Illinois Senate Bill SB1353 Introduced / Bill

                    103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1353 Introduced 2/6/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:  20 ILCS 3855/1-10 20 ILCS 3855/1-2020 ILCS 3855/1-75  Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency is authorized to oversee the procurement by electric utilities of renewable energy credits from new, newly modernized, or retooled hydropower facilities in accordance with the planning and procurement provisions of the Act. Provides that the Agency shall not comply with the annual percentage targets of the long-term renewable resources procurement plan by procuring renewable energy credits that are unlikely to lead to the development of new renewable resources or modernized or retooled hydroelectric resources (rather than the development of new renewable resources). Provides that the Agency shall consider other approaches, in addition to competitive procurements, to procure renewable energy credits from new and existing hydroelectric facilities to support the development and maintenance of these facilities. Provides that, on and after the effective date of the amendatory Act, for all procurements of renewable energy credits from hydroelectric facilities, the Agency shall establish contract terms designed to optimize existing hydroelectric facilities through modernization or retooling. Provides that procurement of renewable energy credits from hydroelectric facilities shall comply with specified geographic requirements. Provides that all new, newly modernized, or retooled hydropower facilities shall be subject to the prevailing wage requirements included in the Prevailing Wage Act. Makes a change in provisions concerning definitions.  LRB103 29447 AMQ 55839 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1353 Introduced 2/6/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:  20 ILCS 3855/1-10 20 ILCS 3855/1-2020 ILCS 3855/1-75 20 ILCS 3855/1-10  20 ILCS 3855/1-20  20 ILCS 3855/1-75  Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency is authorized to oversee the procurement by electric utilities of renewable energy credits from new, newly modernized, or retooled hydropower facilities in accordance with the planning and procurement provisions of the Act. Provides that the Agency shall not comply with the annual percentage targets of the long-term renewable resources procurement plan by procuring renewable energy credits that are unlikely to lead to the development of new renewable resources or modernized or retooled hydroelectric resources (rather than the development of new renewable resources). Provides that the Agency shall consider other approaches, in addition to competitive procurements, to procure renewable energy credits from new and existing hydroelectric facilities to support the development and maintenance of these facilities. Provides that, on and after the effective date of the amendatory Act, for all procurements of renewable energy credits from hydroelectric facilities, the Agency shall establish contract terms designed to optimize existing hydroelectric facilities through modernization or retooling. Provides that procurement of renewable energy credits from hydroelectric facilities shall comply with specified geographic requirements. Provides that all new, newly modernized, or retooled hydropower facilities shall be subject to the prevailing wage requirements included in the Prevailing Wage Act. Makes a change in provisions concerning definitions.  LRB103 29447 AMQ 55839 b     LRB103 29447 AMQ 55839 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1353 Introduced 2/6/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-10 20 ILCS 3855/1-2020 ILCS 3855/1-75 20 ILCS 3855/1-10  20 ILCS 3855/1-20  20 ILCS 3855/1-75
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-75
Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency is authorized to oversee the procurement by electric utilities of renewable energy credits from new, newly modernized, or retooled hydropower facilities in accordance with the planning and procurement provisions of the Act. Provides that the Agency shall not comply with the annual percentage targets of the long-term renewable resources procurement plan by procuring renewable energy credits that are unlikely to lead to the development of new renewable resources or modernized or retooled hydroelectric resources (rather than the development of new renewable resources). Provides that the Agency shall consider other approaches, in addition to competitive procurements, to procure renewable energy credits from new and existing hydroelectric facilities to support the development and maintenance of these facilities. Provides that, on and after the effective date of the amendatory Act, for all procurements of renewable energy credits from hydroelectric facilities, the Agency shall establish contract terms designed to optimize existing hydroelectric facilities through modernization or retooling. Provides that procurement of renewable energy credits from hydroelectric facilities shall comply with specified geographic requirements. Provides that all new, newly modernized, or retooled hydropower facilities shall be subject to the prevailing wage requirements included in the Prevailing Wage Act. Makes a change in provisions concerning definitions.
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A BILL FOR
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1  AN ACT concerning State government.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Power Agency Act is amended by
5  changing Sections 1-10, 1-20, and 1-75 as follows:
6  (20 ILCS 3855/1-10)
7  Sec. 1-10. Definitions.
8  "Agency" means the Illinois Power Agency.
9  "Agency loan agreement" means any agreement pursuant to
10  which the Illinois Finance Authority agrees to loan the
11  proceeds of revenue bonds issued with respect to a project to
12  the Agency upon terms providing for loan repayment
13  installments at least sufficient to pay when due all principal
14  of, interest and premium, if any, on those revenue bonds, and
15  providing for maintenance, insurance, and other matters in
16  respect of the project.
17  "Authority" means the Illinois Finance Authority.
18  "Brownfield site photovoltaic project" means photovoltaics
19  that are either:
20  (1) interconnected to an electric utility as defined
21  in this Section, a municipal utility as defined in this
22  Section, a public utility as defined in Section 3-105 of
23  the Public Utilities Act, or an electric cooperative as

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1353 Introduced 2/6/2023, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-10 20 ILCS 3855/1-2020 ILCS 3855/1-75 20 ILCS 3855/1-10  20 ILCS 3855/1-20  20 ILCS 3855/1-75
20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-75
Amends the Illinois Power Agency Act. Provides that the Illinois Power Agency is authorized to oversee the procurement by electric utilities of renewable energy credits from new, newly modernized, or retooled hydropower facilities in accordance with the planning and procurement provisions of the Act. Provides that the Agency shall not comply with the annual percentage targets of the long-term renewable resources procurement plan by procuring renewable energy credits that are unlikely to lead to the development of new renewable resources or modernized or retooled hydroelectric resources (rather than the development of new renewable resources). Provides that the Agency shall consider other approaches, in addition to competitive procurements, to procure renewable energy credits from new and existing hydroelectric facilities to support the development and maintenance of these facilities. Provides that, on and after the effective date of the amendatory Act, for all procurements of renewable energy credits from hydroelectric facilities, the Agency shall establish contract terms designed to optimize existing hydroelectric facilities through modernization or retooling. Provides that procurement of renewable energy credits from hydroelectric facilities shall comply with specified geographic requirements. Provides that all new, newly modernized, or retooled hydropower facilities shall be subject to the prevailing wage requirements included in the Prevailing Wage Act. Makes a change in provisions concerning definitions.
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A BILL FOR

 

 

20 ILCS 3855/1-10
20 ILCS 3855/1-20
20 ILCS 3855/1-75



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1  defined in Section 3-119 of the Public Utilities Act and
2  located at a site that is regulated by any of the following
3  entities under the following programs:
4  (A) the United States Environmental Protection
5  Agency under the federal Comprehensive Environmental
6  Response, Compensation, and Liability Act of 1980, as
7  amended;
8  (B) the United States Environmental Protection
9  Agency under the Corrective Action Program of the
10  federal Resource Conservation and Recovery Act, as
11  amended;
12  (C) the Illinois Environmental Protection Agency
13  under the Illinois Site Remediation Program; or
14  (D) the Illinois Environmental Protection Agency
15  under the Illinois Solid Waste Program; or
16  (2) located at the site of a coal mine that has
17  permanently ceased coal production, permanently halted any
18  re-mining operations, and is no longer accepting any coal
19  combustion residues; has both completed all clean-up and
20  remediation obligations under the federal Surface Mining
21  and Reclamation Act of 1977 and all applicable Illinois
22  rules and any other clean-up, remediation, or ongoing
23  monitoring to safeguard the health and well-being of the
24  people of the State of Illinois, as well as demonstrated
25  compliance with all applicable federal and State
26  environmental rules and regulations, including, but not

 

 

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1  limited, to 35 Ill. Adm. Code Part 845 and any rules for
2  historic fill of coal combustion residuals, including any
3  rules finalized in Subdocket A of Illinois Pollution
4  Control Board docket R2020-019.
5  "Clean coal facility" means an electric generating
6  facility that uses primarily coal as a feedstock and that
7  captures and sequesters carbon dioxide emissions at the
8  following levels: at least 50% of the total carbon dioxide
9  emissions that the facility would otherwise emit if, at the
10  time construction commences, the facility is scheduled to
11  commence operation before 2016, at least 70% of the total
12  carbon dioxide emissions that the facility would otherwise
13  emit if, at the time construction commences, the facility is
14  scheduled to commence operation during 2016 or 2017, and at
15  least 90% of the total carbon dioxide emissions that the
16  facility would otherwise emit if, at the time construction
17  commences, the facility is scheduled to commence operation
18  after 2017. The power block of the clean coal facility shall
19  not exceed allowable emission rates for sulfur dioxide,
20  nitrogen oxides, carbon monoxide, particulates and mercury for
21  a natural gas-fired combined-cycle facility the same size as
22  and in the same location as the clean coal facility at the time
23  the clean coal facility obtains an approved air permit. All
24  coal used by a clean coal facility shall have high volatile
25  bituminous rank and greater than 1.7 pounds of sulfur per
26  million Btu btu content, unless the clean coal facility does

 

 

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1  not use gasification technology and was operating as a
2  conventional coal-fired electric generating facility on June
3  1, 2009 (the effective date of Public Act 95-1027).
4  "Clean coal SNG brownfield facility" means a facility that
5  (1) has commenced construction by July 1, 2015 on an urban
6  brownfield site in a municipality with at least 1,000,000
7  residents; (2) uses a gasification process to produce
8  substitute natural gas; (3) uses coal as at least 50% of the
9  total feedstock over the term of any sourcing agreement with a
10  utility and the remainder of the feedstock may be either
11  petroleum coke or coal, with all such coal having a high
12  bituminous rank and greater than 1.7 pounds of sulfur per
13  million Btu content unless the facility reasonably determines
14  that it is necessary to use additional petroleum coke to
15  deliver additional consumer savings, in which case the
16  facility shall use coal for at least 35% of the total feedstock
17  over the term of any sourcing agreement; and (4) captures and
18  sequesters at least 85% of the total carbon dioxide emissions
19  that the facility would otherwise emit.
20  "Clean coal SNG facility" means a facility that uses a
21  gasification process to produce substitute natural gas, that
22  sequesters at least 90% of the total carbon dioxide emissions
23  that the facility would otherwise emit, that uses at least 90%
24  coal as a feedstock, with all such coal having a high
25  bituminous rank and greater than 1.7 pounds of sulfur per
26  million Btu btu content, and that has a valid and effective

 

 

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1  permit to construct emission sources and air pollution control
2  equipment and approval with respect to the federal regulations
3  for Prevention of Significant Deterioration of Air Quality
4  (PSD) for the plant pursuant to the federal Clean Air Act;
5  provided, however, a clean coal SNG brownfield facility shall
6  not be a clean coal SNG facility.
7  "Clean energy" means energy generation that is 90% or
8  greater free of carbon dioxide emissions.
9  "Commission" means the Illinois Commerce Commission.
10  "Community renewable generation project" means an electric
11  generating facility that:
12  (1) is powered by wind, solar thermal energy,
13  photovoltaic cells or panels, biodiesel, crops and
14  untreated and unadulterated organic waste biomass, and
15  hydropower that does not involve new construction or
16  significant expansion of hydropower dams;
17  (2) is interconnected at the distribution system level
18  of an electric utility as defined in this Section, a
19  municipal utility as defined in this Section that owns or
20  operates electric distribution facilities, a public
21  utility as defined in Section 3-105 of the Public
22  Utilities Act, or an electric cooperative, as defined in
23  Section 3-119 of the Public Utilities Act;
24  (3) credits the value of electricity generated by the
25  facility to the subscribers of the facility; and
26  (4) is limited in nameplate capacity to less than or

 

 

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1  equal to 5,000 kilowatts.
2  "Costs incurred in connection with the development and
3  construction of a facility" means:
4  (1) the cost of acquisition of all real property,
5  fixtures, and improvements in connection therewith and
6  equipment, personal property, and other property, rights,
7  and easements acquired that are deemed necessary for the
8  operation and maintenance of the facility;
9  (2) financing costs with respect to bonds, notes, and
10  other evidences of indebtedness of the Agency;
11  (3) all origination, commitment, utilization,
12  facility, placement, underwriting, syndication, credit
13  enhancement, and rating agency fees;
14  (4) engineering, design, procurement, consulting,
15  legal, accounting, title insurance, survey, appraisal,
16  escrow, trustee, collateral agency, interest rate hedging,
17  interest rate swap, capitalized interest, contingency, as
18  required by lenders, and other financing costs, and other
19  expenses for professional services; and
20  (5) the costs of plans, specifications, site study and
21  investigation, installation, surveys, other Agency costs
22  and estimates of costs, and other expenses necessary or
23  incidental to determining the feasibility of any project,
24  together with such other expenses as may be necessary or
25  incidental to the financing, insuring, acquisition, and
26  construction of a specific project and starting up,

 

 

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1  commissioning, and placing that project in operation.
2  "Delivery services" has the same definition as found in
3  Section 16-102 of the Public Utilities Act.
4  "Delivery year" means the consecutive 12-month period
5  beginning June 1 of a given year and ending May 31 of the
6  following year.
7  "Department" means the Department of Commerce and Economic
8  Opportunity.
9  "Director" means the Director of the Illinois Power
10  Agency.
11  "Demand-response" means measures that decrease peak
12  electricity demand or shift demand from peak to off-peak
13  periods.
14  "Distributed renewable energy generation device" means a
15  device that is:
16  (1) powered by wind, solar thermal energy,
17  photovoltaic cells or panels, biodiesel, crops and
18  untreated and unadulterated organic waste biomass, tree
19  waste, and hydropower that does not involve new
20  construction or significant expansion of hydropower dams,
21  waste heat to power systems, or qualified combined heat
22  and power systems;
23  (2) interconnected at the distribution system level of
24  either an electric utility as defined in this Section, a
25  municipal utility as defined in this Section that owns or
26  operates electric distribution facilities, or a rural

 

 

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1  electric cooperative as defined in Section 3-119 of the
2  Public Utilities Act;
3  (3) located on the customer side of the customer's
4  electric meter and is primarily used to offset that
5  customer's electricity load; and
6  (4) (blank).
7  "Energy efficiency" means measures that reduce the amount
8  of electricity or natural gas consumed in order to achieve a
9  given end use. "Energy efficiency" includes voltage
10  optimization measures that optimize the voltage at points on
11  the electric distribution voltage system and thereby reduce
12  electricity consumption by electric customers' end use
13  devices. "Energy efficiency" also includes measures that
14  reduce the total Btus of electricity, natural gas, and other
15  fuels needed to meet the end use or uses.
16  "Electric utility" has the same definition as found in
17  Section 16-102 of the Public Utilities Act.
18  "Equity investment eligible community" or "eligible
19  community" are synonymous and mean the geographic areas
20  throughout Illinois which would most benefit from equitable
21  investments by the State designed to combat discrimination.
22  Specifically, the eligible communities shall be defined as the
23  following areas:
24  (1) R3 Areas as established pursuant to Section 10-40
25  of the Cannabis Regulation and Tax Act, where residents
26  have historically been excluded from economic

 

 

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1  opportunities, including opportunities in the energy
2  sector; and
3  (2) environmental Environmental justice communities,
4  as defined by the Illinois Power Agency pursuant to the
5  Illinois Power Agency Act, where residents have
6  historically been subject to disproportionate burdens of
7  pollution, including pollution from the energy sector.
8  "Equity eligible persons" or "eligible persons" means
9  persons who would most benefit from equitable investments by
10  the State designed to combat discrimination, specifically:
11  (1) persons who graduate from or are current or former
12  participants in the Clean Jobs Workforce Network Program,
13  the Clean Energy Contractor Incubator Program, the
14  Illinois Climate Works Preapprenticeship Program,
15  Returning Residents Clean Jobs Training Program, or the
16  Clean Energy Primes Contractor Accelerator Program, and
17  the solar training pipeline and multi-cultural jobs
18  program created in paragraphs (a)(1) and (a)(3) of Section
19  16-208.12 16-108.21 of the Public Utilities Act;
20  (2) persons who are graduates of or currently enrolled
21  in the foster care system;
22  (3) persons who were formerly incarcerated;
23  (4) persons whose primary residence is in an equity
24  investment eligible community.
25  "Equity eligible contractor" means a business that is
26  majority-owned by eligible persons, or a nonprofit or

 

 

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1  cooperative that is majority-governed by eligible persons, or
2  is a natural person that is an eligible person offering
3  personal services as an independent contractor.
4  "Facility" means an electric generating unit or a
5  co-generating unit that produces electricity along with
6  related equipment necessary to connect the facility to an
7  electric transmission or distribution system.
8  "General contractor Contractor" means the entity or
9  organization with main responsibility for the building of a
10  construction project and who is the party signing the prime
11  construction contract for the project.
12  "Governmental aggregator" means one or more units of local
13  government that individually or collectively procure
14  electricity to serve residential retail electrical loads
15  located within its or their jurisdiction.
16  "High voltage direct current converter station" means the
17  collection of equipment that converts direct current energy
18  from a high voltage direct current transmission line into
19  alternating current using Voltage Source Conversion technology
20  and that is interconnected with transmission or distribution
21  assets located in Illinois.
22  "High voltage direct current renewable energy credit"
23  means a renewable energy credit associated with a renewable
24  energy resource where the renewable energy resource has
25  entered into a contract to transmit the energy associated with
26  such renewable energy credit over high voltage direct current

 

 

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1  transmission facilities.
2  "High voltage direct current transmission facilities"
3  means the collection of installed equipment that converts
4  alternating current energy in one location to direct current
5  and transmits that direct current energy to a high voltage
6  direct current converter station using Voltage Source
7  Conversion technology. "High voltage direct current
8  transmission facilities" includes the high voltage direct
9  current converter station itself and associated high voltage
10  direct current transmission lines. Notwithstanding the
11  preceding, after September 15, 2021 (the effective date of
12  Public Act 102-662) this amendatory Act of the 102nd General
13  Assembly, an otherwise qualifying collection of equipment does
14  not qualify as high voltage direct current transmission
15  facilities unless its developer entered into a project labor
16  agreement, is capable of transmitting electricity at 525kv
17  with an Illinois converter station located and interconnected
18  in the region of the PJM Interconnection, LLC, and the system
19  does not operate as a public utility, as that term is defined
20  in Section 3-105 of the Public Utilities Act.
21  "Index price" means the real-time energy settlement price
22  at the applicable Illinois trading hub, such as PJM-NIHUB or
23  MISO-IL, for a given settlement period.
24  "Indexed renewable energy credit" means a tradable credit
25  that represents the environmental attributes of one megawatt
26  hour of energy produced from a renewable energy resource, the

 

 

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1  price of which shall be calculated by subtracting the strike
2  price offered by a new utility-scale wind project or a new
3  utility-scale photovoltaic project from the index price in a
4  given settlement period.
5  "Indexed renewable energy credit counterparty" has the
6  same meaning as "public utility" as defined in Section 3-105
7  of the Public Utilities Act.
8  "Local government" means a unit of local government as
9  defined in Section 1 of Article VII of the Illinois
10  Constitution.
11  "Municipality" means a city, village, or incorporated
12  town.
13  "Municipal utility" means a public utility owned and
14  operated by any subdivision or municipal corporation of this
15  State.
16  "Nameplate capacity" means the aggregate inverter
17  nameplate capacity in kilowatts AC.
18  "Person" means any natural person, firm, partnership,
19  corporation, either domestic or foreign, company, association,
20  limited liability company, joint stock company, or association
21  and includes any trustee, receiver, assignee, or personal
22  representative thereof.
23  "Project" means the planning, bidding, and construction of
24  a facility.
25  "Project labor agreement" means a pre-hire collective
26  bargaining agreement that covers all terms and conditions of

 

 

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1  employment on a specific construction project and must include
2  the following:
3  (1) provisions establishing the minimum hourly wage
4  for each class of labor organization employee;
5  (2) provisions establishing the benefits and other
6  compensation for each class of labor organization
7  employee;
8  (3) provisions establishing that no strike or disputes
9  will be engaged in by the labor organization employees;
10  (4) provisions establishing that no lockout or
11  disputes will be engaged in by the general contractor
12  building the project; and
13  (5) provisions for minorities and women, as defined
14  under the Business Enterprise for Minorities, Women, and
15  Persons with Disabilities Act, setting forth goals for
16  apprenticeship hours to be performed by minorities and
17  women and setting forth goals for total hours to be
18  performed by underrepresented minorities and women.
19  A labor organization and the general contractor building
20  the project shall have the authority to include other terms
21  and conditions as they deem necessary.
22  "Public utility" has the same definition as found in
23  Section 3-105 of the Public Utilities Act.
24  "Qualified combined heat and power systems" means systems
25  that, either simultaneously or sequentially, produce
26  electricity and useful thermal energy from a single fuel

 

 

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1  source. Such systems are eligible for "renewable energy
2  credits" in an amount equal to its total energy output where a
3  renewable fuel is consumed or in an amount equal to the net
4  reduction in nonrenewable fuel consumed on a total energy
5  output basis.
6  "Real property" means any interest in land together with
7  all structures, fixtures, and improvements thereon, including
8  lands under water and riparian rights, any easements,
9  covenants, licenses, leases, rights-of-way, uses, and other
10  interests, together with any liens, judgments, mortgages, or
11  other claims or security interests related to real property.
12  "Renewable energy credit" means a tradable credit that
13  represents the environmental attributes of one megawatt hour
14  of energy produced from a renewable energy resource.
15  "Renewable energy resources" includes energy and its
16  associated renewable energy credit or renewable energy credits
17  from wind, solar thermal energy, photovoltaic cells and
18  panels, biodiesel, anaerobic digestion, crops and untreated
19  and unadulterated organic waste biomass, and hydropower that
20  does not involve new construction or significant expansion of
21  hydropower dams, waste heat to power systems, or qualified
22  combined heat and power systems. For purposes of this Act,
23  landfill gas produced in the State is considered a renewable
24  energy resource. "Renewable energy resources" does not include
25  the incineration or burning of tires, garbage, general
26  household, institutional, and commercial waste, industrial

 

 

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1  lunchroom or office waste, landscape waste, railroad
2  crossties, utility poles, or construction or demolition
3  debris, other than untreated and unadulterated waste wood.
4  "Renewable energy resources" also includes high voltage direct
5  current renewable energy credits and the associated energy
6  converted to alternating current by a high voltage direct
7  current converter station to the extent that: (1) the
8  generator of such renewable energy resource contracted with a
9  third party to transmit the energy over the high voltage
10  direct current transmission facilities, and (2) the
11  third-party contracting for delivery of renewable energy
12  resources over the high voltage direct current transmission
13  facilities have ownership rights over the unretired associated
14  high voltage direct current renewable energy credit.
15  "Retail customer" has the same definition as found in
16  Section 16-102 of the Public Utilities Act.
17  "Revenue bond" means any bond, note, or other evidence of
18  indebtedness issued by the Authority, the principal and
19  interest of which is payable solely from revenues or income
20  derived from any project or activity of the Agency.
21  "Sequester" means permanent storage of carbon dioxide by
22  injecting it into a saline aquifer, a depleted gas reservoir,
23  or an oil reservoir, directly or through an enhanced oil
24  recovery process that may involve intermediate storage,
25  regardless of whether these activities are conducted by a
26  clean coal facility, a clean coal SNG facility, a clean coal

 

 

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1  SNG brownfield facility, or a party with which a clean coal
2  facility, clean coal SNG facility, or clean coal SNG
3  brownfield facility has contracted for such purposes.
4  "Service area" has the same definition as found in Section
5  16-102 of the Public Utilities Act.
6  "Settlement period" means the period of time utilized by
7  MISO and PJM and their successor organizations as the basis
8  for settlement calculations in the real-time energy market.
9  "Sourcing agreement" means (i) in the case of an electric
10  utility, an agreement between the owner of a clean coal
11  facility and such electric utility, which agreement shall have
12  terms and conditions meeting the requirements of paragraph (3)
13  of subsection (d) of Section 1-75, (ii) in the case of an
14  alternative retail electric supplier, an agreement between the
15  owner of a clean coal facility and such alternative retail
16  electric supplier, which agreement shall have terms and
17  conditions meeting the requirements of Section 16-115(d)(5) of
18  the Public Utilities Act, and (iii) in case of a gas utility,
19  an agreement between the owner of a clean coal SNG brownfield
20  facility and the gas utility, which agreement shall have the
21  terms and conditions meeting the requirements of subsection
22  (h-1) of Section 9-220 of the Public Utilities Act.
23  "Strike price" means a contract price for energy and
24  renewable energy credits from a new utility-scale wind project
25  or a new utility-scale photovoltaic project.
26  "Subscriber" means a person who (i) takes delivery service

 

 

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1  from an electric utility, and (ii) has a subscription of no
2  less than 200 watts to a community renewable generation
3  project that is located in the electric utility's service
4  area. No subscriber's subscriptions may total more than 40% of
5  the nameplate capacity of an individual community renewable
6  generation project. Entities that are affiliated by virtue of
7  a common parent shall not represent multiple subscriptions
8  that total more than 40% of the nameplate capacity of an
9  individual community renewable generation project.
10  "Subscription" means an interest in a community renewable
11  generation project expressed in kilowatts, which is sized
12  primarily to offset part or all of the subscriber's
13  electricity usage.
14  "Substitute natural gas" or "SNG" means a gas manufactured
15  by gasification of hydrocarbon feedstock, which is
16  substantially interchangeable in use and distribution with
17  conventional natural gas.
18  "Total resource cost test" or "TRC test" means a standard
19  that is met if, for an investment in energy efficiency or
20  demand-response measures, the benefit-cost ratio is greater
21  than one. The benefit-cost ratio is the ratio of the net
22  present value of the total benefits of the program to the net
23  present value of the total costs as calculated over the
24  lifetime of the measures. A total resource cost test compares
25  the sum of avoided electric utility costs, representing the
26  benefits that accrue to the system and the participant in the

 

 

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1  delivery of those efficiency measures and including avoided
2  costs associated with reduced use of natural gas or other
3  fuels, avoided costs associated with reduced water
4  consumption, and avoided costs associated with reduced
5  operation and maintenance costs, as well as other quantifiable
6  societal benefits, to the sum of all incremental costs of
7  end-use measures that are implemented due to the program
8  (including both utility and participant contributions), plus
9  costs to administer, deliver, and evaluate each demand-side
10  program, to quantify the net savings obtained by substituting
11  the demand-side program for supply resources. In calculating
12  avoided costs of power and energy that an electric utility
13  would otherwise have had to acquire, reasonable estimates
14  shall be included of financial costs likely to be imposed by
15  future regulations and legislation on emissions of greenhouse
16  gases. In discounting future societal costs and benefits for
17  the purpose of calculating net present values, a societal
18  discount rate based on actual, long-term Treasury bond yields
19  should be used. Notwithstanding anything to the contrary, the
20  TRC test shall not include or take into account a calculation
21  of market price suppression effects or demand reduction
22  induced price effects.
23  "Utility-scale solar project" means an electric generating
24  facility that:
25  (1) generates electricity using photovoltaic cells;
26  and

 

 

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1  (2) has a nameplate capacity that is greater than
2  5,000 kilowatts.
3  "Utility-scale wind project" means an electric generating
4  facility that:
5  (1) generates electricity using wind; and
6  (2) has a nameplate capacity that is greater than
7  5,000 kilowatts.
8  "Waste Heat to Power Systems" means systems that capture
9  and generate electricity from energy that would otherwise be
10  lost to the atmosphere without the use of additional fuel.
11  "Zero emission credit" means a tradable credit that
12  represents the environmental attributes of one megawatt hour
13  of energy produced from a zero emission facility.
14  "Zero emission facility" means a facility that: (1) is
15  fueled by nuclear power; and (2) is interconnected with PJM
16  Interconnection, LLC or the Midcontinent Independent System
17  Operator, Inc., or their successors.
18  (Source: P.A. 102-662, eff. 9-15-21; revised 6-2-22.)
19  (20 ILCS 3855/1-20)
20  Sec. 1-20. General powers and duties of the Agency.
21  (a) The Agency is authorized to do each of the following:
22  (1) Develop electricity procurement plans to ensure
23  adequate, reliable, affordable, efficient, and
24  environmentally sustainable electric service at the lowest
25  total cost over time, taking into account any benefits of

 

 

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1  price stability, for electric utilities that on December
2  31, 2005 provided electric service to at least 100,000
3  customers in Illinois and for small multi-jurisdictional
4  electric utilities that (A) on December 31, 2005 served
5  less than 100,000 customers in Illinois and (B) request a
6  procurement plan for their Illinois jurisdictional load.
7  Except as provided in paragraph (1.5) of this subsection
8  (a), the electricity procurement plans shall be updated on
9  an annual basis and shall include electricity generated
10  from renewable resources sufficient to achieve the
11  standards specified in this Act. Beginning with the
12  delivery year commencing June 1, 2017, develop procurement
13  plans to include zero emission credits generated from zero
14  emission facilities sufficient to achieve the standards
15  specified in this Act. Beginning with the delivery year
16  commencing on June 1, 2022, the Agency is authorized to
17  develop carbon mitigation credit procurement plans to
18  include carbon mitigation credits generated from
19  carbon-free energy resources sufficient to achieve the
20  standards specified in this Act.
21  (1.5) Develop a long-term renewable resources
22  procurement plan in accordance with subsection (c) of
23  Section 1-75 of this Act for renewable energy credits in
24  amounts sufficient to achieve the standards specified in
25  this Act for delivery years commencing June 1, 2017 and
26  for the programs and renewable energy credits specified in

 

 

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1  Section 1-56 of this Act. Electricity procurement plans
2  for delivery years commencing after May 31, 2017, shall
3  not include procurement of renewable energy resources.
4  (2) Conduct competitive procurement processes to
5  procure the supply resources identified in the electricity
6  procurement plan, pursuant to Section 16-111.5 of the
7  Public Utilities Act, and, for the delivery year
8  commencing June 1, 2017, conduct procurement processes to
9  procure zero emission credits from zero emission
10  facilities, under subsection (d-5) of Section 1-75 of this
11  Act. For the delivery year commencing June 1, 2022, the
12  Agency is authorized to conduct procurement processes to
13  procure carbon mitigation credits from carbon-free energy
14  resources, under subsection (d-10) of Section 1-75 of this
15  Act.
16  (2.5) Beginning with the procurement for the 2017
17  delivery year, conduct competitive procurement processes
18  and implement programs to procure renewable energy credits
19  identified in the long-term renewable resources
20  procurement plan developed and approved under subsection
21  (c) of Section 1-75 of this Act and Section 16-111.5 of the
22  Public Utilities Act.
23  (2.10) Oversee the procurement by electric utilities
24  that served more than 300,000 customers in this State as
25  of January 1, 2019 of renewable energy credits from new
26  renewable energy facilities to be installed, along with

 

 

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1  energy storage facilities, at or adjacent to the sites of
2  electric generating facilities that burned coal as their
3  primary fuel source as of January 1, 2016 in accordance
4  with subsection (c-5) of Section 1-75 of this Act.
5  (2.15) Oversee the procurement by electric utilities
6  of renewable energy credits from new, newly modernized, or
7  retooled hydropower facilities in accordance with Section
8  1-75 of this Act.
9  (3) Develop electric generation and co-generation
10  facilities that use indigenous coal or renewable
11  resources, or both, financed with bonds issued by the
12  Illinois Finance Authority.
13  (4) Supply electricity from the Agency's facilities at
14  cost to one or more of the following: municipal electric
15  systems, governmental aggregators, or rural electric
16  cooperatives in Illinois.
17  (b) Except as otherwise limited by this Act, the Agency
18  has all of the powers necessary or convenient to carry out the
19  purposes and provisions of this Act, including without
20  limitation, each of the following:
21  (1) To have a corporate seal, and to alter that seal at
22  pleasure, and to use it by causing it or a facsimile to be
23  affixed or impressed or reproduced in any other manner.
24  (2) To use the services of the Illinois Finance
25  Authority necessary to carry out the Agency's purposes.
26  (3) To negotiate and enter into loan agreements and

 

 

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1  other agreements with the Illinois Finance Authority.
2  (4) To obtain and employ personnel and hire
3  consultants that are necessary to fulfill the Agency's
4  purposes, and to make expenditures for that purpose within
5  the appropriations for that purpose.
6  (5) To purchase, receive, take by grant, gift, devise,
7  bequest, or otherwise, lease, or otherwise acquire, own,
8  hold, improve, employ, use, and otherwise deal in and
9  with, real or personal property whether tangible or
10  intangible, or any interest therein, within the State.
11  (6) To acquire real or personal property, whether
12  tangible or intangible, including without limitation
13  property rights, interests in property, franchises,
14  obligations, contracts, and debt and equity securities,
15  and to do so by the exercise of the power of eminent domain
16  in accordance with Section 1-21; except that any real
17  property acquired by the exercise of the power of eminent
18  domain must be located within the State.
19  (7) To sell, convey, lease, exchange, transfer,
20  abandon, or otherwise dispose of, or mortgage, pledge, or
21  create a security interest in, any of its assets,
22  properties, or any interest therein, wherever situated.
23  (8) To purchase, take, receive, subscribe for, or
24  otherwise acquire, hold, make a tender offer for, vote,
25  employ, sell, lend, lease, exchange, transfer, or
26  otherwise dispose of, mortgage, pledge, or grant a

 

 

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1  security interest in, use, and otherwise deal in and with,
2  bonds and other obligations, shares, or other securities
3  (or interests therein) issued by others, whether engaged
4  in a similar or different business or activity.
5  (9) To make and execute agreements, contracts, and
6  other instruments necessary or convenient in the exercise
7  of the powers and functions of the Agency under this Act,
8  including contracts with any person, including personal
9  service contracts, or with any local government, State
10  agency, or other entity; and all State agencies and all
11  local governments are authorized to enter into and do all
12  things necessary to perform any such agreement, contract,
13  or other instrument with the Agency. No such agreement,
14  contract, or other instrument shall exceed 40 years.
15  (10) To lend money, invest and reinvest its funds in
16  accordance with the Public Funds Investment Act, and take
17  and hold real and personal property as security for the
18  payment of funds loaned or invested.
19  (11) To borrow money at such rate or rates of interest
20  as the Agency may determine, issue its notes, bonds, or
21  other obligations to evidence that indebtedness, and
22  secure any of its obligations by mortgage or pledge of its
23  real or personal property, machinery, equipment,
24  structures, fixtures, inventories, revenues, grants, and
25  other funds as provided or any interest therein, wherever
26  situated.

 

 

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1  (12) To enter into agreements with the Illinois
2  Finance Authority to issue bonds whether or not the income
3  therefrom is exempt from federal taxation.
4  (13) To procure insurance against any loss in
5  connection with its properties or operations in such
6  amount or amounts and from such insurers, including the
7  federal government, as it may deem necessary or desirable,
8  and to pay any premiums therefor.
9  (14) To negotiate and enter into agreements with
10  trustees or receivers appointed by United States
11  bankruptcy courts or federal district courts or in other
12  proceedings involving adjustment of debts and authorize
13  proceedings involving adjustment of debts and authorize
14  legal counsel for the Agency to appear in any such
15  proceedings.
16  (15) To file a petition under Chapter 9 of Title 11 of
17  the United States Bankruptcy Code or take other similar
18  action for the adjustment of its debts.
19  (16) To enter into management agreements for the
20  operation of any of the property or facilities owned by
21  the Agency.
22  (17) To enter into an agreement to transfer and to
23  transfer any land, facilities, fixtures, or equipment of
24  the Agency to one or more municipal electric systems,
25  governmental aggregators, or rural electric agencies or
26  cooperatives, for such consideration and upon such terms

 

 

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1  as the Agency may determine to be in the best interest of
2  the residents of Illinois.
3  (18) To enter upon any lands and within any building
4  whenever in its judgment it may be necessary for the
5  purpose of making surveys and examinations to accomplish
6  any purpose authorized by this Act.
7  (19) To maintain an office or offices at such place or
8  places in the State as it may determine.
9  (20) To request information, and to make any inquiry,
10  investigation, survey, or study that the Agency may deem
11  necessary to enable it effectively to carry out the
12  provisions of this Act.
13  (21) To accept and expend appropriations.
14  (22) To engage in any activity or operation that is
15  incidental to and in furtherance of efficient operation to
16  accomplish the Agency's purposes, including hiring
17  employees that the Director deems essential for the
18  operations of the Agency.
19  (23) To adopt, revise, amend, and repeal rules with
20  respect to its operations, properties, and facilities as
21  may be necessary or convenient to carry out the purposes
22  of this Act, subject to the provisions of the Illinois
23  Administrative Procedure Act and Sections 1-22 and 1-35 of
24  this Act.
25  (24) To establish and collect charges and fees as
26  described in this Act.

 

 

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1  (25) To conduct competitive gasification feedstock
2  procurement processes to procure the feedstocks for the
3  clean coal SNG brownfield facility in accordance with the
4  requirements of Section 1-78 of this Act.
5  (26) To review, revise, and approve sourcing
6  agreements and mediate and resolve disputes between gas
7  utilities and the clean coal SNG brownfield facility
8  pursuant to subsection (h-1) of Section 9-220 of the
9  Public Utilities Act.
10  (27) To request, review and accept proposals, execute
11  contracts, purchase renewable energy credits and otherwise
12  dedicate funds from the Illinois Power Agency Renewable
13  Energy Resources Fund to create and carry out the
14  objectives of the Illinois Solar for All Program in
15  accordance with Section 1-56 of this Act.
16  (28) To ensure Illinois residents and business benefit
17  from programs administered by the Agency and are properly
18  protected from any deceptive or misleading marketing
19  practices by participants in the Agency's programs and
20  procurements.
21  (c) In conducting the procurement of electricity or other
22  products, beginning January 1, 2022, the Agency shall not
23  procure any products or services from persons or organizations
24  that are in violation of the Displaced Energy Workers Bill of
25  Rights, as provided under the Energy Community Reinvestment
26  Act at the time of the procurement event or fail to comply the

 

 

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1  labor standards established in subparagraph (Q) of paragraph
2  (1) of subsection (c) of Section 1-75.
3  (Source: P.A. 102-662, eff. 9-15-21.)
4  (20 ILCS 3855/1-75)
5  Sec. 1-75. Planning and Procurement Bureau. The Planning
6  and Procurement Bureau has the following duties and
7  responsibilities:
8  (a) The Planning and Procurement Bureau shall each year,
9  beginning in 2008, develop procurement plans and conduct
10  competitive procurement processes in accordance with the
11  requirements of Section 16-111.5 of the Public Utilities Act
12  for the eligible retail customers of electric utilities that
13  on December 31, 2005 provided electric service to at least
14  100,000 customers in Illinois. Beginning with the delivery
15  year commencing on June 1, 2017, the Planning and Procurement
16  Bureau shall develop plans and processes for the procurement
17  of zero emission credits from zero emission facilities in
18  accordance with the requirements of subsection (d-5) of this
19  Section. Beginning on the effective date of this amendatory
20  Act of the 102nd General Assembly, the Planning and
21  Procurement Bureau shall develop plans and processes for the
22  procurement of carbon mitigation credits from carbon-free
23  energy resources in accordance with the requirements of
24  subsection (d-10) of this Section. The Planning and
25  Procurement Bureau shall also develop procurement plans and

 

 

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1  conduct competitive procurement processes in accordance with
2  the requirements of Section 16-111.5 of the Public Utilities
3  Act for the eligible retail customers of small
4  multi-jurisdictional electric utilities that (i) on December
5  31, 2005 served less than 100,000 customers in Illinois and
6  (ii) request a procurement plan for their Illinois
7  jurisdictional load. This Section shall not apply to a small
8  multi-jurisdictional utility until such time as a small
9  multi-jurisdictional utility requests the Agency to prepare a
10  procurement plan for their Illinois jurisdictional load. For
11  the purposes of this Section, the term "eligible retail
12  customers" has the same definition as found in Section
13  16-111.5(a) of the Public Utilities Act.
14  Beginning with the plan or plans to be implemented in the
15  2017 delivery year, the Agency shall no longer include the
16  procurement of renewable energy resources in the annual
17  procurement plans required by this subsection (a), except as
18  provided in subsection (q) of Section 16-111.5 of the Public
19  Utilities Act, and shall instead develop a long-term renewable
20  resources procurement plan in accordance with subsection (c)
21  of this Section and Section 16-111.5 of the Public Utilities
22  Act.
23  In accordance with subsection (c-5) of this Section, the
24  Planning and Procurement Bureau shall oversee the procurement
25  by electric utilities that served more than 300,000 retail
26  customers in this State as of January 1, 2019 of renewable

 

 

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1  energy credits from new utility-scale solar projects to be
2  installed, along with energy storage facilities, at or
3  adjacent to the sites of electric generating facilities that,
4  as of January 1, 2016, burned coal as their primary fuel
5  source.
6  (1) The Agency shall each year, beginning in 2008, as
7  needed, issue a request for qualifications for experts or
8  expert consulting firms to develop the procurement plans
9  in accordance with Section 16-111.5 of the Public
10  Utilities Act. In order to qualify an expert or expert
11  consulting firm must have:
12  (A) direct previous experience assembling
13  large-scale power supply plans or portfolios for
14  end-use customers;
15  (B) an advanced degree in economics, mathematics,
16  engineering, risk management, or a related area of
17  study;
18  (C) 10 years of experience in the electricity
19  sector, including managing supply risk;
20  (D) expertise in wholesale electricity market
21  rules, including those established by the Federal
22  Energy Regulatory Commission and regional transmission
23  organizations;
24  (E) expertise in credit protocols and familiarity
25  with contract protocols;
26  (F) adequate resources to perform and fulfill the

 

 

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1  required functions and responsibilities; and
2  (G) the absence of a conflict of interest and
3  inappropriate bias for or against potential bidders or
4  the affected electric utilities.
5  (2) The Agency shall each year, as needed, issue a
6  request for qualifications for a procurement administrator
7  to conduct the competitive procurement processes in
8  accordance with Section 16-111.5 of the Public Utilities
9  Act. In order to qualify an expert or expert consulting
10  firm must have:
11  (A) direct previous experience administering a
12  large-scale competitive procurement process;
13  (B) an advanced degree in economics, mathematics,
14  engineering, or a related area of study;
15  (C) 10 years of experience in the electricity
16  sector, including risk management experience;
17  (D) expertise in wholesale electricity market
18  rules, including those established by the Federal
19  Energy Regulatory Commission and regional transmission
20  organizations;
21  (E) expertise in credit and contract protocols;
22  (F) adequate resources to perform and fulfill the
23  required functions and responsibilities; and
24  (G) the absence of a conflict of interest and
25  inappropriate bias for or against potential bidders or
26  the affected electric utilities.

 

 

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1  (3) The Agency shall provide affected utilities and
2  other interested parties with the lists of qualified
3  experts or expert consulting firms identified through the
4  request for qualifications processes that are under
5  consideration to develop the procurement plans and to
6  serve as the procurement administrator. The Agency shall
7  also provide each qualified expert's or expert consulting
8  firm's response to the request for qualifications. All
9  information provided under this subparagraph shall also be
10  provided to the Commission. The Agency may provide by rule
11  for fees associated with supplying the information to
12  utilities and other interested parties. These parties
13  shall, within 5 business days, notify the Agency in
14  writing if they object to any experts or expert consulting
15  firms on the lists. Objections shall be based on:
16  (A) failure to satisfy qualification criteria;
17  (B) identification of a conflict of interest; or
18  (C) evidence of inappropriate bias for or against
19  potential bidders or the affected utilities.
20  The Agency shall remove experts or expert consulting
21  firms from the lists within 10 days if there is a
22  reasonable basis for an objection and provide the updated
23  lists to the affected utilities and other interested
24  parties. If the Agency fails to remove an expert or expert
25  consulting firm from a list, an objecting party may seek
26  review by the Commission within 5 days thereafter by

 

 

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1  filing a petition, and the Commission shall render a
2  ruling on the petition within 10 days. There is no right of
3  appeal of the Commission's ruling.
4  (4) The Agency shall issue requests for proposals to
5  the qualified experts or expert consulting firms to
6  develop a procurement plan for the affected utilities and
7  to serve as procurement administrator.
8  (5) The Agency shall select an expert or expert
9  consulting firm to develop procurement plans based on the
10  proposals submitted and shall award contracts of up to 5
11  years to those selected.
12  (6) The Agency shall select an expert or expert
13  consulting firm, with approval of the Commission, to serve
14  as procurement administrator based on the proposals
15  submitted. If the Commission rejects, within 5 days, the
16  Agency's selection, the Agency shall submit another
17  recommendation within 3 days based on the proposals
18  submitted. The Agency shall award a 5-year contract to the
19  expert or expert consulting firm so selected with
20  Commission approval.
21  (b) The experts or expert consulting firms retained by the
22  Agency shall, as appropriate, prepare procurement plans, and
23  conduct a competitive procurement process as prescribed in
24  Section 16-111.5 of the Public Utilities Act, to ensure
25  adequate, reliable, affordable, efficient, and environmentally
26  sustainable electric service at the lowest total cost over

 

 

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1  time, taking into account any benefits of price stability, for
2  eligible retail customers of electric utilities that on
3  December 31, 2005 provided electric service to at least
4  100,000 customers in the State of Illinois, and for eligible
5  Illinois retail customers of small multi-jurisdictional
6  electric utilities that (i) on December 31, 2005 served less
7  than 100,000 customers in Illinois and (ii) request a
8  procurement plan for their Illinois jurisdictional load.
9  (c) Renewable portfolio standard.
10  (1)(A) The Agency shall develop a long-term renewable
11  resources procurement plan that shall include procurement
12  programs and competitive procurement events necessary to
13  meet the goals set forth in this subsection (c). The
14  initial long-term renewable resources procurement plan
15  shall be released for comment no later than 160 days after
16  June 1, 2017 (the effective date of Public Act 99-906).
17  The Agency shall review, and may revise on an expedited
18  basis, the long-term renewable resources procurement plan
19  at least every 2 years, which shall be conducted in
20  conjunction with the procurement plan under Section
21  16-111.5 of the Public Utilities Act to the extent
22  practicable to minimize administrative expense. No later
23  than 120 days after the effective date of this amendatory
24  Act of the 103rd 102nd General Assembly, the Agency shall
25  release for comment a revision to the long-term renewable
26  resources procurement plan, updating elements of the most

 

 

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1  recently approved plan as needed to comply with this
2  amendatory Act of the 103rd 102nd General Assembly, and
3  any long-term renewable resources procurement plan update
4  published by the Agency but not yet approved by the
5  Illinois Commerce Commission shall be withdrawn. The
6  long-term renewable resources procurement plans shall be
7  subject to review and approval by the Commission under
8  Section 16-111.5 of the Public Utilities Act.
9  (B) Subject to subparagraph (F) of this paragraph (1),
10  the long-term renewable resources procurement plan shall
11  attempt to meet the goals for procurement of renewable
12  energy credits at levels of at least the following overall
13  percentages: 13% by the 2017 delivery year; increasing by
14  at least 1.5% each delivery year thereafter to at least
15  25% by the 2025 delivery year; increasing by at least 3%
16  each delivery year thereafter to at least 40% by the 2030
17  delivery year, and continuing at no less than 40% for each
18  delivery year thereafter. The Agency shall attempt to
19  procure 50% by delivery year 2040. The Agency shall
20  determine the annual increase between delivery year 2030
21  and delivery year 2040, if any, taking into account energy
22  demand, other energy resources, and other public policy
23  goals. In the event of a conflict between these goals and
24  the new wind, and new photovoltaic, and hydropower
25  procurement requirements described in items (i) through
26  (iii) of subparagraph (C) of this paragraph (1), the

 

 

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1  long-term plan shall prioritize compliance with the new
2  wind, and new photovoltaic, and hydropower procurement
3  requirements described in items (i) through (iii) of
4  subparagraph (C) of this paragraph (1) over the annual
5  percentage targets described in this subparagraph (B). The
6  Agency shall not comply with the annual percentage targets
7  described in this subparagraph (B) by procuring renewable
8  energy credits that are unlikely to lead to the
9  development of new renewable resources or modernized or
10  retooled hydropower resources.
11  For the delivery year beginning June 1, 2017, the
12  procurement plan shall attempt to include, subject to the
13  prioritization outlined in this subparagraph (B),
14  cost-effective renewable energy resources equal to at
15  least 13% of each utility's load for eligible retail
16  customers and 13% of the applicable portion of each
17  utility's load for retail customers who are not eligible
18  retail customers, which applicable portion shall equal 50%
19  of the utility's load for retail customers who are not
20  eligible retail customers on February 28, 2017.
21  For the delivery year beginning June 1, 2018, the
22  procurement plan shall attempt to include, subject to the
23  prioritization outlined in this subparagraph (B),
24  cost-effective renewable energy resources equal to at
25  least 14.5% of each utility's load for eligible retail
26  customers and 14.5% of the applicable portion of each

 

 

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1  utility's load for retail customers who are not eligible
2  retail customers, which applicable portion shall equal 75%
3  of the utility's load for retail customers who are not
4  eligible retail customers on February 28, 2017.
5  For the delivery year beginning June 1, 2019, and for
6  each year thereafter, the procurement plans shall attempt
7  to include, subject to the prioritization outlined in this
8  subparagraph (B), cost-effective renewable energy
9  resources equal to a minimum percentage of each utility's
10  load for all retail customers as follows: 16% by June 1,
11  2019; increasing by 1.5% each year thereafter to 25% by
12  June 1, 2025; and 25% by June 1, 2026; increasing by at
13  least 3% each delivery year thereafter to at least 40% by
14  the 2030 delivery year, and continuing at no less than 40%
15  for each delivery year thereafter. The Agency shall
16  attempt to procure 50% by delivery year 2040. The Agency
17  shall determine the annual increase between delivery year
18  2030 and delivery year 2040, if any, taking into account
19  energy demand, other energy resources, and other public
20  policy goals.
21  For each delivery year, the Agency shall first
22  recognize each utility's obligations for that delivery
23  year under existing contracts. Any renewable energy
24  credits under existing contracts, including renewable
25  energy credits as part of renewable energy resources,
26  shall be used to meet the goals set forth in this

 

 

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1  subsection (c) for the delivery year.
2  (C) The long-term renewable resources procurement plan
3  described in subparagraph (A) of this paragraph (1) shall
4  include the procurement of renewable energy credits from
5  new projects pursuant to in amounts equal to at least the
6  following terms:
7  (i) At least 10,000,000 renewable energy credits
8  delivered annually by the end of the 2021 delivery
9  year, and increasing ratably to reach 45,000,000
10  renewable energy credits delivered annually from new
11  wind and solar projects by the end of delivery year
12  2030 such that the goals in subparagraph (B) of this
13  paragraph (1) are met entirely by procurements of
14  renewable energy credits from new wind and
15  photovoltaic projects. Of that amount, to the extent
16  possible, the Agency shall procure 45% from wind
17  projects and 55% from photovoltaic projects. Of the
18  amount to be procured from photovoltaic projects, the
19  Agency shall procure: at least 50% from solar
20  photovoltaic projects using the program outlined in
21  subparagraph (K) of this paragraph (1) from
22  distributed renewable energy generation devices or
23  community renewable generation projects; at least 47%
24  from utility-scale solar projects; at least 3% from
25  brownfield site photovoltaic projects that are not
26  community renewable generation projects. The Agency

 

 

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1  shall procure additional renewable energy credits from
2  new, newly modernized, or retooled hydropower
3  facilities.
4  In developing the long-term renewable resources
5  procurement plan, the Agency shall consider other
6  approaches, in addition to competitive procurements,
7  that can be used to procure renewable energy credits
8  from brownfield site photovoltaic projects and thereby
9  help return blighted or contaminated land to
10  productive use while enhancing public health and the
11  well-being of Illinois residents, including those in
12  environmental justice communities, as defined using
13  existing methodologies and findings used by the Agency
14  and its Administrator in its Illinois Solar for All
15  Program. The Agency shall also consider other
16  approaches, in addition to competitive procurements,
17  to procure renewable energy credits from new and
18  existing hydropower facilities to support the
19  development and maintenance of these facilities.
20  (ii) In any given delivery year, if forecasted
21  expenses are less than the maximum budget available
22  under subparagraph (E) of this paragraph (1), the
23  Agency shall continue to procure new renewable energy
24  credits until that budget is exhausted in the manner
25  outlined in item (i) of this subparagraph (C).
26  (iii) For purposes of this Section:

 

 

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1  "New wind projects" means wind renewable energy
2  facilities that are energized after June 1, 2017 for
3  the delivery year commencing June 1, 2017.
4  "New photovoltaic projects" means photovoltaic
5  renewable energy facilities that are energized after
6  June 1, 2017. Photovoltaic projects developed under
7  Section 1-56 of this Act shall not apply towards the
8  new photovoltaic project requirements in this
9  subparagraph (C).
10  For purposes of calculating whether the Agency has
11  procured enough new wind and solar renewable energy
12  credits required by this subparagraph (C), renewable
13  energy facilities that have a multi-year renewable
14  energy credit delivery contract with the utility
15  through at least delivery year 2030 shall be
16  considered new, however no renewable energy credits
17  from contracts entered into before June 1, 2021 shall
18  be used to calculate whether the Agency has procured
19  the correct proportion of new wind and new solar
20  contracts described in this subparagraph (C) for
21  delivery year 2021 and thereafter.
22  (D) Renewable energy credits shall be cost effective.
23  For purposes of this subsection (c), "cost effective"
24  means that the costs of procuring renewable energy
25  resources do not cause the limit stated in subparagraph
26  (E) of this paragraph (1) to be exceeded and, for

 

 

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1  renewable energy credits procured through a competitive
2  procurement event, do not exceed benchmarks based on
3  market prices for like products in the region. For
4  purposes of this subsection (c), "like products" means
5  contracts for renewable energy credits from the same or
6  substantially similar technology, same or substantially
7  similar vintage (new or existing), the same or
8  substantially similar quantity, and the same or
9  substantially similar contract length and structure.
10  Benchmarks shall reflect development, financing, or
11  related costs resulting from requirements imposed through
12  other provisions of State law, including, but not limited
13  to, requirements in subparagraphs (P) and (Q) of this
14  paragraph (1) and the Renewable Energy Facilities
15  Agricultural Impact Mitigation Act. Confidential
16  benchmarks shall be developed by the procurement
17  administrator, in consultation with the Commission staff,
18  Agency staff, and the procurement monitor and shall be
19  subject to Commission review and approval. If price
20  benchmarks for like products in the region are not
21  available, the procurement administrator shall establish
22  price benchmarks based on publicly available data on
23  regional technology costs and expected current and future
24  regional energy prices. The benchmarks in this Section
25  shall not be used to curtail or otherwise reduce
26  contractual obligations entered into by or through the

 

 

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1  Agency prior to June 1, 2017 (the effective date of Public
2  Act 99-906).
3  (E) For purposes of this subsection (c), the required
4  procurement of cost-effective renewable energy resources
5  for a particular year commencing prior to June 1, 2017
6  shall be measured as a percentage of the actual amount of
7  electricity (megawatt-hours) supplied by the electric
8  utility to eligible retail customers in the delivery year
9  ending immediately prior to the procurement, and, for
10  delivery years commencing on and after June 1, 2017, the
11  required procurement of cost-effective renewable energy
12  resources for a particular year shall be measured as a
13  percentage of the actual amount of electricity
14  (megawatt-hours) delivered by the electric utility in the
15  delivery year ending immediately prior to the procurement,
16  to all retail customers in its service territory. For
17  purposes of this subsection (c), the amount paid per
18  kilowatthour means the total amount paid for electric
19  service expressed on a per kilowatthour basis. For
20  purposes of this subsection (c), the total amount paid for
21  electric service includes without limitation amounts paid
22  for supply, transmission, capacity, distribution,
23  surcharges, and add-on taxes.
24  Notwithstanding the requirements of this subsection
25  (c), the total of renewable energy resources procured
26  under the procurement plan for any single year shall be

 

 

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1  subject to the limitations of this subparagraph (E). Such
2  procurement shall be reduced for all retail customers
3  based on the amount necessary to limit the annual
4  estimated average net increase due to the costs of these
5  resources included in the amounts paid by eligible retail
6  customers in connection with electric service to no more
7  than 4.25% of the amount paid per kilowatthour by those
8  customers during the year ending May 31, 2009. To arrive
9  at a maximum dollar amount of renewable energy resources
10  to be procured for the particular delivery year, the
11  resulting per kilowatthour amount shall be applied to the
12  actual amount of kilowatthours of electricity delivered,
13  or applicable portion of such amount as specified in
14  paragraph (1) of this subsection (c), as applicable, by
15  the electric utility in the delivery year immediately
16  prior to the procurement to all retail customers in its
17  service territory. The calculations required by this
18  subparagraph (E) shall be made only once for each delivery
19  year at the time that the renewable energy resources are
20  procured. Once the determination as to the amount of
21  renewable energy resources to procure is made based on the
22  calculations set forth in this subparagraph (E) and the
23  contracts procuring those amounts are executed, no
24  subsequent rate impact determinations shall be made and no
25  adjustments to those contract amounts shall be allowed.
26  All costs incurred under such contracts shall be fully

 

 

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1  recoverable by the electric utility as provided in this
2  Section.
3  (F) If the limitation on the amount of renewable
4  energy resources procured in subparagraph (E) of this
5  paragraph (1) prevents the Agency from meeting all of the
6  goals in this subsection (c), the Agency's long-term plan
7  shall prioritize compliance with the requirements of this
8  subsection (c) regarding renewable energy credits in the
9  following order:
10  (i) renewable energy credits under existing
11  contractual obligations as of June 1, 2021;
12  (i-5) funding for the Illinois Solar for All
13  Program, as described in subparagraph (O) of this
14  paragraph (1);
15  (ii) renewable energy credits necessary to comply
16  with the new wind and new photovoltaic procurement
17  requirements described in items (i) through (iii) of
18  subparagraph (C) of this paragraph (1); and
19  (iii) renewable energy credits necessary to meet
20  the remaining requirements of this subsection (c).
21  (G) The following provisions shall apply to the
22  Agency's procurement of renewable energy credits under
23  this subsection (c):
24  (i) Notwithstanding whether a long-term renewable
25  resources procurement plan has been approved, the
26  Agency shall conduct an initial forward procurement

 

 

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1  for renewable energy credits from new utility-scale
2  wind projects within 160 days after June 1, 2017 (the
3  effective date of Public Act 99-906). For the purposes
4  of this initial forward procurement, the Agency shall
5  solicit 15-year contracts for delivery of 1,000,000
6  renewable energy credits delivered annually from new
7  utility-scale wind projects to begin delivery on June
8  1, 2019, if available, but not later than June 1, 2021,
9  unless the project has delays in the establishment of
10  an operating interconnection with the applicable
11  transmission or distribution system as a result of the
12  actions or inactions of the transmission or
13  distribution provider, or other causes for force
14  majeure as outlined in the procurement contract, in
15  which case, not later than June 1, 2022. Payments to
16  suppliers of renewable energy credits shall commence
17  upon delivery. Renewable energy credits procured under
18  this initial procurement shall be included in the
19  Agency's long-term plan and shall apply to all
20  renewable energy goals in this subsection (c).
21  (ii) Notwithstanding whether a long-term renewable
22  resources procurement plan has been approved, the
23  Agency shall conduct an initial forward procurement
24  for renewable energy credits from new utility-scale
25  solar projects and brownfield site photovoltaic
26  projects within one year after June 1, 2017 (the

 

 

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1  effective date of Public Act 99-906). For the purposes
2  of this initial forward procurement, the Agency shall
3  solicit 15-year contracts for delivery of 1,000,000
4  renewable energy credits delivered annually from new
5  utility-scale solar projects and brownfield site
6  photovoltaic projects to begin delivery on June 1,
7  2019, if available, but not later than June 1, 2021,
8  unless the project has delays in the establishment of
9  an operating interconnection with the applicable
10  transmission or distribution system as a result of the
11  actions or inactions of the transmission or
12  distribution provider, or other causes for force
13  majeure as outlined in the procurement contract, in
14  which case, not later than June 1, 2022. The Agency may
15  structure this initial procurement in one or more
16  discrete procurement events. Payments to suppliers of
17  renewable energy credits shall commence upon delivery.
18  Renewable energy credits procured under this initial
19  procurement shall be included in the Agency's
20  long-term plan and shall apply to all renewable energy
21  goals in this subsection (c).
22  (iii) Notwithstanding whether the Commission has
23  approved the periodic long-term renewable resources
24  procurement plan revision described in Section
25  16-111.5 of the Public Utilities Act, the Agency shall
26  conduct at least one subsequent forward procurement

 

 

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1  for renewable energy credits from new utility-scale
2  wind projects, new utility-scale solar projects, and
3  new brownfield site photovoltaic projects within 240
4  days after the effective date of this amendatory Act
5  of the 102nd General Assembly in quantities necessary
6  to meet the requirements of subparagraph (C) of this
7  paragraph (1) through the delivery year beginning June
8  1, 2021.
9  (iv) Notwithstanding whether the Commission has
10  approved the periodic long-term renewable resources
11  procurement plan revision described in Section
12  16-111.5 of the Public Utilities Act, the Agency shall
13  open capacity for each category in the Adjustable
14  Block program within 90 days after the effective date
15  of this amendatory Act of the 102nd General Assembly
16  manner:
17  (1) The Agency shall open the first block of
18  annual capacity for the category described in item
19  (i) of subparagraph (K) of this paragraph (1). The
20  first block of annual capacity for item (i) shall
21  be for at least 75 megawatts of total nameplate
22  capacity. The price of the renewable energy credit
23  for this block of capacity shall be 4% less than
24  the price of the last open block in this category.
25  Projects on a waitlist shall be awarded contracts
26  first in the order in which they appear on the

 

 

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1  waitlist. Notwithstanding anything to the
2  contrary, for those renewable energy credits that
3  qualify and are procured under this subitem (1) of
4  this item (iv), the renewable energy credit
5  delivery contract value shall be paid in full,
6  based on the estimated generation during the first
7  15 years of operation, by the contracting
8  utilities at the time that the facility producing
9  the renewable energy credits is interconnected at
10  the distribution system level of the utility and
11  verified as energized and in compliance by the
12  Program Administrator. The electric utility shall
13  receive and retire all renewable energy credits
14  generated by the project for the first 15 years of
15  operation. Renewable energy credits generated by
16  the project thereafter shall not be transferred
17  under the renewable energy credit delivery
18  contract with the counterparty electric utility.
19  (2) The Agency shall open the first block of
20  annual capacity for the category described in item
21  (ii) of subparagraph (K) of this paragraph (1).
22  The first block of annual capacity for item (ii)
23  shall be for at least 75 megawatts of total
24  nameplate capacity.
25  (A) The price of the renewable energy
26  credit for any project on a waitlist for this

 

 

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1  category before the opening of this block
2  shall be 4% less than the price of the last
3  open block in this category. Projects on the
4  waitlist shall be awarded contracts first in
5  the order in which they appear on the
6  waitlist. Any projects that are less than or
7  equal to 25 kilowatts in size on the waitlist
8  for this capacity shall be moved to the
9  waitlist for paragraph (1) of this item (iv).
10  Notwithstanding anything to the contrary,
11  projects that were on the waitlist prior to
12  opening of this block shall not be required to
13  be in compliance with the requirements of
14  subparagraph (Q) of this paragraph (1) of this
15  subsection (c). Notwithstanding anything to
16  the contrary, for those renewable energy
17  credits procured from projects that were on
18  the waitlist for this category before the
19  opening of this block 20% of the renewable
20  energy credit delivery contract value, based
21  on the estimated generation during the first
22  15 years of operation, shall be paid by the
23  contracting utilities at the time that the
24  facility producing the renewable energy
25  credits is interconnected at the distribution
26  system level of the utility and verified as

 

 

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1  energized by the Program Administrator. The
2  remaining portion shall be paid ratably over
3  the subsequent 4-year period. The electric
4  utility shall receive and retire all renewable
5  energy credits generated by the project during
6  the first 15 years of operation. Renewable
7  energy credits generated by the project
8  thereafter shall not be transferred under the
9  renewable energy credit delivery contract with
10  the counterparty electric utility.
11  (B) The price of renewable energy credits
12  for any project not on the waitlist for this
13  category before the opening of the block shall
14  be determined and published by the Agency.
15  Projects not on a waitlist as of the opening
16  of this block shall be subject to the
17  requirements of subparagraph (Q) of this
18  paragraph (1), as applicable. Projects not on
19  a waitlist as of the opening of this block
20  shall be subject to the contract provisions
21  outlined in item (iii) of subparagraph (L) of
22  this paragraph (1). The Agency shall strive to
23  publish updated prices and an updated
24  renewable energy credit delivery contract as
25  quickly as possible.
26  (3) For opening the first 2 blocks of annual

 

 

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1  capacity for projects participating in item (iii)
2  of subparagraph (K) of paragraph (1) of subsection
3  (c), projects shall be selected exclusively from
4  those projects on the ordinal waitlists of
5  community renewable generation projects
6  established by the Agency based on the status of
7  those ordinal waitlists as of December 31, 2020,
8  and only those projects previously determined to
9  be eligible for the Agency's April 2019 community
10  solar project selection process.
11  The first 2 blocks of annual capacity for item
12  (iii) shall be for 250 megawatts of total
13  nameplate capacity, with both blocks opening
14  simultaneously under the schedule outlined in the
15  paragraphs below. Projects shall be selected as
16  follows:
17  (A) The geographic balance of selected
18  projects shall follow the Group classification
19  found in the Agency's Revised Long-Term
20  Renewable Resources Procurement Plan, with 70%
21  of capacity allocated to projects on the Group
22  B waitlist and 30% of capacity allocated to
23  projects on the Group A waitlist.
24  (B) Contract awards for waitlisted
25  projects shall be allocated proportionate to
26  the total nameplate capacity amount across

 

 

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1  both ordinal waitlists associated with that
2  applicant firm or its affiliates, subject to
3  the following conditions.
4  (i) Each applicant firm having a
5  waitlisted project eligible for selection
6  shall receive no less than 500 kilowatts
7  in awarded capacity across all groups, and
8  no approved vendor may receive more than
9  20% of each Group's waitlist allocation.
10  (ii) Each applicant firm, upon
11  receiving an award of program capacity
12  proportionate to its waitlisted capacity,
13  may then determine which waitlisted
14  projects it chooses to be selected for a
15  contract award up to that capacity amount.
16  (iii) Assuming all other program
17  requirements are met, applicant firms may
18  adjust the nameplate capacity of applicant
19  projects without losing waitlist
20  eligibility, so long as no project is
21  greater than 2,000 kilowatts in size.
22  (iv) Assuming all other program
23  requirements are met, applicant firms may
24  adjust the expected production associated
25  with applicant projects, subject to
26  verification by the Program Administrator.

 

 

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1  (C) After a review of affiliate
2  information and the current ordinal waitlists,
3  the Agency shall announce the nameplate
4  capacity award amounts associated with
5  applicant firms no later than 90 days after
6  the effective date of this amendatory Act of
7  the 102nd General Assembly.
8  (D) Applicant firms shall submit their
9  portfolio of projects used to satisfy those
10  contract awards no less than 90 days after the
11  Agency's announcement. The total nameplate
12  capacity of all projects used to satisfy that
13  portfolio shall be no greater than the
14  Agency's nameplate capacity award amount
15  associated with that applicant firm. An
16  applicant firm may decline, in whole or in
17  part, its nameplate capacity award without
18  penalty, with such unmet capacity rolled over
19  to the next block opening for project
20  selection under item (iii) of subparagraph (K)
21  of this subsection (c). Any projects not
22  included in an applicant firm's portfolio may
23  reapply without prejudice upon the next block
24  reopening for project selection under item
25  (iii) of subparagraph (K) of this subsection
26  (c).

 

 

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1  (E) The renewable energy credit delivery
2  contract shall be subject to the contract and
3  payment terms outlined in item (iv) of
4  subparagraph (L) of this subsection (c).
5  Contract instruments used for this
6  subparagraph shall contain the following
7  terms:
8  (i) Renewable energy credit prices
9  shall be fixed, without further adjustment
10  under any other provision of this Act or
11  for any other reason, at 10% lower than
12  prices applicable to the last open block
13  for this category, inclusive of any adders
14  available for achieving a minimum of 50%
15  of subscribers to the project's nameplate
16  capacity being residential or small
17  commercial customers with subscriptions of
18  below 25 kilowatts in size;
19  (ii) A requirement that a minimum of
20  50% of subscribers to the project's
21  nameplate capacity be residential or small
22  commercial customers with subscriptions of
23  below 25 kilowatts in size;
24  (iii) Permission for the ability of a
25  contract holder to substitute projects
26  with other waitlisted projects without

 

 

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1  penalty should a project receive a
2  non-binding estimate of costs to construct
3  the interconnection facilities and any
4  required distribution upgrades associated
5  with that project of greater than 30 cents
6  per watt AC of that project's nameplate
7  capacity. In developing the applicable
8  contract instrument, the Agency may
9  consider whether other circumstances
10  outside of the control of the applicant
11  firm should also warrant project
12  substitution rights.
13  The Agency shall publish a finalized
14  updated renewable energy credit delivery
15  contract developed consistent with these terms
16  and conditions no less than 30 days before
17  applicant firms must submit their portfolio of
18  projects pursuant to item (D).
19  (F) To be eligible for an award, the
20  applicant firm shall certify that not less
21  than prevailing wage, as determined pursuant
22  to the Illinois Prevailing Wage Act, was or
23  will be paid to employees who are engaged in
24  construction activities associated with a
25  selected project.
26  (4) The Agency shall open the first block of

 

 

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1  annual capacity for the category described in item
2  (iv) of subparagraph (K) of this paragraph (1).
3  The first block of annual capacity for item (iv)
4  shall be for at least 50 megawatts of total
5  nameplate capacity. Renewable energy credit prices
6  shall be fixed, without further adjustment under
7  any other provision of this Act or for any other
8  reason, at the price in the last open block in the
9  category described in item (ii) of subparagraph
10  (K) of this paragraph (1). Pricing for future
11  blocks of annual capacity for this category may be
12  adjusted in the Agency's second revision to its
13  Long-Term Renewable Resources Procurement Plan.
14  Projects in this category shall be subject to the
15  contract terms outlined in item (iv) of
16  subparagraph (L) of this paragraph (1).
17  (5) The Agency shall open the equivalent of 2
18  years of annual capacity for the category
19  described in item (v) of subparagraph (K) of this
20  paragraph (1). The first block of annual capacity
21  for item (v) shall be for at least 10 megawatts of
22  total nameplate capacity. Notwithstanding the
23  provisions of item (v) of subparagraph (K) of this
24  paragraph (1), for the purpose of this initial
25  block, the agency shall accept new project
26  applications intended to increase the diversity of

 

 

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1  areas hosting community solar projects, the
2  business models of projects, and the size of
3  projects, as described by the Agency in its
4  long-term renewable resources procurement plan
5  that is approved as of the effective date of this
6  amendatory Act of the 102nd General Assembly.
7  Projects in this category shall be subject to the
8  contract terms outlined in item (iii) of
9  subsection (L) of this paragraph (1).
10  (6) The Agency shall open the first blocks of
11  annual capacity for the category described in item
12  (vi) of subparagraph (K) of this paragraph (1),
13  with allocations of capacity within the block
14  generally matching the historical share of block
15  capacity allocated between the category described
16  in items (i) and (ii) of subparagraph (K) of this
17  paragraph (1). The first two blocks of annual
18  capacity for item (vi) shall be for at least 75
19  megawatts of total nameplate capacity. The price
20  of renewable energy credits for the blocks of
21  capacity shall be 4% less than the price of the
22  last open blocks in the categories described in
23  items (i) and (ii) of subparagraph (K) of this
24  paragraph (1). Pricing for future blocks of annual
25  capacity for this category may be adjusted in the
26  Agency's second revision to its Long-Term

 

 

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1  Renewable Resources Procurement Plan. Projects in
2  this category shall be subject to the applicable
3  contract terms outlined in items (ii) and (iii) of
4  subparagraph (L) of this paragraph (1).
5  (v) Upon the effective date of this amendatory Act
6  of the 102nd General Assembly, for all competitive
7  procurements and any procurements of renewable energy
8  credits credit from new utility-scale wind and new
9  utility-scale photovoltaic projects, the Agency shall
10  procure indexed renewable energy credits and direct
11  respondents to offer a strike price.
12  (1) The purchase price of the indexed
13  renewable energy credit payment shall be
14  calculated for each settlement period. That
15  payment, for any settlement period, shall be equal
16  to the difference resulting from subtracting the
17  strike price from the index price for that
18  settlement period. If this difference results in a
19  negative number, the indexed REC counterparty
20  shall owe the seller the absolute value multiplied
21  by the quantity of energy produced in the relevant
22  settlement period. If this difference results in a
23  positive number, the seller shall owe the indexed
24  REC counterparty this amount multiplied by the
25  quantity of energy produced in the relevant
26  settlement period.

 

 

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1  (2) Parties shall cash settle every month,
2  summing up all settlements (both positive and
3  negative, if applicable) for the prior month.
4  (3) To ensure funding in the annual budget
5  established under subparagraph (E) for indexed
6  renewable energy credit procurements for each year
7  of the term of such contracts, which must have a
8  minimum tenure of 20 calendar years, the
9  procurement administrator, Agency, Commission
10  staff, and procurement monitor shall quantify the
11  annual cost of the contract by utilizing an
12  industry-standard, third-party forward price curve
13  for energy at the appropriate hub or load zone,
14  including the estimated magnitude and timing of
15  the price effects related to federal carbon
16  controls. Each forward price curve shall contain a
17  specific value of the forecasted market price of
18  electricity for each annual delivery year of the
19  contract. For procurement planning purposes, the
20  impact on the annual budget for the cost of
21  indexed renewable energy credits for each delivery
22  year shall be determined as the expected annual
23  contract expenditure for that year, equaling the
24  difference between (i) the sum across all relevant
25  contracts of the applicable strike price
26  multiplied by contract quantity and (ii) the sum

 

 

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1  across all relevant contracts of the forward price
2  curve for the applicable load zone for that year
3  multiplied by contract quantity. The contracting
4  utility shall not assume an obligation in excess
5  of the estimated annual cost of the contracts for
6  indexed renewable energy credits. Forward curves
7  shall be revised on an annual basis as updated
8  forward price curves are released and filed with
9  the Commission in the proceeding approving the
10  Agency's most recent long-term renewable resources
11  procurement plan. If the expected contract spend
12  is higher or lower than the total quantity of
13  contracts multiplied by the forward price curve
14  value for that year, the forward price curve shall
15  be updated by the procurement administrator, in
16  consultation with the Agency, Commission staff,
17  and procurement monitors, using then-currently
18  available price forecast data and additional
19  budget dollars shall be obligated or reobligated
20  as appropriate.
21  (4) To ensure that indexed renewable energy
22  credit prices remain predictable and affordable,
23  the Agency may consider the institution of a price
24  collar on REC prices paid under indexed renewable
25  energy credit procurements establishing floor and
26  ceiling REC prices applicable to indexed REC

 

 

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1  contract prices. Any price collars applicable to
2  indexed REC procurements shall be proposed by the
3  Agency through its long-term renewable resources
4  procurement plan.
5  (v-5) On and after the effective date of this
6  amendatory Act of the 103rd General Assembly, for all
7  procurements of renewable energy credits from
8  hydropower facilities, the Agency shall establish
9  contract terms designed to optimize existing
10  hydropower facilities through modernization or
11  retooling.
12  (vi) All procurements under this subparagraph (G),
13  including the procurement of renewable energy credits
14  from hydropower facilities, shall comply with the
15  geographic requirements in subparagraph (I) of this
16  paragraph (1) and shall follow the procurement
17  processes and procedures described in this Section and
18  Section 16-111.5 of the Public Utilities Act to the
19  extent practicable, and these processes and procedures
20  may be expedited to accommodate the schedule
21  established by this subparagraph (G).
22  (H) The procurement of renewable energy resources for
23  a given delivery year shall be reduced as described in
24  this subparagraph (H) if an alternative retail electric
25  supplier meets the requirements described in this
26  subparagraph (H).

 

 

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1  (i) Within 45 days after June 1, 2017 (the
2  effective date of Public Act 99-906), an alternative
3  retail electric supplier or its successor shall submit
4  an informational filing to the Illinois Commerce
5  Commission certifying that, as of December 31, 2015,
6  the alternative retail electric supplier owned one or
7  more electric generating facilities that generates
8  renewable energy resources as defined in Section 1-10
9  of this Act, provided that such facilities are not
10  powered by wind or photovoltaics, and the facilities
11  generate one renewable energy credit for each
12  megawatthour of energy produced from the facility.
13  The informational filing shall identify each
14  facility that was eligible to satisfy the alternative
15  retail electric supplier's obligations under Section
16  16-115D of the Public Utilities Act as described in
17  this item (i).
18  (ii) For a given delivery year, the alternative
19  retail electric supplier may elect to supply its
20  retail customers with renewable energy credits from
21  the facility or facilities described in item (i) of
22  this subparagraph (H) that continue to be owned by the
23  alternative retail electric supplier.
24  (iii) The alternative retail electric supplier
25  shall notify the Agency and the applicable utility, no
26  later than February 28 of the year preceding the

 

 

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1  applicable delivery year or 15 days after June 1, 2017
2  (the effective date of Public Act 99-906), whichever
3  is later, of its election under item (ii) of this
4  subparagraph (H) to supply renewable energy credits to
5  retail customers of the utility. Such election shall
6  identify the amount of renewable energy credits to be
7  supplied by the alternative retail electric supplier
8  to the utility's retail customers and the source of
9  the renewable energy credits identified in the
10  informational filing as described in item (i) of this
11  subparagraph (H), subject to the following
12  limitations:
13  For the delivery year beginning June 1, 2018,
14  the maximum amount of renewable energy credits to
15  be supplied by an alternative retail electric
16  supplier under this subparagraph (H) shall be 68%
17  multiplied by 25% multiplied by 14.5% multiplied
18  by the amount of metered electricity
19  (megawatt-hours) delivered by the alternative
20  retail electric supplier to Illinois retail
21  customers during the delivery year ending May 31,
22  2016.
23  For delivery years beginning June 1, 2019 and
24  each year thereafter, the maximum amount of
25  renewable energy credits to be supplied by an
26  alternative retail electric supplier under this

 

 

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1  subparagraph (H) shall be 68% multiplied by 50%
2  multiplied by 16% multiplied by the amount of
3  metered electricity (megawatt-hours) delivered by
4  the alternative retail electric supplier to
5  Illinois retail customers during the delivery year
6  ending May 31, 2016, provided that the 16% value
7  shall increase by 1.5% each delivery year
8  thereafter to 25% by the delivery year beginning
9  June 1, 2025, and thereafter the 25% value shall
10  apply to each delivery year.
11  For each delivery year, the total amount of
12  renewable energy credits supplied by all alternative
13  retail electric suppliers under this subparagraph (H)
14  shall not exceed 9% of the Illinois target renewable
15  energy credit quantity. The Illinois target renewable
16  energy credit quantity for the delivery year beginning
17  June 1, 2018 is 14.5% multiplied by the total amount of
18  metered electricity (megawatt-hours) delivered in the
19  delivery year immediately preceding that delivery
20  year, provided that the 14.5% shall increase by 1.5%
21  each delivery year thereafter to 25% by the delivery
22  year beginning June 1, 2025, and thereafter the 25%
23  value shall apply to each delivery year.
24  If the requirements set forth in items (i) through
25  (iii) of this subparagraph (H) are met, the charges
26  that would otherwise be applicable to the retail

 

 

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1  customers of the alternative retail electric supplier
2  under paragraph (6) of this subsection (c) for the
3  applicable delivery year shall be reduced by the ratio
4  of the quantity of renewable energy credits supplied
5  by the alternative retail electric supplier compared
6  to that supplier's target renewable energy credit
7  quantity. The supplier's target renewable energy
8  credit quantity for the delivery year beginning June
9  1, 2018 is 14.5% multiplied by the total amount of
10  metered electricity (megawatt-hours) delivered by the
11  alternative retail supplier in that delivery year,
12  provided that the 14.5% shall increase by 1.5% each
13  delivery year thereafter to 25% by the delivery year
14  beginning June 1, 2025, and thereafter the 25% value
15  shall apply to each delivery year.
16  On or before April 1 of each year, the Agency shall
17  annually publish a report on its website that
18  identifies the aggregate amount of renewable energy
19  credits supplied by alternative retail electric
20  suppliers under this subparagraph (H).
21  (I) The Agency shall design its long-term renewable
22  energy procurement plan to maximize the State's interest
23  in the health, safety, and welfare of its residents,
24  including but not limited to minimizing sulfur dioxide,
25  nitrogen oxide, particulate matter and other pollution
26  that adversely affects public health in this State,

 

 

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1  increasing fuel and resource diversity in this State,
2  enhancing the reliability and resiliency of the
3  electricity distribution system in this State, meeting
4  goals to limit carbon dioxide emissions under federal or
5  State law, and contributing to a cleaner and healthier
6  environment for the citizens of this State. In order to
7  further these legislative purposes, renewable energy
8  credits shall be eligible to be counted toward the
9  renewable energy requirements of this subsection (c) if
10  they are generated from facilities located in this State.
11  The Agency may qualify renewable energy credits from
12  facilities located in states adjacent to Illinois or
13  renewable energy credits associated with the electricity
14  generated by a utility-scale wind energy facility or
15  utility-scale photovoltaic facility and transmitted by a
16  qualifying direct current project described in subsection
17  (b-5) of Section 8-406 of the Public Utilities Act to a
18  delivery point on the electric transmission grid located
19  in this State or a state adjacent to Illinois, if the
20  generator demonstrates and the Agency determines that the
21  operation of such facility or facilities will help promote
22  the State's interest in the health, safety, and welfare of
23  its residents based on the public interest criteria
24  described above. For the purposes of this Section,
25  renewable resources that are delivered via a high voltage
26  direct current converter station located in Illinois shall

 

 

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1  be deemed generated in Illinois at the time and location
2  the energy is converted to alternating current by the high
3  voltage direct current converter station if the high
4  voltage direct current transmission line: (i) after the
5  effective date of this amendatory Act of the 102nd General
6  Assembly, was constructed with a project labor agreement;
7  (ii) is capable of transmitting electricity at 525kv;
8  (iii) has an Illinois converter station located and
9  interconnected in the region of the PJM Interconnection,
10  LLC; (iv) does not operate as a public utility; and (v) if
11  the high voltage direct current transmission line was
12  energized after June 1, 2023. To ensure that the public
13  interest criteria are applied to the procurement and given
14  full effect, the Agency's long-term procurement plan shall
15  describe in detail how each public interest factor shall
16  be considered and weighted for facilities located in
17  states adjacent to Illinois.
18  (J) In order to promote the competitive development of
19  renewable energy resources in furtherance of the State's
20  interest in the health, safety, and welfare of its
21  residents, renewable energy credits shall not be eligible
22  to be counted toward the renewable energy requirements of
23  this subsection (c) if they are sourced from a generating
24  unit whose costs were being recovered through rates
25  regulated by this State or any other state or states on or
26  after January 1, 2017. Each contract executed to purchase

 

 

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1  renewable energy credits under this subsection (c) shall
2  provide for the contract's termination if the costs of the
3  generating unit supplying the renewable energy credits
4  subsequently begin to be recovered through rates regulated
5  by this State or any other state or states; and each
6  contract shall further provide that, in that event, the
7  supplier of the credits must return 110% of all payments
8  received under the contract. Amounts returned under the
9  requirements of this subparagraph (J) shall be retained by
10  the utility and all of these amounts shall be used for the
11  procurement of additional renewable energy credits from
12  new wind or new photovoltaic resources as defined in this
13  subsection (c). The long-term plan shall provide that
14  these renewable energy credits shall be procured in the
15  next procurement event.
16  Notwithstanding the limitations of this subparagraph
17  (J), renewable energy credits sourced from generating
18  units that are constructed, purchased, owned, or leased by
19  an electric utility as part of an approved project,
20  program, or pilot under Section 1-56 of this Act shall be
21  eligible to be counted toward the renewable energy
22  requirements of this subsection (c), regardless of how the
23  costs of these units are recovered. As long as a
24  generating unit or an identifiable portion of a generating
25  unit has not had and does not have its costs recovered
26  through rates regulated by this State or any other state,

 

 

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1  HVDC renewable energy credits associated with that
2  generating unit or identifiable portion thereof shall be
3  eligible to be counted toward the renewable energy
4  requirements of this subsection (c).
5  (K) The long-term renewable resources procurement plan
6  developed by the Agency in accordance with subparagraph
7  (A) of this paragraph (1) shall include an Adjustable
8  Block program for the procurement of renewable energy
9  credits from new photovoltaic projects that are
10  distributed renewable energy generation devices or new
11  photovoltaic community renewable generation projects. The
12  Adjustable Block program shall be generally designed to
13  provide for the steady, predictable, and sustainable
14  growth of new solar photovoltaic development in Illinois.
15  To this end, the Adjustable Block program shall provide a
16  transparent annual schedule of prices and quantities to
17  enable the photovoltaic market to scale up and for
18  renewable energy credit prices to adjust at a predictable
19  rate over time. The prices set by the Adjustable Block
20  program can be reflected as a set value or as the product
21  of a formula.
22  The Adjustable Block program shall include for each
23  category of eligible projects for each delivery year: a
24  single block of nameplate capacity, a price for renewable
25  energy credits within that block, and the terms and
26  conditions for securing a spot on a waitlist once the

 

 

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1  block is fully committed or reserved. Except as outlined
2  below, the waitlist of projects in a given year will carry
3  over to apply to the subsequent year when another block is
4  opened. Only projects energized on or after June 1, 2017
5  shall be eligible for the Adjustable Block program. For
6  each category for each delivery year the Agency shall
7  determine the amount of generation capacity in each block,
8  and the purchase price for each block, provided that the
9  purchase price provided and the total amount of generation
10  in all blocks for all categories shall be sufficient to
11  meet the goals in this subsection (c). The Agency shall
12  strive to issue a single block sized to provide for
13  stability and market growth. The Agency shall establish
14  program eligibility requirements that ensure that projects
15  that enter the program are sufficiently mature to indicate
16  a demonstrable path to completion. The Agency may
17  periodically review its prior decisions establishing the
18  amount of generation capacity in each block, and the
19  purchase price for each block, and may propose, on an
20  expedited basis, changes to these previously set values,
21  including but not limited to redistributing these amounts
22  and the available funds as necessary and appropriate,
23  subject to Commission approval as part of the periodic
24  plan revision process described in Section 16-111.5 of the
25  Public Utilities Act. The Agency may define different
26  block sizes, purchase prices, or other distinct terms and

 

 

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1  conditions for projects located in different utility
2  service territories if the Agency deems it necessary to
3  meet the goals in this subsection (c).
4  The Adjustable Block program shall include the
5  following categories in at least the following amounts:
6  (i) At least 20% from distributed renewable energy
7  generation devices with a nameplate capacity of no
8  more than 25 kilowatts.
9  (ii) At least 20% from distributed renewable
10  energy generation devices with a nameplate capacity of
11  more than 25 kilowatts and no more than 5,000
12  kilowatts. The Agency may create sub-categories within
13  this category to account for the differences between
14  projects for small commercial customers, large
15  commercial customers, and public or non-profit
16  customers.
17  (iii) At least 30% from photovoltaic community
18  renewable generation projects. Capacity for this
19  category for the first 2 delivery years after the
20  effective date of this amendatory Act of the 102nd
21  General Assembly shall be allocated to waitlist
22  projects as provided in paragraph (3) of item (iv) of
23  subparagraph (G). Starting in the third delivery year
24  after the effective date of this amendatory Act of the
25  102nd General Assembly or earlier if the Agency
26  determines there is additional capacity needed for to

 

 

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1  meet previous delivery year requirements, the
2  following shall apply:
3  (1) the Agency shall select projects on a
4  first-come, first-serve basis, however the Agency
5  may suggest additional methods to prioritize
6  projects that are submitted at the same time;
7  (2) projects shall have subscriptions of 25 kW
8  or less for at least 50% of the facility's
9  nameplate capacity and the Agency shall price the
10  renewable energy credits with that as a factor;
11  (3) projects shall not be colocated with one
12  or more other community renewable generation
13  projects, as defined in the Agency's first revised
14  long-term renewable resources procurement plan
15  approved by the Commission on February 18, 2020,
16  such that the aggregate nameplate capacity exceeds
17  5,000 kilowatts; and
18  (4) projects greater than 2 MW may not apply
19  until after the approval of the Agency's revised
20  Long-Term Renewable Resources Procurement Plan
21  after the effective date of this amendatory Act of
22  the 102nd General Assembly.
23  (iv) At least 15% from distributed renewable
24  generation devices or photovoltaic community renewable
25  generation projects installed at public schools. The
26  Agency may create subcategories within this category

 

 

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1  to account for the differences between project size or
2  location. Projects located within environmental
3  justice communities or within Organizational Units
4  that fall within Tier 1 or Tier 2 shall be given
5  priority. Each of the Agency's periodic updates to its
6  long-term renewable resources procurement plan to
7  incorporate the procurement described in this
8  subparagraph (iv) shall also include the proposed
9  quantities or blocks, pricing, and contract terms
10  applicable to the procurement as indicated herein. In
11  each such update and procurement, the Agency shall set
12  the renewable energy credit price and establish
13  payment terms for the renewable energy credits
14  procured pursuant to this subparagraph (iv) that make
15  it feasible and affordable for public schools to
16  install photovoltaic distributed renewable energy
17  devices on their premises, including, but not limited
18  to, those public schools subject to the prioritization
19  provisions of this subparagraph. For the purposes of
20  this item (iv):
21  "Environmental Justice Community" shall have the
22  same meaning set forth in the Agency's long-term
23  renewable resources procurement plan;
24  "Organization Unit", "Tier 1" and "Tier 2" shall
25  have the meanings set for in Section 18-8.15 of the
26  School Code;

 

 

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1  "Public schools" shall have the meaning set forth
2  in Section 1-3 of the School Code.
3  (v) At least 5% from community-driven community
4  solar projects intended to provide more direct and
5  tangible connection and benefits to the communities
6  which they serve or in which they operate and,
7  additionally, to increase the variety of community
8  solar locations, models, and options in Illinois. As
9  part of its long-term renewable resources procurement
10  plan, the Agency shall develop selection criteria for
11  projects participating in this category. Nothing in
12  this Section shall preclude the Agency from creating a
13  selection process that maximizes community ownership
14  and community benefits in selecting projects to
15  receive renewable energy credits. Selection criteria
16  shall include:
17  (1) community ownership or community
18  wealth-building;
19  (2) additional direct and indirect community
20  benefit, beyond project participation as a
21  subscriber, including, but not limited to,
22  economic, environmental, social, cultural, and
23  physical benefits;
24  (3) meaningful involvement in project
25  organization and development by community members
26  or nonprofit organizations or public entities

 

 

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1  located in or serving the community;
2  (4) engagement in project operations and
3  management by nonprofit organizations, public
4  entities, or community members; and
5  (5) whether a project is developed in response
6  to a site-specific RFP developed by community
7  members or a nonprofit organization or public
8  entity located in or serving the community.
9  Selection criteria may also prioritize projects
10  that:
11  (1) are developed in collaboration with or to
12  provide complementary opportunities for the Clean
13  Jobs Workforce Network Program, the Illinois
14  Climate Works Preapprenticeship Program, the
15  Returning Residents Clean Jobs Training Program,
16  the Clean Energy Contractor Incubator Program, or
17  the Clean Energy Primes Contractor Accelerator
18  Program;
19  (2) increase the diversity of locations of
20  community solar projects in Illinois, including by
21  locating in urban areas and population centers;
22  (3) are located in Equity Investment Eligible
23  Communities;
24  (4) are not greenfield projects;
25  (5) serve only local subscribers;
26  (6) have a nameplate capacity that does not

 

 

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1  exceed 500 kW;
2  (7) are developed by an equity eligible
3  contractor; or
4  (8) otherwise meaningfully advance the goals
5  of providing more direct and tangible connection
6  and benefits to the communities which they serve
7  or in which they operate and increasing the
8  variety of community solar locations, models, and
9  options in Illinois.
10  For the purposes of this item (v):
11  "Community" means a social unit in which people
12  come together regularly to effect change; a social
13  unit in which participants are marked by a cooperative
14  spirit, a common purpose, or shared interests or
15  characteristics; or a space understood by its
16  residents to be delineated through geographic
17  boundaries or landmarks.
18  "Community benefit" means a range of services and
19  activities that provide affirmative, economic,
20  environmental, social, cultural, or physical value to
21  a community; or a mechanism that enables economic
22  development, high-quality employment, and education
23  opportunities for local workers and residents, or
24  formal monitoring and oversight structures such that
25  community members may ensure that those services and
26  activities respond to local knowledge and needs.

 

 

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1  "Community ownership" means an arrangement in
2  which an electric generating facility is, or over time
3  will be, in significant part, owned collectively by
4  members of the community to which an electric
5  generating facility provides benefits; members of that
6  community participate in decisions regarding the
7  governance, operation, maintenance, and upgrades of
8  and to that facility; and members of that community
9  benefit from regular use of that facility.
10  Terms and guidance within these criteria that are
11  not defined in this item (v) shall be defined by the
12  Agency, with stakeholder input, during the development
13  of the Agency's long-term renewable resources
14  procurement plan. The Agency shall develop regular
15  opportunities for projects to submit applications for
16  projects under this category, and develop selection
17  criteria that gives preference to projects that better
18  meet individual criteria as well as projects that
19  address a higher number of criteria.
20  (vi) At least 10% from distributed renewable
21  energy generation devices, which includes distributed
22  renewable energy devices with a nameplate capacity
23  under 5,000 kilowatts or photovoltaic community
24  renewable generation projects, from applicants that
25  are equity eligible contractors. The Agency may create
26  subcategories within this category to account for the

 

 

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1  differences between project size and type. The Agency
2  shall propose to increase the percentage in this item
3  (vi) over time to 40% based on factors, including, but
4  not limited to, the number of equity eligible
5  contractors and capacity used in this item (vi) in
6  previous delivery years.
7  The Agency shall propose a payment structure for
8  contracts executed pursuant to this paragraph under
9  which, upon a demonstration of qualification or need,
10  applicant firms are advanced capital disbursed after
11  contract execution but before the contracted project's
12  energization. The amount or percentage of capital
13  advanced prior to project energization shall be
14  sufficient to both cover any increase in development
15  costs resulting from prevailing wage requirements or
16  project-labor agreements, and designed to overcome
17  barriers in access to capital faced by equity eligible
18  contractors. The amount or percentage of advanced
19  capital may vary by subcategory within this category
20  and by an applicant's demonstration of need, with such
21  levels to be established through the Long-Term
22  Renewable Resources Procurement Plan authorized under
23  subparagraph (A) of paragraph (1) of subsection (c) of
24  this Section.
25  Contracts developed featuring capital advanced
26  prior to a project's energization shall feature

 

 

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1  provisions to ensure both the successful development
2  of applicant projects and the delivery of the
3  renewable energy credits for the full term of the
4  contract, including ongoing collateral requirements
5  and other provisions deemed necessary by the Agency,
6  and may include energization timelines longer than for
7  comparable project types. The percentage or amount of
8  capital advanced prior to project energization shall
9  not operate to increase the overall contract value,
10  however contracts executed under this subparagraph may
11  feature renewable energy credit prices higher than
12  those offered to similar projects participating in
13  other categories. Capital advanced prior to
14  energization shall serve to reduce the ratable
15  payments made after energization under items (ii) and
16  (iii) of subparagraph (L) or payments made for each
17  renewable energy credit delivery under item (iv) of
18  subparagraph (L).
19  (vii) The remaining capacity shall be allocated by
20  the Agency in order to respond to market demand. The
21  Agency shall allocate any discretionary capacity prior
22  to the beginning of each delivery year.
23  To the extent there is uncontracted capacity from any
24  block in any of categories (i) through (vi) at the end of a
25  delivery year, the Agency shall redistribute that capacity
26  to one or more other categories giving priority to

 

 

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1  categories with projects on a waitlist. The redistributed
2  capacity shall be added to the annual capacity in the
3  subsequent delivery year, and the price for renewable
4  energy credits shall be the price for the new delivery
5  year. Redistributed capacity shall not be considered
6  redistributed when determining whether the goals in this
7  subsection (K) have been met.
8  Notwithstanding anything to the contrary, as the
9  Agency increases the capacity in item (vi) to 40% over
10  time, the Agency may reduce the capacity of items (i)
11  through (v) proportionate to the capacity of the
12  categories of projects in item (vi), to achieve a balance
13  of project types.
14  The Adjustable Block program shall be designed to
15  ensure that renewable energy credits are procured from
16  projects in diverse locations and are not concentrated in
17  a few regional areas.
18  (L) Notwithstanding provisions for advancing capital
19  prior to project energization found in item (vi) of
20  subparagraph (K), the procurement of photovoltaic
21  renewable energy credits under items (i) through (vi) of
22  subparagraph (K) of this paragraph (1) shall otherwise be
23  subject to the following contract and payment terms:
24  (i) (Blank).
25  (ii) For those renewable energy credits that
26  qualify and are procured under item (i) of

 

 

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1  subparagraph (K) of this paragraph (1), and any
2  similar category projects that are procured under item
3  (vi) of subparagraph (K) of this paragraph (1) that
4  qualify and are procured under item (vi), the contract
5  length shall be 15 years. The renewable energy credit
6  delivery contract value shall be paid in full, based
7  on the estimated generation during the first 15 years
8  of operation, by the contracting utilities at the time
9  that the facility producing the renewable energy
10  credits is interconnected at the distribution system
11  level of the utility and verified as energized and
12  compliant by the Program Administrator. The electric
13  utility shall receive and retire all renewable energy
14  credits generated by the project for the first 15
15  years of operation. Renewable energy credits generated
16  by the project thereafter shall not be transferred
17  under the renewable energy credit delivery contract
18  with the counterparty electric utility.
19  (iii) For those renewable energy credits that
20  qualify and are procured under item (ii) and (v) of
21  subparagraph (K) of this paragraph (1) and any like
22  projects similar category that qualify and are
23  procured under item (vi), the contract length shall be
24  15 years. 15% of the renewable energy credit delivery
25  contract value, based on the estimated generation
26  during the first 15 years of operation, shall be paid

 

 

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1  by the contracting utilities at the time that the
2  facility producing the renewable energy credits is
3  interconnected at the distribution system level of the
4  utility and verified as energized and compliant by the
5  Program Administrator. The remaining portion shall be
6  paid ratably over the subsequent 6-year period. The
7  electric utility shall receive and retire all
8  renewable energy credits generated by the project for
9  the first 15 years of operation. Renewable energy
10  credits generated by the project thereafter shall not
11  be transferred under the renewable energy credit
12  delivery contract with the counterparty electric
13  utility.
14  (iv) For those renewable energy credits that
15  qualify and are procured under items (iii) and (iv) of
16  subparagraph (K) of this paragraph (1), and any like
17  projects that qualify and are procured under item
18  (vi), the renewable energy credit delivery contract
19  length shall be 20 years and shall be paid over the
20  delivery term, not to exceed during each delivery year
21  the contract price multiplied by the estimated annual
22  renewable energy credit generation amount. If
23  generation of renewable energy credits during a
24  delivery year exceeds the estimated annual generation
25  amount, the excess renewable energy credits shall be
26  carried forward to future delivery years and shall not

 

 

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1  expire during the delivery term. If generation of
2  renewable energy credits during a delivery year,
3  including carried forward excess renewable energy
4  credits, if any, is less than the estimated annual
5  generation amount, payments during such delivery year
6  will not exceed the quantity generated plus the
7  quantity carried forward multiplied by the contract
8  price. The electric utility shall receive all
9  renewable energy credits generated by the project
10  during the first 20 years of operation and retire all
11  renewable energy credits paid for under this item (iv)
12  and return at the end of the delivery term all
13  renewable energy credits that were not paid for.
14  Renewable energy credits generated by the project
15  thereafter shall not be transferred under the
16  renewable energy credit delivery contract with the
17  counterparty electric utility. Notwithstanding the
18  preceding, for those projects participating under item
19  (iii) of subparagraph (K), the contract price for a
20  delivery year shall be based on subscription levels as
21  measured on the higher of the first business day of the
22  delivery year or the first business day 6 months after
23  the first business day of the delivery year.
24  Subscription of 90% of nameplate capacity or greater
25  shall be deemed to be fully subscribed for the
26  purposes of this item (iv). For projects receiving a

 

 

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1  20-year delivery contract, REC prices shall be
2  adjusted downward for consistency with the incentive
3  levels previously determined to be necessary to
4  support projects under 15-year delivery contracts,
5  taking into consideration any additional new
6  requirements placed on the projects, including, but
7  not limited to, labor standards.
8  (v) Each contract shall include provisions to
9  ensure the delivery of the estimated quantity of
10  renewable energy credits and ongoing collateral
11  requirements and other provisions deemed appropriate
12  by the Agency.
13  (vi) The utility shall be the counterparty to the
14  contracts executed under this subparagraph (L) that
15  are approved by the Commission under the process
16  described in Section 16-111.5 of the Public Utilities
17  Act. No contract shall be executed for an amount that
18  is less than one renewable energy credit per year.
19  (vii) If, at any time, approved applications for
20  the Adjustable Block program exceed funds collected by
21  the electric utility or would cause the Agency to
22  exceed the limitation described in subparagraph (E) of
23  this paragraph (1) on the amount of renewable energy
24  resources that may be procured, then the Agency may
25  consider future uncommitted funds to be reserved for
26  these contracts on a first-come, first-served basis.

 

 

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1  (viii) Nothing in this Section shall require the
2  utility to advance any payment or pay any amounts that
3  exceed the actual amount of revenues anticipated to be
4  collected by the utility under paragraph (6) of this
5  subsection (c) and subsection (k) of Section 16-108 of
6  the Public Utilities Act inclusive of eligible funds
7  collected in prior years and alternative compliance
8  payments for use by the utility, and contracts
9  executed under this Section shall expressly
10  incorporate this limitation.
11  (ix) Notwithstanding other requirements of this
12  subparagraph (L), no modification shall be required to
13  Adjustable Block program contracts if they were
14  already executed prior to the establishment, approval,
15  and implementation of new contract forms as a result
16  of this amendatory Act of the 102nd General Assembly.
17  (x) Contracts may be assignable, but only to
18  entities first deemed by the Agency to have met
19  program terms and requirements applicable to direct
20  program participation. In developing contracts for the
21  delivery of renewable energy credits, the Agency shall
22  be permitted to establish fees applicable to each
23  contract assignment.
24  (M) The Agency shall be authorized to retain one or
25  more experts or expert consulting firms to develop,
26  administer, implement, operate, and evaluate the

 

 

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1  Adjustable Block program described in subparagraph (K) of
2  this paragraph (1), and the Agency shall retain the
3  consultant or consultants in the same manner, to the
4  extent practicable, as the Agency retains others to
5  administer provisions of this Act, including, but not
6  limited to, the procurement administrator. The selection
7  of experts and expert consulting firms and the procurement
8  process described in this subparagraph (M) are exempt from
9  the requirements of Section 20-10 of the Illinois
10  Procurement Code, under Section 20-10 of that Code. The
11  Agency shall strive to minimize administrative expenses in
12  the implementation of the Adjustable Block program.
13  The Program Administrator may charge application fees
14  to participating firms to cover the cost of program
15  administration. Any application fee amounts shall
16  initially be determined through the long-term renewable
17  resources procurement plan, and modifications to any
18  application fee that deviate more than 25% from the
19  Commission's approved value must be approved by the
20  Commission as a long-term plan revision under Section
21  16-111.5 of the Public Utilities Act. The Agency shall
22  consider stakeholder feedback when making adjustments to
23  application fees and shall notify stakeholders in advance
24  of any planned changes.
25  In addition to covering the costs of program
26  administration, the Agency, in conjunction with its

 

 

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1  Program Administrator, may also use the proceeds of such
2  fees charged to participating firms to support public
3  education and ongoing regional and national coordination
4  with nonprofit organizations, public bodies, and others
5  engaged in the implementation of renewable energy
6  incentive programs or similar initiatives. This work may
7  include developing papers and reports, hosting regional
8  and national conferences, and other work deemed necessary
9  by the Agency to position the State of Illinois as a
10  national leader in renewable energy incentive program
11  development and administration.
12  The Agency and its consultant or consultants shall
13  monitor block activity, share program activity with
14  stakeholders and conduct quarterly meetings to discuss
15  program activity and market conditions. If necessary, the
16  Agency may make prospective administrative adjustments to
17  the Adjustable Block program design, such as making
18  adjustments to purchase prices as necessary to achieve the
19  goals of this subsection (c). Program modifications to any
20  block price that do not deviate from the Commission's
21  approved value by more than 10% shall take effect
22  immediately and are not subject to Commission review and
23  approval. Program modifications to any block price that
24  deviate more than 10% from the Commission's approved value
25  must be approved by the Commission as a long-term plan
26  amendment under Section 16-111.5 of the Public Utilities

 

 

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1  Act. The Agency shall consider stakeholder feedback when
2  making adjustments to the Adjustable Block design and
3  shall notify stakeholders in advance of any planned
4  changes.
5  The Agency and its program administrators for both the
6  Adjustable Block program and the Illinois Solar for All
7  Program, consistent with the requirements of this
8  subsection (c) and subsection (b) of Section 1-56 of this
9  Act, shall propose the Adjustable Block program terms,
10  conditions, and requirements, including the prices to be
11  paid for renewable energy credits, where applicable, and
12  requirements applicable to participating entities and
13  project applications, through the development, review, and
14  approval of the Agency's long-term renewable resources
15  procurement plan described in this subsection (c) and
16  paragraph (5) of subsection (b) of Section 16-111.5 of the
17  Public Utilities Act. Terms, conditions, and requirements
18  for program participation shall include the following:
19  (i) The Agency shall establish a registration
20  process for entities seeking to qualify for
21  program-administered incentive funding and establish
22  baseline qualifications for vendor approval. The
23  Agency must maintain a list of approved entities on
24  each program's website, and may revoke a vendor's
25  ability to receive program-administered incentive
26  funding status upon a determination that the vendor

 

 

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1  failed to comply with contract terms, the law, or
2  other program requirements.
3  (ii) The Agency shall establish program
4  requirements and minimum contract terms to ensure
5  projects are properly installed and produce their
6  expected amounts of energy. Program requirements may
7  include on-site inspections and photo documentation of
8  projects under construction. The Agency may require
9  repairs, alterations, or additions to remedy any
10  material deficiencies discovered. Vendors who have a
11  disproportionately high number of deficient systems
12  may lose their eligibility to continue to receive
13  State-administered incentive funding through Agency
14  programs and procurements.
15  (iii) To discourage deceptive marketing or other
16  bad faith business practices, the Agency may require
17  direct program participants, including agents
18  operating on their behalf, to provide standardized
19  disclosures to a customer prior to that customer's
20  execution of a contract for the development of a
21  distributed generation system or a subscription to a
22  community solar project.
23  (iv) The Agency shall establish one or multiple
24  Consumer Complaints Centers to accept complaints
25  regarding businesses that participate in, or otherwise
26  benefit from, State-administered incentive funding

 

 

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1  through Agency-administered programs. The Agency shall
2  maintain a public database of complaints with any
3  confidential or particularly sensitive information
4  redacted from public entries.
5  (v) Through a filing in the proceeding for the
6  approval of its long-term renewable energy resources
7  procurement plan, the Agency shall provide an annual
8  written report to the Illinois Commerce Commission
9  documenting the frequency and nature of complaints and
10  any enforcement actions taken in response to those
11  complaints.
12  (vi) The Agency shall schedule regular meetings
13  with representatives of the Office of the Attorney
14  General, the Illinois Commerce Commission, consumer
15  protection groups, and other interested stakeholders
16  to share relevant information about consumer
17  protection, project compliance, and complaints
18  received.
19  (vii) To the extent that complaints received
20  implicate the jurisdiction of the Office of the
21  Attorney General, the Illinois Commerce Commission, or
22  local, State, or federal law enforcement, the Agency
23  shall also refer complaints to those entities as
24  appropriate.
25  (N) The Agency shall establish the terms, conditions,
26  and program requirements for photovoltaic community

 

 

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1  renewable generation projects with a goal to expand access
2  to a broader group of energy consumers, to ensure robust
3  participation opportunities for residential and small
4  commercial customers and those who cannot install
5  renewable energy on their own properties. Subject to
6  reasonable limitations, any plan approved by the
7  Commission shall allow subscriptions to community
8  renewable generation projects to be portable and
9  transferable. For purposes of this subparagraph (N),
10  "portable" means that subscriptions may be retained by the
11  subscriber even if the subscriber relocates or changes its
12  address within the same utility service territory; and
13  "transferable" means that a subscriber may assign or sell
14  subscriptions to another person within the same utility
15  service territory.
16  Through the development of its long-term renewable
17  resources procurement plan, the Agency may consider
18  whether community renewable generation projects utilizing
19  technologies other than photovoltaics should be supported
20  through State-administered incentive funding, and may
21  issue requests for information to gauge market demand.
22  Electric utilities shall provide a monetary credit to
23  a subscriber's subsequent bill for service for the
24  proportional output of a community renewable generation
25  project attributable to that subscriber as specified in
26  Section 16-107.5 of the Public Utilities Act.

 

 

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1  The Agency shall purchase renewable energy credits
2  from subscribed shares of photovoltaic community renewable
3  generation projects through the Adjustable Block program
4  described in subparagraph (K) of this paragraph (1) or
5  through the Illinois Solar for All Program described in
6  Section 1-56 of this Act. The electric utility shall
7  purchase any unsubscribed energy from community renewable
8  generation projects that are Qualifying Facilities ("QF")
9  under the electric utility's tariff for purchasing the
10  output from QFs under Public Utilities Regulatory Policies
11  Act of 1978.
12  The owners of and any subscribers to a community
13  renewable generation project shall not be considered
14  public utilities or alternative retail electricity
15  suppliers under the Public Utilities Act solely as a
16  result of their interest in or subscription to a community
17  renewable generation project and shall not be required to
18  become an alternative retail electric supplier by
19  participating in a community renewable generation project
20  with a public utility.
21  (O) For the delivery year beginning June 1, 2018, the
22  long-term renewable resources procurement plan required by
23  this subsection (c) shall provide for the Agency to
24  procure contracts to continue offering the Illinois Solar
25  for All Program described in subsection (b) of Section
26  1-56 of this Act, and the contracts approved by the

 

 

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1  Commission shall be executed by the utilities that are
2  subject to this subsection (c). The long-term renewable
3  resources procurement plan shall allocate up to
4  $50,000,000 per delivery year to fund the programs, and
5  the plan shall determine the amount of funding to be
6  apportioned to the programs identified in subsection (b)
7  of Section 1-56 of this Act; provided that for the
8  delivery years beginning June 1, 2021, June 1, 2022, and
9  June 1, 2023, the long-term renewable resources
10  procurement plan may average the annual budgets over a
11  3-year period to account for program ramp-up. For the
12  delivery years beginning June 1, 2021, June 1, 2024, June
13  1, 2027, and June 1, 2030 and additional $10,000,000 shall
14  be provided to the Department of Commerce and Economic
15  Opportunity to implement the workforce development
16  programs and reporting as outlined in Section 16-108.12 of
17  the Public Utilities Act. In making the determinations
18  required under this subparagraph (O), the Commission shall
19  consider the experience and performance under the programs
20  and any evaluation reports. The Commission shall also
21  provide for an independent evaluation of those programs on
22  a periodic basis that are funded under this subparagraph
23  (O).
24  (P) All programs and procurements under this
25  subsection (c) shall be designed to encourage
26  participating projects to use a diverse and equitable

 

 

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1  workforce and a diverse set of contractors, including
2  minority-owned businesses, disadvantaged businesses,
3  trade unions, graduates of any workforce training programs
4  administered under this Act, and small businesses.
5  The Agency shall develop a method to optimize
6  procurement of renewable energy credits from proposed
7  utility-scale projects that are located in communities
8  eligible to receive Energy Transition Community Grants
9  pursuant to Section 10-20 of the Energy Community
10  Reinvestment Act. If this requirement conflicts with other
11  provisions of law or the Agency determines that full
12  compliance with the requirements of this subparagraph (P)
13  would be unreasonably costly or administratively
14  impractical, the Agency is to propose alternative
15  approaches to achieve development of renewable energy
16  resources in communities eligible to receive Energy
17  Transition Community Grants pursuant to Section 10-20 of
18  the Energy Community Reinvestment Act or seek an exemption
19  from this requirement from the Commission.
20  (Q) Each facility listed in subitems (i) through (ix)
21  (viii) of item (1) of this subparagraph (Q) for which a
22  renewable energy credit delivery contract is signed after
23  the effective date of this amendatory Act of the 102nd
24  General Assembly is subject to the following requirements
25  through the Agency's long-term renewable resources
26  procurement plan:

 

 

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1  (1) Each facility shall be subject to the
2  prevailing wage requirements included in the
3  Prevailing Wage Act. The Agency shall require
4  verification that all construction performed on the
5  facility by the renewable energy credit delivery
6  contract holder, its contractors, or its
7  subcontractors relating to construction of the
8  facility is performed by construction employees
9  receiving an amount for that work equal to or greater
10  than the general prevailing rate, as that term is
11  defined in Section 3 of the Prevailing Wage Act. For
12  purposes of this item (1), "house of worship" means
13  property that is both (1) used exclusively by a
14  religious society or body of persons as a place for
15  religious exercise or religious worship and (2)
16  recognized as exempt from taxation pursuant to Section
17  15-40 of the Property Tax Code. This item (1) shall
18  apply to any the following:
19  (i) all new utility-scale wind projects;
20  (ii) all new utility-scale photovoltaic
21  projects;
22  (iii) all new brownfield photovoltaic
23  projects;
24  (iv) all new photovoltaic community renewable
25  energy facilities that qualify for item (iii) of
26  subparagraph (K) of this paragraph (1);

 

 

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1  (v) all new community driven community
2  photovoltaic projects that qualify for item (v) of
3  subparagraph (K) of this paragraph (1);
4  (vi) all new photovoltaic distributed
5  renewable energy generation devices on schools
6  that qualify for item (iv) of subparagraph (K) of
7  this paragraph (1);
8  (vii) all new photovoltaic distributed
9  renewable energy generation devices that (1)
10  qualify for item (i) of subparagraph (K) of this
11  paragraph (1); (2) are not projects that serve
12  single-family or multi-family residential
13  buildings; and (3) are not houses of worship where
14  the aggregate capacity including collocated
15  projects would not exceed 100 kilowatts;
16  (viii) all new photovoltaic distributed
17  renewable energy generation devices that (1)
18  qualify for item (ii) of subparagraph (K) of this
19  paragraph (1); (2) are not projects that serve
20  single-family or multi-family residential
21  buildings; and (3) are not houses of worship where
22  the aggregate capacity including collocated
23  projects would not exceed 100 kilowatts; and .
24  (ix) all new, newly modernized, or retooled
25  hydropower facilities.
26  (2) Renewable energy credits procured from new

 

 

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1  utility-scale wind projects, new utility-scale solar
2  projects, and new brownfield solar projects pursuant
3  to Agency procurement events occurring after the
4  effective date of this amendatory Act of the 102nd
5  General Assembly must be from facilities built by
6  general contractors that must enter into a project
7  labor agreement, as defined by this Act, prior to
8  construction. The project labor agreement shall be
9  filed with the Director in accordance with procedures
10  established by the Agency through its long-term
11  renewable resources procurement plan. Any information
12  submitted to the Agency in this item (2) shall be
13  considered commercially sensitive information. At a
14  minimum, the project labor agreement must provide the
15  names, addresses, and occupations of the owner of the
16  plant and the individuals representing the labor
17  organization employees participating in the project
18  labor agreement consistent with the Project Labor
19  Agreements Act. The agreement must also specify the
20  terms and conditions as defined by this Act.
21  (3) It is the intent of this Section to ensure that
22  economic development occurs across Illinois
23  communities, that emerging businesses may grow, and
24  that there is improved access to the clean energy
25  economy by persons who have greater economic burdens
26  to success. The Agency shall take into consideration

 

 

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1  the unique cost of compliance of this subparagraph (Q)
2  that might be borne by equity eligible contractors,
3  shall include such costs when determining the price of
4  renewable energy credits in the Adjustable Block
5  program, and shall take such costs into consideration
6  in a nondiscriminatory manner when comparing bids for
7  competitive procurements. The Agency shall consider
8  costs associated with compliance whether in the
9  development, financing, or construction of projects.
10  The Agency shall periodically review the assumptions
11  in these costs and may adjust prices, in compliance
12  with subparagraph (M) of this paragraph (1).
13  (R) In its long-term renewable resources procurement
14  plan, the Agency shall establish a self-direct renewable
15  portfolio standard compliance program for eligible
16  self-direct customers that purchase renewable energy
17  credits from utility-scale wind and solar projects through
18  long-term agreements for purchase of renewable energy
19  credits as described in this Section. Such long-term
20  agreements may include the purchase of energy or other
21  products on a physical or financial basis and may involve
22  an alternative retail electric supplier as defined in
23  Section 16-102 of the Public Utilities Act. This program
24  shall take effect in the delivery year commencing June 1,
25  2023.
26  (1) For the purposes of this subparagraph:

 

 

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1  "Eligible self-direct customer" means any retail
2  customers of an electric utility that serves 3,000,000
3  or more retail customers in the State and whose total
4  highest 30-minute demand was more than 10,000
5  kilowatts, or any retail customers of an electric
6  utility that serves less than 3,000,000 retail
7  customers but more than 500,000 retail customers in
8  the State and whose total highest 15-minute demand was
9  more than 10,000 kilowatts.
10  "Retail customer" has the meaning set forth in
11  Section 16-102 of the Public Utilities Act and
12  multiple retail customer accounts under the same
13  corporate parent may aggregate their account demands
14  to meet the 10,000 kilowatt threshold. The criteria
15  for determining whether this subparagraph is
16  applicable to a retail customer shall be based on the
17  12 consecutive billing periods prior to the start of
18  the year in which the application is filed.
19  (2) For renewable energy credits to count toward
20  the self-direct renewable portfolio standard
21  compliance program, they must:
22  (i) qualify as renewable energy credits as
23  defined in Section 1-10 of this Act;
24  (ii) be sourced from one or more renewable
25  energy generating facilities that comply with the
26  geographic requirements as set forth in

 

 

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1  subparagraph (I) of paragraph (1) of subsection
2  (c) as interpreted through the Agency's long-term
3  renewable resources procurement plan, or, where
4  applicable, the geographic requirements that
5  governed utility-scale renewable energy credits at
6  the time the eligible self-direct customer entered
7  into the applicable renewable energy credit
8  purchase agreement;
9  (iii) be procured through long-term contracts
10  with term lengths of at least 10 years either
11  directly with the renewable energy generating
12  facility or through a bundled power purchase
13  agreement, a virtual power purchase agreement, an
14  agreement between the renewable generating
15  facility, an alternative retail electric supplier,
16  and the customer, or such other structure as is
17  permissible under this subparagraph (R);
18  (iv) be equivalent in volume to at least 40%
19  of the eligible self-direct customer's usage,
20  determined annually by the eligible self-direct
21  customer's usage during the previous delivery
22  year, measured to the nearest megawatt-hour;
23  (v) be retired by or on behalf of the large
24  energy customer;
25  (vi) be sourced from new utility-scale wind
26  projects or new utility-scale solar projects; and

 

 

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1  (vii) if the contracts for renewable energy
2  credits are entered into after the effective date
3  of this amendatory Act of the 102nd General
4  Assembly, the new utility-scale wind projects or
5  new utility-scale solar projects must comply with
6  the requirements established in subparagraphs (P)
7  and (Q) of paragraph (1) of this subsection (c)
8  and subsection (c-10).
9  (3) The self-direct renewable portfolio standard
10  compliance program shall be designed to allow eligible
11  self-direct customers to procure new renewable energy
12  credits from new utility-scale wind projects or new
13  utility-scale photovoltaic projects. The Agency shall
14  annually determine the amount of utility-scale
15  renewable energy credits it will include each year
16  from the self-direct renewable portfolio standard
17  compliance program, subject to receiving qualifying
18  applications. In making this determination, the Agency
19  shall evaluate publicly available analyses and studies
20  of the potential market size for utility-scale
21  renewable energy long-term purchase agreements by
22  commercial and industrial energy customers and make
23  that report publicly available. If demand for
24  participation in the self-direct renewable portfolio
25  standard compliance program exceeds availability, the
26  Agency shall ensure participation is evenly split

 

 

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1  between commercial and industrial users to the extent
2  there is sufficient demand from both customer classes.
3  Each renewable energy credit procured pursuant to this
4  subparagraph (R) by a self-direct customer shall
5  reduce the total volume of renewable energy credits
6  the Agency is otherwise required to procure from new
7  utility-scale projects pursuant to subparagraph (C) of
8  paragraph (1) of this subsection (c) on behalf of
9  contracting utilities where the eligible self-direct
10  customer is located. The self-direct customer shall
11  file an annual compliance report with the Agency
12  pursuant to terms established by the Agency through
13  its long-term renewable resources procurement plan to
14  be eligible for participation in this program.
15  Customers must provide the Agency with their most
16  recent electricity billing statements or other
17  information deemed necessary by the Agency to
18  demonstrate they are an eligible self-direct customer.
19  (4) The Commission shall approve a reduction in
20  the volumetric charges collected pursuant to Section
21  16-108 of the Public Utilities Act for approved
22  eligible self-direct customers equivalent to the
23  anticipated cost of renewable energy credit deliveries
24  under contracts for new utility-scale wind and new
25  utility-scale solar entered for each delivery year
26  after the large energy customer begins retiring

 

 

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1  eligible new utility scale renewable energy credits
2  for self-compliance. The self-direct credit amount
3  shall be determined annually and is equal to the
4  estimated portion of the cost authorized by
5  subparagraph (E) of paragraph (1) of this subsection
6  (c) that supported the annual procurement of
7  utility-scale renewable energy credits in the prior
8  delivery year using a methodology described in the
9  long-term renewable resources procurement plan,
10  expressed on a per kilowatthour basis, and does not
11  include (i) costs associated with any contracts
12  entered into before the delivery year in which the
13  customer files the initial compliance report to be
14  eligible for participation in the self-direct program,
15  and (ii) costs associated with procuring renewable
16  energy credits through existing and future contracts
17  through the Adjustable Block Program, subsection (c-5)
18  of this Section 1-75, and the Solar for All Program.
19  The Agency shall assist the Commission in determining
20  the current and future costs. The Agency must
21  determine the self-direct credit amount for new and
22  existing eligible self-direct customers and submit
23  this to the Commission in an annual compliance filing.
24  The Commission must approve the self-direct credit
25  amount by June 1, 2023 and June 1 of each delivery year
26  thereafter.

 

 

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1  (5) Customers described in this subparagraph (R)
2  shall apply, on a form developed by the Agency, to the
3  Agency to be designated as a self-direct eligible
4  customer. Once the Agency determines that a
5  self-direct customer is eligible for participation in
6  the program, the self-direct customer will remain
7  eligible until the end of the term of the contract.
8  Thereafter, application may be made not less than 12
9  months before the filing date of the long-term
10  renewable resources procurement plan described in this
11  Act. At a minimum, such application shall contain the
12  following:
13  (i) the customer's certification that, at the
14  time of the customer's application, the customer
15  qualifies to be a self-direct eligible customer,
16  including documents demonstrating that
17  qualification;
18  (ii) the customer's certification that the
19  customer has entered into or will enter into by
20  the beginning of the applicable procurement year,
21  one or more bilateral contracts for new wind
22  projects or new photovoltaic projects, including
23  supporting documentation;
24  (iii) certification that the contract or
25  contracts for new renewable energy resources are
26  long-term contracts with term lengths of at least

 

 

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1  10 years, including supporting documentation;
2  (iv) certification of the quantities of
3  renewable energy credits that the customer will
4  purchase each year under such contract or
5  contracts, including supporting documentation;
6  (v) proof that the contract is sufficient to
7  produce renewable energy credits to be equivalent
8  in volume to at least 40% of the large energy
9  customer's usage from the previous delivery year,
10  measured to the nearest megawatt-hour; and
11  (vi) certification that the customer intends
12  to maintain the contract for the duration of the
13  length of the contract.
14  (6) If a customer receives the self-direct credit
15  but fails to properly procure and retire renewable
16  energy credits as required under this subparagraph
17  (R), the Commission, on petition from the Agency and
18  after notice and hearing, may direct such customer's
19  utility to recover the cost of the wrongfully received
20  self-direct credits plus interest through an adder to
21  charges assessed pursuant to Section 16-108 of the
22  Public Utilities Act. Self-direct customers who
23  knowingly fail to properly procure and retire
24  renewable energy credits and do not notify the Agency
25  are ineligible for continued participation in the
26  self-direct renewable portfolio standard compliance

 

 

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1  program.
2  (2) (Blank).
3  (3) (Blank).
4  (4) The electric utility shall retire all renewable
5  energy credits used to comply with the standard.
6  (5) Beginning with the 2010 delivery year and ending
7  June 1, 2017, an electric utility subject to this
8  subsection (c) shall apply the lesser of the maximum
9  alternative compliance payment rate or the most recent
10  estimated alternative compliance payment rate for its
11  service territory for the corresponding compliance period,
12  established pursuant to subsection (d) of Section 16-115D
13  of the Public Utilities Act to its retail customers that
14  take service pursuant to the electric utility's hourly
15  pricing tariff or tariffs. The electric utility shall
16  retain all amounts collected as a result of the
17  application of the alternative compliance payment rate or
18  rates to such customers, and, beginning in 2011, the
19  utility shall include in the information provided under
20  item (1) of subsection (d) of Section 16-111.5 of the
21  Public Utilities Act the amounts collected under the
22  alternative compliance payment rate or rates for the prior
23  year ending May 31. Notwithstanding any limitation on the
24  procurement of renewable energy resources imposed by item
25  (2) of this subsection (c), the Agency shall increase its
26  spending on the purchase of renewable energy resources to

 

 

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1  be procured by the electric utility for the next plan year
2  by an amount equal to the amounts collected by the utility
3  under the alternative compliance payment rate or rates in
4  the prior year ending May 31.
5  (6) The electric utility shall be entitled to recover
6  all of its costs associated with the procurement of
7  renewable energy credits under plans approved under this
8  Section and Section 16-111.5 of the Public Utilities Act.
9  These costs shall include associated reasonable expenses
10  for implementing the procurement programs, including, but
11  not limited to, the costs of administering and evaluating
12  the Adjustable Block program, through an automatic
13  adjustment clause tariff in accordance with subsection (k)
14  of Section 16-108 of the Public Utilities Act.
15  (7) Renewable energy credits procured from new
16  photovoltaic projects or new distributed renewable energy
17  generation devices under this Section after June 1, 2017
18  (the effective date of Public Act 99-906) must be procured
19  from devices installed by a qualified person in compliance
20  with the requirements of Section 16-128A of the Public
21  Utilities Act and any rules or regulations adopted
22  thereunder.
23  In meeting the renewable energy requirements of this
24  subsection (c), to the extent feasible and consistent with
25  State and federal law, the renewable energy credit
26  procurements, Adjustable Block solar program, and

 

 

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1  community renewable generation program shall provide
2  employment opportunities for all segments of the
3  population and workforce, including minority-owned and
4  female-owned business enterprises, and shall not,
5  consistent with State and federal law, discriminate based
6  on race or socioeconomic status.
7  (c-5) Procurement of renewable energy credits from new
8  renewable energy facilities installed at or adjacent to the
9  sites of electric generating facilities that burn or burned
10  coal as their primary fuel source.
11  (1) In addition to the procurement of renewable energy
12  credits pursuant to long-term renewable resources
13  procurement plans in accordance with subsection (c) of
14  this Section and Section 16-111.5 of the Public Utilities
15  Act, the Agency shall conduct procurement events in
16  accordance with this subsection (c-5) for the procurement
17  by electric utilities that served more than 300,000 retail
18  customers in this State as of January 1, 2019 of renewable
19  energy credits from new renewable energy facilities to be
20  installed at or adjacent to the sites of electric
21  generating facilities that, as of January 1, 2016, burned
22  coal as their primary fuel source and meet the other
23  criteria specified in this subsection (c-5). For purposes
24  of this subsection (c-5), "new renewable energy facility"
25  means a new utility-scale solar project as defined in this
26  Section 1-75. The renewable energy credits procured

 

 

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1  pursuant to this subsection (c-5) may be included or
2  counted for purposes of compliance with the amounts of
3  renewable energy credits required to be procured pursuant
4  to subsection (c) of this Section to the extent that there
5  are otherwise shortfalls in compliance with such
6  requirements. The procurement of renewable energy credits
7  by electric utilities pursuant to this subsection (c-5)
8  shall be funded solely by revenues collected from the Coal
9  to Solar and Energy Storage Initiative Charge provided for
10  in this subsection (c-5) and subsection (i-5) of Section
11  16-108 of the Public Utilities Act, shall not be funded by
12  revenues collected through any of the other funding
13  mechanisms provided for in subsection (c) of this Section,
14  and shall not be subject to the limitation imposed by
15  subsection (c) on charges to retail customers for costs to
16  procure renewable energy resources pursuant to subsection
17  (c), and shall not be subject to any other requirements or
18  limitations of subsection (c).
19  (2) The Agency shall conduct 2 procurement events to
20  select owners of electric generating facilities meeting
21  the eligibility criteria specified in this subsection
22  (c-5) to enter into long-term contracts to sell renewable
23  energy credits to electric utilities serving more than
24  300,000 retail customers in this State as of January 1,
25  2019. The first procurement event shall be conducted no
26  later than March 31, 2022, unless the Agency elects to

 

 

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1  delay it, until no later than May 1, 2022, due to its
2  overall volume of work, and shall be to select owners of
3  electric generating facilities located in this State and
4  south of federal Interstate Highway 80 that meet the
5  eligibility criteria specified in this subsection (c-5).
6  The second procurement event shall be conducted no sooner
7  than September 30, 2022 and no later than October 31, 2022
8  and shall be to select owners of electric generating
9  facilities located anywhere in this State that meet the
10  eligibility criteria specified in this subsection (c-5).
11  The Agency shall establish and announce a time period,
12  which shall begin no later than 30 days prior to the
13  scheduled date for the procurement event, during which
14  applicants may submit applications to be selected as
15  suppliers of renewable energy credits pursuant to this
16  subsection (c-5). The eligibility criteria for selection
17  as a supplier of renewable energy credits pursuant to this
18  subsection (c-5) shall be as follows:
19  (A) The applicant owns an electric generating
20  facility located in this State that: (i) as of January
21  1, 2016, burned coal as its primary fuel to generate
22  electricity; and (ii) has, or had prior to retirement,
23  an electric generating capacity of at least 150
24  megawatts. The electric generating facility can be
25  either: (i) retired as of the date of the procurement
26  event; or (ii) still operating as of the date of the

 

 

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1  procurement event.
2  (B) The applicant is not (i) an electric
3  cooperative as defined in Section 3-119 of the Public
4  Utilities Act, or (ii) an entity described in
5  subsection (b)(1) of Section 3-105 of the Public
6  Utilities Act, or an association or consortium of or
7  an entity owned by entities described in (i) or (ii);
8  and the coal-fueled electric generating facility was
9  at one time owned, in whole or in part, by a public
10  utility as defined in Section 3-105 of the Public
11  Utilities Act.
12  (C) If participating in the first procurement
13  event, the applicant proposes and commits to construct
14  and operate, at the site, and if necessary for
15  sufficient space on property adjacent to the existing
16  property, at which the electric generating facility
17  identified in paragraph (A) is located: (i) a new
18  renewable energy facility of at least 20 megawatts but
19  no more than 100 megawatts of electric generating
20  capacity, and (ii) an energy storage facility having a
21  storage capacity equal to at least 2 megawatts and at
22  most 10 megawatts. If participating in the second
23  procurement event, the applicant proposes and commits
24  to construct and operate, at the site, and if
25  necessary for sufficient space on property adjacent to
26  the existing property, at which the electric

 

 

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1  generating facility identified in paragraph (A) is
2  located: (i) a new renewable energy facility of at
3  least 5 megawatts but no more than 20 megawatts of
4  electric generating capacity, and (ii) an energy
5  storage facility having a storage capacity equal to at
6  least 0.5 megawatts and at most one megawatt.
7  (D) The applicant agrees that the new renewable
8  energy facility and the energy storage facility will
9  be constructed or installed by a qualified entity or
10  entities in compliance with the requirements of
11  subsection (g) of Section 16-128A of the Public
12  Utilities Act and any rules adopted thereunder.
13  (E) The applicant agrees that personnel operating
14  the new renewable energy facility and the energy
15  storage facility will have the requisite skills,
16  knowledge, training, experience, and competence, which
17  may be demonstrated by completion or current
18  participation and ultimate completion by employees of
19  an accredited or otherwise recognized apprenticeship
20  program for the employee's particular craft, trade, or
21  skill, including through training and education
22  courses and opportunities offered by the owner to
23  employees of the coal-fueled electric generating
24  facility or by previous employment experience
25  performing the employee's particular work skill or
26  function.

 

 

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1  (F) The applicant commits that not less than the
2  prevailing wage, as determined pursuant to the
3  Prevailing Wage Act, will be paid to the applicant's
4  employees engaged in construction activities
5  associated with the new renewable energy facility and
6  the new energy storage facility and to the employees
7  of applicant's contractors engaged in construction
8  activities associated with the new renewable energy
9  facility and the new energy storage facility, and
10  that, on or before the commercial operation date of
11  the new renewable energy facility, the applicant shall
12  file a report with the Agency certifying that the
13  requirements of this subparagraph (F) have been met.
14  (G) The applicant commits that if selected, it
15  will negotiate a project labor agreement for the
16  construction of the new renewable energy facility and
17  associated energy storage facility that includes
18  provisions requiring the parties to the agreement to
19  work together to establish diversity threshold
20  requirements and to ensure best efforts to meet
21  diversity targets, improve diversity at the applicable
22  job site, create diverse apprenticeship opportunities,
23  and create opportunities to employ former coal-fired
24  power plant workers.
25  (H) The applicant commits to enter into a contract
26  or contracts for the applicable duration to provide

 

 

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1  specified numbers of renewable energy credits each
2  year from the new renewable energy facility to
3  electric utilities that served more than 300,000
4  retail customers in this State as of January 1, 2019,
5  at a price of $30 per renewable energy credit. The
6  price per renewable energy credit shall be fixed at
7  $30 for the applicable duration and the renewable
8  energy credits shall not be indexed renewable energy
9  credits as provided for in item (v) of subparagraph
10  (G) of paragraph (1) of subsection (c) of Section 1-75
11  of this Act. The applicable duration of each contract
12  shall be 20 years, unless the applicant is physically
13  interconnected to the PJM Interconnection, LLC
14  transmission grid and had a generating capacity of at
15  least 1,200 megawatts as of January 1, 2021, in which
16  case the applicable duration of the contract shall be
17  15 years.
18  (I) The applicant's application is certified by an
19  officer of the applicant and by an officer of the
20  applicant's ultimate parent company, if any.
21  (3) An applicant may submit applications to contract
22  to supply renewable energy credits from more than one new
23  renewable energy facility to be constructed at or adjacent
24  to one or more qualifying electric generating facilities
25  owned by the applicant. The Agency may select new
26  renewable energy facilities to be located at or adjacent

 

 

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1  to the sites of more than one qualifying electric
2  generation facility owned by an applicant to contract with
3  electric utilities to supply renewable energy credits from
4  such facilities.
5  (4) The Agency shall assess fees to each applicant to
6  recover the Agency's costs incurred in receiving and
7  evaluating applications, conducting the procurement event,
8  developing contracts for sale, delivery and purchase of
9  renewable energy credits, and monitoring the
10  administration of such contracts, as provided for in this
11  subsection (c-5), including fees paid to a procurement
12  administrator retained by the Agency for one or more of
13  these purposes.
14  (5) The Agency shall select the applicants and the new
15  renewable energy facilities to contract with electric
16  utilities to supply renewable energy credits in accordance
17  with this subsection (c-5). In the first procurement
18  event, the Agency shall select applicants and new
19  renewable energy facilities to supply renewable energy
20  credits, at a price of $30 per renewable energy credit,
21  aggregating to no less than 400,000 renewable energy
22  credits per year for the applicable duration, assuming
23  sufficient qualifying applications to supply, in the
24  aggregate, at least that amount of renewable energy
25  credits per year; and not more than 580,000 renewable
26  energy credits per year for the applicable duration. In

 

 

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1  the second procurement event, the Agency shall select
2  applicants and new renewable energy facilities to supply
3  renewable energy credits, at a price of $30 per renewable
4  energy credit, aggregating to no more than 625,000
5  renewable energy credits per year less the amount of
6  renewable energy credits each year contracted for as a
7  result of the first procurement event, for the applicable
8  durations. The number of renewable energy credits to be
9  procured as specified in this paragraph (5) shall not be
10  reduced based on renewable energy credits procured in the
11  self-direct renewable energy credit compliance program
12  established pursuant to subparagraph (R) of paragraph (1)
13  of subsection (c) of Section 1-75.
14  (6) The obligation to purchase renewable energy
15  credits from the applicants and their new renewable energy
16  facilities selected by the Agency shall be allocated to
17  the electric utilities based on their respective
18  percentages of kilowatthours delivered to delivery
19  services customers to the aggregate kilowatthour
20  deliveries by the electric utilities to delivery services
21  customers for the year ended December 31, 2021. In order
22  to achieve these allocation percentages between or among
23  the electric utilities, the Agency shall require each
24  applicant that is selected in the procurement event to
25  enter into a contract with each electric utility for the
26  sale and purchase of renewable energy credits from each

 

 

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1  new renewable energy facility to be constructed and
2  operated by the applicant, with the sale and purchase
3  obligations under the contracts to aggregate to the total
4  number of renewable energy credits per year to be supplied
5  by the applicant from the new renewable energy facility.
6  (7) The Agency shall submit its proposed selection of
7  applicants, new renewable energy facilities to be
8  constructed, and renewable energy credit amounts for each
9  procurement event to the Commission for approval. The
10  Commission shall, within 2 business days after receipt of
11  the Agency's proposed selections, approve the proposed
12  selections if it determines that the applicants and the
13  new renewable energy facilities to be constructed meet the
14  selection criteria set forth in this subsection (c-5) and
15  that the Agency seeks approval for contracts of applicable
16  durations aggregating to no more than the maximum amount
17  of renewable energy credits per year authorized by this
18  subsection (c-5) for the procurement event, at a price of
19  $30 per renewable energy credit.
20  (8) The Agency, in conjunction with its procurement
21  administrator if one is retained, the electric utilities,
22  and potential applicants for contracts to produce and
23  supply renewable energy credits pursuant to this
24  subsection (c-5), shall develop a standard form contract
25  for the sale, delivery and purchase of renewable energy
26  credits pursuant to this subsection (c-5). Each contract

 

 

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1  resulting from the first procurement event shall allow for
2  a commercial operation date for the new renewable energy
3  facility of either June 1, 2023 or June 1, 2024, with such
4  dates subject to adjustment as provided in this paragraph.
5  Each contract resulting from the second procurement event
6  shall provide for a commercial operation date on June 1
7  next occurring up to 48 months after execution of the
8  contract. Each contract shall provide that the owner shall
9  receive payments for renewable energy credits for the
10  applicable durations beginning with the commercial
11  operation date of the new renewable energy facility. The
12  form contract shall provide for adjustments to the
13  commercial operation and payment start dates as needed due
14  to any delays in completing the procurement and
15  contracting processes, in finalizing interconnection
16  agreements and installing interconnection facilities, and
17  in obtaining other necessary governmental permits and
18  approvals. The form contract shall be, to the maximum
19  extent possible, consistent with standard electric
20  industry contracts for sale, delivery, and purchase of
21  renewable energy credits while taking into account the
22  specific requirements of this subsection (c-5). The form
23  contract shall provide for over-delivery and
24  under-delivery of renewable energy credits within
25  reasonable ranges during each 12-month period and penalty,
26  default, and enforcement provisions for failure of the

 

 

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1  selling party to deliver renewable energy credits as
2  specified in the contract and to comply with the
3  requirements of this subsection (c-5). The standard form
4  contract shall specify that all renewable energy credits
5  delivered to the electric utility pursuant to the contract
6  shall be retired. The Agency shall make the proposed
7  contracts available for a reasonable period for comment by
8  potential applicants, and shall publish the final form
9  contract at least 30 days before the date of the first
10  procurement event.
11  (9) Coal to Solar and Energy Storage Initiative
12  Charge.
13  (A) By no later than July 1, 2022, each electric
14  utility that served more than 300,000 retail customers
15  in this State as of January 1, 2019 shall file a tariff
16  with the Commission for the billing and collection of
17  a Coal to Solar and Energy Storage Initiative Charge
18  in accordance with subsection (i-5) of Section 16-108
19  of the Public Utilities Act, with such tariff to be
20  effective, following review and approval or
21  modification by the Commission, beginning January 1,
22  2023. The tariff shall provide for the calculation and
23  setting of the electric utility's Coal to Solar and
24  Energy Storage Initiative Charge to collect revenues
25  estimated to be sufficient, in the aggregate, (i) to
26  enable the electric utility to pay for the renewable

 

 

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1  energy credits it has contracted to purchase in the
2  delivery year beginning June 1, 2023 and each delivery
3  year thereafter from new renewable energy facilities
4  located at the sites of qualifying electric generating
5  facilities, and (ii) to fund the grant payments to be
6  made in each delivery year by the Department of
7  Commerce and Economic Opportunity, or any successor
8  department or agency, which shall be referred to in
9  this subsection (c-5) as the Department, pursuant to
10  paragraph (10) of this subsection (c-5). The electric
11  utility's tariff shall provide for the billing and
12  collection of the Coal to Solar and Energy Storage
13  Initiative Charge on each kilowatthour of electricity
14  delivered to its delivery services customers within
15  its service territory and shall provide for an annual
16  reconciliation of revenues collected with actual
17  costs, in accordance with subsection (i-5) of Section
18  16-108 of the Public Utilities Act.
19  (B) Each electric utility shall remit on a monthly
20  basis to the State Treasurer, for deposit in the Coal
21  to Solar and Energy Storage Initiative Fund provided
22  for in this subsection (c-5), the electric utility's
23  collections of the Coal to Solar and Energy Storage
24  Initiative Charge in the amount estimated to be needed
25  by the Department for grant payments pursuant to grant
26  contracts entered into by the Department pursuant to

 

 

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1  paragraph (10) of this subsection (c-5).
2  (10) Coal to Solar and Energy Storage Initiative Fund.
3  (A) The Coal to Solar and Energy Storage
4  Initiative Fund is established as a special fund in
5  the State treasury. The Coal to Solar and Energy
6  Storage Initiative Fund is authorized to receive, by
7  statutory deposit, that portion specified in item (B)
8  of paragraph (9) of this subsection (c-5) of moneys
9  collected by electric utilities through imposition of
10  the Coal to Solar and Energy Storage Initiative Charge
11  required by this subsection (c-5). The Coal to Solar
12  and Energy Storage Initiative Fund shall be
13  administered by the Department to provide grants to
14  support the installation and operation of energy
15  storage facilities at the sites of qualifying electric
16  generating facilities meeting the criteria specified
17  in this paragraph (10).
18  (B) The Coal to Solar and Energy Storage
19  Initiative Fund shall not be subject to sweeps,
20  administrative charges, or chargebacks, including, but
21  not limited to, those authorized under Section 8h of
22  the State Finance Act, that would in any way result in
23  the transfer of those funds from the Coal to Solar and
24  Energy Storage Initiative Fund to any other fund of
25  this State or in having any such funds utilized for any
26  purpose other than the express purposes set forth in

 

 

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1  this paragraph (10).
2  (C) The Department shall utilize up to
3  $280,500,000 in the Coal to Solar and Energy Storage
4  Initiative Fund for grants, assuming sufficient
5  qualifying applicants, to support installation of
6  energy storage facilities at the sites of up to 3
7  qualifying electric generating facilities located in
8  the Midcontinent Independent System Operator, Inc.,
9  region in Illinois and the sites of up to 2 qualifying
10  electric generating facilities located in the PJM
11  Interconnection, LLC region in Illinois that meet the
12  criteria set forth in this subparagraph (C). The
13  criteria for receipt of a grant pursuant to this
14  subparagraph (C) are as follows:
15  (1) the electric generating facility at the
16  site has, or had prior to retirement, an electric
17  generating capacity of at least 150 megawatts;
18  (2) the electric generating facility burns (or
19  burned prior to retirement) coal as its primary
20  source of fuel;
21  (3) if the electric generating facility is
22  retired, it was retired subsequent to January 1,
23  2016;
24  (4) the owner of the electric generating
25  facility has not been selected by the Agency
26  pursuant to this subsection (c-5) of this Section

 

 

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1  to enter into a contract to sell renewable energy
2  credits to one or more electric utilities from a
3  new renewable energy facility located or to be
4  located at or adjacent to the site at which the
5  electric generating facility is located;
6  (5) the electric generating facility located
7  at the site was at one time owned, in whole or in
8  part, by a public utility as defined in Section
9  3-105 of the Public Utilities Act;
10  (6) the electric generating facility at the
11  site is not owned by (i) an electric cooperative
12  as defined in Section 3-119 of the Public
13  Utilities Act, or (ii) an entity described in
14  subsection (b)(1) of Section 3-105 of the Public
15  Utilities Act, or an association or consortium of
16  or an entity owned by entities described in items
17  (i) or (ii);
18  (7) the proposed energy storage facility at
19  the site will have energy storage capacity of at
20  least 37 megawatts;
21  (8) the owner commits to place the energy
22  storage facility into commercial operation on
23  either June 1, 2023, June 1, 2024, or June 1, 2025,
24  with such date subject to adjustment as needed due
25  to any delays in completing the grant contracting
26  process, in finalizing interconnection agreements

 

 

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1  and in installing interconnection facilities, and
2  in obtaining necessary governmental permits and
3  approvals;
4  (9) the owner agrees that the new energy
5  storage facility will be constructed or installed
6  by a qualified entity or entities consistent with
7  the requirements of subsection (g) of Section
8  16-128A of the Public Utilities Act and any rules
9  adopted under that Section;
10  (10) the owner agrees that personnel operating
11  the energy storage facility will have the
12  requisite skills, knowledge, training, experience,
13  and competence, which may be demonstrated by
14  completion or current participation and ultimate
15  completion by employees of an accredited or
16  otherwise recognized apprenticeship program for
17  the employee's particular craft, trade, or skill,
18  including through training and education courses
19  and opportunities offered by the owner to
20  employees of the coal-fueled electric generating
21  facility or by previous employment experience
22  performing the employee's particular work skill or
23  function;
24  (11) the owner commits that not less than the
25  prevailing wage, as determined pursuant to the
26  Prevailing Wage Act, will be paid to the owner's

 

 

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1  employees engaged in construction activities
2  associated with the new energy storage facility
3  and to the employees of the owner's contractors
4  engaged in construction activities associated with
5  the new energy storage facility, and that, on or
6  before the commercial operation date of the new
7  energy storage facility, the owner shall file a
8  report with the Department certifying that the
9  requirements of this subparagraph (11) have been
10  met; and
11  (12) the owner commits that if selected to
12  receive a grant, it will negotiate a project labor
13  agreement for the construction of the new energy
14  storage facility that includes provisions
15  requiring the parties to the agreement to work
16  together to establish diversity threshold
17  requirements and to ensure best efforts to meet
18  diversity targets, improve diversity at the
19  applicable job site, create diverse apprenticeship
20  opportunities, and create opportunities to employ
21  former coal-fired power plant workers.
22  The Department shall accept applications for this
23  grant program until March 31, 2022 and shall announce
24  the award of grants no later than June 1, 2022. The
25  Department shall make the grant payments to a
26  recipient in equal annual amounts for 10 years

 

 

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1  following the date the energy storage facility is
2  placed into commercial operation. The annual grant
3  payments to a qualifying energy storage facility shall
4  be $110,000 per megawatt of energy storage capacity,
5  with total annual grant payments pursuant to this
6  subparagraph (C) for qualifying energy storage
7  facilities not to exceed $28,050,000 in any year.
8  (D) Grants of funding for energy storage
9  facilities pursuant to subparagraph (C) of this
10  paragraph (10), from the Coal to Solar and Energy
11  Storage Initiative Fund, shall be memorialized in
12  grant contracts between the Department and the
13  recipient. The grant contracts shall specify the date
14  or dates in each year on which the annual grant
15  payments shall be paid.
16  (E) All disbursements from the Coal to Solar and
17  Energy Storage Initiative Fund shall be made only upon
18  warrants of the Comptroller drawn upon the Treasurer
19  as custodian of the Fund upon vouchers signed by the
20  Director of the Department or by the person or persons
21  designated by the Director of the Department for that
22  purpose. The Comptroller is authorized to draw the
23  warrants upon vouchers so signed. The Treasurer shall
24  accept all written warrants so signed and shall be
25  released from liability for all payments made on those
26  warrants.

 

 

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1  (11) Diversity, equity, and inclusion plans.
2  (A) Each applicant selected in a procurement event
3  to contract to supply renewable energy credits in
4  accordance with this subsection (c-5) and each owner
5  selected by the Department to receive a grant or
6  grants to support the construction and operation of a
7  new energy storage facility or facilities in
8  accordance with this subsection (c-5) shall, within 60
9  days following the Commission's approval of the
10  applicant to contract to supply renewable energy
11  credits or within 60 days following execution of a
12  grant contract with the Department, as applicable,
13  submit to the Commission a diversity, equity, and
14  inclusion plan setting forth the applicant's or
15  owner's numeric goals for the diversity composition of
16  its supplier entities for the new renewable energy
17  facility or new energy storage facility, as
18  applicable, which shall be referred to for purposes of
19  this paragraph (11) as the project, and the
20  applicant's or owner's action plan and schedule for
21  achieving those goals.
22  (B) For purposes of this paragraph (11), diversity
23  composition shall be based on the percentage, which
24  shall be a minimum of 25%, of eligible expenditures
25  for contract awards for materials and services (which
26  shall be defined in the plan) to business enterprises

 

 

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1  owned by minority persons, women, or persons with
2  disabilities as defined in Section 2 of the Business
3  Enterprise for Minorities, Women, and Persons with
4  Disabilities Act, to LGBTQ business enterprises, to
5  veteran-owned business enterprises, and to business
6  enterprises located in environmental justice
7  communities. The diversity composition goals of the
8  plan may include eligible expenditures in areas for
9  vendor or supplier opportunities in addition to
10  development and construction of the project, and may
11  exclude from eligible expenditures materials and
12  services with limited market availability, limited
13  production and availability from suppliers in the
14  United States, such as solar panels and storage
15  batteries, and material and services that are subject
16  to critical energy infrastructure or cybersecurity
17  requirements or restrictions. The plan may provide
18  that the diversity composition goals may be met
19  through Tier 1 Direct or Tier 2 subcontracting
20  expenditures or a combination thereof for the project.
21  (C) The plan shall provide for, but not be limited
22  to: (i) internal initiatives, including multi-tier
23  initiatives, by the applicant or owner, or by its
24  engineering, procurement and construction contractor
25  if one is used for the project, which for purposes of
26  this paragraph (11) shall be referred to as the EPC

 

 

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1  contractor, to enable diverse businesses to be
2  considered fairly for selection to provide materials
3  and services; (ii) requirements for the applicant or
4  owner or its EPC contractor to proactively solicit and
5  utilize diverse businesses to provide materials and
6  services; and (iii) requirements for the applicant or
7  owner or its EPC contractor to hire a diverse
8  workforce for the project. The plan shall include a
9  description of the applicant's or owner's diversity
10  recruiting efforts both for the project and for other
11  areas of the applicant's or owner's business
12  operations. The plan shall provide for the imposition
13  of financial penalties on the applicant's or owner's
14  EPC contractor for failure to exercise best efforts to
15  comply with and execute the EPC contractor's diversity
16  obligations under the plan. The plan may provide for
17  the applicant or owner to set aside a portion of the
18  work on the project to serve as an incubation program
19  for qualified businesses, as specified in the plan,
20  owned by minority persons, women, persons with
21  disabilities, LGBTQ persons, and veterans, and
22  businesses located in environmental justice
23  communities, seeking to enter the renewable energy
24  industry.
25  (D) The applicant or owner may submit a revised or
26  updated plan to the Commission from time to time as

 

 

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1  circumstances warrant. The applicant or owner shall
2  file annual reports with the Commission detailing the
3  applicant's or owner's progress in implementing its
4  plan and achieving its goals and any modifications the
5  applicant or owner has made to its plan to better
6  achieve its diversity, equity and inclusion goals. The
7  applicant or owner shall file a final report on the
8  fifth June 1 following the commercial operation date
9  of the new renewable energy resource or new energy
10  storage facility, but the applicant or owner shall
11  thereafter continue to be subject to applicable
12  reporting requirements of Section 5-117 of the Public
13  Utilities Act.
14  (c-10) Equity accountability system. It is the purpose of
15  this subsection (c-10) to create an equity accountability
16  system, which includes the minimum equity standards for all
17  renewable energy procurements, the equity category of the
18  Adjustable Block Program, and the equity prioritization for
19  noncompetitive procurements, that is successful in advancing
20  priority access to the clean energy economy for businesses and
21  workers from communities that have been excluded from economic
22  opportunities in the energy sector, have been subject to
23  disproportionate levels of pollution, and have
24  disproportionately experienced negative public health
25  outcomes. Further, it is the purpose of this subsection to
26  ensure that this equity accountability system is successful in

 

 

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1  advancing equity across Illinois by providing access to the
2  clean energy economy for businesses and workers from
3  communities that have been historically excluded from economic
4  opportunities in the energy sector, have been subject to
5  disproportionate levels of pollution, and have
6  disproportionately experienced negative public health
7  outcomes.
8  (1) Minimum equity standards. The Agency shall create
9  programs with the purpose of increasing access to and
10  development of equity eligible contractors, who are prime
11  contractors and subcontractors, across all of the programs
12  it manages. All applications for renewable energy credit
13  procurements shall comply with specific minimum equity
14  commitments. Starting in the delivery year immediately
15  following the next long-term renewable resources
16  procurement plan, at least 10% of the project workforce
17  for each entity participating in a procurement program
18  outlined in this subsection (c-10) must be done by equity
19  eligible persons or equity eligible contractors. The
20  Agency shall increase the minimum percentage each delivery
21  year thereafter by increments that ensure a statewide
22  average of 30% of the project workforce for each entity
23  participating in a procurement program is done by equity
24  eligible persons or equity eligible contractors by 2030.
25  The Agency shall propose a schedule of percentage
26  increases to the minimum equity standards in its draft

 

 

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1  revised renewable energy resources procurement plan
2  submitted to the Commission for approval pursuant to
3  paragraph (5) of subsection (b) of Section 16-111.5 of the
4  Public Utilities Act. In determining these annual
5  increases, the Agency shall have the discretion to
6  establish different minimum equity standards for different
7  types of procurements and different regions of the State
8  if the Agency finds that doing so will further the
9  purposes of this subsection (c-10). The proposed schedule
10  of annual increases shall be revisited and updated on an
11  annual basis. Revisions shall be developed with
12  stakeholder input, including from equity eligible persons,
13  equity eligible contractors, clean energy industry
14  representatives, and community-based organizations that
15  work with such persons and contractors.
16  (A) At the start of each delivery year, the Agency
17  shall require a compliance plan from each entity
18  participating in a procurement program of subsection
19  (c) of this Section that demonstrates how they will
20  achieve compliance with the minimum equity standard
21  percentage for work completed in that delivery year.
22  If an entity applies for its approved vendor or
23  designee status between delivery years, the Agency
24  shall require a compliance plan at the time of
25  application.
26  (B) Halfway through each delivery year, the Agency

 

 

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1  shall require each entity participating in a
2  procurement program to confirm that it will achieve
3  compliance in that delivery year, when applicable. The
4  Agency may offer corrective action plans to entities
5  that are not on track to achieve compliance.
6  (C) At the end of each delivery year, each entity
7  participating and completing work in that delivery
8  year in a procurement program of subsection (c) shall
9  submit a report to the Agency that demonstrates how it
10  achieved compliance with the minimum equity standards
11  percentage for that delivery year.
12  (D) The Agency shall prohibit participation in
13  procurement programs by an approved vendor or
14  designee, as applicable, or entities with which an
15  approved vendor or designee, as applicable, shares a
16  common parent company if an approved vendor or
17  designee, as applicable, failed to meet the minimum
18  equity standards for the prior delivery year. Waivers
19  approved for lack of equity eligible persons or equity
20  eligible contractors in a geographic area of a project
21  shall not count against the approved vendor or
22  designee. The Agency shall offer a corrective action
23  plan for any such entities to assist them in obtaining
24  compliance and shall allow continued access to
25  procurement programs upon an approved vendor or
26  designee demonstrating compliance.

 

 

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1  (E) The Agency shall pursue efficiencies achieved
2  by combining with other approved vendor or designee
3  reporting.
4  (2) Equity accountability system within the Adjustable
5  Block program. The equity category described in item (vi)
6  of subparagraph (K) of subsection (c) is only available to
7  applicants that are equity eligible contractors.
8  (3) Equity accountability system within competitive
9  procurements. Through its long-term renewable resources
10  procurement plan, the Agency shall develop requirements
11  for ensuring that competitive procurement processes,
12  including utility-scale solar, utility-scale wind, and
13  brownfield site photovoltaic projects, advance the equity
14  goals of this subsection (c-10). Subject to Commission
15  approval, the Agency shall develop bid application
16  requirements and a bid evaluation methodology for ensuring
17  that utilization of equity eligible contractors, whether
18  as bidders or as participants on project development, is
19  optimized, including requiring that winning or successful
20  applicants for utility-scale projects are or will partner
21  with equity eligible contractors and giving preference to
22  bids through which a higher portion of contract value
23  flows to equity eligible contractors. To the extent
24  practicable, entities participating in competitive
25  procurements shall also be required to meet all the equity
26  accountability requirements for approved vendors and their

 

 

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1  designees under this subsection (c-10). In developing
2  these requirements, the Agency shall also consider whether
3  equity goals can be further advanced through additional
4  measures.
5  (4) In the first revision to the long-term renewable
6  energy resources procurement plan and each revision
7  thereafter, the Agency shall include the following:
8  (A) The current status and number of equity
9  eligible contractors listed in the Energy Workforce
10  Equity Database designed in subsection (c-25),
11  including the number of equity eligible contractors
12  with current certifications as issued by the Agency.
13  (B) A mechanism for measuring, tracking, and
14  reporting project workforce at the approved vendor or
15  designee level, as applicable, which shall include a
16  measurement methodology and records to be made
17  available for audit by the Agency or the Program
18  Administrator.
19  (C) A program for approved vendors, designees,
20  eligible persons, and equity eligible contractors to
21  receive trainings, guidance, and other support from
22  the Agency or its designee regarding the equity
23  category outlined in item (vi) of subparagraph (K) of
24  paragraph (1) of subsection (c) and in meeting the
25  minimum equity standards of this subsection (c-10).
26  (D) A process for certifying equity eligible

 

 

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1  contractors and equity eligible persons. The
2  certification process shall coordinate with the Energy
3  Workforce Equity Database set forth in subsection
4  (c-25).
5  (E) An application for waiver of the minimum
6  equity standards of this subsection, which the Agency
7  shall have the discretion to grant in rare
8  circumstances. The Agency may grant such a waiver
9  where the applicant provides evidence of significant
10  efforts toward meeting the minimum equity commitment,
11  including: use of the Energy Workforce Equity
12  Database; efforts to hire or contract with entities
13  that hire eligible persons; and efforts to establish
14  contracting relationships with eligible contractors.
15  The Agency shall support applicants in understanding
16  the Energy Workforce Equity Database and other
17  resources for pursuing compliance of the minimum
18  equity standards. Waivers shall be project-specific,
19  unless the Agency deems it necessary to grant a waiver
20  across a portfolio of projects, and in effect for no
21  longer than one year. Any waiver extension or
22  subsequent waiver request from an applicant shall be
23  subject to the requirements of this Section and shall
24  specify efforts made to reach compliance. When
25  considering whether to grant a waiver, and to what
26  extent, the Agency shall consider the degree to which

 

 

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1  similarly situated applicants have been able to meet
2  these minimum equity commitments. For repeated waiver
3  requests for specific lack of eligible persons or
4  eligible contractors available, the Agency shall make
5  recommendations to target recruitment to add such
6  eligible persons or eligible contractors to the
7  database.
8  (5) The Agency shall collect information about work on
9  projects or portfolios of projects subject to these
10  minimum equity standards to ensure compliance with this
11  subsection (c-10). Reporting in furtherance of this
12  requirement may be combined with other annual reporting
13  requirements. Such reporting shall include proof of
14  certification of each equity eligible contractor or equity
15  eligible person during the applicable time period.
16  (6) The Agency shall keep confidential all information
17  and communication that provides private or personal
18  information.
19  (7) Modifications to the equity accountability system.
20  As part of the update of the long-term renewable resources
21  procurement plan to be initiated in 2023, or sooner if the
22  Agency deems necessary, the Agency shall determine the
23  extent to which the equity accountability system described
24  in this subsection (c-10) has advanced the goals of this
25  amendatory Act of the 102nd General Assembly, including
26  through the inclusion of equity eligible persons and

 

 

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1  equity eligible contractors in renewable energy credit
2  projects. If the Agency finds that the equity
3  accountability system has failed to meet those goals to
4  its fullest potential, the Agency may revise the following
5  criteria for future Agency procurements: (A) the
6  percentage of project workforce, or other appropriate
7  workforce measure, certified as equity eligible persons or
8  equity eligible contractors; (B) definitions for equity
9  investment eligible persons and equity investment eligible
10  community; and (C) such other modifications necessary to
11  advance the goals of this amendatory Act of the 102nd
12  General Assembly effectively. Such revised criteria may
13  also establish distinct equity accountability systems for
14  different types of procurements or different regions of
15  the State if the Agency finds that doing so will further
16  the purposes of such programs. Revisions shall be
17  developed with stakeholder input, including from equity
18  eligible persons, equity eligible contractors, and
19  community-based organizations that work with such persons
20  and contractors.
21  (c-15) Racial discrimination elimination powers and
22  process.
23  (1) Purpose. It is the purpose of this subsection to
24  empower the Agency and other State actors to remedy racial
25  discrimination in Illinois' clean energy economy as
26  effectively and expediently as possible, including through

 

 

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1  the use of race-conscious remedies, such as race-conscious
2  contracting and hiring goals, as consistent with State and
3  federal law.
4  (2) Racial disparity and discrimination review
5  process.
6  (A) Within one year after awarding contracts using
7  the equity actions processes established in this
8  Section, the Agency shall publish a report evaluating
9  the effectiveness of the equity actions point criteria
10  of this Section in increasing participation of equity
11  eligible persons and equity eligible contractors. The
12  report shall disaggregate participating workers and
13  contractors by race and ethnicity. The report shall be
14  forwarded to the Governor, the General Assembly, and
15  the Illinois Commerce Commission and be made available
16  to the public.
17  (B) As soon as is practicable thereafter, the
18  Agency, in consultation with the Department of
19  Commerce and Economic Opportunity, Department of
20  Labor, and other agencies that may be relevant, shall
21  commission and publish a disparity and availability
22  study that measures the presence and impact of
23  discrimination on minority businesses and workers in
24  Illinois' clean energy economy. The Agency may hire
25  consultants and experts to conduct the disparity and
26  availability study, with the retention of those

 

 

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1  consultants and experts exempt from the requirements
2  of Section 20-10 of the Illinois Procurement Code. The
3  Illinois Power Agency shall forward a copy of its
4  findings and recommendations to the Governor, the
5  General Assembly, and the Illinois Commerce
6  Commission. If the disparity and availability study
7  establishes a strong basis in evidence that there is
8  discrimination in Illinois' clean energy economy, the
9  Agency, Department of Commerce and Economic
10  Opportunity, Department of Labor, Department of
11  Corrections, and other appropriate agencies shall take
12  appropriate remedial actions, including race-conscious
13  remedial actions as consistent with State and federal
14  law, to effectively remedy this discrimination. Such
15  remedies may include modification of the equity
16  accountability system as described in subsection
17  (c-10).
18  (c-20) Program data collection.
19  (1) Purpose. Data collection, data analysis, and
20  reporting are critical to ensure that the benefits of the
21  clean energy economy provided to Illinois residents and
22  businesses are equitably distributed across the State. The
23  Agency shall collect data from program applicants in order
24  to track and improve equitable distribution of benefits
25  across Illinois communities for all procurements the
26  Agency conducts. The Agency shall use this data to, among

 

 

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1  other things, measure any potential impact of racial
2  discrimination on the distribution of benefits and provide
3  information necessary to correct any discrimination
4  through methods consistent with State and federal law.
5  (2) Agency collection of program data. The Agency
6  shall collect demographic and geographic data for each
7  entity awarded contracts under any Agency-administered
8  program.
9  (3) Required information to be collected. The Agency
10  shall collect the following information from applicants
11  and program participants where applicable:
12  (A) demographic information, including racial or
13  ethnic identity for real persons employed, contracted,
14  or subcontracted through the program and owners of
15  businesses or entities that apply to receive renewable
16  energy credits from the Agency;
17  (B) geographic location of the residency of real
18  persons employed, contracted, or subcontracted through
19  the program and geographic location of the
20  headquarters of the business or entity that applies to
21  receive renewable energy credits from the Agency; and
22  (C) any other information the Agency determines is
23  necessary for the purpose of achieving the purpose of
24  this subsection.
25  (4) Publication of collected information. The Agency
26  shall publish, at least annually, information on the

 

 

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1  demographics of program participants on an aggregate
2  basis.
3  (5) Nothing in this subsection shall be interpreted to
4  limit the authority of the Agency, or other agency or
5  department of the State, to require or collect demographic
6  information from applicants of other State programs.
7  (c-25) Energy Workforce Equity Database.
8  (1) The Agency, in consultation with the Department of
9  Commerce and Economic Opportunity, shall create an Energy
10  Workforce Equity Database, and may contract with a third
11  party to do so ("database program administrator"). If the
12  Department decides to contract with a third party, that
13  third party shall be exempt from the requirements of
14  Section 20-10 of the Illinois Procurement Code. The Energy
15  Workforce Equity Database shall be a searchable database
16  of suppliers, vendors, and subcontractors for clean energy
17  industries that is:
18  (A) publicly accessible;
19  (B) easy for people to find and use;
20  (C) organized by company specialty or field;
21  (D) region-specific; and
22  (E) populated with information including, but not
23  limited to, contacts for suppliers, vendors, or
24  subcontractors who are minority and women-owned
25  business enterprise certified or who participate or
26  have participated in any of the programs described in

 

 

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1  this Act.
2  (2) The Agency shall create an easily accessible,
3  public facing online tool using the database information
4  that includes, at a minimum, the following:
5  (A) a map of environmental justice and equity
6  investment eligible communities;
7  (B) job postings and recruiting opportunities;
8  (C) a means by which recruiting clean energy
9  companies can find and interact with current or former
10  participants of clean energy workforce training
11  programs;
12  (D) information on workforce training service
13  providers and training opportunities available to
14  prospective workers;
15  (E) renewable energy company diversity reporting;
16  (F) a list of equity eligible contractors with
17  their contact information, types of work performed,
18  and locations worked in;
19  (G) reporting on outcomes of the programs
20  described in the workforce programs of the Energy
21  Transition Act, including information such as, but not
22  limited to, retention rate, graduation rate, and
23  placement rates of trainees; and
24  (H) information about the Jobs and Environmental
25  Justice Grant Program, the Clean Energy Jobs and
26  Justice Fund, and other sources of capital.

 

 

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1  (3) The Agency shall ensure the database is regularly
2  updated to ensure information is current and shall
3  coordinate with the Department of Commerce and Economic
4  Opportunity to ensure that it includes information on
5  individuals and entities that are or have participated in
6  the Clean Jobs Workforce Network Program, Clean Energy
7  Contractor Incubator Program, Returning Residents Clean
8  Jobs Training Program, or Clean Energy Primes Contractor
9  Accelerator Program.
10  (c-30) Enforcement of minimum equity standards. All
11  entities seeking renewable energy credits must submit an
12  annual report to demonstrate compliance with each of the
13  equity commitments required under subsection (c-10). If the
14  Agency concludes the entity has not met or maintained its
15  minimum equity standards required under the applicable
16  subparagraphs under subsection (c-10), the Agency shall deny
17  the entity's ability to participate in procurement programs in
18  subsection (c), including by withholding approved vendor or
19  designee status. The Agency may require the entity to enter
20  into a corrective action plan. An entity that is not
21  recertified for failing to meet required equity actions in
22  subparagraph (c-10) may reapply once they have a corrective
23  action plan and achieve compliance with the minimum equity
24  standards.
25  (d) Clean coal portfolio standard.
26  (1) The procurement plans shall include electricity

 

 

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1  generated using clean coal. Each utility shall enter into
2  one or more sourcing agreements with the initial clean
3  coal facility, as provided in paragraph (3) of this
4  subsection (d), covering electricity generated by the
5  initial clean coal facility representing at least 5% of
6  each utility's total supply to serve the load of eligible
7  retail customers in 2015 and each year thereafter, as
8  described in paragraph (3) of this subsection (d), subject
9  to the limits specified in paragraph (2) of this
10  subsection (d). It is the goal of the State that by January
11  1, 2025, 25% of the electricity used in the State shall be
12  generated by cost-effective clean coal facilities. For
13  purposes of this subsection (d), "cost-effective" means
14  that the expenditures pursuant to such sourcing agreements
15  do not cause the limit stated in paragraph (2) of this
16  subsection (d) to be exceeded and do not exceed cost-based
17  benchmarks, which shall be developed to assess all
18  expenditures pursuant to such sourcing agreements covering
19  electricity generated by clean coal facilities, other than
20  the initial clean coal facility, by the procurement
21  administrator, in consultation with the Commission staff,
22  Agency staff, and the procurement monitor and shall be
23  subject to Commission review and approval.
24  A utility party to a sourcing agreement shall
25  immediately retire any emission credits that it receives
26  in connection with the electricity covered by such

 

 

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1  agreement.
2  Utilities shall maintain adequate records documenting
3  the purchases under the sourcing agreement to comply with
4  this subsection (d) and shall file an accounting with the
5  load forecast that must be filed with the Agency by July 15
6  of each year, in accordance with subsection (d) of Section
7  16-111.5 of the Public Utilities Act.
8  A utility shall be deemed to have complied with the
9  clean coal portfolio standard specified in this subsection
10  (d) if the utility enters into a sourcing agreement as
11  required by this subsection (d).
12  (2) For purposes of this subsection (d), the required
13  execution of sourcing agreements with the initial clean
14  coal facility for a particular year shall be measured as a
15  percentage of the actual amount of electricity
16  (megawatt-hours) supplied by the electric utility to
17  eligible retail customers in the planning year ending
18  immediately prior to the agreement's execution. For
19  purposes of this subsection (d), the amount paid per
20  kilowatthour means the total amount paid for electric
21  service expressed on a per kilowatthour basis. For
22  purposes of this subsection (d), the total amount paid for
23  electric service includes without limitation amounts paid
24  for supply, transmission, distribution, surcharges and
25  add-on taxes.
26  Notwithstanding the requirements of this subsection

 

 

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1  (d), the total amount paid under sourcing agreements with
2  clean coal facilities pursuant to the procurement plan for
3  any given year shall be reduced by an amount necessary to
4  limit the annual estimated average net increase due to the
5  costs of these resources included in the amounts paid by
6  eligible retail customers in connection with electric
7  service to:
8  (A) in 2010, no more than 0.5% of the amount paid
9  per kilowatthour by those customers during the year
10  ending May 31, 2009;
11  (B) in 2011, the greater of an additional 0.5% of
12  the amount paid per kilowatthour by those customers
13  during the year ending May 31, 2010 or 1% of the amount
14  paid per kilowatthour by those customers during the
15  year ending May 31, 2009;
16  (C) in 2012, the greater of an additional 0.5% of
17  the amount paid per kilowatthour by those customers
18  during the year ending May 31, 2011 or 1.5% of the
19  amount paid per kilowatthour by those customers during
20  the year ending May 31, 2009;
21  (D) in 2013, the greater of an additional 0.5% of
22  the amount paid per kilowatthour by those customers
23  during the year ending May 31, 2012 or 2% of the amount
24  paid per kilowatthour by those customers during the
25  year ending May 31, 2009; and
26  (E) thereafter, the total amount paid under

 

 

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1  sourcing agreements with clean coal facilities
2  pursuant to the procurement plan for any single year
3  shall be reduced by an amount necessary to limit the
4  estimated average net increase due to the cost of
5  these resources included in the amounts paid by
6  eligible retail customers in connection with electric
7  service to no more than the greater of (i) 2.015% of
8  the amount paid per kilowatthour by those customers
9  during the year ending May 31, 2009 or (ii) the
10  incremental amount per kilowatthour paid for these
11  resources in 2013. These requirements may be altered
12  only as provided by statute.
13  No later than June 30, 2015, the Commission shall
14  review the limitation on the total amount paid under
15  sourcing agreements, if any, with clean coal facilities
16  pursuant to this subsection (d) and report to the General
17  Assembly its findings as to whether that limitation unduly
18  constrains the amount of electricity generated by
19  cost-effective clean coal facilities that is covered by
20  sourcing agreements.
21  (3) Initial clean coal facility. In order to promote
22  development of clean coal facilities in Illinois, each
23  electric utility subject to this Section shall execute a
24  sourcing agreement to source electricity from a proposed
25  clean coal facility in Illinois (the "initial clean coal
26  facility") that will have a nameplate capacity of at least

 

 

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1  500 MW when commercial operation commences, that has a
2  final Clean Air Act permit on June 1, 2009 (the effective
3  date of Public Act 95-1027), and that will meet the
4  definition of clean coal facility in Section 1-10 of this
5  Act when commercial operation commences. The sourcing
6  agreements with this initial clean coal facility shall be
7  subject to both approval of the initial clean coal
8  facility by the General Assembly and satisfaction of the
9  requirements of paragraph (4) of this subsection (d) and
10  shall be executed within 90 days after any such approval
11  by the General Assembly. The Agency and the Commission
12  shall have authority to inspect all books and records
13  associated with the initial clean coal facility during the
14  term of such a sourcing agreement. A utility's sourcing
15  agreement for electricity produced by the initial clean
16  coal facility shall include:
17  (A) a formula contractual price (the "contract
18  price") approved pursuant to paragraph (4) of this
19  subsection (d), which shall:
20  (i) be determined using a cost of service
21  methodology employing either a level or deferred
22  capital recovery component, based on a capital
23  structure consisting of 45% equity and 55% debt,
24  and a return on equity as may be approved by the
25  Federal Energy Regulatory Commission, which in any
26  case may not exceed the lower of 11.5% or the rate

 

 

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1  of return approved by the General Assembly
2  pursuant to paragraph (4) of this subsection (d);
3  and
4  (ii) provide that all miscellaneous net
5  revenue, including but not limited to net revenue
6  from the sale of emission allowances, if any,
7  substitute natural gas, if any, grants or other
8  support provided by the State of Illinois or the
9  United States Government, firm transmission
10  rights, if any, by-products produced by the
11  facility, energy or capacity derived from the
12  facility and not covered by a sourcing agreement
13  pursuant to paragraph (3) of this subsection (d)
14  or item (5) of subsection (d) of Section 16-115 of
15  the Public Utilities Act, whether generated from
16  the synthesis gas derived from coal, from SNG, or
17  from natural gas, shall be credited against the
18  revenue requirement for this initial clean coal
19  facility;
20  (B) power purchase provisions, which shall:
21  (i) provide that the utility party to such
22  sourcing agreement shall pay the contract price
23  for electricity delivered under such sourcing
24  agreement;
25  (ii) require delivery of electricity to the
26  regional transmission organization market of the

 

 

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1  utility that is party to such sourcing agreement;
2  (iii) require the utility party to such
3  sourcing agreement to buy from the initial clean
4  coal facility in each hour an amount of energy
5  equal to all clean coal energy made available from
6  the initial clean coal facility during such hour
7  times a fraction, the numerator of which is such
8  utility's retail market sales of electricity
9  (expressed in kilowatthours sold) in the State
10  during the prior calendar month and the
11  denominator of which is the total retail market
12  sales of electricity (expressed in kilowatthours
13  sold) in the State by utilities during such prior
14  month and the sales of electricity (expressed in
15  kilowatthours sold) in the State by alternative
16  retail electric suppliers during such prior month
17  that are subject to the requirements of this
18  subsection (d) and paragraph (5) of subsection (d)
19  of Section 16-115 of the Public Utilities Act,
20  provided that the amount purchased by the utility
21  in any year will be limited by paragraph (2) of
22  this subsection (d); and
23  (iv) be considered pre-existing contracts in
24  such utility's procurement plans for eligible
25  retail customers;
26  (C) contract for differences provisions, which

 

 

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1  shall:
2  (i) require the utility party to such sourcing
3  agreement to contract with the initial clean coal
4  facility in each hour with respect to an amount of
5  energy equal to all clean coal energy made
6  available from the initial clean coal facility
7  during such hour times a fraction, the numerator
8  of which is such utility's retail market sales of
9  electricity (expressed in kilowatthours sold) in
10  the utility's service territory in the State
11  during the prior calendar month and the
12  denominator of which is the total retail market
13  sales of electricity (expressed in kilowatthours
14  sold) in the State by utilities during such prior
15  month and the sales of electricity (expressed in
16  kilowatthours sold) in the State by alternative
17  retail electric suppliers during such prior month
18  that are subject to the requirements of this
19  subsection (d) and paragraph (5) of subsection (d)
20  of Section 16-115 of the Public Utilities Act,
21  provided that the amount paid by the utility in
22  any year will be limited by paragraph (2) of this
23  subsection (d);
24  (ii) provide that the utility's payment
25  obligation in respect of the quantity of
26  electricity determined pursuant to the preceding

 

 

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1  clause (i) shall be limited to an amount equal to
2  (1) the difference between the contract price
3  determined pursuant to subparagraph (A) of
4  paragraph (3) of this subsection (d) and the
5  day-ahead price for electricity delivered to the
6  regional transmission organization market of the
7  utility that is party to such sourcing agreement
8  (or any successor delivery point at which such
9  utility's supply obligations are financially
10  settled on an hourly basis) (the "reference
11  price") on the day preceding the day on which the
12  electricity is delivered to the initial clean coal
13  facility busbar, multiplied by (2) the quantity of
14  electricity determined pursuant to the preceding
15  clause (i); and
16  (iii) not require the utility to take physical
17  delivery of the electricity produced by the
18  facility;
19  (D) general provisions, which shall:
20  (i) specify a term of no more than 30 years,
21  commencing on the commercial operation date of the
22  facility;
23  (ii) provide that utilities shall maintain
24  adequate records documenting purchases under the
25  sourcing agreements entered into to comply with
26  this subsection (d) and shall file an accounting

 

 

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1  with the load forecast that must be filed with the
2  Agency by July 15 of each year, in accordance with
3  subsection (d) of Section 16-111.5 of the Public
4  Utilities Act;
5  (iii) provide that all costs associated with
6  the initial clean coal facility will be
7  periodically reported to the Federal Energy
8  Regulatory Commission and to purchasers in
9  accordance with applicable laws governing
10  cost-based wholesale power contracts;
11  (iv) permit the Illinois Power Agency to
12  assume ownership of the initial clean coal
13  facility, without monetary consideration and
14  otherwise on reasonable terms acceptable to the
15  Agency, if the Agency so requests no less than 3
16  years prior to the end of the stated contract
17  term;
18  (v) require the owner of the initial clean
19  coal facility to provide documentation to the
20  Commission each year, starting in the facility's
21  first year of commercial operation, accurately
22  reporting the quantity of carbon emissions from
23  the facility that have been captured and
24  sequestered and report any quantities of carbon
25  released from the site or sites at which carbon
26  emissions were sequestered in prior years, based

 

 

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1  on continuous monitoring of such sites. If, in any
2  year after the first year of commercial operation,
3  the owner of the facility fails to demonstrate
4  that the initial clean coal facility captured and
5  sequestered at least 50% of the total carbon
6  emissions that the facility would otherwise emit
7  or that sequestration of emissions from prior
8  years has failed, resulting in the release of
9  carbon dioxide into the atmosphere, the owner of
10  the facility must offset excess emissions. Any
11  such carbon offsets must be permanent, additional,
12  verifiable, real, located within the State of
13  Illinois, and legally and practicably enforceable.
14  The cost of such offsets for the facility that are
15  not recoverable shall not exceed $15 million in
16  any given year. No costs of any such purchases of
17  carbon offsets may be recovered from a utility or
18  its customers. All carbon offsets purchased for
19  this purpose and any carbon emission credits
20  associated with sequestration of carbon from the
21  facility must be permanently retired. The initial
22  clean coal facility shall not forfeit its
23  designation as a clean coal facility if the
24  facility fails to fully comply with the applicable
25  carbon sequestration requirements in any given
26  year, provided the requisite offsets are

 

 

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1  purchased. However, the Attorney General, on
2  behalf of the People of the State of Illinois, may
3  specifically enforce the facility's sequestration
4  requirement and the other terms of this contract
5  provision. Compliance with the sequestration
6  requirements and offset purchase requirements
7  specified in paragraph (3) of this subsection (d)
8  shall be reviewed annually by an independent
9  expert retained by the owner of the initial clean
10  coal facility, with the advance written approval
11  of the Attorney General. The Commission may, in
12  the course of the review specified in item (vii),
13  reduce the allowable return on equity for the
14  facility if the facility willfully fails to comply
15  with the carbon capture and sequestration
16  requirements set forth in this item (v);
17  (vi) include limits on, and accordingly
18  provide for modification of, the amount the
19  utility is required to source under the sourcing
20  agreement consistent with paragraph (2) of this
21  subsection (d);
22  (vii) require Commission review: (1) to
23  determine the justness, reasonableness, and
24  prudence of the inputs to the formula referenced
25  in subparagraphs (A)(i) through (A)(iii) of
26  paragraph (3) of this subsection (d), prior to an

 

 

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1  adjustment in those inputs including, without
2  limitation, the capital structure and return on
3  equity, fuel costs, and other operations and
4  maintenance costs and (2) to approve the costs to
5  be passed through to customers under the sourcing
6  agreement by which the utility satisfies its
7  statutory obligations. Commission review shall
8  occur no less than every 3 years, regardless of
9  whether any adjustments have been proposed, and
10  shall be completed within 9 months;
11  (viii) limit the utility's obligation to such
12  amount as the utility is allowed to recover
13  through tariffs filed with the Commission,
14  provided that neither the clean coal facility nor
15  the utility waives any right to assert federal
16  pre-emption or any other argument in response to a
17  purported disallowance of recovery costs;
18  (ix) limit the utility's or alternative retail
19  electric supplier's obligation to incur any
20  liability until such time as the facility is in
21  commercial operation and generating power and
22  energy and such power and energy is being
23  delivered to the facility busbar;
24  (x) provide that the owner or owners of the
25  initial clean coal facility, which is the
26  counterparty to such sourcing agreement, shall

 

 

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1  have the right from time to time to elect whether
2  the obligations of the utility party thereto shall
3  be governed by the power purchase provisions or
4  the contract for differences provisions;
5  (xi) append documentation showing that the
6  formula rate and contract, insofar as they relate
7  to the power purchase provisions, have been
8  approved by the Federal Energy Regulatory
9  Commission pursuant to Section 205 of the Federal
10  Power Act;
11  (xii) provide that any changes to the terms of
12  the contract, insofar as such changes relate to
13  the power purchase provisions, are subject to
14  review under the public interest standard applied
15  by the Federal Energy Regulatory Commission
16  pursuant to Sections 205 and 206 of the Federal
17  Power Act; and
18  (xiii) conform with customary lender
19  requirements in power purchase agreements used as
20  the basis for financing non-utility generators.
21  (4) Effective date of sourcing agreements with the
22  initial clean coal facility. Any proposed sourcing
23  agreement with the initial clean coal facility shall not
24  become effective unless the following reports are prepared
25  and submitted and authorizations and approvals obtained:
26  (i) Facility cost report. The owner of the initial

 

 

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1  clean coal facility shall submit to the Commission,
2  the Agency, and the General Assembly a front-end
3  engineering and design study, a facility cost report,
4  method of financing (including but not limited to
5  structure and associated costs), and an operating and
6  maintenance cost quote for the facility (collectively
7  "facility cost report"), which shall be prepared in
8  accordance with the requirements of this paragraph (4)
9  of subsection (d) of this Section, and shall provide
10  the Commission and the Agency access to the work
11  papers, relied upon documents, and any other backup
12  documentation related to the facility cost report.
13  (ii) Commission report. Within 6 months following
14  receipt of the facility cost report, the Commission,
15  in consultation with the Agency, shall submit a report
16  to the General Assembly setting forth its analysis of
17  the facility cost report. Such report shall include,
18  but not be limited to, a comparison of the costs
19  associated with electricity generated by the initial
20  clean coal facility to the costs associated with
21  electricity generated by other types of generation
22  facilities, an analysis of the rate impacts on
23  residential and small business customers over the life
24  of the sourcing agreements, and an analysis of the
25  likelihood that the initial clean coal facility will
26  commence commercial operation by and be delivering

 

 

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1  power to the facility's busbar by 2016. To assist in
2  the preparation of its report, the Commission, in
3  consultation with the Agency, may hire one or more
4  experts or consultants, the costs of which shall be
5  paid for by the owner of the initial clean coal
6  facility. The Commission and Agency may begin the
7  process of selecting such experts or consultants prior
8  to receipt of the facility cost report.
9  (iii) General Assembly approval. The proposed
10  sourcing agreements shall not take effect unless,
11  based on the facility cost report and the Commission's
12  report, the General Assembly enacts authorizing
13  legislation approving (A) the projected price, stated
14  in cents per kilowatthour, to be charged for
15  electricity generated by the initial clean coal
16  facility, (B) the projected impact on residential and
17  small business customers' bills over the life of the
18  sourcing agreements, and (C) the maximum allowable
19  return on equity for the project; and
20  (iv) Commission review. If the General Assembly
21  enacts authorizing legislation pursuant to
22  subparagraph (iii) approving a sourcing agreement, the
23  Commission shall, within 90 days of such enactment,
24  complete a review of such sourcing agreement. During
25  such time period, the Commission shall implement any
26  directive of the General Assembly, resolve any

 

 

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1  disputes between the parties to the sourcing agreement
2  concerning the terms of such agreement, approve the
3  form of such agreement, and issue an order finding
4  that the sourcing agreement is prudent and reasonable.
5  The facility cost report shall be prepared as follows:
6  (A) The facility cost report shall be prepared by
7  duly licensed engineering and construction firms
8  detailing the estimated capital costs payable to one
9  or more contractors or suppliers for the engineering,
10  procurement and construction of the components
11  comprising the initial clean coal facility and the
12  estimated costs of operation and maintenance of the
13  facility. The facility cost report shall include:
14  (i) an estimate of the capital cost of the
15  core plant based on one or more front end
16  engineering and design studies for the
17  gasification island and related facilities. The
18  core plant shall include all civil, structural,
19  mechanical, electrical, control, and safety
20  systems.
21  (ii) an estimate of the capital cost of the
22  balance of the plant, including any capital costs
23  associated with sequestration of carbon dioxide
24  emissions and all interconnects and interfaces
25  required to operate the facility, such as
26  transmission of electricity, construction or

 

 

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1  backfeed power supply, pipelines to transport
2  substitute natural gas or carbon dioxide, potable
3  water supply, natural gas supply, water supply,
4  water discharge, landfill, access roads, and coal
5  delivery.
6  The quoted construction costs shall be expressed
7  in nominal dollars as of the date that the quote is
8  prepared and shall include capitalized financing costs
9  during construction, taxes, insurance, and other
10  owner's costs, and an assumed escalation in materials
11  and labor beyond the date as of which the construction
12  cost quote is expressed.
13  (B) The front end engineering and design study for
14  the gasification island and the cost study for the
15  balance of plant shall include sufficient design work
16  to permit quantification of major categories of
17  materials, commodities and labor hours, and receipt of
18  quotes from vendors of major equipment required to
19  construct and operate the clean coal facility.
20  (C) The facility cost report shall also include an
21  operating and maintenance cost quote that will provide
22  the estimated cost of delivered fuel, personnel,
23  maintenance contracts, chemicals, catalysts,
24  consumables, spares, and other fixed and variable
25  operations and maintenance costs. The delivered fuel
26  cost estimate will be provided by a recognized third

 

 

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1  party expert or experts in the fuel and transportation
2  industries. The balance of the operating and
3  maintenance cost quote, excluding delivered fuel
4  costs, will be developed based on the inputs provided
5  by duly licensed engineering and construction firms
6  performing the construction cost quote, potential
7  vendors under long-term service agreements and plant
8  operating agreements, or recognized third party plant
9  operator or operators.
10  The operating and maintenance cost quote
11  (including the cost of the front end engineering and
12  design study) shall be expressed in nominal dollars as
13  of the date that the quote is prepared and shall
14  include taxes, insurance, and other owner's costs, and
15  an assumed escalation in materials and labor beyond
16  the date as of which the operating and maintenance
17  cost quote is expressed.
18  (D) The facility cost report shall also include an
19  analysis of the initial clean coal facility's ability
20  to deliver power and energy into the applicable
21  regional transmission organization markets and an
22  analysis of the expected capacity factor for the
23  initial clean coal facility.
24  (E) Amounts paid to third parties unrelated to the
25  owner or owners of the initial clean coal facility to
26  prepare the core plant construction cost quote,

 

 

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1  including the front end engineering and design study,
2  and the operating and maintenance cost quote will be
3  reimbursed through Coal Development Bonds.
4  (5) Re-powering and retrofitting coal-fired power
5  plants previously owned by Illinois utilities to qualify
6  as clean coal facilities. During the 2009 procurement
7  planning process and thereafter, the Agency and the
8  Commission shall consider sourcing agreements covering
9  electricity generated by power plants that were previously
10  owned by Illinois utilities and that have been or will be
11  converted into clean coal facilities, as defined by
12  Section 1-10 of this Act. Pursuant to such procurement
13  planning process, the owners of such facilities may
14  propose to the Agency sourcing agreements with utilities
15  and alternative retail electric suppliers required to
16  comply with subsection (d) of this Section and item (5) of
17  subsection (d) of Section 16-115 of the Public Utilities
18  Act, covering electricity generated by such facilities. In
19  the case of sourcing agreements that are power purchase
20  agreements, the contract price for electricity sales shall
21  be established on a cost of service basis. In the case of
22  sourcing agreements that are contracts for differences,
23  the contract price from which the reference price is
24  subtracted shall be established on a cost of service
25  basis. The Agency and the Commission may approve any such
26  utility sourcing agreements that do not exceed cost-based

 

 

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1  benchmarks developed by the procurement administrator, in
2  consultation with the Commission staff, Agency staff and
3  the procurement monitor, subject to Commission review and
4  approval. The Commission shall have authority to inspect
5  all books and records associated with these clean coal
6  facilities during the term of any such contract.
7  (6) Costs incurred under this subsection (d) or
8  pursuant to a contract entered into under this subsection
9  (d) shall be deemed prudently incurred and reasonable in
10  amount and the electric utility shall be entitled to full
11  cost recovery pursuant to the tariffs filed with the
12  Commission.
13  (d-5) Zero emission standard.
14  (1) Beginning with the delivery year commencing on
15  June 1, 2017, the Agency shall, for electric utilities
16  that serve at least 100,000 retail customers in this
17  State, procure contracts with zero emission facilities
18  that are reasonably capable of generating cost-effective
19  zero emission credits in an amount approximately equal to
20  16% of the actual amount of electricity delivered by each
21  electric utility to retail customers in the State during
22  calendar year 2014. For an electric utility serving fewer
23  than 100,000 retail customers in this State that
24  requested, under Section 16-111.5 of the Public Utilities
25  Act, that the Agency procure power and energy for all or a
26  portion of the utility's Illinois load for the delivery

 

 

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1  year commencing June 1, 2016, the Agency shall procure
2  contracts with zero emission facilities that are
3  reasonably capable of generating cost-effective zero
4  emission credits in an amount approximately equal to 16%
5  of the portion of power and energy to be procured by the
6  Agency for the utility. The duration of the contracts
7  procured under this subsection (d-5) shall be for a term
8  of 10 years ending May 31, 2027. The quantity of zero
9  emission credits to be procured under the contracts shall
10  be all of the zero emission credits generated by the zero
11  emission facility in each delivery year; however, if the
12  zero emission facility is owned by more than one entity,
13  then the quantity of zero emission credits to be procured
14  under the contracts shall be the amount of zero emission
15  credits that are generated from the portion of the zero
16  emission facility that is owned by the winning supplier.
17  The 16% value identified in this paragraph (1) is the
18  average of the percentage targets in subparagraph (B) of
19  paragraph (1) of subsection (c) of this Section for the 5
20  delivery years beginning June 1, 2017.
21  The procurement process shall be subject to the
22  following provisions:
23  (A) Those zero emission facilities that intend to
24  participate in the procurement shall submit to the
25  Agency the following eligibility information for each
26  zero emission facility on or before the date

 

 

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1  established by the Agency:
2  (i) the in-service date and remaining useful
3  life of the zero emission facility;
4  (ii) the amount of power generated annually
5  for each of the years 2005 through 2015, and the
6  projected zero emission credits to be generated
7  over the remaining useful life of the zero
8  emission facility, which shall be used to
9  determine the capability of each facility;
10  (iii) the annual zero emission facility cost
11  projections, expressed on a per megawatthour
12  basis, over the next 6 delivery years, which shall
13  include the following: operation and maintenance
14  expenses; fully allocated overhead costs, which
15  shall be allocated using the methodology developed
16  by the Institute for Nuclear Power Operations;
17  fuel expenditures; non-fuel capital expenditures;
18  spent fuel expenditures; a return on working
19  capital; the cost of operational and market risks
20  that could be avoided by ceasing operation; and
21  any other costs necessary for continued
22  operations, provided that "necessary" means, for
23  purposes of this item (iii), that the costs could
24  reasonably be avoided only by ceasing operations
25  of the zero emission facility; and
26  (iv) a commitment to continue operating, for

 

 

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1  the duration of the contract or contracts executed
2  under the procurement held under this subsection
3  (d-5), the zero emission facility that produces
4  the zero emission credits to be procured in the
5  procurement.
6  The information described in item (iii) of this
7  subparagraph (A) may be submitted on a confidential
8  basis and shall be treated and maintained by the
9  Agency, the procurement administrator, and the
10  Commission as confidential and proprietary and exempt
11  from disclosure under subparagraphs (a) and (g) of
12  paragraph (1) of Section 7 of the Freedom of
13  Information Act. The Office of Attorney General shall
14  have access to, and maintain the confidentiality of,
15  such information pursuant to Section 6.5 of the
16  Attorney General Act.
17  (B) The price for each zero emission credit
18  procured under this subsection (d-5) for each delivery
19  year shall be in an amount that equals the Social Cost
20  of Carbon, expressed on a price per megawatthour
21  basis. However, to ensure that the procurement remains
22  affordable to retail customers in this State if
23  electricity prices increase, the price in an
24  applicable delivery year shall be reduced below the
25  Social Cost of Carbon by the amount ("Price
26  Adjustment") by which the market price index for the

 

 

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1  applicable delivery year exceeds the baseline market
2  price index for the consecutive 12-month period ending
3  May 31, 2016. If the Price Adjustment is greater than
4  or equal to the Social Cost of Carbon in an applicable
5  delivery year, then no payments shall be due in that
6  delivery year. The components of this calculation are
7  defined as follows:
8  (i) Social Cost of Carbon: The Social Cost of
9  Carbon is $16.50 per megawatthour, which is based
10  on the U.S. Interagency Working Group on Social
11  Cost of Carbon's price in the August 2016
12  Technical Update using a 3% discount rate,
13  adjusted for inflation for each year of the
14  program. Beginning with the delivery year
15  commencing June 1, 2023, the price per
16  megawatthour shall increase by $1 per
17  megawatthour, and continue to increase by an
18  additional $1 per megawatthour each delivery year
19  thereafter.
20  (ii) Baseline market price index: The baseline
21  market price index for the consecutive 12-month
22  period ending May 31, 2016 is $31.40 per
23  megawatthour, which is based on the sum of (aa)
24  the average day-ahead energy price across all
25  hours of such 12-month period at the PJM
26  Interconnection LLC Northern Illinois Hub, (bb)

 

 

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1  50% multiplied by the Base Residual Auction, or
2  its successor, capacity price for the rest of the
3  RTO zone group determined by PJM Interconnection
4  LLC, divided by 24 hours per day, and (cc) 50%
5  multiplied by the Planning Resource Auction, or
6  its successor, capacity price for Zone 4
7  determined by the Midcontinent Independent System
8  Operator, Inc., divided by 24 hours per day.
9  (iii) Market price index: The market price
10  index for a delivery year shall be the sum of
11  projected energy prices and projected capacity
12  prices determined as follows:
13  (aa) Projected energy prices: the
14  projected energy prices for the applicable
15  delivery year shall be calculated once for the
16  year using the forward market price for the
17  PJM Interconnection, LLC Northern Illinois
18  Hub. The forward market price shall be
19  calculated as follows: the energy forward
20  prices for each month of the applicable
21  delivery year averaged for each trade date
22  during the calendar year immediately preceding
23  that delivery year to produce a single energy
24  forward price for the delivery year. The
25  forward market price calculation shall use
26  data published by the Intercontinental

 

 

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1  Exchange, or its successor.
2  (bb) Projected capacity prices:
3  (I) For the delivery years commencing
4  June 1, 2017, June 1, 2018, and June 1,
5  2019, the projected capacity price shall
6  be equal to the sum of (1) 50% multiplied
7  by the Base Residual Auction, or its
8  successor, price for the rest of the RTO
9  zone group as determined by PJM
10  Interconnection LLC, divided by 24 hours
11  per day and, (2) 50% multiplied by the
12  resource auction price determined in the
13  resource auction administered by the
14  Midcontinent Independent System Operator,
15  Inc., in which the largest percentage of
16  load cleared for Local Resource Zone 4,
17  divided by 24 hours per day, and where
18  such price is determined by the
19  Midcontinent Independent System Operator,
20  Inc.
21  (II) For the delivery year commencing
22  June 1, 2020, and each year thereafter,
23  the projected capacity price shall be
24  equal to the sum of (1) 50% multiplied by
25  the Base Residual Auction, or its
26  successor, price for the ComEd zone as

 

 

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1  determined by PJM Interconnection LLC,
2  divided by 24 hours per day, and (2) 50%
3  multiplied by the resource auction price
4  determined in the resource auction
5  administered by the Midcontinent
6  Independent System Operator, Inc., in
7  which the largest percentage of load
8  cleared for Local Resource Zone 4, divided
9  by 24 hours per day, and where such price
10  is determined by the Midcontinent
11  Independent System Operator, Inc.
12  For purposes of this subsection (d-5):
13  "Rest of the RTO" and "ComEd Zone" shall have
14  the meaning ascribed to them by PJM
15  Interconnection, LLC.
16  "RTO" means regional transmission
17  organization.
18  (C) No later than 45 days after June 1, 2017 (the
19  effective date of Public Act 99-906), the Agency shall
20  publish its proposed zero emission standard
21  procurement plan. The plan shall be consistent with
22  the provisions of this paragraph (1) and shall provide
23  that winning bids shall be selected based on public
24  interest criteria that include, but are not limited
25  to, minimizing carbon dioxide emissions that result
26  from electricity consumed in Illinois and minimizing

 

 

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1  sulfur dioxide, nitrogen oxide, and particulate matter
2  emissions that adversely affect the citizens of this
3  State. In particular, the selection of winning bids
4  shall take into account the incremental environmental
5  benefits resulting from the procurement, such as any
6  existing environmental benefits that are preserved by
7  the procurements held under Public Act 99-906 and
8  would cease to exist if the procurements were not
9  held, including the preservation of zero emission
10  facilities. The plan shall also describe in detail how
11  each public interest factor shall be considered and
12  weighted in the bid selection process to ensure that
13  the public interest criteria are applied to the
14  procurement and given full effect.
15  For purposes of developing the plan, the Agency
16  shall consider any reports issued by a State agency,
17  board, or commission under House Resolution 1146 of
18  the 98th General Assembly and paragraph (4) of
19  subsection (d) of this Section, as well as publicly
20  available analyses and studies performed by or for
21  regional transmission organizations that serve the
22  State and their independent market monitors.
23  Upon publishing of the zero emission standard
24  procurement plan, copies of the plan shall be posted
25  and made publicly available on the Agency's website.
26  All interested parties shall have 10 days following

 

 

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1  the date of posting to provide comment to the Agency on
2  the plan. All comments shall be posted to the Agency's
3  website. Following the end of the comment period, but
4  no more than 60 days later than June 1, 2017 (the
5  effective date of Public Act 99-906), the Agency shall
6  revise the plan as necessary based on the comments
7  received and file its zero emission standard
8  procurement plan with the Commission.
9  If the Commission determines that the plan will
10  result in the procurement of cost-effective zero
11  emission credits, then the Commission shall, after
12  notice and hearing, but no later than 45 days after the
13  Agency filed the plan, approve the plan or approve
14  with modification. For purposes of this subsection
15  (d-5), "cost effective" means the projected costs of
16  procuring zero emission credits from zero emission
17  facilities do not cause the limit stated in paragraph
18  (2) of this subsection to be exceeded.
19  (C-5) As part of the Commission's review and
20  acceptance or rejection of the procurement results,
21  the Commission shall, in its public notice of
22  successful bidders:
23  (i) identify how the winning bids satisfy the
24  public interest criteria described in subparagraph
25  (C) of this paragraph (1) of minimizing carbon
26  dioxide emissions that result from electricity

 

 

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1  consumed in Illinois and minimizing sulfur
2  dioxide, nitrogen oxide, and particulate matter
3  emissions that adversely affect the citizens of
4  this State;
5  (ii) specifically address how the selection of
6  winning bids takes into account the incremental
7  environmental benefits resulting from the
8  procurement, including any existing environmental
9  benefits that are preserved by the procurements
10  held under Public Act 99-906 and would have ceased
11  to exist if the procurements had not been held,
12  such as the preservation of zero emission
13  facilities;
14  (iii) quantify the environmental benefit of
15  preserving the resources identified in item (ii)
16  of this subparagraph (C-5), including the
17  following:
18  (aa) the value of avoided greenhouse gas
19  emissions measured as the product of the zero
20  emission facilities' output over the contract
21  term multiplied by the U.S. Environmental
22  Protection Agency eGrid subregion carbon
23  dioxide emission rate and the U.S. Interagency
24  Working Group on Social Cost of Carbon's price
25  in the August 2016 Technical Update using a 3%
26  discount rate, adjusted for inflation for each

 

 

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1  delivery year; and
2  (bb) the costs of replacement with other
3  zero carbon dioxide resources, including wind
4  and photovoltaic, based upon the simple
5  average of the following:
6  (I) the price, or if there is more
7  than one price, the average of the prices,
8  paid for renewable energy credits from new
9  utility-scale wind projects in the
10  procurement events specified in item (i)
11  of subparagraph (G) of paragraph (1) of
12  subsection (c) of this Section; and
13  (II) the price, or if there is more
14  than one price, the average of the prices,
15  paid for renewable energy credits from new
16  utility-scale solar projects and
17  brownfield site photovoltaic projects in
18  the procurement events specified in item
19  (ii) of subparagraph (G) of paragraph (1)
20  of subsection (c) of this Section and,
21  after January 1, 2015, renewable energy
22  credits from photovoltaic distributed
23  generation projects in procurement events
24  held under subsection (c) of this Section.
25  Each utility shall enter into binding contractual
26  arrangements with the winning suppliers.

 

 

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1  The procurement described in this subsection
2  (d-5), including, but not limited to, the execution of
3  all contracts procured, shall be completed no later
4  than May 10, 2017. Based on the effective date of
5  Public Act 99-906, the Agency and Commission may, as
6  appropriate, modify the various dates and timelines
7  under this subparagraph and subparagraphs (C) and (D)
8  of this paragraph (1). The procurement and plan
9  approval processes required by this subsection (d-5)
10  shall be conducted in conjunction with the procurement
11  and plan approval processes required by subsection (c)
12  of this Section and Section 16-111.5 of the Public
13  Utilities Act, to the extent practicable.
14  Notwithstanding whether a procurement event is
15  conducted under Section 16-111.5 of the Public
16  Utilities Act, the Agency shall immediately initiate a
17  procurement process on June 1, 2017 (the effective
18  date of Public Act 99-906).
19  (D) Following the procurement event described in
20  this paragraph (1) and consistent with subparagraph
21  (B) of this paragraph (1), the Agency shall calculate
22  the payments to be made under each contract for the
23  next delivery year based on the market price index for
24  that delivery year. The Agency shall publish the
25  payment calculations no later than May 25, 2017 and
26  every May 25 thereafter.

 

 

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1  (E) Notwithstanding the requirements of this
2  subsection (d-5), the contracts executed under this
3  subsection (d-5) shall provide that the zero emission
4  facility may, as applicable, suspend or terminate
5  performance under the contracts in the following
6  instances:
7  (i) A zero emission facility shall be excused
8  from its performance under the contract for any
9  cause beyond the control of the resource,
10  including, but not restricted to, acts of God,
11  flood, drought, earthquake, storm, fire,
12  lightning, epidemic, war, riot, civil disturbance
13  or disobedience, labor dispute, labor or material
14  shortage, sabotage, acts of public enemy,
15  explosions, orders, regulations or restrictions
16  imposed by governmental, military, or lawfully
17  established civilian authorities, which, in any of
18  the foregoing cases, by exercise of commercially
19  reasonable efforts the zero emission facility
20  could not reasonably have been expected to avoid,
21  and which, by the exercise of commercially
22  reasonable efforts, it has been unable to
23  overcome. In such event, the zero emission
24  facility shall be excused from performance for the
25  duration of the event, including, but not limited
26  to, delivery of zero emission credits, and no

 

 

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1  payment shall be due to the zero emission facility
2  during the duration of the event.
3  (ii) A zero emission facility shall be
4  permitted to terminate the contract if legislation
5  is enacted into law by the General Assembly that
6  imposes or authorizes a new tax, special
7  assessment, or fee on the generation of
8  electricity, the ownership or leasehold of a
9  generating unit, or the privilege or occupation of
10  such generation, ownership, or leasehold of
11  generation units by a zero emission facility.
12  However, the provisions of this item (ii) do not
13  apply to any generally applicable tax, special
14  assessment or fee, or requirements imposed by
15  federal law.
16  (iii) A zero emission facility shall be
17  permitted to terminate the contract in the event
18  that the resource requires capital expenditures in
19  excess of $40,000,000 that were neither known nor
20  reasonably foreseeable at the time it executed the
21  contract and that a prudent owner or operator of
22  such resource would not undertake.
23  (iv) A zero emission facility shall be
24  permitted to terminate the contract in the event
25  the Nuclear Regulatory Commission terminates the
26  resource's license.

 

 

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1  (F) If the zero emission facility elects to
2  terminate a contract under subparagraph (E) of this
3  paragraph (1), then the Commission shall reopen the
4  docket in which the Commission approved the zero
5  emission standard procurement plan under subparagraph
6  (C) of this paragraph (1) and, after notice and
7  hearing, enter an order acknowledging the contract
8  termination election if such termination is consistent
9  with the provisions of this subsection (d-5).
10  (2) For purposes of this subsection (d-5), the amount
11  paid per kilowatthour means the total amount paid for
12  electric service expressed on a per kilowatthour basis.
13  For purposes of this subsection (d-5), the total amount
14  paid for electric service includes, without limitation,
15  amounts paid for supply, transmission, distribution,
16  surcharges, and add-on taxes.
17  Notwithstanding the requirements of this subsection
18  (d-5), the contracts executed under this subsection (d-5)
19  shall provide that the total of zero emission credits
20  procured under a procurement plan shall be subject to the
21  limitations of this paragraph (2). For each delivery year,
22  the contractual volume receiving payments in such year
23  shall be reduced for all retail customers based on the
24  amount necessary to limit the net increase that delivery
25  year to the costs of those credits included in the amounts
26  paid by eligible retail customers in connection with

 

 

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1  electric service to no more than 1.65% of the amount paid
2  per kilowatthour by eligible retail customers during the
3  year ending May 31, 2009. The result of this computation
4  shall apply to and reduce the procurement for all retail
5  customers, and all those customers shall pay the same
6  single, uniform cents per kilowatthour charge under
7  subsection (k) of Section 16-108 of the Public Utilities
8  Act. To arrive at a maximum dollar amount of zero emission
9  credits to be paid for the particular delivery year, the
10  resulting per kilowatthour amount shall be applied to the
11  actual amount of kilowatthours of electricity delivered by
12  the electric utility in the delivery year immediately
13  prior to the procurement, to all retail customers in its
14  service territory. Unpaid contractual volume for any
15  delivery year shall be paid in any subsequent delivery
16  year in which such payments can be made without exceeding
17  the amount specified in this paragraph (2). The
18  calculations required by this paragraph (2) shall be made
19  only once for each procurement plan year. Once the
20  determination as to the amount of zero emission credits to
21  be paid is made based on the calculations set forth in this
22  paragraph (2), no subsequent rate impact determinations
23  shall be made and no adjustments to those contract amounts
24  shall be allowed. All costs incurred under those contracts
25  and in implementing this subsection (d-5) shall be
26  recovered by the electric utility as provided in this

 

 

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1  Section.
2  No later than June 30, 2019, the Commission shall
3  review the limitation on the amount of zero emission
4  credits procured under this subsection (d-5) and report to
5  the General Assembly its findings as to whether that
6  limitation unduly constrains the procurement of
7  cost-effective zero emission credits.
8  (3) Six years after the execution of a contract under
9  this subsection (d-5), the Agency shall determine whether
10  the actual zero emission credit payments received by the
11  supplier over the 6-year period exceed the Average ZEC
12  Payment. In addition, at the end of the term of a contract
13  executed under this subsection (d-5), or at the time, if
14  any, a zero emission facility's contract is terminated
15  under subparagraph (E) of paragraph (1) of this subsection
16  (d-5), then the Agency shall determine whether the actual
17  zero emission credit payments received by the supplier
18  over the term of the contract exceed the Average ZEC
19  Payment, after taking into account any amounts previously
20  credited back to the utility under this paragraph (3). If
21  the Agency determines that the actual zero emission credit
22  payments received by the supplier over the relevant period
23  exceed the Average ZEC Payment, then the supplier shall
24  credit the difference back to the utility. The amount of
25  the credit shall be remitted to the applicable electric
26  utility no later than 120 days after the Agency's

 

 

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1  determination, which the utility shall reflect as a credit
2  on its retail customer bills as soon as practicable;
3  however, the credit remitted to the utility shall not
4  exceed the total amount of payments received by the
5  facility under its contract.
6  For purposes of this Section, the Average ZEC Payment
7  shall be calculated by multiplying the quantity of zero
8  emission credits delivered under the contract times the
9  average contract price. The average contract price shall
10  be determined by subtracting the amount calculated under
11  subparagraph (B) of this paragraph (3) from the amount
12  calculated under subparagraph (A) of this paragraph (3),
13  as follows:
14  (A) The average of the Social Cost of Carbon, as
15  defined in subparagraph (B) of paragraph (1) of this
16  subsection (d-5), during the term of the contract.
17  (B) The average of the market price indices, as
18  defined in subparagraph (B) of paragraph (1) of this
19  subsection (d-5), during the term of the contract,
20  minus the baseline market price index, as defined in
21  subparagraph (B) of paragraph (1) of this subsection
22  (d-5).
23  If the subtraction yields a negative number, then the
24  Average ZEC Payment shall be zero.
25  (4) Cost-effective zero emission credits procured from
26  zero emission facilities shall satisfy the applicable

 

 

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1  definitions set forth in Section 1-10 of this Act.
2  (5) The electric utility shall retire all zero
3  emission credits used to comply with the requirements of
4  this subsection (d-5).
5  (6) Electric utilities shall be entitled to recover
6  all of the costs associated with the procurement of zero
7  emission credits through an automatic adjustment clause
8  tariff in accordance with subsection (k) and (m) of
9  Section 16-108 of the Public Utilities Act, and the
10  contracts executed under this subsection (d-5) shall
11  provide that the utilities' payment obligations under such
12  contracts shall be reduced if an adjustment is required
13  under subsection (m) of Section 16-108 of the Public
14  Utilities Act.
15  (7) This subsection (d-5) shall become inoperative on
16  January 1, 2028.
17  (d-10) Nuclear Plant Assistance; carbon mitigation
18  credits.
19  (1) The General Assembly finds:
20  (A) The health, welfare, and prosperity of all
21  Illinois citizens require that the State of Illinois act
22  to avoid and not increase carbon emissions from electric
23  generation sources while continuing to ensure affordable,
24  stable, and reliable electricity to all citizens.
25  (B) Absent immediate action by the State to preserve
26  existing carbon-free energy resources, those resources may

 

 

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1  retire, and the electric generation needs of Illinois'
2  retail customers may be met instead by facilities that
3  emit significant amounts of carbon pollution and other
4  harmful air pollutants at a high social and economic cost
5  until Illinois is able to develop other forms of clean
6  energy.
7  (C) The General Assembly finds that nuclear power
8  generation is necessary for the State's transition to 100%
9  clean energy, and ensuring continued operation of nuclear
10  plants advances environmental and public health interests
11  through providing carbon-free electricity while reducing
12  the air pollution profile of the Illinois energy
13  generation fleet.
14  (D) The clean energy attributes of nuclear generation
15  facilities support the State in its efforts to achieve
16  100% clean energy.
17  (E) The State currently invests in various forms of
18  clean energy, including, but not limited to, renewable
19  energy, energy efficiency, and low-emission vehicles,
20  among others.
21  (F) The Environmental Protection Agency commissioned
22  an independent audit which provided a detailed assessment
23  of the financial condition of the Illinois nuclear fleet
24  to evaluate its financial viability and whether the
25  environmental benefits of such resources were at risk. The
26  report identified the risk of losing the environmental

 

 

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1  benefits of several specific nuclear units. The report
2  also identified that the LaSalle County Generating Station
3  will continue to operate through 2026 and therefore is not
4  eligible to participate in the carbon mitigation credit
5  program.
6  (G) Nuclear plants provide carbon-free energy, which
7  helps to avoid many health-related negative impacts for
8  Illinois residents.
9  (H) The procurement of carbon mitigation credits
10  representing the environmental benefits of carbon-free
11  generation will further the State's efforts at achieving
12  100% clean energy and decarbonizing the electricity sector
13  in a safe, reliable, and affordable manner. Further, the
14  procurement of carbon emission credits will enhance the
15  health and welfare of Illinois residents through decreased
16  reliance on more highly polluting generation.
17  (I) The General Assembly therefore finds it necessary
18  to establish carbon mitigation credits to ensure decreased
19  reliance on more carbon-intensive energy resources, for
20  transitioning to a fully decarbonized electricity sector,
21  and to help ensure health and welfare of the State's
22  residents.
23  (2) As used in this subsection:
24  "Baseline costs" means costs used to establish a customer
25  protection cap that have been evaluated through an independent
26  audit of a carbon-free energy resource conducted by the

 

 

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1  Environmental Protection Agency that evaluated projected
2  annual costs for operation and maintenance expenses; fully
3  allocated overhead costs, which shall be allocated using the
4  methodology developed by the Institute for Nuclear Power
5  Operations; fuel expenditures; nonfuel capital expenditures;
6  spent fuel expenditures; a return on working capital; the cost
7  of operational and market risks that could be avoided by
8  ceasing operation; and any other costs necessary for continued
9  operations, provided that "necessary" means, for purposes of
10  this definition, that the costs could reasonably be avoided
11  only by ceasing operations of the carbon-free energy resource.
12  "Carbon mitigation credit" means a tradable credit that
13  represents the carbon emission reduction attributes of one
14  megawatt-hour of energy produced from a carbon-free energy
15  resource.
16  "Carbon-free energy resource" means a generation facility
17  that: (1) is fueled by nuclear power; and (2) is
18  interconnected to PJM Interconnection, LLC.
19  (3) Procurement.
20  (A) Beginning with the delivery year commencing on
21  June 1, 2022, the Agency shall, for electric utilities
22  serving at least 3,000,000 retail customers in the State,
23  seek to procure contracts for no more than approximately
24  54,500,000 cost-effective carbon mitigation credits from
25  carbon-free energy resources because such credits are
26  necessary to support current levels of carbon-free energy

 

 

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1  generation and ensure the State meets its carbon dioxide
2  emissions reduction goals. The Agency shall not make a
3  partial award of a contract for carbon mitigation credits
4  covering a fractional amount of a carbon-free energy
5  resource's projected output.
6  (B) Each carbon-free energy resource that intends to
7  participate in a procurement shall be required to submit
8  to the Agency the following information for the resource
9  on or before the date established by the Agency:
10  (i) the in-service date and remaining useful life
11  of the carbon-free energy resource;
12  (ii) the amount of power generated annually for
13  each of the past 10 years, which shall be used to
14  determine the capability of each facility;
15  (iii) a commitment to be reflected in any contract
16  entered into pursuant to this subsection (d-10) to
17  continue operating the carbon-free energy resource at
18  a capacity factor of at least 88% annually on average
19  for the duration of the contract or contracts executed
20  under the procurement held under this subsection
21  (d-10), except in an instance described in
22  subparagraph (E) of paragraph (1) of subsection (d-5)
23  of this Section or made impracticable as a result of
24  compliance with law or regulation;
25  (iv) financial need and the risk of loss of the
26  environmental benefits of such resource, which shall

 

 

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1  include the following information:
2  (I) the carbon-free energy resource's cost
3  projections, expressed on a per megawatt-hour
4  basis, over the next 5 delivery years, which shall
5  include the following: operation and maintenance
6  expenses; fully allocated overhead costs, which
7  shall be allocated using the methodology developed
8  by the Institute for Nuclear Power Operations;
9  fuel expenditures; nonfuel capital expenditures;
10  spent fuel expenditures; a return on working
11  capital; the cost of operational and market risks
12  that could be avoided by ceasing operation; and
13  any other costs necessary for continued
14  operations, provided that "necessary" means, for
15  purposes of this subitem (I), that the costs could
16  reasonably be avoided only by ceasing operations
17  of the carbon-free energy resource; and
18  (II) the carbon-free energy resource's revenue
19  projections, including energy, capacity, ancillary
20  services, any other direct State support, known or
21  anticipated federal attribute credits, known or
22  anticipated tax credits, and any other direct
23  federal support.
24  The information described in this subparagraph (B) may
25  be submitted on a confidential basis and shall be treated
26  and maintained by the Agency, the procurement

 

 

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1  administrator, and the Commission as confidential and
2  proprietary and exempt from disclosure under subparagraphs
3  (a) and (g) of paragraph (1) of Section 7 of the Freedom of
4  Information Act. The Office of the Attorney General shall
5  have access to, and maintain the confidentiality of, such
6  information pursuant to Section 6.5 of the Attorney
7  General Act.
8  (C) The Agency shall solicit bids for the contracts
9  described in this subsection (d-10) from carbon-free
10  energy resources that have satisfied the requirements of
11  subparagraph (B) of this paragraph (3). The contracts
12  procured pursuant to a procurement event shall reflect,
13  and be subject to, the following terms, requirements, and
14  limitations:
15  (i) Contracts are for delivery of carbon
16  mitigation credits, and are not energy or capacity
17  sales contracts requiring physical delivery. Pursuant
18  to item (iii), contract payments shall fully deduct
19  the value of any monetized federal production tax
20  credits, credits issued pursuant to a federal clean
21  energy standard, and other federal credits if
22  applicable.
23  (ii) Contracts for carbon mitigation credits shall
24  commence with the delivery year beginning on June 1,
25  2022 and shall be for a term of 5 delivery years
26  concluding on May 31, 2027.

 

 

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1  (iii) The price per carbon mitigation credit to be
2  paid under a contract for a given delivery year shall
3  be equal to an accepted bid price less the sum of:
4  (I) one of the following energy price indices,
5  selected by the bidder at the time of the bid for
6  the term of the contract:
7  (aa) the weighted-average hourly day-ahead
8  price for the applicable delivery year at the
9  busbar of all resources procured pursuant to
10  this subsection (d-10), weighted by actual
11  production from the resources; or
12  (bb) the projected energy price for the
13  PJM Interconnection, LLC Northern Illinois Hub
14  for the applicable delivery year determined
15  according to subitem (aa) of item (iii) of
16  subparagraph (B) of paragraph (1) of
17  subsection (d-5).
18  (II) the Base Residual Auction Capacity Price
19  for the ComEd zone as determined by PJM
20  Interconnection, LLC, divided by 24 hours per day,
21  for the applicable delivery year for the first 3
22  delivery years, and then any subsequent delivery
23  years unless the PJM Interconnection, LLC applies
24  the Minimum Offer Price Rule to participating
25  carbon-free energy resources because they supply
26  carbon mitigation credits pursuant to this Section

 

 

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1  at which time, upon notice by the carbon-free
2  energy resource to the Commission and subject to
3  the Commission's confirmation, the value under
4  this subitem shall be zero, as further described
5  in the carbon mitigation credit procurement plan;
6  and
7  (III) any value of monetized federal tax
8  credits, direct payments, or similar subsidy
9  provided to the carbon-free energy resource from
10  any unit of government that is not already
11  reflected in energy prices.
12  If the price-per-megawatt-hour calculation
13  performed under item (iii) of this subparagraph (C)
14  for a given delivery year results in a net positive
15  value, then the electric utility counterparty to the
16  contract shall multiply such net value by the
17  applicable contract quantity and remit the amount to
18  the supplier.
19  To protect retail customers from retail rate
20  impacts that may arise upon the initiation of carbon
21  policy changes, if the price-per-megawatt-hour
22  calculation performed under item (iii) of this
23  subparagraph (C) for a given delivery year results in
24  a net negative value, then the supplier counterparty
25  to the contract shall multiply such net value by the
26  applicable contract quantity and remit such amount to

 

 

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1  the electric utility counterparty. The electric
2  utility shall reflect such amounts remitted by
3  suppliers as a credit on its retail customer bills as
4  soon as practicable.
5  (iv) To ensure that retail customers in Northern
6  Illinois do not pay more for carbon mitigation credits
7  than the value such credits provide, and
8  notwithstanding the provisions of this subsection
9  (d-10), the Agency shall not accept bids for contracts
10  that exceed a customer protection cap equal to the
11  baseline costs of carbon-free energy resources.
12  The baseline costs for the applicable year shall
13  be the following:
14  (I) For the delivery year beginning June 1,
15  2022, the baseline costs shall be an amount equal
16  to $30.30 per megawatt-hour.
17  (II) For the delivery year beginning June 1,
18  2023, the baseline costs shall be an amount equal
19  to $32.50 per megawatt-hour.
20  (III) For the delivery year beginning June 1,
21  2024, the baseline costs shall be an amount equal
22  to $33.43 per megawatt-hour.
23  (IV) For the delivery year beginning June 1,
24  2025, the baseline costs shall be an amount equal
25  to $33.50 per megawatt-hour.
26  (V) For the delivery year beginning June 1,

 

 

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1  2026, the baseline costs shall be an amount equal
2  to $34.50 per megawatt-hour.
3  An Environmental Protection Agency consultant
4  forecast, included in a report issued April 14, 2021,
5  projects that a carbon-free energy resource has the
6  opportunity to earn on average approximately $30.28
7  per megawatt-hour, for the sale of energy and capacity
8  during the time period between 2022 and 2027.
9  Therefore, the sale of carbon mitigation credits
10  provides the opportunity to receive an additional
11  amount per megawatt-hour in addition to the projected
12  prices for energy and capacity.
13  Although actual energy and capacity prices may
14  vary from year-to-year, the General Assembly finds
15  that this customer protection cap will help ensure
16  that the cost of carbon mitigation credits will be
17  less than its value, based upon the social cost of
18  carbon identified in the Technical Support Document
19  issued in February 2021 by the U.S. Interagency
20  Working Group on Social Cost of Greenhouse Gases and
21  the PJM Interconnection, LLC carbon dioxide marginal
22  emission rate for 2020, and that a carbon-free energy
23  resource receiving payment for carbon mitigation
24  credits receives no more than necessary to keep those
25  units in operation.
26  (D) No later than 7 days after the effective date of

 

 

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1  this amendatory Act of the 102nd General Assembly, the
2  Agency shall publish its proposed carbon mitigation credit
3  procurement plan. The Plan shall provide that winning bids
4  shall be selected by taking into consideration which
5  resources best match public interest criteria that
6  include, but are not limited to, minimizing carbon dioxide
7  emissions that result from electricity consumed in
8  Illinois and minimizing sulfur dioxide, nitrogen oxide,
9  and particulate matter emissions that adversely affect the
10  citizens of this State. The selection of winning bids
11  shall also take into account the incremental environmental
12  benefits resulting from the procurement or procurements,
13  such as any existing environmental benefits that are
14  preserved by a procurement held under this subsection
15  (d-10) and would cease to exist if the procurement were
16  not held, including the preservation of carbon-free energy
17  resources. For those bidders having the same public
18  interest criteria score, the relative ranking of such
19  bidders shall be determined by price. The Plan shall
20  describe in detail how each public interest factor shall
21  be considered and weighted in the bid selection process to
22  ensure that the public interest criteria are applied to
23  the procurement. The Plan shall, to the extent practical
24  and permissible by federal law, ensure that successful
25  bidders make commercially reasonable efforts to apply for
26  federal tax credits, direct payments, or similar subsidy

 

 

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1  programs that support carbon-free generation and for which
2  the successful bidder is eligible. Upon publishing of the
3  carbon mitigation credit procurement plan, copies of the
4  plan shall be posted and made publicly available on the
5  Agency's website. All interested parties shall have 7 days
6  following the date of posting to provide comment to the
7  Agency on the plan. All comments shall be posted to the
8  Agency's website. Following the end of the comment period,
9  but no more than 19 days later than the effective date of
10  this amendatory Act of the 102nd General Assembly, the
11  Agency shall revise the plan as necessary based on the
12  comments received and file its carbon mitigation credit
13  procurement plan with the Commission.
14  (E) If the Commission determines that the plan is
15  likely to result in the procurement of cost-effective
16  carbon mitigation credits, then the Commission shall,
17  after notice and hearing and opportunity for comment, but
18  no later than 42 days after the Agency filed the plan,
19  approve the plan or approve it with modification. For
20  purposes of this subsection (d-10), "cost-effective" means
21  carbon mitigation credits that are procured from
22  carbon-free energy resources at prices that are within the
23  limits specified in this paragraph (3). As part of the
24  Commission's review and acceptance or rejection of the
25  procurement results, the Commission shall, in its public
26  notice of successful bidders:

 

 

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1  (i) identify how the selected carbon-free energy
2  resources satisfy the public interest criteria
3  described in this paragraph (3) of minimizing carbon
4  dioxide emissions that result from electricity
5  consumed in Illinois and minimizing sulfur dioxide,
6  nitrogen oxide, and particulate matter emissions that
7  adversely affect the citizens of this State;
8  (ii) specifically address how the selection of
9  carbon-free energy resources takes into account the
10  incremental environmental benefits resulting from the
11  procurement, including any existing environmental
12  benefits that are preserved by the procurements held
13  under this amendatory Act of the 102nd General
14  Assembly and would have ceased to exist if the
15  procurements had not been held, such as the
16  preservation of carbon-free energy resources;
17  (iii) quantify the environmental benefit of
18  preserving the carbon-free energy resources procured
19  pursuant to this subsection (d-10), including the
20  following:
21  (I) an assessment value of avoided greenhouse
22  gas emissions measured as the product of the
23  carbon-free energy resources' output over the
24  contract term, using generally accepted
25  methodologies for the valuation of avoided
26  emissions; and

 

 

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1  (II) an assessment of costs of replacement
2  with other carbon-free energy resources and
3  renewable energy resources, including wind and
4  photovoltaic generation, based upon an assessment
5  of the prices paid for renewable energy credits
6  through programs and procurements conducted
7  pursuant to subsection (c) of Section 1-75 of this
8  Act, and the additional storage necessary to
9  produce the same or similar capability of matching
10  customer usage patterns.
11  (F) The procurements described in this paragraph (3),
12  including, but not limited to, the execution of all
13  contracts procured, shall be completed no later than
14  December 3, 2021. The procurement and plan approval
15  processes required by this paragraph (3) shall be
16  conducted in conjunction with the procurement and plan
17  approval processes required by Section 16-111.5 of the
18  Public Utilities Act, to the extent practicable. However,
19  the Agency and Commission may, as appropriate, modify the
20  various dates and timelines under this subparagraph and
21  subparagraphs (D) and (E) of this paragraph (3) to meet
22  the December 3, 2021 contract execution deadline.
23  Following the completion of such procurements, and
24  consistent with this paragraph (3), the Agency shall
25  calculate the payments to be made under each contract in a
26  timely fashion.

 

 

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1  (F-1) Costs incurred by the electric utility pursuant
2  to a contract authorized by this subsection (d-10) shall
3  be deemed prudently incurred and reasonable in amount, and
4  the electric utility shall be entitled to full cost
5  recovery pursuant to a tariff or tariffs filed with the
6  Commission.
7  (G) The counterparty electric utility shall retire all
8  carbon mitigation credits used to comply with the
9  requirements of this subsection (d-10).
10  (H) If a carbon-free energy resource is sold to
11  another owner, the rights, obligations, and commitments
12  under this subsection (d-10) shall continue to the
13  subsequent owner.
14  (I) This subsection (d-10) shall become inoperative on
15  January 1, 2028.
16  (e) The draft procurement plans are subject to public
17  comment, as required by Section 16-111.5 of the Public
18  Utilities Act.
19  (f) The Agency shall submit the final procurement plan to
20  the Commission. The Agency shall revise a procurement plan if
21  the Commission determines that it does not meet the standards
22  set forth in Section 16-111.5 of the Public Utilities Act.
23  (g) The Agency shall assess fees to each affected utility
24  to recover the costs incurred in preparation of the annual
25  procurement plan for the utility.
26  (h) The Agency shall assess fees to each bidder to recover

 

 

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1  the costs incurred in connection with a competitive
2  procurement process.
3  (i) A renewable energy credit, carbon emission credit,
4  zero emission credit, or carbon mitigation credit can only be
5  used once to comply with a single portfolio or other standard
6  as set forth in subsection (c), subsection (d), or subsection
7  (d-5) of this Section, respectively. A renewable energy
8  credit, carbon emission credit, zero emission credit, or
9  carbon mitigation credit cannot be used to satisfy the
10  requirements of more than one standard. If more than one type
11  of credit is issued for the same megawatt hour of energy, only
12  one credit can be used to satisfy the requirements of a single
13  standard. After such use, the credit must be retired together
14  with any other credits issued for the same megawatt hour of
15  energy.
16  (Source: P.A. 101-81, eff. 7-12-19; 101-113, eff. 1-1-20;
17  102-662, eff. 9-15-21.)

 

 

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