Illinois 2023-2024 Regular Session

Illinois House Bill HB4687 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 HB4687 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED: 20 ILCS 730/5-5520 ILCS 730/5-6020 ILCS 3855/1-520 ILCS 3855/1-2020 ILCS 3855/1-5620 ILCS 3855/1-7520 ILCS 3855/1-12935 ILCS 55/1555 ILCS 5/5-12020220 ILCS 5/8-218220 ILCS 5/16-108220 ILCS 5/16-111.5415 ILCS 5/9.15 Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts. LRB103 36052 LNS 66139 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4687 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED: 20 ILCS 730/5-5520 ILCS 730/5-6020 ILCS 3855/1-520 ILCS 3855/1-2020 ILCS 3855/1-5620 ILCS 3855/1-7520 ILCS 3855/1-12935 ILCS 55/1555 ILCS 5/5-12020220 ILCS 5/8-218220 ILCS 5/16-108220 ILCS 5/16-111.5415 ILCS 5/9.15 20 ILCS 730/5-55 20 ILCS 730/5-60 20 ILCS 3855/1-5 20 ILCS 3855/1-20 20 ILCS 3855/1-56 20 ILCS 3855/1-75 20 ILCS 3855/1-129 35 ILCS 55/15 55 ILCS 5/5-12020 220 ILCS 5/8-218 220 ILCS 5/16-108 220 ILCS 5/16-111.5 415 ILCS 5/9.15 Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts. LRB103 36052 LNS 66139 b LRB103 36052 LNS 66139 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4687 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 730/5-5520 ILCS 730/5-6020 ILCS 3855/1-520 ILCS 3855/1-2020 ILCS 3855/1-5620 ILCS 3855/1-7520 ILCS 3855/1-12935 ILCS 55/1555 ILCS 5/5-12020220 ILCS 5/8-218220 ILCS 5/16-108220 ILCS 5/16-111.5415 ILCS 5/9.15 20 ILCS 730/5-55 20 ILCS 730/5-60 20 ILCS 3855/1-5 20 ILCS 3855/1-20 20 ILCS 3855/1-56 20 ILCS 3855/1-75 20 ILCS 3855/1-129 35 ILCS 55/15 55 ILCS 5/5-12020 220 ILCS 5/8-218 220 ILCS 5/16-108 220 ILCS 5/16-111.5 415 ILCS 5/9.15
4	4	20 ILCS 730/5-55
5	5	20 ILCS 730/5-60
6	6	20 ILCS 3855/1-5
7	7	20 ILCS 3855/1-20
8	8	20 ILCS 3855/1-56
9	9	20 ILCS 3855/1-75
10	10	20 ILCS 3855/1-129
11	11	35 ILCS 55/15
12	12	55 ILCS 5/5-12020
13	13	220 ILCS 5/8-218
14	14	220 ILCS 5/16-108
15	15	220 ILCS 5/16-111.5
16	16	415 ILCS 5/9.15
17	17	Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts.
18	18	LRB103 36052 LNS 66139 b LRB103 36052 LNS 66139 b
19	19	LRB103 36052 LNS 66139 b
20	20	A BILL FOR
21	21	HB4687LRB103 36052 LNS 66139 b HB4687 LRB103 36052 LNS 66139 b
22	22	HB4687 LRB103 36052 LNS 66139 b
23	23	1 AN ACT concerning energy.
24	24	2 Be it enacted by the People of the State of Illinois,
25	25	3 represented in the General Assembly:
26	26	4 Section 5. The Energy Transition Act is amended by
27	27	5 changing Sections 5-55 and 5-60 as follows:
28	28	6 (20 ILCS 730/5-55)
29	29	7 (Section scheduled to be repealed on September 15, 2045)
30	30	8 Sec. 5-55. Clean Energy Primes Contractor Accelerator
31	31	9 Program.
32	32	10 (a) As used in this Section:
33	33	11 "Approved vendor" means the definition of that term used
34	34	12 and as may be updated by the Illinois Power Agency.
35	35	13 "Minority business" means a minority-owned business as
36	36	14 defined in Section 2 of the Business Enterprise for
37	37	15 Minorities, Women, and Persons with Disabilities Act.
38	38	16 "Minority Business Enterprise certification" means the
39	39	17 certification or recognition certification affidavit from the
40	40	18 State of Illinois Department of Central Management Services
41	41	19 Business Enterprise Program or a program with equivalent
42	42	20 requirements.
43	43	21 "Program" means the Clean Energy Primes Contractor
44	44	22 Accelerator Program.
45	45	23 "Returning resident" has the meaning given to that term in
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49	49	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4687 Introduced , by Rep. Tim Ozinga SYNOPSIS AS INTRODUCED:
50	50	20 ILCS 730/5-5520 ILCS 730/5-6020 ILCS 3855/1-520 ILCS 3855/1-2020 ILCS 3855/1-5620 ILCS 3855/1-7520 ILCS 3855/1-12935 ILCS 55/1555 ILCS 5/5-12020220 ILCS 5/8-218220 ILCS 5/16-108220 ILCS 5/16-111.5415 ILCS 5/9.15 20 ILCS 730/5-55 20 ILCS 730/5-60 20 ILCS 3855/1-5 20 ILCS 3855/1-20 20 ILCS 3855/1-56 20 ILCS 3855/1-75 20 ILCS 3855/1-129 35 ILCS 55/15 55 ILCS 5/5-12020 220 ILCS 5/8-218 220 ILCS 5/16-108 220 ILCS 5/16-111.5 415 ILCS 5/9.15
51	51	20 ILCS 730/5-55
52	52	20 ILCS 730/5-60
53	53	20 ILCS 3855/1-5
54	54	20 ILCS 3855/1-20
55	55	20 ILCS 3855/1-56
56	56	20 ILCS 3855/1-75
57	57	20 ILCS 3855/1-129
58	58	35 ILCS 55/15
59	59	55 ILCS 5/5-12020
60	60	220 ILCS 5/8-218
61	61	220 ILCS 5/16-108
62	62	220 ILCS 5/16-111.5
63	63	415 ILCS 5/9.15
64	64	Amends the Public Utilities Act. Removes provisions related to the Adjustable Block Program and restores certain provisions of the Act to the form in which they existed before their amendment before both Public Act 99-906 and Public Act 102-662. Amends the Environmental Protection Act. Restores certain provisions of the Act regarding greenhouse gas emissions to the form in which they existed before their amendment by Public Act 102-662. Makes conforming changes in various Acts.
65	65	LRB103 36052 LNS 66139 b LRB103 36052 LNS 66139 b
66	66	LRB103 36052 LNS 66139 b
67	67	A BILL FOR
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73	73	20 ILCS 730/5-55
74	74	20 ILCS 730/5-60
75	75	20 ILCS 3855/1-5
76	76	20 ILCS 3855/1-20
77	77	20 ILCS 3855/1-56
78	78	20 ILCS 3855/1-75
79	79	20 ILCS 3855/1-129
80	80	35 ILCS 55/15
81	81	55 ILCS 5/5-12020
82	82	220 ILCS 5/8-218
83	83	220 ILCS 5/16-108
84	84	220 ILCS 5/16-111.5
85	85	415 ILCS 5/9.15
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104	104	1 Section 5-50 of this Act.
105	105	2 (b) Subject to appropriation, the Department shall
106	106	3 develop, and through a Primes Program Administrator and
107	107	4 Regional Primes Program Leads described in this Section,
108	108	5 administer the Clean Energy Primes Contractor Accelerator
109	109	6 Program. The Program shall be administered in 3 program
110	110	7 delivery areas: the Northern Illinois Program Delivery Area
111	111	8 covering Northern Illinois, the Central Illinois Program
112	112	9 Delivery Area covering Central Illinois, and the Southern
113	113	10 Illinois Program Delivery Area covering Southern Illinois.
114	114	11 Prior to developing the Program, the Department shall solicit
115	115	12 public comments, with a 30-day comment period, to gather input
116	116	13 on Program implementation and associated community outreach
117	117	14 options.
118	118	15 (c) The Program shall be available to selected contractors
119	119	16 who best meet the following criteria:
120	120	17 (1) 2 or more years of experience in a clean energy or
121	121	18 a related contracting field;
122	122	19 (2) at least $5,000 in annual business; and
123	123	20 (3) a substantial and demonstrated commitment of
124	124	21 investing in and partnering with individuals and
125	125	22 institutions in equity investment eligible communities.
126	126	23 (c-5) The Department shall develop scoring criteria to
127	127	24 select contractors for the Program, which shall consider:
128	128	25 (1) projected hiring and industry job creation,
129	129	26 including wage and benefit expectations;
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140	140	1 (2) a clear vision of strategic business growth and
141	141	2 how increased capitalization would benefit the business;
142	142	3 (3) past project work quality and demonstration of
143	143	4 technical knowledge;
144	144	5 (4) capacity the applicant is anticipated to bring to
145	145	6 project development;
146	146	7 (5) willingness to assume risk;
147	147	8 (6) anticipated revenues from future projects;
148	148	9 (7) history of commitment to advancing equity as
149	149	10 demonstrated by, among other things, employment of or
150	150	11 ownership by equity investment eligible persons and a
151	151	12 history of partnership with equity focused community
152	152	13 organizations or government programs; and
153	153	14 (8) business models that build wealth in the larger
154	154	15 underserved community.
155	155	16 Applicants for Program participation shall be allowed to
156	156	17 reapply for a future cohort if they are not selected, and the
157	157	18 Primes Program Administrator shall inform each applicant of
158	158	19 this option.
159	159	20 (d) The Department, in consultation with the Primes
160	160	21 Program Administrator and Regional Primes Program Leads, shall
161	161	22 select a new cohort of participant contractors from each
162	162	23 Program Delivery Area every 18 months. Each regional cohort
163	163	24 shall include between 3 and 5 participants. The Program shall
164	164	25 cap contractors in the energy efficiency sector at 50% of
165	165	26 available cohort spots and 50% of available grants and loans,
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176	176	1 if possible.
177	177	2 (e) The Department shall hire a Primes Program
178	178	3 Administrator with experience in leading a large
179	179	4 contractor-based business in Illinois; coaching and mentoring;
180	180	5 the Illinois clean energy industry; and working with equity
181	181	6 investment eligible community members, organizations, and
182	182	7 businesses.
183	183	8 (f) The Department shall select 3 Regional Primes Program
184	184	9 Leads who shall report directly to the Primes Program
185	185	10 Administrator. The Regional Primes Program Leads shall be
186	186	11 located within their Program Delivery Area and have experience
187	187	12 in leading a large contractor-based business in Illinois;
188	188	13 coaching and mentoring; the Illinois clean energy industry;
189	189	14 developing relationships with companies in the Program
190	190	15 Delivery Area; and working with equity investment eligible
191	191	16 community members, organizations, and businesses.
192	192	17 (g) The Department may determine how Program elements will
193	193	18 be delivered or may contract with organizations with
194	194	19 experience delivering the Program elements described in
195	195	20 subsection (h) of this Section.
196	196	21 (h) The Clean Energy Primes Contractor Accelerator Program
197	197	22 shall provide participants with:
198	198	23 (1) a 5-year, 6-month progressive course of one-on-one
199	199	24 coaching to assist each participant in developing an
200	200	25 achievable 5-year business plan, including review of
201	201	26 monthly metrics, and advice on achieving participant's
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212	212	1 goals;
213	213	2 (2) operational support grants not to exceed
214	214	3 $1,000,000 annually to support the growth of participant
215	215	4 contractors with access to capital for upfront project
216	216	5 costs and pre-development funding, among others. The
217	217	6 amount of the grant shall be based on anticipated project
218	218	7 size and scope;
219	219	8 (3) business coaching based on the participant's
220	220	9 needs;
221	221	10 (4) a mentorship of approximately 2 years provided by
222	222	11 a qualified company in the participant's field;
223	223	12 (5) access to Clean Energy Contractor Incubator
224	224	13 Program services;
225	225	14 (6) assistance with applying for Minority Business
226	226	15 Enterprise certification and other relevant certifications
227	227	16 and approved vendor status for programs offered by
228	228	17 utilities or other entities;
229	229	18 (7) assistance with preparing bids and Request for
230	230	19 Proposal applications;
231	231	20 (8) opportunities to be listed in any relevant
232	232	21 directories and databases organized by the Department of
233	233	22 Central Management Services;
234	234	23 (9) opportunities to connect with participants in
235	235	24 other Department programs;
236	236	25 (10) assistance connecting with and initiating
237	237	26 participation in the Illinois Power Agency's Adjustable
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248	248	1 Block program, the Illinois Solar for All Program, and
249	249	2 utility programs; and
250	250	3 (11) financial development assistance programs such as
251	251	4 zero-interest and low-interest loans with the Climate Bank
252	252	5 as established by Article 850 of the Illinois Finance
253	253	6 Authority Act or a comparable financing mechanism. The
254	254	7 Illinois Finance Authority shall retain authority to
255	255	8 determine loan repayment terms and conditions.
256	256	9 (i) The Primes Program Administrator shall:
257	257	10 (1) collect and report performance metrics as
258	258	11 described in this Section;
259	259	12 (2) review and assess:
260	260	13 (i) participant work plans and annual goals; and
261	261	14 (ii) the mentorship program, including approved
262	262	15 mentor companies and their stipend awards; and
263	263	16 (3) work with the Regional Primes Program Leads to
264	264	17 publicize the Program; design and implement a mentorship
265	265	18 program; and ensure participants are quickly on-boarded.
266	266	19 (j) The Regional Primes Program Leads shall:
267	267	20 (1) publicize the Program; the budget shall include
268	268	21 funds to pay community-based organizations with a track
269	269	22 record of working with equity investment eligible
270	270	23 communities to complete this work;
271	271	24 (2) recruit qualified Program applicants;
272	272	25 (3) assist Program applicants with the application
273	273	26 process;
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284	284	1 (4) introduce participants to the Program offerings;
285	285	2 (5) conduct entry and annual assessments with
286	286	3 participants to identify training, coaching, and other
287	287	4 Program service needs;
288	288	5 (6) assist participants in developing goals on entry
289	289	6 and annually, and assessing progress toward meeting the
290	290	7 goals;
291	291	8 (7) establish a metric reporting system with each
292	292	9 participant and track the metrics for progress against the
293	293	10 contractor's work plan and Program goals;
294	294	11 (8) assist participants in receiving their Minority
295	295	12 Business Enterprise certification and any other relevant
296	296	13 certifications and approved vendor statuses;
297	297	14 (9) match participants with Clean Energy Contractor
298	298	15 Incubator Program offerings and individualized expert
299	299	16 coaching, including training on working with returning
300	300	17 residents and companies that employ them;
301	301	18 (10) pair participants with a mentor company;
302	302	19 (11) facilitate connections between participants and
303	303	20 potential subcontractors and employees;
304	304	21 (12) dispense a participant's awarded operational
305	305	22 grant funding;
306	306	23 (13) connect participants to zero-interest and
307	307	24 low-interest loans from the Climate Bank as established by
308	308	25 Article 850 of the Illinois Finance Authority Act or a
309	309	26 comparable financing mechanism;
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320	320	1 (14) encourage participants to apply for appropriate
321	321	2 State and private business opportunities;
322	322	3 (15) review a participant's progress and make a
323	323	4 recommendation to the Department about whether the
324	324	5 participant should continue in the Program, be considered
325	325	6 a Program graduate, and whether adjustments should be made
326	326	7 to a participant's grant funding, loans, and related
327	327	8 services;
328	328	9 (16) solicit information from participants, which
329	329	10 participants shall be required to provide, necessary to
330	330	11 understand the participant's business, including financial
331	331	12 and income information, certifications that the
332	332	13 participant is seeking to obtain, and ownership, employee,
333	333	14 and subcontractor data, including compensation, length of
334	334	15 service, and demographics; and
335	335	16 (17) other duties as required.
336	336	17 (k) Performance metrics. The Primes Program Administrator
337	337	18 and Regional Primes Program Leads shall collaborate to collect
338	338	19 and report the following metrics quarterly to the Department
339	339	20 and Advisory Council:
340	340	21 (1) demographic information on cohort recruiting and
341	341	22 formation, including racial, gender, geographic
342	342	23 distribution data, and data on the number and percentage
343	343	24 of R3 residents, environmental justice community
344	344	25 residents, foster care alumni, and formerly convicted
345	345	26 persons who are cohort applicants and admitted
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356	356	1 participants;
357	357	2 (2) participant contractor engagement in other
358	358	3 Illinois clean energy programs such as the Adjustable
359	359	4 Block program, Illinois Solar for All Program, and the
360	360	5 utility-run energy efficiency and electric vehicle
361	361	6 programs;
362	362	7 (3) retention of participants in each cohort;
363	363	8 (4) total projects bid, started, and completed by
364	364	9 participants, including information about revenue, hiring,
365	365	10 and subcontractor relationships with projects;
366	366	11 (5) certifications issued;
367	367	12 (6) employment data for contractor hires and industry
368	368	13 jobs created, including demographic, salary, length of
369	369	14 service, and geographic data;
370	370	15 (7) grants and loans distributed; and
371	371	16 (8) participant satisfaction with the Program.
372	372	17 The metrics in paragraphs (2), (4), and (6) shall be
373	373	18 collected from Program participants and graduates for 10 years
374	374	19 from their entrance into the Program to help the Department
375	375	20 and Program Administrators understand the Program's long-term
376	376	21 effect.
377	377	22 Data should be anonymized where needed to protect
378	378	23 participant privacy.
379	379	24 The Department shall make such reports publicly available
380	380	25 on its website.
381	381	26 (l) Mentorship Program.
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392	392	1 (1) The Regional Primes Program Leads shall recruit,
393	393	2 and the Primes Program Administrator shall select, with
394	394	3 approval from the Department, private companies with the
395	395	4 following qualifications to mentor participants and assist
396	396	5 them in succeeding in the clean energy industry:
397	397	6 (i) excellent standing with state clean energy
398	398	7 programs;
399	399	8 (ii) 4 or more years of experience in their field;
400	400	9 and
401	401	10 (iii) a proven track record of success in their
402	402	11 field.
403	403	12 (2) Mentor companies may receive a stipend, determined
404	404	13 by the Department, for their participation. Mentor
405	405	14 companies may identify what level of stipend they require.
406	406	15 (3) The Primes Program Administrator shall develop
407	407	16 guidelines for mentor company-mentee profit sharing or
408	408	17 purchased services agreements.
409	409	18 (4) The Regional Primes Program Leads shall:
410	410	19 (i) collaborate with mentor companies and
411	411	20 participants to create a plan for ongoing contact such
412	412	21 as on-the-job training, site walkthroughs, business
413	413	22 process and structure walkthroughs, quality assurance
414	414	23 and quality control reviews, and other relevant
415	415	24 activities;
416	416	25 (ii) recommend the mentor company-mentee pairings
417	417	26 and associated mentor company stipends for approval;
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428	428	1 (iii) conduct an annual review of each mentor
429	429	2 company-mentee pairing and recommend whether the
430	430	3 pairing continues for a second year and the level of
431	431	4 stipend that is appropriate. The review shall also
432	432	5 ensure that any profit sharing and purchased services
433	433	6 agreements adhere to the guidelines established by the
434	434	7 Primes Program Administrator.
435	435	8 (5) Contractors may request reassignment to a new
436	436	9 mentor company.
437	437	10 (m) Disparity study. The Program Administrator shall
438	438	11 cooperate with the Illinois Power Agency in the conduct of a
439	439	12 disparity study, as described in subsection (c-15) of Section
440	440	13 1-75 of the Illinois Power Agency Act, and in the effectuation
441	441	14 of appropriate remedies necessary to address any
442	442	15 discrimination that such study may find. Potential remedies
443	443	16 shall include, but not be limited to, race-conscious remedies
444	444	17 to rapidly eliminate discrimination faced by minority
445	445	18 businesses and works in the industry this Program serves,
446	446	19 consistent with the law. Remedies shall be developed through
447	447	20 consultation with individuals, companies, and organizations
448	448	21 that have expertise on discrimination faced in the market and
449	449	22 potential legally permissible remedies for addressing it.
450	450	23 Notwithstanding any other requirement of this Section, the
451	451	24 Program Administrator shall modify program participation
452	452	25 criteria or goals as soon as the report has been published, in
453	453	26 such a way as is consistent with state and federal law, to
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464	464	1 rapidly eliminate discrimination on minority businesses and
465	465	2 workers in the industry this Program serves by setting
466	466	3 standards for Program participation. This study will be paid
467	467	4 for with funds from the Energy Transition Assistance Fund or
468	468	5 any other lawful source.
469	469	6 (n) Program budget.
470	470	7 (1) The Department may allocate up to $3,000,000
471	471	8 annually to the Primes Program Administrator for each of
472	472	9 the 3 regional budgets from the Energy Transition
473	473	10 Assistance Fund.
474	474	11 (2) The Primes Program Administrator shall work with
475	475	12 the Illinois Finance Authority and the Climate Bank as
476	476	13 established by Article 850 of the Illinois Finance
477	477	14 Authority Act or comparable financing institution so that
478	478	15 loan loss reserves may be sufficient to underwrite
479	479	16 $7,000,000 in low-interest loans in each of the 3 Program
480	480	17 delivery areas.
481	481	18 (3) Any grant and loan funding shall be made available
482	482	19 to participants in a timely fashion.
483	483	20 (Source: P.A. 102-662, eff. 9-15-21.)
484	484	21 (20 ILCS 730/5-60)
485	485	22 (Section scheduled to be repealed on September 15, 2045)
486	486	23 Sec. 5-60. Jobs and Environmental Justice Grant Program.
487	487	24 (a) In order to provide upfront capital to support the
488	488	25 development of projects, businesses, community organizations,
489	489
490	490
491	491
492	492
493	493
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495	495
496	496
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498	498	HB4687 - 13 - LRB103 36052 LNS 66139 b
499	499	1 and jobs creating opportunity for historically disadvantaged
500	500	2 populations, and to provide seed capital to support community
501	501	3 ownership of renewable energy projects, the Department of
502	502	4 Commerce and Economic Opportunity shall create and administer
503	503	5 a Jobs and Environmental Justice Grant Program. The grant
504	504	6 program shall be designed to help remove barriers to project,
505	505	7 community, and business development caused by a lack of
506	506	8 capital.
507	507	9 (b) The grant program shall provide grant awards of up to
508	508	10 $1,000,000 per application to support the development of
509	509	11 renewable energy resources as defined in Section 1-10 of the
510	510	12 Illinois Power Agency Act, and energy efficiency measures as
511	511	13 defined in Section 8-103B of the Public Utilities Act. The
512	512	14 amount of a grant award shall be based on a project's size and
513	513	15 scope. Grants shall be provided upfront, in advance of other
514	514	16 incentives, to provide businesses, organizations, and
515	515	17 community groups with capital needed to plan, develop, and
516	516	18 execute a project. Grants shall be designed to coordinate with
517	517	19 and supplement existing incentive programs, such as the
518	518	20 Adjustable Block program, the Illinois Solar for All Program,
519	519	21 the community renewable generation projects, and renewable
520	520	22 energy procurements as described in the Illinois Power Agency
521	521	23 Act, as well as utility energy efficiency measures as
522	522	24 described in Section 8-103B of the Public Utilities Act.
523	523	25 (c) The Jobs and Environmental Justice Grant Program shall
524	524	26 include 2 subprograms:
525	525
526	526
527	527
528	528
529	529
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531	531
532	532
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534	534	HB4687 - 14 - LRB103 36052 LNS 66139 b
535	535	1 (1) the Equitable Energy Future Grant Program; and
536	536	2 (2) the Community Solar Energy Sovereignty Grant
537	537	3 Program.
538	538	4 (d) The Equitable Energy Future Grant Program is designed
539	539	5 to provide seed funding and pre-development funding
540	540	6 opportunities for equity eligible contractors.
541	541	7 (1) The Equitable Energy Future Grant shall be awarded
542	542	8 to businesses and nonprofit organizations for costs
543	543	9 related to the following activities and project needs:
544	544	10 (i) planning and project development, including
545	545	11 costs for professional services such as architecture,
546	546	12 design, engineering, auditing, consulting, and
547	547	13 developer services;
548	548	14 (ii) project application, deposit, and approval;
549	549	15 (iii) purchasing and leasing of land;
550	550	16 (iv) permitting and zoning;
551	551	17 (v) interconnection application costs and fees,
552	552	18 studies, and expenses;
553	553	19 (vi) equipment and supplies;
554	554	20 (vii) community outreach, marketing, and
555	555	21 engagement; and
556	556	22 (viii) staff and operations expenses.
557	557	23 (2) Grants shall be awarded to projects that most
558	558	24 effectively provide opportunities for equity eligible
559	559	25 contractors and equity investment eligible communities,
560	560	26 and should consider the following criteria:
561	561
562	562
563	563
564	564
565	565
566	566	HB4687 - 14 - LRB103 36052 LNS 66139 b
567	567
568	568
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570	570	HB4687 - 15 - LRB103 36052 LNS 66139 b
571	571	1 (i) projects that provide community benefits,
572	572	2 which are projects that have one or more of the
573	573	3 following characteristics: (A) greater than 50% of the
574	574	4 project's energy provided or saved benefits low-income
575	575	5 residents, or (B) the project benefits not-for-profit
576	576	6 organizations providing services to low-income
577	577	7 households, affordable housing owners, or
578	578	8 community-based limited liability companies providing
579	579	9 services to low-income households;
580	580	10 (ii) projects that are located in equity
581	581	11 investment eligible communities;
582	582	12 (iii) projects that provide on-the-job training;
583	583	13 (iv) projects that contract with contractors who
584	584	14 are participating or have participated in the Clean
585	585	15 Energy Contractor Incubator Program, Clean Energy
586	586	16 Primes Contractor Accelerator Program, or similar
587	587	17 programs; and
588	588	18 (v) projects employ a minimum of 51% of its
589	589	19 workforce from participants and graduates of the Clean
590	590	20 Jobs Workforce Network Program, Illinois Climate Works
591	591	21 Preapprenticeship Program, and Returning Residents
592	592	22 Clean Jobs Training Program.
593	593	23 (3) Grants shall be awarded to applicants that meet
594	594	24 the following criteria:
595	595	25 (i) are equity eligible contractors per the equity
596	596	26 accountability systems described in subsection (c-10)
597	597
598	598
599	599
600	600
601	601
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603	603
604	604
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606	606	HB4687 - 16 - LRB103 36052 LNS 66139 b
607	607	1 of Section 1-75 of the Illinois Power Agency Act, or
608	608	2 meet the equity building criteria in paragraph (9.5)
609	609	3 of subsection (g) of Section 8-103B of the Public
610	610	4 Utilities Act; and
611	611	5 (ii) provide demonstrable proof of a historical or
612	612	6 future, and persisting, long-term partnership with the
613	613	7 community in which the project will be located.
614	614	8 (e) The Community Solar Energy Sovereignty Grant Program
615	615	9 shall be designed to support the pre-development and
616	616	10 development of community solar projects that promote community
617	617	11 ownership and energy sovereignty.
618	618	12 (1) Grants shall be awarded to applicants that best
619	619	13 demonstrate the ability and intent to create community
620	620	14 ownership and other local community benefits, including
621	621	15 local community wealth building via community renewable
622	622	16 generation projects. Grants shall be prioritized to
623	623	17 applicants for whom:
624	624	18 (i) the proposed project is located in and
625	625	19 supporting an equity investment eligible community or
626	626	20 communities; and
627	627	21 (ii) the proposed project provides additional
628	628	22 benefits for participating low-income households.
629	629	23 (2) Grant funds shall be awarded to support project
630	630	24 pre-development work and may also be awarded to support
631	631	25 the development of programs and entities to assist in the
632	632	26 long-term governance, management, and maintenance of
633	633
634	634
635	635
636	636
637	637
638	638	HB4687 - 16 - LRB103 36052 LNS 66139 b
639	639
640	640
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642	642	HB4687 - 17 - LRB103 36052 LNS 66139 b
643	643	1 community solar projects, such as community solar
644	644	2 cooperatives. For example, funds may be awarded for:
645	645	3 (i) early stage project planning;
646	646	4 (ii) project team organization;
647	647	5 (iii) site identification;
648	648	6 (iv) organizing a project business model and
649	649	7 securing financing;
650	650	8 (v) procurement and contracting;
651	651	9 (vi) customer outreach and enrollment;
652	652	10 (vii) preliminary site assessments;
653	653	11 (viii) development of cooperative or community
654	654	12 ownership model; and
655	655	13 (ix) development of project models that allocate
656	656	14 benefits to equity investment eligible communities.
657	657	15 (3) Grant recipients shall submit reports to the
658	658	16 Department at the end of the grant term on the activities
659	659	17 pursued under their grant and any lessons learned for
660	660	18 publication on the Department's website so that other
661	661	19 energy sovereignty projects may learn from their
662	662	20 experience.
663	663	21 (4) Eligible applicants shall include community-based
664	664	22 organizations, as defined in the Illinois Power Agency's
665	665	23 long-term renewable resources procurement plan, or
666	666	24 technical service providers working in direct partnership
667	667	25 with community-based organizations.
668	668	26 (5) The amount of a grant shall be based on a projects'
669	669
670	670
671	671
672	672
673	673
674	674	HB4687 - 17 - LRB103 36052 LNS 66139 b
675	675
676	676
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678	678	HB4687 - 18 - LRB103 36052 LNS 66139 b
679	679	1 size and scope. Grants shall allow for a significant
680	680	2 portion, or the entirety, of the grant value to be made
681	681	3 upfront, in advance of other incentives, to ensure
682	682	4 businesses and organizations have the capital needed to
683	683	5 plan, develop, and execute a project.
684	684	6 (f) The application process for both subprograms shall not
685	685	7 be burdensome on applicants, nor require extensive technical
686	686	8 knowledge, and shall be able to be completed on less than 4
687	687	9 standard letter-sized pages.
688	688	10 (g) These grant subprograms may be coordinated with
689	689	11 low-interest and no-interest financing opportunities offered
690	690	12 through the Clean Energy Jobs and Justice Fund.
691	691	13 (h) The grant subprograms may have a budget of up to
692	692	14 $34,000,000 per year. No more than 25% of the allocated budget
693	693	15 shall go to the Community Solar Energy Sovereignty Grant
694	694	16 Program.
695	695	17 (Source: P.A. 102-662, eff. 9-15-21.)
696	696	18 Section 10. The Illinois Power Agency Act is amended by
697	697	19 changing Sections 1-5, 1-20, 1-56, 1-75, and 1-129 as follows:
698	698	20 (20 ILCS 3855/1-5)
699	699	21 Sec. 1-5. Legislative declarations and findings. The
700	700	22 General Assembly finds and declares:
701	701	23 (1) The health, welfare, and prosperity of all
702	702	24 Illinois residents require the provision of adequate,
703	703
704	704
705	705
706	706
707	707
708	708	HB4687 - 18 - LRB103 36052 LNS 66139 b
709	709
710	710
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712	712	HB4687 - 19 - LRB103 36052 LNS 66139 b
713	713	1 reliable, affordable, efficient, and environmentally
714	714	2 sustainable electric service at the lowest total cost over
715	715	3 time, taking into account any benefits of price stability.
716	716	4 (1.5) To provide the highest quality of life for the
717	717	5 residents of Illinois and to provide for a clean and
718	718	6 healthy environment, it is the policy of this State to
719	719	7 rapidly transition to 100% clean energy by 2050.
720	720	8 (2) (Blank).
721	721	9 (3) (Blank).
722	722	10 (4) It is necessary to improve the process of
723	723	11 procuring electricity to serve Illinois residents, to
724	724	12 promote investment in energy efficiency and
725	725	13 demand-response measures, and to maintain and support
726	726	14 development of clean coal technologies, generation
727	727	15 resources that operate at all hours of the day and under
728	728	16 all weather conditions, zero emission facilities, and
729	729	17 renewable resources.
730	730	18 (5) Procuring a diverse electricity supply portfolio
731	731	19 will ensure the lowest total cost over time for adequate,
732	732	20 reliable, efficient, and environmentally sustainable
733	733	21 electric service.
734	734	22 (6) Including renewable resources and zero emission
735	735	23 credits from zero emission facilities in that portfolio
736	736	24 will reduce long-term direct and indirect costs to
737	737	25 consumers by decreasing environmental impacts and by
738	738	26 avoiding or delaying the need for new generation,
739	739
740	740
741	741
742	742
743	743
744	744	HB4687 - 19 - LRB103 36052 LNS 66139 b
745	745
746	746
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748	748	HB4687 - 20 - LRB103 36052 LNS 66139 b
749	749	1 transmission, and distribution infrastructure. Developing
750	750	2 new renewable energy resources in Illinois, including
751	751	3 brownfield solar projects and community solar projects,
752	752	4 will help to diversify Illinois electricity supply, avoid
753	753	5 and reduce pollution, reduce peak demand, and enhance
754	754	6 public health and well-being of Illinois residents.
755	755	7 (7) Developing community solar projects in Illinois
756	756	8 will help to expand access to renewable energy resources
757	757	9 to more Illinois residents.
758	758	10 (8) Developing brownfield solar projects in Illinois
759	759	11 will help return blighted or contaminated land to
760	760	12 productive use while enhancing public health and the
761	761	13 well-being of Illinois residents, including those in
762	762	14 environmental justice communities.
763	763	15 (9) Energy efficiency, demand-response measures, zero
764	764	16 emission energy, and renewable energy are resources
765	765	17 currently underused in Illinois. These resources should be
766	766	18 used, when cost effective, to reduce costs to consumers,
767	767	19 improve reliability, and improve environmental quality and
768	768	20 public health.
769	769	21 (10) The State should encourage the use of advanced
770	770	22 clean coal technologies that capture and sequester carbon
771	771	23 dioxide emissions to advance environmental protection
772	772	24 goals and to demonstrate the viability of coal and
773	773	25 coal-derived fuels in a carbon-constrained economy.
774	774	26 (10.5) The State should encourage the development of
775	775
776	776
777	777
778	778
779	779
780	780	HB4687 - 20 - LRB103 36052 LNS 66139 b
781	781
782	782
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784	784	HB4687 - 21 - LRB103 36052 LNS 66139 b
785	785	1 interregional high voltage direct current (HVDC)
786	786	2 transmission lines that benefit Illinois. All ratepayers
787	787	3 in the State served by the regional transmission
788	788	4 organization where the HVDC converter station is
789	789	5 interconnected benefit from the long-term price stability
790	790	6 and market access provided by interregional HVDC
791	791	7 transmission facilities. The benefits to Illinois include:
792	792	8 reduction in wholesale power prices; access to lower-cost
793	793	9 markets; enabling the integration of additional renewable
794	794	10 generating units within the State through near
795	795	11 instantaneous dispatchability and the provision of
796	796	12 ancillary services; creating good-paying union jobs in
797	797	13 Illinois; and, enhancing grid reliability and climate
798	798	14 resilience via HVDC facilities that are installed
799	799	15 underground.
800	800	16 (10.6) The health, welfare, and safety of the people
801	801	17 of the State are advanced by developing new HVDC
802	802	18 transmission lines predominantly along transportation
803	803	19 rights-of-way, with an HVDC converter station that is
804	804	20 located in the service territory of a public utility as
805	805	21 defined in Section 3-105 of the Public Utilities Act
806	806	22 serving more than 3,000,000 retail customers, and with a
807	807	23 project labor agreement as defined in Section 1-10 of this
808	808	24 Act.
809	809	25 (11) The General Assembly enacted Public Act 96-0795
810	810	26 to reform the State's purchasing processes, recognizing
811	811
812	812
813	813
814	814
815	815
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817	817
818	818
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820	820	HB4687 - 22 - LRB103 36052 LNS 66139 b
821	821	1 that government procurement is susceptible to abuse if
822	822	2 structural and procedural safeguards are not in place to
823	823	3 ensure independence, insulation, oversight, and
824	824	4 transparency.
825	825	5 (12) The principles that underlie the procurement
826	826	6 reform legislation apply also in the context of power
827	827	7 purchasing.
828	828	8 (13) To ensure that the benefits of installing
829	829	9 renewable resources are available to all Illinois
830	830	10 residents and located across the State, subject to
831	831	11 appropriation, it is necessary for the Agency to provide
832	832	12 public information and educational resources on how
833	833	13 residents can benefit from the expansion of renewable
834	834	14 energy in Illinois and participate in the Illinois Solar
835	835	15 for All Program established in Section 1-56, the
836	836	16 Adjustable Block program established in Section 1-75, the
837	837	17 job training programs established by paragraph (1) of
838	838	18 subsection (a) of Section 16-108.12 of the Public
839	839	19 Utilities Act, and the programs and resources established
840	840	20 by the Energy Transition Act.
841	841	21 The General Assembly therefore finds that it is necessary
842	842	22 to create the Illinois Power Agency and that the goals and
843	843	23 objectives of that Agency are to accomplish each of the
844	844	24 following:
845	845	25 (A) Develop electricity procurement plans to ensure
846	846	26 adequate, reliable, affordable, efficient, and
847	847
848	848
849	849
850	850
851	851
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853	853
854	854
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856	856	HB4687 - 23 - LRB103 36052 LNS 66139 b
857	857	1 environmentally sustainable electric service at the lowest
858	858	2 total cost over time, taking into account any benefits of
859	859	3 price stability, for electric utilities that on December
860	860	4 31, 2005 provided electric service to at least 100,000
861	861	5 customers in Illinois and for small multi-jurisdictional
862	862	6 electric utilities that (i) on December 31, 2005 served
863	863	7 less than 100,000 customers in Illinois and (ii) request a
864	864	8 procurement plan for their Illinois jurisdictional load.
865	865	9 The procurement plan shall be updated on an annual basis
866	866	10 and shall include renewable energy resources and,
867	867	11 beginning with the delivery year commencing June 1, 2017,
868	868	12 zero emission credits from zero emission facilities
869	869	13 sufficient to achieve the standards specified in this Act.
870	870	14 (B) Conduct the competitive procurement processes
871	871	15 identified in this Act.
872	872	16 (C) Develop electric generation and co-generation
873	873	17 facilities that use indigenous coal or renewable
874	874	18 resources, or both, financed with bonds issued by the
875	875	19 Illinois Finance Authority.
876	876	20 (D) Supply electricity from the Agency's facilities at
877	877	21 cost to one or more of the following: municipal electric
878	878	22 systems, governmental aggregators, or rural electric
879	879	23 cooperatives in Illinois.
880	880	24 (E) Ensure that the process of power procurement is
881	881	25 conducted in an ethical and transparent fashion, immune
882	882	26 from improper influence.
883	883
884	884
885	885
886	886
887	887
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889	889
890	890
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892	892	HB4687 - 24 - LRB103 36052 LNS 66139 b
893	893	1 (F) Continue to review its policies and practices to
894	894	2 determine how best to meet its mission of providing the
895	895	3 lowest cost power to the greatest number of people, at any
896	896	4 given point in time, in accordance with applicable law.
897	897	5 (G) Operate in a structurally insulated, independent,
898	898	6 and transparent fashion so that nothing impedes the
899	899	7 Agency's mission to secure power at the best prices the
900	900	8 market will bear, provided that the Agency meets all
901	901	9 applicable legal requirements.
902	902	10 (H) Implement renewable energy procurement and
903	903	11 training programs throughout the State to diversify
904	904	12 Illinois electricity supply, improve reliability, avoid
905	905	13 and reduce pollution, reduce peak demand, and enhance
906	906	14 public health and well-being of Illinois residents,
907	907	15 including low-income residents.
908	908	16 (Source: P.A. 102-662, eff. 9-15-21.)
909	909	17 (20 ILCS 3855/1-20)
910	910	18 Sec. 1-20. General powers and duties of the Agency.
911	911	19 (a) The Agency is authorized to do each of the following:
912	912	20 (1) Develop electricity procurement plans to ensure
913	913	21 adequate, reliable, affordable, efficient, and
914	914	22 environmentally sustainable electric service at the lowest
915	915	23 total cost over time, taking into account any benefits of
916	916	24 price stability, for electric utilities that on December
917	917	25 31, 2005 provided electric service to at least 100,000
918	918
919	919
920	920
921	921
922	922
923	923	HB4687 - 24 - LRB103 36052 LNS 66139 b
924	924
925	925
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927	927	HB4687 - 25 - LRB103 36052 LNS 66139 b
928	928	1 customers in Illinois and for small multi-jurisdictional
929	929	2 electric utilities that (A) on December 31, 2005 served
930	930	3 less than 100,000 customers in Illinois and (B) request a
931	931	4 procurement plan for their Illinois jurisdictional load.
932	932	5 Except as provided in paragraph (1.5) of this subsection
933	933	6 (a), the electricity procurement plans shall be updated on
934	934	7 an annual basis and shall include electricity generated
935	935	8 from renewable resources sufficient to achieve the
936	936	9 standards specified in this Act. Beginning with the
937	937	10 delivery year commencing June 1, 2017, develop procurement
938	938	11 plans to include zero emission credits generated from zero
939	939	12 emission facilities sufficient to achieve the standards
940	940	13 specified in this Act. Beginning with the delivery year
941	941	14 commencing on June 1, 2022, the Agency is authorized to
942	942	15 develop carbon mitigation credit procurement plans to
943	943	16 include carbon mitigation credits generated from
944	944	17 carbon-free energy resources sufficient to achieve the
945	945	18 standards specified in this Act.
946	946	19 (1.5) Develop a long-term renewable resources
947	947	20 procurement plan in accordance with subsection (c) of
948	948	21 Section 1-75 of this Act for renewable energy credits in
949	949	22 amounts sufficient to achieve the standards specified in
950	950	23 this Act for delivery years commencing June 1, 2017 and
951	951	24 for the programs and renewable energy credits specified in
952	952	25 Section 1-56 of this Act. Electricity procurement plans
953	953	26 for delivery years commencing after May 31, 2017, shall
954	954
955	955
956	956
957	957
958	958
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960	960
961	961
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963	963	HB4687 - 26 - LRB103 36052 LNS 66139 b
964	964	1 not include procurement of renewable energy resources.
965	965	2 (2) Conduct competitive procurement processes to
966	966	3 procure the supply resources identified in the electricity
967	967	4 procurement plan, pursuant to Section 16-111.5 of the
968	968	5 Public Utilities Act, and, for the delivery year
969	969	6 commencing June 1, 2017, conduct procurement processes to
970	970	7 procure zero emission credits from zero emission
971	971	8 facilities, under subsection (d-5) of Section 1-75 of this
972	972	9 Act. For the delivery year commencing June 1, 2022, the
973	973	10 Agency is authorized to conduct procurement processes to
974	974	11 procure carbon mitigation credits from carbon-free energy
975	975	12 resources, under subsection (d-10) of Section 1-75 of this
976	976	13 Act.
977	977	14 (2.5) Beginning with the procurement for the 2017
978	978	15 delivery year, conduct competitive procurement processes
979	979	16 and implement programs to procure renewable energy credits
980	980	17 identified in the long-term renewable resources
981	981	18 procurement plan developed and approved under subsection
982	982	19 (c) of Section 1-75 of this Act and Section 16-111.5 of the
983	983	20 Public Utilities Act.
984	984	21 (2.10) (Blank). Oversee the procurement by electric
985	985	22 utilities that served more than 300,000 customers in this
986	986	23 State as of January 1, 2019 of renewable energy credits
987	987	24 from new renewable energy facilities to be installed,
988	988	25 along with energy storage facilities, at or adjacent to
989	989	26 the sites of electric generating facilities that burned
990	990
991	991
992	992
993	993
994	994
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996	996
997	997
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999	999	HB4687 - 27 - LRB103 36052 LNS 66139 b
1000	1000	1 coal as their primary fuel source as of January 1, 2016 in
1001	1001	2 accordance with subsection (c-5) of Section 1-75 of this
1002	1002	3 Act.
1003	1003	4 (2.15) Oversee the procurement by electric utilities
1004	1004	5 of renewable energy credits from newly modernized or
1005	1005	6 retooled hydropower dams or dams that have been converted
1006	1006	7 to support hydropower generation.
1007	1007	8 (3) Develop electric generation and co-generation
1008	1008	9 facilities that use indigenous coal or renewable
1009	1009	10 resources, or both, financed with bonds issued by the
1010	1010	11 Illinois Finance Authority.
1011	1011	12 (4) Supply electricity from the Agency's facilities at
1012	1012	13 cost to one or more of the following: municipal electric
1013	1013	14 systems, governmental aggregators, or rural electric
1014	1014	15 cooperatives in Illinois.
1015	1015	16 (b) Except as otherwise limited by this Act, the Agency
1016	1016	17 has all of the powers necessary or convenient to carry out the
1017	1017	18 purposes and provisions of this Act, including without
1018	1018	19 limitation, each of the following:
1019	1019	20 (1) To have a corporate seal, and to alter that seal at
1020	1020	21 pleasure, and to use it by causing it or a facsimile to be
1021	1021	22 affixed or impressed or reproduced in any other manner.
1022	1022	23 (2) To use the services of the Illinois Finance
1023	1023	24 Authority necessary to carry out the Agency's purposes.
1024	1024	25 (3) To negotiate and enter into loan agreements and
1025	1025	26 other agreements with the Illinois Finance Authority.
1026	1026
1027	1027
1028	1028
1029	1029
1030	1030
1031	1031	HB4687 - 27 - LRB103 36052 LNS 66139 b
1032	1032
1033	1033
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1035	1035	HB4687 - 28 - LRB103 36052 LNS 66139 b
1036	1036	1 (4) To obtain and employ personnel and hire
1037	1037	2 consultants that are necessary to fulfill the Agency's
1038	1038	3 purposes, and to make expenditures for that purpose within
1039	1039	4 the appropriations for that purpose.
1040	1040	5 (5) To purchase, receive, take by grant, gift, devise,
1041	1041	6 bequest, or otherwise, lease, or otherwise acquire, own,
1042	1042	7 hold, improve, employ, use, and otherwise deal in and
1043	1043	8 with, real or personal property whether tangible or
1044	1044	9 intangible, or any interest therein, within the State.
1045	1045	10 (6) To acquire real or personal property, whether
1046	1046	11 tangible or intangible, including without limitation
1047	1047	12 property rights, interests in property, franchises,
1048	1048	13 obligations, contracts, and debt and equity securities,
1049	1049	14 and to do so by the exercise of the power of eminent domain
1050	1050	15 in accordance with Section 1-21; except that any real
1051	1051	16 property acquired by the exercise of the power of eminent
1052	1052	17 domain must be located within the State.
1053	1053	18 (7) To sell, convey, lease, exchange, transfer,
1054	1054	19 abandon, or otherwise dispose of, or mortgage, pledge, or
1055	1055	20 create a security interest in, any of its assets,
1056	1056	21 properties, or any interest therein, wherever situated.
1057	1057	22 (8) To purchase, take, receive, subscribe for, or
1058	1058	23 otherwise acquire, hold, make a tender offer for, vote,
1059	1059	24 employ, sell, lend, lease, exchange, transfer, or
1060	1060	25 otherwise dispose of, mortgage, pledge, or grant a
1061	1061	26 security interest in, use, and otherwise deal in and with,
1062	1062
1063	1063
1064	1064
1065	1065
1066	1066
1067	1067	HB4687 - 28 - LRB103 36052 LNS 66139 b
1068	1068
1069	1069
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1071	1071	HB4687 - 29 - LRB103 36052 LNS 66139 b
1072	1072	1 bonds and other obligations, shares, or other securities
1073	1073	2 (or interests therein) issued by others, whether engaged
1074	1074	3 in a similar or different business or activity.
1075	1075	4 (9) To make and execute agreements, contracts, and
1076	1076	5 other instruments necessary or convenient in the exercise
1077	1077	6 of the powers and functions of the Agency under this Act,
1078	1078	7 including contracts with any person, including personal
1079	1079	8 service contracts, or with any local government, State
1080	1080	9 agency, or other entity; and all State agencies and all
1081	1081	10 local governments are authorized to enter into and do all
1082	1082	11 things necessary to perform any such agreement, contract,
1083	1083	12 or other instrument with the Agency. No such agreement,
1084	1084	13 contract, or other instrument shall exceed 40 years.
1085	1085	14 (10) To lend money, invest and reinvest its funds in
1086	1086	15 accordance with the Public Funds Investment Act, and take
1087	1087	16 and hold real and personal property as security for the
1088	1088	17 payment of funds loaned or invested.
1089	1089	18 (11) To borrow money at such rate or rates of interest
1090	1090	19 as the Agency may determine, issue its notes, bonds, or
1091	1091	20 other obligations to evidence that indebtedness, and
1092	1092	21 secure any of its obligations by mortgage or pledge of its
1093	1093	22 real or personal property, machinery, equipment,
1094	1094	23 structures, fixtures, inventories, revenues, grants, and
1095	1095	24 other funds as provided or any interest therein, wherever
1096	1096	25 situated.
1097	1097	26 (12) To enter into agreements with the Illinois
1098	1098
1099	1099
1100	1100
1101	1101
1102	1102
1103	1103	HB4687 - 29 - LRB103 36052 LNS 66139 b
1104	1104
1105	1105
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1107	1107	HB4687 - 30 - LRB103 36052 LNS 66139 b
1108	1108	1 Finance Authority to issue bonds whether or not the income
1109	1109	2 therefrom is exempt from federal taxation.
1110	1110	3 (13) To procure insurance against any loss in
1111	1111	4 connection with its properties or operations in such
1112	1112	5 amount or amounts and from such insurers, including the
1113	1113	6 federal government, as it may deem necessary or desirable,
1114	1114	7 and to pay any premiums therefor.
1115	1115	8 (14) To negotiate and enter into agreements with
1116	1116	9 trustees or receivers appointed by United States
1117	1117	10 bankruptcy courts or federal district courts or in other
1118	1118	11 proceedings involving adjustment of debts and authorize
1119	1119	12 proceedings involving adjustment of debts and authorize
1120	1120	13 legal counsel for the Agency to appear in any such
1121	1121	14 proceedings.
1122	1122	15 (15) To file a petition under Chapter 9 of Title 11 of
1123	1123	16 the United States Bankruptcy Code or take other similar
1124	1124	17 action for the adjustment of its debts.
1125	1125	18 (16) To enter into management agreements for the
1126	1126	19 operation of any of the property or facilities owned by
1127	1127	20 the Agency.
1128	1128	21 (17) To enter into an agreement to transfer and to
1129	1129	22 transfer any land, facilities, fixtures, or equipment of
1130	1130	23 the Agency to one or more municipal electric systems,
1131	1131	24 governmental aggregators, or rural electric agencies or
1132	1132	25 cooperatives, for such consideration and upon such terms
1133	1133	26 as the Agency may determine to be in the best interest of
1134	1134
1135	1135
1136	1136
1137	1137
1138	1138
1139	1139	HB4687 - 30 - LRB103 36052 LNS 66139 b
1140	1140
1141	1141
1142	1142	HB4687- 31 -LRB103 36052 LNS 66139 b HB4687 - 31 - LRB103 36052 LNS 66139 b
1143	1143	HB4687 - 31 - LRB103 36052 LNS 66139 b
1144	1144	1 the residents of Illinois.
1145	1145	2 (18) To enter upon any lands and within any building
1146	1146	3 whenever in its judgment it may be necessary for the
1147	1147	4 purpose of making surveys and examinations to accomplish
1148	1148	5 any purpose authorized by this Act.
1149	1149	6 (19) To maintain an office or offices at such place or
1150	1150	7 places in the State as it may determine.
1151	1151	8 (20) To request information, and to make any inquiry,
1152	1152	9 investigation, survey, or study that the Agency may deem
1153	1153	10 necessary to enable it effectively to carry out the
1154	1154	11 provisions of this Act.
1155	1155	12 (21) To accept and expend appropriations.
1156	1156	13 (22) To engage in any activity or operation that is
1157	1157	14 incidental to and in furtherance of efficient operation to
1158	1158	15 accomplish the Agency's purposes, including hiring
1159	1159	16 employees that the Director deems essential for the
1160	1160	17 operations of the Agency.
1161	1161	18 (23) To adopt, revise, amend, and repeal rules with
1162	1162	19 respect to its operations, properties, and facilities as
1163	1163	20 may be necessary or convenient to carry out the purposes
1164	1164	21 of this Act, subject to the provisions of the Illinois
1165	1165	22 Administrative Procedure Act and Sections 1-22 and 1-35 of
1166	1166	23 this Act.
1167	1167	24 (24) To establish and collect charges and fees as
1168	1168	25 described in this Act.
1169	1169	26 (25) To conduct competitive gasification feedstock
1170	1170
1171	1171
1172	1172
1173	1173
1174	1174
1175	1175	HB4687 - 31 - LRB103 36052 LNS 66139 b
1176	1176
1177	1177
1178	1178	HB4687- 32 -LRB103 36052 LNS 66139 b HB4687 - 32 - LRB103 36052 LNS 66139 b
1179	1179	HB4687 - 32 - LRB103 36052 LNS 66139 b
1180	1180	1 procurement processes to procure the feedstocks for the
1181	1181	2 clean coal SNG brownfield facility in accordance with the
1182	1182	3 requirements of Section 1-78 of this Act.
1183	1183	4 (26) To review, revise, and approve sourcing
1184	1184	5 agreements and mediate and resolve disputes between gas
1185	1185	6 utilities and the clean coal SNG brownfield facility
1186	1186	7 pursuant to subsection (h-1) of Section 9-220 of the
1187	1187	8 Public Utilities Act.
1188	1188	9 (27) To request, review and accept proposals, execute
1189	1189	10 contracts, purchase renewable energy credits and otherwise
1190	1190	11 dedicate funds from the Illinois Power Agency Renewable
1191	1191	12 Energy Resources Fund to create and carry out the
1192	1192	13 objectives of the Illinois Solar for All Program in
1193	1193	14 accordance with Section 1-56 of this Act.
1194	1194	15 (28) (Blank). To ensure Illinois residents and
1195	1195	16 business benefit from programs administered by the Agency
1196	1196	17 and are properly protected from any deceptive or
1197	1197	18 misleading marketing practices by participants in the
1198	1198	19 Agency's programs and procurements.
1199	1199	20 (c) (Blank). In conducting the procurement of electricity
1200	1200	21 or other products, beginning January 1, 2022, the Agency shall
1201	1201	22 not procure any products or services from persons or
1202	1202	23 organizations that are in violation of the Displaced Energy
1203	1203	24 Workers Bill of Rights, as provided under the Energy Community
1204	1204	25 Reinvestment Act at the time of the procurement event or fail
1205	1205	26 to comply the labor standards established in subparagraph (Q)
1206	1206
1207	1207
1208	1208
1209	1209
1210	1210
1211	1211	HB4687 - 32 - LRB103 36052 LNS 66139 b
1212	1212
1213	1213
1214	1214	HB4687- 33 -LRB103 36052 LNS 66139 b HB4687 - 33 - LRB103 36052 LNS 66139 b
1215	1215	HB4687 - 33 - LRB103 36052 LNS 66139 b
1216	1216	1 of paragraph (1) of subsection (c) of Section 1-75.
1217	1217	2 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24.)
1218	1218	3 (20 ILCS 3855/1-56)
1219	1219	4 Sec. 1-56. Illinois Power Agency Renewable Energy
1220	1220	5 Resources Fund; Illinois Solar for All Program.
1221	1221	6 (a) The Illinois Power Agency Renewable Energy Resources
1222	1222	7 Fund is created as a special fund in the State treasury.
1223	1223	8 (b) The Illinois Power Agency Renewable Energy Resources
1224	1224	9 Fund shall be administered by the Agency as described in this
1225	1225	10 subsection (b), provided that the changes to this subsection
1226	1226	11 (b) made by Public Act 99-906 this amendatory Act of the 99th
1227	1227	12 General Assembly shall not interfere with existing contracts
1228	1228	13 under this Section.
1229	1229	14 (1) The Illinois Power Agency Renewable Energy
1230	1230	15 Resources Fund shall be used to purchase renewable energy
1231	1231	16 credits according to any approved procurement plan
1232	1232	17 developed by the Agency prior to June 1, 2017.
1233	1233	18 (2) The Illinois Power Agency Renewable Energy
1234	1234	19 Resources Fund shall also be used to create the Illinois
1235	1235	20 Solar for All Program, which provides incentives for
1236	1236	21 low-income distributed generation and community solar
1237	1237	22 projects, and other associated approved expenditures. The
1238	1238	23 objectives of the Illinois Solar for All Program are to
1239	1239	24 bring photovoltaics to low-income communities in this
1240	1240	25 State in a manner that maximizes the development of new
1241	1241
1242	1242
1243	1243
1244	1244
1245	1245
1246	1246	HB4687 - 33 - LRB103 36052 LNS 66139 b
1247	1247
1248	1248
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1250	1250	HB4687 - 34 - LRB103 36052 LNS 66139 b
1251	1251	1 photovoltaic generating facilities, to create a long-term,
1252	1252	2 low-income solar marketplace throughout this State, to
1253	1253	3 integrate, through interaction with stakeholders, with
1254	1254	4 existing energy efficiency initiatives, and to minimize
1255	1255	5 administrative costs. The Illinois Solar for All Program
1256	1256	6 shall be implemented in a manner that seeks to minimize
1257	1257	7 administrative costs, and maximize efficiencies and
1258	1258	8 synergies available through coordination with similar
1259	1259	9 initiatives, including the Adjustable Block program
1260	1260	10 described in subparagraphs (K) through (M) of paragraph
1261	1261	11 (1) of subsection (c) of Section 1-75, energy efficiency
1262	1262	12 programs, job training programs, and community action
1263	1263	13 agencies. The Agency shall strive to ensure that renewable
1264	1264	14 energy credits procured through the Illinois Solar for All
1265	1265	15 Program and each of its subprograms are purchased from
1266	1266	16 projects across the breadth of low-income and
1267	1267	17 environmental justice communities in Illinois, including
1268	1268	18 both urban and rural communities, are not concentrated in
1269	1269	19 a few communities, and do not exclude particular
1270	1270	20 low-income or environmental justice communities. The
1271	1271	21 Agency shall include a description of its proposed
1272	1272	22 approach to the design, administration, implementation and
1273	1273	23 evaluation of the Illinois Solar for All Program, as part
1274	1274	24 of the long-term renewable resources procurement plan
1275	1275	25 authorized by subsection (c) of Section 1-75 of this Act,
1276	1276	26 and the program shall be designed to grow the low-income
1277	1277
1278	1278
1279	1279
1280	1280
1281	1281
1282	1282	HB4687 - 34 - LRB103 36052 LNS 66139 b
1283	1283
1284	1284
1285	1285	HB4687- 35 -LRB103 36052 LNS 66139 b HB4687 - 35 - LRB103 36052 LNS 66139 b
1286	1286	HB4687 - 35 - LRB103 36052 LNS 66139 b
1287	1287	1 solar market. The Agency or utility, as applicable, shall
1288	1288	2 purchase renewable energy credits from the (i)
1289	1289	3 photovoltaic distributed renewable energy generation
1290	1290	4 projects and (ii) community solar projects that are
1291	1291	5 procured under procurement processes authorized by the
1292	1292	6 long-term renewable resources procurement plans approved
1293	1293	7 by the Commission.
1294	1294	8 The Illinois Solar for All Program shall include the
1295	1295	9 program offerings described in subparagraphs (A) through
1296	1296	10 (E) of this paragraph (2), which the Agency shall
1297	1297	11 implement through contracts with third-party providers
1298	1298	12 and, subject to appropriation, pay the approximate amounts
1299	1299	13 identified using monies available in the Illinois Power
1300	1300	14 Agency Renewable Energy Resources Fund. Each contract that
1301	1301	15 provides for the installation of solar facilities shall
1302	1302	16 provide that the solar facilities will produce energy and
1303	1303	17 economic benefits, at a level determined by the Agency to
1304	1304	18 be reasonable, for the participating low-income low income
1305	1305	19 customers. The monies available in the Illinois Power
1306	1306	20 Agency Renewable Energy Resources Fund and not otherwise
1307	1307	21 committed to contracts executed under subsection (i) of
1308	1308	22 this Section, as well as, in the case of the programs
1309	1309	23 described under subparagraphs (A) through (E) of this
1310	1310	24 paragraph (2), funding authorized pursuant to subparagraph
1311	1311	25 (O) of paragraph (1) of subsection (c) of Section 1-75 of
1312	1312	26 this Act, shall initially be allocated among the programs
1313	1313
1314	1314
1315	1315
1316	1316
1317	1317
1318	1318	HB4687 - 35 - LRB103 36052 LNS 66139 b
1319	1319
1320	1320
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1322	1322	HB4687 - 36 - LRB103 36052 LNS 66139 b
1323	1323	1 described in this paragraph (2), as follows: 35% of these
1324	1324	2 funds shall be allocated to programs described in
1325	1325	3 subparagraphs (A) and (E) of this paragraph (2), 40% of
1326	1326	4 these funds shall be allocated to programs described in
1327	1327	5 subparagraph (B) of this paragraph (2), and 25% of these
1328	1328	6 funds shall be allocated to programs described in
1329	1329	7 subparagraph (C) of this paragraph (2). The allocation of
1330	1330	8 funds among subparagraphs (A), (B), (C), and (E) of this
1331	1331	9 paragraph (2) may be changed if the Agency, after
1332	1332	10 receiving input through a stakeholder process, determines
1333	1333	11 incentives in subparagraphs (A), (B), (C), or (E) of this
1334	1334	12 paragraph (2) have not been adequately subscribed to fully
1335	1335	13 utilize available Illinois Solar for All Program funds.
1336	1336	14 Contracts that will be paid with funds in the Illinois
1337	1337	15 Power Agency Renewable Energy Resources Fund shall be
1338	1338	16 executed by the Agency. Contracts that will be paid with
1339	1339	17 funds collected by an electric utility shall be executed
1340	1340	18 by the electric utility.
1341	1341	19 Contracts under the Illinois Solar for All Program
1342	1342	20 shall include an approach, as set forth in the long-term
1343	1343	21 renewable resources procurement plans, to ensure the
1344	1344	22 wholesale market value of the energy is credited to
1345	1345	23 participating low-income customers or organizations and to
1346	1346	24 ensure tangible economic benefits flow directly to program
1347	1347	25 participants, except in the case of low-income
1348	1348	26 multi-family housing where the low-income customer does
1349	1349
1350	1350
1351	1351
1352	1352
1353	1353
1354	1354	HB4687 - 36 - LRB103 36052 LNS 66139 b
1355	1355
1356	1356
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1358	1358	HB4687 - 37 - LRB103 36052 LNS 66139 b
1359	1359	1 not directly pay for energy. Priority shall be given to
1360	1360	2 projects that demonstrate meaningful involvement of
1361	1361	3 low-income community members in designing the initial
1362	1362	4 proposals. Acceptable proposals to implement projects must
1363	1363	5 demonstrate the applicant's ability to conduct initial
1364	1364	6 community outreach, education, and recruitment of
1365	1365	7 low-income participants in the community. Projects must
1366	1366	8 include job training opportunities if available, with the
1367	1367	9 specific level of trainee usage to be determined through
1368	1368	10 the Agency's long-term renewable resources procurement
1369	1369	11 plan, and the Illinois Solar for All Program Administrator
1370	1370	12 shall coordinate with the job training programs described
1371	1371	13 in paragraph (1) of subsection (a) of Section 16-108.12 of
1372	1372	14 the Public Utilities Act and in the Energy Transition Act.
1373	1373	15 The Agency shall make every effort to ensure that
1374	1374	16 small and emerging businesses, particularly those located
1375	1375	17 in low-income and environmental justice communities, are
1376	1376	18 able to participate in the Illinois Solar for All Program.
1377	1377	19 These efforts may include, but shall not be limited to,
1378	1378	20 proactive support from the program administrator,
1379	1379	21 different or preferred access to subprograms and
1380	1380	22 administrator-identified customers or grassroots
1381	1381	23 education provider-identified customers, and different
1382	1382	24 incentive levels. The Agency shall report on progress and
1383	1383	25 barriers to participation of small and emerging businesses
1384	1384	26 in the Illinois Solar for All Program at least once a year.
1385	1385
1386	1386
1387	1387
1388	1388
1389	1389
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1391	1391
1392	1392
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1394	1394	HB4687 - 38 - LRB103 36052 LNS 66139 b
1395	1395	1 The report shall be made available on the Agency's website
1396	1396	2 and, in years when the Agency is updating its long-term
1397	1397	3 renewable resources procurement plan, included in that
1398	1398	4 Plan.
1399	1399	5 (A) Low-income single-family and small multifamily
1400	1400	6 solar incentive. This program will provide incentives
1401	1401	7 to low-income customers, either directly or through
1402	1402	8 solar providers, to increase the participation of
1403	1403	9 low-income households in photovoltaic on-site
1404	1404	10 distributed generation at residential buildings
1405	1405	11 containing one to 4 units. Companies participating in
1406	1406	12 this program that install solar panels shall commit to
1407	1407	13 hiring job trainees for a portion of their low-income
1408	1408	14 installations, and an administrator shall facilitate
1409	1409	15 partnering the companies that install solar panels
1410	1410	16 with entities that provide solar panel installation
1411	1411	17 job training. It is a goal of this program that a
1412	1412	18 minimum of 25% of the incentives for this program be
1413	1413	19 allocated to projects located within environmental
1414	1414	20 justice communities. Contracts entered into under this
1415	1415	21 paragraph may be entered into with an entity that will
1416	1416	22 develop and administer the program and shall also
1417	1417	23 include contracts for renewable energy credits from
1418	1418	24 the photovoltaic distributed generation that is the
1419	1419	25 subject of the program, as set forth in the long-term
1420	1420	26 renewable resources procurement plan. Additionally:
1421	1421
1422	1422
1423	1423
1424	1424
1425	1425
1426	1426	HB4687 - 38 - LRB103 36052 LNS 66139 b
1427	1427
1428	1428
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1430	1430	HB4687 - 39 - LRB103 36052 LNS 66139 b
1431	1431	1 (i) The Agency shall reserve a portion of this
1432	1432	2 program for projects that promote energy
1433	1433	3 sovereignty through ownership of projects by
1434	1434	4 low-income households, not-for-profit
1435	1435	5 organizations providing services to low-income
1436	1436	6 households, affordable housing owners, community
1437	1437	7 cooperatives, or community-based limited liability
1438	1438	8 companies providing services to low-income
1439	1439	9 households. Projects that feature energy ownership
1440	1440	10 should ensure that local people have control of
1441	1441	11 the project and reap benefits from the project
1442	1442	12 over and above energy bill savings. The Agency may
1443	1443	13 consider the inclusion of projects that promote
1444	1444	14 ownership over time or that involve partial
1445	1445	15 project ownership by communities, as promoting
1446	1446	16 energy sovereignty. Incentives for projects that
1447	1447	17 promote energy sovereignty may be higher than
1448	1448	18 incentives for equivalent projects that do not
1449	1449	19 promote energy sovereignty under this same
1450	1450	20 program.
1451	1451	21 (ii) Through its long-term renewable resources
1452	1452	22 procurement plan, the Agency shall consider
1453	1453	23 additional program and contract requirements to
1454	1454	24 ensure faithful compliance by applicants
1455	1455	25 benefiting from preferences for projects
1456	1456	26 designated to promote energy sovereignty. The
1457	1457
1458	1458
1459	1459
1460	1460
1461	1461
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1463	1463
1464	1464
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1467	1467	1 Agency shall make every effort to enable solar
1468	1468	2 providers already participating in the Adjustable
1469	1469	3 Block-Program under subparagraph (K) of paragraph
1470	1470	4 (1) of subsection (c) of Section 1-75 of this Act,
1471	1471	5 and particularly solar providers developing
1472	1472	6 projects under item (i) of subparagraph (K) of
1473	1473	7 paragraph (1) of subsection (c) of Section 1-75 of
1474	1474	8 this Act to easily participate in the Low-Income
1475	1475	9 Distributed Generation Incentive program described
1476	1476	10 under this subparagraph (A), and vice versa. This
1477	1477	11 effort may include, but shall not be limited to,
1478	1478	12 utilizing similar or the same application systems
1479	1479	13 and processes, similar or the same forms and
1480	1480	14 formats of communication, and providing active
1481	1481	15 outreach to companies participating in one program
1482	1482	16 but not the other. The Agency shall report on
1483	1483	17 efforts made to encourage this cross-participation
1484	1484	18 in its long-term renewable resources procurement
1485	1485	19 plan.
1486	1486	20 (B) Low-Income Community Solar Project Initiative.
1487	1487	21 Incentives shall be offered to low-income customers,
1488	1488	22 either directly or through developers, to increase the
1489	1489	23 participation of low-income subscribers of community
1490	1490	24 solar projects. The developer of each project shall
1491	1491	25 identify its partnership with community stakeholders
1492	1492	26 regarding the location, development, and participation
1493	1493
1494	1494
1495	1495
1496	1496
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1499	1499
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1503	1503	1 in the project, provided that nothing shall preclude a
1504	1504	2 project from including an anchor tenant that does not
1505	1505	3 qualify as low-income. Companies participating in this
1506	1506	4 program that develop or install solar projects shall
1507	1507	5 commit to hiring job trainees for a portion of their
1508	1508	6 low-income installations, and an administrator shall
1509	1509	7 facilitate partnering the companies that install solar
1510	1510	8 projects with entities that provide solar installation
1511	1511	9 and related job training. It is a goal of this program
1512	1512	10 that a minimum of 25% of the incentives for this
1513	1513	11 program be allocated to community photovoltaic
1514	1514	12 projects in environmental justice communities. The
1515	1515	13 Agency shall reserve a portion of this program for
1516	1516	14 projects that promote energy sovereignty through
1517	1517	15 ownership of projects by low-income households,
1518	1518	16 not-for-profit organizations providing services to
1519	1519	17 low-income households, affordable housing owners, or
1520	1520	18 community-based limited liability companies providing
1521	1521	19 services to low-income households. Projects that
1522	1522	20 feature energy ownership should ensure that local
1523	1523	21 people have control of the project and reap benefits
1524	1524	22 from the project over and above energy bill savings.
1525	1525	23 The Agency may consider the inclusion of projects that
1526	1526	24 promote ownership over time or that involve partial
1527	1527	25 project ownership by communities, as promoting energy
1528	1528	26 sovereignty. Incentives for projects that promote
1529	1529
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1531	1531
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1539	1539	1 energy sovereignty may be higher than incentives for
1540	1540	2 equivalent projects that do not promote energy
1541	1541	3 sovereignty under this same program. Contracts entered
1542	1542	4 into under this paragraph may be entered into with
1543	1543	5 developers and shall also include contracts for
1544	1544	6 renewable energy credits related to the program.
1545	1545	7 (C) Incentives for non-profits and public
1546	1546	8 facilities. Under this program funds shall be used to
1547	1547	9 support on-site photovoltaic distributed renewable
1548	1548	10 energy generation devices to serve the load associated
1549	1549	11 with not-for-profit customers and to support
1550	1550	12 photovoltaic distributed renewable energy generation
1551	1551	13 that uses photovoltaic technology to serve the load
1552	1552	14 associated with public sector customers taking service
1553	1553	15 at public buildings. Companies participating in this
1554	1554	16 program that develop or install solar projects shall
1555	1555	17 commit to hiring job trainees for a portion of their
1556	1556	18 low-income installations, and an administrator shall
1557	1557	19 facilitate partnering the companies that install solar
1558	1558	20 projects with entities that provide solar installation
1559	1559	21 and related job training. Through its long-term
1560	1560	22 renewable resources procurement plan, the Agency shall
1561	1561	23 consider additional program and contract requirements
1562	1562	24 to ensure faithful compliance by applicants benefiting
1563	1563	25 from preferences for projects designated to promote
1564	1564	26 energy sovereignty. It is a goal of this program that
1565	1565
1566	1566
1567	1567
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1575	1575	1 at least 25% of the incentives for this program be
1576	1576	2 allocated to projects located in environmental justice
1577	1577	3 communities. Contracts entered into under this
1578	1578	4 paragraph may be entered into with an entity that will
1579	1579	5 develop and administer the program or with developers
1580	1580	6 and shall also include contracts for renewable energy
1581	1581	7 credits related to the program.
1582	1582	8 (D) (Blank).
1583	1583	9 (E) Low-income large multifamily solar incentive.
1584	1584	10 This program shall provide incentives to low-income
1585	1585	11 customers, either directly or through solar providers,
1586	1586	12 to increase the participation of low-income households
1587	1587	13 in photovoltaic on-site distributed generation at
1588	1588	14 residential buildings with 5 or more units. Companies
1589	1589	15 participating in this program that develop or install
1590	1590	16 solar projects shall commit to hiring job trainees for
1591	1591	17 a portion of their low-income installations, and an
1592	1592	18 administrator shall facilitate partnering the
1593	1593	19 companies that install solar projects with entities
1594	1594	20 that provide solar installation and related job
1595	1595	21 training. It is a goal of this program that a minimum
1596	1596	22 of 25% of the incentives for this program be allocated
1597	1597	23 to projects located within environmental justice
1598	1598	24 communities. The Agency shall reserve a portion of
1599	1599	25 this program for projects that promote energy
1600	1600	26 sovereignty through ownership of projects by
1601	1601
1602	1602
1603	1603
1604	1604
1605	1605
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1607	1607
1608	1608
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1611	1611	1 low-income households, not-for-profit organizations
1612	1612	2 providing services to low-income households,
1613	1613	3 affordable housing owners, or community-based limited
1614	1614	4 liability companies providing services to low-income
1615	1615	5 households. Projects that feature energy ownership
1616	1616	6 should ensure that local people have control of the
1617	1617	7 project and reap benefits from the project over and
1618	1618	8 above energy bill savings. The Agency may consider the
1619	1619	9 inclusion of projects that promote ownership over time
1620	1620	10 or that involve partial project ownership by
1621	1621	11 communities, as promoting energy sovereignty.
1622	1622	12 Incentives for projects that promote energy
1623	1623	13 sovereignty may be higher than incentives for
1624	1624	14 equivalent projects that do not promote energy
1625	1625	15 sovereignty under this same program.
1626	1626	16 The requirement that a qualified person, as defined in
1627	1627	17 paragraph (1) of subsection (i) of this Section, install
1628	1628	18 photovoltaic devices does not apply to the Illinois Solar
1629	1629	19 for All Program described in this subsection (b).
1630	1630	20 In addition to the programs outlined in paragraphs (A)
1631	1631	21 through (E), the Agency and other parties may propose
1632	1632	22 additional programs through the Long-Term Renewable
1633	1633	23 Resources Procurement Plan developed and approved under
1634	1634	24 paragraph (5) of subsection (b) of Section 16-111.5 of the
1635	1635	25 Public Utilities Act. Additional programs may target
1636	1636	26 market segments not specified above and may also include
1637	1637
1638	1638
1639	1639
1640	1640
1641	1641
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1643	1643
1644	1644
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1647	1647	1 incentives targeted to increase the uptake of
1648	1648	2 nonphotovoltaic technologies by low-income customers,
1649	1649	3 including energy storage paired with photovoltaics, if the
1650	1650	4 Commission determines that the Illinois Solar for All
1651	1651	5 Program would provide greater benefits to the public
1652	1652	6 health and well-being of low-income residents through also
1653	1653	7 supporting that additional program versus supporting
1654	1654	8 programs already authorized.
1655	1655	9 (3) Costs associated with the Illinois Solar for All
1656	1656	10 Program and its components described in paragraph (2) of
1657	1657	11 this subsection (b), including, but not limited to, costs
1658	1658	12 associated with procuring experts, consultants, and the
1659	1659	13 program administrator referenced in this subsection (b)
1660	1660	14 and related incremental costs, costs related to income
1661	1661	15 verification and facilitating customer participation in
1662	1662	16 the program, and costs related to the evaluation of the
1663	1663	17 Illinois Solar for All Program, may be paid for using
1664	1664	18 monies in the Illinois Power Agency Renewable Energy
1665	1665	19 Resources Fund, and funds allocated pursuant to
1666	1666	20 subparagraph (O) of paragraph (1) of subsection (c) of
1667	1667	21 Section 1-75, but the Agency or program administrator
1668	1668	22 shall strive to minimize costs in the implementation of
1669	1669	23 the program. The Agency or contracting electric utility
1670	1670	24 shall purchase renewable energy credits from generation
1671	1671	25 that is the subject of a contract under subparagraphs (A)
1672	1672	26 through (E) of paragraph (2) of this subsection (b), and
1673	1673
1674	1674
1675	1675
1676	1676
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1679	1679
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1683	1683	1 may pay for such renewable energy credits through an
1684	1684	2 upfront payment per installed kilowatt of nameplate
1685	1685	3 capacity paid once the device is interconnected at the
1686	1686	4 distribution system level of the interconnecting utility
1687	1687	5 and verified as energized. Payments for renewable energy
1688	1688	6 credits shall be in exchange for all renewable energy
1689	1689	7 credits generated by the system during the first 15 years
1690	1690	8 of operation and shall be structured to overcome barriers
1691	1691	9 to participation in the solar market by the low-income
1692	1692	10 community. The incentives provided for in this Section may
1693	1693	11 be implemented through the pricing of renewable energy
1694	1694	12 credits where the prices paid for the credits are higher
1695	1695	13 than the prices from programs offered under subsection (c)
1696	1696	14 of Section 1-75 of this Act to account for the additional
1697	1697	15 capital necessary to successfully access targeted market
1698	1698	16 segments. The Agency or contracting electric utility shall
1699	1699	17 retire any renewable energy credits purchased under this
1700	1700	18 program and the credits shall count toward towards the
1701	1701	19 obligation under subsection (c) of Section 1-75 of this
1702	1702	20 Act for the electric utility to which the project is
1703	1703	21 interconnected, if applicable.
1704	1704	22 The Agency shall direct that up to 5% of the funds
1705	1705	23 available under the Illinois Solar for All Program to
1706	1706	24 community-based groups and other qualifying organizations
1707	1707	25 to assist in community-driven education efforts related to
1708	1708	26 the Illinois Solar for All Program, including general
1709	1709
1710	1710
1711	1711
1712	1712
1713	1713
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1715	1715
1716	1716
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1719	1719	1 energy education, job training program outreach efforts,
1720	1720	2 and other activities deemed to be qualified by the Agency.
1721	1721	3 Grassroots education funding shall not be used to support
1722	1722	4 the marketing by solar project development firms and
1723	1723	5 organizations, unless such education provides equal
1724	1724	6 opportunities for all applicable firms and organizations.
1725	1725	7 (4) The Agency shall, consistent with the requirements
1726	1726	8 of this subsection (b), propose the Illinois Solar for All
1727	1727	9 Program terms, conditions, and requirements, including the
1728	1728	10 prices to be paid for renewable energy credits, and which
1729	1729	11 prices may be determined through a formula, through the
1730	1730	12 development, review, and approval of the Agency's
1731	1731	13 long-term renewable resources procurement plan described
1732	1732	14 in subsection (c) of Section 1-75 of this Act and Section
1733	1733	15 16-111.5 of the Public Utilities Act. In the course of the
1734	1734	16 Commission proceeding initiated to review and approve the
1735	1735	17 plan, including the Illinois Solar for All Program
1736	1736	18 proposed by the Agency, a party may propose an additional
1737	1737	19 low-income solar or solar incentive program, or
1738	1738	20 modifications to the programs proposed by the Agency, and
1739	1739	21 the Commission may approve an additional program, or
1740	1740	22 modifications to the Agency's proposed program, if the
1741	1741	23 additional or modified program more effectively maximizes
1742	1742	24 the benefits to low-income customers after taking into
1743	1743	25 account all relevant factors, including, but not limited
1744	1744	26 to, the extent to which a competitive market for
1745	1745
1746	1746
1747	1747
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1751	1751
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1755	1755	1 low-income solar has developed. Following the Commission's
1756	1756	2 approval of the Illinois Solar for All Program, the Agency
1757	1757	3 or a party may propose adjustments to the program terms,
1758	1758	4 conditions, and requirements, including the price offered
1759	1759	5 to new systems, to ensure the long-term viability and
1760	1760	6 success of the program. The Commission shall review and
1761	1761	7 approve any modifications to the program through the plan
1762	1762	8 revision process described in Section 16-111.5 of the
1763	1763	9 Public Utilities Act.
1764	1764	10 (5) The Agency shall issue a request for
1765	1765	11 qualifications for a third-party program administrator or
1766	1766	12 administrators to administer all or a portion of the
1767	1767	13 Illinois Solar for All Program. The third-party program
1768	1768	14 administrator shall be chosen through a competitive bid
1769	1769	15 process based on selection criteria and requirements
1770	1770	16 developed by the Agency, including, but not limited to,
1771	1771	17 experience in administering low-income energy programs and
1772	1772	18 overseeing statewide clean energy or energy efficiency
1773	1773	19 services. If the Agency retains a program administrator or
1774	1774	20 administrators to implement all or a portion of the
1775	1775	21 Illinois Solar for All Program, each administrator shall
1776	1776	22 periodically submit reports to the Agency and Commission
1777	1777	23 for each program that it administers, at appropriate
1778	1778	24 intervals to be identified by the Agency in its long-term
1779	1779	25 renewable resources procurement plan, provided that the
1780	1780	26 reporting interval is at least quarterly. The third-party
1781	1781
1782	1782
1783	1783
1784	1784
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1787	1787
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1791	1791	1 program administrator may be, but need not be, the same
1792	1792	2 administrator as for the Adjustable Block program
1793	1793	3 described in subparagraphs (K) through (M) of paragraph
1794	1794	4 (1) of subsection (c) of Section 1-75. The Agency, through
1795	1795	5 its long-term renewable resources procurement plan
1796	1796	6 approval process, shall also determine if individual
1797	1797	7 subprograms of the Illinois Solar for All Program are
1798	1798	8 better served by a different or separate Program
1799	1799	9 Administrator.
1800	1800	10 The third-party administrator's responsibilities
1801	1801	11 shall also include facilitating placement for graduates of
1802	1802	12 Illinois-based renewable energy-specific job training
1803	1803	13 programs, including the Clean Jobs Workforce Network
1804	1804	14 Program and the Illinois Climate Works Preapprenticeship
1805	1805	15 Program administered by the Department of Commerce and
1806	1806	16 Economic Opportunity and programs administered under
1807	1807	17 Section 16-108.12 of the Public Utilities Act. To increase
1808	1808	18 the uptake of trainees by participating firms, the
1809	1809	19 administrator shall also develop a web-based clearinghouse
1810	1810	20 for information available to both job training program
1811	1811	21 graduates and firms participating, directly or indirectly,
1812	1812	22 in Illinois solar incentive programs. The program
1813	1813	23 administrator shall also coordinate its activities with
1814	1814	24 entities implementing electric and natural gas
1815	1815	25 income-qualified energy efficiency programs, including
1816	1816	26 customer referrals to and from such programs, and connect
1817	1817
1818	1818
1819	1819
1820	1820
1821	1821
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1823	1823
1824	1824
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1827	1827	1 prospective low-income solar customers with any existing
1828	1828	2 deferred maintenance programs where applicable.
1829	1829	3 (6) The long-term renewable resources procurement plan
1830	1830	4 shall also provide for an independent evaluation of the
1831	1831	5 Illinois Solar for All Program. At least every 2 years,
1832	1832	6 the Agency shall select an independent evaluator to review
1833	1833	7 and report on the Illinois Solar for All Program and the
1834	1834	8 performance of the third-party program administrator of
1835	1835	9 the Illinois Solar for All Program. The evaluation shall
1836	1836	10 be based on objective criteria developed through a public
1837	1837	11 stakeholder process. The process shall include feedback
1838	1838	12 and participation from Illinois Solar for All Program
1839	1839	13 stakeholders, including participants and organizations in
1840	1840	14 environmental justice and historically underserved
1841	1841	15 communities. The report shall include a summary of the
1842	1842	16 evaluation of the Illinois Solar for All Program based on
1843	1843	17 the stakeholder developed objective criteria. The report
1844	1844	18 shall include the number of projects installed; the total
1845	1845	19 installed capacity in kilowatts; the average cost per
1846	1846	20 kilowatt of installed capacity to the extent reasonably
1847	1847	21 obtainable by the Agency; the number of jobs or job
1848	1848	22 opportunities created; economic, social, and environmental
1849	1849	23 benefits created; and the total administrative costs
1850	1850	24 expended by the Agency and program administrator to
1851	1851	25 implement and evaluate the program. The report shall be
1852	1852	26 delivered to the Commission and posted on the Agency's
1853	1853
1854	1854
1855	1855
1856	1856
1857	1857
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1859	1859
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1863	1863	1 website, and shall be used, as needed, to revise the
1864	1864	2 Illinois Solar for All Program. The Commission shall also
1865	1865	3 consider the results of the evaluation as part of its
1866	1866	4 review of the long-term renewable resources procurement
1867	1867	5 plan under subsection (c) of Section 1-75 of this Act.
1868	1868	6 (7) If additional funding for the programs described
1869	1869	7 in this subsection (b) is available under subsection (k)
1870	1870	8 of Section 16-108 of the Public Utilities Act, then the
1871	1871	9 Agency shall submit a procurement plan to the Commission
1872	1872	10 no later than September 1, 2018, that proposes how the
1873	1873	11 Agency will procure programs on behalf of the applicable
1874	1874	12 utility. After notice and hearing, the Commission shall
1875	1875	13 approve, or approve with modification, the plan no later
1876	1876	14 than November 1, 2018.
1877	1877	15 (8) As part of the development and update of the
1878	1878	16 long-term renewable resources procurement plan authorized
1879	1879	17 by subsection (c) of Section 1-75 of this Act, the Agency
1880	1880	18 shall plan for: (A) actions to refer customers from the
1881	1881	19 Illinois Solar for All Program to electric and natural gas
1882	1882	20 income-qualified energy efficiency programs, and vice
1883	1883	21 versa, with the goal of increasing participation in both
1884	1884	22 of these programs; (B) effective procedures for data
1885	1885	23 sharing, as needed, to effectuate referrals between the
1886	1886	24 Illinois Solar for All Program and both electric and
1887	1887	25 natural gas income-qualified energy efficiency programs,
1888	1888	26 including sharing customer information directly with the
1889	1889
1890	1890
1891	1891
1892	1892
1893	1893
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1895	1895
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1899	1899	1 utilities, as needed and appropriate; and (C) efforts to
1900	1900	2 identify any existing deferred maintenance programs for
1901	1901	3 which prospective Solar for All Program customers may be
1902	1902	4 eligible and connect prospective customers for whom
1903	1903	5 deferred maintenance is or may be a barrier to solar
1904	1904	6 installation to those programs.
1905	1905	7 As used in this subsection (b), "low-income households"
1906	1906	8 means persons and families whose income does not exceed 80% of
1907	1907	9 area median income, adjusted for family size and revised every
1908	1908	10 5 years.
1909	1909	11 For the purposes of this subsection (b), the Agency shall
1910	1910	12 define "environmental justice community" based on the
1911	1911	13 methodologies and findings established by the Agency and the
1912	1912	14 Administrator for the Illinois Solar for All Program in its
1913	1913	15 initial long-term renewable resources procurement plan and as
1914	1914	16 updated by the Agency and the Administrator for the Illinois
1915	1915	17 Solar for All Program as part of the long-term renewable
1916	1916	18 resources procurement plan update.
1917	1917	19 (b-5) After the receipt of all payments required by
1918	1918	20 Section 16-115D of the Public Utilities Act, no additional
1919	1919	21 funds shall be deposited into the Illinois Power Agency
1920	1920	22 Renewable Energy Resources Fund unless directed by order of
1921	1921	23 the Commission.
1922	1922	24 (b-10) After the receipt of all payments required by
1923	1923	25 Section 16-115D of the Public Utilities Act and payment in
1924	1924	26 full of all contracts executed by the Agency under subsections
1925	1925
1926	1926
1927	1927
1928	1928
1929	1929
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1931	1931
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1935	1935	1 (b) and (i) of this Section, if the balance of the Illinois
1936	1936	2 Power Agency Renewable Energy Resources Fund is under $5,000,
1937	1937	3 then the Fund shall be inoperative and any remaining funds and
1938	1938	4 any funds submitted to the Fund after that date, shall be
1939	1939	5 transferred to the Supplemental Low-Income Energy Assistance
1940	1940	6 Fund for use in the Low-Income Home Energy Assistance Program,
1941	1941	7 as authorized by the Energy Assistance Act.
1942	1942	8 (b-15) The prevailing wage requirements set forth in the
1943	1943	9 Prevailing Wage Act apply to each project that is undertaken
1944	1944	10 pursuant to one or more of the programs of incentives and
1945	1945	11 initiatives described in subsection (b) of this Section and
1946	1946	12 for which a project application is submitted to the program
1947	1947	13 after the effective date of this amendatory Act of the 103rd
1948	1948	14 General Assembly, except (i) projects that serve single-family
1949	1949	15 or multi-family residential buildings and (ii) projects with
1950	1950	16 an aggregate capacity of less than 100 kilowatts that serve
1951	1951	17 houses of worship. The Agency shall require verification that
1952	1952	18 all construction performed on a project by the renewable
1953	1953	19 energy credit delivery contract holder, its contractors, or
1954	1954	20 its subcontractors relating to the construction of the
1955	1955	21 facility is performed by workers receiving an amount for that
1956	1956	22 work that is greater than or equal to the general prevailing
1957	1957	23 rate of wages as that term is defined in the Prevailing Wage
1958	1958	24 Act, and the Agency may adjust renewable energy credit prices
1959	1959	25 to account for increased labor costs.
1960	1960	26 In this subsection (b-15), "house of worship" has the
1961	1961
1962	1962
1963	1963
1964	1964
1965	1965
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1967	1967
1968	1968
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1970	1970	HB4687 - 54 - LRB103 36052 LNS 66139 b
1971	1971	1 meaning given in subparagraph (Q) of paragraph (1) of
1972	1972	2 subsection (c) of Section 1-75.
1973	1973	3 (c) (Blank).
1974	1974	4 (d) (Blank).
1975	1975	5 (e) All renewable energy credits procured using monies
1976	1976	6 from the Illinois Power Agency Renewable Energy Resources Fund
1977	1977	7 shall be permanently retired.
1978	1978	8 (f) The selection of one or more third-party program
1979	1979	9 managers or administrators, the selection of the independent
1980	1980	10 evaluator, and the procurement processes described in this
1981	1981	11 Section are exempt from the requirements of the Illinois
1982	1982	12 Procurement Code, under Section 20-10 of that Code.
1983	1983	13 (g) All disbursements from the Illinois Power Agency
1984	1984	14 Renewable Energy Resources Fund shall be made only upon
1985	1985	15 warrants of the Comptroller drawn upon the Treasurer as
1986	1986	16 custodian of the Fund upon vouchers signed by the Director or
1987	1987	17 by the person or persons designated by the Director for that
1988	1988	18 purpose. The Comptroller is authorized to draw the warrant
1989	1989	19 upon vouchers so signed. The Treasurer shall accept all
1990	1990	20 warrants so signed and shall be released from liability for
1991	1991	21 all payments made on those warrants.
1992	1992	22 (h) The Illinois Power Agency Renewable Energy Resources
1993	1993	23 Fund shall not be subject to sweeps, administrative charges,
1994	1994	24 or chargebacks, including, but not limited to, those
1995	1995	25 authorized under Section 8h of the State Finance Act, that
1996	1996	26 would in any way result in the transfer of any funds from this
1997	1997
1998	1998
1999	1999
2000	2000
2001	2001
2002	2002	HB4687 - 54 - LRB103 36052 LNS 66139 b
2003	2003
2004	2004
2005	2005	HB4687- 55 -LRB103 36052 LNS 66139 b HB4687 - 55 - LRB103 36052 LNS 66139 b
2006	2006	HB4687 - 55 - LRB103 36052 LNS 66139 b
2007	2007	1 Fund to any other fund of this State or in having any such
2008	2008	2 funds utilized for any purpose other than the express purposes
2009	2009	3 set forth in this Section.
2010	2010	4 (h-5) The Agency may assess fees to each bidder to recover
2011	2011	5 the costs incurred in connection with a procurement process
2012	2012	6 held under this Section. Fees collected from bidders shall be
2013	2013	7 deposited into the Renewable Energy Resources Fund.
2014	2014	8 (i) Supplemental procurement process.
2015	2015	9 (1) Within 90 days after June 30, 2014 (the effective
2016	2016	10 date of Public Act 98-672) this amendatory Act of the 98th
2017	2017	11 General Assembly, the Agency shall develop a one-time
2018	2018	12 supplemental procurement plan limited to the procurement
2019	2019	13 of renewable energy credits, if available, from new or
2020	2020	14 existing photovoltaics, including, but not limited to,
2021	2021	15 distributed photovoltaic generation. Nothing in this
2022	2022	16 subsection (i) requires procurement of wind generation
2023	2023	17 through the supplemental procurement.
2024	2024	18 Renewable energy credits procured from new
2025	2025	19 photovoltaics, including, but not limited to, distributed
2026	2026	20 photovoltaic generation, under this subsection (i) must be
2027	2027	21 procured from devices installed by a qualified person. In
2028	2028	22 its supplemental procurement plan, the Agency shall
2029	2029	23 establish contractually enforceable mechanisms for
2030	2030	24 ensuring that the installation of new photovoltaics is
2031	2031	25 performed by a qualified person.
2032	2032	26 For the purposes of this paragraph (1), "qualified
2033	2033
2034	2034
2035	2035
2036	2036
2037	2037
2038	2038	HB4687 - 55 - LRB103 36052 LNS 66139 b
2039	2039
2040	2040
2041	2041	HB4687- 56 -LRB103 36052 LNS 66139 b HB4687 - 56 - LRB103 36052 LNS 66139 b
2042	2042	HB4687 - 56 - LRB103 36052 LNS 66139 b
2043	2043	1 person" means a person who performs installations of
2044	2044	2 photovoltaics, including, but not limited to, distributed
2045	2045	3 photovoltaic generation, and who: (A) has completed an
2046	2046	4 apprenticeship as a journeyman electrician from a United
2047	2047	5 States Department of Labor registered electrical
2048	2048	6 apprenticeship and training program and received a
2049	2049	7 certification of satisfactory completion; or (B) does not
2050	2050	8 currently meet the criteria under clause (A) of this
2051	2051	9 paragraph (1), but is enrolled in a United States
2052	2052	10 Department of Labor registered electrical apprenticeship
2053	2053	11 program, provided that the person is directly supervised
2054	2054	12 by a person who meets the criteria under clause (A) of this
2055	2055	13 paragraph (1); or (C) has obtained one of the following
2056	2056	14 credentials in addition to attesting to satisfactory
2057	2057	15 completion of at least 5 years or 8,000 hours of
2058	2058	16 documented hands-on electrical experience: (i) a North
2059	2059	17 American Board of Certified Energy Practitioners (NABCEP)
2060	2060	18 Installer Certificate for Solar PV; (ii) an Underwriters
2061	2061	19 Laboratories (UL) PV Systems Installer Certificate; (iii)
2062	2062	20 an Electronics Technicians Association, International
2063	2063	21 (ETAI) Level 3 PV Installer Certificate; or (iv) an
2064	2064	22 Associate in Applied Science degree from an Illinois
2065	2065	23 Community College Board approved community college program
2066	2066	24 in renewable energy or a distributed generation
2067	2067	25 technology.
2068	2068	26 For the purposes of this paragraph (1), "directly
2069	2069
2070	2070
2071	2071
2072	2072
2073	2073
2074	2074	HB4687 - 56 - LRB103 36052 LNS 66139 b
2075	2075
2076	2076
2077	2077	HB4687- 57 -LRB103 36052 LNS 66139 b HB4687 - 57 - LRB103 36052 LNS 66139 b
2078	2078	HB4687 - 57 - LRB103 36052 LNS 66139 b
2079	2079	1 supervised" means that there is a qualified person who
2080	2080	2 meets the qualifications under clause (A) of this
2081	2081	3 paragraph (1) and who is available for supervision and
2082	2082	4 consultation regarding the work performed by persons under
2083	2083	5 clause (B) of this paragraph (1), including a final
2084	2084	6 inspection of the installation work that has been directly
2085	2085	7 supervised to ensure safety and conformity with applicable
2086	2086	8 codes.
2087	2087	9 For the purposes of this paragraph (1), "install"
2088	2088	10 means the major activities and actions required to
2089	2089	11 connect, in accordance with applicable building and
2090	2090	12 electrical codes, the conductors, connectors, and all
2091	2091	13 associated fittings, devices, power outlets, or
2092	2092	14 apparatuses mounted at the premises that are directly
2093	2093	15 involved in delivering energy to the premises' electrical
2094	2094	16 wiring from the photovoltaics, including, but not limited
2095	2095	17 to, to distributed photovoltaic generation.
2096	2096	18 The renewable energy credits procured pursuant to the
2097	2097	19 supplemental procurement plan shall be procured using up
2098	2098	20 to $30,000,000 from the Illinois Power Agency Renewable
2099	2099	21 Energy Resources Fund. The Agency shall not plan to use
2100	2100	22 funds from the Illinois Power Agency Renewable Energy
2101	2101	23 Resources Fund in excess of the monies on deposit in such
2102	2102	24 fund or projected to be deposited into such fund. The
2103	2103	25 supplemental procurement plan shall ensure adequate,
2104	2104	26 reliable, affordable, efficient, and environmentally
2105	2105
2106	2106
2107	2107
2108	2108
2109	2109
2110	2110	HB4687 - 57 - LRB103 36052 LNS 66139 b
2111	2111
2112	2112
2113	2113	HB4687- 58 -LRB103 36052 LNS 66139 b HB4687 - 58 - LRB103 36052 LNS 66139 b
2114	2114	HB4687 - 58 - LRB103 36052 LNS 66139 b
2115	2115	1 sustainable renewable energy resources (including credits)
2116	2116	2 at the lowest total cost over time, taking into account
2117	2117	3 any benefits of price stability.
2118	2118	4 To the extent available, 50% of the renewable energy
2119	2119	5 credits procured from distributed renewable energy
2120	2120	6 generation shall come from devices of less than 25
2121	2121	7 kilowatts in nameplate capacity. Procurement of renewable
2122	2122	8 energy credits from distributed renewable energy
2123	2123	9 generation devices shall be done through multi-year
2124	2124	10 contracts of no less than 5 years. The Agency shall create
2125	2125	11 credit requirements for counterparties. In order to
2126	2126	12 minimize the administrative burden on contracting
2127	2127	13 entities, the Agency shall solicit the use of third
2128	2128	14 parties to aggregate distributed renewable energy. These
2129	2129	15 third parties shall enter into and administer contracts
2130	2130	16 with individual distributed renewable energy generation
2131	2131	17 device owners. An individual distributed renewable energy
2132	2132	18 generation device owner shall have the ability to measure
2133	2133	19 the output of his or her distributed renewable energy
2134	2134	20 generation device.
2135	2135	21 In developing the supplemental procurement plan, the
2136	2136	22 Agency shall hold at least one workshop open to the public
2137	2137	23 within 90 days after June 30, 2014 (the effective date of
2138	2138	24 Public Act 98-672) this amendatory Act of the 98th General
2139	2139	25 Assembly and shall consider any comments made by
2140	2140	26 stakeholders or the public. Upon development of the
2141	2141
2142	2142
2143	2143
2144	2144
2145	2145
2146	2146	HB4687 - 58 - LRB103 36052 LNS 66139 b
2147	2147
2148	2148
2149	2149	HB4687- 59 -LRB103 36052 LNS 66139 b HB4687 - 59 - LRB103 36052 LNS 66139 b
2150	2150	HB4687 - 59 - LRB103 36052 LNS 66139 b
2151	2151	1 supplemental procurement plan within this 90-day period,
2152	2152	2 copies of the supplemental procurement plan shall be
2153	2153	3 posted and made publicly available on the Agency's and
2154	2154	4 Commission's websites. All interested parties shall have
2155	2155	5 14 days following the date of posting to provide comment
2156	2156	6 to the Agency on the supplemental procurement plan. All
2157	2157	7 comments submitted to the Agency shall be specific,
2158	2158	8 supported by data or other detailed analyses, and, if
2159	2159	9 objecting to all or a portion of the supplemental
2160	2160	10 procurement plan, accompanied by specific alternative
2161	2161	11 wording or proposals. All comments shall be posted on the
2162	2162	12 Agency's and Commission's websites. Within 14 days
2163	2163	13 following the end of the 14-day review period, the Agency
2164	2164	14 shall revise the supplemental procurement plan as
2165	2165	15 necessary based on the comments received and file its
2166	2166	16 revised supplemental procurement plan with the Commission
2167	2167	17 for approval.
2168	2168	18 (2) Within 5 days after the filing of the supplemental
2169	2169	19 procurement plan at the Commission, any person objecting
2170	2170	20 to the supplemental procurement plan shall file an
2171	2171	21 objection with the Commission. Within 10 days after the
2172	2172	22 filing, the Commission shall determine whether a hearing
2173	2173	23 is necessary. The Commission shall enter its order
2174	2174	24 confirming or modifying the supplemental procurement plan
2175	2175	25 within 90 days after the filing of the supplemental
2176	2176	26 procurement plan by the Agency.
2177	2177
2178	2178
2179	2179
2180	2180
2181	2181
2182	2182	HB4687 - 59 - LRB103 36052 LNS 66139 b
2183	2183
2184	2184
2185	2185	HB4687- 60 -LRB103 36052 LNS 66139 b HB4687 - 60 - LRB103 36052 LNS 66139 b
2186	2186	HB4687 - 60 - LRB103 36052 LNS 66139 b
2187	2187	1 (3) The Commission shall approve the supplemental
2188	2188	2 procurement plan of renewable energy credits to be
2189	2189	3 procured from new or existing photovoltaics, including,
2190	2190	4 but not limited to, distributed photovoltaic generation,
2191	2191	5 if the Commission determines that it will ensure adequate,
2192	2192	6 reliable, affordable, efficient, and environmentally
2193	2193	7 sustainable electric service in the form of renewable
2194	2194	8 energy credits at the lowest total cost over time, taking
2195	2195	9 into account any benefits of price stability.
2196	2196	10 (4) The supplemental procurement process under this
2197	2197	11 subsection (i) shall include each of the following
2198	2198	12 components:
2199	2199	13 (A) Procurement administrator. The Agency may
2200	2200	14 retain a procurement administrator in the manner set
2201	2201	15 forth in item (2) of subsection (a) of Section 1-75 of
2202	2202	16 this Act to conduct the supplemental procurement or
2203	2203	17 may elect to use the same procurement administrator
2204	2204	18 administering the Agency's annual procurement under
2205	2205	19 Section 1-75.
2206	2206	20 (B) Procurement monitor. The procurement monitor
2207	2207	21 retained by the Commission pursuant to Section
2208	2208	22 16-111.5 of the Public Utilities Act shall:
2209	2209	23 (i) monitor interactions among the procurement
2210	2210	24 administrator and bidders and suppliers;
2211	2211	25 (ii) monitor and report to the Commission on
2212	2212	26 the progress of the supplemental procurement
2213	2213
2214	2214
2215	2215
2216	2216
2217	2217
2218	2218	HB4687 - 60 - LRB103 36052 LNS 66139 b
2219	2219
2220	2220
2221	2221	HB4687- 61 -LRB103 36052 LNS 66139 b HB4687 - 61 - LRB103 36052 LNS 66139 b
2222	2222	HB4687 - 61 - LRB103 36052 LNS 66139 b
2223	2223	1 process;
2224	2224	2 (iii) provide an independent confidential
2225	2225	3 report to the Commission regarding the results of
2226	2226	4 the procurement events;
2227	2227	5 (iv) assess compliance with the procurement
2228	2228	6 plan approved by the Commission for the
2229	2229	7 supplemental procurement process;
2230	2230	8 (v) preserve the confidentiality of supplier
2231	2231	9 and bidding information in a manner consistent
2232	2232	10 with all applicable laws, rules, regulations, and
2233	2233	11 tariffs;
2234	2234	12 (vi) provide expert advice to the Commission
2235	2235	13 and consult with the procurement administrator
2236	2236	14 regarding issues related to procurement process
2237	2237	15 design, rules, protocols, and policy-related
2238	2238	16 matters;
2239	2239	17 (vii) consult with the procurement
2240	2240	18 administrator regarding the development and use of
2241	2241	19 benchmark criteria, standard form contracts,
2242	2242	20 credit policies, and bid documents; and
2243	2243	21 (viii) perform, with respect to the
2244	2244	22 supplemental procurement process, any other
2245	2245	23 procurement monitor duties specifically delineated
2246	2246	24 within subsection (i) of this Section.
2247	2247	25 (C) Solicitation, prequalification
2248	2248	26 pre-qualification, and registration of bidders. The
2249	2249
2250	2250
2251	2251
2252	2252
2253	2253
2254	2254	HB4687 - 61 - LRB103 36052 LNS 66139 b
2255	2255
2256	2256
2257	2257	HB4687- 62 -LRB103 36052 LNS 66139 b HB4687 - 62 - LRB103 36052 LNS 66139 b
2258	2258	HB4687 - 62 - LRB103 36052 LNS 66139 b
2259	2259	1 procurement administrator shall disseminate
2260	2260	2 information to potential bidders to promote a
2261	2261	3 procurement event, notify potential bidders that the
2262	2262	4 procurement administrator may enter into a post-bid
2263	2263	5 price negotiation with bidders that meet the
2264	2264	6 applicable benchmarks, provide supply requirements,
2265	2265	7 and otherwise explain the competitive procurement
2266	2266	8 process. In addition to such other publication as the
2267	2267	9 procurement administrator determines is appropriate,
2268	2268	10 this information shall be posted on the Agency's and
2269	2269	11 the Commission's websites. The procurement
2270	2270	12 administrator shall also administer the
2271	2271	13 prequalification process, including evaluation of
2272	2272	14 credit worthiness, compliance with procurement rules,
2273	2273	15 and agreement to the standard form contract developed
2274	2274	16 pursuant to item (D) of this paragraph (4). The
2275	2275	17 procurement administrator shall then identify and
2276	2276	18 register bidders to participate in the procurement
2277	2277	19 event.
2278	2278	20 (D) Standard contract forms and credit terms and
2279	2279	21 instruments. The procurement administrator, in
2280	2280	22 consultation with the Agency, the Commission, and
2281	2281	23 other interested parties and subject to Commission
2282	2282	24 oversight, shall develop and provide standard contract
2283	2283	25 forms for the supplier contracts that meet generally
2284	2284	26 accepted industry practices as well as include any
2285	2285
2286	2286
2287	2287
2288	2288
2289	2289
2290	2290	HB4687 - 62 - LRB103 36052 LNS 66139 b
2291	2291
2292	2292
2293	2293	HB4687- 63 -LRB103 36052 LNS 66139 b HB4687 - 63 - LRB103 36052 LNS 66139 b
2294	2294	HB4687 - 63 - LRB103 36052 LNS 66139 b
2295	2295	1 applicable State of Illinois terms and conditions that
2296	2296	2 are required for contracts entered into by an agency
2297	2297	3 of the State of Illinois. Standard credit terms and
2298	2298	4 instruments that meet generally accepted industry
2299	2299	5 practices shall be similarly developed. Contracts for
2300	2300	6 new photovoltaics shall include a provision attesting
2301	2301	7 that the supplier will use a qualified person for the
2302	2302	8 installation of the device pursuant to paragraph (1)
2303	2303	9 of subsection (i) of this Section. The procurement
2304	2304	10 administrator shall make available to the Commission
2305	2305	11 all written comments it receives on the contract
2306	2306	12 forms, credit terms, or instruments. If the
2307	2307	13 procurement administrator cannot reach agreement with
2308	2308	14 the parties as to the contract terms and conditions,
2309	2309	15 the procurement administrator must notify the
2310	2310	16 Commission of any disputed terms and the Commission
2311	2311	17 shall resolve the dispute. The terms of the contracts
2312	2312	18 shall not be subject to negotiation by winning
2313	2313	19 bidders, and the bidders must agree to the terms of the
2314	2314	20 contract in advance so that winning bids are selected
2315	2315	21 solely on the basis of price.
2316	2316	22 (E) Requests for proposals; competitive
2317	2317	23 procurement process. The procurement administrator
2318	2318	24 shall design and issue requests for proposals to
2319	2319	25 supply renewable energy credits in accordance with the
2320	2320	26 supplemental procurement plan, as approved by the
2321	2321
2322	2322
2323	2323
2324	2324
2325	2325
2326	2326	HB4687 - 63 - LRB103 36052 LNS 66139 b
2327	2327
2328	2328
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2330	2330	HB4687 - 64 - LRB103 36052 LNS 66139 b
2331	2331	1 Commission. The requests for proposals shall set forth
2332	2332	2 a procedure for sealed, binding commitment bidding
2333	2333	3 with pay-as-bid settlement, and provision for
2334	2334	4 selection of bids on the basis of price, provided,
2335	2335	5 however, that no bid shall be accepted if it exceeds
2336	2336	6 the benchmark developed pursuant to item (F) of this
2337	2337	7 paragraph (4).
2338	2338	8 (F) Benchmarks. Benchmarks for each product to be
2339	2339	9 procured shall be developed by the procurement
2340	2340	10 administrator in consultation with Commission staff,
2341	2341	11 the Agency, and the procurement monitor for use in
2342	2342	12 this supplemental procurement.
2343	2343	13 (G) A plan for implementing contingencies in the
2344	2344	14 event of supplier default, Commission rejection of
2345	2345	15 results, or any other cause.
2346	2346	16 (5) Within 2 business days after opening the sealed
2347	2347	17 bids, the procurement administrator shall submit a
2348	2348	18 confidential report to the Commission. The report shall
2349	2349	19 contain the results of the bidding for each of the
2350	2350	20 products along with the procurement administrator's
2351	2351	21 recommendation for the acceptance and rejection of bids
2352	2352	22 based on the price benchmark criteria and other factors
2353	2353	23 observed in the process. The procurement monitor also
2354	2354	24 shall submit a confidential report to the Commission
2355	2355	25 within 2 business days after opening the sealed bids. The
2356	2356	26 report shall contain the procurement monitor's assessment
2357	2357
2358	2358
2359	2359
2360	2360
2361	2361
2362	2362	HB4687 - 64 - LRB103 36052 LNS 66139 b
2363	2363
2364	2364
2365	2365	HB4687- 65 -LRB103 36052 LNS 66139 b HB4687 - 65 - LRB103 36052 LNS 66139 b
2366	2366	HB4687 - 65 - LRB103 36052 LNS 66139 b
2367	2367	1 of bidder behavior in the process as well as an assessment
2368	2368	2 of the procurement administrator's compliance with the
2369	2369	3 procurement process and rules. The Commission shall review
2370	2370	4 the confidential reports submitted by the procurement
2371	2371	5 administrator and procurement monitor and shall accept or
2372	2372	6 reject the recommendations of the procurement
2373	2373	7 administrator within 2 business days after receipt of the
2374	2374	8 reports.
2375	2375	9 (6) Within 3 business days after the Commission
2376	2376	10 decision approving the results of a procurement event, the
2377	2377	11 Agency shall enter into binding contractual arrangements
2378	2378	12 with the winning suppliers using the standard form
2379	2379	13 contracts.
2380	2380	14 (7) The names of the successful bidders and the
2381	2381	15 average of the winning bid prices for each contract type
2382	2382	16 and for each contract term shall be made available to the
2383	2383	17 public within 2 days after the supplemental procurement
2384	2384	18 event. The Commission, the procurement monitor, the
2385	2385	19 procurement administrator, the Agency, and all
2386	2386	20 participants in the procurement process shall maintain the
2387	2387	21 confidentiality of all other supplier and bidding
2388	2388	22 information in a manner consistent with all applicable
2389	2389	23 laws, rules, regulations, and tariffs. Confidential
2390	2390	24 information, including the confidential reports submitted
2391	2391	25 by the procurement administrator and procurement monitor
2392	2392	26 pursuant to this Section, shall not be made publicly
2393	2393
2394	2394
2395	2395
2396	2396
2397	2397
2398	2398	HB4687 - 65 - LRB103 36052 LNS 66139 b
2399	2399
2400	2400
2401	2401	HB4687- 66 -LRB103 36052 LNS 66139 b HB4687 - 66 - LRB103 36052 LNS 66139 b
2402	2402	HB4687 - 66 - LRB103 36052 LNS 66139 b
2403	2403	1 available and shall not be discoverable by any party in
2404	2404	2 any proceeding, absent a compelling demonstration of need,
2405	2405	3 nor shall those reports be admissible in any proceeding
2406	2406	4 other than one for law enforcement purposes.
2407	2407	5 (8) The supplemental procurement provided in this
2408	2408	6 subsection (i) shall not be subject to the requirements
2409	2409	7 and limitations of subsections (c) and (d) of this
2410	2410	8 Section.
2411	2411	9 (9) Expenses incurred in connection with the
2412	2412	10 procurement process held pursuant to this Section,
2413	2413	11 including, but not limited to, the cost of developing the
2414	2414	12 supplemental procurement plan, the procurement
2415	2415	13 administrator, procurement monitor, and the cost of the
2416	2416	14 retirement of renewable energy credits purchased pursuant
2417	2417	15 to the supplemental procurement shall be paid for from the
2418	2418	16 Illinois Power Agency Renewable Energy Resources Fund. The
2419	2419	17 Agency shall enter into an interagency agreement with the
2420	2420	18 Commission to reimburse the Commission for its costs
2421	2421	19 associated with the procurement monitor for the
2422	2422	20 supplemental procurement process.
2423	2423	21 (Source: P.A. 102-662, eff. 9-15-21; 103-188, eff. 6-30-23;
2424	2424	22 revised 9-20-23.)
2425	2425	23 (20 ILCS 3855/1-75)
2426	2426	24 Sec. 1-75. Planning and Procurement Bureau. The Planning
2427	2427	25 and Procurement Bureau has the following duties and
2428	2428
2429	2429
2430	2430
2431	2431
2432	2432
2433	2433	HB4687 - 66 - LRB103 36052 LNS 66139 b
2434	2434
2435	2435
2436	2436	HB4687- 67 -LRB103 36052 LNS 66139 b HB4687 - 67 - LRB103 36052 LNS 66139 b
2437	2437	HB4687 - 67 - LRB103 36052 LNS 66139 b
2438	2438	1 responsibilities:
2439	2439	2 (a) The Planning and Procurement Bureau shall each year,
2440	2440	3 beginning in 2008, develop procurement plans and conduct
2441	2441	4 competitive procurement processes in accordance with the
2442	2442	5 requirements of Section 16-111.5 of the Public Utilities Act
2443	2443	6 for the eligible retail customers of electric utilities that
2444	2444	7 on December 31, 2005 provided electric service to at least
2445	2445	8 100,000 customers in Illinois. Beginning with the delivery
2446	2446	9 year commencing on June 1, 2017, the Planning and Procurement
2447	2447	10 Bureau shall develop plans and processes for the procurement
2448	2448	11 of zero emission credits from zero emission facilities in
2449	2449	12 accordance with the requirements of subsection (d-5) of this
2450	2450	13 Section. Beginning on the effective date of this amendatory
2451	2451	14 Act of the 102nd General Assembly, the Planning and
2452	2452	15 Procurement Bureau shall develop plans and processes for the
2453	2453	16 procurement of carbon mitigation credits from carbon-free
2454	2454	17 energy resources in accordance with the requirements of
2455	2455	18 subsection (d-10) of this Section. The Planning and
2456	2456	19 Procurement Bureau shall also develop procurement plans and
2457	2457	20 conduct competitive procurement processes in accordance with
2458	2458	21 the requirements of Section 16-111.5 of the Public Utilities
2459	2459	22 Act for the eligible retail customers of small
2460	2460	23 multi-jurisdictional electric utilities that (i) on December
2461	2461	24 31, 2005 served less than 100,000 customers in Illinois and
2462	2462	25 (ii) request a procurement plan for their Illinois
2463	2463	26 jurisdictional load. This Section shall not apply to a small
2464	2464
2465	2465
2466	2466
2467	2467
2468	2468
2469	2469	HB4687 - 67 - LRB103 36052 LNS 66139 b
2470	2470
2471	2471
2472	2472	HB4687- 68 -LRB103 36052 LNS 66139 b HB4687 - 68 - LRB103 36052 LNS 66139 b
2473	2473	HB4687 - 68 - LRB103 36052 LNS 66139 b
2474	2474	1 multi-jurisdictional utility until such time as a small
2475	2475	2 multi-jurisdictional utility requests the Agency to prepare a
2476	2476	3 procurement plan for their Illinois jurisdictional load. For
2477	2477	4 the purposes of this Section, the term "eligible retail
2478	2478	5 customers" has the same definition as found in Section
2479	2479	6 16-111.5(a) of the Public Utilities Act.
2480	2480	7 Beginning with the plan or plans to be implemented in the
2481	2481	8 2017 delivery year, the Agency shall no longer include the
2482	2482	9 procurement of renewable energy resources in the annual
2483	2483	10 procurement plans required by this subsection (a), except as
2484	2484	11 provided in subsection (q) of Section 16-111.5 of the Public
2485	2485	12 Utilities Act, and shall instead develop a long-term renewable
2486	2486	13 resources procurement plan in accordance with subsection (c)
2487	2487	14 of this Section and Section 16-111.5 of the Public Utilities
2488	2488	15 Act.
2489	2489	16 In accordance with subsection (c-5) of this Section, the
2490	2490	17 Planning and Procurement Bureau shall oversee the procurement
2491	2491	18 by electric utilities that served more than 300,000 retail
2492	2492	19 customers in this State as of January 1, 2019 of renewable
2493	2493	20 energy credits from new utility-scale solar projects to be
2494	2494	21 installed, along with energy storage facilities, at or
2495	2495	22 adjacent to the sites of electric generating facilities that,
2496	2496	23 as of January 1, 2016, burned coal as their primary fuel
2497	2497	24 source.
2498	2498	25 (1) The Agency shall each year, beginning in 2008, as
2499	2499	26 needed, issue a request for qualifications for experts or
2500	2500
2501	2501
2502	2502
2503	2503
2504	2504
2505	2505	HB4687 - 68 - LRB103 36052 LNS 66139 b
2506	2506
2507	2507
2508	2508	HB4687- 69 -LRB103 36052 LNS 66139 b HB4687 - 69 - LRB103 36052 LNS 66139 b
2509	2509	HB4687 - 69 - LRB103 36052 LNS 66139 b
2510	2510	1 expert consulting firms to develop the procurement plans
2511	2511	2 in accordance with Section 16-111.5 of the Public
2512	2512	3 Utilities Act. In order to qualify an expert or expert
2513	2513	4 consulting firm must have:
2514	2514	5 (A) direct previous experience assembling
2515	2515	6 large-scale power supply plans or portfolios for
2516	2516	7 end-use customers;
2517	2517	8 (B) an advanced degree in economics, mathematics,
2518	2518	9 engineering, risk management, or a related area of
2519	2519	10 study;
2520	2520	11 (C) 10 years of experience in the electricity
2521	2521	12 sector, including managing supply risk;
2522	2522	13 (D) expertise in wholesale electricity market
2523	2523	14 rules, including those established by the Federal
2524	2524	15 Energy Regulatory Commission and regional transmission
2525	2525	16 organizations;
2526	2526	17 (E) expertise in credit protocols and familiarity
2527	2527	18 with contract protocols;
2528	2528	19 (F) adequate resources to perform and fulfill the
2529	2529	20 required functions and responsibilities; and
2530	2530	21 (G) the absence of a conflict of interest and
2531	2531	22 inappropriate bias for or against potential bidders or
2532	2532	23 the affected electric utilities.
2533	2533	24 (2) The Agency shall each year, as needed, issue a
2534	2534	25 request for qualifications for a procurement administrator
2535	2535	26 to conduct the competitive procurement processes in
2536	2536
2537	2537
2538	2538
2539	2539
2540	2540
2541	2541	HB4687 - 69 - LRB103 36052 LNS 66139 b
2542	2542
2543	2543
2544	2544	HB4687- 70 -LRB103 36052 LNS 66139 b HB4687 - 70 - LRB103 36052 LNS 66139 b
2545	2545	HB4687 - 70 - LRB103 36052 LNS 66139 b
2546	2546	1 accordance with Section 16-111.5 of the Public Utilities
2547	2547	2 Act. In order to qualify an expert or expert consulting
2548	2548	3 firm must have:
2549	2549	4 (A) direct previous experience administering a
2550	2550	5 large-scale competitive procurement process;
2551	2551	6 (B) an advanced degree in economics, mathematics,
2552	2552	7 engineering, or a related area of study;
2553	2553	8 (C) 10 years of experience in the electricity
2554	2554	9 sector, including risk management experience;
2555	2555	10 (D) expertise in wholesale electricity market
2556	2556	11 rules, including those established by the Federal
2557	2557	12 Energy Regulatory Commission and regional transmission
2558	2558	13 organizations;
2559	2559	14 (E) expertise in credit and contract protocols;
2560	2560	15 (F) adequate resources to perform and fulfill the
2561	2561	16 required functions and responsibilities; and
2562	2562	17 (G) the absence of a conflict of interest and
2563	2563	18 inappropriate bias for or against potential bidders or
2564	2564	19 the affected electric utilities.
2565	2565	20 (3) The Agency shall provide affected utilities and
2566	2566	21 other interested parties with the lists of qualified
2567	2567	22 experts or expert consulting firms identified through the
2568	2568	23 request for qualifications processes that are under
2569	2569	24 consideration to develop the procurement plans and to
2570	2570	25 serve as the procurement administrator. The Agency shall
2571	2571	26 also provide each qualified expert's or expert consulting
2572	2572
2573	2573
2574	2574
2575	2575
2576	2576
2577	2577	HB4687 - 70 - LRB103 36052 LNS 66139 b
2578	2578
2579	2579
2580	2580	HB4687- 71 -LRB103 36052 LNS 66139 b HB4687 - 71 - LRB103 36052 LNS 66139 b
2581	2581	HB4687 - 71 - LRB103 36052 LNS 66139 b
2582	2582	1 firm's response to the request for qualifications. All
2583	2583	2 information provided under this subparagraph shall also be
2584	2584	3 provided to the Commission. The Agency may provide by rule
2585	2585	4 for fees associated with supplying the information to
2586	2586	5 utilities and other interested parties. These parties
2587	2587	6 shall, within 5 business days, notify the Agency in
2588	2588	7 writing if they object to any experts or expert consulting
2589	2589	8 firms on the lists. Objections shall be based on:
2590	2590	9 (A) failure to satisfy qualification criteria;
2591	2591	10 (B) identification of a conflict of interest; or
2592	2592	11 (C) evidence of inappropriate bias for or against
2593	2593	12 potential bidders or the affected utilities.
2594	2594	13 The Agency shall remove experts or expert consulting
2595	2595	14 firms from the lists within 10 days if there is a
2596	2596	15 reasonable basis for an objection and provide the updated
2597	2597	16 lists to the affected utilities and other interested
2598	2598	17 parties. If the Agency fails to remove an expert or expert
2599	2599	18 consulting firm from a list, an objecting party may seek
2600	2600	19 review by the Commission within 5 days thereafter by
2601	2601	20 filing a petition, and the Commission shall render a
2602	2602	21 ruling on the petition within 10 days. There is no right of
2603	2603	22 appeal of the Commission's ruling.
2604	2604	23 (4) The Agency shall issue requests for proposals to
2605	2605	24 the qualified experts or expert consulting firms to
2606	2606	25 develop a procurement plan for the affected utilities and
2607	2607	26 to serve as procurement administrator.
2608	2608
2609	2609
2610	2610
2611	2611
2612	2612
2613	2613	HB4687 - 71 - LRB103 36052 LNS 66139 b
2614	2614
2615	2615
2616	2616	HB4687- 72 -LRB103 36052 LNS 66139 b HB4687 - 72 - LRB103 36052 LNS 66139 b
2617	2617	HB4687 - 72 - LRB103 36052 LNS 66139 b
2618	2618	1 (5) The Agency shall select an expert or expert
2619	2619	2 consulting firm to develop procurement plans based on the
2620	2620	3 proposals submitted and shall award contracts of up to 5
2621	2621	4 years to those selected.
2622	2622	5 (6) The Agency shall select an expert or expert
2623	2623	6 consulting firm, with approval of the Commission, to serve
2624	2624	7 as procurement administrator based on the proposals
2625	2625	8 submitted. If the Commission rejects, within 5 days, the
2626	2626	9 Agency's selection, the Agency shall submit another
2627	2627	10 recommendation within 3 days based on the proposals
2628	2628	11 submitted. The Agency shall award a 5-year contract to the
2629	2629	12 expert or expert consulting firm so selected with
2630	2630	13 Commission approval.
2631	2631	14 (b) The experts or expert consulting firms retained by the
2632	2632	15 Agency shall, as appropriate, prepare procurement plans, and
2633	2633	16 conduct a competitive procurement process as prescribed in
2634	2634	17 Section 16-111.5 of the Public Utilities Act, to ensure
2635	2635	18 adequate, reliable, affordable, efficient, and environmentally
2636	2636	19 sustainable electric service at the lowest total cost over
2637	2637	20 time, taking into account any benefits of price stability, for
2638	2638	21 eligible retail customers of electric utilities that on
2639	2639	22 December 31, 2005 provided electric service to at least
2640	2640	23 100,000 customers in the State of Illinois, and for eligible
2641	2641	24 Illinois retail customers of small multi-jurisdictional
2642	2642	25 electric utilities that (i) on December 31, 2005 served less
2643	2643	26 than 100,000 customers in Illinois and (ii) request a
2644	2644
2645	2645
2646	2646
2647	2647
2648	2648
2649	2649	HB4687 - 72 - LRB103 36052 LNS 66139 b
2650	2650
2651	2651
2652	2652	HB4687- 73 -LRB103 36052 LNS 66139 b HB4687 - 73 - LRB103 36052 LNS 66139 b
2653	2653	HB4687 - 73 - LRB103 36052 LNS 66139 b
2654	2654	1 procurement plan for their Illinois jurisdictional load.
2655	2655	2 (c) Renewable portfolio standard.
2656	2656	3 (1) The procurement plans shall include cost-effective
2657	2657	4 renewable energy resources. By June 1, 2025, a minimum of
2658	2658	5 25% of each utility's total supply to serve the load of
2659	2659	6 eligible retail customers, as defined in subsection (a) of
2660	2660	7 Section 16-111.5 of the Public Utilities Act, shall be
2661	2661	8 generated from cost-effective renewable energy resources.
2662	2662	9 To the extent that it is available, at least 75% of the
2663	2663	10 renewable energy resources used to meet these standards
2664	2664	11 shall come from wind generation. To the extent available,
2665	2665	12 half of the renewable energy resources procured from
2666	2666	13 distributed renewable energy generation shall come from
2667	2667	14 devices of less than 25 kilowatts in nameplate capacity.
2668	2668	15 Renewable energy resources procured from distributed
2669	2669	16 generation devices may also count toward the required
2670	2670	17 percentages for wind and solar photovoltaics. Procurement
2671	2671	18 of renewable energy resources from distributed renewable
2672	2672	19 energy generation devices shall be done on an annual basis
2673	2673	20 through multi-year contracts of no less than 5 years, and
2674	2674	21 shall consist solely of renewable energy credits.
2675	2675	22 The Agency shall create credit requirements for
2676	2676	23 suppliers of distributed renewable energy. In order to
2677	2677	24 minimize the administrative burden on contracting
2678	2678	25 entities, the Agency shall solicit the use of third-party
2679	2679	26 organizations to aggregate distributed renewable energy
2680	2680
2681	2681
2682	2682
2683	2683
2684	2684
2685	2685	HB4687 - 73 - LRB103 36052 LNS 66139 b
2686	2686
2687	2687
2688	2688	HB4687- 74 -LRB103 36052 LNS 66139 b HB4687 - 74 - LRB103 36052 LNS 66139 b
2689	2689	HB4687 - 74 - LRB103 36052 LNS 66139 b
2690	2690	1 into groups of no less than one megawatt in installed
2691	2691	2 capacity. These third-party organizations shall administer
2692	2692	3 contracts with individual distributed renewable energy
2693	2693	4 generation device owners. An individual distributed
2694	2694	5 renewable energy generation device owner shall have the
2695	2695	6 ability to measure the output of his or her distributed
2696	2696	7 renewable energy generation device.
2697	2697	8 For purposes of this subsection (c), "cost-effective"
2698	2698	9 means that the costs of procuring renewable energy
2699	2699	10 resources do not cause the limit stated in paragraph (2)
2700	2700	11 of this subsection (c) to be exceeded and do not exceed
2701	2701	12 benchmarks based on market prices for renewable energy
2702	2702	13 resources in the region, which shall be developed by the
2703	2703	14 procurement administrator, in consultation with the
2704	2704	15 Commission staff, Agency staff, and the procurement
2705	2705	16 monitor and shall be subject to Commission review and
2706	2706	17 approval. (A) The Agency shall develop a long-term
2707	2707	18 renewable resources procurement plan that shall include
2708	2708	19 procurement programs and competitive procurement events
2709	2709	20 necessary to meet the goals set forth in this subsection
2710	2710	21 (c). The initial long-term renewable resources procurement
2711	2711	22 plan shall be released for comment no later than 160 days
2712	2712	23 after June 1, 2017 (the effective date of Public Act
2713	2713	24 99-906). The Agency shall review, and may revise on an
2714	2714	25 expedited basis, the long-term renewable resources
2715	2715	26 procurement plan at least every 2 years, which shall be
2716	2716
2717	2717
2718	2718
2719	2719
2720	2720
2721	2721	HB4687 - 74 - LRB103 36052 LNS 66139 b
2722	2722
2723	2723
2724	2724	HB4687- 75 -LRB103 36052 LNS 66139 b HB4687 - 75 - LRB103 36052 LNS 66139 b
2725	2725	HB4687 - 75 - LRB103 36052 LNS 66139 b
2726	2726	1 conducted in conjunction with the procurement plan under
2727	2727	2 Section 16-111.5 of the Public Utilities Act to the extent
2728	2728	3 practicable to minimize administrative expense. No later
2729	2729	4 than 120 days after the effective date of this amendatory
2730	2730	5 Act of the 103rd General Assembly, the Agency shall
2731	2731	6 release for comment a revision to the long-term renewable
2732	2732	7 resources procurement plan, updating elements of the most
2733	2733	8 recently approved plan as needed to comply with this
2734	2734	9 amendatory Act of the 103rd General Assembly, and any
2735	2735	10 long-term renewable resources procurement plan update
2736	2736	11 published by the Agency but not yet approved by the
2737	2737	12 Illinois Commerce Commission shall be withdrawn. The
2738	2738	13 long-term renewable resources procurement plans shall be
2739	2739	14 subject to review and approval by the Commission under
2740	2740	15 Section 16-111.5 of the Public Utilities Act.
2741	2741	16 (B) Subject to subparagraph (F) of this paragraph (1),
2742	2742	17 the long-term renewable resources procurement plan shall
2743	2743	18 attempt to meet the goals for procurement of renewable
2744	2744	19 energy credits at levels of at least the following overall
2745	2745	20 percentages: 13% by the 2017 delivery year; increasing by
2746	2746	21 at least 1.5% each delivery year thereafter to at least
2747	2747	22 25% by the 2025 delivery year; increasing by at least 3%
2748	2748	23 each delivery year thereafter to at least 40% by the 2030
2749	2749	24 delivery year, and continuing at no less than 40% for each
2750	2750	25 delivery year thereafter. The Agency shall attempt to
2751	2751	26 procure 50% by delivery year 2040. The Agency shall
2752	2752
2753	2753
2754	2754
2755	2755
2756	2756
2757	2757	HB4687 - 75 - LRB103 36052 LNS 66139 b
2758	2758
2759	2759
2760	2760	HB4687- 76 -LRB103 36052 LNS 66139 b HB4687 - 76 - LRB103 36052 LNS 66139 b
2761	2761	HB4687 - 76 - LRB103 36052 LNS 66139 b
2762	2762	1 determine the annual increase between delivery year 2030
2763	2763	2 and delivery year 2040, if any, taking into account energy
2764	2764	3 demand, other energy resources, and other public policy
2765	2765	4 goals. In the event of a conflict between these goals and
2766	2766	5 the new wind, new photovoltaic, and hydropower procurement
2767	2767	6 requirements described in items (i) through (iii) of
2768	2768	7 subparagraph (C) of this paragraph (1), the long-term plan
2769	2769	8 shall prioritize compliance with the new wind, new
2770	2770	9 photovoltaic, and hydropower procurement requirements
2771	2771	10 described in items (i) through (iii) of subparagraph (C)
2772	2772	11 of this paragraph (1) over the annual percentage targets
2773	2773	12 described in this subparagraph (B). The Agency shall not
2774	2774	13 comply with the annual percentage targets described in
2775	2775	14 this subparagraph (B) by procuring renewable energy
2776	2776	15 credits that are unlikely to lead to the development of
2777	2777	16 new renewable resources or new, modernized, or retooled
2778	2778	17 hydropower facilities.
2779	2779	18 For the delivery year beginning June 1, 2017, the
2780	2780	19 procurement plan shall attempt to include, subject to the
2781	2781	20 prioritization outlined in this subparagraph (B),
2782	2782	21 cost-effective renewable energy resources equal to at
2783	2783	22 least 13% of each utility's load for eligible retail
2784	2784	23 customers and 13% of the applicable portion of each
2785	2785	24 utility's load for retail customers who are not eligible
2786	2786	25 retail customers, which applicable portion shall equal 50%
2787	2787	26 of the utility's load for retail customers who are not
2788	2788
2789	2789
2790	2790
2791	2791
2792	2792
2793	2793	HB4687 - 76 - LRB103 36052 LNS 66139 b
2794	2794
2795	2795
2796	2796	HB4687- 77 -LRB103 36052 LNS 66139 b HB4687 - 77 - LRB103 36052 LNS 66139 b
2797	2797	HB4687 - 77 - LRB103 36052 LNS 66139 b
2798	2798	1 eligible retail customers on February 28, 2017.
2799	2799	2 For the delivery year beginning June 1, 2018, the
2800	2800	3 procurement plan shall attempt to include, subject to the
2801	2801	4 prioritization outlined in this subparagraph (B),
2802	2802	5 cost-effective renewable energy resources equal to at
2803	2803	6 least 14.5% of each utility's load for eligible retail
2804	2804	7 customers and 14.5% of the applicable portion of each
2805	2805	8 utility's load for retail customers who are not eligible
2806	2806	9 retail customers, which applicable portion shall equal 75%
2807	2807	10 of the utility's load for retail customers who are not
2808	2808	11 eligible retail customers on February 28, 2017.
2809	2809	12 For the delivery year beginning June 1, 2019, and for
2810	2810	13 each year thereafter, the procurement plans shall attempt
2811	2811	14 to include, subject to the prioritization outlined in this
2812	2812	15 subparagraph (B), cost-effective renewable energy
2813	2813	16 resources equal to a minimum percentage of each utility's
2814	2814	17 load for all retail customers as follows: 16% by June 1,
2815	2815	18 2019; increasing by 1.5% each year thereafter to 25% by
2816	2816	19 June 1, 2025; and 25% by June 1, 2026; increasing by at
2817	2817	20 least 3% each delivery year thereafter to at least 40% by
2818	2818	21 the 2030 delivery year, and continuing at no less than 40%
2819	2819	22 for each delivery year thereafter. The Agency shall
2820	2820	23 attempt to procure 50% by delivery year 2040. The Agency
2821	2821	24 shall determine the annual increase between delivery year
2822	2822	25 2030 and delivery year 2040, if any, taking into account
2823	2823	26 energy demand, other energy resources, and other public
2824	2824
2825	2825
2826	2826
2827	2827
2828	2828
2829	2829	HB4687 - 77 - LRB103 36052 LNS 66139 b
2830	2830
2831	2831
2832	2832	HB4687- 78 -LRB103 36052 LNS 66139 b HB4687 - 78 - LRB103 36052 LNS 66139 b
2833	2833	HB4687 - 78 - LRB103 36052 LNS 66139 b
2834	2834	1 policy goals.
2835	2835	2 For each delivery year, the Agency shall first
2836	2836	3 recognize each utility's obligations for that delivery
2837	2837	4 year under existing contracts. Any renewable energy
2838	2838	5 credits under existing contracts, including renewable
2839	2839	6 energy credits as part of renewable energy resources,
2840	2840	7 shall be used to meet the goals set forth in this
2841	2841	8 subsection (c) for the delivery year.
2842	2842	9 (C) The long-term renewable resources procurement plan
2843	2843	10 described in subparagraph (A) of this paragraph (1) shall
2844	2844	11 include the procurement of renewable energy credits from
2845	2845	12 new projects pursuant to the following terms:
2846	2846	13 (i) At least 10,000,000 renewable energy credits
2847	2847	14 delivered annually by the end of the 2021 delivery
2848	2848	15 year, and increasing ratably to reach 45,000,000
2849	2849	16 renewable energy credits delivered annually from new
2850	2850	17 wind and solar projects by the end of delivery year
2851	2851	18 2030 such that the goals in subparagraph (B) of this
2852	2852	19 paragraph (1) are met entirely by procurements of
2853	2853	20 renewable energy credits from new wind and
2854	2854	21 photovoltaic projects. Of that amount, to the extent
2855	2855	22 possible, the Agency shall procure 45% from wind and
2856	2856	23 hydropower projects and 55% from photovoltaic
2857	2857	24 projects. Of the amount to be procured from
2858	2858	25 photovoltaic projects, the Agency shall procure: at
2859	2859	26 least 50% from solar photovoltaic projects using the
2860	2860
2861	2861
2862	2862
2863	2863
2864	2864
2865	2865	HB4687 - 78 - LRB103 36052 LNS 66139 b
2866	2866
2867	2867
2868	2868	HB4687- 79 -LRB103 36052 LNS 66139 b HB4687 - 79 - LRB103 36052 LNS 66139 b
2869	2869	HB4687 - 79 - LRB103 36052 LNS 66139 b
2870	2870	1 program outlined in subparagraph (K) of this paragraph
2871	2871	2 (1) from distributed renewable energy generation
2872	2872	3 devices or community renewable generation projects; at
2873	2873	4 least 47% from utility-scale solar projects; at least
2874	2874	5 3% from brownfield site photovoltaic projects that are
2875	2875	6 not community renewable generation projects.
2876	2876	7 In developing the long-term renewable resources
2877	2877	8 procurement plan, the Agency shall consider other
2878	2878	9 approaches, in addition to competitive procurements,
2879	2879	10 that can be used to procure renewable energy credits
2880	2880	11 from brownfield site photovoltaic projects and thereby
2881	2881	12 help return blighted or contaminated land to
2882	2882	13 productive use while enhancing public health and the
2883	2883	14 well-being of Illinois residents, including those in
2884	2884	15 environmental justice communities, as defined using
2885	2885	16 existing methodologies and findings used by the Agency
2886	2886	17 and its Administrator in its Illinois Solar for All
2887	2887	18 Program. The Agency shall also consider other
2888	2888	19 approaches, in addition to competitive procurements,
2889	2889	20 to procure renewable energy credits from new and
2890	2890	21 existing hydropower facilities to support the
2891	2891	22 development and maintenance of these facilities. The
2892	2892	23 Agency shall explore options to convert existing dams
2893	2893	24 but shall not consider approaches to develop new dams
2894	2894	25 where they do not already exist.
2895	2895	26 (ii) In any given delivery year, if forecasted
2896	2896
2897	2897
2898	2898
2899	2899
2900	2900
2901	2901	HB4687 - 79 - LRB103 36052 LNS 66139 b
2902	2902
2903	2903
2904	2904	HB4687- 80 -LRB103 36052 LNS 66139 b HB4687 - 80 - LRB103 36052 LNS 66139 b
2905	2905	HB4687 - 80 - LRB103 36052 LNS 66139 b
2906	2906	1 expenses are less than the maximum budget available
2907	2907	2 under subparagraph (E) of this paragraph (1), the
2908	2908	3 Agency shall continue to procure new renewable energy
2909	2909	4 credits until that budget is exhausted in the manner
2910	2910	5 outlined in item (i) of this subparagraph (C).
2911	2911	6 (iii) For purposes of this Section:
2912	2912	7 "New wind projects" means wind renewable energy
2913	2913	8 facilities that are energized after June 1, 2017 for
2914	2914	9 the delivery year commencing June 1, 2017.
2915	2915	10 "New photovoltaic projects" means photovoltaic
2916	2916	11 renewable energy facilities that are energized after
2917	2917	12 June 1, 2017. Photovoltaic projects developed under
2918	2918	13 Section 1-56 of this Act shall not apply towards the
2919	2919	14 new photovoltaic project requirements in this
2920	2920	15 subparagraph (C).
2921	2921	16 For purposes of calculating whether the Agency has
2922	2922	17 procured enough new wind and solar renewable energy
2923	2923	18 credits required by this subparagraph (C), renewable
2924	2924	19 energy facilities that have a multi-year renewable
2925	2925	20 energy credit delivery contract with the utility
2926	2926	21 through at least delivery year 2030 shall be
2927	2927	22 considered new, however no renewable energy credits
2928	2928	23 from contracts entered into before June 1, 2021 shall
2929	2929	24 be used to calculate whether the Agency has procured
2930	2930	25 the correct proportion of new wind and new solar
2931	2931	26 contracts described in this subparagraph (C) for
2932	2932
2933	2933
2934	2934
2935	2935
2936	2936
2937	2937	HB4687 - 80 - LRB103 36052 LNS 66139 b
2938	2938
2939	2939
2940	2940	HB4687- 81 -LRB103 36052 LNS 66139 b HB4687 - 81 - LRB103 36052 LNS 66139 b
2941	2941	HB4687 - 81 - LRB103 36052 LNS 66139 b
2942	2942	1 delivery year 2021 and thereafter.
2943	2943	2 (D) Renewable energy credits shall be cost effective.
2944	2944	3 For purposes of this subsection (c), "cost effective"
2945	2945	4 means that the costs of procuring renewable energy
2946	2946	5 resources do not cause the limit stated in subparagraph
2947	2947	6 (E) of this paragraph (1) to be exceeded and, for
2948	2948	7 renewable energy credits procured through a competitive
2949	2949	8 procurement event, do not exceed benchmarks based on
2950	2950	9 market prices for like products in the region. For
2951	2951	10 purposes of this subsection (c), "like products" means
2952	2952	11 contracts for renewable energy credits from the same or
2953	2953	12 substantially similar technology, same or substantially
2954	2954	13 similar vintage (new or existing), the same or
2955	2955	14 substantially similar quantity, and the same or
2956	2956	15 substantially similar contract length and structure.
2957	2957	16 Benchmarks shall reflect development, financing, or
2958	2958	17 related costs resulting from requirements imposed through
2959	2959	18 other provisions of State law, including, but not limited
2960	2960	19 to, requirements in subparagraphs (P) and (Q) of this
2961	2961	20 paragraph (1) and the Renewable Energy Facilities
2962	2962	21 Agricultural Impact Mitigation Act. Confidential
2963	2963	22 benchmarks shall be developed by the procurement
2964	2964	23 administrator, in consultation with the Commission staff,
2965	2965	24 Agency staff, and the procurement monitor and shall be
2966	2966	25 subject to Commission review and approval. If price
2967	2967	26 benchmarks for like products in the region are not
2968	2968
2969	2969
2970	2970
2971	2971
2972	2972
2973	2973	HB4687 - 81 - LRB103 36052 LNS 66139 b
2974	2974
2975	2975
2976	2976	HB4687- 82 -LRB103 36052 LNS 66139 b HB4687 - 82 - LRB103 36052 LNS 66139 b
2977	2977	HB4687 - 82 - LRB103 36052 LNS 66139 b
2978	2978	1 available, the procurement administrator shall establish
2979	2979	2 price benchmarks based on publicly available data on
2980	2980	3 regional technology costs and expected current and future
2981	2981	4 regional energy prices. The benchmarks in this Section
2982	2982	5 shall not be used to curtail or otherwise reduce
2983	2983	6 contractual obligations entered into by or through the
2984	2984	7 Agency prior to June 1, 2017 (the effective date of Public
2985	2985	8 Act 99-906).
2986	2986	9 (E) For purposes of this subsection (c), the required
2987	2987	10 procurement of cost-effective renewable energy resources
2988	2988	11 for a particular year commencing prior to June 1, 2017
2989	2989	12 shall be measured as a percentage of the actual amount of
2990	2990	13 electricity (megawatt-hours) supplied by the electric
2991	2991	14 utility to eligible retail customers in the delivery year
2992	2992	15 ending immediately prior to the procurement, and, for
2993	2993	16 delivery years commencing on and after June 1, 2017, the
2994	2994	17 required procurement of cost-effective renewable energy
2995	2995	18 resources for a particular year shall be measured as a
2996	2996	19 percentage of the actual amount of electricity
2997	2997	20 (megawatt-hours) delivered by the electric utility in the
2998	2998	21 delivery year ending immediately prior to the procurement,
2999	2999	22 to all retail customers in its service territory. For
3000	3000	23 purposes of this subsection (c), the amount paid per
3001	3001	24 kilowatthour means the total amount paid for electric
3002	3002	25 service expressed on a per kilowatthour basis. For
3003	3003	26 purposes of this subsection (c), the total amount paid for
3004	3004
3005	3005
3006	3006
3007	3007
3008	3008
3009	3009	HB4687 - 82 - LRB103 36052 LNS 66139 b
3010	3010
3011	3011
3012	3012	HB4687- 83 -LRB103 36052 LNS 66139 b HB4687 - 83 - LRB103 36052 LNS 66139 b
3013	3013	HB4687 - 83 - LRB103 36052 LNS 66139 b
3014	3014	1 electric service includes without limitation amounts paid
3015	3015	2 for supply, transmission, capacity, distribution,
3016	3016	3 surcharges, and add-on taxes.
3017	3017	4 Notwithstanding the requirements of this subsection
3018	3018	5 (c), the total of renewable energy resources procured
3019	3019	6 under the procurement plan for any single year shall be
3020	3020	7 subject to the limitations of this subparagraph (E). Such
3021	3021	8 procurement shall be reduced for all retail customers
3022	3022	9 based on the amount necessary to limit the annual
3023	3023	10 estimated average net increase due to the costs of these
3024	3024	11 resources included in the amounts paid by eligible retail
3025	3025	12 customers in connection with electric service to no more
3026	3026	13 than 4.25% of the amount paid per kilowatthour by those
3027	3027	14 customers during the year ending May 31, 2009. To arrive
3028	3028	15 at a maximum dollar amount of renewable energy resources
3029	3029	16 to be procured for the particular delivery year, the
3030	3030	17 resulting per kilowatthour amount shall be applied to the
3031	3031	18 actual amount of kilowatthours of electricity delivered,
3032	3032	19 or applicable portion of such amount as specified in
3033	3033	20 paragraph (1) of this subsection (c), as applicable, by
3034	3034	21 the electric utility in the delivery year immediately
3035	3035	22 prior to the procurement to all retail customers in its
3036	3036	23 service territory. The calculations required by this
3037	3037	24 subparagraph (E) shall be made only once for each delivery
3038	3038	25 year at the time that the renewable energy resources are
3039	3039	26 procured. Once the determination as to the amount of
3040	3040
3041	3041
3042	3042
3043	3043
3044	3044
3045	3045	HB4687 - 83 - LRB103 36052 LNS 66139 b
3046	3046
3047	3047
3048	3048	HB4687- 84 -LRB103 36052 LNS 66139 b HB4687 - 84 - LRB103 36052 LNS 66139 b
3049	3049	HB4687 - 84 - LRB103 36052 LNS 66139 b
3050	3050	1 renewable energy resources to procure is made based on the
3051	3051	2 calculations set forth in this subparagraph (E) and the
3052	3052	3 contracts procuring those amounts are executed, no
3053	3053	4 subsequent rate impact determinations shall be made and no
3054	3054	5 adjustments to those contract amounts shall be allowed.
3055	3055	6 All costs incurred under such contracts shall be fully
3056	3056	7 recoverable by the electric utility as provided in this
3057	3057	8 Section.
3058	3058	9 (F) If the limitation on the amount of renewable
3059	3059	10 energy resources procured in subparagraph (E) of this
3060	3060	11 paragraph (1) prevents the Agency from meeting all of the
3061	3061	12 goals in this subsection (c), the Agency's long-term plan
3062	3062	13 shall prioritize compliance with the requirements of this
3063	3063	14 subsection (c) regarding renewable energy credits in the
3064	3064	15 following order:
3065	3065	16 (i) renewable energy credits under existing
3066	3066	17 contractual obligations as of June 1, 2021;
3067	3067	18 (i-5) funding for the Illinois Solar for All
3068	3068	19 Program, as described in subparagraph (O) of this
3069	3069	20 paragraph (1);
3070	3070	21 (ii) renewable energy credits necessary to comply
3071	3071	22 with the new wind and new photovoltaic procurement
3072	3072	23 requirements described in items (i) through (iii) of
3073	3073	24 subparagraph (C) of this paragraph (1); and
3074	3074	25 (iii) renewable energy credits necessary to meet
3075	3075	26 the remaining requirements of this subsection (c).
3076	3076
3077	3077
3078	3078
3079	3079
3080	3080
3081	3081	HB4687 - 84 - LRB103 36052 LNS 66139 b
3082	3082
3083	3083
3084	3084	HB4687- 85 -LRB103 36052 LNS 66139 b HB4687 - 85 - LRB103 36052 LNS 66139 b
3085	3085	HB4687 - 85 - LRB103 36052 LNS 66139 b
3086	3086	1 (G) The following provisions shall apply to the
3087	3087	2 Agency's procurement of renewable energy credits under
3088	3088	3 this subsection (c):
3089	3089	4 (i) Notwithstanding whether a long-term renewable
3090	3090	5 resources procurement plan has been approved, the
3091	3091	6 Agency shall conduct an initial forward procurement
3092	3092	7 for renewable energy credits from new utility-scale
3093	3093	8 wind projects within 160 days after June 1, 2017 (the
3094	3094	9 effective date of Public Act 99-906). For the purposes
3095	3095	10 of this initial forward procurement, the Agency shall
3096	3096	11 solicit 15-year contracts for delivery of 1,000,000
3097	3097	12 renewable energy credits delivered annually from new
3098	3098	13 utility-scale wind projects to begin delivery on June
3099	3099	14 1, 2019, if available, but not later than June 1, 2021,
3100	3100	15 unless the project has delays in the establishment of
3101	3101	16 an operating interconnection with the applicable
3102	3102	17 transmission or distribution system as a result of the
3103	3103	18 actions or inactions of the transmission or
3104	3104	19 distribution provider, or other causes for force
3105	3105	20 majeure as outlined in the procurement contract, in
3106	3106	21 which case, not later than June 1, 2022. Payments to
3107	3107	22 suppliers of renewable energy credits shall commence
3108	3108	23 upon delivery. Renewable energy credits procured under
3109	3109	24 this initial procurement shall be included in the
3110	3110	25 Agency's long-term plan and shall apply to all
3111	3111	26 renewable energy goals in this subsection (c).
3112	3112
3113	3113
3114	3114
3115	3115
3116	3116
3117	3117	HB4687 - 85 - LRB103 36052 LNS 66139 b
3118	3118
3119	3119
3120	3120	HB4687- 86 -LRB103 36052 LNS 66139 b HB4687 - 86 - LRB103 36052 LNS 66139 b
3121	3121	HB4687 - 86 - LRB103 36052 LNS 66139 b
3122	3122	1 (ii) Notwithstanding whether a long-term renewable
3123	3123	2 resources procurement plan has been approved, the
3124	3124	3 Agency shall conduct an initial forward procurement
3125	3125	4 for renewable energy credits from new utility-scale
3126	3126	5 solar projects and brownfield site photovoltaic
3127	3127	6 projects within one year after June 1, 2017 (the
3128	3128	7 effective date of Public Act 99-906). For the purposes
3129	3129	8 of this initial forward procurement, the Agency shall
3130	3130	9 solicit 15-year contracts for delivery of 1,000,000
3131	3131	10 renewable energy credits delivered annually from new
3132	3132	11 utility-scale solar projects and brownfield site
3133	3133	12 photovoltaic projects to begin delivery on June 1,
3134	3134	13 2019, if available, but not later than June 1, 2021,
3135	3135	14 unless the project has delays in the establishment of
3136	3136	15 an operating interconnection with the applicable
3137	3137	16 transmission or distribution system as a result of the
3138	3138	17 actions or inactions of the transmission or
3139	3139	18 distribution provider, or other causes for force
3140	3140	19 majeure as outlined in the procurement contract, in
3141	3141	20 which case, not later than June 1, 2022. The Agency may
3142	3142	21 structure this initial procurement in one or more
3143	3143	22 discrete procurement events. Payments to suppliers of
3144	3144	23 renewable energy credits shall commence upon delivery.
3145	3145	24 Renewable energy credits procured under this initial
3146	3146	25 procurement shall be included in the Agency's
3147	3147	26 long-term plan and shall apply to all renewable energy
3148	3148
3149	3149
3150	3150
3151	3151
3152	3152
3153	3153	HB4687 - 86 - LRB103 36052 LNS 66139 b
3154	3154
3155	3155
3156	3156	HB4687- 87 -LRB103 36052 LNS 66139 b HB4687 - 87 - LRB103 36052 LNS 66139 b
3157	3157	HB4687 - 87 - LRB103 36052 LNS 66139 b
3158	3158	1 goals in this subsection (c).
3159	3159	2 (iii) Notwithstanding whether the Commission has
3160	3160	3 approved the periodic long-term renewable resources
3161	3161	4 procurement plan revision described in Section
3162	3162	5 16-111.5 of the Public Utilities Act, the Agency shall
3163	3163	6 conduct at least one subsequent forward procurement
3164	3164	7 for renewable energy credits from new utility-scale
3165	3165	8 wind projects, new utility-scale solar projects, and
3166	3166	9 new brownfield site photovoltaic projects within 240
3167	3167	10 days after the effective date of this amendatory Act
3168	3168	11 of the 102nd General Assembly in quantities necessary
3169	3169	12 to meet the requirements of subparagraph (C) of this
3170	3170	13 paragraph (1) through the delivery year beginning June
3171	3171	14 1, 2021.
3172	3172	15 (iv) Notwithstanding whether the Commission has
3173	3173	16 approved the periodic long-term renewable resources
3174	3174	17 procurement plan revision described in Section
3175	3175	18 16-111.5 of the Public Utilities Act, the Agency shall
3176	3176	19 open capacity for each category in the Adjustable
3177	3177	20 Block program within 90 days after the effective date
3178	3178	21 of this amendatory Act of the 102nd General Assembly
3179	3179	22 manner:
3180	3180	23 (1) The Agency shall open the first block of
3181	3181	24 annual capacity for the category described in item
3182	3182	25 (i) of subparagraph (K) of this paragraph (1). The
3183	3183	26 first block of annual capacity for item (i) shall
3184	3184
3185	3185
3186	3186
3187	3187
3188	3188
3189	3189	HB4687 - 87 - LRB103 36052 LNS 66139 b
3190	3190
3191	3191
3192	3192	HB4687- 88 -LRB103 36052 LNS 66139 b HB4687 - 88 - LRB103 36052 LNS 66139 b
3193	3193	HB4687 - 88 - LRB103 36052 LNS 66139 b
3194	3194	1 be for at least 75 megawatts of total nameplate
3195	3195	2 capacity. The price of the renewable energy credit
3196	3196	3 for this block of capacity shall be 4% less than
3197	3197	4 the price of the last open block in this category.
3198	3198	5 Projects on a waitlist shall be awarded contracts
3199	3199	6 first in the order in which they appear on the
3200	3200	7 waitlist. Notwithstanding anything to the
3201	3201	8 contrary, for those renewable energy credits that
3202	3202	9 qualify and are procured under this subitem (1) of
3203	3203	10 this item (iv), the renewable energy credit
3204	3204	11 delivery contract value shall be paid in full,
3205	3205	12 based on the estimated generation during the first
3206	3206	13 15 years of operation, by the contracting
3207	3207	14 utilities at the time that the facility producing
3208	3208	15 the renewable energy credits is interconnected at
3209	3209	16 the distribution system level of the utility and
3210	3210	17 verified as energized and in compliance by the
3211	3211	18 Program Administrator. The electric utility shall
3212	3212	19 receive and retire all renewable energy credits
3213	3213	20 generated by the project for the first 15 years of
3214	3214	21 operation. Renewable energy credits generated by
3215	3215	22 the project thereafter shall not be transferred
3216	3216	23 under the renewable energy credit delivery
3217	3217	24 contract with the counterparty electric utility.
3218	3218	25 (2) The Agency shall open the first block of
3219	3219	26 annual capacity for the category described in item
3220	3220
3221	3221
3222	3222
3223	3223
3224	3224
3225	3225	HB4687 - 88 - LRB103 36052 LNS 66139 b
3226	3226
3227	3227
3228	3228	HB4687- 89 -LRB103 36052 LNS 66139 b HB4687 - 89 - LRB103 36052 LNS 66139 b
3229	3229	HB4687 - 89 - LRB103 36052 LNS 66139 b
3230	3230	1 (ii) of subparagraph (K) of this paragraph (1).
3231	3231	2 The first block of annual capacity for item (ii)
3232	3232	3 shall be for at least 75 megawatts of total
3233	3233	4 nameplate capacity.
3234	3234	5 (A) The price of the renewable energy
3235	3235	6 credit for any project on a waitlist for this
3236	3236	7 category before the opening of this block
3237	3237	8 shall be 4% less than the price of the last
3238	3238	9 open block in this category. Projects on the
3239	3239	10 waitlist shall be awarded contracts first in
3240	3240	11 the order in which they appear on the
3241	3241	12 waitlist. Any projects that are less than or
3242	3242	13 equal to 25 kilowatts in size on the waitlist
3243	3243	14 for this capacity shall be moved to the
3244	3244	15 waitlist for paragraph (1) of this item (iv).
3245	3245	16 Notwithstanding anything to the contrary,
3246	3246	17 projects that were on the waitlist prior to
3247	3247	18 opening of this block shall not be required to
3248	3248	19 be in compliance with the requirements of
3249	3249	20 subparagraph (Q) of this paragraph (1) of this
3250	3250	21 subsection (c). Notwithstanding anything to
3251	3251	22 the contrary, for those renewable energy
3252	3252	23 credits procured from projects that were on
3253	3253	24 the waitlist for this category before the
3254	3254	25 opening of this block 20% of the renewable
3255	3255	26 energy credit delivery contract value, based
3256	3256
3257	3257
3258	3258
3259	3259
3260	3260
3261	3261	HB4687 - 89 - LRB103 36052 LNS 66139 b
3262	3262
3263	3263
3264	3264	HB4687- 90 -LRB103 36052 LNS 66139 b HB4687 - 90 - LRB103 36052 LNS 66139 b
3265	3265	HB4687 - 90 - LRB103 36052 LNS 66139 b
3266	3266	1 on the estimated generation during the first
3267	3267	2 15 years of operation, shall be paid by the
3268	3268	3 contracting utilities at the time that the
3269	3269	4 facility producing the renewable energy
3270	3270	5 credits is interconnected at the distribution
3271	3271	6 system level of the utility and verified as
3272	3272	7 energized by the Program Administrator. The
3273	3273	8 remaining portion shall be paid ratably over
3274	3274	9 the subsequent 4-year period. The electric
3275	3275	10 utility shall receive and retire all renewable
3276	3276	11 energy credits generated by the project during
3277	3277	12 the first 15 years of operation. Renewable
3278	3278	13 energy credits generated by the project
3279	3279	14 thereafter shall not be transferred under the
3280	3280	15 renewable energy credit delivery contract with
3281	3281	16 the counterparty electric utility.
3282	3282	17 (B) The price of renewable energy credits
3283	3283	18 for any project not on the waitlist for this
3284	3284	19 category before the opening of the block shall
3285	3285	20 be determined and published by the Agency.
3286	3286	21 Projects not on a waitlist as of the opening
3287	3287	22 of this block shall be subject to the
3288	3288	23 requirements of subparagraph (Q) of this
3289	3289	24 paragraph (1), as applicable. Projects not on
3290	3290	25 a waitlist as of the opening of this block
3291	3291	26 shall be subject to the contract provisions
3292	3292
3293	3293
3294	3294
3295	3295
3296	3296
3297	3297	HB4687 - 90 - LRB103 36052 LNS 66139 b
3298	3298
3299	3299
3300	3300	HB4687- 91 -LRB103 36052 LNS 66139 b HB4687 - 91 - LRB103 36052 LNS 66139 b
3301	3301	HB4687 - 91 - LRB103 36052 LNS 66139 b
3302	3302	1 outlined in item (iii) of subparagraph (L) of
3303	3303	2 this paragraph (1). The Agency shall strive to
3304	3304	3 publish updated prices and an updated
3305	3305	4 renewable energy credit delivery contract as
3306	3306	5 quickly as possible.
3307	3307	6 (3) For opening the first 2 blocks of annual
3308	3308	7 capacity for projects participating in item (iii)
3309	3309	8 of subparagraph (K) of paragraph (1) of subsection
3310	3310	9 (c), projects shall be selected exclusively from
3311	3311	10 those projects on the ordinal waitlists of
3312	3312	11 community renewable generation projects
3313	3313	12 established by the Agency based on the status of
3314	3314	13 those ordinal waitlists as of December 31, 2020,
3315	3315	14 and only those projects previously determined to
3316	3316	15 be eligible for the Agency's April 2019 community
3317	3317	16 solar project selection process.
3318	3318	17 The first 2 blocks of annual capacity for item
3319	3319	18 (iii) shall be for 250 megawatts of total
3320	3320	19 nameplate capacity, with both blocks opening
3321	3321	20 simultaneously under the schedule outlined in the
3322	3322	21 paragraphs below. Projects shall be selected as
3323	3323	22 follows:
3324	3324	23 (A) The geographic balance of selected
3325	3325	24 projects shall follow the Group classification
3326	3326	25 found in the Agency's Revised Long-Term
3327	3327	26 Renewable Resources Procurement Plan, with 70%
3328	3328
3329	3329
3330	3330
3331	3331
3332	3332
3333	3333	HB4687 - 91 - LRB103 36052 LNS 66139 b
3334	3334
3335	3335
3336	3336	HB4687- 92 -LRB103 36052 LNS 66139 b HB4687 - 92 - LRB103 36052 LNS 66139 b
3337	3337	HB4687 - 92 - LRB103 36052 LNS 66139 b
3338	3338	1 of capacity allocated to projects on the Group
3339	3339	2 B waitlist and 30% of capacity allocated to
3340	3340	3 projects on the Group A waitlist.
3341	3341	4 (B) Contract awards for waitlisted
3342	3342	5 projects shall be allocated proportionate to
3343	3343	6 the total nameplate capacity amount across
3344	3344	7 both ordinal waitlists associated with that
3345	3345	8 applicant firm or its affiliates, subject to
3346	3346	9 the following conditions.
3347	3347	10 (i) Each applicant firm having a
3348	3348	11 waitlisted project eligible for selection
3349	3349	12 shall receive no less than 500 kilowatts
3350	3350	13 in awarded capacity across all groups, and
3351	3351	14 no approved vendor may receive more than
3352	3352	15 20% of each Group's waitlist allocation.
3353	3353	16 (ii) Each applicant firm, upon
3354	3354	17 receiving an award of program capacity
3355	3355	18 proportionate to its waitlisted capacity,
3356	3356	19 may then determine which waitlisted
3357	3357	20 projects it chooses to be selected for a
3358	3358	21 contract award up to that capacity amount.
3359	3359	22 (iii) Assuming all other program
3360	3360	23 requirements are met, applicant firms may
3361	3361	24 adjust the nameplate capacity of applicant
3362	3362	25 projects without losing waitlist
3363	3363	26 eligibility, so long as no project is
3364	3364
3365	3365
3366	3366
3367	3367
3368	3368
3369	3369	HB4687 - 92 - LRB103 36052 LNS 66139 b
3370	3370
3371	3371
3372	3372	HB4687- 93 -LRB103 36052 LNS 66139 b HB4687 - 93 - LRB103 36052 LNS 66139 b
3373	3373	HB4687 - 93 - LRB103 36052 LNS 66139 b
3374	3374	1 greater than 2,000 kilowatts in size.
3375	3375	2 (iv) Assuming all other program
3376	3376	3 requirements are met, applicant firms may
3377	3377	4 adjust the expected production associated
3378	3378	5 with applicant projects, subject to
3379	3379	6 verification by the Program Administrator.
3380	3380	7 (C) After a review of affiliate
3381	3381	8 information and the current ordinal waitlists,
3382	3382	9 the Agency shall announce the nameplate
3383	3383	10 capacity award amounts associated with
3384	3384	11 applicant firms no later than 90 days after
3385	3385	12 the effective date of this amendatory Act of
3386	3386	13 the 102nd General Assembly.
3387	3387	14 (D) Applicant firms shall submit their
3388	3388	15 portfolio of projects used to satisfy those
3389	3389	16 contract awards no less than 90 days after the
3390	3390	17 Agency's announcement. The total nameplate
3391	3391	18 capacity of all projects used to satisfy that
3392	3392	19 portfolio shall be no greater than the
3393	3393	20 Agency's nameplate capacity award amount
3394	3394	21 associated with that applicant firm. An
3395	3395	22 applicant firm may decline, in whole or in
3396	3396	23 part, its nameplate capacity award without
3397	3397	24 penalty, with such unmet capacity rolled over
3398	3398	25 to the next block opening for project
3399	3399	26 selection under item (iii) of subparagraph (K)
3400	3400
3401	3401
3402	3402
3403	3403
3404	3404
3405	3405	HB4687 - 93 - LRB103 36052 LNS 66139 b
3406	3406
3407	3407
3408	3408	HB4687- 94 -LRB103 36052 LNS 66139 b HB4687 - 94 - LRB103 36052 LNS 66139 b
3409	3409	HB4687 - 94 - LRB103 36052 LNS 66139 b
3410	3410	1 of this subsection (c). Any projects not
3411	3411	2 included in an applicant firm's portfolio may
3412	3412	3 reapply without prejudice upon the next block
3413	3413	4 reopening for project selection under item
3414	3414	5 (iii) of subparagraph (K) of this subsection
3415	3415	6 (c).
3416	3416	7 (E) The renewable energy credit delivery
3417	3417	8 contract shall be subject to the contract and
3418	3418	9 payment terms outlined in item (iv) of
3419	3419	10 subparagraph (L) of this subsection (c).
3420	3420	11 Contract instruments used for this
3421	3421	12 subparagraph shall contain the following
3422	3422	13 terms:
3423	3423	14 (i) Renewable energy credit prices
3424	3424	15 shall be fixed, without further adjustment
3425	3425	16 under any other provision of this Act or
3426	3426	17 for any other reason, at 10% lower than
3427	3427	18 prices applicable to the last open block
3428	3428	19 for this category, inclusive of any adders
3429	3429	20 available for achieving a minimum of 50%
3430	3430	21 of subscribers to the project's nameplate
3431	3431	22 capacity being residential or small
3432	3432	23 commercial customers with subscriptions of
3433	3433	24 below 25 kilowatts in size;
3434	3434	25 (ii) A requirement that a minimum of
3435	3435	26 50% of subscribers to the project's
3436	3436
3437	3437
3438	3438
3439	3439
3440	3440
3441	3441	HB4687 - 94 - LRB103 36052 LNS 66139 b
3442	3442
3443	3443
3444	3444	HB4687- 95 -LRB103 36052 LNS 66139 b HB4687 - 95 - LRB103 36052 LNS 66139 b
3445	3445	HB4687 - 95 - LRB103 36052 LNS 66139 b
3446	3446	1 nameplate capacity be residential or small
3447	3447	2 commercial customers with subscriptions of
3448	3448	3 below 25 kilowatts in size;
3449	3449	4 (iii) Permission for the ability of a
3450	3450	5 contract holder to substitute projects
3451	3451	6 with other waitlisted projects without
3452	3452	7 penalty should a project receive a
3453	3453	8 non-binding estimate of costs to construct
3454	3454	9 the interconnection facilities and any
3455	3455	10 required distribution upgrades associated
3456	3456	11 with that project of greater than 30 cents
3457	3457	12 per watt AC of that project's nameplate
3458	3458	13 capacity. In developing the applicable
3459	3459	14 contract instrument, the Agency may
3460	3460	15 consider whether other circumstances
3461	3461	16 outside of the control of the applicant
3462	3462	17 firm should also warrant project
3463	3463	18 substitution rights.
3464	3464	19 The Agency shall publish a finalized
3465	3465	20 updated renewable energy credit delivery
3466	3466	21 contract developed consistent with these terms
3467	3467	22 and conditions no less than 30 days before
3468	3468	23 applicant firms must submit their portfolio of
3469	3469	24 projects pursuant to item (D).
3470	3470	25 (F) To be eligible for an award, the
3471	3471	26 applicant firm shall certify that not less
3472	3472
3473	3473
3474	3474
3475	3475
3476	3476
3477	3477	HB4687 - 95 - LRB103 36052 LNS 66139 b
3478	3478
3479	3479
3480	3480	HB4687- 96 -LRB103 36052 LNS 66139 b HB4687 - 96 - LRB103 36052 LNS 66139 b
3481	3481	HB4687 - 96 - LRB103 36052 LNS 66139 b
3482	3482	1 than prevailing wage, as determined pursuant
3483	3483	2 to the Illinois Prevailing Wage Act, was or
3484	3484	3 will be paid to employees who are engaged in
3485	3485	4 construction activities associated with a
3486	3486	5 selected project.
3487	3487	6 (4) The Agency shall open the first block of
3488	3488	7 annual capacity for the category described in item
3489	3489	8 (iv) of subparagraph (K) of this paragraph (1).
3490	3490	9 The first block of annual capacity for item (iv)
3491	3491	10 shall be for at least 50 megawatts of total
3492	3492	11 nameplate capacity. Renewable energy credit prices
3493	3493	12 shall be fixed, without further adjustment under
3494	3494	13 any other provision of this Act or for any other
3495	3495	14 reason, at the price in the last open block in the
3496	3496	15 category described in item (ii) of subparagraph
3497	3497	16 (K) of this paragraph (1). Pricing for future
3498	3498	17 blocks of annual capacity for this category may be
3499	3499	18 adjusted in the Agency's second revision to its
3500	3500	19 Long-Term Renewable Resources Procurement Plan.
3501	3501	20 Projects in this category shall be subject to the
3502	3502	21 contract terms outlined in item (iv) of
3503	3503	22 subparagraph (L) of this paragraph (1).
3504	3504	23 (5) The Agency shall open the equivalent of 2
3505	3505	24 years of annual capacity for the category
3506	3506	25 described in item (v) of subparagraph (K) of this
3507	3507	26 paragraph (1). The first block of annual capacity
3508	3508
3509	3509
3510	3510
3511	3511
3512	3512
3513	3513	HB4687 - 96 - LRB103 36052 LNS 66139 b
3514	3514
3515	3515
3516	3516	HB4687- 97 -LRB103 36052 LNS 66139 b HB4687 - 97 - LRB103 36052 LNS 66139 b
3517	3517	HB4687 - 97 - LRB103 36052 LNS 66139 b
3518	3518	1 for item (v) shall be for at least 10 megawatts of
3519	3519	2 total nameplate capacity. Notwithstanding the
3520	3520	3 provisions of item (v) of subparagraph (K) of this
3521	3521	4 paragraph (1), for the purpose of this initial
3522	3522	5 block, the agency shall accept new project
3523	3523	6 applications intended to increase the diversity of
3524	3524	7 areas hosting community solar projects, the
3525	3525	8 business models of projects, and the size of
3526	3526	9 projects, as described by the Agency in its
3527	3527	10 long-term renewable resources procurement plan
3528	3528	11 that is approved as of the effective date of this
3529	3529	12 amendatory Act of the 102nd General Assembly.
3530	3530	13 Projects in this category shall be subject to the
3531	3531	14 contract terms outlined in item (iii) of
3532	3532	15 subsection (L) of this paragraph (1).
3533	3533	16 (6) The Agency shall open the first blocks of
3534	3534	17 annual capacity for the category described in item
3535	3535	18 (vi) of subparagraph (K) of this paragraph (1),
3536	3536	19 with allocations of capacity within the block
3537	3537	20 generally matching the historical share of block
3538	3538	21 capacity allocated between the category described
3539	3539	22 in items (i) and (ii) of subparagraph (K) of this
3540	3540	23 paragraph (1). The first two blocks of annual
3541	3541	24 capacity for item (vi) shall be for at least 75
3542	3542	25 megawatts of total nameplate capacity. The price
3543	3543	26 of renewable energy credits for the blocks of
3544	3544
3545	3545
3546	3546
3547	3547
3548	3548
3549	3549	HB4687 - 97 - LRB103 36052 LNS 66139 b
3550	3550
3551	3551
3552	3552	HB4687- 98 -LRB103 36052 LNS 66139 b HB4687 - 98 - LRB103 36052 LNS 66139 b
3553	3553	HB4687 - 98 - LRB103 36052 LNS 66139 b
3554	3554	1 capacity shall be 4% less than the price of the
3555	3555	2 last open blocks in the categories described in
3556	3556	3 items (i) and (ii) of subparagraph (K) of this
3557	3557	4 paragraph (1). Pricing for future blocks of annual
3558	3558	5 capacity for this category may be adjusted in the
3559	3559	6 Agency's second revision to its Long-Term
3560	3560	7 Renewable Resources Procurement Plan. Projects in
3561	3561	8 this category shall be subject to the applicable
3562	3562	9 contract terms outlined in items (ii) and (iii) of
3563	3563	10 subparagraph (L) of this paragraph (1).
3564	3564	11 (v) Upon the effective date of this amendatory Act
3565	3565	12 of the 102nd General Assembly, for all competitive
3566	3566	13 procurements and any procurements of renewable energy
3567	3567	14 credit from new utility-scale wind and new
3568	3568	15 utility-scale photovoltaic projects, the Agency shall
3569	3569	16 procure indexed renewable energy credits and direct
3570	3570	17 respondents to offer a strike price.
3571	3571	18 (1) The purchase price of the indexed
3572	3572	19 renewable energy credit payment shall be
3573	3573	20 calculated for each settlement period. That
3574	3574	21 payment, for any settlement period, shall be equal
3575	3575	22 to the difference resulting from subtracting the
3576	3576	23 strike price from the index price for that
3577	3577	24 settlement period. If this difference results in a
3578	3578	25 negative number, the indexed REC counterparty
3579	3579	26 shall owe the seller the absolute value multiplied
3580	3580
3581	3581
3582	3582
3583	3583
3584	3584
3585	3585	HB4687 - 98 - LRB103 36052 LNS 66139 b
3586	3586
3587	3587
3588	3588	HB4687- 99 -LRB103 36052 LNS 66139 b HB4687 - 99 - LRB103 36052 LNS 66139 b
3589	3589	HB4687 - 99 - LRB103 36052 LNS 66139 b
3590	3590	1 by the quantity of energy produced in the relevant
3591	3591	2 settlement period. If this difference results in a
3592	3592	3 positive number, the seller shall owe the indexed
3593	3593	4 REC counterparty this amount multiplied by the
3594	3594	5 quantity of energy produced in the relevant
3595	3595	6 settlement period.
3596	3596	7 (2) Parties shall cash settle every month,
3597	3597	8 summing up all settlements (both positive and
3598	3598	9 negative, if applicable) for the prior month.
3599	3599	10 (3) To ensure funding in the annual budget
3600	3600	11 established under subparagraph (E) for indexed
3601	3601	12 renewable energy credit procurements for each year
3602	3602	13 of the term of such contracts, which must have a
3603	3603	14 minimum tenure of 20 calendar years, the
3604	3604	15 procurement administrator, Agency, Commission
3605	3605	16 staff, and procurement monitor shall quantify the
3606	3606	17 annual cost of the contract by utilizing an
3607	3607	18 industry-standard, third-party forward price curve
3608	3608	19 for energy at the appropriate hub or load zone,
3609	3609	20 including the estimated magnitude and timing of
3610	3610	21 the price effects related to federal carbon
3611	3611	22 controls. Each forward price curve shall contain a
3612	3612	23 specific value of the forecasted market price of
3613	3613	24 electricity for each annual delivery year of the
3614	3614	25 contract. For procurement planning purposes, the
3615	3615	26 impact on the annual budget for the cost of
3616	3616
3617	3617
3618	3618
3619	3619
3620	3620
3621	3621	HB4687 - 99 - LRB103 36052 LNS 66139 b
3622	3622
3623	3623
3624	3624	HB4687- 100 -LRB103 36052 LNS 66139 b HB4687 - 100 - LRB103 36052 LNS 66139 b
3625	3625	HB4687 - 100 - LRB103 36052 LNS 66139 b
3626	3626	1 indexed renewable energy credits for each delivery
3627	3627	2 year shall be determined as the expected annual
3628	3628	3 contract expenditure for that year, equaling the
3629	3629	4 difference between (i) the sum across all relevant
3630	3630	5 contracts of the applicable strike price
3631	3631	6 multiplied by contract quantity and (ii) the sum
3632	3632	7 across all relevant contracts of the forward price
3633	3633	8 curve for the applicable load zone for that year
3634	3634	9 multiplied by contract quantity. The contracting
3635	3635	10 utility shall not assume an obligation in excess
3636	3636	11 of the estimated annual cost of the contracts for
3637	3637	12 indexed renewable energy credits. Forward curves
3638	3638	13 shall be revised on an annual basis as updated
3639	3639	14 forward price curves are released and filed with
3640	3640	15 the Commission in the proceeding approving the
3641	3641	16 Agency's most recent long-term renewable resources
3642	3642	17 procurement plan. If the expected contract spend
3643	3643	18 is higher or lower than the total quantity of
3644	3644	19 contracts multiplied by the forward price curve
3645	3645	20 value for that year, the forward price curve shall
3646	3646	21 be updated by the procurement administrator, in
3647	3647	22 consultation with the Agency, Commission staff,
3648	3648	23 and procurement monitors, using then-currently
3649	3649	24 available price forecast data and additional
3650	3650	25 budget dollars shall be obligated or reobligated
3651	3651	26 as appropriate.
3652	3652
3653	3653
3654	3654
3655	3655
3656	3656
3657	3657	HB4687 - 100 - LRB103 36052 LNS 66139 b
3658	3658
3659	3659
3660	3660	HB4687- 101 -LRB103 36052 LNS 66139 b HB4687 - 101 - LRB103 36052 LNS 66139 b
3661	3661	HB4687 - 101 - LRB103 36052 LNS 66139 b
3662	3662	1 (4) To ensure that indexed renewable energy
3663	3663	2 credit prices remain predictable and affordable,
3664	3664	3 the Agency may consider the institution of a price
3665	3665	4 collar on REC prices paid under indexed renewable
3666	3666	5 energy credit procurements establishing floor and
3667	3667	6 ceiling REC prices applicable to indexed REC
3668	3668	7 contract prices. Any price collars applicable to
3669	3669	8 indexed REC procurements shall be proposed by the
3670	3670	9 Agency through its long-term renewable resources
3671	3671	10 procurement plan.
3672	3672	11 (vi) All procurements under this subparagraph (G),
3673	3673	12 including the procurement of renewable energy credits
3674	3674	13 from hydropower facilities, shall comply with the
3675	3675	14 geographic requirements in subparagraph (I) of this
3676	3676	15 paragraph (1) and shall follow the procurement
3677	3677	16 processes and procedures described in this Section and
3678	3678	17 Section 16-111.5 of the Public Utilities Act to the
3679	3679	18 extent practicable, and these processes and procedures
3680	3680	19 may be expedited to accommodate the schedule
3681	3681	20 established by this subparagraph (G).
3682	3682	21 (vii) On and after the effective date of this
3683	3683	22 amendatory Act of the 103rd General Assembly, for all
3684	3684	23 procurements of renewable energy credits from
3685	3685	24 hydropower facilities, the Agency shall establish
3686	3686	25 contract terms designed to optimize existing
3687	3687	26 hydropower facilities through modernization or
3688	3688
3689	3689
3690	3690
3691	3691
3692	3692
3693	3693	HB4687 - 101 - LRB103 36052 LNS 66139 b
3694	3694
3695	3695
3696	3696	HB4687- 102 -LRB103 36052 LNS 66139 b HB4687 - 102 - LRB103 36052 LNS 66139 b
3697	3697	HB4687 - 102 - LRB103 36052 LNS 66139 b
3698	3698	1 retooling and establish new hydropower facilities at
3699	3699	2 existing dams. Procurements made under this item (vii)
3700	3700	3 shall prioritize projects located in designated
3701	3701	4 environmental justice communities, as defined in
3702	3702	5 subsection (b) of Section 1-56 of this Act, or in
3703	3703	6 projects located in units of local government with
3704	3704	7 median incomes that do not exceed 82% of the median
3705	3705	8 income of the State.
3706	3706	9 (H) The procurement of renewable energy resources for
3707	3707	10 a given delivery year shall be reduced as described in
3708	3708	11 this subparagraph (H) if an alternative retail electric
3709	3709	12 supplier meets the requirements described in this
3710	3710	13 subparagraph (H).
3711	3711	14 (i) Within 45 days after June 1, 2017 (the
3712	3712	15 effective date of Public Act 99-906), an alternative
3713	3713	16 retail electric supplier or its successor shall submit
3714	3714	17 an informational filing to the Illinois Commerce
3715	3715	18 Commission certifying that, as of December 31, 2015,
3716	3716	19 the alternative retail electric supplier owned one or
3717	3717	20 more electric generating facilities that generates
3718	3718	21 renewable energy resources as defined in Section 1-10
3719	3719	22 of this Act, provided that such facilities are not
3720	3720	23 powered by wind or photovoltaics, and the facilities
3721	3721	24 generate one renewable energy credit for each
3722	3722	25 megawatthour of energy produced from the facility.
3723	3723	26 The informational filing shall identify each
3724	3724
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729	HB4687 - 102 - LRB103 36052 LNS 66139 b
3730	3730
3731	3731
3732	3732	HB4687- 103 -LRB103 36052 LNS 66139 b HB4687 - 103 - LRB103 36052 LNS 66139 b
3733	3733	HB4687 - 103 - LRB103 36052 LNS 66139 b
3734	3734	1 facility that was eligible to satisfy the alternative
3735	3735	2 retail electric supplier's obligations under Section
3736	3736	3 16-115D of the Public Utilities Act as described in
3737	3737	4 this item (i).
3738	3738	5 (ii) For a given delivery year, the alternative
3739	3739	6 retail electric supplier may elect to supply its
3740	3740	7 retail customers with renewable energy credits from
3741	3741	8 the facility or facilities described in item (i) of
3742	3742	9 this subparagraph (H) that continue to be owned by the
3743	3743	10 alternative retail electric supplier.
3744	3744	11 (iii) The alternative retail electric supplier
3745	3745	12 shall notify the Agency and the applicable utility, no
3746	3746	13 later than February 28 of the year preceding the
3747	3747	14 applicable delivery year or 15 days after June 1, 2017
3748	3748	15 (the effective date of Public Act 99-906), whichever
3749	3749	16 is later, of its election under item (ii) of this
3750	3750	17 subparagraph (H) to supply renewable energy credits to
3751	3751	18 retail customers of the utility. Such election shall
3752	3752	19 identify the amount of renewable energy credits to be
3753	3753	20 supplied by the alternative retail electric supplier
3754	3754	21 to the utility's retail customers and the source of
3755	3755	22 the renewable energy credits identified in the
3756	3756	23 informational filing as described in item (i) of this
3757	3757	24 subparagraph (H), subject to the following
3758	3758	25 limitations:
3759	3759	26 For the delivery year beginning June 1, 2018,
3760	3760
3761	3761
3762	3762
3763	3763
3764	3764
3765	3765	HB4687 - 103 - LRB103 36052 LNS 66139 b
3766	3766
3767	3767
3768	3768	HB4687- 104 -LRB103 36052 LNS 66139 b HB4687 - 104 - LRB103 36052 LNS 66139 b
3769	3769	HB4687 - 104 - LRB103 36052 LNS 66139 b
3770	3770	1 the maximum amount of renewable energy credits to
3771	3771	2 be supplied by an alternative retail electric
3772	3772	3 supplier under this subparagraph (H) shall be 68%
3773	3773	4 multiplied by 25% multiplied by 14.5% multiplied
3774	3774	5 by the amount of metered electricity
3775	3775	6 (megawatt-hours) delivered by the alternative
3776	3776	7 retail electric supplier to Illinois retail
3777	3777	8 customers during the delivery year ending May 31,
3778	3778	9 2016.
3779	3779	10 For delivery years beginning June 1, 2019 and
3780	3780	11 each year thereafter, the maximum amount of
3781	3781	12 renewable energy credits to be supplied by an
3782	3782	13 alternative retail electric supplier under this
3783	3783	14 subparagraph (H) shall be 68% multiplied by 50%
3784	3784	15 multiplied by 16% multiplied by the amount of
3785	3785	16 metered electricity (megawatt-hours) delivered by
3786	3786	17 the alternative retail electric supplier to
3787	3787	18 Illinois retail customers during the delivery year
3788	3788	19 ending May 31, 2016, provided that the 16% value
3789	3789	20 shall increase by 1.5% each delivery year
3790	3790	21 thereafter to 25% by the delivery year beginning
3791	3791	22 June 1, 2025, and thereafter the 25% value shall
3792	3792	23 apply to each delivery year.
3793	3793	24 For each delivery year, the total amount of
3794	3794	25 renewable energy credits supplied by all alternative
3795	3795	26 retail electric suppliers under this subparagraph (H)
3796	3796
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801	HB4687 - 104 - LRB103 36052 LNS 66139 b
3802	3802
3803	3803
3804	3804	HB4687- 105 -LRB103 36052 LNS 66139 b HB4687 - 105 - LRB103 36052 LNS 66139 b
3805	3805	HB4687 - 105 - LRB103 36052 LNS 66139 b
3806	3806	1 shall not exceed 9% of the Illinois target renewable
3807	3807	2 energy credit quantity. The Illinois target renewable
3808	3808	3 energy credit quantity for the delivery year beginning
3809	3809	4 June 1, 2018 is 14.5% multiplied by the total amount of
3810	3810	5 metered electricity (megawatt-hours) delivered in the
3811	3811	6 delivery year immediately preceding that delivery
3812	3812	7 year, provided that the 14.5% shall increase by 1.5%
3813	3813	8 each delivery year thereafter to 25% by the delivery
3814	3814	9 year beginning June 1, 2025, and thereafter the 25%
3815	3815	10 value shall apply to each delivery year.
3816	3816	11 If the requirements set forth in items (i) through
3817	3817	12 (iii) of this subparagraph (H) are met, the charges
3818	3818	13 that would otherwise be applicable to the retail
3819	3819	14 customers of the alternative retail electric supplier
3820	3820	15 under paragraph (6) of this subsection (c) for the
3821	3821	16 applicable delivery year shall be reduced by the ratio
3822	3822	17 of the quantity of renewable energy credits supplied
3823	3823	18 by the alternative retail electric supplier compared
3824	3824	19 to that supplier's target renewable energy credit
3825	3825	20 quantity. The supplier's target renewable energy
3826	3826	21 credit quantity for the delivery year beginning June
3827	3827	22 1, 2018 is 14.5% multiplied by the total amount of
3828	3828	23 metered electricity (megawatt-hours) delivered by the
3829	3829	24 alternative retail supplier in that delivery year,
3830	3830	25 provided that the 14.5% shall increase by 1.5% each
3831	3831	26 delivery year thereafter to 25% by the delivery year
3832	3832
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837	HB4687 - 105 - LRB103 36052 LNS 66139 b
3838	3838
3839	3839
3840	3840	HB4687- 106 -LRB103 36052 LNS 66139 b HB4687 - 106 - LRB103 36052 LNS 66139 b
3841	3841	HB4687 - 106 - LRB103 36052 LNS 66139 b
3842	3842	1 beginning June 1, 2025, and thereafter the 25% value
3843	3843	2 shall apply to each delivery year.
3844	3844	3 On or before April 1 of each year, the Agency shall
3845	3845	4 annually publish a report on its website that
3846	3846	5 identifies the aggregate amount of renewable energy
3847	3847	6 credits supplied by alternative retail electric
3848	3848	7 suppliers under this subparagraph (H).
3849	3849	8 (I) The Agency shall design its long-term renewable
3850	3850	9 energy procurement plan to maximize the State's interest
3851	3851	10 in the health, safety, and welfare of its residents,
3852	3852	11 including but not limited to minimizing sulfur dioxide,
3853	3853	12 nitrogen oxide, particulate matter and other pollution
3854	3854	13 that adversely affects public health in this State,
3855	3855	14 increasing fuel and resource diversity in this State,
3856	3856	15 enhancing the reliability and resiliency of the
3857	3857	16 electricity distribution system in this State, meeting
3858	3858	17 goals to limit carbon dioxide emissions under federal or
3859	3859	18 State law, and contributing to a cleaner and healthier
3860	3860	19 environment for the citizens of this State. In order to
3861	3861	20 further these legislative purposes, renewable energy
3862	3862	21 credits shall be eligible to be counted toward the
3863	3863	22 renewable energy requirements of this subsection (c) if
3864	3864	23 they are generated from facilities located in this State.
3865	3865	24 The Agency may qualify renewable energy credits from
3866	3866	25 facilities located in states adjacent to Illinois or
3867	3867	26 renewable energy credits associated with the electricity
3868	3868
3869	3869
3870	3870
3871	3871
3872	3872
3873	3873	HB4687 - 106 - LRB103 36052 LNS 66139 b
3874	3874
3875	3875
3876	3876	HB4687- 107 -LRB103 36052 LNS 66139 b HB4687 - 107 - LRB103 36052 LNS 66139 b
3877	3877	HB4687 - 107 - LRB103 36052 LNS 66139 b
3878	3878	1 generated by a utility-scale wind energy facility or
3879	3879	2 utility-scale photovoltaic facility and transmitted by a
3880	3880	3 qualifying direct current project described in subsection
3881	3881	4 (b-5) of Section 8-406 of the Public Utilities Act to a
3882	3882	5 delivery point on the electric transmission grid located
3883	3883	6 in this State or a state adjacent to Illinois, if the
3884	3884	7 generator demonstrates and the Agency determines that the
3885	3885	8 operation of such facility or facilities will help promote
3886	3886	9 the State's interest in the health, safety, and welfare of
3887	3887	10 its residents based on the public interest criteria
3888	3888	11 described above. For the purposes of this Section,
3889	3889	12 renewable resources that are delivered via a high voltage
3890	3890	13 direct current converter station located in Illinois shall
3891	3891	14 be deemed generated in Illinois at the time and location
3892	3892	15 the energy is converted to alternating current by the high
3893	3893	16 voltage direct current converter station if the high
3894	3894	17 voltage direct current transmission line: (i) after the
3895	3895	18 effective date of this amendatory Act of the 102nd General
3896	3896	19 Assembly, was constructed with a project labor agreement;
3897	3897	20 (ii) is capable of transmitting electricity at 525kv;
3898	3898	21 (iii) has an Illinois converter station located and
3899	3899	22 interconnected in the region of the PJM Interconnection,
3900	3900	23 LLC; (iv) does not operate as a public utility; and (v) if
3901	3901	24 the high voltage direct current transmission line was
3902	3902	25 energized after June 1, 2023. To ensure that the public
3903	3903	26 interest criteria are applied to the procurement and given
3904	3904
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909	HB4687 - 107 - LRB103 36052 LNS 66139 b
3910	3910
3911	3911
3912	3912	HB4687- 108 -LRB103 36052 LNS 66139 b HB4687 - 108 - LRB103 36052 LNS 66139 b
3913	3913	HB4687 - 108 - LRB103 36052 LNS 66139 b
3914	3914	1 full effect, the Agency's long-term procurement plan shall
3915	3915	2 describe in detail how each public interest factor shall
3916	3916	3 be considered and weighted for facilities located in
3917	3917	4 states adjacent to Illinois.
3918	3918	5 (J) In order to promote the competitive development of
3919	3919	6 renewable energy resources in furtherance of the State's
3920	3920	7 interest in the health, safety, and welfare of its
3921	3921	8 residents, renewable energy credits shall not be eligible
3922	3922	9 to be counted toward the renewable energy requirements of
3923	3923	10 this subsection (c) if they are sourced from a generating
3924	3924	11 unit whose costs were being recovered through rates
3925	3925	12 regulated by this State or any other state or states on or
3926	3926	13 after January 1, 2017. Each contract executed to purchase
3927	3927	14 renewable energy credits under this subsection (c) shall
3928	3928	15 provide for the contract's termination if the costs of the
3929	3929	16 generating unit supplying the renewable energy credits
3930	3930	17 subsequently begin to be recovered through rates regulated
3931	3931	18 by this State or any other state or states; and each
3932	3932	19 contract shall further provide that, in that event, the
3933	3933	20 supplier of the credits must return 110% of all payments
3934	3934	21 received under the contract. Amounts returned under the
3935	3935	22 requirements of this subparagraph (J) shall be retained by
3936	3936	23 the utility and all of these amounts shall be used for the
3937	3937	24 procurement of additional renewable energy credits from
3938	3938	25 new wind or new photovoltaic resources as defined in this
3939	3939	26 subsection (c). The long-term plan shall provide that
3940	3940
3941	3941
3942	3942
3943	3943
3944	3944
3945	3945	HB4687 - 108 - LRB103 36052 LNS 66139 b
3946	3946
3947	3947
3948	3948	HB4687- 109 -LRB103 36052 LNS 66139 b HB4687 - 109 - LRB103 36052 LNS 66139 b
3949	3949	HB4687 - 109 - LRB103 36052 LNS 66139 b
3950	3950	1 these renewable energy credits shall be procured in the
3951	3951	2 next procurement event.
3952	3952	3 Notwithstanding the limitations of this subparagraph
3953	3953	4 (J), renewable energy credits sourced from generating
3954	3954	5 units that are constructed, purchased, owned, or leased by
3955	3955	6 an electric utility as part of an approved project,
3956	3956	7 program, or pilot under Section 1-56 of this Act shall be
3957	3957	8 eligible to be counted toward the renewable energy
3958	3958	9 requirements of this subsection (c), regardless of how the
3959	3959	10 costs of these units are recovered. As long as a
3960	3960	11 generating unit or an identifiable portion of a generating
3961	3961	12 unit has not had and does not have its costs recovered
3962	3962	13 through rates regulated by this State or any other state,
3963	3963	14 HVDC renewable energy credits associated with that
3964	3964	15 generating unit or identifiable portion thereof shall be
3965	3965	16 eligible to be counted toward the renewable energy
3966	3966	17 requirements of this subsection (c).
3967	3967	18 (K) The long-term renewable resources procurement plan
3968	3968	19 developed by the Agency in accordance with subparagraph
3969	3969	20 (A) of this paragraph (1) shall include an Adjustable
3970	3970	21 Block program for the procurement of renewable energy
3971	3971	22 credits from new photovoltaic projects that are
3972	3972	23 distributed renewable energy generation devices or new
3973	3973	24 photovoltaic community renewable generation projects. The
3974	3974	25 Adjustable Block program shall be generally designed to
3975	3975	26 provide for the steady, predictable, and sustainable
3976	3976
3977	3977
3978	3978
3979	3979
3980	3980
3981	3981	HB4687 - 109 - LRB103 36052 LNS 66139 b
3982	3982
3983	3983
3984	3984	HB4687- 110 -LRB103 36052 LNS 66139 b HB4687 - 110 - LRB103 36052 LNS 66139 b
3985	3985	HB4687 - 110 - LRB103 36052 LNS 66139 b
3986	3986	1 growth of new solar photovoltaic development in Illinois.
3987	3987	2 To this end, the Adjustable Block program shall provide a
3988	3988	3 transparent annual schedule of prices and quantities to
3989	3989	4 enable the photovoltaic market to scale up and for
3990	3990	5 renewable energy credit prices to adjust at a predictable
3991	3991	6 rate over time. The prices set by the Adjustable Block
3992	3992	7 program can be reflected as a set value or as the product
3993	3993	8 of a formula.
3994	3994	9 The Adjustable Block program shall include for each
3995	3995	10 category of eligible projects for each delivery year: a
3996	3996	11 single block of nameplate capacity, a price for renewable
3997	3997	12 energy credits within that block, and the terms and
3998	3998	13 conditions for securing a spot on a waitlist once the
3999	3999	14 block is fully committed or reserved. Except as outlined
4000	4000	15 below, the waitlist of projects in a given year will carry
4001	4001	16 over to apply to the subsequent year when another block is
4002	4002	17 opened. Only projects energized on or after June 1, 2017
4003	4003	18 shall be eligible for the Adjustable Block program. For
4004	4004	19 each category for each delivery year the Agency shall
4005	4005	20 determine the amount of generation capacity in each block,
4006	4006	21 and the purchase price for each block, provided that the
4007	4007	22 purchase price provided and the total amount of generation
4008	4008	23 in all blocks for all categories shall be sufficient to
4009	4009	24 meet the goals in this subsection (c). The Agency shall
4010	4010	25 strive to issue a single block sized to provide for
4011	4011	26 stability and market growth. The Agency shall establish
4012	4012
4013	4013
4014	4014
4015	4015
4016	4016
4017	4017	HB4687 - 110 - LRB103 36052 LNS 66139 b
4018	4018
4019	4019
4020	4020	HB4687- 111 -LRB103 36052 LNS 66139 b HB4687 - 111 - LRB103 36052 LNS 66139 b
4021	4021	HB4687 - 111 - LRB103 36052 LNS 66139 b
4022	4022	1 program eligibility requirements that ensure that projects
4023	4023	2 that enter the program are sufficiently mature to indicate
4024	4024	3 a demonstrable path to completion. The Agency may
4025	4025	4 periodically review its prior decisions establishing the
4026	4026	5 amount of generation capacity in each block, and the
4027	4027	6 purchase price for each block, and may propose, on an
4028	4028	7 expedited basis, changes to these previously set values,
4029	4029	8 including but not limited to redistributing these amounts
4030	4030	9 and the available funds as necessary and appropriate,
4031	4031	10 subject to Commission approval as part of the periodic
4032	4032	11 plan revision process described in Section 16-111.5 of the
4033	4033	12 Public Utilities Act. The Agency may define different
4034	4034	13 block sizes, purchase prices, or other distinct terms and
4035	4035	14 conditions for projects located in different utility
4036	4036	15 service territories if the Agency deems it necessary to
4037	4037	16 meet the goals in this subsection (c).
4038	4038	17 The Adjustable Block program shall include the
4039	4039	18 following categories in at least the following amounts:
4040	4040	19 (i) At least 20% from distributed renewable energy
4041	4041	20 generation devices with a nameplate capacity of no
4042	4042	21 more than 25 kilowatts.
4043	4043	22 (ii) At least 20% from distributed renewable
4044	4044	23 energy generation devices with a nameplate capacity of
4045	4045	24 more than 25 kilowatts and no more than 5,000
4046	4046	25 kilowatts. The Agency may create sub-categories within
4047	4047	26 this category to account for the differences between
4048	4048
4049	4049
4050	4050
4051	4051
4052	4052
4053	4053	HB4687 - 111 - LRB103 36052 LNS 66139 b
4054	4054
4055	4055
4056	4056	HB4687- 112 -LRB103 36052 LNS 66139 b HB4687 - 112 - LRB103 36052 LNS 66139 b
4057	4057	HB4687 - 112 - LRB103 36052 LNS 66139 b
4058	4058	1 projects for small commercial customers, large
4059	4059	2 commercial customers, and public or non-profit
4060	4060	3 customers.
4061	4061	4 (iii) At least 30% from photovoltaic community
4062	4062	5 renewable generation projects. Capacity for this
4063	4063	6 category for the first 2 delivery years after the
4064	4064	7 effective date of this amendatory Act of the 102nd
4065	4065	8 General Assembly shall be allocated to waitlist
4066	4066	9 projects as provided in paragraph (3) of item (iv) of
4067	4067	10 subparagraph (G). Starting in the third delivery year
4068	4068	11 after the effective date of this amendatory Act of the
4069	4069	12 102nd General Assembly or earlier if the Agency
4070	4070	13 determines there is additional capacity needed for to
4071	4071	14 meet previous delivery year requirements, the
4072	4072	15 following shall apply:
4073	4073	16 (1) the Agency shall select projects on a
4074	4074	17 first-come, first-serve basis, however the Agency
4075	4075	18 may suggest additional methods to prioritize
4076	4076	19 projects that are submitted at the same time;
4077	4077	20 (2) projects shall have subscriptions of 25 kW
4078	4078	21 or less for at least 50% of the facility's
4079	4079	22 nameplate capacity and the Agency shall price the
4080	4080	23 renewable energy credits with that as a factor;
4081	4081	24 (3) projects shall not be colocated with one
4082	4082	25 or more other community renewable generation
4083	4083	26 projects, as defined in the Agency's first revised
4084	4084
4085	4085
4086	4086
4087	4087
4088	4088
4089	4089	HB4687 - 112 - LRB103 36052 LNS 66139 b
4090	4090
4091	4091
4092	4092	HB4687- 113 -LRB103 36052 LNS 66139 b HB4687 - 113 - LRB103 36052 LNS 66139 b
4093	4093	HB4687 - 113 - LRB103 36052 LNS 66139 b
4094	4094	1 long-term renewable resources procurement plan
4095	4095	2 approved by the Commission on February 18, 2020,
4096	4096	3 such that the aggregate nameplate capacity exceeds
4097	4097	4 5,000 kilowatts; and
4098	4098	5 (4) projects greater than 2 MW may not apply
4099	4099	6 until after the approval of the Agency's revised
4100	4100	7 Long-Term Renewable Resources Procurement Plan
4101	4101	8 after the effective date of this amendatory Act of
4102	4102	9 the 102nd General Assembly.
4103	4103	10 (iv) At least 15% from distributed renewable
4104	4104	11 generation devices or photovoltaic community renewable
4105	4105	12 generation projects installed on public school land.
4106	4106	13 The Agency may create subcategories within this
4107	4107	14 category to account for the differences between
4108	4108	15 project size or location. Projects located within
4109	4109	16 environmental justice communities or within
4110	4110	17 Organizational Units that fall within Tier 1 or Tier 2
4111	4111	18 shall be given priority. Each of the Agency's periodic
4112	4112	19 updates to its long-term renewable resources
4113	4113	20 procurement plan to incorporate the procurement
4114	4114	21 described in this subparagraph (iv) shall also include
4115	4115	22 the proposed quantities or blocks, pricing, and
4116	4116	23 contract terms applicable to the procurement as
4117	4117	24 indicated herein. In each such update and procurement,
4118	4118	25 the Agency shall set the renewable energy credit price
4119	4119	26 and establish payment terms for the renewable energy
4120	4120
4121	4121
4122	4122
4123	4123
4124	4124
4125	4125	HB4687 - 113 - LRB103 36052 LNS 66139 b
4126	4126
4127	4127
4128	4128	HB4687- 114 -LRB103 36052 LNS 66139 b HB4687 - 114 - LRB103 36052 LNS 66139 b
4129	4129	HB4687 - 114 - LRB103 36052 LNS 66139 b
4130	4130	1 credits procured pursuant to this subparagraph (iv)
4131	4131	2 that make it feasible and affordable for public
4132	4132	3 schools to install photovoltaic distributed renewable
4133	4133	4 energy devices on their premises, including, but not
4134	4134	5 limited to, those public schools subject to the
4135	4135	6 prioritization provisions of this subparagraph. For
4136	4136	7 the purposes of this item (iv):
4137	4137	8 "Environmental Justice Community" shall have the
4138	4138	9 same meaning set forth in the Agency's long-term
4139	4139	10 renewable resources procurement plan;
4140	4140	11 "Organization Unit", "Tier 1" and "Tier 2" shall
4141	4141	12 have the meanings set for in Section 18-8.15 of the
4142	4142	13 School Code;
4143	4143	14 "Public schools" shall have the meaning set forth
4144	4144	15 in Section 1-3 of the School Code and includes public
4145	4145	16 institutions of higher education, as defined in the
4146	4146	17 Board of Higher Education Act.
4147	4147	18 (v) At least 5% from community-driven community
4148	4148	19 solar projects intended to provide more direct and
4149	4149	20 tangible connection and benefits to the communities
4150	4150	21 which they serve or in which they operate and,
4151	4151	22 additionally, to increase the variety of community
4152	4152	23 solar locations, models, and options in Illinois. As
4153	4153	24 part of its long-term renewable resources procurement
4154	4154	25 plan, the Agency shall develop selection criteria for
4155	4155	26 projects participating in this category. Nothing in
4156	4156
4157	4157
4158	4158
4159	4159
4160	4160
4161	4161	HB4687 - 114 - LRB103 36052 LNS 66139 b
4162	4162
4163	4163
4164	4164	HB4687- 115 -LRB103 36052 LNS 66139 b HB4687 - 115 - LRB103 36052 LNS 66139 b
4165	4165	HB4687 - 115 - LRB103 36052 LNS 66139 b
4166	4166	1 this Section shall preclude the Agency from creating a
4167	4167	2 selection process that maximizes community ownership
4168	4168	3 and community benefits in selecting projects to
4169	4169	4 receive renewable energy credits. Selection criteria
4170	4170	5 shall include:
4171	4171	6 (1) community ownership or community
4172	4172	7 wealth-building;
4173	4173	8 (2) additional direct and indirect community
4174	4174	9 benefit, beyond project participation as a
4175	4175	10 subscriber, including, but not limited to,
4176	4176	11 economic, environmental, social, cultural, and
4177	4177	12 physical benefits;
4178	4178	13 (3) meaningful involvement in project
4179	4179	14 organization and development by community members
4180	4180	15 or nonprofit organizations or public entities
4181	4181	16 located in or serving the community;
4182	4182	17 (4) engagement in project operations and
4183	4183	18 management by nonprofit organizations, public
4184	4184	19 entities, or community members; and
4185	4185	20 (5) whether a project is developed in response
4186	4186	21 to a site-specific RFP developed by community
4187	4187	22 members or a nonprofit organization or public
4188	4188	23 entity located in or serving the community.
4189	4189	24 Selection criteria may also prioritize projects
4190	4190	25 that:
4191	4191	26 (1) are developed in collaboration with or to
4192	4192
4193	4193
4194	4194
4195	4195
4196	4196
4197	4197	HB4687 - 115 - LRB103 36052 LNS 66139 b
4198	4198
4199	4199
4200	4200	HB4687- 116 -LRB103 36052 LNS 66139 b HB4687 - 116 - LRB103 36052 LNS 66139 b
4201	4201	HB4687 - 116 - LRB103 36052 LNS 66139 b
4202	4202	1 provide complementary opportunities for the Clean
4203	4203	2 Jobs Workforce Network Program, the Illinois
4204	4204	3 Climate Works Preapprenticeship Program, the
4205	4205	4 Returning Residents Clean Jobs Training Program,
4206	4206	5 the Clean Energy Contractor Incubator Program, or
4207	4207	6 the Clean Energy Primes Contractor Accelerator
4208	4208	7 Program;
4209	4209	8 (2) increase the diversity of locations of
4210	4210	9 community solar projects in Illinois, including by
4211	4211	10 locating in urban areas and population centers;
4212	4212	11 (3) are located in Equity Investment Eligible
4213	4213	12 Communities;
4214	4214	13 (4) are not greenfield projects;
4215	4215	14 (5) serve only local subscribers;
4216	4216	15 (6) have a nameplate capacity that does not
4217	4217	16 exceed 500 kW;
4218	4218	17 (7) are developed by an equity eligible
4219	4219	18 contractor; or
4220	4220	19 (8) otherwise meaningfully advance the goals
4221	4221	20 of providing more direct and tangible connection
4222	4222	21 and benefits to the communities which they serve
4223	4223	22 or in which they operate and increasing the
4224	4224	23 variety of community solar locations, models, and
4225	4225	24 options in Illinois.
4226	4226	25 For the purposes of this item (v):
4227	4227	26 "Community" means a social unit in which people
4228	4228
4229	4229
4230	4230
4231	4231
4232	4232
4233	4233	HB4687 - 116 - LRB103 36052 LNS 66139 b
4234	4234
4235	4235
4236	4236	HB4687- 117 -LRB103 36052 LNS 66139 b HB4687 - 117 - LRB103 36052 LNS 66139 b
4237	4237	HB4687 - 117 - LRB103 36052 LNS 66139 b
4238	4238	1 come together regularly to effect change; a social
4239	4239	2 unit in which participants are marked by a cooperative
4240	4240	3 spirit, a common purpose, or shared interests or
4241	4241	4 characteristics; or a space understood by its
4242	4242	5 residents to be delineated through geographic
4243	4243	6 boundaries or landmarks.
4244	4244	7 "Community benefit" means a range of services and
4245	4245	8 activities that provide affirmative, economic,
4246	4246	9 environmental, social, cultural, or physical value to
4247	4247	10 a community; or a mechanism that enables economic
4248	4248	11 development, high-quality employment, and education
4249	4249	12 opportunities for local workers and residents, or
4250	4250	13 formal monitoring and oversight structures such that
4251	4251	14 community members may ensure that those services and
4252	4252	15 activities respond to local knowledge and needs.
4253	4253	16 "Community ownership" means an arrangement in
4254	4254	17 which an electric generating facility is, or over time
4255	4255	18 will be, in significant part, owned collectively by
4256	4256	19 members of the community to which an electric
4257	4257	20 generating facility provides benefits; members of that
4258	4258	21 community participate in decisions regarding the
4259	4259	22 governance, operation, maintenance, and upgrades of
4260	4260	23 and to that facility; and members of that community
4261	4261	24 benefit from regular use of that facility.
4262	4262	25 Terms and guidance within these criteria that are
4263	4263	26 not defined in this item (v) shall be defined by the
4264	4264
4265	4265
4266	4266
4267	4267
4268	4268
4269	4269	HB4687 - 117 - LRB103 36052 LNS 66139 b
4270	4270
4271	4271
4272	4272	HB4687- 118 -LRB103 36052 LNS 66139 b HB4687 - 118 - LRB103 36052 LNS 66139 b
4273	4273	HB4687 - 118 - LRB103 36052 LNS 66139 b
4274	4274	1 Agency, with stakeholder input, during the development
4275	4275	2 of the Agency's long-term renewable resources
4276	4276	3 procurement plan. The Agency shall develop regular
4277	4277	4 opportunities for projects to submit applications for
4278	4278	5 projects under this category, and develop selection
4279	4279	6 criteria that gives preference to projects that better
4280	4280	7 meet individual criteria as well as projects that
4281	4281	8 address a higher number of criteria.
4282	4282	9 (vi) At least 10% from distributed renewable
4283	4283	10 energy generation devices, which includes distributed
4284	4284	11 renewable energy devices with a nameplate capacity
4285	4285	12 under 5,000 kilowatts or photovoltaic community
4286	4286	13 renewable generation projects, from applicants that
4287	4287	14 are equity eligible contractors. The Agency may create
4288	4288	15 subcategories within this category to account for the
4289	4289	16 differences between project size and type. The Agency
4290	4290	17 shall propose to increase the percentage in this item
4291	4291	18 (vi) over time to 40% based on factors, including, but
4292	4292	19 not limited to, the number of equity eligible
4293	4293	20 contractors and capacity used in this item (vi) in
4294	4294	21 previous delivery years.
4295	4295	22 The Agency shall propose a payment structure for
4296	4296	23 contracts executed pursuant to this paragraph under
4297	4297	24 which, upon a demonstration of qualification or need,
4298	4298	25 applicant firms are advanced capital disbursed after
4299	4299	26 contract execution but before the contracted project's
4300	4300
4301	4301
4302	4302
4303	4303
4304	4304
4305	4305	HB4687 - 118 - LRB103 36052 LNS 66139 b
4306	4306
4307	4307
4308	4308	HB4687- 119 -LRB103 36052 LNS 66139 b HB4687 - 119 - LRB103 36052 LNS 66139 b
4309	4309	HB4687 - 119 - LRB103 36052 LNS 66139 b
4310	4310	1 energization. The amount or percentage of capital
4311	4311	2 advanced prior to project energization shall be
4312	4312	3 sufficient to both cover any increase in development
4313	4313	4 costs resulting from prevailing wage requirements or
4314	4314	5 project-labor agreements, and designed to overcome
4315	4315	6 barriers in access to capital faced by equity eligible
4316	4316	7 contractors. The amount or percentage of advanced
4317	4317	8 capital may vary by subcategory within this category
4318	4318	9 and by an applicant's demonstration of need, with such
4319	4319	10 levels to be established through the Long-Term
4320	4320	11 Renewable Resources Procurement Plan authorized under
4321	4321	12 subparagraph (A) of paragraph (1) of subsection (c) of
4322	4322	13 this Section.
4323	4323	14 Contracts developed featuring capital advanced
4324	4324	15 prior to a project's energization shall feature
4325	4325	16 provisions to ensure both the successful development
4326	4326	17 of applicant projects and the delivery of the
4327	4327	18 renewable energy credits for the full term of the
4328	4328	19 contract, including ongoing collateral requirements
4329	4329	20 and other provisions deemed necessary by the Agency,
4330	4330	21 and may include energization timelines longer than for
4331	4331	22 comparable project types. The percentage or amount of
4332	4332	23 capital advanced prior to project energization shall
4333	4333	24 not operate to increase the overall contract value,
4334	4334	25 however contracts executed under this subparagraph may
4335	4335	26 feature renewable energy credit prices higher than
4336	4336
4337	4337
4338	4338
4339	4339
4340	4340
4341	4341	HB4687 - 119 - LRB103 36052 LNS 66139 b
4342	4342
4343	4343
4344	4344	HB4687- 120 -LRB103 36052 LNS 66139 b HB4687 - 120 - LRB103 36052 LNS 66139 b
4345	4345	HB4687 - 120 - LRB103 36052 LNS 66139 b
4346	4346	1 those offered to similar projects participating in
4347	4347	2 other categories. Capital advanced prior to
4348	4348	3 energization shall serve to reduce the ratable
4349	4349	4 payments made after energization under items (ii) and
4350	4350	5 (iii) of subparagraph (L) or payments made for each
4351	4351	6 renewable energy credit delivery under item (iv) of
4352	4352	7 subparagraph (L).
4353	4353	8 (vii) The remaining capacity shall be allocated by
4354	4354	9 the Agency in order to respond to market demand. The
4355	4355	10 Agency shall allocate any discretionary capacity prior
4356	4356	11 to the beginning of each delivery year.
4357	4357	12 To the extent there is uncontracted capacity from any
4358	4358	13 block in any of categories (i) through (vi) at the end of a
4359	4359	14 delivery year, the Agency shall redistribute that capacity
4360	4360	15 to one or more other categories giving priority to
4361	4361	16 categories with projects on a waitlist. The redistributed
4362	4362	17 capacity shall be added to the annual capacity in the
4363	4363	18 subsequent delivery year, and the price for renewable
4364	4364	19 energy credits shall be the price for the new delivery
4365	4365	20 year. Redistributed capacity shall not be considered
4366	4366	21 redistributed when determining whether the goals in this
4367	4367	22 subsection (K) have been met.
4368	4368	23 Notwithstanding anything to the contrary, as the
4369	4369	24 Agency increases the capacity in item (vi) to 40% over
4370	4370	25 time, the Agency may reduce the capacity of items (i)
4371	4371	26 through (v) proportionate to the capacity of the
4372	4372
4373	4373
4374	4374
4375	4375
4376	4376
4377	4377	HB4687 - 120 - LRB103 36052 LNS 66139 b
4378	4378
4379	4379
4380	4380	HB4687- 121 -LRB103 36052 LNS 66139 b HB4687 - 121 - LRB103 36052 LNS 66139 b
4381	4381	HB4687 - 121 - LRB103 36052 LNS 66139 b
4382	4382	1 categories of projects in item (vi), to achieve a balance
4383	4383	2 of project types.
4384	4384	3 The Adjustable Block program shall be designed to
4385	4385	4 ensure that renewable energy credits are procured from
4386	4386	5 projects in diverse locations and are not concentrated in
4387	4387	6 a few regional areas.
4388	4388	7 (L) Notwithstanding provisions for advancing capital
4389	4389	8 prior to project energization found in item (vi) of
4390	4390	9 subparagraph (K), the procurement of photovoltaic
4391	4391	10 renewable energy credits under items (i) through (vi) of
4392	4392	11 subparagraph (K) of this paragraph (1) shall otherwise be
4393	4393	12 subject to the following contract and payment terms:
4394	4394	13 (i) (Blank).
4395	4395	14 (ii) For those renewable energy credits that
4396	4396	15 qualify and are procured under item (i) of
4397	4397	16 subparagraph (K) of this paragraph (1), and any
4398	4398	17 similar category projects that are procured under item
4399	4399	18 (vi) of subparagraph (K) of this paragraph (1) that
4400	4400	19 qualify and are procured under item (vi), the contract
4401	4401	20 length shall be 15 years. The renewable energy credit
4402	4402	21 delivery contract value shall be paid in full, based
4403	4403	22 on the estimated generation during the first 15 years
4404	4404	23 of operation, by the contracting utilities at the time
4405	4405	24 that the facility producing the renewable energy
4406	4406	25 credits is interconnected at the distribution system
4407	4407	26 level of the utility and verified as energized and
4408	4408
4409	4409
4410	4410
4411	4411
4412	4412
4413	4413	HB4687 - 121 - LRB103 36052 LNS 66139 b
4414	4414
4415	4415
4416	4416	HB4687- 122 -LRB103 36052 LNS 66139 b HB4687 - 122 - LRB103 36052 LNS 66139 b
4417	4417	HB4687 - 122 - LRB103 36052 LNS 66139 b
4418	4418	1 compliant by the Program Administrator. The electric
4419	4419	2 utility shall receive and retire all renewable energy
4420	4420	3 credits generated by the project for the first 15
4421	4421	4 years of operation. Renewable energy credits generated
4422	4422	5 by the project thereafter shall not be transferred
4423	4423	6 under the renewable energy credit delivery contract
4424	4424	7 with the counterparty electric utility.
4425	4425	8 (iii) For those renewable energy credits that
4426	4426	9 qualify and are procured under item (ii) and (v) of
4427	4427	10 subparagraph (K) of this paragraph (1) and any like
4428	4428	11 projects similar category that qualify and are
4429	4429	12 procured under item (vi), the contract length shall be
4430	4430	13 15 years. 15% of the renewable energy credit delivery
4431	4431	14 contract value, based on the estimated generation
4432	4432	15 during the first 15 years of operation, shall be paid
4433	4433	16 by the contracting utilities at the time that the
4434	4434	17 facility producing the renewable energy credits is
4435	4435	18 interconnected at the distribution system level of the
4436	4436	19 utility and verified as energized and compliant by the
4437	4437	20 Program Administrator. The remaining portion shall be
4438	4438	21 paid ratably over the subsequent 6-year period. The
4439	4439	22 electric utility shall receive and retire all
4440	4440	23 renewable energy credits generated by the project for
4441	4441	24 the first 15 years of operation. Renewable energy
4442	4442	25 credits generated by the project thereafter shall not
4443	4443	26 be transferred under the renewable energy credit
4444	4444
4445	4445
4446	4446
4447	4447
4448	4448
4449	4449	HB4687 - 122 - LRB103 36052 LNS 66139 b
4450	4450
4451	4451
4452	4452	HB4687- 123 -LRB103 36052 LNS 66139 b HB4687 - 123 - LRB103 36052 LNS 66139 b
4453	4453	HB4687 - 123 - LRB103 36052 LNS 66139 b
4454	4454	1 delivery contract with the counterparty electric
4455	4455	2 utility.
4456	4456	3 (iv) For those renewable energy credits that
4457	4457	4 qualify and are procured under items (iii) and (iv) of
4458	4458	5 subparagraph (K) of this paragraph (1), and any like
4459	4459	6 projects that qualify and are procured under item
4460	4460	7 (vi), the renewable energy credit delivery contract
4461	4461	8 length shall be 20 years and shall be paid over the
4462	4462	9 delivery term, not to exceed during each delivery year
4463	4463	10 the contract price multiplied by the estimated annual
4464	4464	11 renewable energy credit generation amount. If
4465	4465	12 generation of renewable energy credits during a
4466	4466	13 delivery year exceeds the estimated annual generation
4467	4467	14 amount, the excess renewable energy credits shall be
4468	4468	15 carried forward to future delivery years and shall not
4469	4469	16 expire during the delivery term. If generation of
4470	4470	17 renewable energy credits during a delivery year,
4471	4471	18 including carried forward excess renewable energy
4472	4472	19 credits, if any, is less than the estimated annual
4473	4473	20 generation amount, payments during such delivery year
4474	4474	21 will not exceed the quantity generated plus the
4475	4475	22 quantity carried forward multiplied by the contract
4476	4476	23 price. The electric utility shall receive all
4477	4477	24 renewable energy credits generated by the project
4478	4478	25 during the first 20 years of operation and retire all
4479	4479	26 renewable energy credits paid for under this item (iv)
4480	4480
4481	4481
4482	4482
4483	4483
4484	4484
4485	4485	HB4687 - 123 - LRB103 36052 LNS 66139 b
4486	4486
4487	4487
4488	4488	HB4687- 124 -LRB103 36052 LNS 66139 b HB4687 - 124 - LRB103 36052 LNS 66139 b
4489	4489	HB4687 - 124 - LRB103 36052 LNS 66139 b
4490	4490	1 and return at the end of the delivery term all
4491	4491	2 renewable energy credits that were not paid for.
4492	4492	3 Renewable energy credits generated by the project
4493	4493	4 thereafter shall not be transferred under the
4494	4494	5 renewable energy credit delivery contract with the
4495	4495	6 counterparty electric utility. Notwithstanding the
4496	4496	7 preceding, for those projects participating under item
4497	4497	8 (iii) of subparagraph (K), the contract price for a
4498	4498	9 delivery year shall be based on subscription levels as
4499	4499	10 measured on the higher of the first business day of the
4500	4500	11 delivery year or the first business day 6 months after
4501	4501	12 the first business day of the delivery year.
4502	4502	13 Subscription of 90% of nameplate capacity or greater
4503	4503	14 shall be deemed to be fully subscribed for the
4504	4504	15 purposes of this item (iv). For projects receiving a
4505	4505	16 20-year delivery contract, REC prices shall be
4506	4506	17 adjusted downward for consistency with the incentive
4507	4507	18 levels previously determined to be necessary to
4508	4508	19 support projects under 15-year delivery contracts,
4509	4509	20 taking into consideration any additional new
4510	4510	21 requirements placed on the projects, including, but
4511	4511	22 not limited to, labor standards.
4512	4512	23 (v) Each contract shall include provisions to
4513	4513	24 ensure the delivery of the estimated quantity of
4514	4514	25 renewable energy credits and ongoing collateral
4515	4515	26 requirements and other provisions deemed appropriate
4516	4516
4517	4517
4518	4518
4519	4519
4520	4520
4521	4521	HB4687 - 124 - LRB103 36052 LNS 66139 b
4522	4522
4523	4523
4524	4524	HB4687- 125 -LRB103 36052 LNS 66139 b HB4687 - 125 - LRB103 36052 LNS 66139 b
4525	4525	HB4687 - 125 - LRB103 36052 LNS 66139 b
4526	4526	1 by the Agency.
4527	4527	2 (vi) The utility shall be the counterparty to the
4528	4528	3 contracts executed under this subparagraph (L) that
4529	4529	4 are approved by the Commission under the process
4530	4530	5 described in Section 16-111.5 of the Public Utilities
4531	4531	6 Act. No contract shall be executed for an amount that
4532	4532	7 is less than one renewable energy credit per year.
4533	4533	8 (vii) If, at any time, approved applications for
4534	4534	9 the Adjustable Block program exceed funds collected by
4535	4535	10 the electric utility or would cause the Agency to
4536	4536	11 exceed the limitation described in subparagraph (E) of
4537	4537	12 this paragraph (1) on the amount of renewable energy
4538	4538	13 resources that may be procured, then the Agency may
4539	4539	14 consider future uncommitted funds to be reserved for
4540	4540	15 these contracts on a first-come, first-served basis.
4541	4541	16 (viii) Nothing in this Section shall require the
4542	4542	17 utility to advance any payment or pay any amounts that
4543	4543	18 exceed the actual amount of revenues anticipated to be
4544	4544	19 collected by the utility under paragraph (6) of this
4545	4545	20 subsection (c) and subsection (k) of Section 16-108 of
4546	4546	21 the Public Utilities Act inclusive of eligible funds
4547	4547	22 collected in prior years and alternative compliance
4548	4548	23 payments for use by the utility, and contracts
4549	4549	24 executed under this Section shall expressly
4550	4550	25 incorporate this limitation.
4551	4551	26 (ix) Notwithstanding other requirements of this
4552	4552
4553	4553
4554	4554
4555	4555
4556	4556
4557	4557	HB4687 - 125 - LRB103 36052 LNS 66139 b
4558	4558
4559	4559
4560	4560	HB4687- 126 -LRB103 36052 LNS 66139 b HB4687 - 126 - LRB103 36052 LNS 66139 b
4561	4561	HB4687 - 126 - LRB103 36052 LNS 66139 b
4562	4562	1 subparagraph (L), no modification shall be required to
4563	4563	2 Adjustable Block program contracts if they were
4564	4564	3 already executed prior to the establishment, approval,
4565	4565	4 and implementation of new contract forms as a result
4566	4566	5 of this amendatory Act of the 102nd General Assembly.
4567	4567	6 (x) Contracts may be assignable, but only to
4568	4568	7 entities first deemed by the Agency to have met
4569	4569	8 program terms and requirements applicable to direct
4570	4570	9 program participation. In developing contracts for the
4571	4571	10 delivery of renewable energy credits, the Agency shall
4572	4572	11 be permitted to establish fees applicable to each
4573	4573	12 contract assignment.
4574	4574	13 (M) The Agency shall be authorized to retain one or
4575	4575	14 more experts or expert consulting firms to develop,
4576	4576	15 administer, implement, operate, and evaluate the
4577	4577	16 Adjustable Block program described in subparagraph (K) of
4578	4578	17 this paragraph (1), and the Agency shall retain the
4579	4579	18 consultant or consultants in the same manner, to the
4580	4580	19 extent practicable, as the Agency retains others to
4581	4581	20 administer provisions of this Act, including, but not
4582	4582	21 limited to, the procurement administrator. The selection
4583	4583	22 of experts and expert consulting firms and the procurement
4584	4584	23 process described in this subparagraph (M) are exempt from
4585	4585	24 the requirements of Section 20-10 of the Illinois
4586	4586	25 Procurement Code, under Section 20-10 of that Code. The
4587	4587	26 Agency shall strive to minimize administrative expenses in
4588	4588
4589	4589
4590	4590
4591	4591
4592	4592
4593	4593	HB4687 - 126 - LRB103 36052 LNS 66139 b
4594	4594
4595	4595
4596	4596	HB4687- 127 -LRB103 36052 LNS 66139 b HB4687 - 127 - LRB103 36052 LNS 66139 b
4597	4597	HB4687 - 127 - LRB103 36052 LNS 66139 b
4598	4598	1 the implementation of the Adjustable Block program.
4599	4599	2 The Program Administrator may charge application fees
4600	4600	3 to participating firms to cover the cost of program
4601	4601	4 administration. Any application fee amounts shall
4602	4602	5 initially be determined through the long-term renewable
4603	4603	6 resources procurement plan, and modifications to any
4604	4604	7 application fee that deviate more than 25% from the
4605	4605	8 Commission's approved value must be approved by the
4606	4606	9 Commission as a long-term plan revision under Section
4607	4607	10 16-111.5 of the Public Utilities Act. The Agency shall
4608	4608	11 consider stakeholder feedback when making adjustments to
4609	4609	12 application fees and shall notify stakeholders in advance
4610	4610	13 of any planned changes.
4611	4611	14 In addition to covering the costs of program
4612	4612	15 administration, the Agency, in conjunction with its
4613	4613	16 Program Administrator, may also use the proceeds of such
4614	4614	17 fees charged to participating firms to support public
4615	4615	18 education and ongoing regional and national coordination
4616	4616	19 with nonprofit organizations, public bodies, and others
4617	4617	20 engaged in the implementation of renewable energy
4618	4618	21 incentive programs or similar initiatives. This work may
4619	4619	22 include developing papers and reports, hosting regional
4620	4620	23 and national conferences, and other work deemed necessary
4621	4621	24 by the Agency to position the State of Illinois as a
4622	4622	25 national leader in renewable energy incentive program
4623	4623	26 development and administration.
4624	4624
4625	4625
4626	4626
4627	4627
4628	4628
4629	4629	HB4687 - 127 - LRB103 36052 LNS 66139 b
4630	4630
4631	4631
4632	4632	HB4687- 128 -LRB103 36052 LNS 66139 b HB4687 - 128 - LRB103 36052 LNS 66139 b
4633	4633	HB4687 - 128 - LRB103 36052 LNS 66139 b
4634	4634	1 The Agency and its consultant or consultants shall
4635	4635	2 monitor block activity, share program activity with
4636	4636	3 stakeholders and conduct quarterly meetings to discuss
4637	4637	4 program activity and market conditions. If necessary, the
4638	4638	5 Agency may make prospective administrative adjustments to
4639	4639	6 the Adjustable Block program design, such as making
4640	4640	7 adjustments to purchase prices as necessary to achieve the
4641	4641	8 goals of this subsection (c). Program modifications to any
4642	4642	9 block price that do not deviate from the Commission's
4643	4643	10 approved value by more than 10% shall take effect
4644	4644	11 immediately and are not subject to Commission review and
4645	4645	12 approval. Program modifications to any block price that
4646	4646	13 deviate more than 10% from the Commission's approved value
4647	4647	14 must be approved by the Commission as a long-term plan
4648	4648	15 amendment under Section 16-111.5 of the Public Utilities
4649	4649	16 Act. The Agency shall consider stakeholder feedback when
4650	4650	17 making adjustments to the Adjustable Block design and
4651	4651	18 shall notify stakeholders in advance of any planned
4652	4652	19 changes.
4653	4653	20 The Agency and its program administrators for both the
4654	4654	21 Adjustable Block program and the Illinois Solar for All
4655	4655	22 Program, consistent with the requirements of this
4656	4656	23 subsection (c) and subsection (b) of Section 1-56 of this
4657	4657	24 Act, shall propose the Adjustable Block program terms,
4658	4658	25 conditions, and requirements, including the prices to be
4659	4659	26 paid for renewable energy credits, where applicable, and
4660	4660
4661	4661
4662	4662
4663	4663
4664	4664
4665	4665	HB4687 - 128 - LRB103 36052 LNS 66139 b
4666	4666
4667	4667
4668	4668	HB4687- 129 -LRB103 36052 LNS 66139 b HB4687 - 129 - LRB103 36052 LNS 66139 b
4669	4669	HB4687 - 129 - LRB103 36052 LNS 66139 b
4670	4670	1 requirements applicable to participating entities and
4671	4671	2 project applications, through the development, review, and
4672	4672	3 approval of the Agency's long-term renewable resources
4673	4673	4 procurement plan described in this subsection (c) and
4674	4674	5 paragraph (5) of subsection (b) of Section 16-111.5 of the
4675	4675	6 Public Utilities Act. Terms, conditions, and requirements
4676	4676	7 for program participation shall include the following:
4677	4677	8 (i) The Agency shall establish a registration
4678	4678	9 process for entities seeking to qualify for
4679	4679	10 program-administered incentive funding and establish
4680	4680	11 baseline qualifications for vendor approval. The
4681	4681	12 Agency must maintain a list of approved entities on
4682	4682	13 each program's website, and may revoke a vendor's
4683	4683	14 ability to receive program-administered incentive
4684	4684	15 funding status upon a determination that the vendor
4685	4685	16 failed to comply with contract terms, the law, or
4686	4686	17 other program requirements.
4687	4687	18 (ii) The Agency shall establish program
4688	4688	19 requirements and minimum contract terms to ensure
4689	4689	20 projects are properly installed and produce their
4690	4690	21 expected amounts of energy. Program requirements may
4691	4691	22 include on-site inspections and photo documentation of
4692	4692	23 projects under construction. The Agency may require
4693	4693	24 repairs, alterations, or additions to remedy any
4694	4694	25 material deficiencies discovered. Vendors who have a
4695	4695	26 disproportionately high number of deficient systems
4696	4696
4697	4697
4698	4698
4699	4699
4700	4700
4701	4701	HB4687 - 129 - LRB103 36052 LNS 66139 b
4702	4702
4703	4703
4704	4704	HB4687- 130 -LRB103 36052 LNS 66139 b HB4687 - 130 - LRB103 36052 LNS 66139 b
4705	4705	HB4687 - 130 - LRB103 36052 LNS 66139 b
4706	4706	1 may lose their eligibility to continue to receive
4707	4707	2 State-administered incentive funding through Agency
4708	4708	3 programs and procurements.
4709	4709	4 (iii) To discourage deceptive marketing or other
4710	4710	5 bad faith business practices, the Agency may require
4711	4711	6 direct program participants, including agents
4712	4712	7 operating on their behalf, to provide standardized
4713	4713	8 disclosures to a customer prior to that customer's
4714	4714	9 execution of a contract for the development of a
4715	4715	10 distributed generation system or a subscription to a
4716	4716	11 community solar project.
4717	4717	12 (iv) The Agency shall establish one or multiple
4718	4718	13 Consumer Complaints Centers to accept complaints
4719	4719	14 regarding businesses that participate in, or otherwise
4720	4720	15 benefit from, State-administered incentive funding
4721	4721	16 through Agency-administered programs. The Agency shall
4722	4722	17 maintain a public database of complaints with any
4723	4723	18 confidential or particularly sensitive information
4724	4724	19 redacted from public entries.
4725	4725	20 (v) Through a filing in the proceeding for the
4726	4726	21 approval of its long-term renewable energy resources
4727	4727	22 procurement plan, the Agency shall provide an annual
4728	4728	23 written report to the Illinois Commerce Commission
4729	4729	24 documenting the frequency and nature of complaints and
4730	4730	25 any enforcement actions taken in response to those
4731	4731	26 complaints.
4732	4732
4733	4733
4734	4734
4735	4735
4736	4736
4737	4737	HB4687 - 130 - LRB103 36052 LNS 66139 b
4738	4738
4739	4739
4740	4740	HB4687- 131 -LRB103 36052 LNS 66139 b HB4687 - 131 - LRB103 36052 LNS 66139 b
4741	4741	HB4687 - 131 - LRB103 36052 LNS 66139 b
4742	4742	1 (vi) The Agency shall schedule regular meetings
4743	4743	2 with representatives of the Office of the Attorney
4744	4744	3 General, the Illinois Commerce Commission, consumer
4745	4745	4 protection groups, and other interested stakeholders
4746	4746	5 to share relevant information about consumer
4747	4747	6 protection, project compliance, and complaints
4748	4748	7 received.
4749	4749	8 (vii) To the extent that complaints received
4750	4750	9 implicate the jurisdiction of the Office of the
4751	4751	10 Attorney General, the Illinois Commerce Commission, or
4752	4752	11 local, State, or federal law enforcement, the Agency
4753	4753	12 shall also refer complaints to those entities as
4754	4754	13 appropriate.
4755	4755	14 (N) The Agency shall establish the terms, conditions,
4756	4756	15 and program requirements for photovoltaic community
4757	4757	16 renewable generation projects with a goal to expand access
4758	4758	17 to a broader group of energy consumers, to ensure robust
4759	4759	18 participation opportunities for residential and small
4760	4760	19 commercial customers and those who cannot install
4761	4761	20 renewable energy on their own properties. Subject to
4762	4762	21 reasonable limitations, any plan approved by the
4763	4763	22 Commission shall allow subscriptions to community
4764	4764	23 renewable generation projects to be portable and
4765	4765	24 transferable. For purposes of this subparagraph (N),
4766	4766	25 "portable" means that subscriptions may be retained by the
4767	4767	26 subscriber even if the subscriber relocates or changes its
4768	4768
4769	4769
4770	4770
4771	4771
4772	4772
4773	4773	HB4687 - 131 - LRB103 36052 LNS 66139 b
4774	4774
4775	4775
4776	4776	HB4687- 132 -LRB103 36052 LNS 66139 b HB4687 - 132 - LRB103 36052 LNS 66139 b
4777	4777	HB4687 - 132 - LRB103 36052 LNS 66139 b
4778	4778	1 address within the same utility service territory; and
4779	4779	2 "transferable" means that a subscriber may assign or sell
4780	4780	3 subscriptions to another person within the same utility
4781	4781	4 service territory.
4782	4782	5 Through the development of its long-term renewable
4783	4783	6 resources procurement plan, the Agency may consider
4784	4784	7 whether community renewable generation projects utilizing
4785	4785	8 technologies other than photovoltaics should be supported
4786	4786	9 through State-administered incentive funding, and may
4787	4787	10 issue requests for information to gauge market demand.
4788	4788	11 Electric utilities shall provide a monetary credit to
4789	4789	12 a subscriber's subsequent bill for service for the
4790	4790	13 proportional output of a community renewable generation
4791	4791	14 project attributable to that subscriber as specified in
4792	4792	15 Section 16-107.5 of the Public Utilities Act.
4793	4793	16 The Agency shall purchase renewable energy credits
4794	4794	17 from subscribed shares of photovoltaic community renewable
4795	4795	18 generation projects through the Adjustable Block program
4796	4796	19 described in subparagraph (K) of this paragraph (1) or
4797	4797	20 through the Illinois Solar for All Program described in
4798	4798	21 Section 1-56 of this Act. The electric utility shall
4799	4799	22 purchase any unsubscribed energy from community renewable
4800	4800	23 generation projects that are Qualifying Facilities ("QF")
4801	4801	24 under the electric utility's tariff for purchasing the
4802	4802	25 output from QFs under Public Utilities Regulatory Policies
4803	4803	26 Act of 1978.
4804	4804
4805	4805
4806	4806
4807	4807
4808	4808
4809	4809	HB4687 - 132 - LRB103 36052 LNS 66139 b
4810	4810
4811	4811
4812	4812	HB4687- 133 -LRB103 36052 LNS 66139 b HB4687 - 133 - LRB103 36052 LNS 66139 b
4813	4813	HB4687 - 133 - LRB103 36052 LNS 66139 b
4814	4814	1 The owners of and any subscribers to a community
4815	4815	2 renewable generation project shall not be considered
4816	4816	3 public utilities or alternative retail electricity
4817	4817	4 suppliers under the Public Utilities Act solely as a
4818	4818	5 result of their interest in or subscription to a community
4819	4819	6 renewable generation project and shall not be required to
4820	4820	7 become an alternative retail electric supplier by
4821	4821	8 participating in a community renewable generation project
4822	4822	9 with a public utility.
4823	4823	10 (O) For the delivery year beginning June 1, 2018, the
4824	4824	11 long-term renewable resources procurement plan required by
4825	4825	12 this subsection (c) shall provide for the Agency to
4826	4826	13 procure contracts to continue offering the Illinois Solar
4827	4827	14 for All Program described in subsection (b) of Section
4828	4828	15 1-56 of this Act, and the contracts approved by the
4829	4829	16 Commission shall be executed by the utilities that are
4830	4830	17 subject to this subsection (c). The long-term renewable
4831	4831	18 resources procurement plan shall allocate up to
4832	4832	19 $50,000,000 per delivery year to fund the programs, and
4833	4833	20 the plan shall determine the amount of funding to be
4834	4834	21 apportioned to the programs identified in subsection (b)
4835	4835	22 of Section 1-56 of this Act; provided that for the
4836	4836	23 delivery years beginning June 1, 2021, June 1, 2022, and
4837	4837	24 June 1, 2023, the long-term renewable resources
4838	4838	25 procurement plan may average the annual budgets over a
4839	4839	26 3-year period to account for program ramp-up. For the
4840	4840
4841	4841
4842	4842
4843	4843
4844	4844
4845	4845	HB4687 - 133 - LRB103 36052 LNS 66139 b
4846	4846
4847	4847
4848	4848	HB4687- 134 -LRB103 36052 LNS 66139 b HB4687 - 134 - LRB103 36052 LNS 66139 b
4849	4849	HB4687 - 134 - LRB103 36052 LNS 66139 b
4850	4850	1 delivery years beginning June 1, 2021, June 1, 2024, June
4851	4851	2 1, 2027, and June 1, 2030 and additional $10,000,000 shall
4852	4852	3 be provided to the Department of Commerce and Economic
4853	4853	4 Opportunity to implement the workforce development
4854	4854	5 programs and reporting as outlined in Section 16-108.12 of
4855	4855	6 the Public Utilities Act. In making the determinations
4856	4856	7 required under this subparagraph (O), the Commission shall
4857	4857	8 consider the experience and performance under the programs
4858	4858	9 and any evaluation reports. The Commission shall also
4859	4859	10 provide for an independent evaluation of those programs on
4860	4860	11 a periodic basis that are funded under this subparagraph
4861	4861	12 (O).
4862	4862	13 (P) All programs and procurements under this
4863	4863	14 subsection (c) shall be designed to encourage
4864	4864	15 participating projects to use a diverse and equitable
4865	4865	16 workforce and a diverse set of contractors, including
4866	4866	17 minority-owned businesses, disadvantaged businesses,
4867	4867	18 trade unions, graduates of any workforce training programs
4868	4868	19 administered under this Act, and small businesses.
4869	4869	20 The Agency shall develop a method to optimize
4870	4870	21 procurement of renewable energy credits from proposed
4871	4871	22 utility-scale projects that are located in communities
4872	4872	23 eligible to receive Energy Transition Community Grants
4873	4873	24 pursuant to Section 10-20 of the Energy Community
4874	4874	25 Reinvestment Act. If this requirement conflicts with other
4875	4875	26 provisions of law or the Agency determines that full
4876	4876
4877	4877
4878	4878
4879	4879
4880	4880
4881	4881	HB4687 - 134 - LRB103 36052 LNS 66139 b
4882	4882
4883	4883
4884	4884	HB4687- 135 -LRB103 36052 LNS 66139 b HB4687 - 135 - LRB103 36052 LNS 66139 b
4885	4885	HB4687 - 135 - LRB103 36052 LNS 66139 b
4886	4886	1 compliance with the requirements of this subparagraph (P)
4887	4887	2 would be unreasonably costly or administratively
4888	4888	3 impractical, the Agency is to propose alternative
4889	4889	4 approaches to achieve development of renewable energy
4890	4890	5 resources in communities eligible to receive Energy
4891	4891	6 Transition Community Grants pursuant to Section 10-20 of
4892	4892	7 the Energy Community Reinvestment Act or seek an exemption
4893	4893	8 from this requirement from the Commission.
4894	4894	9 (Q) Each facility listed in subitems (i) through (ix)
4895	4895	10 of item (1) of this subparagraph (Q) for which a renewable
4896	4896	11 energy credit delivery contract is signed after the
4897	4897	12 effective date of this amendatory Act of the 102nd General
4898	4898	13 Assembly is subject to the following requirements through
4899	4899	14 the Agency's long-term renewable resources procurement
4900	4900	15 plan:
4901	4901	16 (1) Each facility shall be subject to the
4902	4902	17 prevailing wage requirements included in the
4903	4903	18 Prevailing Wage Act. The Agency shall require
4904	4904	19 verification that all construction performed on the
4905	4905	20 facility by the renewable energy credit delivery
4906	4906	21 contract holder, its contractors, or its
4907	4907	22 subcontractors relating to construction of the
4908	4908	23 facility is performed by construction employees
4909	4909	24 receiving an amount for that work equal to or greater
4910	4910	25 than the general prevailing rate, as that term is
4911	4911	26 defined in Section 3 of the Prevailing Wage Act. For
4912	4912
4913	4913
4914	4914
4915	4915
4916	4916
4917	4917	HB4687 - 135 - LRB103 36052 LNS 66139 b
4918	4918
4919	4919
4920	4920	HB4687- 136 -LRB103 36052 LNS 66139 b HB4687 - 136 - LRB103 36052 LNS 66139 b
4921	4921	HB4687 - 136 - LRB103 36052 LNS 66139 b
4922	4922	1 purposes of this item (1), "house of worship" means
4923	4923	2 property that is both (1) used exclusively by a
4924	4924	3 religious society or body of persons as a place for
4925	4925	4 religious exercise or religious worship and (2)
4926	4926	5 recognized as exempt from taxation pursuant to Section
4927	4927	6 15-40 of the Property Tax Code. This item (1) shall
4928	4928	7 apply to any the following:
4929	4929	8 (i) all new utility-scale wind projects;
4930	4930	9 (ii) all new utility-scale photovoltaic
4931	4931	10 projects;
4932	4932	11 (iii) all new brownfield photovoltaic
4933	4933	12 projects;
4934	4934	13 (iv) all new photovoltaic community renewable
4935	4935	14 energy facilities that qualify for item (iii) of
4936	4936	15 subparagraph (K) of this paragraph (1);
4937	4937	16 (v) all new community driven community
4938	4938	17 photovoltaic projects that qualify for item (v) of
4939	4939	18 subparagraph (K) of this paragraph (1);
4940	4940	19 (vi) all new photovoltaic projects on public
4941	4941	20 school land that qualify for item (iv) of
4942	4942	21 subparagraph (K) of this paragraph (1);
4943	4943	22 (vii) all new photovoltaic distributed
4944	4944	23 renewable energy generation devices that (1)
4945	4945	24 qualify for item (i) of subparagraph (K) of this
4946	4946	25 paragraph (1); (2) are not projects that serve
4947	4947	26 single-family or multi-family residential
4948	4948
4949	4949
4950	4950
4951	4951
4952	4952
4953	4953	HB4687 - 136 - LRB103 36052 LNS 66139 b
4954	4954
4955	4955
4956	4956	HB4687- 137 -LRB103 36052 LNS 66139 b HB4687 - 137 - LRB103 36052 LNS 66139 b
4957	4957	HB4687 - 137 - LRB103 36052 LNS 66139 b
4958	4958	1 buildings; and (3) are not houses of worship where
4959	4959	2 the aggregate capacity including collocated
4960	4960	3 projects would not exceed 100 kilowatts;
4961	4961	4 (viii) all new photovoltaic distributed
4962	4962	5 renewable energy generation devices that (1)
4963	4963	6 qualify for item (ii) of subparagraph (K) of this
4964	4964	7 paragraph (1); (2) are not projects that serve
4965	4965	8 single-family or multi-family residential
4966	4966	9 buildings; and (3) are not houses of worship where
4967	4967	10 the aggregate capacity including collocated
4968	4968	11 projects would not exceed 100 kilowatts;
4969	4969	12 (ix) all new, modernized, or retooled
4970	4970	13 hydropower facilities.
4971	4971	14 (2) Renewable energy credits procured from new
4972	4972	15 utility-scale wind projects, new utility-scale solar
4973	4973	16 projects, and new brownfield solar projects pursuant
4974	4974	17 to Agency procurement events occurring after the
4975	4975	18 effective date of this amendatory Act of the 102nd
4976	4976	19 General Assembly must be from facilities built by
4977	4977	20 general contractors that must enter into a project
4978	4978	21 labor agreement, as defined by this Act, prior to
4979	4979	22 construction. The project labor agreement shall be
4980	4980	23 filed with the Director in accordance with procedures
4981	4981	24 established by the Agency through its long-term
4982	4982	25 renewable resources procurement plan. Any information
4983	4983	26 submitted to the Agency in this item (2) shall be
4984	4984
4985	4985
4986	4986
4987	4987
4988	4988
4989	4989	HB4687 - 137 - LRB103 36052 LNS 66139 b
4990	4990
4991	4991
4992	4992	HB4687- 138 -LRB103 36052 LNS 66139 b HB4687 - 138 - LRB103 36052 LNS 66139 b
4993	4993	HB4687 - 138 - LRB103 36052 LNS 66139 b
4994	4994	1 considered commercially sensitive information. At a
4995	4995	2 minimum, the project labor agreement must provide the
4996	4996	3 names, addresses, and occupations of the owner of the
4997	4997	4 plant and the individuals representing the labor
4998	4998	5 organization employees participating in the project
4999	4999	6 labor agreement consistent with the Project Labor
5000	5000	7 Agreements Act. The agreement must also specify the
5001	5001	8 terms and conditions as defined by this Act.
5002	5002	9 (3) It is the intent of this Section to ensure that
5003	5003	10 economic development occurs across Illinois
5004	5004	11 communities, that emerging businesses may grow, and
5005	5005	12 that there is improved access to the clean energy
5006	5006	13 economy by persons who have greater economic burdens
5007	5007	14 to success. The Agency shall take into consideration
5008	5008	15 the unique cost of compliance of this subparagraph (Q)
5009	5009	16 that might be borne by equity eligible contractors,
5010	5010	17 shall include such costs when determining the price of
5011	5011	18 renewable energy credits in the Adjustable Block
5012	5012	19 program, and shall take such costs into consideration
5013	5013	20 in a nondiscriminatory manner when comparing bids for
5014	5014	21 competitive procurements. The Agency shall consider
5015	5015	22 costs associated with compliance whether in the
5016	5016	23 development, financing, or construction of projects.
5017	5017	24 The Agency shall periodically review the assumptions
5018	5018	25 in these costs and may adjust prices, in compliance
5019	5019	26 with subparagraph (M) of this paragraph (1).
5020	5020
5021	5021
5022	5022
5023	5023
5024	5024
5025	5025	HB4687 - 138 - LRB103 36052 LNS 66139 b
5026	5026
5027	5027
5028	5028	HB4687- 139 -LRB103 36052 LNS 66139 b HB4687 - 139 - LRB103 36052 LNS 66139 b
5029	5029	HB4687 - 139 - LRB103 36052 LNS 66139 b
5030	5030	1 (R) In its long-term renewable resources procurement
5031	5031	2 plan, the Agency shall establish a self-direct renewable
5032	5032	3 portfolio standard compliance program for eligible
5033	5033	4 self-direct customers that purchase renewable energy
5034	5034	5 credits from utility-scale wind and solar projects through
5035	5035	6 long-term agreements for purchase of renewable energy
5036	5036	7 credits as described in this Section. Such long-term
5037	5037	8 agreements may include the purchase of energy or other
5038	5038	9 products on a physical or financial basis and may involve
5039	5039	10 an alternative retail electric supplier as defined in
5040	5040	11 Section 16-102 of the Public Utilities Act. This program
5041	5041	12 shall take effect in the delivery year commencing June 1,
5042	5042	13 2023.
5043	5043	14 (1) For the purposes of this subparagraph:
5044	5044	15 "Eligible self-direct customer" means any retail
5045	5045	16 customers of an electric utility that serves 3,000,000
5046	5046	17 or more retail customers in the State and whose total
5047	5047	18 highest 30-minute demand was more than 10,000
5048	5048	19 kilowatts, or any retail customers of an electric
5049	5049	20 utility that serves less than 3,000,000 retail
5050	5050	21 customers but more than 500,000 retail customers in
5051	5051	22 the State and whose total highest 15-minute demand was
5052	5052	23 more than 10,000 kilowatts.
5053	5053	24 "Retail customer" has the meaning set forth in
5054	5054	25 Section 16-102 of the Public Utilities Act and
5055	5055	26 multiple retail customer accounts under the same
5056	5056
5057	5057
5058	5058
5059	5059
5060	5060
5061	5061	HB4687 - 139 - LRB103 36052 LNS 66139 b
5062	5062
5063	5063
5064	5064	HB4687- 140 -LRB103 36052 LNS 66139 b HB4687 - 140 - LRB103 36052 LNS 66139 b
5065	5065	HB4687 - 140 - LRB103 36052 LNS 66139 b
5066	5066	1 corporate parent may aggregate their account demands
5067	5067	2 to meet the 10,000 kilowatt threshold. The criteria
5068	5068	3 for determining whether this subparagraph is
5069	5069	4 applicable to a retail customer shall be based on the
5070	5070	5 12 consecutive billing periods prior to the start of
5071	5071	6 the year in which the application is filed.
5072	5072	7 (2) For renewable energy credits to count toward
5073	5073	8 the self-direct renewable portfolio standard
5074	5074	9 compliance program, they must:
5075	5075	10 (i) qualify as renewable energy credits as
5076	5076	11 defined in Section 1-10 of this Act;
5077	5077	12 (ii) be sourced from one or more renewable
5078	5078	13 energy generating facilities that comply with the
5079	5079	14 geographic requirements as set forth in
5080	5080	15 subparagraph (I) of paragraph (1) of subsection
5081	5081	16 (c) as interpreted through the Agency's long-term
5082	5082	17 renewable resources procurement plan, or, where
5083	5083	18 applicable, the geographic requirements that
5084	5084	19 governed utility-scale renewable energy credits at
5085	5085	20 the time the eligible self-direct customer entered
5086	5086	21 into the applicable renewable energy credit
5087	5087	22 purchase agreement;
5088	5088	23 (iii) be procured through long-term contracts
5089	5089	24 with term lengths of at least 10 years either
5090	5090	25 directly with the renewable energy generating
5091	5091	26 facility or through a bundled power purchase
5092	5092
5093	5093
5094	5094
5095	5095
5096	5096
5097	5097	HB4687 - 140 - LRB103 36052 LNS 66139 b
5098	5098
5099	5099
5100	5100	HB4687- 141 -LRB103 36052 LNS 66139 b HB4687 - 141 - LRB103 36052 LNS 66139 b
5101	5101	HB4687 - 141 - LRB103 36052 LNS 66139 b
5102	5102	1 agreement, a virtual power purchase agreement, an
5103	5103	2 agreement between the renewable generating
5104	5104	3 facility, an alternative retail electric supplier,
5105	5105	4 and the customer, or such other structure as is
5106	5106	5 permissible under this subparagraph (R);
5107	5107	6 (iv) be equivalent in volume to at least 40%
5108	5108	7 of the eligible self-direct customer's usage,
5109	5109	8 determined annually by the eligible self-direct
5110	5110	9 customer's usage during the previous delivery
5111	5111	10 year, measured to the nearest megawatt-hour;
5112	5112	11 (v) be retired by or on behalf of the large
5113	5113	12 energy customer;
5114	5114	13 (vi) be sourced from new utility-scale wind
5115	5115	14 projects or new utility-scale solar projects; and
5116	5116	15 (vii) if the contracts for renewable energy
5117	5117	16 credits are entered into after the effective date
5118	5118	17 of this amendatory Act of the 102nd General
5119	5119	18 Assembly, the new utility-scale wind projects or
5120	5120	19 new utility-scale solar projects must comply with
5121	5121	20 the requirements established in subparagraphs (P)
5122	5122	21 and (Q) of paragraph (1) of this subsection (c)
5123	5123	22 and subsection (c-10).
5124	5124	23 (3) The self-direct renewable portfolio standard
5125	5125	24 compliance program shall be designed to allow eligible
5126	5126	25 self-direct customers to procure new renewable energy
5127	5127	26 credits from new utility-scale wind projects or new
5128	5128
5129	5129
5130	5130
5131	5131
5132	5132
5133	5133	HB4687 - 141 - LRB103 36052 LNS 66139 b
5134	5134
5135	5135
5136	5136	HB4687- 142 -LRB103 36052 LNS 66139 b HB4687 - 142 - LRB103 36052 LNS 66139 b
5137	5137	HB4687 - 142 - LRB103 36052 LNS 66139 b
5138	5138	1 utility-scale photovoltaic projects. The Agency shall
5139	5139	2 annually determine the amount of utility-scale
5140	5140	3 renewable energy credits it will include each year
5141	5141	4 from the self-direct renewable portfolio standard
5142	5142	5 compliance program, subject to receiving qualifying
5143	5143	6 applications. In making this determination, the Agency
5144	5144	7 shall evaluate publicly available analyses and studies
5145	5145	8 of the potential market size for utility-scale
5146	5146	9 renewable energy long-term purchase agreements by
5147	5147	10 commercial and industrial energy customers and make
5148	5148	11 that report publicly available. If demand for
5149	5149	12 participation in the self-direct renewable portfolio
5150	5150	13 standard compliance program exceeds availability, the
5151	5151	14 Agency shall ensure participation is evenly split
5152	5152	15 between commercial and industrial users to the extent
5153	5153	16 there is sufficient demand from both customer classes.
5154	5154	17 Each renewable energy credit procured pursuant to this
5155	5155	18 subparagraph (R) by a self-direct customer shall
5156	5156	19 reduce the total volume of renewable energy credits
5157	5157	20 the Agency is otherwise required to procure from new
5158	5158	21 utility-scale projects pursuant to subparagraph (C) of
5159	5159	22 paragraph (1) of this subsection (c) on behalf of
5160	5160	23 contracting utilities where the eligible self-direct
5161	5161	24 customer is located. The self-direct customer shall
5162	5162	25 file an annual compliance report with the Agency
5163	5163	26 pursuant to terms established by the Agency through
5164	5164
5165	5165
5166	5166
5167	5167
5168	5168
5169	5169	HB4687 - 142 - LRB103 36052 LNS 66139 b
5170	5170
5171	5171
5172	5172	HB4687- 143 -LRB103 36052 LNS 66139 b HB4687 - 143 - LRB103 36052 LNS 66139 b
5173	5173	HB4687 - 143 - LRB103 36052 LNS 66139 b
5174	5174	1 its long-term renewable resources procurement plan to
5175	5175	2 be eligible for participation in this program.
5176	5176	3 Customers must provide the Agency with their most
5177	5177	4 recent electricity billing statements or other
5178	5178	5 information deemed necessary by the Agency to
5179	5179	6 demonstrate they are an eligible self-direct customer.
5180	5180	7 (4) The Commission shall approve a reduction in
5181	5181	8 the volumetric charges collected pursuant to Section
5182	5182	9 16-108 of the Public Utilities Act for approved
5183	5183	10 eligible self-direct customers equivalent to the
5184	5184	11 anticipated cost of renewable energy credit deliveries
5185	5185	12 under contracts for new utility-scale wind and new
5186	5186	13 utility-scale solar entered for each delivery year
5187	5187	14 after the large energy customer begins retiring
5188	5188	15 eligible new utility scale renewable energy credits
5189	5189	16 for self-compliance. The self-direct credit amount
5190	5190	17 shall be determined annually and is equal to the
5191	5191	18 estimated portion of the cost authorized by
5192	5192	19 subparagraph (E) of paragraph (1) of this subsection
5193	5193	20 (c) that supported the annual procurement of
5194	5194	21 utility-scale renewable energy credits in the prior
5195	5195	22 delivery year using a methodology described in the
5196	5196	23 long-term renewable resources procurement plan,
5197	5197	24 expressed on a per kilowatthour basis, and does not
5198	5198	25 include (i) costs associated with any contracts
5199	5199	26 entered into before the delivery year in which the
5200	5200
5201	5201
5202	5202
5203	5203
5204	5204
5205	5205	HB4687 - 143 - LRB103 36052 LNS 66139 b
5206	5206
5207	5207
5208	5208	HB4687- 144 -LRB103 36052 LNS 66139 b HB4687 - 144 - LRB103 36052 LNS 66139 b
5209	5209	HB4687 - 144 - LRB103 36052 LNS 66139 b
5210	5210	1 customer files the initial compliance report to be
5211	5211	2 eligible for participation in the self-direct program,
5212	5212	3 and (ii) costs associated with procuring renewable
5213	5213	4 energy credits through existing and future contracts
5214	5214	5 through the Adjustable Block Program, subsection (c-5)
5215	5215	6 of this Section 1-75, and the Solar for All Program.
5216	5216	7 The Agency shall assist the Commission in determining
5217	5217	8 the current and future costs. The Agency must
5218	5218	9 determine the self-direct credit amount for new and
5219	5219	10 existing eligible self-direct customers and submit
5220	5220	11 this to the Commission in an annual compliance filing.
5221	5221	12 The Commission must approve the self-direct credit
5222	5222	13 amount by June 1, 2023 and June 1 of each delivery year
5223	5223	14 thereafter.
5224	5224	15 (5) Customers described in this subparagraph (R)
5225	5225	16 shall apply, on a form developed by the Agency, to the
5226	5226	17 Agency to be designated as a self-direct eligible
5227	5227	18 customer. Once the Agency determines that a
5228	5228	19 self-direct customer is eligible for participation in
5229	5229	20 the program, the self-direct customer will remain
5230	5230	21 eligible until the end of the term of the contract.
5231	5231	22 Thereafter, application may be made not less than 12
5232	5232	23 months before the filing date of the long-term
5233	5233	24 renewable resources procurement plan described in this
5234	5234	25 Act. At a minimum, such application shall contain the
5235	5235	26 following:
5236	5236
5237	5237
5238	5238
5239	5239
5240	5240
5241	5241	HB4687 - 144 - LRB103 36052 LNS 66139 b
5242	5242
5243	5243
5244	5244	HB4687- 145 -LRB103 36052 LNS 66139 b HB4687 - 145 - LRB103 36052 LNS 66139 b
5245	5245	HB4687 - 145 - LRB103 36052 LNS 66139 b
5246	5246	1 (i) the customer's certification that, at the
5247	5247	2 time of the customer's application, the customer
5248	5248	3 qualifies to be a self-direct eligible customer,
5249	5249	4 including documents demonstrating that
5250	5250	5 qualification;
5251	5251	6 (ii) the customer's certification that the
5252	5252	7 customer has entered into or will enter into by
5253	5253	8 the beginning of the applicable procurement year,
5254	5254	9 one or more bilateral contracts for new wind
5255	5255	10 projects or new photovoltaic projects, including
5256	5256	11 supporting documentation;
5257	5257	12 (iii) certification that the contract or
5258	5258	13 contracts for new renewable energy resources are
5259	5259	14 long-term contracts with term lengths of at least
5260	5260	15 10 years, including supporting documentation;
5261	5261	16 (iv) certification of the quantities of
5262	5262	17 renewable energy credits that the customer will
5263	5263	18 purchase each year under such contract or
5264	5264	19 contracts, including supporting documentation;
5265	5265	20 (v) proof that the contract is sufficient to
5266	5266	21 produce renewable energy credits to be equivalent
5267	5267	22 in volume to at least 40% of the large energy
5268	5268	23 customer's usage from the previous delivery year,
5269	5269	24 measured to the nearest megawatt-hour; and
5270	5270	25 (vi) certification that the customer intends
5271	5271	26 to maintain the contract for the duration of the
5272	5272
5273	5273
5274	5274
5275	5275
5276	5276
5277	5277	HB4687 - 145 - LRB103 36052 LNS 66139 b
5278	5278
5279	5279
5280	5280	HB4687- 146 -LRB103 36052 LNS 66139 b HB4687 - 146 - LRB103 36052 LNS 66139 b
5281	5281	HB4687 - 146 - LRB103 36052 LNS 66139 b
5282	5282	1 length of the contract.
5283	5283	2 (6) If a customer receives the self-direct credit
5284	5284	3 but fails to properly procure and retire renewable
5285	5285	4 energy credits as required under this subparagraph
5286	5286	5 (R), the Commission, on petition from the Agency and
5287	5287	6 after notice and hearing, may direct such customer's
5288	5288	7 utility to recover the cost of the wrongfully received
5289	5289	8 self-direct credits plus interest through an adder to
5290	5290	9 charges assessed pursuant to Section 16-108 of the
5291	5291	10 Public Utilities Act. Self-direct customers who
5292	5292	11 knowingly fail to properly procure and retire
5293	5293	12 renewable energy credits and do not notify the Agency
5294	5294	13 are ineligible for continued participation in the
5295	5295	14 self-direct renewable portfolio standard compliance
5296	5296	15 program.
5297	5297	16 (2) For purposes of this subsection (c), the required
5298	5298	17 procurement of cost-effective renewable energy resources
5299	5299	18 for a particular year shall be measured as a percentage of
5300	5300	19 the actual amount of electricity (megawatt hours) supplied
5301	5301	20 by the electric utility to eligible retail customers in
5302	5302	21 the planning year ending immediately prior to the
5303	5303	22 procurement. For purposes of this subsection (c), the
5304	5304	23 amount paid per kilowatt hour means the total amount paid
5305	5305	24 for electric service expressed on a per-kilowatt-hour
5306	5306	25 basis. For purposes of this subsection (c), the total
5307	5307	26 amount paid for electric service includes without
5308	5308
5309	5309
5310	5310
5311	5311
5312	5312
5313	5313	HB4687 - 146 - LRB103 36052 LNS 66139 b
5314	5314
5315	5315
5316	5316	HB4687- 147 -LRB103 36052 LNS 66139 b HB4687 - 147 - LRB103 36052 LNS 66139 b
5317	5317	HB4687 - 147 - LRB103 36052 LNS 66139 b
5318	5318	1 limitation amounts paid for supply, transmission,
5319	5319	2 distribution, surcharges, and add-on taxes.
5320	5320	3 Notwithstanding the requirements of this subsection
5321	5321	4 (c), the total of renewable energy resources procured
5322	5322	5 pursuant to the procurement plan for any single year shall
5323	5323	6 be reduced by an amount necessary to limit the annual
5324	5324	7 estimated average net increase due to the costs of these
5325	5325	8 resources included in the amounts paid by eligible retail
5326	5326	9 customers in connection with electric service.
5327	5327	10 The amount of renewable energy resources procured
5328	5328	11 pursuant to the procurement plan for any single year shall
5329	5329	12 be reduced by an amount necessary to limit the estimated
5330	5330	13 average net increase due to the cost of these resources
5331	5331	14 included in the amounts paid by eligible retail customers
5332	5332	15 in connection with electric service to no more than the
5333	5333	16 greater of 2.015% of the amount paid per kilowatt-hour by
5334	5334	17 those customers the incremental amount per kilowatt-hour
5335	5335	18 paid for these resources.
5336	5336	19 (Blank).
5337	5337	20 (3) Cost-effective renewable energy resources located
5338	5338	21 in Illinois and in states that adjoin Illinois may be
5339	5339	22 counted toward compliance with the standards set forth in
5340	5340	23 paragraph (1) of this subsection (c). If those
5341	5341	24 cost-effective resources are not available in Illinois or
5342	5342	25 in states that adjoin Illinois, they shall be purchased
5343	5343	26 elsewhere and shall be counted toward compliance. (Blank).
5344	5344
5345	5345
5346	5346
5347	5347
5348	5348
5349	5349	HB4687 - 147 - LRB103 36052 LNS 66139 b
5350	5350
5351	5351
5352	5352	HB4687- 148 -LRB103 36052 LNS 66139 b HB4687 - 148 - LRB103 36052 LNS 66139 b
5353	5353	HB4687 - 148 - LRB103 36052 LNS 66139 b
5354	5354	1 (4) The electric utility shall retire all renewable
5355	5355	2 energy credits used to comply with the standard.
5356	5356	3 (5) Beginning with the year commencing June 1, 2010
5357	5357	4 2010 delivery year and ending June 1, 2017, an electric
5358	5358	5 utility subject to this subsection (c) shall apply the
5359	5359	6 lesser of the maximum alternative compliance payment rate
5360	5360	7 or the most recent estimated alternative compliance
5361	5361	8 payment rate for its service territory for the
5362	5362	9 corresponding compliance period, established pursuant to
5363	5363	10 subsection (d) of Section 16-115D of the Public Utilities
5364	5364	11 Act to its retail customers that take service pursuant to
5365	5365	12 the electric utility's hourly pricing tariff or tariffs.
5366	5366	13 The electric utility shall retain all amounts collected as
5367	5367	14 a result of the application of the alternative compliance
5368	5368	15 payment rate or rates to such customers, and, beginning in
5369	5369	16 2011, the utility shall include in the information
5370	5370	17 provided under item (1) of subsection (d) of Section
5371	5371	18 16-111.5 of the Public Utilities Act the amounts collected
5372	5372	19 under the alternative compliance payment rate or rates for
5373	5373	20 the prior year ending May 31. Notwithstanding any
5374	5374	21 limitation on the procurement of renewable energy
5375	5375	22 resources imposed by item (2) of this subsection (c), the
5376	5376	23 Agency shall increase its spending on the purchase of
5377	5377	24 renewable energy resources to be procured by the electric
5378	5378	25 utility for the next plan year by an amount equal to the
5379	5379	26 amounts collected by the utility under the alternative
5380	5380
5381	5381
5382	5382
5383	5383
5384	5384
5385	5385	HB4687 - 148 - LRB103 36052 LNS 66139 b
5386	5386
5387	5387
5388	5388	HB4687- 149 -LRB103 36052 LNS 66139 b HB4687 - 149 - LRB103 36052 LNS 66139 b
5389	5389	HB4687 - 149 - LRB103 36052 LNS 66139 b
5390	5390	1 compliance payment rate or rates in the prior year ending
5391	5391	2 May 31.
5392	5392	3 (6) The electric utility shall be entitled to recover
5393	5393	4 all of its costs associated with the procurement of
5394	5394	5 renewable energy credits under plans approved under this
5395	5395	6 Section and Section 16-111.5 of the Public Utilities Act.
5396	5396	7 These costs shall include associated reasonable expenses
5397	5397	8 for implementing the procurement programs, including, but
5398	5398	9 not limited to, the costs of administering and evaluating
5399	5399	10 the Adjustable Block program, through an automatic
5400	5400	11 adjustment clause tariff in accordance with subsection (k)
5401	5401	12 of Section 16-108 of the Public Utilities Act.
5402	5402	13 (7) Renewable energy credits procured from new
5403	5403	14 photovoltaic projects or new distributed renewable energy
5404	5404	15 generation devices under this Section after June 1, 2017
5405	5405	16 (the effective date of Public Act 99-906) must be procured
5406	5406	17 from devices installed by a qualified person in compliance
5407	5407	18 with the requirements of Section 16-128A of the Public
5408	5408	19 Utilities Act and any rules or regulations adopted
5409	5409	20 thereunder.
5410	5410	21 In meeting the renewable energy requirements of this
5411	5411	22 subsection (c), to the extent feasible and consistent with
5412	5412	23 State and federal law, the renewable energy credit
5413	5413	24 procurements, Adjustable Block solar program, and
5414	5414	25 community renewable generation program shall provide
5415	5415	26 employment opportunities for all segments of the
5416	5416
5417	5417
5418	5418
5419	5419
5420	5420
5421	5421	HB4687 - 149 - LRB103 36052 LNS 66139 b
5422	5422
5423	5423
5424	5424	HB4687- 150 -LRB103 36052 LNS 66139 b HB4687 - 150 - LRB103 36052 LNS 66139 b
5425	5425	HB4687 - 150 - LRB103 36052 LNS 66139 b
5426	5426	1 population and workforce, including minority-owned and
5427	5427	2 female-owned business enterprises, and shall not,
5428	5428	3 consistent with State and federal law, discriminate based
5429	5429	4 on race or socioeconomic status.
5430	5430	5 (c-5) (Blank). Procurement of renewable energy credits
5431	5431	6 from new renewable energy facilities installed at or adjacent
5432	5432	7 to the sites of electric generating facilities that burn or
5433	5433	8 burned coal as their primary fuel source.
5434	5434	9 (1) In addition to the procurement of renewable energy
5435	5435	10 credits pursuant to long-term renewable resources
5436	5436	11 procurement plans in accordance with subsection (c) of
5437	5437	12 this Section and Section 16-111.5 of the Public Utilities
5438	5438	13 Act, the Agency shall conduct procurement events in
5439	5439	14 accordance with this subsection (c-5) for the procurement
5440	5440	15 by electric utilities that served more than 300,000 retail
5441	5441	16 customers in this State as of January 1, 2019 of renewable
5442	5442	17 energy credits from new renewable energy facilities to be
5443	5443	18 installed at or adjacent to the sites of electric
5444	5444	19 generating facilities that, as of January 1, 2016, burned
5445	5445	20 coal as their primary fuel source and meet the other
5446	5446	21 criteria specified in this subsection (c-5). For purposes
5447	5447	22 of this subsection (c-5), "new renewable energy facility"
5448	5448	23 means a new utility-scale solar project as defined in this
5449	5449	24 Section 1-75. The renewable energy credits procured
5450	5450	25 pursuant to this subsection (c-5) may be included or
5451	5451	26 counted for purposes of compliance with the amounts of
5452	5452
5453	5453
5454	5454
5455	5455
5456	5456
5457	5457	HB4687 - 150 - LRB103 36052 LNS 66139 b
5458	5458
5459	5459
5460	5460	HB4687- 151 -LRB103 36052 LNS 66139 b HB4687 - 151 - LRB103 36052 LNS 66139 b
5461	5461	HB4687 - 151 - LRB103 36052 LNS 66139 b
5462	5462	1 renewable energy credits required to be procured pursuant
5463	5463	2 to subsection (c) of this Section to the extent that there
5464	5464	3 are otherwise shortfalls in compliance with such
5465	5465	4 requirements. The procurement of renewable energy credits
5466	5466	5 by electric utilities pursuant to this subsection (c-5)
5467	5467	6 shall be funded solely by revenues collected from the Coal
5468	5468	7 to Solar and Energy Storage Initiative Charge provided for
5469	5469	8 in this subsection (c-5) and subsection (i-5) of Section
5470	5470	9 16-108 of the Public Utilities Act, shall not be funded by
5471	5471	10 revenues collected through any of the other funding
5472	5472	11 mechanisms provided for in subsection (c) of this Section,
5473	5473	12 and shall not be subject to the limitation imposed by
5474	5474	13 subsection (c) on charges to retail customers for costs to
5475	5475	14 procure renewable energy resources pursuant to subsection
5476	5476	15 (c), and shall not be subject to any other requirements or
5477	5477	16 limitations of subsection (c).
5478	5478	17 (2) The Agency shall conduct 2 procurement events to
5479	5479	18 select owners of electric generating facilities meeting
5480	5480	19 the eligibility criteria specified in this subsection
5481	5481	20 (c-5) to enter into long-term contracts to sell renewable
5482	5482	21 energy credits to electric utilities serving more than
5483	5483	22 300,000 retail customers in this State as of January 1,
5484	5484	23 2019. The first procurement event shall be conducted no
5485	5485	24 later than March 31, 2022, unless the Agency elects to
5486	5486	25 delay it, until no later than May 1, 2022, due to its
5487	5487	26 overall volume of work, and shall be to select owners of
5488	5488
5489	5489
5490	5490
5491	5491
5492	5492
5493	5493	HB4687 - 151 - LRB103 36052 LNS 66139 b
5494	5494
5495	5495
5496	5496	HB4687- 152 -LRB103 36052 LNS 66139 b HB4687 - 152 - LRB103 36052 LNS 66139 b
5497	5497	HB4687 - 152 - LRB103 36052 LNS 66139 b
5498	5498	1 electric generating facilities located in this State and
5499	5499	2 south of federal Interstate Highway 80 that meet the
5500	5500	3 eligibility criteria specified in this subsection (c-5).
5501	5501	4 The second procurement event shall be conducted no sooner
5502	5502	5 than September 30, 2022 and no later than October 31, 2022
5503	5503	6 and shall be to select owners of electric generating
5504	5504	7 facilities located anywhere in this State that meet the
5505	5505	8 eligibility criteria specified in this subsection (c-5).
5506	5506	9 The Agency shall establish and announce a time period,
5507	5507	10 which shall begin no later than 30 days prior to the
5508	5508	11 scheduled date for the procurement event, during which
5509	5509	12 applicants may submit applications to be selected as
5510	5510	13 suppliers of renewable energy credits pursuant to this
5511	5511	14 subsection (c-5). The eligibility criteria for selection
5512	5512	15 as a supplier of renewable energy credits pursuant to this
5513	5513	16 subsection (c-5) shall be as follows:
5514	5514	17 (A) The applicant owns an electric generating
5515	5515	18 facility located in this State that: (i) as of January
5516	5516	19 1, 2016, burned coal as its primary fuel to generate
5517	5517	20 electricity; and (ii) has, or had prior to retirement,
5518	5518	21 an electric generating capacity of at least 150
5519	5519	22 megawatts. The electric generating facility can be
5520	5520	23 either: (i) retired as of the date of the procurement
5521	5521	24 event; or (ii) still operating as of the date of the
5522	5522	25 procurement event.
5523	5523	26 (B) The applicant is not (i) an electric
5524	5524
5525	5525
5526	5526
5527	5527
5528	5528
5529	5529	HB4687 - 152 - LRB103 36052 LNS 66139 b
5530	5530
5531	5531
5532	5532	HB4687- 153 -LRB103 36052 LNS 66139 b HB4687 - 153 - LRB103 36052 LNS 66139 b
5533	5533	HB4687 - 153 - LRB103 36052 LNS 66139 b
5534	5534	1 cooperative as defined in Section 3-119 of the Public
5535	5535	2 Utilities Act, or (ii) an entity described in
5536	5536	3 subsection (b)(1) of Section 3-105 of the Public
5537	5537	4 Utilities Act, or an association or consortium of or
5538	5538	5 an entity owned by entities described in (i) or (ii);
5539	5539	6 and the coal-fueled electric generating facility was
5540	5540	7 at one time owned, in whole or in part, by a public
5541	5541	8 utility as defined in Section 3-105 of the Public
5542	5542	9 Utilities Act.
5543	5543	10 (C) If participating in the first procurement
5544	5544	11 event, the applicant proposes and commits to construct
5545	5545	12 and operate, at the site, and if necessary for
5546	5546	13 sufficient space on property adjacent to the existing
5547	5547	14 property, at which the electric generating facility
5548	5548	15 identified in paragraph (A) is located: (i) a new
5549	5549	16 renewable energy facility of at least 20 megawatts but
5550	5550	17 no more than 100 megawatts of electric generating
5551	5551	18 capacity, and (ii) an energy storage facility having a
5552	5552	19 storage capacity equal to at least 2 megawatts and at
5553	5553	20 most 10 megawatts. If participating in the second
5554	5554	21 procurement event, the applicant proposes and commits
5555	5555	22 to construct and operate, at the site, and if
5556	5556	23 necessary for sufficient space on property adjacent to
5557	5557	24 the existing property, at which the electric
5558	5558	25 generating facility identified in paragraph (A) is
5559	5559	26 located: (i) a new renewable energy facility of at
5560	5560
5561	5561
5562	5562
5563	5563
5564	5564
5565	5565	HB4687 - 153 - LRB103 36052 LNS 66139 b
5566	5566
5567	5567
5568	5568	HB4687- 154 -LRB103 36052 LNS 66139 b HB4687 - 154 - LRB103 36052 LNS 66139 b
5569	5569	HB4687 - 154 - LRB103 36052 LNS 66139 b
5570	5570	1 least 5 megawatts but no more than 20 megawatts of
5571	5571	2 electric generating capacity, and (ii) an energy
5572	5572	3 storage facility having a storage capacity equal to at
5573	5573	4 least 0.5 megawatts and at most one megawatt.
5574	5574	5 (D) The applicant agrees that the new renewable
5575	5575	6 energy facility and the energy storage facility will
5576	5576	7 be constructed or installed by a qualified entity or
5577	5577	8 entities in compliance with the requirements of
5578	5578	9 subsection (g) of Section 16-128A of the Public
5579	5579	10 Utilities Act and any rules adopted thereunder.
5580	5580	11 (E) The applicant agrees that personnel operating
5581	5581	12 the new renewable energy facility and the energy
5582	5582	13 storage facility will have the requisite skills,
5583	5583	14 knowledge, training, experience, and competence, which
5584	5584	15 may be demonstrated by completion or current
5585	5585	16 participation and ultimate completion by employees of
5586	5586	17 an accredited or otherwise recognized apprenticeship
5587	5587	18 program for the employee's particular craft, trade, or
5588	5588	19 skill, including through training and education
5589	5589	20 courses and opportunities offered by the owner to
5590	5590	21 employees of the coal-fueled electric generating
5591	5591	22 facility or by previous employment experience
5592	5592	23 performing the employee's particular work skill or
5593	5593	24 function.
5594	5594	25 (F) The applicant commits that not less than the
5595	5595	26 prevailing wage, as determined pursuant to the
5596	5596
5597	5597
5598	5598
5599	5599
5600	5600
5601	5601	HB4687 - 154 - LRB103 36052 LNS 66139 b
5602	5602
5603	5603
5604	5604	HB4687- 155 -LRB103 36052 LNS 66139 b HB4687 - 155 - LRB103 36052 LNS 66139 b
5605	5605	HB4687 - 155 - LRB103 36052 LNS 66139 b
5606	5606	1 Prevailing Wage Act, will be paid to the applicant's
5607	5607	2 employees engaged in construction activities
5608	5608	3 associated with the new renewable energy facility and
5609	5609	4 the new energy storage facility and to the employees
5610	5610	5 of applicant's contractors engaged in construction
5611	5611	6 activities associated with the new renewable energy
5612	5612	7 facility and the new energy storage facility, and
5613	5613	8 that, on or before the commercial operation date of
5614	5614	9 the new renewable energy facility, the applicant shall
5615	5615	10 file a report with the Agency certifying that the
5616	5616	11 requirements of this subparagraph (F) have been met.
5617	5617	12 (G) The applicant commits that if selected, it
5618	5618	13 will negotiate a project labor agreement for the
5619	5619	14 construction of the new renewable energy facility and
5620	5620	15 associated energy storage facility that includes
5621	5621	16 provisions requiring the parties to the agreement to
5622	5622	17 work together to establish diversity threshold
5623	5623	18 requirements and to ensure best efforts to meet
5624	5624	19 diversity targets, improve diversity at the applicable
5625	5625	20 job site, create diverse apprenticeship opportunities,
5626	5626	21 and create opportunities to employ former coal-fired
5627	5627	22 power plant workers.
5628	5628	23 (H) The applicant commits to enter into a contract
5629	5629	24 or contracts for the applicable duration to provide
5630	5630	25 specified numbers of renewable energy credits each
5631	5631	26 year from the new renewable energy facility to
5632	5632
5633	5633
5634	5634
5635	5635
5636	5636
5637	5637	HB4687 - 155 - LRB103 36052 LNS 66139 b
5638	5638
5639	5639
5640	5640	HB4687- 156 -LRB103 36052 LNS 66139 b HB4687 - 156 - LRB103 36052 LNS 66139 b
5641	5641	HB4687 - 156 - LRB103 36052 LNS 66139 b
5642	5642	1 electric utilities that served more than 300,000
5643	5643	2 retail customers in this State as of January 1, 2019,
5644	5644	3 at a price of $30 per renewable energy credit. The
5645	5645	4 price per renewable energy credit shall be fixed at
5646	5646	5 $30 for the applicable duration and the renewable
5647	5647	6 energy credits shall not be indexed renewable energy
5648	5648	7 credits as provided for in item (v) of subparagraph
5649	5649	8 (G) of paragraph (1) of subsection (c) of Section 1-75
5650	5650	9 of this Act. The applicable duration of each contract
5651	5651	10 shall be 20 years, unless the applicant is physically
5652	5652	11 interconnected to the PJM Interconnection, LLC
5653	5653	12 transmission grid and had a generating capacity of at
5654	5654	13 least 1,200 megawatts as of January 1, 2021, in which
5655	5655	14 case the applicable duration of the contract shall be
5656	5656	15 15 years.
5657	5657	16 (I) The applicant's application is certified by an
5658	5658	17 officer of the applicant and by an officer of the
5659	5659	18 applicant's ultimate parent company, if any.
5660	5660	19 (3) An applicant may submit applications to contract
5661	5661	20 to supply renewable energy credits from more than one new
5662	5662	21 renewable energy facility to be constructed at or adjacent
5663	5663	22 to one or more qualifying electric generating facilities
5664	5664	23 owned by the applicant. The Agency may select new
5665	5665	24 renewable energy facilities to be located at or adjacent
5666	5666	25 to the sites of more than one qualifying electric
5667	5667	26 generation facility owned by an applicant to contract with
5668	5668
5669	5669
5670	5670
5671	5671
5672	5672
5673	5673	HB4687 - 156 - LRB103 36052 LNS 66139 b
5674	5674
5675	5675
5676	5676	HB4687- 157 -LRB103 36052 LNS 66139 b HB4687 - 157 - LRB103 36052 LNS 66139 b
5677	5677	HB4687 - 157 - LRB103 36052 LNS 66139 b
5678	5678	1 electric utilities to supply renewable energy credits from
5679	5679	2 such facilities.
5680	5680	3 (4) The Agency shall assess fees to each applicant to
5681	5681	4 recover the Agency's costs incurred in receiving and
5682	5682	5 evaluating applications, conducting the procurement event,
5683	5683	6 developing contracts for sale, delivery and purchase of
5684	5684	7 renewable energy credits, and monitoring the
5685	5685	8 administration of such contracts, as provided for in this
5686	5686	9 subsection (c-5), including fees paid to a procurement
5687	5687	10 administrator retained by the Agency for one or more of
5688	5688	11 these purposes.
5689	5689	12 (5) The Agency shall select the applicants and the new
5690	5690	13 renewable energy facilities to contract with electric
5691	5691	14 utilities to supply renewable energy credits in accordance
5692	5692	15 with this subsection (c-5). In the first procurement
5693	5693	16 event, the Agency shall select applicants and new
5694	5694	17 renewable energy facilities to supply renewable energy
5695	5695	18 credits, at a price of $30 per renewable energy credit,
5696	5696	19 aggregating to no less than 400,000 renewable energy
5697	5697	20 credits per year for the applicable duration, assuming
5698	5698	21 sufficient qualifying applications to supply, in the
5699	5699	22 aggregate, at least that amount of renewable energy
5700	5700	23 credits per year; and not more than 580,000 renewable
5701	5701	24 energy credits per year for the applicable duration. In
5702	5702	25 the second procurement event, the Agency shall select
5703	5703	26 applicants and new renewable energy facilities to supply
5704	5704
5705	5705
5706	5706
5707	5707
5708	5708
5709	5709	HB4687 - 157 - LRB103 36052 LNS 66139 b
5710	5710
5711	5711
5712	5712	HB4687- 158 -LRB103 36052 LNS 66139 b HB4687 - 158 - LRB103 36052 LNS 66139 b
5713	5713	HB4687 - 158 - LRB103 36052 LNS 66139 b
5714	5714	1 renewable energy credits, at a price of $30 per renewable
5715	5715	2 energy credit, aggregating to no more than 625,000
5716	5716	3 renewable energy credits per year less the amount of
5717	5717	4 renewable energy credits each year contracted for as a
5718	5718	5 result of the first procurement event, for the applicable
5719	5719	6 durations. The number of renewable energy credits to be
5720	5720	7 procured as specified in this paragraph (5) shall not be
5721	5721	8 reduced based on renewable energy credits procured in the
5722	5722	9 self-direct renewable energy credit compliance program
5723	5723	10 established pursuant to subparagraph (R) of paragraph (1)
5724	5724	11 of subsection (c) of Section 1-75.
5725	5725	12 (6) The obligation to purchase renewable energy
5726	5726	13 credits from the applicants and their new renewable energy
5727	5727	14 facilities selected by the Agency shall be allocated to
5728	5728	15 the electric utilities based on their respective
5729	5729	16 percentages of kilowatthours delivered to delivery
5730	5730	17 services customers to the aggregate kilowatthour
5731	5731	18 deliveries by the electric utilities to delivery services
5732	5732	19 customers for the year ended December 31, 2021. In order
5733	5733	20 to achieve these allocation percentages between or among
5734	5734	21 the electric utilities, the Agency shall require each
5735	5735	22 applicant that is selected in the procurement event to
5736	5736	23 enter into a contract with each electric utility for the
5737	5737	24 sale and purchase of renewable energy credits from each
5738	5738	25 new renewable energy facility to be constructed and
5739	5739	26 operated by the applicant, with the sale and purchase
5740	5740
5741	5741
5742	5742
5743	5743
5744	5744
5745	5745	HB4687 - 158 - LRB103 36052 LNS 66139 b
5746	5746
5747	5747
5748	5748	HB4687- 159 -LRB103 36052 LNS 66139 b HB4687 - 159 - LRB103 36052 LNS 66139 b
5749	5749	HB4687 - 159 - LRB103 36052 LNS 66139 b
5750	5750	1 obligations under the contracts to aggregate to the total
5751	5751	2 number of renewable energy credits per year to be supplied
5752	5752	3 by the applicant from the new renewable energy facility.
5753	5753	4 (7) The Agency shall submit its proposed selection of
5754	5754	5 applicants, new renewable energy facilities to be
5755	5755	6 constructed, and renewable energy credit amounts for each
5756	5756	7 procurement event to the Commission for approval. The
5757	5757	8 Commission shall, within 2 business days after receipt of
5758	5758	9 the Agency's proposed selections, approve the proposed
5759	5759	10 selections if it determines that the applicants and the
5760	5760	11 new renewable energy facilities to be constructed meet the
5761	5761	12 selection criteria set forth in this subsection (c-5) and
5762	5762	13 that the Agency seeks approval for contracts of applicable
5763	5763	14 durations aggregating to no more than the maximum amount
5764	5764	15 of renewable energy credits per year authorized by this
5765	5765	16 subsection (c-5) for the procurement event, at a price of
5766	5766	17 $30 per renewable energy credit.
5767	5767	18 (8) The Agency, in conjunction with its procurement
5768	5768	19 administrator if one is retained, the electric utilities,
5769	5769	20 and potential applicants for contracts to produce and
5770	5770	21 supply renewable energy credits pursuant to this
5771	5771	22 subsection (c-5), shall develop a standard form contract
5772	5772	23 for the sale, delivery and purchase of renewable energy
5773	5773	24 credits pursuant to this subsection (c-5). Each contract
5774	5774	25 resulting from the first procurement event shall allow for
5775	5775	26 a commercial operation date for the new renewable energy
5776	5776
5777	5777
5778	5778
5779	5779
5780	5780
5781	5781	HB4687 - 159 - LRB103 36052 LNS 66139 b
5782	5782
5783	5783
5784	5784	HB4687- 160 -LRB103 36052 LNS 66139 b HB4687 - 160 - LRB103 36052 LNS 66139 b
5785	5785	HB4687 - 160 - LRB103 36052 LNS 66139 b
5786	5786	1 facility of either June 1, 2023 or June 1, 2024, with such
5787	5787	2 dates subject to adjustment as provided in this paragraph.
5788	5788	3 Each contract resulting from the second procurement event
5789	5789	4 shall provide for a commercial operation date on June 1
5790	5790	5 next occurring up to 48 months after execution of the
5791	5791	6 contract. Each contract shall provide that the owner shall
5792	5792	7 receive payments for renewable energy credits for the
5793	5793	8 applicable durations beginning with the commercial
5794	5794	9 operation date of the new renewable energy facility. The
5795	5795	10 form contract shall provide for adjustments to the
5796	5796	11 commercial operation and payment start dates as needed due
5797	5797	12 to any delays in completing the procurement and
5798	5798	13 contracting processes, in finalizing interconnection
5799	5799	14 agreements and installing interconnection facilities, and
5800	5800	15 in obtaining other necessary governmental permits and
5801	5801	16 approvals. The form contract shall be, to the maximum
5802	5802	17 extent possible, consistent with standard electric
5803	5803	18 industry contracts for sale, delivery, and purchase of
5804	5804	19 renewable energy credits while taking into account the
5805	5805	20 specific requirements of this subsection (c-5). The form
5806	5806	21 contract shall provide for over-delivery and
5807	5807	22 under-delivery of renewable energy credits within
5808	5808	23 reasonable ranges during each 12-month period and penalty,
5809	5809	24 default, and enforcement provisions for failure of the
5810	5810	25 selling party to deliver renewable energy credits as
5811	5811	26 specified in the contract and to comply with the
5812	5812
5813	5813
5814	5814
5815	5815
5816	5816
5817	5817	HB4687 - 160 - LRB103 36052 LNS 66139 b
5818	5818
5819	5819
5820	5820	HB4687- 161 -LRB103 36052 LNS 66139 b HB4687 - 161 - LRB103 36052 LNS 66139 b
5821	5821	HB4687 - 161 - LRB103 36052 LNS 66139 b
5822	5822	1 requirements of this subsection (c-5). The standard form
5823	5823	2 contract shall specify that all renewable energy credits
5824	5824	3 delivered to the electric utility pursuant to the contract
5825	5825	4 shall be retired. The Agency shall make the proposed
5826	5826	5 contracts available for a reasonable period for comment by
5827	5827	6 potential applicants, and shall publish the final form
5828	5828	7 contract at least 30 days before the date of the first
5829	5829	8 procurement event.
5830	5830	9 (9) Coal to Solar and Energy Storage Initiative
5831	5831	10 Charge.
5832	5832	11 (A) By no later than July 1, 2022, each electric
5833	5833	12 utility that served more than 300,000 retail customers
5834	5834	13 in this State as of January 1, 2019 shall file a tariff
5835	5835	14 with the Commission for the billing and collection of
5836	5836	15 a Coal to Solar and Energy Storage Initiative Charge
5837	5837	16 in accordance with subsection (i-5) of Section 16-108
5838	5838	17 of the Public Utilities Act, with such tariff to be
5839	5839	18 effective, following review and approval or
5840	5840	19 modification by the Commission, beginning January 1,
5841	5841	20 2023. The tariff shall provide for the calculation and
5842	5842	21 setting of the electric utility's Coal to Solar and
5843	5843	22 Energy Storage Initiative Charge to collect revenues
5844	5844	23 estimated to be sufficient, in the aggregate, (i) to
5845	5845	24 enable the electric utility to pay for the renewable
5846	5846	25 energy credits it has contracted to purchase in the
5847	5847	26 delivery year beginning June 1, 2023 and each delivery
5848	5848
5849	5849
5850	5850
5851	5851
5852	5852
5853	5853	HB4687 - 161 - LRB103 36052 LNS 66139 b
5854	5854
5855	5855
5856	5856	HB4687- 162 -LRB103 36052 LNS 66139 b HB4687 - 162 - LRB103 36052 LNS 66139 b
5857	5857	HB4687 - 162 - LRB103 36052 LNS 66139 b
5858	5858	1 year thereafter from new renewable energy facilities
5859	5859	2 located at the sites of qualifying electric generating
5860	5860	3 facilities, and (ii) to fund the grant payments to be
5861	5861	4 made in each delivery year by the Department of
5862	5862	5 Commerce and Economic Opportunity, or any successor
5863	5863	6 department or agency, which shall be referred to in
5864	5864	7 this subsection (c-5) as the Department, pursuant to
5865	5865	8 paragraph (10) of this subsection (c-5). The electric
5866	5866	9 utility's tariff shall provide for the billing and
5867	5867	10 collection of the Coal to Solar and Energy Storage
5868	5868	11 Initiative Charge on each kilowatthour of electricity
5869	5869	12 delivered to its delivery services customers within
5870	5870	13 its service territory and shall provide for an annual
5871	5871	14 reconciliation of revenues collected with actual
5872	5872	15 costs, in accordance with subsection (i-5) of Section
5873	5873	16 16-108 of the Public Utilities Act.
5874	5874	17 (B) Each electric utility shall remit on a monthly
5875	5875	18 basis to the State Treasurer, for deposit in the Coal
5876	5876	19 to Solar and Energy Storage Initiative Fund provided
5877	5877	20 for in this subsection (c-5), the electric utility's
5878	5878	21 collections of the Coal to Solar and Energy Storage
5879	5879	22 Initiative Charge in the amount estimated to be needed
5880	5880	23 by the Department for grant payments pursuant to grant
5881	5881	24 contracts entered into by the Department pursuant to
5882	5882	25 paragraph (10) of this subsection (c-5).
5883	5883	26 (10) Coal to Solar and Energy Storage Initiative Fund.
5884	5884
5885	5885
5886	5886
5887	5887
5888	5888
5889	5889	HB4687 - 162 - LRB103 36052 LNS 66139 b
5890	5890
5891	5891
5892	5892	HB4687- 163 -LRB103 36052 LNS 66139 b HB4687 - 163 - LRB103 36052 LNS 66139 b
5893	5893	HB4687 - 163 - LRB103 36052 LNS 66139 b
5894	5894	1 (A) The Coal to Solar and Energy Storage
5895	5895	2 Initiative Fund is established as a special fund in
5896	5896	3 the State treasury. The Coal to Solar and Energy
5897	5897	4 Storage Initiative Fund is authorized to receive, by
5898	5898	5 statutory deposit, that portion specified in item (B)
5899	5899	6 of paragraph (9) of this subsection (c-5) of moneys
5900	5900	7 collected by electric utilities through imposition of
5901	5901	8 the Coal to Solar and Energy Storage Initiative Charge
5902	5902	9 required by this subsection (c-5). The Coal to Solar
5903	5903	10 and Energy Storage Initiative Fund shall be
5904	5904	11 administered by the Department to provide grants to
5905	5905	12 support the installation and operation of energy
5906	5906	13 storage facilities at the sites of qualifying electric
5907	5907	14 generating facilities meeting the criteria specified
5908	5908	15 in this paragraph (10).
5909	5909	16 (B) The Coal to Solar and Energy Storage
5910	5910	17 Initiative Fund shall not be subject to sweeps,
5911	5911	18 administrative charges, or chargebacks, including, but
5912	5912	19 not limited to, those authorized under Section 8h of
5913	5913	20 the State Finance Act, that would in any way result in
5914	5914	21 the transfer of those funds from the Coal to Solar and
5915	5915	22 Energy Storage Initiative Fund to any other fund of
5916	5916	23 this State or in having any such funds utilized for any
5917	5917	24 purpose other than the express purposes set forth in
5918	5918	25 this paragraph (10).
5919	5919	26 (C) The Department shall utilize up to
5920	5920
5921	5921
5922	5922
5923	5923
5924	5924
5925	5925	HB4687 - 163 - LRB103 36052 LNS 66139 b
5926	5926
5927	5927
5928	5928	HB4687- 164 -LRB103 36052 LNS 66139 b HB4687 - 164 - LRB103 36052 LNS 66139 b
5929	5929	HB4687 - 164 - LRB103 36052 LNS 66139 b
5930	5930	1 $280,500,000 in the Coal to Solar and Energy Storage
5931	5931	2 Initiative Fund for grants, assuming sufficient
5932	5932	3 qualifying applicants, to support installation of
5933	5933	4 energy storage facilities at the sites of up to 3
5934	5934	5 qualifying electric generating facilities located in
5935	5935	6 the Midcontinent Independent System Operator, Inc.,
5936	5936	7 region in Illinois and the sites of up to 2 qualifying
5937	5937	8 electric generating facilities located in the PJM
5938	5938	9 Interconnection, LLC region in Illinois that meet the
5939	5939	10 criteria set forth in this subparagraph (C). The
5940	5940	11 criteria for receipt of a grant pursuant to this
5941	5941	12 subparagraph (C) are as follows:
5942	5942	13 (1) the electric generating facility at the
5943	5943	14 site has, or had prior to retirement, an electric
5944	5944	15 generating capacity of at least 150 megawatts;
5945	5945	16 (2) the electric generating facility burns (or
5946	5946	17 burned prior to retirement) coal as its primary
5947	5947	18 source of fuel;
5948	5948	19 (3) if the electric generating facility is
5949	5949	20 retired, it was retired subsequent to January 1,
5950	5950	21 2016;
5951	5951	22 (4) the owner of the electric generating
5952	5952	23 facility has not been selected by the Agency
5953	5953	24 pursuant to this subsection (c-5) of this Section
5954	5954	25 to enter into a contract to sell renewable energy
5955	5955	26 credits to one or more electric utilities from a
5956	5956
5957	5957
5958	5958
5959	5959
5960	5960
5961	5961	HB4687 - 164 - LRB103 36052 LNS 66139 b
5962	5962
5963	5963
5964	5964	HB4687- 165 -LRB103 36052 LNS 66139 b HB4687 - 165 - LRB103 36052 LNS 66139 b
5965	5965	HB4687 - 165 - LRB103 36052 LNS 66139 b
5966	5966	1 new renewable energy facility located or to be
5967	5967	2 located at or adjacent to the site at which the
5968	5968	3 electric generating facility is located;
5969	5969	4 (5) the electric generating facility located
5970	5970	5 at the site was at one time owned, in whole or in
5971	5971	6 part, by a public utility as defined in Section
5972	5972	7 3-105 of the Public Utilities Act;
5973	5973	8 (6) the electric generating facility at the
5974	5974	9 site is not owned by (i) an electric cooperative
5975	5975	10 as defined in Section 3-119 of the Public
5976	5976	11 Utilities Act, or (ii) an entity described in
5977	5977	12 subsection (b)(1) of Section 3-105 of the Public
5978	5978	13 Utilities Act, or an association or consortium of
5979	5979	14 or an entity owned by entities described in items
5980	5980	15 (i) or (ii);
5981	5981	16 (7) the proposed energy storage facility at
5982	5982	17 the site will have energy storage capacity of at
5983	5983	18 least 37 megawatts;
5984	5984	19 (8) the owner commits to place the energy
5985	5985	20 storage facility into commercial operation on
5986	5986	21 either June 1, 2023, June 1, 2024, or June 1, 2025,
5987	5987	22 with such date subject to adjustment as needed due
5988	5988	23 to any delays in completing the grant contracting
5989	5989	24 process, in finalizing interconnection agreements
5990	5990	25 and in installing interconnection facilities, and
5991	5991	26 in obtaining necessary governmental permits and
5992	5992
5993	5993
5994	5994
5995	5995
5996	5996
5997	5997	HB4687 - 165 - LRB103 36052 LNS 66139 b
5998	5998
5999	5999
6000	6000	HB4687- 166 -LRB103 36052 LNS 66139 b HB4687 - 166 - LRB103 36052 LNS 66139 b
6001	6001	HB4687 - 166 - LRB103 36052 LNS 66139 b
6002	6002	1 approvals;
6003	6003	2 (9) the owner agrees that the new energy
6004	6004	3 storage facility will be constructed or installed
6005	6005	4 by a qualified entity or entities consistent with
6006	6006	5 the requirements of subsection (g) of Section
6007	6007	6 16-128A of the Public Utilities Act and any rules
6008	6008	7 adopted under that Section;
6009	6009	8 (10) the owner agrees that personnel operating
6010	6010	9 the energy storage facility will have the
6011	6011	10 requisite skills, knowledge, training, experience,
6012	6012	11 and competence, which may be demonstrated by
6013	6013	12 completion or current participation and ultimate
6014	6014	13 completion by employees of an accredited or
6015	6015	14 otherwise recognized apprenticeship program for
6016	6016	15 the employee's particular craft, trade, or skill,
6017	6017	16 including through training and education courses
6018	6018	17 and opportunities offered by the owner to
6019	6019	18 employees of the coal-fueled electric generating
6020	6020	19 facility or by previous employment experience
6021	6021	20 performing the employee's particular work skill or
6022	6022	21 function;
6023	6023	22 (11) the owner commits that not less than the
6024	6024	23 prevailing wage, as determined pursuant to the
6025	6025	24 Prevailing Wage Act, will be paid to the owner's
6026	6026	25 employees engaged in construction activities
6027	6027	26 associated with the new energy storage facility
6028	6028
6029	6029
6030	6030
6031	6031
6032	6032
6033	6033	HB4687 - 166 - LRB103 36052 LNS 66139 b
6034	6034
6035	6035
6036	6036	HB4687- 167 -LRB103 36052 LNS 66139 b HB4687 - 167 - LRB103 36052 LNS 66139 b
6037	6037	HB4687 - 167 - LRB103 36052 LNS 66139 b
6038	6038	1 and to the employees of the owner's contractors
6039	6039	2 engaged in construction activities associated with
6040	6040	3 the new energy storage facility, and that, on or
6041	6041	4 before the commercial operation date of the new
6042	6042	5 energy storage facility, the owner shall file a
6043	6043	6 report with the Department certifying that the
6044	6044	7 requirements of this subparagraph (11) have been
6045	6045	8 met; and
6046	6046	9 (12) the owner commits that if selected to
6047	6047	10 receive a grant, it will negotiate a project labor
6048	6048	11 agreement for the construction of the new energy
6049	6049	12 storage facility that includes provisions
6050	6050	13 requiring the parties to the agreement to work
6051	6051	14 together to establish diversity threshold
6052	6052	15 requirements and to ensure best efforts to meet
6053	6053	16 diversity targets, improve diversity at the
6054	6054	17 applicable job site, create diverse apprenticeship
6055	6055	18 opportunities, and create opportunities to employ
6056	6056	19 former coal-fired power plant workers.
6057	6057	20 The Department shall accept applications for this
6058	6058	21 grant program until March 31, 2022 and shall announce
6059	6059	22 the award of grants no later than June 1, 2022. The
6060	6060	23 Department shall make the grant payments to a
6061	6061	24 recipient in equal annual amounts for 10 years
6062	6062	25 following the date the energy storage facility is
6063	6063	26 placed into commercial operation. The annual grant
6064	6064
6065	6065
6066	6066
6067	6067
6068	6068
6069	6069	HB4687 - 167 - LRB103 36052 LNS 66139 b
6070	6070
6071	6071
6072	6072	HB4687- 168 -LRB103 36052 LNS 66139 b HB4687 - 168 - LRB103 36052 LNS 66139 b
6073	6073	HB4687 - 168 - LRB103 36052 LNS 66139 b
6074	6074	1 payments to a qualifying energy storage facility shall
6075	6075	2 be $110,000 per megawatt of energy storage capacity,
6076	6076	3 with total annual grant payments pursuant to this
6077	6077	4 subparagraph (C) for qualifying energy storage
6078	6078	5 facilities not to exceed $28,050,000 in any year.
6079	6079	6 (D) Grants of funding for energy storage
6080	6080	7 facilities pursuant to subparagraph (C) of this
6081	6081	8 paragraph (10), from the Coal to Solar and Energy
6082	6082	9 Storage Initiative Fund, shall be memorialized in
6083	6083	10 grant contracts between the Department and the
6084	6084	11 recipient. The grant contracts shall specify the date
6085	6085	12 or dates in each year on which the annual grant
6086	6086	13 payments shall be paid.
6087	6087	14 (E) All disbursements from the Coal to Solar and
6088	6088	15 Energy Storage Initiative Fund shall be made only upon
6089	6089	16 warrants of the Comptroller drawn upon the Treasurer
6090	6090	17 as custodian of the Fund upon vouchers signed by the
6091	6091	18 Director of the Department or by the person or persons
6092	6092	19 designated by the Director of the Department for that
6093	6093	20 purpose. The Comptroller is authorized to draw the
6094	6094	21 warrants upon vouchers so signed. The Treasurer shall
6095	6095	22 accept all written warrants so signed and shall be
6096	6096	23 released from liability for all payments made on those
6097	6097	24 warrants.
6098	6098	25 (11) Diversity, equity, and inclusion plans.
6099	6099	26 (A) Each applicant selected in a procurement event
6100	6100
6101	6101
6102	6102
6103	6103
6104	6104
6105	6105	HB4687 - 168 - LRB103 36052 LNS 66139 b
6106	6106
6107	6107
6108	6108	HB4687- 169 -LRB103 36052 LNS 66139 b HB4687 - 169 - LRB103 36052 LNS 66139 b
6109	6109	HB4687 - 169 - LRB103 36052 LNS 66139 b
6110	6110	1 to contract to supply renewable energy credits in
6111	6111	2 accordance with this subsection (c-5) and each owner
6112	6112	3 selected by the Department to receive a grant or
6113	6113	4 grants to support the construction and operation of a
6114	6114	5 new energy storage facility or facilities in
6115	6115	6 accordance with this subsection (c-5) shall, within 60
6116	6116	7 days following the Commission's approval of the
6117	6117	8 applicant to contract to supply renewable energy
6118	6118	9 credits or within 60 days following execution of a
6119	6119	10 grant contract with the Department, as applicable,
6120	6120	11 submit to the Commission a diversity, equity, and
6121	6121	12 inclusion plan setting forth the applicant's or
6122	6122	13 owner's numeric goals for the diversity composition of
6123	6123	14 its supplier entities for the new renewable energy
6124	6124	15 facility or new energy storage facility, as
6125	6125	16 applicable, which shall be referred to for purposes of
6126	6126	17 this paragraph (11) as the project, and the
6127	6127	18 applicant's or owner's action plan and schedule for
6128	6128	19 achieving those goals.
6129	6129	20 (B) For purposes of this paragraph (11), diversity
6130	6130	21 composition shall be based on the percentage, which
6131	6131	22 shall be a minimum of 25%, of eligible expenditures
6132	6132	23 for contract awards for materials and services (which
6133	6133	24 shall be defined in the plan) to business enterprises
6134	6134	25 owned by minority persons, women, or persons with
6135	6135	26 disabilities as defined in Section 2 of the Business
6136	6136
6137	6137
6138	6138
6139	6139
6140	6140
6141	6141	HB4687 - 169 - LRB103 36052 LNS 66139 b
6142	6142
6143	6143
6144	6144	HB4687- 170 -LRB103 36052 LNS 66139 b HB4687 - 170 - LRB103 36052 LNS 66139 b
6145	6145	HB4687 - 170 - LRB103 36052 LNS 66139 b
6146	6146	1 Enterprise for Minorities, Women, and Persons with
6147	6147	2 Disabilities Act, to LGBTQ business enterprises, to
6148	6148	3 veteran-owned business enterprises, and to business
6149	6149	4 enterprises located in environmental justice
6150	6150	5 communities. The diversity composition goals of the
6151	6151	6 plan may include eligible expenditures in areas for
6152	6152	7 vendor or supplier opportunities in addition to
6153	6153	8 development and construction of the project, and may
6154	6154	9 exclude from eligible expenditures materials and
6155	6155	10 services with limited market availability, limited
6156	6156	11 production and availability from suppliers in the
6157	6157	12 United States, such as solar panels and storage
6158	6158	13 batteries, and material and services that are subject
6159	6159	14 to critical energy infrastructure or cybersecurity
6160	6160	15 requirements or restrictions. The plan may provide
6161	6161	16 that the diversity composition goals may be met
6162	6162	17 through Tier 1 Direct or Tier 2 subcontracting
6163	6163	18 expenditures or a combination thereof for the project.
6164	6164	19 (C) The plan shall provide for, but not be limited
6165	6165	20 to: (i) internal initiatives, including multi-tier
6166	6166	21 initiatives, by the applicant or owner, or by its
6167	6167	22 engineering, procurement and construction contractor
6168	6168	23 if one is used for the project, which for purposes of
6169	6169	24 this paragraph (11) shall be referred to as the EPC
6170	6170	25 contractor, to enable diverse businesses to be
6171	6171	26 considered fairly for selection to provide materials
6172	6172
6173	6173
6174	6174
6175	6175
6176	6176
6177	6177	HB4687 - 170 - LRB103 36052 LNS 66139 b
6178	6178
6179	6179
6180	6180	HB4687- 171 -LRB103 36052 LNS 66139 b HB4687 - 171 - LRB103 36052 LNS 66139 b
6181	6181	HB4687 - 171 - LRB103 36052 LNS 66139 b
6182	6182	1 and services; (ii) requirements for the applicant or
6183	6183	2 owner or its EPC contractor to proactively solicit and
6184	6184	3 utilize diverse businesses to provide materials and
6185	6185	4 services; and (iii) requirements for the applicant or
6186	6186	5 owner or its EPC contractor to hire a diverse
6187	6187	6 workforce for the project. The plan shall include a
6188	6188	7 description of the applicant's or owner's diversity
6189	6189	8 recruiting efforts both for the project and for other
6190	6190	9 areas of the applicant's or owner's business
6191	6191	10 operations. The plan shall provide for the imposition
6192	6192	11 of financial penalties on the applicant's or owner's
6193	6193	12 EPC contractor for failure to exercise best efforts to
6194	6194	13 comply with and execute the EPC contractor's diversity
6195	6195	14 obligations under the plan. The plan may provide for
6196	6196	15 the applicant or owner to set aside a portion of the
6197	6197	16 work on the project to serve as an incubation program
6198	6198	17 for qualified businesses, as specified in the plan,
6199	6199	18 owned by minority persons, women, persons with
6200	6200	19 disabilities, LGBTQ persons, and veterans, and
6201	6201	20 businesses located in environmental justice
6202	6202	21 communities, seeking to enter the renewable energy
6203	6203	22 industry.
6204	6204	23 (D) The applicant or owner may submit a revised or
6205	6205	24 updated plan to the Commission from time to time as
6206	6206	25 circumstances warrant. The applicant or owner shall
6207	6207	26 file annual reports with the Commission detailing the
6208	6208
6209	6209
6210	6210
6211	6211
6212	6212
6213	6213	HB4687 - 171 - LRB103 36052 LNS 66139 b
6214	6214
6215	6215
6216	6216	HB4687- 172 -LRB103 36052 LNS 66139 b HB4687 - 172 - LRB103 36052 LNS 66139 b
6217	6217	HB4687 - 172 - LRB103 36052 LNS 66139 b
6218	6218	1 applicant's or owner's progress in implementing its
6219	6219	2 plan and achieving its goals and any modifications the
6220	6220	3 applicant or owner has made to its plan to better
6221	6221	4 achieve its diversity, equity and inclusion goals. The
6222	6222	5 applicant or owner shall file a final report on the
6223	6223	6 fifth June 1 following the commercial operation date
6224	6224	7 of the new renewable energy resource or new energy
6225	6225	8 storage facility, but the applicant or owner shall
6226	6226	9 thereafter continue to be subject to applicable
6227	6227	10 reporting requirements of Section 5-117 of the Public
6228	6228	11 Utilities Act.
6229	6229	12 (c-10) (Blank). Equity accountability system. It is the
6230	6230	13 purpose of this subsection (c-10) to create an equity
6231	6231	14 accountability system, which includes the minimum equity
6232	6232	15 standards for all renewable energy procurements, the equity
6233	6233	16 category of the Adjustable Block Program, and the equity
6234	6234	17 prioritization for noncompetitive procurements, that is
6235	6235	18 successful in advancing priority access to the clean energy
6236	6236	19 economy for businesses and workers from communities that have
6237	6237	20 been excluded from economic opportunities in the energy
6238	6238	21 sector, have been subject to disproportionate levels of
6239	6239	22 pollution, and have disproportionately experienced negative
6240	6240	23 public health outcomes. Further, it is the purpose of this
6241	6241	24 subsection to ensure that this equity accountability system is
6242	6242	25 successful in advancing equity across Illinois by providing
6243	6243	26 access to the clean energy economy for businesses and workers
6244	6244
6245	6245
6246	6246
6247	6247
6248	6248
6249	6249	HB4687 - 172 - LRB103 36052 LNS 66139 b
6250	6250
6251	6251
6252	6252	HB4687- 173 -LRB103 36052 LNS 66139 b HB4687 - 173 - LRB103 36052 LNS 66139 b
6253	6253	HB4687 - 173 - LRB103 36052 LNS 66139 b
6254	6254	1 from communities that have been historically excluded from
6255	6255	2 economic opportunities in the energy sector, have been subject
6256	6256	3 to disproportionate levels of pollution, and have
6257	6257	4 disproportionately experienced negative public health
6258	6258	5 outcomes.
6259	6259	6 (1) Minimum equity standards. The Agency shall create
6260	6260	7 programs with the purpose of increasing access to and
6261	6261	8 development of equity eligible contractors, who are prime
6262	6262	9 contractors and subcontractors, across all of the programs
6263	6263	10 it manages. All applications for renewable energy credit
6264	6264	11 procurements shall comply with specific minimum equity
6265	6265	12 commitments. Starting in the delivery year immediately
6266	6266	13 following the next long-term renewable resources
6267	6267	14 procurement plan, at least 10% of the project workforce
6268	6268	15 for each entity participating in a procurement program
6269	6269	16 outlined in this subsection (c-10) must be done by equity
6270	6270	17 eligible persons or equity eligible contractors. The
6271	6271	18 Agency shall increase the minimum percentage each delivery
6272	6272	19 year thereafter by increments that ensure a statewide
6273	6273	20 average of 30% of the project workforce for each entity
6274	6274	21 participating in a procurement program is done by equity
6275	6275	22 eligible persons or equity eligible contractors by 2030.
6276	6276	23 The Agency shall propose a schedule of percentage
6277	6277	24 increases to the minimum equity standards in its draft
6278	6278	25 revised renewable energy resources procurement plan
6279	6279	26 submitted to the Commission for approval pursuant to
6280	6280
6281	6281
6282	6282
6283	6283
6284	6284
6285	6285	HB4687 - 173 - LRB103 36052 LNS 66139 b
6286	6286
6287	6287
6288	6288	HB4687- 174 -LRB103 36052 LNS 66139 b HB4687 - 174 - LRB103 36052 LNS 66139 b
6289	6289	HB4687 - 174 - LRB103 36052 LNS 66139 b
6290	6290	1 paragraph (5) of subsection (b) of Section 16-111.5 of the
6291	6291	2 Public Utilities Act. In determining these annual
6292	6292	3 increases, the Agency shall have the discretion to
6293	6293	4 establish different minimum equity standards for different
6294	6294	5 types of procurements and different regions of the State
6295	6295	6 if the Agency finds that doing so will further the
6296	6296	7 purposes of this subsection (c-10). The proposed schedule
6297	6297	8 of annual increases shall be revisited and updated on an
6298	6298	9 annual basis. Revisions shall be developed with
6299	6299	10 stakeholder input, including from equity eligible persons,
6300	6300	11 equity eligible contractors, clean energy industry
6301	6301	12 representatives, and community-based organizations that
6302	6302	13 work with such persons and contractors.
6303	6303	14 (A) At the start of each delivery year, the Agency
6304	6304	15 shall require a compliance plan from each entity
6305	6305	16 participating in a procurement program of subsection
6306	6306	17 (c) of this Section that demonstrates how they will
6307	6307	18 achieve compliance with the minimum equity standard
6308	6308	19 percentage for work completed in that delivery year.
6309	6309	20 If an entity applies for its approved vendor or
6310	6310	21 designee status between delivery years, the Agency
6311	6311	22 shall require a compliance plan at the time of
6312	6312	23 application.
6313	6313	24 (B) Halfway through each delivery year, the Agency
6314	6314	25 shall require each entity participating in a
6315	6315	26 procurement program to confirm that it will achieve
6316	6316
6317	6317
6318	6318
6319	6319
6320	6320
6321	6321	HB4687 - 174 - LRB103 36052 LNS 66139 b
6322	6322
6323	6323
6324	6324	HB4687- 175 -LRB103 36052 LNS 66139 b HB4687 - 175 - LRB103 36052 LNS 66139 b
6325	6325	HB4687 - 175 - LRB103 36052 LNS 66139 b
6326	6326	1 compliance in that delivery year, when applicable. The
6327	6327	2 Agency may offer corrective action plans to entities
6328	6328	3 that are not on track to achieve compliance.
6329	6329	4 (C) At the end of each delivery year, each entity
6330	6330	5 participating and completing work in that delivery
6331	6331	6 year in a procurement program of subsection (c) shall
6332	6332	7 submit a report to the Agency that demonstrates how it
6333	6333	8 achieved compliance with the minimum equity standards
6334	6334	9 percentage for that delivery year.
6335	6335	10 (D) The Agency shall prohibit participation in
6336	6336	11 procurement programs by an approved vendor or
6337	6337	12 designee, as applicable, or entities with which an
6338	6338	13 approved vendor or designee, as applicable, shares a
6339	6339	14 common parent company if an approved vendor or
6340	6340	15 designee, as applicable, failed to meet the minimum
6341	6341	16 equity standards for the prior delivery year. Waivers
6342	6342	17 approved for lack of equity eligible persons or equity
6343	6343	18 eligible contractors in a geographic area of a project
6344	6344	19 shall not count against the approved vendor or
6345	6345	20 designee. The Agency shall offer a corrective action
6346	6346	21 plan for any such entities to assist them in obtaining
6347	6347	22 compliance and shall allow continued access to
6348	6348	23 procurement programs upon an approved vendor or
6349	6349	24 designee demonstrating compliance.
6350	6350	25 (E) The Agency shall pursue efficiencies achieved
6351	6351	26 by combining with other approved vendor or designee
6352	6352
6353	6353
6354	6354
6355	6355
6356	6356
6357	6357	HB4687 - 175 - LRB103 36052 LNS 66139 b
6358	6358
6359	6359
6360	6360	HB4687- 176 -LRB103 36052 LNS 66139 b HB4687 - 176 - LRB103 36052 LNS 66139 b
6361	6361	HB4687 - 176 - LRB103 36052 LNS 66139 b
6362	6362	1 reporting.
6363	6363	2 (2) Equity accountability system within the Adjustable
6364	6364	3 Block program. The equity category described in item (vi)
6365	6365	4 of subparagraph (K) of subsection (c) is only available to
6366	6366	5 applicants that are equity eligible contractors.
6367	6367	6 (3) Equity accountability system within competitive
6368	6368	7 procurements. Through its long-term renewable resources
6369	6369	8 procurement plan, the Agency shall develop requirements
6370	6370	9 for ensuring that competitive procurement processes,
6371	6371	10 including utility-scale solar, utility-scale wind, and
6372	6372	11 brownfield site photovoltaic projects, advance the equity
6373	6373	12 goals of this subsection (c-10). Subject to Commission
6374	6374	13 approval, the Agency shall develop bid application
6375	6375	14 requirements and a bid evaluation methodology for ensuring
6376	6376	15 that utilization of equity eligible contractors, whether
6377	6377	16 as bidders or as participants on project development, is
6378	6378	17 optimized, including requiring that winning or successful
6379	6379	18 applicants for utility-scale projects are or will partner
6380	6380	19 with equity eligible contractors and giving preference to
6381	6381	20 bids through which a higher portion of contract value
6382	6382	21 flows to equity eligible contractors. To the extent
6383	6383	22 practicable, entities participating in competitive
6384	6384	23 procurements shall also be required to meet all the equity
6385	6385	24 accountability requirements for approved vendors and their
6386	6386	25 designees under this subsection (c-10). In developing
6387	6387	26 these requirements, the Agency shall also consider whether
6388	6388
6389	6389
6390	6390
6391	6391
6392	6392
6393	6393	HB4687 - 176 - LRB103 36052 LNS 66139 b
6394	6394
6395	6395
6396	6396	HB4687- 177 -LRB103 36052 LNS 66139 b HB4687 - 177 - LRB103 36052 LNS 66139 b
6397	6397	HB4687 - 177 - LRB103 36052 LNS 66139 b
6398	6398	1 equity goals can be further advanced through additional
6399	6399	2 measures.
6400	6400	3 (4) In the first revision to the long-term renewable
6401	6401	4 energy resources procurement plan and each revision
6402	6402	5 thereafter, the Agency shall include the following:
6403	6403	6 (A) The current status and number of equity
6404	6404	7 eligible contractors listed in the Energy Workforce
6405	6405	8 Equity Database designed in subsection (c-25),
6406	6406	9 including the number of equity eligible contractors
6407	6407	10 with current certifications as issued by the Agency.
6408	6408	11 (B) A mechanism for measuring, tracking, and
6409	6409	12 reporting project workforce at the approved vendor or
6410	6410	13 designee level, as applicable, which shall include a
6411	6411	14 measurement methodology and records to be made
6412	6412	15 available for audit by the Agency or the Program
6413	6413	16 Administrator.
6414	6414	17 (C) A program for approved vendors, designees,
6415	6415	18 eligible persons, and equity eligible contractors to
6416	6416	19 receive trainings, guidance, and other support from
6417	6417	20 the Agency or its designee regarding the equity
6418	6418	21 category outlined in item (vi) of subparagraph (K) of
6419	6419	22 paragraph (1) of subsection (c) and in meeting the
6420	6420	23 minimum equity standards of this subsection (c-10).
6421	6421	24 (D) A process for certifying equity eligible
6422	6422	25 contractors and equity eligible persons. The
6423	6423	26 certification process shall coordinate with the Energy
6424	6424
6425	6425
6426	6426
6427	6427
6428	6428
6429	6429	HB4687 - 177 - LRB103 36052 LNS 66139 b
6430	6430
6431	6431
6432	6432	HB4687- 178 -LRB103 36052 LNS 66139 b HB4687 - 178 - LRB103 36052 LNS 66139 b
6433	6433	HB4687 - 178 - LRB103 36052 LNS 66139 b
6434	6434	1 Workforce Equity Database set forth in subsection
6435	6435	2 (c-25).
6436	6436	3 (E) An application for waiver of the minimum
6437	6437	4 equity standards of this subsection, which the Agency
6438	6438	5 shall have the discretion to grant in rare
6439	6439	6 circumstances. The Agency may grant such a waiver
6440	6440	7 where the applicant provides evidence of significant
6441	6441	8 efforts toward meeting the minimum equity commitment,
6442	6442	9 including: use of the Energy Workforce Equity
6443	6443	10 Database; efforts to hire or contract with entities
6444	6444	11 that hire eligible persons; and efforts to establish
6445	6445	12 contracting relationships with eligible contractors.
6446	6446	13 The Agency shall support applicants in understanding
6447	6447	14 the Energy Workforce Equity Database and other
6448	6448	15 resources for pursuing compliance of the minimum
6449	6449	16 equity standards. Waivers shall be project-specific,
6450	6450	17 unless the Agency deems it necessary to grant a waiver
6451	6451	18 across a portfolio of projects, and in effect for no
6452	6452	19 longer than one year. Any waiver extension or
6453	6453	20 subsequent waiver request from an applicant shall be
6454	6454	21 subject to the requirements of this Section and shall
6455	6455	22 specify efforts made to reach compliance. When
6456	6456	23 considering whether to grant a waiver, and to what
6457	6457	24 extent, the Agency shall consider the degree to which
6458	6458	25 similarly situated applicants have been able to meet
6459	6459	26 these minimum equity commitments. For repeated waiver
6460	6460
6461	6461
6462	6462
6463	6463
6464	6464
6465	6465	HB4687 - 178 - LRB103 36052 LNS 66139 b
6466	6466
6467	6467
6468	6468	HB4687- 179 -LRB103 36052 LNS 66139 b HB4687 - 179 - LRB103 36052 LNS 66139 b
6469	6469	HB4687 - 179 - LRB103 36052 LNS 66139 b
6470	6470	1 requests for specific lack of eligible persons or
6471	6471	2 eligible contractors available, the Agency shall make
6472	6472	3 recommendations to target recruitment to add such
6473	6473	4 eligible persons or eligible contractors to the
6474	6474	5 database.
6475	6475	6 (5) The Agency shall collect information about work on
6476	6476	7 projects or portfolios of projects subject to these
6477	6477	8 minimum equity standards to ensure compliance with this
6478	6478	9 subsection (c-10). Reporting in furtherance of this
6479	6479	10 requirement may be combined with other annual reporting
6480	6480	11 requirements. Such reporting shall include proof of
6481	6481	12 certification of each equity eligible contractor or equity
6482	6482	13 eligible person during the applicable time period.
6483	6483	14 (6) The Agency shall keep confidential all information
6484	6484	15 and communication that provides private or personal
6485	6485	16 information.
6486	6486	17 (7) Modifications to the equity accountability system.
6487	6487	18 As part of the update of the long-term renewable resources
6488	6488	19 procurement plan to be initiated in 2023, or sooner if the
6489	6489	20 Agency deems necessary, the Agency shall determine the
6490	6490	21 extent to which the equity accountability system described
6491	6491	22 in this subsection (c-10) has advanced the goals of this
6492	6492	23 amendatory Act of the 102nd General Assembly, including
6493	6493	24 through the inclusion of equity eligible persons and
6494	6494	25 equity eligible contractors in renewable energy credit
6495	6495	26 projects. If the Agency finds that the equity
6496	6496
6497	6497
6498	6498
6499	6499
6500	6500
6501	6501	HB4687 - 179 - LRB103 36052 LNS 66139 b
6502	6502
6503	6503
6504	6504	HB4687- 180 -LRB103 36052 LNS 66139 b HB4687 - 180 - LRB103 36052 LNS 66139 b
6505	6505	HB4687 - 180 - LRB103 36052 LNS 66139 b
6506	6506	1 accountability system has failed to meet those goals to
6507	6507	2 its fullest potential, the Agency may revise the following
6508	6508	3 criteria for future Agency procurements: (A) the
6509	6509	4 percentage of project workforce, or other appropriate
6510	6510	5 workforce measure, certified as equity eligible persons or
6511	6511	6 equity eligible contractors; (B) definitions for equity
6512	6512	7 investment eligible persons and equity investment eligible
6513	6513	8 community; and (C) such other modifications necessary to
6514	6514	9 advance the goals of this amendatory Act of the 102nd
6515	6515	10 General Assembly effectively. Such revised criteria may
6516	6516	11 also establish distinct equity accountability systems for
6517	6517	12 different types of procurements or different regions of
6518	6518	13 the State if the Agency finds that doing so will further
6519	6519	14 the purposes of such programs. Revisions shall be
6520	6520	15 developed with stakeholder input, including from equity
6521	6521	16 eligible persons, equity eligible contractors, and
6522	6522	17 community-based organizations that work with such persons
6523	6523	18 and contractors.
6524	6524	19 (c-15) (Blank). Racial discrimination elimination powers
6525	6525	20 and process.
6526	6526	21 (1) Purpose. It is the purpose of this subsection to
6527	6527	22 empower the Agency and other State actors to remedy racial
6528	6528	23 discrimination in Illinois' clean energy economy as
6529	6529	24 effectively and expediently as possible, including through
6530	6530	25 the use of race-conscious remedies, such as race-conscious
6531	6531	26 contracting and hiring goals, as consistent with State and
6532	6532
6533	6533
6534	6534
6535	6535
6536	6536
6537	6537	HB4687 - 180 - LRB103 36052 LNS 66139 b
6538	6538
6539	6539
6540	6540	HB4687- 181 -LRB103 36052 LNS 66139 b HB4687 - 181 - LRB103 36052 LNS 66139 b
6541	6541	HB4687 - 181 - LRB103 36052 LNS 66139 b
6542	6542	1 federal law.
6543	6543	2 (2) Racial disparity and discrimination review
6544	6544	3 process.
6545	6545	4 (A) Within one year after awarding contracts using
6546	6546	5 the equity actions processes established in this
6547	6547	6 Section, the Agency shall publish a report evaluating
6548	6548	7 the effectiveness of the equity actions point criteria
6549	6549	8 of this Section in increasing participation of equity
6550	6550	9 eligible persons and equity eligible contractors. The
6551	6551	10 report shall disaggregate participating workers and
6552	6552	11 contractors by race and ethnicity. The report shall be
6553	6553	12 forwarded to the Governor, the General Assembly, and
6554	6554	13 the Illinois Commerce Commission and be made available
6555	6555	14 to the public.
6556	6556	15 (B) As soon as is practicable thereafter, the
6557	6557	16 Agency, in consultation with the Department of
6558	6558	17 Commerce and Economic Opportunity, Department of
6559	6559	18 Labor, and other agencies that may be relevant, shall
6560	6560	19 commission and publish a disparity and availability
6561	6561	20 study that measures the presence and impact of
6562	6562	21 discrimination on minority businesses and workers in
6563	6563	22 Illinois' clean energy economy. The Agency may hire
6564	6564	23 consultants and experts to conduct the disparity and
6565	6565	24 availability study, with the retention of those
6566	6566	25 consultants and experts exempt from the requirements
6567	6567	26 of Section 20-10 of the Illinois Procurement Code. The
6568	6568
6569	6569
6570	6570
6571	6571
6572	6572
6573	6573	HB4687 - 181 - LRB103 36052 LNS 66139 b
6574	6574
6575	6575
6576	6576	HB4687- 182 -LRB103 36052 LNS 66139 b HB4687 - 182 - LRB103 36052 LNS 66139 b
6577	6577	HB4687 - 182 - LRB103 36052 LNS 66139 b
6578	6578	1 Illinois Power Agency shall forward a copy of its
6579	6579	2 findings and recommendations to the Governor, the
6580	6580	3 General Assembly, and the Illinois Commerce
6581	6581	4 Commission. If the disparity and availability study
6582	6582	5 establishes a strong basis in evidence that there is
6583	6583	6 discrimination in Illinois' clean energy economy, the
6584	6584	7 Agency, Department of Commerce and Economic
6585	6585	8 Opportunity, Department of Labor, Department of
6586	6586	9 Corrections, and other appropriate agencies shall take
6587	6587	10 appropriate remedial actions, including race-conscious
6588	6588	11 remedial actions as consistent with State and federal
6589	6589	12 law, to effectively remedy this discrimination. Such
6590	6590	13 remedies may include modification of the equity
6591	6591	14 accountability system as described in subsection
6592	6592	15 (c-10).
6593	6593	16 (c-20) (Blank). Program data collection.
6594	6594	17 (1) Purpose. Data collection, data analysis, and
6595	6595	18 reporting are critical to ensure that the benefits of the
6596	6596	19 clean energy economy provided to Illinois residents and
6597	6597	20 businesses are equitably distributed across the State. The
6598	6598	21 Agency shall collect data from program applicants in order
6599	6599	22 to track and improve equitable distribution of benefits
6600	6600	23 across Illinois communities for all procurements the
6601	6601	24 Agency conducts. The Agency shall use this data to, among
6602	6602	25 other things, measure any potential impact of racial
6603	6603	26 discrimination on the distribution of benefits and provide
6604	6604
6605	6605
6606	6606
6607	6607
6608	6608
6609	6609	HB4687 - 182 - LRB103 36052 LNS 66139 b
6610	6610
6611	6611
6612	6612	HB4687- 183 -LRB103 36052 LNS 66139 b HB4687 - 183 - LRB103 36052 LNS 66139 b
6613	6613	HB4687 - 183 - LRB103 36052 LNS 66139 b
6614	6614	1 information necessary to correct any discrimination
6615	6615	2 through methods consistent with State and federal law.
6616	6616	3 (2) Agency collection of program data. The Agency
6617	6617	4 shall collect demographic and geographic data for each
6618	6618	5 entity awarded contracts under any Agency-administered
6619	6619	6 program.
6620	6620	7 (3) Required information to be collected. The Agency
6621	6621	8 shall collect the following information from applicants
6622	6622	9 and program participants where applicable:
6623	6623	10 (A) demographic information, including racial or
6624	6624	11 ethnic identity for real persons employed, contracted,
6625	6625	12 or subcontracted through the program and owners of
6626	6626	13 businesses or entities that apply to receive renewable
6627	6627	14 energy credits from the Agency;
6628	6628	15 (B) geographic location of the residency of real
6629	6629	16 persons employed, contracted, or subcontracted through
6630	6630	17 the program and geographic location of the
6631	6631	18 headquarters of the business or entity that applies to
6632	6632	19 receive renewable energy credits from the Agency; and
6633	6633	20 (C) any other information the Agency determines is
6634	6634	21 necessary for the purpose of achieving the purpose of
6635	6635	22 this subsection.
6636	6636	23 (4) Publication of collected information. The Agency
6637	6637	24 shall publish, at least annually, information on the
6638	6638	25 demographics of program participants on an aggregate
6639	6639	26 basis.
6640	6640
6641	6641
6642	6642
6643	6643
6644	6644
6645	6645	HB4687 - 183 - LRB103 36052 LNS 66139 b
6646	6646
6647	6647
6648	6648	HB4687- 184 -LRB103 36052 LNS 66139 b HB4687 - 184 - LRB103 36052 LNS 66139 b
6649	6649	HB4687 - 184 - LRB103 36052 LNS 66139 b
6650	6650	1 (5) Nothing in this subsection shall be interpreted to
6651	6651	2 limit the authority of the Agency, or other agency or
6652	6652	3 department of the State, to require or collect demographic
6653	6653	4 information from applicants of other State programs.
6654	6654	5 (c-25) (Blank). Energy Workforce Equity Database.
6655	6655	6 (1) The Agency, in consultation with the Department of
6656	6656	7 Commerce and Economic Opportunity, shall create an Energy
6657	6657	8 Workforce Equity Database, and may contract with a third
6658	6658	9 party to do so ("database program administrator"). If the
6659	6659	10 Department decides to contract with a third party, that
6660	6660	11 third party shall be exempt from the requirements of
6661	6661	12 Section 20-10 of the Illinois Procurement Code. The Energy
6662	6662	13 Workforce Equity Database shall be a searchable database
6663	6663	14 of suppliers, vendors, and subcontractors for clean energy
6664	6664	15 industries that is:
6665	6665	16 (A) publicly accessible;
6666	6666	17 (B) easy for people to find and use;
6667	6667	18 (C) organized by company specialty or field;
6668	6668	19 (D) region-specific; and
6669	6669	20 (E) populated with information including, but not
6670	6670	21 limited to, contacts for suppliers, vendors, or
6671	6671	22 subcontractors who are minority and women-owned
6672	6672	23 business enterprise certified or who participate or
6673	6673	24 have participated in any of the programs described in
6674	6674	25 this Act.
6675	6675	26 (2) The Agency shall create an easily accessible,
6676	6676
6677	6677
6678	6678
6679	6679
6680	6680
6681	6681	HB4687 - 184 - LRB103 36052 LNS 66139 b
6682	6682
6683	6683
6684	6684	HB4687- 185 -LRB103 36052 LNS 66139 b HB4687 - 185 - LRB103 36052 LNS 66139 b
6685	6685	HB4687 - 185 - LRB103 36052 LNS 66139 b
6686	6686	1 public facing online tool using the database information
6687	6687	2 that includes, at a minimum, the following:
6688	6688	3 (A) a map of environmental justice and equity
6689	6689	4 investment eligible communities;
6690	6690	5 (B) job postings and recruiting opportunities;
6691	6691	6 (C) a means by which recruiting clean energy
6692	6692	7 companies can find and interact with current or former
6693	6693	8 participants of clean energy workforce training
6694	6694	9 programs;
6695	6695	10 (D) information on workforce training service
6696	6696	11 providers and training opportunities available to
6697	6697	12 prospective workers;
6698	6698	13 (E) renewable energy company diversity reporting;
6699	6699	14 (F) a list of equity eligible contractors with
6700	6700	15 their contact information, types of work performed,
6701	6701	16 and locations worked in;
6702	6702	17 (G) reporting on outcomes of the programs
6703	6703	18 described in the workforce programs of the Energy
6704	6704	19 Transition Act, including information such as, but not
6705	6705	20 limited to, retention rate, graduation rate, and
6706	6706	21 placement rates of trainees; and
6707	6707	22 (H) information about the Jobs and Environmental
6708	6708	23 Justice Grant Program, the Clean Energy Jobs and
6709	6709	24 Justice Fund, and other sources of capital.
6710	6710	25 (3) The Agency shall ensure the database is regularly
6711	6711	26 updated to ensure information is current and shall
6712	6712
6713	6713
6714	6714
6715	6715
6716	6716
6717	6717	HB4687 - 185 - LRB103 36052 LNS 66139 b
6718	6718
6719	6719
6720	6720	HB4687- 186 -LRB103 36052 LNS 66139 b HB4687 - 186 - LRB103 36052 LNS 66139 b
6721	6721	HB4687 - 186 - LRB103 36052 LNS 66139 b
6722	6722	1 coordinate with the Department of Commerce and Economic
6723	6723	2 Opportunity to ensure that it includes information on
6724	6724	3 individuals and entities that are or have participated in
6725	6725	4 the Clean Jobs Workforce Network Program, Clean Energy
6726	6726	5 Contractor Incubator Program, Returning Residents Clean
6727	6727	6 Jobs Training Program, or Clean Energy Primes Contractor
6728	6728	7 Accelerator Program.
6729	6729	8 (c-30) (Blank). Enforcement of minimum equity standards.
6730	6730	9 All entities seeking renewable energy credits must submit an
6731	6731	10 annual report to demonstrate compliance with each of the
6732	6732	11 equity commitments required under subsection (c-10). If the
6733	6733	12 Agency concludes the entity has not met or maintained its
6734	6734	13 minimum equity standards required under the applicable
6735	6735	14 subparagraphs under subsection (c-10), the Agency shall deny
6736	6736	15 the entity's ability to participate in procurement programs in
6737	6737	16 subsection (c), including by withholding approved vendor or
6738	6738	17 designee status. The Agency may require the entity to enter
6739	6739	18 into a corrective action plan. An entity that is not
6740	6740	19 recertified for failing to meet required equity actions in
6741	6741	20 subparagraph (c-10) may reapply once they have a corrective
6742	6742	21 action plan and achieve compliance with the minimum equity
6743	6743	22 standards.
6744	6744	23 (d) Clean coal portfolio standard.
6745	6745	24 (1) The procurement plans shall include electricity
6746	6746	25 generated using clean coal. Each utility shall enter into
6747	6747	26 one or more sourcing agreements with the initial clean
6748	6748
6749	6749
6750	6750
6751	6751
6752	6752
6753	6753	HB4687 - 186 - LRB103 36052 LNS 66139 b
6754	6754
6755	6755
6756	6756	HB4687- 187 -LRB103 36052 LNS 66139 b HB4687 - 187 - LRB103 36052 LNS 66139 b
6757	6757	HB4687 - 187 - LRB103 36052 LNS 66139 b
6758	6758	1 coal facility, as provided in paragraph (3) of this
6759	6759	2 subsection (d), covering electricity generated by the
6760	6760	3 initial clean coal facility representing at least 5% of
6761	6761	4 each utility's total supply to serve the load of eligible
6762	6762	5 retail customers in 2015 and each year thereafter, as
6763	6763	6 described in paragraph (3) of this subsection (d), subject
6764	6764	7 to the limits specified in paragraph (2) of this
6765	6765	8 subsection (d). It is the goal of the State that by January
6766	6766	9 1, 2025, 25% of the electricity used in the State shall be
6767	6767	10 generated by cost-effective clean coal facilities. For
6768	6768	11 purposes of this subsection (d), "cost-effective" means
6769	6769	12 that the expenditures pursuant to such sourcing agreements
6770	6770	13 do not cause the limit stated in paragraph (2) of this
6771	6771	14 subsection (d) to be exceeded and do not exceed cost-based
6772	6772	15 benchmarks, which shall be developed to assess all
6773	6773	16 expenditures pursuant to such sourcing agreements covering
6774	6774	17 electricity generated by clean coal facilities, other than
6775	6775	18 the initial clean coal facility, by the procurement
6776	6776	19 administrator, in consultation with the Commission staff,
6777	6777	20 Agency staff, and the procurement monitor and shall be
6778	6778	21 subject to Commission review and approval.
6779	6779	22 A utility party to a sourcing agreement shall
6780	6780	23 immediately retire any emission credits that it receives
6781	6781	24 in connection with the electricity covered by such
6782	6782	25 agreement.
6783	6783	26 Utilities shall maintain adequate records documenting
6784	6784
6785	6785
6786	6786
6787	6787
6788	6788
6789	6789	HB4687 - 187 - LRB103 36052 LNS 66139 b
6790	6790
6791	6791
6792	6792	HB4687- 188 -LRB103 36052 LNS 66139 b HB4687 - 188 - LRB103 36052 LNS 66139 b
6793	6793	HB4687 - 188 - LRB103 36052 LNS 66139 b
6794	6794	1 the purchases under the sourcing agreement to comply with
6795	6795	2 this subsection (d) and shall file an accounting with the
6796	6796	3 load forecast that must be filed with the Agency by July 15
6797	6797	4 of each year, in accordance with subsection (d) of Section
6798	6798	5 16-111.5 of the Public Utilities Act.
6799	6799	6 A utility shall be deemed to have complied with the
6800	6800	7 clean coal portfolio standard specified in this subsection
6801	6801	8 (d) if the utility enters into a sourcing agreement as
6802	6802	9 required by this subsection (d).
6803	6803	10 (2) For purposes of this subsection (d), the required
6804	6804	11 execution of sourcing agreements with the initial clean
6805	6805	12 coal facility for a particular year shall be measured as a
6806	6806	13 percentage of the actual amount of electricity
6807	6807	14 (megawatt-hours) supplied by the electric utility to
6808	6808	15 eligible retail customers in the planning year ending
6809	6809	16 immediately prior to the agreement's execution. For
6810	6810	17 purposes of this subsection (d), the amount paid per
6811	6811	18 kilowatt hour kilowatthour means the total amount paid for
6812	6812	19 electric service expressed on a per-kilowatt-hour per
6813	6813	20 kilowatthour basis. For purposes of this subsection (d),
6814	6814	21 the total amount paid for electric service includes
6815	6815	22 without limitation amounts paid for supply, transmission,
6816	6816	23 distribution, surcharges and add-on taxes.
6817	6817	24 Notwithstanding the requirements of this subsection
6818	6818	25 (d), the total amount paid under sourcing agreements with
6819	6819	26 clean coal facilities pursuant to the procurement plan for
6820	6820
6821	6821
6822	6822
6823	6823
6824	6824
6825	6825	HB4687 - 188 - LRB103 36052 LNS 66139 b
6826	6826
6827	6827
6828	6828	HB4687- 189 -LRB103 36052 LNS 66139 b HB4687 - 189 - LRB103 36052 LNS 66139 b
6829	6829	HB4687 - 189 - LRB103 36052 LNS 66139 b
6830	6830	1 any given year shall be reduced by an amount necessary to
6831	6831	2 limit the annual estimated average net increase due to the
6832	6832	3 costs of these resources included in the amounts paid by
6833	6833	4 eligible retail customers in connection with electric
6834	6834	5 service to:
6835	6835	6 (A) in 2010, no more than 0.5% of the amount paid
6836	6836	7 per kilowatt hour kilowatthour by those customers
6837	6837	8 during the year ending May 31, 2009;
6838	6838	9 (B) in 2011, the greater of an additional 0.5% of
6839	6839	10 the amount paid per kilowatt hour kilowatthour by
6840	6840	11 those customers during the year ending May 31, 2010 or
6841	6841	12 1% of the amount paid per kilowatt hour kilowatthour
6842	6842	13 by those customers during the year ending May 31,
6843	6843	14 2009;
6844	6844	15 (C) in 2012, the greater of an additional 0.5% of
6845	6845	16 the amount paid per kilowatt hour kilowatthour by
6846	6846	17 those customers during the year ending May 31, 2011 or
6847	6847	18 1.5% of the amount paid per kilowatt hour kilowatthour
6848	6848	19 by those customers during the year ending May 31,
6849	6849	20 2009;
6850	6850	21 (D) in 2013, the greater of an additional 0.5% of
6851	6851	22 the amount paid per kilowatt hour kilowatthour by
6852	6852	23 those customers during the year ending May 31, 2012 or
6853	6853	24 2% of the amount paid per kilowatt hour kilowatthour
6854	6854	25 by those customers during the year ending May 31,
6855	6855	26 2009; and
6856	6856
6857	6857
6858	6858
6859	6859
6860	6860
6861	6861	HB4687 - 189 - LRB103 36052 LNS 66139 b
6862	6862
6863	6863
6864	6864	HB4687- 190 -LRB103 36052 LNS 66139 b HB4687 - 190 - LRB103 36052 LNS 66139 b
6865	6865	HB4687 - 190 - LRB103 36052 LNS 66139 b
6866	6866	1 (E) thereafter, the total amount paid under
6867	6867	2 sourcing agreements with clean coal facilities
6868	6868	3 pursuant to the procurement plan for any single year
6869	6869	4 shall be reduced by an amount necessary to limit the
6870	6870	5 estimated average net increase due to the cost of
6871	6871	6 these resources included in the amounts paid by
6872	6872	7 eligible retail customers in connection with electric
6873	6873	8 service to no more than the greater of (i) 2.015% of
6874	6874	9 the amount paid per kilowatt hour kilowatthour by
6875	6875	10 those customers during the year ending May 31, 2009 or
6876	6876	11 (ii) the incremental amount per kilowatt hour
6877	6877	12 kilowatthour paid for these resources in 2013. These
6878	6878	13 requirements may be altered only as provided by
6879	6879	14 statute.
6880	6880	15 No later than June 30, 2015, the Commission shall
6881	6881	16 review the limitation on the total amount paid under
6882	6882	17 sourcing agreements, if any, with clean coal facilities
6883	6883	18 pursuant to this subsection (d) and report to the General
6884	6884	19 Assembly its findings as to whether that limitation unduly
6885	6885	20 constrains the amount of electricity generated by
6886	6886	21 cost-effective clean coal facilities that is covered by
6887	6887	22 sourcing agreements.
6888	6888	23 (3) Initial clean coal facility. In order to promote
6889	6889	24 development of clean coal facilities in Illinois, each
6890	6890	25 electric utility subject to this Section shall execute a
6891	6891	26 sourcing agreement to source electricity from a proposed
6892	6892
6893	6893
6894	6894
6895	6895
6896	6896
6897	6897	HB4687 - 190 - LRB103 36052 LNS 66139 b
6898	6898
6899	6899
6900	6900	HB4687- 191 -LRB103 36052 LNS 66139 b HB4687 - 191 - LRB103 36052 LNS 66139 b
6901	6901	HB4687 - 191 - LRB103 36052 LNS 66139 b
6902	6902	1 clean coal facility in Illinois (the "initial clean coal
6903	6903	2 facility") that will have a nameplate capacity of at least
6904	6904	3 500 MW when commercial operation commences, that has a
6905	6905	4 final Clean Air Act permit on June 1, 2009 (the effective
6906	6906	5 date of Public Act 95-1027), and that will meet the
6907	6907	6 definition of clean coal facility in Section 1-10 of this
6908	6908	7 Act when commercial operation commences. The sourcing
6909	6909	8 agreements with this initial clean coal facility shall be
6910	6910	9 subject to both approval of the initial clean coal
6911	6911	10 facility by the General Assembly and satisfaction of the
6912	6912	11 requirements of paragraph (4) of this subsection (d) and
6913	6913	12 shall be executed within 90 days after any such approval
6914	6914	13 by the General Assembly. The Agency and the Commission
6915	6915	14 shall have authority to inspect all books and records
6916	6916	15 associated with the initial clean coal facility during the
6917	6917	16 term of such a sourcing agreement. A utility's sourcing
6918	6918	17 agreement for electricity produced by the initial clean
6919	6919	18 coal facility shall include:
6920	6920	19 (A) a formula contractual price (the "contract
6921	6921	20 price") approved pursuant to paragraph (4) of this
6922	6922	21 subsection (d), which shall:
6923	6923	22 (i) be determined using a cost of service
6924	6924	23 methodology employing either a level or deferred
6925	6925	24 capital recovery component, based on a capital
6926	6926	25 structure consisting of 45% equity and 55% debt,
6927	6927	26 and a return on equity as may be approved by the
6928	6928
6929	6929
6930	6930
6931	6931
6932	6932
6933	6933	HB4687 - 191 - LRB103 36052 LNS 66139 b
6934	6934
6935	6935
6936	6936	HB4687- 192 -LRB103 36052 LNS 66139 b HB4687 - 192 - LRB103 36052 LNS 66139 b
6937	6937	HB4687 - 192 - LRB103 36052 LNS 66139 b
6938	6938	1 Federal Energy Regulatory Commission, which in any
6939	6939	2 case may not exceed the lower of 11.5% or the rate
6940	6940	3 of return approved by the General Assembly
6941	6941	4 pursuant to paragraph (4) of this subsection (d);
6942	6942	5 and
6943	6943	6 (ii) provide that all miscellaneous net
6944	6944	7 revenue, including but not limited to net revenue
6945	6945	8 from the sale of emission allowances, if any,
6946	6946	9 substitute natural gas, if any, grants or other
6947	6947	10 support provided by the State of Illinois or the
6948	6948	11 United States Government, firm transmission
6949	6949	12 rights, if any, by-products produced by the
6950	6950	13 facility, energy or capacity derived from the
6951	6951	14 facility and not covered by a sourcing agreement
6952	6952	15 pursuant to paragraph (3) of this subsection (d)
6953	6953	16 or item (5) of subsection (d) of Section 16-115 of
6954	6954	17 the Public Utilities Act, whether generated from
6955	6955	18 the synthesis gas derived from coal, from SNG, or
6956	6956	19 from natural gas, shall be credited against the
6957	6957	20 revenue requirement for this initial clean coal
6958	6958	21 facility;
6959	6959	22 (B) power purchase provisions, which shall:
6960	6960	23 (i) provide that the utility party to such
6961	6961	24 sourcing agreement shall pay the contract price
6962	6962	25 for electricity delivered under such sourcing
6963	6963	26 agreement;
6964	6964
6965	6965
6966	6966
6967	6967
6968	6968
6969	6969	HB4687 - 192 - LRB103 36052 LNS 66139 b
6970	6970
6971	6971
6972	6972	HB4687- 193 -LRB103 36052 LNS 66139 b HB4687 - 193 - LRB103 36052 LNS 66139 b
6973	6973	HB4687 - 193 - LRB103 36052 LNS 66139 b
6974	6974	1 (ii) require delivery of electricity to the
6975	6975	2 regional transmission organization market of the
6976	6976	3 utility that is party to such sourcing agreement;
6977	6977	4 (iii) require the utility party to such
6978	6978	5 sourcing agreement to buy from the initial clean
6979	6979	6 coal facility in each hour an amount of energy
6980	6980	7 equal to all clean coal energy made available from
6981	6981	8 the initial clean coal facility during such hour
6982	6982	9 times a fraction, the numerator of which is such
6983	6983	10 utility's retail market sales of electricity
6984	6984	11 (expressed in kilowatt hours kilowatthours sold)
6985	6985	12 in the State during the prior calendar month and
6986	6986	13 the denominator of which is the total retail
6987	6987	14 market sales of electricity (expressed in kilowatt
6988	6988	15 hours kilowatthours sold) in the State by
6989	6989	16 utilities during such prior month and the sales of
6990	6990	17 electricity (expressed in kilowatt hours
6991	6991	18 kilowatthours sold) in the State by alternative
6992	6992	19 retail electric suppliers during such prior month
6993	6993	20 that are subject to the requirements of this
6994	6994	21 subsection (d) and paragraph (5) of subsection (d)
6995	6995	22 of Section 16-115 of the Public Utilities Act,
6996	6996	23 provided that the amount purchased by the utility
6997	6997	24 in any year will be limited by paragraph (2) of
6998	6998	25 this subsection (d); and
6999	6999	26 (iv) be considered pre-existing contracts in
7000	7000
7001	7001
7002	7002
7003	7003
7004	7004
7005	7005	HB4687 - 193 - LRB103 36052 LNS 66139 b
7006	7006
7007	7007
7008	7008	HB4687- 194 -LRB103 36052 LNS 66139 b HB4687 - 194 - LRB103 36052 LNS 66139 b
7009	7009	HB4687 - 194 - LRB103 36052 LNS 66139 b
7010	7010	1 such utility's procurement plans for eligible
7011	7011	2 retail customers;
7012	7012	3 (C) contract for differences provisions, which
7013	7013	4 shall:
7014	7014	5 (i) require the utility party to such sourcing
7015	7015	6 agreement to contract with the initial clean coal
7016	7016	7 facility in each hour with respect to an amount of
7017	7017	8 energy equal to all clean coal energy made
7018	7018	9 available from the initial clean coal facility
7019	7019	10 during such hour times a fraction, the numerator
7020	7020	11 of which is such utility's retail market sales of
7021	7021	12 electricity (expressed in kilowatt hours
7022	7022	13 kilowatthours sold) in the utility's service
7023	7023	14 territory in the State during the prior calendar
7024	7024	15 month and the denominator of which is the total
7025	7025	16 retail market sales of electricity (expressed in
7026	7026	17 kilowatt hours kilowatthours sold) in the State by
7027	7027	18 utilities during such prior month and the sales of
7028	7028	19 electricity (expressed in kilowatt hours
7029	7029	20 kilowatthours sold) in the State by alternative
7030	7030	21 retail electric suppliers during such prior month
7031	7031	22 that are subject to the requirements of this
7032	7032	23 subsection (d) and paragraph (5) of subsection (d)
7033	7033	24 of Section 16-115 of the Public Utilities Act,
7034	7034	25 provided that the amount paid by the utility in
7035	7035	26 any year will be limited by paragraph (2) of this
7036	7036
7037	7037
7038	7038
7039	7039
7040	7040
7041	7041	HB4687 - 194 - LRB103 36052 LNS 66139 b
7042	7042
7043	7043
7044	7044	HB4687- 195 -LRB103 36052 LNS 66139 b HB4687 - 195 - LRB103 36052 LNS 66139 b
7045	7045	HB4687 - 195 - LRB103 36052 LNS 66139 b
7046	7046	1 subsection (d);
7047	7047	2 (ii) provide that the utility's payment
7048	7048	3 obligation in respect of the quantity of
7049	7049	4 electricity determined pursuant to the preceding
7050	7050	5 clause (i) shall be limited to an amount equal to
7051	7051	6 (1) the difference between the contract price
7052	7052	7 determined pursuant to subparagraph (A) of
7053	7053	8 paragraph (3) of this subsection (d) and the
7054	7054	9 day-ahead price for electricity delivered to the
7055	7055	10 regional transmission organization market of the
7056	7056	11 utility that is party to such sourcing agreement
7057	7057	12 (or any successor delivery point at which such
7058	7058	13 utility's supply obligations are financially
7059	7059	14 settled on an hourly basis) (the "reference
7060	7060	15 price") on the day preceding the day on which the
7061	7061	16 electricity is delivered to the initial clean coal
7062	7062	17 facility busbar, multiplied by (2) the quantity of
7063	7063	18 electricity determined pursuant to the preceding
7064	7064	19 clause (i); and
7065	7065	20 (iii) not require the utility to take physical
7066	7066	21 delivery of the electricity produced by the
7067	7067	22 facility;
7068	7068	23 (D) general provisions, which shall:
7069	7069	24 (i) specify a term of no more than 30 years,
7070	7070	25 commencing on the commercial operation date of the
7071	7071	26 facility;
7072	7072
7073	7073
7074	7074
7075	7075
7076	7076
7077	7077	HB4687 - 195 - LRB103 36052 LNS 66139 b
7078	7078
7079	7079
7080	7080	HB4687- 196 -LRB103 36052 LNS 66139 b HB4687 - 196 - LRB103 36052 LNS 66139 b
7081	7081	HB4687 - 196 - LRB103 36052 LNS 66139 b
7082	7082	1 (ii) provide that utilities shall maintain
7083	7083	2 adequate records documenting purchases under the
7084	7084	3 sourcing agreements entered into to comply with
7085	7085	4 this subsection (d) and shall file an accounting
7086	7086	5 with the load forecast that must be filed with the
7087	7087	6 Agency by July 15 of each year, in accordance with
7088	7088	7 subsection (d) of Section 16-111.5 of the Public
7089	7089	8 Utilities Act;
7090	7090	9 (iii) provide that all costs associated with
7091	7091	10 the initial clean coal facility will be
7092	7092	11 periodically reported to the Federal Energy
7093	7093	12 Regulatory Commission and to purchasers in
7094	7094	13 accordance with applicable laws governing
7095	7095	14 cost-based wholesale power contracts;
7096	7096	15 (iv) permit the Illinois Power Agency to
7097	7097	16 assume ownership of the initial clean coal
7098	7098	17 facility, without monetary consideration and
7099	7099	18 otherwise on reasonable terms acceptable to the
7100	7100	19 Agency, if the Agency so requests no less than 3
7101	7101	20 years prior to the end of the stated contract
7102	7102	21 term;
7103	7103	22 (v) require the owner of the initial clean
7104	7104	23 coal facility to provide documentation to the
7105	7105	24 Commission each year, starting in the facility's
7106	7106	25 first year of commercial operation, accurately
7107	7107	26 reporting the quantity of carbon emissions from
7108	7108
7109	7109
7110	7110
7111	7111
7112	7112
7113	7113	HB4687 - 196 - LRB103 36052 LNS 66139 b
7114	7114
7115	7115
7116	7116	HB4687- 197 -LRB103 36052 LNS 66139 b HB4687 - 197 - LRB103 36052 LNS 66139 b
7117	7117	HB4687 - 197 - LRB103 36052 LNS 66139 b
7118	7118	1 the facility that have been captured and
7119	7119	2 sequestered and report any quantities of carbon
7120	7120	3 released from the site or sites at which carbon
7121	7121	4 emissions were sequestered in prior years, based
7122	7122	5 on continuous monitoring of such sites. If, in any
7123	7123	6 year after the first year of commercial operation,
7124	7124	7 the owner of the facility fails to demonstrate
7125	7125	8 that the initial clean coal facility captured and
7126	7126	9 sequestered at least 50% of the total carbon
7127	7127	10 emissions that the facility would otherwise emit
7128	7128	11 or that sequestration of emissions from prior
7129	7129	12 years has failed, resulting in the release of
7130	7130	13 carbon dioxide into the atmosphere, the owner of
7131	7131	14 the facility must offset excess emissions. Any
7132	7132	15 such carbon offsets must be permanent, additional,
7133	7133	16 verifiable, real, located within the State of
7134	7134	17 Illinois, and legally and practicably enforceable.
7135	7135	18 The cost of such offsets for the facility that are
7136	7136	19 not recoverable shall not exceed $15 million in
7137	7137	20 any given year. No costs of any such purchases of
7138	7138	21 carbon offsets may be recovered from a utility or
7139	7139	22 its customers. All carbon offsets purchased for
7140	7140	23 this purpose and any carbon emission credits
7141	7141	24 associated with sequestration of carbon from the
7142	7142	25 facility must be permanently retired. The initial
7143	7143	26 clean coal facility shall not forfeit its
7144	7144
7145	7145
7146	7146
7147	7147
7148	7148
7149	7149	HB4687 - 197 - LRB103 36052 LNS 66139 b
7150	7150
7151	7151
7152	7152	HB4687- 198 -LRB103 36052 LNS 66139 b HB4687 - 198 - LRB103 36052 LNS 66139 b
7153	7153	HB4687 - 198 - LRB103 36052 LNS 66139 b
7154	7154	1 designation as a clean coal facility if the
7155	7155	2 facility fails to fully comply with the applicable
7156	7156	3 carbon sequestration requirements in any given
7157	7157	4 year, provided the requisite offsets are
7158	7158	5 purchased. However, the Attorney General, on
7159	7159	6 behalf of the People of the State of Illinois, may
7160	7160	7 specifically enforce the facility's sequestration
7161	7161	8 requirement and the other terms of this contract
7162	7162	9 provision. Compliance with the sequestration
7163	7163	10 requirements and offset purchase requirements
7164	7164	11 specified in paragraph (3) of this subsection (d)
7165	7165	12 shall be reviewed annually by an independent
7166	7166	13 expert retained by the owner of the initial clean
7167	7167	14 coal facility, with the advance written approval
7168	7168	15 of the Attorney General. The Commission may, in
7169	7169	16 the course of the review specified in item (vii),
7170	7170	17 reduce the allowable return on equity for the
7171	7171	18 facility if the facility willfully fails to comply
7172	7172	19 with the carbon capture and sequestration
7173	7173	20 requirements set forth in this item (v);
7174	7174	21 (vi) include limits on, and accordingly
7175	7175	22 provide for modification of, the amount the
7176	7176	23 utility is required to source under the sourcing
7177	7177	24 agreement consistent with paragraph (2) of this
7178	7178	25 subsection (d);
7179	7179	26 (vii) require Commission review: (1) to
7180	7180
7181	7181
7182	7182
7183	7183
7184	7184
7185	7185	HB4687 - 198 - LRB103 36052 LNS 66139 b
7186	7186
7187	7187
7188	7188	HB4687- 199 -LRB103 36052 LNS 66139 b HB4687 - 199 - LRB103 36052 LNS 66139 b
7189	7189	HB4687 - 199 - LRB103 36052 LNS 66139 b
7190	7190	1 determine the justness, reasonableness, and
7191	7191	2 prudence of the inputs to the formula referenced
7192	7192	3 in subparagraphs (A)(i) through (A)(iii) of
7193	7193	4 paragraph (3) of this subsection (d), prior to an
7194	7194	5 adjustment in those inputs including, without
7195	7195	6 limitation, the capital structure and return on
7196	7196	7 equity, fuel costs, and other operations and
7197	7197	8 maintenance costs and (2) to approve the costs to
7198	7198	9 be passed through to customers under the sourcing
7199	7199	10 agreement by which the utility satisfies its
7200	7200	11 statutory obligations. Commission review shall
7201	7201	12 occur no less than every 3 years, regardless of
7202	7202	13 whether any adjustments have been proposed, and
7203	7203	14 shall be completed within 9 months;
7204	7204	15 (viii) limit the utility's obligation to such
7205	7205	16 amount as the utility is allowed to recover
7206	7206	17 through tariffs filed with the Commission,
7207	7207	18 provided that neither the clean coal facility nor
7208	7208	19 the utility waives any right to assert federal
7209	7209	20 pre-emption or any other argument in response to a
7210	7210	21 purported disallowance of recovery costs;
7211	7211	22 (ix) limit the utility's or alternative retail
7212	7212	23 electric supplier's obligation to incur any
7213	7213	24 liability until such time as the facility is in
7214	7214	25 commercial operation and generating power and
7215	7215	26 energy and such power and energy is being
7216	7216
7217	7217
7218	7218
7219	7219
7220	7220
7221	7221	HB4687 - 199 - LRB103 36052 LNS 66139 b
7222	7222
7223	7223
7224	7224	HB4687- 200 -LRB103 36052 LNS 66139 b HB4687 - 200 - LRB103 36052 LNS 66139 b
7225	7225	HB4687 - 200 - LRB103 36052 LNS 66139 b
7226	7226	1 delivered to the facility busbar;
7227	7227	2 (x) provide that the owner or owners of the
7228	7228	3 initial clean coal facility, which is the
7229	7229	4 counterparty to such sourcing agreement, shall
7230	7230	5 have the right from time to time to elect whether
7231	7231	6 the obligations of the utility party thereto shall
7232	7232	7 be governed by the power purchase provisions or
7233	7233	8 the contract for differences provisions;
7234	7234	9 (xi) append documentation showing that the
7235	7235	10 formula rate and contract, insofar as they relate
7236	7236	11 to the power purchase provisions, have been
7237	7237	12 approved by the Federal Energy Regulatory
7238	7238	13 Commission pursuant to Section 205 of the Federal
7239	7239	14 Power Act;
7240	7240	15 (xii) provide that any changes to the terms of
7241	7241	16 the contract, insofar as such changes relate to
7242	7242	17 the power purchase provisions, are subject to
7243	7243	18 review under the public interest standard applied
7244	7244	19 by the Federal Energy Regulatory Commission
7245	7245	20 pursuant to Sections 205 and 206 of the Federal
7246	7246	21 Power Act; and
7247	7247	22 (xiii) conform with customary lender
7248	7248	23 requirements in power purchase agreements used as
7249	7249	24 the basis for financing non-utility generators.
7250	7250	25 (4) Effective date of sourcing agreements with the
7251	7251	26 initial clean coal facility. Any proposed sourcing
7252	7252
7253	7253
7254	7254
7255	7255
7256	7256
7257	7257	HB4687 - 200 - LRB103 36052 LNS 66139 b
7258	7258
7259	7259
7260	7260	HB4687- 201 -LRB103 36052 LNS 66139 b HB4687 - 201 - LRB103 36052 LNS 66139 b
7261	7261	HB4687 - 201 - LRB103 36052 LNS 66139 b
7262	7262	1 agreement with the initial clean coal facility shall not
7263	7263	2 become effective unless the following reports are prepared
7264	7264	3 and submitted and authorizations and approvals obtained:
7265	7265	4 (i) Facility cost report. The owner of the initial
7266	7266	5 clean coal facility shall submit to the Commission,
7267	7267	6 the Agency, and the General Assembly a front-end
7268	7268	7 engineering and design study, a facility cost report,
7269	7269	8 method of financing (including but not limited to
7270	7270	9 structure and associated costs), and an operating and
7271	7271	10 maintenance cost quote for the facility (collectively
7272	7272	11 "facility cost report"), which shall be prepared in
7273	7273	12 accordance with the requirements of this paragraph (4)
7274	7274	13 of subsection (d) of this Section, and shall provide
7275	7275	14 the Commission and the Agency access to the work
7276	7276	15 papers, relied upon documents, and any other backup
7277	7277	16 documentation related to the facility cost report.
7278	7278	17 (ii) Commission report. Within 6 months following
7279	7279	18 receipt of the facility cost report, the Commission,
7280	7280	19 in consultation with the Agency, shall submit a report
7281	7281	20 to the General Assembly setting forth its analysis of
7282	7282	21 the facility cost report. Such report shall include,
7283	7283	22 but not be limited to, a comparison of the costs
7284	7284	23 associated with electricity generated by the initial
7285	7285	24 clean coal facility to the costs associated with
7286	7286	25 electricity generated by other types of generation
7287	7287	26 facilities, an analysis of the rate impacts on
7288	7288
7289	7289
7290	7290
7291	7291
7292	7292
7293	7293	HB4687 - 201 - LRB103 36052 LNS 66139 b
7294	7294
7295	7295
7296	7296	HB4687- 202 -LRB103 36052 LNS 66139 b HB4687 - 202 - LRB103 36052 LNS 66139 b
7297	7297	HB4687 - 202 - LRB103 36052 LNS 66139 b
7298	7298	1 residential and small business customers over the life
7299	7299	2 of the sourcing agreements, and an analysis of the
7300	7300	3 likelihood that the initial clean coal facility will
7301	7301	4 commence commercial operation by and be delivering
7302	7302	5 power to the facility's busbar by 2016. To assist in
7303	7303	6 the preparation of its report, the Commission, in
7304	7304	7 consultation with the Agency, may hire one or more
7305	7305	8 experts or consultants, the costs of which shall be
7306	7306	9 paid for by the owner of the initial clean coal
7307	7307	10 facility. The Commission and Agency may begin the
7308	7308	11 process of selecting such experts or consultants prior
7309	7309	12 to receipt of the facility cost report.
7310	7310	13 (iii) General Assembly approval. The proposed
7311	7311	14 sourcing agreements shall not take effect unless,
7312	7312	15 based on the facility cost report and the Commission's
7313	7313	16 report, the General Assembly enacts authorizing
7314	7314	17 legislation approving (A) the projected price, stated
7315	7315	18 in cents per kilowatt hour kilowatthour, to be charged
7316	7316	19 for electricity generated by the initial clean coal
7317	7317	20 facility, (B) the projected impact on residential and
7318	7318	21 small business customers' bills over the life of the
7319	7319	22 sourcing agreements, and (C) the maximum allowable
7320	7320	23 return on equity for the project; and
7321	7321	24 (iv) Commission review. If the General Assembly
7322	7322	25 enacts authorizing legislation pursuant to
7323	7323	26 subparagraph (iii) approving a sourcing agreement, the
7324	7324
7325	7325
7326	7326
7327	7327
7328	7328
7329	7329	HB4687 - 202 - LRB103 36052 LNS 66139 b
7330	7330
7331	7331
7332	7332	HB4687- 203 -LRB103 36052 LNS 66139 b HB4687 - 203 - LRB103 36052 LNS 66139 b
7333	7333	HB4687 - 203 - LRB103 36052 LNS 66139 b
7334	7334	1 Commission shall, within 90 days of such enactment,
7335	7335	2 complete a review of such sourcing agreement. During
7336	7336	3 such time period, the Commission shall implement any
7337	7337	4 directive of the General Assembly, resolve any
7338	7338	5 disputes between the parties to the sourcing agreement
7339	7339	6 concerning the terms of such agreement, approve the
7340	7340	7 form of such agreement, and issue an order finding
7341	7341	8 that the sourcing agreement is prudent and reasonable.
7342	7342	9 The facility cost report shall be prepared as follows:
7343	7343	10 (A) The facility cost report shall be prepared by
7344	7344	11 duly licensed engineering and construction firms
7345	7345	12 detailing the estimated capital costs payable to one
7346	7346	13 or more contractors or suppliers for the engineering,
7347	7347	14 procurement and construction of the components
7348	7348	15 comprising the initial clean coal facility and the
7349	7349	16 estimated costs of operation and maintenance of the
7350	7350	17 facility. The facility cost report shall include:
7351	7351	18 (i) an estimate of the capital cost of the
7352	7352	19 core plant based on one or more front end
7353	7353	20 engineering and design studies for the
7354	7354	21 gasification island and related facilities. The
7355	7355	22 core plant shall include all civil, structural,
7356	7356	23 mechanical, electrical, control, and safety
7357	7357	24 systems.
7358	7358	25 (ii) an estimate of the capital cost of the
7359	7359	26 balance of the plant, including any capital costs
7360	7360
7361	7361
7362	7362
7363	7363
7364	7364
7365	7365	HB4687 - 203 - LRB103 36052 LNS 66139 b
7366	7366
7367	7367
7368	7368	HB4687- 204 -LRB103 36052 LNS 66139 b HB4687 - 204 - LRB103 36052 LNS 66139 b
7369	7369	HB4687 - 204 - LRB103 36052 LNS 66139 b
7370	7370	1 associated with sequestration of carbon dioxide
7371	7371	2 emissions and all interconnects and interfaces
7372	7372	3 required to operate the facility, such as
7373	7373	4 transmission of electricity, construction or
7374	7374	5 backfeed power supply, pipelines to transport
7375	7375	6 substitute natural gas or carbon dioxide, potable
7376	7376	7 water supply, natural gas supply, water supply,
7377	7377	8 water discharge, landfill, access roads, and coal
7378	7378	9 delivery.
7379	7379	10 The quoted construction costs shall be expressed
7380	7380	11 in nominal dollars as of the date that the quote is
7381	7381	12 prepared and shall include capitalized financing costs
7382	7382	13 during construction, taxes, insurance, and other
7383	7383	14 owner's costs, and an assumed escalation in materials
7384	7384	15 and labor beyond the date as of which the construction
7385	7385	16 cost quote is expressed.
7386	7386	17 (B) The front end engineering and design study for
7387	7387	18 the gasification island and the cost study for the
7388	7388	19 balance of plant shall include sufficient design work
7389	7389	20 to permit quantification of major categories of
7390	7390	21 materials, commodities and labor hours, and receipt of
7391	7391	22 quotes from vendors of major equipment required to
7392	7392	23 construct and operate the clean coal facility.
7393	7393	24 (C) The facility cost report shall also include an
7394	7394	25 operating and maintenance cost quote that will provide
7395	7395	26 the estimated cost of delivered fuel, personnel,
7396	7396
7397	7397
7398	7398
7399	7399
7400	7400
7401	7401	HB4687 - 204 - LRB103 36052 LNS 66139 b
7402	7402
7403	7403
7404	7404	HB4687- 205 -LRB103 36052 LNS 66139 b HB4687 - 205 - LRB103 36052 LNS 66139 b
7405	7405	HB4687 - 205 - LRB103 36052 LNS 66139 b
7406	7406	1 maintenance contracts, chemicals, catalysts,
7407	7407	2 consumables, spares, and other fixed and variable
7408	7408	3 operations and maintenance costs. The delivered fuel
7409	7409	4 cost estimate will be provided by a recognized third
7410	7410	5 party expert or experts in the fuel and transportation
7411	7411	6 industries. The balance of the operating and
7412	7412	7 maintenance cost quote, excluding delivered fuel
7413	7413	8 costs, will be developed based on the inputs provided
7414	7414	9 by duly licensed engineering and construction firms
7415	7415	10 performing the construction cost quote, potential
7416	7416	11 vendors under long-term service agreements and plant
7417	7417	12 operating agreements, or recognized third party plant
7418	7418	13 operator or operators.
7419	7419	14 The operating and maintenance cost quote
7420	7420	15 (including the cost of the front end engineering and
7421	7421	16 design study) shall be expressed in nominal dollars as
7422	7422	17 of the date that the quote is prepared and shall
7423	7423	18 include taxes, insurance, and other owner's costs, and
7424	7424	19 an assumed escalation in materials and labor beyond
7425	7425	20 the date as of which the operating and maintenance
7426	7426	21 cost quote is expressed.
7427	7427	22 (D) The facility cost report shall also include an
7428	7428	23 analysis of the initial clean coal facility's ability
7429	7429	24 to deliver power and energy into the applicable
7430	7430	25 regional transmission organization markets and an
7431	7431	26 analysis of the expected capacity factor for the
7432	7432
7433	7433
7434	7434
7435	7435
7436	7436
7437	7437	HB4687 - 205 - LRB103 36052 LNS 66139 b
7438	7438
7439	7439
7440	7440	HB4687- 206 -LRB103 36052 LNS 66139 b HB4687 - 206 - LRB103 36052 LNS 66139 b
7441	7441	HB4687 - 206 - LRB103 36052 LNS 66139 b
7442	7442	1 initial clean coal facility.
7443	7443	2 (E) Amounts paid to third parties unrelated to the
7444	7444	3 owner or owners of the initial clean coal facility to
7445	7445	4 prepare the core plant construction cost quote,
7446	7446	5 including the front end engineering and design study,
7447	7447	6 and the operating and maintenance cost quote will be
7448	7448	7 reimbursed through Coal Development Bonds.
7449	7449	8 (5) Re-powering and retrofitting coal-fired power
7450	7450	9 plants previously owned by Illinois utilities to qualify
7451	7451	10 as clean coal facilities. During the 2009 procurement
7452	7452	11 planning process and thereafter, the Agency and the
7453	7453	12 Commission shall consider sourcing agreements covering
7454	7454	13 electricity generated by power plants that were previously
7455	7455	14 owned by Illinois utilities and that have been or will be
7456	7456	15 converted into clean coal facilities, as defined by
7457	7457	16 Section 1-10 of this Act. Pursuant to such procurement
7458	7458	17 planning process, the owners of such facilities may
7459	7459	18 propose to the Agency sourcing agreements with utilities
7460	7460	19 and alternative retail electric suppliers required to
7461	7461	20 comply with subsection (d) of this Section and item (5) of
7462	7462	21 subsection (d) of Section 16-115 of the Public Utilities
7463	7463	22 Act, covering electricity generated by such facilities. In
7464	7464	23 the case of sourcing agreements that are power purchase
7465	7465	24 agreements, the contract price for electricity sales shall
7466	7466	25 be established on a cost of service basis. In the case of
7467	7467	26 sourcing agreements that are contracts for differences,
7468	7468
7469	7469
7470	7470
7471	7471
7472	7472
7473	7473	HB4687 - 206 - LRB103 36052 LNS 66139 b
7474	7474
7475	7475
7476	7476	HB4687- 207 -LRB103 36052 LNS 66139 b HB4687 - 207 - LRB103 36052 LNS 66139 b
7477	7477	HB4687 - 207 - LRB103 36052 LNS 66139 b
7478	7478	1 the contract price from which the reference price is
7479	7479	2 subtracted shall be established on a cost of service
7480	7480	3 basis. The Agency and the Commission may approve any such
7481	7481	4 utility sourcing agreements that do not exceed cost-based
7482	7482	5 benchmarks developed by the procurement administrator, in
7483	7483	6 consultation with the Commission staff, Agency staff and
7484	7484	7 the procurement monitor, subject to Commission review and
7485	7485	8 approval. The Commission shall have authority to inspect
7486	7486	9 all books and records associated with these clean coal
7487	7487	10 facilities during the term of any such contract.
7488	7488	11 (6) Costs incurred under this subsection (d) or
7489	7489	12 pursuant to a contract entered into under this subsection
7490	7490	13 (d) shall be deemed prudently incurred and reasonable in
7491	7491	14 amount and the electric utility shall be entitled to full
7492	7492	15 cost recovery pursuant to the tariffs filed with the
7493	7493	16 Commission.
7494	7494	17 (d-5) Zero emission standard.
7495	7495	18 (1) Beginning with the delivery year commencing on
7496	7496	19 June 1, 2017, the Agency shall, for electric utilities
7497	7497	20 that serve at least 100,000 retail customers in this
7498	7498	21 State, procure contracts with zero emission facilities
7499	7499	22 that are reasonably capable of generating cost-effective
7500	7500	23 zero emission credits in an amount approximately equal to
7501	7501	24 16% of the actual amount of electricity delivered by each
7502	7502	25 electric utility to retail customers in the State during
7503	7503	26 calendar year 2014. For an electric utility serving fewer
7504	7504
7505	7505
7506	7506
7507	7507
7508	7508
7509	7509	HB4687 - 207 - LRB103 36052 LNS 66139 b
7510	7510
7511	7511
7512	7512	HB4687- 208 -LRB103 36052 LNS 66139 b HB4687 - 208 - LRB103 36052 LNS 66139 b
7513	7513	HB4687 - 208 - LRB103 36052 LNS 66139 b
7514	7514	1 than 100,000 retail customers in this State that
7515	7515	2 requested, under Section 16-111.5 of the Public Utilities
7516	7516	3 Act, that the Agency procure power and energy for all or a
7517	7517	4 portion of the utility's Illinois load for the delivery
7518	7518	5 year commencing June 1, 2016, the Agency shall procure
7519	7519	6 contracts with zero emission facilities that are
7520	7520	7 reasonably capable of generating cost-effective zero
7521	7521	8 emission credits in an amount approximately equal to 16%
7522	7522	9 of the portion of power and energy to be procured by the
7523	7523	10 Agency for the utility. The duration of the contracts
7524	7524	11 procured under this subsection (d-5) shall be for a term
7525	7525	12 of 10 years ending May 31, 2027. The quantity of zero
7526	7526	13 emission credits to be procured under the contracts shall
7527	7527	14 be all of the zero emission credits generated by the zero
7528	7528	15 emission facility in each delivery year; however, if the
7529	7529	16 zero emission facility is owned by more than one entity,
7530	7530	17 then the quantity of zero emission credits to be procured
7531	7531	18 under the contracts shall be the amount of zero emission
7532	7532	19 credits that are generated from the portion of the zero
7533	7533	20 emission facility that is owned by the winning supplier.
7534	7534	21 The 16% value identified in this paragraph (1) is the
7535	7535	22 average of the percentage targets in subparagraph (B) of
7536	7536	23 paragraph (1) of subsection (c) of this Section for the 5
7537	7537	24 delivery years beginning June 1, 2017.
7538	7538	25 The procurement process shall be subject to the
7539	7539	26 following provisions:
7540	7540
7541	7541
7542	7542
7543	7543
7544	7544
7545	7545	HB4687 - 208 - LRB103 36052 LNS 66139 b
7546	7546
7547	7547
7548	7548	HB4687- 209 -LRB103 36052 LNS 66139 b HB4687 - 209 - LRB103 36052 LNS 66139 b
7549	7549	HB4687 - 209 - LRB103 36052 LNS 66139 b
7550	7550	1 (A) Those zero emission facilities that intend to
7551	7551	2 participate in the procurement shall submit to the
7552	7552	3 Agency the following eligibility information for each
7553	7553	4 zero emission facility on or before the date
7554	7554	5 established by the Agency:
7555	7555	6 (i) the in-service date and remaining useful
7556	7556	7 life of the zero emission facility;
7557	7557	8 (ii) the amount of power generated annually
7558	7558	9 for each of the years 2005 through 2015, and the
7559	7559	10 projected zero emission credits to be generated
7560	7560	11 over the remaining useful life of the zero
7561	7561	12 emission facility, which shall be used to
7562	7562	13 determine the capability of each facility;
7563	7563	14 (iii) the annual zero emission facility cost
7564	7564	15 projections, expressed on a per megawatthour
7565	7565	16 basis, over the next 6 delivery years, which shall
7566	7566	17 include the following: operation and maintenance
7567	7567	18 expenses; fully allocated overhead costs, which
7568	7568	19 shall be allocated using the methodology developed
7569	7569	20 by the Institute for Nuclear Power Operations;
7570	7570	21 fuel expenditures; non-fuel capital expenditures;
7571	7571	22 spent fuel expenditures; a return on working
7572	7572	23 capital; the cost of operational and market risks
7573	7573	24 that could be avoided by ceasing operation; and
7574	7574	25 any other costs necessary for continued
7575	7575	26 operations, provided that "necessary" means, for
7576	7576
7577	7577
7578	7578
7579	7579
7580	7580
7581	7581	HB4687 - 209 - LRB103 36052 LNS 66139 b
7582	7582
7583	7583
7584	7584	HB4687- 210 -LRB103 36052 LNS 66139 b HB4687 - 210 - LRB103 36052 LNS 66139 b
7585	7585	HB4687 - 210 - LRB103 36052 LNS 66139 b
7586	7586	1 purposes of this item (iii), that the costs could
7587	7587	2 reasonably be avoided only by ceasing operations
7588	7588	3 of the zero emission facility; and
7589	7589	4 (iv) a commitment to continue operating, for
7590	7590	5 the duration of the contract or contracts executed
7591	7591	6 under the procurement held under this subsection
7592	7592	7 (d-5), the zero emission facility that produces
7593	7593	8 the zero emission credits to be procured in the
7594	7594	9 procurement.
7595	7595	10 The information described in item (iii) of this
7596	7596	11 subparagraph (A) may be submitted on a confidential
7597	7597	12 basis and shall be treated and maintained by the
7598	7598	13 Agency, the procurement administrator, and the
7599	7599	14 Commission as confidential and proprietary and exempt
7600	7600	15 from disclosure under subparagraphs (a) and (g) of
7601	7601	16 paragraph (1) of Section 7 of the Freedom of
7602	7602	17 Information Act. The Office of Attorney General shall
7603	7603	18 have access to, and maintain the confidentiality of,
7604	7604	19 such information pursuant to Section 6.5 of the
7605	7605	20 Attorney General Act.
7606	7606	21 (B) The price for each zero emission credit
7607	7607	22 procured under this subsection (d-5) for each delivery
7608	7608	23 year shall be in an amount that equals the Social Cost
7609	7609	24 of Carbon, expressed on a price per megawatthour
7610	7610	25 basis. However, to ensure that the procurement remains
7611	7611	26 affordable to retail customers in this State if
7612	7612
7613	7613
7614	7614
7615	7615
7616	7616
7617	7617	HB4687 - 210 - LRB103 36052 LNS 66139 b
7618	7618
7619	7619
7620	7620	HB4687- 211 -LRB103 36052 LNS 66139 b HB4687 - 211 - LRB103 36052 LNS 66139 b
7621	7621	HB4687 - 211 - LRB103 36052 LNS 66139 b
7622	7622	1 electricity prices increase, the price in an
7623	7623	2 applicable delivery year shall be reduced below the
7624	7624	3 Social Cost of Carbon by the amount ("Price
7625	7625	4 Adjustment") by which the market price index for the
7626	7626	5 applicable delivery year exceeds the baseline market
7627	7627	6 price index for the consecutive 12-month period ending
7628	7628	7 May 31, 2016. If the Price Adjustment is greater than
7629	7629	8 or equal to the Social Cost of Carbon in an applicable
7630	7630	9 delivery year, then no payments shall be due in that
7631	7631	10 delivery year. The components of this calculation are
7632	7632	11 defined as follows:
7633	7633	12 (i) Social Cost of Carbon: The Social Cost of
7634	7634	13 Carbon is $16.50 per megawatthour, which is based
7635	7635	14 on the U.S. Interagency Working Group on Social
7636	7636	15 Cost of Carbon's price in the August 2016
7637	7637	16 Technical Update using a 3% discount rate,
7638	7638	17 adjusted for inflation for each year of the
7639	7639	18 program. Beginning with the delivery year
7640	7640	19 commencing June 1, 2023, the price per
7641	7641	20 megawatthour shall increase by $1 per
7642	7642	21 megawatthour, and continue to increase by an
7643	7643	22 additional $1 per megawatthour each delivery year
7644	7644	23 thereafter.
7645	7645	24 (ii) Baseline market price index: The baseline
7646	7646	25 market price index for the consecutive 12-month
7647	7647	26 period ending May 31, 2016 is $31.40 per
7648	7648
7649	7649
7650	7650
7651	7651
7652	7652
7653	7653	HB4687 - 211 - LRB103 36052 LNS 66139 b
7654	7654
7655	7655
7656	7656	HB4687- 212 -LRB103 36052 LNS 66139 b HB4687 - 212 - LRB103 36052 LNS 66139 b
7657	7657	HB4687 - 212 - LRB103 36052 LNS 66139 b
7658	7658	1 megawatthour, which is based on the sum of (aa)
7659	7659	2 the average day-ahead energy price across all
7660	7660	3 hours of such 12-month period at the PJM
7661	7661	4 Interconnection LLC Northern Illinois Hub, (bb)
7662	7662	5 50% multiplied by the Base Residual Auction, or
7663	7663	6 its successor, capacity price for the rest of the
7664	7664	7 RTO zone group determined by PJM Interconnection
7665	7665	8 LLC, divided by 24 hours per day, and (cc) 50%
7666	7666	9 multiplied by the Planning Resource Auction, or
7667	7667	10 its successor, capacity price for Zone 4
7668	7668	11 determined by the Midcontinent Independent System
7669	7669	12 Operator, Inc., divided by 24 hours per day.
7670	7670	13 (iii) Market price index: The market price
7671	7671	14 index for a delivery year shall be the sum of
7672	7672	15 projected energy prices and projected capacity
7673	7673	16 prices determined as follows:
7674	7674	17 (aa) Projected energy prices: the
7675	7675	18 projected energy prices for the applicable
7676	7676	19 delivery year shall be calculated once for the
7677	7677	20 year using the forward market price for the
7678	7678	21 PJM Interconnection, LLC Northern Illinois
7679	7679	22 Hub. The forward market price shall be
7680	7680	23 calculated as follows: the energy forward
7681	7681	24 prices for each month of the applicable
7682	7682	25 delivery year averaged for each trade date
7683	7683	26 during the calendar year immediately preceding
7684	7684
7685	7685
7686	7686
7687	7687
7688	7688
7689	7689	HB4687 - 212 - LRB103 36052 LNS 66139 b
7690	7690
7691	7691
7692	7692	HB4687- 213 -LRB103 36052 LNS 66139 b HB4687 - 213 - LRB103 36052 LNS 66139 b
7693	7693	HB4687 - 213 - LRB103 36052 LNS 66139 b
7694	7694	1 that delivery year to produce a single energy
7695	7695	2 forward price for the delivery year. The
7696	7696	3 forward market price calculation shall use
7697	7697	4 data published by the Intercontinental
7698	7698	5 Exchange, or its successor.
7699	7699	6 (bb) Projected capacity prices:
7700	7700	7 (I) For the delivery years commencing
7701	7701	8 June 1, 2017, June 1, 2018, and June 1,
7702	7702	9 2019, the projected capacity price shall
7703	7703	10 be equal to the sum of (1) 50% multiplied
7704	7704	11 by the Base Residual Auction, or its
7705	7705	12 successor, price for the rest of the RTO
7706	7706	13 zone group as determined by PJM
7707	7707	14 Interconnection LLC, divided by 24 hours
7708	7708	15 per day and, (2) 50% multiplied by the
7709	7709	16 resource auction price determined in the
7710	7710	17 resource auction administered by the
7711	7711	18 Midcontinent Independent System Operator,
7712	7712	19 Inc., in which the largest percentage of
7713	7713	20 load cleared for Local Resource Zone 4,
7714	7714	21 divided by 24 hours per day, and where
7715	7715	22 such price is determined by the
7716	7716	23 Midcontinent Independent System Operator,
7717	7717	24 Inc.
7718	7718	25 (II) For the delivery year commencing
7719	7719	26 June 1, 2020, and each year thereafter,
7720	7720
7721	7721
7722	7722
7723	7723
7724	7724
7725	7725	HB4687 - 213 - LRB103 36052 LNS 66139 b
7726	7726
7727	7727
7728	7728	HB4687- 214 -LRB103 36052 LNS 66139 b HB4687 - 214 - LRB103 36052 LNS 66139 b
7729	7729	HB4687 - 214 - LRB103 36052 LNS 66139 b
7730	7730	1 the projected capacity price shall be
7731	7731	2 equal to the sum of (1) 50% multiplied by
7732	7732	3 the Base Residual Auction, or its
7733	7733	4 successor, price for the ComEd zone as
7734	7734	5 determined by PJM Interconnection LLC,
7735	7735	6 divided by 24 hours per day, and (2) 50%
7736	7736	7 multiplied by the resource auction price
7737	7737	8 determined in the resource auction
7738	7738	9 administered by the Midcontinent
7739	7739	10 Independent System Operator, Inc., in
7740	7740	11 which the largest percentage of load
7741	7741	12 cleared for Local Resource Zone 4, divided
7742	7742	13 by 24 hours per day, and where such price
7743	7743	14 is determined by the Midcontinent
7744	7744	15 Independent System Operator, Inc.
7745	7745	16 For purposes of this subsection (d-5):
7746	7746	17 "Rest of the RTO" and "ComEd Zone" shall have
7747	7747	18 the meaning ascribed to them by PJM
7748	7748	19 Interconnection, LLC.
7749	7749	20 "RTO" means regional transmission
7750	7750	21 organization.
7751	7751	22 (C) No later than 45 days after June 1, 2017 (the
7752	7752	23 effective date of Public Act 99-906), the Agency shall
7753	7753	24 publish its proposed zero emission standard
7754	7754	25 procurement plan. The plan shall be consistent with
7755	7755	26 the provisions of this paragraph (1) and shall provide
7756	7756
7757	7757
7758	7758
7759	7759
7760	7760
7761	7761	HB4687 - 214 - LRB103 36052 LNS 66139 b
7762	7762
7763	7763
7764	7764	HB4687- 215 -LRB103 36052 LNS 66139 b HB4687 - 215 - LRB103 36052 LNS 66139 b
7765	7765	HB4687 - 215 - LRB103 36052 LNS 66139 b
7766	7766	1 that winning bids shall be selected based on public
7767	7767	2 interest criteria that include, but are not limited
7768	7768	3 to, minimizing carbon dioxide emissions that result
7769	7769	4 from electricity consumed in Illinois and minimizing
7770	7770	5 sulfur dioxide, nitrogen oxide, and particulate matter
7771	7771	6 emissions that adversely affect the citizens of this
7772	7772	7 State. In particular, the selection of winning bids
7773	7773	8 shall take into account the incremental environmental
7774	7774	9 benefits resulting from the procurement, such as any
7775	7775	10 existing environmental benefits that are preserved by
7776	7776	11 the procurements held under Public Act 99-906 and
7777	7777	12 would cease to exist if the procurements were not
7778	7778	13 held, including the preservation of zero emission
7779	7779	14 facilities. The plan shall also describe in detail how
7780	7780	15 each public interest factor shall be considered and
7781	7781	16 weighted in the bid selection process to ensure that
7782	7782	17 the public interest criteria are applied to the
7783	7783	18 procurement and given full effect.
7784	7784	19 For purposes of developing the plan, the Agency
7785	7785	20 shall consider any reports issued by a State agency,
7786	7786	21 board, or commission under House Resolution 1146 of
7787	7787	22 the 98th General Assembly and paragraph (4) of
7788	7788	23 subsection (d) of this Section, as well as publicly
7789	7789	24 available analyses and studies performed by or for
7790	7790	25 regional transmission organizations that serve the
7791	7791	26 State and their independent market monitors.
7792	7792
7793	7793
7794	7794
7795	7795
7796	7796
7797	7797	HB4687 - 215 - LRB103 36052 LNS 66139 b
7798	7798
7799	7799
7800	7800	HB4687- 216 -LRB103 36052 LNS 66139 b HB4687 - 216 - LRB103 36052 LNS 66139 b
7801	7801	HB4687 - 216 - LRB103 36052 LNS 66139 b
7802	7802	1 Upon publishing of the zero emission standard
7803	7803	2 procurement plan, copies of the plan shall be posted
7804	7804	3 and made publicly available on the Agency's website.
7805	7805	4 All interested parties shall have 10 days following
7806	7806	5 the date of posting to provide comment to the Agency on
7807	7807	6 the plan. All comments shall be posted to the Agency's
7808	7808	7 website. Following the end of the comment period, but
7809	7809	8 no more than 60 days later than June 1, 2017 (the
7810	7810	9 effective date of Public Act 99-906), the Agency shall
7811	7811	10 revise the plan as necessary based on the comments
7812	7812	11 received and file its zero emission standard
7813	7813	12 procurement plan with the Commission.
7814	7814	13 If the Commission determines that the plan will
7815	7815	14 result in the procurement of cost-effective zero
7816	7816	15 emission credits, then the Commission shall, after
7817	7817	16 notice and hearing, but no later than 45 days after the
7818	7818	17 Agency filed the plan, approve the plan or approve
7819	7819	18 with modification. For purposes of this subsection
7820	7820	19 (d-5), "cost effective" means the projected costs of
7821	7821	20 procuring zero emission credits from zero emission
7822	7822	21 facilities do not cause the limit stated in paragraph
7823	7823	22 (2) of this subsection to be exceeded.
7824	7824	23 (C-5) As part of the Commission's review and
7825	7825	24 acceptance or rejection of the procurement results,
7826	7826	25 the Commission shall, in its public notice of
7827	7827	26 successful bidders:
7828	7828
7829	7829
7830	7830
7831	7831
7832	7832
7833	7833	HB4687 - 216 - LRB103 36052 LNS 66139 b
7834	7834
7835	7835
7836	7836	HB4687- 217 -LRB103 36052 LNS 66139 b HB4687 - 217 - LRB103 36052 LNS 66139 b
7837	7837	HB4687 - 217 - LRB103 36052 LNS 66139 b
7838	7838	1 (i) identify how the winning bids satisfy the
7839	7839	2 public interest criteria described in subparagraph
7840	7840	3 (C) of this paragraph (1) of minimizing carbon
7841	7841	4 dioxide emissions that result from electricity
7842	7842	5 consumed in Illinois and minimizing sulfur
7843	7843	6 dioxide, nitrogen oxide, and particulate matter
7844	7844	7 emissions that adversely affect the citizens of
7845	7845	8 this State;
7846	7846	9 (ii) specifically address how the selection of
7847	7847	10 winning bids takes into account the incremental
7848	7848	11 environmental benefits resulting from the
7849	7849	12 procurement, including any existing environmental
7850	7850	13 benefits that are preserved by the procurements
7851	7851	14 held under Public Act 99-906 and would have ceased
7852	7852	15 to exist if the procurements had not been held,
7853	7853	16 such as the preservation of zero emission
7854	7854	17 facilities;
7855	7855	18 (iii) quantify the environmental benefit of
7856	7856	19 preserving the resources identified in item (ii)
7857	7857	20 of this subparagraph (C-5), including the
7858	7858	21 following:
7859	7859	22 (aa) the value of avoided greenhouse gas
7860	7860	23 emissions measured as the product of the zero
7861	7861	24 emission facilities' output over the contract
7862	7862	25 term multiplied by the U.S. Environmental
7863	7863	26 Protection Agency eGrid subregion carbon
7864	7864
7865	7865
7866	7866
7867	7867
7868	7868
7869	7869	HB4687 - 217 - LRB103 36052 LNS 66139 b
7870	7870
7871	7871
7872	7872	HB4687- 218 -LRB103 36052 LNS 66139 b HB4687 - 218 - LRB103 36052 LNS 66139 b
7873	7873	HB4687 - 218 - LRB103 36052 LNS 66139 b
7874	7874	1 dioxide emission rate and the U.S. Interagency
7875	7875	2 Working Group on Social Cost of Carbon's price
7876	7876	3 in the August 2016 Technical Update using a 3%
7877	7877	4 discount rate, adjusted for inflation for each
7878	7878	5 delivery year; and
7879	7879	6 (bb) the costs of replacement with other
7880	7880	7 zero carbon dioxide resources, including wind
7881	7881	8 and photovoltaic, based upon the simple
7882	7882	9 average of the following:
7883	7883	10 (I) the price, or if there is more
7884	7884	11 than one price, the average of the prices,
7885	7885	12 paid for renewable energy credits from new
7886	7886	13 utility-scale wind projects in the
7887	7887	14 procurement events specified in item (i)
7888	7888	15 of subparagraph (G) of paragraph (1) of
7889	7889	16 subsection (c) of this Section; and
7890	7890	17 (II) the price, or if there is more
7891	7891	18 than one price, the average of the prices,
7892	7892	19 paid for renewable energy credits from new
7893	7893	20 utility-scale solar projects and
7894	7894	21 brownfield site photovoltaic projects in
7895	7895	22 the procurement events specified in item
7896	7896	23 (ii) of subparagraph (G) of paragraph (1)
7897	7897	24 of subsection (c) of this Section and,
7898	7898	25 after January 1, 2015, renewable energy
7899	7899	26 credits from photovoltaic distributed
7900	7900
7901	7901
7902	7902
7903	7903
7904	7904
7905	7905	HB4687 - 218 - LRB103 36052 LNS 66139 b
7906	7906
7907	7907
7908	7908	HB4687- 219 -LRB103 36052 LNS 66139 b HB4687 - 219 - LRB103 36052 LNS 66139 b
7909	7909	HB4687 - 219 - LRB103 36052 LNS 66139 b
7910	7910	1 generation projects in procurement events
7911	7911	2 held under subsection (c) of this Section.
7912	7912	3 Each utility shall enter into binding contractual
7913	7913	4 arrangements with the winning suppliers.
7914	7914	5 The procurement described in this subsection
7915	7915	6 (d-5), including, but not limited to, the execution of
7916	7916	7 all contracts procured, shall be completed no later
7917	7917	8 than May 10, 2017. Based on the effective date of
7918	7918	9 Public Act 99-906, the Agency and Commission may, as
7919	7919	10 appropriate, modify the various dates and timelines
7920	7920	11 under this subparagraph and subparagraphs (C) and (D)
7921	7921	12 of this paragraph (1). The procurement and plan
7922	7922	13 approval processes required by this subsection (d-5)
7923	7923	14 shall be conducted in conjunction with the procurement
7924	7924	15 and plan approval processes required by subsection (c)
7925	7925	16 of this Section and Section 16-111.5 of the Public
7926	7926	17 Utilities Act, to the extent practicable.
7927	7927	18 Notwithstanding whether a procurement event is
7928	7928	19 conducted under Section 16-111.5 of the Public
7929	7929	20 Utilities Act, the Agency shall immediately initiate a
7930	7930	21 procurement process on June 1, 2017 (the effective
7931	7931	22 date of Public Act 99-906).
7932	7932	23 (D) Following the procurement event described in
7933	7933	24 this paragraph (1) and consistent with subparagraph
7934	7934	25 (B) of this paragraph (1), the Agency shall calculate
7935	7935	26 the payments to be made under each contract for the
7936	7936
7937	7937
7938	7938
7939	7939
7940	7940
7941	7941	HB4687 - 219 - LRB103 36052 LNS 66139 b
7942	7942
7943	7943
7944	7944	HB4687- 220 -LRB103 36052 LNS 66139 b HB4687 - 220 - LRB103 36052 LNS 66139 b
7945	7945	HB4687 - 220 - LRB103 36052 LNS 66139 b
7946	7946	1 next delivery year based on the market price index for
7947	7947	2 that delivery year. The Agency shall publish the
7948	7948	3 payment calculations no later than May 25, 2017 and
7949	7949	4 every May 25 thereafter.
7950	7950	5 (E) Notwithstanding the requirements of this
7951	7951	6 subsection (d-5), the contracts executed under this
7952	7952	7 subsection (d-5) shall provide that the zero emission
7953	7953	8 facility may, as applicable, suspend or terminate
7954	7954	9 performance under the contracts in the following
7955	7955	10 instances:
7956	7956	11 (i) A zero emission facility shall be excused
7957	7957	12 from its performance under the contract for any
7958	7958	13 cause beyond the control of the resource,
7959	7959	14 including, but not restricted to, acts of God,
7960	7960	15 flood, drought, earthquake, storm, fire,
7961	7961	16 lightning, epidemic, war, riot, civil disturbance
7962	7962	17 or disobedience, labor dispute, labor or material
7963	7963	18 shortage, sabotage, acts of public enemy,
7964	7964	19 explosions, orders, regulations or restrictions
7965	7965	20 imposed by governmental, military, or lawfully
7966	7966	21 established civilian authorities, which, in any of
7967	7967	22 the foregoing cases, by exercise of commercially
7968	7968	23 reasonable efforts the zero emission facility
7969	7969	24 could not reasonably have been expected to avoid,
7970	7970	25 and which, by the exercise of commercially
7971	7971	26 reasonable efforts, it has been unable to
7972	7972
7973	7973
7974	7974
7975	7975
7976	7976
7977	7977	HB4687 - 220 - LRB103 36052 LNS 66139 b
7978	7978
7979	7979
7980	7980	HB4687- 221 -LRB103 36052 LNS 66139 b HB4687 - 221 - LRB103 36052 LNS 66139 b
7981	7981	HB4687 - 221 - LRB103 36052 LNS 66139 b
7982	7982	1 overcome. In such event, the zero emission
7983	7983	2 facility shall be excused from performance for the
7984	7984	3 duration of the event, including, but not limited
7985	7985	4 to, delivery of zero emission credits, and no
7986	7986	5 payment shall be due to the zero emission facility
7987	7987	6 during the duration of the event.
7988	7988	7 (ii) A zero emission facility shall be
7989	7989	8 permitted to terminate the contract if legislation
7990	7990	9 is enacted into law by the General Assembly that
7991	7991	10 imposes or authorizes a new tax, special
7992	7992	11 assessment, or fee on the generation of
7993	7993	12 electricity, the ownership or leasehold of a
7994	7994	13 generating unit, or the privilege or occupation of
7995	7995	14 such generation, ownership, or leasehold of
7996	7996	15 generation units by a zero emission facility.
7997	7997	16 However, the provisions of this item (ii) do not
7998	7998	17 apply to any generally applicable tax, special
7999	7999	18 assessment or fee, or requirements imposed by
8000	8000	19 federal law.
8001	8001	20 (iii) A zero emission facility shall be
8002	8002	21 permitted to terminate the contract in the event
8003	8003	22 that the resource requires capital expenditures in
8004	8004	23 excess of $40,000,000 that were neither known nor
8005	8005	24 reasonably foreseeable at the time it executed the
8006	8006	25 contract and that a prudent owner or operator of
8007	8007	26 such resource would not undertake.
8008	8008
8009	8009
8010	8010
8011	8011
8012	8012
8013	8013	HB4687 - 221 - LRB103 36052 LNS 66139 b
8014	8014
8015	8015
8016	8016	HB4687- 222 -LRB103 36052 LNS 66139 b HB4687 - 222 - LRB103 36052 LNS 66139 b
8017	8017	HB4687 - 222 - LRB103 36052 LNS 66139 b
8018	8018	1 (iv) A zero emission facility shall be
8019	8019	2 permitted to terminate the contract in the event
8020	8020	3 the Nuclear Regulatory Commission terminates the
8021	8021	4 resource's license.
8022	8022	5 (F) If the zero emission facility elects to
8023	8023	6 terminate a contract under subparagraph (E) of this
8024	8024	7 paragraph (1), then the Commission shall reopen the
8025	8025	8 docket in which the Commission approved the zero
8026	8026	9 emission standard procurement plan under subparagraph
8027	8027	10 (C) of this paragraph (1) and, after notice and
8028	8028	11 hearing, enter an order acknowledging the contract
8029	8029	12 termination election if such termination is consistent
8030	8030	13 with the provisions of this subsection (d-5).
8031	8031	14 (2) For purposes of this subsection (d-5), the amount
8032	8032	15 paid per kilowatt hour kilowatthour means the total amount
8033	8033	16 paid for electric service expressed on a per-kilowatt-hour
8034	8034	17 per kilowatthour basis. For purposes of this subsection
8035	8035	18 (d-5), the total amount paid for electric service
8036	8036	19 includes, without limitation, amounts paid for supply,
8037	8037	20 transmission, distribution, surcharges, and add-on taxes.
8038	8038	21 Notwithstanding the requirements of this subsection
8039	8039	22 (d-5), the contracts executed under this subsection (d-5)
8040	8040	23 shall provide that the total of zero emission credits
8041	8041	24 procured under a procurement plan shall be subject to the
8042	8042	25 limitations of this paragraph (2). For each delivery year,
8043	8043	26 the contractual volume receiving payments in such year
8044	8044
8045	8045
8046	8046
8047	8047
8048	8048
8049	8049	HB4687 - 222 - LRB103 36052 LNS 66139 b
8050	8050
8051	8051
8052	8052	HB4687- 223 -LRB103 36052 LNS 66139 b HB4687 - 223 - LRB103 36052 LNS 66139 b
8053	8053	HB4687 - 223 - LRB103 36052 LNS 66139 b
8054	8054	1 shall be reduced for all retail customers based on the
8055	8055	2 amount necessary to limit the net increase that delivery
8056	8056	3 year to the costs of those credits included in the amounts
8057	8057	4 paid by eligible retail customers in connection with
8058	8058	5 electric service to no more than 1.65% of the amount paid
8059	8059	6 per kilowatt hour kilowatthour by eligible retail
8060	8060	7 customers during the year ending May 31, 2009. The result
8061	8061	8 of this computation shall apply to and reduce the
8062	8062	9 procurement for all retail customers, and all those
8063	8063	10 customers shall pay the same single, uniform cents per
8064	8064	11 kilowatt-hour kilowatthour charge under subsection (k) of
8065	8065	12 Section 16-108 of the Public Utilities Act. To arrive at a
8066	8066	13 maximum dollar amount of zero emission credits to be paid
8067	8067	14 for the particular delivery year, the resulting
8068	8068	15 per-kilowatt-hour per kilowatthour amount shall be applied
8069	8069	16 to the actual amount of kilowatt hours kilowatthours of
8070	8070	17 electricity delivered by the electric utility in the
8071	8071	18 delivery year immediately prior to the procurement, to all
8072	8072	19 retail customers in its service territory. Unpaid
8073	8073	20 contractual volume for any delivery year shall be paid in
8074	8074	21 any subsequent delivery year in which such payments can be
8075	8075	22 made without exceeding the amount specified in this
8076	8076	23 paragraph (2). The calculations required by this paragraph
8077	8077	24 (2) shall be made only once for each procurement plan
8078	8078	25 year. Once the determination as to the amount of zero
8079	8079	26 emission credits to be paid is made based on the
8080	8080
8081	8081
8082	8082
8083	8083
8084	8084
8085	8085	HB4687 - 223 - LRB103 36052 LNS 66139 b
8086	8086
8087	8087
8088	8088	HB4687- 224 -LRB103 36052 LNS 66139 b HB4687 - 224 - LRB103 36052 LNS 66139 b
8089	8089	HB4687 - 224 - LRB103 36052 LNS 66139 b
8090	8090	1 calculations set forth in this paragraph (2), no
8091	8091	2 subsequent rate impact determinations shall be made and no
8092	8092	3 adjustments to those contract amounts shall be allowed.
8093	8093	4 All costs incurred under those contracts and in
8094	8094	5 implementing this subsection (d-5) shall be recovered by
8095	8095	6 the electric utility as provided in this Section.
8096	8096	7 No later than June 30, 2019, the Commission shall
8097	8097	8 review the limitation on the amount of zero emission
8098	8098	9 credits procured under this subsection (d-5) and report to
8099	8099	10 the General Assembly its findings as to whether that
8100	8100	11 limitation unduly constrains the procurement of
8101	8101	12 cost-effective zero emission credits.
8102	8102	13 (3) Six years after the execution of a contract under
8103	8103	14 this subsection (d-5), the Agency shall determine whether
8104	8104	15 the actual zero emission credit payments received by the
8105	8105	16 supplier over the 6-year period exceed the Average ZEC
8106	8106	17 Payment. In addition, at the end of the term of a contract
8107	8107	18 executed under this subsection (d-5), or at the time, if
8108	8108	19 any, a zero emission facility's contract is terminated
8109	8109	20 under subparagraph (E) of paragraph (1) of this subsection
8110	8110	21 (d-5), then the Agency shall determine whether the actual
8111	8111	22 zero emission credit payments received by the supplier
8112	8112	23 over the term of the contract exceed the Average ZEC
8113	8113	24 Payment, after taking into account any amounts previously
8114	8114	25 credited back to the utility under this paragraph (3). If
8115	8115	26 the Agency determines that the actual zero emission credit
8116	8116
8117	8117
8118	8118
8119	8119
8120	8120
8121	8121	HB4687 - 224 - LRB103 36052 LNS 66139 b
8122	8122
8123	8123
8124	8124	HB4687- 225 -LRB103 36052 LNS 66139 b HB4687 - 225 - LRB103 36052 LNS 66139 b
8125	8125	HB4687 - 225 - LRB103 36052 LNS 66139 b
8126	8126	1 payments received by the supplier over the relevant period
8127	8127	2 exceed the Average ZEC Payment, then the supplier shall
8128	8128	3 credit the difference back to the utility. The amount of
8129	8129	4 the credit shall be remitted to the applicable electric
8130	8130	5 utility no later than 120 days after the Agency's
8131	8131	6 determination, which the utility shall reflect as a credit
8132	8132	7 on its retail customer bills as soon as practicable;
8133	8133	8 however, the credit remitted to the utility shall not
8134	8134	9 exceed the total amount of payments received by the
8135	8135	10 facility under its contract.
8136	8136	11 For purposes of this Section, the Average ZEC Payment
8137	8137	12 shall be calculated by multiplying the quantity of zero
8138	8138	13 emission credits delivered under the contract times the
8139	8139	14 average contract price. The average contract price shall
8140	8140	15 be determined by subtracting the amount calculated under
8141	8141	16 subparagraph (B) of this paragraph (3) from the amount
8142	8142	17 calculated under subparagraph (A) of this paragraph (3),
8143	8143	18 as follows:
8144	8144	19 (A) The average of the Social Cost of Carbon, as
8145	8145	20 defined in subparagraph (B) of paragraph (1) of this
8146	8146	21 subsection (d-5), during the term of the contract.
8147	8147	22 (B) The average of the market price indices, as
8148	8148	23 defined in subparagraph (B) of paragraph (1) of this
8149	8149	24 subsection (d-5), during the term of the contract,
8150	8150	25 minus the baseline market price index, as defined in
8151	8151	26 subparagraph (B) of paragraph (1) of this subsection
8152	8152
8153	8153
8154	8154
8155	8155
8156	8156
8157	8157	HB4687 - 225 - LRB103 36052 LNS 66139 b
8158	8158
8159	8159
8160	8160	HB4687- 226 -LRB103 36052 LNS 66139 b HB4687 - 226 - LRB103 36052 LNS 66139 b
8161	8161	HB4687 - 226 - LRB103 36052 LNS 66139 b
8162	8162	1 (d-5).
8163	8163	2 If the subtraction yields a negative number, then the
8164	8164	3 Average ZEC Payment shall be zero.
8165	8165	4 (4) Cost-effective zero emission credits procured from
8166	8166	5 zero emission facilities shall satisfy the applicable
8167	8167	6 definitions set forth in Section 1-10 of this Act.
8168	8168	7 (5) The electric utility shall retire all zero
8169	8169	8 emission credits used to comply with the requirements of
8170	8170	9 this subsection (d-5).
8171	8171	10 (6) Electric utilities shall be entitled to recover
8172	8172	11 all of the costs associated with the procurement of zero
8173	8173	12 emission credits through an automatic adjustment clause
8174	8174	13 tariff in accordance with subsection (k) and (m) of
8175	8175	14 Section 16-108 of the Public Utilities Act, and the
8176	8176	15 contracts executed under this subsection (d-5) shall
8177	8177	16 provide that the utilities' payment obligations under such
8178	8178	17 contracts shall be reduced if an adjustment is required
8179	8179	18 under subsection (m) of Section 16-108 of the Public
8180	8180	19 Utilities Act.
8181	8181	20 (7) This subsection (d-5) shall become inoperative on
8182	8182	21 January 1, 2028.
8183	8183	22 (d-10) (Blank). Nuclear Plant Assistance; carbon
8184	8184	23 mitigation credits.
8185	8185	24 (1) The General Assembly finds:
8186	8186	25 (A) The health, welfare, and prosperity of all
8187	8187	26 Illinois citizens require that the State of Illinois act
8188	8188
8189	8189
8190	8190
8191	8191
8192	8192
8193	8193	HB4687 - 226 - LRB103 36052 LNS 66139 b
8194	8194
8195	8195
8196	8196	HB4687- 227 -LRB103 36052 LNS 66139 b HB4687 - 227 - LRB103 36052 LNS 66139 b
8197	8197	HB4687 - 227 - LRB103 36052 LNS 66139 b
8198	8198	1 to avoid and not increase carbon emissions from electric
8199	8199	2 generation sources while continuing to ensure affordable,
8200	8200	3 stable, and reliable electricity to all citizens.
8201	8201	4 (B) Absent immediate action by the State to preserve
8202	8202	5 existing carbon-free energy resources, those resources may
8203	8203	6 retire, and the electric generation needs of Illinois'
8204	8204	7 retail customers may be met instead by facilities that
8205	8205	8 emit significant amounts of carbon pollution and other
8206	8206	9 harmful air pollutants at a high social and economic cost
8207	8207	10 until Illinois is able to develop other forms of clean
8208	8208	11 energy.
8209	8209	12 (C) The General Assembly finds that nuclear power
8210	8210	13 generation is necessary for the State's transition to 100%
8211	8211	14 clean energy, and ensuring continued operation of nuclear
8212	8212	15 plants advances environmental and public health interests
8213	8213	16 through providing carbon-free electricity while reducing
8214	8214	17 the air pollution profile of the Illinois energy
8215	8215	18 generation fleet.
8216	8216	19 (D) The clean energy attributes of nuclear generation
8217	8217	20 facilities support the State in its efforts to achieve
8218	8218	21 100% clean energy.
8219	8219	22 (E) The State currently invests in various forms of
8220	8220	23 clean energy, including, but not limited to, renewable
8221	8221	24 energy, energy efficiency, and low-emission vehicles,
8222	8222	25 among others.
8223	8223	26 (F) The Environmental Protection Agency commissioned
8224	8224
8225	8225
8226	8226
8227	8227
8228	8228
8229	8229	HB4687 - 227 - LRB103 36052 LNS 66139 b
8230	8230
8231	8231
8232	8232	HB4687- 228 -LRB103 36052 LNS 66139 b HB4687 - 228 - LRB103 36052 LNS 66139 b
8233	8233	HB4687 - 228 - LRB103 36052 LNS 66139 b
8234	8234	1 an independent audit which provided a detailed assessment
8235	8235	2 of the financial condition of the Illinois nuclear fleet
8236	8236	3 to evaluate its financial viability and whether the
8237	8237	4 environmental benefits of such resources were at risk. The
8238	8238	5 report identified the risk of losing the environmental
8239	8239	6 benefits of several specific nuclear units. The report
8240	8240	7 also identified that the LaSalle County Generating Station
8241	8241	8 will continue to operate through 2026 and therefore is not
8242	8242	9 eligible to participate in the carbon mitigation credit
8243	8243	10 program.
8244	8244	11 (G) Nuclear plants provide carbon-free energy, which
8245	8245	12 helps to avoid many health-related negative impacts for
8246	8246	13 Illinois residents.
8247	8247	14 (H) The procurement of carbon mitigation credits
8248	8248	15 representing the environmental benefits of carbon-free
8249	8249	16 generation will further the State's efforts at achieving
8250	8250	17 100% clean energy and decarbonizing the electricity sector
8251	8251	18 in a safe, reliable, and affordable manner. Further, the
8252	8252	19 procurement of carbon emission credits will enhance the
8253	8253	20 health and welfare of Illinois residents through decreased
8254	8254	21 reliance on more highly polluting generation.
8255	8255	22 (I) The General Assembly therefore finds it necessary
8256	8256	23 to establish carbon mitigation credits to ensure decreased
8257	8257	24 reliance on more carbon-intensive energy resources, for
8258	8258	25 transitioning to a fully decarbonized electricity sector,
8259	8259	26 and to help ensure health and welfare of the State's
8260	8260
8261	8261
8262	8262
8263	8263
8264	8264
8265	8265	HB4687 - 228 - LRB103 36052 LNS 66139 b
8266	8266
8267	8267
8268	8268	HB4687- 229 -LRB103 36052 LNS 66139 b HB4687 - 229 - LRB103 36052 LNS 66139 b
8269	8269	HB4687 - 229 - LRB103 36052 LNS 66139 b
8270	8270	1 residents.
8271	8271	2 (2) As used in this subsection:
8272	8272	3 "Baseline costs" means costs used to establish a customer
8273	8273	4 protection cap that have been evaluated through an independent
8274	8274	5 audit of a carbon-free energy resource conducted by the
8275	8275	6 Environmental Protection Agency that evaluated projected
8276	8276	7 annual costs for operation and maintenance expenses; fully
8277	8277	8 allocated overhead costs, which shall be allocated using the
8278	8278	9 methodology developed by the Institute for Nuclear Power
8279	8279	10 Operations; fuel expenditures; nonfuel capital expenditures;
8280	8280	11 spent fuel expenditures; a return on working capital; the cost
8281	8281	12 of operational and market risks that could be avoided by
8282	8282	13 ceasing operation; and any other costs necessary for continued
8283	8283	14 operations, provided that "necessary" means, for purposes of
8284	8284	15 this definition, that the costs could reasonably be avoided
8285	8285	16 only by ceasing operations of the carbon-free energy resource.
8286	8286	17 "Carbon mitigation credit" means a tradable credit that
8287	8287	18 represents the carbon emission reduction attributes of one
8288	8288	19 megawatt-hour of energy produced from a carbon-free energy
8289	8289	20 resource.
8290	8290	21 "Carbon-free energy resource" means a generation facility
8291	8291	22 that: (1) is fueled by nuclear power; and (2) is
8292	8292	23 interconnected to PJM Interconnection, LLC.
8293	8293	24 (3) Procurement.
8294	8294	25 (A) Beginning with the delivery year commencing on
8295	8295	26 June 1, 2022, the Agency shall, for electric utilities
8296	8296
8297	8297
8298	8298
8299	8299
8300	8300
8301	8301	HB4687 - 229 - LRB103 36052 LNS 66139 b
8302	8302
8303	8303
8304	8304	HB4687- 230 -LRB103 36052 LNS 66139 b HB4687 - 230 - LRB103 36052 LNS 66139 b
8305	8305	HB4687 - 230 - LRB103 36052 LNS 66139 b
8306	8306	1 serving at least 3,000,000 retail customers in the State,
8307	8307	2 seek to procure contracts for no more than approximately
8308	8308	3 54,500,000 cost-effective carbon mitigation credits from
8309	8309	4 carbon-free energy resources because such credits are
8310	8310	5 necessary to support current levels of carbon-free energy
8311	8311	6 generation and ensure the State meets its carbon dioxide
8312	8312	7 emissions reduction goals. The Agency shall not make a
8313	8313	8 partial award of a contract for carbon mitigation credits
8314	8314	9 covering a fractional amount of a carbon-free energy
8315	8315	10 resource's projected output.
8316	8316	11 (B) Each carbon-free energy resource that intends to
8317	8317	12 participate in a procurement shall be required to submit
8318	8318	13 to the Agency the following information for the resource
8319	8319	14 on or before the date established by the Agency:
8320	8320	15 (i) the in-service date and remaining useful life
8321	8321	16 of the carbon-free energy resource;
8322	8322	17 (ii) the amount of power generated annually for
8323	8323	18 each of the past 10 years, which shall be used to
8324	8324	19 determine the capability of each facility;
8325	8325	20 (iii) a commitment to be reflected in any contract
8326	8326	21 entered into pursuant to this subsection (d-10) to
8327	8327	22 continue operating the carbon-free energy resource at
8328	8328	23 a capacity factor of at least 88% annually on average
8329	8329	24 for the duration of the contract or contracts executed
8330	8330	25 under the procurement held under this subsection
8331	8331	26 (d-10), except in an instance described in
8332	8332
8333	8333
8334	8334
8335	8335
8336	8336
8337	8337	HB4687 - 230 - LRB103 36052 LNS 66139 b
8338	8338
8339	8339
8340	8340	HB4687- 231 -LRB103 36052 LNS 66139 b HB4687 - 231 - LRB103 36052 LNS 66139 b
8341	8341	HB4687 - 231 - LRB103 36052 LNS 66139 b
8342	8342	1 subparagraph (E) of paragraph (1) of subsection (d-5)
8343	8343	2 of this Section or made impracticable as a result of
8344	8344	3 compliance with law or regulation;
8345	8345	4 (iv) financial need and the risk of loss of the
8346	8346	5 environmental benefits of such resource, which shall
8347	8347	6 include the following information:
8348	8348	7 (I) the carbon-free energy resource's cost
8349	8349	8 projections, expressed on a per megawatt-hour
8350	8350	9 basis, over the next 5 delivery years, which shall
8351	8351	10 include the following: operation and maintenance
8352	8352	11 expenses; fully allocated overhead costs, which
8353	8353	12 shall be allocated using the methodology developed
8354	8354	13 by the Institute for Nuclear Power Operations;
8355	8355	14 fuel expenditures; nonfuel capital expenditures;
8356	8356	15 spent fuel expenditures; a return on working
8357	8357	16 capital; the cost of operational and market risks
8358	8358	17 that could be avoided by ceasing operation; and
8359	8359	18 any other costs necessary for continued
8360	8360	19 operations, provided that "necessary" means, for
8361	8361	20 purposes of this subitem (I), that the costs could
8362	8362	21 reasonably be avoided only by ceasing operations
8363	8363	22 of the carbon-free energy resource; and
8364	8364	23 (II) the carbon-free energy resource's revenue
8365	8365	24 projections, including energy, capacity, ancillary
8366	8366	25 services, any other direct State support, known or
8367	8367	26 anticipated federal attribute credits, known or
8368	8368
8369	8369
8370	8370
8371	8371
8372	8372
8373	8373	HB4687 - 231 - LRB103 36052 LNS 66139 b
8374	8374
8375	8375
8376	8376	HB4687- 232 -LRB103 36052 LNS 66139 b HB4687 - 232 - LRB103 36052 LNS 66139 b
8377	8377	HB4687 - 232 - LRB103 36052 LNS 66139 b
8378	8378	1 anticipated tax credits, and any other direct
8379	8379	2 federal support.
8380	8380	3 The information described in this subparagraph (B) may
8381	8381	4 be submitted on a confidential basis and shall be treated
8382	8382	5 and maintained by the Agency, the procurement
8383	8383	6 administrator, and the Commission as confidential and
8384	8384	7 proprietary and exempt from disclosure under subparagraphs
8385	8385	8 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
8386	8386	9 Information Act. The Office of the Attorney General shall
8387	8387	10 have access to, and maintain the confidentiality of, such
8388	8388	11 information pursuant to Section 6.5 of the Attorney
8389	8389	12 General Act.
8390	8390	13 (C) The Agency shall solicit bids for the contracts
8391	8391	14 described in this subsection (d-10) from carbon-free
8392	8392	15 energy resources that have satisfied the requirements of
8393	8393	16 subparagraph (B) of this paragraph (3). The contracts
8394	8394	17 procured pursuant to a procurement event shall reflect,
8395	8395	18 and be subject to, the following terms, requirements, and
8396	8396	19 limitations:
8397	8397	20 (i) Contracts are for delivery of carbon
8398	8398	21 mitigation credits, and are not energy or capacity
8399	8399	22 sales contracts requiring physical delivery. Pursuant
8400	8400	23 to item (iii), contract payments shall fully deduct
8401	8401	24 the value of any monetized federal production tax
8402	8402	25 credits, credits issued pursuant to a federal clean
8403	8403	26 energy standard, and other federal credits if
8404	8404
8405	8405
8406	8406
8407	8407
8408	8408
8409	8409	HB4687 - 232 - LRB103 36052 LNS 66139 b
8410	8410
8411	8411
8412	8412	HB4687- 233 -LRB103 36052 LNS 66139 b HB4687 - 233 - LRB103 36052 LNS 66139 b
8413	8413	HB4687 - 233 - LRB103 36052 LNS 66139 b
8414	8414	1 applicable.
8415	8415	2 (ii) Contracts for carbon mitigation credits shall
8416	8416	3 commence with the delivery year beginning on June 1,
8417	8417	4 2022 and shall be for a term of 5 delivery years
8418	8418	5 concluding on May 31, 2027.
8419	8419	6 (iii) The price per carbon mitigation credit to be
8420	8420	7 paid under a contract for a given delivery year shall
8421	8421	8 be equal to an accepted bid price less the sum of:
8422	8422	9 (I) one of the following energy price indices,
8423	8423	10 selected by the bidder at the time of the bid for
8424	8424	11 the term of the contract:
8425	8425	12 (aa) the weighted-average hourly day-ahead
8426	8426	13 price for the applicable delivery year at the
8427	8427	14 busbar of all resources procured pursuant to
8428	8428	15 this subsection (d-10), weighted by actual
8429	8429	16 production from the resources; or
8430	8430	17 (bb) the projected energy price for the
8431	8431	18 PJM Interconnection, LLC Northern Illinois Hub
8432	8432	19 for the applicable delivery year determined
8433	8433	20 according to subitem (aa) of item (iii) of
8434	8434	21 subparagraph (B) of paragraph (1) of
8435	8435	22 subsection (d-5).
8436	8436	23 (II) the Base Residual Auction Capacity Price
8437	8437	24 for the ComEd zone as determined by PJM
8438	8438	25 Interconnection, LLC, divided by 24 hours per day,
8439	8439	26 for the applicable delivery year for the first 3
8440	8440
8441	8441
8442	8442
8443	8443
8444	8444
8445	8445	HB4687 - 233 - LRB103 36052 LNS 66139 b
8446	8446
8447	8447
8448	8448	HB4687- 234 -LRB103 36052 LNS 66139 b HB4687 - 234 - LRB103 36052 LNS 66139 b
8449	8449	HB4687 - 234 - LRB103 36052 LNS 66139 b
8450	8450	1 delivery years, and then any subsequent delivery
8451	8451	2 years unless the PJM Interconnection, LLC applies
8452	8452	3 the Minimum Offer Price Rule to participating
8453	8453	4 carbon-free energy resources because they supply
8454	8454	5 carbon mitigation credits pursuant to this Section
8455	8455	6 at which time, upon notice by the carbon-free
8456	8456	7 energy resource to the Commission and subject to
8457	8457	8 the Commission's confirmation, the value under
8458	8458	9 this subitem shall be zero, as further described
8459	8459	10 in the carbon mitigation credit procurement plan;
8460	8460	11 and
8461	8461	12 (III) any value of monetized federal tax
8462	8462	13 credits, direct payments, or similar subsidy
8463	8463	14 provided to the carbon-free energy resource from
8464	8464	15 any unit of government that is not already
8465	8465	16 reflected in energy prices.
8466	8466	17 If the price-per-megawatt-hour calculation
8467	8467	18 performed under item (iii) of this subparagraph (C)
8468	8468	19 for a given delivery year results in a net positive
8469	8469	20 value, then the electric utility counterparty to the
8470	8470	21 contract shall multiply such net value by the
8471	8471	22 applicable contract quantity and remit the amount to
8472	8472	23 the supplier.
8473	8473	24 To protect retail customers from retail rate
8474	8474	25 impacts that may arise upon the initiation of carbon
8475	8475	26 policy changes, if the price-per-megawatt-hour
8476	8476
8477	8477
8478	8478
8479	8479
8480	8480
8481	8481	HB4687 - 234 - LRB103 36052 LNS 66139 b
8482	8482
8483	8483
8484	8484	HB4687- 235 -LRB103 36052 LNS 66139 b HB4687 - 235 - LRB103 36052 LNS 66139 b
8485	8485	HB4687 - 235 - LRB103 36052 LNS 66139 b
8486	8486	1 calculation performed under item (iii) of this
8487	8487	2 subparagraph (C) for a given delivery year results in
8488	8488	3 a net negative value, then the supplier counterparty
8489	8489	4 to the contract shall multiply such net value by the
8490	8490	5 applicable contract quantity and remit such amount to
8491	8491	6 the electric utility counterparty. The electric
8492	8492	7 utility shall reflect such amounts remitted by
8493	8493	8 suppliers as a credit on its retail customer bills as
8494	8494	9 soon as practicable.
8495	8495	10 (iv) To ensure that retail customers in Northern
8496	8496	11 Illinois do not pay more for carbon mitigation credits
8497	8497	12 than the value such credits provide, and
8498	8498	13 notwithstanding the provisions of this subsection
8499	8499	14 (d-10), the Agency shall not accept bids for contracts
8500	8500	15 that exceed a customer protection cap equal to the
8501	8501	16 baseline costs of carbon-free energy resources.
8502	8502	17 The baseline costs for the applicable year shall
8503	8503	18 be the following:
8504	8504	19 (I) For the delivery year beginning June 1,
8505	8505	20 2022, the baseline costs shall be an amount equal
8506	8506	21 to $30.30 per megawatt-hour.
8507	8507	22 (II) For the delivery year beginning June 1,
8508	8508	23 2023, the baseline costs shall be an amount equal
8509	8509	24 to $32.50 per megawatt-hour.
8510	8510	25 (III) For the delivery year beginning June 1,
8511	8511	26 2024, the baseline costs shall be an amount equal
8512	8512
8513	8513
8514	8514
8515	8515
8516	8516
8517	8517	HB4687 - 235 - LRB103 36052 LNS 66139 b
8518	8518
8519	8519
8520	8520	HB4687- 236 -LRB103 36052 LNS 66139 b HB4687 - 236 - LRB103 36052 LNS 66139 b
8521	8521	HB4687 - 236 - LRB103 36052 LNS 66139 b
8522	8522	1 to $33.43 per megawatt-hour.
8523	8523	2 (IV) For the delivery year beginning June 1,
8524	8524	3 2025, the baseline costs shall be an amount equal
8525	8525	4 to $33.50 per megawatt-hour.
8526	8526	5 (V) For the delivery year beginning June 1,
8527	8527	6 2026, the baseline costs shall be an amount equal
8528	8528	7 to $34.50 per megawatt-hour.
8529	8529	8 An Environmental Protection Agency consultant
8530	8530	9 forecast, included in a report issued April 14, 2021,
8531	8531	10 projects that a carbon-free energy resource has the
8532	8532	11 opportunity to earn on average approximately $30.28
8533	8533	12 per megawatt-hour, for the sale of energy and capacity
8534	8534	13 during the time period between 2022 and 2027.
8535	8535	14 Therefore, the sale of carbon mitigation credits
8536	8536	15 provides the opportunity to receive an additional
8537	8537	16 amount per megawatt-hour in addition to the projected
8538	8538	17 prices for energy and capacity.
8539	8539	18 Although actual energy and capacity prices may
8540	8540	19 vary from year-to-year, the General Assembly finds
8541	8541	20 that this customer protection cap will help ensure
8542	8542	21 that the cost of carbon mitigation credits will be
8543	8543	22 less than its value, based upon the social cost of
8544	8544	23 carbon identified in the Technical Support Document
8545	8545	24 issued in February 2021 by the U.S. Interagency
8546	8546	25 Working Group on Social Cost of Greenhouse Gases and
8547	8547	26 the PJM Interconnection, LLC carbon dioxide marginal
8548	8548
8549	8549
8550	8550
8551	8551
8552	8552
8553	8553	HB4687 - 236 - LRB103 36052 LNS 66139 b
8554	8554
8555	8555
8556	8556	HB4687- 237 -LRB103 36052 LNS 66139 b HB4687 - 237 - LRB103 36052 LNS 66139 b
8557	8557	HB4687 - 237 - LRB103 36052 LNS 66139 b
8558	8558	1 emission rate for 2020, and that a carbon-free energy
8559	8559	2 resource receiving payment for carbon mitigation
8560	8560	3 credits receives no more than necessary to keep those
8561	8561	4 units in operation.
8562	8562	5 (D) No later than 7 days after the effective date of
8563	8563	6 this amendatory Act of the 102nd General Assembly, the
8564	8564	7 Agency shall publish its proposed carbon mitigation credit
8565	8565	8 procurement plan. The Plan shall provide that winning bids
8566	8566	9 shall be selected by taking into consideration which
8567	8567	10 resources best match public interest criteria that
8568	8568	11 include, but are not limited to, minimizing carbon dioxide
8569	8569	12 emissions that result from electricity consumed in
8570	8570	13 Illinois and minimizing sulfur dioxide, nitrogen oxide,
8571	8571	14 and particulate matter emissions that adversely affect the
8572	8572	15 citizens of this State. The selection of winning bids
8573	8573	16 shall also take into account the incremental environmental
8574	8574	17 benefits resulting from the procurement or procurements,
8575	8575	18 such as any existing environmental benefits that are
8576	8576	19 preserved by a procurement held under this subsection
8577	8577	20 (d-10) and would cease to exist if the procurement were
8578	8578	21 not held, including the preservation of carbon-free energy
8579	8579	22 resources. For those bidders having the same public
8580	8580	23 interest criteria score, the relative ranking of such
8581	8581	24 bidders shall be determined by price. The Plan shall
8582	8582	25 describe in detail how each public interest factor shall
8583	8583	26 be considered and weighted in the bid selection process to
8584	8584
8585	8585
8586	8586
8587	8587
8588	8588
8589	8589	HB4687 - 237 - LRB103 36052 LNS 66139 b
8590	8590
8591	8591
8592	8592	HB4687- 238 -LRB103 36052 LNS 66139 b HB4687 - 238 - LRB103 36052 LNS 66139 b
8593	8593	HB4687 - 238 - LRB103 36052 LNS 66139 b
8594	8594	1 ensure that the public interest criteria are applied to
8595	8595	2 the procurement. The Plan shall, to the extent practical
8596	8596	3 and permissible by federal law, ensure that successful
8597	8597	4 bidders make commercially reasonable efforts to apply for
8598	8598	5 federal tax credits, direct payments, or similar subsidy
8599	8599	6 programs that support carbon-free generation and for which
8600	8600	7 the successful bidder is eligible. Upon publishing of the
8601	8601	8 carbon mitigation credit procurement plan, copies of the
8602	8602	9 plan shall be posted and made publicly available on the
8603	8603	10 Agency's website. All interested parties shall have 7 days
8604	8604	11 following the date of posting to provide comment to the
8605	8605	12 Agency on the plan. All comments shall be posted to the
8606	8606	13 Agency's website. Following the end of the comment period,
8607	8607	14 but no more than 19 days later than the effective date of
8608	8608	15 this amendatory Act of the 102nd General Assembly, the
8609	8609	16 Agency shall revise the plan as necessary based on the
8610	8610	17 comments received and file its carbon mitigation credit
8611	8611	18 procurement plan with the Commission.
8612	8612	19 (E) If the Commission determines that the plan is
8613	8613	20 likely to result in the procurement of cost-effective
8614	8614	21 carbon mitigation credits, then the Commission shall,
8615	8615	22 after notice and hearing and opportunity for comment, but
8616	8616	23 no later than 42 days after the Agency filed the plan,
8617	8617	24 approve the plan or approve it with modification. For
8618	8618	25 purposes of this subsection (d-10), "cost-effective" means
8619	8619	26 carbon mitigation credits that are procured from
8620	8620
8621	8621
8622	8622
8623	8623
8624	8624
8625	8625	HB4687 - 238 - LRB103 36052 LNS 66139 b
8626	8626
8627	8627
8628	8628	HB4687- 239 -LRB103 36052 LNS 66139 b HB4687 - 239 - LRB103 36052 LNS 66139 b
8629	8629	HB4687 - 239 - LRB103 36052 LNS 66139 b
8630	8630	1 carbon-free energy resources at prices that are within the
8631	8631	2 limits specified in this paragraph (3). As part of the
8632	8632	3 Commission's review and acceptance or rejection of the
8633	8633	4 procurement results, the Commission shall, in its public
8634	8634	5 notice of successful bidders:
8635	8635	6 (i) identify how the selected carbon-free energy
8636	8636	7 resources satisfy the public interest criteria
8637	8637	8 described in this paragraph (3) of minimizing carbon
8638	8638	9 dioxide emissions that result from electricity
8639	8639	10 consumed in Illinois and minimizing sulfur dioxide,
8640	8640	11 nitrogen oxide, and particulate matter emissions that
8641	8641	12 adversely affect the citizens of this State;
8642	8642	13 (ii) specifically address how the selection of
8643	8643	14 carbon-free energy resources takes into account the
8644	8644	15 incremental environmental benefits resulting from the
8645	8645	16 procurement, including any existing environmental
8646	8646	17 benefits that are preserved by the procurements held
8647	8647	18 under this amendatory Act of the 102nd General
8648	8648	19 Assembly and would have ceased to exist if the
8649	8649	20 procurements had not been held, such as the
8650	8650	21 preservation of carbon-free energy resources;
8651	8651	22 (iii) quantify the environmental benefit of
8652	8652	23 preserving the carbon-free energy resources procured
8653	8653	24 pursuant to this subsection (d-10), including the
8654	8654	25 following:
8655	8655	26 (I) an assessment value of avoided greenhouse
8656	8656
8657	8657
8658	8658
8659	8659
8660	8660
8661	8661	HB4687 - 239 - LRB103 36052 LNS 66139 b
8662	8662
8663	8663
8664	8664	HB4687- 240 -LRB103 36052 LNS 66139 b HB4687 - 240 - LRB103 36052 LNS 66139 b
8665	8665	HB4687 - 240 - LRB103 36052 LNS 66139 b
8666	8666	1 gas emissions measured as the product of the
8667	8667	2 carbon-free energy resources' output over the
8668	8668	3 contract term, using generally accepted
8669	8669	4 methodologies for the valuation of avoided
8670	8670	5 emissions; and
8671	8671	6 (II) an assessment of costs of replacement
8672	8672	7 with other carbon-free energy resources and
8673	8673	8 renewable energy resources, including wind and
8674	8674	9 photovoltaic generation, based upon an assessment
8675	8675	10 of the prices paid for renewable energy credits
8676	8676	11 through programs and procurements conducted
8677	8677	12 pursuant to subsection (c) of Section 1-75 of this
8678	8678	13 Act, and the additional storage necessary to
8679	8679	14 produce the same or similar capability of matching
8680	8680	15 customer usage patterns.
8681	8681	16 (F) The procurements described in this paragraph (3),
8682	8682	17 including, but not limited to, the execution of all
8683	8683	18 contracts procured, shall be completed no later than
8684	8684	19 December 3, 2021. The procurement and plan approval
8685	8685	20 processes required by this paragraph (3) shall be
8686	8686	21 conducted in conjunction with the procurement and plan
8687	8687	22 approval processes required by Section 16-111.5 of the
8688	8688	23 Public Utilities Act, to the extent practicable. However,
8689	8689	24 the Agency and Commission may, as appropriate, modify the
8690	8690	25 various dates and timelines under this subparagraph and
8691	8691	26 subparagraphs (D) and (E) of this paragraph (3) to meet
8692	8692
8693	8693
8694	8694
8695	8695
8696	8696
8697	8697	HB4687 - 240 - LRB103 36052 LNS 66139 b
8698	8698
8699	8699
8700	8700	HB4687- 241 -LRB103 36052 LNS 66139 b HB4687 - 241 - LRB103 36052 LNS 66139 b
8701	8701	HB4687 - 241 - LRB103 36052 LNS 66139 b
8702	8702	1 the December 3, 2021 contract execution deadline.
8703	8703	2 Following the completion of such procurements, and
8704	8704	3 consistent with this paragraph (3), the Agency shall
8705	8705	4 calculate the payments to be made under each contract in a
8706	8706	5 timely fashion.
8707	8707	6 (F-1) Costs incurred by the electric utility pursuant
8708	8708	7 to a contract authorized by this subsection (d-10) shall
8709	8709	8 be deemed prudently incurred and reasonable in amount, and
8710	8710	9 the electric utility shall be entitled to full cost
8711	8711	10 recovery pursuant to a tariff or tariffs filed with the
8712	8712	11 Commission.
8713	8713	12 (G) The counterparty electric utility shall retire all
8714	8714	13 carbon mitigation credits used to comply with the
8715	8715	14 requirements of this subsection (d-10).
8716	8716	15 (H) If a carbon-free energy resource is sold to
8717	8717	16 another owner, the rights, obligations, and commitments
8718	8718	17 under this subsection (d-10) shall continue to the
8719	8719	18 subsequent owner.
8720	8720	19 (I) This subsection (d-10) shall become inoperative on
8721	8721	20 January 1, 2028.
8722	8722	21 (e) The draft procurement plans are subject to public
8723	8723	22 comment, as required by Section 16-111.5 of the Public
8724	8724	23 Utilities Act.
8725	8725	24 (f) The Agency shall submit the final procurement plan to
8726	8726	25 the Commission. The Agency shall revise a procurement plan if
8727	8727	26 the Commission determines that it does not meet the standards
8728	8728
8729	8729
8730	8730
8731	8731
8732	8732
8733	8733	HB4687 - 241 - LRB103 36052 LNS 66139 b
8734	8734
8735	8735
8736	8736	HB4687- 242 -LRB103 36052 LNS 66139 b HB4687 - 242 - LRB103 36052 LNS 66139 b
8737	8737	HB4687 - 242 - LRB103 36052 LNS 66139 b
8738	8738	1 set forth in Section 16-111.5 of the Public Utilities Act.
8739	8739	2 (g) The Agency shall assess fees to each affected utility
8740	8740	3 to recover the costs incurred in preparation of the annual
8741	8741	4 procurement plan for the utility.
8742	8742	5 (h) The Agency shall assess fees to each bidder to recover
8743	8743	6 the costs incurred in connection with a competitive
8744	8744	7 procurement process.
8745	8745	8 (i) (Blank). A renewable energy credit, carbon emission
8746	8746	9 credit, zero emission credit, or carbon mitigation credit can
8747	8747	10 only be used once to comply with a single portfolio or other
8748	8748	11 standard as set forth in subsection (c), subsection (d), or
8749	8749	12 subsection (d-5) of this Section, respectively. A renewable
8750	8750	13 energy credit, carbon emission credit, zero emission credit,
8751	8751	14 or carbon mitigation credit cannot be used to satisfy the
8752	8752	15 requirements of more than one standard. If more than one type
8753	8753	16 of credit is issued for the same megawatt hour of energy, only
8754	8754	17 one credit can be used to satisfy the requirements of a single
8755	8755	18 standard. After such use, the credit must be retired together
8756	8756	19 with any other credits issued for the same megawatt hour of
8757	8757	20 energy.
8758	8758	21 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
8759	8759	22 103-580, eff. 12-8-23.)
8760	8760	23 (20 ILCS 3855/1-129)
8761	8761	24 Sec. 1-129. Policy study.
8762	8762	25 (a) The General Assembly finds that:
8763	8763
8764	8764
8765	8765
8766	8766
8767	8767
8768	8768	HB4687 - 242 - LRB103 36052 LNS 66139 b
8769	8769
8770	8770
8771	8771	HB4687- 243 -LRB103 36052 LNS 66139 b HB4687 - 243 - LRB103 36052 LNS 66139 b
8772	8772	HB4687 - 243 - LRB103 36052 LNS 66139 b
8773	8773	1 (1) in 2021, Illinois became the first state in the
8774	8774	2 Midwest to mandate a clean energy future when it enacted
8775	8775	3 the Climate and Equitable Jobs Act (Public Act 102-662);
8776	8776	4 (2) through the Climate and Equitable Jobs Act,
8777	8777	5 Illinois established a plan to completely decarbonize its
8778	8778	6 energy sector by 2050 in an equitable manner that invests
8779	8779	7 in the State's workforce;
8780	8780	8 (3) technology in the energy sector continues to
8781	8781	9 advance creating cleaner and more efficient options to
8782	8782	10 help the State attain the target of 50% renewable energy
8783	8783	11 by 2040; and
8784	8784	12 (4) while numerous legislative proposals purport to
8785	8785	13 help the State on its path to equitably attain 100% clean
8786	8786	14 energy, it is important to have a neutral party with
8787	8787	15 relevant expertise evaluate each proposal to ensure it is
8788	8788	16 consistent with the State's goals and maximizes benefits
8789	8789	17 to Illinois residents.
8790	8790	18 (b) The General Assembly intends:
8791	8791	19 (1) to prioritize the public interest over the profit
8792	8792	20 motives of utilities and private developers; and
8793	8793	21 (2) to invest in projects that reduce harmful
8794	8794	22 emissions and contribute to the clean economy.
8795	8795	23 (c) The Agency shall commission and publish a policy study
8796	8796	24 to evaluate the potential impacts of the proposals described
8797	8797	25 in subsection (g). The potential impacts may include, but are
8798	8798	26 not limited to, support for Illinois' decarbonization goals,
8799	8799
8800	8800
8801	8801
8802	8802
8803	8803
8804	8804	HB4687 - 243 - LRB103 36052 LNS 66139 b
8805	8805
8806	8806
8807	8807	HB4687- 244 -LRB103 36052 LNS 66139 b HB4687 - 244 - LRB103 36052 LNS 66139 b
8808	8808	HB4687 - 244 - LRB103 36052 LNS 66139 b
8809	8809	1 the environment, grid reliability, carbon and other pollutant
8810	8810	2 emissions, resource adequacy, long-term and short-term
8811	8811	3 electric rates, environmental justice communities, jobs, and
8812	8812	4 the economy. Where applicable, the study shall address the
8813	8813	5 impact of a proposal with respect to reports by the
8814	8814	6 Midcontinent Independent System Operator, PJM, and North
8815	8815	7 American Electric Reliability Corporation staff that Illinois
8816	8816	8 has begun to experience resource adequacy issues.
8817	8817	9 (d) The Agency shall retain the services of technical and
8818	8818	10 policy experts with energy market and other relevant fields of
8819	8819	11 expertise. The technical and policy experts may include the
8820	8820	12 existing planning and procurement consultant and applicable
8821	8821	13 subcontractors and the procurement administrator and
8822	8822	14 applicable subcontractors. The Illinois Commerce Commission,
8823	8823	15 the Illinois Environmental Protection Agency, and the
8824	8824	16 Department of Commerce and Economic Opportunity shall provide
8825	8825	17 support to and consult with the Agency. The Agency may consult
8826	8826	18 with other State agencies, commissions, or task forces as
8827	8827	19 needed. The Agency may consult with and seek assistance from
8828	8828	20 the Regional Transmission Organizations PJM and MISO.
8829	8829	21 (e) The Agency may solicit information, including
8830	8830	22 confidential or proprietary information, from entities likely
8831	8831	23 to be impacted by the proposals described in subsection (g)
8832	8832	24 for purposes of this study. Any information designated as
8833	8833	25 confidential or proprietary information by the entity
8834	8834	26 providing the information shall be kept confidential by the
8835	8835
8836	8836
8837	8837
8838	8838
8839	8839
8840	8840	HB4687 - 244 - LRB103 36052 LNS 66139 b
8841	8841
8842	8842
8843	8843	HB4687- 245 -LRB103 36052 LNS 66139 b HB4687 - 245 - LRB103 36052 LNS 66139 b
8844	8844	HB4687 - 245 - LRB103 36052 LNS 66139 b
8845	8845	1 Agency, its consultants, and its contractors and is not
8846	8846	2 subject to disclosure under the Freedom of Information Act.
8847	8847	3 (f) The Agency shall publish a final policy study no later
8848	8848	4 than March 1, 2024 and suitable copies shall be delivered to
8849	8849	5 the Governor and members of the General Assembly. Prior to
8850	8850	6 publishing the final policy study, the Agency shall publish a
8851	8851	7 preliminary draft of the policy study and provide for a 20-day
8852	8852	8 open public comment period. The Agency shall review public
8853	8853	9 comments and publish a final policy study no later than 20 days
8854	8854	10 after the public comment period ends. The policy study shall
8855	8855	11 include policy recommendations to the General Assembly.
8856	8856	12 (g) The policy study shall evaluate the following
8857	8857	13 proposals and may consider or suggest additional or
8858	8858	14 alternative items:
8859	8859	15 (1) House Bill 2132 of the 103rd General Assembly as
8860	8860	16 it passed out of the House on March 24, 2023 or a similar
8861	8861	17 pilot program to establish one new utility-scale offshore
8862	8862	18 wind project capable of producing at least 700,000
8863	8863	19 megawatt hours annually for at least 20 years in Lake
8864	8864	20 Michigan that includes an equity and inclusion plan to
8865	8865	21 create job opportunities for underrepresented populations
8866	8866	22 in addition to equity investment eligible communities and
8867	8867	23 a fully executed project labor agreement. The pilot
8868	8868	24 program may result in an increase in the amounts paid by
8869	8869	25 eligible retail customers in connection with electric
8870	8870	26 service that shall not exceed 0.25% of the amount paid per
8871	8871
8872	8872
8873	8873
8874	8874
8875	8875
8876	8876	HB4687 - 245 - LRB103 36052 LNS 66139 b
8877	8877
8878	8878
8879	8879	HB4687- 246 -LRB103 36052 LNS 66139 b HB4687 - 246 - LRB103 36052 LNS 66139 b
8880	8880	HB4687 - 246 - LRB103 36052 LNS 66139 b
8881	8881	1 kilowatt hour by those customers during the year ending
8882	8882	2 May 31, 2009.
8883	8883	3 (2) Senate Bill 1587 and amendments to Senate Bill
8884	8884	4 1587 of the 103rd General Assembly filed prior to May 31,
8885	8885	5 2023 or a similar proposal for the deployment of energy
8886	8886	6 storage systems supported by the State through the
8887	8887	7 development of energy storage credit targets for the
8888	8888	8 Agency to procure on behalf of Illinois electric utilities
8889	8889	9 from privately owned, large scale energy storage providers
8890	8890	10 using energy storage contracts of at least 15 year
8891	8891	11 durations based on a competitive energy storage
8892	8892	12 procurement plan developed by the Agency designed to
8893	8893	13 enhance overall grid reliability, flexibility and
8894	8894	14 efficiency, and to lower electricity prices. The plan must
8895	8895	15 require participants to comply with the equity
8896	8896	16 accountability system requirements in subsection (c-10) of
8897	8897	17 Section 1-75 and to submit proof of project labor
8898	8898	18 agreements. For purposes of this policy study, it should
8899	8899	19 be assumed that the costs associated with procuring energy
8900	8900	20 storage credits shall be recovered through tariffed
8901	8901	21 charges assessed across all retail customers in a uniform
8902	8902	22 cents per kilowatt hour charge. In addition to large scale
8903	8903	23 energy storage, the proposal shall also include the
8904	8904	24 creation of distributed level energy storage programs
8905	8905	25 through utility tariffs as approved by the Illinois
8906	8906	26 Commerce Commission. The programs shall include a
8907	8907
8908	8908
8909	8909
8910	8910
8911	8911
8912	8912	HB4687 - 246 - LRB103 36052 LNS 66139 b
8913	8913
8914	8914
8915	8915	HB4687- 247 -LRB103 36052 LNS 66139 b HB4687 - 247 - LRB103 36052 LNS 66139 b
8916	8916	HB4687 - 247 - LRB103 36052 LNS 66139 b
8917	8917	1 residential and a commercial storage program that would
8918	8918	2 allow customer-sited batteries to provide grid benefits
8919	8919	3 and cost-savings to ratepayers. The proposal shall also
8920	8920	4 include a community solar energy storage program intended
8921	8921	5 to serve as a peak reduction program by utilizing
8922	8922	6 community solar paired storage projects deployed daily in
8923	8923	7 summer months during peak hours. The installation of the
8924	8924	8 energy storage systems associated with these distributed
8925	8925	9 renewable systems must comply with the prevailing wage
8926	8926	10 requirements described in subparagraph (Q) of paragraph
8927	8927	11 (1) of subsection (c) of Section 1-75. The policy study
8928	8928	12 shall include a review of the ability of coal-fueled
8929	8929	13 generating plant sites located in Illinois that have been
8930	8930	14 closed since 2016 or are scheduled to be closed by 2030 to
8931	8931	15 support the installation of energy storage systems and
8932	8932	16 potential associated interconnection costs. This review
8933	8933	17 shall include: (i) whether those sites are already in a
8934	8934	18 regional transmission organization interconnection queue,
8935	8935	19 including MISO's replacement power interconnection queue,
8936	8936	20 or would be submitted to the replacement power
8937	8937	21 interconnection queue no later than September 1, 2023,
8938	8938	22 and, if a site is in a queue, the site's position in the
8939	8939	23 queue; and (ii) how soon those sites could support
8940	8940	24 development and installation of energy storage systems and
8941	8941	25 any barriers to that development. This review shall also
8942	8942	26 include consultation with electric generation facility
8943	8943
8944	8944
8945	8945
8946	8946
8947	8947
8948	8948	HB4687 - 247 - LRB103 36052 LNS 66139 b
8949	8949
8950	8950
8951	8951	HB4687- 248 -LRB103 36052 LNS 66139 b HB4687 - 248 - LRB103 36052 LNS 66139 b
8952	8952	HB4687 - 248 - LRB103 36052 LNS 66139 b
8953	8953	1 owners or operators and renewable developers that own or
8954	8954	2 are in the process of developing energy storage systems in
8955	8955	3 Illinois or that have experience developing energy storage
8956	8956	4 systems in other States.
8957	8957	5 (3) A policy establishing high voltage direct current
8958	8958	6 renewable energy credits that requires the Agency to
8959	8959	7 procure contracts with at least 25 years but no more than
8960	8960	8 40 years duration for the delivery of renewable energy
8961	8961	9 credits on behalf of electric utilities in Illinois with
8962	8962	10 at least 300,000 customers from a high voltage direct
8963	8963	11 current transmission facility with more than 100 miles of
8964	8964	12 underground transmission lines in this State capable of
8965	8965	13 transmitting electricity at or above 525 kilovolts and
8966	8966	14 delivering power in the PJM market. High voltage direct
8967	8967	15 current renewable energy credits procured by the Agency
8968	8968	16 pursuant to this policy would not count toward the
8969	8969	17 renewable energy credit purchase targets in subsection
8970	8970	(c)
8971	8971	18 of Section 1-75. The study shall also evaluate: (i) this
8972	8972	19 policy's potential for wholesale electricity price impacts
8973	8973	20 in both PJM and MISO, the net rate impact to Illinois
8974	8974	21 ratepayers, and the impact on grid reliability and
8975	8975	22 resilience; (ii) whether a 25-year to 40-year guaranteed
8976	8976	23 contract is necessary to build a high voltage direct
8977	8977	24 current transmission facility; (iii) whether specific high
8978	8978	25 voltage direct current transmission facility projects are
8979	8979	26 committed to Illinois' fair labor and equity standards;
8980	8980
8981	8981
8982	8982
8983	8983
8984	8984
8985	8985	HB4687 - 248 - LRB103 36052 LNS 66139 b
8986	8986
8987	8987
8988	8988	HB4687- 249 -LRB103 36052 LNS 66139 b HB4687 - 249 - LRB103 36052 LNS 66139 b
8989	8989	HB4687 - 249 - LRB103 36052 LNS 66139 b
8990	8990	1 and (iv) whether the policy creates incentives for
8991	8991	2 renewable development outside of Illinois rather than
8992	8992	3 within the State.
8993	8993	4 (Source: P.A. 103-580, eff. 12-8-23.)
8994	8994	5 Section 15. The Hydrogen Fuel Replacement Tax Credit Act
8995	8995	6 is amended by changing Section 15 as follows:
8996	8996	7 (35 ILCS 55/15)
8997	8997	8 Sec. 15. Allowable credit.
8998	8998	9 (a) For tax years ending on or after December 31, 2027 and
8999	8999	10 beginning before January 1, 2029, a credit is allowed against
9000	9000	11 the taxes imposed on an eligible taxpayer under subsections
9001	9001	12 (a) and (b) of Section 201 of the Illinois Income Tax Act in an
9002	9002	13 amount equal to $1 per kilogram of eligible qualifying
9003	9003	14 hydrogen used by the eligible taxpayer during the immediately
9004	9004	15 preceding calendar year. If the use of the qualifying hydrogen
9005	9005	16 by a taxpayer occurs in or impacts one or more equity
9006	9006	17 investment eligible communities, then, to be eligible for this
9007	9007	18 credit, the taxpayer must submit to the Department and make
9008	9008	19 publicly available documentation that demonstrates that the
9009	9009	20 use has led to a net reduction of negative environmental
9010	9010	21 impacts in each impacted equity investment eligible community
9011	9011	22 and demonstrates that all application requirements detailed in
9012	9012	23 this Act, including those in subsection (c), have been met for
9013	9013	24 the year in which the credit is sought. Those impacts shall
9014	9014
9015	9015
9016	9016
9017	9017
9018	9018
9019	9019	HB4687 - 249 - LRB103 36052 LNS 66139 b
9020	9020
9021	9021
9022	9022	HB4687- 250 -LRB103 36052 LNS 66139 b HB4687 - 250 - LRB103 36052 LNS 66139 b
9023	9023	HB4687 - 250 - LRB103 36052 LNS 66139 b
9024	9024	1 include direct, indirect, and cumulative impacts, including,
9025	9025	2 but not limited to, impacts from using, transporting, and
9026	9026	3 storing qualifying hydrogen, and impacts to air, water,
9027	9027	4 traffic, noise, and public health. This documentation must be
9028	9028	5 specific, quantifiable, measurable, and verifiable. Continued
9029	9029	6 receipt of tax credits is contingent upon the taxpayer making
9030	9030	7 this demonstration each year. Failure to demonstrate a
9031	9031	8 reduction of negative environmental impacts in each impacted
9032	9032	9 equity investment eligible community shall result in the
9033	9033	10 denial or forfeiture of tax credits.
9034	9034	11 (b) The allowable credit provided in subsection (a) of
9035	9035	12 this Section shall be increased by $0.15 per kilogram of
9036	9036	13 eligible qualifying hydrogen for eligible qualifying hydrogen
9037	9037	14 use impacting one or more equity investment eligible
9038	9038	15 communities if an eligible taxpayer specifically,
9039	9039	16 quantifiably, and verifiably demonstrates that the eligible
9040	9040	17 qualifying hydrogen use satisfies both of the following
9041	9041	18 criteria for the preceding tax year:
9042	9042	19 (1) The eligible taxpayer's project workforce meets
9043	9043	20 the minimum equity standards for equity eligible persons
9044	9044	21 and equity eligible contractors determined by the Illinois
9045	9045	22 Power Agency pursuant to subsection (c-10) of Section 1-75
9046	9046	23 of the Illinois Power Agency Act. This requirement shall
9047	9047	24 apply to both construction employment and ongoing
9048	9048	25 employment in areas such as, but not limited to,
9049	9049	26 operations, production, and maintenance.
9050	9050
9051	9051
9052	9052
9053	9053
9054	9054
9055	9055	HB4687 - 250 - LRB103 36052 LNS 66139 b
9056	9056
9057	9057
9058	9058	HB4687- 251 -LRB103 36052 LNS 66139 b HB4687 - 251 - LRB103 36052 LNS 66139 b
9059	9059	HB4687 - 251 - LRB103 36052 LNS 66139 b
9060	9060	1 (2) At least 40% of the total benefits provided by the
9061	9061	2 use are received by the equity investment eligible
9062	9062	3 communities impacted by the eligible qualifying hydrogen
9063	9063	4 use. Benefits to be considered shall include, but are not
9064	9064	5 limited to: a decrease in the percentage of household
9065	9065	6 income spent on energy costs; a decrease in environmental
9066	9066	7 exposures and burdens; an increase in access to low-cost
9067	9067	8 capital; an increase in employment and job training for
9068	9068	9 residents; an increase in clean energy enterprise creation
9069	9069	10 and contracting; increases in community energy ownership;
9070	9070	11 increased parity in clean energy technology and adoption;
9071	9071	12 and an increase in energy resilience. As used in this item
9072	9072	13 (2), "energy resilience" means the ability to operate
9073	9073	14 energy services in response to a major disruption.
9074	9074	15 Employment and contracting benefits provided pursuant to
9075	9075	16 paragraph (1) shall count toward this 40% requirement.
9076	9076	17 (c) The Department shall develop an application process
9077	9077	18 for tax credits under this Section that provides meaningful,
9078	9078	19 timely, and effective public notice of a tax credit
9079	9079	20 application to members of impacted communities, accounting for
9080	9080	21 linguistic needs and other relevant characteristics, and
9081	9081	22 provides meaningful opportunity for public comment on any tax
9082	9082	23 credit application. The public notice and tax credit
9083	9083	24 application shall be translated into non-English languages in
9084	9084	25 impacted communities where a language other than English is
9085	9085	26 widely spoken. The notice must, at a minimum, include all of
9086	9086
9087	9087
9088	9088
9089	9089
9090	9090
9091	9091	HB4687 - 251 - LRB103 36052 LNS 66139 b
9092	9092
9093	9093
9094	9094	HB4687- 252 -LRB103 36052 LNS 66139 b HB4687 - 252 - LRB103 36052 LNS 66139 b
9095	9095	HB4687 - 252 - LRB103 36052 LNS 66139 b
9096	9096	1 the following: the name of the applicant, the location of the
9097	9097	2 use, a brief description of the use and its impacts, and a link
9098	9098	3 to a website where the application and more detailed
9099	9099	4 information on the use and its impacts can be found. The notice
9100	9100	5 shall be written at a third or fourth grade reading level to
9101	9101	6 ensure ease of understanding for all members of the public.
9102	9102	7 The opportunity for public comment must, at a minimum, include
9103	9103	8 a public meeting held in a location within an impacted equity
9104	9104	9 investment community and easily accessible to residents of
9105	9105	10 other impacted equity investment eligible communities. Such
9106	9106	11 public meeting shall be held not less than 30 days after public
9107	9107	12 notice is provided and not less than 30 days before a decision
9108	9108	13 is made on the application. The Department shall consider
9109	9109	14 comments received when determining whether the requirements of
9110	9110	15 this Section have been met. Applications, supporting
9111	9111	16 materials, and comments submitted with respect to applications
9112	9112	17 shall be maintained on the Department website in a publicly
9113	9113	18 accessible manner.
9114	9114	19 (d) An eligible taxpayer may not earn tax credits for a tax
9115	9115	20 year for eligible qualifying hydrogen use in an amount that
9116	9116	21 exceeds the amount of tax credit allocated to it for the tax
9117	9117	22 year under Section 25. If the amount of the credit exceeds the
9118	9118	23 tax liability for the year, the excess may be carried forward
9119	9119	24 and applied to the tax liability of the 5 taxable years
9120	9120	25 following the excess credit year. The credit shall be applied
9121	9121	26 to the earliest year for which there is a tax liability. If
9122	9122
9123	9123
9124	9124
9125	9125
9126	9126
9127	9127	HB4687 - 252 - LRB103 36052 LNS 66139 b
9128	9128
9129	9129
9130	9130	HB4687- 253 -LRB103 36052 LNS 66139 b HB4687 - 253 - LRB103 36052 LNS 66139 b
9131	9131	HB4687 - 253 - LRB103 36052 LNS 66139 b
9132	9132	1 there are credits from more than one tax year that are
9133	9133	2 available to offset a liability, the earlier credit shall be
9134	9134	3 applied first. In no event shall a credit under this Section
9135	9135	4 reduce the taxpayer's liability to less than zero.
9136	9136	5 (e) Labor performed on or after the effective date of this
9137	9137	6 Act to convert the eligible taxpayer's existing equipment or
9138	9138	7 to install new equipment for the eligible taxpayer to enable
9139	9139	8 eligible qualifying hydrogen use for which a credit is claimed
9140	9140	9 under this Act shall be performed by general contractors that
9141	9141	10 enter into a project labor agreement, as defined by the
9142	9142	11 Illinois Power Agency Act, prior to construction. The project
9143	9143	12 labor agreement shall be filed with the Department.
9144	9144	13 (f) Notwithstanding any provision of law to the contrary,
9145	9145	14 any eligible taxpayer receiving tax credits under this Act
9146	9146	15 shall be required to enter into a labor peace agreement with
9147	9147	16 any bona fide labor organization that represents or is
9148	9148	17 attempting to represent any of its employees.
9149	9149	18 (Source: P.A. 103-268, eff. 7-25-23.)
9150	9150	19 Section 20. The Counties Code is amended by changing
9151	9151	20 Section 5-12020 as follows:
9152	9152	21 (55 ILCS 5/5-12020)
9153	9153	22 Sec. 5-12020. Commercial wind energy facilities and
9154	9154	23 commercial solar energy facilities.
9155	9155	24 (a) As used in this Section:
9156	9156
9157	9157
9158	9158
9159	9159
9160	9160
9161	9161	HB4687 - 253 - LRB103 36052 LNS 66139 b
9162	9162
9163	9163
9164	9164	HB4687- 254 -LRB103 36052 LNS 66139 b HB4687 - 254 - LRB103 36052 LNS 66139 b
9165	9165	HB4687 - 254 - LRB103 36052 LNS 66139 b
9166	9166	1 "Commercial solar energy facility" means a "commercial
9167	9167	2 solar energy system" as defined in Section 10-720 of the
9168	9168	3 Property Tax Code. "Commercial solar energy facility" does not
9169	9169	4 mean a utility-scale solar energy facility being constructed
9170	9170	5 at a site that was eligible to participate in a procurement
9171	9171	6 event conducted by the Illinois Power Agency pursuant to
9172	9172	7 subsection (c-5) of Section 1-75 of the Illinois Power Agency
9173	9173	8 Act.
9174	9174	9 "Commercial wind energy facility" means a wind energy
9175	9175	10 conversion facility of equal or greater than 500 kilowatts in
9176	9176	11 total nameplate generating capacity. "Commercial wind energy
9177	9177	12 facility" includes a wind energy conversion facility seeking
9178	9178	13 an extension of a permit to construct granted by a county or
9179	9179	14 municipality before January 27, 2023 (the effective date of
9180	9180	15 Public Act 102-1123).
9181	9181	16 "Facility owner" means (i) a person with a direct
9182	9182	17 ownership interest in a commercial wind energy facility or a
9183	9183	18 commercial solar energy facility, or both, regardless of
9184	9184	19 whether the person is involved in acquiring the necessary
9185	9185	20 rights, permits, and approvals or otherwise planning for the
9186	9186	21 construction and operation of the facility, and (ii) at the
9187	9187	22 time the facility is being developed, a person who is acting as
9188	9188	23 a developer of the facility by acquiring the necessary rights,
9189	9189	24 permits, and approvals or by planning for the construction and
9190	9190	25 operation of the facility, regardless of whether the person
9191	9191	26 will own or operate the facility.
9192	9192
9193	9193
9194	9194
9195	9195
9196	9196
9197	9197	HB4687 - 254 - LRB103 36052 LNS 66139 b
9198	9198
9199	9199
9200	9200	HB4687- 255 -LRB103 36052 LNS 66139 b HB4687 - 255 - LRB103 36052 LNS 66139 b
9201	9201	HB4687 - 255 - LRB103 36052 LNS 66139 b
9202	9202	1 "Nonparticipating property" means real property that is
9203	9203	2 not a participating property.
9204	9204	3 "Nonparticipating residence" means a residence that is
9205	9205	4 located on nonparticipating property and that is existing and
9206	9206	5 occupied on the date that an application for a permit to
9207	9207	6 develop the commercial wind energy facility or the commercial
9208	9208	7 solar energy facility is filed with the county.
9209	9209	8 "Occupied community building" means any one or more of the
9210	9210	9 following buildings that is existing and occupied on the date
9211	9211	10 that the application for a permit to develop the commercial
9212	9212	11 wind energy facility or the commercial solar energy facility
9213	9213	12 is filed with the county: a school, place of worship, day care
9214	9214	13 facility, public library, or community center.
9215	9215	14 "Participating property" means real property that is the
9216	9216	15 subject of a written agreement between a facility owner and
9217	9217	16 the owner of the real property that provides the facility
9218	9218	17 owner an easement, option, lease, or license to use the real
9219	9219	18 property for the purpose of constructing a commercial wind
9220	9220	19 energy facility, a commercial solar energy facility, or
9221	9221	20 supporting facilities. "Participating property" also includes
9222	9222	21 real property that is owned by a facility owner for the purpose
9223	9223	22 of constructing a commercial wind energy facility, a
9224	9224	23 commercial solar energy facility, or supporting facilities.
9225	9225	24 "Participating residence" means a residence that is
9226	9226	25 located on participating property and that is existing and
9227	9227	26 occupied on the date that an application for a permit to
9228	9228
9229	9229
9230	9230
9231	9231
9232	9232
9233	9233	HB4687 - 255 - LRB103 36052 LNS 66139 b
9234	9234
9235	9235
9236	9236	HB4687- 256 -LRB103 36052 LNS 66139 b HB4687 - 256 - LRB103 36052 LNS 66139 b
9237	9237	HB4687 - 256 - LRB103 36052 LNS 66139 b
9238	9238	1 develop the commercial wind energy facility or the commercial
9239	9239	2 solar energy facility is filed with the county.
9240	9240	3 "Protected lands" means real property that is:
9241	9241	4 (1) subject to a permanent conservation right
9242	9242	5 consistent with the Real Property Conservation Rights Act;
9243	9243	6 or
9244	9244	7 (2) registered or designated as a nature preserve,
9245	9245	8 buffer, or land and water reserve under the Illinois
9246	9246	9 Natural Areas Preservation Act.
9247	9247	10 "Supporting facilities" means the transmission lines,
9248	9248	11 substations, access roads, meteorological towers, storage
9249	9249	12 containers, and equipment associated with the generation and
9250	9250	13 storage of electricity by the commercial wind energy facility
9251	9251	14 or commercial solar energy facility.
9252	9252	15 "Wind tower" includes the wind turbine tower, nacelle, and
9253	9253	16 blades.
9254	9254	17 (b) Notwithstanding any other provision of law or whether
9255	9255	18 the county has formed a zoning commission and adopted formal
9256	9256	19 zoning under Section 5-12007, a county may establish standards
9257	9257	20 for commercial wind energy facilities, commercial solar energy
9258	9258	21 facilities, or both. The standards may include all of the
9259	9259	22 requirements specified in this Section but may not include
9260	9260	23 requirements for commercial wind energy facilities or
9261	9261	24 commercial solar energy facilities that are more restrictive
9262	9262	25 than specified in this Section. A county may also regulate the
9263	9263	26 siting of commercial wind energy facilities with standards
9264	9264
9265	9265
9266	9266
9267	9267
9268	9268
9269	9269	HB4687 - 256 - LRB103 36052 LNS 66139 b
9270	9270
9271	9271
9272	9272	HB4687- 257 -LRB103 36052 LNS 66139 b HB4687 - 257 - LRB103 36052 LNS 66139 b
9273	9273	HB4687 - 257 - LRB103 36052 LNS 66139 b
9274	9274	1 that are not more restrictive than the requirements specified
9275	9275	2 in this Section in unincorporated areas of the county that are
9276	9276	3 outside the zoning jurisdiction of a municipality and that are
9277	9277	4 outside the 1.5-mile radius surrounding the zoning
9278	9278	5 jurisdiction of a municipality.
9279	9279	6 (c) If a county has elected to establish standards under
9280	9280	7 subsection (b), before the county grants siting approval or a
9281	9281	8 special use permit for a commercial wind energy facility or a
9282	9282	9 commercial solar energy facility, or modification of an
9283	9283	10 approved siting or special use permit, the county board of the
9284	9284	11 county in which the facility is to be sited or the zoning board
9285	9285	12 of appeals for the county shall hold at least one public
9286	9286	13 hearing. The public hearing shall be conducted in accordance
9287	9287	14 with the Open Meetings Act and shall be held not more than 60
9288	9288	15 days after the filing of the application for the facility. The
9289	9289	16 county shall allow interested parties to a special use permit
9290	9290	17 an opportunity to present evidence and to cross-examine
9291	9291	18 witnesses at the hearing, but the county may impose reasonable
9292	9292	19 restrictions on the public hearing, including reasonable time
9293	9293	20 limitations on the presentation of evidence and the
9294	9294	21 cross-examination of witnesses. The county shall also allow
9295	9295	22 public comment at the public hearing in accordance with the
9296	9296	23 Open Meetings Act. The county shall make its siting and
9297	9297	24 permitting decisions not more than 30 days after the
9298	9298	25 conclusion of the public hearing. Notice of the hearing shall
9299	9299	26 be published in a newspaper of general circulation in the
9300	9300
9301	9301
9302	9302
9303	9303
9304	9304
9305	9305	HB4687 - 257 - LRB103 36052 LNS 66139 b
9306	9306
9307	9307
9308	9308	HB4687- 258 -LRB103 36052 LNS 66139 b HB4687 - 258 - LRB103 36052 LNS 66139 b
9309	9309	HB4687 - 258 - LRB103 36052 LNS 66139 b
9310	9310	1 county. A facility owner must enter into an agricultural
9311	9311	2 impact mitigation agreement with the Department of Agriculture
9312	9312	3 prior to the date of the required public hearing. A commercial
9313	9313	4 wind energy facility owner seeking an extension of a permit
9314	9314	5 granted by a county prior to July 24, 2015 (the effective date
9315	9315	6 of Public Act 99-132) must enter into an agricultural impact
9316	9316	7 mitigation agreement with the Department of Agriculture prior
9317	9317	8 to a decision by the county to grant the permit extension.
9318	9318	9 Counties may allow test wind towers or test solar energy
9319	9319	10 systems to be sited without formal approval by the county
9320	9320	11 board.
9321	9321	12 (d) A county with an existing zoning ordinance in conflict
9322	9322	13 with this Section shall amend that zoning ordinance to be in
9323	9323	14 compliance with this Section within 120 days after January 27,
9324	9324	15 2023 (the effective date of Public Act 102-1123).
9325	9325	16 (e) A county may require:
9326	9326	17 (1) a wind tower of a commercial wind energy facility
9327	9327	18 to be sited as follows, with setback distances measured
9328	9328	19 from the center of the base of the wind tower:
9329	9329	20 Setback Description Setback Distance
9330	9330	21 Occupied Community 2.1 times the maximum blade tip
9331	9331	22 Buildings height of the wind tower to the
9332	9332	23 nearest point on the outside
9333	9333	24 wall of the structure
9334	9334
9335	9335
9336	9336
9337	9337
9338	9338
9339	9339	HB4687 - 258 - LRB103 36052 LNS 66139 b
9340	9340
9341	9341
9342	9342	HB4687- 259 -LRB103 36052 LNS 66139 b HB4687 - 259 - LRB103 36052 LNS 66139 b
9343	9343	HB4687 - 259 - LRB103 36052 LNS 66139 b
9344	9344	1 Participating Residences 1.1 times the maximum blade tip
9345	9345	2 height of the wind tower to the
9346	9346	3 nearest point on the outside
9347	9347	4 wall of the structure
9348	9348	5 Nonparticipating Residences 2.1 times the maximum blade tip
9349	9349	6 height of the wind tower to the
9350	9350	7 nearest point on the outside
9351	9351	8 wall of the structure
9352	9352	9 Boundary Lines of None
9353	9353	10 Participating Property
9354	9354	11 Boundary Lines of 1.1 times the maximum blade tip
9355	9355	12 Nonparticipating Property height of the wind tower to the
9356	9356	13 nearest point on the property
9357	9357	14 line of the nonparticipating
9358	9358	15 property
9359	9359	16 Public Road Rights-of-Way 1.1 times the maximum blade tip
9360	9360	17 height of the wind tower
9361	9361	18 to the center point of the
9362	9362	19 public road right-of-way
9363	9363	20 Overhead Communication and 1.1 times the maximum blade tip
9364	9364
9365	9365
9366	9366
9367	9367
9368	9368
9369	9369	HB4687 - 259 - LRB103 36052 LNS 66139 b
9370	9370
9371	9371
9372	9372	HB4687- 260 -LRB103 36052 LNS 66139 b HB4687 - 260 - LRB103 36052 LNS 66139 b
9373	9373	HB4687 - 260 - LRB103 36052 LNS 66139 b
9374	9374	1 Electric Transmission height of the wind tower to the
9375	9375	2 and Distribution Facilities nearest edge of the property
9376	9376	3 (Not Including Overhead line, easement, or
9377	9377	4 Utility Service Lines to right-of-way
9378	9378	5 Individual Houses or containing the overhead line
9379	9379	6 Outbuildings)
9380	9380	7 Overhead Utility Service None
9381	9381	8 Lines to Individual
9382	9382	9 Houses or Outbuildings
9383	9383	10 Fish and Wildlife Areas 2.1 times the maximum blade
9384	9384	11 and Illinois Nature tip height of the wind tower
9385	9385	12 Preserve Commission to the nearest point on the
9386	9386	13 Protected Lands property line of the fish and
9387	9387	14 wildlife area or protected
9388	9388	15 land
9389	9389	16 This Section does not exempt or excuse compliance with
9390	9390	17 electric facility clearances approved or required by the
9391	9391	18 National Electrical Code, The National Electrical Safety
9392	9392	19 Code, Illinois Commerce Commission, Federal Energy
9393	9393	20 Regulatory Commission, and their designees or successors.
9394	9394	21 (2) a wind tower of a commercial wind energy facility
9395	9395	22 to be sited so that industry standard computer modeling
9396	9396	23 indicates that any occupied community building or
9397	9397
9398	9398
9399	9399
9400	9400
9401	9401
9402	9402	HB4687 - 260 - LRB103 36052 LNS 66139 b
9403	9403
9404	9404
9405	9405	HB4687- 261 -LRB103 36052 LNS 66139 b HB4687 - 261 - LRB103 36052 LNS 66139 b
9406	9406	HB4687 - 261 - LRB103 36052 LNS 66139 b
9407	9407	1 nonparticipating residence will not experience more than
9408	9408	2 30 hours per year of shadow flicker under planned
9409	9409	3 operating conditions;
9410	9410	4 (3) a commercial solar energy facility to be sited as
9411	9411	5 follows, with setback distances measured from the nearest
9412	9412	6 edge of any component of the facility:
9413	9413	7 Setback Description Setback Distance
9414	9414	8 Occupied Community 150 feet from the nearest
9415	9415	9 Buildings and Dwellings on point on the outside wall
9416	9416	10 Nonparticipating Properties of the structure
9417	9417	11 Boundary Lines of None
9418	9418	12 Participating Property
9419	9419	13 Public Road Rights-of-Way 50 feet from the nearest
9420	9420	14 edge
9421	9421	15 Boundary Lines of 50 feet to the nearest
9422	9422	16 Nonparticipating Property point on the property
9423	9423	17 line of the nonparticipating
9424	9424	18 property
9425	9425	19 (4) a commercial solar energy facility to be sited so
9426	9426	20 that the facility's perimeter is enclosed by fencing
9427	9427
9428	9428
9429	9429
9430	9430
9431	9431
9432	9432	HB4687 - 261 - LRB103 36052 LNS 66139 b
9433	9433
9434	9434
9435	9435	HB4687- 262 -LRB103 36052 LNS 66139 b HB4687 - 262 - LRB103 36052 LNS 66139 b
9436	9436	HB4687 - 262 - LRB103 36052 LNS 66139 b
9437	9437	1 having a height of at least 6 feet and no more than 25
9438	9438	2 feet; and
9439	9439	3 (5) a commercial solar energy facility to be sited so
9440	9440	4 that no component of a solar panel has a height of more
9441	9441	5 than 20 feet above ground when the solar energy facility's
9442	9442	6 arrays are at full tilt.
9443	9443	7 The requirements set forth in this subsection (e) may be
9444	9444	8 waived subject to the written consent of the owner of each
9445	9445	9 affected nonparticipating property.
9446	9446	10 (f) A county may not set a sound limitation for wind towers
9447	9447	11 in commercial wind energy facilities or any components in
9448	9448	12 commercial solar energy facilities that is more restrictive
9449	9449	13 than the sound limitations established by the Illinois
9450	9450	14 Pollution Control Board under 35 Ill. Adm. Code Parts 900,
9451	9451	15 901, and 910.
9452	9452	16 (g) A county may not place any restriction on the
9453	9453	17 installation or use of a commercial wind energy facility or a
9454	9454	18 commercial solar energy facility unless it adopts an ordinance
9455	9455	19 that complies with this Section. A county may not establish
9456	9456	20 siting standards for supporting facilities that preclude
9457	9457	21 development of commercial wind energy facilities or commercial
9458	9458	22 solar energy facilities.
9459	9459	23 A request for siting approval or a special use permit for a
9460	9460	24 commercial wind energy facility or a commercial solar energy
9461	9461	25 facility, or modification of an approved siting or special use
9462	9462	26 permit, shall be approved if the request is in compliance with
9463	9463
9464	9464
9465	9465
9466	9466
9467	9467
9468	9468	HB4687 - 262 - LRB103 36052 LNS 66139 b
9469	9469
9470	9470
9471	9471	HB4687- 263 -LRB103 36052 LNS 66139 b HB4687 - 263 - LRB103 36052 LNS 66139 b
9472	9472	HB4687 - 263 - LRB103 36052 LNS 66139 b
9473	9473	1 the standards and conditions imposed in this Act, the zoning
9474	9474	2 ordinance adopted consistent with this Code, and the
9475	9475	3 conditions imposed under State and federal statutes and
9476	9476	4 regulations.
9477	9477	5 (h) A county may not adopt zoning regulations that
9478	9478	6 disallow, permanently or temporarily, commercial wind energy
9479	9479	7 facilities or commercial solar energy facilities from being
9480	9480	8 developed or operated in any district zoned to allow
9481	9481	9 agricultural or industrial uses.
9482	9482	10 (i) A county may not require permit application fees for a
9483	9483	11 commercial wind energy facility or commercial solar energy
9484	9484	12 facility that are unreasonable. All application fees imposed
9485	9485	13 by the county shall be consistent with fees for projects in the
9486	9486	14 county with similar capital value and cost.
9487	9487	15 (j) Except as otherwise provided in this Section, a county
9488	9488	16 shall not require standards for construction, decommissioning,
9489	9489	17 or deconstruction of a commercial wind energy facility or
9490	9490	18 commercial solar energy facility or related financial
9491	9491	19 assurances that are more restrictive than those included in
9492	9492	20 the Department of Agriculture's standard wind farm
9493	9493	21 agricultural impact mitigation agreement, template 81818, or
9494	9494	22 standard solar agricultural impact mitigation agreement,
9495	9495	23 version 8.19.19, as applicable and in effect on December 31,
9496	9496	24 2022. The amount of any decommissioning payment shall be in
9497	9497	25 accordance with the financial assurance required by those
9498	9498	26 agricultural impact mitigation agreements.
9499	9499
9500	9500
9501	9501
9502	9502
9503	9503
9504	9504	HB4687 - 263 - LRB103 36052 LNS 66139 b
9505	9505
9506	9506
9507	9507	HB4687- 264 -LRB103 36052 LNS 66139 b HB4687 - 264 - LRB103 36052 LNS 66139 b
9508	9508	HB4687 - 264 - LRB103 36052 LNS 66139 b
9509	9509	1 (j-5) A commercial wind energy facility or a commercial
9510	9510	2 solar energy facility shall file a farmland drainage plan with
9511	9511	3 the county and impacted drainage districts outlining how
9512	9512	4 surface and subsurface drainage of farmland will be restored
9513	9513	5 during and following construction or deconstruction of the
9514	9514	6 facility. The plan is to be created independently by the
9515	9515	7 facility developer and shall include the location of any
9516	9516	8 potentially impacted drainage district facilities to the
9517	9517	9 extent this information is publicly available from the county
9518	9518	10 or the drainage district, plans to repair any subsurface
9519	9519	11 drainage affected during construction or deconstruction using
9520	9520	12 procedures outlined in the agricultural impact mitigation
9521	9521	13 agreement entered into by the commercial wind energy facility
9522	9522	14 owner or commercial solar energy facility owner, and
9523	9523	15 procedures for the repair and restoration of surface drainage
9524	9524	16 affected during construction or deconstruction. All surface
9525	9525	17 and subsurface damage shall be repaired as soon as reasonably
9526	9526	18 practicable.
9527	9527	19 (k) A county may not condition approval of a commercial
9528	9528	20 wind energy facility or commercial solar energy facility on a
9529	9529	21 property value guarantee and may not require a facility owner
9530	9530	22 to pay into a neighboring property devaluation escrow account.
9531	9531	23 (l) A county may require certain vegetative screening
9532	9532	24 surrounding a commercial wind energy facility or commercial
9533	9533	25 solar energy facility but may not require earthen berms or
9534	9534	26 similar structures.
9535	9535
9536	9536
9537	9537
9538	9538
9539	9539
9540	9540	HB4687 - 264 - LRB103 36052 LNS 66139 b
9541	9541
9542	9542
9543	9543	HB4687- 265 -LRB103 36052 LNS 66139 b HB4687 - 265 - LRB103 36052 LNS 66139 b
9544	9544	HB4687 - 265 - LRB103 36052 LNS 66139 b
9545	9545	1 (m) A county may set blade tip height limitations for wind
9546	9546	2 towers in commercial wind energy facilities but may not set a
9547	9547	3 blade tip height limitation that is more restrictive than the
9548	9548	4 height allowed under a Determination of No Hazard to Air
9549	9549	5 Navigation by the Federal Aviation Administration under 14 CFR
9550	9550	6 Part 77.
9551	9551	7 (n) A county may require that a commercial wind energy
9552	9552	8 facility owner or commercial solar energy facility owner
9553	9553	9 provide:
9554	9554	10 (1) the results and recommendations from consultation
9555	9555	11 with the Illinois Department of Natural Resources that are
9556	9556	12 obtained through the Ecological Compliance Assessment Tool
9557	9557	13 (EcoCAT) or a comparable successor tool; and
9558	9558	14 (2) the results of the United States Fish and Wildlife
9559	9559	15 Service's Information for Planning and Consulting
9560	9560	16 environmental review or a comparable successor tool that
9561	9561	17 is consistent with (i) the "U.S. Fish and Wildlife
9562	9562	18 Service's Land-Based Wind Energy Guidelines" and (ii) any
9563	9563	19 applicable United States Fish and Wildlife Service solar
9564	9564	20 wildlife guidelines that have been subject to public
9565	9565	21 review.
9566	9566	22 (o) A county may require a commercial wind energy facility
9567	9567	23 or commercial solar energy facility to adhere to the
9568	9568	24 recommendations provided by the Illinois Department of Natural
9569	9569	25 Resources in an EcoCAT natural resource review report under 17
9570	9570	26 Ill. Adm. Code Part 1075.
9571	9571
9572	9572
9573	9573
9574	9574
9575	9575
9576	9576	HB4687 - 265 - LRB103 36052 LNS 66139 b
9577	9577
9578	9578
9579	9579	HB4687- 266 -LRB103 36052 LNS 66139 b HB4687 - 266 - LRB103 36052 LNS 66139 b
9580	9580	HB4687 - 266 - LRB103 36052 LNS 66139 b
9581	9581	1 (p) A county may require a facility owner to:
9582	9582	2 (1) demonstrate avoidance of protected lands as
9583	9583	3 identified by the Illinois Department of Natural Resources
9584	9584	4 and the Illinois Nature Preserve Commission; or
9585	9585	5 (2) consider the recommendations of the Illinois
9586	9586	6 Department of Natural Resources for setbacks from
9587	9587	7 protected lands, including areas identified by the
9588	9588	8 Illinois Nature Preserve Commission.
9589	9589	9 (q) A county may require that a facility owner provide
9590	9590	10 evidence of consultation with the Illinois State Historic
9591	9591	11 Preservation Office to assess potential impacts on
9592	9592	12 State-registered historic sites under the Illinois State
9593	9593	13 Agency Historic Resources Preservation Act.
9594	9594	14 (r) To maximize community benefits, including, but not
9595	9595	15 limited to, reduced stormwater runoff, flooding, and erosion
9596	9596	16 at the ground mounted solar energy system, improved soil
9597	9597	17 health, and increased foraging habitat for game birds,
9598	9598	18 songbirds, and pollinators, a county may (1) require a
9599	9599	19 commercial solar energy facility owner to plant, establish,
9600	9600	20 and maintain for the life of the facility vegetative ground
9601	9601	21 cover, consistent with the goals of the Pollinator-Friendly
9602	9602	22 Solar Site Act and (2) require the submittal of a vegetation
9603	9603	23 management plan that is in compliance with the agricultural
9604	9604	24 impact mitigation agreement in the application to construct
9605	9605	25 and operate a commercial solar energy facility in the county
9606	9606	26 if the vegetative ground cover and vegetation management plan
9607	9607
9608	9608
9609	9609
9610	9610
9611	9611
9612	9612	HB4687 - 266 - LRB103 36052 LNS 66139 b
9613	9613
9614	9614
9615	9615	HB4687- 267 -LRB103 36052 LNS 66139 b HB4687 - 267 - LRB103 36052 LNS 66139 b
9616	9616	HB4687 - 267 - LRB103 36052 LNS 66139 b
9617	9617	1 comply with the requirements of the underlying agreement with
9618	9618	2 the landowner or landowners where the facility will be
9619	9619	3 constructed.
9620	9620	4 No later than 90 days after January 27, 2023 (the
9621	9621	5 effective date of Public Act 102-1123), the Illinois
9622	9622	6 Department of Natural Resources shall develop guidelines for
9623	9623	7 vegetation management plans that may be required under this
9624	9624	8 subsection for commercial solar energy facilities. The
9625	9625	9 guidelines must include guidance for short-term and long-term
9626	9626	10 property management practices that provide and maintain native
9627	9627	11 and non-invasive naturalized perennial vegetation to protect
9628	9628	12 the health and well-being of pollinators.
9629	9629	13 (s) If a facility owner enters into a road use agreement
9630	9630	14 with the Illinois Department of Transportation, a road
9631	9631	15 district, or other unit of local government relating to a
9632	9632	16 commercial wind energy facility or a commercial solar energy
9633	9633	17 facility, the road use agreement shall require the facility
9634	9634	18 owner to be responsible for (i) the reasonable cost of
9635	9635	19 improving roads used by the facility owner to construct the
9636	9636	20 commercial wind energy facility or the commercial solar energy
9637	9637	21 facility and (ii) the reasonable cost of repairing roads used
9638	9638	22 by the facility owner during construction of the commercial
9639	9639	23 wind energy facility or the commercial solar energy facility
9640	9640	24 so that those roads are in a condition that is safe for the
9641	9641	25 driving public after the completion of the facility's
9642	9642	26 construction. Roadways improved in preparation for and during
9643	9643
9644	9644
9645	9645
9646	9646
9647	9647
9648	9648	HB4687 - 267 - LRB103 36052 LNS 66139 b
9649	9649
9650	9650
9651	9651	HB4687- 268 -LRB103 36052 LNS 66139 b HB4687 - 268 - LRB103 36052 LNS 66139 b
9652	9652	HB4687 - 268 - LRB103 36052 LNS 66139 b
9653	9653	1 the construction of the commercial wind energy facility or
9654	9654	2 commercial solar energy facility shall be repaired and
9655	9655	3 restored to the improved condition at the reasonable cost of
9656	9656	4 the developer if the roadways have degraded or were damaged as
9657	9657	5 a result of construction-related activities.
9658	9658	6 The road use agreement shall not require the facility
9659	9659	7 owner to pay costs, fees, or charges for road work that is not
9660	9660	8 specifically and uniquely attributable to the construction of
9661	9661	9 the commercial wind energy facility or the commercial solar
9662	9662	10 energy facility. Road-related fees, permit fees, or other
9663	9663	11 charges imposed by the Illinois Department of Transportation,
9664	9664	12 a road district, or other unit of local government under a road
9665	9665	13 use agreement with the facility owner shall be reasonably
9666	9666	14 related to the cost of administration of the road use
9667	9667	15 agreement.
9668	9668	16 (s-5) The facility owner shall also compensate landowners
9669	9669	17 for crop losses or other agricultural damages resulting from
9670	9670	18 damage to the drainage system caused by the construction of
9671	9671	19 the commercial wind energy facility or the commercial solar
9672	9672	20 energy facility. The commercial wind energy facility owner or
9673	9673	21 commercial solar energy facility owner shall repair or pay for
9674	9674	22 the repair of all damage to the subsurface drainage system
9675	9675	23 caused by the construction of the commercial wind energy
9676	9676	24 facility or the commercial solar energy facility in accordance
9677	9677	25 with the agriculture impact mitigation agreement requirements
9678	9678	26 for repair of drainage. The commercial wind energy facility
9679	9679
9680	9680
9681	9681
9682	9682
9683	9683
9684	9684	HB4687 - 268 - LRB103 36052 LNS 66139 b
9685	9685
9686	9686
9687	9687	HB4687- 269 -LRB103 36052 LNS 66139 b HB4687 - 269 - LRB103 36052 LNS 66139 b
9688	9688	HB4687 - 269 - LRB103 36052 LNS 66139 b
9689	9689	1 owner or commercial solar energy facility owner shall repair
9690	9690	2 or pay for the repair and restoration of surface drainage
9691	9691	3 caused by the construction or deconstruction of the commercial
9692	9692	4 wind energy facility or the commercial solar energy facility
9693	9693	5 as soon as reasonably practicable.
9694	9694	6 (t) Notwithstanding any other provision of law, a facility
9695	9695	7 owner with siting approval from a county to construct a
9696	9696	8 commercial wind energy facility or a commercial solar energy
9697	9697	9 facility is authorized to cross or impact a drainage system,
9698	9698	10 including, but not limited to, drainage tiles, open drainage
9699	9699	11 ditches, culverts, and water gathering vaults, owned or under
9700	9700	12 the control of a drainage district under the Illinois Drainage
9701	9701	13 Code without obtaining prior agreement or approval from the
9702	9702	14 drainage district in accordance with the farmland drainage
9703	9703	15 plan required by subsection (j-5).
9704	9704	16 (u) The amendments to this Section adopted in Public Act
9705	9705	17 102-1123 do not apply to: (1) an application for siting
9706	9706	18 approval or for a special use permit for a commercial wind
9707	9707	19 energy facility or commercial solar energy facility if the
9708	9708	20 application was submitted to a unit of local government before
9709	9709	21 January 27, 2023 (the effective date of Public Act 102-1123);
9710	9710	22 (2) a commercial wind energy facility or a commercial solar
9711	9711	23 energy facility if the facility owner has submitted an
9712	9712	24 agricultural impact mitigation agreement to the Department of
9713	9713	25 Agriculture before January 27, 2023 (the effective date of
9714	9714	26 Public Act 102-1123); or (3) a commercial wind energy or
9715	9715
9716	9716
9717	9717
9718	9718
9719	9719
9720	9720	HB4687 - 269 - LRB103 36052 LNS 66139 b
9721	9721
9722	9722
9723	9723	HB4687- 270 -LRB103 36052 LNS 66139 b HB4687 - 270 - LRB103 36052 LNS 66139 b
9724	9724	HB4687 - 270 - LRB103 36052 LNS 66139 b
9725	9725	1 commercial solar energy development on property that is
9726	9726	2 located within an enterprise zone certified under the Illinois
9727	9727	3 Enterprise Zone Act, that was classified as industrial by the
9728	9728	4 appropriate zoning authority on or before January 27, 2023,
9729	9729	5 and that is located within 4 miles of the intersection of
9730	9730	6 Interstate 88 and Interstate 39.
9731	9731	7 (Source: P.A. 102-1123, eff. 1-27-23; 103-81, eff. 6-9-23;
9732	9732	8 103-580, eff. 12-8-23.)
9733	9733	9 Section 25. The Public Utilities Act is amended by
9734	9734	10 changing Sections 8-218, 16-108, and 16-111.5 as follows:
9735	9735	11 (220 ILCS 5/8-218)
9736	9736	12 Sec. 8-218. Utility-scale pilot projects.
9737	9737	13 (a) Electric utilities serving greater than 500,000
9738	9738	14 customers but less than 3,000,000 customers may propose, plan
9739	9739	15 for, construct, install, control, own, manage, or operate up
9740	9740	16 to 2 pilot projects consisting of utility-scale photovoltaic
9741	9741	17 energy generation facilities. A pilot project may consist of
9742	9742	18 photovoltaic energy generation facilities located on one or
9743	9743	19 more sites and may be installed or constructed in phases.
9744	9744	20 Energy storage facilities that are planned for, constructed,
9745	9745	21 installed, controlled, owned, managed, or operated may be
9746	9746	22 constructed in connection with the photovoltaic electricity
9747	9747	23 generation pilot projects.
9748	9748	24 (b) Pilot projects shall be sited in equity investment
9749	9749
9750	9750
9751	9751
9752	9752
9753	9753
9754	9754	HB4687 - 270 - LRB103 36052 LNS 66139 b
9755	9755
9756	9756
9757	9757	HB4687- 271 -LRB103 36052 LNS 66139 b HB4687 - 271 - LRB103 36052 LNS 66139 b
9758	9758	HB4687 - 271 - LRB103 36052 LNS 66139 b
9759	9759	1 eligible communities in or near the towns of Peoria and East
9760	9760	2 St. Louis and must result in economic benefits for the members
9761	9761	3 of the communities in which the project will be located. The
9762	9762	4 amount paid per pilot project with or without energy storage
9763	9763	5 facilities cannot exceed $20,000,000. The electric utility's
9764	9764	6 costs of planning for, constructing, installing, controlling,
9765	9765	7 owning, managing, or operating the photovoltaic electricity
9766	9766	8 generation facilities and energy storage facilities may be
9767	9767	9 recovered, on a kilowatt hour basis, via an automatic
9768	9768	10 adjustment clause tariff applicable to all retail customers,
9769	9769	11 with the tariff to be approved by the Commission after
9770	9770	12 opportunity for review, and with an annual reconciliation
9771	9771	13 component; and for purposes of cost recovery, the photovoltaic
9772	9772	14 electricity production facilities may be treated as regulatory
9773	9773	15 assets, using the same ratemaking treatment in paragraph (1)
9774	9774	16 of subsection (h) of Section 16-107.6 of this Act, provided:
9775	9775	17 (1) the Commission shall have the authority to determine the
9776	9776	18 reasonableness of the costs of the facilities, and (2) any
9777	9777	19 monetary value of power and energy from the facilities shall
9778	9778	20 be credited against the delivery services revenue requirement.
9779	9779	21 (c) Any electric utility seeking to propose, plan for,
9780	9780	22 construct, install, control, own, manage, or operate a pilot
9781	9781	23 project pursuant to this Section must commit to using a
9782	9782	24 diverse and equitable workforce and a diverse set of
9783	9783	25 contractors, including minority-owned businesses,
9784	9784	26 disadvantaged businesses, trade unions, graduates of any
9785	9785
9786	9786
9787	9787
9788	9788
9789	9789
9790	9790	HB4687 - 271 - LRB103 36052 LNS 66139 b
9791	9791
9792	9792
9793	9793	HB4687- 272 -LRB103 36052 LNS 66139 b HB4687 - 272 - LRB103 36052 LNS 66139 b
9794	9794	HB4687 - 272 - LRB103 36052 LNS 66139 b
9795	9795	1 workforce training programs established by this amendatory Act
9796	9796	2 of the 102nd General Assembly, and small businesses. An
9797	9797	3 electric utility must comply with the equity commitment
9798	9798	4 requirements in subsection (c-10) of Section 1-75 of the
9799	9799	5 Illinois Power Agency Act. The electric utility must certify
9800	9800	6 that not less than the prevailing wage will be paid to
9801	9801	7 employees engaged in construction activities associated with
9802	9802	8 the pilot project. The electric utility must file a project
9803	9803	9 labor agreement, as defined in the Illinois Power Agency Act,
9804	9804	10 with the Commission prior to constructing, installing,
9805	9805	11 controlling, or owning a pilot project authorized by this
9806	9806	12 Section.
9807	9807	13 (Source: P.A. 102-662, eff. 9-15-21; 102-1031, eff. 5-27-22.)
9808	9808	14 (220 ILCS 5/16-108)
9809	9809	15 Sec. 16-108. Recovery of costs associated with the
9810	9810	16 provision of delivery and other services.
9811	9811	17 (a) An electric utility shall file a delivery services
9812	9812	18 tariff with the Commission at least 210 days prior to the date
9813	9813	19 that it is required to begin offering such services pursuant
9814	9814	20 to this Act. An electric utility shall provide the components
9815	9815	21 of delivery services that are subject to the jurisdiction of
9816	9816	22 the Federal Energy Regulatory Commission at the same prices,
9817	9817	23 terms and conditions set forth in its applicable tariff as
9818	9818	24 approved or allowed into effect by that Commission. The
9819	9819	25 Commission shall otherwise have the authority pursuant to
9820	9820
9821	9821
9822	9822
9823	9823
9824	9824
9825	9825	HB4687 - 272 - LRB103 36052 LNS 66139 b
9826	9826
9827	9827
9828	9828	HB4687- 273 -LRB103 36052 LNS 66139 b HB4687 - 273 - LRB103 36052 LNS 66139 b
9829	9829	HB4687 - 273 - LRB103 36052 LNS 66139 b
9830	9830	1 Article IX to review, approve, and modify the prices, terms
9831	9831	2 and conditions of those components of delivery services not
9832	9832	3 subject to the jurisdiction of the Federal Energy Regulatory
9833	9833	4 Commission, including the authority to determine the extent to
9834	9834	5 which such delivery services should be offered on an unbundled
9835	9835	6 basis. In making any such determination the Commission shall
9836	9836	7 consider, at a minimum, the effect of additional unbundling on
9837	9837	8 (i) the objective of just and reasonable rates, (ii) electric
9838	9838	9 utility employees, and (iii) the development of competitive
9839	9839	10 markets for electric energy services in Illinois.
9840	9840	11 (b) The Commission shall enter an order approving, or
9841	9841	12 approving as modified, the delivery services tariff no later
9842	9842	13 than 30 days prior to the date on which the electric utility
9843	9843	14 must commence offering such services. The Commission may
9844	9844	15 subsequently modify such tariff pursuant to this Act.
9845	9845	16 (c) The electric utility's tariffs shall define the
9846	9846	17 classes of its customers for purposes of delivery services
9847	9847	18 charges. Delivery services shall be priced and made available
9848	9848	19 to all retail customers electing delivery services in each
9849	9849	20 such class on a nondiscriminatory basis regardless of whether
9850	9850	21 the retail customer chooses the electric utility, an affiliate
9851	9851	22 of the electric utility, or another entity as its supplier of
9852	9852	23 electric power and energy. Charges for delivery services shall
9853	9853	24 be cost based, and shall allow the electric utility to recover
9854	9854	25 the costs of providing delivery services through its charges
9855	9855	26 to its delivery service customers that use the facilities and
9856	9856
9857	9857
9858	9858
9859	9859
9860	9860
9861	9861	HB4687 - 273 - LRB103 36052 LNS 66139 b
9862	9862
9863	9863
9864	9864	HB4687- 274 -LRB103 36052 LNS 66139 b HB4687 - 274 - LRB103 36052 LNS 66139 b
9865	9865	HB4687 - 274 - LRB103 36052 LNS 66139 b
9866	9866	1 services associated with such costs. Such costs shall include
9867	9867	2 the costs of owning, operating and maintaining transmission
9868	9868	3 and distribution facilities. The Commission shall also be
9869	9869	4 authorized to consider whether, and if so to what extent, the
9870	9870	5 following costs are appropriately included in the electric
9871	9871	6 utility's delivery services rates: (i) the costs of that
9872	9872	7 portion of generation facilities used for the production and
9873	9873	8 absorption of reactive power in order that retail customers
9874	9874	9 located in the electric utility's service area can receive
9875	9875	10 electric power and energy from suppliers other than the
9876	9876	11 electric utility, and (ii) the costs associated with the use
9877	9877	12 and redispatch of generation facilities to mitigate
9878	9878	13 constraints on the transmission or distribution system in
9879	9879	14 order that retail customers located in the electric utility's
9880	9880	15 service area can receive electric power and energy from
9881	9881	16 suppliers other than the electric utility. Nothing in this
9882	9882	17 subsection shall be construed as directing the Commission to
9883	9883	18 allocate any of the costs described in (i) or (ii) that are
9884	9884	19 found to be appropriately included in the electric utility's
9885	9885	20 delivery services rates to any particular customer group or
9886	9886	21 geographic area in setting delivery services rates.
9887	9887	22 (d) The Commission shall establish charges, terms and
9888	9888	23 conditions for delivery services that are just and reasonable
9889	9889	24 and shall take into account customer impacts when establishing
9890	9890	25 such charges. In establishing charges, terms and conditions
9891	9891	26 for delivery services, the Commission shall take into account
9892	9892
9893	9893
9894	9894
9895	9895
9896	9896
9897	9897	HB4687 - 274 - LRB103 36052 LNS 66139 b
9898	9898
9899	9899
9900	9900	HB4687- 275 -LRB103 36052 LNS 66139 b HB4687 - 275 - LRB103 36052 LNS 66139 b
9901	9901	HB4687 - 275 - LRB103 36052 LNS 66139 b
9902	9902	1 voltage level differences. A retail customer shall have the
9903	9903	2 option to request to purchase electric service at any delivery
9904	9904	3 service voltage reasonably and technically feasible from the
9905	9905	4 electric facilities serving that customer's premises provided
9906	9906	5 that there are no significant adverse impacts upon system
9907	9907	6 reliability or system efficiency. A retail customer shall also
9908	9908	7 have the option to request to purchase electric service at any
9909	9909	8 point of delivery that is reasonably and technically feasible
9910	9910	9 provided that there are no significant adverse impacts on
9911	9911	10 system reliability or efficiency. Such requests shall not be
9912	9912	11 unreasonably denied.
9913	9913	12 (e) Electric utilities shall recover the costs of
9914	9914	13 installing, operating or maintaining facilities for the
9915	9915	14 particular benefit of one or more delivery services customers,
9916	9916	15 including without limitation any costs incurred in complying
9917	9917	16 with a customer's request to be served at a different voltage
9918	9918	17 level, directly from the retail customer or customers for
9919	9919	18 whose benefit the costs were incurred, to the extent such
9920	9920	19 costs are not recovered through the charges referred to in
9921	9921	20 subsections (c) and (d) of this Section.
9922	9922	21 (f) An electric utility shall be entitled but not required
9923	9923	22 to implement transition charges in conjunction with the
9924	9924	23 offering of delivery services pursuant to Section 16-104. If
9925	9925	24 an electric utility implements transition charges, it shall
9926	9926	25 implement such charges for all delivery services customers and
9927	9927	26 for all customers described in subsection (h), but shall not
9928	9928
9929	9929
9930	9930
9931	9931
9932	9932
9933	9933	HB4687 - 275 - LRB103 36052 LNS 66139 b
9934	9934
9935	9935
9936	9936	HB4687- 276 -LRB103 36052 LNS 66139 b HB4687 - 276 - LRB103 36052 LNS 66139 b
9937	9937	HB4687 - 276 - LRB103 36052 LNS 66139 b
9938	9938	1 implement transition charges for power and energy that a
9939	9939	2 retail customer takes from cogeneration or self-generation
9940	9940	3 facilities located on that retail customer's premises, if such
9941	9941	4 facilities meet the following criteria:
9942	9942	5 (i) the cogeneration or self-generation facilities
9943	9943	6 serve a single retail customer and are located on that
9944	9944	7 retail customer's premises (for purposes of this
9945	9945	8 subparagraph and subparagraph (ii), an industrial or
9946	9946	9 manufacturing retail customer and a third party contractor
9947	9947	10 that is served by such industrial or manufacturing
9948	9948	11 customer through such retail customer's own electrical
9949	9949	12 distribution facilities under the circumstances described
9950	9950	13 in subsection (vi) of the definition of "alternative
9951	9951	14 retail electric supplier" set forth in Section 16-102,
9952	9952	15 shall be considered a single retail customer);
9953	9953	16 (ii) the cogeneration or self-generation facilities
9954	9954	17 either (A) are sized pursuant to generally accepted
9955	9955	18 engineering standards for the retail customer's electrical
9956	9956	19 load at that premises (taking into account standby or
9957	9957	20 other reliability considerations related to that retail
9958	9958	21 customer's operations at that site) or (B) if the facility
9959	9959	22 is a cogeneration facility located on the retail
9960	9960	23 customer's premises, the retail customer is the thermal
9961	9961	24 host for that facility and the facility has been designed
9962	9962	25 to meet that retail customer's thermal energy requirements
9963	9963	26 resulting in electrical output beyond that retail
9964	9964
9965	9965
9966	9966
9967	9967
9968	9968
9969	9969	HB4687 - 276 - LRB103 36052 LNS 66139 b
9970	9970
9971	9971
9972	9972	HB4687- 277 -LRB103 36052 LNS 66139 b HB4687 - 277 - LRB103 36052 LNS 66139 b
9973	9973	HB4687 - 277 - LRB103 36052 LNS 66139 b
9974	9974	1 customer's electrical demand at that premises, comply with
9975	9975	2 the operating and efficiency standards applicable to
9976	9976	3 "qualifying facilities" specified in title 18 Code of
9977	9977	4 Federal Regulations Section 292.205 as in effect on the
9978	9978	5 effective date of this amendatory Act of 1999;
9979	9979	6 (iii) the retail customer on whose premises the
9980	9980	7 facilities are located either has an exclusive right to
9981	9981	8 receive, and corresponding obligation to pay for, all of
9982	9982	9 the electrical capacity of the facility, or in the case of
9983	9983	10 a cogeneration facility that has been designed to meet the
9984	9984	11 retail customer's thermal energy requirements at that
9985	9985	12 premises, an identified amount of the electrical capacity
9986	9986	13 of the facility, over a minimum 5-year period; and
9987	9987	14 (iv) if the cogeneration facility is sized for the
9988	9988	15 retail customer's thermal load at that premises but
9989	9989	16 exceeds the electrical load, any sales of excess power or
9990	9990	17 energy are made only at wholesale, are subject to the
9991	9991	18 jurisdiction of the Federal Energy Regulatory Commission,
9992	9992	19 and are not for the purpose of circumventing the
9993	9993	20 provisions of this subsection (f).
9994	9994	21 If a generation facility located at a retail customer's
9995	9995	22 premises does not meet the above criteria, an electric utility
9996	9996	23 implementing transition charges shall implement a transition
9997	9997	24 charge until December 31, 2006 for any power and energy taken
9998	9998	25 by such retail customer from such facility as if such power and
9999	9999	26 energy had been delivered by the electric utility. Provided,
10000	10000
10001	10001
10002	10002
10003	10003
10004	10004
10005	10005	HB4687 - 277 - LRB103 36052 LNS 66139 b
10006	10006
10007	10007
10008	10008	HB4687- 278 -LRB103 36052 LNS 66139 b HB4687 - 278 - LRB103 36052 LNS 66139 b
10009	10009	HB4687 - 278 - LRB103 36052 LNS 66139 b
10010	10010	1 however, that an industrial retail customer that is taking
10011	10011	2 power from a generation facility that does not meet the above
10012	10012	3 criteria but that is located on such customer's premises will
10013	10013	4 not be subject to a transition charge for the power and energy
10014	10014	5 taken by such retail customer from such generation facility if
10015	10015	6 the facility does not serve any other retail customer and
10016	10016	7 either was installed on behalf of the customer and for its own
10017	10017	8 use prior to January 1, 1997, or is both predominantly fueled
10018	10018	9 by byproducts of such customer's manufacturing process at such
10019	10019	10 premises and sells or offers an average of 300 megawatts or
10020	10020	11 more of electricity produced from such generation facility
10021	10021	12 into the wholesale market. Such charges shall be calculated as
10022	10022	13 provided in Section 16-102, and shall be collected on each
10023	10023	14 kilowatt-hour delivered under a delivery services tariff to a
10024	10024	15 retail customer from the date the customer first takes
10025	10025	16 delivery services until December 31, 2006 except as provided
10026	10026	17 in subsection (h) of this Section. Provided, however, that an
10027	10027	18 electric utility, other than an electric utility providing
10028	10028	19 service to at least 1,000,000 customers in this State on
10029	10029	20 January 1, 1999, shall be entitled to petition for entry of an
10030	10030	21 order by the Commission authorizing the electric utility to
10031	10031	22 implement transition charges for an additional period ending
10032	10032	23 no later than December 31, 2008. The electric utility shall
10033	10033	24 file its petition with supporting evidence no earlier than 16
10034	10034	25 months, and no later than 12 months, prior to December 31,
10035	10035	26 2006. The Commission shall hold a hearing on the electric
10036	10036
10037	10037
10038	10038
10039	10039
10040	10040
10041	10041	HB4687 - 278 - LRB103 36052 LNS 66139 b
10042	10042
10043	10043
10044	10044	HB4687- 279 -LRB103 36052 LNS 66139 b HB4687 - 279 - LRB103 36052 LNS 66139 b
10045	10045	HB4687 - 279 - LRB103 36052 LNS 66139 b
10046	10046	1 utility's petition and shall enter its order no later than 8
10047	10047	2 months after the petition is filed. The Commission shall
10048	10048	3 determine whether and to what extent the electric utility
10049	10049	4 shall be authorized to implement transition charges for an
10050	10050	5 additional period. The Commission may authorize the electric
10051	10051	6 utility to implement transition charges for some or all of the
10052	10052	7 additional period, and shall determine the mitigation factors
10053	10053	8 to be used in implementing such transition charges; provided,
10054	10054	9 that the Commission shall not authorize mitigation factors
10055	10055	10 less than 110% of those in effect during the 12 months ended
10056	10056	11 December 31, 2006. In making its determination, the Commission
10057	10057	12 shall consider the following factors: the necessity to
10058	10058	13 implement transition charges for an additional period in order
10059	10059	14 to maintain the financial integrity of the electric utility;
10060	10060	15 the prudence of the electric utility's actions in reducing its
10061	10061	16 costs since the effective date of this amendatory Act of 1997;
10062	10062	17 the ability of the electric utility to provide safe, adequate
10063	10063	18 and reliable service to retail customers in its service area;
10064	10064	19 and the impact on competition of allowing the electric utility
10065	10065	20 to implement transition charges for the additional period.
10066	10066	21 (g) The electric utility shall file tariffs that establish
10067	10067	22 the transition charges to be paid by each class of customers to
10068	10068	23 the electric utility in conjunction with the provision of
10069	10069	24 delivery services. The electric utility's tariffs shall define
10070	10070	25 the classes of its customers for purposes of calculating
10071	10071	26 transition charges. The electric utility's tariffs shall
10072	10072
10073	10073
10074	10074
10075	10075
10076	10076
10077	10077	HB4687 - 279 - LRB103 36052 LNS 66139 b
10078	10078
10079	10079
10080	10080	HB4687- 280 -LRB103 36052 LNS 66139 b HB4687 - 280 - LRB103 36052 LNS 66139 b
10081	10081	HB4687 - 280 - LRB103 36052 LNS 66139 b
10082	10082	1 provide for the calculation of transition charges on a
10083	10083	2 customer-specific basis for any retail customer whose average
10084	10084	3 monthly maximum electrical demand on the electric utility's
10085	10085	4 system during the 6 months with the customer's highest monthly
10086	10086	5 maximum electrical demands equals or exceeds 3.0 megawatts for
10087	10087	6 electric utilities having more than 1,000,000 customers, and
10088	10088	7 for other electric utilities for any customer that has an
10089	10089	8 average monthly maximum electrical demand on the electric
10090	10090	9 utility's system of one megawatt or more, and (A) for which
10091	10091	10 there exists data on the customer's usage during the 3 years
10092	10092	11 preceding the date that the customer became eligible to take
10093	10093	12 delivery services, or (B) for which there does not exist data
10094	10094	13 on the customer's usage during the 3 years preceding the date
10095	10095	14 that the customer became eligible to take delivery services,
10096	10096	15 if in the electric utility's reasonable judgment there exists
10097	10097	16 comparable usage information or a sufficient basis to develop
10098	10098	17 such information, and further provided that the electric
10099	10099	18 utility can require customers for which an individual
10100	10100	19 calculation is made to sign contracts that set forth the
10101	10101	20 transition charges to be paid by the customer to the electric
10102	10102	21 utility pursuant to the tariff.
10103	10103	22 (h) An electric utility shall also be entitled to file
10104	10104	23 tariffs that allow it to collect transition charges from
10105	10105	24 retail customers in the electric utility's service area that
10106	10106	25 do not take delivery services but that take electric power or
10107	10107	26 energy from an alternative retail electric supplier or from an
10108	10108
10109	10109
10110	10110
10111	10111
10112	10112
10113	10113	HB4687 - 280 - LRB103 36052 LNS 66139 b
10114	10114
10115	10115
10116	10116	HB4687- 281 -LRB103 36052 LNS 66139 b HB4687 - 281 - LRB103 36052 LNS 66139 b
10117	10117	HB4687 - 281 - LRB103 36052 LNS 66139 b
10118	10118	1 electric utility other than the electric utility in whose
10119	10119	2 service area the customer is located. Such charges shall be
10120	10120	3 calculated, in accordance with the definition of transition
10121	10121	4 charges in Section 16-102, for the period of time that the
10122	10122	5 customer would be obligated to pay transition charges if it
10123	10123	6 were taking delivery services, except that no deduction for
10124	10124	7 delivery services revenues shall be made in such calculation,
10125	10125	8 and usage data from the customer's class shall be used where
10126	10126	9 historical usage data is not available for the individual
10127	10127	10 customer. The customer shall be obligated to pay such charges
10128	10128	11 on a lump sum basis on or before the date on which the customer
10129	10129	12 commences to take service from the alternative retail electric
10130	10130	13 supplier or other electric utility, provided, that the
10131	10131	14 electric utility in whose service area the customer is located
10132	10132	15 shall offer the customer the option of signing a contract
10133	10133	16 pursuant to which the customer pays such charges ratably over
10134	10134	17 the period in which the charges would otherwise have applied.
10135	10135	18 (i) An electric utility shall be entitled to add to the
10136	10136	19 bills of delivery services customers charges pursuant to
10137	10137	20 Sections 9-221, 9-222 (except as provided in Section 9-222.1),
10138	10138	21 and Section 16-114 of this Act, Section 5-5 of the Electricity
10139	10139	22 Infrastructure Maintenance Fee Law, Section 6-5 of the
10140	10140	23 Renewable Energy, Energy Efficiency, and Coal Resources
10141	10141	24 Development Law of 1997, and Section 13 of the Energy
10142	10142	25 Assistance Act.
10143	10143	26 (i-5) (Blank). An electric utility required to impose the
10144	10144
10145	10145
10146	10146
10147	10147
10148	10148
10149	10149	HB4687 - 281 - LRB103 36052 LNS 66139 b
10150	10150
10151	10151
10152	10152	HB4687- 282 -LRB103 36052 LNS 66139 b HB4687 - 282 - LRB103 36052 LNS 66139 b
10153	10153	HB4687 - 282 - LRB103 36052 LNS 66139 b
10154	10154	1 Coal to Solar and Energy Storage Initiative Charge provided
10155	10155	2 for in subsection (c-5) of Section 1-75 of the Illinois Power
10156	10156	3 Agency Act shall add such charge to the bills of its delivery
10157	10157	4 services customers pursuant to the terms of a tariff
10158	10158	5 conforming to the requirements of subsection (c-5) of Section
10159	10159	6 1-75 of the Illinois Power Agency Act and this subsection
10160	10160	7 (i-5) and filed with and approved by the Commission. The
10161	10161	8 electric utility shall file its proposed tariff with the
10162	10162	9 Commission on or before July 1, 2022 to be effective, after
10163	10163	10 review and approval or modification by the Commission,
10164	10164	11 beginning January 1, 2023. On or before December 1, 2022, the
10165	10165	12 Commission shall review the electric utility's proposed
10166	10166	13 tariff, including by conducting a docketed proceeding if
10167	10167	14 deemed necessary by the Commission, and shall approve the
10168	10168	15 proposed tariff or direct the electric utility to make
10169	10169	16 modifications the Commission finds necessary for the tariff to
10170	10170	17 conform to the requirements of subsection (c-5) of Section
10171	10171	18 1-75 of the Illinois Power Agency Act and this subsection
10172	10172	19 (i-5). The electric utility's tariff shall provide for
10173	10173	20 imposition of the Coal to Solar and Energy Storage Initiative
10174	10174	21 Charge on a per-kilowatthour basis to all kilowatthours
10175	10175	22 delivered by the electric utility to its delivery services
10176	10176	23 customers. The tariff shall provide for the calculation of the
10177	10177	24 Coal to Solar and Energy Storage Initiative Charge to be in
10178	10178	25 effect for the year beginning January 1, 2023 and each year
10179	10179	26 beginning January 1 thereafter, sufficient to collect the
10180	10180
10181	10181
10182	10182
10183	10183
10184	10184
10185	10185	HB4687 - 282 - LRB103 36052 LNS 66139 b
10186	10186
10187	10187
10188	10188	HB4687- 283 -LRB103 36052 LNS 66139 b HB4687 - 283 - LRB103 36052 LNS 66139 b
10189	10189	HB4687 - 283 - LRB103 36052 LNS 66139 b
10190	10190	1 electric utility's estimated payment obligations for the
10191	10191	2 delivery year beginning the following June 1 under contracts
10192	10192	3 for purchase of renewable energy credits entered into pursuant
10193	10193	4 to subsection (c-5) of Section 1-75 of the Illinois Power
10194	10194	5 Agency Act and the obligations of the Department of Commerce
10195	10195	6 and Economic Opportunity, or any successor department or
10196	10196	7 agency, which for purposes of this subsection (i-5) shall be
10197	10197	8 referred to as the Department, to make grant payments during
10198	10198	9 such delivery year from the Coal to Solar and Energy Storage
10199	10199	10 Initiative Fund pursuant to grant contracts entered into
10200	10200	11 pursuant to subsection (c-5) of Section 1-75 of the Illinois
10201	10201	12 Power Agency Act, and using the electric utility's
10202	10202	13 kilowatthour deliveries to its delivery services customers
10203	10203	14 during the delivery year ended May 31 of the preceding
10204	10204	15 calendar year. On or before November 1 of each year beginning
10205	10205	16 November 1, 2022, the Department shall notify the electric
10206	10206	17 utilities of the amount of the Department's estimated
10207	10207	18 obligations for grant payments during the delivery year
10208	10208	19 beginning the following June 1 pursuant to grant contracts
10209	10209	20 entered into pursuant to subsection (c-5) of Section 1-75 of
10210	10210	21 the Illinois Power Agency Act; and each electric utility shall
10211	10211	22 incorporate in the calculation of its Coal to Solar and Energy
10212	10212	23 Storage Initiative Charge the fractional portion of the
10213	10213	24 Department's estimated obligations equal to the electric
10214	10214	25 utility's kilowatthour deliveries to its delivery services
10215	10215	26 customers in the delivery year ended the preceding May 31
10216	10216
10217	10217
10218	10218
10219	10219
10220	10220
10221	10221	HB4687 - 283 - LRB103 36052 LNS 66139 b
10222	10222
10223	10223
10224	10224	HB4687- 284 -LRB103 36052 LNS 66139 b HB4687 - 284 - LRB103 36052 LNS 66139 b
10225	10225	HB4687 - 284 - LRB103 36052 LNS 66139 b
10226	10226	1 divided by the aggregate deliveries of both electric utilities
10227	10227	2 to delivery services customers in such delivery year. The
10228	10228	3 electric utility shall remit on a monthly basis to the State
10229	10229	4 Treasurer, for deposit in the Coal to Solar and Energy Storage
10230	10230	5 Initiative Fund provided for in subsection (c-5) of Section
10231	10231	6 1-75 of the Illinois Power Agency Act, the electric utility's
10232	10232	7 collections of the Coal to Solar and Energy Storage Initiative
10233	10233	8 Charge estimated to be needed by the Department for grant
10234	10234	9 payments pursuant to grant contracts entered into pursuant to
10235	10235	10 subsection (c-5) of Section 1-75 of the Illinois Power Agency
10236	10236	11 Act. The initial charge under the electric utility's tariff
10237	10237	12 shall be effective for kilowatthours delivered beginning
10238	10238	13 January 1, 2023, and thereafter shall be revised to be
10239	10239	14 effective January 1, 2024 and each January 1 thereafter, based
10240	10240	15 on the payment obligations for the delivery year beginning the
10241	10241	16 following June 1. The tariff shall provide for the electric
10242	10242	17 utility to make an annual filing with the Commission on or
10243	10243	18 before November 15 of each year, beginning in 2023, setting
10244	10244	19 forth the Coal to Solar and Energy Storage Initiative Charge
10245	10245	20 to be in effect for the year beginning the following January 1.
10246	10246	21 The electric utility's tariff shall also provide that the
10247	10247	22 electric utility shall make a filing with the Commission on or
10248	10248	23 before August 1 of each year beginning in 2024 setting forth a
10249	10249	24 reconciliation, for the delivery year ended the preceding May
10250	10250	25 31, of the electric utility's collections of the Coal to Solar
10251	10251	26 and Energy Storage Initiative Charge against actual payments
10252	10252
10253	10253
10254	10254
10255	10255
10256	10256
10257	10257	HB4687 - 284 - LRB103 36052 LNS 66139 b
10258	10258
10259	10259
10260	10260	HB4687- 285 -LRB103 36052 LNS 66139 b HB4687 - 285 - LRB103 36052 LNS 66139 b
10261	10261	HB4687 - 285 - LRB103 36052 LNS 66139 b
10262	10262	1 for renewable energy credits pursuant to contracts entered
10263	10263	2 into, and the actual grant payments by the Department pursuant
10264	10264	3 to grant contracts entered into, pursuant to subsection (c-5)
10265	10265	4 of Section 1-75 of the Illinois Power Agency Act. The tariff
10266	10266	5 shall provide that any excess or shortfall of collections to
10267	10267	6 payments shall be deducted from or added to, on a
10268	10268	7 per-kilowatthour basis, the Coal to Solar and Energy Storage
10269	10269	8 Initiative Charge, over the 6-month period beginning October 1
10270	10270	9 of that calendar year.
10271	10271	10 (j) If a retail customer that obtains electric power and
10272	10272	11 energy from cogeneration or self-generation facilities
10273	10273	12 installed for its own use on or before January 1, 1997,
10274	10274	13 subsequently takes service from an alternative retail electric
10275	10275	14 supplier or an electric utility other than the electric
10276	10276	15 utility in whose service area the customer is located for any
10277	10277	16 portion of the customer's electric power and energy
10278	10278	17 requirements formerly obtained from those facilities
10279	10279	18 (including that amount purchased from the utility in lieu of
10280	10280	19 such generation and not as standby power purchases, under a
10281	10281	20 cogeneration displacement tariff in effect as of the effective
10282	10282	21 date of this amendatory Act of 1997), the transition charges
10283	10283	22 otherwise applicable pursuant to subsections (f), (g), or (h)
10284	10284	23 of this Section shall not be applicable in any year to that
10285	10285	24 portion of the customer's electric power and energy
10286	10286	25 requirements formerly obtained from those facilities,
10287	10287	26 provided, that for purposes of this subsection (j), such
10288	10288
10289	10289
10290	10290
10291	10291
10292	10292
10293	10293	HB4687 - 285 - LRB103 36052 LNS 66139 b
10294	10294
10295	10295
10296	10296	HB4687- 286 -LRB103 36052 LNS 66139 b HB4687 - 286 - LRB103 36052 LNS 66139 b
10297	10297	HB4687 - 286 - LRB103 36052 LNS 66139 b
10298	10298	1 portion shall not exceed the average number of kilowatt-hours
10299	10299	2 per year obtained from the cogeneration or self-generation
10300	10300	3 facilities during the 3 years prior to the date on which the
10301	10301	4 customer became eligible for delivery services, except as
10302	10302	5 provided in subsection (f) of Section 16-110.
10303	10303	6 (k) The electric utility shall be entitled to recover
10304	10304	7 through tariffed charges all of the costs associated with the
10305	10305	8 purchase of zero emission credits from zero emission
10306	10306	9 facilities to meet the requirements of subsection (d-5) of
10307	10307	10 Section 1-75 of the Illinois Power Agency Act and all of the
10308	10308	11 costs associated with the purchase of carbon mitigation
10309	10309	12 credits from carbon-free energy resources to meet the
10310	10310	13 requirements of subsection (d-10) of Section 1-75 of the
10311	10311	14 Illinois Power Agency Act. Such costs shall include the costs
10312	10312	15 of procuring the zero emission credits and carbon mitigation
10313	10313	16 credits from carbon-free energy resources, as well as the
10314	10314	17 reasonable costs that the utility incurs as part of the
10315	10315	18 procurement processes and to implement and comply with plans
10316	10316	19 and processes approved by the Commission under subsection
10317	10317	20 (d-5) subsections (d-5) and (d-10). The costs shall be
10318	10318	21 allocated across all retail customers through a single,
10319	10319	22 uniform cents per kilowatt-hour charge applicable to all
10320	10320	23 retail customers, which shall appear as a separate line item
10321	10321	24 on each customer's bill. Beginning June 1, 2017, the electric
10322	10322	25 utility shall be entitled to recover through tariffed charges
10323	10323	26 all of the costs associated with the purchase of renewable
10324	10324
10325	10325
10326	10326
10327	10327
10328	10328
10329	10329	HB4687 - 286 - LRB103 36052 LNS 66139 b
10330	10330
10331	10331
10332	10332	HB4687- 287 -LRB103 36052 LNS 66139 b HB4687 - 287 - LRB103 36052 LNS 66139 b
10333	10333	HB4687 - 287 - LRB103 36052 LNS 66139 b
10334	10334	1 energy resources to meet the renewable energy resource
10335	10335	2 standards of subsection (c) of Section 1-75 of the Illinois
10336	10336	3 Power Agency Act, under procurement plans as approved in
10337	10337	4 accordance with that Section and Section 16-111.5 of this Act.
10338	10338	5 Such costs shall include the costs of procuring the renewable
10339	10339	6 energy resources, as well as the reasonable costs that the
10340	10340	7 utility incurs as part of the procurement processes and to
10341	10341	8 implement and comply with plans and processes approved by the
10342	10342	9 Commission under such Sections. The costs associated with the
10343	10343	10 purchase of renewable energy resources shall be allocated
10344	10344	11 across all retail customers in proportion to the amount of
10345	10345	12 renewable energy resources the utility procures for such
10346	10346	13 customers through a single, uniform cents per kilowatt-hour
10347	10347	14 charge applicable to such retail customers, which shall appear
10348	10348	15 as a separate line item on each such customer's bill. The
10349	10349	16 credits, costs, and penalties associated with the self-direct
10350	10350	17 renewable portfolio standard compliance program described in
10351	10351	18 subparagraph (R) of paragraph (1) of subsection (c) of Section
10352	10352	19 1-75 of the Illinois Power Agency Act shall be allocated to
10353	10353	20 approved eligible self-direct customers by the utility in a
10354	10354	21 cents per kilowatt-hour credit, cost, or penalty, which shall
10355	10355	22 appear as a separate line item on each such customer's bill.
10356	10356	23 Notwithstanding whether the Commission has approved the
10357	10357	24 initial long-term renewable resources procurement plan as of
10358	10358	25 June 1, 2017, an electric utility shall place new tariffed
10359	10359	26 charges into effect beginning with the June 2017 monthly
10360	10360
10361	10361
10362	10362
10363	10363
10364	10364
10365	10365	HB4687 - 287 - LRB103 36052 LNS 66139 b
10366	10366
10367	10367
10368	10368	HB4687- 288 -LRB103 36052 LNS 66139 b HB4687 - 288 - LRB103 36052 LNS 66139 b
10369	10369	HB4687 - 288 - LRB103 36052 LNS 66139 b
10370	10370	1 billing period, to the extent practicable, to begin recovering
10371	10371	2 the costs of procuring renewable energy resources, as those
10372	10372	3 charges are calculated under the limitations described in
10373	10373	4 subparagraph (E) of paragraph (1) of subsection (c) of Section
10374	10374	5 1-75 of the Illinois Power Agency Act. Notwithstanding the
10375	10375	6 date on which the utility places such new tariffed charges
10376	10376	7 into effect, the utility shall be permitted to collect the
10377	10377	8 charges under such tariff as if the tariff had been in effect
10378	10378	9 beginning with the first day of the June 2017 monthly billing
10379	10379	10 period. For the delivery years commencing June 1, 2017, June
10380	10380	11 1, 2018, and June 1, 2019, and each delivery year thereafter,
10381	10381	12 the electric utility shall deposit into a separate interest
10382	10382	13 bearing account of a financial institution the monies
10383	10383	14 collected under the tariffed charges. Money collected from
10384	10384	15 customers for the procurement of renewable energy resources in
10385	10385	16 a given delivery year may be spent by the utility for the
10386	10386	17 procurement of renewable resources over any of the following 5
10387	10387	18 delivery years, after which unspent money shall be credited
10388	10388	19 back to retail customers. The electric utility shall spend all
10389	10389	20 money collected in earlier delivery years that has not yet
10390	10390	21 been returned to customers, first, before spending money
10391	10391	22 collected in later delivery years. Any interest earned shall
10392	10392	23 be credited back to retail customers under the reconciliation
10393	10393	24 proceeding provided for in this subsection (k), provided that
10394	10394	25 the electric utility shall first be reimbursed from the
10395	10395	26 interest for the administrative costs that it incurs to
10396	10396
10397	10397
10398	10398
10399	10399
10400	10400
10401	10401	HB4687 - 288 - LRB103 36052 LNS 66139 b
10402	10402
10403	10403
10404	10404	HB4687- 289 -LRB103 36052 LNS 66139 b HB4687 - 289 - LRB103 36052 LNS 66139 b
10405	10405	HB4687 - 289 - LRB103 36052 LNS 66139 b
10406	10406	1 administer and manage the account. Any taxes due on the funds
10407	10407	2 in the account, or interest earned on it, will be paid from the
10408	10408	3 account or, if insufficient monies are available in the
10409	10409	4 account, from the monies collected under the tariffed charges
10410	10410	5 to recover the costs of procuring renewable energy resources.
10411	10411	6 Monies deposited in the account shall be subject to the
10412	10412	7 review, reconciliation, and true-up process described in this
10413	10413	8 subsection (k) that is applicable to the funds collected and
10414	10414	9 costs incurred for the procurement of renewable energy
10415	10415	10 resources.
10416	10416	11 The electric utility shall be entitled to recover all of
10417	10417	12 the costs identified in this subsection (k) through automatic
10418	10418	13 adjustment clause tariffs applicable to all of the utility's
10419	10419	14 retail customers that allow the electric utility to adjust its
10420	10420	15 tariffed charges consistent with this subsection (k). The
10421	10421	16 determination as to whether any excess funds were collected
10422	10422	17 during a given delivery year for the purchase of renewable
10423	10423	18 energy resources, and the crediting of any excess funds back
10424	10424	19 to retail customers, shall not be made until after the close of
10425	10425	20 the delivery year, which will ensure that the maximum amount
10426	10426	21 of funds is available to implement the approved long-term
10427	10427	22 renewable resources procurement plan during a given delivery
10428	10428	23 year. The amount of excess funds eligible to be credited back
10429	10429	24 to retail customers shall be reduced by an amount equal to the
10430	10430	25 payment obligations required by any contracts entered into by
10431	10431	26 an electric utility under contracts described in subsection
10432	10432
10433	10433
10434	10434
10435	10435
10436	10436
10437	10437	HB4687 - 289 - LRB103 36052 LNS 66139 b
10438	10438
10439	10439
10440	10440	HB4687- 290 -LRB103 36052 LNS 66139 b HB4687 - 290 - LRB103 36052 LNS 66139 b
10441	10441	HB4687 - 290 - LRB103 36052 LNS 66139 b
10442	10442	1 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
10443	10443	2 Illinois Power Agency Act, even if such payments have not yet
10444	10444	3 been made and regardless of the delivery year in which those
10445	10445	4 payment obligations were incurred. Notwithstanding anything to
10446	10446	5 the contrary, including in tariffs authorized by this
10447	10447	6 subsection (k) in effect before the effective date of this
10448	10448	7 amendatory Act of the 102nd General Assembly, all unspent
10449	10449	8 funds as of May 31, 2021, excluding any funds credited to
10450	10450	9 customers during any utility billing cycle that commences
10451	10451	10 prior to the effective date of this amendatory Act of the 102nd
10452	10452	11 General Assembly, shall remain in the utility account and
10453	10453	12 shall on a first in, first out basis be used toward utility
10454	10454	13 payment obligations under contracts described in subsection
10455	10455	14 (b) of Section 1-56 and subsection (c) of Section 1-75 of the
10456	10456	15 Illinois Power Agency Act. The electric utility's collections
10457	10457	16 under such automatic adjustment clause tariffs to recover the
10458	10458	17 costs of renewable energy resources, and zero emission credits
10459	10459	18 from zero emission facilities, and carbon mitigation credits
10460	10460	19 from carbon-free energy resources shall be subject to separate
10461	10461	20 annual review, reconciliation, and true-up against actual
10462	10462	21 costs by the Commission under a procedure that shall be
10463	10463	22 specified in the electric utility's automatic adjustment
10464	10464	23 clause tariffs and that shall be approved by the Commission in
10465	10465	24 connection with its approval of such tariffs. The procedure
10466	10466	25 shall provide that any difference between the electric
10467	10467	26 utility's collections for zero emission credits and carbon
10468	10468
10469	10469
10470	10470
10471	10471
10472	10472
10473	10473	HB4687 - 290 - LRB103 36052 LNS 66139 b
10474	10474
10475	10475
10476	10476	HB4687- 291 -LRB103 36052 LNS 66139 b HB4687 - 291 - LRB103 36052 LNS 66139 b
10477	10477	HB4687 - 291 - LRB103 36052 LNS 66139 b
10478	10478	1 mitigation credits under the automatic adjustment charges for
10479	10479	2 an annual period and the electric utility's actual costs of
10480	10480	3 renewable energy resources and zero emission credits from zero
10481	10481	4 emission facilities and carbon mitigation credits from
10482	10482	5 carbon-free energy resources for that same annual period shall
10483	10483	6 be refunded to or collected from, as applicable, the electric
10484	10484	7 utility's retail customers in subsequent periods.
10485	10485	8 Nothing in this subsection (k) is intended to affect,
10486	10486	9 limit, or change the right of the electric utility to recover
10487	10487	10 the costs associated with the procurement of renewable energy
10488	10488	11 resources for periods commencing before, on, or after June 1,
10489	10489	12 2017, as otherwise provided in the Illinois Power Agency Act.
10490	10490	13 The funding available under this subsection (k), if any,
10491	10491	14 for the programs described under subsection (b) of Section
10492	10492	15 1-56 of the Illinois Power Agency Act shall not reduce the
10493	10493	16 amount of funding for the programs described in subparagraph
10494	10494	17 (O) of paragraph (1) of subsection (c) of Section 1-75 of the
10495	10495	18 Illinois Power Agency Act. If funding is available under this
10496	10496	19 subsection (k) for programs described under subsection (b) of
10497	10497	20 Section 1-56 of the Illinois Power Agency Act, then the
10498	10498	21 long-term renewable resources plan shall provide for the
10499	10499	22 Agency to procure contracts in an amount that does not exceed
10500	10500	23 the funding, and the contracts approved by the Commission
10501	10501	24 shall be executed by the applicable utility or utilities.
10502	10502	25 (l) A utility that has terminated any contract executed
10503	10503	26 under subsection (d-5) or (d-10) of Section 1-75 of the
10504	10504
10505	10505
10506	10506
10507	10507
10508	10508
10509	10509	HB4687 - 291 - LRB103 36052 LNS 66139 b
10510	10510
10511	10511
10512	10512	HB4687- 292 -LRB103 36052 LNS 66139 b HB4687 - 292 - LRB103 36052 LNS 66139 b
10513	10513	HB4687 - 292 - LRB103 36052 LNS 66139 b
10514	10514	1 Illinois Power Agency Act shall be entitled to recover any
10515	10515	2 remaining balance associated with the purchase of zero
10516	10516	3 emission credits prior to such termination, and such utility
10517	10517	4 shall also apply a credit to its retail customer bills in the
10518	10518	5 event of any over-collection.
10519	10519	6 (m)(1) An electric utility that recovers its costs of
10520	10520	7 procuring zero emission credits from zero emission facilities
10521	10521	8 through a cents-per-kilowatt-hour kilowatthour charge under
10522	10522	9 subsection (k) of this Section shall be subject to the
10523	10523	10 requirements of this subsection (m). Notwithstanding anything
10524	10524	11 to the contrary, such electric utility shall, beginning on
10525	10525	12 April 30, 2018, and each April 30 thereafter until April 30,
10526	10526	13 2026, calculate whether any reduction must be applied to such
10527	10527	14 cents-per-kilowatt-hour kilowatthour charge that is paid by
10528	10528	15 retail customers of the electric utility that are exempt from
10529	10529	16 have opted out of subsections (a) through (j) of Section
10530	10530	17 8-103B of this Act under subsection (l) of Section 8-103B.
10531	10531	18 Such charge shall be reduced for such customers for the next
10532	10532	19 delivery year commencing on June 1 based on the amount
10533	10533	20 necessary, if any, to limit the annual estimated average net
10534	10534	21 increase for the prior calendar year due to the future energy
10535	10535	22 investment costs to no more than 1.3% of 5.98 cents per
10536	10536	23 kilowatt-hour, which is the average amount paid per kilowatt
10537	10537	24 hour kilowatthour for electric service during the year ending
10538	10538	25 December 31, 2015 by Illinois industrial retail customers, as
10539	10539	26 reported to the Edison Electric Institute.
10540	10540
10541	10541
10542	10542
10543	10543
10544	10544
10545	10545	HB4687 - 292 - LRB103 36052 LNS 66139 b
10546	10546
10547	10547
10548	10548	HB4687- 293 -LRB103 36052 LNS 66139 b HB4687 - 293 - LRB103 36052 LNS 66139 b
10549	10549	HB4687 - 293 - LRB103 36052 LNS 66139 b
10550	10550	1 The calculations required by this subsection (m) shall be
10551	10551	2 made only once for each year, and no subsequent rate impact
10552	10552	3 determinations shall be made.
10553	10553	4 (2) For purposes of this Section, "future energy
10554	10554	5 investment costs" shall be calculated by subtracting the
10555	10555	6 cents-per-kilowatt-hour kilowatthour charge identified in
10556	10556	7 subparagraph (A) of this paragraph (2) from the sum of the
10557	10557	8 cents-per-kilowatt-hour kilowatthour charges identified in
10558	10558	9 subparagraph (B) of this paragraph (2):
10559	10559	10 (A) The cents-per-kilowatt-hour kilowatthour charge
10560	10560	11 identified in the electric utility's tariff placed into
10561	10561	12 effect under Section 8-103 of the Public Utilities Act
10562	10562	13 that, on December 1, 2016, was applicable to those retail
10563	10563	14 customers that are exempt from have opted out of
10564	10564	15 subsections (a) through (j) of Section 8-103B of this Act
10565	10565	16 under subsection (l) of Section 8-103B.
10566	10566	17 (B) The sum of the following cents-per-kilowatt-hour
10567	10567	18 kilowatthour charges applicable to those retail customers
10568	10568	19 that are exempt from have opted out of subsections (a)
10569	10569	20 through (j) of Section 8-103B of this Act under subsection
10570	10570	21 (l) of Section 8-103B, provided that if one or more of the
10571	10571	22 following charges has been in effect and applied to such
10572	10572	23 customers for more than one calendar year, then each
10573	10573	24 charge shall be equal to the average of the charges
10574	10574	25 applied over a period that commences with the calendar
10575	10575	26 year ending December 31, 2017 and ends with the most
10576	10576
10577	10577
10578	10578
10579	10579
10580	10580
10581	10581	HB4687 - 293 - LRB103 36052 LNS 66139 b
10582	10582
10583	10583
10584	10584	HB4687- 294 -LRB103 36052 LNS 66139 b HB4687 - 294 - LRB103 36052 LNS 66139 b
10585	10585	HB4687 - 294 - LRB103 36052 LNS 66139 b
10586	10586	1 recently completed calendar year prior to the calculation
10587	10587	2 required by this subsection (m):
10588	10588	3 (i) the cents-per-kilowatt-hour kilowatthour
10589	10589	4 charge to recover the costs incurred by the utility
10590	10590	5 under subsection (d-5) of Section 1-75 of the Illinois
10591	10591	6 Power Agency Act, adjusted for any reductions required
10592	10592	7 under this subsection (m); and
10593	10593	8 (ii) the cents-per-kilowatt-hour kilowatthour
10594	10594	9 charge to recover the costs incurred by the utility
10595	10595	10 under Section 16-107.6 of the Public Utilities Act.
10596	10596	11 If no charge was applied for a given calendar year
10597	10597	12 under item (i) or (ii) of this subparagraph (B), then the
10598	10598	13 value of the charge for that year shall be zero.
10599	10599	14 (3) If a reduction is required by the calculation
10600	10600	15 performed under this subsection (m), then the amount of the
10601	10601	16 reduction shall be multiplied by the number of years reflected
10602	10602	17 in the averages calculated under subparagraph (B) of paragraph
10603	10603	18 (2) of this subsection (m). Such reduction shall be applied to
10604	10604	19 the cents-per-kilowatt-hour kilowatthour charge that is
10605	10605	20 applicable to those retail customers that are exempt from have
10606	10606	21 opted out of subsections (a) through (j) of Section 8-103B of
10607	10607	22 this Act under subsection (l) of Section 8-103B beginning with
10608	10608	23 the next delivery year commencing after the date of the
10609	10609	24 calculation required by this subsection (m).
10610	10610	25 (4) The electric utility shall file a notice with the
10611	10611	26 Commission on May 1 of 2018 and each May 1 thereafter until May
10612	10612
10613	10613
10614	10614
10615	10615
10616	10616
10617	10617	HB4687 - 294 - LRB103 36052 LNS 66139 b
10618	10618
10619	10619
10620	10620	HB4687- 295 -LRB103 36052 LNS 66139 b HB4687 - 295 - LRB103 36052 LNS 66139 b
10621	10621	HB4687 - 295 - LRB103 36052 LNS 66139 b
10622	10622	1 1, 2026 containing the reduction, if any, which must be
10623	10623	2 applied for the delivery year which begins in the year of the
10624	10624	3 filing. The notice shall contain the calculations made
10625	10625	4 pursuant to this Section. By October 1 of each year beginning
10626	10626	5 in 2018, each electric utility shall notify the Commission if
10627	10627	6 it appears, based on an estimate of the calculation required
10628	10628	7 in this subsection (m), that a reduction will be required in
10629	10629	8 the next year.
10630	10630	9 (Source: P.A. 102-662, eff. 9-15-21.)
10631	10631	10 (220 ILCS 5/16-111.5)
10632	10632	11 Sec. 16-111.5. Provisions relating to procurement.
10633	10633	12 (a) An electric utility that on December 31, 2005 served
10634	10634	13 at least 100,000 customers in Illinois shall procure power and
10635	10635	14 energy for its eligible retail customers in accordance with
10636	10636	15 the applicable provisions set forth in Section 1-75 of the
10637	10637	16 Illinois Power Agency Act and this Section. Beginning with the
10638	10638	17 delivery year commencing on June 1, 2017, such electric
10639	10639	18 utility shall also procure zero emission credits from zero
10640	10640	19 emission facilities in accordance with the applicable
10641	10641	20 provisions set forth in Section 1-75 of the Illinois Power
10642	10642	21 Agency Act, and, for years beginning on or after June 1, 2017,
10643	10643	22 the utility shall procure renewable energy resources in
10644	10644	23 accordance with the applicable provisions set forth in Section
10645	10645	24 1-75 of the Illinois Power Agency Act and this Section.
10646	10646	25 Beginning with the delivery year commencing on June 1, 2022,
10647	10647
10648	10648
10649	10649
10650	10650
10651	10651
10652	10652	HB4687 - 295 - LRB103 36052 LNS 66139 b
10653	10653
10654	10654
10655	10655	HB4687- 296 -LRB103 36052 LNS 66139 b HB4687 - 296 - LRB103 36052 LNS 66139 b
10656	10656	HB4687 - 296 - LRB103 36052 LNS 66139 b
10657	10657	1 an electric utility serving over 3,000,000 customers shall
10658	10658	2 also procure carbon mitigation credits from carbon-free energy
10659	10659	3 resources in accordance with the applicable provisions set
10660	10660	4 forth in Section 1-75 of the Illinois Power Agency Act and this
10661	10661	5 Section. A small multi-jurisdictional electric utility that on
10662	10662	6 December 31, 2005 served less than 100,000 customers in
10663	10663	7 Illinois may elect to procure power and energy for all or a
10664	10664	8 portion of its eligible Illinois retail customers in
10665	10665	9 accordance with the applicable provisions set forth in this
10666	10666	10 Section and Section 1-75 of the Illinois Power Agency Act.
10667	10667	11 This Section shall not apply to a small multi-jurisdictional
10668	10668	12 utility until such time as a small multi-jurisdictional
10669	10669	13 utility requests the Illinois Power Agency to prepare a
10670	10670	14 procurement plan for its eligible retail customers. "Eligible
10671	10671	15 retail customers" for the purposes of this Section means those
10672	10672	16 retail customers that purchase power and energy from the
10673	10673	17 electric utility under fixed-price bundled service tariffs,
10674	10674	18 other than those retail customers whose service is declared or
10675	10675	19 deemed competitive under Section 16-113 and those other
10676	10676	20 customer groups specified in this Section, including
10677	10677	21 self-generating customers, customers electing hourly pricing,
10678	10678	22 or those customers who are otherwise ineligible for
10679	10679	23 fixed-price bundled tariff service. For those customers that
10680	10680	24 are excluded from the procurement plan's electric supply
10681	10681	25 service requirements, and the utility shall procure any supply
10682	10682	26 requirements, including capacity, ancillary services, and
10683	10683
10684	10684
10685	10685
10686	10686
10687	10687
10688	10688	HB4687 - 296 - LRB103 36052 LNS 66139 b
10689	10689
10690	10690
10691	10691	HB4687- 297 -LRB103 36052 LNS 66139 b HB4687 - 297 - LRB103 36052 LNS 66139 b
10692	10692	HB4687 - 297 - LRB103 36052 LNS 66139 b
10693	10693	1 hourly priced energy, in the applicable markets as needed to
10694	10694	2 serve those customers, provided that the utility may include
10695	10695	3 in its procurement plan load requirements for the load that is
10696	10696	4 associated with those retail customers whose service has been
10697	10697	5 declared or deemed competitive pursuant to Section 16-113 of
10698	10698	6 this Act to the extent that those customers are purchasing
10699	10699	7 power and energy during one of the transition periods
10700	10700	8 identified in subsection (b) of Section 16-113 of this Act.
10701	10701	9 (b) A procurement plan shall be prepared for each electric
10702	10702	10 utility consistent with the applicable requirements of the
10703	10703	11 Illinois Power Agency Act and this Section. For purposes of
10704	10704	12 this Section, Illinois electric utilities that are affiliated
10705	10705	13 by virtue of a common parent company are considered to be a
10706	10706	14 single electric utility. Small multi-jurisdictional utilities
10707	10707	15 may request a procurement plan for a portion of or all of its
10708	10708	16 Illinois load. Each procurement plan shall analyze the
10709	10709	17 projected balance of supply and demand for those retail
10710	10710	18 customers to be included in the plan's electric supply service
10711	10711	19 requirements over a 5-year period, with the first planning
10712	10712	20 year beginning on June 1 of the year following the year in
10713	10713	21 which the plan is filed. The plan shall specifically identify
10714	10714	22 the wholesale products to be procured following plan approval,
10715	10715	23 and shall follow all the requirements set forth in the Public
10716	10716	24 Utilities Act and all applicable State and federal laws,
10717	10717	25 statutes, rules, or regulations, as well as Commission orders.
10718	10718	26 Nothing in this Section precludes consideration of contracts
10719	10719
10720	10720
10721	10721
10722	10722
10723	10723
10724	10724	HB4687 - 297 - LRB103 36052 LNS 66139 b
10725	10725
10726	10726
10727	10727	HB4687- 298 -LRB103 36052 LNS 66139 b HB4687 - 298 - LRB103 36052 LNS 66139 b
10728	10728	HB4687 - 298 - LRB103 36052 LNS 66139 b
10729	10729	1 longer than 5 years and related forecast data. Unless
10730	10730	2 specified otherwise in this Section, in the procurement plan
10731	10731	3 or in the implementing tariff, any procurement occurring in
10732	10732	4 accordance with this plan shall be competitively bid through a
10733	10733	5 request for proposals process. Approval and implementation of
10734	10734	6 the procurement plan shall be subject to review and approval
10735	10735	7 by the Commission according to the provisions set forth in
10736	10736	8 this Section. A procurement plan shall include each of the
10737	10737	9 following components:
10738	10738	10 (1) Hourly load analysis. This analysis shall include:
10739	10739	11 (i) multi-year historical analysis of hourly
10740	10740	12 loads;
10741	10741	13 (ii) switching trends and competitive retail
10742	10742	14 market analysis;
10743	10743	15 (iii) known or projected changes to future loads;
10744	10744	16 and
10745	10745	17 (iv) growth forecasts by customer class.
10746	10746	18 (2) Analysis of the impact of any demand side and
10747	10747	19 renewable energy initiatives. This analysis shall include:
10748	10748	20 (i) the impact of demand response programs and
10749	10749	21 energy efficiency programs, both current and
10750	10750	22 projected; for small multi-jurisdictional utilities,
10751	10751	23 the impact of demand response and energy efficiency
10752	10752	24 programs approved pursuant to Section 8-408 of this
10753	10753	25 Act, both current and projected; and
10754	10754	26 (ii) supply side needs that are projected to be
10755	10755
10756	10756
10757	10757
10758	10758
10759	10759
10760	10760	HB4687 - 298 - LRB103 36052 LNS 66139 b
10761	10761
10762	10762
10763	10763	HB4687- 299 -LRB103 36052 LNS 66139 b HB4687 - 299 - LRB103 36052 LNS 66139 b
10764	10764	HB4687 - 299 - LRB103 36052 LNS 66139 b
10765	10765	1 offset by purchases of renewable energy resources, if
10766	10766	2 any.
10767	10767	3 (3) A plan for meeting the expected load requirements
10768	10768	4 that will not be met through preexisting contracts. This
10769	10769	5 plan shall include:
10770	10770	6 (i) definitions of the different Illinois retail
10771	10771	7 customer classes for which supply is being purchased;
10772	10772	8 (ii) the proposed mix of demand-response products
10773	10773	9 for which contracts will be executed during the next
10774	10774	10 year. For small multi-jurisdictional electric
10775	10775	11 utilities that on December 31, 2005 served fewer than
10776	10776	12 100,000 customers in Illinois, these shall be defined
10777	10777	13 as demand-response products offered in an energy
10778	10778	14 efficiency plan approved pursuant to Section 8-408 of
10779	10779	15 this Act. The cost-effective demand-response measures
10780	10780	16 shall be procured whenever the cost is lower than
10781	10781	17 procuring comparable capacity products, provided that
10782	10782	18 such products shall:
10783	10783	19 (A) be procured by a demand-response provider
10784	10784	20 from those retail customers included in the plan's
10785	10785	21 electric supply service requirements;
10786	10786	22 (B) at least satisfy the demand-response
10787	10787	23 requirements of the regional transmission
10788	10788	24 organization market in which the utility's service
10789	10789	25 territory is located, including, but not limited
10790	10790	26 to, any applicable capacity or dispatch
10791	10791
10792	10792
10793	10793
10794	10794
10795	10795
10796	10796	HB4687 - 299 - LRB103 36052 LNS 66139 b
10797	10797
10798	10798
10799	10799	HB4687- 300 -LRB103 36052 LNS 66139 b HB4687 - 300 - LRB103 36052 LNS 66139 b
10800	10800	HB4687 - 300 - LRB103 36052 LNS 66139 b
10801	10801	1 requirements;
10802	10802	2 (C) provide for customers' participation in
10803	10803	3 the stream of benefits produced by the
10804	10804	4 demand-response products;
10805	10805	5 (D) provide for reimbursement by the
10806	10806	6 demand-response provider of the utility for any
10807	10807	7 costs incurred as a result of the failure of the
10808	10808	8 supplier of such products to perform its
10809	10809	9 obligations thereunder; and
10810	10810	10 (E) meet the same credit requirements as apply
10811	10811	11 to suppliers of capacity, in the applicable
10812	10812	12 regional transmission organization market;
10813	10813	13 (iii) monthly forecasted system supply
10814	10814	14 requirements, including expected minimum, maximum, and
10815	10815	15 average values for the planning period;
10816	10816	16 (iv) the proposed mix and selection of standard
10817	10817	17 wholesale products for which contracts will be
10818	10818	18 executed during the next year, separately or in
10819	10819	19 combination, to meet that portion of its load
10820	10820	20 requirements not met through pre-existing contracts,
10821	10821	21 including but not limited to monthly 5 x 16 peak period
10822	10822	22 block energy, monthly off-peak wrap energy, monthly 7
10823	10823	23 x 24 energy, annual 5 x 16 energy, other standardized
10824	10824	24 energy or capacity products designed to provide
10825	10825	25 eligible retail customer benefits from commercially
10826	10826	26 deployed advanced technologies including but not
10827	10827
10828	10828
10829	10829
10830	10830
10831	10831
10832	10832	HB4687 - 300 - LRB103 36052 LNS 66139 b
10833	10833
10834	10834
10835	10835	HB4687- 301 -LRB103 36052 LNS 66139 b HB4687 - 301 - LRB103 36052 LNS 66139 b
10836	10836	HB4687 - 301 - LRB103 36052 LNS 66139 b
10837	10837	1 limited to high voltage direct current converter
10838	10838	2 stations, as such term is defined in Section 1-10 of
10839	10839	3 the Illinois Power Agency Act, whether or not such
10840	10840	4 product is currently available in wholesale markets,
10841	10841	5 annual off-peak wrap energy, annual 7 x 24 energy,
10842	10842	6 monthly capacity, annual capacity, peak load capacity
10843	10843	7 obligations, capacity purchase plan, and ancillary
10844	10844	8 services;
10845	10845	9 (v) proposed term structures for each wholesale
10846	10846	10 product type included in the proposed procurement plan
10847	10847	11 portfolio of products; and
10848	10848	12 (vi) an assessment of the price risk, load
10849	10849	13 uncertainty, and other factors that are associated
10850	10850	14 with the proposed procurement plan; this assessment,
10851	10851	15 to the extent possible, shall include an analysis of
10852	10852	16 the following factors: contract terms, time frames for
10853	10853	17 securing products or services, fuel costs, weather
10854	10854	18 patterns, transmission costs, market conditions, and
10855	10855	19 the governmental regulatory environment; the proposed
10856	10856	20 procurement plan shall also identify alternatives for
10857	10857	21 those portfolio measures that are identified as having
10858	10858	22 significant price risk and mitigation in the form of
10859	10859	23 additional retail customer and ratepayer price,
10860	10860	24 reliability, and environmental benefits from
10861	10861	25 standardized energy products delivered from
10862	10862	26 commercially deployed advanced technologies,
10863	10863
10864	10864
10865	10865
10866	10866
10867	10867
10868	10868	HB4687 - 301 - LRB103 36052 LNS 66139 b
10869	10869
10870	10870
10871	10871	HB4687- 302 -LRB103 36052 LNS 66139 b HB4687 - 302 - LRB103 36052 LNS 66139 b
10872	10872	HB4687 - 302 - LRB103 36052 LNS 66139 b
10873	10873	1 including, but not limited to, high voltage direct
10874	10874	2 current converter stations, as such term is defined in
10875	10875	3 Section 1-10 of the Illinois Power Agency Act, whether
10876	10876	4 or not such product is currently available in
10877	10877	5 wholesale markets.
10878	10878	6 (4) Proposed procedures for balancing loads. The
10879	10879	7 procurement plan shall include, for load requirements
10880	10880	8 included in the procurement plan, the process for (i)
10881	10881	9 hourly balancing of supply and demand and (ii) the
10882	10882	10 criteria for portfolio re-balancing in the event of
10883	10883	11 significant shifts in load.
10884	10884	12 (5) Long-Term Renewable Resources Procurement Plan.
10885	10885	13 The Agency shall prepare a long-term renewable resources
10886	10886	14 procurement plan for the procurement of renewable energy
10887	10887	15 credits under Sections 1-56 and 1-75 of the Illinois Power
10888	10888	16 Agency Act for delivery beginning in the 2017 delivery
10889	10889	17 year.
10890	10890	18 (i) The initial long-term renewable resources
10891	10891	19 procurement plan and all subsequent revisions shall be
10892	10892	20 subject to review and approval by the Commission. For
10893	10893	21 the purposes of this Section, "delivery year" has the
10894	10894	22 same meaning as in Section 1-10 of the Illinois Power
10895	10895	23 Agency Act. For purposes of this Section, "Agency"
10896	10896	24 shall mean the Illinois Power Agency.
10897	10897	25 (ii) The long-term renewable resources planning
10898	10898	26 process shall be conducted as follows:
10899	10899
10900	10900
10901	10901
10902	10902
10903	10903
10904	10904	HB4687 - 302 - LRB103 36052 LNS 66139 b
10905	10905
10906	10906
10907	10907	HB4687- 303 -LRB103 36052 LNS 66139 b HB4687 - 303 - LRB103 36052 LNS 66139 b
10908	10908	HB4687 - 303 - LRB103 36052 LNS 66139 b
10909	10909	1 (A) Electric utilities shall provide a range
10910	10910	2 of load forecasts to the Illinois Power Agency
10911	10911	3 within 45 days of the Agency's request for
10912	10912	4 forecasts, which request shall specify the length
10913	10913	5 and conditions for the forecasts including, but
10914	10914	6 not limited to, the quantity of distributed
10915	10915	7 generation expected to be interconnected for each
10916	10916	8 year.
10917	10917	9 (B) The Agency shall publish for comment the
10918	10918	10 initial long-term renewable resources procurement
10919	10919	11 plan no later than 120 days after the effective
10920	10920	12 date of this amendatory Act of the 99th General
10921	10921	13 Assembly and shall review, and may revise, the
10922	10922	14 plan at least every 2 years thereafter. To the
10923	10923	15 extent practicable, the Agency shall review and
10924	10924	16 propose any revisions to the long-term renewable
10925	10925	17 energy resources procurement plan in conjunction
10926	10926	18 with the Agency's other planning and approval
10927	10927	19 processes conducted under this Section. The
10928	10928	20 initial long-term renewable resources procurement
10929	10929	21 plan shall:
10930	10930	22 (aa) Identify the procurement programs and
10931	10931	23 competitive procurement events consistent with
10932	10932	24 the applicable requirements of the Illinois
10933	10933	25 Power Agency Act and shall be designed to
10934	10934	26 achieve the goals set forth in subsection (c)
10935	10935
10936	10936
10937	10937
10938	10938
10939	10939
10940	10940	HB4687 - 303 - LRB103 36052 LNS 66139 b
10941	10941
10942	10942
10943	10943	HB4687- 304 -LRB103 36052 LNS 66139 b HB4687 - 304 - LRB103 36052 LNS 66139 b
10944	10944	HB4687 - 304 - LRB103 36052 LNS 66139 b
10945	10945	1 of Section 1-75 of that Act.
10946	10946	2 (bb) Include a schedule for procurements
10947	10947	3 for renewable energy credits from
10948	10948	4 utility-scale wind projects, utility-scale
10949	10949	5 solar projects, and brownfield site
10950	10950	6 photovoltaic projects consistent with
10951	10951	7 subparagraph (G) of paragraph (1) of
10952	10952	8 subsection (c) of Section 1-75 of the Illinois
10953	10953	9 Power Agency Act.
10954	10954	10 (cc) Identify the process whereby the
10955	10955	11 Agency will submit to the Commission for
10956	10956	12 review and approval the proposed contracts to
10957	10957	13 implement the programs required by such plan.
10958	10958	14 Copies of the initial long-term renewable
10959	10959	15 resources procurement plan and all subsequent
10960	10960	16 revisions shall be posted and made publicly
10961	10961	17 available on the Agency's and Commission's
10962	10962	18 websites, and copies shall also be provided to
10963	10963	19 each affected electric utility. An affected
10964	10964	20 utility and other interested parties shall have 45
10965	10965	21 days following the date of posting to provide
10966	10966	22 comment to the Agency on the initial long-term
10967	10967	23 renewable resources procurement plan and all
10968	10968	24 subsequent revisions. All comments submitted to
10969	10969	25 the Agency shall be specific, supported by data or
10970	10970	26 other detailed analyses, and, if objecting to all
10971	10971
10972	10972
10973	10973
10974	10974
10975	10975
10976	10976	HB4687 - 304 - LRB103 36052 LNS 66139 b
10977	10977
10978	10978
10979	10979	HB4687- 305 -LRB103 36052 LNS 66139 b HB4687 - 305 - LRB103 36052 LNS 66139 b
10980	10980	HB4687 - 305 - LRB103 36052 LNS 66139 b
10981	10981	1 or a portion of the procurement plan, accompanied
10982	10982	2 by specific alternative wording or proposals. All
10983	10983	3 comments shall be posted on the Agency's and
10984	10984	4 Commission's websites. During this 45-day comment
10985	10985	5 period, the Agency shall hold at least one public
10986	10986	6 hearing within each utility's service area that is
10987	10987	7 subject to the requirements of this paragraph (5)
10988	10988	8 for the purpose of receiving public comment.
10989	10989	9 Within 21 days following the end of the 45-day
10990	10990	10 review period, the Agency may revise the long-term
10991	10991	11 renewable resources procurement plan based on the
10992	10992	12 comments received and shall file the plan with the
10993	10993	13 Commission for review and approval.
10994	10994	14 (C) Within 14 days after the filing of the
10995	10995	15 initial long-term renewable resources procurement
10996	10996	16 plan or any subsequent revisions, any person
10997	10997	17 objecting to the plan may file an objection with
10998	10998	18 the Commission. Within 21 days after the filing of
10999	10999	19 the plan, the Commission shall determine whether a
11000	11000	20 hearing is necessary. The Commission shall enter
11001	11001	21 its order confirming or modifying the initial
11002	11002	22 long-term renewable resources procurement plan or
11003	11003	23 any subsequent revisions within 120 days after the
11004	11004	24 filing of the plan by the Illinois Power Agency.
11005	11005	25 (D) The Commission shall approve the initial
11006	11006	26 long-term renewable resources procurement plan and
11007	11007
11008	11008
11009	11009
11010	11010
11011	11011
11012	11012	HB4687 - 305 - LRB103 36052 LNS 66139 b
11013	11013
11014	11014
11015	11015	HB4687- 306 -LRB103 36052 LNS 66139 b HB4687 - 306 - LRB103 36052 LNS 66139 b
11016	11016	HB4687 - 306 - LRB103 36052 LNS 66139 b
11017	11017	1 any subsequent revisions, including expressly the
11018	11018	2 forecast used in the plan and taking into account
11019	11019	3 that funding will be limited to the amount of
11020	11020	4 revenues actually collected by the utilities, if
11021	11021	5 the Commission determines that the plan will
11022	11022	6 reasonably and prudently accomplish the
11023	11023	7 requirements of Section 1-56 and subsection (c) of
11024	11024	8 Section 1-75 of the Illinois Power Agency Act. The
11025	11025	9 Commission shall also approve the process for the
11026	11026	10 submission, review, and approval of the proposed
11027	11027	11 contracts to procure renewable energy credits or
11028	11028	12 implement the programs authorized by the
11029	11029	13 Commission pursuant to a long-term renewable
11030	11030	14 resources procurement plan approved under this
11031	11031	15 Section.
11032	11032	16 In approving any long-term renewable resources
11033	11033	17 procurement plan after the effective date of this
11034	11034	18 amendatory Act of the 102nd General Assembly, the
11035	11035	19 Commission shall approve or modify the Agency's
11036	11036	20 proposal for minimum equity standards pursuant to
11037	11037	21 subsection (c-10) of Section 1-75 of the Illinois
11038	11038	22 Power Agency Act. The Commission shall consider
11039	11039	23 any analysis performed by the Agency in developing
11040	11040	24 its proposal, including past performance,
11041	11041	25 availability of equity eligible contractors, and
11042	11042	26 availability of equity eligible persons at the
11043	11043
11044	11044
11045	11045
11046	11046
11047	11047
11048	11048	HB4687 - 306 - LRB103 36052 LNS 66139 b
11049	11049
11050	11050
11051	11051	HB4687- 307 -LRB103 36052 LNS 66139 b HB4687 - 307 - LRB103 36052 LNS 66139 b
11052	11052	HB4687 - 307 - LRB103 36052 LNS 66139 b
11053	11053	1 time the long-term renewable resources procurement
11054	11054	2 plan is approved.
11055	11055	3 (iii) The Agency or third parties contracted by
11056	11056	4 the Agency shall implement all programs authorized by
11057	11057	5 the Commission in an approved long-term renewable
11058	11058	6 resources procurement plan without further review and
11059	11059	7 approval by the Commission. Third parties shall not
11060	11060	8 begin implementing any programs or receive any payment
11061	11061	9 under this Section until the Commission has approved
11062	11062	10 the contract or contracts under the process authorized
11063	11063	11 by the Commission in item (D) of subparagraph (ii) of
11064	11064	12 paragraph (5) of this subsection (b) and the third
11065	11065	13 party and the Agency or utility, as applicable, have
11066	11066	14 executed the contract. For those renewable energy
11067	11067	15 credits subject to procurement through a competitive
11068	11068	16 bid process under the plan or under the initial
11069	11069	17 forward procurements for wind and solar resources
11070	11070	18 described in subparagraph (G) of paragraph (1) of
11071	11071	19 subsection (c) of Section 1-75 of the Illinois Power
11072	11072	20 Agency Act, the Agency shall follow the procurement
11073	11073	21 process specified in the provisions relating to
11074	11074	22 electricity procurement in subsections (e) through (i)
11075	11075	23 of this Section.
11076	11076	24 (iv) An electric utility shall recover its costs
11077	11077	25 associated with the procurement of renewable energy
11078	11078	26 credits under this Section and pursuant to subsection
11079	11079
11080	11080
11081	11081
11082	11082
11083	11083
11084	11084	HB4687 - 307 - LRB103 36052 LNS 66139 b
11085	11085
11086	11086
11087	11087	HB4687- 308 -LRB103 36052 LNS 66139 b HB4687 - 308 - LRB103 36052 LNS 66139 b
11088	11088	HB4687 - 308 - LRB103 36052 LNS 66139 b
11089	11089	1 (c-5) of Section 1-75 of the Illinois Power Agency Act
11090	11090	2 through an automatic adjustment clause tariff under
11091	11091	3 subsection (k) or a tariff pursuant to subsection
11092	11092	4 (i-5), as applicable, of Section 16-108 of this Act. A
11093	11093	5 utility shall not be required to advance any payment
11094	11094	6 or pay any amounts under this Section that exceed the
11095	11095	7 actual amount of revenues collected by the utility
11096	11096	8 under paragraph (6) of subsection (c) of Section 1-75
11097	11097	9 of the Illinois Power Agency Act, subsection (c-5) of
11098	11098	10 Section 1-75 of the Illinois Power Agency Act, and
11099	11099	11 subsection (k) or subsection (i-5), as applicable, of
11100	11100	12 Section 16-108 of this Act, and contracts executed
11101	11101	13 under this Section shall expressly incorporate this
11102	11102	14 limitation.
11103	11103	15 (v) For the public interest, safety, and welfare,
11104	11104	16 the Agency and the Commission may adopt rules to carry
11105	11105	17 out the provisions of this Section on an emergency
11106	11106	18 basis immediately following the effective date of this
11107	11107	19 amendatory Act of the 99th General Assembly.
11108	11108	20 (vi) On or before July 1 of each year, the
11109	11109	21 Commission shall hold an informal hearing for the
11110	11110	22 purpose of receiving comments on the prior year's
11111	11111	23 procurement process and any recommendations for
11112	11112	24 change.
11113	11113	25 (b-5) (Blank). An electric utility that as of January 1,
11114	11114	26 2019 served more than 300,000 retail customers in this State
11115	11115
11116	11116
11117	11117
11118	11118
11119	11119
11120	11120	HB4687 - 308 - LRB103 36052 LNS 66139 b
11121	11121
11122	11122
11123	11123	HB4687- 309 -LRB103 36052 LNS 66139 b HB4687 - 309 - LRB103 36052 LNS 66139 b
11124	11124	HB4687 - 309 - LRB103 36052 LNS 66139 b
11125	11125	1 shall purchase renewable energy credits from new renewable
11126	11126	2 energy facilities constructed at or adjacent to the sites of
11127	11127	3 coal-fueled electric generating facilities in this State in
11128	11128	4 accordance with subsection (c-5) of Section 1-75 of the
11129	11129	5 Illinois Power Agency Act. Except as expressly provided in
11130	11130	6 this Section, the plans and procedures for such procurements
11131	11131	7 shall not be included in the procurement plans provided for in
11132	11132	8 this Section, but rather shall be conducted and implemented
11133	11133	9 solely in accordance with subsection (c-5) of Section 1-75 of
11134	11134	10 the Illinois Power Agency Act.
11135	11135	11 (c) The provisions of this subsection (c) shall not apply
11136	11136	12 to procurements conducted pursuant to subsection (c-5) of
11137	11137	13 Section 1-75 of the Illinois Power Agency Act. However, the
11138	11138	14 Agency may retain a procurement administrator to assist the
11139	11139	15 Agency in planning and carrying out the procurement events and
11140	11140	16 implementing the other requirements specified in such
11141	11141	17 subsection (c-5) of Section 1-75 of the Illinois Power Agency
11142	11142	18 Act, with the costs incurred by the Agency for the procurement
11143	11143	19 administrator to be recovered through fees charged to
11144	11144	20 applicants for selection to sell and deliver renewable energy
11145	11145	21 credits to electric utilities pursuant to subsection (c-5) of
11146	11146	22 Section 1-75 of the Illinois Power Agency Act. The procurement
11147	11147	23 process set forth in Section 1-75 of the Illinois Power Agency
11148	11148	24 Act and subsection (e) of this Section shall be administered
11149	11149	25 by a procurement administrator and monitored by a procurement
11150	11150	26 monitor.
11151	11151
11152	11152
11153	11153
11154	11154
11155	11155
11156	11156	HB4687 - 309 - LRB103 36052 LNS 66139 b
11157	11157
11158	11158
11159	11159	HB4687- 310 -LRB103 36052 LNS 66139 b HB4687 - 310 - LRB103 36052 LNS 66139 b
11160	11160	HB4687 - 310 - LRB103 36052 LNS 66139 b
11161	11161	1 (1) The procurement administrator shall:
11162	11162	2 (i) design the final procurement process in
11163	11163	3 accordance with Section 1-75 of the Illinois Power
11164	11164	4 Agency Act and subsection (e) of this Section
11165	11165	5 following Commission approval of the procurement plan;
11166	11166	6 (ii) develop benchmarks in accordance with
11167	11167	7 subsection (e)(3) to be used to evaluate bids; these
11168	11168	8 benchmarks shall be submitted to the Commission for
11169	11169	9 review and approval on a confidential basis prior to
11170	11170	10 the procurement event;
11171	11171	11 (iii) serve as the interface between the electric
11172	11172	12 utility and suppliers;
11173	11173	13 (iv) manage the bidder pre-qualification and
11174	11174	14 registration process;
11175	11175	15 (v) obtain the electric utilities' agreement to
11176	11176	16 the final form of all supply contracts and credit
11177	11177	17 collateral agreements;
11178	11178	18 (vi) administer the request for proposals process;
11179	11179	19 (vii) have the discretion to negotiate to
11180	11180	20 determine whether bidders are willing to lower the
11181	11181	21 price of bids that meet the benchmarks approved by the
11182	11182	22 Commission; any post-bid negotiations with bidders
11183	11183	23 shall be limited to price only and shall be completed
11184	11184	24 within 24 hours after opening the sealed bids and
11185	11185	25 shall be conducted in a fair and unbiased manner; in
11186	11186	26 conducting the negotiations, there shall be no
11187	11187
11188	11188
11189	11189
11190	11190
11191	11191
11192	11192	HB4687 - 310 - LRB103 36052 LNS 66139 b
11193	11193
11194	11194
11195	11195	HB4687- 311 -LRB103 36052 LNS 66139 b HB4687 - 311 - LRB103 36052 LNS 66139 b
11196	11196	HB4687 - 311 - LRB103 36052 LNS 66139 b
11197	11197	1 disclosure of any information derived from proposals
11198	11198	2 submitted by competing bidders; if information is
11199	11199	3 disclosed to any bidder, it shall be provided to all
11200	11200	4 competing bidders;
11201	11201	5 (viii) maintain confidentiality of supplier and
11202	11202	6 bidding information in a manner consistent with all
11203	11203	7 applicable laws, rules, regulations, and tariffs;
11204	11204	8 (ix) submit a confidential report to the
11205	11205	9 Commission recommending acceptance or rejection of
11206	11206	10 bids;
11207	11207	11 (x) notify the utility of contract counterparties
11208	11208	12 and contract specifics; and
11209	11209	13 (xi) administer related contingency procurement
11210	11210	14 events.
11211	11211	15 (2) The procurement monitor, who shall be retained by
11212	11212	16 the Commission, shall:
11213	11213	17 (i) monitor interactions among the procurement
11214	11214	18 administrator, suppliers, and utility;
11215	11215	19 (ii) monitor and report to the Commission on the
11216	11216	20 progress of the procurement process;
11217	11217	21 (iii) provide an independent confidential report
11218	11218	22 to the Commission regarding the results of the
11219	11219	23 procurement event;
11220	11220	24 (iv) assess compliance with the procurement plans
11221	11221	25 approved by the Commission for each utility that on
11222	11222	26 December 31, 2005 provided electric service to at
11223	11223
11224	11224
11225	11225
11226	11226
11227	11227
11228	11228	HB4687 - 311 - LRB103 36052 LNS 66139 b
11229	11229
11230	11230
11231	11231	HB4687- 312 -LRB103 36052 LNS 66139 b HB4687 - 312 - LRB103 36052 LNS 66139 b
11232	11232	HB4687 - 312 - LRB103 36052 LNS 66139 b
11233	11233	1 least 100,000 customers in Illinois and for each small
11234	11234	2 multi-jurisdictional utility that on December 31, 2005
11235	11235	3 served less than 100,000 customers in Illinois;
11236	11236	4 (v) preserve the confidentiality of supplier and
11237	11237	5 bidding information in a manner consistent with all
11238	11238	6 applicable laws, rules, regulations, and tariffs;
11239	11239	7 (vi) provide expert advice to the Commission and
11240	11240	8 consult with the procurement administrator regarding
11241	11241	9 issues related to procurement process design, rules,
11242	11242	10 protocols, and policy-related matters; and
11243	11243	11 (vii) consult with the procurement administrator
11244	11244	12 regarding the development and use of benchmark
11245	11245	13 criteria, standard form contracts, credit policies,
11246	11246	14 and bid documents.
11247	11247	15 (d) Except as provided in subsection (j), the planning
11248	11248	16 process shall be conducted as follows:
11249	11249	17 (1) Beginning in 2008, each Illinois utility procuring
11250	11250	18 power pursuant to this Section shall annually provide a
11251	11251	19 range of load forecasts to the Illinois Power Agency by
11252	11252	20 July 15 of each year, or such other date as may be required
11253	11253	21 by the Commission or Agency. The load forecasts shall
11254	11254	22 cover the 5-year procurement planning period for the next
11255	11255	23 procurement plan and shall include hourly data
11256	11256	24 representing a high-load, low-load, and expected-load
11257	11257	25 scenario for the load of those retail customers included
11258	11258	26 in the plan's electric supply service requirements. The
11259	11259
11260	11260
11261	11261
11262	11262
11263	11263
11264	11264	HB4687 - 312 - LRB103 36052 LNS 66139 b
11265	11265
11266	11266
11267	11267	HB4687- 313 -LRB103 36052 LNS 66139 b HB4687 - 313 - LRB103 36052 LNS 66139 b
11268	11268	HB4687 - 313 - LRB103 36052 LNS 66139 b
11269	11269	1 utility shall provide supporting data and assumptions for
11270	11270	2 each of the scenarios.
11271	11271	3 (2) Beginning in 2008, the Illinois Power Agency shall
11272	11272	4 prepare a procurement plan by August 15th of each year, or
11273	11273	5 such other date as may be required by the Commission. The
11274	11274	6 procurement plan shall identify the portfolio of
11275	11275	7 demand-response and power and energy products to be
11276	11276	8 procured. Cost-effective demand-response measures shall be
11277	11277	9 procured as set forth in item (iii) of subsection (b) of
11278	11278	10 this Section. Copies of the procurement plan shall be
11279	11279	11 posted and made publicly available on the Agency's and
11280	11280	12 Commission's websites, and copies shall also be provided
11281	11281	13 to each affected electric utility. An affected utility
11282	11282	14 shall have 30 days following the date of posting to
11283	11283	15 provide comment to the Agency on the procurement plan.
11284	11284	16 Other interested entities also may comment on the
11285	11285	17 procurement plan. All comments submitted to the Agency
11286	11286	18 shall be specific, supported by data or other detailed
11287	11287	19 analyses, and, if objecting to all or a portion of the
11288	11288	20 procurement plan, accompanied by specific alternative
11289	11289	21 wording or proposals. All comments shall be posted on the
11290	11290	22 Agency's and Commission's websites. During this 30-day
11291	11291	23 comment period, the Agency shall hold at least one public
11292	11292	24 hearing within each utility's service area for the purpose
11293	11293	25 of receiving public comment on the procurement plan.
11294	11294	26 Within 14 days following the end of the 30-day review
11295	11295
11296	11296
11297	11297
11298	11298
11299	11299
11300	11300	HB4687 - 313 - LRB103 36052 LNS 66139 b
11301	11301
11302	11302
11303	11303	HB4687- 314 -LRB103 36052 LNS 66139 b HB4687 - 314 - LRB103 36052 LNS 66139 b
11304	11304	HB4687 - 314 - LRB103 36052 LNS 66139 b
11305	11305	1 period, the Agency shall revise the procurement plan as
11306	11306	2 necessary based on the comments received and file the
11307	11307	3 procurement plan with the Commission and post the
11308	11308	4 procurement plan on the websites.
11309	11309	5 (3) Within 5 days after the filing of the procurement
11310	11310	6 plan, any person objecting to the procurement plan shall
11311	11311	7 file an objection with the Commission. Within 10 days
11312	11312	8 after the filing, the Commission shall determine whether a
11313	11313	9 hearing is necessary. The Commission shall enter its order
11314	11314	10 confirming or modifying the procurement plan within 90
11315	11315	11 days after the filing of the procurement plan by the
11316	11316	12 Illinois Power Agency.
11317	11317	13 (4) The Commission shall approve the procurement plan,
11318	11318	14 including expressly the forecast used in the procurement
11319	11319	15 plan, if the Commission determines that it will ensure
11320	11320	16 adequate, reliable, affordable, efficient, and
11321	11321	17 environmentally sustainable electric service at the lowest
11322	11322	18 total cost over time, taking into account any benefits of
11323	11323	19 price stability.
11324	11324	20 (4.5) (Blank). The Commission shall review the
11325	11325	21 Agency's recommendations for the selection of applicants
11326	11326	22 to enter into long-term contracts for the sale and
11327	11327	23 delivery of renewable energy credits from new renewable
11328	11328	24 energy facilities to be constructed at or adjacent to the
11329	11329	25 sites of coal-fueled electric generating facilities in
11330	11330	26 this State in accordance with the provisions of subsection
11331	11331
11332	11332
11333	11333
11334	11334
11335	11335
11336	11336	HB4687 - 314 - LRB103 36052 LNS 66139 b
11337	11337
11338	11338
11339	11339	HB4687- 315 -LRB103 36052 LNS 66139 b HB4687 - 315 - LRB103 36052 LNS 66139 b
11340	11340	HB4687 - 315 - LRB103 36052 LNS 66139 b
11341	11341	1 (c-5) of Section 1-75 of the Illinois Power Agency Act,
11342	11342	2 and shall approve the Agency's recommendations if the
11343	11343	3 Commission determines that the applicants recommended by
11344	11344	4 the Agency for selection, the proposed new renewable
11345	11345	5 energy facilities to be constructed, the amounts of
11346	11346	6 renewable energy credits to be delivered pursuant to the
11347	11347	7 contracts, and the other terms of the contracts, are
11348	11348	8 consistent with the requirements of subsection (c-5) of
11349	11349	9 Section 1-75 of the Illinois Power Agency Act.
11350	11350	10 (e) The procurement process shall include each of the
11351	11351	11 following components:
11352	11352	12 (1) Solicitation, pre-qualification, and registration
11353	11353	13 of bidders. The procurement administrator shall
11354	11354	14 disseminate information to potential bidders to promote a
11355	11355	15 procurement event, notify potential bidders that the
11356	11356	16 procurement administrator may enter into a post-bid price
11357	11357	17 negotiation with bidders that meet the applicable
11358	11358	18 benchmarks, provide supply requirements, and otherwise
11359	11359	19 explain the competitive procurement process. In addition
11360	11360	20 to such other publication as the procurement administrator
11361	11361	21 determines is appropriate, this information shall be
11362	11362	22 posted on the Illinois Power Agency's and the Commission's
11363	11363	23 websites. The procurement administrator shall also
11364	11364	24 administer the prequalification process, including
11365	11365	25 evaluation of credit worthiness, compliance with
11366	11366	26 procurement rules, and agreement to the standard form
11367	11367
11368	11368
11369	11369
11370	11370
11371	11371
11372	11372	HB4687 - 315 - LRB103 36052 LNS 66139 b
11373	11373
11374	11374
11375	11375	HB4687- 316 -LRB103 36052 LNS 66139 b HB4687 - 316 - LRB103 36052 LNS 66139 b
11376	11376	HB4687 - 316 - LRB103 36052 LNS 66139 b
11377	11377	1 contract developed pursuant to paragraph (2) of this
11378	11378	2 subsection (e). The procurement administrator shall then
11379	11379	3 identify and register bidders to participate in the
11380	11380	4 procurement event.
11381	11381	5 (2) Standard contract forms and credit terms and
11382	11382	6 instruments. The procurement administrator, in
11383	11383	7 consultation with the utilities, the Commission, and other
11384	11384	8 interested parties and subject to Commission oversight,
11385	11385	9 shall develop and provide standard contract forms for the
11386	11386	10 supplier contracts that meet generally accepted industry
11387	11387	11 practices. Standard credit terms and instruments that meet
11388	11388	12 generally accepted industry practices shall be similarly
11389	11389	13 developed. The procurement administrator shall make
11390	11390	14 available to the Commission all written comments it
11391	11391	15 receives on the contract forms, credit terms, or
11392	11392	16 instruments. If the procurement administrator cannot reach
11393	11393	17 agreement with the applicable electric utility as to the
11394	11394	18 contract terms and conditions, the procurement
11395	11395	19 administrator must notify the Commission of any disputed
11396	11396	20 terms and the Commission shall resolve the dispute. The
11397	11397	21 terms of the contracts shall not be subject to negotiation
11398	11398	22 by winning bidders, and the bidders must agree to the
11399	11399	23 terms of the contract in advance so that winning bids are
11400	11400	24 selected solely on the basis of price.
11401	11401	25 (3) Establishment of a market-based price benchmark.
11402	11402	26 As part of the development of the procurement process, the
11403	11403
11404	11404
11405	11405
11406	11406
11407	11407
11408	11408	HB4687 - 316 - LRB103 36052 LNS 66139 b
11409	11409
11410	11410
11411	11411	HB4687- 317 -LRB103 36052 LNS 66139 b HB4687 - 317 - LRB103 36052 LNS 66139 b
11412	11412	HB4687 - 317 - LRB103 36052 LNS 66139 b
11413	11413	1 procurement administrator, in consultation with the
11414	11414	2 Commission staff, Agency staff, and the procurement
11415	11415	3 monitor, shall establish benchmarks for evaluating the
11416	11416	4 final prices in the contracts for each of the products
11417	11417	5 that will be procured through the procurement process. The
11418	11418	6 benchmarks shall be based on price data for similar
11419	11419	7 products for the same delivery period and same delivery
11420	11420	8 hub, or other delivery hubs after adjusting for that
11421	11421	9 difference. The price benchmarks may also be adjusted to
11422	11422	10 take into account differences between the information
11423	11423	11 reflected in the underlying data sources and the specific
11424	11424	12 products and procurement process being used to procure
11425	11425	13 power for the Illinois utilities. The benchmarks shall be
11426	11426	14 confidential but shall be provided to, and will be subject
11427	11427	15 to Commission review and approval, prior to a procurement
11428	11428	16 event.
11429	11429	17 (4) Request for proposals competitive procurement
11430	11430	18 process. The procurement administrator shall design and
11431	11431	19 issue a request for proposals to supply electricity in
11432	11432	20 accordance with each utility's procurement plan, as
11433	11433	21 approved by the Commission. The request for proposals
11434	11434	22 shall set forth a procedure for sealed, binding commitment
11435	11435	23 bidding with pay-as-bid settlement, and provision for
11436	11436	24 selection of bids on the basis of price.
11437	11437	25 (5) A plan for implementing contingencies in the event
11438	11438	26 of supplier default or failure of the procurement process
11439	11439
11440	11440
11441	11441
11442	11442
11443	11443
11444	11444	HB4687 - 317 - LRB103 36052 LNS 66139 b
11445	11445
11446	11446
11447	11447	HB4687- 318 -LRB103 36052 LNS 66139 b HB4687 - 318 - LRB103 36052 LNS 66139 b
11448	11448	HB4687 - 318 - LRB103 36052 LNS 66139 b
11449	11449	1 to fully meet the expected load requirement due to
11450	11450	2 insufficient supplier participation, Commission rejection
11451	11451	3 of results, or any other cause.
11452	11452	4 (i) Event of supplier default: In the event of
11453	11453	5 supplier default, the utility shall review the
11454	11454	6 contract of the defaulting supplier to determine if
11455	11455	7 the amount of supply is 200 megawatts or greater, and
11456	11456	8 if there are more than 60 days remaining of the
11457	11457	9 contract term. If both of these conditions are met,
11458	11458	10 and the default results in termination of the
11459	11459	11 contract, the utility shall immediately notify the
11460	11460	12 Illinois Power Agency that a request for proposals
11461	11461	13 must be issued to procure replacement power, and the
11462	11462	14 procurement administrator shall run an additional
11463	11463	15 procurement event. If the contracted supply of the
11464	11464	16 defaulting supplier is less than 200 megawatts or
11465	11465	17 there are less than 60 days remaining of the contract
11466	11466	18 term, the utility shall procure power and energy from
11467	11467	19 the applicable regional transmission organization
11468	11468	20 market, including ancillary services, capacity, and
11469	11469	21 day-ahead or real time energy, or both, for the
11470	11470	22 duration of the contract term to replace the
11471	11471	23 contracted supply; provided, however, that if a needed
11472	11472	24 product is not available through the regional
11473	11473	25 transmission organization market it shall be purchased
11474	11474	26 from the wholesale market.
11475	11475
11476	11476
11477	11477
11478	11478
11479	11479
11480	11480	HB4687 - 318 - LRB103 36052 LNS 66139 b
11481	11481
11482	11482
11483	11483	HB4687- 319 -LRB103 36052 LNS 66139 b HB4687 - 319 - LRB103 36052 LNS 66139 b
11484	11484	HB4687 - 319 - LRB103 36052 LNS 66139 b
11485	11485	1 (ii) Failure of the procurement process to fully
11486	11486	2 meet the expected load requirement: If the procurement
11487	11487	3 process fails to fully meet the expected load
11488	11488	4 requirement due to insufficient supplier participation
11489	11489	5 or due to a Commission rejection of the procurement
11490	11490	6 results, the procurement administrator, the
11491	11491	7 procurement monitor, and the Commission staff shall
11492	11492	8 meet within 10 days to analyze potential causes of low
11493	11493	9 supplier interest or causes for the Commission
11494	11494	10 decision. If changes are identified that would likely
11495	11495	11 result in increased supplier participation, or that
11496	11496	12 would address concerns causing the Commission to
11497	11497	13 reject the results of the prior procurement event, the
11498	11498	14 procurement administrator may implement those changes
11499	11499	15 and rerun the request for proposals process according
11500	11500	16 to a schedule determined by those parties and
11501	11501	17 consistent with Section 1-75 of the Illinois Power
11502	11502	18 Agency Act and this subsection. In any event, a new
11503	11503	19 request for proposals process shall be implemented by
11504	11504	20 the procurement administrator within 90 days after the
11505	11505	21 determination that the procurement process has failed
11506	11506	22 to fully meet the expected load requirement.
11507	11507	23 (iii) In all cases where there is insufficient
11508	11508	24 supply provided under contracts awarded through the
11509	11509	25 procurement process to fully meet the electric
11510	11510	26 utility's load requirement, the utility shall meet the
11511	11511
11512	11512
11513	11513
11514	11514
11515	11515
11516	11516	HB4687 - 319 - LRB103 36052 LNS 66139 b
11517	11517
11518	11518
11519	11519	HB4687- 320 -LRB103 36052 LNS 66139 b HB4687 - 320 - LRB103 36052 LNS 66139 b
11520	11520	HB4687 - 320 - LRB103 36052 LNS 66139 b
11521	11521	1 load requirement by procuring power and energy from
11522	11522	2 the applicable regional transmission organization
11523	11523	3 market, including ancillary services, capacity, and
11524	11524	4 day-ahead or real time energy, or both; provided,
11525	11525	5 however, that if a needed product is not available
11526	11526	6 through the regional transmission organization market
11527	11527	7 it shall be purchased from the wholesale market.
11528	11528	8 (6) The procurement processes described in this
11529	11529	9 subsection and in subsection (c-5) of Section 1-75 of the
11530	11530	10 Illinois Power Agency Act are exempt from the requirements
11531	11531	11 of the Illinois Procurement Code, pursuant to Section
11532	11532	12 20-10 of that Code.
11533	11533	13 (f) Within 2 business days after opening the sealed bids,
11534	11534	14 the procurement administrator shall submit a confidential
11535	11535	15 report to the Commission. The report shall contain the results
11536	11536	16 of the bidding for each of the products along with the
11537	11537	17 procurement administrator's recommendation for the acceptance
11538	11538	18 and rejection of bids based on the price benchmark criteria
11539	11539	19 and other factors observed in the process. The procurement
11540	11540	20 monitor also shall submit a confidential report to the
11541	11541	21 Commission within 2 business days after opening the sealed
11542	11542	22 bids. The report shall contain the procurement monitor's
11543	11543	23 assessment of bidder behavior in the process as well as an
11544	11544	24 assessment of the procurement administrator's compliance with
11545	11545	25 the procurement process and rules. The Commission shall review
11546	11546	26 the confidential reports submitted by the procurement
11547	11547
11548	11548
11549	11549
11550	11550
11551	11551
11552	11552	HB4687 - 320 - LRB103 36052 LNS 66139 b
11553	11553
11554	11554
11555	11555	HB4687- 321 -LRB103 36052 LNS 66139 b HB4687 - 321 - LRB103 36052 LNS 66139 b
11556	11556	HB4687 - 321 - LRB103 36052 LNS 66139 b
11557	11557	1 administrator and procurement monitor, and shall accept or
11558	11558	2 reject the recommendations of the procurement administrator
11559	11559	3 within 2 business days after receipt of the reports.
11560	11560	4 (g) Within 3 business days after the Commission decision
11561	11561	5 approving the results of a procurement event, the utility
11562	11562	6 shall enter into binding contractual arrangements with the
11563	11563	7 winning suppliers using the standard form contracts; except
11564	11564	8 that the utility shall not be required either directly or
11565	11565	9 indirectly to execute the contracts if a tariff that is
11566	11566	10 consistent with subsection (l) of this Section has not been
11567	11567	11 approved and placed into effect for that utility.
11568	11568	12 (h) The names of the successful bidders and the
11569	11569	13 load-weighted average of the winning bid prices for each
11570	11570	14 contract type and for each contract term shall be made
11571	11571	15 available to the public at the time of Commission approval of a
11572	11572	16 procurement event. The Commission, the procurement monitor,
11573	11573	17 the procurement administrator, the Illinois Power Agency, and
11574	11574	18 all participants in the procurement process shall maintain the
11575	11575	19 confidentiality of all other supplier and bidding information
11576	11576	20 in a manner consistent with all applicable laws, rules,
11577	11577	21 regulations, and tariffs. Confidential information, including
11578	11578	22 the confidential reports submitted by the procurement
11579	11579	23 administrator and procurement monitor pursuant to subsection
11580	11580	24 (f) of this Section, shall not be made publicly available and
11581	11581	25 shall not be discoverable by any party in any proceeding,
11582	11582	26 absent a compelling demonstration of need, nor shall those
11583	11583
11584	11584
11585	11585
11586	11586
11587	11587
11588	11588	HB4687 - 321 - LRB103 36052 LNS 66139 b
11589	11589
11590	11590
11591	11591	HB4687- 322 -LRB103 36052 LNS 66139 b HB4687 - 322 - LRB103 36052 LNS 66139 b
11592	11592	HB4687 - 322 - LRB103 36052 LNS 66139 b
11593	11593	1 reports be admissible in any proceeding other than one for law
11594	11594	2 enforcement purposes. For the procurement of standard
11595	11595	3 wholesale products, the names of the successful bidders and
11596	11596	4 the load weighted average of the winning bid prices for each
11597	11597	5 contract type and for each contract term shall be made
11598	11598	6 available to the public at the time of Commission approval of a
11599	11599	7 procurement event. For procurements conducted to meet the
11600	11600	8 requirements of subsection (b) of Section 1-56 or subsection
11601	11601	9 (c) of Section 1-75 of the Illinois Power Agency Act governed
11602	11602	10 by the provisions of this Section, the address and nameplate
11603	11603	11 capacity of the new renewable energy generating facility
11604	11604	12 proposed by a winning bidder shall also be made available to
11605	11605	13 the public at the time of Commission approval of a procurement
11606	11606	14 event, along with the business address and contact information
11607	11607	15 for any winning bidder. An estimate or approximation of the
11608	11608	16 nameplate capacity of the new renewable energy generating
11609	11609	17 facility may be disclosed if necessary to protect the
11610	11610	18 confidentiality of individual bid prices.
11611	11611	19 The Commission, the procurement monitor, the procurement
11612	11612	20 administrator, the Illinois Power Agency, and all participants
11613	11613	21 in the procurement process shall maintain the confidentiality
11614	11614	22 of all other supplier and bidding information in a manner
11615	11615	23 consistent with all applicable laws, rules, regulations, and
11616	11616	24 tariffs. Confidential information, including the confidential
11617	11617	25 reports submitted by the procurement administrator and
11618	11618	26 procurement monitor pursuant to subsection (f) of this
11619	11619
11620	11620
11621	11621
11622	11622
11623	11623
11624	11624	HB4687 - 322 - LRB103 36052 LNS 66139 b
11625	11625
11626	11626
11627	11627	HB4687- 323 -LRB103 36052 LNS 66139 b HB4687 - 323 - LRB103 36052 LNS 66139 b
11628	11628	HB4687 - 323 - LRB103 36052 LNS 66139 b
11629	11629	1 Section, shall not be made publicly available and shall not be
11630	11630	2 discoverable by any party in any proceeding, absent a
11631	11631	3 compelling demonstration of need, nor shall those reports be
11632	11632	4 admissible in any proceeding other than one for law
11633	11633	5 enforcement purposes.
11634	11634	6 (i) Within 2 business days after a Commission decision
11635	11635	7 approving the results of a procurement event or such other
11636	11636	8 date as may be required by the Commission from time to time,
11637	11637	9 the utility shall file for informational purposes with the
11638	11638	10 Commission its actual or estimated retail supply charges, as
11639	11639	11 applicable, by customer supply group reflecting the costs
11640	11640	12 associated with the procurement and computed in accordance
11641	11641	13 with the tariffs filed pursuant to subsection (l) of this
11642	11642	14 Section and approved by the Commission.
11643	11643	15 (j) Within 60 days following August 28, 2007 (the
11644	11644	16 effective date of Public Act 95-481), each electric utility
11645	11645	17 that on December 31, 2005 provided electric service to at
11646	11646	18 least 100,000 customers in Illinois shall prepare and file
11647	11647	19 with the Commission an initial procurement plan, which shall
11648	11648	20 conform in all material respects to the requirements of the
11649	11649	21 procurement plan set forth in subsection (b); provided,
11650	11650	22 however, that the Illinois Power Agency Act shall not apply to
11651	11651	23 the initial procurement plan prepared pursuant to this
11652	11652	24 subsection. The initial procurement plan shall identify the
11653	11653	25 portfolio of power and energy products to be procured and
11654	11654	26 delivered for the period June 2008 through May 2009, and shall
11655	11655
11656	11656
11657	11657
11658	11658
11659	11659
11660	11660	HB4687 - 323 - LRB103 36052 LNS 66139 b
11661	11661
11662	11662
11663	11663	HB4687- 324 -LRB103 36052 LNS 66139 b HB4687 - 324 - LRB103 36052 LNS 66139 b
11664	11664	HB4687 - 324 - LRB103 36052 LNS 66139 b
11665	11665	1 identify the proposed procurement administrator, who shall
11666	11666	2 have the same experience and expertise as is required of a
11667	11667	3 procurement administrator hired pursuant to Section 1-75 of
11668	11668	4 the Illinois Power Agency Act. Copies of the procurement plan
11669	11669	5 shall be posted and made publicly available on the
11670	11670	6 Commission's website. The initial procurement plan may include
11671	11671	7 contracts for renewable resources that extend beyond May 2009.
11672	11672	8 (i) Within 14 days following filing of the initial
11673	11673	9 procurement plan, any person may file a detailed objection
11674	11674	10 with the Commission contesting the procurement plan
11675	11675	11 submitted by the electric utility. All objections to the
11676	11676	12 electric utility's plan shall be specific, supported by
11677	11677	13 data or other detailed analyses. The electric utility may
11678	11678	14 file a response to any objections to its procurement plan
11679	11679	15 within 7 days after the date objections are due to be
11680	11680	16 filed. Within 7 days after the date the utility's response
11681	11681	17 is due, the Commission shall determine whether a hearing
11682	11682	18 is necessary. If it determines that a hearing is
11683	11683	19 necessary, it shall require the hearing to be completed
11684	11684	20 and issue an order on the procurement plan within 60 days
11685	11685	21 after the filing of the procurement plan by the electric
11686	11686	22 utility.
11687	11687	23 (ii) The order shall approve or modify the procurement
11688	11688	24 plan, approve an independent procurement administrator,
11689	11689	25 and approve or modify the electric utility's tariffs that
11690	11690	26 are proposed with the initial procurement plan. The
11691	11691
11692	11692
11693	11693
11694	11694
11695	11695
11696	11696	HB4687 - 324 - LRB103 36052 LNS 66139 b
11697	11697
11698	11698
11699	11699	HB4687- 325 -LRB103 36052 LNS 66139 b HB4687 - 325 - LRB103 36052 LNS 66139 b
11700	11700	HB4687 - 325 - LRB103 36052 LNS 66139 b
11701	11701	1 Commission shall approve the procurement plan if the
11702	11702	2 Commission determines that it will ensure adequate,
11703	11703	3 reliable, affordable, efficient, and environmentally
11704	11704	4 sustainable electric service at the lowest total cost over
11705	11705	5 time, taking into account any benefits of price stability.
11706	11706	6 (k) (Blank).
11707	11707	7 (k-5) (Blank).
11708	11708	8 (l) An electric utility shall recover its costs incurred
11709	11709	9 under this Section and subsection (c-5) of Section 1-75 of the
11710	11710	10 Illinois Power Agency Act, including, but not limited to, the
11711	11711	11 costs of procuring power and energy demand-response resources
11712	11712	12 under this Section and its costs for purchasing renewable
11713	11713	13 energy credits pursuant to subsection (c-5) of Section 1-75 of
11714	11714	14 the Illinois Power Agency Act. The utility shall file with the
11715	11715	15 initial procurement plan its proposed tariffs through which
11716	11716	16 its costs of procuring power that are incurred pursuant to a
11717	11717	17 Commission-approved procurement plan and those other costs
11718	11718	18 identified in this subsection (l), will be recovered. The
11719	11719	19 tariffs shall include a formula rate or charge designed to
11720	11720	20 pass through both the costs incurred by the utility in
11721	11721	21 procuring a supply of electric power and energy for the
11722	11722	22 applicable customer classes with no mark-up or return on the
11723	11723	23 price paid by the utility for that supply, plus any just and
11724	11724	24 reasonable costs that the utility incurs in arranging and
11725	11725	25 providing for the supply of electric power and energy. The
11726	11726	26 formula rate or charge shall also contain provisions that
11727	11727
11728	11728
11729	11729
11730	11730
11731	11731
11732	11732	HB4687 - 325 - LRB103 36052 LNS 66139 b
11733	11733
11734	11734
11735	11735	HB4687- 326 -LRB103 36052 LNS 66139 b HB4687 - 326 - LRB103 36052 LNS 66139 b
11736	11736	HB4687 - 326 - LRB103 36052 LNS 66139 b
11737	11737	1 ensure that its application does not result in over or under
11738	11738	2 recovery due to changes in customer usage and demand patterns,
11739	11739	3 and that provide for the correction, on at least an annual
11740	11740	4 basis, of any accounting errors that may occur. A utility
11741	11741	5 shall recover through the tariff all reasonable costs incurred
11742	11742	6 to implement or comply with any procurement plan that is
11743	11743	7 developed and put into effect pursuant to Section 1-75 of the
11744	11744	8 Illinois Power Agency Act and this Section, and for the
11745	11745	9 procurement of renewable energy credits pursuant to subsection
11746	11746	10 (c-5) of Section 1-75 of the Illinois Power Agency Act,
11747	11747	11 including any fees assessed by the Illinois Power Agency,
11748	11748	12 costs associated with load balancing, and contingency plan
11749	11749	13 costs. The electric utility shall also recover its full costs
11750	11750	14 of procuring electric supply for which it contracted before
11751	11751	15 the effective date of this Section in conjunction with the
11752	11752	16 provision of full requirements service under fixed-price
11753	11753	17 bundled service tariffs subsequent to December 31, 2006. All
11754	11754	18 such costs shall be deemed to have been prudently incurred.
11755	11755	19 The pass-through tariffs that are filed and approved pursuant
11756	11756	20 to this Section shall not be subject to review under, or in any
11757	11757	21 way limited by, Section 16-111(i) of this Act. All of the costs
11758	11758	22 incurred by the electric utility associated with the purchase
11759	11759	23 of zero emission credits in accordance with subsection (d-5)
11760	11760	24 of Section 1-75 of the Illinois Power Agency Act, all costs
11761	11761	25 incurred by the electric utility associated with the purchase
11762	11762	26 of carbon mitigation credits in accordance with subsection
11763	11763
11764	11764
11765	11765
11766	11766
11767	11767
11768	11768	HB4687 - 326 - LRB103 36052 LNS 66139 b
11769	11769
11770	11770
11771	11771	HB4687- 327 -LRB103 36052 LNS 66139 b HB4687 - 327 - LRB103 36052 LNS 66139 b
11772	11772	HB4687 - 327 - LRB103 36052 LNS 66139 b
11773	11773	1 (d-10) of Section 1-75 of the Illinois Power Agency Act, and,
11774	11774	2 beginning June 1, 2017, all of the costs incurred by the
11775	11775	3 electric utility associated with the purchase of renewable
11776	11776	4 energy resources in accordance with Sections 1-56 and 1-75 of
11777	11777	5 the Illinois Power Agency Act, and all of the costs incurred by
11778	11778	6 the electric utility in purchasing renewable energy credits in
11779	11779	7 accordance with subsection (c-5) of Section 1-75 of the
11780	11780	8 Illinois Power Agency Act, shall be recovered through the
11781	11781	9 electric utility's tariffed charges applicable to all of its
11782	11782	10 retail customers, as specified in subsection (k) or subsection
11783	11783	11 (i-5), as applicable, of Section 16-108 of this Act, and shall
11784	11784	12 not be recovered through the electric utility's tariffed
11785	11785	13 charges for electric power and energy supply to its eligible
11786	11786	14 retail customers.
11787	11787	15 (m) The Commission has the authority to adopt rules to
11788	11788	16 carry out the provisions of this Section. For the public
11789	11789	17 interest, safety, and welfare, the Commission also has
11790	11790	18 authority to adopt rules to carry out the provisions of this
11791	11791	19 Section on an emergency basis immediately following August 28,
11792	11792	20 2007 (the effective date of Public Act 95-481).
11793	11793	21 (n) Notwithstanding any other provision of this Act, any
11794	11794	22 affiliated electric utilities that submit a single procurement
11795	11795	23 plan covering their combined needs may procure for those
11796	11796	24 combined needs in conjunction with that plan, and may enter
11797	11797	25 jointly into power supply contracts, purchases, and other
11798	11798	26 procurement arrangements, and allocate capacity and energy and
11799	11799
11800	11800
11801	11801
11802	11802
11803	11803
11804	11804	HB4687 - 327 - LRB103 36052 LNS 66139 b
11805	11805
11806	11806
11807	11807	HB4687- 328 -LRB103 36052 LNS 66139 b HB4687 - 328 - LRB103 36052 LNS 66139 b
11808	11808	HB4687 - 328 - LRB103 36052 LNS 66139 b
11809	11809	1 cost responsibility therefor among themselves in proportion to
11810	11810	2 their requirements.
11811	11811	3 (o) On or before June 1 of each year, the Commission shall
11812	11812	4 hold an informal hearing for the purpose of receiving comments
11813	11813	5 on the prior year's procurement process and any
11814	11814	6 recommendations for change.
11815	11815	7 (p) An electric utility subject to this Section may
11816	11816	8 propose to invest, lease, own, or operate an electric
11817	11817	9 generation facility as part of its procurement plan, provided
11818	11818	10 the utility demonstrates that such facility is the least-cost
11819	11819	11 option to provide electric service to those retail customers
11820	11820	12 included in the plan's electric supply service requirements.
11821	11821	13 If the facility is shown to be the least-cost option and is
11822	11822	14 included in a procurement plan prepared in accordance with
11823	11823	15 Section 1-75 of the Illinois Power Agency Act and this
11824	11824	16 Section, then the electric utility shall make a filing
11825	11825	17 pursuant to Section 8-406 of this Act, and may request of the
11826	11826	18 Commission any statutory relief required thereunder. If the
11827	11827	19 Commission grants all of the necessary approvals for the
11828	11828	20 proposed facility, such supply shall thereafter be considered
11829	11829	21 as a pre-existing contract under subsection (b) of this
11830	11830	22 Section. The Commission shall in any order approving a
11831	11831	23 proposal under this subsection specify how the utility will
11832	11832	24 recover the prudently incurred costs of investing in, leasing,
11833	11833	25 owning, or operating such generation facility through just and
11834	11834	26 reasonable rates charged to those retail customers included in
11835	11835
11836	11836
11837	11837
11838	11838
11839	11839
11840	11840	HB4687 - 328 - LRB103 36052 LNS 66139 b
11841	11841
11842	11842
11843	11843	HB4687- 329 -LRB103 36052 LNS 66139 b HB4687 - 329 - LRB103 36052 LNS 66139 b
11844	11844	HB4687 - 329 - LRB103 36052 LNS 66139 b
11845	11845	1 the plan's electric supply service requirements. Cost recovery
11846	11846	2 for facilities included in the utility's procurement plan
11847	11847	3 pursuant to this subsection shall not be subject to review
11848	11848	4 under or in any way limited by the provisions of Section
11849	11849	5 16-111(i) of this Act. Nothing in this Section is intended to
11850	11850	6 prohibit a utility from filing for a fuel adjustment clause as
11851	11851	7 is otherwise permitted under Section 9-220 of this Act.
11852	11852	8 (q) If the Illinois Power Agency filed with the
11853	11853	9 Commission, under Section 16-111.5 of this Act, its proposed
11854	11854	10 procurement plan for the period commencing June 1, 2017, and
11855	11855	11 the Commission has not yet entered its final order approving
11856	11856	12 the plan on or before the effective date of this amendatory Act
11857	11857	13 of the 99th General Assembly, then the Illinois Power Agency
11858	11858	14 shall file a notice of withdrawal with the Commission, after
11859	11859	15 the effective date of this amendatory Act of the 99th General
11860	11860	16 Assembly, to withdraw the proposed procurement of renewable
11861	11861	17 energy resources to be approved under the plan, other than the
11862	11862	18 procurement of renewable energy credits from distributed
11863	11863	19 renewable energy generation devices using funds previously
11864	11864	20 collected from electric utilities' retail customers that take
11865	11865	21 service pursuant to electric utilities' hourly pricing tariff
11866	11866	22 or tariffs and, for an electric utility that serves less than
11867	11867	23 100,000 retail customers in the State, other than the
11868	11868	24 procurement of renewable energy credits from distributed
11869	11869	25 renewable energy generation devices. Upon receipt of the
11870	11870	26 notice, the Commission shall enter an order that approves the
11871	11871
11872	11872
11873	11873
11874	11874
11875	11875
11876	11876	HB4687 - 329 - LRB103 36052 LNS 66139 b
11877	11877
11878	11878
11879	11879	HB4687- 330 -LRB103 36052 LNS 66139 b HB4687 - 330 - LRB103 36052 LNS 66139 b
11880	11880	HB4687 - 330 - LRB103 36052 LNS 66139 b
11881	11881	1 withdrawal of the proposed procurement of renewable energy
11882	11882	2 resources from the plan. The initially proposed procurement of
11883	11883	3 renewable energy resources shall not be approved or be the
11884	11884	4 subject of any further hearing, investigation, proceeding, or
11885	11885	5 order of any kind.
11886	11886	6 This amendatory Act of the 99th General Assembly preempts
11887	11887	7 and supersedes any order entered by the Commission that
11888	11888	8 approved the Illinois Power Agency's procurement plan for the
11889	11889	9 period commencing June 1, 2017, to the extent it is
11890	11890	10 inconsistent with the provisions of this amendatory Act of the
11891	11891	11 99th General Assembly. To the extent any previously entered
11892	11892	12 order approved the procurement of renewable energy resources,
11893	11893	13 the portion of that order approving the procurement shall be
11894	11894	14 void, other than the procurement of renewable energy credits
11895	11895	15 from distributed renewable energy generation devices using
11896	11896	16 funds previously collected from electric utilities' retail
11897	11897	17 customers that take service under electric utilities' hourly
11898	11898	18 pricing tariff or tariffs and, for an electric utility that
11899	11899	19 serves less than 100,000 retail customers in the State, other
11900	11900	20 than the procurement of renewable energy credits for
11901	11901	21 distributed renewable energy generation devices.
11902	11902	22 (Source: P.A. 102-662, eff. 9-15-21.)
11903	11903	23 Section 30. The Environmental Protection Act is amended by
11904	11904	24 changing Section 9.15 as follows:
11905	11905
11906	11906
11907	11907
11908	11908
11909	11909
11910	11910	HB4687 - 330 - LRB103 36052 LNS 66139 b
11911	11911
11912	11912
11913	11913	HB4687- 331 -LRB103 36052 LNS 66139 b HB4687 - 331 - LRB103 36052 LNS 66139 b
11914	11914	HB4687 - 331 - LRB103 36052 LNS 66139 b
11915	11915	1 (415 ILCS 5/9.15)
11916	11916	2 Sec. 9.15. Greenhouse gases.
11917	11917	3 (a) An air pollution construction permit shall not be
11918	11918	4 required due to emissions of greenhouse gases if the
11919	11919	5 equipment, site, or source is not subject to regulation, as
11920	11920	6 defined by 40 CFR 52.21, as now or hereafter amended, for
11921	11921	7 greenhouse gases. This exemption does or is otherwise not
11922	11922	8 addressed in this Section or by the Board in regulations for
11923	11923	9 greenhouse gases. These exemptions do not relieve an owner or
11924	11924	10 operator from the obligation to comply with other applicable
11925	11925	11 rules or regulations.
11926	11926	12 (b) An air pollution operating permit shall not be
11927	11927	13 required due to emissions of greenhouse gases if the
11928	11928	14 equipment, site, or source is not subject to regulation, as
11929	11929	15 defined by Section 39.5 of this Act, for greenhouse gases.
11930	11930	16 This exemption does or is otherwise not addressed in this
11931	11931	17 Section or by the Board in regulations for greenhouse gases.
11932	11932	18 These exemptions do not relieve an owner or operator from the
11933	11933	19 obligation to comply with other applicable rules or
11934	11934	20 regulations.
11935	11935	21 (c) Notwithstanding any provision to the contrary in this
11936	11936	22 Section, an air pollution construction or operating permit
11937	11937	23 shall not be required due to emissions of greenhouse gases if
11938	11938	24 any of the following events occur: (Blank).
11939	11939	25 (1) enactment of federal legislation depriving the
11940	11940	26 Administrator of the USEPA of authority to regulate
11941	11941
11942	11942
11943	11943
11944	11944
11945	11945
11946	11946	HB4687 - 331 - LRB103 36052 LNS 66139 b
11947	11947
11948	11948
11949	11949	HB4687- 332 -LRB103 36052 LNS 66139 b HB4687 - 332 - LRB103 36052 LNS 66139 b
11950	11950	HB4687 - 332 - LRB103 36052 LNS 66139 b
11951	11951	1 greenhouse gases under the Clean Air Act;
11952	11952	2 (2) the issuance of any opinion, ruling, judgment,
11953	11953	3 order, or decree by a federal court depriving the
11954	11954	4 Administrator of the USEPA of authority to regulate
11955	11955	5 greenhouse gases under the Clean Air Act; or
11956	11956	6 (3) action by the President of the United States or
11957	11957	7 the President's authorized agent, including the
11958	11958	8 Administrator of the USEPA, to repeal or withdraw the
11959	11959	9 Greenhouse Gas Tailoring Rule (75 Fed. Reg. 31514, June 3,
11960	11960	10 2010).
11961	11961	11 This subsection (c) does not relieve an owner or operator
11962	11962	12 from the obligation to comply with applicable rules or
11963	11963	13 regulations other than those relating to greenhouse gases.
11964	11964	14 (d) If any event listed in subsection (c) of this Section
11965	11965	15 occurs, permits issued after such event shall not impose
11966	11966	16 permit terms or conditions addressing greenhouse gases during
11967	11967	17 the effectiveness of any event listed in subsection (c).
11968	11968	18 (Blank).
11969	11969	19 (e) If an event listed in subsection (c) of this Section
11970	11970	20 occurs, any owner or operator with a permit that includes
11971	11971	21 terms or conditions addressing greenhouse gases may elect to
11972	11972	22 submit an application to the Agency to address a revision or
11973	11973	23 repeal of such terms or conditions. The Agency shall
11974	11974	24 expeditiously process such permit application in accordance
11975	11975	25 with applicable laws and regulations. (Blank).
11976	11976	26 (f) (Blank). As used in this Section:
11977	11977
11978	11978
11979	11979
11980	11980
11981	11981
11982	11982	HB4687 - 332 - LRB103 36052 LNS 66139 b
11983	11983
11984	11984
11985	11985	HB4687- 333 -LRB103 36052 LNS 66139 b HB4687 - 333 - LRB103 36052 LNS 66139 b
11986	11986	HB4687 - 333 - LRB103 36052 LNS 66139 b
11987	11987	1 "Carbon dioxide emission" means the plant annual CO2 total
11988	11988	2 output emission as measured by the United States Environmental
11989	11989	3 Protection Agency in its Emissions & Generation Resource
11990	11990	4 Integrated Database (eGrid), or its successor.
11991	11991	5 "Carbon dioxide equivalent emissions" or "CO2e" means the
11992	11992	6 sum total of the mass amount of emissions in tons per year,
11993	11993	7 calculated by multiplying the mass amount of each of the 6
11994	11994	8 greenhouse gases specified in Section 3.207, in tons per year,
11995	11995	9 by its associated global warming potential as set forth in 40
11996	11996	10 CFR 98, subpart A, table A-1 or its successor, and then adding
11997	11997	11 them all together.
11998	11998	12 "Cogeneration" or "combined heat and power" refers to any
11999	11999	13 system that, either simultaneously or sequentially, produces
12000	12000	14 electricity and useful thermal energy from a single fuel
12001	12001	15 source.
12002	12002	16 "Copollutants" refers to the 6 criteria pollutants that
12003	12003	17 have been identified by the United States Environmental
12004	12004	18 Protection Agency pursuant to the Clean Air Act.
12005	12005	19 "Electric generating unit" or "EGU" means a fossil
12006	12006	20 fuel-fired stationary boiler, combustion turbine, or combined
12007	12007	21 cycle system that serves a generator that has a nameplate
12008	12008	22 capacity greater than 25 MWe and produces electricity for
12009	12009	23 sale.
12010	12010	24 "Environmental justice community" means the definition of
12011	12011	25 that term based on existing methodologies and findings, used
12012	12012	26 and as may be updated by the Illinois Power Agency and its
12013	12013
12014	12014
12015	12015
12016	12016
12017	12017
12018	12018	HB4687 - 333 - LRB103 36052 LNS 66139 b
12019	12019
12020	12020
12021	12021	HB4687- 334 -LRB103 36052 LNS 66139 b HB4687 - 334 - LRB103 36052 LNS 66139 b
12022	12022	HB4687 - 334 - LRB103 36052 LNS 66139 b
12023	12023	1 program administrator in the Illinois Solar for All Program.
12024	12024	2 "Equity investment eligible community" or "eligible
12025	12025	3 community" means the geographic areas throughout Illinois that
12026	12026	4 would most benefit from equitable investments by the State
12027	12027	5 designed to combat discrimination and foster sustainable
12028	12028	6 economic growth. Specifically, eligible community means the
12029	12029	7 following areas:
12030	12030	8 (1) areas where residents have been historically
12031	12031	9 excluded from economic opportunities, including
12032	12032	10 opportunities in the energy sector, as defined as R3 areas
12033	12033	11 pursuant to Section 10-40 of the Cannabis Regulation and
12034	12034	12 Tax Act; and
12035	12035	13 (2) areas where residents have been historically
12036	12036	14 subject to disproportionate burdens of pollution,
12037	12037	15 including pollution from the energy sector, as established
12038	12038	16 by environmental justice communities as defined by the
12039	12039	17 Illinois Power Agency pursuant to the Illinois Power
12040	12040	18 Agency Act, excluding any racial or ethnic indicators.
12041	12041	19 "Equity investment eligible person" or "eligible person"
12042	12042	20 means the persons who would most benefit from equitable
12043	12043	21 investments by the State designed to combat discrimination and
12044	12044	22 foster sustainable economic growth. Specifically, eligible
12045	12045	23 person means the following people:
12046	12046	24 (1) persons whose primary residence is in an equity
12047	12047	25 investment eligible community;
12048	12048	26 (2) persons whose primary residence is in a
12049	12049
12050	12050
12051	12051
12052	12052
12053	12053
12054	12054	HB4687 - 334 - LRB103 36052 LNS 66139 b
12055	12055
12056	12056
12057	12057	HB4687- 335 -LRB103 36052 LNS 66139 b HB4687 - 335 - LRB103 36052 LNS 66139 b
12058	12058	HB4687 - 335 - LRB103 36052 LNS 66139 b
12059	12059	1 municipality, or a county with a population under 100,000,
12060	12060	2 where the closure of an electric generating unit or mine
12061	12061	3 has been publicly announced or the electric generating
12062	12062	4 unit or mine is in the process of closing or closed within
12063	12063	5 the last 5 years;
12064	12064	6 (3) persons who are graduates of or currently enrolled
12065	12065	7 in the foster care system; or
12066	12066	8 (4) persons who were formerly incarcerated.
12067	12067	9 "Existing emissions" means:
12068	12068	10 (1) for CO2e, the total average tons-per-year of CO2e
12069	12069	11 emitted by the EGU or large GHG-emitting unit either in
12070	12070	12 the years 2018 through 2020 or, if the unit was not yet in
12071	12071	13 operation by January 1, 2018, in the first 3 full years of
12072	12072	14 that unit's operation; and
12073	12073	15 (2) for any copollutant, the total average
12074	12074	16 tons-per-year of that copollutant emitted by the EGU or
12075	12075	17 large GHG-emitting unit either in the years 2018 through
12076	12076	18 2020 or, if the unit was not yet in operation by January 1,
12077	12077	19 2018, in the first 3 full years of that unit's operation.
12078	12078	20 "Green hydrogen" means a power plant technology in which
12079	12079	21 an EGU creates electric power exclusively from electrolytic
12080	12080	22 hydrogen, in a manner that produces zero carbon and
12081	12081	23 copollutant emissions, using hydrogen fuel that is
12082	12082	24 electrolyzed using a 100% renewable zero carbon emission
12083	12083	25 energy source.
12084	12084	26 "Large greenhouse gas-emitting unit" or "large
12085	12085
12086	12086
12087	12087
12088	12088
12089	12089
12090	12090	HB4687 - 335 - LRB103 36052 LNS 66139 b
12091	12091
12092	12092
12093	12093	HB4687- 336 -LRB103 36052 LNS 66139 b HB4687 - 336 - LRB103 36052 LNS 66139 b
12094	12094	HB4687 - 336 - LRB103 36052 LNS 66139 b
12095	12095	1 GHG-emitting unit" means a unit that is an electric generating
12096	12096	2 unit or other fossil fuel-fired unit that itself has a
12097	12097	3 nameplate capacity or serves a generator that has a nameplate
12098	12098	4 capacity greater than 25 MWe and that produces electricity,
12099	12099	5 including, but not limited to, coal-fired, coal-derived,
12100	12100	6 oil-fired, natural gas-fired, and cogeneration units.
12101	12101	7 "NOx emission rate" means the plant annual NOx total output
12102	12102	8 emission rate as measured by the United States Environmental
12103	12103	9 Protection Agency in its Emissions & Generation Resource
12104	12104	10 Integrated Database (eGrid), or its successor, in the most
12105	12105	11 recent year for which data is available.
12106	12106	12 "Public greenhouse gas-emitting units" or "public
12107	12107	13 GHG-emitting unit" means large greenhouse gas-emitting units,
12108	12108	14 including EGUs, that are wholly owned, directly or indirectly,
12109	12109	15 by one or more municipalities, municipal corporations, joint
12110	12110	16 municipal electric power agencies, electric cooperatives, or
12111	12111	17 other governmental or nonprofit entities, whether organized
12112	12112	18 and created under the laws of Illinois or another state.
12113	12113	19 "SO2 emission rate" means the "plant annual SO2 total
12114	12114	20 output emission rate" as measured by the United States
12115	12115	21 Environmental Protection Agency in its Emissions & Generation
12116	12116	22 Resource Integrated Database (eGrid), or its successor, in the
12117	12117	23 most recent year for which data is available.
12118	12118	24 (g) (Blank). All EGUs and large greenhouse gas-emitting
12119	12119	25 units that use coal or oil as a fuel and are not public
12120	12120	26 GHG-emitting units shall permanently reduce all CO2e and
12121	12121
12122	12122
12123	12123
12124	12124
12125	12125
12126	12126	HB4687 - 336 - LRB103 36052 LNS 66139 b
12127	12127
12128	12128
12129	12129	HB4687- 337 -LRB103 36052 LNS 66139 b HB4687 - 337 - LRB103 36052 LNS 66139 b
12130	12130	HB4687 - 337 - LRB103 36052 LNS 66139 b
12131	12131	1 copollutant emissions to zero no later than January 1, 2030.
12132	12132	2 (h) (Blank). All EGUs and large greenhouse gas-emitting
12133	12133	3 units that use coal as a fuel and are public GHG-emitting units
12134	12134	4 shall permanently reduce CO2e emissions to zero no later than
12135	12135	5 December 31, 2045. Any source or plant with such units must
12136	12136	6 also reduce their CO2e emissions by 45% from existing
12137	12137	7 emissions by no later than January 1, 2035. If the emissions
12138	12138	8 reduction requirement is not achieved by December 31, 2035,
12139	12139	9 the plant shall retire one or more units or otherwise reduce
12140	12140	10 its CO2e emissions by 45% from existing emissions by June 30,
12141	12141	11 2038.
12142	12142	12 (i) (Blank). All EGUs and large greenhouse gas-emitting
12143	12143	13 units that use gas as a fuel and are not public GHG-emitting
12144	12144	14 units shall permanently reduce all CO2e and copollutant
12145	12145	15 emissions to zero, including through unit retirement or the
12146	12146	16 use of 100% green hydrogen or other similar technology that is
12147	12147	17 commercially proven to achieve zero carbon emissions,
12148	12148	18 according to the following:
12149	12149	19 (1) No later than January 1, 2030: all EGUs and large
12150	12150	20 greenhouse gas-emitting units that have a NOx emissions
12151	12151	21 rate of greater than 0.12 lbs/MWh or a SO2 emission rate of
12152	12152	22 greater than 0.006 lb/MWh, and are located in or within 3
12153	12153	23 miles of an environmental justice community designated as
12154	12154	24 of January 1, 2021 or an equity investment eligible
12155	12155	25 community.
12156	12156	26 (2) No later than January 1, 2040: all EGUs and large
12157	12157
12158	12158
12159	12159
12160	12160
12161	12161
12162	12162	HB4687 - 337 - LRB103 36052 LNS 66139 b
12163	12163
12164	12164
12165	12165	HB4687- 338 -LRB103 36052 LNS 66139 b HB4687 - 338 - LRB103 36052 LNS 66139 b
12166	12166	HB4687 - 338 - LRB103 36052 LNS 66139 b
12167	12167	1 greenhouse gas-emitting units that have a NOx emission
12168	12168	2 rate of greater than 0.12 lbs/MWh or a SO2 emission rate
12169	12169	3 greater than 0.006 lb/MWh, and are not located in or
12170	12170	4 within 3 miles of an environmental justice community
12171	12171	5 designated as of January 1, 2021 or an equity investment
12172	12172	6 eligible community. After January 1, 2035, each such EGU
12173	12173	7 and large greenhouse gas-emitting unit shall reduce its
12174	12174	8 CO2e emissions by at least 50% from its existing emissions
12175	12175	9 for CO2e, and shall be limited in operation to, on average,
12176	12176	10 6 hours or less per day, measured over a calendar year, and
12177	12177	11 shall not run for more than 24 consecutive hours except in
12178	12178	12 emergency conditions, as designated by a Regional
12179	12179	13 Transmission Organization or Independent System Operator.
12180	12180	14 (3) No later than January 1, 2035: all EGUs and large
12181	12181	15 greenhouse gas-emitting units that began operation prior
12182	12182	16 to the effective date of this amendatory Act of the 102nd
12183	12183	17 General Assembly and have a NOx emission rate of less than
12184	12184	18 or equal to 0.12 lb/MWh and a SO2 emission rate less than
12185	12185	19 or equal to 0.006 lb/MWh, and are located in or within 3
12186	12186	20 miles of an environmental justice community designated as
12187	12187	21 of January 1, 2021 or an equity investment eligible
12188	12188	22 community. Each such EGU and large greenhouse gas-emitting
12189	12189	23 unit shall reduce its CO2e emissions by at least 50% from
12190	12190	24 its existing emissions for CO2e no later than January 1,
12191	12191	25 2030.
12192	12192	26 (4) No later than January 1, 2040: All remaining EGUs
12193	12193
12194	12194
12195	12195
12196	12196
12197	12197
12198	12198	HB4687 - 338 - LRB103 36052 LNS 66139 b
12199	12199
12200	12200
12201	12201	HB4687- 339 -LRB103 36052 LNS 66139 b HB4687 - 339 - LRB103 36052 LNS 66139 b
12202	12202	HB4687 - 339 - LRB103 36052 LNS 66139 b
12203	12203	1 and large greenhouse gas-emitting units that have a heat
12204	12204	2 rate greater than or equal to 7000 BTU/kWh. Each such EGU
12205	12205	3 and Large greenhouse gas-emitting unit shall reduce its
12206	12206	4 CO2e emissions by at least 50% from its existing emissions
12207	12207	5 for CO2e no later than January 1, 2035.
12208	12208	6 (5) No later than January 1, 2045: all remaining EGUs
12209	12209	7 and large greenhouse gas-emitting units.
12210	12210	8 (j) (Blank). All EGUs and large greenhouse gas-emitting
12211	12211	9 units that use gas as a fuel and are public GHG-emitting units
12212	12212	10 shall permanently reduce all CO2e and copollutant emissions to
12213	12213	11 zero, including through unit retirement or the use of 100%
12214	12214	12 green hydrogen or other similar technology that is
12215	12215	13 commercially proven to achieve zero carbon emissions by
12216	12216	14 January 1, 2045.
12217	12217	15 (k) (Blank). All EGUs and large greenhouse gas-emitting
12218	12218	16 units that utilize combined heat and power or cogeneration
12219	12219	17 technology shall permanently reduce all CO2e and copollutant
12220	12220	18 emissions to zero, including through unit retirement or the
12221	12221	19 use of 100% green hydrogen or other similar technology that is
12222	12222	20 commercially proven to achieve zero carbon emissions by
12223	12223	21 January 1, 2045.
12224	12224	22 (k-5) (Blank). No EGU or large greenhouse gas-emitting
12225	12225	23 unit that uses gas as a fuel and is not a public GHG-emitting
12226	12226	24 unit may emit, in any 12-month period, CO2e or copollutants in
12227	12227	25 excess of that unit's existing emissions for those pollutants.
12228	12228	26 (l) (Blank). Notwithstanding subsections (g) through
12229	12229
12230	12230
12231	12231
12232	12232
12233	12233
12234	12234	HB4687 - 339 - LRB103 36052 LNS 66139 b
12235	12235
12236	12236
12237	12237	HB4687- 340 -LRB103 36052 LNS 66139 b HB4687 - 340 - LRB103 36052 LNS 66139 b
12238	12238	HB4687 - 340 - LRB103 36052 LNS 66139 b
12239	12239	1 (k-5), large GHG-emitting units including EGUs may temporarily
12240	12240	2 continue emitting CO2e and copollutants after any applicable
12241	12241	3 deadline specified in any of subsections (g) through (k-5) if
12242	12242	4 it has been determined, as described in paragraphs (1) and (2)
12243	12243	5 of this subsection, that ongoing operation of the EGU is
12244	12244	6 necessary to maintain power grid supply and reliability or
12245	12245	7 ongoing operation of large GHG-emitting unit that is not an
12246	12246	8 EGU is necessary to serve as an emergency backup to
12247	12247	9 operations. Up to and including the occurrence of an emission
12248	12248	10 reduction deadline under subsection (i), all EGUs and large
12249	12249	11 GHG-emitting units must comply with the following terms:
12250	12250	12 (1) if an EGU or large GHG-emitting unit that is a
12251	12251	13 participant in a regional transmission organization
12252	12252	14 intends to retire, it must submit documentation to the
12253	12253	15 appropriate regional transmission organization by the
12254	12254	16 appropriate deadline that meets all applicable regulatory
12255	12255	17 requirements necessary to obtain approval to permanently
12256	12256	18 cease operating the large GHG-emitting unit;
12257	12257	19 (2) if any EGU or large GHG-emitting unit that is a
12258	12258	20 participant in a regional transmission organization
12259	12259	21 receives notice that the regional transmission
12260	12260	22 organization has determined that continued operation of
12261	12261	23 the unit is required, the unit may continue operating
12262	12262	24 until the issue identified by the regional transmission
12263	12263	25 organization is resolved. The owner or operator of the
12264	12264	26 unit must cooperate with the regional transmission
12265	12265
12266	12266
12267	12267
12268	12268
12269	12269
12270	12270	HB4687 - 340 - LRB103 36052 LNS 66139 b
12271	12271
12272	12272
12273	12273	HB4687- 341 -LRB103 36052 LNS 66139 b HB4687 - 341 - LRB103 36052 LNS 66139 b
12274	12274	HB4687 - 341 - LRB103 36052 LNS 66139 b
12275	12275	1 organization in resolving the issue and must reduce its
12276	12276	2 emissions to zero, consistent with the requirements under
12277	12277	3 subsection (g), (h), (i), (j), (k), or (k-5), as
12278	12278	4 applicable, as soon as practicable when the issue
12279	12279	5 identified by the regional transmission organization is
12280	12280	6 resolved; and
12281	12281	7 (3) any large GHG-emitting unit that is not a
12282	12282	8 participant in a regional transmission organization shall
12283	12283	9 be allowed to continue emitting CO2e and copollutants
12284	12284	10 after the zero-emission date specified in subsection (g),
12285	12285	11 (h), (i), (j), (k), or (k-5), as applicable, in the
12286	12286	12 capacity of an emergency backup unit if approved by the
12287	12287	13 Illinois Commerce Commission.
12288	12288	14 (m) (Blank). No variance, adjusted standard, or other
12289	12289	15 regulatory relief otherwise available in this Act may be
12290	12290	16 granted to the emissions reduction and elimination obligations
12291	12291	17 in this Section.
12292	12292	18 (n) (Blank). By June 30 of each year, beginning in 2025,
12293	12293	19 the Agency shall prepare and publish on its website a report
12294	12294	20 setting forth the actual greenhouse gas emissions from
12295	12295	21 individual units and the aggregate statewide emissions from
12296	12296	22 all units for the prior year.
12297	12297	23 (o) (Blank). Every 5 years beginning in 2025, the
12298	12298	24 Environmental Protection Agency, Illinois Power Agency, and
12299	12299	25 Illinois Commerce Commission shall jointly prepare, and
12300	12300	26 release publicly, a report to the General Assembly that
12301	12301
12302	12302
12303	12303
12304	12304
12305	12305
12306	12306	HB4687 - 341 - LRB103 36052 LNS 66139 b
12307	12307
12308	12308
12309	12309	HB4687- 342 -LRB103 36052 LNS 66139 b HB4687 - 342 - LRB103 36052 LNS 66139 b
12310	12310	HB4687 - 342 - LRB103 36052 LNS 66139 b
12311	12311	1 examines the State's current progress toward its renewable
12312	12312	2 energy resource development goals, the status of CO2e and
12313	12313	3 copollutant emissions reductions, the current status and
12314	12314	4 progress toward developing and implementing green hydrogen
12315	12315	5 technologies, the current and projected status of electric
12316	12316	6 resource adequacy and reliability throughout the State for the
12317	12317	7 period beginning 5 years ahead, and proposed solutions for any
12318	12318	8 findings. The Environmental Protection Agency, Illinois Power
12319	12319	9 Agency, and Illinois Commerce Commission shall consult PJM
12320	12320	10 Interconnection, LLC and Midcontinent Independent System
12321	12321	11 Operator, Inc., or their respective successor organizations
12322	12322	12 regarding forecasted resource adequacy and reliability needs,
12323	12323	13 anticipated new generation interconnection, new transmission
12324	12324	14 development or upgrades, and any announced large GHG-emitting
12325	12325	15 unit closure dates and include this information in the report.
12326	12326	16 The report shall be released publicly by no later than
12327	12327	17 December 15 of the year it is prepared. If the Environmental
12328	12328	18 Protection Agency, Illinois Power Agency, and Illinois
12329	12329	19 Commerce Commission jointly conclude in the report that the
12330	12330	20 data from the regional grid operators, the pace of renewable
12331	12331	21 energy development, the pace of development of energy storage
12332	12332	22 and demand response utilization, transmission capacity, and
12333	12333	23 the CO2e and copollutant emissions reductions required by
12334	12334	24 subsection (i) or (k-5) reasonably demonstrate that a resource
12335	12335	25 adequacy shortfall will occur, including whether there will be
12336	12336	26 sufficient in-state capacity to meet the zonal requirements of
12337	12337
12338	12338
12339	12339
12340	12340
12341	12341
12342	12342	HB4687 - 342 - LRB103 36052 LNS 66139 b
12343	12343
12344	12344
12345	12345	HB4687- 343 -LRB103 36052 LNS 66139 b HB4687 - 343 - LRB103 36052 LNS 66139 b
12346	12346	HB4687 - 343 - LRB103 36052 LNS 66139 b
12347	12347	1 MISO Zone 4 or the PJM ComEd Zone, per the requirements of the
12348	12348	2 regional transmission organizations, or that the regional
12349	12349	3 transmission operators determine that a reliability violation
12350	12350	4 will occur during the time frame the study is evaluating, then
12351	12351	5 the Illinois Power Agency, in conjunction with the
12352	12352	6 Environmental Protection Agency shall develop a plan to reduce
12353	12353	7 or delay CO2e and copollutant emissions reductions
12354	12354	8 requirements only to the extent and for the duration necessary
12355	12355	9 to meet the resource adequacy and reliability needs of the
12356	12356	10 State, including allowing any plants whose emission reduction
12357	12357	11 deadline has been identified in the plan as creating a
12358	12358	12 reliability concern to continue operating, including operating
12359	12359	13 with reduced emissions or as emergency backup where
12360	12360	14 appropriate. The plan shall also consider the use of renewable
12361	12361	15 energy, energy storage, demand response, transmission
12362	12362	16 development, or other strategies to resolve the identified
12363	12363	17 resource adequacy shortfall or reliability violation.
12364	12364	18 (1) In developing the plan, the Environmental
12365	12365	19 Protection Agency and the Illinois Power Agency shall hold
12366	12366	20 at least one workshop open to, and accessible at a time and
12367	12367	21 place convenient to, the public and shall consider any
12368	12368	22 comments made by stakeholders or the public. Upon
12369	12369	23 development of the plan, copies of the plan shall be
12370	12370	24 posted and made publicly available on the Environmental
12371	12371	25 Protection Agency's, the Illinois Power Agency's, and the
12372	12372	26 Illinois Commerce Commission's websites. All interested
12373	12373
12374	12374
12375	12375
12376	12376
12377	12377
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12379	12379
12380	12380
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12382	12382	HB4687 - 344 - LRB103 36052 LNS 66139 b
12383	12383	1 parties shall have 60 days following the date of posting
12384	12384	2 to provide comment to the Environmental Protection Agency
12385	12385	3 and the Illinois Power Agency on the plan. All comments
12386	12386	4 submitted to the Environmental Protection Agency and the
12387	12387	5 Illinois Power Agency shall be encouraged to be specific,
12388	12388	6 supported by data or other detailed analyses, and, if
12389	12389	7 objecting to all or a portion of the plan, accompanied by
12390	12390	8 specific alternative wording or proposals. All comments
12391	12391	9 shall be posted on the Environmental Protection Agency's,
12392	12392	10 the Illinois Power Agency's, and the Illinois Commerce
12393	12393	11 Commission's websites. Within 30 days following the end of
12394	12394	12 the 60-day review period, the Environmental Protection
12395	12395	13 Agency and the Illinois Power Agency shall revise the plan
12396	12396	14 as necessary based on the comments received and file its
12397	12397	15 revised plan with the Illinois Commerce Commission for
12398	12398	16 approval.
12399	12399	17 (2) Within 60 days after the filing of the revised
12400	12400	18 plan at the Illinois Commerce Commission, any person
12401	12401	19 objecting to the plan shall file an objection with the
12402	12402	20 Illinois Commerce Commission. Within 30 days after the
12403	12403	21 expiration of the comment period, the Illinois Commerce
12404	12404	22 Commission shall determine whether an evidentiary hearing
12405	12405	23 is necessary. The Illinois Commerce Commission shall also
12406	12406	24 host 3 public hearings within 90 days after the plan is
12407	12407	25 filed. Following the evidentiary and public hearings, the
12408	12408	26 Illinois Commerce Commission shall enter its order
12409	12409
12410	12410
12411	12411
12412	12412
12413	12413
12414	12414	HB4687 - 344 - LRB103 36052 LNS 66139 b
12415	12415
12416	12416
12417	12417	HB4687- 345 -LRB103 36052 LNS 66139 b HB4687 - 345 - LRB103 36052 LNS 66139 b
12418	12418	HB4687 - 345 - LRB103 36052 LNS 66139 b
12419	12419
12420	12420
12421	12421
12422	12422
12423	12423
12424	12424	HB4687 - 345 - LRB103 36052 LNS 66139 b