Illinois 2023-2024 Regular Session

Illinois House Bill HB5054 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 HB5054 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. LRB103 39370 JAG 69535 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5054 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: 20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15 Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms. LRB103 39370 JAG 69535 b LRB103 39370 JAG 69535 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5054 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15
4	4	20 ILCS 3855/1-75
5	5	65 ILCS 5/11-13-26
6	6	505 ILCS 147/1
7	7	505 ILCS 147/5
8	8	505 ILCS 147/10
9	9	505 ILCS 147/15
10	10	Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms.
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13	13	A BILL FOR
14	14	HB5054LRB103 39370 JAG 69535 b HB5054 LRB103 39370 JAG 69535 b
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16	16	1 AN ACT concerning agriculture.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 5. The Illinois Power Agency Act is amended by
20	20	5 changing Section 1-75 as follows:
21	21	6 (20 ILCS 3855/1-75)
22	22	7 Sec. 1-75. Planning and Procurement Bureau. The Planning
23	23	8 and Procurement Bureau has the following duties and
24	24	9 responsibilities:
25	25	10 (a) The Planning and Procurement Bureau shall each year,
26	26	11 beginning in 2008, develop procurement plans and conduct
27	27	12 competitive procurement processes in accordance with the
28	28	13 requirements of Section 16-111.5 of the Public Utilities Act
29	29	14 for the eligible retail customers of electric utilities that
30	30	15 on December 31, 2005 provided electric service to at least
31	31	16 100,000 customers in Illinois. Beginning with the delivery
32	32	17 year commencing on June 1, 2017, the Planning and Procurement
33	33	18 Bureau shall develop plans and processes for the procurement
34	34	19 of zero emission credits from zero emission facilities in
35	35	20 accordance with the requirements of subsection (d-5) of this
36	36	21 Section. Beginning on the effective date of this amendatory
37	37	22 Act of the 102nd General Assembly, the Planning and
38	38	23 Procurement Bureau shall develop plans and processes for the
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42	42	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5054 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED:
43	43	20 ILCS 3855/1-7565 ILCS 5/11-13-26505 ILCS 147/1505 ILCS 147/5505 ILCS 147/10505 ILCS 147/15 20 ILCS 3855/1-75 65 ILCS 5/11-13-26 505 ILCS 147/1 505 ILCS 147/5 505 ILCS 147/10 505 ILCS 147/15
44	44	20 ILCS 3855/1-75
45	45	65 ILCS 5/11-13-26
46	46	505 ILCS 147/1
47	47	505 ILCS 147/5
48	48	505 ILCS 147/10
49	49	505 ILCS 147/15
50	50	Amends the Renewable Energy Facilities Agricultural Impact Mitigation Act. Changes the short title of the Act to the Agricultural Impact Mitigation Act. Makes conforming changes in the Illinois Power Agency Act and the Illinois Municipal Code. Makes the Agricultural Impact Mitigation Act's agricultural impact mitigation agreement provisions applicable to commercial wind energy facilities, battery energy storage systems, pipelines, and electric lines. Describes information to be included in the agricultural impact mitigation agreements. Requires each construction or destruction project to undergo inspection by an agricultural inspector. Authorizes the Department of Agriculture to temporarily halt construction, deconstruction, or other activities on a project upon its finding of noncompliance with the provisions of an agricultural impact mitigation agreement. Defines terms.
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53	53	A BILL FOR
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59	59	20 ILCS 3855/1-75
60	60	65 ILCS 5/11-13-26
61	61	505 ILCS 147/1
62	62	505 ILCS 147/5
63	63	505 ILCS 147/10
64	64	505 ILCS 147/15
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83	83	1 procurement of carbon mitigation credits from carbon-free
84	84	2 energy resources in accordance with the requirements of
85	85	3 subsection (d-10) of this Section. The Planning and
86	86	4 Procurement Bureau shall also develop procurement plans and
87	87	5 conduct competitive procurement processes in accordance with
88	88	6 the requirements of Section 16-111.5 of the Public Utilities
89	89	7 Act for the eligible retail customers of small
90	90	8 multi-jurisdictional electric utilities that (i) on December
91	91	9 31, 2005 served less than 100,000 customers in Illinois and
92	92	10 (ii) request a procurement plan for their Illinois
93	93	11 jurisdictional load. This Section shall not apply to a small
94	94	12 multi-jurisdictional utility until such time as a small
95	95	13 multi-jurisdictional utility requests the Agency to prepare a
96	96	14 procurement plan for their Illinois jurisdictional load. For
97	97	15 the purposes of this Section, the term "eligible retail
98	98	16 customers" has the same definition as found in Section
99	99	17 16-111.5(a) of the Public Utilities Act.
100	100	18 Beginning with the plan or plans to be implemented in the
101	101	19 2017 delivery year, the Agency shall no longer include the
102	102	20 procurement of renewable energy resources in the annual
103	103	21 procurement plans required by this subsection (a), except as
104	104	22 provided in subsection (q) of Section 16-111.5 of the Public
105	105	23 Utilities Act, and shall instead develop a long-term renewable
106	106	24 resources procurement plan in accordance with subsection (c)
107	107	25 of this Section and Section 16-111.5 of the Public Utilities
108	108	26 Act.
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119	119	1 In accordance with subsection (c-5) of this Section, the
120	120	2 Planning and Procurement Bureau shall oversee the procurement
121	121	3 by electric utilities that served more than 300,000 retail
122	122	4 customers in this State as of January 1, 2019 of renewable
123	123	5 energy credits from new utility-scale solar projects to be
124	124	6 installed, along with energy storage facilities, at or
125	125	7 adjacent to the sites of electric generating facilities that,
126	126	8 as of January 1, 2016, burned coal as their primary fuel
127	127	9 source.
128	128	10 (1) The Agency shall each year, beginning in 2008, as
129	129	11 needed, issue a request for qualifications for experts or
130	130	12 expert consulting firms to develop the procurement plans
131	131	13 in accordance with Section 16-111.5 of the Public
132	132	14 Utilities Act. In order to qualify an expert or expert
133	133	15 consulting firm must have:
134	134	16 (A) direct previous experience assembling
135	135	17 large-scale power supply plans or portfolios for
136	136	18 end-use customers;
137	137	19 (B) an advanced degree in economics, mathematics,
138	138	20 engineering, risk management, or a related area of
139	139	21 study;
140	140	22 (C) 10 years of experience in the electricity
141	141	23 sector, including managing supply risk;
142	142	24 (D) expertise in wholesale electricity market
143	143	25 rules, including those established by the Federal
144	144	26 Energy Regulatory Commission and regional transmission
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155	155	1 organizations;
156	156	2 (E) expertise in credit protocols and familiarity
157	157	3 with contract protocols;
158	158	4 (F) adequate resources to perform and fulfill the
159	159	5 required functions and responsibilities; and
160	160	6 (G) the absence of a conflict of interest and
161	161	7 inappropriate bias for or against potential bidders or
162	162	8 the affected electric utilities.
163	163	9 (2) The Agency shall each year, as needed, issue a
164	164	10 request for qualifications for a procurement administrator
165	165	11 to conduct the competitive procurement processes in
166	166	12 accordance with Section 16-111.5 of the Public Utilities
167	167	13 Act. In order to qualify an expert or expert consulting
168	168	14 firm must have:
169	169	15 (A) direct previous experience administering a
170	170	16 large-scale competitive procurement process;
171	171	17 (B) an advanced degree in economics, mathematics,
172	172	18 engineering, or a related area of study;
173	173	19 (C) 10 years of experience in the electricity
174	174	20 sector, including risk management experience;
175	175	21 (D) expertise in wholesale electricity market
176	176	22 rules, including those established by the Federal
177	177	23 Energy Regulatory Commission and regional transmission
178	178	24 organizations;
179	179	25 (E) expertise in credit and contract protocols;
180	180	26 (F) adequate resources to perform and fulfill the
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191	191	1 required functions and responsibilities; and
192	192	2 (G) the absence of a conflict of interest and
193	193	3 inappropriate bias for or against potential bidders or
194	194	4 the affected electric utilities.
195	195	5 (3) The Agency shall provide affected utilities and
196	196	6 other interested parties with the lists of qualified
197	197	7 experts or expert consulting firms identified through the
198	198	8 request for qualifications processes that are under
199	199	9 consideration to develop the procurement plans and to
200	200	10 serve as the procurement administrator. The Agency shall
201	201	11 also provide each qualified expert's or expert consulting
202	202	12 firm's response to the request for qualifications. All
203	203	13 information provided under this subparagraph shall also be
204	204	14 provided to the Commission. The Agency may provide by rule
205	205	15 for fees associated with supplying the information to
206	206	16 utilities and other interested parties. These parties
207	207	17 shall, within 5 business days, notify the Agency in
208	208	18 writing if they object to any experts or expert consulting
209	209	19 firms on the lists. Objections shall be based on:
210	210	20 (A) failure to satisfy qualification criteria;
211	211	21 (B) identification of a conflict of interest; or
212	212	22 (C) evidence of inappropriate bias for or against
213	213	23 potential bidders or the affected utilities.
214	214	24 The Agency shall remove experts or expert consulting
215	215	25 firms from the lists within 10 days if there is a
216	216	26 reasonable basis for an objection and provide the updated
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227	227	1 lists to the affected utilities and other interested
228	228	2 parties. If the Agency fails to remove an expert or expert
229	229	3 consulting firm from a list, an objecting party may seek
230	230	4 review by the Commission within 5 days thereafter by
231	231	5 filing a petition, and the Commission shall render a
232	232	6 ruling on the petition within 10 days. There is no right of
233	233	7 appeal of the Commission's ruling.
234	234	8 (4) The Agency shall issue requests for proposals to
235	235	9 the qualified experts or expert consulting firms to
236	236	10 develop a procurement plan for the affected utilities and
237	237	11 to serve as procurement administrator.
238	238	12 (5) The Agency shall select an expert or expert
239	239	13 consulting firm to develop procurement plans based on the
240	240	14 proposals submitted and shall award contracts of up to 5
241	241	15 years to those selected.
242	242	16 (6) The Agency shall select an expert or expert
243	243	17 consulting firm, with approval of the Commission, to serve
244	244	18 as procurement administrator based on the proposals
245	245	19 submitted. If the Commission rejects, within 5 days, the
246	246	20 Agency's selection, the Agency shall submit another
247	247	21 recommendation within 3 days based on the proposals
248	248	22 submitted. The Agency shall award a 5-year contract to the
249	249	23 expert or expert consulting firm so selected with
250	250	24 Commission approval.
251	251	25 (b) The experts or expert consulting firms retained by the
252	252	26 Agency shall, as appropriate, prepare procurement plans, and
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263	263	1 conduct a competitive procurement process as prescribed in
264	264	2 Section 16-111.5 of the Public Utilities Act, to ensure
265	265	3 adequate, reliable, affordable, efficient, and environmentally
266	266	4 sustainable electric service at the lowest total cost over
267	267	5 time, taking into account any benefits of price stability, for
268	268	6 eligible retail customers of electric utilities that on
269	269	7 December 31, 2005 provided electric service to at least
270	270	8 100,000 customers in the State of Illinois, and for eligible
271	271	9 Illinois retail customers of small multi-jurisdictional
272	272	10 electric utilities that (i) on December 31, 2005 served less
273	273	11 than 100,000 customers in Illinois and (ii) request a
274	274	12 procurement plan for their Illinois jurisdictional load.
275	275	13 (c) Renewable portfolio standard.
276	276	14 (1)(A) The Agency shall develop a long-term renewable
277	277	15 resources procurement plan that shall include procurement
278	278	16 programs and competitive procurement events necessary to
279	279	17 meet the goals set forth in this subsection (c). The
280	280	18 initial long-term renewable resources procurement plan
281	281	19 shall be released for comment no later than 160 days after
282	282	20 June 1, 2017 (the effective date of Public Act 99-906).
283	283	21 The Agency shall review, and may revise on an expedited
284	284	22 basis, the long-term renewable resources procurement plan
285	285	23 at least every 2 years, which shall be conducted in
286	286	24 conjunction with the procurement plan under Section
287	287	25 16-111.5 of the Public Utilities Act to the extent
288	288	26 practicable to minimize administrative expense. No later
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299	299	1 than 120 days after the effective date of this amendatory
300	300	2 Act of the 103rd General Assembly, the Agency shall
301	301	3 release for comment a revision to the long-term renewable
302	302	4 resources procurement plan, updating elements of the most
303	303	5 recently approved plan as needed to comply with this
304	304	6 amendatory Act of the 103rd General Assembly, and any
305	305	7 long-term renewable resources procurement plan update
306	306	8 published by the Agency but not yet approved by the
307	307	9 Illinois Commerce Commission shall be withdrawn. The
308	308	10 long-term renewable resources procurement plans shall be
309	309	11 subject to review and approval by the Commission under
310	310	12 Section 16-111.5 of the Public Utilities Act.
311	311	13 (B) Subject to subparagraph (F) of this paragraph (1),
312	312	14 the long-term renewable resources procurement plan shall
313	313	15 attempt to meet the goals for procurement of renewable
314	314	16 energy credits at levels of at least the following overall
315	315	17 percentages: 13% by the 2017 delivery year; increasing by
316	316	18 at least 1.5% each delivery year thereafter to at least
317	317	19 25% by the 2025 delivery year; increasing by at least 3%
318	318	20 each delivery year thereafter to at least 40% by the 2030
319	319	21 delivery year, and continuing at no less than 40% for each
320	320	22 delivery year thereafter. The Agency shall attempt to
321	321	23 procure 50% by delivery year 2040. The Agency shall
322	322	24 determine the annual increase between delivery year 2030
323	323	25 and delivery year 2040, if any, taking into account energy
324	324	26 demand, other energy resources, and other public policy
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335	335	1 goals. In the event of a conflict between these goals and
336	336	2 the new wind, new photovoltaic, and hydropower procurement
337	337	3 requirements described in items (i) through (iii) of
338	338	4 subparagraph (C) of this paragraph (1), the long-term plan
339	339	5 shall prioritize compliance with the new wind, new
340	340	6 photovoltaic, and hydropower procurement requirements
341	341	7 described in items (i) through (iii) of subparagraph (C)
342	342	8 of this paragraph (1) over the annual percentage targets
343	343	9 described in this subparagraph (B). The Agency shall not
344	344	10 comply with the annual percentage targets described in
345	345	11 this subparagraph (B) by procuring renewable energy
346	346	12 credits that are unlikely to lead to the development of
347	347	13 new renewable resources or new, modernized, or retooled
348	348	14 hydropower facilities.
349	349	15 For the delivery year beginning June 1, 2017, the
350	350	16 procurement plan shall attempt to include, subject to the
351	351	17 prioritization outlined in this subparagraph (B),
352	352	18 cost-effective renewable energy resources equal to at
353	353	19 least 13% of each utility's load for eligible retail
354	354	20 customers and 13% of the applicable portion of each
355	355	21 utility's load for retail customers who are not eligible
356	356	22 retail customers, which applicable portion shall equal 50%
357	357	23 of the utility's load for retail customers who are not
358	358	24 eligible retail customers on February 28, 2017.
359	359	25 For the delivery year beginning June 1, 2018, the
360	360	26 procurement plan shall attempt to include, subject to the
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371	371	1 prioritization outlined in this subparagraph (B),
372	372	2 cost-effective renewable energy resources equal to at
373	373	3 least 14.5% of each utility's load for eligible retail
374	374	4 customers and 14.5% of the applicable portion of each
375	375	5 utility's load for retail customers who are not eligible
376	376	6 retail customers, which applicable portion shall equal 75%
377	377	7 of the utility's load for retail customers who are not
378	378	8 eligible retail customers on February 28, 2017.
379	379	9 For the delivery year beginning June 1, 2019, and for
380	380	10 each year thereafter, the procurement plans shall attempt
381	381	11 to include, subject to the prioritization outlined in this
382	382	12 subparagraph (B), cost-effective renewable energy
383	383	13 resources equal to a minimum percentage of each utility's
384	384	14 load for all retail customers as follows: 16% by June 1,
385	385	15 2019; increasing by 1.5% each year thereafter to 25% by
386	386	16 June 1, 2025; and 25% by June 1, 2026; increasing by at
387	387	17 least 3% each delivery year thereafter to at least 40% by
388	388	18 the 2030 delivery year, and continuing at no less than 40%
389	389	19 for each delivery year thereafter. The Agency shall
390	390	20 attempt to procure 50% by delivery year 2040. The Agency
391	391	21 shall determine the annual increase between delivery year
392	392	22 2030 and delivery year 2040, if any, taking into account
393	393	23 energy demand, other energy resources, and other public
394	394	24 policy goals.
395	395	25 For each delivery year, the Agency shall first
396	396	26 recognize each utility's obligations for that delivery
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407	407	1 year under existing contracts. Any renewable energy
408	408	2 credits under existing contracts, including renewable
409	409	3 energy credits as part of renewable energy resources,
410	410	4 shall be used to meet the goals set forth in this
411	411	5 subsection (c) for the delivery year.
412	412	6 (C) The long-term renewable resources procurement plan
413	413	7 described in subparagraph (A) of this paragraph (1) shall
414	414	8 include the procurement of renewable energy credits from
415	415	9 new projects pursuant to the following terms:
416	416	10 (i) At least 10,000,000 renewable energy credits
417	417	11 delivered annually by the end of the 2021 delivery
418	418	12 year, and increasing ratably to reach 45,000,000
419	419	13 renewable energy credits delivered annually from new
420	420	14 wind and solar projects by the end of delivery year
421	421	15 2030 such that the goals in subparagraph (B) of this
422	422	16 paragraph (1) are met entirely by procurements of
423	423	17 renewable energy credits from new wind and
424	424	18 photovoltaic projects. Of that amount, to the extent
425	425	19 possible, the Agency shall procure 45% from wind and
426	426	20 hydropower projects and 55% from photovoltaic
427	427	21 projects. Of the amount to be procured from
428	428	22 photovoltaic projects, the Agency shall procure: at
429	429	23 least 50% from solar photovoltaic projects using the
430	430	24 program outlined in subparagraph (K) of this paragraph
431	431	25 (1) from distributed renewable energy generation
432	432	26 devices or community renewable generation projects; at
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443	443	1 least 47% from utility-scale solar projects; at least
444	444	2 3% from brownfield site photovoltaic projects that are
445	445	3 not community renewable generation projects.
446	446	4 In developing the long-term renewable resources
447	447	5 procurement plan, the Agency shall consider other
448	448	6 approaches, in addition to competitive procurements,
449	449	7 that can be used to procure renewable energy credits
450	450	8 from brownfield site photovoltaic projects and thereby
451	451	9 help return blighted or contaminated land to
452	452	10 productive use while enhancing public health and the
453	453	11 well-being of Illinois residents, including those in
454	454	12 environmental justice communities, as defined using
455	455	13 existing methodologies and findings used by the Agency
456	456	14 and its Administrator in its Illinois Solar for All
457	457	15 Program. The Agency shall also consider other
458	458	16 approaches, in addition to competitive procurements,
459	459	17 to procure renewable energy credits from new and
460	460	18 existing hydropower facilities to support the
461	461	19 development and maintenance of these facilities. The
462	462	20 Agency shall explore options to convert existing dams
463	463	21 but shall not consider approaches to develop new dams
464	464	22 where they do not already exist.
465	465	23 (ii) In any given delivery year, if forecasted
466	466	24 expenses are less than the maximum budget available
467	467	25 under subparagraph (E) of this paragraph (1), the
468	468	26 Agency shall continue to procure new renewable energy
469	469
470	470
471	471
472	472
473	473
474	474	HB5054 - 12 - LRB103 39370 JAG 69535 b
475	475
476	476
477	477	HB5054- 13 -LRB103 39370 JAG 69535 b HB5054 - 13 - LRB103 39370 JAG 69535 b
478	478	HB5054 - 13 - LRB103 39370 JAG 69535 b
479	479	1 credits until that budget is exhausted in the manner
480	480	2 outlined in item (i) of this subparagraph (C).
481	481	3 (iii) For purposes of this Section:
482	482	4 "New wind projects" means wind renewable energy
483	483	5 facilities that are energized after June 1, 2017 for
484	484	6 the delivery year commencing June 1, 2017.
485	485	7 "New photovoltaic projects" means photovoltaic
486	486	8 renewable energy facilities that are energized after
487	487	9 June 1, 2017. Photovoltaic projects developed under
488	488	10 Section 1-56 of this Act shall not apply towards the
489	489	11 new photovoltaic project requirements in this
490	490	12 subparagraph (C).
491	491	13 For purposes of calculating whether the Agency has
492	492	14 procured enough new wind and solar renewable energy
493	493	15 credits required by this subparagraph (C), renewable
494	494	16 energy facilities that have a multi-year renewable
495	495	17 energy credit delivery contract with the utility
496	496	18 through at least delivery year 2030 shall be
497	497	19 considered new, however no renewable energy credits
498	498	20 from contracts entered into before June 1, 2021 shall
499	499	21 be used to calculate whether the Agency has procured
500	500	22 the correct proportion of new wind and new solar
501	501	23 contracts described in this subparagraph (C) for
502	502	24 delivery year 2021 and thereafter.
503	503	25 (D) Renewable energy credits shall be cost effective.
504	504	26 For purposes of this subsection (c), "cost effective"
505	505
506	506
507	507
508	508
509	509
510	510	HB5054 - 13 - LRB103 39370 JAG 69535 b
511	511
512	512
513	513	HB5054- 14 -LRB103 39370 JAG 69535 b HB5054 - 14 - LRB103 39370 JAG 69535 b
514	514	HB5054 - 14 - LRB103 39370 JAG 69535 b
515	515	1 means that the costs of procuring renewable energy
516	516	2 resources do not cause the limit stated in subparagraph
517	517	3 (E) of this paragraph (1) to be exceeded and, for
518	518	4 renewable energy credits procured through a competitive
519	519	5 procurement event, do not exceed benchmarks based on
520	520	6 market prices for like products in the region. For
521	521	7 purposes of this subsection (c), "like products" means
522	522	8 contracts for renewable energy credits from the same or
523	523	9 substantially similar technology, same or substantially
524	524	10 similar vintage (new or existing), the same or
525	525	11 substantially similar quantity, and the same or
526	526	12 substantially similar contract length and structure.
527	527	13 Benchmarks shall reflect development, financing, or
528	528	14 related costs resulting from requirements imposed through
529	529	15 other provisions of State law, including, but not limited
530	530	16 to, requirements in subparagraphs (P) and (Q) of this
531	531	17 paragraph (1) and the Renewable Energy Facilities
532	532	18 Agricultural Impact Mitigation Act. Confidential
533	533	19 benchmarks shall be developed by the procurement
534	534	20 administrator, in consultation with the Commission staff,
535	535	21 Agency staff, and the procurement monitor and shall be
536	536	22 subject to Commission review and approval. If price
537	537	23 benchmarks for like products in the region are not
538	538	24 available, the procurement administrator shall establish
539	539	25 price benchmarks based on publicly available data on
540	540	26 regional technology costs and expected current and future
541	541
542	542
543	543
544	544
545	545
546	546	HB5054 - 14 - LRB103 39370 JAG 69535 b
547	547
548	548
549	549	HB5054- 15 -LRB103 39370 JAG 69535 b HB5054 - 15 - LRB103 39370 JAG 69535 b
550	550	HB5054 - 15 - LRB103 39370 JAG 69535 b
551	551	1 regional energy prices. The benchmarks in this Section
552	552	2 shall not be used to curtail or otherwise reduce
553	553	3 contractual obligations entered into by or through the
554	554	4 Agency prior to June 1, 2017 (the effective date of Public
555	555	5 Act 99-906).
556	556	6 (E) For purposes of this subsection (c), the required
557	557	7 procurement of cost-effective renewable energy resources
558	558	8 for a particular year commencing prior to June 1, 2017
559	559	9 shall be measured as a percentage of the actual amount of
560	560	10 electricity (megawatt-hours) supplied by the electric
561	561	11 utility to eligible retail customers in the delivery year
562	562	12 ending immediately prior to the procurement, and, for
563	563	13 delivery years commencing on and after June 1, 2017, the
564	564	14 required procurement of cost-effective renewable energy
565	565	15 resources for a particular year shall be measured as a
566	566	16 percentage of the actual amount of electricity
567	567	17 (megawatt-hours) delivered by the electric utility in the
568	568	18 delivery year ending immediately prior to the procurement,
569	569	19 to all retail customers in its service territory. For
570	570	20 purposes of this subsection (c), the amount paid per
571	571	21 kilowatthour means the total amount paid for electric
572	572	22 service expressed on a per kilowatthour basis. For
573	573	23 purposes of this subsection (c), the total amount paid for
574	574	24 electric service includes without limitation amounts paid
575	575	25 for supply, transmission, capacity, distribution,
576	576	26 surcharges, and add-on taxes.
577	577
578	578
579	579
580	580
581	581
582	582	HB5054 - 15 - LRB103 39370 JAG 69535 b
583	583
584	584
585	585	HB5054- 16 -LRB103 39370 JAG 69535 b HB5054 - 16 - LRB103 39370 JAG 69535 b
586	586	HB5054 - 16 - LRB103 39370 JAG 69535 b
587	587	1 Notwithstanding the requirements of this subsection
588	588	2 (c), the total of renewable energy resources procured
589	589	3 under the procurement plan for any single year shall be
590	590	4 subject to the limitations of this subparagraph (E). Such
591	591	5 procurement shall be reduced for all retail customers
592	592	6 based on the amount necessary to limit the annual
593	593	7 estimated average net increase due to the costs of these
594	594	8 resources included in the amounts paid by eligible retail
595	595	9 customers in connection with electric service to no more
596	596	10 than 4.25% of the amount paid per kilowatthour by those
597	597	11 customers during the year ending May 31, 2009. To arrive
598	598	12 at a maximum dollar amount of renewable energy resources
599	599	13 to be procured for the particular delivery year, the
600	600	14 resulting per kilowatthour amount shall be applied to the
601	601	15 actual amount of kilowatthours of electricity delivered,
602	602	16 or applicable portion of such amount as specified in
603	603	17 paragraph (1) of this subsection (c), as applicable, by
604	604	18 the electric utility in the delivery year immediately
605	605	19 prior to the procurement to all retail customers in its
606	606	20 service territory. The calculations required by this
607	607	21 subparagraph (E) shall be made only once for each delivery
608	608	22 year at the time that the renewable energy resources are
609	609	23 procured. Once the determination as to the amount of
610	610	24 renewable energy resources to procure is made based on the
611	611	25 calculations set forth in this subparagraph (E) and the
612	612	26 contracts procuring those amounts are executed, no
613	613
614	614
615	615
616	616
617	617
618	618	HB5054 - 16 - LRB103 39370 JAG 69535 b
619	619
620	620
621	621	HB5054- 17 -LRB103 39370 JAG 69535 b HB5054 - 17 - LRB103 39370 JAG 69535 b
622	622	HB5054 - 17 - LRB103 39370 JAG 69535 b
623	623	1 subsequent rate impact determinations shall be made and no
624	624	2 adjustments to those contract amounts shall be allowed.
625	625	3 All costs incurred under such contracts shall be fully
626	626	4 recoverable by the electric utility as provided in this
627	627	5 Section.
628	628	6 (F) If the limitation on the amount of renewable
629	629	7 energy resources procured in subparagraph (E) of this
630	630	8 paragraph (1) prevents the Agency from meeting all of the
631	631	9 goals in this subsection (c), the Agency's long-term plan
632	632	10 shall prioritize compliance with the requirements of this
633	633	11 subsection (c) regarding renewable energy credits in the
634	634	12 following order:
635	635	13 (i) renewable energy credits under existing
636	636	14 contractual obligations as of June 1, 2021;
637	637	15 (i-5) funding for the Illinois Solar for All
638	638	16 Program, as described in subparagraph (O) of this
639	639	17 paragraph (1);
640	640	18 (ii) renewable energy credits necessary to comply
641	641	19 with the new wind and new photovoltaic procurement
642	642	20 requirements described in items (i) through (iii) of
643	643	21 subparagraph (C) of this paragraph (1); and
644	644	22 (iii) renewable energy credits necessary to meet
645	645	23 the remaining requirements of this subsection (c).
646	646	24 (G) The following provisions shall apply to the
647	647	25 Agency's procurement of renewable energy credits under
648	648	26 this subsection (c):
649	649
650	650
651	651
652	652
653	653
654	654	HB5054 - 17 - LRB103 39370 JAG 69535 b
655	655
656	656
657	657	HB5054- 18 -LRB103 39370 JAG 69535 b HB5054 - 18 - LRB103 39370 JAG 69535 b
658	658	HB5054 - 18 - LRB103 39370 JAG 69535 b
659	659	1 (i) Notwithstanding whether a long-term renewable
660	660	2 resources procurement plan has been approved, the
661	661	3 Agency shall conduct an initial forward procurement
662	662	4 for renewable energy credits from new utility-scale
663	663	5 wind projects within 160 days after June 1, 2017 (the
664	664	6 effective date of Public Act 99-906). For the purposes
665	665	7 of this initial forward procurement, the Agency shall
666	666	8 solicit 15-year contracts for delivery of 1,000,000
667	667	9 renewable energy credits delivered annually from new
668	668	10 utility-scale wind projects to begin delivery on June
669	669	11 1, 2019, if available, but not later than June 1, 2021,
670	670	12 unless the project has delays in the establishment of
671	671	13 an operating interconnection with the applicable
672	672	14 transmission or distribution system as a result of the
673	673	15 actions or inactions of the transmission or
674	674	16 distribution provider, or other causes for force
675	675	17 majeure as outlined in the procurement contract, in
676	676	18 which case, not later than June 1, 2022. Payments to
677	677	19 suppliers of renewable energy credits shall commence
678	678	20 upon delivery. Renewable energy credits procured under
679	679	21 this initial procurement shall be included in the
680	680	22 Agency's long-term plan and shall apply to all
681	681	23 renewable energy goals in this subsection (c).
682	682	24 (ii) Notwithstanding whether a long-term renewable
683	683	25 resources procurement plan has been approved, the
684	684	26 Agency shall conduct an initial forward procurement
685	685
686	686
687	687
688	688
689	689
690	690	HB5054 - 18 - LRB103 39370 JAG 69535 b
691	691
692	692
693	693	HB5054- 19 -LRB103 39370 JAG 69535 b HB5054 - 19 - LRB103 39370 JAG 69535 b
694	694	HB5054 - 19 - LRB103 39370 JAG 69535 b
695	695	1 for renewable energy credits from new utility-scale
696	696	2 solar projects and brownfield site photovoltaic
697	697	3 projects within one year after June 1, 2017 (the
698	698	4 effective date of Public Act 99-906). For the purposes
699	699	5 of this initial forward procurement, the Agency shall
700	700	6 solicit 15-year contracts for delivery of 1,000,000
701	701	7 renewable energy credits delivered annually from new
702	702	8 utility-scale solar projects and brownfield site
703	703	9 photovoltaic projects to begin delivery on June 1,
704	704	10 2019, if available, but not later than June 1, 2021,
705	705	11 unless the project has delays in the establishment of
706	706	12 an operating interconnection with the applicable
707	707	13 transmission or distribution system as a result of the
708	708	14 actions or inactions of the transmission or
709	709	15 distribution provider, or other causes for force
710	710	16 majeure as outlined in the procurement contract, in
711	711	17 which case, not later than June 1, 2022. The Agency may
712	712	18 structure this initial procurement in one or more
713	713	19 discrete procurement events. Payments to suppliers of
714	714	20 renewable energy credits shall commence upon delivery.
715	715	21 Renewable energy credits procured under this initial
716	716	22 procurement shall be included in the Agency's
717	717	23 long-term plan and shall apply to all renewable energy
718	718	24 goals in this subsection (c).
719	719	25 (iii) Notwithstanding whether the Commission has
720	720	26 approved the periodic long-term renewable resources
721	721
722	722
723	723
724	724
725	725
726	726	HB5054 - 19 - LRB103 39370 JAG 69535 b
727	727
728	728
729	729	HB5054- 20 -LRB103 39370 JAG 69535 b HB5054 - 20 - LRB103 39370 JAG 69535 b
730	730	HB5054 - 20 - LRB103 39370 JAG 69535 b
731	731	1 procurement plan revision described in Section
732	732	2 16-111.5 of the Public Utilities Act, the Agency shall
733	733	3 conduct at least one subsequent forward procurement
734	734	4 for renewable energy credits from new utility-scale
735	735	5 wind projects, new utility-scale solar projects, and
736	736	6 new brownfield site photovoltaic projects within 240
737	737	7 days after the effective date of this amendatory Act
738	738	8 of the 102nd General Assembly in quantities necessary
739	739	9 to meet the requirements of subparagraph (C) of this
740	740	10 paragraph (1) through the delivery year beginning June
741	741	11 1, 2021.
742	742	12 (iv) Notwithstanding whether the Commission has
743	743	13 approved the periodic long-term renewable resources
744	744	14 procurement plan revision described in Section
745	745	15 16-111.5 of the Public Utilities Act, the Agency shall
746	746	16 open capacity for each category in the Adjustable
747	747	17 Block program within 90 days after the effective date
748	748	18 of this amendatory Act of the 102nd General Assembly
749	749	19 manner:
750	750	20 (1) The Agency shall open the first block of
751	751	21 annual capacity for the category described in item
752	752	22 (i) of subparagraph (K) of this paragraph (1). The
753	753	23 first block of annual capacity for item (i) shall
754	754	24 be for at least 75 megawatts of total nameplate
755	755	25 capacity. The price of the renewable energy credit
756	756	26 for this block of capacity shall be 4% less than
757	757
758	758
759	759
760	760
761	761
762	762	HB5054 - 20 - LRB103 39370 JAG 69535 b
763	763
764	764
765	765	HB5054- 21 -LRB103 39370 JAG 69535 b HB5054 - 21 - LRB103 39370 JAG 69535 b
766	766	HB5054 - 21 - LRB103 39370 JAG 69535 b
767	767	1 the price of the last open block in this category.
768	768	2 Projects on a waitlist shall be awarded contracts
769	769	3 first in the order in which they appear on the
770	770	4 waitlist. Notwithstanding anything to the
771	771	5 contrary, for those renewable energy credits that
772	772	6 qualify and are procured under this subitem (1) of
773	773	7 this item (iv), the renewable energy credit
774	774	8 delivery contract value shall be paid in full,
775	775	9 based on the estimated generation during the first
776	776	10 15 years of operation, by the contracting
777	777	11 utilities at the time that the facility producing
778	778	12 the renewable energy credits is interconnected at
779	779	13 the distribution system level of the utility and
780	780	14 verified as energized and in compliance by the
781	781	15 Program Administrator. The electric utility shall
782	782	16 receive and retire all renewable energy credits
783	783	17 generated by the project for the first 15 years of
784	784	18 operation. Renewable energy credits generated by
785	785	19 the project thereafter shall not be transferred
786	786	20 under the renewable energy credit delivery
787	787	21 contract with the counterparty electric utility.
788	788	22 (2) The Agency shall open the first block of
789	789	23 annual capacity for the category described in item
790	790	24 (ii) of subparagraph (K) of this paragraph (1).
791	791	25 The first block of annual capacity for item (ii)
792	792	26 shall be for at least 75 megawatts of total
793	793
794	794
795	795
796	796
797	797
798	798	HB5054 - 21 - LRB103 39370 JAG 69535 b
799	799
800	800
801	801	HB5054- 22 -LRB103 39370 JAG 69535 b HB5054 - 22 - LRB103 39370 JAG 69535 b
802	802	HB5054 - 22 - LRB103 39370 JAG 69535 b
803	803	1 nameplate capacity.
804	804	2 (A) The price of the renewable energy
805	805	3 credit for any project on a waitlist for this
806	806	4 category before the opening of this block
807	807	5 shall be 4% less than the price of the last
808	808	6 open block in this category. Projects on the
809	809	7 waitlist shall be awarded contracts first in
810	810	8 the order in which they appear on the
811	811	9 waitlist. Any projects that are less than or
812	812	10 equal to 25 kilowatts in size on the waitlist
813	813	11 for this capacity shall be moved to the
814	814	12 waitlist for paragraph (1) of this item (iv).
815	815	13 Notwithstanding anything to the contrary,
816	816	14 projects that were on the waitlist prior to
817	817	15 opening of this block shall not be required to
818	818	16 be in compliance with the requirements of
819	819	17 subparagraph (Q) of this paragraph (1) of this
820	820	18 subsection (c). Notwithstanding anything to
821	821	19 the contrary, for those renewable energy
822	822	20 credits procured from projects that were on
823	823	21 the waitlist for this category before the
824	824	22 opening of this block 20% of the renewable
825	825	23 energy credit delivery contract value, based
826	826	24 on the estimated generation during the first
827	827	25 15 years of operation, shall be paid by the
828	828	26 contracting utilities at the time that the
829	829
830	830
831	831
832	832
833	833
834	834	HB5054 - 22 - LRB103 39370 JAG 69535 b
835	835
836	836
837	837	HB5054- 23 -LRB103 39370 JAG 69535 b HB5054 - 23 - LRB103 39370 JAG 69535 b
838	838	HB5054 - 23 - LRB103 39370 JAG 69535 b
839	839	1 facility producing the renewable energy
840	840	2 credits is interconnected at the distribution
841	841	3 system level of the utility and verified as
842	842	4 energized by the Program Administrator. The
843	843	5 remaining portion shall be paid ratably over
844	844	6 the subsequent 4-year period. The electric
845	845	7 utility shall receive and retire all renewable
846	846	8 energy credits generated by the project during
847	847	9 the first 15 years of operation. Renewable
848	848	10 energy credits generated by the project
849	849	11 thereafter shall not be transferred under the
850	850	12 renewable energy credit delivery contract with
851	851	13 the counterparty electric utility.
852	852	14 (B) The price of renewable energy credits
853	853	15 for any project not on the waitlist for this
854	854	16 category before the opening of the block shall
855	855	17 be determined and published by the Agency.
856	856	18 Projects not on a waitlist as of the opening
857	857	19 of this block shall be subject to the
858	858	20 requirements of subparagraph (Q) of this
859	859	21 paragraph (1), as applicable. Projects not on
860	860	22 a waitlist as of the opening of this block
861	861	23 shall be subject to the contract provisions
862	862	24 outlined in item (iii) of subparagraph (L) of
863	863	25 this paragraph (1). The Agency shall strive to
864	864	26 publish updated prices and an updated
865	865
866	866
867	867
868	868
869	869
870	870	HB5054 - 23 - LRB103 39370 JAG 69535 b
871	871
872	872
873	873	HB5054- 24 -LRB103 39370 JAG 69535 b HB5054 - 24 - LRB103 39370 JAG 69535 b
874	874	HB5054 - 24 - LRB103 39370 JAG 69535 b
875	875	1 renewable energy credit delivery contract as
876	876	2 quickly as possible.
877	877	3 (3) For opening the first 2 blocks of annual
878	878	4 capacity for projects participating in item (iii)
879	879	5 of subparagraph (K) of paragraph (1) of subsection
880	880	6 (c), projects shall be selected exclusively from
881	881	7 those projects on the ordinal waitlists of
882	882	8 community renewable generation projects
883	883	9 established by the Agency based on the status of
884	884	10 those ordinal waitlists as of December 31, 2020,
885	885	11 and only those projects previously determined to
886	886	12 be eligible for the Agency's April 2019 community
887	887	13 solar project selection process.
888	888	14 The first 2 blocks of annual capacity for item
889	889	15 (iii) shall be for 250 megawatts of total
890	890	16 nameplate capacity, with both blocks opening
891	891	17 simultaneously under the schedule outlined in the
892	892	18 paragraphs below. Projects shall be selected as
893	893	19 follows:
894	894	20 (A) The geographic balance of selected
895	895	21 projects shall follow the Group classification
896	896	22 found in the Agency's Revised Long-Term
897	897	23 Renewable Resources Procurement Plan, with 70%
898	898	24 of capacity allocated to projects on the Group
899	899	25 B waitlist and 30% of capacity allocated to
900	900	26 projects on the Group A waitlist.
901	901
902	902
903	903
904	904
905	905
906	906	HB5054 - 24 - LRB103 39370 JAG 69535 b
907	907
908	908
909	909	HB5054- 25 -LRB103 39370 JAG 69535 b HB5054 - 25 - LRB103 39370 JAG 69535 b
910	910	HB5054 - 25 - LRB103 39370 JAG 69535 b
911	911	1 (B) Contract awards for waitlisted
912	912	2 projects shall be allocated proportionate to
913	913	3 the total nameplate capacity amount across
914	914	4 both ordinal waitlists associated with that
915	915	5 applicant firm or its affiliates, subject to
916	916	6 the following conditions.
917	917	7 (i) Each applicant firm having a
918	918	8 waitlisted project eligible for selection
919	919	9 shall receive no less than 500 kilowatts
920	920	10 in awarded capacity across all groups, and
921	921	11 no approved vendor may receive more than
922	922	12 20% of each Group's waitlist allocation.
923	923	13 (ii) Each applicant firm, upon
924	924	14 receiving an award of program capacity
925	925	15 proportionate to its waitlisted capacity,
926	926	16 may then determine which waitlisted
927	927	17 projects it chooses to be selected for a
928	928	18 contract award up to that capacity amount.
929	929	19 (iii) Assuming all other program
930	930	20 requirements are met, applicant firms may
931	931	21 adjust the nameplate capacity of applicant
932	932	22 projects without losing waitlist
933	933	23 eligibility, so long as no project is
934	934	24 greater than 2,000 kilowatts in size.
935	935	25 (iv) Assuming all other program
936	936	26 requirements are met, applicant firms may
937	937
938	938
939	939
940	940
941	941
942	942	HB5054 - 25 - LRB103 39370 JAG 69535 b
943	943
944	944
945	945	HB5054- 26 -LRB103 39370 JAG 69535 b HB5054 - 26 - LRB103 39370 JAG 69535 b
946	946	HB5054 - 26 - LRB103 39370 JAG 69535 b
947	947	1 adjust the expected production associated
948	948	2 with applicant projects, subject to
949	949	3 verification by the Program Administrator.
950	950	4 (C) After a review of affiliate
951	951	5 information and the current ordinal waitlists,
952	952	6 the Agency shall announce the nameplate
953	953	7 capacity award amounts associated with
954	954	8 applicant firms no later than 90 days after
955	955	9 the effective date of this amendatory Act of
956	956	10 the 102nd General Assembly.
957	957	11 (D) Applicant firms shall submit their
958	958	12 portfolio of projects used to satisfy those
959	959	13 contract awards no less than 90 days after the
960	960	14 Agency's announcement. The total nameplate
961	961	15 capacity of all projects used to satisfy that
962	962	16 portfolio shall be no greater than the
963	963	17 Agency's nameplate capacity award amount
964	964	18 associated with that applicant firm. An
965	965	19 applicant firm may decline, in whole or in
966	966	20 part, its nameplate capacity award without
967	967	21 penalty, with such unmet capacity rolled over
968	968	22 to the next block opening for project
969	969	23 selection under item (iii) of subparagraph (K)
970	970	24 of this subsection (c). Any projects not
971	971	25 included in an applicant firm's portfolio may
972	972	26 reapply without prejudice upon the next block
973	973
974	974
975	975
976	976
977	977
978	978	HB5054 - 26 - LRB103 39370 JAG 69535 b
979	979
980	980
981	981	HB5054- 27 -LRB103 39370 JAG 69535 b HB5054 - 27 - LRB103 39370 JAG 69535 b
982	982	HB5054 - 27 - LRB103 39370 JAG 69535 b
983	983	1 reopening for project selection under item
984	984	2 (iii) of subparagraph (K) of this subsection
985	985	3 (c).
986	986	4 (E) The renewable energy credit delivery
987	987	5 contract shall be subject to the contract and
988	988	6 payment terms outlined in item (iv) of
989	989	7 subparagraph (L) of this subsection (c).
990	990	8 Contract instruments used for this
991	991	9 subparagraph shall contain the following
992	992	10 terms:
993	993	11 (i) Renewable energy credit prices
994	994	12 shall be fixed, without further adjustment
995	995	13 under any other provision of this Act or
996	996	14 for any other reason, at 10% lower than
997	997	15 prices applicable to the last open block
998	998	16 for this category, inclusive of any adders
999	999	17 available for achieving a minimum of 50%
1000	1000	18 of subscribers to the project's nameplate
1001	1001	19 capacity being residential or small
1002	1002	20 commercial customers with subscriptions of
1003	1003	21 below 25 kilowatts in size;
1004	1004	22 (ii) A requirement that a minimum of
1005	1005	23 50% of subscribers to the project's
1006	1006	24 nameplate capacity be residential or small
1007	1007	25 commercial customers with subscriptions of
1008	1008	26 below 25 kilowatts in size;
1009	1009
1010	1010
1011	1011
1012	1012
1013	1013
1014	1014	HB5054 - 27 - LRB103 39370 JAG 69535 b
1015	1015
1016	1016
1017	1017	HB5054- 28 -LRB103 39370 JAG 69535 b HB5054 - 28 - LRB103 39370 JAG 69535 b
1018	1018	HB5054 - 28 - LRB103 39370 JAG 69535 b
1019	1019	1 (iii) Permission for the ability of a
1020	1020	2 contract holder to substitute projects
1021	1021	3 with other waitlisted projects without
1022	1022	4 penalty should a project receive a
1023	1023	5 non-binding estimate of costs to construct
1024	1024	6 the interconnection facilities and any
1025	1025	7 required distribution upgrades associated
1026	1026	8 with that project of greater than 30 cents
1027	1027	9 per watt AC of that project's nameplate
1028	1028	10 capacity. In developing the applicable
1029	1029	11 contract instrument, the Agency may
1030	1030	12 consider whether other circumstances
1031	1031	13 outside of the control of the applicant
1032	1032	14 firm should also warrant project
1033	1033	15 substitution rights.
1034	1034	16 The Agency shall publish a finalized
1035	1035	17 updated renewable energy credit delivery
1036	1036	18 contract developed consistent with these terms
1037	1037	19 and conditions no less than 30 days before
1038	1038	20 applicant firms must submit their portfolio of
1039	1039	21 projects pursuant to item (D).
1040	1040	22 (F) To be eligible for an award, the
1041	1041	23 applicant firm shall certify that not less
1042	1042	24 than prevailing wage, as determined pursuant
1043	1043	25 to the Illinois Prevailing Wage Act, was or
1044	1044	26 will be paid to employees who are engaged in
1045	1045
1046	1046
1047	1047
1048	1048
1049	1049
1050	1050	HB5054 - 28 - LRB103 39370 JAG 69535 b
1051	1051
1052	1052
1053	1053	HB5054- 29 -LRB103 39370 JAG 69535 b HB5054 - 29 - LRB103 39370 JAG 69535 b
1054	1054	HB5054 - 29 - LRB103 39370 JAG 69535 b
1055	1055	1 construction activities associated with a
1056	1056	2 selected project.
1057	1057	3 (4) The Agency shall open the first block of
1058	1058	4 annual capacity for the category described in item
1059	1059	5 (iv) of subparagraph (K) of this paragraph (1).
1060	1060	6 The first block of annual capacity for item (iv)
1061	1061	7 shall be for at least 50 megawatts of total
1062	1062	8 nameplate capacity. Renewable energy credit prices
1063	1063	9 shall be fixed, without further adjustment under
1064	1064	10 any other provision of this Act or for any other
1065	1065	11 reason, at the price in the last open block in the
1066	1066	12 category described in item (ii) of subparagraph
1067	1067	13 (K) of this paragraph (1). Pricing for future
1068	1068	14 blocks of annual capacity for this category may be
1069	1069	15 adjusted in the Agency's second revision to its
1070	1070	16 Long-Term Renewable Resources Procurement Plan.
1071	1071	17 Projects in this category shall be subject to the
1072	1072	18 contract terms outlined in item (iv) of
1073	1073	19 subparagraph (L) of this paragraph (1).
1074	1074	20 (5) The Agency shall open the equivalent of 2
1075	1075	21 years of annual capacity for the category
1076	1076	22 described in item (v) of subparagraph (K) of this
1077	1077	23 paragraph (1). The first block of annual capacity
1078	1078	24 for item (v) shall be for at least 10 megawatts of
1079	1079	25 total nameplate capacity. Notwithstanding the
1080	1080	26 provisions of item (v) of subparagraph (K) of this
1081	1081
1082	1082
1083	1083
1084	1084
1085	1085
1086	1086	HB5054 - 29 - LRB103 39370 JAG 69535 b
1087	1087
1088	1088
1089	1089	HB5054- 30 -LRB103 39370 JAG 69535 b HB5054 - 30 - LRB103 39370 JAG 69535 b
1090	1090	HB5054 - 30 - LRB103 39370 JAG 69535 b
1091	1091	1 paragraph (1), for the purpose of this initial
1092	1092	2 block, the agency shall accept new project
1093	1093	3 applications intended to increase the diversity of
1094	1094	4 areas hosting community solar projects, the
1095	1095	5 business models of projects, and the size of
1096	1096	6 projects, as described by the Agency in its
1097	1097	7 long-term renewable resources procurement plan
1098	1098	8 that is approved as of the effective date of this
1099	1099	9 amendatory Act of the 102nd General Assembly.
1100	1100	10 Projects in this category shall be subject to the
1101	1101	11 contract terms outlined in item (iii) of
1102	1102	12 subsection (L) of this paragraph (1).
1103	1103	13 (6) The Agency shall open the first blocks of
1104	1104	14 annual capacity for the category described in item
1105	1105	15 (vi) of subparagraph (K) of this paragraph (1),
1106	1106	16 with allocations of capacity within the block
1107	1107	17 generally matching the historical share of block
1108	1108	18 capacity allocated between the category described
1109	1109	19 in items (i) and (ii) of subparagraph (K) of this
1110	1110	20 paragraph (1). The first two blocks of annual
1111	1111	21 capacity for item (vi) shall be for at least 75
1112	1112	22 megawatts of total nameplate capacity. The price
1113	1113	23 of renewable energy credits for the blocks of
1114	1114	24 capacity shall be 4% less than the price of the
1115	1115	25 last open blocks in the categories described in
1116	1116	26 items (i) and (ii) of subparagraph (K) of this
1117	1117
1118	1118
1119	1119
1120	1120
1121	1121
1122	1122	HB5054 - 30 - LRB103 39370 JAG 69535 b
1123	1123
1124	1124
1125	1125	HB5054- 31 -LRB103 39370 JAG 69535 b HB5054 - 31 - LRB103 39370 JAG 69535 b
1126	1126	HB5054 - 31 - LRB103 39370 JAG 69535 b
1127	1127	1 paragraph (1). Pricing for future blocks of annual
1128	1128	2 capacity for this category may be adjusted in the
1129	1129	3 Agency's second revision to its Long-Term
1130	1130	4 Renewable Resources Procurement Plan. Projects in
1131	1131	5 this category shall be subject to the applicable
1132	1132	6 contract terms outlined in items (ii) and (iii) of
1133	1133	7 subparagraph (L) of this paragraph (1).
1134	1134	8 (v) Upon the effective date of this amendatory Act
1135	1135	9 of the 102nd General Assembly, for all competitive
1136	1136	10 procurements and any procurements of renewable energy
1137	1137	11 credit from new utility-scale wind and new
1138	1138	12 utility-scale photovoltaic projects, the Agency shall
1139	1139	13 procure indexed renewable energy credits and direct
1140	1140	14 respondents to offer a strike price.
1141	1141	15 (1) The purchase price of the indexed
1142	1142	16 renewable energy credit payment shall be
1143	1143	17 calculated for each settlement period. That
1144	1144	18 payment, for any settlement period, shall be equal
1145	1145	19 to the difference resulting from subtracting the
1146	1146	20 strike price from the index price for that
1147	1147	21 settlement period. If this difference results in a
1148	1148	22 negative number, the indexed REC counterparty
1149	1149	23 shall owe the seller the absolute value multiplied
1150	1150	24 by the quantity of energy produced in the relevant
1151	1151	25 settlement period. If this difference results in a
1152	1152	26 positive number, the seller shall owe the indexed
1153	1153
1154	1154
1155	1155
1156	1156
1157	1157
1158	1158	HB5054 - 31 - LRB103 39370 JAG 69535 b
1159	1159
1160	1160
1161	1161	HB5054- 32 -LRB103 39370 JAG 69535 b HB5054 - 32 - LRB103 39370 JAG 69535 b
1162	1162	HB5054 - 32 - LRB103 39370 JAG 69535 b
1163	1163	1 REC counterparty this amount multiplied by the
1164	1164	2 quantity of energy produced in the relevant
1165	1165	3 settlement period.
1166	1166	4 (2) Parties shall cash settle every month,
1167	1167	5 summing up all settlements (both positive and
1168	1168	6 negative, if applicable) for the prior month.
1169	1169	7 (3) To ensure funding in the annual budget
1170	1170	8 established under subparagraph (E) for indexed
1171	1171	9 renewable energy credit procurements for each year
1172	1172	10 of the term of such contracts, which must have a
1173	1173	11 minimum tenure of 20 calendar years, the
1174	1174	12 procurement administrator, Agency, Commission
1175	1175	13 staff, and procurement monitor shall quantify the
1176	1176	14 annual cost of the contract by utilizing an
1177	1177	15 industry-standard, third-party forward price curve
1178	1178	16 for energy at the appropriate hub or load zone,
1179	1179	17 including the estimated magnitude and timing of
1180	1180	18 the price effects related to federal carbon
1181	1181	19 controls. Each forward price curve shall contain a
1182	1182	20 specific value of the forecasted market price of
1183	1183	21 electricity for each annual delivery year of the
1184	1184	22 contract. For procurement planning purposes, the
1185	1185	23 impact on the annual budget for the cost of
1186	1186	24 indexed renewable energy credits for each delivery
1187	1187	25 year shall be determined as the expected annual
1188	1188	26 contract expenditure for that year, equaling the
1189	1189
1190	1190
1191	1191
1192	1192
1193	1193
1194	1194	HB5054 - 32 - LRB103 39370 JAG 69535 b
1195	1195
1196	1196
1197	1197	HB5054- 33 -LRB103 39370 JAG 69535 b HB5054 - 33 - LRB103 39370 JAG 69535 b
1198	1198	HB5054 - 33 - LRB103 39370 JAG 69535 b
1199	1199	1 difference between (i) the sum across all relevant
1200	1200	2 contracts of the applicable strike price
1201	1201	3 multiplied by contract quantity and (ii) the sum
1202	1202	4 across all relevant contracts of the forward price
1203	1203	5 curve for the applicable load zone for that year
1204	1204	6 multiplied by contract quantity. The contracting
1205	1205	7 utility shall not assume an obligation in excess
1206	1206	8 of the estimated annual cost of the contracts for
1207	1207	9 indexed renewable energy credits. Forward curves
1208	1208	10 shall be revised on an annual basis as updated
1209	1209	11 forward price curves are released and filed with
1210	1210	12 the Commission in the proceeding approving the
1211	1211	13 Agency's most recent long-term renewable resources
1212	1212	14 procurement plan. If the expected contract spend
1213	1213	15 is higher or lower than the total quantity of
1214	1214	16 contracts multiplied by the forward price curve
1215	1215	17 value for that year, the forward price curve shall
1216	1216	18 be updated by the procurement administrator, in
1217	1217	19 consultation with the Agency, Commission staff,
1218	1218	20 and procurement monitors, using then-currently
1219	1219	21 available price forecast data and additional
1220	1220	22 budget dollars shall be obligated or reobligated
1221	1221	23 as appropriate.
1222	1222	24 (4) To ensure that indexed renewable energy
1223	1223	25 credit prices remain predictable and affordable,
1224	1224	26 the Agency may consider the institution of a price
1225	1225
1226	1226
1227	1227
1228	1228
1229	1229
1230	1230	HB5054 - 33 - LRB103 39370 JAG 69535 b
1231	1231
1232	1232
1233	1233	HB5054- 34 -LRB103 39370 JAG 69535 b HB5054 - 34 - LRB103 39370 JAG 69535 b
1234	1234	HB5054 - 34 - LRB103 39370 JAG 69535 b
1235	1235	1 collar on REC prices paid under indexed renewable
1236	1236	2 energy credit procurements establishing floor and
1237	1237	3 ceiling REC prices applicable to indexed REC
1238	1238	4 contract prices. Any price collars applicable to
1239	1239	5 indexed REC procurements shall be proposed by the
1240	1240	6 Agency through its long-term renewable resources
1241	1241	7 procurement plan.
1242	1242	8 (vi) All procurements under this subparagraph (G),
1243	1243	9 including the procurement of renewable energy credits
1244	1244	10 from hydropower facilities, shall comply with the
1245	1245	11 geographic requirements in subparagraph (I) of this
1246	1246	12 paragraph (1) and shall follow the procurement
1247	1247	13 processes and procedures described in this Section and
1248	1248	14 Section 16-111.5 of the Public Utilities Act to the
1249	1249	15 extent practicable, and these processes and procedures
1250	1250	16 may be expedited to accommodate the schedule
1251	1251	17 established by this subparagraph (G).
1252	1252	18 (vii) On and after the effective date of this
1253	1253	19 amendatory Act of the 103rd General Assembly, for all
1254	1254	20 procurements of renewable energy credits from
1255	1255	21 hydropower facilities, the Agency shall establish
1256	1256	22 contract terms designed to optimize existing
1257	1257	23 hydropower facilities through modernization or
1258	1258	24 retooling and establish new hydropower facilities at
1259	1259	25 existing dams. Procurements made under this item (vii)
1260	1260	26 shall prioritize projects located in designated
1261	1261
1262	1262
1263	1263
1264	1264
1265	1265
1266	1266	HB5054 - 34 - LRB103 39370 JAG 69535 b
1267	1267
1268	1268
1269	1269	HB5054- 35 -LRB103 39370 JAG 69535 b HB5054 - 35 - LRB103 39370 JAG 69535 b
1270	1270	HB5054 - 35 - LRB103 39370 JAG 69535 b
1271	1271	1 environmental justice communities, as defined in
1272	1272	2 subsection (b) of Section 1-56 of this Act, or in
1273	1273	3 projects located in units of local government with
1274	1274	4 median incomes that do not exceed 82% of the median
1275	1275	5 income of the State.
1276	1276	6 (H) The procurement of renewable energy resources for
1277	1277	7 a given delivery year shall be reduced as described in
1278	1278	8 this subparagraph (H) if an alternative retail electric
1279	1279	9 supplier meets the requirements described in this
1280	1280	10 subparagraph (H).
1281	1281	11 (i) Within 45 days after June 1, 2017 (the
1282	1282	12 effective date of Public Act 99-906), an alternative
1283	1283	13 retail electric supplier or its successor shall submit
1284	1284	14 an informational filing to the Illinois Commerce
1285	1285	15 Commission certifying that, as of December 31, 2015,
1286	1286	16 the alternative retail electric supplier owned one or
1287	1287	17 more electric generating facilities that generates
1288	1288	18 renewable energy resources as defined in Section 1-10
1289	1289	19 of this Act, provided that such facilities are not
1290	1290	20 powered by wind or photovoltaics, and the facilities
1291	1291	21 generate one renewable energy credit for each
1292	1292	22 megawatthour of energy produced from the facility.
1293	1293	23 The informational filing shall identify each
1294	1294	24 facility that was eligible to satisfy the alternative
1295	1295	25 retail electric supplier's obligations under Section
1296	1296	26 16-115D of the Public Utilities Act as described in
1297	1297
1298	1298
1299	1299
1300	1300
1301	1301
1302	1302	HB5054 - 35 - LRB103 39370 JAG 69535 b
1303	1303
1304	1304
1305	1305	HB5054- 36 -LRB103 39370 JAG 69535 b HB5054 - 36 - LRB103 39370 JAG 69535 b
1306	1306	HB5054 - 36 - LRB103 39370 JAG 69535 b
1307	1307	1 this item (i).
1308	1308	2 (ii) For a given delivery year, the alternative
1309	1309	3 retail electric supplier may elect to supply its
1310	1310	4 retail customers with renewable energy credits from
1311	1311	5 the facility or facilities described in item (i) of
1312	1312	6 this subparagraph (H) that continue to be owned by the
1313	1313	7 alternative retail electric supplier.
1314	1314	8 (iii) The alternative retail electric supplier
1315	1315	9 shall notify the Agency and the applicable utility, no
1316	1316	10 later than February 28 of the year preceding the
1317	1317	11 applicable delivery year or 15 days after June 1, 2017
1318	1318	12 (the effective date of Public Act 99-906), whichever
1319	1319	13 is later, of its election under item (ii) of this
1320	1320	14 subparagraph (H) to supply renewable energy credits to
1321	1321	15 retail customers of the utility. Such election shall
1322	1322	16 identify the amount of renewable energy credits to be
1323	1323	17 supplied by the alternative retail electric supplier
1324	1324	18 to the utility's retail customers and the source of
1325	1325	19 the renewable energy credits identified in the
1326	1326	20 informational filing as described in item (i) of this
1327	1327	21 subparagraph (H), subject to the following
1328	1328	22 limitations:
1329	1329	23 For the delivery year beginning June 1, 2018,
1330	1330	24 the maximum amount of renewable energy credits to
1331	1331	25 be supplied by an alternative retail electric
1332	1332	26 supplier under this subparagraph (H) shall be 68%
1333	1333
1334	1334
1335	1335
1336	1336
1337	1337
1338	1338	HB5054 - 36 - LRB103 39370 JAG 69535 b
1339	1339
1340	1340
1341	1341	HB5054- 37 -LRB103 39370 JAG 69535 b HB5054 - 37 - LRB103 39370 JAG 69535 b
1342	1342	HB5054 - 37 - LRB103 39370 JAG 69535 b
1343	1343	1 multiplied by 25% multiplied by 14.5% multiplied
1344	1344	2 by the amount of metered electricity
1345	1345	3 (megawatt-hours) delivered by the alternative
1346	1346	4 retail electric supplier to Illinois retail
1347	1347	5 customers during the delivery year ending May 31,
1348	1348	6 2016.
1349	1349	7 For delivery years beginning June 1, 2019 and
1350	1350	8 each year thereafter, the maximum amount of
1351	1351	9 renewable energy credits to be supplied by an
1352	1352	10 alternative retail electric supplier under this
1353	1353	11 subparagraph (H) shall be 68% multiplied by 50%
1354	1354	12 multiplied by 16% multiplied by the amount of
1355	1355	13 metered electricity (megawatt-hours) delivered by
1356	1356	14 the alternative retail electric supplier to
1357	1357	15 Illinois retail customers during the delivery year
1358	1358	16 ending May 31, 2016, provided that the 16% value
1359	1359	17 shall increase by 1.5% each delivery year
1360	1360	18 thereafter to 25% by the delivery year beginning
1361	1361	19 June 1, 2025, and thereafter the 25% value shall
1362	1362	20 apply to each delivery year.
1363	1363	21 For each delivery year, the total amount of
1364	1364	22 renewable energy credits supplied by all alternative
1365	1365	23 retail electric suppliers under this subparagraph (H)
1366	1366	24 shall not exceed 9% of the Illinois target renewable
1367	1367	25 energy credit quantity. The Illinois target renewable
1368	1368	26 energy credit quantity for the delivery year beginning
1369	1369
1370	1370
1371	1371
1372	1372
1373	1373
1374	1374	HB5054 - 37 - LRB103 39370 JAG 69535 b
1375	1375
1376	1376
1377	1377	HB5054- 38 -LRB103 39370 JAG 69535 b HB5054 - 38 - LRB103 39370 JAG 69535 b
1378	1378	HB5054 - 38 - LRB103 39370 JAG 69535 b
1379	1379	1 June 1, 2018 is 14.5% multiplied by the total amount of
1380	1380	2 metered electricity (megawatt-hours) delivered in the
1381	1381	3 delivery year immediately preceding that delivery
1382	1382	4 year, provided that the 14.5% shall increase by 1.5%
1383	1383	5 each delivery year thereafter to 25% by the delivery
1384	1384	6 year beginning June 1, 2025, and thereafter the 25%
1385	1385	7 value shall apply to each delivery year.
1386	1386	8 If the requirements set forth in items (i) through
1387	1387	9 (iii) of this subparagraph (H) are met, the charges
1388	1388	10 that would otherwise be applicable to the retail
1389	1389	11 customers of the alternative retail electric supplier
1390	1390	12 under paragraph (6) of this subsection (c) for the
1391	1391	13 applicable delivery year shall be reduced by the ratio
1392	1392	14 of the quantity of renewable energy credits supplied
1393	1393	15 by the alternative retail electric supplier compared
1394	1394	16 to that supplier's target renewable energy credit
1395	1395	17 quantity. The supplier's target renewable energy
1396	1396	18 credit quantity for the delivery year beginning June
1397	1397	19 1, 2018 is 14.5% multiplied by the total amount of
1398	1398	20 metered electricity (megawatt-hours) delivered by the
1399	1399	21 alternative retail supplier in that delivery year,
1400	1400	22 provided that the 14.5% shall increase by 1.5% each
1401	1401	23 delivery year thereafter to 25% by the delivery year
1402	1402	24 beginning June 1, 2025, and thereafter the 25% value
1403	1403	25 shall apply to each delivery year.
1404	1404	26 On or before April 1 of each year, the Agency shall
1405	1405
1406	1406
1407	1407
1408	1408
1409	1409
1410	1410	HB5054 - 38 - LRB103 39370 JAG 69535 b
1411	1411
1412	1412
1413	1413	HB5054- 39 -LRB103 39370 JAG 69535 b HB5054 - 39 - LRB103 39370 JAG 69535 b
1414	1414	HB5054 - 39 - LRB103 39370 JAG 69535 b
1415	1415	1 annually publish a report on its website that
1416	1416	2 identifies the aggregate amount of renewable energy
1417	1417	3 credits supplied by alternative retail electric
1418	1418	4 suppliers under this subparagraph (H).
1419	1419	5 (I) The Agency shall design its long-term renewable
1420	1420	6 energy procurement plan to maximize the State's interest
1421	1421	7 in the health, safety, and welfare of its residents,
1422	1422	8 including but not limited to minimizing sulfur dioxide,
1423	1423	9 nitrogen oxide, particulate matter and other pollution
1424	1424	10 that adversely affects public health in this State,
1425	1425	11 increasing fuel and resource diversity in this State,
1426	1426	12 enhancing the reliability and resiliency of the
1427	1427	13 electricity distribution system in this State, meeting
1428	1428	14 goals to limit carbon dioxide emissions under federal or
1429	1429	15 State law, and contributing to a cleaner and healthier
1430	1430	16 environment for the citizens of this State. In order to
1431	1431	17 further these legislative purposes, renewable energy
1432	1432	18 credits shall be eligible to be counted toward the
1433	1433	19 renewable energy requirements of this subsection (c) if
1434	1434	20 they are generated from facilities located in this State.
1435	1435	21 The Agency may qualify renewable energy credits from
1436	1436	22 facilities located in states adjacent to Illinois or
1437	1437	23 renewable energy credits associated with the electricity
1438	1438	24 generated by a utility-scale wind energy facility or
1439	1439	25 utility-scale photovoltaic facility and transmitted by a
1440	1440	26 qualifying direct current project described in subsection
1441	1441
1442	1442
1443	1443
1444	1444
1445	1445
1446	1446	HB5054 - 39 - LRB103 39370 JAG 69535 b
1447	1447
1448	1448
1449	1449	HB5054- 40 -LRB103 39370 JAG 69535 b HB5054 - 40 - LRB103 39370 JAG 69535 b
1450	1450	HB5054 - 40 - LRB103 39370 JAG 69535 b
1451	1451	1 (b-5) of Section 8-406 of the Public Utilities Act to a
1452	1452	2 delivery point on the electric transmission grid located
1453	1453	3 in this State or a state adjacent to Illinois, if the
1454	1454	4 generator demonstrates and the Agency determines that the
1455	1455	5 operation of such facility or facilities will help promote
1456	1456	6 the State's interest in the health, safety, and welfare of
1457	1457	7 its residents based on the public interest criteria
1458	1458	8 described above. For the purposes of this Section,
1459	1459	9 renewable resources that are delivered via a high voltage
1460	1460	10 direct current converter station located in Illinois shall
1461	1461	11 be deemed generated in Illinois at the time and location
1462	1462	12 the energy is converted to alternating current by the high
1463	1463	13 voltage direct current converter station if the high
1464	1464	14 voltage direct current transmission line: (i) after the
1465	1465	15 effective date of this amendatory Act of the 102nd General
1466	1466	16 Assembly, was constructed with a project labor agreement;
1467	1467	17 (ii) is capable of transmitting electricity at 525kv;
1468	1468	18 (iii) has an Illinois converter station located and
1469	1469	19 interconnected in the region of the PJM Interconnection,
1470	1470	20 LLC; (iv) does not operate as a public utility; and (v) if
1471	1471	21 the high voltage direct current transmission line was
1472	1472	22 energized after June 1, 2023. To ensure that the public
1473	1473	23 interest criteria are applied to the procurement and given
1474	1474	24 full effect, the Agency's long-term procurement plan shall
1475	1475	25 describe in detail how each public interest factor shall
1476	1476	26 be considered and weighted for facilities located in
1477	1477
1478	1478
1479	1479
1480	1480
1481	1481
1482	1482	HB5054 - 40 - LRB103 39370 JAG 69535 b
1483	1483
1484	1484
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1486	1486	HB5054 - 41 - LRB103 39370 JAG 69535 b
1487	1487	1 states adjacent to Illinois.
1488	1488	2 (J) In order to promote the competitive development of
1489	1489	3 renewable energy resources in furtherance of the State's
1490	1490	4 interest in the health, safety, and welfare of its
1491	1491	5 residents, renewable energy credits shall not be eligible
1492	1492	6 to be counted toward the renewable energy requirements of
1493	1493	7 this subsection (c) if they are sourced from a generating
1494	1494	8 unit whose costs were being recovered through rates
1495	1495	9 regulated by this State or any other state or states on or
1496	1496	10 after January 1, 2017. Each contract executed to purchase
1497	1497	11 renewable energy credits under this subsection (c) shall
1498	1498	12 provide for the contract's termination if the costs of the
1499	1499	13 generating unit supplying the renewable energy credits
1500	1500	14 subsequently begin to be recovered through rates regulated
1501	1501	15 by this State or any other state or states; and each
1502	1502	16 contract shall further provide that, in that event, the
1503	1503	17 supplier of the credits must return 110% of all payments
1504	1504	18 received under the contract. Amounts returned under the
1505	1505	19 requirements of this subparagraph (J) shall be retained by
1506	1506	20 the utility and all of these amounts shall be used for the
1507	1507	21 procurement of additional renewable energy credits from
1508	1508	22 new wind or new photovoltaic resources as defined in this
1509	1509	23 subsection (c). The long-term plan shall provide that
1510	1510	24 these renewable energy credits shall be procured in the
1511	1511	25 next procurement event.
1512	1512	26 Notwithstanding the limitations of this subparagraph
1513	1513
1514	1514
1515	1515
1516	1516
1517	1517
1518	1518	HB5054 - 41 - LRB103 39370 JAG 69535 b
1519	1519
1520	1520
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1522	1522	HB5054 - 42 - LRB103 39370 JAG 69535 b
1523	1523	1 (J), renewable energy credits sourced from generating
1524	1524	2 units that are constructed, purchased, owned, or leased by
1525	1525	3 an electric utility as part of an approved project,
1526	1526	4 program, or pilot under Section 1-56 of this Act shall be
1527	1527	5 eligible to be counted toward the renewable energy
1528	1528	6 requirements of this subsection (c), regardless of how the
1529	1529	7 costs of these units are recovered. As long as a
1530	1530	8 generating unit or an identifiable portion of a generating
1531	1531	9 unit has not had and does not have its costs recovered
1532	1532	10 through rates regulated by this State or any other state,
1533	1533	11 HVDC renewable energy credits associated with that
1534	1534	12 generating unit or identifiable portion thereof shall be
1535	1535	13 eligible to be counted toward the renewable energy
1536	1536	14 requirements of this subsection (c).
1537	1537	15 (K) The long-term renewable resources procurement plan
1538	1538	16 developed by the Agency in accordance with subparagraph
1539	1539	17 (A) of this paragraph (1) shall include an Adjustable
1540	1540	18 Block program for the procurement of renewable energy
1541	1541	19 credits from new photovoltaic projects that are
1542	1542	20 distributed renewable energy generation devices or new
1543	1543	21 photovoltaic community renewable generation projects. The
1544	1544	22 Adjustable Block program shall be generally designed to
1545	1545	23 provide for the steady, predictable, and sustainable
1546	1546	24 growth of new solar photovoltaic development in Illinois.
1547	1547	25 To this end, the Adjustable Block program shall provide a
1548	1548	26 transparent annual schedule of prices and quantities to
1549	1549
1550	1550
1551	1551
1552	1552
1553	1553
1554	1554	HB5054 - 42 - LRB103 39370 JAG 69535 b
1555	1555
1556	1556
1557	1557	HB5054- 43 -LRB103 39370 JAG 69535 b HB5054 - 43 - LRB103 39370 JAG 69535 b
1558	1558	HB5054 - 43 - LRB103 39370 JAG 69535 b
1559	1559	1 enable the photovoltaic market to scale up and for
1560	1560	2 renewable energy credit prices to adjust at a predictable
1561	1561	3 rate over time. The prices set by the Adjustable Block
1562	1562	4 program can be reflected as a set value or as the product
1563	1563	5 of a formula.
1564	1564	6 The Adjustable Block program shall include for each
1565	1565	7 category of eligible projects for each delivery year: a
1566	1566	8 single block of nameplate capacity, a price for renewable
1567	1567	9 energy credits within that block, and the terms and
1568	1568	10 conditions for securing a spot on a waitlist once the
1569	1569	11 block is fully committed or reserved. Except as outlined
1570	1570	12 below, the waitlist of projects in a given year will carry
1571	1571	13 over to apply to the subsequent year when another block is
1572	1572	14 opened. Only projects energized on or after June 1, 2017
1573	1573	15 shall be eligible for the Adjustable Block program. For
1574	1574	16 each category for each delivery year the Agency shall
1575	1575	17 determine the amount of generation capacity in each block,
1576	1576	18 and the purchase price for each block, provided that the
1577	1577	19 purchase price provided and the total amount of generation
1578	1578	20 in all blocks for all categories shall be sufficient to
1579	1579	21 meet the goals in this subsection (c). The Agency shall
1580	1580	22 strive to issue a single block sized to provide for
1581	1581	23 stability and market growth. The Agency shall establish
1582	1582	24 program eligibility requirements that ensure that projects
1583	1583	25 that enter the program are sufficiently mature to indicate
1584	1584	26 a demonstrable path to completion. The Agency may
1585	1585
1586	1586
1587	1587
1588	1588
1589	1589
1590	1590	HB5054 - 43 - LRB103 39370 JAG 69535 b
1591	1591
1592	1592
1593	1593	HB5054- 44 -LRB103 39370 JAG 69535 b HB5054 - 44 - LRB103 39370 JAG 69535 b
1594	1594	HB5054 - 44 - LRB103 39370 JAG 69535 b
1595	1595	1 periodically review its prior decisions establishing the
1596	1596	2 amount of generation capacity in each block, and the
1597	1597	3 purchase price for each block, and may propose, on an
1598	1598	4 expedited basis, changes to these previously set values,
1599	1599	5 including but not limited to redistributing these amounts
1600	1600	6 and the available funds as necessary and appropriate,
1601	1601	7 subject to Commission approval as part of the periodic
1602	1602	8 plan revision process described in Section 16-111.5 of the
1603	1603	9 Public Utilities Act. The Agency may define different
1604	1604	10 block sizes, purchase prices, or other distinct terms and
1605	1605	11 conditions for projects located in different utility
1606	1606	12 service territories if the Agency deems it necessary to
1607	1607	13 meet the goals in this subsection (c).
1608	1608	14 The Adjustable Block program shall include the
1609	1609	15 following categories in at least the following amounts:
1610	1610	16 (i) At least 20% from distributed renewable energy
1611	1611	17 generation devices with a nameplate capacity of no
1612	1612	18 more than 25 kilowatts.
1613	1613	19 (ii) At least 20% from distributed renewable
1614	1614	20 energy generation devices with a nameplate capacity of
1615	1615	21 more than 25 kilowatts and no more than 5,000
1616	1616	22 kilowatts. The Agency may create sub-categories within
1617	1617	23 this category to account for the differences between
1618	1618	24 projects for small commercial customers, large
1619	1619	25 commercial customers, and public or non-profit
1620	1620	26 customers.
1621	1621
1622	1622
1623	1623
1624	1624
1625	1625
1626	1626	HB5054 - 44 - LRB103 39370 JAG 69535 b
1627	1627
1628	1628
1629	1629	HB5054- 45 -LRB103 39370 JAG 69535 b HB5054 - 45 - LRB103 39370 JAG 69535 b
1630	1630	HB5054 - 45 - LRB103 39370 JAG 69535 b
1631	1631	1 (iii) At least 30% from photovoltaic community
1632	1632	2 renewable generation projects. Capacity for this
1633	1633	3 category for the first 2 delivery years after the
1634	1634	4 effective date of this amendatory Act of the 102nd
1635	1635	5 General Assembly shall be allocated to waitlist
1636	1636	6 projects as provided in paragraph (3) of item (iv) of
1637	1637	7 subparagraph (G). Starting in the third delivery year
1638	1638	8 after the effective date of this amendatory Act of the
1639	1639	9 102nd General Assembly or earlier if the Agency
1640	1640	10 determines there is additional capacity needed for to
1641	1641	11 meet previous delivery year requirements, the
1642	1642	12 following shall apply:
1643	1643	13 (1) the Agency shall select projects on a
1644	1644	14 first-come, first-serve basis, however the Agency
1645	1645	15 may suggest additional methods to prioritize
1646	1646	16 projects that are submitted at the same time;
1647	1647	17 (2) projects shall have subscriptions of 25 kW
1648	1648	18 or less for at least 50% of the facility's
1649	1649	19 nameplate capacity and the Agency shall price the
1650	1650	20 renewable energy credits with that as a factor;
1651	1651	21 (3) projects shall not be colocated with one
1652	1652	22 or more other community renewable generation
1653	1653	23 projects, as defined in the Agency's first revised
1654	1654	24 long-term renewable resources procurement plan
1655	1655	25 approved by the Commission on February 18, 2020,
1656	1656	26 such that the aggregate nameplate capacity exceeds
1657	1657
1658	1658
1659	1659
1660	1660
1661	1661
1662	1662	HB5054 - 45 - LRB103 39370 JAG 69535 b
1663	1663
1664	1664
1665	1665	HB5054- 46 -LRB103 39370 JAG 69535 b HB5054 - 46 - LRB103 39370 JAG 69535 b
1666	1666	HB5054 - 46 - LRB103 39370 JAG 69535 b
1667	1667	1 5,000 kilowatts; and
1668	1668	2 (4) projects greater than 2 MW may not apply
1669	1669	3 until after the approval of the Agency's revised
1670	1670	4 Long-Term Renewable Resources Procurement Plan
1671	1671	5 after the effective date of this amendatory Act of
1672	1672	6 the 102nd General Assembly.
1673	1673	7 (iv) At least 15% from distributed renewable
1674	1674	8 generation devices or photovoltaic community renewable
1675	1675	9 generation projects installed on public school land.
1676	1676	10 The Agency may create subcategories within this
1677	1677	11 category to account for the differences between
1678	1678	12 project size or location. Projects located within
1679	1679	13 environmental justice communities or within
1680	1680	14 Organizational Units that fall within Tier 1 or Tier 2
1681	1681	15 shall be given priority. Each of the Agency's periodic
1682	1682	16 updates to its long-term renewable resources
1683	1683	17 procurement plan to incorporate the procurement
1684	1684	18 described in this subparagraph (iv) shall also include
1685	1685	19 the proposed quantities or blocks, pricing, and
1686	1686	20 contract terms applicable to the procurement as
1687	1687	21 indicated herein. In each such update and procurement,
1688	1688	22 the Agency shall set the renewable energy credit price
1689	1689	23 and establish payment terms for the renewable energy
1690	1690	24 credits procured pursuant to this subparagraph (iv)
1691	1691	25 that make it feasible and affordable for public
1692	1692	26 schools to install photovoltaic distributed renewable
1693	1693
1694	1694
1695	1695
1696	1696
1697	1697
1698	1698	HB5054 - 46 - LRB103 39370 JAG 69535 b
1699	1699
1700	1700
1701	1701	HB5054- 47 -LRB103 39370 JAG 69535 b HB5054 - 47 - LRB103 39370 JAG 69535 b
1702	1702	HB5054 - 47 - LRB103 39370 JAG 69535 b
1703	1703	1 energy devices on their premises, including, but not
1704	1704	2 limited to, those public schools subject to the
1705	1705	3 prioritization provisions of this subparagraph. For
1706	1706	4 the purposes of this item (iv):
1707	1707	5 "Environmental Justice Community" shall have the
1708	1708	6 same meaning set forth in the Agency's long-term
1709	1709	7 renewable resources procurement plan;
1710	1710	8 "Organization Unit", "Tier 1" and "Tier 2" shall
1711	1711	9 have the meanings set for in Section 18-8.15 of the
1712	1712	10 School Code;
1713	1713	11 "Public schools" shall have the meaning set forth
1714	1714	12 in Section 1-3 of the School Code and includes public
1715	1715	13 institutions of higher education, as defined in the
1716	1716	14 Board of Higher Education Act.
1717	1717	15 (v) At least 5% from community-driven community
1718	1718	16 solar projects intended to provide more direct and
1719	1719	17 tangible connection and benefits to the communities
1720	1720	18 which they serve or in which they operate and,
1721	1721	19 additionally, to increase the variety of community
1722	1722	20 solar locations, models, and options in Illinois. As
1723	1723	21 part of its long-term renewable resources procurement
1724	1724	22 plan, the Agency shall develop selection criteria for
1725	1725	23 projects participating in this category. Nothing in
1726	1726	24 this Section shall preclude the Agency from creating a
1727	1727	25 selection process that maximizes community ownership
1728	1728	26 and community benefits in selecting projects to
1729	1729
1730	1730
1731	1731
1732	1732
1733	1733
1734	1734	HB5054 - 47 - LRB103 39370 JAG 69535 b
1735	1735
1736	1736
1737	1737	HB5054- 48 -LRB103 39370 JAG 69535 b HB5054 - 48 - LRB103 39370 JAG 69535 b
1738	1738	HB5054 - 48 - LRB103 39370 JAG 69535 b
1739	1739	1 receive renewable energy credits. Selection criteria
1740	1740	2 shall include:
1741	1741	3 (1) community ownership or community
1742	1742	4 wealth-building;
1743	1743	5 (2) additional direct and indirect community
1744	1744	6 benefit, beyond project participation as a
1745	1745	7 subscriber, including, but not limited to,
1746	1746	8 economic, environmental, social, cultural, and
1747	1747	9 physical benefits;
1748	1748	10 (3) meaningful involvement in project
1749	1749	11 organization and development by community members
1750	1750	12 or nonprofit organizations or public entities
1751	1751	13 located in or serving the community;
1752	1752	14 (4) engagement in project operations and
1753	1753	15 management by nonprofit organizations, public
1754	1754	16 entities, or community members; and
1755	1755	17 (5) whether a project is developed in response
1756	1756	18 to a site-specific RFP developed by community
1757	1757	19 members or a nonprofit organization or public
1758	1758	20 entity located in or serving the community.
1759	1759	21 Selection criteria may also prioritize projects
1760	1760	22 that:
1761	1761	23 (1) are developed in collaboration with or to
1762	1762	24 provide complementary opportunities for the Clean
1763	1763	25 Jobs Workforce Network Program, the Illinois
1764	1764	26 Climate Works Preapprenticeship Program, the
1765	1765
1766	1766
1767	1767
1768	1768
1769	1769
1770	1770	HB5054 - 48 - LRB103 39370 JAG 69535 b
1771	1771
1772	1772
1773	1773	HB5054- 49 -LRB103 39370 JAG 69535 b HB5054 - 49 - LRB103 39370 JAG 69535 b
1774	1774	HB5054 - 49 - LRB103 39370 JAG 69535 b
1775	1775	1 Returning Residents Clean Jobs Training Program,
1776	1776	2 the Clean Energy Contractor Incubator Program, or
1777	1777	3 the Clean Energy Primes Contractor Accelerator
1778	1778	4 Program;
1779	1779	5 (2) increase the diversity of locations of
1780	1780	6 community solar projects in Illinois, including by
1781	1781	7 locating in urban areas and population centers;
1782	1782	8 (3) are located in Equity Investment Eligible
1783	1783	9 Communities;
1784	1784	10 (4) are not greenfield projects;
1785	1785	11 (5) serve only local subscribers;
1786	1786	12 (6) have a nameplate capacity that does not
1787	1787	13 exceed 500 kW;
1788	1788	14 (7) are developed by an equity eligible
1789	1789	15 contractor; or
1790	1790	16 (8) otherwise meaningfully advance the goals
1791	1791	17 of providing more direct and tangible connection
1792	1792	18 and benefits to the communities which they serve
1793	1793	19 or in which they operate and increasing the
1794	1794	20 variety of community solar locations, models, and
1795	1795	21 options in Illinois.
1796	1796	22 For the purposes of this item (v):
1797	1797	23 "Community" means a social unit in which people
1798	1798	24 come together regularly to effect change; a social
1799	1799	25 unit in which participants are marked by a cooperative
1800	1800	26 spirit, a common purpose, or shared interests or
1801	1801
1802	1802
1803	1803
1804	1804
1805	1805
1806	1806	HB5054 - 49 - LRB103 39370 JAG 69535 b
1807	1807
1808	1808
1809	1809	HB5054- 50 -LRB103 39370 JAG 69535 b HB5054 - 50 - LRB103 39370 JAG 69535 b
1810	1810	HB5054 - 50 - LRB103 39370 JAG 69535 b
1811	1811	1 characteristics; or a space understood by its
1812	1812	2 residents to be delineated through geographic
1813	1813	3 boundaries or landmarks.
1814	1814	4 "Community benefit" means a range of services and
1815	1815	5 activities that provide affirmative, economic,
1816	1816	6 environmental, social, cultural, or physical value to
1817	1817	7 a community; or a mechanism that enables economic
1818	1818	8 development, high-quality employment, and education
1819	1819	9 opportunities for local workers and residents, or
1820	1820	10 formal monitoring and oversight structures such that
1821	1821	11 community members may ensure that those services and
1822	1822	12 activities respond to local knowledge and needs.
1823	1823	13 "Community ownership" means an arrangement in
1824	1824	14 which an electric generating facility is, or over time
1825	1825	15 will be, in significant part, owned collectively by
1826	1826	16 members of the community to which an electric
1827	1827	17 generating facility provides benefits; members of that
1828	1828	18 community participate in decisions regarding the
1829	1829	19 governance, operation, maintenance, and upgrades of
1830	1830	20 and to that facility; and members of that community
1831	1831	21 benefit from regular use of that facility.
1832	1832	22 Terms and guidance within these criteria that are
1833	1833	23 not defined in this item (v) shall be defined by the
1834	1834	24 Agency, with stakeholder input, during the development
1835	1835	25 of the Agency's long-term renewable resources
1836	1836	26 procurement plan. The Agency shall develop regular
1837	1837
1838	1838
1839	1839
1840	1840
1841	1841
1842	1842	HB5054 - 50 - LRB103 39370 JAG 69535 b
1843	1843
1844	1844
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1846	1846	HB5054 - 51 - LRB103 39370 JAG 69535 b
1847	1847	1 opportunities for projects to submit applications for
1848	1848	2 projects under this category, and develop selection
1849	1849	3 criteria that gives preference to projects that better
1850	1850	4 meet individual criteria as well as projects that
1851	1851	5 address a higher number of criteria.
1852	1852	6 (vi) At least 10% from distributed renewable
1853	1853	7 energy generation devices, which includes distributed
1854	1854	8 renewable energy devices with a nameplate capacity
1855	1855	9 under 5,000 kilowatts or photovoltaic community
1856	1856	10 renewable generation projects, from applicants that
1857	1857	11 are equity eligible contractors. The Agency may create
1858	1858	12 subcategories within this category to account for the
1859	1859	13 differences between project size and type. The Agency
1860	1860	14 shall propose to increase the percentage in this item
1861	1861	15 (vi) over time to 40% based on factors, including, but
1862	1862	16 not limited to, the number of equity eligible
1863	1863	17 contractors and capacity used in this item (vi) in
1864	1864	18 previous delivery years.
1865	1865	19 The Agency shall propose a payment structure for
1866	1866	20 contracts executed pursuant to this paragraph under
1867	1867	21 which, upon a demonstration of qualification or need,
1868	1868	22 applicant firms are advanced capital disbursed after
1869	1869	23 contract execution but before the contracted project's
1870	1870	24 energization. The amount or percentage of capital
1871	1871	25 advanced prior to project energization shall be
1872	1872	26 sufficient to both cover any increase in development
1873	1873
1874	1874
1875	1875
1876	1876
1877	1877
1878	1878	HB5054 - 51 - LRB103 39370 JAG 69535 b
1879	1879
1880	1880
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1882	1882	HB5054 - 52 - LRB103 39370 JAG 69535 b
1883	1883	1 costs resulting from prevailing wage requirements or
1884	1884	2 project-labor agreements, and designed to overcome
1885	1885	3 barriers in access to capital faced by equity eligible
1886	1886	4 contractors. The amount or percentage of advanced
1887	1887	5 capital may vary by subcategory within this category
1888	1888	6 and by an applicant's demonstration of need, with such
1889	1889	7 levels to be established through the Long-Term
1890	1890	8 Renewable Resources Procurement Plan authorized under
1891	1891	9 subparagraph (A) of paragraph (1) of subsection (c) of
1892	1892	10 this Section.
1893	1893	11 Contracts developed featuring capital advanced
1894	1894	12 prior to a project's energization shall feature
1895	1895	13 provisions to ensure both the successful development
1896	1896	14 of applicant projects and the delivery of the
1897	1897	15 renewable energy credits for the full term of the
1898	1898	16 contract, including ongoing collateral requirements
1899	1899	17 and other provisions deemed necessary by the Agency,
1900	1900	18 and may include energization timelines longer than for
1901	1901	19 comparable project types. The percentage or amount of
1902	1902	20 capital advanced prior to project energization shall
1903	1903	21 not operate to increase the overall contract value,
1904	1904	22 however contracts executed under this subparagraph may
1905	1905	23 feature renewable energy credit prices higher than
1906	1906	24 those offered to similar projects participating in
1907	1907	25 other categories. Capital advanced prior to
1908	1908	26 energization shall serve to reduce the ratable
1909	1909
1910	1910
1911	1911
1912	1912
1913	1913
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1915	1915
1916	1916
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1918	1918	HB5054 - 53 - LRB103 39370 JAG 69535 b
1919	1919	1 payments made after energization under items (ii) and
1920	1920	2 (iii) of subparagraph (L) or payments made for each
1921	1921	3 renewable energy credit delivery under item (iv) of
1922	1922	4 subparagraph (L).
1923	1923	5 (vii) The remaining capacity shall be allocated by
1924	1924	6 the Agency in order to respond to market demand. The
1925	1925	7 Agency shall allocate any discretionary capacity prior
1926	1926	8 to the beginning of each delivery year.
1927	1927	9 To the extent there is uncontracted capacity from any
1928	1928	10 block in any of categories (i) through (vi) at the end of a
1929	1929	11 delivery year, the Agency shall redistribute that capacity
1930	1930	12 to one or more other categories giving priority to
1931	1931	13 categories with projects on a waitlist. The redistributed
1932	1932	14 capacity shall be added to the annual capacity in the
1933	1933	15 subsequent delivery year, and the price for renewable
1934	1934	16 energy credits shall be the price for the new delivery
1935	1935	17 year. Redistributed capacity shall not be considered
1936	1936	18 redistributed when determining whether the goals in this
1937	1937	19 subsection (K) have been met.
1938	1938	20 Notwithstanding anything to the contrary, as the
1939	1939	21 Agency increases the capacity in item (vi) to 40% over
1940	1940	22 time, the Agency may reduce the capacity of items (i)
1941	1941	23 through (v) proportionate to the capacity of the
1942	1942	24 categories of projects in item (vi), to achieve a balance
1943	1943	25 of project types.
1944	1944	26 The Adjustable Block program shall be designed to
1945	1945
1946	1946
1947	1947
1948	1948
1949	1949
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1951	1951
1952	1952
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1954	1954	HB5054 - 54 - LRB103 39370 JAG 69535 b
1955	1955	1 ensure that renewable energy credits are procured from
1956	1956	2 projects in diverse locations and are not concentrated in
1957	1957	3 a few regional areas.
1958	1958	4 (L) Notwithstanding provisions for advancing capital
1959	1959	5 prior to project energization found in item (vi) of
1960	1960	6 subparagraph (K), the procurement of photovoltaic
1961	1961	7 renewable energy credits under items (i) through (vi) of
1962	1962	8 subparagraph (K) of this paragraph (1) shall otherwise be
1963	1963	9 subject to the following contract and payment terms:
1964	1964	10 (i) (Blank).
1965	1965	11 (ii) For those renewable energy credits that
1966	1966	12 qualify and are procured under item (i) of
1967	1967	13 subparagraph (K) of this paragraph (1), and any
1968	1968	14 similar category projects that are procured under item
1969	1969	15 (vi) of subparagraph (K) of this paragraph (1) that
1970	1970	16 qualify and are procured under item (vi), the contract
1971	1971	17 length shall be 15 years. The renewable energy credit
1972	1972	18 delivery contract value shall be paid in full, based
1973	1973	19 on the estimated generation during the first 15 years
1974	1974	20 of operation, by the contracting utilities at the time
1975	1975	21 that the facility producing the renewable energy
1976	1976	22 credits is interconnected at the distribution system
1977	1977	23 level of the utility and verified as energized and
1978	1978	24 compliant by the Program Administrator. The electric
1979	1979	25 utility shall receive and retire all renewable energy
1980	1980	26 credits generated by the project for the first 15
1981	1981
1982	1982
1983	1983
1984	1984
1985	1985
1986	1986	HB5054 - 54 - LRB103 39370 JAG 69535 b
1987	1987
1988	1988
1989	1989	HB5054- 55 -LRB103 39370 JAG 69535 b HB5054 - 55 - LRB103 39370 JAG 69535 b
1990	1990	HB5054 - 55 - LRB103 39370 JAG 69535 b
1991	1991	1 years of operation. Renewable energy credits generated
1992	1992	2 by the project thereafter shall not be transferred
1993	1993	3 under the renewable energy credit delivery contract
1994	1994	4 with the counterparty electric utility.
1995	1995	5 (iii) For those renewable energy credits that
1996	1996	6 qualify and are procured under item (ii) and (v) of
1997	1997	7 subparagraph (K) of this paragraph (1) and any like
1998	1998	8 projects similar category that qualify and are
1999	1999	9 procured under item (vi), the contract length shall be
2000	2000	10 15 years. 15% of the renewable energy credit delivery
2001	2001	11 contract value, based on the estimated generation
2002	2002	12 during the first 15 years of operation, shall be paid
2003	2003	13 by the contracting utilities at the time that the
2004	2004	14 facility producing the renewable energy credits is
2005	2005	15 interconnected at the distribution system level of the
2006	2006	16 utility and verified as energized and compliant by the
2007	2007	17 Program Administrator. The remaining portion shall be
2008	2008	18 paid ratably over the subsequent 6-year period. The
2009	2009	19 electric utility shall receive and retire all
2010	2010	20 renewable energy credits generated by the project for
2011	2011	21 the first 15 years of operation. Renewable energy
2012	2012	22 credits generated by the project thereafter shall not
2013	2013	23 be transferred under the renewable energy credit
2014	2014	24 delivery contract with the counterparty electric
2015	2015	25 utility.
2016	2016	26 (iv) For those renewable energy credits that
2017	2017
2018	2018
2019	2019
2020	2020
2021	2021
2022	2022	HB5054 - 55 - LRB103 39370 JAG 69535 b
2023	2023
2024	2024
2025	2025	HB5054- 56 -LRB103 39370 JAG 69535 b HB5054 - 56 - LRB103 39370 JAG 69535 b
2026	2026	HB5054 - 56 - LRB103 39370 JAG 69535 b
2027	2027	1 qualify and are procured under items (iii) and (iv) of
2028	2028	2 subparagraph (K) of this paragraph (1), and any like
2029	2029	3 projects that qualify and are procured under item
2030	2030	4 (vi), the renewable energy credit delivery contract
2031	2031	5 length shall be 20 years and shall be paid over the
2032	2032	6 delivery term, not to exceed during each delivery year
2033	2033	7 the contract price multiplied by the estimated annual
2034	2034	8 renewable energy credit generation amount. If
2035	2035	9 generation of renewable energy credits during a
2036	2036	10 delivery year exceeds the estimated annual generation
2037	2037	11 amount, the excess renewable energy credits shall be
2038	2038	12 carried forward to future delivery years and shall not
2039	2039	13 expire during the delivery term. If generation of
2040	2040	14 renewable energy credits during a delivery year,
2041	2041	15 including carried forward excess renewable energy
2042	2042	16 credits, if any, is less than the estimated annual
2043	2043	17 generation amount, payments during such delivery year
2044	2044	18 will not exceed the quantity generated plus the
2045	2045	19 quantity carried forward multiplied by the contract
2046	2046	20 price. The electric utility shall receive all
2047	2047	21 renewable energy credits generated by the project
2048	2048	22 during the first 20 years of operation and retire all
2049	2049	23 renewable energy credits paid for under this item (iv)
2050	2050	24 and return at the end of the delivery term all
2051	2051	25 renewable energy credits that were not paid for.
2052	2052	26 Renewable energy credits generated by the project
2053	2053
2054	2054
2055	2055
2056	2056
2057	2057
2058	2058	HB5054 - 56 - LRB103 39370 JAG 69535 b
2059	2059
2060	2060
2061	2061	HB5054- 57 -LRB103 39370 JAG 69535 b HB5054 - 57 - LRB103 39370 JAG 69535 b
2062	2062	HB5054 - 57 - LRB103 39370 JAG 69535 b
2063	2063	1 thereafter shall not be transferred under the
2064	2064	2 renewable energy credit delivery contract with the
2065	2065	3 counterparty electric utility. Notwithstanding the
2066	2066	4 preceding, for those projects participating under item
2067	2067	5 (iii) of subparagraph (K), the contract price for a
2068	2068	6 delivery year shall be based on subscription levels as
2069	2069	7 measured on the higher of the first business day of the
2070	2070	8 delivery year or the first business day 6 months after
2071	2071	9 the first business day of the delivery year.
2072	2072	10 Subscription of 90% of nameplate capacity or greater
2073	2073	11 shall be deemed to be fully subscribed for the
2074	2074	12 purposes of this item (iv). For projects receiving a
2075	2075	13 20-year delivery contract, REC prices shall be
2076	2076	14 adjusted downward for consistency with the incentive
2077	2077	15 levels previously determined to be necessary to
2078	2078	16 support projects under 15-year delivery contracts,
2079	2079	17 taking into consideration any additional new
2080	2080	18 requirements placed on the projects, including, but
2081	2081	19 not limited to, labor standards.
2082	2082	20 (v) Each contract shall include provisions to
2083	2083	21 ensure the delivery of the estimated quantity of
2084	2084	22 renewable energy credits and ongoing collateral
2085	2085	23 requirements and other provisions deemed appropriate
2086	2086	24 by the Agency.
2087	2087	25 (vi) The utility shall be the counterparty to the
2088	2088	26 contracts executed under this subparagraph (L) that
2089	2089
2090	2090
2091	2091
2092	2092
2093	2093
2094	2094	HB5054 - 57 - LRB103 39370 JAG 69535 b
2095	2095
2096	2096
2097	2097	HB5054- 58 -LRB103 39370 JAG 69535 b HB5054 - 58 - LRB103 39370 JAG 69535 b
2098	2098	HB5054 - 58 - LRB103 39370 JAG 69535 b
2099	2099	1 are approved by the Commission under the process
2100	2100	2 described in Section 16-111.5 of the Public Utilities
2101	2101	3 Act. No contract shall be executed for an amount that
2102	2102	4 is less than one renewable energy credit per year.
2103	2103	5 (vii) If, at any time, approved applications for
2104	2104	6 the Adjustable Block program exceed funds collected by
2105	2105	7 the electric utility or would cause the Agency to
2106	2106	8 exceed the limitation described in subparagraph (E) of
2107	2107	9 this paragraph (1) on the amount of renewable energy
2108	2108	10 resources that may be procured, then the Agency may
2109	2109	11 consider future uncommitted funds to be reserved for
2110	2110	12 these contracts on a first-come, first-served basis.
2111	2111	13 (viii) Nothing in this Section shall require the
2112	2112	14 utility to advance any payment or pay any amounts that
2113	2113	15 exceed the actual amount of revenues anticipated to be
2114	2114	16 collected by the utility under paragraph (6) of this
2115	2115	17 subsection (c) and subsection (k) of Section 16-108 of
2116	2116	18 the Public Utilities Act inclusive of eligible funds
2117	2117	19 collected in prior years and alternative compliance
2118	2118	20 payments for use by the utility, and contracts
2119	2119	21 executed under this Section shall expressly
2120	2120	22 incorporate this limitation.
2121	2121	23 (ix) Notwithstanding other requirements of this
2122	2122	24 subparagraph (L), no modification shall be required to
2123	2123	25 Adjustable Block program contracts if they were
2124	2124	26 already executed prior to the establishment, approval,
2125	2125
2126	2126
2127	2127
2128	2128
2129	2129
2130	2130	HB5054 - 58 - LRB103 39370 JAG 69535 b
2131	2131
2132	2132
2133	2133	HB5054- 59 -LRB103 39370 JAG 69535 b HB5054 - 59 - LRB103 39370 JAG 69535 b
2134	2134	HB5054 - 59 - LRB103 39370 JAG 69535 b
2135	2135	1 and implementation of new contract forms as a result
2136	2136	2 of this amendatory Act of the 102nd General Assembly.
2137	2137	3 (x) Contracts may be assignable, but only to
2138	2138	4 entities first deemed by the Agency to have met
2139	2139	5 program terms and requirements applicable to direct
2140	2140	6 program participation. In developing contracts for the
2141	2141	7 delivery of renewable energy credits, the Agency shall
2142	2142	8 be permitted to establish fees applicable to each
2143	2143	9 contract assignment.
2144	2144	10 (M) The Agency shall be authorized to retain one or
2145	2145	11 more experts or expert consulting firms to develop,
2146	2146	12 administer, implement, operate, and evaluate the
2147	2147	13 Adjustable Block program described in subparagraph (K) of
2148	2148	14 this paragraph (1), and the Agency shall retain the
2149	2149	15 consultant or consultants in the same manner, to the
2150	2150	16 extent practicable, as the Agency retains others to
2151	2151	17 administer provisions of this Act, including, but not
2152	2152	18 limited to, the procurement administrator. The selection
2153	2153	19 of experts and expert consulting firms and the procurement
2154	2154	20 process described in this subparagraph (M) are exempt from
2155	2155	21 the requirements of Section 20-10 of the Illinois
2156	2156	22 Procurement Code, under Section 20-10 of that Code. The
2157	2157	23 Agency shall strive to minimize administrative expenses in
2158	2158	24 the implementation of the Adjustable Block program.
2159	2159	25 The Program Administrator may charge application fees
2160	2160	26 to participating firms to cover the cost of program
2161	2161
2162	2162
2163	2163
2164	2164
2165	2165
2166	2166	HB5054 - 59 - LRB103 39370 JAG 69535 b
2167	2167
2168	2168
2169	2169	HB5054- 60 -LRB103 39370 JAG 69535 b HB5054 - 60 - LRB103 39370 JAG 69535 b
2170	2170	HB5054 - 60 - LRB103 39370 JAG 69535 b
2171	2171	1 administration. Any application fee amounts shall
2172	2172	2 initially be determined through the long-term renewable
2173	2173	3 resources procurement plan, and modifications to any
2174	2174	4 application fee that deviate more than 25% from the
2175	2175	5 Commission's approved value must be approved by the
2176	2176	6 Commission as a long-term plan revision under Section
2177	2177	7 16-111.5 of the Public Utilities Act. The Agency shall
2178	2178	8 consider stakeholder feedback when making adjustments to
2179	2179	9 application fees and shall notify stakeholders in advance
2180	2180	10 of any planned changes.
2181	2181	11 In addition to covering the costs of program
2182	2182	12 administration, the Agency, in conjunction with its
2183	2183	13 Program Administrator, may also use the proceeds of such
2184	2184	14 fees charged to participating firms to support public
2185	2185	15 education and ongoing regional and national coordination
2186	2186	16 with nonprofit organizations, public bodies, and others
2187	2187	17 engaged in the implementation of renewable energy
2188	2188	18 incentive programs or similar initiatives. This work may
2189	2189	19 include developing papers and reports, hosting regional
2190	2190	20 and national conferences, and other work deemed necessary
2191	2191	21 by the Agency to position the State of Illinois as a
2192	2192	22 national leader in renewable energy incentive program
2193	2193	23 development and administration.
2194	2194	24 The Agency and its consultant or consultants shall
2195	2195	25 monitor block activity, share program activity with
2196	2196	26 stakeholders and conduct quarterly meetings to discuss
2197	2197
2198	2198
2199	2199
2200	2200
2201	2201
2202	2202	HB5054 - 60 - LRB103 39370 JAG 69535 b
2203	2203
2204	2204
2205	2205	HB5054- 61 -LRB103 39370 JAG 69535 b HB5054 - 61 - LRB103 39370 JAG 69535 b
2206	2206	HB5054 - 61 - LRB103 39370 JAG 69535 b
2207	2207	1 program activity and market conditions. If necessary, the
2208	2208	2 Agency may make prospective administrative adjustments to
2209	2209	3 the Adjustable Block program design, such as making
2210	2210	4 adjustments to purchase prices as necessary to achieve the
2211	2211	5 goals of this subsection (c). Program modifications to any
2212	2212	6 block price that do not deviate from the Commission's
2213	2213	7 approved value by more than 10% shall take effect
2214	2214	8 immediately and are not subject to Commission review and
2215	2215	9 approval. Program modifications to any block price that
2216	2216	10 deviate more than 10% from the Commission's approved value
2217	2217	11 must be approved by the Commission as a long-term plan
2218	2218	12 amendment under Section 16-111.5 of the Public Utilities
2219	2219	13 Act. The Agency shall consider stakeholder feedback when
2220	2220	14 making adjustments to the Adjustable Block design and
2221	2221	15 shall notify stakeholders in advance of any planned
2222	2222	16 changes.
2223	2223	17 The Agency and its program administrators for both the
2224	2224	18 Adjustable Block program and the Illinois Solar for All
2225	2225	19 Program, consistent with the requirements of this
2226	2226	20 subsection (c) and subsection (b) of Section 1-56 of this
2227	2227	21 Act, shall propose the Adjustable Block program terms,
2228	2228	22 conditions, and requirements, including the prices to be
2229	2229	23 paid for renewable energy credits, where applicable, and
2230	2230	24 requirements applicable to participating entities and
2231	2231	25 project applications, through the development, review, and
2232	2232	26 approval of the Agency's long-term renewable resources
2233	2233
2234	2234
2235	2235
2236	2236
2237	2237
2238	2238	HB5054 - 61 - LRB103 39370 JAG 69535 b
2239	2239
2240	2240
2241	2241	HB5054- 62 -LRB103 39370 JAG 69535 b HB5054 - 62 - LRB103 39370 JAG 69535 b
2242	2242	HB5054 - 62 - LRB103 39370 JAG 69535 b
2243	2243	1 procurement plan described in this subsection (c) and
2244	2244	2 paragraph (5) of subsection (b) of Section 16-111.5 of the
2245	2245	3 Public Utilities Act. Terms, conditions, and requirements
2246	2246	4 for program participation shall include the following:
2247	2247	5 (i) The Agency shall establish a registration
2248	2248	6 process for entities seeking to qualify for
2249	2249	7 program-administered incentive funding and establish
2250	2250	8 baseline qualifications for vendor approval. The
2251	2251	9 Agency must maintain a list of approved entities on
2252	2252	10 each program's website, and may revoke a vendor's
2253	2253	11 ability to receive program-administered incentive
2254	2254	12 funding status upon a determination that the vendor
2255	2255	13 failed to comply with contract terms, the law, or
2256	2256	14 other program requirements.
2257	2257	15 (ii) The Agency shall establish program
2258	2258	16 requirements and minimum contract terms to ensure
2259	2259	17 projects are properly installed and produce their
2260	2260	18 expected amounts of energy. Program requirements may
2261	2261	19 include on-site inspections and photo documentation of
2262	2262	20 projects under construction. The Agency may require
2263	2263	21 repairs, alterations, or additions to remedy any
2264	2264	22 material deficiencies discovered. Vendors who have a
2265	2265	23 disproportionately high number of deficient systems
2266	2266	24 may lose their eligibility to continue to receive
2267	2267	25 State-administered incentive funding through Agency
2268	2268	26 programs and procurements.
2269	2269
2270	2270
2271	2271
2272	2272
2273	2273
2274	2274	HB5054 - 62 - LRB103 39370 JAG 69535 b
2275	2275
2276	2276
2277	2277	HB5054- 63 -LRB103 39370 JAG 69535 b HB5054 - 63 - LRB103 39370 JAG 69535 b
2278	2278	HB5054 - 63 - LRB103 39370 JAG 69535 b
2279	2279	1 (iii) To discourage deceptive marketing or other
2280	2280	2 bad faith business practices, the Agency may require
2281	2281	3 direct program participants, including agents
2282	2282	4 operating on their behalf, to provide standardized
2283	2283	5 disclosures to a customer prior to that customer's
2284	2284	6 execution of a contract for the development of a
2285	2285	7 distributed generation system or a subscription to a
2286	2286	8 community solar project.
2287	2287	9 (iv) The Agency shall establish one or multiple
2288	2288	10 Consumer Complaints Centers to accept complaints
2289	2289	11 regarding businesses that participate in, or otherwise
2290	2290	12 benefit from, State-administered incentive funding
2291	2291	13 through Agency-administered programs. The Agency shall
2292	2292	14 maintain a public database of complaints with any
2293	2293	15 confidential or particularly sensitive information
2294	2294	16 redacted from public entries.
2295	2295	17 (v) Through a filing in the proceeding for the
2296	2296	18 approval of its long-term renewable energy resources
2297	2297	19 procurement plan, the Agency shall provide an annual
2298	2298	20 written report to the Illinois Commerce Commission
2299	2299	21 documenting the frequency and nature of complaints and
2300	2300	22 any enforcement actions taken in response to those
2301	2301	23 complaints.
2302	2302	24 (vi) The Agency shall schedule regular meetings
2303	2303	25 with representatives of the Office of the Attorney
2304	2304	26 General, the Illinois Commerce Commission, consumer
2305	2305
2306	2306
2307	2307
2308	2308
2309	2309
2310	2310	HB5054 - 63 - LRB103 39370 JAG 69535 b
2311	2311
2312	2312
2313	2313	HB5054- 64 -LRB103 39370 JAG 69535 b HB5054 - 64 - LRB103 39370 JAG 69535 b
2314	2314	HB5054 - 64 - LRB103 39370 JAG 69535 b
2315	2315	1 protection groups, and other interested stakeholders
2316	2316	2 to share relevant information about consumer
2317	2317	3 protection, project compliance, and complaints
2318	2318	4 received.
2319	2319	5 (vii) To the extent that complaints received
2320	2320	6 implicate the jurisdiction of the Office of the
2321	2321	7 Attorney General, the Illinois Commerce Commission, or
2322	2322	8 local, State, or federal law enforcement, the Agency
2323	2323	9 shall also refer complaints to those entities as
2324	2324	10 appropriate.
2325	2325	11 (N) The Agency shall establish the terms, conditions,
2326	2326	12 and program requirements for photovoltaic community
2327	2327	13 renewable generation projects with a goal to expand access
2328	2328	14 to a broader group of energy consumers, to ensure robust
2329	2329	15 participation opportunities for residential and small
2330	2330	16 commercial customers and those who cannot install
2331	2331	17 renewable energy on their own properties. Subject to
2332	2332	18 reasonable limitations, any plan approved by the
2333	2333	19 Commission shall allow subscriptions to community
2334	2334	20 renewable generation projects to be portable and
2335	2335	21 transferable. For purposes of this subparagraph (N),
2336	2336	22 "portable" means that subscriptions may be retained by the
2337	2337	23 subscriber even if the subscriber relocates or changes its
2338	2338	24 address within the same utility service territory; and
2339	2339	25 "transferable" means that a subscriber may assign or sell
2340	2340	26 subscriptions to another person within the same utility
2341	2341
2342	2342
2343	2343
2344	2344
2345	2345
2346	2346	HB5054 - 64 - LRB103 39370 JAG 69535 b
2347	2347
2348	2348
2349	2349	HB5054- 65 -LRB103 39370 JAG 69535 b HB5054 - 65 - LRB103 39370 JAG 69535 b
2350	2350	HB5054 - 65 - LRB103 39370 JAG 69535 b
2351	2351	1 service territory.
2352	2352	2 Through the development of its long-term renewable
2353	2353	3 resources procurement plan, the Agency may consider
2354	2354	4 whether community renewable generation projects utilizing
2355	2355	5 technologies other than photovoltaics should be supported
2356	2356	6 through State-administered incentive funding, and may
2357	2357	7 issue requests for information to gauge market demand.
2358	2358	8 Electric utilities shall provide a monetary credit to
2359	2359	9 a subscriber's subsequent bill for service for the
2360	2360	10 proportional output of a community renewable generation
2361	2361	11 project attributable to that subscriber as specified in
2362	2362	12 Section 16-107.5 of the Public Utilities Act.
2363	2363	13 The Agency shall purchase renewable energy credits
2364	2364	14 from subscribed shares of photovoltaic community renewable
2365	2365	15 generation projects through the Adjustable Block program
2366	2366	16 described in subparagraph (K) of this paragraph (1) or
2367	2367	17 through the Illinois Solar for All Program described in
2368	2368	18 Section 1-56 of this Act. The electric utility shall
2369	2369	19 purchase any unsubscribed energy from community renewable
2370	2370	20 generation projects that are Qualifying Facilities ("QF")
2371	2371	21 under the electric utility's tariff for purchasing the
2372	2372	22 output from QFs under Public Utilities Regulatory Policies
2373	2373	23 Act of 1978.
2374	2374	24 The owners of and any subscribers to a community
2375	2375	25 renewable generation project shall not be considered
2376	2376	26 public utilities or alternative retail electricity
2377	2377
2378	2378
2379	2379
2380	2380
2381	2381
2382	2382	HB5054 - 65 - LRB103 39370 JAG 69535 b
2383	2383
2384	2384
2385	2385	HB5054- 66 -LRB103 39370 JAG 69535 b HB5054 - 66 - LRB103 39370 JAG 69535 b
2386	2386	HB5054 - 66 - LRB103 39370 JAG 69535 b
2387	2387	1 suppliers under the Public Utilities Act solely as a
2388	2388	2 result of their interest in or subscription to a community
2389	2389	3 renewable generation project and shall not be required to
2390	2390	4 become an alternative retail electric supplier by
2391	2391	5 participating in a community renewable generation project
2392	2392	6 with a public utility.
2393	2393	7 (O) For the delivery year beginning June 1, 2018, the
2394	2394	8 long-term renewable resources procurement plan required by
2395	2395	9 this subsection (c) shall provide for the Agency to
2396	2396	10 procure contracts to continue offering the Illinois Solar
2397	2397	11 for All Program described in subsection (b) of Section
2398	2398	12 1-56 of this Act, and the contracts approved by the
2399	2399	13 Commission shall be executed by the utilities that are
2400	2400	14 subject to this subsection (c). The long-term renewable
2401	2401	15 resources procurement plan shall allocate up to
2402	2402	16 $50,000,000 per delivery year to fund the programs, and
2403	2403	17 the plan shall determine the amount of funding to be
2404	2404	18 apportioned to the programs identified in subsection (b)
2405	2405	19 of Section 1-56 of this Act; provided that for the
2406	2406	20 delivery years beginning June 1, 2021, June 1, 2022, and
2407	2407	21 June 1, 2023, the long-term renewable resources
2408	2408	22 procurement plan may average the annual budgets over a
2409	2409	23 3-year period to account for program ramp-up. For the
2410	2410	24 delivery years beginning June 1, 2021, June 1, 2024, June
2411	2411	25 1, 2027, and June 1, 2030 and additional $10,000,000 shall
2412	2412	26 be provided to the Department of Commerce and Economic
2413	2413
2414	2414
2415	2415
2416	2416
2417	2417
2418	2418	HB5054 - 66 - LRB103 39370 JAG 69535 b
2419	2419
2420	2420
2421	2421	HB5054- 67 -LRB103 39370 JAG 69535 b HB5054 - 67 - LRB103 39370 JAG 69535 b
2422	2422	HB5054 - 67 - LRB103 39370 JAG 69535 b
2423	2423	1 Opportunity to implement the workforce development
2424	2424	2 programs and reporting as outlined in Section 16-108.12 of
2425	2425	3 the Public Utilities Act. In making the determinations
2426	2426	4 required under this subparagraph (O), the Commission shall
2427	2427	5 consider the experience and performance under the programs
2428	2428	6 and any evaluation reports. The Commission shall also
2429	2429	7 provide for an independent evaluation of those programs on
2430	2430	8 a periodic basis that are funded under this subparagraph
2431	2431	9 (O).
2432	2432	10 (P) All programs and procurements under this
2433	2433	11 subsection (c) shall be designed to encourage
2434	2434	12 participating projects to use a diverse and equitable
2435	2435	13 workforce and a diverse set of contractors, including
2436	2436	14 minority-owned businesses, disadvantaged businesses,
2437	2437	15 trade unions, graduates of any workforce training programs
2438	2438	16 administered under this Act, and small businesses.
2439	2439	17 The Agency shall develop a method to optimize
2440	2440	18 procurement of renewable energy credits from proposed
2441	2441	19 utility-scale projects that are located in communities
2442	2442	20 eligible to receive Energy Transition Community Grants
2443	2443	21 pursuant to Section 10-20 of the Energy Community
2444	2444	22 Reinvestment Act. If this requirement conflicts with other
2445	2445	23 provisions of law or the Agency determines that full
2446	2446	24 compliance with the requirements of this subparagraph (P)
2447	2447	25 would be unreasonably costly or administratively
2448	2448	26 impractical, the Agency is to propose alternative
2449	2449
2450	2450
2451	2451
2452	2452
2453	2453
2454	2454	HB5054 - 67 - LRB103 39370 JAG 69535 b
2455	2455
2456	2456
2457	2457	HB5054- 68 -LRB103 39370 JAG 69535 b HB5054 - 68 - LRB103 39370 JAG 69535 b
2458	2458	HB5054 - 68 - LRB103 39370 JAG 69535 b
2459	2459	1 approaches to achieve development of renewable energy
2460	2460	2 resources in communities eligible to receive Energy
2461	2461	3 Transition Community Grants pursuant to Section 10-20 of
2462	2462	4 the Energy Community Reinvestment Act or seek an exemption
2463	2463	5 from this requirement from the Commission.
2464	2464	6 (Q) Each facility listed in subitems (i) through (ix)
2465	2465	7 of item (1) of this subparagraph (Q) for which a renewable
2466	2466	8 energy credit delivery contract is signed after the
2467	2467	9 effective date of this amendatory Act of the 102nd General
2468	2468	10 Assembly is subject to the following requirements through
2469	2469	11 the Agency's long-term renewable resources procurement
2470	2470	12 plan:
2471	2471	13 (1) Each facility shall be subject to the
2472	2472	14 prevailing wage requirements included in the
2473	2473	15 Prevailing Wage Act. The Agency shall require
2474	2474	16 verification that all construction performed on the
2475	2475	17 facility by the renewable energy credit delivery
2476	2476	18 contract holder, its contractors, or its
2477	2477	19 subcontractors relating to construction of the
2478	2478	20 facility is performed by construction employees
2479	2479	21 receiving an amount for that work equal to or greater
2480	2480	22 than the general prevailing rate, as that term is
2481	2481	23 defined in Section 3 of the Prevailing Wage Act. For
2482	2482	24 purposes of this item (1), "house of worship" means
2483	2483	25 property that is both (1) used exclusively by a
2484	2484	26 religious society or body of persons as a place for
2485	2485
2486	2486
2487	2487
2488	2488
2489	2489
2490	2490	HB5054 - 68 - LRB103 39370 JAG 69535 b
2491	2491
2492	2492
2493	2493	HB5054- 69 -LRB103 39370 JAG 69535 b HB5054 - 69 - LRB103 39370 JAG 69535 b
2494	2494	HB5054 - 69 - LRB103 39370 JAG 69535 b
2495	2495	1 religious exercise or religious worship and (2)
2496	2496	2 recognized as exempt from taxation pursuant to Section
2497	2497	3 15-40 of the Property Tax Code. This item (1) shall
2498	2498	4 apply to any the following:
2499	2499	5 (i) all new utility-scale wind projects;
2500	2500	6 (ii) all new utility-scale photovoltaic
2501	2501	7 projects;
2502	2502	8 (iii) all new brownfield photovoltaic
2503	2503	9 projects;
2504	2504	10 (iv) all new photovoltaic community renewable
2505	2505	11 energy facilities that qualify for item (iii) of
2506	2506	12 subparagraph (K) of this paragraph (1);
2507	2507	13 (v) all new community driven community
2508	2508	14 photovoltaic projects that qualify for item (v) of
2509	2509	15 subparagraph (K) of this paragraph (1);
2510	2510	16 (vi) all new photovoltaic projects on public
2511	2511	17 school land that qualify for item (iv) of
2512	2512	18 subparagraph (K) of this paragraph (1);
2513	2513	19 (vii) all new photovoltaic distributed
2514	2514	20 renewable energy generation devices that (1)
2515	2515	21 qualify for item (i) of subparagraph (K) of this
2516	2516	22 paragraph (1); (2) are not projects that serve
2517	2517	23 single-family or multi-family residential
2518	2518	24 buildings; and (3) are not houses of worship where
2519	2519	25 the aggregate capacity including collocated
2520	2520	26 projects would not exceed 100 kilowatts;
2521	2521
2522	2522
2523	2523
2524	2524
2525	2525
2526	2526	HB5054 - 69 - LRB103 39370 JAG 69535 b
2527	2527
2528	2528
2529	2529	HB5054- 70 -LRB103 39370 JAG 69535 b HB5054 - 70 - LRB103 39370 JAG 69535 b
2530	2530	HB5054 - 70 - LRB103 39370 JAG 69535 b
2531	2531	1 (viii) all new photovoltaic distributed
2532	2532	2 renewable energy generation devices that (1)
2533	2533	3 qualify for item (ii) of subparagraph (K) of this
2534	2534	4 paragraph (1); (2) are not projects that serve
2535	2535	5 single-family or multi-family residential
2536	2536	6 buildings; and (3) are not houses of worship where
2537	2537	7 the aggregate capacity including collocated
2538	2538	8 projects would not exceed 100 kilowatts;
2539	2539	9 (ix) all new, modernized, or retooled
2540	2540	10 hydropower facilities.
2541	2541	11 (2) Renewable energy credits procured from new
2542	2542	12 utility-scale wind projects, new utility-scale solar
2543	2543	13 projects, and new brownfield solar projects pursuant
2544	2544	14 to Agency procurement events occurring after the
2545	2545	15 effective date of this amendatory Act of the 102nd
2546	2546	16 General Assembly must be from facilities built by
2547	2547	17 general contractors that must enter into a project
2548	2548	18 labor agreement, as defined by this Act, prior to
2549	2549	19 construction. The project labor agreement shall be
2550	2550	20 filed with the Director in accordance with procedures
2551	2551	21 established by the Agency through its long-term
2552	2552	22 renewable resources procurement plan. Any information
2553	2553	23 submitted to the Agency in this item (2) shall be
2554	2554	24 considered commercially sensitive information. At a
2555	2555	25 minimum, the project labor agreement must provide the
2556	2556	26 names, addresses, and occupations of the owner of the
2557	2557
2558	2558
2559	2559
2560	2560
2561	2561
2562	2562	HB5054 - 70 - LRB103 39370 JAG 69535 b
2563	2563
2564	2564
2565	2565	HB5054- 71 -LRB103 39370 JAG 69535 b HB5054 - 71 - LRB103 39370 JAG 69535 b
2566	2566	HB5054 - 71 - LRB103 39370 JAG 69535 b
2567	2567	1 plant and the individuals representing the labor
2568	2568	2 organization employees participating in the project
2569	2569	3 labor agreement consistent with the Project Labor
2570	2570	4 Agreements Act. The agreement must also specify the
2571	2571	5 terms and conditions as defined by this Act.
2572	2572	6 (3) It is the intent of this Section to ensure that
2573	2573	7 economic development occurs across Illinois
2574	2574	8 communities, that emerging businesses may grow, and
2575	2575	9 that there is improved access to the clean energy
2576	2576	10 economy by persons who have greater economic burdens
2577	2577	11 to success. The Agency shall take into consideration
2578	2578	12 the unique cost of compliance of this subparagraph (Q)
2579	2579	13 that might be borne by equity eligible contractors,
2580	2580	14 shall include such costs when determining the price of
2581	2581	15 renewable energy credits in the Adjustable Block
2582	2582	16 program, and shall take such costs into consideration
2583	2583	17 in a nondiscriminatory manner when comparing bids for
2584	2584	18 competitive procurements. The Agency shall consider
2585	2585	19 costs associated with compliance whether in the
2586	2586	20 development, financing, or construction of projects.
2587	2587	21 The Agency shall periodically review the assumptions
2588	2588	22 in these costs and may adjust prices, in compliance
2589	2589	23 with subparagraph (M) of this paragraph (1).
2590	2590	24 (R) In its long-term renewable resources procurement
2591	2591	25 plan, the Agency shall establish a self-direct renewable
2592	2592	26 portfolio standard compliance program for eligible
2593	2593
2594	2594
2595	2595
2596	2596
2597	2597
2598	2598	HB5054 - 71 - LRB103 39370 JAG 69535 b
2599	2599
2600	2600
2601	2601	HB5054- 72 -LRB103 39370 JAG 69535 b HB5054 - 72 - LRB103 39370 JAG 69535 b
2602	2602	HB5054 - 72 - LRB103 39370 JAG 69535 b
2603	2603	1 self-direct customers that purchase renewable energy
2604	2604	2 credits from utility-scale wind and solar projects through
2605	2605	3 long-term agreements for purchase of renewable energy
2606	2606	4 credits as described in this Section. Such long-term
2607	2607	5 agreements may include the purchase of energy or other
2608	2608	6 products on a physical or financial basis and may involve
2609	2609	7 an alternative retail electric supplier as defined in
2610	2610	8 Section 16-102 of the Public Utilities Act. This program
2611	2611	9 shall take effect in the delivery year commencing June 1,
2612	2612	10 2023.
2613	2613	11 (1) For the purposes of this subparagraph:
2614	2614	12 "Eligible self-direct customer" means any retail
2615	2615	13 customers of an electric utility that serves 3,000,000
2616	2616	14 or more retail customers in the State and whose total
2617	2617	15 highest 30-minute demand was more than 10,000
2618	2618	16 kilowatts, or any retail customers of an electric
2619	2619	17 utility that serves less than 3,000,000 retail
2620	2620	18 customers but more than 500,000 retail customers in
2621	2621	19 the State and whose total highest 15-minute demand was
2622	2622	20 more than 10,000 kilowatts.
2623	2623	21 "Retail customer" has the meaning set forth in
2624	2624	22 Section 16-102 of the Public Utilities Act and
2625	2625	23 multiple retail customer accounts under the same
2626	2626	24 corporate parent may aggregate their account demands
2627	2627	25 to meet the 10,000 kilowatt threshold. The criteria
2628	2628	26 for determining whether this subparagraph is
2629	2629
2630	2630
2631	2631
2632	2632
2633	2633
2634	2634	HB5054 - 72 - LRB103 39370 JAG 69535 b
2635	2635
2636	2636
2637	2637	HB5054- 73 -LRB103 39370 JAG 69535 b HB5054 - 73 - LRB103 39370 JAG 69535 b
2638	2638	HB5054 - 73 - LRB103 39370 JAG 69535 b
2639	2639	1 applicable to a retail customer shall be based on the
2640	2640	2 12 consecutive billing periods prior to the start of
2641	2641	3 the year in which the application is filed.
2642	2642	4 (2) For renewable energy credits to count toward
2643	2643	5 the self-direct renewable portfolio standard
2644	2644	6 compliance program, they must:
2645	2645	7 (i) qualify as renewable energy credits as
2646	2646	8 defined in Section 1-10 of this Act;
2647	2647	9 (ii) be sourced from one or more renewable
2648	2648	10 energy generating facilities that comply with the
2649	2649	11 geographic requirements as set forth in
2650	2650	12 subparagraph (I) of paragraph (1) of subsection
2651	2651	13 (c) as interpreted through the Agency's long-term
2652	2652	14 renewable resources procurement plan, or, where
2653	2653	15 applicable, the geographic requirements that
2654	2654	16 governed utility-scale renewable energy credits at
2655	2655	17 the time the eligible self-direct customer entered
2656	2656	18 into the applicable renewable energy credit
2657	2657	19 purchase agreement;
2658	2658	20 (iii) be procured through long-term contracts
2659	2659	21 with term lengths of at least 10 years either
2660	2660	22 directly with the renewable energy generating
2661	2661	23 facility or through a bundled power purchase
2662	2662	24 agreement, a virtual power purchase agreement, an
2663	2663	25 agreement between the renewable generating
2664	2664	26 facility, an alternative retail electric supplier,
2665	2665
2666	2666
2667	2667
2668	2668
2669	2669
2670	2670	HB5054 - 73 - LRB103 39370 JAG 69535 b
2671	2671
2672	2672
2673	2673	HB5054- 74 -LRB103 39370 JAG 69535 b HB5054 - 74 - LRB103 39370 JAG 69535 b
2674	2674	HB5054 - 74 - LRB103 39370 JAG 69535 b
2675	2675	1 and the customer, or such other structure as is
2676	2676	2 permissible under this subparagraph (R);
2677	2677	3 (iv) be equivalent in volume to at least 40%
2678	2678	4 of the eligible self-direct customer's usage,
2679	2679	5 determined annually by the eligible self-direct
2680	2680	6 customer's usage during the previous delivery
2681	2681	7 year, measured to the nearest megawatt-hour;
2682	2682	8 (v) be retired by or on behalf of the large
2683	2683	9 energy customer;
2684	2684	10 (vi) be sourced from new utility-scale wind
2685	2685	11 projects or new utility-scale solar projects; and
2686	2686	12 (vii) if the contracts for renewable energy
2687	2687	13 credits are entered into after the effective date
2688	2688	14 of this amendatory Act of the 102nd General
2689	2689	15 Assembly, the new utility-scale wind projects or
2690	2690	16 new utility-scale solar projects must comply with
2691	2691	17 the requirements established in subparagraphs (P)
2692	2692	18 and (Q) of paragraph (1) of this subsection (c)
2693	2693	19 and subsection (c-10).
2694	2694	20 (3) The self-direct renewable portfolio standard
2695	2695	21 compliance program shall be designed to allow eligible
2696	2696	22 self-direct customers to procure new renewable energy
2697	2697	23 credits from new utility-scale wind projects or new
2698	2698	24 utility-scale photovoltaic projects. The Agency shall
2699	2699	25 annually determine the amount of utility-scale
2700	2700	26 renewable energy credits it will include each year
2701	2701
2702	2702
2703	2703
2704	2704
2705	2705
2706	2706	HB5054 - 74 - LRB103 39370 JAG 69535 b
2707	2707
2708	2708
2709	2709	HB5054- 75 -LRB103 39370 JAG 69535 b HB5054 - 75 - LRB103 39370 JAG 69535 b
2710	2710	HB5054 - 75 - LRB103 39370 JAG 69535 b
2711	2711	1 from the self-direct renewable portfolio standard
2712	2712	2 compliance program, subject to receiving qualifying
2713	2713	3 applications. In making this determination, the Agency
2714	2714	4 shall evaluate publicly available analyses and studies
2715	2715	5 of the potential market size for utility-scale
2716	2716	6 renewable energy long-term purchase agreements by
2717	2717	7 commercial and industrial energy customers and make
2718	2718	8 that report publicly available. If demand for
2719	2719	9 participation in the self-direct renewable portfolio
2720	2720	10 standard compliance program exceeds availability, the
2721	2721	11 Agency shall ensure participation is evenly split
2722	2722	12 between commercial and industrial users to the extent
2723	2723	13 there is sufficient demand from both customer classes.
2724	2724	14 Each renewable energy credit procured pursuant to this
2725	2725	15 subparagraph (R) by a self-direct customer shall
2726	2726	16 reduce the total volume of renewable energy credits
2727	2727	17 the Agency is otherwise required to procure from new
2728	2728	18 utility-scale projects pursuant to subparagraph (C) of
2729	2729	19 paragraph (1) of this subsection (c) on behalf of
2730	2730	20 contracting utilities where the eligible self-direct
2731	2731	21 customer is located. The self-direct customer shall
2732	2732	22 file an annual compliance report with the Agency
2733	2733	23 pursuant to terms established by the Agency through
2734	2734	24 its long-term renewable resources procurement plan to
2735	2735	25 be eligible for participation in this program.
2736	2736	26 Customers must provide the Agency with their most
2737	2737
2738	2738
2739	2739
2740	2740
2741	2741
2742	2742	HB5054 - 75 - LRB103 39370 JAG 69535 b
2743	2743
2744	2744
2745	2745	HB5054- 76 -LRB103 39370 JAG 69535 b HB5054 - 76 - LRB103 39370 JAG 69535 b
2746	2746	HB5054 - 76 - LRB103 39370 JAG 69535 b
2747	2747	1 recent electricity billing statements or other
2748	2748	2 information deemed necessary by the Agency to
2749	2749	3 demonstrate they are an eligible self-direct customer.
2750	2750	4 (4) The Commission shall approve a reduction in
2751	2751	5 the volumetric charges collected pursuant to Section
2752	2752	6 16-108 of the Public Utilities Act for approved
2753	2753	7 eligible self-direct customers equivalent to the
2754	2754	8 anticipated cost of renewable energy credit deliveries
2755	2755	9 under contracts for new utility-scale wind and new
2756	2756	10 utility-scale solar entered for each delivery year
2757	2757	11 after the large energy customer begins retiring
2758	2758	12 eligible new utility scale renewable energy credits
2759	2759	13 for self-compliance. The self-direct credit amount
2760	2760	14 shall be determined annually and is equal to the
2761	2761	15 estimated portion of the cost authorized by
2762	2762	16 subparagraph (E) of paragraph (1) of this subsection
2763	2763	17 (c) that supported the annual procurement of
2764	2764	18 utility-scale renewable energy credits in the prior
2765	2765	19 delivery year using a methodology described in the
2766	2766	20 long-term renewable resources procurement plan,
2767	2767	21 expressed on a per kilowatthour basis, and does not
2768	2768	22 include (i) costs associated with any contracts
2769	2769	23 entered into before the delivery year in which the
2770	2770	24 customer files the initial compliance report to be
2771	2771	25 eligible for participation in the self-direct program,
2772	2772	26 and (ii) costs associated with procuring renewable
2773	2773
2774	2774
2775	2775
2776	2776
2777	2777
2778	2778	HB5054 - 76 - LRB103 39370 JAG 69535 b
2779	2779
2780	2780
2781	2781	HB5054- 77 -LRB103 39370 JAG 69535 b HB5054 - 77 - LRB103 39370 JAG 69535 b
2782	2782	HB5054 - 77 - LRB103 39370 JAG 69535 b
2783	2783	1 energy credits through existing and future contracts
2784	2784	2 through the Adjustable Block Program, subsection (c-5)
2785	2785	3 of this Section 1-75, and the Solar for All Program.
2786	2786	4 The Agency shall assist the Commission in determining
2787	2787	5 the current and future costs. The Agency must
2788	2788	6 determine the self-direct credit amount for new and
2789	2789	7 existing eligible self-direct customers and submit
2790	2790	8 this to the Commission in an annual compliance filing.
2791	2791	9 The Commission must approve the self-direct credit
2792	2792	10 amount by June 1, 2023 and June 1 of each delivery year
2793	2793	11 thereafter.
2794	2794	12 (5) Customers described in this subparagraph (R)
2795	2795	13 shall apply, on a form developed by the Agency, to the
2796	2796	14 Agency to be designated as a self-direct eligible
2797	2797	15 customer. Once the Agency determines that a
2798	2798	16 self-direct customer is eligible for participation in
2799	2799	17 the program, the self-direct customer will remain
2800	2800	18 eligible until the end of the term of the contract.
2801	2801	19 Thereafter, application may be made not less than 12
2802	2802	20 months before the filing date of the long-term
2803	2803	21 renewable resources procurement plan described in this
2804	2804	22 Act. At a minimum, such application shall contain the
2805	2805	23 following:
2806	2806	24 (i) the customer's certification that, at the
2807	2807	25 time of the customer's application, the customer
2808	2808	26 qualifies to be a self-direct eligible customer,
2809	2809
2810	2810
2811	2811
2812	2812
2813	2813
2814	2814	HB5054 - 77 - LRB103 39370 JAG 69535 b
2815	2815
2816	2816
2817	2817	HB5054- 78 -LRB103 39370 JAG 69535 b HB5054 - 78 - LRB103 39370 JAG 69535 b
2818	2818	HB5054 - 78 - LRB103 39370 JAG 69535 b
2819	2819	1 including documents demonstrating that
2820	2820	2 qualification;
2821	2821	3 (ii) the customer's certification that the
2822	2822	4 customer has entered into or will enter into by
2823	2823	5 the beginning of the applicable procurement year,
2824	2824	6 one or more bilateral contracts for new wind
2825	2825	7 projects or new photovoltaic projects, including
2826	2826	8 supporting documentation;
2827	2827	9 (iii) certification that the contract or
2828	2828	10 contracts for new renewable energy resources are
2829	2829	11 long-term contracts with term lengths of at least
2830	2830	12 10 years, including supporting documentation;
2831	2831	13 (iv) certification of the quantities of
2832	2832	14 renewable energy credits that the customer will
2833	2833	15 purchase each year under such contract or
2834	2834	16 contracts, including supporting documentation;
2835	2835	17 (v) proof that the contract is sufficient to
2836	2836	18 produce renewable energy credits to be equivalent
2837	2837	19 in volume to at least 40% of the large energy
2838	2838	20 customer's usage from the previous delivery year,
2839	2839	21 measured to the nearest megawatt-hour; and
2840	2840	22 (vi) certification that the customer intends
2841	2841	23 to maintain the contract for the duration of the
2842	2842	24 length of the contract.
2843	2843	25 (6) If a customer receives the self-direct credit
2844	2844	26 but fails to properly procure and retire renewable
2845	2845
2846	2846
2847	2847
2848	2848
2849	2849
2850	2850	HB5054 - 78 - LRB103 39370 JAG 69535 b
2851	2851
2852	2852
2853	2853	HB5054- 79 -LRB103 39370 JAG 69535 b HB5054 - 79 - LRB103 39370 JAG 69535 b
2854	2854	HB5054 - 79 - LRB103 39370 JAG 69535 b
2855	2855	1 energy credits as required under this subparagraph
2856	2856	2 (R), the Commission, on petition from the Agency and
2857	2857	3 after notice and hearing, may direct such customer's
2858	2858	4 utility to recover the cost of the wrongfully received
2859	2859	5 self-direct credits plus interest through an adder to
2860	2860	6 charges assessed pursuant to Section 16-108 of the
2861	2861	7 Public Utilities Act. Self-direct customers who
2862	2862	8 knowingly fail to properly procure and retire
2863	2863	9 renewable energy credits and do not notify the Agency
2864	2864	10 are ineligible for continued participation in the
2865	2865	11 self-direct renewable portfolio standard compliance
2866	2866	12 program.
2867	2867	13 (2) (Blank).
2868	2868	14 (3) (Blank).
2869	2869	15 (4) The electric utility shall retire all renewable
2870	2870	16 energy credits used to comply with the standard.
2871	2871	17 (5) Beginning with the 2010 delivery year and ending
2872	2872	18 June 1, 2017, an electric utility subject to this
2873	2873	19 subsection (c) shall apply the lesser of the maximum
2874	2874	20 alternative compliance payment rate or the most recent
2875	2875	21 estimated alternative compliance payment rate for its
2876	2876	22 service territory for the corresponding compliance period,
2877	2877	23 established pursuant to subsection (d) of Section 16-115D
2878	2878	24 of the Public Utilities Act to its retail customers that
2879	2879	25 take service pursuant to the electric utility's hourly
2880	2880	26 pricing tariff or tariffs. The electric utility shall
2881	2881
2882	2882
2883	2883
2884	2884
2885	2885
2886	2886	HB5054 - 79 - LRB103 39370 JAG 69535 b
2887	2887
2888	2888
2889	2889	HB5054- 80 -LRB103 39370 JAG 69535 b HB5054 - 80 - LRB103 39370 JAG 69535 b
2890	2890	HB5054 - 80 - LRB103 39370 JAG 69535 b
2891	2891	1 retain all amounts collected as a result of the
2892	2892	2 application of the alternative compliance payment rate or
2893	2893	3 rates to such customers, and, beginning in 2011, the
2894	2894	4 utility shall include in the information provided under
2895	2895	5 item (1) of subsection (d) of Section 16-111.5 of the
2896	2896	6 Public Utilities Act the amounts collected under the
2897	2897	7 alternative compliance payment rate or rates for the prior
2898	2898	8 year ending May 31. Notwithstanding any limitation on the
2899	2899	9 procurement of renewable energy resources imposed by item
2900	2900	10 (2) of this subsection (c), the Agency shall increase its
2901	2901	11 spending on the purchase of renewable energy resources to
2902	2902	12 be procured by the electric utility for the next plan year
2903	2903	13 by an amount equal to the amounts collected by the utility
2904	2904	14 under the alternative compliance payment rate or rates in
2905	2905	15 the prior year ending May 31.
2906	2906	16 (6) The electric utility shall be entitled to recover
2907	2907	17 all of its costs associated with the procurement of
2908	2908	18 renewable energy credits under plans approved under this
2909	2909	19 Section and Section 16-111.5 of the Public Utilities Act.
2910	2910	20 These costs shall include associated reasonable expenses
2911	2911	21 for implementing the procurement programs, including, but
2912	2912	22 not limited to, the costs of administering and evaluating
2913	2913	23 the Adjustable Block program, through an automatic
2914	2914	24 adjustment clause tariff in accordance with subsection (k)
2915	2915	25 of Section 16-108 of the Public Utilities Act.
2916	2916	26 (7) Renewable energy credits procured from new
2917	2917
2918	2918
2919	2919
2920	2920
2921	2921
2922	2922	HB5054 - 80 - LRB103 39370 JAG 69535 b
2923	2923
2924	2924
2925	2925	HB5054- 81 -LRB103 39370 JAG 69535 b HB5054 - 81 - LRB103 39370 JAG 69535 b
2926	2926	HB5054 - 81 - LRB103 39370 JAG 69535 b
2927	2927	1 photovoltaic projects or new distributed renewable energy
2928	2928	2 generation devices under this Section after June 1, 2017
2929	2929	3 (the effective date of Public Act 99-906) must be procured
2930	2930	4 from devices installed by a qualified person in compliance
2931	2931	5 with the requirements of Section 16-128A of the Public
2932	2932	6 Utilities Act and any rules or regulations adopted
2933	2933	7 thereunder.
2934	2934	8 In meeting the renewable energy requirements of this
2935	2935	9 subsection (c), to the extent feasible and consistent with
2936	2936	10 State and federal law, the renewable energy credit
2937	2937	11 procurements, Adjustable Block solar program, and
2938	2938	12 community renewable generation program shall provide
2939	2939	13 employment opportunities for all segments of the
2940	2940	14 population and workforce, including minority-owned and
2941	2941	15 female-owned business enterprises, and shall not,
2942	2942	16 consistent with State and federal law, discriminate based
2943	2943	17 on race or socioeconomic status.
2944	2944	18 (c-5) Procurement of renewable energy credits from new
2945	2945	19 renewable energy facilities installed at or adjacent to the
2946	2946	20 sites of electric generating facilities that burn or burned
2947	2947	21 coal as their primary fuel source.
2948	2948	22 (1) In addition to the procurement of renewable energy
2949	2949	23 credits pursuant to long-term renewable resources
2950	2950	24 procurement plans in accordance with subsection (c) of
2951	2951	25 this Section and Section 16-111.5 of the Public Utilities
2952	2952	26 Act, the Agency shall conduct procurement events in
2953	2953
2954	2954
2955	2955
2956	2956
2957	2957
2958	2958	HB5054 - 81 - LRB103 39370 JAG 69535 b
2959	2959
2960	2960
2961	2961	HB5054- 82 -LRB103 39370 JAG 69535 b HB5054 - 82 - LRB103 39370 JAG 69535 b
2962	2962	HB5054 - 82 - LRB103 39370 JAG 69535 b
2963	2963	1 accordance with this subsection (c-5) for the procurement
2964	2964	2 by electric utilities that served more than 300,000 retail
2965	2965	3 customers in this State as of January 1, 2019 of renewable
2966	2966	4 energy credits from new renewable energy facilities to be
2967	2967	5 installed at or adjacent to the sites of electric
2968	2968	6 generating facilities that, as of January 1, 2016, burned
2969	2969	7 coal as their primary fuel source and meet the other
2970	2970	8 criteria specified in this subsection (c-5). For purposes
2971	2971	9 of this subsection (c-5), "new renewable energy facility"
2972	2972	10 means a new utility-scale solar project as defined in this
2973	2973	11 Section 1-75. The renewable energy credits procured
2974	2974	12 pursuant to this subsection (c-5) may be included or
2975	2975	13 counted for purposes of compliance with the amounts of
2976	2976	14 renewable energy credits required to be procured pursuant
2977	2977	15 to subsection (c) of this Section to the extent that there
2978	2978	16 are otherwise shortfalls in compliance with such
2979	2979	17 requirements. The procurement of renewable energy credits
2980	2980	18 by electric utilities pursuant to this subsection (c-5)
2981	2981	19 shall be funded solely by revenues collected from the Coal
2982	2982	20 to Solar and Energy Storage Initiative Charge provided for
2983	2983	21 in this subsection (c-5) and subsection (i-5) of Section
2984	2984	22 16-108 of the Public Utilities Act, shall not be funded by
2985	2985	23 revenues collected through any of the other funding
2986	2986	24 mechanisms provided for in subsection (c) of this Section,
2987	2987	25 and shall not be subject to the limitation imposed by
2988	2988	26 subsection (c) on charges to retail customers for costs to
2989	2989
2990	2990
2991	2991
2992	2992
2993	2993
2994	2994	HB5054 - 82 - LRB103 39370 JAG 69535 b
2995	2995
2996	2996
2997	2997	HB5054- 83 -LRB103 39370 JAG 69535 b HB5054 - 83 - LRB103 39370 JAG 69535 b
2998	2998	HB5054 - 83 - LRB103 39370 JAG 69535 b
2999	2999	1 procure renewable energy resources pursuant to subsection
3000	3000	2 (c), and shall not be subject to any other requirements or
3001	3001	3 limitations of subsection (c).
3002	3002	4 (2) The Agency shall conduct 2 procurement events to
3003	3003	5 select owners of electric generating facilities meeting
3004	3004	6 the eligibility criteria specified in this subsection
3005	3005	7 (c-5) to enter into long-term contracts to sell renewable
3006	3006	8 energy credits to electric utilities serving more than
3007	3007	9 300,000 retail customers in this State as of January 1,
3008	3008	10 2019. The first procurement event shall be conducted no
3009	3009	11 later than March 31, 2022, unless the Agency elects to
3010	3010	12 delay it, until no later than May 1, 2022, due to its
3011	3011	13 overall volume of work, and shall be to select owners of
3012	3012	14 electric generating facilities located in this State and
3013	3013	15 south of federal Interstate Highway 80 that meet the
3014	3014	16 eligibility criteria specified in this subsection (c-5).
3015	3015	17 The second procurement event shall be conducted no sooner
3016	3016	18 than September 30, 2022 and no later than October 31, 2022
3017	3017	19 and shall be to select owners of electric generating
3018	3018	20 facilities located anywhere in this State that meet the
3019	3019	21 eligibility criteria specified in this subsection (c-5).
3020	3020	22 The Agency shall establish and announce a time period,
3021	3021	23 which shall begin no later than 30 days prior to the
3022	3022	24 scheduled date for the procurement event, during which
3023	3023	25 applicants may submit applications to be selected as
3024	3024	26 suppliers of renewable energy credits pursuant to this
3025	3025
3026	3026
3027	3027
3028	3028
3029	3029
3030	3030	HB5054 - 83 - LRB103 39370 JAG 69535 b
3031	3031
3032	3032
3033	3033	HB5054- 84 -LRB103 39370 JAG 69535 b HB5054 - 84 - LRB103 39370 JAG 69535 b
3034	3034	HB5054 - 84 - LRB103 39370 JAG 69535 b
3035	3035	1 subsection (c-5). The eligibility criteria for selection
3036	3036	2 as a supplier of renewable energy credits pursuant to this
3037	3037	3 subsection (c-5) shall be as follows:
3038	3038	4 (A) The applicant owns an electric generating
3039	3039	5 facility located in this State that: (i) as of January
3040	3040	6 1, 2016, burned coal as its primary fuel to generate
3041	3041	7 electricity; and (ii) has, or had prior to retirement,
3042	3042	8 an electric generating capacity of at least 150
3043	3043	9 megawatts. The electric generating facility can be
3044	3044	10 either: (i) retired as of the date of the procurement
3045	3045	11 event; or (ii) still operating as of the date of the
3046	3046	12 procurement event.
3047	3047	13 (B) The applicant is not (i) an electric
3048	3048	14 cooperative as defined in Section 3-119 of the Public
3049	3049	15 Utilities Act, or (ii) an entity described in
3050	3050	16 subsection (b)(1) of Section 3-105 of the Public
3051	3051	17 Utilities Act, or an association or consortium of or
3052	3052	18 an entity owned by entities described in (i) or (ii);
3053	3053	19 and the coal-fueled electric generating facility was
3054	3054	20 at one time owned, in whole or in part, by a public
3055	3055	21 utility as defined in Section 3-105 of the Public
3056	3056	22 Utilities Act.
3057	3057	23 (C) If participating in the first procurement
3058	3058	24 event, the applicant proposes and commits to construct
3059	3059	25 and operate, at the site, and if necessary for
3060	3060	26 sufficient space on property adjacent to the existing
3061	3061
3062	3062
3063	3063
3064	3064
3065	3065
3066	3066	HB5054 - 84 - LRB103 39370 JAG 69535 b
3067	3067
3068	3068
3069	3069	HB5054- 85 -LRB103 39370 JAG 69535 b HB5054 - 85 - LRB103 39370 JAG 69535 b
3070	3070	HB5054 - 85 - LRB103 39370 JAG 69535 b
3071	3071	1 property, at which the electric generating facility
3072	3072	2 identified in paragraph (A) is located: (i) a new
3073	3073	3 renewable energy facility of at least 20 megawatts but
3074	3074	4 no more than 100 megawatts of electric generating
3075	3075	5 capacity, and (ii) an energy storage facility having a
3076	3076	6 storage capacity equal to at least 2 megawatts and at
3077	3077	7 most 10 megawatts. If participating in the second
3078	3078	8 procurement event, the applicant proposes and commits
3079	3079	9 to construct and operate, at the site, and if
3080	3080	10 necessary for sufficient space on property adjacent to
3081	3081	11 the existing property, at which the electric
3082	3082	12 generating facility identified in paragraph (A) is
3083	3083	13 located: (i) a new renewable energy facility of at
3084	3084	14 least 5 megawatts but no more than 20 megawatts of
3085	3085	15 electric generating capacity, and (ii) an energy
3086	3086	16 storage facility having a storage capacity equal to at
3087	3087	17 least 0.5 megawatts and at most one megawatt.
3088	3088	18 (D) The applicant agrees that the new renewable
3089	3089	19 energy facility and the energy storage facility will
3090	3090	20 be constructed or installed by a qualified entity or
3091	3091	21 entities in compliance with the requirements of
3092	3092	22 subsection (g) of Section 16-128A of the Public
3093	3093	23 Utilities Act and any rules adopted thereunder.
3094	3094	24 (E) The applicant agrees that personnel operating
3095	3095	25 the new renewable energy facility and the energy
3096	3096	26 storage facility will have the requisite skills,
3097	3097
3098	3098
3099	3099
3100	3100
3101	3101
3102	3102	HB5054 - 85 - LRB103 39370 JAG 69535 b
3103	3103
3104	3104
3105	3105	HB5054- 86 -LRB103 39370 JAG 69535 b HB5054 - 86 - LRB103 39370 JAG 69535 b
3106	3106	HB5054 - 86 - LRB103 39370 JAG 69535 b
3107	3107	1 knowledge, training, experience, and competence, which
3108	3108	2 may be demonstrated by completion or current
3109	3109	3 participation and ultimate completion by employees of
3110	3110	4 an accredited or otherwise recognized apprenticeship
3111	3111	5 program for the employee's particular craft, trade, or
3112	3112	6 skill, including through training and education
3113	3113	7 courses and opportunities offered by the owner to
3114	3114	8 employees of the coal-fueled electric generating
3115	3115	9 facility or by previous employment experience
3116	3116	10 performing the employee's particular work skill or
3117	3117	11 function.
3118	3118	12 (F) The applicant commits that not less than the
3119	3119	13 prevailing wage, as determined pursuant to the
3120	3120	14 Prevailing Wage Act, will be paid to the applicant's
3121	3121	15 employees engaged in construction activities
3122	3122	16 associated with the new renewable energy facility and
3123	3123	17 the new energy storage facility and to the employees
3124	3124	18 of applicant's contractors engaged in construction
3125	3125	19 activities associated with the new renewable energy
3126	3126	20 facility and the new energy storage facility, and
3127	3127	21 that, on or before the commercial operation date of
3128	3128	22 the new renewable energy facility, the applicant shall
3129	3129	23 file a report with the Agency certifying that the
3130	3130	24 requirements of this subparagraph (F) have been met.
3131	3131	25 (G) The applicant commits that if selected, it
3132	3132	26 will negotiate a project labor agreement for the
3133	3133
3134	3134
3135	3135
3136	3136
3137	3137
3138	3138	HB5054 - 86 - LRB103 39370 JAG 69535 b
3139	3139
3140	3140
3141	3141	HB5054- 87 -LRB103 39370 JAG 69535 b HB5054 - 87 - LRB103 39370 JAG 69535 b
3142	3142	HB5054 - 87 - LRB103 39370 JAG 69535 b
3143	3143	1 construction of the new renewable energy facility and
3144	3144	2 associated energy storage facility that includes
3145	3145	3 provisions requiring the parties to the agreement to
3146	3146	4 work together to establish diversity threshold
3147	3147	5 requirements and to ensure best efforts to meet
3148	3148	6 diversity targets, improve diversity at the applicable
3149	3149	7 job site, create diverse apprenticeship opportunities,
3150	3150	8 and create opportunities to employ former coal-fired
3151	3151	9 power plant workers.
3152	3152	10 (H) The applicant commits to enter into a contract
3153	3153	11 or contracts for the applicable duration to provide
3154	3154	12 specified numbers of renewable energy credits each
3155	3155	13 year from the new renewable energy facility to
3156	3156	14 electric utilities that served more than 300,000
3157	3157	15 retail customers in this State as of January 1, 2019,
3158	3158	16 at a price of $30 per renewable energy credit. The
3159	3159	17 price per renewable energy credit shall be fixed at
3160	3160	18 $30 for the applicable duration and the renewable
3161	3161	19 energy credits shall not be indexed renewable energy
3162	3162	20 credits as provided for in item (v) of subparagraph
3163	3163	21 (G) of paragraph (1) of subsection (c) of Section 1-75
3164	3164	22 of this Act. The applicable duration of each contract
3165	3165	23 shall be 20 years, unless the applicant is physically
3166	3166	24 interconnected to the PJM Interconnection, LLC
3167	3167	25 transmission grid and had a generating capacity of at
3168	3168	26 least 1,200 megawatts as of January 1, 2021, in which
3169	3169
3170	3170
3171	3171
3172	3172
3173	3173
3174	3174	HB5054 - 87 - LRB103 39370 JAG 69535 b
3175	3175
3176	3176
3177	3177	HB5054- 88 -LRB103 39370 JAG 69535 b HB5054 - 88 - LRB103 39370 JAG 69535 b
3178	3178	HB5054 - 88 - LRB103 39370 JAG 69535 b
3179	3179	1 case the applicable duration of the contract shall be
3180	3180	2 15 years.
3181	3181	3 (I) The applicant's application is certified by an
3182	3182	4 officer of the applicant and by an officer of the
3183	3183	5 applicant's ultimate parent company, if any.
3184	3184	6 (3) An applicant may submit applications to contract
3185	3185	7 to supply renewable energy credits from more than one new
3186	3186	8 renewable energy facility to be constructed at or adjacent
3187	3187	9 to one or more qualifying electric generating facilities
3188	3188	10 owned by the applicant. The Agency may select new
3189	3189	11 renewable energy facilities to be located at or adjacent
3190	3190	12 to the sites of more than one qualifying electric
3191	3191	13 generation facility owned by an applicant to contract with
3192	3192	14 electric utilities to supply renewable energy credits from
3193	3193	15 such facilities.
3194	3194	16 (4) The Agency shall assess fees to each applicant to
3195	3195	17 recover the Agency's costs incurred in receiving and
3196	3196	18 evaluating applications, conducting the procurement event,
3197	3197	19 developing contracts for sale, delivery and purchase of
3198	3198	20 renewable energy credits, and monitoring the
3199	3199	21 administration of such contracts, as provided for in this
3200	3200	22 subsection (c-5), including fees paid to a procurement
3201	3201	23 administrator retained by the Agency for one or more of
3202	3202	24 these purposes.
3203	3203	25 (5) The Agency shall select the applicants and the new
3204	3204	26 renewable energy facilities to contract with electric
3205	3205
3206	3206
3207	3207
3208	3208
3209	3209
3210	3210	HB5054 - 88 - LRB103 39370 JAG 69535 b
3211	3211
3212	3212
3213	3213	HB5054- 89 -LRB103 39370 JAG 69535 b HB5054 - 89 - LRB103 39370 JAG 69535 b
3214	3214	HB5054 - 89 - LRB103 39370 JAG 69535 b
3215	3215	1 utilities to supply renewable energy credits in accordance
3216	3216	2 with this subsection (c-5). In the first procurement
3217	3217	3 event, the Agency shall select applicants and new
3218	3218	4 renewable energy facilities to supply renewable energy
3219	3219	5 credits, at a price of $30 per renewable energy credit,
3220	3220	6 aggregating to no less than 400,000 renewable energy
3221	3221	7 credits per year for the applicable duration, assuming
3222	3222	8 sufficient qualifying applications to supply, in the
3223	3223	9 aggregate, at least that amount of renewable energy
3224	3224	10 credits per year; and not more than 580,000 renewable
3225	3225	11 energy credits per year for the applicable duration. In
3226	3226	12 the second procurement event, the Agency shall select
3227	3227	13 applicants and new renewable energy facilities to supply
3228	3228	14 renewable energy credits, at a price of $30 per renewable
3229	3229	15 energy credit, aggregating to no more than 625,000
3230	3230	16 renewable energy credits per year less the amount of
3231	3231	17 renewable energy credits each year contracted for as a
3232	3232	18 result of the first procurement event, for the applicable
3233	3233	19 durations. The number of renewable energy credits to be
3234	3234	20 procured as specified in this paragraph (5) shall not be
3235	3235	21 reduced based on renewable energy credits procured in the
3236	3236	22 self-direct renewable energy credit compliance program
3237	3237	23 established pursuant to subparagraph (R) of paragraph (1)
3238	3238	24 of subsection (c) of Section 1-75.
3239	3239	25 (6) The obligation to purchase renewable energy
3240	3240	26 credits from the applicants and their new renewable energy
3241	3241
3242	3242
3243	3243
3244	3244
3245	3245
3246	3246	HB5054 - 89 - LRB103 39370 JAG 69535 b
3247	3247
3248	3248
3249	3249	HB5054- 90 -LRB103 39370 JAG 69535 b HB5054 - 90 - LRB103 39370 JAG 69535 b
3250	3250	HB5054 - 90 - LRB103 39370 JAG 69535 b
3251	3251	1 facilities selected by the Agency shall be allocated to
3252	3252	2 the electric utilities based on their respective
3253	3253	3 percentages of kilowatthours delivered to delivery
3254	3254	4 services customers to the aggregate kilowatthour
3255	3255	5 deliveries by the electric utilities to delivery services
3256	3256	6 customers for the year ended December 31, 2021. In order
3257	3257	7 to achieve these allocation percentages between or among
3258	3258	8 the electric utilities, the Agency shall require each
3259	3259	9 applicant that is selected in the procurement event to
3260	3260	10 enter into a contract with each electric utility for the
3261	3261	11 sale and purchase of renewable energy credits from each
3262	3262	12 new renewable energy facility to be constructed and
3263	3263	13 operated by the applicant, with the sale and purchase
3264	3264	14 obligations under the contracts to aggregate to the total
3265	3265	15 number of renewable energy credits per year to be supplied
3266	3266	16 by the applicant from the new renewable energy facility.
3267	3267	17 (7) The Agency shall submit its proposed selection of
3268	3268	18 applicants, new renewable energy facilities to be
3269	3269	19 constructed, and renewable energy credit amounts for each
3270	3270	20 procurement event to the Commission for approval. The
3271	3271	21 Commission shall, within 2 business days after receipt of
3272	3272	22 the Agency's proposed selections, approve the proposed
3273	3273	23 selections if it determines that the applicants and the
3274	3274	24 new renewable energy facilities to be constructed meet the
3275	3275	25 selection criteria set forth in this subsection (c-5) and
3276	3276	26 that the Agency seeks approval for contracts of applicable
3277	3277
3278	3278
3279	3279
3280	3280
3281	3281
3282	3282	HB5054 - 90 - LRB103 39370 JAG 69535 b
3283	3283
3284	3284
3285	3285	HB5054- 91 -LRB103 39370 JAG 69535 b HB5054 - 91 - LRB103 39370 JAG 69535 b
3286	3286	HB5054 - 91 - LRB103 39370 JAG 69535 b
3287	3287	1 durations aggregating to no more than the maximum amount
3288	3288	2 of renewable energy credits per year authorized by this
3289	3289	3 subsection (c-5) for the procurement event, at a price of
3290	3290	4 $30 per renewable energy credit.
3291	3291	5 (8) The Agency, in conjunction with its procurement
3292	3292	6 administrator if one is retained, the electric utilities,
3293	3293	7 and potential applicants for contracts to produce and
3294	3294	8 supply renewable energy credits pursuant to this
3295	3295	9 subsection (c-5), shall develop a standard form contract
3296	3296	10 for the sale, delivery and purchase of renewable energy
3297	3297	11 credits pursuant to this subsection (c-5). Each contract
3298	3298	12 resulting from the first procurement event shall allow for
3299	3299	13 a commercial operation date for the new renewable energy
3300	3300	14 facility of either June 1, 2023 or June 1, 2024, with such
3301	3301	15 dates subject to adjustment as provided in this paragraph.
3302	3302	16 Each contract resulting from the second procurement event
3303	3303	17 shall provide for a commercial operation date on June 1
3304	3304	18 next occurring up to 48 months after execution of the
3305	3305	19 contract. Each contract shall provide that the owner shall
3306	3306	20 receive payments for renewable energy credits for the
3307	3307	21 applicable durations beginning with the commercial
3308	3308	22 operation date of the new renewable energy facility. The
3309	3309	23 form contract shall provide for adjustments to the
3310	3310	24 commercial operation and payment start dates as needed due
3311	3311	25 to any delays in completing the procurement and
3312	3312	26 contracting processes, in finalizing interconnection
3313	3313
3314	3314
3315	3315
3316	3316
3317	3317
3318	3318	HB5054 - 91 - LRB103 39370 JAG 69535 b
3319	3319
3320	3320
3321	3321	HB5054- 92 -LRB103 39370 JAG 69535 b HB5054 - 92 - LRB103 39370 JAG 69535 b
3322	3322	HB5054 - 92 - LRB103 39370 JAG 69535 b
3323	3323	1 agreements and installing interconnection facilities, and
3324	3324	2 in obtaining other necessary governmental permits and
3325	3325	3 approvals. The form contract shall be, to the maximum
3326	3326	4 extent possible, consistent with standard electric
3327	3327	5 industry contracts for sale, delivery, and purchase of
3328	3328	6 renewable energy credits while taking into account the
3329	3329	7 specific requirements of this subsection (c-5). The form
3330	3330	8 contract shall provide for over-delivery and
3331	3331	9 under-delivery of renewable energy credits within
3332	3332	10 reasonable ranges during each 12-month period and penalty,
3333	3333	11 default, and enforcement provisions for failure of the
3334	3334	12 selling party to deliver renewable energy credits as
3335	3335	13 specified in the contract and to comply with the
3336	3336	14 requirements of this subsection (c-5). The standard form
3337	3337	15 contract shall specify that all renewable energy credits
3338	3338	16 delivered to the electric utility pursuant to the contract
3339	3339	17 shall be retired. The Agency shall make the proposed
3340	3340	18 contracts available for a reasonable period for comment by
3341	3341	19 potential applicants, and shall publish the final form
3342	3342	20 contract at least 30 days before the date of the first
3343	3343	21 procurement event.
3344	3344	22 (9) Coal to Solar and Energy Storage Initiative
3345	3345	23 Charge.
3346	3346	24 (A) By no later than July 1, 2022, each electric
3347	3347	25 utility that served more than 300,000 retail customers
3348	3348	26 in this State as of January 1, 2019 shall file a tariff
3349	3349
3350	3350
3351	3351
3352	3352
3353	3353
3354	3354	HB5054 - 92 - LRB103 39370 JAG 69535 b
3355	3355
3356	3356
3357	3357	HB5054- 93 -LRB103 39370 JAG 69535 b HB5054 - 93 - LRB103 39370 JAG 69535 b
3358	3358	HB5054 - 93 - LRB103 39370 JAG 69535 b
3359	3359	1 with the Commission for the billing and collection of
3360	3360	2 a Coal to Solar and Energy Storage Initiative Charge
3361	3361	3 in accordance with subsection (i-5) of Section 16-108
3362	3362	4 of the Public Utilities Act, with such tariff to be
3363	3363	5 effective, following review and approval or
3364	3364	6 modification by the Commission, beginning January 1,
3365	3365	7 2023. The tariff shall provide for the calculation and
3366	3366	8 setting of the electric utility's Coal to Solar and
3367	3367	9 Energy Storage Initiative Charge to collect revenues
3368	3368	10 estimated to be sufficient, in the aggregate, (i) to
3369	3369	11 enable the electric utility to pay for the renewable
3370	3370	12 energy credits it has contracted to purchase in the
3371	3371	13 delivery year beginning June 1, 2023 and each delivery
3372	3372	14 year thereafter from new renewable energy facilities
3373	3373	15 located at the sites of qualifying electric generating
3374	3374	16 facilities, and (ii) to fund the grant payments to be
3375	3375	17 made in each delivery year by the Department of
3376	3376	18 Commerce and Economic Opportunity, or any successor
3377	3377	19 department or agency, which shall be referred to in
3378	3378	20 this subsection (c-5) as the Department, pursuant to
3379	3379	21 paragraph (10) of this subsection (c-5). The electric
3380	3380	22 utility's tariff shall provide for the billing and
3381	3381	23 collection of the Coal to Solar and Energy Storage
3382	3382	24 Initiative Charge on each kilowatthour of electricity
3383	3383	25 delivered to its delivery services customers within
3384	3384	26 its service territory and shall provide for an annual
3385	3385
3386	3386
3387	3387
3388	3388
3389	3389
3390	3390	HB5054 - 93 - LRB103 39370 JAG 69535 b
3391	3391
3392	3392
3393	3393	HB5054- 94 -LRB103 39370 JAG 69535 b HB5054 - 94 - LRB103 39370 JAG 69535 b
3394	3394	HB5054 - 94 - LRB103 39370 JAG 69535 b
3395	3395	1 reconciliation of revenues collected with actual
3396	3396	2 costs, in accordance with subsection (i-5) of Section
3397	3397	3 16-108 of the Public Utilities Act.
3398	3398	4 (B) Each electric utility shall remit on a monthly
3399	3399	5 basis to the State Treasurer, for deposit in the Coal
3400	3400	6 to Solar and Energy Storage Initiative Fund provided
3401	3401	7 for in this subsection (c-5), the electric utility's
3402	3402	8 collections of the Coal to Solar and Energy Storage
3403	3403	9 Initiative Charge in the amount estimated to be needed
3404	3404	10 by the Department for grant payments pursuant to grant
3405	3405	11 contracts entered into by the Department pursuant to
3406	3406	12 paragraph (10) of this subsection (c-5).
3407	3407	13 (10) Coal to Solar and Energy Storage Initiative Fund.
3408	3408	14 (A) The Coal to Solar and Energy Storage
3409	3409	15 Initiative Fund is established as a special fund in
3410	3410	16 the State treasury. The Coal to Solar and Energy
3411	3411	17 Storage Initiative Fund is authorized to receive, by
3412	3412	18 statutory deposit, that portion specified in item (B)
3413	3413	19 of paragraph (9) of this subsection (c-5) of moneys
3414	3414	20 collected by electric utilities through imposition of
3415	3415	21 the Coal to Solar and Energy Storage Initiative Charge
3416	3416	22 required by this subsection (c-5). The Coal to Solar
3417	3417	23 and Energy Storage Initiative Fund shall be
3418	3418	24 administered by the Department to provide grants to
3419	3419	25 support the installation and operation of energy
3420	3420	26 storage facilities at the sites of qualifying electric
3421	3421
3422	3422
3423	3423
3424	3424
3425	3425
3426	3426	HB5054 - 94 - LRB103 39370 JAG 69535 b
3427	3427
3428	3428
3429	3429	HB5054- 95 -LRB103 39370 JAG 69535 b HB5054 - 95 - LRB103 39370 JAG 69535 b
3430	3430	HB5054 - 95 - LRB103 39370 JAG 69535 b
3431	3431	1 generating facilities meeting the criteria specified
3432	3432	2 in this paragraph (10).
3433	3433	3 (B) The Coal to Solar and Energy Storage
3434	3434	4 Initiative Fund shall not be subject to sweeps,
3435	3435	5 administrative charges, or chargebacks, including, but
3436	3436	6 not limited to, those authorized under Section 8h of
3437	3437	7 the State Finance Act, that would in any way result in
3438	3438	8 the transfer of those funds from the Coal to Solar and
3439	3439	9 Energy Storage Initiative Fund to any other fund of
3440	3440	10 this State or in having any such funds utilized for any
3441	3441	11 purpose other than the express purposes set forth in
3442	3442	12 this paragraph (10).
3443	3443	13 (C) The Department shall utilize up to
3444	3444	14 $280,500,000 in the Coal to Solar and Energy Storage
3445	3445	15 Initiative Fund for grants, assuming sufficient
3446	3446	16 qualifying applicants, to support installation of
3447	3447	17 energy storage facilities at the sites of up to 3
3448	3448	18 qualifying electric generating facilities located in
3449	3449	19 the Midcontinent Independent System Operator, Inc.,
3450	3450	20 region in Illinois and the sites of up to 2 qualifying
3451	3451	21 electric generating facilities located in the PJM
3452	3452	22 Interconnection, LLC region in Illinois that meet the
3453	3453	23 criteria set forth in this subparagraph (C). The
3454	3454	24 criteria for receipt of a grant pursuant to this
3455	3455	25 subparagraph (C) are as follows:
3456	3456	26 (1) the electric generating facility at the
3457	3457
3458	3458
3459	3459
3460	3460
3461	3461
3462	3462	HB5054 - 95 - LRB103 39370 JAG 69535 b
3463	3463
3464	3464
3465	3465	HB5054- 96 -LRB103 39370 JAG 69535 b HB5054 - 96 - LRB103 39370 JAG 69535 b
3466	3466	HB5054 - 96 - LRB103 39370 JAG 69535 b
3467	3467	1 site has, or had prior to retirement, an electric
3468	3468	2 generating capacity of at least 150 megawatts;
3469	3469	3 (2) the electric generating facility burns (or
3470	3470	4 burned prior to retirement) coal as its primary
3471	3471	5 source of fuel;
3472	3472	6 (3) if the electric generating facility is
3473	3473	7 retired, it was retired subsequent to January 1,
3474	3474	8 2016;
3475	3475	9 (4) the owner of the electric generating
3476	3476	10 facility has not been selected by the Agency
3477	3477	11 pursuant to this subsection (c-5) of this Section
3478	3478	12 to enter into a contract to sell renewable energy
3479	3479	13 credits to one or more electric utilities from a
3480	3480	14 new renewable energy facility located or to be
3481	3481	15 located at or adjacent to the site at which the
3482	3482	16 electric generating facility is located;
3483	3483	17 (5) the electric generating facility located
3484	3484	18 at the site was at one time owned, in whole or in
3485	3485	19 part, by a public utility as defined in Section
3486	3486	20 3-105 of the Public Utilities Act;
3487	3487	21 (6) the electric generating facility at the
3488	3488	22 site is not owned by (i) an electric cooperative
3489	3489	23 as defined in Section 3-119 of the Public
3490	3490	24 Utilities Act, or (ii) an entity described in
3491	3491	25 subsection (b)(1) of Section 3-105 of the Public
3492	3492	26 Utilities Act, or an association or consortium of
3493	3493
3494	3494
3495	3495
3496	3496
3497	3497
3498	3498	HB5054 - 96 - LRB103 39370 JAG 69535 b
3499	3499
3500	3500
3501	3501	HB5054- 97 -LRB103 39370 JAG 69535 b HB5054 - 97 - LRB103 39370 JAG 69535 b
3502	3502	HB5054 - 97 - LRB103 39370 JAG 69535 b
3503	3503	1 or an entity owned by entities described in items
3504	3504	2 (i) or (ii);
3505	3505	3 (7) the proposed energy storage facility at
3506	3506	4 the site will have energy storage capacity of at
3507	3507	5 least 37 megawatts;
3508	3508	6 (8) the owner commits to place the energy
3509	3509	7 storage facility into commercial operation on
3510	3510	8 either June 1, 2023, June 1, 2024, or June 1, 2025,
3511	3511	9 with such date subject to adjustment as needed due
3512	3512	10 to any delays in completing the grant contracting
3513	3513	11 process, in finalizing interconnection agreements
3514	3514	12 and in installing interconnection facilities, and
3515	3515	13 in obtaining necessary governmental permits and
3516	3516	14 approvals;
3517	3517	15 (9) the owner agrees that the new energy
3518	3518	16 storage facility will be constructed or installed
3519	3519	17 by a qualified entity or entities consistent with
3520	3520	18 the requirements of subsection (g) of Section
3521	3521	19 16-128A of the Public Utilities Act and any rules
3522	3522	20 adopted under that Section;
3523	3523	21 (10) the owner agrees that personnel operating
3524	3524	22 the energy storage facility will have the
3525	3525	23 requisite skills, knowledge, training, experience,
3526	3526	24 and competence, which may be demonstrated by
3527	3527	25 completion or current participation and ultimate
3528	3528	26 completion by employees of an accredited or
3529	3529
3530	3530
3531	3531
3532	3532
3533	3533
3534	3534	HB5054 - 97 - LRB103 39370 JAG 69535 b
3535	3535
3536	3536
3537	3537	HB5054- 98 -LRB103 39370 JAG 69535 b HB5054 - 98 - LRB103 39370 JAG 69535 b
3538	3538	HB5054 - 98 - LRB103 39370 JAG 69535 b
3539	3539	1 otherwise recognized apprenticeship program for
3540	3540	2 the employee's particular craft, trade, or skill,
3541	3541	3 including through training and education courses
3542	3542	4 and opportunities offered by the owner to
3543	3543	5 employees of the coal-fueled electric generating
3544	3544	6 facility or by previous employment experience
3545	3545	7 performing the employee's particular work skill or
3546	3546	8 function;
3547	3547	9 (11) the owner commits that not less than the
3548	3548	10 prevailing wage, as determined pursuant to the
3549	3549	11 Prevailing Wage Act, will be paid to the owner's
3550	3550	12 employees engaged in construction activities
3551	3551	13 associated with the new energy storage facility
3552	3552	14 and to the employees of the owner's contractors
3553	3553	15 engaged in construction activities associated with
3554	3554	16 the new energy storage facility, and that, on or
3555	3555	17 before the commercial operation date of the new
3556	3556	18 energy storage facility, the owner shall file a
3557	3557	19 report with the Department certifying that the
3558	3558	20 requirements of this subparagraph (11) have been
3559	3559	21 met; and
3560	3560	22 (12) the owner commits that if selected to
3561	3561	23 receive a grant, it will negotiate a project labor
3562	3562	24 agreement for the construction of the new energy
3563	3563	25 storage facility that includes provisions
3564	3564	26 requiring the parties to the agreement to work
3565	3565
3566	3566
3567	3567
3568	3568
3569	3569
3570	3570	HB5054 - 98 - LRB103 39370 JAG 69535 b
3571	3571
3572	3572
3573	3573	HB5054- 99 -LRB103 39370 JAG 69535 b HB5054 - 99 - LRB103 39370 JAG 69535 b
3574	3574	HB5054 - 99 - LRB103 39370 JAG 69535 b
3575	3575	1 together to establish diversity threshold
3576	3576	2 requirements and to ensure best efforts to meet
3577	3577	3 diversity targets, improve diversity at the
3578	3578	4 applicable job site, create diverse apprenticeship
3579	3579	5 opportunities, and create opportunities to employ
3580	3580	6 former coal-fired power plant workers.
3581	3581	7 The Department shall accept applications for this
3582	3582	8 grant program until March 31, 2022 and shall announce
3583	3583	9 the award of grants no later than June 1, 2022. The
3584	3584	10 Department shall make the grant payments to a
3585	3585	11 recipient in equal annual amounts for 10 years
3586	3586	12 following the date the energy storage facility is
3587	3587	13 placed into commercial operation. The annual grant
3588	3588	14 payments to a qualifying energy storage facility shall
3589	3589	15 be $110,000 per megawatt of energy storage capacity,
3590	3590	16 with total annual grant payments pursuant to this
3591	3591	17 subparagraph (C) for qualifying energy storage
3592	3592	18 facilities not to exceed $28,050,000 in any year.
3593	3593	19 (D) Grants of funding for energy storage
3594	3594	20 facilities pursuant to subparagraph (C) of this
3595	3595	21 paragraph (10), from the Coal to Solar and Energy
3596	3596	22 Storage Initiative Fund, shall be memorialized in
3597	3597	23 grant contracts between the Department and the
3598	3598	24 recipient. The grant contracts shall specify the date
3599	3599	25 or dates in each year on which the annual grant
3600	3600	26 payments shall be paid.
3601	3601
3602	3602
3603	3603
3604	3604
3605	3605
3606	3606	HB5054 - 99 - LRB103 39370 JAG 69535 b
3607	3607
3608	3608
3609	3609	HB5054- 100 -LRB103 39370 JAG 69535 b HB5054 - 100 - LRB103 39370 JAG 69535 b
3610	3610	HB5054 - 100 - LRB103 39370 JAG 69535 b
3611	3611	1 (E) All disbursements from the Coal to Solar and
3612	3612	2 Energy Storage Initiative Fund shall be made only upon
3613	3613	3 warrants of the Comptroller drawn upon the Treasurer
3614	3614	4 as custodian of the Fund upon vouchers signed by the
3615	3615	5 Director of the Department or by the person or persons
3616	3616	6 designated by the Director of the Department for that
3617	3617	7 purpose. The Comptroller is authorized to draw the
3618	3618	8 warrants upon vouchers so signed. The Treasurer shall
3619	3619	9 accept all written warrants so signed and shall be
3620	3620	10 released from liability for all payments made on those
3621	3621	11 warrants.
3622	3622	12 (11) Diversity, equity, and inclusion plans.
3623	3623	13 (A) Each applicant selected in a procurement event
3624	3624	14 to contract to supply renewable energy credits in
3625	3625	15 accordance with this subsection (c-5) and each owner
3626	3626	16 selected by the Department to receive a grant or
3627	3627	17 grants to support the construction and operation of a
3628	3628	18 new energy storage facility or facilities in
3629	3629	19 accordance with this subsection (c-5) shall, within 60
3630	3630	20 days following the Commission's approval of the
3631	3631	21 applicant to contract to supply renewable energy
3632	3632	22 credits or within 60 days following execution of a
3633	3633	23 grant contract with the Department, as applicable,
3634	3634	24 submit to the Commission a diversity, equity, and
3635	3635	25 inclusion plan setting forth the applicant's or
3636	3636	26 owner's numeric goals for the diversity composition of
3637	3637
3638	3638
3639	3639
3640	3640
3641	3641
3642	3642	HB5054 - 100 - LRB103 39370 JAG 69535 b
3643	3643
3644	3644
3645	3645	HB5054- 101 -LRB103 39370 JAG 69535 b HB5054 - 101 - LRB103 39370 JAG 69535 b
3646	3646	HB5054 - 101 - LRB103 39370 JAG 69535 b
3647	3647	1 its supplier entities for the new renewable energy
3648	3648	2 facility or new energy storage facility, as
3649	3649	3 applicable, which shall be referred to for purposes of
3650	3650	4 this paragraph (11) as the project, and the
3651	3651	5 applicant's or owner's action plan and schedule for
3652	3652	6 achieving those goals.
3653	3653	7 (B) For purposes of this paragraph (11), diversity
3654	3654	8 composition shall be based on the percentage, which
3655	3655	9 shall be a minimum of 25%, of eligible expenditures
3656	3656	10 for contract awards for materials and services (which
3657	3657	11 shall be defined in the plan) to business enterprises
3658	3658	12 owned by minority persons, women, or persons with
3659	3659	13 disabilities as defined in Section 2 of the Business
3660	3660	14 Enterprise for Minorities, Women, and Persons with
3661	3661	15 Disabilities Act, to LGBTQ business enterprises, to
3662	3662	16 veteran-owned business enterprises, and to business
3663	3663	17 enterprises located in environmental justice
3664	3664	18 communities. The diversity composition goals of the
3665	3665	19 plan may include eligible expenditures in areas for
3666	3666	20 vendor or supplier opportunities in addition to
3667	3667	21 development and construction of the project, and may
3668	3668	22 exclude from eligible expenditures materials and
3669	3669	23 services with limited market availability, limited
3670	3670	24 production and availability from suppliers in the
3671	3671	25 United States, such as solar panels and storage
3672	3672	26 batteries, and material and services that are subject
3673	3673
3674	3674
3675	3675
3676	3676
3677	3677
3678	3678	HB5054 - 101 - LRB103 39370 JAG 69535 b
3679	3679
3680	3680
3681	3681	HB5054- 102 -LRB103 39370 JAG 69535 b HB5054 - 102 - LRB103 39370 JAG 69535 b
3682	3682	HB5054 - 102 - LRB103 39370 JAG 69535 b
3683	3683	1 to critical energy infrastructure or cybersecurity
3684	3684	2 requirements or restrictions. The plan may provide
3685	3685	3 that the diversity composition goals may be met
3686	3686	4 through Tier 1 Direct or Tier 2 subcontracting
3687	3687	5 expenditures or a combination thereof for the project.
3688	3688	6 (C) The plan shall provide for, but not be limited
3689	3689	7 to: (i) internal initiatives, including multi-tier
3690	3690	8 initiatives, by the applicant or owner, or by its
3691	3691	9 engineering, procurement and construction contractor
3692	3692	10 if one is used for the project, which for purposes of
3693	3693	11 this paragraph (11) shall be referred to as the EPC
3694	3694	12 contractor, to enable diverse businesses to be
3695	3695	13 considered fairly for selection to provide materials
3696	3696	14 and services; (ii) requirements for the applicant or
3697	3697	15 owner or its EPC contractor to proactively solicit and
3698	3698	16 utilize diverse businesses to provide materials and
3699	3699	17 services; and (iii) requirements for the applicant or
3700	3700	18 owner or its EPC contractor to hire a diverse
3701	3701	19 workforce for the project. The plan shall include a
3702	3702	20 description of the applicant's or owner's diversity
3703	3703	21 recruiting efforts both for the project and for other
3704	3704	22 areas of the applicant's or owner's business
3705	3705	23 operations. The plan shall provide for the imposition
3706	3706	24 of financial penalties on the applicant's or owner's
3707	3707	25 EPC contractor for failure to exercise best efforts to
3708	3708	26 comply with and execute the EPC contractor's diversity
3709	3709
3710	3710
3711	3711
3712	3712
3713	3713
3714	3714	HB5054 - 102 - LRB103 39370 JAG 69535 b
3715	3715
3716	3716
3717	3717	HB5054- 103 -LRB103 39370 JAG 69535 b HB5054 - 103 - LRB103 39370 JAG 69535 b
3718	3718	HB5054 - 103 - LRB103 39370 JAG 69535 b
3719	3719	1 obligations under the plan. The plan may provide for
3720	3720	2 the applicant or owner to set aside a portion of the
3721	3721	3 work on the project to serve as an incubation program
3722	3722	4 for qualified businesses, as specified in the plan,
3723	3723	5 owned by minority persons, women, persons with
3724	3724	6 disabilities, LGBTQ persons, and veterans, and
3725	3725	7 businesses located in environmental justice
3726	3726	8 communities, seeking to enter the renewable energy
3727	3727	9 industry.
3728	3728	10 (D) The applicant or owner may submit a revised or
3729	3729	11 updated plan to the Commission from time to time as
3730	3730	12 circumstances warrant. The applicant or owner shall
3731	3731	13 file annual reports with the Commission detailing the
3732	3732	14 applicant's or owner's progress in implementing its
3733	3733	15 plan and achieving its goals and any modifications the
3734	3734	16 applicant or owner has made to its plan to better
3735	3735	17 achieve its diversity, equity and inclusion goals. The
3736	3736	18 applicant or owner shall file a final report on the
3737	3737	19 fifth June 1 following the commercial operation date
3738	3738	20 of the new renewable energy resource or new energy
3739	3739	21 storage facility, but the applicant or owner shall
3740	3740	22 thereafter continue to be subject to applicable
3741	3741	23 reporting requirements of Section 5-117 of the Public
3742	3742	24 Utilities Act.
3743	3743	25 (c-10) Equity accountability system. It is the purpose of
3744	3744	26 this subsection (c-10) to create an equity accountability
3745	3745
3746	3746
3747	3747
3748	3748
3749	3749
3750	3750	HB5054 - 103 - LRB103 39370 JAG 69535 b
3751	3751
3752	3752
3753	3753	HB5054- 104 -LRB103 39370 JAG 69535 b HB5054 - 104 - LRB103 39370 JAG 69535 b
3754	3754	HB5054 - 104 - LRB103 39370 JAG 69535 b
3755	3755	1 system, which includes the minimum equity standards for all
3756	3756	2 renewable energy procurements, the equity category of the
3757	3757	3 Adjustable Block Program, and the equity prioritization for
3758	3758	4 noncompetitive procurements, that is successful in advancing
3759	3759	5 priority access to the clean energy economy for businesses and
3760	3760	6 workers from communities that have been excluded from economic
3761	3761	7 opportunities in the energy sector, have been subject to
3762	3762	8 disproportionate levels of pollution, and have
3763	3763	9 disproportionately experienced negative public health
3764	3764	10 outcomes. Further, it is the purpose of this subsection to
3765	3765	11 ensure that this equity accountability system is successful in
3766	3766	12 advancing equity across Illinois by providing access to the
3767	3767	13 clean energy economy for businesses and workers from
3768	3768	14 communities that have been historically excluded from economic
3769	3769	15 opportunities in the energy sector, have been subject to
3770	3770	16 disproportionate levels of pollution, and have
3771	3771	17 disproportionately experienced negative public health
3772	3772	18 outcomes.
3773	3773	19 (1) Minimum equity standards. The Agency shall create
3774	3774	20 programs with the purpose of increasing access to and
3775	3775	21 development of equity eligible contractors, who are prime
3776	3776	22 contractors and subcontractors, across all of the programs
3777	3777	23 it manages. All applications for renewable energy credit
3778	3778	24 procurements shall comply with specific minimum equity
3779	3779	25 commitments. Starting in the delivery year immediately
3780	3780	26 following the next long-term renewable resources
3781	3781
3782	3782
3783	3783
3784	3784
3785	3785
3786	3786	HB5054 - 104 - LRB103 39370 JAG 69535 b
3787	3787
3788	3788
3789	3789	HB5054- 105 -LRB103 39370 JAG 69535 b HB5054 - 105 - LRB103 39370 JAG 69535 b
3790	3790	HB5054 - 105 - LRB103 39370 JAG 69535 b
3791	3791	1 procurement plan, at least 10% of the project workforce
3792	3792	2 for each entity participating in a procurement program
3793	3793	3 outlined in this subsection (c-10) must be done by equity
3794	3794	4 eligible persons or equity eligible contractors. The
3795	3795	5 Agency shall increase the minimum percentage each delivery
3796	3796	6 year thereafter by increments that ensure a statewide
3797	3797	7 average of 30% of the project workforce for each entity
3798	3798	8 participating in a procurement program is done by equity
3799	3799	9 eligible persons or equity eligible contractors by 2030.
3800	3800	10 The Agency shall propose a schedule of percentage
3801	3801	11 increases to the minimum equity standards in its draft
3802	3802	12 revised renewable energy resources procurement plan
3803	3803	13 submitted to the Commission for approval pursuant to
3804	3804	14 paragraph (5) of subsection (b) of Section 16-111.5 of the
3805	3805	15 Public Utilities Act. In determining these annual
3806	3806	16 increases, the Agency shall have the discretion to
3807	3807	17 establish different minimum equity standards for different
3808	3808	18 types of procurements and different regions of the State
3809	3809	19 if the Agency finds that doing so will further the
3810	3810	20 purposes of this subsection (c-10). The proposed schedule
3811	3811	21 of annual increases shall be revisited and updated on an
3812	3812	22 annual basis. Revisions shall be developed with
3813	3813	23 stakeholder input, including from equity eligible persons,
3814	3814	24 equity eligible contractors, clean energy industry
3815	3815	25 representatives, and community-based organizations that
3816	3816	26 work with such persons and contractors.
3817	3817
3818	3818
3819	3819
3820	3820
3821	3821
3822	3822	HB5054 - 105 - LRB103 39370 JAG 69535 b
3823	3823
3824	3824
3825	3825	HB5054- 106 -LRB103 39370 JAG 69535 b HB5054 - 106 - LRB103 39370 JAG 69535 b
3826	3826	HB5054 - 106 - LRB103 39370 JAG 69535 b
3827	3827	1 (A) At the start of each delivery year, the Agency
3828	3828	2 shall require a compliance plan from each entity
3829	3829	3 participating in a procurement program of subsection
3830	3830	4 (c) of this Section that demonstrates how they will
3831	3831	5 achieve compliance with the minimum equity standard
3832	3832	6 percentage for work completed in that delivery year.
3833	3833	7 If an entity applies for its approved vendor or
3834	3834	8 designee status between delivery years, the Agency
3835	3835	9 shall require a compliance plan at the time of
3836	3836	10 application.
3837	3837	11 (B) Halfway through each delivery year, the Agency
3838	3838	12 shall require each entity participating in a
3839	3839	13 procurement program to confirm that it will achieve
3840	3840	14 compliance in that delivery year, when applicable. The
3841	3841	15 Agency may offer corrective action plans to entities
3842	3842	16 that are not on track to achieve compliance.
3843	3843	17 (C) At the end of each delivery year, each entity
3844	3844	18 participating and completing work in that delivery
3845	3845	19 year in a procurement program of subsection (c) shall
3846	3846	20 submit a report to the Agency that demonstrates how it
3847	3847	21 achieved compliance with the minimum equity standards
3848	3848	22 percentage for that delivery year.
3849	3849	23 (D) The Agency shall prohibit participation in
3850	3850	24 procurement programs by an approved vendor or
3851	3851	25 designee, as applicable, or entities with which an
3852	3852	26 approved vendor or designee, as applicable, shares a
3853	3853
3854	3854
3855	3855
3856	3856
3857	3857
3858	3858	HB5054 - 106 - LRB103 39370 JAG 69535 b
3859	3859
3860	3860
3861	3861	HB5054- 107 -LRB103 39370 JAG 69535 b HB5054 - 107 - LRB103 39370 JAG 69535 b
3862	3862	HB5054 - 107 - LRB103 39370 JAG 69535 b
3863	3863	1 common parent company if an approved vendor or
3864	3864	2 designee, as applicable, failed to meet the minimum
3865	3865	3 equity standards for the prior delivery year. Waivers
3866	3866	4 approved for lack of equity eligible persons or equity
3867	3867	5 eligible contractors in a geographic area of a project
3868	3868	6 shall not count against the approved vendor or
3869	3869	7 designee. The Agency shall offer a corrective action
3870	3870	8 plan for any such entities to assist them in obtaining
3871	3871	9 compliance and shall allow continued access to
3872	3872	10 procurement programs upon an approved vendor or
3873	3873	11 designee demonstrating compliance.
3874	3874	12 (E) The Agency shall pursue efficiencies achieved
3875	3875	13 by combining with other approved vendor or designee
3876	3876	14 reporting.
3877	3877	15 (2) Equity accountability system within the Adjustable
3878	3878	16 Block program. The equity category described in item (vi)
3879	3879	17 of subparagraph (K) of subsection (c) is only available to
3880	3880	18 applicants that are equity eligible contractors.
3881	3881	19 (3) Equity accountability system within competitive
3882	3882	20 procurements. Through its long-term renewable resources
3883	3883	21 procurement plan, the Agency shall develop requirements
3884	3884	22 for ensuring that competitive procurement processes,
3885	3885	23 including utility-scale solar, utility-scale wind, and
3886	3886	24 brownfield site photovoltaic projects, advance the equity
3887	3887	25 goals of this subsection (c-10). Subject to Commission
3888	3888	26 approval, the Agency shall develop bid application
3889	3889
3890	3890
3891	3891
3892	3892
3893	3893
3894	3894	HB5054 - 107 - LRB103 39370 JAG 69535 b
3895	3895
3896	3896
3897	3897	HB5054- 108 -LRB103 39370 JAG 69535 b HB5054 - 108 - LRB103 39370 JAG 69535 b
3898	3898	HB5054 - 108 - LRB103 39370 JAG 69535 b
3899	3899	1 requirements and a bid evaluation methodology for ensuring
3900	3900	2 that utilization of equity eligible contractors, whether
3901	3901	3 as bidders or as participants on project development, is
3902	3902	4 optimized, including requiring that winning or successful
3903	3903	5 applicants for utility-scale projects are or will partner
3904	3904	6 with equity eligible contractors and giving preference to
3905	3905	7 bids through which a higher portion of contract value
3906	3906	8 flows to equity eligible contractors. To the extent
3907	3907	9 practicable, entities participating in competitive
3908	3908	10 procurements shall also be required to meet all the equity
3909	3909	11 accountability requirements for approved vendors and their
3910	3910	12 designees under this subsection (c-10). In developing
3911	3911	13 these requirements, the Agency shall also consider whether
3912	3912	14 equity goals can be further advanced through additional
3913	3913	15 measures.
3914	3914	16 (4) In the first revision to the long-term renewable
3915	3915	17 energy resources procurement plan and each revision
3916	3916	18 thereafter, the Agency shall include the following:
3917	3917	19 (A) The current status and number of equity
3918	3918	20 eligible contractors listed in the Energy Workforce
3919	3919	21 Equity Database designed in subsection (c-25),
3920	3920	22 including the number of equity eligible contractors
3921	3921	23 with current certifications as issued by the Agency.
3922	3922	24 (B) A mechanism for measuring, tracking, and
3923	3923	25 reporting project workforce at the approved vendor or
3924	3924	26 designee level, as applicable, which shall include a
3925	3925
3926	3926
3927	3927
3928	3928
3929	3929
3930	3930	HB5054 - 108 - LRB103 39370 JAG 69535 b
3931	3931
3932	3932
3933	3933	HB5054- 109 -LRB103 39370 JAG 69535 b HB5054 - 109 - LRB103 39370 JAG 69535 b
3934	3934	HB5054 - 109 - LRB103 39370 JAG 69535 b
3935	3935	1 measurement methodology and records to be made
3936	3936	2 available for audit by the Agency or the Program
3937	3937	3 Administrator.
3938	3938	4 (C) A program for approved vendors, designees,
3939	3939	5 eligible persons, and equity eligible contractors to
3940	3940	6 receive trainings, guidance, and other support from
3941	3941	7 the Agency or its designee regarding the equity
3942	3942	8 category outlined in item (vi) of subparagraph (K) of
3943	3943	9 paragraph (1) of subsection (c) and in meeting the
3944	3944	10 minimum equity standards of this subsection (c-10).
3945	3945	11 (D) A process for certifying equity eligible
3946	3946	12 contractors and equity eligible persons. The
3947	3947	13 certification process shall coordinate with the Energy
3948	3948	14 Workforce Equity Database set forth in subsection
3949	3949	15 (c-25).
3950	3950	16 (E) An application for waiver of the minimum
3951	3951	17 equity standards of this subsection, which the Agency
3952	3952	18 shall have the discretion to grant in rare
3953	3953	19 circumstances. The Agency may grant such a waiver
3954	3954	20 where the applicant provides evidence of significant
3955	3955	21 efforts toward meeting the minimum equity commitment,
3956	3956	22 including: use of the Energy Workforce Equity
3957	3957	23 Database; efforts to hire or contract with entities
3958	3958	24 that hire eligible persons; and efforts to establish
3959	3959	25 contracting relationships with eligible contractors.
3960	3960	26 The Agency shall support applicants in understanding
3961	3961
3962	3962
3963	3963
3964	3964
3965	3965
3966	3966	HB5054 - 109 - LRB103 39370 JAG 69535 b
3967	3967
3968	3968
3969	3969	HB5054- 110 -LRB103 39370 JAG 69535 b HB5054 - 110 - LRB103 39370 JAG 69535 b
3970	3970	HB5054 - 110 - LRB103 39370 JAG 69535 b
3971	3971	1 the Energy Workforce Equity Database and other
3972	3972	2 resources for pursuing compliance of the minimum
3973	3973	3 equity standards. Waivers shall be project-specific,
3974	3974	4 unless the Agency deems it necessary to grant a waiver
3975	3975	5 across a portfolio of projects, and in effect for no
3976	3976	6 longer than one year. Any waiver extension or
3977	3977	7 subsequent waiver request from an applicant shall be
3978	3978	8 subject to the requirements of this Section and shall
3979	3979	9 specify efforts made to reach compliance. When
3980	3980	10 considering whether to grant a waiver, and to what
3981	3981	11 extent, the Agency shall consider the degree to which
3982	3982	12 similarly situated applicants have been able to meet
3983	3983	13 these minimum equity commitments. For repeated waiver
3984	3984	14 requests for specific lack of eligible persons or
3985	3985	15 eligible contractors available, the Agency shall make
3986	3986	16 recommendations to target recruitment to add such
3987	3987	17 eligible persons or eligible contractors to the
3988	3988	18 database.
3989	3989	19 (5) The Agency shall collect information about work on
3990	3990	20 projects or portfolios of projects subject to these
3991	3991	21 minimum equity standards to ensure compliance with this
3992	3992	22 subsection (c-10). Reporting in furtherance of this
3993	3993	23 requirement may be combined with other annual reporting
3994	3994	24 requirements. Such reporting shall include proof of
3995	3995	25 certification of each equity eligible contractor or equity
3996	3996	26 eligible person during the applicable time period.
3997	3997
3998	3998
3999	3999
4000	4000
4001	4001
4002	4002	HB5054 - 110 - LRB103 39370 JAG 69535 b
4003	4003
4004	4004
4005	4005	HB5054- 111 -LRB103 39370 JAG 69535 b HB5054 - 111 - LRB103 39370 JAG 69535 b
4006	4006	HB5054 - 111 - LRB103 39370 JAG 69535 b
4007	4007	1 (6) The Agency shall keep confidential all information
4008	4008	2 and communication that provides private or personal
4009	4009	3 information.
4010	4010	4 (7) Modifications to the equity accountability system.
4011	4011	5 As part of the update of the long-term renewable resources
4012	4012	6 procurement plan to be initiated in 2023, or sooner if the
4013	4013	7 Agency deems necessary, the Agency shall determine the
4014	4014	8 extent to which the equity accountability system described
4015	4015	9 in this subsection (c-10) has advanced the goals of this
4016	4016	10 amendatory Act of the 102nd General Assembly, including
4017	4017	11 through the inclusion of equity eligible persons and
4018	4018	12 equity eligible contractors in renewable energy credit
4019	4019	13 projects. If the Agency finds that the equity
4020	4020	14 accountability system has failed to meet those goals to
4021	4021	15 its fullest potential, the Agency may revise the following
4022	4022	16 criteria for future Agency procurements: (A) the
4023	4023	17 percentage of project workforce, or other appropriate
4024	4024	18 workforce measure, certified as equity eligible persons or
4025	4025	19 equity eligible contractors; (B) definitions for equity
4026	4026	20 investment eligible persons and equity investment eligible
4027	4027	21 community; and (C) such other modifications necessary to
4028	4028	22 advance the goals of this amendatory Act of the 102nd
4029	4029	23 General Assembly effectively. Such revised criteria may
4030	4030	24 also establish distinct equity accountability systems for
4031	4031	25 different types of procurements or different regions of
4032	4032	26 the State if the Agency finds that doing so will further
4033	4033
4034	4034
4035	4035
4036	4036
4037	4037
4038	4038	HB5054 - 111 - LRB103 39370 JAG 69535 b
4039	4039
4040	4040
4041	4041	HB5054- 112 -LRB103 39370 JAG 69535 b HB5054 - 112 - LRB103 39370 JAG 69535 b
4042	4042	HB5054 - 112 - LRB103 39370 JAG 69535 b
4043	4043	1 the purposes of such programs. Revisions shall be
4044	4044	2 developed with stakeholder input, including from equity
4045	4045	3 eligible persons, equity eligible contractors, and
4046	4046	4 community-based organizations that work with such persons
4047	4047	5 and contractors.
4048	4048	6 (c-15) Racial discrimination elimination powers and
4049	4049	7 process.
4050	4050	8 (1) Purpose. It is the purpose of this subsection to
4051	4051	9 empower the Agency and other State actors to remedy racial
4052	4052	10 discrimination in Illinois' clean energy economy as
4053	4053	11 effectively and expediently as possible, including through
4054	4054	12 the use of race-conscious remedies, such as race-conscious
4055	4055	13 contracting and hiring goals, as consistent with State and
4056	4056	14 federal law.
4057	4057	15 (2) Racial disparity and discrimination review
4058	4058	16 process.
4059	4059	17 (A) Within one year after awarding contracts using
4060	4060	18 the equity actions processes established in this
4061	4061	19 Section, the Agency shall publish a report evaluating
4062	4062	20 the effectiveness of the equity actions point criteria
4063	4063	21 of this Section in increasing participation of equity
4064	4064	22 eligible persons and equity eligible contractors. The
4065	4065	23 report shall disaggregate participating workers and
4066	4066	24 contractors by race and ethnicity. The report shall be
4067	4067	25 forwarded to the Governor, the General Assembly, and
4068	4068	26 the Illinois Commerce Commission and be made available
4069	4069
4070	4070
4071	4071
4072	4072
4073	4073
4074	4074	HB5054 - 112 - LRB103 39370 JAG 69535 b
4075	4075
4076	4076
4077	4077	HB5054- 113 -LRB103 39370 JAG 69535 b HB5054 - 113 - LRB103 39370 JAG 69535 b
4078	4078	HB5054 - 113 - LRB103 39370 JAG 69535 b
4079	4079	1 to the public.
4080	4080	2 (B) As soon as is practicable thereafter, the
4081	4081	3 Agency, in consultation with the Department of
4082	4082	4 Commerce and Economic Opportunity, Department of
4083	4083	5 Labor, and other agencies that may be relevant, shall
4084	4084	6 commission and publish a disparity and availability
4085	4085	7 study that measures the presence and impact of
4086	4086	8 discrimination on minority businesses and workers in
4087	4087	9 Illinois' clean energy economy. The Agency may hire
4088	4088	10 consultants and experts to conduct the disparity and
4089	4089	11 availability study, with the retention of those
4090	4090	12 consultants and experts exempt from the requirements
4091	4091	13 of Section 20-10 of the Illinois Procurement Code. The
4092	4092	14 Illinois Power Agency shall forward a copy of its
4093	4093	15 findings and recommendations to the Governor, the
4094	4094	16 General Assembly, and the Illinois Commerce
4095	4095	17 Commission. If the disparity and availability study
4096	4096	18 establishes a strong basis in evidence that there is
4097	4097	19 discrimination in Illinois' clean energy economy, the
4098	4098	20 Agency, Department of Commerce and Economic
4099	4099	21 Opportunity, Department of Labor, Department of
4100	4100	22 Corrections, and other appropriate agencies shall take
4101	4101	23 appropriate remedial actions, including race-conscious
4102	4102	24 remedial actions as consistent with State and federal
4103	4103	25 law, to effectively remedy this discrimination. Such
4104	4104	26 remedies may include modification of the equity
4105	4105
4106	4106
4107	4107
4108	4108
4109	4109
4110	4110	HB5054 - 113 - LRB103 39370 JAG 69535 b
4111	4111
4112	4112
4113	4113	HB5054- 114 -LRB103 39370 JAG 69535 b HB5054 - 114 - LRB103 39370 JAG 69535 b
4114	4114	HB5054 - 114 - LRB103 39370 JAG 69535 b
4115	4115	1 accountability system as described in subsection
4116	4116	2 (c-10).
4117	4117	3 (c-20) Program data collection.
4118	4118	4 (1) Purpose. Data collection, data analysis, and
4119	4119	5 reporting are critical to ensure that the benefits of the
4120	4120	6 clean energy economy provided to Illinois residents and
4121	4121	7 businesses are equitably distributed across the State. The
4122	4122	8 Agency shall collect data from program applicants in order
4123	4123	9 to track and improve equitable distribution of benefits
4124	4124	10 across Illinois communities for all procurements the
4125	4125	11 Agency conducts. The Agency shall use this data to, among
4126	4126	12 other things, measure any potential impact of racial
4127	4127	13 discrimination on the distribution of benefits and provide
4128	4128	14 information necessary to correct any discrimination
4129	4129	15 through methods consistent with State and federal law.
4130	4130	16 (2) Agency collection of program data. The Agency
4131	4131	17 shall collect demographic and geographic data for each
4132	4132	18 entity awarded contracts under any Agency-administered
4133	4133	19 program.
4134	4134	20 (3) Required information to be collected. The Agency
4135	4135	21 shall collect the following information from applicants
4136	4136	22 and program participants where applicable:
4137	4137	23 (A) demographic information, including racial or
4138	4138	24 ethnic identity for real persons employed, contracted,
4139	4139	25 or subcontracted through the program and owners of
4140	4140	26 businesses or entities that apply to receive renewable
4141	4141
4142	4142
4143	4143
4144	4144
4145	4145
4146	4146	HB5054 - 114 - LRB103 39370 JAG 69535 b
4147	4147
4148	4148
4149	4149	HB5054- 115 -LRB103 39370 JAG 69535 b HB5054 - 115 - LRB103 39370 JAG 69535 b
4150	4150	HB5054 - 115 - LRB103 39370 JAG 69535 b
4151	4151	1 energy credits from the Agency;
4152	4152	2 (B) geographic location of the residency of real
4153	4153	3 persons employed, contracted, or subcontracted through
4154	4154	4 the program and geographic location of the
4155	4155	5 headquarters of the business or entity that applies to
4156	4156	6 receive renewable energy credits from the Agency; and
4157	4157	7 (C) any other information the Agency determines is
4158	4158	8 necessary for the purpose of achieving the purpose of
4159	4159	9 this subsection.
4160	4160	10 (4) Publication of collected information. The Agency
4161	4161	11 shall publish, at least annually, information on the
4162	4162	12 demographics of program participants on an aggregate
4163	4163	13 basis.
4164	4164	14 (5) Nothing in this subsection shall be interpreted to
4165	4165	15 limit the authority of the Agency, or other agency or
4166	4166	16 department of the State, to require or collect demographic
4167	4167	17 information from applicants of other State programs.
4168	4168	18 (c-25) Energy Workforce Equity Database.
4169	4169	19 (1) The Agency, in consultation with the Department of
4170	4170	20 Commerce and Economic Opportunity, shall create an Energy
4171	4171	21 Workforce Equity Database, and may contract with a third
4172	4172	22 party to do so ("database program administrator"). If the
4173	4173	23 Department decides to contract with a third party, that
4174	4174	24 third party shall be exempt from the requirements of
4175	4175	25 Section 20-10 of the Illinois Procurement Code. The Energy
4176	4176	26 Workforce Equity Database shall be a searchable database
4177	4177
4178	4178
4179	4179
4180	4180
4181	4181
4182	4182	HB5054 - 115 - LRB103 39370 JAG 69535 b
4183	4183
4184	4184
4185	4185	HB5054- 116 -LRB103 39370 JAG 69535 b HB5054 - 116 - LRB103 39370 JAG 69535 b
4186	4186	HB5054 - 116 - LRB103 39370 JAG 69535 b
4187	4187	1 of suppliers, vendors, and subcontractors for clean energy
4188	4188	2 industries that is:
4189	4189	3 (A) publicly accessible;
4190	4190	4 (B) easy for people to find and use;
4191	4191	5 (C) organized by company specialty or field;
4192	4192	6 (D) region-specific; and
4193	4193	7 (E) populated with information including, but not
4194	4194	8 limited to, contacts for suppliers, vendors, or
4195	4195	9 subcontractors who are minority and women-owned
4196	4196	10 business enterprise certified or who participate or
4197	4197	11 have participated in any of the programs described in
4198	4198	12 this Act.
4199	4199	13 (2) The Agency shall create an easily accessible,
4200	4200	14 public facing online tool using the database information
4201	4201	15 that includes, at a minimum, the following:
4202	4202	16 (A) a map of environmental justice and equity
4203	4203	17 investment eligible communities;
4204	4204	18 (B) job postings and recruiting opportunities;
4205	4205	19 (C) a means by which recruiting clean energy
4206	4206	20 companies can find and interact with current or former
4207	4207	21 participants of clean energy workforce training
4208	4208	22 programs;
4209	4209	23 (D) information on workforce training service
4210	4210	24 providers and training opportunities available to
4211	4211	25 prospective workers;
4212	4212	26 (E) renewable energy company diversity reporting;
4213	4213
4214	4214
4215	4215
4216	4216
4217	4217
4218	4218	HB5054 - 116 - LRB103 39370 JAG 69535 b
4219	4219
4220	4220
4221	4221	HB5054- 117 -LRB103 39370 JAG 69535 b HB5054 - 117 - LRB103 39370 JAG 69535 b
4222	4222	HB5054 - 117 - LRB103 39370 JAG 69535 b
4223	4223	1 (F) a list of equity eligible contractors with
4224	4224	2 their contact information, types of work performed,
4225	4225	3 and locations worked in;
4226	4226	4 (G) reporting on outcomes of the programs
4227	4227	5 described in the workforce programs of the Energy
4228	4228	6 Transition Act, including information such as, but not
4229	4229	7 limited to, retention rate, graduation rate, and
4230	4230	8 placement rates of trainees; and
4231	4231	9 (H) information about the Jobs and Environmental
4232	4232	10 Justice Grant Program, the Clean Energy Jobs and
4233	4233	11 Justice Fund, and other sources of capital.
4234	4234	12 (3) The Agency shall ensure the database is regularly
4235	4235	13 updated to ensure information is current and shall
4236	4236	14 coordinate with the Department of Commerce and Economic
4237	4237	15 Opportunity to ensure that it includes information on
4238	4238	16 individuals and entities that are or have participated in
4239	4239	17 the Clean Jobs Workforce Network Program, Clean Energy
4240	4240	18 Contractor Incubator Program, Returning Residents Clean
4241	4241	19 Jobs Training Program, or Clean Energy Primes Contractor
4242	4242	20 Accelerator Program.
4243	4243	21 (c-30) Enforcement of minimum equity standards. All
4244	4244	22 entities seeking renewable energy credits must submit an
4245	4245	23 annual report to demonstrate compliance with each of the
4246	4246	24 equity commitments required under subsection (c-10). If the
4247	4247	25 Agency concludes the entity has not met or maintained its
4248	4248	26 minimum equity standards required under the applicable
4249	4249
4250	4250
4251	4251
4252	4252
4253	4253
4254	4254	HB5054 - 117 - LRB103 39370 JAG 69535 b
4255	4255
4256	4256
4257	4257	HB5054- 118 -LRB103 39370 JAG 69535 b HB5054 - 118 - LRB103 39370 JAG 69535 b
4258	4258	HB5054 - 118 - LRB103 39370 JAG 69535 b
4259	4259	1 subparagraphs under subsection (c-10), the Agency shall deny
4260	4260	2 the entity's ability to participate in procurement programs in
4261	4261	3 subsection (c), including by withholding approved vendor or
4262	4262	4 designee status. The Agency may require the entity to enter
4263	4263	5 into a corrective action plan. An entity that is not
4264	4264	6 recertified for failing to meet required equity actions in
4265	4265	7 subparagraph (c-10) may reapply once they have a corrective
4266	4266	8 action plan and achieve compliance with the minimum equity
4267	4267	9 standards.
4268	4268	10 (d) Clean coal portfolio standard.
4269	4269	11 (1) The procurement plans shall include electricity
4270	4270	12 generated using clean coal. Each utility shall enter into
4271	4271	13 one or more sourcing agreements with the initial clean
4272	4272	14 coal facility, as provided in paragraph (3) of this
4273	4273	15 subsection (d), covering electricity generated by the
4274	4274	16 initial clean coal facility representing at least 5% of
4275	4275	17 each utility's total supply to serve the load of eligible
4276	4276	18 retail customers in 2015 and each year thereafter, as
4277	4277	19 described in paragraph (3) of this subsection (d), subject
4278	4278	20 to the limits specified in paragraph (2) of this
4279	4279	21 subsection (d). It is the goal of the State that by January
4280	4280	22 1, 2025, 25% of the electricity used in the State shall be
4281	4281	23 generated by cost-effective clean coal facilities. For
4282	4282	24 purposes of this subsection (d), "cost-effective" means
4283	4283	25 that the expenditures pursuant to such sourcing agreements
4284	4284	26 do not cause the limit stated in paragraph (2) of this
4285	4285
4286	4286
4287	4287
4288	4288
4289	4289
4290	4290	HB5054 - 118 - LRB103 39370 JAG 69535 b
4291	4291
4292	4292
4293	4293	HB5054- 119 -LRB103 39370 JAG 69535 b HB5054 - 119 - LRB103 39370 JAG 69535 b
4294	4294	HB5054 - 119 - LRB103 39370 JAG 69535 b
4295	4295	1 subsection (d) to be exceeded and do not exceed cost-based
4296	4296	2 benchmarks, which shall be developed to assess all
4297	4297	3 expenditures pursuant to such sourcing agreements covering
4298	4298	4 electricity generated by clean coal facilities, other than
4299	4299	5 the initial clean coal facility, by the procurement
4300	4300	6 administrator, in consultation with the Commission staff,
4301	4301	7 Agency staff, and the procurement monitor and shall be
4302	4302	8 subject to Commission review and approval.
4303	4303	9 A utility party to a sourcing agreement shall
4304	4304	10 immediately retire any emission credits that it receives
4305	4305	11 in connection with the electricity covered by such
4306	4306	12 agreement.
4307	4307	13 Utilities shall maintain adequate records documenting
4308	4308	14 the purchases under the sourcing agreement to comply with
4309	4309	15 this subsection (d) and shall file an accounting with the
4310	4310	16 load forecast that must be filed with the Agency by July 15
4311	4311	17 of each year, in accordance with subsection (d) of Section
4312	4312	18 16-111.5 of the Public Utilities Act.
4313	4313	19 A utility shall be deemed to have complied with the
4314	4314	20 clean coal portfolio standard specified in this subsection
4315	4315	21 (d) if the utility enters into a sourcing agreement as
4316	4316	22 required by this subsection (d).
4317	4317	23 (2) For purposes of this subsection (d), the required
4318	4318	24 execution of sourcing agreements with the initial clean
4319	4319	25 coal facility for a particular year shall be measured as a
4320	4320	26 percentage of the actual amount of electricity
4321	4321
4322	4322
4323	4323
4324	4324
4325	4325
4326	4326	HB5054 - 119 - LRB103 39370 JAG 69535 b
4327	4327
4328	4328
4329	4329	HB5054- 120 -LRB103 39370 JAG 69535 b HB5054 - 120 - LRB103 39370 JAG 69535 b
4330	4330	HB5054 - 120 - LRB103 39370 JAG 69535 b
4331	4331	1 (megawatt-hours) supplied by the electric utility to
4332	4332	2 eligible retail customers in the planning year ending
4333	4333	3 immediately prior to the agreement's execution. For
4334	4334	4 purposes of this subsection (d), the amount paid per
4335	4335	5 kilowatthour means the total amount paid for electric
4336	4336	6 service expressed on a per kilowatthour basis. For
4337	4337	7 purposes of this subsection (d), the total amount paid for
4338	4338	8 electric service includes without limitation amounts paid
4339	4339	9 for supply, transmission, distribution, surcharges and
4340	4340	10 add-on taxes.
4341	4341	11 Notwithstanding the requirements of this subsection
4342	4342	12 (d), the total amount paid under sourcing agreements with
4343	4343	13 clean coal facilities pursuant to the procurement plan for
4344	4344	14 any given year shall be reduced by an amount necessary to
4345	4345	15 limit the annual estimated average net increase due to the
4346	4346	16 costs of these resources included in the amounts paid by
4347	4347	17 eligible retail customers in connection with electric
4348	4348	18 service to:
4349	4349	19 (A) in 2010, no more than 0.5% of the amount paid
4350	4350	20 per kilowatthour by those customers during the year
4351	4351	21 ending May 31, 2009;
4352	4352	22 (B) in 2011, the greater of an additional 0.5% of
4353	4353	23 the amount paid per kilowatthour by those customers
4354	4354	24 during the year ending May 31, 2010 or 1% of the amount
4355	4355	25 paid per kilowatthour by those customers during the
4356	4356	26 year ending May 31, 2009;
4357	4357
4358	4358
4359	4359
4360	4360
4361	4361
4362	4362	HB5054 - 120 - LRB103 39370 JAG 69535 b
4363	4363
4364	4364
4365	4365	HB5054- 121 -LRB103 39370 JAG 69535 b HB5054 - 121 - LRB103 39370 JAG 69535 b
4366	4366	HB5054 - 121 - LRB103 39370 JAG 69535 b
4367	4367	1 (C) in 2012, the greater of an additional 0.5% of
4368	4368	2 the amount paid per kilowatthour by those customers
4369	4369	3 during the year ending May 31, 2011 or 1.5% of the
4370	4370	4 amount paid per kilowatthour by those customers during
4371	4371	5 the year ending May 31, 2009;
4372	4372	6 (D) in 2013, the greater of an additional 0.5% of
4373	4373	7 the amount paid per kilowatthour by those customers
4374	4374	8 during the year ending May 31, 2012 or 2% of the amount
4375	4375	9 paid per kilowatthour by those customers during the
4376	4376	10 year ending May 31, 2009; and
4377	4377	11 (E) thereafter, the total amount paid under
4378	4378	12 sourcing agreements with clean coal facilities
4379	4379	13 pursuant to the procurement plan for any single year
4380	4380	14 shall be reduced by an amount necessary to limit the
4381	4381	15 estimated average net increase due to the cost of
4382	4382	16 these resources included in the amounts paid by
4383	4383	17 eligible retail customers in connection with electric
4384	4384	18 service to no more than the greater of (i) 2.015% of
4385	4385	19 the amount paid per kilowatthour by those customers
4386	4386	20 during the year ending May 31, 2009 or (ii) the
4387	4387	21 incremental amount per kilowatthour paid for these
4388	4388	22 resources in 2013. These requirements may be altered
4389	4389	23 only as provided by statute.
4390	4390	24 No later than June 30, 2015, the Commission shall
4391	4391	25 review the limitation on the total amount paid under
4392	4392	26 sourcing agreements, if any, with clean coal facilities
4393	4393
4394	4394
4395	4395
4396	4396
4397	4397
4398	4398	HB5054 - 121 - LRB103 39370 JAG 69535 b
4399	4399
4400	4400
4401	4401	HB5054- 122 -LRB103 39370 JAG 69535 b HB5054 - 122 - LRB103 39370 JAG 69535 b
4402	4402	HB5054 - 122 - LRB103 39370 JAG 69535 b
4403	4403	1 pursuant to this subsection (d) and report to the General
4404	4404	2 Assembly its findings as to whether that limitation unduly
4405	4405	3 constrains the amount of electricity generated by
4406	4406	4 cost-effective clean coal facilities that is covered by
4407	4407	5 sourcing agreements.
4408	4408	6 (3) Initial clean coal facility. In order to promote
4409	4409	7 development of clean coal facilities in Illinois, each
4410	4410	8 electric utility subject to this Section shall execute a
4411	4411	9 sourcing agreement to source electricity from a proposed
4412	4412	10 clean coal facility in Illinois (the "initial clean coal
4413	4413	11 facility") that will have a nameplate capacity of at least
4414	4414	12 500 MW when commercial operation commences, that has a
4415	4415	13 final Clean Air Act permit on June 1, 2009 (the effective
4416	4416	14 date of Public Act 95-1027), and that will meet the
4417	4417	15 definition of clean coal facility in Section 1-10 of this
4418	4418	16 Act when commercial operation commences. The sourcing
4419	4419	17 agreements with this initial clean coal facility shall be
4420	4420	18 subject to both approval of the initial clean coal
4421	4421	19 facility by the General Assembly and satisfaction of the
4422	4422	20 requirements of paragraph (4) of this subsection (d) and
4423	4423	21 shall be executed within 90 days after any such approval
4424	4424	22 by the General Assembly. The Agency and the Commission
4425	4425	23 shall have authority to inspect all books and records
4426	4426	24 associated with the initial clean coal facility during the
4427	4427	25 term of such a sourcing agreement. A utility's sourcing
4428	4428	26 agreement for electricity produced by the initial clean
4429	4429
4430	4430
4431	4431
4432	4432
4433	4433
4434	4434	HB5054 - 122 - LRB103 39370 JAG 69535 b
4435	4435
4436	4436
4437	4437	HB5054- 123 -LRB103 39370 JAG 69535 b HB5054 - 123 - LRB103 39370 JAG 69535 b
4438	4438	HB5054 - 123 - LRB103 39370 JAG 69535 b
4439	4439	1 coal facility shall include:
4440	4440	2 (A) a formula contractual price (the "contract
4441	4441	3 price") approved pursuant to paragraph (4) of this
4442	4442	4 subsection (d), which shall:
4443	4443	5 (i) be determined using a cost of service
4444	4444	6 methodology employing either a level or deferred
4445	4445	7 capital recovery component, based on a capital
4446	4446	8 structure consisting of 45% equity and 55% debt,
4447	4447	9 and a return on equity as may be approved by the
4448	4448	10 Federal Energy Regulatory Commission, which in any
4449	4449	11 case may not exceed the lower of 11.5% or the rate
4450	4450	12 of return approved by the General Assembly
4451	4451	13 pursuant to paragraph (4) of this subsection (d);
4452	4452	14 and
4453	4453	15 (ii) provide that all miscellaneous net
4454	4454	16 revenue, including but not limited to net revenue
4455	4455	17 from the sale of emission allowances, if any,
4456	4456	18 substitute natural gas, if any, grants or other
4457	4457	19 support provided by the State of Illinois or the
4458	4458	20 United States Government, firm transmission
4459	4459	21 rights, if any, by-products produced by the
4460	4460	22 facility, energy or capacity derived from the
4461	4461	23 facility and not covered by a sourcing agreement
4462	4462	24 pursuant to paragraph (3) of this subsection (d)
4463	4463	25 or item (5) of subsection (d) of Section 16-115 of
4464	4464	26 the Public Utilities Act, whether generated from
4465	4465
4466	4466
4467	4467
4468	4468
4469	4469
4470	4470	HB5054 - 123 - LRB103 39370 JAG 69535 b
4471	4471
4472	4472
4473	4473	HB5054- 124 -LRB103 39370 JAG 69535 b HB5054 - 124 - LRB103 39370 JAG 69535 b
4474	4474	HB5054 - 124 - LRB103 39370 JAG 69535 b
4475	4475	1 the synthesis gas derived from coal, from SNG, or
4476	4476	2 from natural gas, shall be credited against the
4477	4477	3 revenue requirement for this initial clean coal
4478	4478	4 facility;
4479	4479	5 (B) power purchase provisions, which shall:
4480	4480	6 (i) provide that the utility party to such
4481	4481	7 sourcing agreement shall pay the contract price
4482	4482	8 for electricity delivered under such sourcing
4483	4483	9 agreement;
4484	4484	10 (ii) require delivery of electricity to the
4485	4485	11 regional transmission organization market of the
4486	4486	12 utility that is party to such sourcing agreement;
4487	4487	13 (iii) require the utility party to such
4488	4488	14 sourcing agreement to buy from the initial clean
4489	4489	15 coal facility in each hour an amount of energy
4490	4490	16 equal to all clean coal energy made available from
4491	4491	17 the initial clean coal facility during such hour
4492	4492	18 times a fraction, the numerator of which is such
4493	4493	19 utility's retail market sales of electricity
4494	4494	20 (expressed in kilowatthours sold) in the State
4495	4495	21 during the prior calendar month and the
4496	4496	22 denominator of which is the total retail market
4497	4497	23 sales of electricity (expressed in kilowatthours
4498	4498	24 sold) in the State by utilities during such prior
4499	4499	25 month and the sales of electricity (expressed in
4500	4500	26 kilowatthours sold) in the State by alternative
4501	4501
4502	4502
4503	4503
4504	4504
4505	4505
4506	4506	HB5054 - 124 - LRB103 39370 JAG 69535 b
4507	4507
4508	4508
4509	4509	HB5054- 125 -LRB103 39370 JAG 69535 b HB5054 - 125 - LRB103 39370 JAG 69535 b
4510	4510	HB5054 - 125 - LRB103 39370 JAG 69535 b
4511	4511	1 retail electric suppliers during such prior month
4512	4512	2 that are subject to the requirements of this
4513	4513	3 subsection (d) and paragraph (5) of subsection (d)
4514	4514	4 of Section 16-115 of the Public Utilities Act,
4515	4515	5 provided that the amount purchased by the utility
4516	4516	6 in any year will be limited by paragraph (2) of
4517	4517	7 this subsection (d); and
4518	4518	8 (iv) be considered pre-existing contracts in
4519	4519	9 such utility's procurement plans for eligible
4520	4520	10 retail customers;
4521	4521	11 (C) contract for differences provisions, which
4522	4522	12 shall:
4523	4523	13 (i) require the utility party to such sourcing
4524	4524	14 agreement to contract with the initial clean coal
4525	4525	15 facility in each hour with respect to an amount of
4526	4526	16 energy equal to all clean coal energy made
4527	4527	17 available from the initial clean coal facility
4528	4528	18 during such hour times a fraction, the numerator
4529	4529	19 of which is such utility's retail market sales of
4530	4530	20 electricity (expressed in kilowatthours sold) in
4531	4531	21 the utility's service territory in the State
4532	4532	22 during the prior calendar month and the
4533	4533	23 denominator of which is the total retail market
4534	4534	24 sales of electricity (expressed in kilowatthours
4535	4535	25 sold) in the State by utilities during such prior
4536	4536	26 month and the sales of electricity (expressed in
4537	4537
4538	4538
4539	4539
4540	4540
4541	4541
4542	4542	HB5054 - 125 - LRB103 39370 JAG 69535 b
4543	4543
4544	4544
4545	4545	HB5054- 126 -LRB103 39370 JAG 69535 b HB5054 - 126 - LRB103 39370 JAG 69535 b
4546	4546	HB5054 - 126 - LRB103 39370 JAG 69535 b
4547	4547	1 kilowatthours sold) in the State by alternative
4548	4548	2 retail electric suppliers during such prior month
4549	4549	3 that are subject to the requirements of this
4550	4550	4 subsection (d) and paragraph (5) of subsection (d)
4551	4551	5 of Section 16-115 of the Public Utilities Act,
4552	4552	6 provided that the amount paid by the utility in
4553	4553	7 any year will be limited by paragraph (2) of this
4554	4554	8 subsection (d);
4555	4555	9 (ii) provide that the utility's payment
4556	4556	10 obligation in respect of the quantity of
4557	4557	11 electricity determined pursuant to the preceding
4558	4558	12 clause (i) shall be limited to an amount equal to
4559	4559	13 (1) the difference between the contract price
4560	4560	14 determined pursuant to subparagraph (A) of
4561	4561	15 paragraph (3) of this subsection (d) and the
4562	4562	16 day-ahead price for electricity delivered to the
4563	4563	17 regional transmission organization market of the
4564	4564	18 utility that is party to such sourcing agreement
4565	4565	19 (or any successor delivery point at which such
4566	4566	20 utility's supply obligations are financially
4567	4567	21 settled on an hourly basis) (the "reference
4568	4568	22 price") on the day preceding the day on which the
4569	4569	23 electricity is delivered to the initial clean coal
4570	4570	24 facility busbar, multiplied by (2) the quantity of
4571	4571	25 electricity determined pursuant to the preceding
4572	4572	26 clause (i); and
4573	4573
4574	4574
4575	4575
4576	4576
4577	4577
4578	4578	HB5054 - 126 - LRB103 39370 JAG 69535 b
4579	4579
4580	4580
4581	4581	HB5054- 127 -LRB103 39370 JAG 69535 b HB5054 - 127 - LRB103 39370 JAG 69535 b
4582	4582	HB5054 - 127 - LRB103 39370 JAG 69535 b
4583	4583	1 (iii) not require the utility to take physical
4584	4584	2 delivery of the electricity produced by the
4585	4585	3 facility;
4586	4586	4 (D) general provisions, which shall:
4587	4587	5 (i) specify a term of no more than 30 years,
4588	4588	6 commencing on the commercial operation date of the
4589	4589	7 facility;
4590	4590	8 (ii) provide that utilities shall maintain
4591	4591	9 adequate records documenting purchases under the
4592	4592	10 sourcing agreements entered into to comply with
4593	4593	11 this subsection (d) and shall file an accounting
4594	4594	12 with the load forecast that must be filed with the
4595	4595	13 Agency by July 15 of each year, in accordance with
4596	4596	14 subsection (d) of Section 16-111.5 of the Public
4597	4597	15 Utilities Act;
4598	4598	16 (iii) provide that all costs associated with
4599	4599	17 the initial clean coal facility will be
4600	4600	18 periodically reported to the Federal Energy
4601	4601	19 Regulatory Commission and to purchasers in
4602	4602	20 accordance with applicable laws governing
4603	4603	21 cost-based wholesale power contracts;
4604	4604	22 (iv) permit the Illinois Power Agency to
4605	4605	23 assume ownership of the initial clean coal
4606	4606	24 facility, without monetary consideration and
4607	4607	25 otherwise on reasonable terms acceptable to the
4608	4608	26 Agency, if the Agency so requests no less than 3
4609	4609
4610	4610
4611	4611
4612	4612
4613	4613
4614	4614	HB5054 - 127 - LRB103 39370 JAG 69535 b
4615	4615
4616	4616
4617	4617	HB5054- 128 -LRB103 39370 JAG 69535 b HB5054 - 128 - LRB103 39370 JAG 69535 b
4618	4618	HB5054 - 128 - LRB103 39370 JAG 69535 b
4619	4619	1 years prior to the end of the stated contract
4620	4620	2 term;
4621	4621	3 (v) require the owner of the initial clean
4622	4622	4 coal facility to provide documentation to the
4623	4623	5 Commission each year, starting in the facility's
4624	4624	6 first year of commercial operation, accurately
4625	4625	7 reporting the quantity of carbon emissions from
4626	4626	8 the facility that have been captured and
4627	4627	9 sequestered and report any quantities of carbon
4628	4628	10 released from the site or sites at which carbon
4629	4629	11 emissions were sequestered in prior years, based
4630	4630	12 on continuous monitoring of such sites. If, in any
4631	4631	13 year after the first year of commercial operation,
4632	4632	14 the owner of the facility fails to demonstrate
4633	4633	15 that the initial clean coal facility captured and
4634	4634	16 sequestered at least 50% of the total carbon
4635	4635	17 emissions that the facility would otherwise emit
4636	4636	18 or that sequestration of emissions from prior
4637	4637	19 years has failed, resulting in the release of
4638	4638	20 carbon dioxide into the atmosphere, the owner of
4639	4639	21 the facility must offset excess emissions. Any
4640	4640	22 such carbon offsets must be permanent, additional,
4641	4641	23 verifiable, real, located within the State of
4642	4642	24 Illinois, and legally and practicably enforceable.
4643	4643	25 The cost of such offsets for the facility that are
4644	4644	26 not recoverable shall not exceed $15 million in
4645	4645
4646	4646
4647	4647
4648	4648
4649	4649
4650	4650	HB5054 - 128 - LRB103 39370 JAG 69535 b
4651	4651
4652	4652
4653	4653	HB5054- 129 -LRB103 39370 JAG 69535 b HB5054 - 129 - LRB103 39370 JAG 69535 b
4654	4654	HB5054 - 129 - LRB103 39370 JAG 69535 b
4655	4655	1 any given year. No costs of any such purchases of
4656	4656	2 carbon offsets may be recovered from a utility or
4657	4657	3 its customers. All carbon offsets purchased for
4658	4658	4 this purpose and any carbon emission credits
4659	4659	5 associated with sequestration of carbon from the
4660	4660	6 facility must be permanently retired. The initial
4661	4661	7 clean coal facility shall not forfeit its
4662	4662	8 designation as a clean coal facility if the
4663	4663	9 facility fails to fully comply with the applicable
4664	4664	10 carbon sequestration requirements in any given
4665	4665	11 year, provided the requisite offsets are
4666	4666	12 purchased. However, the Attorney General, on
4667	4667	13 behalf of the People of the State of Illinois, may
4668	4668	14 specifically enforce the facility's sequestration
4669	4669	15 requirement and the other terms of this contract
4670	4670	16 provision. Compliance with the sequestration
4671	4671	17 requirements and offset purchase requirements
4672	4672	18 specified in paragraph (3) of this subsection (d)
4673	4673	19 shall be reviewed annually by an independent
4674	4674	20 expert retained by the owner of the initial clean
4675	4675	21 coal facility, with the advance written approval
4676	4676	22 of the Attorney General. The Commission may, in
4677	4677	23 the course of the review specified in item (vii),
4678	4678	24 reduce the allowable return on equity for the
4679	4679	25 facility if the facility willfully fails to comply
4680	4680	26 with the carbon capture and sequestration
4681	4681
4682	4682
4683	4683
4684	4684
4685	4685
4686	4686	HB5054 - 129 - LRB103 39370 JAG 69535 b
4687	4687
4688	4688
4689	4689	HB5054- 130 -LRB103 39370 JAG 69535 b HB5054 - 130 - LRB103 39370 JAG 69535 b
4690	4690	HB5054 - 130 - LRB103 39370 JAG 69535 b
4691	4691	1 requirements set forth in this item (v);
4692	4692	2 (vi) include limits on, and accordingly
4693	4693	3 provide for modification of, the amount the
4694	4694	4 utility is required to source under the sourcing
4695	4695	5 agreement consistent with paragraph (2) of this
4696	4696	6 subsection (d);
4697	4697	7 (vii) require Commission review: (1) to
4698	4698	8 determine the justness, reasonableness, and
4699	4699	9 prudence of the inputs to the formula referenced
4700	4700	10 in subparagraphs (A)(i) through (A)(iii) of
4701	4701	11 paragraph (3) of this subsection (d), prior to an
4702	4702	12 adjustment in those inputs including, without
4703	4703	13 limitation, the capital structure and return on
4704	4704	14 equity, fuel costs, and other operations and
4705	4705	15 maintenance costs and (2) to approve the costs to
4706	4706	16 be passed through to customers under the sourcing
4707	4707	17 agreement by which the utility satisfies its
4708	4708	18 statutory obligations. Commission review shall
4709	4709	19 occur no less than every 3 years, regardless of
4710	4710	20 whether any adjustments have been proposed, and
4711	4711	21 shall be completed within 9 months;
4712	4712	22 (viii) limit the utility's obligation to such
4713	4713	23 amount as the utility is allowed to recover
4714	4714	24 through tariffs filed with the Commission,
4715	4715	25 provided that neither the clean coal facility nor
4716	4716	26 the utility waives any right to assert federal
4717	4717
4718	4718
4719	4719
4720	4720
4721	4721
4722	4722	HB5054 - 130 - LRB103 39370 JAG 69535 b
4723	4723
4724	4724
4725	4725	HB5054- 131 -LRB103 39370 JAG 69535 b HB5054 - 131 - LRB103 39370 JAG 69535 b
4726	4726	HB5054 - 131 - LRB103 39370 JAG 69535 b
4727	4727	1 pre-emption or any other argument in response to a
4728	4728	2 purported disallowance of recovery costs;
4729	4729	3 (ix) limit the utility's or alternative retail
4730	4730	4 electric supplier's obligation to incur any
4731	4731	5 liability until such time as the facility is in
4732	4732	6 commercial operation and generating power and
4733	4733	7 energy and such power and energy is being
4734	4734	8 delivered to the facility busbar;
4735	4735	9 (x) provide that the owner or owners of the
4736	4736	10 initial clean coal facility, which is the
4737	4737	11 counterparty to such sourcing agreement, shall
4738	4738	12 have the right from time to time to elect whether
4739	4739	13 the obligations of the utility party thereto shall
4740	4740	14 be governed by the power purchase provisions or
4741	4741	15 the contract for differences provisions;
4742	4742	16 (xi) append documentation showing that the
4743	4743	17 formula rate and contract, insofar as they relate
4744	4744	18 to the power purchase provisions, have been
4745	4745	19 approved by the Federal Energy Regulatory
4746	4746	20 Commission pursuant to Section 205 of the Federal
4747	4747	21 Power Act;
4748	4748	22 (xii) provide that any changes to the terms of
4749	4749	23 the contract, insofar as such changes relate to
4750	4750	24 the power purchase provisions, are subject to
4751	4751	25 review under the public interest standard applied
4752	4752	26 by the Federal Energy Regulatory Commission
4753	4753
4754	4754
4755	4755
4756	4756
4757	4757
4758	4758	HB5054 - 131 - LRB103 39370 JAG 69535 b
4759	4759
4760	4760
4761	4761	HB5054- 132 -LRB103 39370 JAG 69535 b HB5054 - 132 - LRB103 39370 JAG 69535 b
4762	4762	HB5054 - 132 - LRB103 39370 JAG 69535 b
4763	4763	1 pursuant to Sections 205 and 206 of the Federal
4764	4764	2 Power Act; and
4765	4765	3 (xiii) conform with customary lender
4766	4766	4 requirements in power purchase agreements used as
4767	4767	5 the basis for financing non-utility generators.
4768	4768	6 (4) Effective date of sourcing agreements with the
4769	4769	7 initial clean coal facility. Any proposed sourcing
4770	4770	8 agreement with the initial clean coal facility shall not
4771	4771	9 become effective unless the following reports are prepared
4772	4772	10 and submitted and authorizations and approvals obtained:
4773	4773	11 (i) Facility cost report. The owner of the initial
4774	4774	12 clean coal facility shall submit to the Commission,
4775	4775	13 the Agency, and the General Assembly a front-end
4776	4776	14 engineering and design study, a facility cost report,
4777	4777	15 method of financing (including but not limited to
4778	4778	16 structure and associated costs), and an operating and
4779	4779	17 maintenance cost quote for the facility (collectively
4780	4780	18 "facility cost report"), which shall be prepared in
4781	4781	19 accordance with the requirements of this paragraph (4)
4782	4782	20 of subsection (d) of this Section, and shall provide
4783	4783	21 the Commission and the Agency access to the work
4784	4784	22 papers, relied upon documents, and any other backup
4785	4785	23 documentation related to the facility cost report.
4786	4786	24 (ii) Commission report. Within 6 months following
4787	4787	25 receipt of the facility cost report, the Commission,
4788	4788	26 in consultation with the Agency, shall submit a report
4789	4789
4790	4790
4791	4791
4792	4792
4793	4793
4794	4794	HB5054 - 132 - LRB103 39370 JAG 69535 b
4795	4795
4796	4796
4797	4797	HB5054- 133 -LRB103 39370 JAG 69535 b HB5054 - 133 - LRB103 39370 JAG 69535 b
4798	4798	HB5054 - 133 - LRB103 39370 JAG 69535 b
4799	4799	1 to the General Assembly setting forth its analysis of
4800	4800	2 the facility cost report. Such report shall include,
4801	4801	3 but not be limited to, a comparison of the costs
4802	4802	4 associated with electricity generated by the initial
4803	4803	5 clean coal facility to the costs associated with
4804	4804	6 electricity generated by other types of generation
4805	4805	7 facilities, an analysis of the rate impacts on
4806	4806	8 residential and small business customers over the life
4807	4807	9 of the sourcing agreements, and an analysis of the
4808	4808	10 likelihood that the initial clean coal facility will
4809	4809	11 commence commercial operation by and be delivering
4810	4810	12 power to the facility's busbar by 2016. To assist in
4811	4811	13 the preparation of its report, the Commission, in
4812	4812	14 consultation with the Agency, may hire one or more
4813	4813	15 experts or consultants, the costs of which shall be
4814	4814	16 paid for by the owner of the initial clean coal
4815	4815	17 facility. The Commission and Agency may begin the
4816	4816	18 process of selecting such experts or consultants prior
4817	4817	19 to receipt of the facility cost report.
4818	4818	20 (iii) General Assembly approval. The proposed
4819	4819	21 sourcing agreements shall not take effect unless,
4820	4820	22 based on the facility cost report and the Commission's
4821	4821	23 report, the General Assembly enacts authorizing
4822	4822	24 legislation approving (A) the projected price, stated
4823	4823	25 in cents per kilowatthour, to be charged for
4824	4824	26 electricity generated by the initial clean coal
4825	4825
4826	4826
4827	4827
4828	4828
4829	4829
4830	4830	HB5054 - 133 - LRB103 39370 JAG 69535 b
4831	4831
4832	4832
4833	4833	HB5054- 134 -LRB103 39370 JAG 69535 b HB5054 - 134 - LRB103 39370 JAG 69535 b
4834	4834	HB5054 - 134 - LRB103 39370 JAG 69535 b
4835	4835	1 facility, (B) the projected impact on residential and
4836	4836	2 small business customers' bills over the life of the
4837	4837	3 sourcing agreements, and (C) the maximum allowable
4838	4838	4 return on equity for the project; and
4839	4839	5 (iv) Commission review. If the General Assembly
4840	4840	6 enacts authorizing legislation pursuant to
4841	4841	7 subparagraph (iii) approving a sourcing agreement, the
4842	4842	8 Commission shall, within 90 days of such enactment,
4843	4843	9 complete a review of such sourcing agreement. During
4844	4844	10 such time period, the Commission shall implement any
4845	4845	11 directive of the General Assembly, resolve any
4846	4846	12 disputes between the parties to the sourcing agreement
4847	4847	13 concerning the terms of such agreement, approve the
4848	4848	14 form of such agreement, and issue an order finding
4849	4849	15 that the sourcing agreement is prudent and reasonable.
4850	4850	16 The facility cost report shall be prepared as follows:
4851	4851	17 (A) The facility cost report shall be prepared by
4852	4852	18 duly licensed engineering and construction firms
4853	4853	19 detailing the estimated capital costs payable to one
4854	4854	20 or more contractors or suppliers for the engineering,
4855	4855	21 procurement and construction of the components
4856	4856	22 comprising the initial clean coal facility and the
4857	4857	23 estimated costs of operation and maintenance of the
4858	4858	24 facility. The facility cost report shall include:
4859	4859	25 (i) an estimate of the capital cost of the
4860	4860	26 core plant based on one or more front end
4861	4861
4862	4862
4863	4863
4864	4864
4865	4865
4866	4866	HB5054 - 134 - LRB103 39370 JAG 69535 b
4867	4867
4868	4868
4869	4869	HB5054- 135 -LRB103 39370 JAG 69535 b HB5054 - 135 - LRB103 39370 JAG 69535 b
4870	4870	HB5054 - 135 - LRB103 39370 JAG 69535 b
4871	4871	1 engineering and design studies for the
4872	4872	2 gasification island and related facilities. The
4873	4873	3 core plant shall include all civil, structural,
4874	4874	4 mechanical, electrical, control, and safety
4875	4875	5 systems.
4876	4876	6 (ii) an estimate of the capital cost of the
4877	4877	7 balance of the plant, including any capital costs
4878	4878	8 associated with sequestration of carbon dioxide
4879	4879	9 emissions and all interconnects and interfaces
4880	4880	10 required to operate the facility, such as
4881	4881	11 transmission of electricity, construction or
4882	4882	12 backfeed power supply, pipelines to transport
4883	4883	13 substitute natural gas or carbon dioxide, potable
4884	4884	14 water supply, natural gas supply, water supply,
4885	4885	15 water discharge, landfill, access roads, and coal
4886	4886	16 delivery.
4887	4887	17 The quoted construction costs shall be expressed
4888	4888	18 in nominal dollars as of the date that the quote is
4889	4889	19 prepared and shall include capitalized financing costs
4890	4890	20 during construction, taxes, insurance, and other
4891	4891	21 owner's costs, and an assumed escalation in materials
4892	4892	22 and labor beyond the date as of which the construction
4893	4893	23 cost quote is expressed.
4894	4894	24 (B) The front end engineering and design study for
4895	4895	25 the gasification island and the cost study for the
4896	4896	26 balance of plant shall include sufficient design work
4897	4897
4898	4898
4899	4899
4900	4900
4901	4901
4902	4902	HB5054 - 135 - LRB103 39370 JAG 69535 b
4903	4903
4904	4904
4905	4905	HB5054- 136 -LRB103 39370 JAG 69535 b HB5054 - 136 - LRB103 39370 JAG 69535 b
4906	4906	HB5054 - 136 - LRB103 39370 JAG 69535 b
4907	4907	1 to permit quantification of major categories of
4908	4908	2 materials, commodities and labor hours, and receipt of
4909	4909	3 quotes from vendors of major equipment required to
4910	4910	4 construct and operate the clean coal facility.
4911	4911	5 (C) The facility cost report shall also include an
4912	4912	6 operating and maintenance cost quote that will provide
4913	4913	7 the estimated cost of delivered fuel, personnel,
4914	4914	8 maintenance contracts, chemicals, catalysts,
4915	4915	9 consumables, spares, and other fixed and variable
4916	4916	10 operations and maintenance costs. The delivered fuel
4917	4917	11 cost estimate will be provided by a recognized third
4918	4918	12 party expert or experts in the fuel and transportation
4919	4919	13 industries. The balance of the operating and
4920	4920	14 maintenance cost quote, excluding delivered fuel
4921	4921	15 costs, will be developed based on the inputs provided
4922	4922	16 by duly licensed engineering and construction firms
4923	4923	17 performing the construction cost quote, potential
4924	4924	18 vendors under long-term service agreements and plant
4925	4925	19 operating agreements, or recognized third party plant
4926	4926	20 operator or operators.
4927	4927	21 The operating and maintenance cost quote
4928	4928	22 (including the cost of the front end engineering and
4929	4929	23 design study) shall be expressed in nominal dollars as
4930	4930	24 of the date that the quote is prepared and shall
4931	4931	25 include taxes, insurance, and other owner's costs, and
4932	4932	26 an assumed escalation in materials and labor beyond
4933	4933
4934	4934
4935	4935
4936	4936
4937	4937
4938	4938	HB5054 - 136 - LRB103 39370 JAG 69535 b
4939	4939
4940	4940
4941	4941	HB5054- 137 -LRB103 39370 JAG 69535 b HB5054 - 137 - LRB103 39370 JAG 69535 b
4942	4942	HB5054 - 137 - LRB103 39370 JAG 69535 b
4943	4943	1 the date as of which the operating and maintenance
4944	4944	2 cost quote is expressed.
4945	4945	3 (D) The facility cost report shall also include an
4946	4946	4 analysis of the initial clean coal facility's ability
4947	4947	5 to deliver power and energy into the applicable
4948	4948	6 regional transmission organization markets and an
4949	4949	7 analysis of the expected capacity factor for the
4950	4950	8 initial clean coal facility.
4951	4951	9 (E) Amounts paid to third parties unrelated to the
4952	4952	10 owner or owners of the initial clean coal facility to
4953	4953	11 prepare the core plant construction cost quote,
4954	4954	12 including the front end engineering and design study,
4955	4955	13 and the operating and maintenance cost quote will be
4956	4956	14 reimbursed through Coal Development Bonds.
4957	4957	15 (5) Re-powering and retrofitting coal-fired power
4958	4958	16 plants previously owned by Illinois utilities to qualify
4959	4959	17 as clean coal facilities. During the 2009 procurement
4960	4960	18 planning process and thereafter, the Agency and the
4961	4961	19 Commission shall consider sourcing agreements covering
4962	4962	20 electricity generated by power plants that were previously
4963	4963	21 owned by Illinois utilities and that have been or will be
4964	4964	22 converted into clean coal facilities, as defined by
4965	4965	23 Section 1-10 of this Act. Pursuant to such procurement
4966	4966	24 planning process, the owners of such facilities may
4967	4967	25 propose to the Agency sourcing agreements with utilities
4968	4968	26 and alternative retail electric suppliers required to
4969	4969
4970	4970
4971	4971
4972	4972
4973	4973
4974	4974	HB5054 - 137 - LRB103 39370 JAG 69535 b
4975	4975
4976	4976
4977	4977	HB5054- 138 -LRB103 39370 JAG 69535 b HB5054 - 138 - LRB103 39370 JAG 69535 b
4978	4978	HB5054 - 138 - LRB103 39370 JAG 69535 b
4979	4979	1 comply with subsection (d) of this Section and item (5) of
4980	4980	2 subsection (d) of Section 16-115 of the Public Utilities
4981	4981	3 Act, covering electricity generated by such facilities. In
4982	4982	4 the case of sourcing agreements that are power purchase
4983	4983	5 agreements, the contract price for electricity sales shall
4984	4984	6 be established on a cost of service basis. In the case of
4985	4985	7 sourcing agreements that are contracts for differences,
4986	4986	8 the contract price from which the reference price is
4987	4987	9 subtracted shall be established on a cost of service
4988	4988	10 basis. The Agency and the Commission may approve any such
4989	4989	11 utility sourcing agreements that do not exceed cost-based
4990	4990	12 benchmarks developed by the procurement administrator, in
4991	4991	13 consultation with the Commission staff, Agency staff and
4992	4992	14 the procurement monitor, subject to Commission review and
4993	4993	15 approval. The Commission shall have authority to inspect
4994	4994	16 all books and records associated with these clean coal
4995	4995	17 facilities during the term of any such contract.
4996	4996	18 (6) Costs incurred under this subsection (d) or
4997	4997	19 pursuant to a contract entered into under this subsection
4998	4998	20 (d) shall be deemed prudently incurred and reasonable in
4999	4999	21 amount and the electric utility shall be entitled to full
5000	5000	22 cost recovery pursuant to the tariffs filed with the
5001	5001	23 Commission.
5002	5002	24 (d-5) Zero emission standard.
5003	5003	25 (1) Beginning with the delivery year commencing on
5004	5004	26 June 1, 2017, the Agency shall, for electric utilities
5005	5005
5006	5006
5007	5007
5008	5008
5009	5009
5010	5010	HB5054 - 138 - LRB103 39370 JAG 69535 b
5011	5011
5012	5012
5013	5013	HB5054- 139 -LRB103 39370 JAG 69535 b HB5054 - 139 - LRB103 39370 JAG 69535 b
5014	5014	HB5054 - 139 - LRB103 39370 JAG 69535 b
5015	5015	1 that serve at least 100,000 retail customers in this
5016	5016	2 State, procure contracts with zero emission facilities
5017	5017	3 that are reasonably capable of generating cost-effective
5018	5018	4 zero emission credits in an amount approximately equal to
5019	5019	5 16% of the actual amount of electricity delivered by each
5020	5020	6 electric utility to retail customers in the State during
5021	5021	7 calendar year 2014. For an electric utility serving fewer
5022	5022	8 than 100,000 retail customers in this State that
5023	5023	9 requested, under Section 16-111.5 of the Public Utilities
5024	5024	10 Act, that the Agency procure power and energy for all or a
5025	5025	11 portion of the utility's Illinois load for the delivery
5026	5026	12 year commencing June 1, 2016, the Agency shall procure
5027	5027	13 contracts with zero emission facilities that are
5028	5028	14 reasonably capable of generating cost-effective zero
5029	5029	15 emission credits in an amount approximately equal to 16%
5030	5030	16 of the portion of power and energy to be procured by the
5031	5031	17 Agency for the utility. The duration of the contracts
5032	5032	18 procured under this subsection (d-5) shall be for a term
5033	5033	19 of 10 years ending May 31, 2027. The quantity of zero
5034	5034	20 emission credits to be procured under the contracts shall
5035	5035	21 be all of the zero emission credits generated by the zero
5036	5036	22 emission facility in each delivery year; however, if the
5037	5037	23 zero emission facility is owned by more than one entity,
5038	5038	24 then the quantity of zero emission credits to be procured
5039	5039	25 under the contracts shall be the amount of zero emission
5040	5040	26 credits that are generated from the portion of the zero
5041	5041
5042	5042
5043	5043
5044	5044
5045	5045
5046	5046	HB5054 - 139 - LRB103 39370 JAG 69535 b
5047	5047
5048	5048
5049	5049	HB5054- 140 -LRB103 39370 JAG 69535 b HB5054 - 140 - LRB103 39370 JAG 69535 b
5050	5050	HB5054 - 140 - LRB103 39370 JAG 69535 b
5051	5051	1 emission facility that is owned by the winning supplier.
5052	5052	2 The 16% value identified in this paragraph (1) is the
5053	5053	3 average of the percentage targets in subparagraph (B) of
5054	5054	4 paragraph (1) of subsection (c) of this Section for the 5
5055	5055	5 delivery years beginning June 1, 2017.
5056	5056	6 The procurement process shall be subject to the
5057	5057	7 following provisions:
5058	5058	8 (A) Those zero emission facilities that intend to
5059	5059	9 participate in the procurement shall submit to the
5060	5060	10 Agency the following eligibility information for each
5061	5061	11 zero emission facility on or before the date
5062	5062	12 established by the Agency:
5063	5063	13 (i) the in-service date and remaining useful
5064	5064	14 life of the zero emission facility;
5065	5065	15 (ii) the amount of power generated annually
5066	5066	16 for each of the years 2005 through 2015, and the
5067	5067	17 projected zero emission credits to be generated
5068	5068	18 over the remaining useful life of the zero
5069	5069	19 emission facility, which shall be used to
5070	5070	20 determine the capability of each facility;
5071	5071	21 (iii) the annual zero emission facility cost
5072	5072	22 projections, expressed on a per megawatthour
5073	5073	23 basis, over the next 6 delivery years, which shall
5074	5074	24 include the following: operation and maintenance
5075	5075	25 expenses; fully allocated overhead costs, which
5076	5076	26 shall be allocated using the methodology developed
5077	5077
5078	5078
5079	5079
5080	5080
5081	5081
5082	5082	HB5054 - 140 - LRB103 39370 JAG 69535 b
5083	5083
5084	5084
5085	5085	HB5054- 141 -LRB103 39370 JAG 69535 b HB5054 - 141 - LRB103 39370 JAG 69535 b
5086	5086	HB5054 - 141 - LRB103 39370 JAG 69535 b
5087	5087	1 by the Institute for Nuclear Power Operations;
5088	5088	2 fuel expenditures; non-fuel capital expenditures;
5089	5089	3 spent fuel expenditures; a return on working
5090	5090	4 capital; the cost of operational and market risks
5091	5091	5 that could be avoided by ceasing operation; and
5092	5092	6 any other costs necessary for continued
5093	5093	7 operations, provided that "necessary" means, for
5094	5094	8 purposes of this item (iii), that the costs could
5095	5095	9 reasonably be avoided only by ceasing operations
5096	5096	10 of the zero emission facility; and
5097	5097	11 (iv) a commitment to continue operating, for
5098	5098	12 the duration of the contract or contracts executed
5099	5099	13 under the procurement held under this subsection
5100	5100	14 (d-5), the zero emission facility that produces
5101	5101	15 the zero emission credits to be procured in the
5102	5102	16 procurement.
5103	5103	17 The information described in item (iii) of this
5104	5104	18 subparagraph (A) may be submitted on a confidential
5105	5105	19 basis and shall be treated and maintained by the
5106	5106	20 Agency, the procurement administrator, and the
5107	5107	21 Commission as confidential and proprietary and exempt
5108	5108	22 from disclosure under subparagraphs (a) and (g) of
5109	5109	23 paragraph (1) of Section 7 of the Freedom of
5110	5110	24 Information Act. The Office of Attorney General shall
5111	5111	25 have access to, and maintain the confidentiality of,
5112	5112	26 such information pursuant to Section 6.5 of the
5113	5113
5114	5114
5115	5115
5116	5116
5117	5117
5118	5118	HB5054 - 141 - LRB103 39370 JAG 69535 b
5119	5119
5120	5120
5121	5121	HB5054- 142 -LRB103 39370 JAG 69535 b HB5054 - 142 - LRB103 39370 JAG 69535 b
5122	5122	HB5054 - 142 - LRB103 39370 JAG 69535 b
5123	5123	1 Attorney General Act.
5124	5124	2 (B) The price for each zero emission credit
5125	5125	3 procured under this subsection (d-5) for each delivery
5126	5126	4 year shall be in an amount that equals the Social Cost
5127	5127	5 of Carbon, expressed on a price per megawatthour
5128	5128	6 basis. However, to ensure that the procurement remains
5129	5129	7 affordable to retail customers in this State if
5130	5130	8 electricity prices increase, the price in an
5131	5131	9 applicable delivery year shall be reduced below the
5132	5132	10 Social Cost of Carbon by the amount ("Price
5133	5133	11 Adjustment") by which the market price index for the
5134	5134	12 applicable delivery year exceeds the baseline market
5135	5135	13 price index for the consecutive 12-month period ending
5136	5136	14 May 31, 2016. If the Price Adjustment is greater than
5137	5137	15 or equal to the Social Cost of Carbon in an applicable
5138	5138	16 delivery year, then no payments shall be due in that
5139	5139	17 delivery year. The components of this calculation are
5140	5140	18 defined as follows:
5141	5141	19 (i) Social Cost of Carbon: The Social Cost of
5142	5142	20 Carbon is $16.50 per megawatthour, which is based
5143	5143	21 on the U.S. Interagency Working Group on Social
5144	5144	22 Cost of Carbon's price in the August 2016
5145	5145	23 Technical Update using a 3% discount rate,
5146	5146	24 adjusted for inflation for each year of the
5147	5147	25 program. Beginning with the delivery year
5148	5148	26 commencing June 1, 2023, the price per
5149	5149
5150	5150
5151	5151
5152	5152
5153	5153
5154	5154	HB5054 - 142 - LRB103 39370 JAG 69535 b
5155	5155
5156	5156
5157	5157	HB5054- 143 -LRB103 39370 JAG 69535 b HB5054 - 143 - LRB103 39370 JAG 69535 b
5158	5158	HB5054 - 143 - LRB103 39370 JAG 69535 b
5159	5159	1 megawatthour shall increase by $1 per
5160	5160	2 megawatthour, and continue to increase by an
5161	5161	3 additional $1 per megawatthour each delivery year
5162	5162	4 thereafter.
5163	5163	5 (ii) Baseline market price index: The baseline
5164	5164	6 market price index for the consecutive 12-month
5165	5165	7 period ending May 31, 2016 is $31.40 per
5166	5166	8 megawatthour, which is based on the sum of (aa)
5167	5167	9 the average day-ahead energy price across all
5168	5168	10 hours of such 12-month period at the PJM
5169	5169	11 Interconnection LLC Northern Illinois Hub, (bb)
5170	5170	12 50% multiplied by the Base Residual Auction, or
5171	5171	13 its successor, capacity price for the rest of the
5172	5172	14 RTO zone group determined by PJM Interconnection
5173	5173	15 LLC, divided by 24 hours per day, and (cc) 50%
5174	5174	16 multiplied by the Planning Resource Auction, or
5175	5175	17 its successor, capacity price for Zone 4
5176	5176	18 determined by the Midcontinent Independent System
5177	5177	19 Operator, Inc., divided by 24 hours per day.
5178	5178	20 (iii) Market price index: The market price
5179	5179	21 index for a delivery year shall be the sum of
5180	5180	22 projected energy prices and projected capacity
5181	5181	23 prices determined as follows:
5182	5182	24 (aa) Projected energy prices: the
5183	5183	25 projected energy prices for the applicable
5184	5184	26 delivery year shall be calculated once for the
5185	5185
5186	5186
5187	5187
5188	5188
5189	5189
5190	5190	HB5054 - 143 - LRB103 39370 JAG 69535 b
5191	5191
5192	5192
5193	5193	HB5054- 144 -LRB103 39370 JAG 69535 b HB5054 - 144 - LRB103 39370 JAG 69535 b
5194	5194	HB5054 - 144 - LRB103 39370 JAG 69535 b
5195	5195	1 year using the forward market price for the
5196	5196	2 PJM Interconnection, LLC Northern Illinois
5197	5197	3 Hub. The forward market price shall be
5198	5198	4 calculated as follows: the energy forward
5199	5199	5 prices for each month of the applicable
5200	5200	6 delivery year averaged for each trade date
5201	5201	7 during the calendar year immediately preceding
5202	5202	8 that delivery year to produce a single energy
5203	5203	9 forward price for the delivery year. The
5204	5204	10 forward market price calculation shall use
5205	5205	11 data published by the Intercontinental
5206	5206	12 Exchange, or its successor.
5207	5207	13 (bb) Projected capacity prices:
5208	5208	14 (I) For the delivery years commencing
5209	5209	15 June 1, 2017, June 1, 2018, and June 1,
5210	5210	16 2019, the projected capacity price shall
5211	5211	17 be equal to the sum of (1) 50% multiplied
5212	5212	18 by the Base Residual Auction, or its
5213	5213	19 successor, price for the rest of the RTO
5214	5214	20 zone group as determined by PJM
5215	5215	21 Interconnection LLC, divided by 24 hours
5216	5216	22 per day and, (2) 50% multiplied by the
5217	5217	23 resource auction price determined in the
5218	5218	24 resource auction administered by the
5219	5219	25 Midcontinent Independent System Operator,
5220	5220	26 Inc., in which the largest percentage of
5221	5221
5222	5222
5223	5223
5224	5224
5225	5225
5226	5226	HB5054 - 144 - LRB103 39370 JAG 69535 b
5227	5227
5228	5228
5229	5229	HB5054- 145 -LRB103 39370 JAG 69535 b HB5054 - 145 - LRB103 39370 JAG 69535 b
5230	5230	HB5054 - 145 - LRB103 39370 JAG 69535 b
5231	5231	1 load cleared for Local Resource Zone 4,
5232	5232	2 divided by 24 hours per day, and where
5233	5233	3 such price is determined by the
5234	5234	4 Midcontinent Independent System Operator,
5235	5235	5 Inc.
5236	5236	6 (II) For the delivery year commencing
5237	5237	7 June 1, 2020, and each year thereafter,
5238	5238	8 the projected capacity price shall be
5239	5239	9 equal to the sum of (1) 50% multiplied by
5240	5240	10 the Base Residual Auction, or its
5241	5241	11 successor, price for the ComEd zone as
5242	5242	12 determined by PJM Interconnection LLC,
5243	5243	13 divided by 24 hours per day, and (2) 50%
5244	5244	14 multiplied by the resource auction price
5245	5245	15 determined in the resource auction
5246	5246	16 administered by the Midcontinent
5247	5247	17 Independent System Operator, Inc., in
5248	5248	18 which the largest percentage of load
5249	5249	19 cleared for Local Resource Zone 4, divided
5250	5250	20 by 24 hours per day, and where such price
5251	5251	21 is determined by the Midcontinent
5252	5252	22 Independent System Operator, Inc.
5253	5253	23 For purposes of this subsection (d-5):
5254	5254	24 "Rest of the RTO" and "ComEd Zone" shall have
5255	5255	25 the meaning ascribed to them by PJM
5256	5256	26 Interconnection, LLC.
5257	5257
5258	5258
5259	5259
5260	5260
5261	5261
5262	5262	HB5054 - 145 - LRB103 39370 JAG 69535 b
5263	5263
5264	5264
5265	5265	HB5054- 146 -LRB103 39370 JAG 69535 b HB5054 - 146 - LRB103 39370 JAG 69535 b
5266	5266	HB5054 - 146 - LRB103 39370 JAG 69535 b
5267	5267	1 "RTO" means regional transmission
5268	5268	2 organization.
5269	5269	3 (C) No later than 45 days after June 1, 2017 (the
5270	5270	4 effective date of Public Act 99-906), the Agency shall
5271	5271	5 publish its proposed zero emission standard
5272	5272	6 procurement plan. The plan shall be consistent with
5273	5273	7 the provisions of this paragraph (1) and shall provide
5274	5274	8 that winning bids shall be selected based on public
5275	5275	9 interest criteria that include, but are not limited
5276	5276	10 to, minimizing carbon dioxide emissions that result
5277	5277	11 from electricity consumed in Illinois and minimizing
5278	5278	12 sulfur dioxide, nitrogen oxide, and particulate matter
5279	5279	13 emissions that adversely affect the citizens of this
5280	5280	14 State. In particular, the selection of winning bids
5281	5281	15 shall take into account the incremental environmental
5282	5282	16 benefits resulting from the procurement, such as any
5283	5283	17 existing environmental benefits that are preserved by
5284	5284	18 the procurements held under Public Act 99-906 and
5285	5285	19 would cease to exist if the procurements were not
5286	5286	20 held, including the preservation of zero emission
5287	5287	21 facilities. The plan shall also describe in detail how
5288	5288	22 each public interest factor shall be considered and
5289	5289	23 weighted in the bid selection process to ensure that
5290	5290	24 the public interest criteria are applied to the
5291	5291	25 procurement and given full effect.
5292	5292	26 For purposes of developing the plan, the Agency
5293	5293
5294	5294
5295	5295
5296	5296
5297	5297
5298	5298	HB5054 - 146 - LRB103 39370 JAG 69535 b
5299	5299
5300	5300
5301	5301	HB5054- 147 -LRB103 39370 JAG 69535 b HB5054 - 147 - LRB103 39370 JAG 69535 b
5302	5302	HB5054 - 147 - LRB103 39370 JAG 69535 b
5303	5303	1 shall consider any reports issued by a State agency,
5304	5304	2 board, or commission under House Resolution 1146 of
5305	5305	3 the 98th General Assembly and paragraph (4) of
5306	5306	4 subsection (d) of this Section, as well as publicly
5307	5307	5 available analyses and studies performed by or for
5308	5308	6 regional transmission organizations that serve the
5309	5309	7 State and their independent market monitors.
5310	5310	8 Upon publishing of the zero emission standard
5311	5311	9 procurement plan, copies of the plan shall be posted
5312	5312	10 and made publicly available on the Agency's website.
5313	5313	11 All interested parties shall have 10 days following
5314	5314	12 the date of posting to provide comment to the Agency on
5315	5315	13 the plan. All comments shall be posted to the Agency's
5316	5316	14 website. Following the end of the comment period, but
5317	5317	15 no more than 60 days later than June 1, 2017 (the
5318	5318	16 effective date of Public Act 99-906), the Agency shall
5319	5319	17 revise the plan as necessary based on the comments
5320	5320	18 received and file its zero emission standard
5321	5321	19 procurement plan with the Commission.
5322	5322	20 If the Commission determines that the plan will
5323	5323	21 result in the procurement of cost-effective zero
5324	5324	22 emission credits, then the Commission shall, after
5325	5325	23 notice and hearing, but no later than 45 days after the
5326	5326	24 Agency filed the plan, approve the plan or approve
5327	5327	25 with modification. For purposes of this subsection
5328	5328	26 (d-5), "cost effective" means the projected costs of
5329	5329
5330	5330
5331	5331
5332	5332
5333	5333
5334	5334	HB5054 - 147 - LRB103 39370 JAG 69535 b
5335	5335
5336	5336
5337	5337	HB5054- 148 -LRB103 39370 JAG 69535 b HB5054 - 148 - LRB103 39370 JAG 69535 b
5338	5338	HB5054 - 148 - LRB103 39370 JAG 69535 b
5339	5339	1 procuring zero emission credits from zero emission
5340	5340	2 facilities do not cause the limit stated in paragraph
5341	5341	3 (2) of this subsection to be exceeded.
5342	5342	4 (C-5) As part of the Commission's review and
5343	5343	5 acceptance or rejection of the procurement results,
5344	5344	6 the Commission shall, in its public notice of
5345	5345	7 successful bidders:
5346	5346	8 (i) identify how the winning bids satisfy the
5347	5347	9 public interest criteria described in subparagraph
5348	5348	10 (C) of this paragraph (1) of minimizing carbon
5349	5349	11 dioxide emissions that result from electricity
5350	5350	12 consumed in Illinois and minimizing sulfur
5351	5351	13 dioxide, nitrogen oxide, and particulate matter
5352	5352	14 emissions that adversely affect the citizens of
5353	5353	15 this State;
5354	5354	16 (ii) specifically address how the selection of
5355	5355	17 winning bids takes into account the incremental
5356	5356	18 environmental benefits resulting from the
5357	5357	19 procurement, including any existing environmental
5358	5358	20 benefits that are preserved by the procurements
5359	5359	21 held under Public Act 99-906 and would have ceased
5360	5360	22 to exist if the procurements had not been held,
5361	5361	23 such as the preservation of zero emission
5362	5362	24 facilities;
5363	5363	25 (iii) quantify the environmental benefit of
5364	5364	26 preserving the resources identified in item (ii)
5365	5365
5366	5366
5367	5367
5368	5368
5369	5369
5370	5370	HB5054 - 148 - LRB103 39370 JAG 69535 b
5371	5371
5372	5372
5373	5373	HB5054- 149 -LRB103 39370 JAG 69535 b HB5054 - 149 - LRB103 39370 JAG 69535 b
5374	5374	HB5054 - 149 - LRB103 39370 JAG 69535 b
5375	5375	1 of this subparagraph (C-5), including the
5376	5376	2 following:
5377	5377	3 (aa) the value of avoided greenhouse gas
5378	5378	4 emissions measured as the product of the zero
5379	5379	5 emission facilities' output over the contract
5380	5380	6 term multiplied by the U.S. Environmental
5381	5381	7 Protection Agency eGrid subregion carbon
5382	5382	8 dioxide emission rate and the U.S. Interagency
5383	5383	9 Working Group on Social Cost of Carbon's price
5384	5384	10 in the August 2016 Technical Update using a 3%
5385	5385	11 discount rate, adjusted for inflation for each
5386	5386	12 delivery year; and
5387	5387	13 (bb) the costs of replacement with other
5388	5388	14 zero carbon dioxide resources, including wind
5389	5389	15 and photovoltaic, based upon the simple
5390	5390	16 average of the following:
5391	5391	17 (I) the price, or if there is more
5392	5392	18 than one price, the average of the prices,
5393	5393	19 paid for renewable energy credits from new
5394	5394	20 utility-scale wind projects in the
5395	5395	21 procurement events specified in item (i)
5396	5396	22 of subparagraph (G) of paragraph (1) of
5397	5397	23 subsection (c) of this Section; and
5398	5398	24 (II) the price, or if there is more
5399	5399	25 than one price, the average of the prices,
5400	5400	26 paid for renewable energy credits from new
5401	5401
5402	5402
5403	5403
5404	5404
5405	5405
5406	5406	HB5054 - 149 - LRB103 39370 JAG 69535 b
5407	5407
5408	5408
5409	5409	HB5054- 150 -LRB103 39370 JAG 69535 b HB5054 - 150 - LRB103 39370 JAG 69535 b
5410	5410	HB5054 - 150 - LRB103 39370 JAG 69535 b
5411	5411	1 utility-scale solar projects and
5412	5412	2 brownfield site photovoltaic projects in
5413	5413	3 the procurement events specified in item
5414	5414	4 (ii) of subparagraph (G) of paragraph (1)
5415	5415	5 of subsection (c) of this Section and,
5416	5416	6 after January 1, 2015, renewable energy
5417	5417	7 credits from photovoltaic distributed
5418	5418	8 generation projects in procurement events
5419	5419	9 held under subsection (c) of this Section.
5420	5420	10 Each utility shall enter into binding contractual
5421	5421	11 arrangements with the winning suppliers.
5422	5422	12 The procurement described in this subsection
5423	5423	13 (d-5), including, but not limited to, the execution of
5424	5424	14 all contracts procured, shall be completed no later
5425	5425	15 than May 10, 2017. Based on the effective date of
5426	5426	16 Public Act 99-906, the Agency and Commission may, as
5427	5427	17 appropriate, modify the various dates and timelines
5428	5428	18 under this subparagraph and subparagraphs (C) and (D)
5429	5429	19 of this paragraph (1). The procurement and plan
5430	5430	20 approval processes required by this subsection (d-5)
5431	5431	21 shall be conducted in conjunction with the procurement
5432	5432	22 and plan approval processes required by subsection (c)
5433	5433	23 of this Section and Section 16-111.5 of the Public
5434	5434	24 Utilities Act, to the extent practicable.
5435	5435	25 Notwithstanding whether a procurement event is
5436	5436	26 conducted under Section 16-111.5 of the Public
5437	5437
5438	5438
5439	5439
5440	5440
5441	5441
5442	5442	HB5054 - 150 - LRB103 39370 JAG 69535 b
5443	5443
5444	5444
5445	5445	HB5054- 151 -LRB103 39370 JAG 69535 b HB5054 - 151 - LRB103 39370 JAG 69535 b
5446	5446	HB5054 - 151 - LRB103 39370 JAG 69535 b
5447	5447	1 Utilities Act, the Agency shall immediately initiate a
5448	5448	2 procurement process on June 1, 2017 (the effective
5449	5449	3 date of Public Act 99-906).
5450	5450	4 (D) Following the procurement event described in
5451	5451	5 this paragraph (1) and consistent with subparagraph
5452	5452	6 (B) of this paragraph (1), the Agency shall calculate
5453	5453	7 the payments to be made under each contract for the
5454	5454	8 next delivery year based on the market price index for
5455	5455	9 that delivery year. The Agency shall publish the
5456	5456	10 payment calculations no later than May 25, 2017 and
5457	5457	11 every May 25 thereafter.
5458	5458	12 (E) Notwithstanding the requirements of this
5459	5459	13 subsection (d-5), the contracts executed under this
5460	5460	14 subsection (d-5) shall provide that the zero emission
5461	5461	15 facility may, as applicable, suspend or terminate
5462	5462	16 performance under the contracts in the following
5463	5463	17 instances:
5464	5464	18 (i) A zero emission facility shall be excused
5465	5465	19 from its performance under the contract for any
5466	5466	20 cause beyond the control of the resource,
5467	5467	21 including, but not restricted to, acts of God,
5468	5468	22 flood, drought, earthquake, storm, fire,
5469	5469	23 lightning, epidemic, war, riot, civil disturbance
5470	5470	24 or disobedience, labor dispute, labor or material
5471	5471	25 shortage, sabotage, acts of public enemy,
5472	5472	26 explosions, orders, regulations or restrictions
5473	5473
5474	5474
5475	5475
5476	5476
5477	5477
5478	5478	HB5054 - 151 - LRB103 39370 JAG 69535 b
5479	5479
5480	5480
5481	5481	HB5054- 152 -LRB103 39370 JAG 69535 b HB5054 - 152 - LRB103 39370 JAG 69535 b
5482	5482	HB5054 - 152 - LRB103 39370 JAG 69535 b
5483	5483	1 imposed by governmental, military, or lawfully
5484	5484	2 established civilian authorities, which, in any of
5485	5485	3 the foregoing cases, by exercise of commercially
5486	5486	4 reasonable efforts the zero emission facility
5487	5487	5 could not reasonably have been expected to avoid,
5488	5488	6 and which, by the exercise of commercially
5489	5489	7 reasonable efforts, it has been unable to
5490	5490	8 overcome. In such event, the zero emission
5491	5491	9 facility shall be excused from performance for the
5492	5492	10 duration of the event, including, but not limited
5493	5493	11 to, delivery of zero emission credits, and no
5494	5494	12 payment shall be due to the zero emission facility
5495	5495	13 during the duration of the event.
5496	5496	14 (ii) A zero emission facility shall be
5497	5497	15 permitted to terminate the contract if legislation
5498	5498	16 is enacted into law by the General Assembly that
5499	5499	17 imposes or authorizes a new tax, special
5500	5500	18 assessment, or fee on the generation of
5501	5501	19 electricity, the ownership or leasehold of a
5502	5502	20 generating unit, or the privilege or occupation of
5503	5503	21 such generation, ownership, or leasehold of
5504	5504	22 generation units by a zero emission facility.
5505	5505	23 However, the provisions of this item (ii) do not
5506	5506	24 apply to any generally applicable tax, special
5507	5507	25 assessment or fee, or requirements imposed by
5508	5508	26 federal law.
5509	5509
5510	5510
5511	5511
5512	5512
5513	5513
5514	5514	HB5054 - 152 - LRB103 39370 JAG 69535 b
5515	5515
5516	5516
5517	5517	HB5054- 153 -LRB103 39370 JAG 69535 b HB5054 - 153 - LRB103 39370 JAG 69535 b
5518	5518	HB5054 - 153 - LRB103 39370 JAG 69535 b
5519	5519	1 (iii) A zero emission facility shall be
5520	5520	2 permitted to terminate the contract in the event
5521	5521	3 that the resource requires capital expenditures in
5522	5522	4 excess of $40,000,000 that were neither known nor
5523	5523	5 reasonably foreseeable at the time it executed the
5524	5524	6 contract and that a prudent owner or operator of
5525	5525	7 such resource would not undertake.
5526	5526	8 (iv) A zero emission facility shall be
5527	5527	9 permitted to terminate the contract in the event
5528	5528	10 the Nuclear Regulatory Commission terminates the
5529	5529	11 resource's license.
5530	5530	12 (F) If the zero emission facility elects to
5531	5531	13 terminate a contract under subparagraph (E) of this
5532	5532	14 paragraph (1), then the Commission shall reopen the
5533	5533	15 docket in which the Commission approved the zero
5534	5534	16 emission standard procurement plan under subparagraph
5535	5535	17 (C) of this paragraph (1) and, after notice and
5536	5536	18 hearing, enter an order acknowledging the contract
5537	5537	19 termination election if such termination is consistent
5538	5538	20 with the provisions of this subsection (d-5).
5539	5539	21 (2) For purposes of this subsection (d-5), the amount
5540	5540	22 paid per kilowatthour means the total amount paid for
5541	5541	23 electric service expressed on a per kilowatthour basis.
5542	5542	24 For purposes of this subsection (d-5), the total amount
5543	5543	25 paid for electric service includes, without limitation,
5544	5544	26 amounts paid for supply, transmission, distribution,
5545	5545
5546	5546
5547	5547
5548	5548
5549	5549
5550	5550	HB5054 - 153 - LRB103 39370 JAG 69535 b
5551	5551
5552	5552
5553	5553	HB5054- 154 -LRB103 39370 JAG 69535 b HB5054 - 154 - LRB103 39370 JAG 69535 b
5554	5554	HB5054 - 154 - LRB103 39370 JAG 69535 b
5555	5555	1 surcharges, and add-on taxes.
5556	5556	2 Notwithstanding the requirements of this subsection
5557	5557	3 (d-5), the contracts executed under this subsection (d-5)
5558	5558	4 shall provide that the total of zero emission credits
5559	5559	5 procured under a procurement plan shall be subject to the
5560	5560	6 limitations of this paragraph (2). For each delivery year,
5561	5561	7 the contractual volume receiving payments in such year
5562	5562	8 shall be reduced for all retail customers based on the
5563	5563	9 amount necessary to limit the net increase that delivery
5564	5564	10 year to the costs of those credits included in the amounts
5565	5565	11 paid by eligible retail customers in connection with
5566	5566	12 electric service to no more than 1.65% of the amount paid
5567	5567	13 per kilowatthour by eligible retail customers during the
5568	5568	14 year ending May 31, 2009. The result of this computation
5569	5569	15 shall apply to and reduce the procurement for all retail
5570	5570	16 customers, and all those customers shall pay the same
5571	5571	17 single, uniform cents per kilowatthour charge under
5572	5572	18 subsection (k) of Section 16-108 of the Public Utilities
5573	5573	19 Act. To arrive at a maximum dollar amount of zero emission
5574	5574	20 credits to be paid for the particular delivery year, the
5575	5575	21 resulting per kilowatthour amount shall be applied to the
5576	5576	22 actual amount of kilowatthours of electricity delivered by
5577	5577	23 the electric utility in the delivery year immediately
5578	5578	24 prior to the procurement, to all retail customers in its
5579	5579	25 service territory. Unpaid contractual volume for any
5580	5580	26 delivery year shall be paid in any subsequent delivery
5581	5581
5582	5582
5583	5583
5584	5584
5585	5585
5586	5586	HB5054 - 154 - LRB103 39370 JAG 69535 b
5587	5587
5588	5588
5589	5589	HB5054- 155 -LRB103 39370 JAG 69535 b HB5054 - 155 - LRB103 39370 JAG 69535 b
5590	5590	HB5054 - 155 - LRB103 39370 JAG 69535 b
5591	5591	1 year in which such payments can be made without exceeding
5592	5592	2 the amount specified in this paragraph (2). The
5593	5593	3 calculations required by this paragraph (2) shall be made
5594	5594	4 only once for each procurement plan year. Once the
5595	5595	5 determination as to the amount of zero emission credits to
5596	5596	6 be paid is made based on the calculations set forth in this
5597	5597	7 paragraph (2), no subsequent rate impact determinations
5598	5598	8 shall be made and no adjustments to those contract amounts
5599	5599	9 shall be allowed. All costs incurred under those contracts
5600	5600	10 and in implementing this subsection (d-5) shall be
5601	5601	11 recovered by the electric utility as provided in this
5602	5602	12 Section.
5603	5603	13 No later than June 30, 2019, the Commission shall
5604	5604	14 review the limitation on the amount of zero emission
5605	5605	15 credits procured under this subsection (d-5) and report to
5606	5606	16 the General Assembly its findings as to whether that
5607	5607	17 limitation unduly constrains the procurement of
5608	5608	18 cost-effective zero emission credits.
5609	5609	19 (3) Six years after the execution of a contract under
5610	5610	20 this subsection (d-5), the Agency shall determine whether
5611	5611	21 the actual zero emission credit payments received by the
5612	5612	22 supplier over the 6-year period exceed the Average ZEC
5613	5613	23 Payment. In addition, at the end of the term of a contract
5614	5614	24 executed under this subsection (d-5), or at the time, if
5615	5615	25 any, a zero emission facility's contract is terminated
5616	5616	26 under subparagraph (E) of paragraph (1) of this subsection
5617	5617
5618	5618
5619	5619
5620	5620
5621	5621
5622	5622	HB5054 - 155 - LRB103 39370 JAG 69535 b
5623	5623
5624	5624
5625	5625	HB5054- 156 -LRB103 39370 JAG 69535 b HB5054 - 156 - LRB103 39370 JAG 69535 b
5626	5626	HB5054 - 156 - LRB103 39370 JAG 69535 b
5627	5627	1 (d-5), then the Agency shall determine whether the actual
5628	5628	2 zero emission credit payments received by the supplier
5629	5629	3 over the term of the contract exceed the Average ZEC
5630	5630	4 Payment, after taking into account any amounts previously
5631	5631	5 credited back to the utility under this paragraph (3). If
5632	5632	6 the Agency determines that the actual zero emission credit
5633	5633	7 payments received by the supplier over the relevant period
5634	5634	8 exceed the Average ZEC Payment, then the supplier shall
5635	5635	9 credit the difference back to the utility. The amount of
5636	5636	10 the credit shall be remitted to the applicable electric
5637	5637	11 utility no later than 120 days after the Agency's
5638	5638	12 determination, which the utility shall reflect as a credit
5639	5639	13 on its retail customer bills as soon as practicable;
5640	5640	14 however, the credit remitted to the utility shall not
5641	5641	15 exceed the total amount of payments received by the
5642	5642	16 facility under its contract.
5643	5643	17 For purposes of this Section, the Average ZEC Payment
5644	5644	18 shall be calculated by multiplying the quantity of zero
5645	5645	19 emission credits delivered under the contract times the
5646	5646	20 average contract price. The average contract price shall
5647	5647	21 be determined by subtracting the amount calculated under
5648	5648	22 subparagraph (B) of this paragraph (3) from the amount
5649	5649	23 calculated under subparagraph (A) of this paragraph (3),
5650	5650	24 as follows:
5651	5651	25 (A) The average of the Social Cost of Carbon, as
5652	5652	26 defined in subparagraph (B) of paragraph (1) of this
5653	5653
5654	5654
5655	5655
5656	5656
5657	5657
5658	5658	HB5054 - 156 - LRB103 39370 JAG 69535 b
5659	5659
5660	5660
5661	5661	HB5054- 157 -LRB103 39370 JAG 69535 b HB5054 - 157 - LRB103 39370 JAG 69535 b
5662	5662	HB5054 - 157 - LRB103 39370 JAG 69535 b
5663	5663	1 subsection (d-5), during the term of the contract.
5664	5664	2 (B) The average of the market price indices, as
5665	5665	3 defined in subparagraph (B) of paragraph (1) of this
5666	5666	4 subsection (d-5), during the term of the contract,
5667	5667	5 minus the baseline market price index, as defined in
5668	5668	6 subparagraph (B) of paragraph (1) of this subsection
5669	5669	7 (d-5).
5670	5670	8 If the subtraction yields a negative number, then the
5671	5671	9 Average ZEC Payment shall be zero.
5672	5672	10 (4) Cost-effective zero emission credits procured from
5673	5673	11 zero emission facilities shall satisfy the applicable
5674	5674	12 definitions set forth in Section 1-10 of this Act.
5675	5675	13 (5) The electric utility shall retire all zero
5676	5676	14 emission credits used to comply with the requirements of
5677	5677	15 this subsection (d-5).
5678	5678	16 (6) Electric utilities shall be entitled to recover
5679	5679	17 all of the costs associated with the procurement of zero
5680	5680	18 emission credits through an automatic adjustment clause
5681	5681	19 tariff in accordance with subsection (k) and (m) of
5682	5682	20 Section 16-108 of the Public Utilities Act, and the
5683	5683	21 contracts executed under this subsection (d-5) shall
5684	5684	22 provide that the utilities' payment obligations under such
5685	5685	23 contracts shall be reduced if an adjustment is required
5686	5686	24 under subsection (m) of Section 16-108 of the Public
5687	5687	25 Utilities Act.
5688	5688	26 (7) This subsection (d-5) shall become inoperative on
5689	5689
5690	5690
5691	5691
5692	5692
5693	5693
5694	5694	HB5054 - 157 - LRB103 39370 JAG 69535 b
5695	5695
5696	5696
5697	5697	HB5054- 158 -LRB103 39370 JAG 69535 b HB5054 - 158 - LRB103 39370 JAG 69535 b
5698	5698	HB5054 - 158 - LRB103 39370 JAG 69535 b
5699	5699	1 January 1, 2028.
5700	5700	2 (d-10) Nuclear Plant Assistance; carbon mitigation
5701	5701	3 credits.
5702	5702	4 (1) The General Assembly finds:
5703	5703	5 (A) The health, welfare, and prosperity of all
5704	5704	6 Illinois citizens require that the State of Illinois act
5705	5705	7 to avoid and not increase carbon emissions from electric
5706	5706	8 generation sources while continuing to ensure affordable,
5707	5707	9 stable, and reliable electricity to all citizens.
5708	5708	10 (B) Absent immediate action by the State to preserve
5709	5709	11 existing carbon-free energy resources, those resources may
5710	5710	12 retire, and the electric generation needs of Illinois'
5711	5711	13 retail customers may be met instead by facilities that
5712	5712	14 emit significant amounts of carbon pollution and other
5713	5713	15 harmful air pollutants at a high social and economic cost
5714	5714	16 until Illinois is able to develop other forms of clean
5715	5715	17 energy.
5716	5716	18 (C) The General Assembly finds that nuclear power
5717	5717	19 generation is necessary for the State's transition to 100%
5718	5718	20 clean energy, and ensuring continued operation of nuclear
5719	5719	21 plants advances environmental and public health interests
5720	5720	22 through providing carbon-free electricity while reducing
5721	5721	23 the air pollution profile of the Illinois energy
5722	5722	24 generation fleet.
5723	5723	25 (D) The clean energy attributes of nuclear generation
5724	5724	26 facilities support the State in its efforts to achieve
5725	5725
5726	5726
5727	5727
5728	5728
5729	5729
5730	5730	HB5054 - 158 - LRB103 39370 JAG 69535 b
5731	5731
5732	5732
5733	5733	HB5054- 159 -LRB103 39370 JAG 69535 b HB5054 - 159 - LRB103 39370 JAG 69535 b
5734	5734	HB5054 - 159 - LRB103 39370 JAG 69535 b
5735	5735	1 100% clean energy.
5736	5736	2 (E) The State currently invests in various forms of
5737	5737	3 clean energy, including, but not limited to, renewable
5738	5738	4 energy, energy efficiency, and low-emission vehicles,
5739	5739	5 among others.
5740	5740	6 (F) The Environmental Protection Agency commissioned
5741	5741	7 an independent audit which provided a detailed assessment
5742	5742	8 of the financial condition of the Illinois nuclear fleet
5743	5743	9 to evaluate its financial viability and whether the
5744	5744	10 environmental benefits of such resources were at risk. The
5745	5745	11 report identified the risk of losing the environmental
5746	5746	12 benefits of several specific nuclear units. The report
5747	5747	13 also identified that the LaSalle County Generating Station
5748	5748	14 will continue to operate through 2026 and therefore is not
5749	5749	15 eligible to participate in the carbon mitigation credit
5750	5750	16 program.
5751	5751	17 (G) Nuclear plants provide carbon-free energy, which
5752	5752	18 helps to avoid many health-related negative impacts for
5753	5753	19 Illinois residents.
5754	5754	20 (H) The procurement of carbon mitigation credits
5755	5755	21 representing the environmental benefits of carbon-free
5756	5756	22 generation will further the State's efforts at achieving
5757	5757	23 100% clean energy and decarbonizing the electricity sector
5758	5758	24 in a safe, reliable, and affordable manner. Further, the
5759	5759	25 procurement of carbon emission credits will enhance the
5760	5760	26 health and welfare of Illinois residents through decreased
5761	5761
5762	5762
5763	5763
5764	5764
5765	5765
5766	5766	HB5054 - 159 - LRB103 39370 JAG 69535 b
5767	5767
5768	5768
5769	5769	HB5054- 160 -LRB103 39370 JAG 69535 b HB5054 - 160 - LRB103 39370 JAG 69535 b
5770	5770	HB5054 - 160 - LRB103 39370 JAG 69535 b
5771	5771	1 reliance on more highly polluting generation.
5772	5772	2 (I) The General Assembly therefore finds it necessary
5773	5773	3 to establish carbon mitigation credits to ensure decreased
5774	5774	4 reliance on more carbon-intensive energy resources, for
5775	5775	5 transitioning to a fully decarbonized electricity sector,
5776	5776	6 and to help ensure health and welfare of the State's
5777	5777	7 residents.
5778	5778	8 (2) As used in this subsection:
5779	5779	9 "Baseline costs" means costs used to establish a customer
5780	5780	10 protection cap that have been evaluated through an independent
5781	5781	11 audit of a carbon-free energy resource conducted by the
5782	5782	12 Environmental Protection Agency that evaluated projected
5783	5783	13 annual costs for operation and maintenance expenses; fully
5784	5784	14 allocated overhead costs, which shall be allocated using the
5785	5785	15 methodology developed by the Institute for Nuclear Power
5786	5786	16 Operations; fuel expenditures; nonfuel capital expenditures;
5787	5787	17 spent fuel expenditures; a return on working capital; the cost
5788	5788	18 of operational and market risks that could be avoided by
5789	5789	19 ceasing operation; and any other costs necessary for continued
5790	5790	20 operations, provided that "necessary" means, for purposes of
5791	5791	21 this definition, that the costs could reasonably be avoided
5792	5792	22 only by ceasing operations of the carbon-free energy resource.
5793	5793	23 "Carbon mitigation credit" means a tradable credit that
5794	5794	24 represents the carbon emission reduction attributes of one
5795	5795	25 megawatt-hour of energy produced from a carbon-free energy
5796	5796	26 resource.
5797	5797
5798	5798
5799	5799
5800	5800
5801	5801
5802	5802	HB5054 - 160 - LRB103 39370 JAG 69535 b
5803	5803
5804	5804
5805	5805	HB5054- 161 -LRB103 39370 JAG 69535 b HB5054 - 161 - LRB103 39370 JAG 69535 b
5806	5806	HB5054 - 161 - LRB103 39370 JAG 69535 b
5807	5807	1 "Carbon-free energy resource" means a generation facility
5808	5808	2 that: (1) is fueled by nuclear power; and (2) is
5809	5809	3 interconnected to PJM Interconnection, LLC.
5810	5810	4 (3) Procurement.
5811	5811	5 (A) Beginning with the delivery year commencing on
5812	5812	6 June 1, 2022, the Agency shall, for electric utilities
5813	5813	7 serving at least 3,000,000 retail customers in the State,
5814	5814	8 seek to procure contracts for no more than approximately
5815	5815	9 54,500,000 cost-effective carbon mitigation credits from
5816	5816	10 carbon-free energy resources because such credits are
5817	5817	11 necessary to support current levels of carbon-free energy
5818	5818	12 generation and ensure the State meets its carbon dioxide
5819	5819	13 emissions reduction goals. The Agency shall not make a
5820	5820	14 partial award of a contract for carbon mitigation credits
5821	5821	15 covering a fractional amount of a carbon-free energy
5822	5822	16 resource's projected output.
5823	5823	17 (B) Each carbon-free energy resource that intends to
5824	5824	18 participate in a procurement shall be required to submit
5825	5825	19 to the Agency the following information for the resource
5826	5826	20 on or before the date established by the Agency:
5827	5827	21 (i) the in-service date and remaining useful life
5828	5828	22 of the carbon-free energy resource;
5829	5829	23 (ii) the amount of power generated annually for
5830	5830	24 each of the past 10 years, which shall be used to
5831	5831	25 determine the capability of each facility;
5832	5832	26 (iii) a commitment to be reflected in any contract
5833	5833
5834	5834
5835	5835
5836	5836
5837	5837
5838	5838	HB5054 - 161 - LRB103 39370 JAG 69535 b
5839	5839
5840	5840
5841	5841	HB5054- 162 -LRB103 39370 JAG 69535 b HB5054 - 162 - LRB103 39370 JAG 69535 b
5842	5842	HB5054 - 162 - LRB103 39370 JAG 69535 b
5843	5843	1 entered into pursuant to this subsection (d-10) to
5844	5844	2 continue operating the carbon-free energy resource at
5845	5845	3 a capacity factor of at least 88% annually on average
5846	5846	4 for the duration of the contract or contracts executed
5847	5847	5 under the procurement held under this subsection
5848	5848	6 (d-10), except in an instance described in
5849	5849	7 subparagraph (E) of paragraph (1) of subsection (d-5)
5850	5850	8 of this Section or made impracticable as a result of
5851	5851	9 compliance with law or regulation;
5852	5852	10 (iv) financial need and the risk of loss of the
5853	5853	11 environmental benefits of such resource, which shall
5854	5854	12 include the following information:
5855	5855	13 (I) the carbon-free energy resource's cost
5856	5856	14 projections, expressed on a per megawatt-hour
5857	5857	15 basis, over the next 5 delivery years, which shall
5858	5858	16 include the following: operation and maintenance
5859	5859	17 expenses; fully allocated overhead costs, which
5860	5860	18 shall be allocated using the methodology developed
5861	5861	19 by the Institute for Nuclear Power Operations;
5862	5862	20 fuel expenditures; nonfuel capital expenditures;
5863	5863	21 spent fuel expenditures; a return on working
5864	5864	22 capital; the cost of operational and market risks
5865	5865	23 that could be avoided by ceasing operation; and
5866	5866	24 any other costs necessary for continued
5867	5867	25 operations, provided that "necessary" means, for
5868	5868	26 purposes of this subitem (I), that the costs could
5869	5869
5870	5870
5871	5871
5872	5872
5873	5873
5874	5874	HB5054 - 162 - LRB103 39370 JAG 69535 b
5875	5875
5876	5876
5877	5877	HB5054- 163 -LRB103 39370 JAG 69535 b HB5054 - 163 - LRB103 39370 JAG 69535 b
5878	5878	HB5054 - 163 - LRB103 39370 JAG 69535 b
5879	5879	1 reasonably be avoided only by ceasing operations
5880	5880	2 of the carbon-free energy resource; and
5881	5881	3 (II) the carbon-free energy resource's revenue
5882	5882	4 projections, including energy, capacity, ancillary
5883	5883	5 services, any other direct State support, known or
5884	5884	6 anticipated federal attribute credits, known or
5885	5885	7 anticipated tax credits, and any other direct
5886	5886	8 federal support.
5887	5887	9 The information described in this subparagraph (B) may
5888	5888	10 be submitted on a confidential basis and shall be treated
5889	5889	11 and maintained by the Agency, the procurement
5890	5890	12 administrator, and the Commission as confidential and
5891	5891	13 proprietary and exempt from disclosure under subparagraphs
5892	5892	14 (a) and (g) of paragraph (1) of Section 7 of the Freedom of
5893	5893	15 Information Act. The Office of the Attorney General shall
5894	5894	16 have access to, and maintain the confidentiality of, such
5895	5895	17 information pursuant to Section 6.5 of the Attorney
5896	5896	18 General Act.
5897	5897	19 (C) The Agency shall solicit bids for the contracts
5898	5898	20 described in this subsection (d-10) from carbon-free
5899	5899	21 energy resources that have satisfied the requirements of
5900	5900	22 subparagraph (B) of this paragraph (3). The contracts
5901	5901	23 procured pursuant to a procurement event shall reflect,
5902	5902	24 and be subject to, the following terms, requirements, and
5903	5903	25 limitations:
5904	5904	26 (i) Contracts are for delivery of carbon
5905	5905
5906	5906
5907	5907
5908	5908
5909	5909
5910	5910	HB5054 - 163 - LRB103 39370 JAG 69535 b
5911	5911
5912	5912
5913	5913	HB5054- 164 -LRB103 39370 JAG 69535 b HB5054 - 164 - LRB103 39370 JAG 69535 b
5914	5914	HB5054 - 164 - LRB103 39370 JAG 69535 b
5915	5915	1 mitigation credits, and are not energy or capacity
5916	5916	2 sales contracts requiring physical delivery. Pursuant
5917	5917	3 to item (iii), contract payments shall fully deduct
5918	5918	4 the value of any monetized federal production tax
5919	5919	5 credits, credits issued pursuant to a federal clean
5920	5920	6 energy standard, and other federal credits if
5921	5921	7 applicable.
5922	5922	8 (ii) Contracts for carbon mitigation credits shall
5923	5923	9 commence with the delivery year beginning on June 1,
5924	5924	10 2022 and shall be for a term of 5 delivery years
5925	5925	11 concluding on May 31, 2027.
5926	5926	12 (iii) The price per carbon mitigation credit to be
5927	5927	13 paid under a contract for a given delivery year shall
5928	5928	14 be equal to an accepted bid price less the sum of:
5929	5929	15 (I) one of the following energy price indices,
5930	5930	16 selected by the bidder at the time of the bid for
5931	5931	17 the term of the contract:
5932	5932	18 (aa) the weighted-average hourly day-ahead
5933	5933	19 price for the applicable delivery year at the
5934	5934	20 busbar of all resources procured pursuant to
5935	5935	21 this subsection (d-10), weighted by actual
5936	5936	22 production from the resources; or
5937	5937	23 (bb) the projected energy price for the
5938	5938	24 PJM Interconnection, LLC Northern Illinois Hub
5939	5939	25 for the applicable delivery year determined
5940	5940	26 according to subitem (aa) of item (iii) of
5941	5941
5942	5942
5943	5943
5944	5944
5945	5945
5946	5946	HB5054 - 164 - LRB103 39370 JAG 69535 b
5947	5947
5948	5948
5949	5949	HB5054- 165 -LRB103 39370 JAG 69535 b HB5054 - 165 - LRB103 39370 JAG 69535 b
5950	5950	HB5054 - 165 - LRB103 39370 JAG 69535 b
5951	5951	1 subparagraph (B) of paragraph (1) of
5952	5952	2 subsection (d-5).
5953	5953	3 (II) the Base Residual Auction Capacity Price
5954	5954	4 for the ComEd zone as determined by PJM
5955	5955	5 Interconnection, LLC, divided by 24 hours per day,
5956	5956	6 for the applicable delivery year for the first 3
5957	5957	7 delivery years, and then any subsequent delivery
5958	5958	8 years unless the PJM Interconnection, LLC applies
5959	5959	9 the Minimum Offer Price Rule to participating
5960	5960	10 carbon-free energy resources because they supply
5961	5961	11 carbon mitigation credits pursuant to this Section
5962	5962	12 at which time, upon notice by the carbon-free
5963	5963	13 energy resource to the Commission and subject to
5964	5964	14 the Commission's confirmation, the value under
5965	5965	15 this subitem shall be zero, as further described
5966	5966	16 in the carbon mitigation credit procurement plan;
5967	5967	17 and
5968	5968	18 (III) any value of monetized federal tax
5969	5969	19 credits, direct payments, or similar subsidy
5970	5970	20 provided to the carbon-free energy resource from
5971	5971	21 any unit of government that is not already
5972	5972	22 reflected in energy prices.
5973	5973	23 If the price-per-megawatt-hour calculation
5974	5974	24 performed under item (iii) of this subparagraph (C)
5975	5975	25 for a given delivery year results in a net positive
5976	5976	26 value, then the electric utility counterparty to the
5977	5977
5978	5978
5979	5979
5980	5980
5981	5981
5982	5982	HB5054 - 165 - LRB103 39370 JAG 69535 b
5983	5983
5984	5984
5985	5985	HB5054- 166 -LRB103 39370 JAG 69535 b HB5054 - 166 - LRB103 39370 JAG 69535 b
5986	5986	HB5054 - 166 - LRB103 39370 JAG 69535 b
5987	5987	1 contract shall multiply such net value by the
5988	5988	2 applicable contract quantity and remit the amount to
5989	5989	3 the supplier.
5990	5990	4 To protect retail customers from retail rate
5991	5991	5 impacts that may arise upon the initiation of carbon
5992	5992	6 policy changes, if the price-per-megawatt-hour
5993	5993	7 calculation performed under item (iii) of this
5994	5994	8 subparagraph (C) for a given delivery year results in
5995	5995	9 a net negative value, then the supplier counterparty
5996	5996	10 to the contract shall multiply such net value by the
5997	5997	11 applicable contract quantity and remit such amount to
5998	5998	12 the electric utility counterparty. The electric
5999	5999	13 utility shall reflect such amounts remitted by
6000	6000	14 suppliers as a credit on its retail customer bills as
6001	6001	15 soon as practicable.
6002	6002	16 (iv) To ensure that retail customers in Northern
6003	6003	17 Illinois do not pay more for carbon mitigation credits
6004	6004	18 than the value such credits provide, and
6005	6005	19 notwithstanding the provisions of this subsection
6006	6006	20 (d-10), the Agency shall not accept bids for contracts
6007	6007	21 that exceed a customer protection cap equal to the
6008	6008	22 baseline costs of carbon-free energy resources.
6009	6009	23 The baseline costs for the applicable year shall
6010	6010	24 be the following:
6011	6011	25 (I) For the delivery year beginning June 1,
6012	6012	26 2022, the baseline costs shall be an amount equal
6013	6013
6014	6014
6015	6015
6016	6016
6017	6017
6018	6018	HB5054 - 166 - LRB103 39370 JAG 69535 b
6019	6019
6020	6020
6021	6021	HB5054- 167 -LRB103 39370 JAG 69535 b HB5054 - 167 - LRB103 39370 JAG 69535 b
6022	6022	HB5054 - 167 - LRB103 39370 JAG 69535 b
6023	6023	1 to $30.30 per megawatt-hour.
6024	6024	2 (II) For the delivery year beginning June 1,
6025	6025	3 2023, the baseline costs shall be an amount equal
6026	6026	4 to $32.50 per megawatt-hour.
6027	6027	5 (III) For the delivery year beginning June 1,
6028	6028	6 2024, the baseline costs shall be an amount equal
6029	6029	7 to $33.43 per megawatt-hour.
6030	6030	8 (IV) For the delivery year beginning June 1,
6031	6031	9 2025, the baseline costs shall be an amount equal
6032	6032	10 to $33.50 per megawatt-hour.
6033	6033	11 (V) For the delivery year beginning June 1,
6034	6034	12 2026, the baseline costs shall be an amount equal
6035	6035	13 to $34.50 per megawatt-hour.
6036	6036	14 An Environmental Protection Agency consultant
6037	6037	15 forecast, included in a report issued April 14, 2021,
6038	6038	16 projects that a carbon-free energy resource has the
6039	6039	17 opportunity to earn on average approximately $30.28
6040	6040	18 per megawatt-hour, for the sale of energy and capacity
6041	6041	19 during the time period between 2022 and 2027.
6042	6042	20 Therefore, the sale of carbon mitigation credits
6043	6043	21 provides the opportunity to receive an additional
6044	6044	22 amount per megawatt-hour in addition to the projected
6045	6045	23 prices for energy and capacity.
6046	6046	24 Although actual energy and capacity prices may
6047	6047	25 vary from year-to-year, the General Assembly finds
6048	6048	26 that this customer protection cap will help ensure
6049	6049
6050	6050
6051	6051
6052	6052
6053	6053
6054	6054	HB5054 - 167 - LRB103 39370 JAG 69535 b
6055	6055
6056	6056
6057	6057	HB5054- 168 -LRB103 39370 JAG 69535 b HB5054 - 168 - LRB103 39370 JAG 69535 b
6058	6058	HB5054 - 168 - LRB103 39370 JAG 69535 b
6059	6059	1 that the cost of carbon mitigation credits will be
6060	6060	2 less than its value, based upon the social cost of
6061	6061	3 carbon identified in the Technical Support Document
6062	6062	4 issued in February 2021 by the U.S. Interagency
6063	6063	5 Working Group on Social Cost of Greenhouse Gases and
6064	6064	6 the PJM Interconnection, LLC carbon dioxide marginal
6065	6065	7 emission rate for 2020, and that a carbon-free energy
6066	6066	8 resource receiving payment for carbon mitigation
6067	6067	9 credits receives no more than necessary to keep those
6068	6068	10 units in operation.
6069	6069	11 (D) No later than 7 days after the effective date of
6070	6070	12 this amendatory Act of the 102nd General Assembly, the
6071	6071	13 Agency shall publish its proposed carbon mitigation credit
6072	6072	14 procurement plan. The Plan shall provide that winning bids
6073	6073	15 shall be selected by taking into consideration which
6074	6074	16 resources best match public interest criteria that
6075	6075	17 include, but are not limited to, minimizing carbon dioxide
6076	6076	18 emissions that result from electricity consumed in
6077	6077	19 Illinois and minimizing sulfur dioxide, nitrogen oxide,
6078	6078	20 and particulate matter emissions that adversely affect the
6079	6079	21 citizens of this State. The selection of winning bids
6080	6080	22 shall also take into account the incremental environmental
6081	6081	23 benefits resulting from the procurement or procurements,
6082	6082	24 such as any existing environmental benefits that are
6083	6083	25 preserved by a procurement held under this subsection
6084	6084	26 (d-10) and would cease to exist if the procurement were
6085	6085
6086	6086
6087	6087
6088	6088
6089	6089
6090	6090	HB5054 - 168 - LRB103 39370 JAG 69535 b
6091	6091
6092	6092
6093	6093	HB5054- 169 -LRB103 39370 JAG 69535 b HB5054 - 169 - LRB103 39370 JAG 69535 b
6094	6094	HB5054 - 169 - LRB103 39370 JAG 69535 b
6095	6095	1 not held, including the preservation of carbon-free energy
6096	6096	2 resources. For those bidders having the same public
6097	6097	3 interest criteria score, the relative ranking of such
6098	6098	4 bidders shall be determined by price. The Plan shall
6099	6099	5 describe in detail how each public interest factor shall
6100	6100	6 be considered and weighted in the bid selection process to
6101	6101	7 ensure that the public interest criteria are applied to
6102	6102	8 the procurement. The Plan shall, to the extent practical
6103	6103	9 and permissible by federal law, ensure that successful
6104	6104	10 bidders make commercially reasonable efforts to apply for
6105	6105	11 federal tax credits, direct payments, or similar subsidy
6106	6106	12 programs that support carbon-free generation and for which
6107	6107	13 the successful bidder is eligible. Upon publishing of the
6108	6108	14 carbon mitigation credit procurement plan, copies of the
6109	6109	15 plan shall be posted and made publicly available on the
6110	6110	16 Agency's website. All interested parties shall have 7 days
6111	6111	17 following the date of posting to provide comment to the
6112	6112	18 Agency on the plan. All comments shall be posted to the
6113	6113	19 Agency's website. Following the end of the comment period,
6114	6114	20 but no more than 19 days later than the effective date of
6115	6115	21 this amendatory Act of the 102nd General Assembly, the
6116	6116	22 Agency shall revise the plan as necessary based on the
6117	6117	23 comments received and file its carbon mitigation credit
6118	6118	24 procurement plan with the Commission.
6119	6119	25 (E) If the Commission determines that the plan is
6120	6120	26 likely to result in the procurement of cost-effective
6121	6121
6122	6122
6123	6123
6124	6124
6125	6125
6126	6126	HB5054 - 169 - LRB103 39370 JAG 69535 b
6127	6127
6128	6128
6129	6129	HB5054- 170 -LRB103 39370 JAG 69535 b HB5054 - 170 - LRB103 39370 JAG 69535 b
6130	6130	HB5054 - 170 - LRB103 39370 JAG 69535 b
6131	6131	1 carbon mitigation credits, then the Commission shall,
6132	6132	2 after notice and hearing and opportunity for comment, but
6133	6133	3 no later than 42 days after the Agency filed the plan,
6134	6134	4 approve the plan or approve it with modification. For
6135	6135	5 purposes of this subsection (d-10), "cost-effective" means
6136	6136	6 carbon mitigation credits that are procured from
6137	6137	7 carbon-free energy resources at prices that are within the
6138	6138	8 limits specified in this paragraph (3). As part of the
6139	6139	9 Commission's review and acceptance or rejection of the
6140	6140	10 procurement results, the Commission shall, in its public
6141	6141	11 notice of successful bidders:
6142	6142	12 (i) identify how the selected carbon-free energy
6143	6143	13 resources satisfy the public interest criteria
6144	6144	14 described in this paragraph (3) of minimizing carbon
6145	6145	15 dioxide emissions that result from electricity
6146	6146	16 consumed in Illinois and minimizing sulfur dioxide,
6147	6147	17 nitrogen oxide, and particulate matter emissions that
6148	6148	18 adversely affect the citizens of this State;
6149	6149	19 (ii) specifically address how the selection of
6150	6150	20 carbon-free energy resources takes into account the
6151	6151	21 incremental environmental benefits resulting from the
6152	6152	22 procurement, including any existing environmental
6153	6153	23 benefits that are preserved by the procurements held
6154	6154	24 under this amendatory Act of the 102nd General
6155	6155	25 Assembly and would have ceased to exist if the
6156	6156	26 procurements had not been held, such as the
6157	6157
6158	6158
6159	6159
6160	6160
6161	6161
6162	6162	HB5054 - 170 - LRB103 39370 JAG 69535 b
6163	6163
6164	6164
6165	6165	HB5054- 171 -LRB103 39370 JAG 69535 b HB5054 - 171 - LRB103 39370 JAG 69535 b
6166	6166	HB5054 - 171 - LRB103 39370 JAG 69535 b
6167	6167	1 preservation of carbon-free energy resources;
6168	6168	2 (iii) quantify the environmental benefit of
6169	6169	3 preserving the carbon-free energy resources procured
6170	6170	4 pursuant to this subsection (d-10), including the
6171	6171	5 following:
6172	6172	6 (I) an assessment value of avoided greenhouse
6173	6173	7 gas emissions measured as the product of the
6174	6174	8 carbon-free energy resources' output over the
6175	6175	9 contract term, using generally accepted
6176	6176	10 methodologies for the valuation of avoided
6177	6177	11 emissions; and
6178	6178	12 (II) an assessment of costs of replacement
6179	6179	13 with other carbon-free energy resources and
6180	6180	14 renewable energy resources, including wind and
6181	6181	15 photovoltaic generation, based upon an assessment
6182	6182	16 of the prices paid for renewable energy credits
6183	6183	17 through programs and procurements conducted
6184	6184	18 pursuant to subsection (c) of Section 1-75 of this
6185	6185	19 Act, and the additional storage necessary to
6186	6186	20 produce the same or similar capability of matching
6187	6187	21 customer usage patterns.
6188	6188	22 (F) The procurements described in this paragraph (3),
6189	6189	23 including, but not limited to, the execution of all
6190	6190	24 contracts procured, shall be completed no later than
6191	6191	25 December 3, 2021. The procurement and plan approval
6192	6192	26 processes required by this paragraph (3) shall be
6193	6193
6194	6194
6195	6195
6196	6196
6197	6197
6198	6198	HB5054 - 171 - LRB103 39370 JAG 69535 b
6199	6199
6200	6200
6201	6201	HB5054- 172 -LRB103 39370 JAG 69535 b HB5054 - 172 - LRB103 39370 JAG 69535 b
6202	6202	HB5054 - 172 - LRB103 39370 JAG 69535 b
6203	6203	1 conducted in conjunction with the procurement and plan
6204	6204	2 approval processes required by Section 16-111.5 of the
6205	6205	3 Public Utilities Act, to the extent practicable. However,
6206	6206	4 the Agency and Commission may, as appropriate, modify the
6207	6207	5 various dates and timelines under this subparagraph and
6208	6208	6 subparagraphs (D) and (E) of this paragraph (3) to meet
6209	6209	7 the December 3, 2021 contract execution deadline.
6210	6210	8 Following the completion of such procurements, and
6211	6211	9 consistent with this paragraph (3), the Agency shall
6212	6212	10 calculate the payments to be made under each contract in a
6213	6213	11 timely fashion.
6214	6214	12 (F-1) Costs incurred by the electric utility pursuant
6215	6215	13 to a contract authorized by this subsection (d-10) shall
6216	6216	14 be deemed prudently incurred and reasonable in amount, and
6217	6217	15 the electric utility shall be entitled to full cost
6218	6218	16 recovery pursuant to a tariff or tariffs filed with the
6219	6219	17 Commission.
6220	6220	18 (G) The counterparty electric utility shall retire all
6221	6221	19 carbon mitigation credits used to comply with the
6222	6222	20 requirements of this subsection (d-10).
6223	6223	21 (H) If a carbon-free energy resource is sold to
6224	6224	22 another owner, the rights, obligations, and commitments
6225	6225	23 under this subsection (d-10) shall continue to the
6226	6226	24 subsequent owner.
6227	6227	25 (I) This subsection (d-10) shall become inoperative on
6228	6228	26 January 1, 2028.
6229	6229
6230	6230
6231	6231
6232	6232
6233	6233
6234	6234	HB5054 - 172 - LRB103 39370 JAG 69535 b
6235	6235
6236	6236
6237	6237	HB5054- 173 -LRB103 39370 JAG 69535 b HB5054 - 173 - LRB103 39370 JAG 69535 b
6238	6238	HB5054 - 173 - LRB103 39370 JAG 69535 b
6239	6239	1 (e) The draft procurement plans are subject to public
6240	6240	2 comment, as required by Section 16-111.5 of the Public
6241	6241	3 Utilities Act.
6242	6242	4 (f) The Agency shall submit the final procurement plan to
6243	6243	5 the Commission. The Agency shall revise a procurement plan if
6244	6244	6 the Commission determines that it does not meet the standards
6245	6245	7 set forth in Section 16-111.5 of the Public Utilities Act.
6246	6246	8 (g) The Agency shall assess fees to each affected utility
6247	6247	9 to recover the costs incurred in preparation of the annual
6248	6248	10 procurement plan for the utility.
6249	6249	11 (h) The Agency shall assess fees to each bidder to recover
6250	6250	12 the costs incurred in connection with a competitive
6251	6251	13 procurement process.
6252	6252	14 (i) A renewable energy credit, carbon emission credit,
6253	6253	15 zero emission credit, or carbon mitigation credit can only be
6254	6254	16 used once to comply with a single portfolio or other standard
6255	6255	17 as set forth in subsection (c), subsection (d), or subsection
6256	6256	18 (d-5) of this Section, respectively. A renewable energy
6257	6257	19 credit, carbon emission credit, zero emission credit, or
6258	6258	20 carbon mitigation credit cannot be used to satisfy the
6259	6259	21 requirements of more than one standard. If more than one type
6260	6260	22 of credit is issued for the same megawatt hour of energy, only
6261	6261	23 one credit can be used to satisfy the requirements of a single
6262	6262	24 standard. After such use, the credit must be retired together
6263	6263	25 with any other credits issued for the same megawatt hour of
6264	6264	26 energy.
6265	6265
6266	6266
6267	6267
6268	6268
6269	6269
6270	6270	HB5054 - 173 - LRB103 39370 JAG 69535 b
6271	6271
6272	6272
6273	6273	HB5054- 174 -LRB103 39370 JAG 69535 b HB5054 - 174 - LRB103 39370 JAG 69535 b
6274	6274	HB5054 - 174 - LRB103 39370 JAG 69535 b
6275	6275	1 (Source: P.A. 102-662, eff. 9-15-21; 103-380, eff. 1-1-24;
6276	6276	2 103-580, eff. 12-8-23.)
6277	6277	3 Section 10. The Illinois Municipal Code is amended by
6278	6278	4 changing Section 11-13-26 as follows:
6279	6279	5 (65 ILCS 5/11-13-26)
6280	6280	6 Sec. 11-13-26. Wind farms. Notwithstanding any other
6281	6281	7 provision of law:
6282	6282	8 (a) A municipality may regulate wind farms and
6283	6283	9 electric-generating wind devices within its zoning
6284	6284	10 jurisdiction and within the 1.5 mile radius surrounding
6285	6285	11 its zoning jurisdiction. There shall be at least one
6286	6286	12 public hearing not more than 30 days prior to a siting
6287	6287	13 decision by the corporate authorities of a municipality.
6288	6288	14 Notice of the hearing shall be published in a newspaper of
6289	6289	15 general circulation in the municipality. A commercial wind
6290	6290	16 energy facility owner, as defined in the Renewable Energy
6291	6291	17 Facilities Agricultural Impact Mitigation Act, must enter
6292	6292	18 into an agricultural impact mitigation agreement with the
6293	6293	19 Department of Agriculture prior to the date of the
6294	6294	20 required public hearing. A commercial wind energy facility
6295	6295	21 owner seeking an extension of a permit granted by a
6296	6296	22 municipality prior to July 24, 2015 (the effective date of
6297	6297	23 Public Act 99-132) must enter into an agricultural impact
6298	6298	24 mitigation agreement with the Department of Agriculture
6299	6299
6300	6300
6301	6301
6302	6302
6303	6303
6304	6304	HB5054 - 174 - LRB103 39370 JAG 69535 b
6305	6305
6306	6306
6307	6307	HB5054- 175 -LRB103 39370 JAG 69535 b HB5054 - 175 - LRB103 39370 JAG 69535 b
6308	6308	HB5054 - 175 - LRB103 39370 JAG 69535 b
6309	6309	1 prior to a decision by the municipality to grant the
6310	6310	2 permit extension. A municipality may allow test wind
6311	6311	3 towers to be sited without formal approval by the
6312	6312	4 corporate authorities of the municipality. Test wind
6313	6313	5 towers must be dismantled within 3 years of installation.
6314	6314	6 For the purposes of this Section, "test wind towers" are
6315	6315	7 wind towers that are designed solely to collect wind
6316	6316	8 generation data.
6317	6317	9 (b) A municipality may not require a wind tower or
6318	6318	10 other renewable energy system that is used exclusively by
6319	6319	11 an end user to be setback more than 1.1 times the height of
6320	6320	12 the renewable energy system from the end user's property
6321	6321	13 line. A setback requirement imposed by a municipality on a
6322	6322	14 renewable energy system may not be more restrictive than
6323	6323	15 as provided under this subsection. This subsection is a
6324	6324	16 limitation of home rule powers and functions under
6325	6325	17 subsection (i) of Section 6 of Article VII of the Illinois
6326	6326	18 Constitution on the concurrent exercise by home rule units
6327	6327	19 of powers and functions exercised by the State.
6328	6328	20 (Source: P.A. 99-123, eff. 1-1-16; 99-132, eff. 7-24-15;
6329	6329	21 99-642, eff. 7-28-16; 100-598, eff. 6-29-18.)
6330	6330	22 Section 15. The Renewable Energy Facilities Agricultural
6331	6331	23 Impact Mitigation Act is amended by changing Sections 1, 5,
6332	6332	24 10, and 15 as follows:
6333	6333
6334	6334
6335	6335
6336	6336
6337	6337
6338	6338	HB5054 - 175 - LRB103 39370 JAG 69535 b
6339	6339
6340	6340
6341	6341	HB5054- 176 -LRB103 39370 JAG 69535 b HB5054 - 176 - LRB103 39370 JAG 69535 b
6342	6342	HB5054 - 176 - LRB103 39370 JAG 69535 b
6343	6343	1 (505 ILCS 147/1)
6344	6344	2 Sec. 1. Short title. This Act may be cited as the Renewable
6345	6345	3 Energy Facilities Agricultural Impact Mitigation Act.
6346	6346	4 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6347	6347	5 (505 ILCS 147/5)
6348	6348	6 Sec. 5. Purpose. The primary purpose of this Act is to
6349	6349	7 promote the State's welfare by protecting landowners during
6350	6350	8 the construction and deconstruction of commercial renewable
6351	6351	9 energy facilities, pipelines, electric lines, and battery
6352	6352	10 energy storage systems to ensure that land affected by these
6353	6353	11 projects is restored to its pre-construction condition and
6354	6354	12 function.
6355	6355	13 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6356	6356	14 (505 ILCS 147/10)
6357	6357	15 Sec. 10. Definitions. As used in this Act:
6358	6358	16 "Abandonment of a commercial wind energy facility" means
6359	6359	17 when deconstruction has not been completed within 18 months
6360	6360	18 after the commercial wind energy facility reaches the end of
6361	6361	19 its useful life. For purposes of this definition, a commercial
6362	6362	20 wind energy facility will be presumed to have reached the end
6363	6363	21 of its useful life if (1) no electricity is generated for a
6364	6364	22 continuous period of 12 months and (2) the commercial wind
6365	6365	23 energy facility owner fails, for a period of 6 consecutive
6366	6366	24 months, to pay the landowner amounts owed in accordance with
6367	6367
6368	6368
6369	6369
6370	6370
6371	6371
6372	6372	HB5054 - 176 - LRB103 39370 JAG 69535 b
6373	6373
6374	6374
6375	6375	HB5054- 177 -LRB103 39370 JAG 69535 b HB5054 - 177 - LRB103 39370 JAG 69535 b
6376	6376	HB5054 - 177 - LRB103 39370 JAG 69535 b
6377	6377	1 the underlying agreement.
6378	6378	2 "Abandonment of a commercial solar energy facility" means
6379	6379	3 when deconstruction has not been completed within 12 months
6380	6380	4 after the commercial solar energy facility reaches the end of
6381	6381	5 its useful life. For purposes of this definition, a commercial
6382	6382	6 solar energy facility shall be presumed to have reached the
6383	6383	7 end of its useful life if the commercial solar energy facility
6384	6384	8 owner fails, for a period of 6 consecutive months, to pay the
6385	6385	9 landowner amounts owed in accordance with the underlying
6386	6386	10 agreement.
6387	6387	11 "Agricultural impact mitigation agreement" means an
6388	6388	12 agreement between the pipeline owner, battery energy storage
6389	6389	13 system owner, electric line owner, commercial wind energy
6390	6390	14 facility owner, or the commercial solar energy facility owner
6391	6391	15 and the Department of Agriculture described in Section 15 of
6392	6392	16 this Act.
6393	6393	17 "Agricultural inspector" means a person hired by a
6394	6394	18 pipeline, electric line owner, battery energy storage system,
6395	6395	19 or commercial solar or wind energy facility and approved by
6396	6396	20 the Department who will work with the facility throughout the
6397	6397	21 construction and deconstruction phases to ensure compliance
6398	6398	22 with the provisions of the agricultural impact mitigation
6399	6399	23 agreement.
6400	6400	24 "Agricultural land" means real property or land used for
6401	6401	25 cropland, hay land, pasture, managed woodlands, truck gardens,
6402	6402	26 farm-to-market operations, garden-to-market operations,
6403	6403
6404	6404
6405	6405
6406	6406
6407	6407
6408	6408	HB5054 - 177 - LRB103 39370 JAG 69535 b
6409	6409
6410	6410
6411	6411	HB5054- 178 -LRB103 39370 JAG 69535 b HB5054 - 178 - LRB103 39370 JAG 69535 b
6412	6412	HB5054 - 178 - LRB103 39370 JAG 69535 b
6413	6413	1 farmsteads, commercial agriculture-related facilities,
6414	6414	2 feedlots, livestock confinement systems, land on which farm
6415	6415	3 buildings are located, and land in government set-aside
6416	6416	4 programs.
6417	6417	5 "Battery energy storage system" means a facility or
6418	6418	6 devices that enable energy from renewable energy facilities,
6419	6419	7 like solar and wind, to be stored and discharged when needed.
6420	6420	8 "Battery energy storage system" includes all components of the
6421	6421	9 system necessary to receive, store, and discharge energy.
6422	6422	10 "Battery energy storage system owner" means a private
6423	6423	11 commercial enterprise that owns a battery energy storage
6424	6424	12 system.
6425	6425	13 "Commercial renewable energy facility " means a commercial
6426	6426	14 wind energy facility or commercial solar energy facility as
6427	6427	15 defined in this Act.
6428	6428	16 "Commercial solar energy facility" means a commercial
6429	6429	17 solar energy system, as defined in Section 10-720 of the
6430	6430	18 Property Tax Code solar energy conversion facility equal to or
6431	6431	19 greater than 500 kilowatts in total nameplate capacity,
6432	6432	20 including a solar energy conversion facility seeking an
6433	6433	21 extension of a permit to construct granted by a county or
6434	6434	22 municipality before the effective date of this amendatory Act
6435	6435	23 of the 100th General Assembly. "Commercial solar energy
6436	6436	24 facility" does not include a utility-scale solar energy
6437	6437	25 facility being constructed at a site that was eligible to
6438	6438	26 participate in a procurement event conducted by the Illinois
6439	6439
6440	6440
6441	6441
6442	6442
6443	6443
6444	6444	HB5054 - 178 - LRB103 39370 JAG 69535 b
6445	6445
6446	6446
6447	6447	HB5054- 179 -LRB103 39370 JAG 69535 b HB5054 - 179 - LRB103 39370 JAG 69535 b
6448	6448	HB5054 - 179 - LRB103 39370 JAG 69535 b
6449	6449	1 Power Agency under subsection (c-5) of Section 1-75 of the
6450	6450	2 Illinois Power Agency Act include a solar energy conversion
6451	6451	3 facility: (1) for which a permit to construct has been issued
6452	6452	4 before the effective date of this amendatory Act of the 100th
6453	6453	5 General Assembly; (2) that is located on land owned by the
6454	6454	6 commercial solar energy facility owner; (3) that was
6455	6455	7 constructed before the effective date of this amendatory Act
6456	6456	8 of the 100th General Assembly; or (4) that is located on the
6457	6457	9 customer side of the customer's electric meter and is
6458	6458	10 primarily used to offset that customer's electricity load and
6459	6459	11 is limited in nameplate capacity to less than or equal to 2,000
6460	6460	12 kilowatts.
6461	6461	13 "Commercial solar energy facility owner" means a private
6462	6462	14 commercial enterprise that owns a commercial solar energy
6463	6463	15 facility. A commercial solar energy facility owner is not nor
6464	6464	16 shall it be deemed to be a public utility as defined in the
6465	6465	17 Public Utilities Act.
6466	6466	18 "Commercial wind energy facility" means a wind energy
6467	6467	19 conversion facility of equal or greater than 500 kilowatts in
6468	6468	20 total nameplate generating capacity. "Commercial wind energy
6469	6469	21 facility" includes a wind energy conversion facility seeking
6470	6470	22 an extension of a permit to construct granted by a county or
6471	6471	23 municipality before the effective date of this Act.
6472	6472	24 "Commercial wind energy facility" does not include a wind
6473	6473	25 energy conversion facility: (1) that has submitted a complete
6474	6474	26 permit application to a county or municipality and for which
6475	6475
6476	6476
6477	6477
6478	6478
6479	6479
6480	6480	HB5054 - 179 - LRB103 39370 JAG 69535 b
6481	6481
6482	6482
6483	6483	HB5054- 180 -LRB103 39370 JAG 69535 b HB5054 - 180 - LRB103 39370 JAG 69535 b
6484	6484	HB5054 - 180 - LRB103 39370 JAG 69535 b
6485	6485	1 the hearing on the completed application has commenced on the
6486	6486	2 date provided in the public hearing notice, which must be
6487	6487	3 before the effective date of this Act; (2) for which a permit
6488	6488	4 to construct has been issued before the effective date of this
6489	6489	5 Act; or (3) that was constructed before the effective date of
6490	6490	6 this Act.
6491	6491	7 "Commercial wind energy facility owner" means a private
6492	6492	8 commercial enterprise that owns or operates a commercial wind
6493	6493	9 energy facility. A commercial wind energy facility owner is
6494	6494	10 not nor shall it be deemed to be a public utility as defined in
6495	6495	11 the Public Utilities Act.
6496	6496	12 "Construction" means the installation, preparation for
6497	6497	13 installation, or repair of a pipeline, battery energy storage
6498	6498	14 system, electric line, or commercial renewable energy
6499	6499	15 facility.
6500	6500	16 "County" means the county where the pipeline, battery
6501	6501	17 energy storage system, electric line, or commercial renewable
6502	6502	18 energy facility is located.
6503	6503	19 "Deconstruction" means the removal of a battery energy
6504	6504	20 storage system or commercial renewable energy facility from
6505	6505	21 the property of a landowner and the restoration of that
6506	6506	22 property as provided in the agricultural impact mitigation
6507	6507	23 agreement.
6508	6508	24 "Department" means the Department of Agriculture.
6509	6509	25 "Electric line" means any part of electric power
6510	6510	26 facilities used to transmit or supply electricity that
6511	6511
6512	6512
6513	6513
6514	6514
6515	6515
6516	6516	HB5054 - 180 - LRB103 39370 JAG 69535 b
6517	6517
6518	6518
6519	6519	HB5054- 181 -LRB103 39370 JAG 69535 b HB5054 - 181 - LRB103 39370 JAG 69535 b
6520	6520	HB5054 - 181 - LRB103 39370 JAG 69535 b
6521	6521	1 requires a certificate issued by the Illinois Commerce
6522	6522	2 Commission and includes substations, switching stations,
6523	6523	3 poles, towers, and associated appurtenances.
6524	6524	4 "Electric line owner" means a private commercial
6525	6525	5 enterprise that owns an electric line.
6526	6526	6 "Landowner" means any person company, or entity who owns
6527	6527	7 agricultural land in the State of Illinois (1) with an
6528	6528	8 ownership interest in property that is and from whom the owner
6529	6529	9 of a pipeline, electric line, battery energy storage system,
6530	6530	10 or commercial renewable energy facility is seeking, or has
6531	6531	11 obtained, a temporary or permanent easement. "Landowner"
6532	6532	12 includes any person, company, or entity legally authorized by
6533	6533	13 a landowner to make decisions regarding such property used for
6534	6534	14 agricultural purposes and (2) that is a party to an underlying
6535	6535	15 agreement.
6536	6536	16 "Pipeline" means any pipe or appurtenance that crosses or
6537	6537	17 is located in Illinois that is associated with the conveyance
6538	6538	18 of oil, natural gas, propane, carbon dioxide, or other medium
6539	6539	19 that requires a certificate issued by the Federal Regulatory
6540	6540	20 Commission, the Pipeline and Hazardous Materials Safety
6541	6541	21 Administration, or a certificate issued by the Illinois
6542	6542	22 Commerce Commission.
6543	6543	23 "Pipeline owner" means a private commercial enterprise or
6544	6544	24 any public utility that owns a pipeline.
6545	6545	25 "Project" means any planned enterprise or undertaking
6546	6546	26 under this Act that requires an agricultural impact mitigation
6547	6547
6548	6548
6549	6549
6550	6550
6551	6551
6552	6552	HB5054 - 181 - LRB103 39370 JAG 69535 b
6553	6553
6554	6554
6555	6555	HB5054- 182 -LRB103 39370 JAG 69535 b HB5054 - 182 - LRB103 39370 JAG 69535 b
6556	6556	HB5054 - 182 - LRB103 39370 JAG 69535 b
6557	6557	1 agreement.
6558	6558	2 "Project area" means the geographic footprint or property
6559	6559	3 boundary of the project within which construction, operation,
6560	6560	4 and maintenance will occur, and includes setback zones as
6561	6561	5 required by local, State, or federal regulations.
6562	6562	6 "Project owner" means any owner of the project, including
6563	6563	7 a pipeline owner, a battery energy storage system owner, an
6564	6564	8 electric line owner, or a commercial renewable energy facility
6565	6565	9 owner of a commercial wind energy facility or a commercial
6566	6566	10 solar energy facility.
6567	6567	11 "Underlying agreement" means the written agreement with a
6568	6568	12 landowner, including, but not limited to, an easement, option,
6569	6569	13 lease, or license, under the terms of which another person has
6570	6570	14 constructed, constructs, or intends to construct a pipeline,
6571	6571	15 battery energy storage system, electric line, or commercial
6572	6572	16 wind energy facility or commercial solar energy facility on
6573	6573	17 the property of the landowner.
6574	6574	18 (Source: P.A. 99-132, eff. 7-24-15; 100-598, eff. 6-29-18.)
6575	6575	19 (505 ILCS 147/15)
6576	6576	20 Sec. 15. Agricultural impact mitigation agreement.
6577	6577	21 (a) A pipeline owner, a battery energy storage system
6578	6578	22 owner, an electric line owner, or a commercial renewable
6579	6579	23 energy facility owner of a commercial wind energy facility or
6580	6580	24 a commercial solar energy facility that is located on
6581	6581	25 landowner property shall enter into an agricultural impact
6582	6582
6583	6583
6584	6584
6585	6585
6586	6586
6587	6587	HB5054 - 182 - LRB103 39370 JAG 69535 b
6588	6588
6589	6589
6590	6590	HB5054- 183 -LRB103 39370 JAG 69535 b HB5054 - 183 - LRB103 39370 JAG 69535 b
6591	6591	HB5054 - 183 - LRB103 39370 JAG 69535 b
6592	6592	1 mitigation agreement with the Department. The agricultural
6593	6593	2 impact agreement shall outline outlining construction and
6594	6594	3 deconstruction standards and policies designed to preserve the
6595	6595	4 integrity of any agricultural land that is impacted by the
6596	6596	5 construction or deconstruction of a pipeline, battery energy
6597	6597	6 storage system, electric line, or commercial renewable energy
6598	6598	7 facility construction and deconstruction. The construction and
6599	6599	8 deconstruction of any pipeline, battery energy storage system,
6600	6600	9 electric line, or commercial renewable solar energy facility
6601	6601	10 shall be in conformance with the Department's standard
6602	6602	11 agricultural impact mitigation agreement referenced in
6603	6603	12 subsection (g) (f) of this Section. Except as provided in
6604	6604	13 subsections subsection (a-5), (a-10), and (a-15) of this
6605	6605	14 Section, the terms and conditions of the Department's standard
6606	6606	15 agricultural impact mitigation agreement are subject to and
6607	6607	16 may be modified by an underlying agreement between the
6608	6608	17 landowner and the project owner commercial solar energy
6609	6609	18 facility owner.
6610	6610	19 (a-5) Prior to the commencement of construction, a
6611	6611	20 commercial solar energy facility owner shall submit to the
6612	6612	21 county in which the commercial solar facility is to be located
6613	6613	22 a deconstruction plan. A commercial solar energy facility
6614	6614	23 owner shall provide the county with an appropriate financial
6615	6615	24 assurance mechanism consistent with the Department's standard
6616	6616	25 agricultural impact mitigation agreement for and to assure
6617	6617	26 deconstruction in the event of an abandonment of a commercial
6618	6618
6619	6619
6620	6620
6621	6621
6622	6622
6623	6623	HB5054 - 183 - LRB103 39370 JAG 69535 b
6624	6624
6625	6625
6626	6626	HB5054- 184 -LRB103 39370 JAG 69535 b HB5054 - 184 - LRB103 39370 JAG 69535 b
6627	6627	HB5054 - 184 - LRB103 39370 JAG 69535 b
6628	6628	1 solar energy facility.
6629	6629	2 (a-10) Prior to the commencement of construction, a
6630	6630	3 commercial wind energy facility owner shall submit to the
6631	6631	4 county in which the commercial wind energy facility is to be
6632	6632	5 located a deconstruction plan. A commercial wind energy
6633	6633	6 facility owner shall provide the county with an appropriate
6634	6634	7 financial assurance mechanism consistent with the Department's
6635	6635	8 standard agricultural impact mitigation agreement to assure
6636	6636	9 deconstruction in the event of an abandonment of a commercial
6637	6637	10 wind energy facility.
6638	6638	11 (a-15) Prior to the commencement of construction, a
6639	6639	12 battery energy storage system owner shall submit to the county
6640	6640	13 in which the battery energy storage system is to be located a
6641	6641	14 deconstruction plan. A battery energy storage system owner
6642	6642	15 shall provide the county with an appropriate financial
6643	6643	16 assurance mechanism consistent with the Department's standard
6644	6644	17 agricultural impact mitigation agreement to assure
6645	6645	18 deconstruction in the event of an abandonment of a battery
6646	6646	19 energy storage system.
6647	6647	20 (a-20) Prior to the commencement of construction, a
6648	6648	21 pipeline owner shall submit an executed agricultural impact
6649	6649	22 mitigation agreement to the Federal Energy Regulatory
6650	6650	23 Commission or to the Pipeline and Hazardous Material Safety
6651	6651	24 Administration of the federal Department of Transportation.
6652	6652	25 The executed agricultural impact mitigation agreement shall be
6653	6653	26 included as part of the pipeline's submissions to the Federal
6654	6654
6655	6655
6656	6656
6657	6657
6658	6658
6659	6659	HB5054 - 184 - LRB103 39370 JAG 69535 b
6660	6660
6661	6661
6662	6662	HB5054- 185 -LRB103 39370 JAG 69535 b HB5054 - 185 - LRB103 39370 JAG 69535 b
6663	6663	HB5054 - 185 - LRB103 39370 JAG 69535 b
6664	6664	1 Energy Regulatory Commission or the Pipeline and Hazardous
6665	6665	2 Material Safety Administration, and the pipeline shall request
6666	6666	3 the Federal Energy Regulatory Commission or the Pipeline and
6667	6667	4 Hazardous Material Safety Administration to include a
6668	6668	5 statement affirming the pipeline's adherence to the
6669	6669	6 agricultural impact mitigation agreement's construction
6670	6670	7 standards and policies in any environmental assessment or
6671	6671	8 environmental impact statement that may be prepared on the
6672	6672	9 pipeline.
6673	6673	10 (a-25) Prior to the commencement of construction, an
6674	6674	11 electric line owner shall submit to the Illinois Commerce
6675	6675	12 Commission an executed agricultural impact mitigation
6676	6676	13 agreement. The electric line owner shall include a statement
6677	6677	14 affirming the electric line's adherence to the agricultural
6678	6678	15 impact mitigation agreement's construction standards and
6679	6679	16 policies in any environmental assessment or environmental
6680	6680	17 impact statement that may be prepared on the electric line.
6681	6681	18 (a-30) A battery energy storage system owner shall include
6682	6682	19 a statement affirming the battery energy storage system's
6683	6683	20 adherence to the agricultural impact mitigation agreement's
6684	6684	21 construction standards and policies in any environmental
6685	6685	22 assessment or environmental impact statement that may be
6686	6686	23 prepared on the battery energy storage system. A battery
6687	6687	24 energy storage system owner shall comply with all applicable
6688	6688	25 local, State, and federal regulations.
6689	6689	26 (b) The agricultural impact mitigation agreement for a
6690	6690
6691	6691
6692	6692
6693	6693
6694	6694
6695	6695	HB5054 - 185 - LRB103 39370 JAG 69535 b
6696	6696
6697	6697
6698	6698	HB5054- 186 -LRB103 39370 JAG 69535 b HB5054 - 186 - LRB103 39370 JAG 69535 b
6699	6699	HB5054 - 186 - LRB103 39370 JAG 69535 b
6700	6700	1 commercial wind energy facility shall include, but is not
6701	6701	2 limited to, such items as restoration of agricultural land
6702	6702	3 affected by construction, deconstruction (including upon
6703	6703	4 abandonment of a commercial wind energy facility),
6704	6704	5 construction staging, and storage areas; support structures;
6705	6705	6 aboveground facilities; guy wires and anchors; underground
6706	6706	7 cabling depth; topsoil replacement; protection and repair of
6707	6707	8 agricultural drainage tiles; rock removal; repair of
6708	6708	9 compaction and rutting; construction during wet weather; land
6709	6709	10 leveling; prevention of soil erosion; repair of damaged soil
6710	6710	11 conservation practices; compensation for damages to private
6711	6711	12 property; clearing of trees and brush; interference with
6712	6712	13 irrigation systems; access roads; weed control; pumping of
6713	6713	14 water from open excavations; advance notice of access to
6714	6714	15 private property; indemnification of landowners; and
6715	6715	16 deconstruction plans and financial assurance for
6716	6716	17 deconstruction (including upon abandonment of a commercial
6717	6717	18 wind energy facility).
6718	6718	19 (b-5) The agricultural impact mitigation agreement for a
6719	6719	20 commercial solar energy facility shall include, but is not
6720	6720	21 limited to, such items as restoration of agricultural land
6721	6721	22 affected by construction, deconstruction (including upon
6722	6722	23 abandonment of a commercial solar energy facility); support
6723	6723	24 structures; aboveground facilities; guy wires and anchors;
6724	6724	25 underground cabling depth; topsoil removal and replacement;
6725	6725	26 rerouting and permanent repair of agricultural drainage tiles;
6726	6726
6727	6727
6728	6728
6729	6729
6730	6730
6731	6731	HB5054 - 186 - LRB103 39370 JAG 69535 b
6732	6732
6733	6733
6734	6734	HB5054- 187 -LRB103 39370 JAG 69535 b HB5054 - 187 - LRB103 39370 JAG 69535 b
6735	6735	HB5054 - 187 - LRB103 39370 JAG 69535 b
6736	6736	1 rock removal; repair of compaction and rutting; construction
6737	6737	2 during wet weather; land leveling; prevention of soil erosion;
6738	6738	3 repair of damaged soil conservation practices; compensation
6739	6739	4 for damages to private property; clearing of trees and brush;
6740	6740	5 access roads; weed control; advance notice of access to
6741	6741	6 private property; indemnification of landowners; and
6742	6742	7 deconstruction plans and financial assurance for
6743	6743	8 deconstruction (including upon abandonment of a commercial
6744	6744	9 solar energy facility). The commercial solar energy facility
6745	6745	10 owner shall enter into one agricultural impact mitigation
6746	6746	11 agreement for each commercial solar energy facility.
6747	6747	12 (b-10) The agricultural impact mitigation agreement for a
6748	6748	13 battery energy storage system shall include, but is not
6749	6749	14 limited to, such items as restoration of agricultural land
6750	6750	15 affected by construction; deconstruction (including upon
6751	6751	16 abandonment of a battery energy storage system); support
6752	6752	17 structures and components; aboveground facilities; underground
6753	6753	18 cabling depth; topsoil removal and replacement; rerouting and
6754	6754	19 permanent repair of agricultural drainage tile; rock removal;
6755	6755	20 repair of compaction and rutting; construction during wet
6756	6756	21 weather; land leveling; prevention of soil erosion; repair of
6757	6757	22 damaged soil conservation practices; compensation for damages
6758	6758	23 to private property; clearing of trees and brush; access
6759	6759	24 roads; weed control; advance notice of access to private
6760	6760	25 property; indemnification of landowners; and deconstruction
6761	6761	26 plans and financial assurance for deconstruction (including
6762	6762
6763	6763
6764	6764
6765	6765
6766	6766
6767	6767	HB5054 - 187 - LRB103 39370 JAG 69535 b
6768	6768
6769	6769
6770	6770	HB5054- 188 -LRB103 39370 JAG 69535 b HB5054 - 188 - LRB103 39370 JAG 69535 b
6771	6771	HB5054 - 188 - LRB103 39370 JAG 69535 b
6772	6772	1 upon abandonment of a battery storage facility). The battery
6773	6773	2 energy storage system owner shall enter into one agricultural
6774	6774	3 impact mitigation agreement for each battery energy storage
6775	6775	4 system.
6776	6776	5 (b-15) The agricultural impact mitigation agreement of a
6777	6777	6 pipeline shall include, but is not limited to, such items as
6778	6778	7 restoration of agricultural land affected by construction and
6779	6779	8 repair of the pipeline; aboveground facilities; underground
6780	6780	9 pipeline depth; topsoil removal and replacement; rerouting and
6781	6781	10 permanent repair of agricultural drainage tiles; interference
6782	6782	11 with irrigation systems; weed control; rock removal; repair of
6783	6783	12 compaction and rutting; construction during wet weather; land
6784	6784	13 leveling; prevention of soil erosion; repair of damaged soil
6785	6785	14 conservation practices; compensation for damages to private
6786	6786	15 property; clearing of trees and brush; access roads; advance
6787	6787	16 notice to access to private property; and indemnification of
6788	6788	17 landowners. The pipeline owner shall enter into one
6789	6789	18 agricultural impact mitigation agreement for each pipeline.
6790	6790	19 (b-20) The agricultural impact mitigation agreement for an
6791	6791	20 electric line shall include, but is not limited to, such items
6792	6792	21 as restoration of agricultural land affected by construction
6793	6793	22 and repair of an electric line; support structures;
6794	6794	23 aboveground facilities; rerouting and permanent repair of
6795	6795	24 agricultural drainage tiles; interference with irrigation
6796	6796	25 systems; weed control; rock removal; repair of compaction and
6797	6797	26 rutting; construction during wet weather; land leveling;
6798	6798
6799	6799
6800	6800
6801	6801
6802	6802
6803	6803	HB5054 - 188 - LRB103 39370 JAG 69535 b
6804	6804
6805	6805
6806	6806	HB5054- 189 -LRB103 39370 JAG 69535 b HB5054 - 189 - LRB103 39370 JAG 69535 b
6807	6807	HB5054 - 189 - LRB103 39370 JAG 69535 b
6808	6808	1 prevention of soil erosion; repair of damaged soil
6809	6809	2 conservation practices; compensation for damages to private
6810	6810	3 property; clearing of trees and brush; access roads; advance
6811	6811	4 notice to access to private property; and indemnification of
6812	6812	5 landowners. The electric line owner shall enter into one
6813	6813	6 agricultural impact mitigation agreement for each electric
6814	6814	7 line.
6815	6815	8 (c) For commercial wind energy facility owners seeking a
6816	6816	9 permit from a county or municipality for the construction of a
6817	6817	10 commercial wind energy facility, the agricultural impact
6818	6818	11 mitigation agreement shall be entered into prior to the public
6819	6819	12 hearing required prior to a siting decision of a county or
6820	6820	13 municipality regarding the commercial wind energy facility.
6821	6821	14 The agricultural impact mitigation agreement is binding on any
6822	6822	15 subsequent commercial wind energy facility owner that takes
6823	6823	16 ownership of the commercial wind energy facility that is the
6824	6824	17 subject of the agreement.
6825	6825	18 (c-5) A commercial solar energy facility owner shall, not
6826	6826	19 less than 45 days prior to commencement of actual
6827	6827	20 construction, submit to the Department a standard agricultural
6828	6828	21 impact mitigation agreement as referenced in subsection (f) of
6829	6829	22 this Section signed by the commercial solar energy facility
6830	6830	23 owner and including all information required by the
6831	6831	24 Department. The commercial solar energy facility owner shall
6832	6832	25 provide either a copy of that submitted agreement or a copy of
6833	6833	26 the fully executed project-specific agricultural impact
6834	6834
6835	6835
6836	6836
6837	6837
6838	6838
6839	6839	HB5054 - 189 - LRB103 39370 JAG 69535 b
6840	6840
6841	6841
6842	6842	HB5054- 190 -LRB103 39370 JAG 69535 b HB5054 - 190 - LRB103 39370 JAG 69535 b
6843	6843	HB5054 - 190 - LRB103 39370 JAG 69535 b
6844	6844	1 mitigation agreement to the landowner not less than 30 days
6845	6845	2 prior to the commencement of construction. The agricultural
6846	6846	3 impact mitigation agreement is binding on any subsequent
6847	6847	4 commercial solar energy facility owner that takes ownership of
6848	6848	5 the commercial solar energy facility that is the subject of
6849	6849	6 the agreement.
6850	6850	7 (c-10) An electric line owner shall incorporate by
6851	6851	8 reference the terms of the agricultural impact mitigation
6852	6852	9 agreement in underlying agreements executed with landowners on
6853	6853	10 privately owned agricultural land in Illinois and, not less
6854	6854	11 than 45 days prior to the commencement of construction,
6855	6855	12 provide the Department with a current list of affected
6856	6856	13 landowners and tenants.
6857	6857	14 (c-15) A pipeline owner shall incorporate by reference the
6858	6858	15 terms of the agricultural impact mitigation agreement in
6859	6859	16 underlying agreements executed with landowners on privately
6860	6860	17 owned agricultural land in Illinois and, not less than 45 days
6861	6861	18 prior to the commencement of construction, provide the
6862	6862	19 Department with a current list of affected landowners and
6863	6863	20 tenants.
6864	6864	21 (c-20) A battery energy storage system owner shall
6865	6865	22 incorporate by reference the terms of the agricultural impact
6866	6866	23 mitigation agreement in underlying agreements executed with
6867	6867	24 landowners on privately owned agricultural land in Illinois
6868	6868	25 and, not less than 45 days prior to the commencement of
6869	6869	26 construction, provide the Department with a current list of
6870	6870
6871	6871
6872	6872
6873	6873
6874	6874
6875	6875	HB5054 - 190 - LRB103 39370 JAG 69535 b
6876	6876
6877	6877
6878	6878	HB5054- 191 -LRB103 39370 JAG 69535 b HB5054 - 191 - LRB103 39370 JAG 69535 b
6879	6879	HB5054 - 191 - LRB103 39370 JAG 69535 b
6880	6880	1 affected landowners and tenants.
6881	6881	2 (d) If a commercial renewable energy facility owner seeks
6882	6882	3 an extension of a permit granted by a county or municipality
6883	6883	4 for the construction of a commercial wind energy facility
6884	6884	5 prior to the effective date of this Act, the agricultural
6885	6885	6 impact mitigation agreement shall be entered into prior to a
6886	6886	7 decision by the county or municipality to grant the permit
6887	6887	8 extension.
6888	6888	9 (e) Each project shall have agricultural inspectors. The
6889	6889	10 Department shall establish, by rule, the number of
6890	6890	11 agricultural inspectors each project shall require.
6891	6891	12 (e-5) Prior to commencement of construction of a project,
6892	6892	13 the project owner shall submit the names, qualifications, and
6893	6893	14 other relevant information of the project owner's chosen
6894	6894	15 agricultural inspectors to the Department for approval. No
6895	6895	16 construction on a project may commence until the Department
6896	6896	17 has approved the requisite number of agricultural inspectors
6897	6897	18 for the project. The Department shall establish, by rule, the
6898	6898	19 minimum qualifications of an agricultural inspector.
6899	6899	20 (e-10) The project owner shall be responsible for the cost
6900	6900	21 of work performed by an agricultural inspector, including, but
6901	6901	22 not limited to, salary, wages, bonuses, benefits, and any
6902	6902	23 other compensation. Upon approval by the Department of an
6903	6903	24 agricultural inspector, the project owner shall submit to the
6904	6904	25 Department the estimated salary or wages to be paid to the
6905	6905	26 agricultural inspector for work on the project.
6906	6906
6907	6907
6908	6908
6909	6909
6910	6910
6911	6911	HB5054 - 191 - LRB103 39370 JAG 69535 b
6912	6912
6913	6913
6914	6914	HB5054- 192 -LRB103 39370 JAG 69535 b HB5054 - 192 - LRB103 39370 JAG 69535 b
6915	6915	HB5054 - 192 - LRB103 39370 JAG 69535 b
6916	6916	1 (e-15) Agricultural inspectors shall monitor the project
6917	6917	2 owner's compliance with all provisions of the agricultural
6918	6918	3 impact mitigation agreement throughout all phases of the
6919	6919	4 project, including, but not limited to, construction and
6920	6920	5 deconstruction phases and shall report all instances of
6921	6921	6 noncompliance to the Department. Upon a finding of
6922	6922	7 noncompliance with any provision of the agricultural impact
6923	6923	8 mitigation agreement, an agricultural inspector may
6924	6924	9 temporarily halt construction, deconstruction, or any other
6925	6925	10 activities on a project. The Department shall have the sole
6926	6926	11 authority to lift any such temporary halt implemented by an
6927	6927	12 agricultural inspector when, in the Department's discretion,
6928	6928	13 the noncompliance is deemed resolved.
6929	6929	14 (e-20) The Department may temporarily halt construction,
6930	6930	15 deconstruction, or any other activities on a project upon its
6931	6931	16 own finding of noncompliance by the project owner with any
6932	6932	17 provision of the agricultural impact mitigation agreement. Any
6933	6933	18 such temporary halt implemented by the Department shall remain
6934	6934	19 in place until, in the Department's discretion, the
6935	6935	20 noncompliance is deemed resolved.
6936	6936	21 (e-25) Agricultural inspectors shall train all related
6937	6937	22 contractors and subcontractors on the terms of the
6938	6938	23 agricultural impact mitigation agreement and provide a copy of
6939	6939	24 the agricultural impact mitigation agreement to them; maintain
6940	6940	25 contact with the affected landowners and farm tenants in
6941	6941	26 conjunction with the project owner's right-of-way agents and
6942	6942
6943	6943
6944	6944
6945	6945
6946	6946
6947	6947	HB5054 - 192 - LRB103 39370 JAG 69535 b
6948	6948
6949	6949
6950	6950	HB5054- 193 -LRB103 39370 JAG 69535 b HB5054 - 193 - LRB103 39370 JAG 69535 b
6951	6951	HB5054 - 193 - LRB103 39370 JAG 69535 b
6952	6952	1 contractors, as well as local soil and water conservation
6953	6953	2 district personnel concerning farm resources and management
6954	6954	3 matters pertinent to the agricultural operations and the
6955	6955	4 site-specific implementation of the agricultural impact
6956	6956	5 mitigation agreement; and conduct inspections on the project
6957	6957	6 to monitor for compliance.
6958	6958	7 (e-30) A project owner may not remove an agricultural
6959	6959	8 inspector from a project without just cause. Just cause shall
6960	6960	9 not include an agricultural inspector's good faith efforts to
6961	6961	10 comply with this Act or good faith implementation of a
6962	6962	11 temporary halt as described in subsection (e-15).
6963	6963	12 (e-35) The Department may remove an agricultural inspector
6964	6964	13 from a project for just cause, including, but not limited to,
6965	6965	14 failure to report noncompliance by the project owner with the
6966	6966	15 agricultural impact mitigation agreement. If an agricultural
6967	6967	16 inspector is removed from a project under either this
6968	6968	17 subsection or subsection (e-30), the project owner shall
6969	6969	18 submit to the Department for approval a qualified replacement
6970	6970	19 within 45 days of the previous individual being removed.
6971	6971	20 (f) (e) The Department shall have the authority to adopt
6972	6972	21 rules, in accordance with the Illinois Administrative
6973	6973	22 Procedure Act, that are necessary and appropriate may adopt
6974	6974	23 rules that are necessary and appropriate for the
6975	6975	24 implementation and administration of agricultural impact
6976	6976	25 mitigation agreements as required under this Act.
6977	6977	26 (g) (f) The Department shall make available on its website
6978	6978
6979	6979
6980	6980
6981	6981
6982	6982
6983	6983	HB5054 - 193 - LRB103 39370 JAG 69535 b
6984	6984
6985	6985
6986	6986	HB5054- 194 -LRB103 39370 JAG 69535 b HB5054 - 194 - LRB103 39370 JAG 69535 b
6987	6987	HB5054 - 194 - LRB103 39370 JAG 69535 b
6988	6988	1 a standard agricultural impact mitigation agreement applicable
6989	6989	2 to all pipeline, electric line, battery energy storage system,
6990	6990	3 and commercial solar and wind energy facilities within 60 days
6991	6991	4 after the effective date of this amendatory Act of the 103rd
6992	6992	5 General Assembly amendatory Act of the 100th General Assembly.
6993	6993	6 The Department may revise its standard agricultural impact
6994	6994	7 mitigation agreement as it deems necessary. The Department may
6995	6995	8 require additional project-specific provisions in any
6996	6996	9 agricultural impact mitigation agreement as it deems necessary
6997	6997	10 to preserve the integrity of any agricultural land that is
6998	6998	11 impacted by the project.
6999	6999	12 (h) If a project owner fails or refuses to enter into the
7000	7000	13 agricultural impact mitigation as required by subsection (a)
7001	7001	14 and construction on the project has commenced, the Department
7002	7002	15 may temporarily halt construction on the project until the
7003	7003	16 required agricultural impact mitigation agreement is executed
7004	7004	17 between the project owner and the Department.
7005	7005	18 (i) In the absence of an underlying agreement, such as
7006	7006	19 instances when a project is authorized to proceed by court
7007	7007	20 order, the Department's standard agricultural impact
7008	7008	21 mitigation agreement and its terms are not negotiable and may
7009	7009	22 not be altered without written landowner consent, approved
7010	7010	23 compensation, or both
7011	7011	. The agricultural impact mitigation
7012	7012	24 agreement shall be used in its entirety for all phases of the
7013	7013	25 project if
7014	7014	no mutually agreeable underlying agreement is in
7015	7015	26 place.
7016	7016
7017	7017
7018	7018
7019	7019
7020	7020
7021	7021	HB5054 - 194 - LRB103 39370 JAG 69535 b
7022	7022
7023	7023
7024	7024	HB5054- 195 -LRB103 39370 JAG 69535 b HB5054 - 195 - LRB103 39370 JAG 69535 b
7025	7025	HB5054 - 195 - LRB103 39370 JAG 69535 b
7026	7026
7027	7027
7028	7028
7029	7029
7030	7030
7031	7031	HB5054 - 195 - LRB103 39370 JAG 69535 b