procurement events. Payments to suppliers of
690	690	11 renewable energy credits shall commence upon delivery.
691	691	12 Renewable energy credits procured under this initial
692	692	13 procurement shall be included in the Agency's
693	693	14 long-term plan and shall apply to all renewable energy
694	694	15 goals in this subsection (c).
695	695	16 (iii) Notwithstanding whether the Commission has
696	696	17 approved the periodic long-term renewable resources
697	697	18 procurement plan revision described in Section
698	698	19 16-111.5 of the Public Utilities Act, the Agency shall
699	699	20 conduct at least one subsequent forward procurement
700	700	21 for renewable energy credits from new utility-scale
701	701	22 wind projects, new utility-scale solar projects, and
702	702	23 new brownfield site photovoltaic projects within 240
703	703	24 days after the effective date of this amendatory Act
704	704	25 of the 102nd General Assembly in quantities necessary
705	705	26 to meet the requirements of subparagraph (C) of this
706	706
707	707
708	708
709	709
710	710
711	711	HB2563 - 19 - LRB103 29504 AMQ 55899 b
712	712
713	713
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715	715	HB2563 - 20 - LRB103 29504 AMQ 55899 b
716	716	1 paragraph (1) through the delivery year beginning June
717	717	2 1, 2021.
718	718	3 (iv) Notwithstanding whether the Commission has
719	719	4 approved the periodic long-term renewable resources
720	720	5 procurement plan revision described in Section
721	721	6 16-111.5 of the Public Utilities Act, the Agency shall
722	722	7 open capacity for each category in the Adjustable
723	723	8 Block program within 90 days after the effective date
724	724	9 of this amendatory Act of the 102nd General Assembly
725	725	10 manner:
726	726	11 (1) The Agency shall open the first block of
727	727	12 annual capacity for the category described in item
728	728	13 (i) of subparagraph (K) of this paragraph (1). The
729	729	14 first block of annual capacity for item (i) shall
730	730	15 be for at least 75 megawatts of total nameplate
731	731	16 capacity. The price of the renewable energy credit
732	732	17 for this block of capacity shall be 4% less than
733	733	18 the price of the last open block in this category.
734	734	19 Projects on a waitlist shall be awarded contracts
735	735	20 first in the order in which they appear on the
736	736	21 waitlist. Notwithstanding anything to the
737	737	22 contrary, for those renewable energy credits that
738	738	23 qualify and are procured under this subitem (1) of
739	739	24 this item (iv), the renewable energy credit
740	740	25 delivery contract value shall be paid in full,
741	741	26 based on the estimated generation during the first
742	742
743	743
744	744
745	745
746	746
747	747	HB2563 - 20 - LRB103 29504 AMQ 55899 b
748	748
749	749
750	750	HB2563- 21 -LRB103 29504 AMQ 55899 b HB2563 - 21 - LRB103 29504 AMQ 55899 b
751	751	HB2563 - 21 - LRB103 29504 AMQ 55899 b
752	752	1 15 years of operation, by the contracting
753	753	2 utilities at the time that the facility producing
754	754	3 the renewable energy credits is interconnected at
755	755	4 the distribution system level of the utility and
756	756	5 verified as energized and in compliance by the
757	757	6 Program Administrator. The electric utility shall
758	758	7 receive and retire all renewable energy credits
759	759	8 generated by the project for the first 15 years of
760	760	9 operation. Renewable energy credits generated by
761	761	10 the project thereafter shall not be transferred
762	762	11 under the renewable energy credit delivery
763	763	12 contract with the counterparty electric utility.
764	764	13 (2) The Agency shall open the first block of
765	765	14 annual capacity for the category described in item
766	766	15 (ii) of subparagraph (K) of this paragraph (1).
767	767	16 The first block of annual capacity for item (ii)
768	768	17 shall be for at least 75 megawatts of total
769	769	18 nameplate capacity.
770	770	19 (A) The price of the renewable energy
771	771	20 credit for any project on a waitlist for this
772	772	21 category before the opening of this block
773	773	22 shall be 4% less than the price of the last
774	774	23 open block in this category. Projects on the
775	775	24 waitlist shall be awarded contracts first in
776	776	25 the order in which they appear on the
777	777	26 waitlist. Any projects that are less than or
778	778
779	779
780	780
781	781
782	782
783	783	HB2563 - 21 - LRB103 29504 AMQ 55899 b
784	784
785	785
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787	787	HB2563 - 22 - LRB103 29504 AMQ 55899 b
788	788	1 equal to 25 kilowatts in size on the waitlist
789	789	2 for this capacity shall be moved to the
790	790	3 waitlist for paragraph (1) of this item (iv).
791	791	4 Notwithstanding anything to the contrary,
792	792	5 projects that were on the waitlist prior to
793	793	6 opening of this block shall not be required to
794	794	7 be in compliance with the requirements of
795	795	8 subparagraph (Q) of this paragraph (1) of this
796	796	9 subsection (c). Notwithstanding anything to
797	797	10 the contrary, for those renewable energy
798	798	11 credits procured from projects that were on
799	799	12 the waitlist for this category before the
800	800	13 opening of this block 20% of the renewable
801	801	14 energy credit delivery contract value, based
802	802	15 on the estimated generation during the first
803	803	16 15 years of operation, shall be paid by the
804	804	17 contracting utilities at the time that the
805	805	18 facility producing the renewable energy
806	806	19 credits is interconnected at the distribution
807	807	20 system level of the utility and verified as
808	808	21 energized by the Program Administrator. The
809	809	22 remaining portion shall be paid ratably over
810	810	23 the subsequent 4-year period. The electric
811	811	24 utility shall receive and retire all renewable
812	812	25 energy credits generated by the project during
813	813	26 the first 15 years of operation. Renewable
814	814
815	815
816	816
817	817
818	818
819	819	HB2563 - 22 - LRB103 29504 AMQ 55899 b
820	820
821	821
822	822	HB2563- 23 -LRB103 29504 AMQ 55899 b HB2563 - 23 - LRB103 29504 AMQ 55899 b
823	823	HB2563 - 23 - LRB103 29504 AMQ 55899 b
824	824	1 energy credits generated by the project
825	825	2 thereafter shall not be transferred under the
826	826	3 renewable energy credit delivery contract with
827	827	4 the counterparty electric utility.
828	828	5 (B) The price of renewable energy credits
829	829	6 for any project not on the waitlist for this
830	830	7 category before the opening of the block shall
831	831	8 be determined and published by the Agency.
832	832	9 Projects not on a waitlist as of the opening
833	833	10 of this block shall be subject to the
834	834	11 requirements of subparagraph (Q) of this
835	835	12 paragraph (1), as applicable. Projects not on
836	836	13 a waitlist as of the opening of this block
837	837	14 shall be subject to the contract provisions
838	838	15 outlined in item (iii) of subparagraph (L) of
839	839	16 this paragraph (1). The Agency shall strive to
840	840	17 publish updated prices and an updated
841	841	18 renewable energy credit delivery contract as
842	842	19 quickly as possible.
843	843	20 (3) For opening the first 2 blocks of annual
844	844	21 capacity for projects participating in item (iii)
845	845	22 of subparagraph (K) of paragraph (1) of subsection
846	846	23 (c), projects shall be selected exclusively from
847	847	24 those projects on the ordinal waitlists of
848	848	25 community renewable generation projects
849	849	26 established by the Agency based on the status of
850	850
851	851
852	852
853	853
854	854
855	855	HB2563 - 23 - LRB103 29504 AMQ 55899 b
856	856
857	857
858	858	HB2563- 24 -LRB103 29504 AMQ 55899 b HB2563 - 24 - LRB103 29504 AMQ 55899 b
859	859	HB2563 - 24 - LRB103 29504 AMQ 55899 b
860	860	1 those ordinal waitlists as of December 31, 2020,
861	861	2 and only those projects previously determined to
862	862	3 be eligible for the Agency's April 2019 community
863	863	4 solar project selection process.
864	864	5 The first 2 blocks of annual capacity for item
865	865	6 (iii) shall be for 250 megawatts of total
866	866	7 nameplate capacity, with both blocks opening
867	867	8 simultaneously under the schedule outlined in the
868	868	9 paragraphs below. Projects shall be selected as
869	869	10 follows:
870	870	11 (A) The geographic balance of selected
871	871	12 projects shall follow the Group classification
872	872	13 found in the Agency's Revised Long-Term
873	873	14 Renewable Resources Procurement Plan, with 70%
874	874	15 of capacity allocated to projects on the Group
875	875	16 B waitlist and 30% of capacity allocated to
876	876	17 projects on the Group A waitlist.
877	877	18 (B) Contract awards for waitlisted
878	878	19 projects shall be allocated proportionate to
879	879	20 the total nameplate capacity amount across
880	880	21 both ordinal waitlists associated with that
881	881	22 applicant firm or its affiliates, subject to
882	882	23 the following conditions.
883	883	24 (i) Each applicant firm having a
884	884	25 waitlisted project eligible for selection
885	885	26 shall receive no less than 500 kilowatts
886	886
887	887
888	888
889	889
890	890
891	891	HB2563 - 24 - LRB103 29504 AMQ 55899 b
892	892
893	893
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895	895	HB2563 - 25 - LRB103 29504 AMQ 55899 b
896	896	1 in awarded capacity across all groups, and
897	897	2 no approved vendor may receive more than
898	898	3 20% of each Group's waitlist allocation.
899	899	4 (ii) Each applicant firm, upon
900	900	5 receiving an award of program capacity
901	901	6 proportionate to its waitlisted capacity,
902	902	7 may then determine which waitlisted
903	903	8 projects it chooses to be selected for a
904	904	9 contract award up to that capacity amount.
905	905	10 (iii) Assuming all other program
906	906	11 requirements are met, applicant firms may
907	907	12 adjust the nameplate capacity of applicant
908	908	13 projects without losing waitlist
909	909	14 eligibility, so long as no project is
910	910	15 greater than 2,000 kilowatts in size.
911	911	16 (iv) Assuming all other program
912	912	17 requirements are met, applicant firms may
913	913	18 adjust the expected production associated
914	914	19 with applicant projects, subject to
915	915	20 verification by the Program Administrator.
916	916	21 (C) After a review of affiliate
917	917	22 information and the current ordinal waitlists,
918	918	23 the Agency shall announce the nameplate
919	919	24 capacity award amounts associated with
920	920	25 applicant firms no later than 90 days after
921	921	26 the effective date of this amendatory Act of
922	922
923	923
924	924
925	925
926	926
927	927	HB2563 - 25 - LRB103 29504 AMQ 55899 b
928	928
929	929
930	930	HB2563- 26 -LRB103 29504 AMQ 55899 b HB2563 - 26 - LRB103 29504 AMQ 55899 b
931	931	HB2563 - 26 - LRB103 29504 AMQ 55899 b
932	932	1 the 102nd General Assembly.
933	933	2 (D) Applicant firms shall submit their
934	934	3 portfolio of projects used to satisfy those
935	935	4 contract awards no less than 90 days after the
936	936	5 Agency's announcement. The total nameplate
937	937	6 capacity of all projects used to satisfy that
938	938	7 portfolio shall be no greater than the
939	939	8 Agency's nameplate capacity award amount
940	940	9 associated with that applicant firm. An
941	941	10 applicant firm may decline, in whole or in
942	942	11 part, its nameplate capacity award without
943	943	12 penalty, with such unmet capacity rolled over
944	944	13 to the next block opening for project
945	945	14 selection under item (iii) of subparagraph (K)
946	946	15 of this subsection (c). Any projects not
947	947	16 included in an applicant firm's portfolio may
948	948	17 reapply without prejudice upon the next block
949	949	18 reopening for project selection under item
950	950	19 (iii) of subparagraph (K) of this subsection
951	951	20 (c).
952	952	21 (E) The renewable energy credit delivery
953	953	22 contract shall be subject to the contract and
954	954	23 payment terms outlined in item (iv) of
955	955	24 subparagraph (L) of this subsection (c).
956	956	25 Contract instruments used for this
957	957	26 subparagraph shall contain the following
958	958
959	959
960	960
961	961
962	962
963	963	HB2563 - 26 - LRB103 29504 AMQ 55899 b
964	964
965	965
966	966	HB2563- 27 -LRB103 29504 AMQ 55899 b HB2563 - 27 - LRB103 29504 AMQ 55899 b
967	967	HB2563 - 27 - LRB103 29504 AMQ 55899 b
968	968	1 terms:
969	969	2 (i) Renewable energy credit prices
970	970	3 shall be fixed, without further adjustment
971	971	4 under any other provision of this Act or
972	972	5 for any other reason, at 10% lower than
973	973	6 prices applicable to the last open block
974	974	7 for this category, inclusive of any adders
975	975	8 available for achieving a minimum of 50%
976	976	9 of subscribers to the project's nameplate
977	977	10 capacity being residential or small
978	978	11 commercial customers with subscriptions of
979	979	12 below 25 kilowatts in size;
980	980	13 (ii) A requirement that a minimum of
981	981	14 50% of subscribers to the project's
982	982	15 nameplate capacity be residential or small
983	983	16 commercial customers with subscriptions of
984	984	17 below 25 kilowatts in size;
985	985	18 (iii) Permission for the ability of a
986	986	19 contract holder to substitute projects
987	987	20 with other waitlisted projects without
988	988	21 penalty should a project receive a
989	989	22 non-binding estimate of costs to construct
990	990	23 the interconnection facilities and any
991	991	24 required distribution upgrades associated
992	992	25 with that project of greater than 30 cents
993	993	26 per watt AC of that project's nameplate
994	994
995	995
996	996
997	997
998	998
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1000	1000
1001	1001
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1003	1003	HB2563 - 28 - LRB103 29504 AMQ 55899 b
1004	1004	1 capacity. In developing the applicable
1005	1005	2 contract instrument, the Agency may
1006	1006	3 consider whether other circumstances
1007	1007	4 outside of the control of the applicant
1008	1008	5 firm should also warrant project
1009	1009	6 substitution rights.
1010	1010	7 The Agency shall publish a finalized
1011	1011	8 updated renewable energy credit delivery
1012	1012	9 contract developed consistent with these terms
1013	1013	10 and conditions no less than 30 days before
1014	1014	11 applicant firms must submit their portfolio of
1015	1015	12 projects pursuant to item (D).
1016	1016	13 (F) To be eligible for an award, the
1017	1017	14 applicant firm shall certify that not less
1018	1018	15 than prevailing wage, as determined pursuant
1019	1019	16 to the Illinois Prevailing Wage Act, was or
1020	1020	17 will be paid to employees who are engaged in
1021	1021	18 construction activities associated with a
1022	1022	19 selected project.
1023	1023	20 (4) The Agency shall open the first block of
1024	1024	21 annual capacity for the category described in item
1025	1025	22 (iv) of subparagraph (K) of this paragraph (1).
1026	1026	23 The first block of annual capacity for item (iv)
1027	1027	24 shall be for at least 50 megawatts of total
1028	1028	25 nameplate capacity. Renewable energy credit prices
1029	1029	26 shall be fixed, without further adjustment under
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	HB2563 - 28 - LRB103 29504 AMQ 55899 b
1036	1036
1037	1037
1038	1038	HB2563- 29 -LRB103 29504 AMQ 55899 b HB2563 - 29 - LRB103 29504 AMQ 55899 b
1039	1039	HB2563 - 29 - LRB103 29504 AMQ 55899 b
1040	1040	1 any other provision of this Act or for any other
1041	1041	2 reason, at the price in the last open block in the
1042	1042	3 category described in item (ii) of subparagraph
1043	1043	4 (K) of this paragraph (1). Pricing for future
1044	1044	5 blocks of annual capacity for this category may be
1045	1045	6 adjusted in the Agency's second revision to its
1046	1046	7 Long-Term Renewable Resources Procurement Plan.
1047	1047	8 Projects in this category shall be subject to the
1048	1048	9 contract terms outlined in item (iv) of
1049	1049	10 subparagraph (L) of this paragraph (1).
1050	1050	11 (5) The Agency shall open the equivalent of 2
1051	1051	12 years of annual capacity for the category
1052	1052	13 described in item (v) of subparagraph (K) of this
1053	1053	14 paragraph (1). The first block of annual capacity
1054	1054	15 for item (v) shall be for at least 10 megawatts of
1055	1055	16 total nameplate capacity. Notwithstanding the
1056	1056	17 provisions of item (v) of subparagraph (K) of this
1057	1057	18 paragraph (1), for the purpose of this initial
1058	1058	19 block, the agency shall accept new project
1059	1059	20 applications intended to increase the diversity of
1060	1060	21 areas hosting community solar projects, the
1061	1061	22 business models of projects, and the size of
1062	1062	23 projects, as described by the Agency in its
1063	1063	24 long-term renewable resources procurement plan
1064	1064	25 that is approved as of the effective date of this
1065	1065	26 amendatory Act of the 102nd General Assembly.
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	HB2563 - 29 - LRB103 29504 AMQ 55899 b
1072	1072
1073	1073
1074	1074	HB2563- 30 -LRB103 29504 AMQ 55899 b HB2563 - 30 - LRB103 29504 AMQ 55899 b
1075	1075	HB2563 - 30 - LRB103 29504 AMQ 55899 b
1076	1076	1 Projects in this category shall be subject to the
1077	1077	2 contract terms outlined in item (iii) of
1078	1078	3 subsection (L) of this paragraph (1).
1079	1079	4 (6) The Agency shall open the first blocks of
1080	1080	5 annual capacity for the category described in item
1081	1081	6 (vi) of subparagraph (K) of this paragraph (1),
1082	1082	7 with allocations of capacity within the block
1083	1083	8 generally matching the historical share of block
1084	1084	9 capacity allocated between the category described
1085	1085	10 in items (i) and (ii) of subparagraph (K) of this
1086	1086	11 paragraph (1). The first two blocks of annual
1087	1087	12 capacity for item (vi) shall be for at least 75
1088	1088	13 megawatts of total nameplate capacity. The price
1089	1089	14 of renewable energy credits for the blocks of
1090	1090	15 capacity shall be 4% less than the price of the
1091	1091	16 last open blocks in the categories described in
1092	1092	17 items (i) and (ii) of subparagraph (K) of this
1093	1093	18 paragraph (1). Pricing for future blocks of annual
1094	1094	19 capacity for this category may be adjusted in the
1095	1095	20 Agency's second revision to its Long-Term
1096	1096	21 Renewable Resources Procurement Plan. Projects in
1097	1097	22 this category shall be subject to the applicable
1098	1098	23 contract terms outlined in items (ii) and (iii) of
1099	1099	24 subparagraph (L) of this paragraph (1).
1100	1100	25 (v) Upon the effective date of this amendatory Act
1101	1101	26 of the 102nd General Assembly, for all competitive
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	HB2563 - 30 - LRB103 29504 AMQ 55899 b
1108	1108
1109	1109
1110	1110	HB2563- 31 -LRB103 29504 AMQ 55899 b HB2563 - 31 - LRB103 29504 AMQ 55899 b
1111	1111	HB2563 - 31 - LRB103 29504 AMQ 55899 b
1112	1112	1 procurements and any procurements of renewable energy
1113	1113	2 credit from new utility-scale wind and new
1114	1114	3 utility-scale photovoltaic projects, the Agency shall
1115	1115	4 procure indexed renewable energy credits and direct
1116	1116	5 respondents to offer a strike price.
1117	1117	6 (1) The purchase price of the indexed
1118	1118	7 renewable energy credit payment shall be
1119	1119	8 calculated for each settlement period. That
1120	1120	9 payment, for any settlement period, shall be equal
1121	1121	10 to the difference resulting from subtracting the
1122	1122	11 strike price from the index price for that
1123	1123	12 settlement period. If this difference results in a
1124	1124	13 negative number, the indexed REC counterparty
1125	1125	14 shall owe the seller the absolute value multiplied
1126	1126	15 by the quantity of energy produced in the relevant
1127	1127	16 settlement period. If this difference results in a
1128	1128	17 positive number, the seller shall owe the indexed
1129	1129	18 REC counterparty this amount multiplied by the
1130	1130	19 quantity of energy produced in the relevant
1131	1131	20 settlement period.
1132	1132	21 (2) Parties shall cash settle every month,
1133	1133	22 summing up all settlements (both positive and
1134	1134	23 negative, if applicable) for the prior month.
1135	1135	24 (3) To ensure funding in the annual budget
1136	1136	25 established under subparagraph (E) for indexed
1137	1137	26 renewable energy credit procurements for each year
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	HB2563 - 31 - LRB103 29504 AMQ 55899 b
1144	1144
1145	1145
1146	1146	HB2563- 32 -LRB103 29504 AMQ 55899 b HB2563 - 32 - LRB103 29504 AMQ 55899 b
1147	1147	HB2563 - 32 - LRB103 29504 AMQ 55899 b
1148	1148	1 of the term of such contracts, which must have a
1149	1149	2 minimum tenure of 20 calendar years, the
1150	1150	3 procurement administrator, Agency, Commission
1151	1151	4 staff, and procurement monitor shall quantify the
1152	1152	5 annual cost of the contract by utilizing an
1153	1153	6 industry-standard, third-party forward price curve
1154	1154	7 for energy at the appropriate hub or load zone,
1155	1155	8 including the estimated magnitude and timing of
1156	1156	9 the price effects related to federal carbon
1157	1157	10 controls. Each forward price curve shall contain a
1158	1158	11 specific value of the forecasted market price of
1159	1159	12 electricity for each annual delivery year of the
1160	1160	13 contract. For procurement planning purposes, the
1161	1161	14 impact on the annual budget for the cost of
1162	1162	15 indexed renewable energy credits for each delivery
1163	1163	16 year shall be determined as the expected annual
1164	1164	17 contract expenditure for that year, equaling the
1165	1165	18 difference between (i) the sum across all relevant
1166	1166	19 contracts of the applicable strike price
1167	1167	20 multiplied by contract quantity and (ii) the sum
1168	1168	21 across all relevant contracts of the forward price
1169	1169	22 curve for the applicable load zone for that year
1170	1170	23 multiplied by contract quantity. The contracting
1171	1171	24 utility shall not assume an obligation in excess
1172	1172	25 of the estimated annual cost of the contracts for
1173	1173	26 indexed renewable energy credits. Forward curves
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	HB2563 - 32 - LRB103 29504 AMQ 55899 b
1180	1180
1181	1181
1182	1182	HB2563- 33 -LRB103 29504 AMQ 55899 b HB2563 - 33 - LRB103 29504 AMQ 55899 b
1183	1183	HB2563 - 33 - LRB103 29504 AMQ 55899 b
1184	1184	1 shall be revised on an annual basis as updated
1185	1185	2 forward price curves are released and filed with
1186	1186	3 the Commission in the proceeding approving the
1187	1187	4 Agency's most recent long-term renewable resources
1188	1188	5 procurement plan. If the expected contract spend
1189	1189	6 is higher or lower than the total quantity of
1190	1190	7 contracts multiplied by the forward price curve
1191	1191	8 value for that year, the forward price curve shall
1192	1192	9 be updated by the procurement administrator, in
1193	1193	10 consultation with the Agency, Commission staff,
1194	1194	11 and procurement monitors, using then-currently
1195	1195	12 available price forecast data and additional
1196	1196	13 budget dollars shall be obligated or reobligated
1197	1197	14 as appropriate.
1198	1198	15 (4) To ensure that indexed renewable energy
1199	1199	16 credit prices remain predictable and affordable,
1200	1200	17 the Agency may consider the institution of a price
1201	1201	18 collar on REC prices paid under indexed renewable
1202	1202	19 energy credit procurements establishing floor and
1203	1203	20 ceiling REC prices applicable to indexed REC
1204	1204	21 contract prices. Any price collars applicable to
1205	1205	22 indexed REC procurements shall be proposed by the
1206	1206	23 Agency through its long-term renewable resources
1207	1207	24 procurement plan.
1208	1208	25 (vi) All procurements under this subparagraph (G)
1209	1209	26 shall comply with the geographic requirements in
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215	HB2563 - 33 - LRB103 29504 AMQ 55899 b
1216	1216
1217	1217
1218	1218	HB2563- 34 -LRB103 29504 AMQ 55899 b HB2563 - 34 - LRB103 29504 AMQ 55899 b
1219	1219	HB2563 - 34 - LRB103 29504 AMQ 55899 b
1220	1220	1 subparagraph (I) of this paragraph (1) and shall
1221	1221	2 follow the procurement processes and procedures
1222	1222	3 described in this Section and Section 16-111.5 of the
1223	1223	4 Public Utilities Act to the extent practicable, and
1224	1224	5 these processes and procedures may be expedited to
1225	1225	6 accommodate the schedule established by this
1226	1226	7 subparagraph (G).
1227	1227	8 (H) The procurement of renewable energy resources for
1228	1228	9 a given delivery year shall be reduced as described in
1229	1229	10 this subparagraph (H) if an alternative retail electric
1230	1230	11 supplier meets the requirements described in this
1231	1231	12 subparagraph (H).
1232	1232	13 (i) Within 45 days after June 1, 2017 (the
1233	1233	14 effective date of Public Act 99-906), an alternative
1234	1234	15 retail electric supplier or its successor shall submit
1235	1235	16 an informational filing to the Illinois Commerce
1236	1236	17 Commission certifying that, as of December 31, 2015,
1237	1237	18 the alternative retail electric supplier owned one or
1238	1238	19 more electric generating facilities that generates
1239	1239	20 renewable energy resources as defined in Section 1-10
1240	1240	21 of this Act, provided that such facilities are not
1241	1241	22 powered by wind or photovoltaics, and the facilities
1242	1242	23 generate one renewable energy credit for each
1243	1243	24 megawatthour of energy produced from the facility.
1244	1244	25 The informational filing shall identify each
1245	1245	26 facility that was eligible to satisfy the alternative
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250
1251	1251	HB2563 - 34 - LRB103 29504 AMQ 55899 b
1252	1252
1253	1253
1254	1254	HB2563- 35 -LRB103 29504 AMQ 55899 b HB2563 - 35 - LRB103 29504 AMQ 55899 b
1255	1255	HB2563 - 35 - LRB103 29504 AMQ 55899 b
1256	1256	1 retail electric supplier's obligations under Section
1257	1257	2 16-115D of the Public Utilities Act as described in
1258	1258	3 this item (i).
1259	1259	4 (ii) For a given delivery year, the alternative
1260	1260	5 retail electric supplier may elect to supply its
1261	1261	6 retail customers with renewable energy credits from
1262	1262	7 the facility or facilities described in item (i) of
1263	1263	8 this subparagraph (H) that continue to be owned by the
1264	1264	9 alternative retail electric supplier.
1265	1265	10 (iii) The alternative retail electric supplier
1266	1266	11 shall notify the Agency and the applicable utility, no
1267	1267	12 later than February 28 of the year preceding the
1268	1268	13 applicable delivery year or 15 days after June 1, 2017
1269	1269	14 (the effective date of Public Act 99-906), whichever
1270	1270	15 is later, of its election under item (ii) of this
1271	1271	16 subparagraph (H) to supply renewable energy credits to
1272	1272	17 retail customers of the utility. Such election shall
1273	1273	18 identify the amount of renewable energy credits to be
1274	1274	19 supplied by the alternative retail electric supplier
1275	1275	20 to the utility's retail customers and the source of
1276	1276	21 the renewable energy credits identified in the
1277	1277	22 informational filing as described in item (i) of this
1278	1278	23 subparagraph (H), subject to the following
1279	1279	24 limitations:
1280	1280	25 For the delivery year beginning June 1, 2018,
1281	1281	26 the maximum amount of renewable energy credits to
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286
1287	1287	HB2563 - 35 - LRB103 29504 AMQ 55899 b
1288	1288
1289	1289
1290	1290	HB2563- 36 -LRB103 29504 AMQ 55899 b HB2563 - 36 - LRB103 29504 AMQ 55899 b
1291	1291	HB2563 - 36 - LRB103 29504 AMQ 55899 b
1292	1292	1 be supplied by an alternative retail electric
1293	1293	2 supplier under this subparagraph (H) shall be 68%
1294	1294	3 multiplied by 25% multiplied by 14.5% multiplied
1295	1295	4 by the amount of metered electricity
1296	1296	5 (megawatt-hours) delivered by the alternative
1297	1297	6 retail electric supplier to Illinois retail
1298	1298	7 customers during the delivery year ending May 31,
1299	1299	8 2016.
1300	1300	9 For delivery years beginning June 1, 2019 and
1301	1301	10 each year thereafter, the maximum amount of
1302	1302	11 renewable energy credits to be supplied by an
1303	1303	12 alternative retail electric supplier under this
1304	1304	13 subparagraph (H) shall be 68% multiplied by 50%
1305	1305	14 multiplied by 16% multiplied by the amount of
1306	1306	15 metered electricity (megawatt-hours) delivered by
1307	1307	16 the alternative retail electric supplier to
1308	1308	17 Illinois retail customers during the delivery year
1309	1309	18 ending May 31, 2016, provided that the 16% value
1310	1310	19 shall increase by 1.5% each delivery year
1311	1311	20 thereafter to 25% by the delivery year beginning
1312	1312	21 June 1, 2025, and thereafter the 25% value shall
1313	1313	22 apply to each delivery year.
1314	1314	23 For each delivery year, the total amount of
1315	1315	24 renewable energy credits supplied by all alternative
1316	1316	25 retail electric suppliers under this subparagraph (H)
1317	1317	26 shall not exceed 9% of the Illinois target renewable
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322
1323	1323	HB2563 - 36 - LRB103 29504 AMQ 55899 b
1324	1324
1325	1325
1326	1326	HB2563- 37 -LRB103 29504 AMQ 55899 b HB2563 - 37 - LRB103 29504 AMQ 55899 b
1327	1327	HB2563 - 37 - LRB103 29504 AMQ 55899 b
1328	1328	1 energy credit quantity. The Illinois target renewable
1329	1329	2 energy credit quantity for the delivery year beginning
1330	1330	3 June 1, 2018 is 14.5% multiplied by the total amount of
1331	1331	4 metered electricity (megawatt-hours) delivered in the
1332	1332	5 delivery year immediately preceding that delivery
1333	1333	6 year, provided that the 14.5% shall increase by 1.5%
1334	1334	7 each delivery year thereafter to 25% by the delivery
1335	1335	8 year beginning June 1, 2025, and thereafter the 25%
1336	1336	9 value shall apply to each delivery year.
1337	1337	10 If the requirements set forth in items (i) through
1338	1338	11 (iii) of this subparagraph (H) are met, the charges
1339	1339	12 that would otherwise be applicable to the retail
1340	1340	13 customers of the alternative retail electric supplier
1341	1341	14 under paragraph (6) of this subsection (c) for the
1342	1342	15 applicable delivery year shall be reduced by the ratio
1343	1343	16 of the quantity of renewable energy credits supplied
1344	1344	17 by the alternative retail electric supplier compared
1345	1345	18 to that supplier's target renewable energy credit
1346	1346	19 quantity. The supplier's target renewable energy
1347	1347	20 credit quantity for the delivery year beginning June
1348	1348	21 1, 2018 is 14.5% multiplied by the total amount of
1349	1349	22 metered electricity (megawatt-hours) delivered by the
1350	1350	23 alternative retail supplier in that delivery year,
1351	1351	24 provided that the 14.5% shall increase by 1.5% each
1352	1352	25 delivery year thereafter to 25% by the delivery year
1353	1353	26 beginning June 1, 2025, and thereafter the 25% value
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358
1359	1359	HB2563 - 37 - LRB103 29504 AMQ 55899 b
1360	1360
1361	1361
1362	1362	HB2563- 38 -LRB103 29504 AMQ 55899 b HB2563 - 38 - LRB103 29504 AMQ 55899 b
1363	1363	HB2563 - 38 - LRB103 29504 AMQ 55899 b
1364	1364	1 shall apply to each delivery year.
1365	1365	2 On or before April 1 of each year, the Agency shall
1366	1366	3 annually publish a report on its website that
1367	1367	4 identifies the aggregate amount of renewable energy
1368	1368	5 credits supplied by alternative retail electric
1369	1369	6 suppliers under this subparagraph (H).
1370	1370	7 (I) The Agency shall design its long-term renewable
1371	1371	8 energy procurement plan to maximize the State's interest
1372	1372	9 in the health, safety, and welfare of its residents,
1373	1373	10 including but not limited to minimizing sulfur dioxide,
1374	1374	11 nitrogen oxide, particulate matter and other pollution
1375	1375	12 that adversely affects public health in this State,
1376	1376	13 increasing fuel and resource diversity in this State,
1377	1377	14 enhancing the reliability and resiliency of the
1378	1378	15 electricity distribution system in this State, meeting
1379	1379	16 goals to limit carbon dioxide emissions under federal or
1380	1380	17 State law, and contributing to a cleaner and healthier
1381	1381	18 environment for the citizens of this State. In order to
1382	1382	19 further these legislative purposes, renewable energy
1383	1383	20 credits shall be eligible to be counted toward the
1384	1384	21 renewable energy requirements of this subsection (c) if
1385	1385	22 they are generated from facilities located in this State.
1386	1386	23 The Agency may qualify renewable energy credits from
1387	1387	24 facilities located in states adjacent to Illinois or
1388	1388	25 renewable energy credits associated with the electricity
1389	1389	26 generated by a utility-scale wind energy facility or
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394
1395	1395	HB2563 - 38 - LRB103 29504 AMQ 55899 b
1396	1396
1397	1397
1398	1398	HB2563- 39 -LRB103 29504 AMQ 55899 b HB2563 - 39 - LRB103 29504 AMQ 55899 b
1399	1399	HB2563 - 39 - LRB103 29504 AMQ 55899 b
1400	1400	1 utility-scale photovoltaic facility and transmitted by a
1401	1401	2 qualifying direct current project described in subsection
1402	1402	3 (b-5) of Section 8-406 of the Public Utilities Act to a
1403	1403	4 delivery point on the electric transmission grid located
1404	1404	5 in this State or a state adjacent to Illinois, if the
1405	1405	6 generator demonstrates and the Agency determines that the
1406	1406	7 operation of such facility or facilities will help promote
1407	1407	8 the State's interest in the health, safety, and welfare of
1408	1408	9 its residents based on the public interest criteria
1409	1409	10 described above. For the purposes of this Section,
1410	1410	11 renewable resources that are delivered via a high voltage
1411	1411	12 direct current converter station located in Illinois shall
1412	1412	13 be deemed generated in Illinois at the time and location
1413	1413	14 the energy is converted to alternating current by the high
1414	1414	15 voltage direct current converter station if the high
1415	1415	16 voltage direct current transmission line: (i) after the
1416	1416	17 effective date of this amendatory Act of the 102nd General
1417	1417	18 Assembly, was constructed with a project labor agreement;
1418	1418	19 (ii) is capable of transmitting electricity at 525kv;
1419	1419	20 (iii) has an Illinois converter station located and
1420	1420	21 interconnected in the region of the PJM Interconnection,
1421	1421	22 LLC; (iv) does not operate as a public utility; and (v) if
1422	1422	23 the high voltage direct current transmission line was
1423	1423	24 energized after June 1, 2023. To ensure that the public
1424	1424	25 interest criteria are applied to the procurement and given
1425	1425	26 full effect, the Agency's long-term procurement plan shall
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430
1431	1431	HB2563 - 39 - LRB103 29504 AMQ 55899 b
1432	1432
1433	1433
1434	1434	HB2563- 40 -LRB103 29504 AMQ 55899 b HB2563 - 40 - LRB103 29504 AMQ 55899 b
1435	1435	HB2563 - 40 - LRB103 29504 AMQ 55899 b
1436	1436	1 describe in detail how each public interest factor shall
1437	1437	2 be considered and weighted for facilities located in
1438	1438	3 states adjacent to Illinois.
1439	1439	4 (J) In order to promote the competitive development of
1440	1440	5 renewable energy resources in furtherance of the State's
1441	1441	6 interest in the health, safety, and welfare of its
1442	1442	7 residents, renewable energy credits shall not be eligible
1443	1443	8 to be counted toward the renewable energy requirements of
1444	1444	9 this subsection (c) if they are sourced from a generating
1445	1445	10 unit whose costs were being recovered through rates
1446	1446	11 regulated by this State or any other state or states on or
1447	1447	12 after January 1, 2017. Each contract executed to purchase
1448	1448	13 renewable energy credits under this subsection (c) shall
1449	1449	14 provide for the contract's termination if the costs of the
1450	1450	15 generating unit supplying the renewable energy credits
1451	1451	16 subsequently begin to be recovered through rates regulated
1452	1452	17 by this State or any other state or states; and each
1453	1453	18 contract shall further provide that, in that event, the
1454	1454	19 supplier of the credits must return 110% of all payments
1455	1455	20 received under the contract. Amounts returned under the
1456	1456	21 requirements of this subparagraph (J) shall be retained by
1457	1457	22 the utility and all of these amounts shall be used for the
1458	1458	23 procurement of additional renewable energy credits from
1459	1459	24 new wind or new photovoltaic resources as defined in this
1460	1460	25 subsection (c). The long-term plan shall provide that
1461	1461	26 these renewable energy credits shall be procured in the
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466
1467	1467	HB2563 - 40 - LRB103 29504 AMQ 55899 b
1468	1468
1469	1469
1470	1470	HB2563- 41 -LRB103 29504 AMQ 55899 b HB2563 - 41 - LRB103 29504 AMQ 55899 b
1471	1471	HB2563 - 41 - LRB103 29504 AMQ 55899 b
1472	1472	1 next procurement event.
1473	1473	2 Notwithstanding the limitations of this subparagraph
1474	1474	3 (J), renewable energy credits sourced from generating
1475	1475	4 units that are constructed, purchased, owned, or leased by
1476	1476	5 an electric utility as part of an approved project,
1477	1477	6 program, or pilot under Section 1-56 of this Act shall be
1478	1478	7 eligible to be counted toward the renewable energy
1479	1479	8 requirements of this subsection (c), regardless of how the
1480	1480	9 costs of these units are recovered. As long as a
1481	1481	10 generating unit or an identifiable portion of a generating
1482	1482	11 unit has not had and does not have its costs recovered
1483	1483	12 through rates regulated by this State or any other state,
1484	1484	13 HVDC renewable energy credits associated with that
1485	1485	14 generating unit or identifiable portion thereof shall be
1486	1486	15 eligible to be counted toward the renewable energy
1487	1487	16 requirements of this subsection (c).
1488	1488	17 (K) The long-term renewable resources procurement plan
1489	1489	18 developed by the Agency in accordance with subparagraph
1490	1490	19 (A) of this paragraph (1) shall include an Adjustable
1491	1491	20 Block program for the procurement of renewable energy
1492	1492	21 credits from new photovoltaic projects that are
1493	1493	22 distributed renewable energy generation devices or new
1494	1494	23 photovoltaic community renewable generation projects. The
1495	1495	24 Adjustable Block program shall be generally designed to
1496	1496	25 provide for the steady, predictable, and sustainable
1497	1497	26 growth of new solar photovoltaic development in Illinois.
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502
1503	1503	HB2563 - 41 - LRB103 29504 AMQ 55899 b
1504	1504
1505	1505
1506	1506	HB2563- 42 -LRB103 29504 AMQ 55899 b HB2563 - 42 - LRB103 29504 AMQ 55899 b
1507	1507	HB2563 - 42 - LRB103 29504 AMQ 55899 b
1508	1508	1 To this end, the Adjustable Block program shall provide a
1509	1509	2 transparent annual schedule of prices and quantities to
1510	1510	3 enable the photovoltaic market to scale up and for
1511	1511	4 renewable energy credit prices to adjust at a predictable
1512	1512	5 rate over time. The prices set by the Adjustable Block
1513	1513	6 program can be reflected as a set value or as the product
1514	1514	7 of a formula.
1515	1515	8 The Adjustable Block program shall include for each
1516	1516	9 category of eligible projects for each delivery year: a
1517	1517	10 single block of nameplate capacity, a price for renewable
1518	1518	11 energy credits within that block, and the terms and
1519	1519	12 conditions for securing a spot on a waitlist once the
1520	1520	13 block is fully committed or reserved. Except as outlined
1521	1521	14 below, the waitlist of projects in a given year will carry
1522	1522	15 over to apply to the subsequent year when another block is
1523	1523	16 opened. Only projects energized on or after June 1, 2017
1524	1524	17 shall be eligible for the Adjustable Block program. For
1525	1525	18 each category for each delivery year the Agency shall
1526	1526	19 determine the amount of generation capacity in each block,
1527	1527	20 and the purchase price for each block, provided that the
1528	1528	21 purchase price provided and the total amount of generation
1529	1529	22 in all blocks for all categories shall be sufficient to
1530	1530	23 meet the goals in this subsection (c). The Agency shall
1531	1531	24 strive to issue a single block sized to provide for
1532	1532	25 stability and market growth. The Agency shall establish
1533	1533	26 program eligibility requirements that ensure that projects
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538
1539	1539	HB2563 - 42 - LRB103 29504 AMQ 55899 b
1540	1540
1541	1541
1542	1542	HB2563- 43 -LRB103 29504 AMQ 55899 b HB2563 - 43 - LRB103 29504 AMQ 55899 b
1543	1543	HB2563 - 43 - LRB103 29504 AMQ 55899 b
1544	1544	1 that enter the program are sufficiently mature to indicate
1545	1545	2 a demonstrable path to completion. The Agency may
1546	1546	3 periodically review its prior decisions establishing the
1547	1547	4 amount of generation capacity in each block, and the
1548	1548	5 purchase price for each block, and may propose, on an
1549	1549	6 expedited basis, changes to these previously set values,
1550	1550	7 including but not limited to redistributing these amounts
1551	1551	8 and the available funds as necessary and appropriate,
1552	1552	9 subject to Commission approval as part of the periodic
1553	1553	10 plan revision process described in Section 16-111.5 of the
1554	1554	11 Public Utilities Act. The Agency may define different
1555	1555	12 block sizes, purchase prices, or other distinct terms and
1556	1556	13 conditions for projects located in different utility
1557	1557	14 service territories if the Agency deems it necessary to
1558	1558	15 meet the goals in this subsection (c).
1559	1559	16 The Adjustable Block program shall include the
1560	1560	17 following categories in at least the following amounts:
1561	1561	18 (i) At least 20% from distributed renewable energy
1562	1562	19 generation devices with a nameplate capacity of no
1563	1563	20 more than 25 kilowatts.
1564	1564	21 (ii) At least 20% from distributed renewable
1565	1565	22 energy generation devices with a nameplate capacity of
1566	1566	23 more than 25 kilowatts and no more than 5,000
1567	1567	24 kilowatts. The Agency may create sub-categories within
1568	1568	25 this category to account for the differences between
1569	1569	26 projects for small commercial customers, large
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574
1575	1575	HB2563 - 43 - LRB103 29504 AMQ 55899 b
1576	1576
1577	1577
1578	1578	HB2563- 44 -LRB103 29504 AMQ 55899 b HB2563 - 44 - LRB103 29504 AMQ 55899 b
1579	1579	HB2563 - 44 - LRB103 29504 AMQ 55899 b
1580	1580	1 commercial customers, and public or non-profit
1581	1581	2 customers.
1582	1582	3 (iii) At least 30% from photovoltaic community
1583	1583	4 renewable generation projects. Capacity for this
1584	1584	5 category for the first 2 delivery years after the
1585	1585	6 effective date of this amendatory Act of the 102nd
1586	1586	7 General Assembly shall be allocated to waitlist
1587	1587	8 projects as provided in paragraph (3) of item (iv) of
1588	1588	9 subparagraph (G). Starting in the third delivery year
1589	1589	10 after the effective date of this amendatory Act of the
1590	1590	11 102nd General Assembly or earlier if the Agency
1591	1591	12 determines there is additional capacity needed for to
1592	1592	13 meet previous delivery year requirements, the
1593	1593	14 following shall apply:
1594	1594	15 (1) the Agency shall select projects on a
1595	1595	16 first-come, first-serve basis, however the Agency
1596	1596	17 may suggest additional methods to prioritize
1597	1597	18 projects that are submitted at the same time;
1598	1598	19 (2) projects shall have subscriptions of 25 kW
1599	1599	20 or less for at least 50% of the facility's
1600	1600	21 nameplate capacity and the Agency shall price the
1601	1601	22 renewable energy credits with that as a factor;
1602	1602	23 (3) projects shall not be colocated with one
1603	1603	24 or more other community renewable generation
1604	1604	25 projects, as defined in the Agency's first revised
1605	1605	26 long-term renewable resources procurement plan
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610
1611	1611	HB2563 - 44 - LRB103 29504 AMQ 55899 b
1612	1612
1613	1613
1614	1614	HB2563- 45 -LRB103 29504 AMQ 55899 b HB2563 - 45 - LRB103 29504 AMQ 55899 b
1615	1615	HB2563 - 45 - LRB103 29504 AMQ 55899 b
1616	1616	1 approved by the Commission on February 18, 2020,
1617	1617	2 such that the aggregate nameplate capacity exceeds
1618	1618	3 5,000 kilowatts; and
1619	1619	4 (4) projects greater than 2 MW may not apply
1620	1620	5 until after the approval of the Agency's revised
1621	1621	6 Long-Term Renewable Resources Procurement Plan
1622	1622	7 after the effective date of this amendatory Act of
1623	1623	8 the 102nd General Assembly.
1624	1624	9 (iv) At least 15% from distributed renewable
1625	1625	10 generation devices or photovoltaic community renewable
1626	1626	11 generation projects installed at public schools. The
1627	1627	12 Agency may create subcategories within this category
1628	1628	13 to account for the differences between project size or
1629	1629	14 location. Projects located within environmental
1630	1630	15 justice communities or within Organizational Units
1631	1631	16 that fall within Tier 1 or Tier 2 shall be given
1632	1632	17 priority. Each of the Agency's periodic updates to its
1633	1633	18 long-term renewable resources procurement plan to
1634	1634	19 incorporate the procurement described in this
1635	1635	20 subparagraph (iv) shall also include the proposed
1636	1636	21 quantities or blocks, pricing, and contract terms
1637	1637	22 applicable to the procurement as indicated herein. In
1638	1638	23 each such update and procurement, the Agency shall set
1639	1639	24 the renewable energy credit price and establish
1640	1640	25 payment terms for the renewable energy credits
1641	1641	26 procured pursuant to this subparagraph (iv) that make
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646
1647	1647	HB2563 - 45 - LRB103 29504 AMQ 55899 b
1648	1648
1649	1649
1650	1650	HB2563- 46 -LRB103 29504 AMQ 55899 b HB2563 - 46 - LRB103 29504 AMQ 55899 b
1651	1651	HB2563 - 46 - LRB103 29504 AMQ 55899 b
1652	1652	1 it feasible and affordable for public schools to
1653	1653	2 install photovoltaic distributed renewable energy
1654	1654	3 devices on their premises, including, but not limited
1655	1655	4 to, those public schools subject to the prioritization
1656	1656	5 provisions of this subparagraph. For the purposes of
1657	1657	6 this item (iv):
1658	1658	7 "Environmental Justice Community" shall have the
1659	1659	8 same meaning set forth in the Agency's long-term
1660	1660	9 renewable resources procurement plan;
1661	1661	10 "Organization Unit", "Tier 1" and "Tier 2" shall
1662	1662	11 have the meanings set for in Section 18-8.15 of the
1663	1663	12 School Code;
1664	1664	13 "Public schools" shall have the meaning set forth
1665	1665	14 in Section 1-3 of the School Code.
1666	1666	15 (v) At least 5% from community-driven community
1667	1667	16 solar projects intended to provide more direct and
1668	1668	17 tangible connection and benefits to the communities
1669	1669	18 which they serve or in which they operate and,
1670	1670	19 additionally, to increase the variety of community
1671	1671	20 solar locations, models, and options in Illinois. As
1672	1672	21 part of its long-term renewable resources procurement
1673	1673	22 plan, the Agency shall develop selection criteria for
1674	1674	23 projects participating in this category. Nothing in
1675	1675	24 this Section shall preclude the Agency from creating a
1676	1676	25 selection process that maximizes community ownership
1677	1677	26 and community benefits in selecting projects to
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682
1683	1683	HB2563 - 46 - LRB103 29504 AMQ 55899 b
1684	1684
1685	1685
1686	1686	HB2563- 47 -LRB103 29504 AMQ 55899 b HB2563 - 47 - LRB103 29504 AMQ 55899 b
1687	1687	HB2563 - 47 - LRB103 29504 AMQ 55899 b
1688	1688	1 receive renewable energy credits. Selection criteria
1689	1689	2 shall include:
1690	1690	3 (1) community ownership or community
1691	1691	4 wealth-building;
1692	1692	5 (2) additional direct and indirect community
1693	1693	6 benefit, beyond project participation as a
1694	1694	7 subscriber, including, but not limited to,
1695	1695	8 economic, environmental, social, cultural, and
1696	1696	9 physical benefits;
1697	1697	10 (3) meaningful involvement in project
1698	1698	11 organization and development by community members
1699	1699	12 or nonprofit organizations or public entities
1700	1700	13 located in or serving the community;
1701	1701	14 (4) engagement in project operations and
1702	1702	15 management by nonprofit organizations, public
1703	1703	16 entities, or community members; and
1704	1704	17 (5) whether a project is developed in response
1705	1705	18 to a site-specific RFP developed by community
1706	1706	19 members or a nonprofit organization or public
1707	1707	20 entity located in or serving the community.
1708	1708	21 Selection criteria may also prioritize projects
1709	1709	22 that:
1710	1710	23 (1) are developed in collaboration with or to
1711	1711	24 provide complementary opportunities for the Clean
1712	1712	25 Jobs Workforce Network Program, the Illinois
1713	1713	26 Climate Works Preapprenticeship Program, the
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718
1719	1719	HB2563 - 47 - LRB103 29504 AMQ 55899 b
1720	1720
1721	1721
1722	1722	HB2563- 48 -LRB103 29504 AMQ 55899 b HB2563 - 48 - LRB103 29504 AMQ 55899 b
1723	1723	HB2563 - 48 - LRB103 29504 AMQ 55899 b
1724	1724	1 Returning Residents Clean Jobs Training Program,
1725	1725	2 the Clean Energy Contractor Incubator Program, or
1726	1726	3 the Clean Energy Primes Contractor Accelerator
1727	1727	4 Program;
1728	1728	5 (2) increase the diversity of locations of
1729	1729	6 community solar projects in Illinois, including by
1730	1730	7 locating in urban areas and population centers;
1731	1731	8 (3) are located in Equity Investment Eligible
1732	1732	9 Communities;
1733	1733	10 (4) are not greenfield projects;
1734	1734	11 (5) serve only local subscribers;
1735	1735	12 (6) have a nameplate capacity that does not
1736	1736	13 exceed 500 kW;
1737	1737	14 (7) are developed by an equity eligible
1738	1738	15 contractor; or
1739	1739	16 (8) otherwise meaningfully advance the goals
1740	1740	17 of providing more direct and tangible connection
1741	1741	18 and benefits to the communities which they serve
1742	1742	19 or in which they operate and increasing the
1743	1743	20 variety of community solar locations, models, and
1744	1744	21 options in Illinois.
1745	1745	22 For the purposes of this item (v):
1746	1746	23 "Community" means a social unit in which people
1747	1747	24 come together regularly to effect change; a social
1748	1748	25 unit in which participants are marked by a cooperative
1749	1749	26 spirit, a common purpose, or shared interests or
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754
1755	1755	HB2563 - 48 - LRB103 29504 AMQ 55899 b
1756	1756
1757	1757
1758	1758	HB2563- 49 -LRB103 29504 AMQ 55899 b HB2563 - 49 - LRB103 29504 AMQ 55899 b
1759	1759	HB2563 - 49 - LRB103 29504 AMQ 55899 b
1760	1760	1 characteristics; or a space understood by its
1761	1761	2 residents to be delineated through geographic
1762	1762	3 boundaries or landmarks.
1763	1763	4 "Community benefit" means a range of services and
1764	1764	5 activities that provide affirmative, economic,
1765	1765	6 environmental, social, cultural, or physical value to
1766	1766	7 a community; or a mechanism that enables economic
1767	1767	8 development, high-quality employment, and education
1768	1768	9 opportunities for local workers and residents, or
1769	1769	10 formal monitoring and oversight structures such that
1770	1770	11 community members may ensure that those services and
1771	1771	12 activities respond to local knowledge and needs.
1772	1772	13 "Community ownership" means an arrangement in
1773	1773	14 which an electric generating facility is, or over time
1774	1774	15 will be, in significant part, owned collectively by
1775	1775	16 members of the community to which an electric
1776	1776	17 generating facility provides benefits; members of that
1777	1777	18 community participate in decisions regarding the
1778	1778	19 governance, operation, maintenance, and upgrades of
1779	1779	20 and to that facility; and members of that community
1780	1780	21 benefit from regular use of that facility.
1781	1781	22 Terms and guidance within these criteria that are
1782	1782	23 not defined in this item (v) shall be defined by the
1783	1783	24 Agency, with stakeholder input, during the development
1784	1784	25 of the Agency's long-term renewable resources
1785	1785	26 procurement plan. The Agency shall develop regular
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790
1791	1791	HB2563 - 49 - LRB103 29504 AMQ 55899 b
1792	1792
1793	1793
1794	1794	HB2563- 50 -LRB103 29504 AMQ 55899 b HB2563 - 50 - LRB103 29504 AMQ 55899 b
1795	1795	HB2563 - 50 - LRB103 29504 AMQ 55899 b
1796	1796	1 opportunities for projects to submit applications for
1797	1797	2 projects under this category, and develop selection
1798	1798	3 criteria that gives preference to projects that better
1799	1799	4 meet individual criteria as well as projects that
1800	1800	5 address a higher number of criteria.
1801	1801	6 (vi) At least 10% from distributed renewable
1802	1802	7 energy generation devices, which includes distributed
1803	1803	8 renewable energy devices with a nameplate capacity
1804	1804	9 under 5,000 kilowatts or photovoltaic community
1805	1805	10 renewable generation projects, from applicants that
1806	1806	11 are equity eligible contractors. The Agency may create
1807	1807	12 subcategories within this category to account for the
1808	1808	13 differences between project size and type. The Agency
1809	1809	14 shall propose to increase the percentage in this item
1810	1810	15 (vi) over time to 40% based on factors, including, but
1811	1811	16 not limited to, the number of equity eligible
1812	1812	17 contractors and capacity used in this item (vi) in
1813	1813	18 previous delivery years.
1814	1814	19 The Agency shall propose a payment structure for
1815	1815	20 contracts executed pursuant to this paragraph under
1816	1816	21 which, upon a demonstration of qualification or need,
1817	1817	22 applicant firms are advanced capital disbursed after
1818	1818	23 contract execution but before the contracted project's
1819	1819	24 energization. The amount or percentage of capital
1820	1820	25 advanced prior to project energization shall be
1821	1821	26 sufficient to both cover any increase in development
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826
1827	1827	HB2563 - 50 - LRB103 29504 AMQ 55899 b
1828	1828
1829	1829
1830	1830	HB2563- 51 -LRB103 29504 AMQ 55899 b HB2563 - 51 - LRB103 29504 AMQ 55899 b
1831	1831	HB2563 - 51 - LRB103 29504 AMQ 55899 b
1832	1832	1 costs resulting from prevailing wage requirements or
1833	1833	2 project-labor agreements, and designed to overcome
1834	1834	3 barriers in access to capital faced by equity eligible
1835	1835	4 contractors. The amount or percentage of advanced
1836	1836	5 capital may vary by subcategory within this category
1837	1837	6 and by an applicant's demonstration of need, with such
1838	1838	7 levels to be established through the Long-Term
1839	1839	8 Renewable Resources Procurement Plan authorized under
1840	1840	9 subparagraph (A) of paragraph (1) of subsection (c) of
1841	1841	10 this Section.
1842	1842	11 Contracts developed featuring capital advanced
1843	1843	12 prior to a project's energization shall feature
1844	1844	13 provisions to ensure both the successful development
1845	1845	14 of applicant projects and the delivery of the
1846	1846	15 renewable energy credits for the full term of the
1847	1847	16 contract, including ongoing collateral requirements
1848	1848	17 and other provisions deemed necessary by the Agency,
1849	1849	18 and may include energization timelines longer than for
1850	1850	19 comparable project types. The percentage or amount of
1851	1851	20 capital advanced prior to project energization shall
1852	1852	21 not operate to increase the overall contract value,
1853	1853	22 however contracts executed under this subparagraph may
1854	1854	23 feature renewable energy credit prices higher than
1855	1855	24 those offered to similar projects participating in
1856	1856	25 other categories. Capital advanced prior to
1857	1857	26 energization shall serve to reduce the ratable
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862
1863	1863	HB2563 - 51 - LRB103 29504 AMQ 55899 b
1864	1864
1865	1865
1866	1866	HB2563- 52 -LRB103 29504 AMQ 55899 b HB2563 - 52 - LRB103 29504 AMQ 55899 b
1867	1867	HB2563 - 52 - LRB103 29504 AMQ 55899 b
1868	1868	1 payments made after energization under items (ii) and
1869	1869	2 (iii) of subparagraph (L) or payments made for each
1870	1870	3 renewable energy credit delivery under item (iv) of
1871	1871	4 subparagraph (L).
1872	1872	5 (vii) The remaining capacity shall be allocated by
1873	1873	6 the Agency in order to respond to market demand. The
1874	1874	7 Agency shall allocate any discretionary capacity prior
1875	1875	8 to the beginning of each delivery year.
1876	1876	9 To the extent there is uncontracted capacity from any
1877	1877	10 block in any of categories (i) through (vi) at the end of a
1878	1878	11 delivery year, the Agency shall redistribute that capacity
1879	1879	12 to one or more other categories giving priority to
1880	1880	13 categories with projects on a waitlist. The redistributed
1881	1881	14 capacity shall be added to the annual capacity in the
1882	1882	15 subsequent delivery year, and the price for renewable
1883	1883	16 energy credits shall be the price for the new delivery
1884	1884	17 year. Redistributed capacity shall not be considered
1885	1885	18 redistributed when determining whether the goals in this
1886	1886	19 subsection (K) have been met.
1887	1887	20 Notwithstanding anything to the contrary, as the
1888	1888	21 Agency increases the capacity in item (vi) to 40% over
1889	1889	22 time, the Agency may reduce the capacity of items (i)
1890	1890	23 through (v) proportionate to the capacity of the
1891	1891	24 categories of projects in item (vi), to achieve a balance
1892	1892	25 of project types.
1893	1893	26 The Adjustable Block program shall be designed to
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898
1899	1899	HB2563 - 52 - LRB103 29504 AMQ 55899 b
1900	1900
1901	1901
1902	1902	HB2563- 53 -LRB103 29504 AMQ 55899 b HB2563 - 53 - LRB103 29504 AMQ 55899 b
1903	1903	HB2563 - 53 - LRB103 29504 AMQ 55899 b
1904	1904	1 ensure that renewable energy credits are procured from
1905	1905	2 projects in diverse locations and are not concentrated in
1906	1906	3 a few regional areas.
1907	1907	4 (L) Notwithstanding provisions for advancing capital
1908	1908	5 prior to project energization found in item (vi) of
1909	1909	6 subparagraph (K), the procurement of photovoltaic
1910	1910	7 renewable energy credits under items (i) through (vi) of
1911	1911	8 subparagraph (K) of this paragraph (1) shall otherwise be
1912	1912	9 subject to the following contract and payment terms:
1913	1913	10 (i) (Blank).
1914	1914	11 (ii) For those renewable energy credits that
1915	1915	12 qualify and are procured under item (i) of
1916	1916	13 subparagraph (K) of this paragraph (1), and any
1917	1917	14 similar category projects that are procured under item
1918	1918	15 (vi) of subparagraph (K) of this paragraph (1) that
1919	1919	16 qualify and are procured under item (vi), the contract
1920	1920	17 length shall be 15 years. The renewable energy credit
1921	1921	18 delivery contract value shall be paid in full, based
1922	1922	19 on the estimated generation during the first 15 years
1923	1923	20 of operation, by the contracting utilities at the time
1924	1924	21 that the facility producing the renewable energy
1925	1925	22 credits is interconnected at the distribution system
1926	1926	23 level of the utility and verified as energized and
1927	1927	24 compliant by the Program Administrator. The electric
1928	1928	25 utility shall receive and retire all renewable energy
1929	1929	26 credits generated by the project for the first 15
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934
1935	1935	HB2563 - 53 - LRB103 29504 AMQ 55899 b
1936	1936
1937	1937
1938	1938	HB2563- 54 -LRB103 29504 AMQ 55899 b HB2563 - 54 - LRB103 29504 AMQ 55899 b
1939	1939	HB2563 - 54 - LRB103 29504 AMQ 55899 b
1940	1940	1 years of operation. Renewable energy credits generated
1941	1941	2 by the project thereafter shall not be transferred
1942	1942	3 under the renewable energy credit delivery contract
1943	1943	4 with the counterparty electric utility.
1944	1944	5 (iii) For those renewable energy credits that
1945	1945	6 qualify and are procured under item (ii) and (v) of
1946	1946	7 subparagraph (K) of this paragraph (1) and any like
1947	1947	8 projects similar category that qualify and are
1948	1948	9 procured under item (vi), the contract length shall be
1949	1949	10 15 years. 15% of the renewable energy credit delivery
1950	1950	11 contract value, based on the estimated generation
1951	1951	12 during the first 15 years of operation, shall be paid
1952	1952	13 by the contracting utilities at the time that the
1953	1953	14 facility producing the renewable energy credits is
1954	1954	15 interconnected at the distribution system level of the
1955	1955	16 utility and verified as energized and compliant by the
1956	1956	17 Program Administrator. The remaining portion shall be
1957	1957	18 paid ratably over the subsequent 6-year period. The
1958	1958	19 electric utility shall receive and retire all
1959	1959	20 renewable energy credits generated by the project for
1960	1960	21 the first 15 years of operation. Renewable energy
1961	1961	22 credits generated by the project thereafter shall not
1962	1962	23 be transferred under the renewable energy credit
1963	1963	24 delivery contract with the counterparty electric
1964	1964	25 utility.
1965	1965	26 (iv) For those renewable energy credits that
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970
1971	1971	HB2563 - 54 - LRB103 29504 AMQ 55899 b
1972	1972
1973	1973
1974	1974	HB2563- 55 -LRB103 29504 AMQ 55899 b HB2563 - 55 - LRB103 29504 AMQ 55899 b
1975	1975	HB2563 - 55 - LRB103 29504 AMQ 55899 b
1976	1976	1 qualify and are procured under items (iii) and (iv) of
1977	1977	2 subparagraph (K) of this paragraph (1), and any like
1978	1978	3 projects that qualify and are procured under item
1979	1979	4 (vi), the renewable energy credit delivery contract
1980	1980	5 length shall be 20 years and shall be paid over the
1981	1981	6 delivery term, not to exceed during each delivery year
1982	1982	7 the contract price multiplied by the estimated annual
1983	1983	8 renewable energy credit generation amount. If
1984	1984	9 generation of renewable energy credits during a
1985	1985	10 delivery year exceeds the estimated annual generation
1986	1986	11 amount, the excess renewable energy credits shall be
1987	1987	12 carried forward to future delivery years and shall not
1988	1988	13 expire during the delivery term. If generation of
1989	1989	14 renewable energy credits during a delivery year,
1990	1990	15 including carried forward excess renewable energy
1991	1991	16 credits, if any, is less than the estimated annual
1992	1992	17 generation amount, payments during such delivery year
1993	1993	18 will not exceed the quantity generated plus the
1994	1994	19 quantity carried forward multiplied by the contract
1995	1995	20 price. The electric utility shall receive all
1996	1996	21 renewable energy credits generated by the project
1997	1997	22 during the first 20 years of operation and retire all
1998	1998	23 renewable energy credits paid for under this item (iv)
1999	1999	24 and return at the end of the delivery term all
2000	2000	25 renewable energy credits that were not paid for.
2001	2001	26 Renewable energy credits generated by the project
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006
2007	2007	HB2563 - 55 - LRB103 29504 AMQ 55899 b
2008	2008
2009	2009
2010	2010	HB2563- 56 -LRB103 29504 AMQ 55899 b HB2563 - 56 - LRB103 29504 AMQ 55899 b
2011	2011	HB2563 - 56 - LRB103 29504 AMQ 55899 b
2012	2012	1 thereafter shall not be transferred under the
2013	2013	2 renewable energy credit delivery contract with the
2014	2014	3 counterparty electric utility. Notwithstanding the
2015	2015	4 preceding, for those projects participating under item
2016	2016	5 (iii) of subparagraph (K), the contract price for a
2017	2017	6 delivery year shall be based on subscription levels as
2018	2018	7 measured on the higher of the first business day of the
2019	2019	8 delivery year or the first business day 6 months after
2020	2020	9 the first business day of the delivery year.
2021	2021	10 Subscription of 90% of nameplate capacity or greater
2022	2022	11 shall be deemed to be fully subscribed for the
2023	2023	12 purposes of this item (iv). For projects receiving a
2024	2024	13 20-year delivery contract, REC prices shall be
2025	2025	14 adjusted downward for consistency with the incentive
2026	2026	15 levels previously determined to be necessary to
2027	2027	16 support projects under 15-year delivery contracts,
2028	2028	17 taking into consideration any additional new
2029	2029	18 requirements placed on the projects, including, but
2030	2030	19 not limited to, labor standards.
2031	2031	20 (v) Each contract shall include provisions to
2032	2032	21 ensure the delivery of the estimated quantity of
2033	2033	22 renewable energy credits and ongoing collateral
2034	2034	23 requirements and other provisions deemed appropriate
2035	2035	24 by the Agency.
2036	2036	25 (vi) The utility shall be the counterparty to the
2037	2037	26 contracts executed under this subparagraph (L) that
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042
2043	2043	HB2563 - 56 - LRB103 29504 AMQ 55899 b
2044	2044
2045	2045
2046	2046	HB2563- 57 -LRB103 29504 AMQ 55899 b HB2563 - 57 - LRB103 29504 AMQ 55899 b
2047	2047	HB2563 - 57 - LRB103 29504 AMQ 55899 b
2048	2048	1 are approved by the Commission under the process
2049	2049	2 described in Section 16-111.5 of the Public Utilities
2050	2050	3 Act. No contract shall be executed for an amount that
2051	2051	4 is less than one renewable energy credit per year.
2052	2052	5 (vii) If, at any time, approved applications for
2053	2053	6 the Adjustable Block program exceed funds collected by
2054	2054	7 the electric utility or would cause the Agency to
2055	2055	8 exceed the limitation described in subparagraph (E) of
2056	2056	9 this paragraph (1) on the amount of renewable energy
2057	2057	10 resources that may be procured, then the Agency may
2058	2058	11 consider future uncommitted funds to be reserved for
2059	2059	12 these contracts on a first-come, first-served basis.
2060	2060	13 (viii) Nothing in this Section shall require the
2061	2061	14 utility to advance any payment or pay any amounts that
2062	2062	15 exceed the actual amount of revenues anticipated to be
2063	2063	16 collected by the utility under paragraph (6) of this
2064	2064	17 subsection (c) and subsection (k) of Section 16-108 of
2065	2065	18 the Public Utilities Act inclusive of eligible funds
2066	2066	19 collected in prior years and alternative compliance
2067	2067	20 payments for use by the utility, and contracts
2068	2068	21 executed under this Section shall expressly
2069	2069	22 incorporate this limitation.
2070	2070	23 (ix) Notwithstanding other requirements of this
2071	2071	24 subparagraph (L), no modification shall be required to
2072	2072	25 Adjustable Block program contracts if they were
2073	2073	26 already executed prior to the establishment, approval,
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078
2079	2079	HB2563 - 57 - LRB103 29504 AMQ 55899 b
2080	2080
2081	2081
2082	2082	HB2563- 58 -LRB103 29504 AMQ 55899 b HB2563 - 58 - LRB103 29504 AMQ 55899 b
2083	2083	HB2563 - 58 - LRB103 29504 AMQ 55899 b
2084	2084	1 and implementation of new contract forms as a result
2085	2085	2 of this amendatory Act of the 102nd General Assembly.
2086	2086	3 (x) Contracts may be assignable, but only to
2087	2087	4 entities first deemed by the Agency to have met
2088	2088	5 program terms and requirements applicable to direct
2089	2089	6 program participation. In developing contracts for the
2090	2090	7 delivery of renewable energy credits, the Agency shall
2091	2091	8 be permitted to establish fees applicable to each
2092	2092	9 contract assignment.
2093	2093	10 (M) The Agency shall be authorized to retain one or
2094	2094	11 more experts or expert consulting firms to develop,
2095	2095	12 administer, implement, operate, and evaluate the
2096	2096	13 Adjustable Block program described in subparagraph (K) of
2097	2097	14 this paragraph (1), and the Agency shall retain the
2098	2098	15 consultant or consultants in the same manner, to the
2099	2099	16 extent practicable, as the Agency retains others to
2100	2100	17 administer provisions of this Act, including, but not
2101	2101	18 limited to, the procurement administrator. The selection
2102	2102	19 of experts and expert consulting firms and the procurement
2103	2103	20 process described in this subparagraph (M) are exempt from
2104	2104	21 the requirements of Section 20-10 of the Illinois
2105	2105	22 Procurement Code, under Section 20-10 of that Code. The
2106	2106	23 Agency shall strive to minimize administrative expenses in
2107	2107	24 the implementation of the Adjustable Block program.
2108	2108	25 The Program Administrator may charge application fees
2109	2109	26 to participating firms to cover the cost of program
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114
2115	2115	HB2563 - 58 - LRB103 29504 AMQ 55899 b
2116	2116
2117	2117
2118	2118	HB2563- 59 -LRB103 29504 AMQ 55899 b HB2563 - 59 - LRB103 29504 AMQ 55899 b
2119	2119	HB2563 - 59 - LRB103 29504 AMQ 55899 b
2120	2120	1 administration. Any application fee amounts shall
2121	2121	2 initially be determined through the long-term renewable
2122	2122	3 resources procurement plan, and modifications to any
2123	2123	4 application fee that deviate more than 25% from the
2124	2124	5 Commission's approved value must be approved by the
2125	2125	6 Commission as a long-term plan revision under Section
2126	2126	7 16-111.5 of the Public Utilities Act. The Agency shall
2127	2127	8 consider stakeholder feedback when making adjustments to
2128	2128	9 application fees and shall notify stakeholders in advance
2129	2129	10 of any planned changes.
2130	2130	11 In addition to covering the costs of program
2131	2131	12 administration, the Agency, in conjunction with its
2132	2132	13 Program Administrator, may also use the proceeds of such
2133	2133	14 fees charged to participating firms to support public
2134	2134	15 education and ongoing regional and national coordination
2135	2135	16 with nonprofit organizations, public bodies, and others
2136	2136	17 engaged in the implementation of renewable energy
2137	2137	18 incentive programs or similar initiatives. This work may
2138	2138	19 include developing papers and reports, hosting regional
2139	2139	20 and national conferences, and other work deemed necessary
2140	2140	21 by the Agency to position the State of Illinois as a
2141	2141	22 national leader in renewable energy incentive program
2142	2142	23 development and administration.
2143	2143	24 The Agency and its consultant or consultants shall
2144	2144	25 monitor block activity, share program activity with
2145	2145	26 stakeholders and conduct quarterly meetings to discuss
2146	2146
2147	2147
2148	2148
2149	2149
2150	2150
2151	2151	HB2563 - 59 - LRB103 29504 AMQ 55899 b
2152	2152
2153	2153
2154	2154	HB2563- 60 -LRB103 29504 AMQ 55899 b HB2563 - 60 - LRB103 29504 AMQ 55899 b
2155	2155	HB2563 - 60 - LRB103 29504 AMQ 55899 b
2156	2156	1 program activity and market conditions. If necessary, the
2157	2157	2 Agency may make prospective administrative adjustments to
2158	2158	3 the Adjustable Block program design, such as making
2159	2159	4 adjustments to purchase prices as necessary to achieve the
2160	2160	5 goals of this subsection (c). Program modifications to any
2161	2161	6 block price that do not deviate from the Commission's
2162	2162	7 approved value by more than 10% shall take effect
2163	2163	8 immediately and are not subject to Commission review and
2164	2164	9 approval. Program modifications to any block price that
2165	2165	10 deviate more than 10% from the Commission's approved value
2166	2166	11 must be approved by the Commission as a long-term plan
2167	2167	12 amendment under Section 16-111.5 of the Public Utilities
2168	2168	13 Act. The Agency shall consider stakeholder feedback when
2169	2169	14 making adjustments to the Adjustable Block design and
2170	2170	15 shall notify stakeholders in advance of any planned
2171	2171	16 changes.
2172	2172	17 The Agency and its program administrators for both the
2173	2173	18 Adjustable Block program and the Illinois Solar for All
2174	2174	19 Program, consistent with the requirements of this
2175	2175	20 subsection (c) and subsection (b) of Section 1-56 of this
2176	2176	21 Act, shall propose the Adjustable Block program terms,
2177	2177	22 conditions, and requirements, including the prices to be
2178	2178	23 paid for renewable energy credits, where applicable, and
2179	2179	24 requirements applicable to participating entities and
2180	2180	25 project applications, through the development, review, and
2181	2181	26 approval of the Agency's long-term renewable resources
2182	2182
2183	2183
2184	2184
2185	2185
2186	2186
2187	2187	HB2563 - 60 - LRB103 29504 AMQ 55899 b
2188	2188
2189	2189
2190	2190	HB2563- 61 -LRB103 29504 AMQ 55899 b HB2563 - 61 - LRB103 29504 AMQ 55899 b
2191	2191	HB2563 - 61 - LRB103 29504 AMQ 55899 b
2192	2192	1 procurement plan described in this subsection (c) and
2193	2193	2 paragraph (5) of subsection (b) of Section 16-111.5 of the
2194	2194	3 Public Utilities Act. Terms, conditions, and requirements
2195	2195	4 for program participation shall include the following:
2196	2196	5 (i) The Agency shall establish a registration
2197	2197	6 process for entities seeking to qualify for
2198	2198	7 program-administered incentive funding and establish
2199	2199	8 baseline qualifications for vendor approval. The
2200	2200	9 Agency must maintain a list of approved entities on
2201	2201	10 each program's website, and may revoke a vendor's
2202	2202	11 ability to receive program-administered incentive
2203	2203	12 funding status upon a determination that the vendor
2204	2204	13 failed to comply with contract terms, the law, or
2205	2205	14 other program requirements.
2206	2206	15 (ii) The Agency shall establish program
2207	2207	16 requirements and minimum contract terms to ensure
2208	2208	17 projects are properly installed and produce their
2209	2209	18 expected amounts of energy. Program requirements may
2210	2210	19 include on-site inspections and photo documentation of
2211	2211	20 projects under construction. The Agency may require
2212	2212	21 repairs, alterations, or additions to remedy any
2213	2213	22 material deficiencies discovered. Vendors who have a
2214	2214	23 disproportionately high number of deficient systems
2215	2215	24 may lose their eligibility to continue to receive
2216	2216	25 State-administered incentive funding through Agency
2217	2217	26 programs and procurements.
2218	2218
2219	2219
2220	2220
2221	2221
2222	2222
2223	2223	HB2563 - 61 - LRB103 29504 AMQ 55899 b
2224	2224
2225	2225
2226	2226	HB2563- 62 -LRB103 29504 AMQ 55899 b HB2563 - 62 - LRB103 29504 AMQ 55899 b
2227	2227	HB2563 - 62 - LRB103 29504 AMQ 55899 b
2228	2228	1 (iii) To discourage deceptive marketing or other
2229	2229	2 bad faith business practices, the Agency may require
2230	2230	3 direct program participants, including agents
2231	2231	4 operating on their behalf, to provide standardized
2232	2232	5 disclosures to a customer prior to that customer's
2233	2233	6 execution of a contract for the development of a
2234	2234	7 distributed generation system or a subscription to a
2235	2235	8 community solar project.
2236	2236	9 (iv) The Agency shall establish one or multiple
2237	2237	10 Consumer Complaints Centers to accept complaints
2238	2238	11 regarding businesses that participate in, or otherwise
2239	2239	12 benefit from, State-administered incentive funding
2240	2240	13 through Agency-administered programs. The Agency shall
2241	2241	14 maintain a public database of complaints with any
2242	2242	15 confidential or particularly sensitive information
2243	2243	16 redacted from public entries.
2244	2244	17 (v) Through a filing in the proceeding for the
2245	2245	18 approval of its long-term renewable energy resources
2246	2246	19 procurement plan, the Agency shall provide an annual
2247	2247	20 written report to the Illinois Commerce Commission
2248	2248	21 documenting the frequency and nature of complaints and
2249	2249	22 any enforcement actions taken in response to those
2250	2250	23 complaints.
2251	2251	24 (vi) The Agency shall schedule regular meetings
2252	2252	25 with representatives of the Office of the Attorney
2253	2253	26 General, the Illinois Commerce Commission, consumer
2254	2254
2255	2255
2256	2256
2257	2257
2258	2258
2259	2259	HB2563 - 62 - LRB103 29504 AMQ 55899 b
2260	2260
2261	2261
2262	2262	HB2563- 63 -LRB103 29504 AMQ 55899 b HB2563 - 63 - LRB103 29504 AMQ 55899 b
2263	2263	HB2563 - 63 - LRB103 29504 AMQ 55899 b
2264	2264	1 protection groups, and other interested stakeholders
2265	2265	2 to share relevant information about consumer
2266	2266	3 protection, project compliance, and complaints
2267	2267	4 received.
2268	2268	5 (vii) To the extent that complaints received
2269	2269	6 implicate the jurisdiction of the Office of the
2270	2270	7 Attorney General, the Illinois Commerce Commission, or
2271	2271	8 local, State, or federal law enforcement, the Agency
2272	2272	9 shall also refer complaints to those entities as
2273	2273	10 appropriate.
2274	2274	11 (N) The Agency shall establish the terms, conditions,
2275	2275	12 and program requirements for photovoltaic community
2276	2276	13 renewable generation projects with a goal to expand access
2277	2277	14 to a broader group of energy consumers, to ensure robust
2278	2278	15 participation opportunities for residential and small
2279	2279	16 commercial customers and those who cannot install
2280	2280	17 renewable energy on their own properties. Subject to
2281	2281	18 reasonable limitations, any plan approved by the
2282	2282	19 Commission shall allow subscriptions to community
2283	2283	20 renewable generation projects to be portable and
2284	2284	21 transferable. For purposes of this subparagraph (N),
2285	2285	22 "portable" means that subscriptions may be retained by the
2286	2286	23 subscriber even if the subscriber relocates or changes its
2287	2287	24 address within the same utility service territory; and
2288	2288	25 "transferable" means that a subscriber may assign or sell
2289	2289	26 subscriptions to another person within the same utility
2290	2290
2291	2291
2292	2292
2293	2293
2294	2294
2295	2295	HB2563 - 63 - LRB103 29504 AMQ 55899 b
2296	2296
2297	2297
2298	2298	HB2563- 64 -LRB103 29504 AMQ 55899 b HB2563 - 64 - LRB103 29504 AMQ 55899 b
2299	2299	HB2563 - 64 - LRB103 29504 AMQ 55899 b
2300	2300	1 service territory.
2301	2301	2 Through the development of its long-term renewable
2302	2302	3 resources procurement plan, the Agency may consider
2303	2303	4 whether community renewable generation projects utilizing
2304	2304	5 technologies other than photovoltaics should be supported
2305	2305	6 through State-administered incentive funding, and may
2306	2306	7 issue requests for information to gauge market demand.
2307	2307	8 Electric utilities shall provide a monetary credit to
2308	2308	9 a subscriber's subsequent bill for service for the
2309	2309	10 proportional output of a community renewable generation
2310	2310	11 project attributable to that subscriber as specified in
2311	2311	12 Section 16-107.5 of the Public Utilities Act.
2312	2312	13 The Agency shall purchase renewable energy credits
2313	2313	14 from subscribed shares of photovoltaic community renewable
2314	2314	15 generation projects through the Adjustable Block program
2315	2315	16 described in subparagraph (K) of this paragraph (1) or
2316	2316	17 through the Illinois Solar for All Program described in
2317	2317	18 Section 1-56 of this Act. The electric utility shall
2318	2318	19 purchase any unsubscribed energy from community renewable
2319	2319	20 generation projects that are Qualifying Facilities ("QF")
2320	2320	21 under the electric utility's tariff for purchasing the
2321	2321	22 output from QFs under Public Utilities Regulatory Policies
2322	2322	23 Act of 1978.
2323	2323	24 The owners of and any subscribers to a community
2324	2324	25 renewable generation project shall not be considered
2325	2325	26 public utilities or alternative retail electricity
2326	2326
2327	2327
2328	2328
2329	2329
2330	2330
2331	2331	HB2563 - 64 - LRB103 29504 AMQ 55899 b
2332	2332
2333	2333
2334	2334	HB2563- 65 -LRB103 29504 AMQ 55899 b HB2563 - 65 - LRB103 29504 AMQ 55899 b
2335	2335	HB2563 - 65 - LRB103 29504 AMQ 55899 b
2336	2336	1 suppliers under the Public Utilities Act solely as a
2337	2337	2 result of their interest in or subscription to a community
2338	2338	3 renewable generation project and shall not be required to
2339	2339	4 become an alternative retail electric supplier by
2340	2340	5 participating in a community renewable generation project
2341	2341	6 with a public utility.
2342	2342	7 (O) For the delivery year beginning June 1, 2018, the
2343	2343	8 long-term renewable resources procurement plan required by
2344	2344	9 this subsection (c) shall provide for the Agency to
2345	2345	10 procure contracts to continue offering the Illinois Solar
2346	2346	11 for All Program described in subsection (b) of Section
2347	2347	12 1-56 of this Act, and the contracts approved by the
2348	2348	13 Commission shall be executed by the utilities that are
2349	2349	14 subject to this subsection (c). The long-term renewable
2350	2350	15 resources procurement plan shall allocate up to
2351	2351	16 $50,000,000 per delivery year to fund the programs, and
2352	2352	17 the plan shall determine the amount of funding to be
2353	2353	18 apportioned to the programs identified in subsection (b)
2354	2354	19 of Section 1-56 of this Act; provided that for the
2355	2355	20 delivery years beginning June 1, 2021, June 1, 2022, and
2356	2356	21 June 1, 2023, the long-term renewable resources
2357	2357	22 procurement plan may average the annual budgets over a
2358	2358	23 3-year period to account for program ramp-up. For the
2359	2359	24 delivery years beginning June 1, 2021, June 1, 2024, June
2360	2360	25 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2361	2361	26 be provided to the Department of Commerce and Economic
2362	2362
2363	2363
2364	2364
2365	2365
2366	2366
2367	2367	HB2563 - 65 - LRB103 29504 AMQ 55899 b
2368	2368
2369	2369
2370	2370	HB2563- 66 -LRB103 29504 AMQ 55899 b HB2563 - 66 - LRB103 29504 AMQ 55899 b
2371	2371	HB2563 - 66 - LRB103 29504 AMQ 55899 b
2372	2372	1 Opportunity to implement the workforce development
2373	2373	2 programs and reporting as outlined in Section 16-108.12 of
2374	2374	3 the Public Utilities Act. In making the determinations
2375	2375	4 required under this subparagraph (O), the Commission shall
2376	2376	5 consider the experience and performance under the programs
2377	2377	6 and any evaluation reports. The Commission shall also
2378	2378	7 provide for an independent evaluation of those programs on
2379	2379	8 a periodic basis that are funded under this subparagraph
2380	2380	9 (O).
2381	2381	10 (P) All programs and procurements under this
2382	2382	11 subsection (c) shall be designed to encourage
2383	2383	12 participating projects to use a diverse and equitable
2384	2384	13 workforce and a diverse set of contractors, including
2385	2385	14 minority-owned businesses, disadvantaged businesses,
2386	2386	15 trade unions, graduates of any workforce training programs
2387	2387	16 administered under this Act, and small businesses.
2388	2388	17 The Agency shall develop a method to optimize
2389	2389	18 procurement of renewable energy credits from proposed
2390	2390	19 utility-scale projects that are located in communities
2391	2391	20 eligible to receive Energy Transition Community Grants
2392	2392	21 pursuant to Section 10-20 of the Energy Community
2393	2393	22 Reinvestment Act. If this requirement conflicts with other
2394	2394	23 provisions of law or the Agency determines that full
2395	2395	24 compliance with the requirements of this subparagraph (P)
2396	2396	25 would be unreasonably costly or administratively
2397	2397	26 impractical, the Agency is to propose alternative
2398	2398
2399	2399
2400	2400
2401	2401
2402	2402
2403	2403	HB2563 - 66 - LRB103 29504 AMQ 55899 b
2404	2404
2405	2405
2406	2406	HB2563- 67 -LRB103 29504 AMQ 55899 b HB2563 - 67 - LRB103 29504 AMQ 55899 b
2407	2407	HB2563 - 67 - LRB103 29504 AMQ 55899 b
2408	2408	1 approaches to achieve development of renewable energy
2409	2409	2 resources in communities eligible to receive Energy
2410	2410	3 Transition Community Grants pursuant to Section 10-20 of
2411	2411	4 the Energy Community Reinvestment Act or seek an exemption
2412	2412	5 from this requirement from the Commission.
2413	2413	6 Any contractor involved in programs and procurements
2414	2414	7 under this subsection (c) for the construction of
2415	2415	8 State-funded solar and utility-scale wind projects must
2416	2416	9 have 50% or more of the contractor's employees be
2417	2417	10 residents of the State. The contractor must also
2418	2418	11 participate in a registered apprenticeship program, as
2419	2419	12 defined in Section 2-3.175 of the School Code, approved by
2420	2420	13 the federal Department of Labor.
2421	2421	14 (Q) Each facility listed in subitems (i) through
2422	2422	15 (viii) of item (1) of this subparagraph (Q) for which a
2423	2423	16 renewable energy credit delivery contract is signed after
2424	2424	17 the effective date of this amendatory Act of the 102nd
2425	2425	18 General Assembly is subject to the following requirements
2426	2426	19 through the Agency's long-term renewable resources
2427	2427	20 procurement plan:
2428	2428	21 (1) Each facility shall be subject to the
2429	2429	22 prevailing wage requirements included in the
2430	2430	23 Prevailing Wage Act. The Agency shall require
2431	2431	24 verification that all construction performed on the
2432	2432	25 facility by the renewable energy credit delivery
2433	2433	26 contract holder, its contractors, or its
2434	2434
2435	2435
2436	2436
2437	2437
2438	2438
2439	2439	HB2563 - 67 - LRB103 29504 AMQ 55899 b
2440	2440
2441	2441
2442	2442	HB2563- 68 -LRB103 29504 AMQ 55899 b HB2563 - 68 - LRB103 29504 AMQ 55899 b
2443	2443	HB2563 - 68 - LRB103 29504 AMQ 55899 b
2444	2444	1 subcontractors relating to construction of the
2445	2445	2 facility is performed by construction employees
2446	2446	3 receiving an amount for that work equal to or greater
2447	2447	4 than the general prevailing rate, as that term is
2448	2448	5 defined in Section 3 of the Prevailing Wage Act. For
2449	2449	6 purposes of this item (1), "house of worship" means
2450	2450	7 property that is both (1) used exclusively by a
2451	2451	8 religious society or body of persons as a place for
2452	2452	9 religious exercise or religious worship and (2)
2453	2453	10 recognized as exempt from taxation pursuant to Section
2454	2454	11 15-40 of the Property Tax Code. This item (1) shall
2455	2455	12 apply to any the following:
2456	2456	13 (i) all new utility-scale wind projects;
2457	2457	14 (ii) all new utility-scale photovoltaic
2458	2458	15 projects;
2459	2459	16 (iii) all new brownfield photovoltaic
2460	2460	17 projects;
2461	2461	18 (iv) all new photovoltaic community renewable
2462	2462	19 energy facilities that qualify for item (iii) of
2463	2463	20 subparagraph (K) of this paragraph (1);
2464	2464	21 (v) all new community driven community
2465	2465	22 photovoltaic projects that qualify for item (v) of
2466	2466	23 subparagraph (K) of this paragraph (1);
2467	2467	24 (vi) all new photovoltaic distributed
2468	2468	25 renewable energy generation devices on schools
2469	2469	26 that qualify for item (iv) of subparagraph (K) of
2470	2470
2471	2471
2472	2472
2473	2473
2474	2474
2475	2475	HB2563 - 68 - LRB103 29504 AMQ 55899 b
2476	2476
2477	2477
2478	2478	HB2563- 69 -LRB103 29504 AMQ 55899 b HB2563 - 69 - LRB103 29504 AMQ 55899 b
2479	2479	HB2563 - 69 - LRB103 29504 AMQ 55899 b
2480	2480	1 this paragraph (1);
2481	2481	2 (vii) all new photovoltaic distributed
2482	2482	3 renewable energy generation devices that (1)
2483	2483	4 qualify for item (i) of subparagraph (K) of this
2484	2484	5 paragraph (1); (2) are not projects that serve
2485	2485	6 single-family or multi-family residential
2486	2486	7 buildings; and (3) are not houses of worship where
2487	2487	8 the aggregate capacity including collocated
2488	2488	9 projects would not exceed 100 kilowatts;
2489	2489	10 (viii) all new photovoltaic distributed
2490	2490	11 renewable energy generation devices that (1)
2491	2491	12 qualify for item (ii) of subparagraph (K) of this
2492	2492	13 paragraph (1); (2) are not projects that serve
2493	2493	14 single-family or multi-family residential
2494	2494	15 buildings; and (3) are not houses of worship where
2495	2495	16 the aggregate capacity including collocated
2496	2496	17 projects would not exceed 100 kilowatts.
2497	2497	18 (2) Renewable energy credits procured from new
2498	2498	19 utility-scale wind projects, new utility-scale solar
2499	2499	20 projects, and new brownfield solar projects pursuant
2500	2500	21 to Agency procurement events occurring after the
2501	2501	22 effective date of this amendatory Act of the 102nd
2502	2502	23 General Assembly must be from facilities built by
2503	2503	24 general contractors that must enter into a project
2504	2504	25 labor agreement, as defined by this Act, prior to
2505	2505	26 construction. The project labor agreement shall be
2506	2506
2507	2507
2508	2508
2509	2509
2510	2510
2511	2511	HB2563 - 69 - LRB103 29504 AMQ 55899 b
2512	2512
2513	2513
2514	2514	HB2563- 70 -LRB103 29504 AMQ 55899 b HB2563 - 70 - LRB103 29504 AMQ 55899 b
2515	2515	HB2563 - 70 - LRB103 29504 AMQ 55899 b
2516	2516	1 filed with the Director in accordance with procedures
2517	2517	2 established by the Agency through its long-term
2518	2518	3 renewable resources procurement plan. Any information
2519	2519	4 submitted to the Agency in this item (2) shall be
2520	2520	5 considered commercially sensitive information. At a
2521	2521	6 minimum, the project labor agreement must provide the
2522	2522	7 names, addresses, and occupations of the owner of the
2523	2523	8 plant and the individuals representing the labor
2524	2524	9 organization employees participating in the project
2525	2525	10 labor agreement consistent with the Project Labor
2526	2526	11 Agreements Act. The agreement must also specify the
2527	2527	12 terms and conditions as defined by this Act.
2528	2528	13 (3) It is the intent of this Section to ensure that
2529	2529	14 economic development occurs across Illinois
2530	2530	15 communities, that emerging businesses may grow, and
2531	2531	16 that there is improved access to the clean energy
2532	2532	17 economy by persons who have greater economic burdens
2533	2533	18 to success. The Agency shall take into consideration
2534	2534	19 the unique cost of compliance of this subparagraph (Q)
2535	2535	20 that might be borne by equity eligible contractors,
2536	2536	21 shall include such costs when determining the price of
2537	2537	22 renewable energy credits in the Adjustable Block
2538	2538	23 program, and shall take such costs into consideration
2539	2539	24 in a nondiscriminatory manner when comparing bids for
2540	2540	25 competitive procurements. The Agency shall consider
2541	2541	26 costs associated with compliance whether in the
2542	2542
2543	2543
2544	2544
2545	2545
2546	2546
2547	2547	HB2563 - 70 - LRB103 29504 AMQ 55899 b
2548	2548
2549	2549
2550	2550	HB2563- 71 -LRB103 29504 AMQ 55899 b HB2563 - 71 - LRB103 29504 AMQ 55899 b
2551	2551	HB2563 - 71 - LRB103 29504 AMQ 55899 b
2552	2552	1 development, financing, or construction of projects.
2553	2553	2 The Agency shall periodically review the assumptions
2554	2554	3 in these costs and may adjust prices, in compliance
2555	2555	4 with subparagraph (M) of this paragraph (1).
2556	2556	5 (R) In its long-term renewable resources procurement
2557	2557	6 plan, the Agency shall establish a self-direct renewable
2558	2558	7 portfolio standard compliance program for eligible
2559	2559	8 self-direct customers that purchase renewable energy
2560	2560	9 credits from utility-scale wind and solar projects through
2561	2561	10 long-term agreements for purchase of renewable energy
2562	2562	11 credits as described in this Section. Such long-term
2563	2563	12 agreements may include the purchase of energy or other
2564	2564	13 products on a physical or financial basis and may involve
2565	2565	14 an alternative retail electric supplier as defined in
2566	2566	15 Section 16-102 of the Public Utilities Act. This program
2567	2567	16 shall take effect in the delivery year commencing June 1,
2568	2568	17 2023.
2569	2569	18 (1) For the purposes of this subparagraph:
2570	2570	19 "Eligible self-direct customer" means any retail
2571	2571	20 customers of an electric utility that serves 3,000,000
2572	2572	21 or more retail customers in the State and whose total
2573	2573	22 highest 30-minute demand was more than 10,000
2574	2574	23 kilowatts, or any retail customers of an electric
2575	2575	24 utility that serves less than 3,000,000 retail
2576	2576	25 customers but more than 500,000 retail customers in
2577	2577	26 the State and whose total highest 15-minute demand was
2578	2578
2579	2579
2580	2580
2581	2581
2582	2582
2583	2583	HB2563 - 71 - LRB103 29504 AMQ 55899 b
2584	2584
2585	2585
2586	2586	HB2563- 72 -LRB103 29504 AMQ 55899 b HB2563 - 72 - LRB103 29504 AMQ 55899 b
2587	2587	HB2563 - 72 - LRB103 29504 AMQ 55899 b
2588	2588	1 more than 10,000 kilowatts.
2589	2589	2 "Retail customer" has the meaning set forth in
2590	2590	3 Section 16-102 of the Public Utilities Act and
2591	2591	4 multiple retail customer accounts under the same
2592	2592	5 corporate parent may aggregate their account demands
2593	2593	6 to meet the 10,000 kilowatt threshold. The criteria
2594	2594	7 for determining whether this subparagraph is
2595	2595	8 applicable to a retail customer shall be based on the
2596	2596	9 12 consecutive billing periods prior to the start of
2597	2597	10 the year in which the application is filed.
2598	2598	11 (2) For renewable energy credits to count toward
2599	2599	12 the self-direct renewable portfolio standard
2600	2600	13 compliance program, they must:
2601	2601	14 (i) qualify as renewable energy credits as
2602	2602	15 defined in Section 1-10 of this Act;
2603	2603	16 (ii) be sourced from one or more renewable
2604	2604	17 energy generating facilities that comply with the
2605	2605	18 geographic requirements as set forth in
2606	2606	19 subparagraph (I) of paragraph (1) of subsection
2607	2607	20 (c) as interpreted through the Agency's long-term
2608	2608	21 renewable resources procurement plan, or, where
2609	2609	22 applicable, the geographic requirements that
2610	2610	23 governed utility-scale renewable energy credits at
2611	2611	24 the time the eligible self-direct customer entered
2612	2612	25 into the applicable renewable energy credit
2613	2613	26 purchase agreement;
2614	2614
2615	2615
2616	2616
2617	2617
2618	2618
2619	2619	HB2563 - 72 - LRB103 29504 AMQ 55899 b
2620	2620
2621	2621
2622	2622	HB2563- 73 -LRB103 29504 AMQ 55899 b HB2563 - 73 - LRB103 29504 AMQ 55899 b
2623	2623	HB2563 - 73 - LRB103 29504 AMQ 55899 b
2624	2624	1 (iii) be procured through long-term contracts
2625	2625	2 with term lengths of at least 10 years either
2626	2626	3 directly with the renewable energy generating
2627	2627	4 facility or through a bundled power purchase
2628	2628	5 agreement, a virtual power purchase agreement, an
2629	2629	6 agreement between the renewable generating
2630	2630	7 facility, an alternative retail electric supplier,
2631	2631	8 and the customer, or such other structure as is
2632	2632	9 permissible under this subparagraph (R);
2633	2633	10 (iv) be equivalent in volume to at least 40%
2634	2634	11 of the eligible self-direct customer's usage,
2635	2635	12 determined annually by the eligible self-direct
2636	2636	13 customer's usage during the previous delivery
2637	2637	14 year, measured to the nearest megawatt-hour;
2638	2638	15 (v) be retired by or on behalf of the large
2639	2639	16 energy customer;
2640	2640	17 (vi) be sourced from new utility-scale wind
2641	2641	18 projects or new utility-scale solar projects; and
2642	2642	19 (vii) if the contracts for renewable energy
2643	2643	20 credits are entered into after the effective date
2644	2644	21 of this amendatory Act of the 102nd General
2645	2645	22 Assembly, the new utility-scale wind projects or
2646	2646	23 new utility-scale solar projects must comply with
2647	2647	24 the requirements established in subparagraphs (P)
2648	2648	25 and (Q) of paragraph (1) of this subsection (c)
2649	2649	26 and subsection (c-10).
2650	2650
2651	2651
2652	2652
2653	2653
2654	2654
2655	2655	HB2563 - 73 - LRB103 29504 AMQ 55899 b
2656	2656
2657	2657
2658	2658	HB2563- 74 -LRB103 29504 AMQ 55899 b HB2563 - 74 - LRB103 29504 AMQ 55899 b
2659	2659	HB2563 - 74 - LRB103 29504 AMQ 55899 b
2660	2660	1 (3) The self-direct renewable portfolio standard
2661	2661	2 compliance program shall be designed to allow eligible
2662	2662	3 self-direct customers to procure new renewable energy
2663	2663	4 credits from new utility-scale wind projects or new
2664	2664	5 utility-scale photovoltaic projects. The Agency shall
2665	2665	6 annually determine the amount of utility-scale
2666	2666	7 renewable energy credits it will include each year
2667	2667	8 from the self-direct renewable portfolio standard
2668	2668	9 compliance program, subject to receiving qualifying
2669	2669	10 applications. In making this determination, the Agency
2670	2670	11 shall evaluate publicly available analyses and studies
2671	2671	12 of the potential market size for utility-scale
2672	2672	13 renewable energy long-term purchase agreements by
2673	2673	14 commercial and industrial energy customers and make
2674	2674	15 that report publicly available. If demand for
2675	2675	16 participation in the self-direct renewable portfolio
2676	2676	17 standard compliance program exceeds availability, the
2677	2677	18 Agency shall ensure participation is evenly split
2678	2678	19 between commercial and industrial users to the extent
2679	2679	20 there is sufficient demand from both customer classes.
2680	2680	21 Each renewable energy credit procured pursuant to this
2681	2681	22 subparagraph (R) by a self-direct customer shall
2682	2682	23 reduce the total volume of renewable energy credits
2683	2683	24 the Agency is otherwise required to procure from new
2684	2684	25 utility-scale projects pursuant to subparagraph (C) of
2685	2685	26 paragraph (1) of this subsection (c) on behalf of
2686	2686
2687	2687
2688	2688
2689	2689
2690	2690
2691	2691	HB2563 - 74 - LRB103 29504 AMQ 55899 b
2692	2692
2693	2693
2694	2694	HB2563- 75 -LRB103 29504 AMQ 55899 b HB2563 - 75 - LRB103 29504 AMQ 55899 b
2695	2695	HB2563 - 75 - LRB103 29504 AMQ 55899 b
2696	2696	1 contracting utilities where the eligible self-direct
2697	2697	2 customer is located. The self-direct customer shall
2698	2698	3 file an annual compliance report with the Agency
2699	2699	4 pursuant to terms established by the Agency through
2700	2700	5 its long-term renewable resources procurement plan to
2701	2701	6 be eligible for participation in this program.
2702	2702	7 Customers must provide the Agency with their most
2703	2703	8 recent electricity billing statements or other
2704	2704	9 information deemed necessary by the Agency to
2705	2705	10 demonstrate they are an eligible self-direct customer.
2706	2706	11 (4) The Commission shall approve a reduction in
2707	2707	12 the volumetric charges collected pursuant to Section
2708	2708	13 16-108 of the Public Utilities Act for approved
2709	2709	14 eligible self-direct customers equivalent to the
2710	2710	15 anticipated cost of renewable energy credit deliveries
2711	2711	16 under contracts for new utility-scale wind and new
2712	2712	17 utility-scale solar entered for each delivery year
2713	2713	18 after the large energy customer begins retiring
2714	2714	19 eligible new utility scale renewable energy credits
2715	2715	20 for self-compliance. The self-direct credit amount
2716	2716	21 shall be determined annually and is equal to the
2717	2717	22 estimated portion of the cost authorized by
2718	2718	23 subparagraph (E) of paragraph (1) of this subsection
2719	2719	24 (c) that supported the annual procurement of
2720	2720	25 utility-scale renewable energy credits in the prior
2721	2721	26 delivery year using a methodology described in the
2722	2722
2723	2723
2724	2724
2725	2725
2726	2726
2727	2727	HB2563 - 75 - LRB103 29504 AMQ 55899 b
2728	2728
2729	2729
2730	2730	HB2563- 76 -LRB103 29504 AMQ 55899 b HB2563 - 76 - LRB103 29504 AMQ 55899 b
2731	2731	HB2563 - 76 - LRB103 29504 AMQ 55899 b
2732	2732	1 long-term renewable resources procurement plan,
2733	2733	2 expressed on a per kilowatthour basis, and does not
2734	2734	3 include (i) costs associated with any contracts
2735	2735	4 entered into before the delivery year in which the
2736	2736	5 customer files the initial compliance report to be
2737	2737	6 eligible for participation in the self-direct program,
2738	2738	7 and (ii) costs associated with procuring renewable
2739	2739	8 energy credits through existing and future contracts
2740	2740	9 through the Adjustable Block Program, subsection (c-5)
2741	2741	10 of this Section 1-75, and the Solar for All Program.
2742	2742	11 The Agency shall assist the Commission in determining
2743	2743	12 the current and future costs. The Agency must
2744	2744	13 determine the self-direct credit amount for new and
2745	2745	14 existing eligible self-direct customers and submit
2746	2746	15 this to the Commission in an annual compliance filing.
2747	2747	16 The Commission must approve the self-direct credit
2748	2748	17 amount by June 1, 2023 and June 1 of each delivery year
2749	2749	18 thereafter.
2750	2750	19 (5) Customers described in this subparagraph (R)
2751	2751	20 shall apply, on a form developed by the Agency, to the
2752	2752	21 Agency to be designated as a self-direct eligible
2753	2753	22 customer. Once the Agency determines that a
2754	2754	23 self-direct customer is eligible for participation in
2755	2755	24 the program, the self-direct customer will remain
2756	2756	25 eligible until the end of the term of the contract.
2757	2757	26 Thereafter, application may be made not less than 12
2758	2758
2759	2759
2760	2760
2761	2761
2762	2762
2763	2763	HB2563 - 76 - LRB103 29504 AMQ 55899 b
2764	2764
2765	2765
2766	2766	HB2563- 77 -LRB103 29504 AMQ 55899 b HB2563 - 77 - LRB103 29504 AMQ 55899 b
2767	2767	HB2563 - 77 - LRB103 29504 AMQ 55899 b
2768	2768	1 months before the filing date of the long-term
2769	2769	2 renewable resources procurement plan described in this
2770	2770	3 Act. At a minimum, such application shall contain the
2771	2771	4 following:
2772	2772	5 (i) the customer's certification that, at the
2773	2773	6 time of the customer's application, the customer
2774	2774	7 qualifies to be a self-direct eligible customer,
2775	2775	8 including documents demonstrating that
2776	2776	9 qualification;
2777	2777	10 (ii) the customer's certification that the
2778	2778	11 customer has entered into or will enter into by
2779	2779	12 the beginning of the applicable procurement year,
2780	2780	13 one or more bilateral contracts for new wind
2781	2781	14 projects or new photovoltaic projects, including
2782	2782	15 supporting documentation;
2783	2783	16 (iii) certification that the contract or
2784	2784	17 contracts for new renewable energy resources are
2785	2785	18 long-term contracts with term lengths of at least
2786	2786	19 10 years, including supporting documentation;
2787	2787	20 (iv) certification of the quantities of
2788	2788	21 renewable energy credits that the customer will
2789	2789	22 purchase each year under such contract or
2790	2790	23 contracts, including supporting documentation;
2791	2791	24 (v) proof that the contract is sufficient to
2792	2792	25 produce renewable energy credits to be equivalent
2793	2793	26 in volume to at least 40% of the large energy
2794	2794
2795	2795
2796	2796
2797	2797
2798	2798
2799	2799	HB2563 - 77 - LRB103 29504 AMQ 55899 b
2800	2800
2801	2801
2802	2802	HB2563- 78 -LRB103 29504 AMQ 55899 b HB2563 - 78 - LRB103 29504 AMQ 55899 b
2803	2803	HB2563 - 78 - LRB103 29504 AMQ 55899 b
2804	2804	1 customer's usage from the previous delivery year,
2805	2805	2 measured to the nearest megawatt-hour; and
2806	2806	3 (vi) certification that the customer intends
2807	2807	4 to maintain the contract for the duration of the
2808	2808	5 length of the contract.
2809	2809	6 (6) If a customer receives the self-direct credit
2810	2810	7 but fails to properly procure and retire renewable
2811	2811	8 energy credits as required under this subparagraph
2812	2812	9 (R), the Commission, on petition from the Agency and
2813	2813	10 after notice and hearing, may direct such customer's
2814	2814	11 utility to recover the cost of the wrongfully received
2815	2815	12 self-direct credits plus interest through an adder to
2816	2816	13 charges assessed pursuant to Section 16-108 of the
2817	2817	14 Public Utilities Act. Self-direct customers who
2818	2818	15 knowingly fail to properly procure and retire
2819	2819	16 renewable energy credits and do not notify the Agency
2820	2820	17 are ineligible for continued participation in the
2821	2821	18 self-direct renewable portfolio standard compliance
2822	2822	19 program.
2823	2823	20 (2) (Blank).
2824	2824	21 (3) (Blank).
2825	2825	22 (4) The electric utility shall retire all renewable
2826	2826	23 energy credits used to comply with the standard.
2827	2827	24 (5) Beginning with the 2010 delivery year and ending
2828	2828	25 June 1, 2017, an electric utility subject to this
2829	2829	26 subsection (c) shall apply the lesser of the maximum
2830	2830
2831	2831
2832	2832
2833	2833
2834	2834
2835	2835	HB2563 - 78 - LRB103 29504 AMQ 55899 b
2836	2836
2837	2837
2838	2838	HB2563- 79 -LRB103 29504 AMQ 55899 b HB2563 - 79 - LRB103 29504 AMQ 55899 b
2839	2839	HB2563 - 79 - LRB103 29504 AMQ 55899 b
2840	2840	1 alternative compliance payment rate or the most recent
2841	2841	2 estimated alternative compliance payment rate for its
2842	2842	3 service territory for the corresponding compliance period,
2843	2843	4 established pursuant to subsection (d) of Section 16-115D
2844	2844	5 of the Public Utilities Act to its retail customers that
2845	2845	6 take service pursuant to the electric utility's hourly
2846	2846	7 pricing tariff or tariffs. The electric utility shall
2847	2847	8 retain all amounts collected as a result of the
2848	2848	9 application of the alternative compliance payment rate or
2849	2849	10 rates to such customers, and, beginning in 2011, the
2850	2850	11 utility shall include in the information provided under
2851	2851	12 item (1) of subsection (d) of Section 16-111.5 of the
2852	2852	13 Public Utilities Act the amounts collected under the
2853	2853	14 alternative compliance payment rate or rates for the prior
2854	2854	15 year ending May 31. Notwithstanding any limitation on the
2855	2855	16 procurement of renewable energy resources imposed by item
2856	2856	17 (2) of this subsection (c), the Agency shall increase its
2857	2857	18 spending on the purchase of renewable energy resources to
2858	2858	19 be procured by the electric utility for the next plan year
2859	2859	20 by an amount equal to the amounts collected by the utility
2860	2860	21 under the alternative compliance payment rate or rates in
2861	2861	22 the prior year ending May 31.
2862	2862	23 (6) The electric utility shall be entitled to recover
2863	2863	24 all of its costs associated with the procurement of
2864	2864	25 renewable energy credits under plans approved under this
2865	2865	26 Section and Section 16-111.5 of the Public Utilities Act.
2866	2866
2867	2867
2868	2868
2869	2869
2870	2870
2871	2871	HB2563 - 79 - LRB103 29504 AMQ 55899 b
2872	2872
2873	2873
2874	2874	HB2563- 80 -LRB103 29504 AMQ 55899 b HB2563 - 80 - LRB103 29504 AMQ 55899 b
2875	2875	HB2563 - 80 - LRB103 29504 AMQ 55899 b
2876	2876	1 These costs shall include associated reasonable expenses
2877	2877	2 for implementing the procurement programs, including, but
2878	2878	3 not limited to, the costs of administering and evaluating
2879	2879	4 the Adjustable Block program, through an automatic
2880	2880	5 adjustment clause tariff in accordance with subsection (k)
2881	2881	6 of Section 16-108 of the Public Utilities Act.
2882	2882	7 (7) Renewable energy credits procured from new
2883	2883	8 photovoltaic projects or new distributed renewable energy
2884	2884	9 generation devices under this Section after June 1, 2017
2885	2885	10 (the effective date of Public Act 99-906) must be procured
2886	2886	11 from devices installed by a qualified person in compliance
2887	2887	12 with the requirements of Section 16-128A of the Public
2888	2888	13 Utilities Act and any rules or regulations adopted
2889	2889	14 thereunder.
2890	2890	15 In meeting the renewable energy requirements of this
2891	2891	16 subsection (c), to the extent feasible and consistent with
2892	2892	17 State and federal law, the renewable energy credit
2893	2893	18 procurements, Adjustable Block solar program, and
2894	2894	19 community renewable generation program shall provide
2895	2895	20 employment opportunities for all segments of the
2896	2896	21 population and workforce, including minority-owned and
2897	2897	22 female-owned business enterprises, and shall not,
2898	2898	23 consistent with State and federal law, discriminate based
2899	2899	24 on race or socioeconomic status.
2900	2900	25 (c-5) Procurement of renewable energy credits from new
2901	2901	26 renewable energy facilities installed at or adjacent to the
2902	2902
2903	2903
2904	2904
2905	2905
2906	2906
2907	2907	HB2563 - 80 - LRB103 29504 AMQ 55899 b
2908	2908
2909	2909
2910	2910	HB2563- 81 -LRB103 29504 AMQ 55899 b HB2563 - 81 - LRB103 29504 AMQ 55899 b
2911	2911	HB2563 - 81 - LRB103 29504 AMQ 55899 b
2912	2912	1 sites of electric generating facilities that burn or burned
2913	2913	2 coal as their primary fuel source.
2914	2914	3 (1) In addition to the procurement of renewable energy
2915	2915	4 credits pursuant to long-term renewable resources
2916	2916	5 procurement plans in accordance with subsection (c) of
2917	2917	6 this Section and Section 16-111.5 of the Public Utilities
2918	2918	7 Act, the Agency shall conduct procurement events in
2919	2919	8 accordance with this subsection (c-5) for the procurement
2920	2920	9 by electric utilities that served more than 300,000 retail
2921	2921	10 customers in this State as of January 1, 2019 of renewable
2922	2922	11 energy credits from new renewable energy facilities to be
2923	2923	12 installed at or adjacent to the sites of electric
2924	2924	13 generating facilities that, as of January 1, 2016, burned
2925	2925	14 coal as their primary fuel source and meet the other
2926	2926	15 criteria specified in this subsection (c-5). For purposes
2927	2927	16 of this subsection (c-5), "new renewable energy facility"
2928	2928	17 means a new utility-scale solar project as defined in this
2929	2929	18 Section 1-75. The renewable energy credits procured
2930	2930	19 pursuant to this subsection (c-5) may be included or
2931	2931	20 counted for purposes of compliance with the amounts of
2932	2932	21 renewable energy credits required to be procured pursuant
2933	2933	22 to subsection (c) of this Section to the extent that there
2934	2934	23 are otherwise shortfalls in compliance with such
2935	2935	24 requirements. The procurement of renewable energy credits
2936	2936	25 by electric utilities pursuant to this subsection (c-5)
2937	2937	26 shall be funded solely by revenues collected from the Coal
2938	2938
2939	2939
2940	2940
2941	2941
2942	2942
2943	2943	HB2563 - 81 - LRB103 29504 AMQ 55899 b
2944	2944
2945	2945
2946	2946	HB2563- 82 -LRB103 29504 AMQ 55899 b HB2563 - 82 - LRB103 29504 AMQ 55899 b
2947	2947	HB2563 - 82 - LRB103 29504 AMQ 55899 b
2948	2948	1 to Solar and Energy Storage Initiative Charge provided for
2949	2949	2 in this subsection (c-5) and subsection (i-5) of Section
2950	2950	3 16-108 of the Public Utilities Act, shall not be funded by
2951	2951	4 revenues collected through any of the other funding
2952	2952	5 mechanisms provided for in subsection (c) of this Section,
2953	2953	6 and shall not be subject to the limitation imposed by
2954	2954	7 subsection (c) on charges to retail customers for costs to
2955	2955	8 procure renewable energy resources pursuant to subsection
2956	2956	9 (c), and shall not be subject to any other requirements or
2957	2957	10 limitations of subsection (c).
2958	2958	11 (2) The Agency shall conduct 2 procurement events to
2959	2959	12 select owners of electric generating facilities meeting
2960	2960	13 the eligibility criteria specified in this subsection
2961	2961	14 (c-5) to enter into long-term contracts to sell renewable
2962	2962	15 energy credits to electric utilities serving more than
2963	2963	16 300,000 retail customers in this State as of January 1,
2964	2964	17 2019. The first procurement event shall be conducted no
2965	2965	18 later than March 31, 2022, unless the Agency elects to
2966	2966	19 delay it, until no later than May 1, 2022, due to its
2967	2967	20 overall volume of work, and shall be to select owners of
2968	2968	21 electric generating facilities located in this State and
2969	2969	22 south of federal Interstate Highway 80 that meet the
2970	2970	23 eligibility criteria specified in this subsection (c-5).
2971	2971	24 The second procurement event shall be conducted no sooner
2972	2972	25 than September 30, 2022 and no later than October 31, 2022
2973	2973	26 and shall be to select owners of electric generating
2974	2974
2975	2975
2976	2976
2977	2977
2978	2978
2979	2979	HB2563 - 82 - LRB103 29504 AMQ 55899 b
2980	2980
2981	2981
2982	2982	HB2563- 83 -LRB103 29504 AMQ 55899 b HB2563 - 83 - LRB103 29504 AMQ 55899 b
2983	2983	HB2563 - 83 - LRB103 29504 AMQ 55899 b
2984	2984	1 facilities located anywhere in this State that meet the
2985	2985	2 eligibility criteria specified in this subsection (c-5).
2986	2986	3 The Agency shall establish and announce a time period,
2987	2987	4 which shall begin no later than 30 days prior to the
2988	2988	5 scheduled date for the procurement event, during which
2989	2989	6 applicants may submit applications to be selected as
2990	2990	7 suppliers of renewable energy credits pursuant to this
2991	2991	8 subsection (c-5). The eligibility criteria for selection
2992	2992	9 as a supplier of renewable energy credits pursuant to this
2993	2993	10 subsection (c-5) shall be as follows:
2994	2994	11 (A) The applicant owns an electric generating
2995	2995	12 facility located in this State that: (i) as of January
2996	2996	13 1, 2016, burned coal as its primary fuel to generate
2997	2997	14 electricity; and (ii) has, or had prior to retirement,
2998	2998	15 an electric generating capacity of at least 150
2999	2999	16 megawatts. The electric generating facility can be
3000	3000	17 either: (i) retired as of the date of the procurement
3001	3001	18 event; or (ii) still operating as of the date of the
3002	3002	19 procurement event.
3003	3003	20 (B) The applicant is not (i) an electric
3004	3004	21 cooperative as defined in Section 3-119 of the Public
3005	3005	22 Utilities Act, or (ii) an entity described in
3006	3006	23 subsection (b)(1) of Section 3-105 of the Public
3007	3007	24 Utilities Act, or an association or consortium of or
3008	3008	25 an entity owned by entities described in (i) or (ii);
3009	3009	26 and the coal-fueled electric generating facility was
3010	3010
3011	3011
3012	3012
3013	3013
3014	3014
3015	3015	HB2563 - 83 - LRB103 29504 AMQ 55899 b
3016	3016
3017	3017
3018	3018	HB2563- 84 -LRB103 29504 AMQ 55899 b HB2563 - 84 - LRB103 29504 AMQ 55899 b
3019	3019	HB2563 - 84 - LRB103 29504 AMQ 55899 b
3020	3020	1 at one time owned, in whole or in part, by a public
3021	3021	2 utility as defined in Section 3-105 of the Public
3022	3022	3 Utilities Act.
3023	3023	4 (C) If participating in the first procurement
3024	3024	5 event, the applicant proposes and commits to construct
3025	3025	6 and operate, at the site, and if necessary for
3026	3026	7 sufficient space on property adjacent to the existing
3027	3027	8 property, at which the electric generating facility
3028	3028	9 identified in paragraph (A) is located: (i) a new
3029	3029	10 renewable energy facility of at least 20 megawatts but
3030	3030	11 no more than 100 megawatts of electric generating
3031	3031	12 capacity, and (ii) an energy storage facility having a
3032	3032	13 storage capacity equal to at least 2 megawatts and at
3033	3033	14 most 10 megawatts. If participating in the second
3034	3034	15 procurement event, the applicant proposes and commits
3035	3035	16 to construct and operate, at the site, and if
3036	3036	17 necessary for sufficient space on property adjacent to
3037	3037	18 the existing property, at which the electric
3038	3038	19 generating facility identified in paragraph (A) is
3039	3039	20 located: (i) a new renewable energy facility of at
3040	3040	21 least 5 megawatts but no more than 20 megawatts of
3041	3041	22 electric generating capacity, and (ii) an energy
3042	3042	23 storage facility having a storage capacity equal to at
3043	3043	24 least 0.5 megawatts and at most one megawatt.
3044	3044	25 (D) The applicant agrees that the new renewable
3045	3045	26 energy facility and the energy storage facility will
3046	3046
3047	3047
3048	3048
3049	3049
3050	3050
3051	3051	HB2563 - 84 - LRB103 29504 AMQ 55899 b
3052	3052
3053	3053
3054	3054	HB2563- 85 -LRB103 29504 AMQ 55899 b HB2563 - 85 - LRB103 29504 AMQ 55899 b
3055	3055	HB2563 - 85 - LRB103 29504 AMQ 55899 b
3056	3056	1 be constructed or installed by a qualified entity or
3057	3057	2 entities in compliance with the requirements of
3058	3058	3 subsection (g) of Section 16-128A of the Public
3059	3059	4 Utilities Act and any rules adopted thereunder.
3060	3060	5 (E) The applicant agrees that personnel operating
3061	3061	6 the new renewable energy facility and the energy
3062	3062	7 storage facility will have the requisite skills,
3063	3063	8 knowledge, training, experience, and competence, which
3064	3064	9 may be demonstrated by completion or current
3065	3065	10 participation and ultimate completion by employees of
3066	3066	11 an accredited or otherwise recognized apprenticeship
3067	3067	12 program for the employee's particular craft, trade, or
3068	3068	13 skill, including through training and education
3069	3069	14 courses and opportunities offered by the owner to
3070	3070	15 employees of the coal-fueled electric generating
3071	3071	16 facility or by previous employment experience
3072	3072	17 performing the employee's particular work skill or
3073	3073	18 function.
3074	3074	19 (F) The applicant commits that not less than the
3075	3075	20 prevailing wage, as determined pursuant to the
3076	3076	21 Prevailing Wage Act, will be paid to the applicant's
3077	3077	22 employees engaged in construction activities
3078	3078	23 associated with the new renewable energy facility and
3079	3079	24 the new energy storage facility and to the employees
3080	3080	25 of applicant's contractors engaged in construction
3081	3081	26 activities associated with the new renewable energy
3082	3082
3083	3083
3084	3084
3085	3085
3086	3086
3087	3087	HB2563 - 85 - LRB103 29504 AMQ 55899 b
3088	3088
3089	3089
3090	3090	HB2563- 86 -LRB103 29504 AMQ 55899 b HB2563 - 86 - LRB103 29504 AMQ 55899 b
3091	3091	HB2563 - 86 - LRB103 29504 AMQ 55899 b
3092	3092	1 facility and the new energy storage facility, and
3093	3093	2 that, on or before the commercial operation date of
3094	3094	3 the new renewable energy facility, the applicant shall
3095	3095	4 file a report with the Agency certifying that the
3096	3096	5 requirements of this subparagraph (F) have been met.
3097	3097	6 (G) The applicant commits that if selected, it
3098	3098	7 will negotiate a project labor agreement for the
3099	3099	8 construction of the new renewable energy facility and
3100	3100	9 associated energy storage facility that includes
3101	3101	10 provisions requiring the parties to the agreement to
3102	3102	11 work together to establish diversity threshold
3103	3103	12 requirements and to ensure best efforts to meet
3104	3104	13 diversity targets, improve diversity at the applicable
3105	3105	14 job site, create diverse apprenticeship opportunities,
3106	3106	15 and create opportunities to employ former coal-fired
3107	3107	16 power plant workers.
3108	3108	17 (H) The applicant commits to enter into a contract
3109	3109	18 or contracts for the applicable duration to provide
3110	3110	19 specified numbers of renewable energy credits each
3111	3111	20 year from the new renewable energy facility to
3112	3112	21 electric utilities that served more than 300,000
3113	3113	22 retail customers in this State as of January 1, 2019,
3114	3114	23 at a price of $30 per renewable energy credit. The
3115	3115	24 price per renewable energy credit shall be fixed at
3116	3116	25 $30 for the applicable duration and the renewable
3117	3117	26 energy credits shall not be indexed renewable energy
3118	3118
3119	3119
3120	3120
3121	3121
3122	3122
3123	3123	HB2563 - 86 - LRB103 29504 AMQ 55899 b
3124	3124
3125	3125
3126	3126	HB2563- 87 -LRB103 29504 AMQ 55899 b HB2563 - 87 - LRB103 29504 AMQ 55899 b
3127	3127	HB2563 - 87 - LRB103 29504 AMQ 55899 b
3128	3128	1 credits as provided for in item (v) of subparagraph
3129	3129	2 (G) of paragraph (1) of subsection (c) of Section 1-75
3130	3130	3 of this Act. The applicable duration of each contract
3131	3131	4 shall be 20 years, unless the applicant is physically
3132	3132	5 interconnected to the PJM Interconnection, LLC
3133	3133	6 transmission grid and had a generating capacity of at
3134	3134	7 least 1,200 megawatts as of January 1, 2021, in which
3135	3135	8 case the applicable duration of the contract shall be
3136	3136	9 15 years.
3137	3137	10 (I) The applicant's application is certified by an
3138	3138	11 officer of the applicant and by an officer of the
3139	3139	12 applicant's ultimate parent company, if any.
3140	3140	13 (3) An applicant may submit applications to contract
3141	3141	14 to supply renewable energy credits from more than one new
3142	3142	15 renewable energy facility to be constructed at or adjacent
3143	3143	16 to one or more qualifying electric generating facilities
3144	3144	17 owned by the applicant. The Agency may select new
3145	3145	18 renewable energy facilities to be located at or adjacent
3146	3146	19 to the sites of more than one qualifying electric
3147	3147	20 generation facility owned by an applicant to contract with
3148	3148	21 electric utilities to supply renewable energy credits from
3149	3149	22 such facilities.
3150	3150	23 (4) The Agency shall assess fees to each applicant to
3151	3151	24 recover the Agency's costs incurred in receiving and
3152	3152	25 evaluating applications, conducting the procurement event,
3153	3153	26 developing contracts for sale, delivery and purchase of
3154	3154
3155	3155
3156	3156
3157	3157
3158	3158
3159	3159	HB2563 - 87 - LRB103 29504 AMQ 55899 b
3160	3160
3161	3161
3162	3162	HB2563- 88 -LRB103 29504 AMQ 55899 b HB2563 - 88 - LRB103 29504 AMQ 55899 b
3163	3163	HB2563 - 88 - LRB103 29504 AMQ 55899 b
3164	3164	1 renewable energy credits, and monitoring the
3165	3165	2 administration of such contracts, as provided for in this
3166	3166	3 subsection (c-5), including fees paid to a procurement
3167	3167	4 administrator retained by the Agency for one or more of
3168	3168	5 these purposes.
3169	3169	6 (5) The Agency shall select the applicants and the new
3170	3170	7 renewable energy facilities to contract with electric
3171	3171	8 utilities to supply renewable energy credits in accordance
3172	3172	9 with this subsection (c-5). In the first procurement
3173	3173	10 event, the Agency shall select applicants and new
3174	3174	11 renewable energy facilities to supply renewable energy
3175	3175	12 credits, at a price of $30 per renewable energy credit,
3176	3176	13 aggregating to no less than 400,000 renewable energy
3177	3177	14 credits per year for the applicable duration, assuming
3178	3178	15 sufficient qualifying applications to supply, in the
3179	3179	16 aggregate, at least that amount of renewable energy
3180	3180	17 credits per year; and not more than 580,000 renewable
3181	3181	18 energy credits per year for the applicable duration. In
3182	3182	19 the second procurement event, the Agency shall select
3183	3183	20 applicants and new renewable energy facilities to supply
3184	3184	21 renewable energy credits, at a price of $30 per renewable
3185	3185	22 energy credit, aggregating to no more than 625,000
3186	3186	23 renewable energy credits per year less the amount of
3187	3187	24 renewable energy credits each year contracted for as a
3188	3188	25 result of the first procurement event, for the applicable
3189	3189	26 durations. The number of renewable energy credits to be
3190	3190
3191	3191
3192	3192
3193	3193
3194	3194
3195	3195	HB2563 - 88 - LRB103 29504 AMQ 55899 b
3196	3196
3197	3197
3198	3198	HB2563- 89 -LRB103 29504 AMQ 55899 b HB2563 - 89 - LRB103 29504 AMQ 55899 b
3199	3199	HB2563 - 89 - LRB103 29504 AMQ 55899 b
3200	3200	1 procured as specified in this paragraph (5) shall not be
3201	3201	2 reduced based on renewable energy credits procured in the
3202	3202	3 self-direct renewable energy credit compliance program
3203	3203	4 established pursuant to subparagraph (R) of paragraph (1)
3204	3204	5 of subsection (c) of Section 1-75.
3205	3205	6 (6) The obligation to purchase renewable energy
3206	3206	7 credits from the applicants and their new renewable energy
3207	3207	8 facilities selected by the Agency shall be allocated to
3208	3208	9 the electric utilities based on their respective
3209	3209	10 percentages of kilowatthours delivered to delivery
3210	3210	11 services customers to the aggregate kilowatthour
3211	3211	12 deliveries by the electric utilities to delivery services
3212	3212	13 customers for the year ended December 31, 2021. In order
3213	3213	14 to achieve these allocation percentages between or among
3214	3214	15 the electric utilities, the Agency shall require each
3215	3215	16 applicant that is selected in the procurement event to
3216	3216	17 enter into a contract with each electric utility for the
3217	3217	18 sale and purchase of renewable energy credits from each
3218	3218	19 new renewable energy facility to be constructed and
3219	3219	20 operated by the applicant, with the sale and purchase
3220	3220	21 obligations under the contracts to aggregate to the total
3221	3221	22 number of renewable energy credits per year to be supplied
3222	3222	23 by the applicant from the new renewable energy facility.
3223	3223	24 (7) The Agency shall submit its proposed selection of
3224	3224	25 applicants, new renewable energy facilities to be
3225	3225	26 constructed, and renewable energy credit amounts for each
3226	3226
3227	3227
3228	3228
3229	3229
3230	3230
3231	3231	HB2563 - 89 - LRB103 29504 AMQ 55899 b
3232	3232
3233	3233
3234	3234	HB2563- 90 -LRB103 29504 AMQ 55899 b HB2563 - 90 - LRB103 29504 AMQ 55899 b
3235	3235	HB2563 - 90 - LRB103 29504 AMQ 55899 b
3236	3236	1 procurement event to the Commission for approval. The
3237	3237	2 Commission shall, within 2 business days after receipt of
3238	3238	3 the Agency's proposed selections, approve the proposed
3239	3239	4 selections if it determines that the applicants and the
3240	3240	5 new renewable energy facilities to be constructed meet the
3241	3241	6 selection criteria set forth in this subsection (c-5) and
3242	3242	7 that the Agency seeks approval for contracts of applicable
3243	3243	8 durations aggregating to no more than the maximum amount
3244	3244	9 of renewable energy credits per year authorized by this
3245	3245	10 subsection (c-5) for the procurement event, at a price of
3246	3246	11 $30 per renewable energy credit.
3247	3247	12 (8) The Agency, in conjunction with its procurement
3248	3248	13 administrator if one is retained, the electric utilities,
3249	3249	14 and potential applicants for contracts to produce and
3250	3250	15 supply renewable energy credits pursuant to this
3251	3251	16 subsection (c-5), shall develop a standard form contract
3252	3252	17 for the sale, delivery and purchase of renewable energy
3253	3253	18 credits pursuant to this subsection (c-5). Each contract
3254	3254	19 resulting from the first procurement event shall allow for
3255	3255	20 a commercial operation date for the new renewable energy
3256	3256	21 facility of either June 1, 2023 or June 1, 2024, with such
3257	3257	22 dates subject to adjustment as provided in this paragraph.
3258	3258	23 Each contract resulting from the second procurement event
3259	3259	24 shall provide for a commercial operation date on June 1
3260	3260	25 next occurring up to 48 months after execution of the
3261	3261	26 contract. Each contract shall provide that the owner shall
3262	3262
3263	3263
3264	3264
3265	3265
3266	3266
3267	3267	HB2563 - 90 - LRB103 29504 AMQ 55899 b
3268	3268
3269	3269
3270	3270	HB2563- 91 -LRB103 29504 AMQ 55899 b HB2563 - 91 - LRB103 29504 AMQ 55899 b
3271	3271	HB2563 - 91 - LRB103 29504 AMQ 55899 b
3272	3272	1 receive payments for renewable energy credits for the
3273	3273	2 applicable durations beginning with the commercial
3274	3274	3 operation date of the new renewable energy facility. The
3275	3275	4 form contract shall provide for adjustments to the
3276	3276	5 commercial operation and payment start dates as needed due
3277	3277	6 to any delays in completing the procurement and
3278	3278	7 contracting processes, in finalizing interconnection
3279	3279	8 agreements and installing interconnection facilities, and
3280	3280	9 in obtaining other necessary governmental permits and
3281	3281	10 approvals. The form contract shall be, to the maximum
3282	3282	11 extent possible, consistent with standard electric
3283	3283	12 industry contracts for sale, delivery, and purchase of
3284	3284	13 renewable energy credits while taking into account the
3285	3285	14 specific requirements of this subsection (c-5). The form
3286	3286	15 contract shall provide for over-delivery and
3287	3287	16 under-delivery of renewable energy credits within
3288	3288	17 reasonable ranges during each 12-month period and penalty,
3289	3289	18 default, and enforcement provisions for failure of the
3290	3290	19 selling party to deliver renewable energy credits as
3291	3291	20 specified in the contract and to comply with the
3292	3292	21 requirements of this subsection (c-5). The standard form
3293	3293	22 contract shall specify that all renewable energy credits
3294	3294	23 delivered to the electric utility pursuant to the contract
3295	3295	24 shall be retired. The Agency shall make the proposed
3296	3296	25 contracts available for a reasonable period for comment by
3297	3297	26 potential applicants, and shall publish the final form
3298	3298
3299	3299
3300	3300
3301	3301
3302	3302
3303	3303	HB2563 - 91 - LRB103 29504 AMQ 55899 b
3304	3304
3305	3305
3306	3306	HB2563- 92 -LRB103 29504 AMQ 55899 b HB2563 - 92 - LRB103 29504 AMQ 55899 b
3307	3307	HB2563 - 92 - LRB103 29504 AMQ 55899 b
3308	3308	1 contract at least 30 days before the date of the first
3309	3309	2 procurement event.
3310	3310	3 (9) Coal to Solar and Energy Storage Initiative
3311	3311	4 Charge.
3312	3312	5 (A) By no later than July 1, 2022, each electric
3313	3313	6 utility that served more than 300,000 retail customers
3314	3314	7 in this State as of January 1, 2019 shall file a tariff
3315	3315	8 with the Commission for the billing and collection of
3316	3316	9 a Coal to Solar and Energy Storage Initiative Charge
3317	3317	10 in accordance with subsection (i-5) of Section 16-108
3318	3318	11 of the Public Utilities Act, with such tariff to be
3319	3319	12 effective, following review and approval or
3320	3320	13 modification by the Commission, beginning January 1,
3321	3321	14 2023. The tariff shall provide for the calculation and
3322	3322	15 setting of the electric utility's Coal to Solar and
3323	3323	16 Energy Storage Initiative Charge to collect revenues
3324	3324	17 estimated to be sufficient, in the aggregate, (i) to
3325	3325	18 enable the electric utility to pay for the renewable
3326	3326	19 energy credits it has contracted to purchase in the
3327	3327	20 delivery year beginning June 1, 2023 and each delivery
3328	3328	21 year thereafter from new renewable energy facilities
3329	3329	22 located at the sites of qualifying electric generating
3330	3330	23 facilities, and (ii) to fund the grant payments to be
3331	3331	24 made in each delivery year by the Department of
3332	3332	25 Commerce and Economic Opportunity, or any successor
3333	3333	26 department or agency, which shall be referred to in
3334	3334
3335	3335
3336	3336
3337	3337
3338	3338
3339	3339	HB2563 - 92 - LRB103 29504 AMQ 55899 b
3340	3340
3341	3341
3342	3342	HB2563- 93 -LRB103 29504 AMQ 55899 b HB2563 - 93 - LRB103 29504 AMQ 55899 b
3343	3343	HB2563 - 93 - LRB103 29504 AMQ 55899 b
3344	3344	1 this subsection (c-5) as the Department, pursuant to
3345	3345	2 paragraph (10) of this subsection (c-5). The electric
3346	3346	3 utility's tariff shall provide for the billing and
3347	3347	4 collection of the Coal to Solar and Energy Storage
3348	3348	5 Initiative Charge on each kilowatthour of electricity
3349	3349	6 delivered to its delivery services customers within
3350	3350	7 its service territory and shall provide for an annual
3351	3351	8 reconciliation of revenues collected with actual
3352	3352	9 costs, in accordance with subsection (i-5) of Section
3353	3353	10 16-108 of the Public Utilities Act.
3354	3354	11 (B) Each electric utility shall remit on a monthly
3355	3355	12 basis to the State Treasurer, for deposit in the Coal
3356	3356	13 to Solar and Energy Storage Initiative Fund provided
3357	3357	14 for in this subsection (c-5), the electric utility's
3358	3358	15 collections of the Coal to Solar and Energy Storage
3359	3359	16 Initiative Charge in the amount estimated to be needed
3360	3360	17 by the Department for grant payments pursuant to grant
3361	3361	18 contracts entered into by the Department pursuant to
3362	3362	19 paragraph (10) of this subsection (c-5).
3363	3363	20 (10) Coal to Solar and Energy Storage Initiative Fund.
3364	3364	21 (A) The Coal to Solar and Energy Storage
3365	3365	22 Initiative Fund is established as a special fund in
3366	3366	23 the State treasury. The Coal to Solar and Energy
3367	3367	24 Storage Initiative Fund is authorized to receive, by
3368	3368	25 statutory deposit, that portion specified in item (B)
3369	3369	26 of paragraph (9) of this subsection (c-5) of moneys
3370	3370
3371	3371
3372	3372
3373	3373
3374	3374
3375	3375	HB2563 - 93 - LRB103 29504 AMQ 55899 b
3376	3376
3377	3377
3378	3378	HB2563- 94 -LRB103 29504 AMQ 55899 b HB2563 - 94 - LRB103 29504 AMQ 55899 b
3379	3379	HB2563 - 94 - LRB103 29504 AMQ 55899 b
3380	3380	1 collected by electric utilities through imposition of
3381	3381	2 the Coal to Solar and Energy Storage Initiative Charge
3382	3382	3 required by this subsection (c-5). The Coal to Solar
3383	3383	4 and Energy Storage Initiative Fund shall be
3384	3384	5 administered by the Department to provide grants to
3385	3385	6 support the installation and operation of energy
3386	3386	7 storage facilities at the sites of qualifying electric
3387	3387	8 generating facilities meeting the criteria specified
3388	3388	9 in this paragraph (10).
3389	3389	10 (B) The Coal to Solar and Energy Storage
3390	3390	11 Initiative Fund shall not be subject to sweeps,
3391	3391	12 administrative charges, or chargebacks, including, but
3392	3392	13 not limited to, those authorized under Section 8h of
3393	3393	14 the State Finance Act, that would in any way result in
3394	3394	15 the transfer of those funds from the Coal to Solar and
3395	3395	16 Energy Storage Initiative Fund to any other fund of
3396	3396	17 this State or in having any such funds utilized for any
3397	3397	18 purpose other than the express purposes set forth in
3398	3398	19 this paragraph (10).
3399	3399	20 (C) The Department shall utilize up to
3400	3400	21 $280,500,000 in the Coal to Solar and Energy Storage
3401	3401	22 Initiative Fund for grants, assuming sufficient
3402	3402	23 qualifying applicants, to support installation of
3403	3403	24 energy storage facilities at the sites of up to 3
3404	3404	25 qualifying electric generating facilities located in
3405	3405	26 the Midcontinent Independent System Operator, Inc.,
3406	3406
3407	3407
3408	3408
3409	3409
3410	3410
3411	3411	HB2563 - 94 - LRB103 29504 AMQ 55899 b
3412	3412
3413	3413
3414	3414	HB2563- 95 -LRB103 29504 AMQ 55899 b HB2563 - 95 - LRB103 29504 AMQ 55899 b
3415	3415	HB2563 - 95 - LRB103 29504 AMQ 55899 b
3416	3416	1 region in Illinois and the sites of up to 2 qualifying
3417	3417	2 electric generating facilities located in the PJM
3418	3418	3 Interconnection, LLC region in Illinois that meet the
3419	3419	4 criteria set forth in this subparagraph (C). The
3420	3420	5 criteria for receipt of a grant pursuant to this
3421	3421	6 subparagraph (C) are as follows:
3422	3422	7 (1) the electric generating facility at the
3423	3423	8 site has, or had prior to retirement, an electric
3424	3424	9 generating capacity of at least 150 megawatts;
3425	3425	10 (2) the electric generating facility burns (or
3426	3426	11 burned prior to retirement) coal as its primary
3427	3427	12 source of fuel;
3428	3428	13 (3) if the electric generating facility is
3429	3429	14 retired, it was retired subsequent to January 1,
3430	3430	15 2016;
3431	3431	16 (4) the owner of the electric generating
3432	3432	17 facility has not been selected by the Agency
3433	3433	18 pursuant to this subsection (c-5) of this Section
3434	3434	19 to enter into a contract to sell renewable energy
3435	3435	20 credits to one or more electric utilities from a
3436	3436	21 new renewable energy facility located or to be
3437	3437	22 located at or adjacent to the site at which the
3438	3438	23 electric generating facility is located;
3439	3439	24 (5) the electric generating facility located
3440	3440	25 at the site was at one time owned, in whole or in
3441	3441	26 part, by a public utility as defined in Section
3442	3442
3443	3443
3444	3444
3445	3445
3446	3446
3447	3447	HB2563 - 95 - LRB103 29504 AMQ 55899 b
3448	3448
3449	3449
3450	3450	HB2563- 96 -LRB103 29504 AMQ 55899 b HB2563 - 96 - LRB103 29504 AMQ 55899 b
3451	3451	HB2563 - 96 - LRB103 29504 AMQ 55899 b
3452	3452	1 3-105 of the Public Utilities Act;
3453	3453	2 (6) the electric generating facility at the
3454	3454	3 site is not owned by (i) an electric cooperative
3455	3455	4 as defined in Section 3-119 of the Public
3456	3456	5 Utilities Act, or (ii) an entity described in
3457	3457	6 subsection (b)(1) of Section 3-105 of the Public
3458	3458	7 Utilities Act, or an association or consortium of
3459	3459	8 or an entity owned by entities described in items
3460	3460	9 (i) or (ii);
3461	3461	10 (7) the proposed energy storage facility at
3462	3462	11 the site will have energy storage capacity of at
3463	3463	12 least 37 megawatts;
3464	3464	13 (8) the owner commits to place the energy
3465	3465	14 storage facility into commercial operation on
3466	3466	15 either June 1, 2023, June 1, 2024, or June 1, 2025,
3467	3467	16 with such date subject to adjustment as needed due
3468	3468	17 to any delays in completing the grant contracting
3469	3469	18 process, in finalizing interconnection agreements
3470	3470	19 and in installing interconnection facilities, and
3471	3471	20 in obtaining necessary governmental permits and
3472	3472	21 approvals;
3473	3473	22 (9) the owner agrees that the new energy
3474	3474	23 storage facility will be constructed or installed
3475	3475	24 by a qualified entity or entities consistent with
3476	3476	25 the requirements of subsection (g) of Section
3477	3477	26 16-128A of the Public Utilities Act and any rules
3478	3478
3479	3479
3480	3480
3481	3481
3482	3482
3483	3483	HB2563 - 96 - LRB103 29504 AMQ 55899 b
3484	3484
3485	3485
3486	3486	HB2563- 97 -LRB103 29504 AMQ 55899 b HB2563 - 97 - LRB103 29504 AMQ 55899 b
3487	3487	HB2563 - 97 - LRB103 29504 AMQ 55899 b
3488	3488	1 adopted under that Section;
3489	3489	2 (10) the owner agrees that personnel operating
3490	3490	3 the energy storage facility will have the
3491	3491	4 requisite skills, knowledge, training, experience,
3492	3492	5 and competence, which may be demonstrated by
3493	3493	6 completion or current participation and ultimate
3494	3494	7 completion by employees of an accredited or
3495	3495	8 otherwise recognized apprenticeship program for
3496	3496	9 the employee's particular craft, trade, or skill,
3497	3497	10 including through training and education courses
3498	3498	11 and opportunities offered by the owner to
3499	3499	12 employees of the coal-fueled electric generating
3500	3500	13 facility or by previous employment experience
3501	3501	14 performing the employee's particular work skill or
3502	3502	15 function;
3503	3503	16 (11) the owner commits that not less than the
3504	3504	17 prevailing wage, as determined pursuant to the
3505	3505	18 Prevailing Wage Act, will be paid to the owner's
3506	3506	19 employees engaged in construction activities
3507	3507	20 associated with the new energy storage facility
3508	3508	21 and to the employees of the owner's contractors
3509	3509	22 engaged in construction activities associated with
3510	3510	23 the new energy storage facility, and that, on or
3511	3511	24 before the commercial operation date of the new
3512	3512	25 energy storage facility, the owner shall file a
3513	3513	26 report with the Department certifying that the
3514	3514
3515	3515
3516	3516
3517	3517
3518	3518
3519	3519	HB2563 - 97 - LRB103 29504 AMQ 55899 b
3520	3520
3521	3521
3522	3522	HB2563- 98 -LRB103 29504 AMQ 55899 b HB2563 - 98 - LRB103 29504 AMQ 55899 b
3523	3523	HB2563 - 98 - LRB103 29504 AMQ 55899 b
3524	3524	1 requirements of this subparagraph (11) have been
3525	3525	2 met; and
3526	3526	3 (12) the owner commits that if selected to
3527	3527	4 receive a grant, it will negotiate a project labor
3528	3528	5 agreement for the construction of the new energy
3529	3529	6 storage facility that includes provisions
3530	3530	7 requiring the parties to the agreement to work
3531	3531	8 together to establish diversity threshold
3532	3532	9 requirements and to ensure best efforts to meet
3533	3533	10 diversity targets, improve diversity at the
3534	3534	11 applicable job site, create diverse apprenticeship
3535	3535	12 opportunities, and create opportunities to employ
3536	3536	13 former coal-fired power plant workers.
3537	3537	14 The Department shall accept applications for this
3538	3538	15 grant program until March 31, 2022 and shall announce
3539	3539	16 the award of grants no later than June 1, 2022. The
3540	3540	17 Department shall make the grant payments to a
3541	3541	18 recipient in equal annual amounts for 10 years
3542	3542	19 following the date the energy storage facility is
3543	3543	20 placed into commercial operation. The annual grant
3544	3544	21 payments to a qualifying energy storage facility shall
3545	3545	22 be $110,000 per megawatt of energy storage capacity,
3546	3546	23 with total annual grant payments pursuant to this
3547	3547	24 subparagraph (C) for qualifying energy storage
3548	3548	25 facilities not to exceed $28,050,000 in any year.
3549	3549	26 (D) Grants of funding for energy storage
3550	3550
3551	3551
3552	3552
3553	3553
3554	3554
3555	3555	HB2563 - 98 - LRB103 29504 AMQ 55899 b
3556	3556
3557	3557
3558	3558	HB2563- 99 -LRB103 29504 AMQ 55899 b HB2563 - 99 - LRB103 29504 AMQ 55899 b
3559	3559	HB2563 - 99 - LRB103 29504 AMQ 55899 b
3560	3560	1 facilities pursuant to subparagraph (C) of this
3561	3561	2 paragraph (10), from the Coal to Solar and Energy
3562	3562	3 Storage Initiative Fund, shall be memorialized in
3563	3563	4 grant contracts between the Department and the
3564	3564	5 recipient. The grant contracts shall specify the date
3565	3565	6 or dates in each year on which the annual grant
3566	3566	7 payments shall be paid.
3567	3567	8 (E) All disbursements from the Coal to Solar and
3568	3568	9 Energy Storage Initiative Fund shall be made only upon
3569	3569	10 warrants of the Comptroller drawn upon the Treasurer
3570	3570	11 as custodian of the Fund upon vouchers signed by the
3571	3571	12 Director of the Department or by the person or persons
3572	3572	13 designated by the Director of the Department for that
3573	3573	14 purpose. The Comptroller is authorized to draw the
3574	3574	15 warrants upon vouchers so signed. The Treasurer shall
3575	3575	16 accept all written warrants so signed and shall be
3576	3576	17 released from liability for all payments made on those
3577	3577	18 warrants.
3578	3578	19 (11) Diversity, equity, and inclusion plans.
3579	3579	20 (A) Each applicant selected in a procurement event
3580	3580	21 to contract to supply renewable energy credits in
3581	3581	22 accordance with this subsection (c-5) and each owner
3582	3582	23 selected by the Department to receive a grant or
3583	3583	24 grants to support the construction and operation of a
3584	3584	25 new energy storage facility or facilities in
3585	3585	26 accordance with this subsection (c-5) shall, within 60
3586	3586
3587	3587
3588	3588
3589	3589
3590	3590
3591	3591	HB2563 - 99 - LRB103 29504 AMQ 55899 b
3592	3592
3593	3593
3594	3594	HB2563- 100 -LRB103 29504 AMQ 55899 b HB2563 - 100 - LRB103 29504 AMQ 55899 b
3595	3595	HB2563 - 100 - LRB103 29504 AMQ 55899 b
3596	3596	1 days following the Commission's approval of the
3597	3597	2 applicant to contract to supply renewable energy
3598	3598	3 credits or within 60 days following execution of a
3599	3599	4 grant contract with the Department, as applicable,
3600	3600	5 submit to the Commission a diversity, equity, and
3601	3601	6 inclusion plan setting forth the applicant's or
3602	3602	7 owner's numeric goals for the diversity composition of
3603	3603	8 its supplier entities for the new renewable energy
3604	3604	9 facility or new energy storage facility, as
3605	3605	10 applicable, which shall be referred to for purposes of
3606	3606	11 this paragraph (11) as the project, and the
3607	3607	12 applicant's or owner's action plan and schedule for
3608	3608	13 achieving those goals.
3609	3609	14 (B) For purposes of this paragraph (11), diversity
3610	3610	15 composition shall be based on the percentage, which
3611	3611	16 shall be a minimum of 25%, of eligible expenditures
3612	3612	17 for contract awards for materials and services (which
3613	3613	18 shall be defined in the plan) to business enterprises
3614	3614	19 owned by minority persons, women, or persons with
3615	3615	20 disabilities as defined in Section 2 of the Business
3616	3616	21 Enterprise for Minorities, Women, and Persons with
3617	3617	22 Disabilities Act, to LGBTQ business enterprises, to
3618	3618	23 veteran-owned business enterprises, and to business
3619	3619	24 enterprises located in environmental justice
3620	3620	25 communities. The diversity composition goals of the
3621	3621	26 plan may include eligible expenditures in areas for
3622	3622
3623	3623
3624	3624
3625	3625
3626	3626
3627	3627	HB2563 - 100 - LRB103 29504 AMQ 55899 b
3628	3628
3629	3629
3630	3630	HB2563- 101 -LRB103 29504 AMQ 55899 b HB2563 - 101 - LRB103 29504 AMQ 55899 b
3631	3631	HB2563 - 101 - LRB103 29504 AMQ 55899 b
3632	3632	1 vendor or supplier opportunities in addition to
3633	3633	2 development and construction of the project, and may
3634	3634	3 exclude from eligible expenditures materials and
3635	3635	4 services with limited market availability, limited
3636	3636	5 production and availability from suppliers in the
3637	3637	6 United States, such as solar panels and storage
3638	3638	7 batteries, and material and services that are subject
3639	3639	8 to critical energy infrastructure or cybersecurity
3640	3640	9 requirements or restrictions. The plan may provide
3641	3641	10 that the diversity composition goals may be met
3642	3642	11 through Tier 1 Direct or Tier 2 subcontracting
3643	3643	12 expenditures or a combination thereof for the project.
3644	3644	13 (C) The plan shall provide for, but not be limited
3645	3645	14 to: (i) internal initiatives, including multi-tier
3646	3646	15 initiatives, by the applicant or owner, or by its
3647	3647	16 engineering, procurement and construction contractor
3648	3648	17 if one is used for the project, which for purposes of
3649	3649	18 this paragraph (11) shall be referred to as the EPC
3650	3650	19 contractor, to enable diverse businesses to be
3651	3651	20 considered fairly for selection to provide materials
3652	3652	21 and services; (ii) requirements for the applicant or
3653	3653	22 owner or its EPC contractor to proactively solicit and
3654	3654	23 utilize diverse businesses to provide materials and
3655	3655	24 services; and (iii) requirements for the applicant or
3656	3656	25 owner or its EPC contractor to hire a diverse
3657	3657	26 workforce for the project. The plan shall include a
3658	3658
3659	3659
3660	3660
3661	3661
3662	3662
3663	3663	HB2563 - 101 - LRB103 29504 AMQ 55899 b
3664	3664
3665	3665
3666	3666	HB2563- 102 -LRB103 29504 AMQ 55899 b HB2563 - 102 - LRB103 29504 AMQ 55899 b
3667	3667	HB2563 - 102 - LRB103 29504 AMQ 55899 b
3668	3668	1 description of the applicant's or owner's diversity
3669	3669	2 recruiting efforts both for the project and for other
3670	3670	3 areas of the applicant's or owner's business
3671	3671	4 operations. The plan shall provide for the imposition
3672	3672	5 of financial penalties on the applicant's or owner's
3673	3673	6 EPC contractor for failure to exercise best efforts to
3674	3674	7 comply with and execute the EPC contractor's diversity
3675	3675	8 obligations under the plan. The plan may provide for
3676	3676	9 the applicant or owner to set aside a portion of the
3677	3677	10 work on the project to serve as an incubation program
3678	3678	11 for qualified businesses, as specified in the plan,
3679	3679	12 owned by minority persons, women, persons with
3680	3680	13 disabilities, LGBTQ persons, and veterans, and
3681	3681	14 businesses located in environmental justice
3682	3682	15 communities, seeking to enter the renewable energy
3683	3683	16 industry.
3684	3684	17 (D) The applicant or owner may submit a revised or
3685	3685	18 updated plan to the Commission from time to time as
3686	3686	19 circumstances warrant. The applicant or owner shall
3687	3687	20 file annual reports with the Commission detailing the
3688	3688	21 applicant's or owner's progress in implementing its
3689	3689	22 plan and achieving its goals and any modifications the
3690	3690	23 applicant or owner has made to its plan to better
3691	3691	24 achieve its diversity, equity and inclusion goals. The
3692	3692	25 applicant or owner shall file a final report on the
3693	3693	26 fifth June 1 following the commercial operation date
3694	3694
3695	3695
3696	3696
3697	3697
3698	3698
3699	3699	HB2563 - 102 - LRB103 29504 AMQ 55899 b
3700	3700
3701	3701
3702	3702	HB2563- 103 -LRB103 29504 AMQ 55899 b HB2563 - 103 - LRB103 29504 AMQ 55899 b
3703	3703	HB2563 - 103 - LRB103 29504 AMQ 55899 b
3704	3704	1 of the new renewable energy resource or new energy
3705	3705	2 storage facility, but the applicant or owner shall
3706	3706	3 thereafter continue to be subject to applicable
3707	3707	4 reporting requirements of Section 5-117 of the Public
3708	3708	5 Utilities Act.
3709	3709	6 (c-10) Equity accountability system. It is the purpose of
3710	3710	7 this subsection (c-10) to create an equity accountability
3711	3711	8 system, which includes the minimum equity standards for all
3712	3712	9 renewable energy procurements, the equity category of the
3713	3713	10 Adjustable Block Program, and the equity prioritization for
3714	3714	11 noncompetitive procurements, that is successful in advancing
3715	3715	12 priority access to the clean energy economy for businesses and
3716	3716	13 workers from communities that have been excluded from economic
3717	3717	14 opportunities in the energy sector, have been subject to
3718	3718	15 disproportionate levels of pollution, and have
3719	3719	16 disproportionately experienced negative public health
3720	3720	17 outcomes. Further, it is the purpose of this subsection to
3721	3721	18 ensure that this equity accountability system is successful in
3722	3722	19 advancing equity across Illinois by providing access to the
3723	3723	20 clean energy economy for businesses and workers from
3724	3724	21 communities that have been historically excluded from economic
3725	3725	22 opportunities in the energy sector, have been subject to
3726	3726	23 disproportionate levels of pollution, and have
3727	3727	24 disproportionately experienced negative public health
3728	3728	25 outcomes.
3729	3729	26 (1) Minimum equity standards. The Agency shall create
3730	3730
3731	3731
3732	3732
3733	3733
3734	3734
3735	3735	HB2563 - 103 - LRB103 29504 AMQ 55899 b
3736	3736
3737	3737
3738	3738	HB2563- 104 -LRB103 29504 AMQ 55899 b HB2563 - 104 - LRB103 29504 AMQ 55899 b
3739	3739	HB2563 - 104 - LRB103 29504 AMQ 55899 b
3740	3740	1 programs with the purpose of increasing access to and
3741	3741	2 development of equity eligible contractors, who are prime
3742	3742	3 contractors and subcontractors, across all of the programs
3743	3743	4 it manages. All applications for renewable energy credit
3744	3744	5 procurements shall comply with specific minimum equity
3745	3745	6 commitments. Starting in the delivery year immediately
3746	3746	7 following the next long-term renewable resources
3747	3747	8 procurement plan, at least 10% of the project workforce
3748	3748	9 for each entity participating in a procurement program
3749	3749	10 outlined in this subsection (c-10) must be done by equity
3750	3750	11 eligible persons or equity eligible contractors. The
3751	3751	12 Agency shall increase the minimum percentage each delivery
3752	3752	13 year thereafter by increments that ensure a statewide
3753	3753	14 average of 30% of the project workforce for each entity
3754	3754	15 participating in a procurement program is done by equity
3755	3755	16 eligible persons or equity eligible contractors by 2030.
3756	3756	17 The Agency shall propose a schedule of percentage
3757	3757	18 increases to the minimum equity standards in its draft
3758	3758	19 revised renewable energy resources procurement plan
3759	3759	20 submitted to the Commission for approval pursuant to
3760	3760	21 paragraph (5) of subsection (b) of Section 16-111.5 of the
3761	3761	22 Public Utilities Act. In determining these annual
3762	3762	23 increases, the Agency shall have the discretion to
3763	3763	24 establish different minimum equity standards for different
3764	3764	25 types of procurements and different regions of the State
3765	3765	26 if the Agency finds that doing so will further the
3766	3766
3767	3767
3768	3768
3769	3769
3770	3770
3771	3771	HB2563 - 104 - LRB103 29504 AMQ 55899 b
3772	3772
3773	3773
3774	3774	HB2563- 105 -LRB103 29504 AMQ 55899 b HB2563 - 105 - LRB103 29504 AMQ 55899 b
3775	3775	HB2563 - 105 - LRB103 29504 AMQ 55899 b
3776	3776	1 purposes of this subsection (c-10). The proposed schedule
3777	3777	2 of annual increases shall be revisited and updated on an
3778	3778	3 annual basis. Revisions shall be developed with
3779	3779	4 stakeholder input, including from equity eligible persons,
3780	3780	5 equity eligible contractors, clean energy industry
3781	3781	6 representatives, and community-based organizations that
3782	3782	7 work with such persons and contractors.
3783	3783	8 (A) At the start of each delivery year, the Agency
3784	3784	9 shall require a compliance plan from each entity
3785	3785	10 participating in a procurement program of subsection
3786	3786	11 (c) of this Section that demonstrates how they will
3787	3787	12 achieve compliance with the minimum equity standard
3788	3788	13 percentage for work completed in that delivery year.
3789	3789	14 If an entity applies for its approved vendor or
3790	3790	15 designee status between delivery years, the Agency
3791	3791	16 shall require a compliance plan at the time of
3792	3792	17 application.
3793	3793	18 (B) Halfway through each delivery year, the Agency
3794	3794	19 shall require each entity participating in a
3795	3795	20 procurement program to confirm that it will achieve
3796	3796	21 compliance in that delivery year, when applicable. The
3797	3797	22 Agency may offer corrective action plans to entities
3798	3798	23 that are not on track to achieve compliance.
3799	3799	24 (C) At the end of each delivery year, each entity
3800	3800	25 participating and completing work in that delivery
3801	3801	26 year in a procurement program of subsection (c) shall
3802	3802
3803	3803
3804	3804
3805	3805
3806	3806
3807	3807	HB2563 - 105 - LRB103 29504 AMQ 55899 b
3808	3808
3809	3809
3810	3810	HB2563- 106 -LRB103 29504 AMQ 55899 b HB2563 - 106 - LRB103 29504 AMQ 55899 b
3811	3811	HB2563 - 106 - LRB103 29504 AMQ 55899 b
3812	3812	1 submit a report to the Agency that demonstrates how it
3813	3813	2 achieved compliance with the minimum equity standards
3814	3814	3 percentage for that delivery year.
3815	3815	4 (D) The Agency shall prohibit participation in
3816	3816	5 procurement programs by an approved vendor or
3817	3817	6 designee, as applicable, or entities with which an
3818	3818	7 approved vendor or designee, as applicable, shares a
3819	3819	8 common parent company if an approved vendor or
3820	3820	9 designee, as applicable, failed to meet the minimum
3821	3821	10 equity standards for the prior delivery year. Waivers
3822	3822	11 approved for lack of equity eligible persons or equity
3823	3823	12 eligible contractors in a geographic area of a project
3824	3824	13 shall not count against the approved vendor or
3825	3825	14 designee. The Agency shall offer a corrective action
3826	3826	15 plan for any such entities to assist them in obtaining
3827	3827	16 compliance and shall allow continued access to
3828	3828	17 procurement programs upon an approved vendor or
3829	3829	18 designee demonstrating compliance.
3830	3830	19 (E) The Agency shall pursue efficiencies achieved
3831	3831	20 by combining with other approved vendor or designee
3832	3832	21 reporting.
3833	3833	22 (2) Equity accountability system within the Adjustable
3834	3834	23 Block program. The equity category described in item (vi)
3835	3835	24 of subparagraph (K) of subsection (c) is only available to
3836	3836	25 applicants that are equity eligible contractors.
3837	3837	26 (3) Equity accountability system within competitive
3838	3838
3839	3839
3840	3840
3841	3841
3842	3842
3843	3843	HB2563 - 106 - LRB103 29504 AMQ 55899 b
3844	3844
3845	3845
3846	3846	HB2563- 107 -LRB103 29504 AMQ 55899 b HB2563 - 107 - LRB103 29504 AMQ 55899 b
3847	3847	HB2563 - 107 - LRB103 29504 AMQ 55899 b
3848	3848	1 procurements. Through its long-term renewable resources
3849	3849	2 procurement plan, the Agency shall develop requirements
3850	3850	3 for ensuring that competitive procurement processes,
3851	3851	4 including utility-scale solar, utility-scale wind, and
3852	3852	5 brownfield site photovoltaic projects, advance the equity
3853	3853	6 goals of this subsection (c-10). Subject to Commission
3854	3854	7 approval, the Agency shall develop bid application
3855	3855	8 requirements and a bid evaluation methodology for ensuring
3856	3856	9 that utilization of equity eligible contractors, whether
3857	3857	10 as bidders or as participants on project development, is
3858	3858	11 optimized, including requiring that winning or successful
3859	3859	12 applicants for utility-scale projects are or will partner
3860	3860	13 with equity eligible contractors and giving preference to
3861	3861	14 bids through which a higher portion of contract value
3862	3862	15 flows to equity eligible contractors. To the extent
3863	3863	16 practicable, entities participating in competitive
3864	3864	17 procurements shall also be required to meet all the equity
3865	3865	18 accountability requirements for approved vendors and their
3866	3866	19 designees under this subsection (c-10). In developing
3867	3867	20 these requirements, the Agency shall also consider whether
3868	3868	21 equity goals can be further advanced through additional
3869	3869	22 measures.
3870	3870	23 (4) In the first revision to the long-term renewable
3871	3871	24 energy resources procurement plan and each revision
3872	3872	25 thereafter, the Agency shall include the following:
3873	3873	26 (A) The current status and number of equity
3874	3874
3875	3875
3876	3876
3877	3877
3878	3878
3879	3879	HB2563 - 107 - LRB103 29504 AMQ 55899 b
3880	3880
3881	3881
3882	3882	HB2563- 108 -LRB103 29504 AMQ 55899 b HB2563 - 108 - LRB103 29504 AMQ 55899 b
3883	3883	HB2563 - 108 - LRB103 29504 AMQ 55899 b
3884	3884	1 eligible contractors listed in the Energy Workforce
3885	3885	2 Equity Database designed in subsection (c-25),
3886	3886	3 including the number of equity eligible contractors
3887	3887	4 with current certifications as issued by the Agency.
3888	3888	5 (B) A mechanism for measuring, tracking, and
3889	3889	6 reporting project workforce at the approved vendor or
3890	3890	7 designee level, as applicable, which shall include a
3891	3891	8 measurement methodology and records to be made
3892	3892	9 available for audit by the Agency or the Program
3893	3893	10 Administrator.
3894	3894	11 (C) A program for approved vendors, designees,
3895	3895	12 eligible persons, and equity eligible contractors to
3896	3896	13 receive trainings, guidance, and other support from
3897	3897	14 the Agency or its designee regarding the equity
3898	3898	15 category outlined in item (vi) of subparagraph (K) of
3899	3899	16 paragraph (1) of subsection (c) and in meeting the
3900	3900	17 minimum equity standards of this subsection (c-10).
3901	3901	18 (D) A process for certifying equity eligible
3902	3902	19 contractors and equity eligible persons. The
3903	3903	20 certification process shall coordinate with the Energy
3904	3904	21 Workforce Equity Database set forth in subsection
3905	3905	22 (c-25).
3906	3906	23 (E) An application for waiver of the minimum
3907	3907	24 equity standards of this subsection, which the Agency
3908	3908	25 shall have the discretion to grant in rare
3909	3909	26 circumstances. The Agency may grant such a waiver
3910	3910
3911	3911
3912	3912
3913	3913
3914	3914
3915	3915	HB2563 - 108 - LRB103 29504 AMQ 55899 b
3916	3916
3917	3917
3918	3918	HB2563- 109 -LRB103 29504 AMQ 55899 b HB2563 - 109 - LRB103 29504 AMQ 55899 b
3919	3919	HB2563 - 109 - LRB103 29504 AMQ 55899 b
3920	3920	1 where the applicant provides evidence of significant
3921	3921	2 efforts toward meeting the minimum equity commitment,
3922	3922	3 including: use of the Energy Workforce Equity
3923	3923	4 Database; efforts to hire or contract with entities
3924	3924	5 that hire eligible persons; and efforts to establish
3925	3925	6 contracting relationships with eligible contractors.
3926	3926	7 The Agency shall support applicants in understanding
3927	3927	8 the Energy Workforce Equity Database and other
3928	3928	9 resources for pursuing compliance of the minimum
3929	3929	10 equity standards. Waivers shall be project-specific,
3930	3930	11 unless the Agency deems it necessary to grant a waiver
3931	3931	12 across a portfolio of projects, and in effect for no
3932	3932	13 longer than one year. Any waiver extension or
3933	3933	14 subsequent waiver request from an applicant shall be
3934	3934	15 subject to the requirements of this Section and shall
3935	3935	16 specify efforts made to reach compliance. When
3936	3936	17 considering whether to grant a waiver, and to what
3937	3937	18 extent, the Agency shall consider the degree to which
3938	3938	19 similarly situated applicants have been able to meet
3939	3939	20 these minimum equity commitments. For repeated waiver
3940	3940	21 requests for specific lack of eligible persons or
3941	3941	22 eligible contractors available, the Agency shall make
3942	3942	23 recommendations to target recruitment to add such
3943	3943	24 eligible persons or eligible contractors to the
3944	3944	25 database.
3945	3945	26 (5) The Agency shall collect information about work on
3946	3946
3947	3947
3948	3948
3949	3949
3950	3950
3951	3951	HB2563 - 109 - LRB103 29504 AMQ 55899 b
3952	3952
3953	3953
3954	3954	HB2563- 110 -LRB103 29504 AMQ 55899 b HB2563 - 110 - LRB103 29504 AMQ 55899 b
3955	3955	HB2563 - 110 - LRB103 29504 AMQ 55899 b
3956	3956	1 projects or portfolios of projects subject to these
3957	3957	2 minimum equity standards to ensure compliance with this
3958	3958	3 subsection (c-10). Reporting in furtherance of this
3959	3959	4 requirement may be combined with other annual reporting
3960	3960	5 requirements. Such reporting shall include proof of
3961	3961	6 certification of each equity eligible contractor or equity
3962	3962	7 eligible person during the applicable time period.
3963	3963	8 (6) The Agency shall keep confidential all information
3964	3964	9 and communication that provides private or personal
3965	3965	10 information.
3966	3966	11 (7) Modifications to the equity accountability system.
3967	3967	12 As part of the update of the long-term renewable resources
3968	3968	13 procurement plan to be initiated in 2023, or sooner if the
3969	3969	14 Agency deems necessary, the Agency shall determine the
3970	3970	15 extent to which the equity accountability system described
3971	3971	16 in this subsection (c-10) has advanced the goals of this
3972	3972	17 amendatory Act of the 102nd General Assembly, including
3973	3973	18 through the inclusion of equity eligible persons and
3974	3974	19 equity eligible contractors in renewable energy credit
3975	3975	20 projects. If the Agency finds that the equity
3976	3976	21 accountability system has failed to meet those goals to
3977	3977	22 its fullest potential, the Agency may revise the following
3978	3978	23 criteria for future Agency procurements: (A) the
3979	3979	24 percentage of project workforce, or other appropriate
3980	3980	25 workforce measure, certified as equity eligible persons or
3981	3981	26 equity eligible contractors; (B) definitions for equity
3982	3982
3983	3983
3984	3984
3985	3985
3986	3986
3987	3987	HB2563 - 110 - LRB103 29504 AMQ 55899 b
3988	3988
3989	3989
3990	3990	HB2563- 111 -LRB103 29504 AMQ 55899 b HB2563 - 111 - LRB103 29504 AMQ 55899 b
3991	3991	HB2563 - 111 - LRB103 29504 AMQ 55899 b
3992	3992	1 investment eligible persons and equity investment eligible
3993	3993	2 community; and (C) such other modifications necessary to
3994	3994	3 advance the goals of this amendatory Act of the 102nd
3995	3995	4 General Assembly effectively. Such revised criteria may
3996	3996	5 also establish distinct equity accountability systems for
3997	3997	6 different types of procurements or different regions of
3998	3998	7 the State if the Agency finds that doing so will further
3999	3999	8 the purposes of such programs. Revisions shall be
4000	4000	9 developed with stakeholder input, including from equity
4001	4001	10 eligible persons, equity eligible contractors, and
4002	4002	11 community-based organizations that work with such persons
4003	4003	12 and contractors.
4004	4004	13 (c-15) Racial discrimination elimination powers and
4005	4005	14 process.
4006	4006	15 (1) Purpose. It is the purpose of this subsection to
4007	4007	16 empower the Agency and other State actors to remedy racial
4008	4008	17 discrimination in Illinois' clean energy economy as
4009	4009	18 effectively and expediently as possible, including through
4010	4010	19 the use of race-conscious remedies, such as race-conscious
4011	4011	20 contracting and hiring goals, as consistent with State and
4012	4012	21 federal law.
4013	4013	22 (2) Racial disparity and discrimination review
4014	4014	23 process.
4015	4015	24 (A) Within one year after awarding contracts using
4016	4016	25 the equity actions processes established in this
4017	4017	26 Section, the Agency shall publish a report evaluating
4018	4018
4019	4019
4020	4020
4021	4021
4022	4022
4023	4023	HB2563 - 111 - LRB103 29504 AMQ 55899 b
4024	4024
4025	4025
4026	4026	HB2563- 112 -LRB103 29504 AMQ 55899 b HB2563 - 112 - LRB103 29504 AMQ 55899 b
4027	4027	HB2563 - 112 - LRB103 29504 AMQ 55899 b
4028	4028	1 the effectiveness of the equity actions point criteria
4029	4029	2 of this Section in increasing participation of equity
4030	4030	3 eligible persons and equity eligible contractors. The
4031	4031	4 report shall disaggregate participating workers and
4032	4032	5 contractors by race and ethnicity. The report shall be
4033	4033	6 forwarded to the Governor, the General Assembly, and
4034	4034	7 the Illinois Commerce Commission and be made available
4035	4035	8 to the public.
4036	4036	9 (B) As soon as is practicable thereafter, the
4037	4037	10 Agency, in consultation with the Department of
4038	4038	11 Commerce and Economic Opportunity, Department of
4039	4039	12 Labor, and other agencies that may be relevant, shall
4040	4040	13 commission and publish a disparity and availability
4041	4041	14 study that measures the presence and impact of
4042	4042	15 discrimination on minority businesses and workers in
4043	4043	16 Illinois' clean energy economy. The Agency may hire
4044	4044	17 consultants and experts to conduct the disparity and
4045	4045	18 availability study, with the retention of those
4046	4046	19 consultants and experts exempt from the requirements
4047	4047	20 of Section 20-10 of the Illinois Procurement Code. The
4048	4048	21 Illinois Power Agency shall forward a copy of its
4049	4049	22 findings and recommendations to the Governor, the
4050	4050	23 General Assembly, and the Illinois Commerce
4051	4051	24 Commission. If the disparity and availability study
4052	4052	25 establishes a strong basis in evidence that there is
4053	4053	26 discrimination in Illinois' clean energy economy, the
4054	4054
4055	4055
4056	4056
4057	4057
4058	4058
4059	4059	HB2563 - 112 - LRB103 29504 AMQ 55899 b
4060	4060
4061	4061
4062	4062	HB2563- 113 -LRB103 29504 AMQ 55899 b HB2563 - 113 - LRB103 29504 AMQ 55899 b
4063	4063	HB2563 - 113 - LRB103 29504 AMQ 55899 b
4064	4064	1 Agency, Department of Commerce and Economic
4065	4065	2 Opportunity, Department of Labor, Department of
4066	4066	3 Corrections, and other appropriate agencies shall take
4067	4067	4 appropriate remedial actions, including race-conscious
4068	4068	5 remedial actions as consistent with State and federal
4069	4069	6 law, to effectively remedy this discrimination. Such
4070	4070	7 remedies may include modification of the equity
4071	4071	8 accountability system as described in subsection
4072	4072	9 (c-10).
4073	4073	10 (c-20) Program data collection.
4074	4074	11 (1) Purpose. Data collection, data analysis, and
4075	4075	12 reporting are critical to ensure that the benefits of the
4076	4076	13 clean energy economy provided to Illinois residents and
4077	4077	14 businesses are equitably distributed across the State. The
4078	4078	15 Agency shall collect data from program applicants in order
4079	4079	16 to track and improve equitable distribution of benefits
4080	4080	17 across Illinois communities for all procurements the
4081	4081	18 Agency conducts. The Agency shall use this data to, among
4082	4082	19 other things, measure any potential impact of racial
4083	4083	20 discrimination on the distribution of benefits and provide
4084	4084	21 information necessary to correct any discrimination
4085	4085	22 through methods consistent with State and federal law.
4086	4086	23 (2) Agency collection of program data. The Agency
4087	4087	24 shall collect demographic and geographic data for each
4088	4088	25 entity awarded contracts under any Agency-administered
4089	4089	26 program.
4090	4090
4091	4091
4092	4092
4093	4093
4094	4094
4095	4095	HB2563 - 113 - LRB103 29504 AMQ 55899 b
4096	4096
4097	4097
4098	4098	HB2563- 114 -LRB103 29504 AMQ 55899 b HB2563 - 114 - LRB103 29504 AMQ 55899 b
4099	4099	HB2563 - 114 - LRB103 29504 AMQ 55899 b
4100	4100	1 (3) Required information to be collected. The Agency
4101	4101	2 shall collect the following information from applicants
4102	4102	3 and program participants where applicable:
4103	4103	4 (A) demographic information, including racial or
4104	4104	5 ethnic identity for real persons employed, contracted,
4105	4105	6 or subcontracted through the program and owners of
4106	4106	7 businesses or entities that apply to receive renewable
4107	4107	8 energy credits from the Agency;
4108	4108	9 (B) geographic location of the residency of real
4109	4109	10 persons employed, contracted, or subcontracted through
4110	4110	11 the program and geographic location of the
4111	4111	12 headquarters of the business or entity that applies to
4112	4112	13 receive renewable energy credits from the Agency; and
4113	4113	14 (C) any other information the Agency determines is
4114	4114	15 necessary for the purpose of achieving the purpose of
4115	4115	16 this subsection.
4116	4116	17 (4) Publication of collected information. The Agency
4117	4117	18 shall publish, at least annually, information on the
4118	4118	19 demographics of program participants on an aggregate
4119	4119	20 basis.
4120	4120	21 (5) Nothing in this subsection shall be interpreted to
4121	4121	22 limit the authority of the Agency, or other agency or
4122	4122	23 department of the State, to require or collect demographic
4123	4123	24 information from applicants of other State programs.
4124	4124	25 (c-25) Energy Workforce Equity Database.
4125	4125	26 (1) The Agency, in consultation with the Department of
4126	4126
4127	4127
4128	4128
4129	4129
4130	4130
4131	4131	HB2563 - 114 - LRB103 29504 AMQ 55899 b
4132	4132
4133	4133
4134	4134	HB2563- 115 -LRB103 29504 AMQ 55899 b HB2563 - 115 - LRB103 29504 AMQ 55899 b
4135	4135	HB2563 - 115 - LRB103 29504 AMQ 55899 b
4136	4136	1 Commerce and Economic Opportunity, shall create an Energy
4137	4137	2 Workforce Equity Database, and may contract with a third
4138	4138	3 party to do so ("database program administrator"). If the
4139	4139	4 Department decides to contract with a third party, that
4140	4140	5 third party shall be exempt from the requirements of
4141	4141	6 Section 20-10 of the Illinois Procurement Code. The Energy
4142	4142	7 Workforce Equity Database shall be a searchable database
4143	4143	8 of suppliers, vendors, and subcontractors for clean energy
4144	4144	9 industries that is:
4145	4145	10 (A) publicly accessible;
4146	4146	11 (B) easy for people to find and use;
4147	4147	12 (C) organized by company specialty or field;
4148	4148	13 (D) region-specific; and
4149	4149	14 (E) populated with information including, but not
4150	4150	15 limited to, contacts for suppliers, vendors, or
4151	4151	16 subcontractors who are minority and women-owned
4152	4152	17 business enterprise certified or who participate or
4153	4153	18 have participated in any of the programs described in
4154	4154	19 this Act.
4155	4155	20 (2) The Agency shall create an easily accessible,
4156	4156	21 public facing online tool using the database information
4157	4157	22 that includes, at a minimum, the following:
4158	4158	23 (A) a map of environmental justice and equity
4159	4159	24 investment eligible communities;
4160	4160	25 (B) job postings and recruiting opportunities;
4161	4161	26 (C) a means by which recruiting clean energy
4162	4162
4163	4163
4164	4164
4165	4165
4166	4166
4167	4167	HB2563 - 115 - LRB103 29504 AMQ 55899 b
4168	4168
4169	4169
4170	4170	HB2563- 116 -LRB103 29504 AMQ 55899 b HB2563 - 116 - LRB103 29504 AMQ 55899 b
4171	4171	HB2563 - 116 - LRB103 29504 AMQ 55899 b
4172	4172	1 companies can find and interact with current or former
4173	4173	2 participants of clean energy workforce training
4174	4174	3 programs;
4175	4175	4 (D) information on workforce training service
4176	4176	5 providers and training opportunities available to
4177	4177	6 prospective workers;
4178	4178	7 (E) renewable energy company diversity reporting;
4179	4179	8 (F) a list of equity eligible contractors with
4180	4180	9 their contact information, types of work performed,
4181	4181	10 and locations worked in;
4182	4182	11 (G) reporting on outcomes of the programs
4183	4183	12 described in the workforce programs of the Energy
4184	4184	13 Transition Act, including information such as, but not
4185	4185	14 limited to, retention rate, graduation rate, and
4186	4186	15 placement rates of trainees; and
4187	4187	16 (H) information about the Jobs and Environmental
4188	4188	17 Justice Grant Program, the Clean Energy Jobs and
4189	4189	18 Justice Fund, and other sources of capital.
4190	4190	19 (3) The Agency shall ensure the database is regularly
4191	4191	20 updated to ensure information is current and shall
4192	4192	21 coordinate with the Department of Commerce and Economic
4193	4193	22 Opportunity to ensure that it includes information on
4194	4194	23 individuals and entities that are or have participated in
4195	4195	24 the Clean Jobs Workforce Network Program, Clean Energy
4196	4196	25 Contractor Incubator Program, Returning Residents Clean
4197	4197	26 Jobs Training Program, or Clean Energy Primes Contractor
4198	4198
4199	4199
4200	4200
4201	4201
4202	4202
4203	4203	HB2563 - 116 - LRB103 29504 AMQ 55899 b
4204	4204
4205	4205
4206	4206	HB2563- 117 -LRB103 29504 AMQ 55899 b HB2563 - 117 - LRB103 29504 AMQ 55899 b
4207	4207	HB2563 - 117 - LRB103 29504 AMQ 55899 b
4208	4208	1 Accelerator Program.
4209	4209	2 (c-30) Enforcement of minimum equity standards. All
4210	4210	3 entities seeking renewable energy credits must submit an
4211	4211	4 annual report to demonstrate compliance with each of the
4212	4212	5 equity commitments required under subsection (c-10). If the
4213	4213	6 Agency concludes the entity has not met or maintained its
4214	4214	7 minimum equity standards required under the applicable
4215	4215	8 subparagraphs under subsection (c-10), the Agency shall deny
4216	4216	9 the entity's ability to participate in procurement programs in
4217	4217	10 subsection (c), including by withholding approved vendor or
4218	4218	11 designee status. The Agency may require the entity to enter
4219	4219	12 into a corrective action plan. An entity that is not
4220	4220	13 recertified for failing to meet required equity actions in
4221	4221	14 subparagraph (c-10) may reapply once they have a corrective
4222	4222	15 action plan and achieve compliance with the minimum equity
4223	4223	16 standards.
4224	4224	17 (d) Clean coal portfolio standard.
4225	4225	18 (1) The procurement plans shall include electricity
4226	4226	19 generated using clean coal. Each utility shall enter into
4227	4227	20 one or more sourcing agreements with the initial clean
4228	4228	21 coal facility, as provided in paragraph (3) of this
4229	4229	22 subsection (d), covering electricity generated by the
4230	4230	23 initial clean coal facility representing at least 5% of
4231	4231	24 each utility's total supply to serve the load of eligible
4232	4232	25 retail customers in 2015 and each year thereafter, as
4233	4233	26 described in paragraph (3) of this subsection (d), subject
4234	4234
4235	4235
4236	4236
4237	4237
4238	4238
4239	4239	HB2563 - 117 - LRB103 29504 AMQ 55899 b
4240	4240
4241	4241
4242	4242	HB2563- 118 -LRB103 29504 AMQ 55899 b HB2563 - 118 - LRB103 29504 AMQ 55899 b
4243	4243	HB2563 - 118 - LRB103 29504 AMQ 55899 b
4244	4244	1 to the limits specified in paragraph (2) of this
4245	4245	2 subsection (d). It is the goal of the State that by January
4246	4246	3 1, 2025, 25% of the electricity used in the State shall be
4247	4247	4 generated by cost-effective clean coal facilities. For
4248	4248	5 purposes of this subsection (d), "cost-effective" means
4249	4249	6 that the expenditures pursuant to such sourcing agreements
4250	4250	7 do not cause the limit stated in paragraph (2) of this
4251	4251	8 subsection (d) to be exceeded and do not exceed cost-based
4252	4252	9 benchmarks, which shall be developed to assess all
4253	4253	10 expenditures pursuant to such sourcing agreements covering
4254	4254	11 electricity generated by clean coal facilities, other than
4255	4255	12 the initial clean coal facility, by the procurement
4256	4256	13 administrator, in consultation with the Commission staff,
4257	4257	14 Agency staff, and the procurement monitor and shall be
4258	4258	15 subject to Commission review and approval.
4259	4259	16 A utility party to a sourcing agreement shall
4260	4260	17 immediately retire any emission credits that it receives
4261	4261	18 in connection with the electricity covered by such
4262	4262	19 agreement.
4263	4263	20 Utilities shall maintain adequate records documenting
4264	4264	21 the purchases under the sourcing agreement to comply with
4265	4265	22 this subsection (d) and shall file an accounting with the
4266	4266	23 load forecast that must be filed with the Agency by July 15
4267	4267	24 of each year, in accordance with subsection (d) of Section
4268	4268	25 16-111.5 of the Public Utilities Act.
4269	4269	26 A utility shall be deemed to have complied with the
4270	4270
4271	4271
4272	4272
4273	4273
4274	4274
4275	4275	HB2563 - 118 - LRB103 29504 AMQ 55899 b
4276	4276
4277	4277
4278	4278	HB2563- 119 -LRB103 29504 AMQ 55899 b HB2563 - 119 - LRB103 29504 AMQ 55899 b
4279	4279	HB2563 - 119 - LRB103 29504 AMQ 55899 b
4280	4280	1 clean coal portfolio standard specified in this subsection
4281	4281	2 (d) if the utility enters into a sourcing agreement as
4282	4282	3 required by this subsection (d).
4283	4283	4 (2) For purposes of this subsection (d), the required
4284	4284	5 execution of sourcing agreements with the initial clean
4285	4285	6 coal facility for a particular year shall be measured as a
4286	4286	7 percentage of the actual amount of electricity
4287	4287	8 (megawatt-hours) supplied by the electric utility to
4288	4288	9 eligible retail customers in the planning year ending
4289	4289	10 immediately prior to the agreement's execution. For
4290	4290	11 purposes of this subsection (d), the amount paid per
4291	4291	12 kilowatthour means the total amount paid for electric
4292	4292	13 service expressed on a per kilowatthour basis. For
4293	4293	14 purposes of this subsection (d), the total amount paid for
4294	4294	15 electric service includes without limitation amounts paid
4295	4295	16 for supply, transmission, distribution, surcharges and
4296	4296	17 add-on taxes.
4297	4297	18 Notwithstanding the requirements of this subsection
4298	4298	19 (d), the total amount paid under sourcing agreements with
4299	4299	20 clean coal facilities pursuant to the procurement plan for
4300	4300	21 any given year shall be reduced by an amount necessary to
4301	4301	22 limit the annual estimated average net increase due to the
4302	4302	23 costs of these resources included in the amounts paid by
4303	4303	24 eligible retail customers in connection with electric
4304	4304	25 service to:
4305	4305	26 (A) in 2010, no more than 0.5% of the amount paid
4306	4306
4307	4307
4308	4308
4309	4309
4310	4310
4311	4311	HB2563 - 119 - LRB103 29504 AMQ 55899 b
4312	4312
4313	4313
4314	4314	HB2563- 120 -LRB103 29504 AMQ 55899 b HB2563 - 120 - LRB103 29504 AMQ 55899 b
4315	4315	HB2563 - 120 - LRB103 29504 AMQ 55899 b
4316	4316	1 per kilowatthour by those customers during the year
4317	4317	2 ending May 31, 2009;
4318	4318	3 (B) in 2011, the greater of an additional 0.5% of
4319	4319	4 the amount paid per kilowatthour by those customers
4320	4320	5 during the year ending May 31, 2010 or 1% of the amount
4321	4321	6 paid per kilowatthour by those customers during the
4322	4322	7 year ending May 31, 2009;
4323	4323	8 (C) in 2012, the greater of an additional 0.5% of
4324	4324	9 the amount paid per kilowatthour by those customers
4325	4325	10 during the year ending May 31, 2011 or 1.5% of the
4326	4326	11 amount paid per kilowatthour by those customers during
4327	4327	12 the year ending May 31, 2009;
4328	4328	13 (D) in 2013, the greater of an additional 0.5% of
4329	4329	14 the amount paid per kilowatthour by those customers
4330	4330	15 during the year ending May 31, 2012 or 2% of the amount
4331	4331	16 paid per kilowatthour by those customers during the
4332	4332	17 year ending May 31, 2009; and
4333	4333	18 (E) thereafter, the total amount paid under
4334	4334	19 sourcing agreements with clean coal facilities
4335	4335	20 pursuant to the procurement plan for any single year
4336	4336	21 shall be reduced by an amount necessary to limit the
4337	4337	22 estimated average net increase due to the cost of
4338	4338	23 these resources included in the amounts paid by
4339	4339	24 eligible retail customers in connection with electric
4340	4340	25 service to no more than the greater of (i) 2.015% of
4341	4341	26 the amount paid per kilowatthour by those customers
4342	4342
4343	4343
4344	4344
4345	4345
4346	4346
4347	4347	HB2563 - 120 - LRB103 29504 AMQ 55899 b
4348	4348
4349	4349
4350	4350	HB2563- 121 -LRB103 29504 AMQ 55899 b HB2563 - 121 - LRB103 29504 AMQ 55899 b
4351	4351	HB2563 - 121 - LRB103 29504 AMQ 55899 b
4352	4352	1 during the year ending May 31, 2009 or (ii) the
4353	4353	2 incremental amount per kilowatthour paid for these
4354	4354	3 resources in 2013. These requirements may be altered
4355	4355	4 only as provided by statute.
4356	4356	5 No later than June 30, 2015, the Commission shall
4357	4357	6 review the limitation on the total amount paid under
4358	4358	7 sourcing agreements, if any, with clean coal facilities
4359	4359	8 pursuant to this subsection (d) and report to the General
4360	4360	9 Assembly its findings as to whether that limitation unduly
4361	4361	10 constrains the amount of electricity generated by
4362	4362	11 cost-effective clean coal facilities that is covered by
4363	4363	12 sourcing agreements.
4364	4364	13 (3) Initial clean coal facility. In order to promote
4365	4365	14 development of clean coal facilities in Illinois, each
4366	4366	15 electric utility subject to this Section shall execute a
4367	4367	16 sourcing agreement to source electricity from a proposed
4368	4368	17 clean coal facility in Illinois (the "initial clean coal
4369	4369	18 facility") that will have a nameplate capacity of at least
4370	4370	19 500 MW when commercial operation commences, that has a
4371	4371	20 final Clean Air Act permit on June 1, 2009 (the effective
4372	4372	21 date of Public Act 95-1027), and that will meet the
4373	4373	22 definition of clean coal facility in Section 1-10 of this
4374	4374	23 Act when commercial operation commences. The sourcing
4375	4375	24 agreements with this initial clean coal facility shall be
4376	4376	25 subject to both approval of the initial clean coal
4377	4377	26 facility by the General Assembly and satisfaction of the
4378	4378
4379	4379
4380	4380
4381	4381
4382	4382
4383	4383	HB2563 - 121 - LRB103 29504 AMQ 55899 b
4384	4384
4385	4385
4386	4386	HB2563- 122 -LRB103 29504 AMQ 55899 b HB2563 - 122 - LRB103 29504 AMQ 55899 b
4387	4387	HB2563 - 122 - LRB103 29504 AMQ 55899 b
4388	4388	1 requirements of paragraph (4) of this subsection (d) and
4389	4389	2 shall be executed within 90 days after any such approval
4390	4390	3 by the General Assembly. The Agency and the Commission
4391	4391	4 shall have authority to inspect all books and records
4392	4392	5 associated with the initial clean coal facility during the
4393	4393	6 term of such a sourcing agreement. A utility's sourcing
4394	4394	7 agreement for electricity produced by the initial clean
4395	4395	8 coal facility shall include:
4396	4396	9 (A) a formula contractual price (the "contract
4397	4397	10 price") approved pursuant to paragraph (4) of this
4398	4398	11 subsection (d), which shall:
4399	4399	12 (i) be determined using a cost of service
4400	4400	13 methodology employing either a level or deferred
4401	4401	14 capital recovery component, based on a capital
4402	4402	15 structure consisting of 45% equity and 55% debt,
4403	4403	16 and a return on equity as may be approved by the
4404	4404	17 Federal Energy Regulatory Commission, which in any
4405	4405	18 case may not exceed the lower of 11.5% or the rate
4406	4406	19 of return approved by the General Assembly
4407	4407	20 pursuant to paragraph (4) of this subsection (d);
4408	4408	21 and
4409	4409	22 (ii) provide that all miscellaneous net
4410	4410	23 revenue, including but not limited to net revenue
4411	4411	24 from the sale of emission allowances, if any,
4412	4412	25 substitute natural gas, if any, grants or other
4413	4413	26 support provided by the State of Illinois or the
4414	4414
4415	4415
4416	4416
4417	4417
4418	4418
4419	4419	HB2563 - 122 - LRB103 29504 AMQ 55899 b
4420	4420
4421	4421
4422	4422	HB2563- 123 -LRB103 29504 AMQ 55899 b HB2563 - 123 - LRB103 29504 AMQ 55899 b
4423	4423	HB2563 - 123 - LRB103 29504 AMQ 55899 b
4424	4424	1 United States Government, firm transmission
4425	4425	2 rights, if any, by-products produced by the
4426	4426	3 facility, energy or capacity derived from the
4427	4427	4 facility and not covered by a sourcing agreement
4428	4428	5 pursuant to paragraph (3) of this subsection (d)
4429	4429	6 or item (5) of subsection (d) of Section 16-115 of
4430	4430	7 the Public Utilities Act, whether generated from
4431	4431	8 the synthesis gas derived from coal, from SNG, or
4432	4432	9 from natural gas, shall be credited against the
4433	4433	10 revenue requirement for this initial clean coal
4434	4434	11 facility;
4435	4435	12 (B) power purchase provisions, which shall:
4436	4436	13 (i) provide that the utility party to such
4437	4437	14 sourcing agreement shall pay the contract price
4438	4438	15 for electricity delivered under such sourcing
4439	4439	16 agreement;
4440	4440	17 (ii) require delivery of electricity to the
4441	4441	18 regional transmission organization market of the
4442	4442	19 utility that is party to such sourcing agreement;
4443	4443	20 (iii) require the utility party to such
4444	4444	21 sourcing agreement to buy from the initial clean
4445	4445	22 coal facility in each hour an amount of energy
4446	4446	23 equal to all clean coal energy made available from
4447	4447	24 the initial clean coal facility during such hour
4448	4448	25 times a fraction, the numerator of which is such
4449	4449	26 utility's retail market sales of electricity
4450	4450
4451	4451
4452	4452
4453	4453
4454	4454
4455	4455	HB2563 - 123 - LRB103 29504 AMQ 55899 b
4456	4456
4457	4457
4458	4458	HB2563- 124 -LRB103 29504 AMQ 55899 b HB2563 - 124 - LRB103 29504 AMQ 55899 b
4459	4459	HB2563 - 124 - LRB103 29504 AMQ 55899 b
4460	4460	1 (expressed in kilowatthours sold) in the State
4461	4461	2 during the prior calendar month and the
4462	4462	3 denominator of which is the total retail market
4463	4463	4 sales of electricity (expressed in kilowatthours
4464	4464	5 sold) in the State by utilities during such prior
4465	4465	6 month and the sales of electricity (expressed in
4466	4466	7 kilowatthours sold) in the State by alternative
4467	4467	8 retail electric suppliers during such prior month
4468	4468	9 that are subject to the requirements of this
4469	4469	10 subsection (d) and paragraph (5) of subsection (d)
4470	4470	11 of Section 16-115 of the Public Utilities Act,
4471	4471	12 provided that the amount purchased by the utility
4472	4472	13 in any year will be limited by paragraph (2) of
4473	4473	14 this subsection (d); and
4474	4474	15 (iv) be considered pre-existing contracts in
4475	4475	16 such utility's procurement plans for eligible
4476	4476	17 retail customers;
4477	4477	18 (C) contract for differences provisions, which
4478	4478	19 shall:
4479	4479	20 (i) require the utility party to such sourcing
4480	4480	21 agreement to contract with the initial clean coal
4481	4481	22 facility in each hour with respect to an amount of
4482	4482	23 energy equal to all clean coal energy made
4483	4483	24 available from the initial clean coal facility
4484	4484	25 during such hour times a fraction, the numerator
4485	4485	26 of which is such utility's retail market sales of
4486	4486
4487	4487
4488	4488
4489	4489
4490	4490
4491	4491	HB2563 - 124 - LRB103 29504 AMQ 55899 b
4492	4492
4493	4493
4494	4494	HB2563- 125 -LRB103 29504 AMQ 55899 b HB2563 - 125 - LRB103 29504 AMQ 55899 b
4495	4495	HB2563 - 125 - LRB103 29504 AMQ 55899 b
4496	4496	1 electricity (expressed in kilowatthours sold) in
4497	4497	2 the utility's service territory in the State
4498	4498	3 during the prior calendar month and the
4499	4499	4 denominator of which is the total retail market
4500	4500	5 sales of electricity (expressed in kilowatthours
4501	4501	6 sold) in the State by utilities during such prior
4502	4502	7 month and the sales of electricity (expressed in
4503	4503	8 kilowatthours sold) in the State by alternative
4504	4504	9 retail electric suppliers during such prior month
4505	4505	10 that are subject to the requirements of this
4506	4506	11 subsection (d) and paragraph (5) of subsection (d)
4507	4507	12 of Section 16-115 of the Public Utilities Act,
4508	4508	13 provided that the amount paid by the utility in
4509	4509	14 any year will be limited by paragraph (2) of this
4510	4510	15 subsection (d);
4511	4511	16 (ii) provide that the utility's payment
4512	4512	17 obligation in respect of the quantity of
4513	4513	18 electricity determined pursuant to the preceding
4514	4514	19 clause (i) shall be limited to an amount equal to
4515	4515	20 (1) the difference between the contract price
4516	4516	21 determined pursuant to subparagraph (A) of
4517	4517	22 paragraph (3) of this subsection (d) and the
4518	4518	23 day-ahead price for electricity delivered to the
4519	4519	24 regional transmission organization market of the
4520	4520	25 utility that is party to such sourcing agreement
4521	4521	26 (or any successor delivery point at which such
4522	4522
4523	4523
4524	4524
4525	4525
4526	4526
4527	4527	HB2563 - 125 - LRB103 29504 AMQ 55899 b
4528	4528
4529	4529
4530	4530	HB2563- 126 -LRB103 29504 AMQ 55899 b HB2563 - 126 - LRB103 29504 AMQ 55899 b
4531	4531	HB2563 - 126 - LRB103 29504 AMQ 55899 b
4532	4532	1 utility's supply obligations are financially
4533	4533	2 settled on an hourly basis) (the "reference
4534	4534	3 price") on the day preceding the day on which the
4535	4535	4 electricity is delivered to the initial clean coal
4536	4536	5 facility busbar, multiplied by (2) the quantity of
4537	4537	6 electricity determined pursuant to the preceding
4538	4538	7 clause (i); and
4539	4539	8 (iii) not require the utility to take physical
4540	4540	9 delivery of the electricity produced by the
4541	4541	10 facility;
4542	4542	11 (D) general provisions, which shall:
4543	4543	12 (i) specify a term of no more than 30 years,
4544	4544	13 commencing on the commercial operation date of the
4545	4545	14 facility;
4546	4546	15 (ii) provide that utilities shall maintain
4547	4547	16 adequate records documenting purchases under the
4548	4548	17 sourcing agreements entered into to comply with
4549	4549	18 this subsection (d) and shall file an accounting
4550	4550	19 with the load forecast that must be filed with the
4551	4551	20 Agency by July 15 of each year, in accordance with
4552	4552	21 subsection (d) of Section 16-111.5 of the Public
4553	4553	22 Utilities Act;
4554	4554	23 (iii) provide that all costs associated with
4555	4555	24 the initial clean coal facility will be
4556	4556	25 periodically reported to the Federal Energy
4557	4557	26 Regulatory Commission and to purchasers in
4558	4558
4559	4559
4560	4560
4561	4561
4562	4562
4563	4563	HB2563 - 126 - LRB103 29504 AMQ 55899 b
4564	4564
4565	4565
4566	4566	HB2563- 127 -LRB103 29504 AMQ 55899 b HB2563 - 127 - LRB103 29504 AMQ 55899 b
4567	4567	HB2563 - 127 - LRB103 29504 AMQ 55899 b
4568	4568	1 accordance with applicable laws governing
4569	4569	2 cost-based wholesale power contracts;
4570	4570	3 (iv) permit the Illinois Power Agency to
4571	4571	4 assume ownership of the initial clean coal
4572	4572	5 facility, without monetary consideration and
4573	4573	6 otherwise on reasonable terms acceptable to the
4574	4574	7 Agency, if the Agency so requests no less than 3
4575	4575	8 years prior to the end of the stated contract
4576	4576	9 term;
4577	4577	10 (v) require the owner of the initial clean
4578	4578	11 coal facility to provide documentation to the
4579	4579	12 Commission each year, starting in the facility's
4580	4580	13 first year of commercial operation, accurately
4581	4581	14 reporting the quantity of carbon emissions from
4582	4582	15 the facility that have been captured and
4583	4583	16 sequestered and report any quantities of carbon
4584	4584	17 released from the site or sites at which carbon
4585	4585	18 emissions were sequestered in prior years, based
4586	4586	19 on continuous monitoring of such sites. If, in any
4587	4587	20 year after the first year of commercial operation,
4588	4588	21 the owner of the facility fails to demonstrate
4589	4589	22 that the initial clean coal facility captured and
4590	4590	23 sequestered at least 50% of the total carbon
4591	4591	24 emissions that the facility would otherwise emit
4592	4592	25 or that sequestration of emissions from prior
4593	4593	26 years has failed, resulting in the release of
4594	4594
4595	4595
4596	4596
4597	4597
4598	4598
4599	4599	HB2563 - 127 - LRB103 29504 AMQ 55899 b
4600	4600
4601	4601
4602	4602	HB2563- 128 -LRB103 29504 AMQ 55899 b HB2563 - 128 - LRB103 29504 AMQ 55899 b
4603	4603	HB2563 - 128 - LRB103 29504 AMQ 55899 b
4604	4604	1 carbon dioxide into the atmosphere, the owner of
4605	4605	2 the facility must offset excess emissions. Any
4606	4606	3 such carbon offsets must be permanent, additional,
4607	4607	4 verifiable, real, located within the State of
4608	4608	5 Illinois, and legally and practicably enforceable.
4609	4609	6 The cost of such offsets for the facility that are
4610	4610	7 not recoverable shall not exceed $15 million in
4611	4611	8 any given year. No costs of any such purchases of
4612	4612	9 carbon offsets may be recovered from a utility or
4613	4613	10 its customers. All carbon offsets purchased for
4614	4614	11 this purpose and any carbon emission credits
4615	4615	12 associated with sequestration of carbon from the
4616	4616	13 facility must be permanently retired. The initial
4617	4617	14 clean coal facility shall not forfeit its
4618	4618	15 designation as a clean coal facility if the
4619	4619	16 facility fails to fully comply with the applicable
4620	4620	17 carbon sequestration requirements in any given
4621	4621	18 year, provided the requisite offsets are
4622	4622	19 purchased. However, the Attorney General, on
4623	4623	20 behalf of the People of the State of Illinois, may
4624	4624	21 specifically enforce the facility's sequestration
4625	4625	22 requirement and the other terms of this contract
4626	4626	23 provision. Compliance with the sequestration
4627	4627	24 requirements and offset purchase requirements
4628	4628	25 specified in paragraph (3) of this subsection (d)
4629	4629	26 shall be reviewed annually by an independent
4630	4630
4631	4631
4632	4632
4633	4633
4634	4634
4635	4635	HB2563 - 128 - LRB103 29504 AMQ 55899 b
4636	4636
4637	4637
4638	4638	HB2563- 129 -LRB103 29504 AMQ 55899 b HB2563 - 129 - LRB103 29504 AMQ 55899 b
4639	4639	HB2563 - 129 - LRB103 29504 AMQ 55899 b
4640	4640	1 expert retained by the owner of the initial clean
4641	4641	2 coal facility, with the advance written approval
4642	4642	3 of the Attorney General. The Commission may, in
4643	4643	4 the course of the review specified in item (vii),
4644	4644	5 reduce the allowable return on equity for the
4645	4645	6 facility if the facility willfully fails to comply
4646	4646	7 with the carbon capture and sequestration
4647	4647	8 requirements set forth in this item (v);
4648	4648	9 (vi) include limits on, and accordingly
4649	4649	10 provide for modification of, the amount the
4650	4650	11 utility is required to source under the sourcing
4651	4651	12 agreement consistent with paragraph (2) of this
4652	4652	13 subsection (d);
4653	4653	14 (vii) require Commission review: (1) to
4654	4654	15 determine the justness, reasonableness, and
4655	4655	16 prudence of the inputs to the formula referenced
4656	4656	17 in subparagraphs (A)(i) through (A)(iii) of
4657	4657	18 paragraph (3) of this subsection (d), prior to an
4658	4658	19 adjustment in those inputs including, without
4659	4659	20 limitation, the capital structure and return on
4660	4660	21 equity, fuel costs, and other operations and
4661	4661	22 maintenance costs and (2) to approve the costs to
4662	4662	23 be passed through to customers under the sourcing
4663	4663	24 agreement by which the utility satisfies its
4664	4664	25 statutory obligations. Commission review shall
4665	4665	26 occur no less than every 3 years, regardless of
4666	4666
4667	4667
4668	4668
4669	4669
4670	4670
4671	4671	HB2563 - 129 - LRB103 29504 AMQ 55899 b
4672	4672
4673	4673
4674	4674	HB2563- 130 -LRB103 29504 AMQ 55899 b HB2563 - 130 - LRB103 29504 AMQ 55899 b
4675	4675	HB2563 - 130 - LRB103 29504 AMQ 55899 b
4676	4676	1 whether any adjustments have been proposed, and
4677	4677	2 shall be completed within 9 months;
4678	4678	3 (viii) limit the utility's obligation to such
4679	4679	4 amount as the utility is allowed to recover
4680	4680	5 through tariffs filed with the Commission,
4681	4681	6 provided that neither the clean coal facility nor
4682	4682	7 the utility waives any right to assert federal
4683	4683	8 pre-emption or any other argument in response to a
4684	4684	9 purported disallowance of recovery costs;
4685	4685	10 (ix) limit the utility's or alternative retail
4686	4686	11 electric supplier's obligation to incur any
4687	4687	12 liability until such time as the facility is in
4688	4688	13 commercial operation and generating power and
4689	4689	14 energy and such power and energy is being
4690	4690	15 delivered to the facility busbar;
4691	4691	16 (x) provide that the owner or owners of the
4692	4692	17 initial clean coal facility, which is the
4693	4693	18 counterparty to such sourcing agreement, shall
4694	4694	19 have the right from time to time to elect whether
4695	4695	20 the obligations of the utility party thereto shall
4696	4696	21 be governed by the power purchase provisions or
4697	4697	22 the contract for differences provisions;
4698	4698	23 (xi) append documentation showing that the
4699	4699	24 formula rate and contract, insofar as they relate
4700	4700	25 to the power purchase provisions, have been
4701	4701	26 approved by the Federal Energy Regulatory
4702	4702
4703	4703
4704	4704
4705	4705
4706	4706
4707	4707	HB2563 - 130 - LRB103 29504 AMQ 55899 b
4708	4708
4709	4709
4710	4710	HB2563- 131 -LRB103 29504 AMQ 55899 b HB2563 - 131 - LRB103 29504 AMQ 55899 b
4711	4711	HB2563 - 131 - LRB103 29504 AMQ 55899 b
4712	4712	1 Commission pursuant to Section 205 of the Federal
4713	4713	2 Power Act;
4714	4714	3 (xii) provide that any changes to the terms of
4715	4715	4 the contract, insofar as such changes relate to
4716	4716	5 the power purchase provisions, are subject to
4717	4717	6 review under the public interest standard applied
4718	4718	7 by the Federal Energy Regulatory Commission
4719	4719	8 pursuant to Sections 205 and 206 of the Federal
4720	4720	9 Power Act; and
4721	4721	10 (xiii) conform with customary lender
4722	4722	11 requirements in power purchase agreements used as
4723	4723	12 the basis for financing non-utility generators.
4724	4724	13 (4) Effective date of sourcing agreements with the
4725	4725	14 initial clean coal facility. Any proposed sourcing
4726	4726	15 agreement with the initial clean coal facility shall not
4727	4727	16 become effective unless the following reports are prepared
4728	4728	17 and submitted and authorizations and approvals obtained:
4729	4729	18 (i) Facility cost report. The owner of the initial
4730	4730	19 clean coal facility shall submit to the Commission,
4731	4731	20 the Agency, and the General Assembly a front-end
4732	4732	21 engineering and design study, a facility cost report,
4733	4733	22 method of financing (including but not limited to
4734	4734	23 structure and associated costs), and an operating and
4735	4735	24 maintenance cost quote for the facility (collectively
4736	4736	25 "facility cost report"), which shall be prepared in
4737	4737	26 accordance with the requirements of this paragraph (4)
4738	4738
4739	4739
4740	4740
4741	4741
4742	4742
4743	4743	HB2563 - 131 - LRB103 29504 AMQ 55899 b
4744	4744
4745	4745
4746	4746	HB2563- 132 -LRB103 29504 AMQ 55899 b HB2563 - 132 - LRB103 29504 AMQ 55899 b
4747	4747	HB2563 - 132 - LRB103 29504 AMQ 55899 b
4748	4748	1 of subsection (d) of this Section, and shall provide
4749	4749	2 the Commission and the Agency access to the work
4750	4750	3 papers, relied upon documents, and any other backup
4751	4751	4 documentation related to the facility cost report.
4752	4752	5 (ii) Commission report. Within 6 months following
4753	4753	6 receipt of the facility cost report, the Commission,
4754	4754	7 in consultation with the Agency, shall submit a report
4755	4755	8 to the General Assembly setting forth its analysis of
4756	4756	9 the facility cost report. Such report shall include,
4757	4757	10 but not be limited to, a comparison of the costs
4758	4758	11 associated with electricity generated by the initial
4759	4759	12 clean coal facility to the costs associated with
4760	4760	13 electricity generated by other types of generation
4761	4761	14 facilities, an analysis of the rate impacts on
4762	4762	15 residential and small business customers over the life
4763	4763	16 of the sourcing agreements, and an analysis of the
4764	4764	17 likelihood that the initial clean coal facility will
4765	4765	18 commence commercial operation by and be delivering
4766	4766	19 power to the facility's busbar by 2016. To assist in
4767	4767	20 the preparation of its report, the Commission, in
4768	4768	21 consultation with the Agency, may hire one or more
4769	4769	22 experts or consultants, the costs of which shall be
4770	4770	23 paid for by the owner of the initial clean coal
4771	4771	24 facility. The Commission and Agency may begin the
4772	4772	25 process of selecting such experts or consultants prior
4773	4773	26 to receipt of the facility cost report.
4774	4774
4775	4775
4776	4776
4777	4777
4778	4778
4779	4779	HB2563 - 132 - LRB103 29504 AMQ 55899 b
4780	4780
4781	4781
4782	4782	HB2563- 133 -LRB103 29504 AMQ 55899 b HB2563 - 133 - LRB103 29504 AMQ 55899 b
4783	4783	HB2563 - 133 - LRB103 29504 AMQ 55899 b
4784	4784	1 (iii) General Assembly approval. The proposed
4785	4785	2 sourcing agreements shall not take effect unless,
4786	4786	3 based on the facility cost report and the Commission's
4787	4787	4 report, the General Assembly enacts authorizing
4788	4788	5 legislation approving (A) the projected price, stated
4789	4789	6 in cents per kilowatthour, to be charged for
4790	4790	7 electricity generated by the initial clean coal
4791	4791	8 facility, (B) the projected impact on residential and
4792	4792	9 small business customers' bills over the life of the
4793	4793	10 sourcing agreements, and (C) the maximum allowable
4794	4794	11 return on equity for the project; and
4795	4795	12 (iv) Commission review. If the General Assembly
4796	4796	13 enacts authorizing legislation pursuant to
4797	4797	14 subparagraph (iii) approving a sourcing agreement, the
4798	4798	15 Commission shall, within 90 days of such enactment,
4799	4799	16 complete a review of such sourcing agreement. During
4800	4800	17 such time period, the Commission shall implement any
4801	4801	18 directive of the General Assembly, resolve any
4802	4802	19 disputes between the parties to the sourcing agreement
4803	4803	20 concerning the terms of such agreement, approve the
4804	4804	21 form of such agreement, and issue an order finding
4805	4805	22 that the sourcing agreement is prudent and reasonable.
4806	4806	23 The facility cost report shall be prepared as follows:
4807	4807	24 (A) The facility cost report shall be prepared by
4808	4808	25 duly licensed engineering and construction firms
4809	4809	26 detailing the estimated capital costs payable to one
4810	4810
4811	4811
4812	4812
4813	4813
4814	4814
4815	4815	HB2563 - 133 - LRB103 29504 AMQ 55899 b
4816	4816
4817	4817
4818	4818	HB2563- 134 -LRB103 29504 AMQ 55899 b HB2563 - 134 - LRB103 29504 AMQ 55899 b
4819	4819	HB2563 - 134 - LRB103 29504 AMQ 55899 b
4820	4820	1 or more contractors or suppliers for the engineering,
4821	4821	2 procurement and construction of the components
4822	4822	3 comprising the initial clean coal facility and the
4823	4823	4 estimated costs of operation and maintenance of the
4824	4824	5 facility. The facility cost report shall include:
4825	4825	6 (i) an estimate of the capital cost of the
4826	4826	7 core plant based on one or more front end
4827	4827	8 engineering and design studies for the
4828	4828	9 gasification island and related facilities. The
4829	4829	10 core plant shall include all civil, structural,
4830	4830	11 mechanical, electrical, control, and safety
4831	4831	12 systems.
4832	4832	13 (ii) an estimate of the capital cost of the
4833	4833	14 balance of the plant, including any capital costs
4834	4834	15 associated with sequestration of carbon dioxide
4835	4835	16 emissions and all interconnects and interfaces
4836	4836	17 required to operate the facility, such as
4837	4837	18 transmission of electricity, construction or
4838	4838	19 backfeed power supply, pipelines to transport
4839	4839	20 substitute natural gas or carbon dioxide, potable
4840	4840	21 water supply, natural gas supply, water supply,
4841	4841	22 water discharge, landfill, access roads, and coal
4842	4842	23 delivery.
4843	4843	24 The quoted construction costs shall be expressed
4844	4844	25 in nominal dollars as of the date that the quote is
4845	4845	26 prepared and shall include capitalized financing costs
4846	4846
4847	4847
4848	4848
4849	4849
4850	4850
4851	4851	HB2563 - 134 - LRB103 29504 AMQ 55899 b
4852	4852
4853	4853
4854	4854	HB2563- 135 -LRB103 29504 AMQ 55899 b HB2563 - 135 - LRB103 29504 AMQ 55899 b
4855	4855	HB2563 - 135 - LRB103 29504 AMQ 55899 b
4856	4856	1 during construction, taxes, insurance, and other
4857	4857	2 owner's costs, and an assumed escalation in materials
4858	4858	3 and labor beyond the date as of which the construction
4859	4859	4 cost quote is expressed.
4860	4860	5 (B) The front end engineering and design study for
4861	4861	6 the gasification island and the cost study for the
4862	4862	7 balance of plant shall include sufficient design work
4863	4863	8 to permit quantification of major categories of
4864	4864	9 materials, commodities and labor hours, and receipt of
4865	4865	10 quotes from vendors of major equipment required to
4866	4866	11 construct and operate the clean coal facility.
4867	4867	12 (C) The facility cost report shall also include an
4868	4868	13 operating and maintenance cost quote that will provide
4869	4869	14 the estimated cost of delivered fuel, personnel,
4870	4870	15 maintenance contracts, chemicals, catalysts,
4871	4871	16 consumables, spares, and other fixed and variable
4872	4872	17 operations and maintenance costs. The delivered fuel
4873	4873	18 cost estimate will be provided by a recognized third
4874	4874	19 party expert or experts in the fuel and transportation
4875	4875	20 industries. The balance of the operating and
4876	4876	21 maintenance cost quote, excluding delivered fuel
4877	4877	22 costs, will be developed based on the inputs provided
4878	4878	23 by duly licensed engineering and construction firms
4879	4879	24 performing the construction cost quote, potential
4880	4880	25 vendors under long-term service agreements and plant
4881	4881	26 operating agreements, or recognized third party plant
4882	4882
4883	4883
4884	4884
4885	4885
4886	4886
4887	4887	HB2563 - 135 - LRB103 29504 AMQ 55899 b
4888	4888
4889	4889
4890	4890	HB2563- 136 -LRB103 29504 AMQ 55899 b HB2563 - 136 - LRB103 29504 AMQ 55899 b
4891	4891	HB2563 - 136 - LRB103 29504 AMQ 55899 b
4892	4892	1 operator or operators.
4893	4893	2 The operating and maintenance cost quote
4894	4894	3 (including the cost of the front end engineering and
4895	4895	4 design study) shall be expressed in nominal dollars as
4896	4896	5 of the date that the quote is prepared and shall
4897	4897	6 include taxes, insurance, and other owner's costs, and
4898	4898	7 an assumed escalation in materials and labor beyond
4899	4899	8 the date as of which the operating and maintenance
4900	4900	9 cost quote is expressed.
4901	4901	10 (D) The facility cost report shall also include an
4902	4902	11 analysis of the initial clean coal facility's ability
4903	4903	12 to deliver power and energy into the applicable
4904	4904	13 regional transmission organization markets and an
4905	4905	14 analysis of the expected capacity factor for the
4906	4906	15 initial clean coal facility.
4907	4907	16 (E) Amounts paid to third parties unrelated to the
4908	4908	17 owner or owners of the initial clean coal facility to
4909	4909	18 prepare the core plant construction cost quote,
4910	4910	19 including the front end engineering and design study,
4911	4911	20 and the operating and maintenance cost quote will be
4912	4912	21 reimbursed through Coal Development Bonds.
4913	4913	22 (5) Re-powering and retrofitting coal-fired power
4914	4914	23 plants previously owned by Illinois utilities to qualify
4915	4915	24 as clean coal facilities. During the 2009 procurement
4916	4916	25 planning process and thereafter, the Agency and the
4917	4917	26 Commission shall consider sourcing agreements covering
4918	4918
4919	4919
4920	4920
4921	4921
4922	4922
4923	4923	HB2563 - 136 - LRB103 29504 AMQ 55899 b
4924	4924
4925	4925
4926	4926	HB2563- 137 -LRB103 29504 AMQ 55899 b HB2563 - 137 - LRB103 29504 AMQ 55899 b
4927	4927	HB2563 - 137 - LRB103 29504 AMQ 55899 b
4928	4928	1 electricity generated by power plants that were previously
4929	4929	2 owned by Illinois utilities and that have been or will be
4930	4930	3 converted into clean coal facilities, as defined by
4931	4931	4 Section 1-10 of this Act. Pursuant to such procurement
4932	4932	5 planning process, the owners of such facilities may
4933	4933	6 propose to the Agency sourcing agreements with utilities
4934	4934	7 and alternative retail electric suppliers required to
4935	4935	8 comply with subsection (d) of this Section and item (5) of
4936	4936	9 subsection (d) of Section 16-115 of the Public Utilities
4937	4937	10 Act, covering electricity generated by such facilities. In
4938	4938	11 the case of sourcing agreements that are power purchase
4939	4939	12 agreements, the contract price for electricity sales shall
4940	4940	13 be established on a cost of service basis. In the case of
4941	4941	14 sourcing agreements that are contracts for differences,
4942	4942	15 the contract price from which the reference price is
4943	4943	16 subtracted shall be established on a cost of service
4944	4944	17 basis. The Agency and the Commission may approve any such
4945	4945	18 utility sourcing agreements that do not exceed cost-based
4946	4946	19 benchmarks developed by the procurement administrator, in
4947	4947	20 consultation with the Commission staff, Agency staff and
4948	4948	21 the procurement monitor, subject to Commission review and
4949	4949	22 approval. The Commission shall have authority to inspect
4950	4950	23 all books and records associated with these clean coal
4951	4951	24 facilities during the term of any such contract.
4952	4952	25 (6) Costs incurred under this subsection (d) or
4953	4953	26 pursuant to a contract entered into under this subsection
4954	4954
4955	4955
4956	4956
4957	4957
4958	4958
4959	4959	HB2563 - 137 - LRB103 29504 AMQ 55899 b
4960	4960
4961	4961
4962	4962	HB2563- 138 -LRB103 29504 AMQ 55899 b HB2563 - 138 - LRB103 29504 AMQ 55899 b
4963	4963	HB2563 - 138 - LRB103 29504 AMQ 55899 b
4964	4964	1 (d) shall be deemed prudently incurred and reasonable in
4965	4965	2 amount and the electric utility shall be entitled to full
4966	4966	3 cost recovery pursuant to the tariffs filed with the
4967	4967	4 Commission.
4968	4968	5 (d-5) Zero emission standard.
4969	4969	6 (1) Beginning with the delivery year commencing on
4970	4970	7 June 1, 2017, the Agency shall, for electric utilities
4971	4971	8 that serve at least 100,000 retail customers in this
4972	4972	9 State, procure contracts with zero emission facilities
4973	4973	10 that are reasonably capable of generating cost-effective
4974	4974	11 zero emission credits in an amount approximately equal to
4975	4975	12 16% of the actual amount of electricity delivered by each
4976	4976	13 electric utility to retail customers in the State during
4977	4977	14 calendar year 2014. For an electric utility serving fewer
4978	4978	15 than 100,000 retail customers in this State that
4979	4979	16 requested, under Section 16-111.5 of the Public Utilities
4980	4980	17 Act, that the Agency procure power and energy for all or a
4981	4981	18 portion of the utility's Illinois load for the delivery
4982	4982	19 year commencing June 1, 2016, the Agency shall procure
4983	4983	20 contracts with zero emission facilities that are
4984	4984	21 reasonably capable of generating cost-effective zero
4985	4985	22 emission credits in an amount approximately equal to 16%
4986	4986	23 of the portion of power and energy to be procured by the
4987	4987	24 Agency for the utility. The duration of the contracts
4988	4988	25 procured under this subsection (d-5) shall be for a term
4989	4989	26 of 10 years ending May 31, 2027. The quantity of zero
4990	4990
4991	4991
4992	4992
4993	4993
4994	4994
4995	4995	HB2563 - 138 - LRB103 29504 AMQ 55899 b
4996	4996
4997	4997
4998	4998	HB2563- 139 -LRB103 29504 AMQ 55899 b HB2563 - 139 - LRB103 29504 AMQ 55899 b
4999	4999	HB2563 - 139 - LRB103 29504 AMQ 55899 b
5000	5000	1 emission credits to be procured under the contracts shall
5001	5001	2 be all of the zero emission credits generated by the zero
5002	5002	3 emission facility in each delivery year; however, if the
5003	5003	4 zero emission facility is owned by more than one entity,
5004	5004	5 then the quantity of zero emission credits to be procured
5005	5005	6 under the contracts shall be the amount of zero emission
5006	5006	7 credits that are generated from the portion of the zero
5007	5007	8 emission facility that is owned by the winning supplier.
5008	5008	9 The 16% value identified in this paragraph (1) is the
5009	5009	10 average of the percentage targets in subparagraph (B) of
5010	5010	11 paragraph (1) of subsection (c) of this Section for the 5
5011	5011	12 delivery years beginning June 1, 2017.
5012	5012	13 The procurement process shall be subject to the
5013	5013	14 following provisions:
5014	5014	15 (A) Those zero emission facilities that intend to
5015	5015	16 participate in the procurement shall submit to the
5016	5016	17 Agency the following eligibility information for each
5017	5017	18 zero emission facility on or before the date
5018	5018	19 established by the Agency:
5019	5019	20 (i) the in-service date and remaining useful
5020	5020	21 life of the zero emission facility;
5021	5021	22 (ii) the amount of power generated annually
5022	5022	23 for each of the years 2005 through 2015, and the
5023	5023	24 projected zero emission credits to be generated
5024	5024	25 over the remaining useful life of the zero
5025	5025	26 emission facility, which shall be used to
5026	5026
5027	5027
5028	5028
5029	5029
5030	5030
5031	5031	HB2563 - 139 - LRB103 29504 AMQ 55899 b
5032	5032
5033	5033
5034	5034	HB2563- 140 -LRB103 29504 AMQ 55899 b HB2563 - 140 - LRB103 29504 AMQ 55899 b
5035	5035	HB2563 - 140 - LRB103 29504 AMQ 55899 b
5036	5036	1 determine the capability of each facility;
5037	5037	2 (iii) the annual zero emission facility cost
5038	5038	3 projections, expressed on a per megawatthour
5039	5039	4 basis, over the next 6 delivery years, which shall
5040	5040	5 include the following: operation and maintenance
5041	5041	6 expenses; fully allocated overhead costs, which
5042	5042	7 shall be allocated using the methodology developed
5043	5043	8 by the Institute for Nuclear Power Operations;
5044	5044	9 fuel expenditures; non-fuel capital expenditures;
5045	5045	10 spent fuel expenditures; a return on working
5046	5046	11 capital; the cost of operational and market risks
5047	5047	12 that could be avoided by ceasing operation; and
5048	5048	13 any other costs necessary for continued
5049	5049	14 operations, provided that "necessary" means, for
5050	5050	15 purposes of this item (iii), that the costs could
5051	5051	16 reasonably be avoided only by ceasing operations
5052	5052	17 of the zero emission facility; and
5053	5053	18 (iv) a commitment to continue operating, for
5054	5054	19 the duration of the contract or contracts executed
5055	5055	20 under the procurement held under this subsection
5056	5056	21 (d-5), the zero emission facility that produces
5057	5057	22 the zero emission credits to be procured in the
5058	5058	23 procurement.
5059	5059	24 The information described in item (iii) of this
5060	5060	25 subparagraph (A) may be submitted on a confidential
5061	5061	26 basis and shall be treated and maintained by the
5062	5062
5063	5063
5064	5064
5065	5065
5066	5066
5067	5067	HB2563 - 140 - LRB103 29504 AMQ 55899 b
5068	5068
5069	5069
5070	5070	HB2563- 141 -LRB103 29504 AMQ 55899 b HB2563 - 141 - LRB103 29504 AMQ 55899 b
5071	5071	HB2563 - 141 - LRB103 29504 AMQ 55899 b
5072	5072	1 Agency, the procurement administrator, and the
5073	5073	2 Commission as confidential and proprietary and exempt
5074	5074	3 from disclosure under subparagraphs (a) and (g) of
5075	5075	4 paragraph (1) of Section 7 of the Freedom of
5076	5076	5 Information Act. The Office of Attorney General shall
5077	5077	6 have access to, and maintain the confidentiality of,
5078	5078	7 such information pursuant to Section 6.5 of the
5079	5079	8 Attorney General Act.
5080	5080	9 (B) The price for each zero emission credit
5081	5081	10 procured under this subsection (d-5) for each delivery
5082	5082	11 year shall be in an amount that equals the Social Cost
5083	5083	12 of Carbon, expressed on a price per megawatthour
5084	5084	13 basis. However, to ensure that the procurement remains
5085	5085	14 affordable to retail customers in this State if
5086	5086	15 electricity prices increase, the price in an
5087	5087	16 applicable delivery year shall be reduced below the
5088	5088	17 Social Cost of Carbon by the amount ("Price
5089	5089	18 Adjustment") by which the market price index for the
5090	5090	19 applicable delivery year exceeds the baseline market
5091	5091	20 price index for the consecutive 12-month period ending
5092	5092	21 May 31, 2016. If the Price Adjustment is greater than
5093	5093	22 or equal to the Social Cost of Carbon in an applicable
5094	5094	23 delivery year, then no payments shall be due in that
5095	5095	24 delivery year. The components of this calculation are
5096	5096	25 defined as follows:
5097	5097	26 (i) Social Cost of Carbon: The Social Cost of
5098	5098
5099	5099
5100	5100
5101	5101
5102	5102
5103	5103	HB2563 - 141 - LRB103 29504 AMQ 55899 b
5104	5104
5105	5105
5106	5106	HB2563- 142 -LRB103 29504 AMQ 55899 b HB2563 - 142 - LRB103 29504 AMQ 55899 b
5107	5107	HB2563 - 142 - LRB103 29504 AMQ 55899 b
5108	5108	1 Carbon is $16.50 per megawatthour, which is based
5109	5109	2 on the U.S. Interagency Working Group on Social
5110	5110	3 Cost of Carbon's price in the August 2016
5111	5111	4 Technical Update using a 3% discount rate,
5112	5112	5 adjusted for inflation for each year of the
5113	5113	6 program. Beginning with the delivery year
5114	5114	7 commencing June 1, 2023, the price per
5115	5115	8 megawatthour shall increase by $1 per
5116	5116	9 megawatthour, and continue to increase by an
5117	5117	10 additional $1 per megawatthour each delivery year
5118	5118	11 thereafter.
5119	5119	12 (ii) Baseline market price index: The baseline
5120	5120	13 market price index for the consecutive 12-month
5121	5121	14 period ending May 31, 2016 is $31.40 per
5122	5122	15 megawatthour, which is based on the sum of (aa)
5123	5123	16 the average day-ahead energy price across all
5124	5124	17 hours of such 12-month period at the PJM
5125	5125	18 Interconnection LLC Northern Illinois Hub, (bb)
5126	5126	19 50% multiplied by the Base Residual Auction, or
5127	5127	20 its successor, capacity price for the rest of the
5128	5128	21 RTO zone group determined by PJM Interconnection
5129	5129	22 LLC, divided by 24 hours per day, and (cc) 50%
5130	5130	23 multiplied by the Planning Resource Auction, or
5131	5131	24 its successor, capacity price for Zone 4
5132	5132	25 determined by the Midcontinent Independent System
5133	5133	26 Operator, Inc., divided by 24 hours per day.
5134	5134
5135	5135
5136	5136
5137	5137
5138	5138
5139	5139	HB2563 - 142 - LRB103 29504 AMQ 55899 b
5140	5140
5141	5141
5142	5142	HB2563- 143 -LRB103 29504 AMQ 55899 b HB2563 - 143 - LRB103 29504 AMQ 55899 b
5143	5143	HB2563 - 143 - LRB103 29504 AMQ 55899 b
5144	5144	1 (iii) Market price index: The market price
5145	5145	2 index for a delivery year shall be the sum of
5146	5146	3 projected energy prices and projected capacity
5147	5147	4 prices determined as follows:
5148	5148	5 (aa) Projected energy prices: the
5149	5149	6 projected energy prices for the applicable
5150	5150	7 delivery year shall be calculated once for the
5151	5151	8 year using the forward market price for the
5152	5152	9 PJM Interconnection, LLC Northern Illinois
5153	5153	10 Hub. The forward market price shall be
5154	5154	11 calculated as follows: the energy forward
5155	5155	12 prices for each month of the applicable
5156	5156	13 delivery year averaged for each trade date
5157	5157	14 during the calendar year immediately preceding
5158	5158	15 that delivery year to produce a single energy
5159	5159	16 forward price for the delivery year. The
5160	5160	17 forward market price calculation shall use
5161	5161	18 data published by the Intercontinental
5162	5162	19 Exchange, or its successor.
5163	5163	20 (bb) Projected capacity prices:
5164	5164	21 (I) For the delivery years commencing
5165	5165	22 June 1, 2017, June 1, 2018, and June 1,
5166	5166	23 2019, the projected capacity price shall
5167	5167	24 be equal to the sum of (1) 50% multiplied
5168	5168	25 by the Base Residual Auction, or its
5169	5169	26 successor, price for the rest of the RTO
5170	5170
5171	5171
5172	5172
5173	5173
5174	5174
5175	5175	HB2563 - 143 - LRB103 29504 AMQ 55899 b
5176	5176
5177	5177
5178	5178	HB2563- 144 -LRB103 29504 AMQ 55899 b HB2563 - 144 - LRB103 29504 AMQ 55899 b
5179	5179	HB2563 - 144 - LRB103 29504 AMQ 55899 b
5180	5180	1 zone group as determined by PJM
5181	5181	2 Interconnection LLC, divided by 24 hours
5182	5182	3 per day and, (2) 50% multiplied by the
5183	5183	4 resource auction price determined in the
5184	5184	5 resource auction administered by the
5185	5185	6 Midcontinent Independent System Operator,
5186	5186	7 Inc., in which the largest percentage of
5187	5187	8 load cleared for Local Resource Zone 4,
5188	5188	9 divided by 24 hours per day, and where
5189	5189	10 such price is determined by the
5190	5190	11 Midcontinent Independent System Operator,
5191	5191	12 Inc.
5192	5192	13 (II) For the delivery year commencing
5193	5193	14 June 1, 2020, and each year thereafter,
5194	5194	15 the projected capacity price shall be
5195	5195	16 equal to the sum of (1) 50% multiplied by
5196	5196	17 the Base Residual Auction, or its
5197	5197	18 successor, price for the ComEd zone as
5198	5198	19 determined by PJM Interconnection LLC,
5199	5199	20 divided by 24 hours per day, and (2) 50%
5200	5200	21 multiplied by the resource auction price
5201	5201	22 determined in the resource auction
5202	5202	23 administered by the Midcontinent
5203	5203	24 Independent System Operator, Inc., in
5204	5204	25 which the largest percentage of load
5205	5205	26 cleared for Local Resource Zone 4, divided
5206	5206
5207	5207
5208	5208
5209	5209
5210	5210
5211	5211	HB2563 - 144 - LRB103 29504 AMQ 55899 b
5212	5212
5213	5213
5214	5214	HB2563- 145 -LRB103 29504 AMQ 55899 b HB2563 - 145 - LRB103 29504 AMQ 55899 b
5215	5215	HB2563 - 145 - LRB103 29504 AMQ 55899 b
5216	5216	1 by 24 hours per day, and where such price
5217	5217	2 is determined by the Midcontinent
5218	5218	3 Independent System Operator, Inc.
5219	5219	4 For purposes of this subsection (d-5):
5220	5220	5 "Rest of the RTO" and "ComEd Zone" shall have
5221	5221	6 the meaning ascribed to them by PJM
5222	5222	7 Interconnection, LLC.
5223	5223	8 "RTO" means regional transmission
5224	5224	9 organization.
5225	5225	10 (C) No later than 45 days after June 1, 2017 (the
5226	5226	11 effective date of Public Act 99-906), the Agency shall
5227	5227	12 publish its proposed zero emission standard
5228	5228	13 procurement plan. The plan shall be consistent with
5229	5229	14 the provisions of this paragraph (1) and shall provide
5230	5230	15 that winning bids shall be selected based on public
5231	5231	16 interest criteria that include, but are not limited
5232	5232	17 to, minimizing carbon dioxide emissions that result
5233	5233	18 from electricity consumed in Illinois and minimizing
5234	5234	19 sulfur dioxide, nitrogen oxide, and particulate matter
5235	5235	20 emissions that adversely affect the citizens of this
5236	5236	21 State. In particular, the selection of winning bids
5237	5237	22 shall take into account the incremental environmental
5238	5238	23 benefits resulting from the procurement, such as any
5239	5239	24 existing environmental benefits that are preserved by
5240	5240	25 the procurements held under Public Act 99-906 and
5241	5241	26 would cease to exist if the procurements were not
5242	5242
5243	5243
5244	5244
5245	5245
5246	5246
5247	5247	HB2563 - 145 - LRB103 29504 AMQ 55899 b
5248	5248
5249	5249
5250	5250	HB2563- 146 -LRB103 29504 AMQ 55899 b HB2563 - 146 - LRB103 29504 AMQ 55899 b
5251	5251	HB2563 - 146 - LRB103 29504 AMQ 55899 b
5252	5252	1 held, including the preservation of zero emission
5253	5253	2 facilities. The plan shall also describe in detail how
5254	5254	3 each public interest factor shall be considered and
5255	5255	4 weighted in the bid selection process to ensure that
5256	5256	5 the public interest criteria are applied to the
5257	5257	6 procurement and given full effect.
5258	5258	7 For purposes of developing the plan, the Agency
5259	5259	8 shall consider any reports issued by a State agency,
5260	5260	9 board, or commission under House Resolution 1146 of
5261	5261	10 the 98th General Assembly and paragraph (4) of
5262	5262	11 subsection (d) of this Section, as well as publicly
5263	5263	12 available analyses and studies performed by or for
5264	5264	13 regional transmission organizations that serve the
5265	5265	14 State and their independent market monitors.
5266	5266	15 Upon publishing of the zero emission standard
5267	5267	16 procurement plan, copies of the plan shall be posted
5268	5268	17 and made publicly available on the Agency's website.
5269	5269	18 All interested parties shall have 10 days following
5270	5270	19 the date of posting to provide comment to the Agency on
5271	5271	20 the plan. All comments shall be posted to the Agency's
5272	5272	21 website. Following the end of the comment period, but
5273	5273	22 no more than 60 days later than June 1, 2017 (the
5274	5274	23 effective date of Public Act 99-906), the Agency shall
5275	5275	24 revise the plan as necessary based on the comments
5276	5276	25 received and file its zero emission standard
5277	5277	26 procurement plan with the Commission.
5278	5278
5279	5279
5280	5280
5281	5281
5282	5282
5283	5283	HB2563 - 146 - LRB103 29504 AMQ 55899 b
5284	5284
5285	5285
5286	5286	HB2563- 147 -LRB103 29504 AMQ 55899 b HB2563 - 147 - LRB103 29504 AMQ 55899 b
5287	5287	HB2563 - 147 - LRB103 29504 AMQ 55899 b
5288	5288	1 If the Commission determines that the plan will
5289	5289	2 result in the procurement of cost-effective zero
5290	5290	3 emission credits, then the Commission shall, after
5291	5291	4 notice and hearing, but no later than 45 days after the
5292	5292	5 Agency filed the plan, approve the plan or approve
5293	5293	6 with modification. For purposes of this subsection
5294	5294	7 (d-5), "cost effective" means the projected costs of
5295	5295	8 procuring zero emission credits from zero emission
5296	5296	9 facilities do not cause the limit stated in paragraph
5297	5297	10 (2) of this subsection to be exceeded.
5298	5298	11 (C-5) As part of the Commission's review and
5299	5299	12 acceptance or rejection of the procurement results,
5300	5300	13 the Commission shall, in its public notice of
5301	5301	14 successful bidders:
5302	5302	15 (i) identify how the winning bids satisfy the
5303	5303	16 public interest criteria described in subparagraph
5304	5304	17 (C) of this paragraph (1) of minimizing carbon
5305	5305	18 dioxide emissions that result from electricity
5306	5306	19 consumed in Illinois and minimizing sulfur
5307	5307	20 dioxide, nitrogen oxide, and particulate matter
5308	5308	21 emissions that adversely affect the citizens of
5309	5309	22 this State;
5310	5310	23 (ii) specifically address how the selection of
5311	5311	24 winning bids takes into account the incremental
5312	5312	25 environmental benefits resulting from the
5313	5313	26 procurement, including any existing environmental
5314	5314
5315	5315
5316	5316
5317	5317
5318	5318
5319	5319	HB2563 - 147 - LRB103 29504 AMQ 55899 b
5320	5320
5321	5321
5322	5322	HB2563- 148 -LRB103 29504 AMQ 55899 b HB2563 - 148 - LRB103 29504 AMQ 55899 b
5323	5323	HB2563 - 148 - LRB103 29504 AMQ 55899 b
5324	5324	1 benefits that are preserved by the procurements
5325	5325	2 held under Public Act 99-906 and would have ceased
5326	5326	3 to exist if the procurements had not been held,
5327	5327	4 such as the preservation of zero emission
5328	5328	5 facilities;
5329	5329	6 (iii) quantify the environmental benefit of
5330	5330	7 preserving the resources identified in item (ii)
5331	5331	8 of this subparagraph (C-5), including the
5332	5332	9 following:
5333	5333	10 (aa) the value of avoided greenhouse gas
5334	5334	11 emissions measured as the product of the zero
5335	5335	12 emission facilities' output over the contract
5336	5336	13 term multiplied by the U.S. Environmental
5337	5337	14 Protection Agency eGrid subregion carbon
5338	5338	15 dioxide emission rate and the U.S. Interagency
5339	5339	16 Working Group on Social Cost of Carbon's price
5340	5340	17 in the August 2016 Technical Update using a 3%
5341	5341	18 discount rate, adjusted for inflation for each
5342	5342	19 delivery year; and
5343	5343	20 (bb) the costs of replacement with other
5344	5344	21 zero carbon dioxide resources, including wind
5345	5345	22 and photovoltaic, based upon the simple
5346	5346	23 average of the following:
5347	5347	24 (I) the price, or if there is more
5348	5348	25 than one price, the average of the prices,
5349	5349	26 paid for renewable energy credits from new
5350	5350
5351	5351
5352	5352
5353	5353
5354	5354
5355	5355	HB2563 - 148 - LRB103 29504 AMQ 55899 b
5356	5356
5357	5357
5358	5358	HB2563- 149 -LRB103 29504 AMQ 55899 b HB2563 - 149 - LRB103 29504 AMQ 55899 b
5359	5359	HB2563 - 149 - LRB103 29504 AMQ 55899 b
5360	5360	1 utility-scale wind projects in the
5361	5361	2 procurement events specified in item (i)
5362	5362	3 of subparagraph (G) of paragraph (1) of
5363	5363	4 subsection (c) of this Section; and
5364	5364	5 (II) the price, or if there is more
5365	5365	6 than one price, the average of the prices,
5366	5366	7 paid for renewable energy credits from new
5367	5367	8 utility-scale solar projects and
5368	5368	9 brownfield site photovoltaic projects in
5369	5369	10 the procurement events specified in item
5370	5370	11 (ii) of subparagraph (G) of paragraph (1)
5371	5371	12 of subsection (c) of this Section and,
5372	5372	13 after January 1, 2015, renewable energy
5373	5373	14 credits from photovoltaic distributed
5374	5374	15 generation projects in procurement events
5375	5375	16 held under subsection (c) of this Section.
5376	5376	17 Each utility shall enter into binding contractual
5377	5377	18 arrangements with the winning suppliers.
5378	5378	19 The procurement described in this subsection
5379	5379	20 (d-5), including, but not limited to, the execution of
5380	5380	21 all contracts procured, shall be completed no later
5381	5381	22 than May 10, 2017. Based on the effective date of
5382	5382	23 Public Act 99-906, the Agency and Commission may, as
5383	5383	24 appropriate, modify the various dates and timelines
5384	5384	25 under this subparagraph and subparagraphs (C) and (D)
5385	5385	26 of this paragraph (1). The procurement and plan
5386	5386
5387	5387
5388	5388
5389	5389
5390	5390
5391	5391	HB2563 - 149 - LRB103 29504 AMQ 55899 b
5392	5392
5393	5393
5394	5394	HB2563- 150 -LRB103 29504 AMQ 55899 b HB2563 - 150 - LRB103 29504 AMQ 55899 b
5395	5395	HB2563 - 150 - LRB103 29504 AMQ 55899 b
5396	5396	1 approval processes required by this subsection (d-5)
5397	5397	2 shall be conducted in conjunction with the procurement
5398	5398	3 and plan approval processes required by subsection (c)
5399	5399	4 of this Section and Section 16-111.5 of the Public
5400	5400	5 Utilities Act, to the extent practicable.
5401	5401	6 Notwithstanding whether a procurement event is
5402	5402	7 conducted under Section 16-111.5 of the Public
5403	5403	8 Utilities Act, the Agency shall immediately initiate a
5404	5404	9 procurement process on June 1, 2017 (the effective
5405	5405	10 date of Public Act 99-906).
5406	5406	11 (D) Following the procurement event described in
5407	5407	12 this paragraph (1) and consistent with subparagraph
5408	5408	13 (B) of this paragraph (1), the Agency shall calculate
5409	5409	14 the payments to be made under each contract for the
5410	5410	15 next delivery year based on the market price index for
5411	5411	16 that delivery year. The Agency shall publish the
5412	5412	17 payment calculations no later than May 25, 2017 and
5413	5413	18 every May 25 thereafter.
5414	5414	19 (E) Notwithstanding the requirements of this
5415	5415	20 subsection (d-5), the contracts executed under this
5416	5416	21 subsection (d-5) shall provide that the zero emission
5417	5417	22 facility may, as applicable, suspend or terminate
5418	5418	23 performance under the contracts in the following
5419	5419	24 instances:
5420	5420	25 (i) A zero emission facility shall be excused
5421	5421	26 from its performance under the contract for any
5422	5422
5423	5423
5424	5424
5425	5425
5426	5426
5427	5427	HB2563 - 150 - LRB103 29504 AMQ 55899 b
5428	5428
5429	5429
5430	5430	HB2563- 151 -LRB103 29504 AMQ 55899 b HB2563 - 151 - LRB103 29504 AMQ 55899 b
5431	5431	HB2563 - 151 - LRB103 29504 AMQ 55899 b
5432	5432	1 cause beyond the control of the resource,
5433	5433	2 including, but not restricted to, acts of God,
5434	5434	3 flood, drought, earthquake, storm, fire,
5435	5435	4 lightning, epidemic, war, riot, civil disturbance
5436	5436	5 or disobedience, labor dispute, labor or material
5437	5437	6 shortage, sabotage, acts of public enemy,
5438	5438	7 explosions, orders, regulations or restrictions
5439	5439	8 imposed by governmental, military, or lawfully
5440	5440	9 established civilian authorities, which, in any of
5441	5441	10 the foregoing cases, by exercise of commercially
5442	5442	11 reasonable efforts the zero emission facility
5443	5443	12 could not reasonably have been expected to avoid,
5444	5444	13 and which, by the exercise of commercially
5445	5445	14 reasonable efforts, it has been unable to
5446	5446	15 overcome. In such event, the zero emission
5447	5447	16 facility shall be excused from performance for the
5448	5448	17 duration of the event, including, but not limited
5449	5449	18 to, delivery of zero emission credits, and no
5450	5450	19 payment shall be due to the zero emission facility
5451	5451	20 during the duration of the event.
5452	5452	21 (ii) A zero emission facility shall be
5453	5453	22 permitted to terminate the contract if legislation
5454	5454	23 is enacted into law by the General Assembly that
5455	5455	24 imposes or authorizes a new tax, special
5456	5456	25 assessment, or fee on the generation of
5457	5457	26 electricity, the ownership or leasehold of a
5458	5458
5459	5459
5460	5460
5461	5461
5462	5462
5463	5463	HB2563 - 151 - LRB103 29504 AMQ 55899 b
5464	5464
5465	5465
5466	5466	HB2563- 152 -LRB103 29504 AMQ 55899 b HB2563 - 152 - LRB103 29504 AMQ 55899 b
5467	5467	HB2563 - 152 - LRB103 29504 AMQ 55899 b
5468	5468	1 generating unit, or the privilege or occupation of
5469	5469	2 such generation, ownership, or leasehold of
5470	5470	3 generation units by a zero emission facility.
5471	5471	4 However, the provisions of this item (ii) do not
5472	5472	5 apply to any generally applicable tax, special
5473	5473	6 assessment or fee, or requirements imposed by
5474	5474	7 federal law.
5475	5475	8 (iii) A zero emission facility shall be
5476	5476	9 permitted to terminate the contract in the event
5477	5477	10 that the resource requires capital expenditures in
5478	5478	11 excess of $40,000,000 that were neither known nor
5479	5479	12 reasonably foreseeable at the time it executed the
5480	5480	13 contract and that a prudent owner or operator of
5481	5481	14 such resource would not undertake.
5482	5482	15 (iv) A zero emission facility shall be
5483	5483	16 permitted to terminate the contract in the event
5484	5484	17 the Nuclear Regulatory Commission terminates the
5485	5485	18 resource's license.
5486	5486	19 (F) If the zero emission facility elects to
5487	5487	20 terminate a contract under subparagraph (E) of this
5488	5488	21 paragraph (1), then the Commission shall reopen the
5489	5489	22 docket in which the Commission approved the zero
5490	5490	23 emission standard procurement plan under subparagraph
5491	5491	24 (C) of this paragraph (1) and, after notice and
5492	5492	25 hearing, enter an order acknowledging the contract
5493	5493	26 termination election if such termination is consistent
5494	5494
5495	5495
5496	5496
5497	5497
5498	5498
5499	5499	HB2563 - 152 - LRB103 29504 AMQ 55899 b
5500	5500
5501	5501
5502	5502	HB2563- 153 -LRB103 29504 AMQ 55899 b HB2563 - 153 - LRB103 29504 AMQ 55899 b
5503	5503	HB2563 - 153 - LRB103 29504 AMQ 55899 b
5504	5504	1 with the provisions of this subsection (d-5).
5505	5505	2 (2) For purposes of this subsection (d-5), the amount
5506	5506	3 paid per kilowatthour means the total amount paid for
5507	5507	4 electric service expressed on a per kilowatthour basis.
5508	5508	5 For purposes of this subsection (d-5), the total amount
5509	5509	6 paid for electric service includes, without limitation,
5510	5510	7 amounts paid for supply, transmission, distribution,
5511	5511	8 surcharges, and add-on taxes.
5512	5512	9 Notwithstanding the requirements of this subsection
5513	5513	10 (d-5), the contracts executed under this subsection (d-5)
5514	5514	11 shall provide that the total of zero emission credits
5515	5515	12 procured under a procurement plan shall be subject to the
5516	5516	13 limitations of this paragraph (2). For each delivery year,
5517	5517	14 the contractual volume receiving payments in such year
5518	5518	15 shall be reduced for all retail customers based on the
5519	5519	16 amount necessary to limit the net increase that delivery
5520	5520	17 year to the costs of those credits included in the amounts
5521	5521	18 paid by eligible retail customers in connection with
5522	5522	19 electric service to no more than 1.65% of the amount paid
5523	5523	20 per kilowatthour by eligible retail customers during the
5524	5524	21 year ending May 31, 2009. The result of this computation
5525	5525	22 shall apply to and reduce the procurement for all retail
5526	5526	23 customers, and all those customers shall pay the same
5527	5527	24 single, uniform cents per kilowatthour charge under
5528	5528	25 subsection (k) of Section 16-108 of the Public Utilities
5529	5529	26 Act. To arrive at a maximum dollar amount of zero emission
5530	5530
5531	5531
5532	5532
5533	5533
5534	5534
5535	5535	HB2563 - 153 - LRB103 29504 AMQ 55899 b
5536	5536
5537	5537
5538	5538	HB2563- 154 -LRB103 29504 AMQ 55899 b HB2563 - 154 - LRB103 29504 AMQ 55899 b
5539	5539	HB2563 - 154 - LRB103 29504 AMQ 55899 b
5540	5540	1 credits to be paid for the particular delivery year, the
5541	5541	2 resulting per kilowatthour amount shall be applied to the
5542	5542	3 actual amount of kilowatthours of electricity delivered by
5543	5543	4 the electric utility in the delivery year immediately
5544	5544	5 prior to the procurement, to all retail customers in its
5545	5545	6 service territory. Unpaid contractual volume for any
5546	5546	7 delivery year shall be paid in any subsequent delivery
5547	5547	8 year in which such payments can be made without exceeding
5548	5548	9 the amount specified in this paragraph (2). The
5549	5549	10 calculations required by this paragraph (2) shall be made
5550	5550	11 only once for each procurement plan year. Once the
5551	5551	12 determination as to the amount of zero emission credits to
5552	5552	13 be paid is made based on the calculations set forth in this
5553	5553	14 paragraph (2), no subsequent rate impact determinations
5554	5554	15 shall be made and no adjustments to those contract amounts
5555	5555	16 shall be allowed. All costs incurred under those contracts
5556	5556	17 and in implementing this subsection (d-5) shall be
5557	5557	18 recovered by the electric utility as provided in this
5558	5558	19 Section.
5559	5559	20 No later than June 30, 2019, the Commission shall
5560	5560	21 review the limitation on the amount of zero emission
5561	5561	22 credits procured under this subsection (d-5) and report to
5562	5562	23 the General Assembly its findings as to whether that
5563	5563	24 limitation unduly constrains the procurement of
5564	5564	25 cost-effective zero emission credits.
5565	5565	26 (3) Six years after the execution of a contract under
5566	5566
5567	5567
5568	5568
5569	5569
5570	5570
5571	5571	HB2563 - 154 - LRB103 29504 AMQ 55899 b
5572	5572
5573	5573
5574	5574	HB2563- 155 -LRB103 29504 AMQ 55899 b HB2563 - 155 - LRB103 29504 AMQ 55899 b
5575	5575	HB2563 - 155 - LRB103 29504 AMQ 55899 b
5576	5576	1 this subsection (d-5), the Agency shall determine whether
5577	5577	2 the actual zero emission credit payments received by the
5578	5578	3 supplier over the 6-year period exceed the Average ZEC
5579	5579	4 Payment. In addition, at the end of the term of a contract
5580	5580	5 executed under this subsection (d-5), or at the time, if
5581	5581	6 any, a zero emission facility's contract is terminated
5582	5582	7 under subparagraph (E) of paragraph (1) of this subsection
5583	5583	8 (d-5), then the Agency shall determine whether the actual
5584	5584	9 zero emission credit payments received by the supplier
5585	5585	10 over the term of the contract exceed the Average ZEC
5586	5586	11 Payment, after taking into account any amounts previously
5587	5587	12 credited back to the utility under this paragraph (3). If
5588	5588	13 the Agency determines that the actual zero emission credit
5589	5589	14 payments received by the supplier over the relevant period
5590	5590	15 exceed the Average ZEC Payment, then the supplier shall
5591	5591	16 credit the difference back to the utility. The amount of
5592	5592	17 the credit shall be remitted to the applicable electric
5593	5593	18 utility no later than 120 days after the Agency's
5594	5594	19 determination, which the utility shall reflect as a credit
5595	5595	20 on its retail customer bills as soon as practicable;
5596	5596	21 however, the credit remitted to the utility shall not
5597	5597	22 exceed the total amount of payments received by the
5598	5598	23 facility under its contract.
5599	5599	24 For purposes of this Section, the Average ZEC Payment
5600	5600	25 shall be calculated by multiplying the quantity of zero
5601	5601	26 emission credits delivered under the contract times the
5602	5602
5603	5603
5604	5604
5605	5605
5606	5606
5607	5607	HB2563 - 155 - LRB103 29504 AMQ 55899 b
5608	5608
5609	5609
5610	5610	HB2563- 156 -LRB103 29504 AMQ 55899 b HB2563 - 156 - LRB103 29504 AMQ 55899 b
5611	5611	HB2563 - 156 - LRB103 29504 AMQ 55899 b
5612	5612	1 average contract price. The average contract price shall
5613	5613	2 be determined by subtracting the amount calculated under
5614	5614	3 subparagraph (B) of this paragraph (3) from the amount
5615	5615	4 calculated under subparagraph (A) of this paragraph (3),
5616	5616	5 as follows:
5617	5617	6 (A) The average of the Social Cost of Carbon, as
5618	5618	7 defined in subparagraph (B) of paragraph (1) of this
5619	5619	8 subsection (d-5), during the term of the contract.
5620	5620	9 (B) The average of the market price indices, as
5621	5621	10 defined in subparagraph (B) of paragraph (1) of this
5622	5622	11 subsection (d-5), during the term of the contract,
5623	5623	12 minus the baseline market price index, as defined in
5624	5624	13 subparagraph (B) of paragraph (1) of this subsection
5625	5625	14 (d-5).
5626	5626	15 If the subtraction yields a negative number, then the
5627	5627	16 Average ZEC Payment shall be zero.
5628	5628	17 (4) Cost-effective zero emission credits procured from
5629	5629	18 zero emission facilities shall satisfy the applicable
5630	5630	19 definitions set forth in Section 1-10 of this Act.
5631	5631	20 (5) The electric utility shall retire all zero
5632	5632	21 emission credits used to comply with the requirements of
5633	5633	22 this subsection (d-5).
5634	5634	23 (6) Electric utilities shall be entitled to recover
5635	5635	24 all of the costs associated with the procurement of zero
5636	5636	25 emission credits through an automatic adjustment clause
5637	5637	26 tariff in accordance with subsection (k) and (m) of
5638	5638
5639	5639
5640	5640
5641	5641
5642	5642
5643	5643	HB2563 - 156 - LRB103 29504 AMQ 55899 b
5644	5644
5645	5645
5646	5646	HB2563- 157 -LRB103 29504 AMQ 55899 b HB2563 - 157 - LRB103 29504 AMQ 55899 b
5647	5647	HB2563 - 157 - LRB103 29504 AMQ 55899 b
5648	5648	1 Section 16-108 of the Public Utilities Act, and the
5649	5649	2 contracts executed under this subsection (d-5) shall
5650	5650	3 provide that the utilities' payment obligations under such
5651	5651	4 contracts shall be reduced if an adjustment is required
5652	5652	5 under subsection (m) of Section 16-108 of the Public
5653	5653	6 Utilities Act.
5654	5654	7 (7) This subsection (d-5) shall become inoperative on
5655	5655	8 January 1, 2028.
5656	5656	9 (d-10) Nuclear Plant Assistance; carbon mitigation
5657	5657	10 credits.
5658	5658	11 (1) The General Assembly finds:
5659	5659	12 (A) The health, welfare, and prosperity of all
5660	5660	13 Illinois citizens require that the State of Illinois act
5661	5661	14 to avoid and not increase carbon emissions from electric
5662	5662	15 generation sources while continuing to ensure affordable,
5663	5663	16 stable, and reliable electricity to all citizens.
5664	5664	17 (B) Absent immediate action by the State to preserve
5665	5665	18 existing carbon-free energy resources, those resources may
5666	5666	19 retire, and the electric generation needs of Illinois'
5667	5667	20 retail customers may be met instead by facilities that
5668	5668	21 emit significant amounts of carbon pollution and other
5669	5669	22 harmful air pollutants at a high social and economic cost
5670	5670	23 until Illinois is able to develop other forms of clean
5671	5671	24 energy.
5672	5672	25 (C) The General Assembly finds that nuclear power
5673	5673	26 generation is necessary for the State's transition to 100%
5674	5674
5675	5675
5676	5676
5677	5677
5678	5678
5679	5679	HB2563 - 157 - LRB103 29504 AMQ 55899 b
5680	5680
5681	5681
5682	5682	HB2563- 158 -LRB103 29504 AMQ 55899 b HB2563 - 158 - LRB103 29504 AMQ 55899 b
5683	5683	HB2563 - 158 - LRB103 29504 AMQ 55899 b
5684	5684	1 clean energy, and ensuring continued operation of nuclear
5685	5685	2 plants advances environmental and public health interests
5686	5686	3 through providing carbon-free electricity while reducing
5687	5687	4 the air pollution profile of the Illinois energy
5688	5688	5 generation fleet.
5689	5689	6 (D) The clean energy attributes of nuclear generation
5690	5690	7 facilities support the State in its efforts to achieve
5691	5691	8 100% clean energy.
5692	5692	9 (E) The State currently invests in various forms of
5693	5693	10 clean energy, including, but not limited to, renewable
5694	5694	11 energy, energy efficiency, and low-emission vehicles,
5695	5695	12 among others.
5696	5696	13 (F) The Environmental Protection Agency commissioned
5697	5697	14 an independent audit which provided a detailed assessment
5698	5698	15 of the financial condition of the Illinois nuclear fleet
5699	5699	16 to evaluate its financial viability and whether the
5700	5700	17 environmental benefits of such resources were at risk. The
5701	5701	18 report identified the risk of losing the environmental
5702	5702	19 benefits of several specific nuclear units. The report
5703	5703	20 also identified that the LaSalle County Generating Station
5704	5704	21 will continue to operate through 2026 and therefore is not
5705	5705	22 eligible to participate in the carbon mitigation credit
5706	5706	23 program.
5707	5707	24 (G) Nuclear plants provide carbon-free energy, which
5708	5708	25 helps to avoid many health-related negative impacts for
5709	5709	26 Illinois residents.
5710	5710
5711	5711
5712	5712
5713	5713
5714	5714
5715	5715	HB2563 - 158 - LRB103 29504 AMQ 55899 b
5716	5716
5717	5717
5718	5718	HB2563- 159 -LRB103 29504 AMQ 55899 b HB2563 - 159 - LRB103 29504 AMQ 55899 b
5719	5719	HB2563 - 159 - LRB103 29504 AMQ 55899 b
5720	5720	1 (H) The procurement of carbon mitigation credits
5721	5721	2 representing the environmental benefits of carbon-free
5722	5722	3 generation will further the State's efforts at achieving
5723	5723	4 100% clean energy and decarbonizing the electricity sector
5724	5724	5 in a safe, reliable, and affordable manner. Further, the
5725	5725	6 procurement of carbon emission credits will enhance the
5726	5726	7 health and welfare of Illinois residents through decreased
5727	5727	8 reliance on more highly polluting generation.
5728	5728	9 (I) The General Assembly therefore finds it necessary
5729	5729	10 to establish carbon mitigation credits to ensure decreased
5730	5730	11 reliance on more carbon-intensive energy resources, for
5731	5731	12 transitioning to a fully decarbonized electricity sector,
5732	5732	13 and to help ensure health and welfare of the State's
5733	5733	14 residents.
5734	5734	15 (2) As used in this subsection:
5735	5735	16 "Baseline costs" means costs used to establish a customer
5736	5736	17 protection cap that have been evaluated through an independent
5737	5737	18 audit of a carbon-free energy resource conducted by the
5738	5738	19 Environmental Protection Agency that evaluated projected
5739	5739	20 annual costs for operation and maintenance expenses; fully
5740	5740	21 allocated overhead costs, which shall be allocated using the
5741	5741	22 methodology developed by the Institute for Nuclear Power
5742	5742	23 Operations; fuel expenditures; nonfuel capital expenditures;
5743	5743	24 spent fuel expenditures; a return on working capital; the cost
5744	5744	25 of operational and market risks that could be avoided by
5745	5745	26 ceasing operation; and any other costs necessary for continued
5746	5746
5747	5747
5748	5748
5749	5749
5750	5750
5751	5751	HB2563 - 159 - LRB103 29504 AMQ 55899 b
5752	5752
5753	5753
5754	5754	HB2563- 160 -LRB103 29504 AMQ 55899 b HB2563 - 160 - LRB103 29504 AMQ 55899 b
5755	5755	HB2563 - 160 - LRB103 29504 AMQ 55899 b
5756	5756	1 operations, provided that "necessary" means, for purposes of
5757	5757	2 this definition, that the costs could reasonably be avoided
5758	5758	3 only by ceasing operations of the carbon-free energy resource.
5759	5759	4 "Carbon mitigation credit" means a tradable credit that
5760	5760	5 represents the carbon emission reduction attributes of one
5761	5761	6 megawatt-hour of energy produced from a carbon-free energy
5762	5762	7 resource.
5763	5763	8 "Carbon-free energy resource" means a generation facility
5764	5764	9 that: (1) is fueled by nuclear power; and (2) is
5765	5765	10 interconnected to PJM Interconnection, LLC.
5766	5766	11 (3) Procurement.
5767	5767	12 (A) Beginning with the delivery year commencing on
5768	5768	13 June 1, 2022, the Agency shall, for electric utilities
5769	5769	14 serving at least 3,000,000 retail customers in the State,
5770	5770	15 seek to procure contracts for no more than approximately
5771	5771	16 54,500,000 cost-effective carbon mitigation credits from
5772	5772	17 carbon-free energy resources because such credits are
5773	5773	18 necessary to support current levels of carbon-free energy
5774	5774	19 generation and ensure the State meets its carbon dioxide
5775	5775	20 emissions reduction goals. The Agency shall not make a
5776	5776	21 partial award of a contract for carbon mitigation credits
5777	5777	22 covering a fractional amount of a carbon-free energy
5778	5778	23 resource's projected output.
5779	5779	24 (B) Each carbon-free energy resource that intends to
5780	5780	25 participate in a procurement shall be required to submit
5781	5781	26 to the Agency the following information for the resource
5782	5782
5783	5783
5784	5784
5785	5785
5786	5786
5787	5787	HB2563 - 160 - LRB103 29504 AMQ 55899 b
5788	5788
5789	5789
5790	5790	HB2563- 161 -LRB103 29504 AMQ 55899 b HB2563 - 161 - LRB103 29504 AMQ 55899 b
5791	5791	HB2563 - 161 - LRB103 29504 AMQ 55899 b
5792	5792	1 on or before the date established by the Agency:
5793	5793	2 (i) the in-service date and remaining useful life
5794	5794	3 of the carbon-free energy resource;
5795	5795	4 (ii) the amount of power generated annually for
5796	5796	5 each of the past 10 years, which shall be used to
5797	5797	6 determine the capability of each facility;
5798	5798	7 (iii) a commitment to be reflected in any contract
5799	5799	8 entered into pursuant to this subsection (d-10) to
5800	5800	9 continue operating the carbon-free energy resource at
5801	5801	10 a capacity factor of at least 88% annually on average
5802	5802	11 for the duration of the contract or contracts executed
5803	5803	12 under the procurement held under this subsection
5804	5804	13 (d-10), except in an instance described in
5805	5805	14 subparagraph (E) of paragraph (1) of subsection (d-5)
5806	5806	15 of this Section or made impracticable as a result of
5807	5807	16 compliance with law or regulation;
5808	5808	17 (iv) financial need and the risk of loss of the
5809	5809	18 environmental benefits of such resource, which shall
5810	5810	19 include the following information:
5811	5811	20 (I) the carbon-free energy resource's cost
5812	5812	21 projections, expressed on a per megawatt-hour
5813	5813	22 basis, over the next 5 delivery years, which shall
5814	5814	23 include the following: operation and maintenance
5815	5815	24 expenses; fully allocated overhead costs, which
5816	5816	25 shall be allocated using the methodology developed
5817	5817	26 by the Institute for Nuclear Power Operations;
5818	5818
5819	5819
5820	5820
5821	5821
5822	5822
5823	5823	HB2563 - 161 - LRB103 29504 AMQ 55899 b
5824	5824
5825	5825
5826	5826	HB2563- 162 -LRB103 29504 AMQ 55899 b HB2563 - 162 - LRB103 29504 AMQ 55899 b
5827	5827	HB2563 - 162 - LRB103 29504 AMQ 55899 b
5828	5828	1 fuel expenditures; nonfuel capital expenditures;
5829	5829	2 spent fuel expenditures; a return on working
5830	5830	3 capital; the cost of operational and market risks
5831	5831	4 that could be avoided by ceasing operation; and
5832	5832	5 any other costs necessary for continued
5833	5833	6 operations, provided that "necessary" means, for
5834	5834	7 purposes of this subitem (I), that the costs could
5835	5835	8 reasonably be avoided only by ceasing operations
5836	5836	9 of the carbon-free energy resource; and
5837	5837	10 (II) the carbon-free energy resource's revenue
5838	5838	11 projections, including energy, capacity, ancillary
5839	5839	12 services, any other direct State support, known or
5840	5840	13 anticipated federal attribute credits, known or
5841	5841	14 anticipated tax credits, and any other direct
5842	5842	15 federal support.
5843	5843	16 The information described in this subparagraph (B) may
5844	5844	17 be submitted on a confidential basis and shall be treated
5845	5845	18 and maintained by the Agency, the procurement
5846	5846	19 administrator, and the Commission as confidential and
5847	5847	20 proprietary and exempt from disclosure under subparagraphs
5848	5848	21 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
5849	5849	22 Information Act. The Office of the Attorney General shall
5850	5850	23 have access to, and maintain the confidentiality of, such
5851	5851	24 information pursuant to Section 6.5 of the Attorney
5852	5852	25 General Act.
5853	5853	26 (C) The Agency shall solicit bids for the contracts
5854	5854
5855	5855
5856	5856
5857	5857
5858	5858
5859	5859	HB2563 - 162 - LRB103 29504 AMQ 55899 b
5860	5860
5861	5861
5862	5862	HB2563- 163 -LRB103 29504 AMQ 55899 b HB2563 - 163 - LRB103 29504 AMQ 55899 b
5863	5863	HB2563 - 163 - LRB103 29504 AMQ 55899 b
5864	5864	1 described in this subsection (d-10) from carbon-free
5865	5865	2 energy resources that have satisfied the requirements of
5866	5866	3 subparagraph (B) of this paragraph (3). The contracts
5867	5867	4 procured pursuant to a procurement event shall reflect,
5868	5868	5 and be subject to, the following terms, requirements, and
5869	5869	6 limitations:
5870	5870	7 (i) Contracts are for delivery of carbon
5871	5871	8 mitigation credits, and are not energy or capacity
5872	5872	9 sales contracts requiring physical delivery. Pursuant
5873	5873	10 to item (iii), contract payments shall fully deduct
5874	5874	11 the value of any monetized federal production tax
5875	5875	12 credits, credits issued pursuant to a federal clean
5876	5876	13 energy standard, and other federal credits if
5877	5877	14 applicable.
5878	5878	15 (ii) Contracts for carbon mitigation credits shall
5879	5879	16 commence with the delivery year beginning on June 1,
5880	5880	17 2022 and shall be for a term of 5 delivery years
5881	5881	18 concluding on May 31, 2027.
5882	5882	19 (iii) The price per carbon mitigation credit to be
5883	5883	20 paid under a contract for a given delivery year shall
5884	5884	21 be equal to an accepted bid price less the sum of:
5885	5885	22 (I) one of the following energy price indices,
5886	5886	23 selected by the bidder at the time of the bid for
5887	5887	24 the term of the contract:
5888	5888	25 (aa) the weighted-average hourly day-ahead
5889	5889	26 price for the applicable delivery year at the
5890	5890
5891	5891
5892	5892
5893	5893
5894	5894
5895	5895	HB2563 - 163 - LRB103 29504 AMQ 55899 b
5896	5896
5897	5897
5898	5898	HB2563- 164 -LRB103 29504 AMQ 55899 b HB2563 - 164 - LRB103 29504 AMQ 55899 b
5899	5899	HB2563 - 164 - LRB103 29504 AMQ 55899 b
5900	5900	1 busbar of all resources procured pursuant to
5901	5901	2 this subsection (d-10), weighted by actual
5902	5902	3 production from the resources; or
5903	5903	4 (bb) the projected energy price for the
5904	5904	5 PJM Interconnection, LLC Northern Illinois Hub
5905	5905	6 for the applicable delivery year determined
5906	5906	7 according to subitem (aa) of item (iii) of
5907	5907	8 subparagraph (B) of paragraph (1) of
5908	5908	9 subsection (d-5).
5909	5909	10 (II) the Base Residual Auction Capacity Price
5910	5910	11 for the ComEd zone as determined by PJM
5911	5911	12 Interconnection, LLC, divided by 24 hours per day,
5912	5912	13 for the applicable delivery year for the first 3
5913	5913	14 delivery years, and then any subsequent delivery
5914	5914	15 years unless the PJM Interconnection, LLC applies
5915	5915	16 the Minimum Offer Price Rule to participating
5916	5916	17 carbon-free energy resources because they supply
5917	5917	18 carbon mitigation credits pursuant to this Section
5918	5918	19 at which time, upon notice by the carbon-free
5919	5919	20 energy resource to the Commission and subject to
5920	5920	21 the Commission's confirmation, the value under
5921	5921	22 this subitem shall be zero, as further described
5922	5922	23 in the carbon mitigation credit procurement plan;
5923	5923	24 and
5924	5924	25 (III) any value of monetized federal tax
5925	5925	26 credits, direct payments, or similar subsidy
5926	5926
5927	5927
5928	5928
5929	5929
5930	5930
5931	5931	HB2563 - 164 - LRB103 29504 AMQ 55899 b
5932	5932
5933	5933
5934	5934	HB2563- 165 -LRB103 29504 AMQ 55899 b HB2563 - 165 - LRB103 29504 AMQ 55899 b
5935	5935	HB2563 - 165 - LRB103 29504 AMQ 55899 b
5936	5936	1 provided to the carbon-free energy resource from
5937	5937	2 any unit of government that is not already
5938	5938	3 reflected in energy prices.
5939	5939	4 If the price-per-megawatt-hour calculation
5940	5940	5 performed under item (iii) of this subparagraph (C)
5941	5941	6 for a given delivery year results in a net positive
5942	5942	7 value, then the electric utility counterparty to the
5943	5943	8 contract shall multiply such net value by the
5944	5944	9 applicable contract quantity and remit the amount to
5945	5945	10 the supplier.
5946	5946	11 To protect retail customers from retail rate
5947	5947	12 impacts that may arise upon the initiation of carbon
5948	5948	13 policy changes, if the price-per-megawatt-hour
5949	5949	14 calculation performed under item (iii) of this
5950	5950	15 subparagraph (C) for a given delivery year results in
5951	5951	16 a net negative value, then the supplier counterparty
5952	5952	17 to the contract shall multiply such net value by the
5953	5953	18 applicable contract quantity and remit such amount to
5954	5954	19 the electric utility counterparty. The electric
5955	5955	20 utility shall reflect such amounts remitted by
5956	5956	21 suppliers as a credit on its retail customer bills as
5957	5957	22 soon as practicable.
5958	5958	23 (iv) To ensure that retail customers in Northern
5959	5959	24 Illinois do not pay more for carbon mitigation credits
5960	5960	25 than the value such credits provide, and
5961	5961	26 notwithstanding the provisions of this subsection
5962	5962
5963	5963
5964	5964
5965	5965
5966	5966
5967	5967	HB2563 - 165 - LRB103 29504 AMQ 55899 b
5968	5968
5969	5969
5970	5970	HB2563- 166 -LRB103 29504 AMQ 55899 b HB2563 - 166 - LRB103 29504 AMQ 55899 b
5971	5971	HB2563 - 166 - LRB103 29504 AMQ 55899 b
5972	5972	1 (d-10), the Agency shall not accept bids for contracts
5973	5973	2 that exceed a customer protection cap equal to the
5974	5974	3 baseline costs of carbon-free energy resources.
5975	5975	4 The baseline costs for the applicable year shall
5976	5976	5 be the following:
5977	5977	6 (I) For the delivery year beginning June 1,
5978	5978	7 2022, the baseline costs shall be an amount equal
5979	5979	8 to $30.30 per megawatt-hour.
5980	5980	9 (II) For the delivery year beginning June 1,
5981	5981	10 2023, the baseline costs shall be an amount equal
5982	5982	11 to $32.50 per megawatt-hour.
5983	5983	12 (III) For the delivery year beginning June 1,
5984	5984	13 2024, the baseline costs shall be an amount equal
5985	5985	14 to $33.43 per megawatt-hour.
5986	5986	15 (IV) For the delivery year beginning June 1,
5987	5987	16 2025, the baseline costs shall be an amount equal
5988	5988	17 to $33.50 per megawatt-hour.
5989	5989	18 (V) For the delivery year beginning June 1,
5990	5990	19 2026, the baseline costs shall be an amount equal
5991	5991	20 to $34.50 per megawatt-hour.
5992	5992	21 An Environmental Protection Agency consultant
5993	5993	22 forecast, included in a report issued April 14, 2021,
5994	5994	23 projects that a carbon-free energy resource has the
5995	5995	24 opportunity to earn on average approximately $30.28
5996	5996	25 per megawatt-hour, for the sale of energy and capacity
5997	5997	26 during the time period between 2022 and 2027.
5998	5998
5999	5999
6000	6000
6001	6001
6002	6002
6003	6003	HB2563 - 166 - LRB103 29504 AMQ 55899 b
6004	6004
6005	6005
6006	6006	HB2563- 167 -LRB103 29504 AMQ 55899 b HB2563 - 167 - LRB103 29504 AMQ 55899 b
6007	6007	HB2563 - 167 - LRB103 29504 AMQ 55899 b
6008	6008	1 Therefore, the sale of carbon mitigation credits
6009	6009	2 provides the opportunity to receive an additional
6010	6010	3 amount per megawatt-hour in addition to the projected
6011	6011	4 prices for energy and capacity.
6012	6012	5 Although actual energy and capacity prices may
6013	6013	6 vary from year-to-year, the General Assembly finds
6014	6014	7 that this customer protection cap will help ensure
6015	6015	8 that the cost of carbon mitigation credits will be
6016	6016	9 less than its value, based upon the social cost of
6017	6017	10 carbon identified in the Technical Support Document
6018	6018	11 issued in February 2021 by the U.S. Interagency
6019	6019	12 Working Group on Social Cost of Greenhouse Gases and
6020	6020	13 the PJM Interconnection, LLC carbon dioxide marginal
6021	6021	14 emission rate for 2020, and that a carbon-free energy
6022	6022	15 resource receiving payment for carbon mitigation
6023	6023	16 credits receives no more than necessary to keep those
6024	6024	17 units in operation.
6025	6025	18 (D) No later than 7 days after the effective date of
6026	6026	19 this amendatory Act of the 102nd General Assembly, the
6027	6027	20 Agency shall publish its proposed carbon mitigation credit
6028	6028	21 procurement plan. The Plan shall provide that winning bids
6029	6029	22 shall be selected by taking into consideration which
6030	6030	23 resources best match public interest criteria that
6031	6031	24 include, but are not limited to, minimizing carbon dioxide
6032	6032	25 emissions that result from electricity consumed in
6033	6033	26 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6034	6034
6035	6035
6036	6036
6037	6037
6038	6038
6039	6039	HB2563 - 167 - LRB103 29504 AMQ 55899 b
6040	6040
6041	6041
6042	6042	HB2563- 168 -LRB103 29504 AMQ 55899 b HB2563 - 168 - LRB103 29504 AMQ 55899 b
6043	6043	HB2563 - 168 - LRB103 29504 AMQ 55899 b
6044	6044	1 and particulate matter emissions that adversely affect the
6045	6045	2 citizens of this State. The selection of winning bids
6046	6046	3 shall also take into account the incremental environmental
6047	6047	4 benefits resulting from the procurement or procurements,
6048	6048	5 such as any existing environmental benefits that are
6049	6049	6 preserved by a procurement held under this subsection
6050	6050	7 (d-10) and would cease to exist if the procurement were
6051	6051	8 not held, including the preservation of carbon-free energy
6052	6052	9 resources. For those bidders having the same public
6053	6053	10 interest criteria score, the relative ranking of such
6054	6054	11 bidders shall be determined by price. The Plan shall
6055	6055	12 describe in detail how each public interest factor shall
6056	6056	13 be considered and weighted in the bid selection process to
6057	6057	14 ensure that the public interest criteria are applied to
6058	6058	15 the procurement. The Plan shall, to the extent practical
6059	6059	16 and permissible by federal law, ensure that successful
6060	6060	17 bidders make commercially reasonable efforts to apply for
6061	6061	18 federal tax credits, direct payments, or similar subsidy
6062	6062	19 programs that support carbon-free generation and for which
6063	6063	20 the successful bidder is eligible. Upon publishing of the
6064	6064	21 carbon mitigation credit procurement plan, copies of the
6065	6065	22 plan shall be posted and made publicly available on the
6066	6066	23 Agency's website. All interested parties shall have 7 days
6067	6067	24 following the date of posting to provide comment to the
6068	6068	25 Agency on the plan. All comments shall be posted to the
6069	6069	26 Agency's website. Following the end of the comment period,
6070	6070
6071	6071
6072	6072
6073	6073
6074	6074
6075	6075	HB2563 - 168 - LRB103 29504 AMQ 55899 b
6076	6076
6077	6077
6078	6078	HB2563- 169 -LRB103 29504 AMQ 55899 b HB2563 - 169 - LRB103 29504 AMQ 55899 b
6079	6079	HB2563 - 169 - LRB103 29504 AMQ 55899 b
6080	6080	1 but no more than 19 days later than the effective date of
6081	6081	2 this amendatory Act of the 102nd General Assembly, the
6082	6082	3 Agency shall revise the plan as necessary based on the
6083	6083	4 comments received and file its carbon mitigation credit
6084	6084	5 procurement plan with the Commission.
6085	6085	6 (E) If the Commission determines that the plan is
6086	6086	7 likely to result in the procurement of cost-effective
6087	6087	8 carbon mitigation credits, then the Commission shall,
6088	6088	9 after notice and hearing and opportunity for comment, but
6089	6089	10 no later than 42 days after the Agency filed the plan,
6090	6090	11 approve the plan or approve it with modification. For
6091	6091	12 purposes of this subsection (d-10), "cost-effective" means
6092	6092	13 carbon mitigation credits that are procured from
6093	6093	14 carbon-free energy resources at prices that are within the
6094	6094	15 limits specified in this paragraph (3). As part of the
6095	6095	16 Commission's review and acceptance or rejection of the
6096	6096	17 procurement results, the Commission shall, in its public
6097	6097	18 notice of successful bidders:
6098	6098	19 (i) identify how the selected carbon-free energy
6099	6099	20 resources satisfy the public interest criteria
6100	6100	21 described in this paragraph (3) of minimizing carbon
6101	6101	22 dioxide emissions that result from electricity
6102	6102	23 consumed in Illinois and minimizing sulfur dioxide,
6103	6103	24 nitrogen oxide, and particulate matter emissions that
6104	6104	25 adversely affect the citizens of this State;
6105	6105	26 (ii) specifically address how the selection of
6106	6106
6107	6107
6108	6108
6109	6109
6110	6110
6111	6111	HB2563 - 169 - LRB103 29504 AMQ 55899 b
6112	6112
6113	6113
6114	6114	HB2563- 170 -LRB103 29504 AMQ 55899 b HB2563 - 170 - LRB103 29504 AMQ 55899 b
6115	6115	HB2563 - 170 - LRB103 29504 AMQ 55899 b
6116	6116	1 carbon-free energy resources takes into account the
6117	6117	2 incremental environmental benefits resulting from the
6118	6118	3 procurement, including any existing environmental
6119	6119	4 benefits that are preserved by the procurements held
6120	6120	5 under this amendatory Act of the 102nd General
6121	6121	6 Assembly and would have ceased to exist if the
6122	6122	7 procurements had not been held, such as the
6123	6123	8 preservation of carbon-free energy resources;
6124	6124	9 (iii) quantify the environmental benefit of
6125	6125	10 preserving the carbon-free energy resources procured
6126	6126	11 pursuant to this subsection (d-10), including the
6127	6127	12 following:
6128	6128	13 (I) an assessment value of avoided greenhouse
6129	6129	14 gas emissions measured as the product of the
6130	6130	15 carbon-free energy resources' output over the
6131	6131	16 contract term, using generally accepted
6132	6132	17 methodologies for the valuation of avoided
6133	6133	18 emissions; and
6134	6134	19 (II) an assessment of costs of replacement
6135	6135	20 with other carbon-free energy resources and
6136	6136	21 renewable energy resources, including wind and
6137	6137	22 photovoltaic generation, based upon an assessment
6138	6138	23 of the prices paid for renewable energy credits
6139	6139	24 through programs and procurements conducted
6140	6140	25 pursuant to subsection (c) of Section 1-75 of this
6141	6141	26 Act, and the additional storage necessary to
6142	6142
6143	6143
6144	6144
6145	6145
6146	6146
6147	6147	HB2563 - 170 - LRB103 29504 AMQ 55899 b
6148	6148
6149	6149
6150	6150	HB2563- 171 -LRB103 29504 AMQ 55899 b HB2563 - 171 - LRB103 29504 AMQ 55899 b
6151	6151	HB2563 - 171 - LRB103 29504 AMQ 55899 b
6152	6152	1 produce the same or similar capability of matching
6153	6153	2 customer usage patterns.
6154	6154	3 (F) The procurements described in this paragraph (3),
6155	6155	4 including, but not limited to, the execution of all
6156	6156	5 contracts procured, shall be completed no later than
6157	6157	6 December 3, 2021. The procurement and plan approval
6158	6158	7 processes required by this paragraph (3) shall be
6159	6159	8 conducted in conjunction with the procurement and plan
6160	6160	9 approval processes required by Section 16-111.5 of the
6161	6161	10 Public Utilities Act, to the extent practicable. However,
6162	6162	11 the Agency and Commission may, as appropriate, modify the
6163	6163	12 various dates and timelines under this subparagraph and
6164	6164	13 subparagraphs (D) and (E) of this paragraph (3) to meet
6165	6165	14 the December 3, 2021 contract execution deadline.
6166	6166	15 Following the completion of such procurements, and
6167	6167	16 consistent with this paragraph (3), the Agency shall
6168	6168	17 calculate the payments to be made under each contract in a
6169	6169	18 timely fashion.
6170	6170	19 (F-1) Costs incurred by the electric utility pursuant
6171	6171	20 to a contract authorized by this subsection (d-10) shall
6172	6172	21 be deemed prudently incurred and reasonable in amount, and
6173	6173	22 the electric utility shall be entitled to full cost
6174	6174	23 recovery pursuant to a tariff or tariffs filed with the
6175	6175	24 Commission.
6176	6176	25 (G) The counterparty electric utility shall retire all
6177	6177	26 carbon mitigation credits used to comply with the
6178	6178
6179	6179
6180	6180
6181	6181
6182	6182
6183	6183	HB2563 - 171 - LRB103 29504 AMQ 55899 b
6184	6184
6185	6185
6186	6186	HB2563- 172 -LRB103 29504 AMQ 55899 b HB2563 - 172 - LRB103 29504 AMQ 55899 b
6187	6187	HB2563 - 172 - LRB103 29504 AMQ 55899 b
6188	6188	1 requirements of this subsection (d-10).
6189	6189	2 (H) If a carbon-free energy resource is sold to
6190	6190	3 another owner, the rights, obligations, and commitments
6191	6191	4 under this subsection (d-10) shall continue to the
6192	6192	5 subsequent owner.
6193	6193	6 (I) This subsection (d-10) shall become inoperative on
6194	6194	7 January 1, 2028.
6195	6195	8 (e) The draft procurement plans are subject to public
6196	6196	9 comment, as required by Section 16-111.5 of the Public
6197	6197	10 Utilities Act.
6198	6198	11 (f) The Agency shall submit the final procurement plan to
6199	6199	12 the Commission. The Agency shall revise a procurement plan if
6200	6200	13 the Commission determines that it does not meet the standards
6201	6201	14 set forth in Section 16-111.5 of the Public Utilities Act.
6202	6202	15 (g) The Agency shall assess fees to each affected utility
6203	6203	16 to recover the costs incurred in preparation of the annual
6204	6204	17 procurement plan for the utility.
6205	6205	18 (h) The Agency shall assess fees to each bidder to recover
6206	6206	19 the costs incurred in connection with a competitive
6207	6207	20 procurement process.
6208	6208	21 (i) A renewable energy credit, carbon emission credit,
6209	6209	22 zero emission credit, or carbon mitigation credit can only be
6210	6210	23 used once to comply with a single portfolio or other standard
6211	6211	24 as set forth in subsection (c), subsection (d), or subsection
6212	6212	25 (d-5) of this Section, respectively. A renewable energy
6213	6213	26 credit, carbon emission credit, zero emission credit, or
6214	6214
6215	6215
6216	6216
6217	6217
6218	6218
6219	6219	HB2563 - 172 - LRB103 29504 AMQ 55899 b
6220	6220
6221	6221
6222	6222	HB2563- 173 -LRB103 29504 AMQ 55899 b HB2563 - 173 - LRB103 29504 AMQ 55899 b
6223	6223	HB2563 - 173 - LRB103 29504 AMQ 55899 b
6224	6224	1 carbon mitigation credit cannot be used to satisfy the
6225	6225	2 requirements of more than one standard. If more than one type
6226	6226	3 of credit is issued for the same megawatt hour of energy, only
6227	6227	4 one credit can be used to satisfy the requirements of a single
6228	6228	5 standard. After such use, the credit must be retired together
6229	6229	6 with any other credits issued for the same megawatt hour of
6230	6230	7 energy.
6231	6231	8 (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
6232	6232	9 102-662, eff. 9-15-21.)
6233	6233
6234	6234
6235	6235
6236	6236
6237	6237
6238	6238	HB2563 - 173 - LRB103 29504 AMQ 55899 b